UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
 
FORM 11-K
_________________

 
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
         
For the fiscal year ended December 31, 2014


[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     
For the transition period from to


Commission file number 001 – 04858


A.
Full title of the plan and the address of the plan, if different from that of the issuer named below:

International Flavors & Fragrances Inc.
Retirement Investment Fund Plan

B.
Name of issuer of the securities held pursuant to the plan and the address of its principal executive office:

International Flavors & Fragrances Inc.
521 West 57th Street
New York, NY 10019







1



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
TABLE OF CONTENTS TO FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULE
DECEMBER 31, 2014 AND 2013

Table of Contents
 
Page
 
 
Financial Statements:
 
 
 
 
 
 
 
 
 
Supplemental Schedule:
 
 
 
 
 
 
 
Exhibit:
 
 
 
Exhibit 23.1 – Consent of Independent Registered Public Accounting Firm-
Smolin, Lupin & Co., P.A.
 
 
 
(*) Other supplemental schedules required by 29 CFR2520.103-10 of the Department of Labor’s Rule and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, as amended have been omitted as they are not applicable.
 


2



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

The Administrative Committee and Participants        
International Flavors & Fragrances Inc. Retirement Investment Fund Plan
New York, New York

We have audited the accompanying statement of net assets available for benefits of the International Flavors & Fragrances Inc. Retirement Investment Fund Plan (the “Plan”) as of December 31, 2014 and 2013, and the related statement of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2014 and 2013, and the changes in net assets available for benefits for the years then ended in conformity with accounting principles generally accepted in the United States of America.

Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at year end) as of December 31, 2014 has been subjected to audit procedures performed in conjunction with the audit of Plan’s financial statements. The supplemental schedule is the responsibility of Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statement or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with and as required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental schedule is fairly stated in all material respects in relation to the basic financial statements taken as a whole.


/s/ Smolin, Lupin & Co., P.A.
Fairfield, New Jersey
June 29, 2015


3



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 2014 AND 2013
Assets
 
2014
 
2013
Investments at fair value:
 
 
 
 
  International Flavors & Fragrances Inc. Common Stock Fund
 
$
12,382,389

 
$
11,052,859

  Vanguard Inflation-Protected Securities Fund: Admiral Shares
 
2,296,535

 

  Vanguard Prime Money Market Fund: Institutional Shares
 
5,087,350

 

  Vanguard Total Bond Market Index Fund: Institutional Shares
 
12,857,054

 

  Vanguard Total International Stock Index Fund: Institutional Shares
 
13,690,261

 

  Vanguard Total Stock Market Index Fund: Institutional Shares
 
35,584,442

 

  Vanguard Target Retirement Income Trust II
 
5,024,307

 

  Vanguard Target Retirement Trust II:
 
 
 
 
    2010 Trust II
 
9,372,929

 

    2015 Trust II
 
15,816,238

 

    2020 Trust II
 
42,366,643

 

    2025 Trust II
 
37,942,473

 

    2030 Trust II
 
34,524,365

 

    2035 Trust II
 
32,818,200

 

    2040 Trust II
 
17,399,130

 

    2045 Trust II
 
9,016,768

 

    2050 Trust II
 
3,371,998

 

    2055 Trust II
 
833,093

 

    2060 Trust II
 
675,241

 

  Vanguard Retirement Savings Trust III
 
6,231,809

 

  Vanguard Brokerage Option
 
7,776,871

 

  Vanguard 500 Index Fund
 

 
55,638,021

  Vanguard Equity Income Fund
 

 
9,401,511

  Vanguard Explorer Fund
 

 
9,962,892

  Vanguard International Growth Fund
 

 
26,857,010

  Vanguard Long-Term Investment Grade Fund
 

 
13,526,097

  Vanguard Mid-Cap Index Fund
 

 
17,373,910

  Vanguard Prime Money Market Fund
 

 
24,464,185

  Vanguard PRIMECAP Fund
 

 
15,771,040

  Vanguard Retirement Savings Trust
 

 
16,572,814

  Vanguard Total Bond Market Index Fund
 

 
18,010,135

  Vanguard U.S. Growth Fund
 

 
15,608,555

  Vanguard Target Retirement Income Fund
 

 
1,788,904

  Vanguard Target Retirement Funds:
 
 
 
 
    2010 Fund
 

 
1,526,589

    2015 Fund
 

 
10,900,466

    2020 Fund
 

 
4,602,751

    2025 Fund
 

 
12,371,536

    2030 Fund
 

 
5,205,155

    2035 Fund
 

 
11,059,715

    2040 Fund
 

 
4,660,595

    2045 Fund
 

 
5,504,084

    2050 Fund
 

 
1,914,633

        Total investments
 
305,068,096

 
293,773,457

Notes receivable from participants
 
4,674,351

 
4,986,370

Employer contributions receivable
 
1,122

 
957

Net assets reflecting investments at fair value
 
309,743,569

 
298,760,784

Adjustment from fair value to contract value for fully benefit-responsive investment contracts
 
(180,234
)
 

Net assets available for benefits
 
$
309,563,335

 
$
298,760,784

 
 
 
 
 
The accompanying notes are an integral part of these financial statements.

