UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
WASHINGTON,
D.C. 20549
______________
FORM 8-K
CURRENT
REPORT
PURSUANT
TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
Date of report (Date of earliest
event reported)
|
November
9, 2015
|
INTERNATIONAL
FLAVORS & FRAGRANCES INC.
|
(Exact
Name of Registrant as Specified in Charter)
|
New York
|
1-4858
|
13-1432060
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(State or Other Jurisdiction
of Incorporation)
|
(Commission
File Number)
|
(I.R.S. Employer
Identification No.)
|
521 West 57th Street, New York, New York
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10019
|
(Address
of Principal Executive Offices)
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(Zip
Code)
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Registrant’s telephone number, including area code
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(212) 765-5500
|
Check the
appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any
of the following provisions:
⃞
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
⃞
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
⃞
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
⃞
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition
Attached and being furnished hereby as Exhibit 99.1 is a copy of a press
release of International Flavors & Fragrances Inc. ("IFF" or the
"Company") dated November 9, 2015 reporting IFF's financial results for
the quarter ended September 30, 2015.
An audio webcast to discuss the Company's third quarter 2015 financial
results and full year 2015 outlook will be held tomorrow, November 10,
2015, at 10:00 a.m. EST. Interested parties can access the webcast and
accompanying slide presentation on the Company's website at www.iff.com
under the Investor Relations section. For those unable to listen to the
live broadcast, a replay will be available on the Company's website
approximately one hour after the event and will remain available on the
IFF website for one year.
Non-GAAP financial measures: In the attached press release and the
referenced audio webcast, the Company uses the following non-GAAP
financial operating measures: (i) adjusted earnings per share, (ii)
currency neutral adjusted earnings per share; (iii) adjusted operating
profit, (iv) currency neutral adjusted operating profit, (v) adjusted
operating profit margin, (vi) adjusted sales and (vii) currency neutral
sales. Such information is supplemental to information presented in
accordance with GAAP and is not intended to represent a presentation in
accordance with GAAP. In discussing the Company’s historical and
expected future results and financial condition, the Company believes it
is meaningful for investors to be made aware of and to be assisted in a
better understanding of, on a period-to-period comparable basis,
financial amounts both including and excluding these identified items,
as well as the impact of exchange rate fluctuations. The Company
believes such additional non-GAAP information provides investors with an
overall perspective of the period-to-period performance of our business.
In addition, management internally reviews each of these non-GAAP
measures to evaluate performance on a comparative period-to-period basis
in terms of absolute performance, trends and expected future performance
with respect to our business. A material limitation of these non-GAAP
measures is that such measures do not reflect actual GAAP amounts. The
Company compensates for such limitations by presenting the
reconciliations contained in the attached press release to the most
directly comparable GAAP measure. These non-GAAP measures may not be
comparable to similarly titled measures used by other
companies.
Item 9.01. Financial Statements and Exhibits
(d) Exhibits
99.1 Press Release of International Flavors & Fragrances Inc., dated
November 9, 2015
SIGNATURE
Pursuant to
the requirements of the Securities Exchange Act of 1934, the Registrant
has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
|
|
INTERNATIONAL FLAVORS & FRAGRANCES INC.
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|
|
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Dated:
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November 9, 2015
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/s/ Alison A. Cornell
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|
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Name: Alison A. Cornell
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Title: Executive Vice President and Chief Financial Officer
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Exhibit Index
Number
|
Description
|
99.1
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Press Release of International Flavors & Fragrances Inc. dated
November 9, 2015
|
Exhibit 99.1
IFF
Reports Strong Third Quarter 2015 Results
NEW YORK--(BUSINESS WIRE)--November 9, 2015--International Flavors &
Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF) reported financial
results and strategic achievements for the third quarter ended September
30, 2015.
Third Quarter 2015 Consolidated Summary: Growth vs. Prior Year ¹
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Reported (GAAP)
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Adjusted (Non-GAAP)
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Adjusted Currency Neutral
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Sales
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Operating Profit
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EPS
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Sales
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Operating Profit
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EPS
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Sales
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Operating Profit
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EPS
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Consolidated
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(1)%
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3%
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0%
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(1)%
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7%
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5%
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7%
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10%
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10%
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Acquisition Impact
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3%
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3%
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1%
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3%
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2%
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3%
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¹ Schedules at the end of this release contain reconciliations of
reported GAAP to non-GAAP metrics.
Win Where We Compete: achieve market leadership position
in key markets, categories & customers
-
North America Fragrance Compounds +7% led by double-digit Hair Care &
Home Care growth
-
Fragrances currency neutral sales in China +6% driven by strong growth
with regional customers
-
Home Care grew high-single-digits, on a currency neutral basis, as a
result of strong new wins
-
Flavors North America +19% including the acquisition of Ottens Flavors
-
Flavors Latin America up double-digits, on a currency neutral basis,
for the 8th consecutive quarter
Innovating Firsts: strengthen position and drive
differentiation in priority R&D platforms
-
Encapsulation-related sales improved double-digits in Fabric,
Toiletries and Home Care
-
Sweetness and Savory Modulation portfolio grew strong double-digits
-
Commercialized two captive fragrance ingredients that drive greater
differentiation
-
Launched second natural taste modulator of 2015 to build
consumer-preferred products
-
Developed new capsule chemistry to strengthen participation beyond
Fabric Care
Become Our Customers’ Partner of Choice: attain commercial
excellence
-
IFF-LMR Naturals & Haitian Vetiver partner certified “For Life” by the
Institute of Marketecology
-
Achieved additional core list status with several key customers across
both flavors and fragrances
-
Won North America innovation award with one of IFF’s largest Flavors
customers
-
Awarded Supplier Excellence award with one of IFF’s largest Fine
Fragrance customers
-
Gained industry-leading membership in the Together for Sustainability
sustainable sourcing initiative and recognized by CDP as a world
leader for corporate action on climate change
Strengthen and Expand the Portfolio: pursue value creation
through collaborations & acquisitions
-
Lucas Meyer Cosmetics achieved double-digit currency neutral sales
growth on a standalone basis
-
Ottens Flavors sales improved double-digits with strongest growth
coming from regional customers
-
Announced partnership with Vapor Communications to pioneer the future
of digital scent
Management Commentary
“We are pleased to report strong financial results in the third quarter,
despite ongoing volatility in many key international markets,” said
Chairman and CEO Andreas Fibig. “Thanks in large part to the diversity
of our business and our recent acquisitions, we achieved strong revenue
growth, gross margin expansion and double-digit increases in adjusted
operating profit and adjusted EPS – all on a currency neutral basis.
