Achieved double-digit sales growth; Reconfirms full year
guidance
Regulatory News:
International Flavors & Fragrances Inc. (NYSE: IFF)
(Euronext Paris: IFF) (TASE: IFF) reported financial results for
the first quarter ended March 31, 2019.
First Quarter 2019 Consolidated Summary:
Reported(GAAP)
Adjusted(Non-GAAP)¹
Sales
OperatingProfit
EPS Sales
OperatingProfit
EPS
EPSEx Amortization
Consolidated $1.3 B $164 M $0.96 $1.3 B $205 M
$1.24 $1.57
¹ Schedules at the end of this release contain reconciliations
of reported GAAP to non-GAAP metrics.
Management Commentary
“Our first quarter results were in line with our expectations
and reflect strong progress in the company’s transformation
following the Frutarom acquisition,” said Andreas Fibig, IFF
Chairman and CEO. “In the first quarter of 2019, we achieved solid
sales growth across all three of our divisions and maintained
strong profitability levels despite the continued higher raw
material cost environment. On a consolidated basis, the combination
of our legacy business performance, plus the addition of Frutarom,
yielded double-digit sales and adjusted operating profit
growth.
“We are executing well against our integration roadmap. For
those businesses where we have aligned our go-to-market approach
with IFF – North America Taste and IBR – growth is very strong,
increasing double-digits. We are also seeing great progress from
procurement synergies and are well underway in terms of our
manufacturing optimization plan. For 2019, we are confident that we
will achieve our $30 to $35 million cost savings goal as our
current run-rate savings are already in excess of this target.
“Looking forward, we expect sales growth and profitability to
improve in the second half of the year. We remain focused on
executing our strategy and integrating successfully, and by doing
so, we have reiterated our full year financial guidance.”
First Quarter 2019 Consolidated Financial Results
- Reported net sales for the first
quarter totaled $1.3 billion, an increase of 39% from$931.0 million
in 2018, including the contribution of sales related to Frutarom.
On a combined basis, currency neutral sales improved 3%, excluding
the contribution of acquisitions and divested businesses, with
growth across all segments.
- Reported earnings per share (EPS) for
the first quarter was $0.96 per diluted share versus $1.63 per
diluted share reported in 2018. Excluding those items that affect
comparability, adjusted EPS ex amortization was $1.57 per diluted
share in 2019 versus $1.78 in the year-ago period as adjusted
operating profit growth was more than offset by higher interest
expense and shares outstanding, both related to the Frutarom
acquisition.
First Quarter 2019 Segment Summary: Growth vs. Prior
Year
Reported (GAAP) Currency Neutral
(Non-GAAP) Sales Segment Profit
Sales Segment Profit Scent 1% (8)% 4%
(3)%
Taste (1)% (3)% 2% (1)%
Frutarom -
- - -
Scent Business Unit
- On a reported basis, sales increased
1%, or $6.4 million, to $488.4 million. Currency neutral sales
improved 4%, with growth in nearly all regions and categories.
Performance was strongest in Fine Fragrances, increasing
double-digits, led by strong new win performance. Consumer
Fragrances grew mid-single digits, with the strongest growth in
Home Care and Fabric Care. Fragrance Ingredients was challenged as
price increases related to higher raw material costs were more than
offset by volume declines.
- Scent segment profit decreased 8% on a
reported and 3% on a currency neutral basis as the benefits from
cost and productivity initiatives were more than offset by
unfavorable price to input costs.
Taste Business Unit
- On a reported basis, sales decreased
1%, or $4.4 million, to $444.6 million. Currency neutral sales
improved 2%, with growth in three of four regions. Performance in
the quarter was driven by mid-single digit growth in Greater Asia,
where India and Indonesia grew double-digits, and EAME, led by
strong growth in Africa and the Middle East as well as Western
Europe. In North America, year-over-year improvements continue to
be led by TastePoint. Latin America declined primarily due to
volumes with multinational customers.