4



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
FOR THE YEARS ENDED DECEMBER 31, 2014 AND 2013
 
2014
 
2013
Contributions:
 
 
 
  Company contributions
$
7,248,118

 
$
6,714,656

  Participant contributions
14,477,065

 
12,409,558

     TOTAL CONTRIBUTIONS
21,725,183

 
19,124,214

 
 
 
 
Investment income:
 
 
 
  Dividends
2,527,834

 
6,453,655

  Interest
247,483

 
271,765

  Net appreciation of investments
19,245,122

 
40,965,946

     TOTAL INVESTMENT INCOME
22,020,439

 
47,691,366

 
 
 
 
Interest income on notes receivable from participants
177,284

 
181,551

Asset Transfers
74,671

 

 
 
 
 
         TOTAL ADDITIONS
43,997,577

 
66,997,131

 
 
 
 
Benefits distributed
(33,049,956
)
 
(18,671,664
)
Administrative fees
(145,070
)
 
(68,519
)
          TOTAL DISBURSEMENTS
(33,195,026
)
 
(18,740,183
)
 
 
 
 
Net increase in participants' balances during the year
10,802,551

 
48,256,948

 
 
 
 
Net assets available for benefits:
 
 
 
Beginning of year
298,760,784

 
250,503,836

 
 
 
 
END OF YEAR
$
309,563,335

 
$
298,760,784


The accompanying notes are an integral part of these financial statements.


5



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

NOTE 1. DESCRIPTION OF THE PLAN

The following description of the International Flavors & Fragrances Inc. Retirement Investment Fund Plan (the "Plan") is provided for general information purposes only. Participants should refer to the Plan document for complete information.

A. General/Eligibility:

The Plan is a defined contribution plan covering all U.S. based employees of International Flavors & Fragrances Inc. (“IFF”) and its domestic subsidiaries (the “Company”), with the exception of the unionized employees located in Jacksonville, Florida (the “Union Plan”). The Plan also covers certain employees who are U.S. citizens temporarily assigned to subsidiaries abroad. The Plan is subject to the provisions of the Employee Retirement Income Security Act of 1974, as amended, (“ERISA”). The Plan has been amended to reflect the provisions of the Economic Growth and Tax Relief Reconciliation Act of 2001, the Pension Protection Act of 2006, the Heroes Earnings and Assistance Relief Tax Act (“HEART”) of 2008 and the Workers, Retiree and Employer Recovery Act (“WRERA”) of 2008.
  
B. Administration of the Plan:

The Vanguard Fiduciary Trust Company is the Trustee of the Plan (“Vanguard” or the “Trustee”) and has custody of the assets. The Administrative Committee, whose appointment is overseen by the Company’s Board of Directors, is responsible for administration of the Plan; the Administrative Committee oversees the Trustee in carrying out the day-to-day activities of administration. The Investment Committee, whose appointment is also overseen by the Company’s Board of Directors, oversees the Plan’s investment options and management of Plan assets.

C. Investments:

During the 2014 plan year, the Plan changed the investment funds in which participants have the option to invest to funds with lower expected fees. In each case, a new fund is now available that had the same objective as the previous fund. The investments in the previous funds were transferred to new funds with the equivalent investment objective. Currently, the Plan offers participants various investment funds, common collective trusts and a brokerage option. Participants have the option to invest in, and direct any matching contribution towards any of the following funds:

IFF Common Stock Fund: This fund consists of common stock of the Company and investments in the Vanguard Prime Money Market fund as deemed necessary for orderly investment in such Company stock and for anticipated cash requirements.

Vanguard Inflation-Protected Securities Fund: Admiral Shares: The fund invests at least 80% of its assets in inflation-indexed bonds issued by the U.S. government, its agencies and instrumentalities, and corporations. The fund may invest in bonds of any maturity; however, its dollar-weighted average maturity is expected to be in a range of 7 to 20 years. At a minimum, all bonds purchased by the fund will be rated “investment grade” or, if unrated, will be considered by the advisor to be investment grade.

Vanguard Prime Money Market Fund: Institutional Shares: The fund invests in high-quality, short-term money market instruments, including certificates of deposit, banker’s acceptances, commercial paper, and other money market securities. To be considered high-quality, a security generally must be rated in one of the two highest credit-quality categories for short-term securities by at least two nationally recognized rating services (or by one, if only one rating service has rated the security). If unrated, the security must be determined by Vanguard to be of quality equivalent to those in the two highest credit-quality categories. The fund will invest more than 25% of its assets in securities issued by companies in the financial services industry. The fund will maintain a dollar-weighted average maturity of 60 days or less.