“Currency neutral sales improved 7%, including three percentage points
of growth relating to the acquisition of Ottens Flavors and Lucas Meyer
Cosmetics. Overall our top-line performance continues to be driven by
strong new wins, particularly in Fragrance Compounds, where the
contributions from new wins were at the highest levels in nearly two
years. Adjusted operating profit and adjusted EPS on a currency neutral
basis grew at a rate faster than sales, both up 10%, as we benefitted
from gross margin expansion and fixed cost leverage.
“With a focus on building greater differentiation, accelerating
profitable growth and increasing shareholder value, we continued to make
strides against our Vision 2020 strategy. In North America – one of the
areas we are targeting for leadership positions – the Flavors team has
done a nice job integrating our recent acquisition of Ottens Flavors.
Leveraging their defined go-to-market strategy – geared toward ensuring
we are the partner of choice for key regional accounts – Flavors North
America was up 19%. In China, Fragrances grew 6% on a currency neutral
basis, despite the volatile economic environment, as we continued to
have success with many of the strong regional Consumer Fragrance brands.
“Delivery systems across both flavors and fragrances continued to drive
growth. The strong trends in Fabric Care and Beverage continued in the
third quarter, led by our encapsulation technology in fragrances and
proprietary delivery system in flavors. We were also pleased with the
sales of our sweetness and savory modulation portfolios which continued
to produce strong results, increasing strong double-digits.
“In addition to the strides we have made from a market share and
innovation perspective, we also made progress in our never-ending quest
to “become our customers’ partner of choice.” Capitalizing on the trends
in naturals, IFF-LMR Naturals received its fourth “For Life” Social
Responsibility designation for its Haitian Vetiver operations. We are
proud that our commitment to embedding sustainability throughout our
business practices and our corporate culture is being acknowledge as
evident by our recent CDP Climate “A” List perfect score. We also won an
innovation award in North America with one of our largest Flavors
customers, which recognizes partners for their thought leadership, and
were awarded a supplier excellence award with a large Fine Fragrance
customer.
“Strengthening and expanding our portfolio is a focus of ours as we
diligently pursue value-creation opportunities in partnerships and
collaborations. In the third quarter, we completed the acquisition of
Lucas Meyer Cosmetics which helped us expand our product offerings
beyond flavors and fragrances into cosmetic active ingredients. We are
pleased to report that Lucas Meyer Cosmetics achieved strong
double-digit currency neutral sales growth on a standalone basis – a
good indication that we are putting our capital to work in areas that
accelerate growth. To maintain our legacy of pioneering firsts, we also
announced a partnership with Vapor Communications, which we believe will
put us on the forefront of digital scent in the years to come.
“Based on our strong year-to-date results and our outlook for more
modest sales growth in the fourth quarter – due to challenging
comparisons that include an extra week of sales in the prior year – we
continue to believe we can deliver 6% full year 2015 currency neutral
sales growth, including acquisitions. To correspond with our top-line
performance, we continue to believe we can deliver approximately 9%
adjusted operating profit growth and 10% adjusted EPS growth, both on a
currency neutral basis for full year 2015”.
Third Quarter 2015 Segment Summary: Growth vs. Prior Year
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Reported (GAAP)
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Currency Neutral
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Sales
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Segment Profit
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Sales
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Segment Profit
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Fragrances:
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(2)%
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5%
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6%
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15%
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Acquisition Impact
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2%
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1%
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2%
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2%
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Flavors:
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0%
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0%
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8%
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9%
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Acquisition Impact
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4%
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3%
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5%
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3%
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Fragrances Business Unit
-
Currency neutral sales improved 6%, including approximately two
percentage points related to the acquisition of Lucas Meyer Cosmetics.
Growth was led by high-single-digit growth in Latin America and
mid-single-digit improvement in Greater Asia.
-
Fine Fragrances increased 1% led by EAME, which improved 5%, as a
result of very strong new wins. In Latin America, challenging economic
conditions continue to impact Fine Fragrance sales, although the
growth rate improved versus the second quarter.
-
Consumer Fragrances grew 7% with broad-based growth led by a
double-digit increase in Fabric Care and high-single-digit increase in
Hair Care. On a geographic basis, all regions delivered growth, led by
double-digits in Latin America, all on a currency neutral basis.
-
Fragrance Ingredients grew 6% driven by the acquisition of Lucas Meyer
Cosmetics. Our organic Fragrance Ingredients sales remained soft as we
continued to utilize capacity to further strengthen our internal
Fragrance Compounds business.