- Taste segment profit decreased 3% on a
reported basis and 1% on a currency neutral basis, as volume growth
and the benefits from productivity initiatives were more than
offset by unfavorable price to raw material costs and mix.
Frutarom Business Unit
- On a reported basis, sales were $364.4
million. On a standalone basis, currency neutral sales grew 3%,
excluding the contribution of acquisitions and divested businesses.
Performance was driven by strong growth in Taste, led by
double-digit gains in North America, and solid increases in Savory
Solutions, which more than offset declines in F&F ingredients
and Natural Colors.
- Segment profit contributed $29 million
in the first quarter; $68 million excluding amortization. Margin
performance continued to be driven by disciplined cost
management.
The Company reconfirms its 2019 guidance as follows:
Guidance Sales $5.2B - $5.3B
Adjusted EPS (1) $4.90 - $5.10
Adjusted EPS ex
amortization (1) $6.30 - $6.50
1 See Use of Non-GAAP Financial Measures
A copy of the Company’s Quarterly Report on Form 10-Q will be
available on its website at www.iff.com or at www.sec.gov by May 8,
2019.
Audio Webcast
A live webcast to discuss the Company’s first quarter 2019
financial results will be held on May 7, 2019, at 10:00 a.m. ET.
The webcast and accompanying slide presentation may be accessed on
the Company's IR website at ir.iff.com. For those unable to listen
to the live webcast, a recorded version 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.
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 guidance for full year 2019,
expected impact of the acquisition of Frutarom, including cost
savings, and our ability to accelerate growth and profitability in
2019. 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 February 26, 2019 and subsequent filings
with the SEC, including the Company’s Quarterly Reports on Form
10-Q. 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)
risks related to the integration of the Frutarom business,
including whether we will realize the benefits anticipated from the
acquisition in the expected time frame; (2) unanticipated costs,
liabilities, charges or expenses resulting from the Frutarom
acquisition, (3) the increase in the Company’s leverage resulting
from the additional debt incurred to pay a portion of the
consideration for Frutarom and its impact on the Company’s
liquidity and ability to return capital to its shareholders, (4)
the Company’s ability to successfully market to its expanded and
decentralized Taste and Frutarom customer base, (5) the Company’s
ability to effectively compete in its market and develop and
introduce new products that meet customers’ needs, (6) the
Company’s ability to successfully develop innovative and
cost-effective products that allow customers to achieve their own
profitability expectations, (7) the impact of the disruption in the
Company’s manufacturing operations, (8) the impact of a disruption
in the Company’s supply chain, including the inability to obtain
ingredients and raw materials from third parties, (9) volatility
and increases in the price of raw materials, energy and
transportation, (10) the Company’s ability to comply with, and the
costs associated with compliance with, regulatory requirements and
industry standards, including regarding product safety, quality,
efficacy and environmental impact, (11) the impact of any failure
or interruption of the Company’s key information technology systems
or a breach of information security, (12) the Company’s ability to
react in a timely and cost-effective manner to changes in consumer
preferences and demands, (13) the Company’s ability to establish
and manage collaborations, joint ventures or partnership that lead
to development or commercialization of products, (14) the Company’s
ability to benefit from its investments and expansion in emerging
markets; (15) the impact of currency fluctuations or devaluations
in the principal foreign markets in which it operates; (16)
economic, regulatory and political risks associated with the
Company’s international operations, (17) the impact of global
economic uncertainty on demand for consumer products, (18) the
inability to retain key personnel; (19) the Company’s ability to
comply with, and the costs associated with compliance with, U.S.