Vanguard Total Bond Market Index Fund: Institutional Shares: The fund employs an indexing investment approach designed to track the performance of the Barclays U.S. Aggregate Float Adjusted Bond Index. This index measures a wide spectrum of public, investment-grade, taxable, fixed income securities in the United States—including government, corporate, and international dollar-denominated bonds, as well as mortgage-backed and asset-backed securities, all with maturities of more than 1 year. The fund invests by sampling the index, meaning that it holds a range of securities that, in the aggregate, approximate the full index in terms of key risk factors and other characteristics. All of the fund’s investments will be selected through the sampling process, and at least 80% of the fund’s assets will be invested in bonds held in the index. The fund maintains a dollar-weighted average maturity consistent with that of the index, which currently ranges between 5 and 10 years.


6



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

Vanguard Total International Stock Index Fund: Institutional Shares: The fund employs an indexing investment approach designed to track the performance of the FTSE Global All Cap ex US Index, a free-float-adjusted market-capitalization-weighted index designed to measure equity market performance of companies located in developed and emerging markets, excluding the United States. The index includes more than 5,550 stocks of companies located in 46 countries. The fund invests substantially all of its assets in the common stocks included in its target index.

Vanguard Total Stock Market Index Fund: Institutional Shares: The fund employs an indexing investment approach designed to track the performance of the CRSP US Total Market Index, which represents approximately 100% of the investable U.S. stock market and includes large-, mid-, small-, and micro-cap stocks regularly traded on the New York Stock Exchange and Nasdaq. The fund invests by sampling the index, meaning that it holds a broadly diversified collection of securities that, in the aggregate, approximates the full Index in terms of key characteristics. These key characteristics include industry weightings and market capitalization, as well as certain financial measures, such as price/earnings ratio and dividend yield.

Vanguard Target Retirement Income Trust II: The trust invests in Vanguard mutual funds according to an asset allocation strategy designed for investors currently in retirement. The underlying funds are: Vanguard Total Bond Market II Index Fund, Vanguard Total Stock Market Index Fund, Vanguard Short-Term Inflation-Protected Securities Index Fund, Vanguard Total International Bond Index Fund and Vanguard Total International Stock Index Fund.

Vanguard Target Retirement Trust II: Consists of 11 separate trusts which invest in Vanguard mutual funds using an asset allocation strategy designed for investors planning to retire and leave the workforce in or within a few years of the participant's target retirement year (2010, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055 or 2060). The trust’s asset allocation will become more conservative over time. Within seven years after the target retirement year, the trust’s asset allocation should resemble that of the Vanguard Target Retirement Income Trust II. The underlying funds are: Vanguard Total Stock Market Index Fund, Vanguard Total Bond Market II Index Fund, Vanguard Total International Stock Index Fund, Vanguard Total International Bond Index Fund, and Vanguard Short-Term Inflation-Protected Securities Index Fund.

Vanguard Retirement Savings Trust III: Seeks stability of principal and a high level of current income consistent with a 2-3 year average maturity. The trust is a tax-exempt collective trust invested primarily in investment contracts issued by insurance companies and commercial banks, and similar types of fixed-principal investments. The trust intends to maintain a constant net asset value of $1.00 per share. Investments in Vanguard Retirement Savings Trust III are limited to participant-directed defined contribution plans and, with Vanguard’s approval, other qualified pension plans. For the plan years ended December 31, 2014 and 2013, the effective annual yields for the fund were 2.30% and 1.98%, respectively, and the crediting interest rates for the fund were 2.39% and 2.06%, respectively.

Vanguard Brokerage Option: This option allows participants to choose investments from outside the plan, giving them access to thousands of mutual funds from hundreds of fund families.
    
D. Cash or Deferred Wage and Salary Conversion Agreements:

Each participant enters into a Cash or Deferred Wage and Salary Conversion Agreement (“CODA”) with the Company, pursuant to which participant contributions to the Plan are made. Such agreement specifies the portion of the participant's compensation, as defined in the Plan, during each Plan year that the participant elects to forego such compensation portion and to have such amount contributed by the Company to the participant's account with the Plan. Any such election remains in effect until changed by the participant. The Administrative Committee may limit the amounts specified in such agreement to ensure compliance with the antidiscrimination standards of Section 401(k) of the Internal Revenue Code (the “Code”). Subject to these limitations, participants may contribute up to 50% of their annual base wages, before bonuses and overtime, up to the maximum amount permitted under the Code. Under the Code, the maximum amount permitted per participant was limited to $17,500 for both 2014 and 2013. Participants who will be age 50 or older by the end of the Plan year are eligible to make before-tax catch-up contributions. Catch-up contributions are limited to $5,500 for eligible employees for both 2014 and 2013. Amounts in excess of the Code limits may, at the election of the participant, either be contributed to the Plan on an after-tax basis or treated as contributions to the Company’s Deferred Compensation Plan (“DCP”) if an employee is eligible to participate in the DCP. If no election is made, the excess above the Code limits, plus any income less any loss allocable thereto, shall be distributed to the participant. Participants may also make Roth 401(k) contributions to the plan on an after-tax basis, subject to limitations under the Code, but the invested principal and earnings accumulate tax free.