-
Fragrances currency neutral segment profit improved approximately 15%
driven by volume growth, benefits from cost and productivity
initiatives and lower incentive compensation expense. Segment profit
margin on a currency neutral basis increased 180 basis points to 22.4%.
-
On a reported basis, sales decreased 2% to $406.0 million in the third
quarter compared with $415.1 million in the prior year quarter.
Fragrances segment profit increased 5%, or $4.3 million, to $90.9
million.
Flavors Business Unit
-
Currency neutral sales grew 8%, including approximately four and a
half percentage points related to the acquisition of Ottens Flavors.
All categories experienced broad-based growth, with the strongest
results in Beverage and Dairy.
-
EAME improved 4% led by high-single-digit growth in Beverage. Western
Europe reported the highest growth, improving 9%, driven by strong new
win performance.
-
North America grew 19% reflecting additional sales related to the
acquisition of Ottens Flavors and high-double-digit growth in Dairy.
-
Latin America increased 20% as all categories reported positive
growth. The strong double-digit trend in Beverage continued for the
8th consecutive quarter. Savory and Dairy also grew double-digits as a
result of strong new win performance.
-
Greater Asia remained constant as growth in Indonesia, India,
Singapore and Japan was offset by softness in China, most notably due
to a challenging economic environment.
-
Flavors currency neutral segment profit improved approximately 9% as
sales growth, gross margin expansion and cost and productivity
benefits more than offset the inclusion of amortization of intangibles
related to the acquisition of Ottens Flavors. Segment profit margin on
a currency neutral basis increased 10 basis points to 22.2% in the
prior year quarter.
-
On a reported basis, sales were flat going to $359.1 million from
$358.7 million in the prior year quarter. Flavors segment profit
remained constant at $79.8 million from $79.7 million.
FY 2015 Guidance: Growth vs. Prior Year
The Company full year 2015 remains:
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Sales
|
|
Operating Profit
|
|
EPS
|
|
% Change - Adjusted (Non-GAAP)
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-1%
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4%
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5%
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Negative Currency Impact
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7ppt
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5ppt
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5ppt
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% Change - Currency Neutral (Adjusted)
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6%
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9%
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10%
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|
A copy of the Company’s Quarterly Report on Form 10-Q will be available
on its website at www.iff.com or at sec.gov by November 11, 2015.
Audio Webcast
A live webcast to discuss the Company’s third quarter 2015 financial
results will be held on November 10, 2015, at 10:00 a.m. EST. Investors
may access the webcast and accompanying slide presentation on the
Company's website at www.iff.com under the Investor Relations
section. For those unable to listen to the live broadcast, a recorded
version of the webcast will be made available on the Company's website
approximately one hour after the event and will remain available on
IFF’s website for one year.
Meet IFF
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext Paris: IFF)
is a leading innovator of sensorial experiences that move the world. At
the heart of our company, we are fueled by a sense of discovery,
constantly asking “what if?”. That passion for exploration drives us to
co-create unique products that consumers taste, smell, or feel in fine
fragrances and beauty, detergents and household goods, as well as
beloved foods and beverages. Our 6,200 team members globally take
advantage of leading consumer insights, research and development,
creative expertise, and customer intimacy to develop differentiated
offerings for consumer products. Learn more at www.iff.com,
Twitter and LinkedIn.
Cautionary Statement Under The Private Securities Litigation
Reform Act of 1995
This press release includes “forward-looking statements” under the
Federal Private Securities Litigation Reform Act of 1995, including
statements regarding our outlook for the fourth quarter and full year
2015, expected returns from our recent acquisitions and partnerships,
and our ability to generate shareholder returns and sustain our
long-term growth performance. These forward-looking statements are
qualified in their entirety by cautionary statements and risk factor
disclosures contained in the Company’s Securities and Exchange
Commission filings, including the Company’s Annual Report on Form 10-K
filed with the Commission on March 2, 2015. The Company wishes to
caution readers that certain important factors may have affected and
could in the future affect the Company’s actual results and could cause
the Company’s actual results for subsequent periods to differ materially
from those expressed in any forward-looking statements made by or on
behalf of the Company. With respect to the Company’s expectations
regarding these statements, such factors include, but are not limited
to: (1) the Company’s ability to implement its Vision 2020 strategy; (2)
volatility and increases in the price of raw materials, energy and
transportation; (3) the economic and political risks associated with the
Company’s international operations; (4) the Company’s ability to benefit
from its investments and expansion in emerging markets; (5) fluctuations
in the quality and availability of raw materials; (6) changes in
consumer preferences and demand for the Company’s products or a decline
in consumer confidence and spending; (7) the Company’s ability to
implement its business strategy, including the achievement of
anticipated cost savings, profitability, realization of price increases
and growth targets; (8) the Company’s ability to successfully develop
new and competitive products that appeal to its customers and consumers;
(9) the impact of a disruption in the Company’s supply chain or its
relationship with its suppliers; (10) the impact of currency
fluctuations or devaluations in the Company’s principal foreign markets;
(11) any adverse impact on the availability, effectiveness and cost of
the Company’s hedging and risk management strategies; (12) the effects
of any unanticipated costs and construction or start-up delays in the
expansion of the Company’s facilities; (13) the Company’s ability to
successfully execute acquisitions, collaborations and joint ventures;
(14) the Company’s ability to manage unanticipated costs and other
adverse financial impacts in connection with its acquisitions; (15) the
effect of legal and regulatory proceedings, as well as restrictions
imposed on the Company, its operations or its representatives by U.S.
and foreign governments; (16) adverse changes in federal, state, local
and foreign tax legislation or adverse results of tax audits,
assessments, or disputes; and (17) changes in market conditions or
governmental regulations relating to our pension and postretirement
obligations. New risks emerge from time to time and it is not possible
for management to predict all such risk factors or to assess the impact
of such risks on the Company’s business. Accordingly, the Company
undertakes no obligation to publicly revise any forward-looking
statements, whether as a result of new information, future events, or
otherwise.