and foreign environmental protection laws, (20) the Company’s
ability to realize the benefits of its cost and productivity
initiatives, (21) the Company’s ability to successfully manage its
working capital and inventory balances, (22) the impact of the
failure to comply with U.S. or foreign anti-corruption and
anti-bribery laws and regulations, including the U.S. Foreign
Corrupt Practices Act, (23) the Company’s ability to protect its
intellectual property rights, (24) the impact of the outcome of
legal claims, regulatory investigations and litigation, (25)
changes in market conditions or governmental regulations relating
to our pension and postretirement obligations, (26) the impact of
future impairment of our tangible or intangible long-lived assets,
(27) the impact of changes in federal, state, local and
international tax legislation or policies, including the Tax Cuts
and Jobs Act, with respect to transfer pricing and state aid, and
adverse results of tax audits, assessments, or disputes, (28) the
effect of potential government regulation on certain product
development initiatives, and restrictions or costs that may be
imposed on the Company or its operations as a result, and (29) the
impact of the United Kingdom’s expected departure from the European
Union. 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.
Use of Non-GAAP Financial
Measures
We provide in this press release non-GAAP financial measures,
including: (i) currency neutral sales, which eliminates the effects
that result from translating our international sales in U.S.
dollars; (ii) adjusted operating profit and adjusted EPS, which
exclude restructuring costs and other significant items of a
non-recurring and/or non-operational nature such as gains on sale
of assets, operational improvement initiatives, integration related
costs, FDA mandated product recall costs, acquisition related
costs, Frutarom acquisition related costs, U.S. Tax reform (often
referred to as “Items Impacting Comparability); (iii) adjusted EPS
ex amortization, which excludes Items Impacting Comparability and
the amortization of acquisition related intangible assets; and (iv)
currency neutral adjusted EPS ex amortization, which eliminates the
effects that result from translating our international sales in
U.S. dollars on adjusted EPS ex amortization.
These non-GAAP measures are intended to provide additional
information regarding our underlying operating results and
comparable year-over-year performance. 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 our historical and expected future results and
financial condition, we believe 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. With respect to the
redemption value adjustment to EPS, the Company excluded this
adjustment as (i) the amount is not believed to be a measure of
earnings and is excluded from the net income attributable to IFF;
and (ii) the Company believes that investors may benefit from an
understanding of the Company’s results without giving effect to
this adjustment. These non-GAAP measures should not be considered
in isolation or as substitutes for analysis of the Company’s
results under GAAP and may not be comparable to other companies’
calculation of such metrics.
When we provide our expectations for adjusted EPS and adjusted
EPS ex amortization for our full year 2019 guidance, the closest
corresponding GAAP measure and a reconciliation of the differences
between the non-GAAP expectation and the corresponding GAAP measure
is not available without unreasonable effort due to length of the
forecasted period and potential variability, complexity and low
visibility as to items such as future contingencies and other costs
that would be excluded from the GAAP measure, and the tax impact of
such items, in the relevant future period. The variability of the
excluded items may have a significant, and potentially
unpredictable, impact on our future GAAP results.
In the fourth quarter of fiscal year 2018, we began including
Adjusted (Non-GAAP) EPS ex. Amortization as a key non-GAAP
financial measure of our business. Full amortization expense of
intangible assets acquired in connection with acquisitions will be
excluded from Adjusted (Non-GAAP) EPS ex. Amortization calculation.
The exclusion of amortization expense allows comparison of
operating results that are consistent over time for newly and
long-held businesses and with both acquisitive and non-acquisitive
peer companies. We believe this calculation will provide a more
accurate presentation in this and in future periods in the event of
additional acquisitions. Further, this allows the investors to
evaluate and understand operating trends excluding the impact on
operating income and earnings per diluted share. In addition, the
Frutarom acquisition related costs have been separated from costs
related to prior acquisitions. The Frutarom acquisition costs
represent a significant balance and we believe this amount should
be shown separately to provide an accurate presentation of the
acquisition related costs. Our GAAP results and GAAP metrics do not
change, and this change has no effect on day to day business
operations, or how we manage our business. For Frutarom, we present
segment profit excluding amortization expense as it allows
comparison of operating results that are consistent over time for
newly and long-held businesses and with both acquisitive and
non-acquisitive peer companies.