7



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

E. Company Contributions:

The Company matches 100% of the first 4% of the participant’s base compensation contributed and 75% of contributions over 4% and up to 8% of the participant’s base compensation for (a) employees hired, re-hired or whose plan assets were transferred into the Plan on or after January 1, 2006 or (b) participants in which the sum of their age plus the number of service years was less than 70 as of December 31, 2007. For employees that were participants of the Plan before December 31, 2005, and who do not meet the criteria set forth in (a) and (b) above, the Company matches 50% of the first 6% of the participant’s compensation, as defined, that a participant contributes to the Plan, whether on a deferred or after-tax basis.
            
F. Vested Benefits/Forfeitures:

All participants vest immediately in their contributions to the Plan plus earnings thereon. Participants vest in the Company’s matching contribution after three years of continuous credited service. Forfeitures are applied towards employer matching contributions. For the year ended December 31, 2014, there were participant forfeitures of approximately $190,000 and forfeitures applied against employer contributions of approximately $163,000. For the year ended December 31, 2013, there were participant forfeitures of approximately $176,000 and forfeitures applied against employer contributions of approximately $88,000. At December 31, 2014 and 2013, forfeited non-vested amounts not yet applied to employer matching contributions approximated $130,000 and $103,700, respectively.

G. Individual Accounts:

A participant account is established and maintained for each active and former participant. Former participants are those who have terminated employment and have not yet received final payment of their account. The participant’s contributions and the Company's matching contribution are credited to the specific participant's account. The participant’s contributions and the Company’s matching contributions are invested in one or more of the Plan’s funds as directed by the participant.
    
Participants’ accounts are maintained on a share basis for all funds.

Interest earned and dividends paid are credited to each participant’s account based on accumulated daily account balances and reinvested in the respective fund.

H. Transfers Between Funds:

Participants may transfer all or a portion of their balance in any fund of the Plan to an alternative fund of the Plan. Exchanges must be in increments of 1%. Participants may make these transfers as frequently as on a daily basis by contacting Vanguard. However, participants will not be able to move money back into the same fund within 60 days. The 60-day limitation does not apply to the Vanguard Prime Money Market Fund and the Vanguard Retirement Savings Trust. The Vanguard Retirement Savings Trust has an equity wash provision which prohibits participants from making direct exchanges from this trust to a competing option, such as the Vanguard Prime Money Market Fund. Instead, participants must first exchange assets to a non-competing fund (typically an equity fund) and remain in that fund for 90 days before exchanging into a competing fund.

I. Notes Receivable from Participants and In-service Withdrawals:

Participants may borrow from the Plan as described in Note 5. A participant may withdraw all or a portion of his or her balances if bona fide financial necessity can be demonstrated in accordance with guidelines set forth in the Code (“hardship withdrawal”). A participant who makes a hardship withdrawal is limited by the Code as to the amount of CODA contribution a participant may make six months following distribution. The amounts of in-service withdrawals are limited by government regulation to amounts contributed under CODA agreements and earnings on such contributions.

J. Rollover Contributions:

Participants who receive eligible rollover distributions from another ERISA qualified plan may roll that distribution into the Plan. Eligible rollover distributions are those that come directly from either another qualified retirement plan or an Individual Retirement Account (“IRA”) which was set up to hold a distribution from another qualified retirement plan on a temporary basis. Rollover amounts can only include pre-tax contributions, plus any untaxed earnings thereon. All rollovers from such an IRA must


8



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

be made within one year of original distribution from the qualified retirement plan. Rollovers included in participant contributions were approximately $1,928,000 and $666,000 for 2014 and 2013, respectively.

K. Benefit Payments:

On termination of service due to death, disability or retirement, a participant or beneficiary may elect to receive benefits based on one of the following options:

A lump-sum payment;
Periodic payments.

Lump sum or installment payments may be made in cash or securities at the direction of the Plan’s Administrative Committee that directs the Trustee. When periodic payments are elected, a participant’s interest remains in the Plan and continues to receive allocations of earnings and losses until fully distributed.

L. Termination of Plan:

The Company may terminate the Plan at any time. In such event, the total amounts in participants' accounts shall continue in the trust for their benefit and become 100% vested in their account, and shall be distributed to their designated beneficiaries or them, as described in Note 1K above, upon retirement, death, disability or termination of employment. At the present time, the Company has no intention of terminating the Plan.

NOTE 2. SIGNIFICANT ACCOUNTING POLICIES
 
The following is a summary of the significant accounting policies followed by the Plan:

A. Method of Accounting:

The Plan’s financial statements are prepared on the accrual basis of accounting in conformity with accounting principles generally accepted in the United States of America.
    