International Flavors & Fragrances Inc.
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Consolidated Income Statement
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(Amounts in thousands except per diluted share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30,
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|
Nine Months Ended September 30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2015
|
|
2014
|
|
% Change
|
|
2015
|
|
2014
|
|
% Change
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
|
765,092
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|
$
|
773,813
|
|
|
(1
|
)%
|
|
$
|
2,307,540
|
|
|
$
|
2,332,451
|
|
|
(1
|
)%
|
Cost of goods sold
|
|
|
417,966
|
|
|
433,702
|
|
|
(4
|
)%
|
|
|
1,269,097
|
|
|
|
1,298,281
|
|
|
(2
|
)%
|
Gross profit
|
|
|
347,126
|
|
|
340,111
|
|
|
2
|
%
|
|
|
1,038,443
|
|
|
|
1,034,170
|
|
|
0
|
%
|
Research and development expenses
|
|
|
62,750
|
|
|
63,701
|
|
|
(1
|
)%
|
|
|
188,725
|
|
|
|
191,635
|
|
|
(2
|
)%
|
Selling and administrative expenses
|
|
|
127,663
|
|
|
123,212
|
|
|
4
|
%
|
|
|
382,560
|
|
|
|
379,864
|
|
|
1
|
%
|
Restructuring and other charges, net
|
|
|
—
|
|
|
608
|
|
|
(100
|
)%
|
|
|
(170
|
)
|
|
|
912
|
|
|
(119
|
)%
|
Operating profit
|
|
|
156,713
|
|
|
152,590
|
|
|
3
|
%
|
|
|
467,328
|
|
|
|
461,759
|
|
|
1
|
%
|
Interest expense
|
|
|
11,855
|
|
|
10,968
|
|
|
8
|
%
|
|
|
34,357
|
|
|
|
34,048
|
|
|
1
|
%
|
Other expense (income), net
|
|
|
1,959
|
|
|
(563
|
)
|
|
(448
|
)%
|
|
|
(3,315
|
)
|
|
|
(3,761
|
)
|
|
(12
|
)%
|
Income before taxes
|
|
|
142,899
|
|
|
142,185
|
|
|
1
|
%
|
|
|
436,286
|
|
|
|
431,472
|
|
|
1
|
%
|
Taxes on income
|
|
|
36,452
|
|
|
34,770
|
|
|
5
|
%
|
|
|
96,206
|
|
|
|
107,064
|
|
|
(10
|
)%
|
Net income
|
|
$
|
106,447
|
|
$
|
107,415
|
|
|
(1
|
)%
|
|
$
|
340,080
|
|
|
$
|
324,408
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - basic
|
|
$
|
1.32
|
|
$
|
1.32
|
|
|
|
|
$
|
4.20
|
|
|
$
|
3.98
|
|
|
|
Earnings per share - diluted
|
|
$
|
1.31
|
|
$
|
1.31
|
|
|
|
|
$
|
4.18
|
|
|
$
|
3.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
80,330
|
|
|
80,942
|
|
|
|
|
|
80,602
|
|
|
|
80,981
|
|
|
|
Diluted
|
|
|
80,737
|
|
|
81,508
|
|
|
|
|
|
81,052
|
|
|
|
81,556
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Flavors & Fragrances Inc.
|
Condensed Consolidated Balance Sheet
|
(Amounts in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
September 30,
|
|
December 31,
|
|
|
2015
|
|
2014
|
Cash & cash equivalents
|
|
$
|
272,276
|
|
$
|
478,573
|
Receivables
|
|
|
569,608
|
|
|
493,768
|
Inventories
|
|
|
589,463
|
|
|
568,729
|
Other current assets
|
|
|
207,404
|
|
|
168,957
|
Total current assets
|
|
|
1,638,751
|
|
|
1,710,027
|
|
|
|
|
|
Property, plant and equipment, net
|
|
|
708,902
|
|
|
720,268
|
Goodwill and other intangibles, net
|
|
|
1,255,361
|
|
|
752,041
|
Other assets
|
|
|
308,671
|
|
|
312,285
|
Total assets
|
|
$
|
3,911,685
|
|
$
|
3,494,621
|
|
|
|
|
|
Bank borrowings and overdrafts, and
|
|
|
|
|
current portion of long-term debt
|
|
$
|
133,056
|
|
$
|
8,090
|
Other current liabilities
|
|
|
554,264
|
|
|
510,718
|
Total current liabilities
|
|
|
687,320
|
|
|
518,808
|
|
|
|
|
|
Long-term debt
|
|
|
1,057,992
|
|
|
934,232
|
Non-current liabilities
|
|
|
570,224
|
|
|
518,892
|
|
|
|
|
|
Shareholders' equity
|
|
|
1,596,149
|
|
|
1,522,689
|
Total liabilities and shareholders' equity
|
|
$
|
3,911,685
|
|
$
|
3,494,621
|
|
|
|
|
|
|
|
International Flavors & Fragrances Inc.