We calculated “combined” numbers by combining (i) our results
(including Frutarom from January 1, 2019 through March 31, 2019)
with (ii) the results of Frutarom prior to its acquisition by us on
October 4, 2018, and adjusting for divestitures of Frutarom
businesses since October 4, 2018, but do not include any other
adjustments that would have been made had we owned Frutarom for
such periods prior to October 4, 2018.
Meet IFF
International Flavors & Fragrances Inc. (NYSE:IFF) (Euronext
Paris: IFF) (TASE: IFF) is a leading innovator of scent, taste, and
nutrition, with 97 manufacturing facilities, 105 R&D centers,
and 39,000 customers globally. 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 experience in more than 90,000 unique products sold
annually. Our 13,000 team members globally take advantage of
leading consumer insights, naturals exploration, research and
development, creative expertise, and customer intimacy to develop
differentiated offerings for consumer products. Learn more at
www.iff.com, Twitter ,
Facebook, Instagram, and LinkedIn.
International Flavors & Fragrances
Inc.
Consolidated Income Statement
(Amounts in thousands except per share
data)
(Unaudited)
Three Months Ended March 31, 2019
2018 % Change Net sales $1,297,402
$930,928 39 % Cost of goods sold 766,143 525,119 46 % Gross profit
531,259 405,809 31 % Research and development expenses 90,596
78,476 15 % Selling and administrative expenses 213,182 142,644 49
% Amortization of acquisition-related intangibles 47,625 9,185 NMF
Restructuring and other charges, net 16,174 717 NMF Gains on sales
of fixed assets (188) (69) 172 % Operating profit 163,870 174,856
(6)% Interest expense 36,572 16,595 120 % Other income, net (7,278)
(576) NMF Income before taxes 134,576 158,837 (15)% Taxes on income
23,362 29,421 (21)% Net income $ 111,214 $129,416 (14)%
Net income attributable to
noncontrollinginterest
2,385 - NMF Net income attributable to IFF $ 108,829 $129,416 (16)%
Net income per share - basic(1) $ 0.97 $ 1.63 Net income per
share - diluted(1) $ 0.96 $ 1.63 Average shares outstanding
Basic 111,864 79,018 Diluted 113,389 79,393 (1)
For 2019, net income per share
reflectsadjustments related to the redemptionvalue of certain
redeemablenoncontrolling interests.
NMF Not meaningful
International Flavors & Fragrances
Inc.
Condensed Consolidated Balance
Sheet
(Amounts in thousands)
(Unaudited)
March 31, December 31, 2019
2018 Cash, cash equivalents, and restricted cash $ 497,129 $
648,522 Receivables 1,003,965 937,765 Inventories 1,114,488
1,078,537 Other current assets 310,243 277,036 Total current assets
2,925,825 2,941,860 Property, plant and equipment, net
1,294,029 1,241,152 Goodwill and other intangibles, net 8,408,177
8,417,710 Other assets 583,389 288,673 Total assets $13,211,420 $
12,889,395 Short term borrowings $ 84,003 $ 48,642 Other
current liabilities 1,060,131 1,079,669 Total current liabilities
1,144,134 1,128,311 Long-term debt 4,421,430 4,504,417
Non-current liabilities 1,376,667 1,131,487 Redeemable
noncontrolling interests 114,711 81,806 Shareholders' equity
6,154,478 6,043,374 Total liabilities and shareholders' equity
$13,211,420 $ 12,889,395
International Flavors & Fragrances
Inc.