Investment contracts held by a defined contribution plan are required to be reported at fair value. However, contract value is the relevant measurement attribute for that portion of the net assets available for benefits of a defined contribution plan attributable to fully benefit-responsive investment contracts because contract value is the amount participants would receive if they were to initiate permitted transactions under the terms of the plan. The Statement of Net Assets Available for Benefits presents the fair value of the investment contracts as well as the adjustment of the fully benefit-responsive investment contracts from fair value to contract value. The Statement of Changes in Net Assets Available for Benefits is prepared using the contract value basis for fully benefit-responsive investment contracts.

B. Valuation of Investments:

Investments are reported at fair value (see Note 3) in accordance with accounting guidance on fair value measurements and disclosures. Fair value is the price that would be recorded to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

C. Notes Receivable from Participants:

Notes receivable from participants are measured at their unpaid principal balance plus any accrued, but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the plan document. No allowance for credit losses has been recorded as of December 31, 2014 and 2013.

D. Security Transactions and Related Investment Income:

Security transactions are recorded on the trade date; interest income is recorded on the accrual basis and dividend income is recorded on the ex-dividend date. Capital gain distributions from mutual funds are recorded as dividend income.


9



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

The Statement of Changes in Net Assets Available for Benefits presents the net appreciation in the fair value of the Plan’s investments, which consists of the realized gains and losses and the unrealized appreciation (depreciation) on those investments.

E. Administrative Expenses:

All expenses that arise in connection with the administration of the Plan are paid by the Company except for loan administration fees (see Note 5) and discretionary portfolio management fees associated with the Vanguard Managed Account Program. In October 2014, the plan’s fee structure changed to a fixed per capita fee that is deducted from the participant’s account on an annual basis.

F. Contribution Income:

Contributions made in accordance with participants’ CODA agreements (see Note 1D) are recognized during the period in which the Company makes payroll deductions from the participants’ compensation. Company contributions are recognized during the same period in which the Company makes payroll deductions from the participants' compensation for the participant contributions.

G. Benefit Obligations:

Benefits are recorded when paid.

H.
Risks and Uncertainties:

The Plan provides for various investment options in any combination of investment funds described in Note 1C. Investment securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated with certain investment securities and the level of uncertainty related to changes in the value of investment securities, it is at least reasonably possible that changes in fair value could materially affect participants’ account balances and the amounts reported in the financial statements.

I. Use of Estimates:

The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying disclosures. Actual results could differ from those estimates.

NOTE 3. FAIR VALUE MEASUREMENTS

Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy:
    
 
 
Level 1: Quoted prices for identical instruments in active markets;
 
 
 
 
 
 
Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.
 
 
Level 3: Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

The IFF Common Stock Fund is valued based on the closing price of the underlying IFF common stock at the valuation date, plus any uninvested cash position. Mutual funds, which include money market funds, are registered investment companies and are valued at quoted market prices which represent the net asset value of the underlying shares held by the Plan at the valuation date. The Vanguard Brokerage Option invests in various mutual funds, which represent net asset value, as stated above. The Vanguard Target Retirement Income Trust II trusts are common collective trusts which invest in a Vanguard master trust, which then invests

10



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

in Vanguard mutual funds. The Trust II's investment in the master trust is considered to be a level 2 investment, however the master trust's investments in the underlying Vanguard mutual funds represents the net asset value, as stated above. The Vanguard Retirement Savings Trust III is a common collective trust that holds fully benefit responsive investment contracts. The collective trust fund invests in assets (typically contracts issued by insurance companies and commercial banks) and enters into “wrapper” contracts issued by third parties and invests in cash equivalents represented by shares in a money market fund. There were no investments classified as Level 3 for the periods ending December 31, 2014 and 2013.

While the Plan believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.

Investments Measured at Fair Value on a Recurring Basis
Investments measured at fair value on a recurring basis consisted of the following types of instruments as of December 31, 2014 and 2013 (Level 1 and 2 inputs are defined above):
 
Fair Value Measurements Using Input Type as of
 
December 31, 2014
 
Level 1
 
Level 2
 
Total
Mutual funds:
 
 
 
 
 
  Bond
$
15,153,589

 
$

 
$
15,153,589

  Domestic equity
35,584,442

 

 
35,584,442

  International equity
13,690,261

 

 
13,690,261

  Money market
5,087,350

 

 
5,087,350

Common stock fund

 
12,382,389

 
12,382,389

Common/collective trust funds

 
215,393,194

 
215,393,194

Brokerage account:
 
 
 
 
 
  Mutual funds:
 
 
 
 
 
      Bond
822,317

 

 
822,317

      Domestic equity
4,388,047

 

 
4,388,047

      International equity
713,596

 

 
713,596

      Money market
1,842,811

 

 
1,842,811

      Balanced
10,100

 

 
10,100

   Total investments measured at fair value
$
77,292,513

 
$
227,775,583

 
$
305,068,096


 
Fair Value Measurements Using Input Type as of
 
December 31, 2013
 
Level 1
 
Level 2
 
Total
Mutual funds:
 
 
 
 
 
  Bond
$
31,536,232

 
$

 
$
31,536,232

  Domestic equity
123,755,929

 

 
123,755,929

  International equity
26,857,010

 