|
Consolidated Statement of Cash Flows
|
(Amounts in thousands)
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
340,080
|
|
|
$
|
324,408
|
|
Adjustments to reconcile to net cash provided by operating
activities:
|
|
|
|
|
Depreciation and amortization
|
|
|
65,099
|
|
|
|
68,678
|
|
Deferred income taxes
|
|
|
13,134
|
|
|
|
7,496
|
|
Gain on disposal of assets
|
|
|
(341
|
)
|
|
|
(2,351
|
)
|
Stock-based compensation
|
|
|
18,355
|
|
|
|
19,627
|
|
Pension contributions
|
|
|
(61,125
|
)
|
|
|
(34,493
|
)
|
Changes in assets and liabilities, net of acquisitions:
|
|
|
|
|
Trade receivables
|
|
|
(108,563
|
)
|
|
|
(47,929
|
)
|
Inventories
|
|
|
(31,655
|
)
|
|
|
(21,609
|
)
|
Accounts payable
|
|
|
54,482
|
|
|
|
(2,459
|
)
|
Accruals for incentive compensation
|
|
|
(13,781
|
)
|
|
|
(45,482
|
)
|
Other current payables and accrued expenses
|
|
|
34,585
|
|
|
|
(977
|
)
|
Other assets/liabilities, net
|
|
|
(15,575
|
)
|
|
|
52,594
|
|
Net cash provided by operating activities
|
|
|
294,695
|
|
|
|
317,503
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Cash paid for acquisitions, net of cash received (including $15
million of contingent consideration related to the Aromor
acquisition in 2014)
|
|
|
(493,469
|
)
|
|
|
(102,500
|
)
|
Additions to property, plant and equipment
|
|
|
(66,632
|
)
|
|
|
(97,820
|
)
|
Proceeds from life insurance contracts
|
|
|
868
|
|
|
|
17,750
|
|
Maturity of net investment hedges
|
|
|
9,735
|
|
|
|
(472
|
)
|
Proceeds from disposal of assets
|
|
|
3,431
|
|
|
|
2,506
|
|
Net cash used in investing activities
|
|
|
(546,067
|
)
|
|
|
(180,536
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Cash dividends paid to shareholders
|
|
|
(113,875
|
)
|
|
|
(95,113
|
)
|
Net change in bank borrowings and overdrafts
|
|
|
—
|
|
|
|
8,926
|
|
Deferred financing costs
|
|
|
—
|
|
|
|
(1,023
|
)
|
Repayments of debt
|
|
|
(30,000
|
)
|
|
|
—
|
|
Proceeds from issuance or drawdown of long-term debt
|
|
|
279,998
|
|
|
|
4,100
|
|
Proceeds from issuance of stock under stock plans
|
|
|
288
|
|
|
|
1,361
|
|
Excess tax benefits on stock-based payments
|
|
|
11,704
|
|
|
|
6,080
|
|
Purchase of treasury stock
|
|
|
(81,237
|
)
|
|
|
(52,453
|
)
|
Net cash provided by (used in) financing activities
|
|
|
66,878
|
|
|
|
(128,122
|
)
|
Effect of exchange rates changes on cash and cash equivalents
|
|
|
(21,803
|
)
|
|
|
(9,514
|
)
|
Net change in cash and cash equivalents
|
|
|
(206,297
|
)
|
|
|
(669
|
)
|
Cash and cash equivalents at beginning of year
|
|
|
478,573
|
|
|
|
405,505
|
|
Cash and cash equivalents at end of period
|
|
$
|
272,276
|
|
|
$
|
404,836
|
|
|
|
|
|
|
|
|
|
|
International Flavors & Fragrances Inc.
|
Business Unit Performance
|
(Amounts in thousands)
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended September 30,
|
|
Nine Months Ended September 30,
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
Net Sales
|
|
|
|
|
|
|
|
|
Flavors
|
|
$
|
359,103
|
|
|
$
|
358,708
|
|
|
$
|
1,108,689
|
|
|
$
|
1,100,726
|
|
Fragrances
|
|
|
405,989
|
|
|
|
415,105
|
|
|
|
1,198,851
|
|
|
|
1,231,725
|
|
Consolidated
|
|
|
765,092
|
|
|
|
773,813
|
|
|
|
2,307,540
|
|
|
|
2,332,451
|
|
|
|
|
|
|
|
|
|
|
Segment Profit
|
|
|
|
|
|
|
|
|
Flavors
|
|
|
79,803
|
|
|
|
79,747
|
|
|
|
256,546
|
|
|
|
258,614
|
|
Fragrances
|
|
|
90,893
|
|
|
|
86,615
|
|
|
|
252,416
|
|
|
|
259,253
|
|
Global Expenses
|
|
|
(6,874
|
)
|
|
|
(12,882
|
)
|
|
|
(27,067
|
)
|
|
|
(49,182
|
)
|
Restructuring and other charges, net
|
|
|
—
|
|
|
|
(608
|
)
|
|
|
170
|
|
|
|
(912
|
)
|
Acquisition and related costs
|
|
|
(6,830
|
)
|
|
|
—
|
|
|
|
(13,896
|
)
|
|
|
—
|
|
Operational improvement initiative costs
|
|
|
(279
|
)
|
|
|
(282
|
)
|
|
|
(841
|
)
|
|
|
(6,014
|
)
|
Operating profit
|
|
|
156,713
|
|
|
|
152,590
|
|
|
|
467,328
|
|
|
|
461,759
|
|
|
|
|
|
|
|
|
|
|
Interest Expense
|
|
|
(11,855
|
)
|
|
|
(10,968
|
)
|
|
|
(34,357
|
)
|
|
|
(34,048
|
)
|
Other income, net
|
|
|
(1,959
|
)
|
|
|
563
|
|
|
|
3,315
|
|
|
|
3,761
|
|
Income before taxes
|
|
$
|
142,899
|
|
|
$
|
142,185
|
|
|
$
|
436,286
|
|
|
$
|
431,472
|
|
|
|
|
|
|
|
|
|
|
Operating Margin
|
|
|
|
|
|
|
|
|
Flavors
|
|
|
22.2
|
%
|
|
|
22.2
|
%
|
|
|
23.1
|
%
|
|
|
23.5
|
%
|
Fragrances
|
|
|
22.4
|
%
|
|
|
20.9
|
%
|
|
|
21.1
|
%
|
|
|
21.0
|
%
|
Consolidated
|
|
|
20.5
|
%
|
|
|
19.7
|
%
|
|
|
20.3
|
%
|
|
|
19.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International Flavors & Fragrances Inc.
|
Sales Performance by Region and Category
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2015 vs. 2014
|
|
|
|
|
Percentage Change in Sales by Region of Destination
|
|
|
|
|
Fine
|
|
Consumer Fragrances
|
|
Ingredients
|
|
Total Frag.
|
|
Flavors
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
Reported
|
|
4
|
%
|
|
8
|
%
|
|
4
|
%
|
|
6
|
%
|
|
19
|
%
|
|
13
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME
|
|
Reported
|
|
-11
|
%
|
|
-12
|
%
|
|
-9
|
%
|
|
-11
|
%
|
|
-12
|
%
|
|
-11
|
%
|
Currency Neutral
|
|
5
|
%
|
|
5
|
%
|
|
6
|
%
|
|
5
|
%
|
|
4
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America
|
|
Reported
|
|
-13
|
%
|
|
9
|
%
|
|
-5
|
%
|
|
2
|
%
|
|
9
|
%
|
|
4
|
%
|
Currency Neutral
|
|
-8
|
%
|
|
13
|
%
|
|
9
|
%
|
|
7
|
%
|
|
20
|
%
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater Asia
|
|
Reported
|
|
-23
|
%
|
|
2
|
%
|
|
6
|
%
|
|
2
|
%
|
|
-6
|
%
|
|
-3
|
%
|
Currency Neutral
|
|
-22
|
%
|
|
5
|
%
|
|
7
|
%
|
|
4
|
%
|
|
0
|
%
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Reported
|
|
-9
|
%
|
|
0
|
%
|
|
-3
|
%
|
|
-2
|
%
|
|
0
|
%
|
|
-1
|
%
|
Currency Neutral
|
|
1
|
%
|
|
7
|
%
|
|
6
|
%
|
|
6
|
%
|
|
8
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
First Nine Months 2015 vs. First Nine Months 2014
|
|
|
|
|
Percentage Change in Sales by Region of Destination
|
|
|
|
|
Fine
|
|
Consumer Fragrances
|
|
Ingredients
|
|
Total Frag.
|
|
Flavors
|
|
Total
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America
|
|
Reported
|
|
-5
|
%
|
|
4
|
%
|
|
-11
|
%
|
|
-2
|
%
|
|
11
|
%
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EAME
|
|
Reported
|
|
-10
|
%
|
|
-7
|
%
|
|
-9
|
%
|
|
-8
|
%
|
|
-9
|
%
|
|
-9
|
%
|
Currency Neutral
|
|
7
|
%
|
|
10
|
%
|
|
2
|
%
|
|
7
|
%
|
|
6
|
%
|
|
7
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Latin America
|
|
Reported
|
|
-11
|
%
|
|
12
|
%
|
|
-1
|
%
|
|
5
|
%
|
|
10
|
%
|
|
7
|
%
|
Currency Neutral
|
|
-7
|
%
|
|
15
|
%
|
|
2
|
%
|
|
8
|
%
|
|
18
|
%
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater Asia
|
|
Reported
|
|
2
|
%
|
|
0
|
%
|
|
1
|
%
|
|
0
|
%
|
|
-1
|
%
|
|
-1
|
%
|
Currency Neutral
|
|
3
|
%
|
|
2
|
%
|
|
7
|
%
|
|
3
|
%
|
|
3
|
%
|
|
3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
Reported
|
|
-9
|
%
|
|
1
|
%
|
|
-7
|
%
|
|
-3
|
%
|
|
1
|
%
|
|
-1
|
%
|
Currency Neutral
|
|
0
|
%
|
|
8
|
%
|
|
0
|
%
|
|
5
|
%
|
|
8
|
%
|
|
6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Currency neutral growth is calculated by translating prior year sales
at the exchange rates used for the corresponding 2015 period.