 
26,857,010

  Money market
24,464,185

 

 
24,464,185

  Retirement income
59,534,428

 

 
59,534,428

Common stock fund

 
11,052,859

 
11,052,859

Common/collective trust funds

 
16,572,814

 
16,572,814

   Total investments measured at fair value
$
266,147,784

 
$
27,625,673

 
$
293,773,457




11



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

The following table sets forth additional disclosures of the Plan’s investments whose fair value is estimated using net asset value associated with common or collective trusts as of December 31, 2014 and 2013:
 
Unfunded Commitment
Redemption Commitment
Redemption Frequency
Notice Period
Vanguard Retirement Savings Trust III
$

$

Daily
None
Vanguard Target Retirement Income Trust II


Daily
None
Vanguard Target Retirement Trust II (2010-2060)


Daily
None


NOTE 4. TAX STATUS

The Internal Revenue Service has determined and informed Vanguard via a favorable determination letter dated March 31, 2008, that the prototype plan on which the Plan is based is designed in accordance with applicable sections of the Code. Since the date of the most recent request for determination to the Internal Revenue Service, the Company has made certain amendments to the Plan. However, the Company believes the Plan is designed to be and is currently being operated in compliance with the applicable requirements of the Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements. Participants will not be subject to income tax for contributions made on their behalf by the Company, nor on money earned by the Plan and credited to their account until such time as they withdraw their balance.

The Plan does not have any uncertain tax positions that would result in the recording of a liability (or asset) for unrecognized tax benefits as of December 31, 2014 and 2013. The Plan is subject to routine audits by taxing jurisdictions and has open tax years of 2011 to 2013. There are currently no audits in progress.

NOTE 5. NOTES RECEIVABLE FROM PARTICIPANTS

Upon application by a participant and validation as appropriate per the participant loan policy, the Trustee may make a loan to a participant in an amount not exceeding the lesser of 50% of the balance in the participant's account, or $50,000, with a minimum loan of $1,000. Loan withdrawals are allocated, as applicable, to the participant's balance in each of his or her selected investment funds. The loans are collateralized by the balance in the participants’ accounts and bear interest at a fixed rate equal to the Citibank, N.A. prime rate, plus 1/2 percent, but in no case in excess of the legal rate of interest. Interest rates are determined on the first business day of the calendar quarter. The Plan limits the total number of loans outstanding at any time for each participant to three loans. Loans are subject to a loan origination fee of $30 if they are requested on-line or $80 if they are requested through a participant services representative. Loan origination fees are deducted from the loan proceeds. In addition, participants with outstanding loans are subject to an annual administrative fee of $10, which is deducted from their respective accounts each July, except for the first year of the loan. Interest rates on outstanding participant loans ranged from 3.75% to 8.75% at December 31, 2014 and 2013.

NOTE 6. RELATED PARTY TRANSACTIONS

The IFF Common Stock Fund invests in shares of the Company’s common stock. The fund is designed as a means for employees to participate in the potential long-term growth of the Company. Investments in the IFF Company Stock Fund qualify as party-in-interest transactions.

Most Plan investments consist of shares in investment funds managed by Vanguard. Vanguard is a party-in-interest as defined by ERISA.

In the opinion of the Investment Committee, fees paid during the years for services rendered by parties-in-interest were based on customary and reasonable rates for such services.


12



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

NOTE 7. NET APPRECIATION/(DEPRECIATION) ON INVESTMENTS
The net appreciation/(depreciation) in the fair value of investments (including gains and losses on investments sold during the year) was as follows:
Year Ended December 31, 2014
 
International Flavors & Fragrances Common Stock Fund
 
Mutual Funds & Common/Collective Trusts
 
Net Appreciation/(Depreciation)
 IFF Common Stock Fund
$
1,923,519

 
$

 
$
1,923,519

 Vanguard 500 Index Fund

 
3,903,730

 
3,903,730

 Vanguard Equity Income Fund

 
486,115

 
486,115

 Vanguard Explorer Fund

 
(163,185
)
 
(163,185
)
Vanguard Inflation-Protected Securities Fund: Admiral Shares

 
(36,257
)
 
(36,257
)
 Vanguard International Growth Fund

 
(525,456
)
 
(525,456
)
 Vanguard Long-Term Investment Grade Fund

 
1,123,779

 
1,123,779

Vanguard Total Bond Market Index Fund: Institutional Shares

 
60,302

 
60,302

Vanguard Total International Stock Index Fund: Institutional Shares

 
(815,125
)
 