International Flavors & Fragrances Inc.
|
GAAP to Non-GAAP Reconciliation
|
Foreign Exchange Impact
|
(Unaudited)
|
|
|
|
|
|
|
|
Q3 Consolidated
|
|
Sales
|
|
Operating Profit
|
|
EPS
|
% Change - Reported (GAAP)
|
|
-1%
|
|
3%
|
|
0%
|
Items Impacting Comparability
|
|
0%
|
|
4%
|
|
5%
|
% Change - Adjusted (Non-GAAP)
|
|
-1%
|
|
7%
|
|
5%
|
Currency Impact
|
|
8%
|
|
3%
|
|
5%
|
% Change - Currency Neutral (Adjusted)
|
|
7%
|
|
10%
|
|
10%
|
|
|
|
|
|
|
|
Q3 Flavors
|
|
Sales
|
|
Segment Profit
|
|
|
% Change - Reported (GAAP)
|
|
0%
|
|
0%
|
|
|
Currency Impact
|
|
8%
|
|
9%
|
|
|
% Change - Currency Neutral
|
|
8%
|
|
9%
|
|
|
|
|
|
|
|
|
|
Q3 Fragrances
|
|
Sales
|
|
Segment Profit
|
|
|
% Change - Reported (GAAP)
|
|
-2%
|
|
5%
|
|
|
Currency Impact
|
|
8%
|
|
10%
|
|
|
% Change - Currency Neutral
|
|
6%
|
|
15%
|
|
|
|
|
|
|
|
|
|
YTD Consolidated
|
|
Sales
|
|
Operating Profit
|
|
EPS
|
% Change - Reported (GAAP)
|
|
-1%
|
|
1%
|
|
6%
|
Items Impacting Comparability
|
|
0%
|
|
2%
|
|
-1%
|
% Change - Adjusted (Non-GAAP)
|
|
-1%
|
|
3%
|
|
5%
|
Currency Impact
|
|
7%
|
|
6%
|
|
6%
|
% Change - Currency Neutral (Adjusted)
|
|
6%
|
|
9%
|
|
11%
|
|
|
|
|
|
|
|
YTD Flavors
|
|
Sales
|
|
Segment Profit
|
|
|
% Change - Reported (GAAP)
|
|
1%
|
|
-1%
|
|
|
Currency Impact
|
|
7%
|
|
8%
|
|
|
% Change - Currency Neutral
|
|
8%
|
|
7%
|
|
|
|
|
|
|
|
|
|
YTD Fragrances
|
|
Sales
|
|
Segment Profit
|
|
|
% Change - Reported (GAAP)
|
|
-3%
|
|
-3%
|
|
|
Currency Impact
|
|
8%
|
|
11%
|
|
|
% Change - Currency Neutral
|
|
5%
|
|
8%
|
|
|
|
|
|
|
|
|
|
Currency neutral growth is calculated by translating prior year
amounts at the exchange rates used for the corresponding 2015 period.
International Flavors & Fragrances Inc.
GAAP to
Non-GAAP Reconciliation
(Amounts in thousands)
(Unaudited)
The following information and schedules provide reconciliation
information between reported GAAP amounts and non-GAAP certain adjusted
amounts. This information and schedules are not intended as, and should
not be viewed as, a substitute for reported GAAP amounts or financial
statements of the Company prepared and presented in accordance with GAAP.
|
|
|
Third Quarter 2015
|
|
|
|
|
|
Items Impacting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
Operational Improvement Initiative Costs
|
|
|
|
Acquisition related costs
|
|
|
|
Adjusted (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
765,092
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
417,966
|
|
(279)
|
|
(a)
|
|
(2,465)
|
|
(b)
|
|
415,222
|
|
|
Gross profit
|
|
|
347,126
|
|
279
|
|
|
|
2,465
|
|
|
|
349,870
|
|
|
Research and development expenses
|
|
|
62,750
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
127,663
|
|
|
|
|
|
(4,365)
|
|
(b)
|
|
123,298
|
|
|
RSA Expense
|
|
|
190,413
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges, net
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
156,713
|
|
279
|
|
|
|
6,830
|
|
|
|
163,822
|
|
|
Interest expense
|
|
|
11,855
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
1,959
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
142,899
|
|
279
|
|
|
|
6,830
|
|
|
|
150,008
|
|
|
Taxes on income
|
|
|
36,452
|
|
70
|
|
|
|
829
|
|
|
|
37,351
|
|
|
Net income
|
|
|
106,447
|
|
209
|
|
|
|
6,001
|
|
|
|
112,657
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
|
$ 1.31
|
|
$ —
|
|
|
|
$ 0.07
|
|
|
|
$ 1.39
|
|
(c)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Related to a partial plant closing in Asia.
|
|
(b)
|
|
Transaction costs related to acquisitions (Ottens Flavors and Lucas
Meyer Cosmetics) as well as expense related to the fair value
step up of inventory on the Lucas Meyer acquisition.
|
|
(c)
|
|
Item does not foot due to rounding.
|
|
*
|
|
The Company tracks the amount of amortization recorded on recent
acquisitions in order to monitor its progress with respect to
its Vision 2020 goals. The following amounts were recorded with
respect to recent acquisitions: $3.5M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter 2014
|
|
|
|
|
|
Items Impacting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
Restructuring and Other Charges
|
|
|
|
Operational Improvement Initiative Costs
|
|
|
|
Adjusted (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
773,813
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
433,702
|
|
|
|
|
|
(282)
|
|
(b)
|
|
433,420
|
|
|
Gross profit
|
|
|
340,111
|
|
|
|
|
|
282
|
|
|
|
340,393
|
|
|
Research and development expenses
|
|
|
63,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
123,212
|
|
|
|
|
|
|
|
|
|
|
|
|
RSA Expense
|
|
|
186,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges, net
|
|
|
608
|
|
(608)
|
|
(a)
|
|
|
|
|
|
-
|
|
|
Operating profit
|
|
|
152,590
|
|
608
|
|
|
|
282
|
|
|
|
153,480
|
|
|
Interest expense
|
|
|
10,968
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
(563)
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
142,185
|
|
608
|
|
|
|
282
|
|
|
|
143,075
|
|
|
Taxes on income
|
|
|
34,770
|
|
213
|
|
|
|
70
|
|
|
|
35,053
|
|
|
Net income
|
|
|
107,415
|
|
395
|
|
|
|
212
|
|
|
|
108,022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
|
$ 1.31
|
|
$ 0.01
|
|
|
|
$ —
|
|
|
|
$ 1.32
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Costs related to the Fragrance Ingredients Rationalization.
|
|
(b)
|
|
Related to plant closing in Europe and partial closing in Asia.
|
|
|
|
|
International Flavors & Fragrances Inc.