(815,125
)
Vanguard Total Stock Market Index Fund: Institutional Shares

 
1,245,600

 
1,245,600

 Vanguard Mid-Cap Index Fund

 
1,245,194

 
1,245,194

 Vanguard PRIMECAP Fund

 
2,020,941

 
2,020,941

 Vanguard Total Bond Market Index Fund

 
371,490

 
371,490

 Vanguard U.S. Growth Fund

 
1,018,091

 
1,018,091

 Vanguard Target Retirement 2010 Fund

 
71,048

 
71,048

 Vanguard Target Retirement 2015 Fund

 
480,380

 
480,380

 Vanguard Target Retirement 2020 Fund

 
263,526

 
263,526

 Vanguard Target Retirement 2025 Fund

 
620,022

 
620,022

 Vanguard Target Retirement 2030 Fund

 
250,372

 
250,372

 Vanguard Target Retirement 2035 Fund

 
581,748

 
581,748

 Vanguard Target Retirement 2040 Fund

 
253,457

 
253,457

 Vanguard Target Retirement 2045 Fund

 
286,713

 
286,713

 Vanguard Target Retirement 2050 Fund

 
100,782

 
100,782

 Vanguard Target Retirement Income Fund

 
58,840

 
58,840

Vanguard Target Retirement 2010 Trust II

 
152,206

 
152,206

Vanguard Target Retirement 2015 Trust II

 
291,107

 
291,107

Vanguard Target Retirement 2020 Trust II

 
911,879

 
911,879

Vanguard Target Retirement 2025 Trust II

 
800,975

 
800,975

Vanguard Target Retirement 2030 Trust II

 
691,591

 
691,591

Vanguard Target Retirement 2035 Trust II

 
702,399

 
702,399

Vanguard Target Retirement 2040 Trust II

 
322,227

 
322,227

Vanguard Target Retirement 2045 Trust II

 
179,280

 
179,280

Vanguard Target Retirement 2050 Trust II

 
67,517

 
67,517

Vanguard Target Retirement 2055 Trust II

 
29,071

 
29,071

Vanguard Target Retirement 2060 Trust II

 
15,719

 
15,719

Vanguard Target Retirement Income Trust II

 
78,600

 
78,600

Vanguard Brokerage Option

 
176,925

 
176,925

     Total
$
1,923,519

 
$
17,321,603

 
$
19,245,122


13



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

Year Ended December 31, 2013
 
International Flavors & Fragrances Common Stock Fund
 
Mutual Funds
 
Net Appreciation/(Depreciation)
 IFF Common Stock Fund
$
2,681,376

 
$

 
$
2,681,376

 Vanguard 500 Index Fund
 
 
12,714,871

 
12,714,871

 Vanguard Equity Income Fund
 
 
1,652,949

 
1,652,949

 Vanguard Explorer Fund
 
 
2,119,528

 
2,119,528

 Vanguard International Growth Fund
 
 
4,508,665

 
4,508,665

 Vanguard Long-Term Investment Grade Fund
 
 
(1,657,845
)
 
(1,657,845
)
 Vanguard Mid-Cap Index Fund
 
 
4,318,617

 
4,318,617

 Vanguard PRIMECAP Fund
 
 
3,844,398

 
3,844,398

 Vanguard Total Bond Market Index Fund
 
 
(885,982
)
 
(885,982
)
 Vanguard U.S. Growth Fund
 
 
4,100,577

 
4,100,577

 Vanguard Target Retirement 2010 Fund
 
 
72,656

 
72,656

 Vanguard Target Retirement 2015 Fund
 
 
963,478

 
963,478

 Vanguard Target Retirement 2020 Fund
 
 
504,912

 
504,912

 Vanguard Target Retirement 2025 Fund
 
 
1,600,161

 
1,600,161

 Vanguard Target Retirement 2030 Fund
 
 
709,857

 
709,857

 Vanguard Target Retirement 2035 Fund
 
 
1,737,334

 
1,737,334

 Vanguard Target Retirement 2040 Fund
 
 
715,327

 
715,327

 Vanguard Target Retirement 2045 Fund
 
 
888,940

 
888,940

 Vanguard Target Retirement 2050 Fund
 
 
312,136

 
312,136

 Vanguard Target Retirement Income Fund
 
 
63,991

 
63,991

 Total
$
2,681,376

 
$
38,284,570

 
$
40,965,946



14



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

NOTE 8. PLAN INVESTMENTS REPRESENTING 5% OR MORE OF THE PLAN'S NET ASSETS

Investments at fair value that represent 5% or more of the Plan's net assets at December 31, 2014 and 2013 were as follows:
 
 
2014
 
2013
Mutual Funds:
 
 
 
 
    Vanguard 500 Index Fund
$
 *
 
$
55,638,021

    Vanguard Prime Money Market Fund
 
 *
 
24,464,185

    Vanguard International Growth Fund
 
 *
 
26,857,010

    Vanguard Total Bond Market Index Fund
 
 *
 
18,010,135

    Vanguard Retirement Savings Trust
 
 *
 
16,572,814

    Vanguard Mid-Cap Index Fund
 
 *
 
17,373,910

    Vanguard PRIMECAP Fund
 
 *
 
15,771,040

    Vanguard U.S. Growth Fund
 
 *
 
15,608,555

    Vanguard Total Stock Market Index Fund: Institutional Shares
 
35,584,442

 
 *
    Vanguard Target Retirement 2015 Trust II
 
15,816,238

 
 *
    Vanguard Target Retirement 2020 Trust II
 
42,366,643

 
 *
    Vanguard Target Retirement 2025 Trust II
 
37,942,473

 
 *
    Vanguard Target Retirement 2030 Trust II
 
34,524,365

 
 *
    Vanguard Target Retirement 2035 Trust II
 
32,818,200

 
 *
    Vanguard Target Retirement 2040 Trust II
 
17,399,130

 
 *

*Fair value of funds did not represent 5% or more of Plan assets at the respective year-end.