GAAP to
Non-GAAP Reconciliation
(Amounts in thousands)
(Unaudited)
The following information and schedules provide reconciliation
information between reported GAAP amounts and non-GAAP certain adjusted
amounts. This information and schedules are not intended as, and should
not be viewed as, a substitute for reported GAAP amounts or financial
statements of the Company prepared and presented in accordance with GAAP.
|
|
|
Third Quarter Year-to-Date 2015
|
|
|
|
|
|
Items Impacting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
Restructuring and Other Charges
|
|
|
|
Operational Improvement Initiative Costs
|
|
|
|
Acquisition related costs
|
|
|
|
Tax settlements
|
|
|
|
Adjusted (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
2,307,540
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,269,097
|
|
|
|
|
|
(841)
|
|
(b)
|
|
(3,309)
|
|
(c)
|
|
|
|
|
|
1,264,947
|
|
|
Gross profit
|
|
|
1,038,443
|
|
|
|
|
|
841
|
|
|
|
3,309
|
|
|
|
|
|
|
|
1,042,593
|
|
|
Research and development expenses
|
|
|
188,725
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
382,560
|
|
|
|
|
|
|
|
|
|
(10,587)
|
|
(c)
|
|
|
|
|
|
371,973
|
|
|
RSA Expense
|
|
|
571,285
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges, net
|
|
|
(170)
|
|
170
|
|
(a)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
Operating profit
|
|
|
467,328
|
|
(170)
|
|
|
|
841
|
|
|
|
13,896
|
|
|
|
|
|
|
|
481,895
|
|
|
Interest expense
|
|
|
34,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
(3,315)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
436,286
|
|
(170)
|
|
|
|
841
|
|
|
|
13,896
|
|
|
|
|
|
|
|
450,853
|
|
|
Taxes on income
|
|
|
96,206
|
|
(60)
|
|
|
|
210
|
|
|
|
1,879
|
|
|
|
10,478
|
|
(d)
|
|
108,713
|
|
|
Net income
|
|
|
340,080
|
|
(110)
|
|
|
|
631
|
|
|
|
12,017
|
|
|
|
(10,478)
|
|
|
|
342,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
|
$ 4.18
|
|
$ —
|
|
|
|
$ 0.01
|
|
|
|
$ 0.15
|
|
|
|
$ (0.13)
|
|
|
|
$ 4.20
|
|
(e)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Costs related to the Fragrance Ingredients Rationalization
|
|
(b)
|
|
Related to plant closings in Europe and partial closing in Asia
|
|
(c)
|
|
Transaction costs related to acquisitions (Ottens Flavors and
Lucas Meyer Cosmetics) as well as expense related to the
fair value step up of inventory for both acquisitions.
|
|
(d)
|
|
Settlements due to favorable tax rulings in jurisdictions for
which reserves were previously recorded for ongoing tax
disputes.
|
|
(e)
|
|
Item does not foot due to rounding
|
|
*
|
|
The Company tracks the amount of amortization recorded on
recent acquisitions in order to monitor its progress
with respect to its Vision 2020 goals. The following amounts were
recorded with respect to recent acquisitions: $4.7M.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter Year-to-Date 2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Items Impacting Comparability
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported (GAAP)
|
|
Restructuring and Other Charges
|
|
|
|
Operational Improvement Initiative Costs
|
|
|
|
Adjusted (Non-GAAP)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
2,332,451
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of goods sold
|
|
|
1,298,281
|
|
(5,100)
|
|
(a)
|
|
(914)
|
|
(b)
|
|
1,292,267
|
|
|
|
|
|
|
|
|
|
|
Gross profit
|
|
|
1,034,170
|
|
5,100
|
|
|
|
914
|
|
|
|
1,040,184
|
|
|
|
|
|
|
|
|
|
|
Research and development expenses
|
|
|
191,635
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling and administrative expenses
|
|
|
379,864
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RSA Expense
|
|
|
571,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring and other charges, net
|
|
|
912
|
|
(912)
|
|
|
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Operating profit
|
|
|
461,759
|
|
6,012
|
|
|
|
914
|
|
|
|
468,685
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
34,048
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense (income), net
|
|
|
(3,761)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before taxes
|
|
|
431,472
|
|
6,012
|
|
|
|
914
|
|
|
|
438,398
|
|
|
|
|
|
|
|
|
|
|
Taxes on income
|
|
|
107,064
|
|
2,104
|
|
|
|
227
|
|
|
|
109,395
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
324,408
|
|
3,908
|
|
|
|
687
|
|
|
|
329,003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share - diluted
|
|
|
$ 3.95
|
|
$ 0.05
|
|
|
|
$ 0.01
|
|
|
|
$ 4.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Costs related to the Fragrance Ingredients Rationalization
|
|
(b)
|
|
Related to plant closings in Europe and partial closing in Asia
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONTACT:
International Flavors & Fragrances Inc.
VP, Global
Corporate Communications & Investor Relations:
Michael DeVeau,
212-708-7164
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