15



INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
NOTES TO FINANCIAL STATEMENTS
DECEMBER 31, 2014 AND 2013

NOTE 9. RECONCILIATION OF FINANCIAL STATEMENTS TO SCHEDULE H OF FORM 5500

The following is a reconciliation of additions to net assets per the financial statements to Schedule H of Form 5500, for the year ended December 31, 2014:
Increase in Net Assets:
 
Per the Financial Statements
$
10,802,551

Current year change in Adjustments to Contract Value for Fully Benefit-Responsive Investment Contracts
180,234

Total Increase in Net Assets per Schedule H of Form 5500
$
10,982,785


There was no reconciliation needed for the year ended December 31, 2013.


16


SUPPLEMENTAL SCHEDULE
INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN
EIN No. 13-1432060
PLAN No. 001
FORM 5500
SCHEDULE H, LINE 4i – SCHEDULE OF ASSETS (HELD AT END OF YEAR)
DECEMBER 31, 2014
(a)
(b)
(c)
(d)
(e)
 
Identity of Issue, Borrower, Lessor, or Similar Party
Description of Investment, including Maturity Date, Rate of Interest, Collateral, Par or Maturity Value
Cost
Current Value
*
International Flavors & Fragrances Inc. Common Stock Fund
Company Stock Fund
a
$
12,382,389

*
Vanguard Retirement Savings Trust III
Common/Collective Trust
a
6,231,809

*
Vanguard Inflation-Protected Securities Fund: Admiral Shares
Mutual Fund
a
2,296,535

*
Vanguard Prime Money Market Fund: Institutional Shares
Mutual Fund
a
5,087,350

*
Vanguard Total Bond Market Index Fund: Institutional Shares
Mutual Fund
a
12,857,054

*
Vanguard Total International Stock Index Fund: Institutional Shares
Mutual Fund
a
13,690,261

*
Vanguard Total Stock Market Index Fund: Institutional Shares
Mutual Fund
a
35,584,442

*
Vanguard Target Retirement 2010 Trust II
Common/Collective Trust
a
9,372,929

*
Vanguard Target Retirement 2015 Trust II
Common/Collective Trust
a
15,816,238

*
Vanguard Target Retirement 2020 Trust II
Common/Collective Trust
a
42,366,643

*
Vanguard Target Retirement 2025 Trust II
Common/Collective Trust
a
37,942,473

*
Vanguard Target Retirement 2030 Trust II
Common/Collective Trust
a
34,524,365

*
Vanguard Target Retirement 2035 Trust II
Common/Collective Trust
a
32,818,200

*
Vanguard Target Retirement 2040 Trust II
Common/Collective Trust
a
17,399,130

*
Vanguard Target Retirement 2045 Trust II
Common/Collective Trust
a
9,016,768

*
Vanguard Target Retirement 2050 Trust II
Common/Collective Trust
a
3,371,998

*
Vanguard Target Retirement 2055 Trust II
Common/Collective Trust
a
833,093

*
Vanguard Target Retirement 2060 Trust II
Common/Collective Trust
a
675,241

*
Vanguard Target Retirement Income Trust II
Common/Collective Trust
a
5,024,307

*
Vanguard Brokerage Option (line 1c15)
Mutual Fund
a
7,776,871

*
Participant Loans
Varying maturity dates through 06/25/2024, interest ranging from 3.75% to 8.75%, per annum
 
4,674,351

 
 
 
 
$
309,742,447

* Indicates party-in-interest to the plan.
a The cost of participant-directed investments is not required to be disclosed.

See report of independent registered public accounting firm.


17



SIGNATURES


Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the employee benefit plan) have duly caused this annual report to be signed on its behalf by the undersigned hereunto duly authorized.


INTERNATIONAL FLAVORS & FRAGRANCES INC.
RETIREMENT INVESTMENT FUND PLAN

Date: June 29, 2015


By: /s/ Shelley Bellisle
Shelley Bellisle
Chairman, Administrative Committee


18





Exhibit 23.1

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



International Flavors & Fragrances Inc. Retirement Investment Fund Plan
New York, New York

We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-54423) of International Flavors & Fragrances, Inc. of our report dated June 29, 2015, relating to the financial statements and supplemental schedule of the International Flavors & Fragrances, Inc. Retirement Investment Fund Plan which appear in this Form 11-K.


/s/ Smolin, Lupin & Co., P.A.
Fairfield, New Jersey
June 29, 2015



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