Consolidated Statement of Cash
Flows
(Amounts in thousands)
(Unaudited)
Three Months EndedMarch
31,
2019 2018 Cash flows from operating
activities: Net income $111,214 $129,416 Adjustments to
reconcile to net cash provided by (used in) operating activities
Depreciation and amortization 81,775 33,384 Deferred income taxes
(12,389) 18,404 Gains on sale of assets (188) (69) Stock-based
compensation 7,604 7,620 Pension contributions (3,956) (4,387)
Litigation settlement - (12,969) Changes in assets and liabilities,
net of acquisitions: Trade receivables (55,935) (61,301)
Inventories (24,719) (30,185) Accounts payable 8,988 (8,435)
Accruals for incentive compensation (36,969) (36,583) Other current
payables and accrued expenses (11,321) (18,540) Other assets
(9,978) (26,035) Other liabilities (6,894) (1,715) Net cash
provided by (used in) operating activities 47,232 (11,395)
Cash flows from investing activities: Cash paid for
acquisitions, net of cash received (33,895) (22) Additions to
property, plant and equipment (57,609) (33,105) Proceeds from life
insurance contracts 1,890 - Maturity of net investment hedges -
(2,405) Proceeds from disposal of assets 3,970 293 Contingent
consideration paid (4,655) - Net cash used in investing activities
(90,299) (35,239)
Cash flows from financing
activities: Cash dividends paid to shareholders (77,779)
(54,420) Increase in revolving credit facility and short term
borrowings 2,895 53,688 Repayments on debt (36,156) - Proceeds from
issuance of stock in connection with stock options 200 - Employee
withholding taxes paid (1,339) (3,266) Purchase of treasury stock -
(10,617) Net cash used in financing activities (112,179) (14,615)
Effect of exchange rates changes on cash and cash equivalents 3,853
(1,521)
Net change in cash and cash equivalents (151,393)
(62,770)
Cash and cash equivalents at beginning of year
648,522 368,046
Cash and cash equivalents at end of period
$497,129 $305,276
International Flavors & Fragrances
Inc.
Business Unit Performance
(Amounts in thousands)
(Unaudited)
Three Months Ended March 31, 2019
2018 Net Sales Taste $ 444,602 $ 449,019 Scent
488,352 481,909 Frutarom 364,448 -
Consolidated 1,297,402
930,928
Segment Profit Taste 108,455 111,564 Scent
85,815 93,277 Frutarom 29,091 - Global Expenses (18,673) (23,825)
Operational Improvement Initiatives (406) (1,026) Acquisition
Related Costs - 514 Integration Related Costs (14,897) -
Restructuring and Other Charges, net (16,174) (717) Gains on Sale
of Assets 188 69 FDA Mandated Product Recall - (5,000) Frutarom
Acquisition Related Costs (9,529) -
Operating profit 163,870
174,856 Interest Expense (36,572) (16,595) Other income, net
7,278 576
Income before taxes $ 134,576 $ 158,837
Operating Margin Taste 24.4 % 24.8 % Scent 17.6 % 19.4 %
Frutarom 8.0 % N/A Consolidated 12.6 % 18.8 %
International Flavors & Fragrances
Inc.
GAAP to Non-GAAP Reconciliation
Foreign Exchange Impact
(Unaudited)
Q1 Taste
Sales
SegmentProfit
% Change - Reported (GAAP) -1% -3% Currency
Impact 3% 2%
% Change - Currency Neutral 2%
-1%
Q1 Scent
Sales
SegmentProfit
% Change - Reported (GAAP) 1% -8% Currency
Impact 3% 5%
% Change - Currency Neutral 4%
-3%
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.
Reconciliation of Gross Profit First Quarter
2019 2018 Reported (GAAP) $ 531,259 $ 405,809
Operational Improvement Initiatives (a) 406 453 Integration Related
Costs (c) 156 - FDA Mandated Product Recall (e) - 5,000 Frutarom
Acquisition Related Costs (g) 7,850 - Adjusted (Non-GAAP) $ 539,671
$ 411,262
Reconciliation of Selling and Administrative
Expenses First Quarter 2019 2018 Reported
(GAAP) $ 213,182 $ 142,644 Acquisition Related Costs (b) - 514
Integration Related Costs (c) (14,557) - Frutarom Acquisition
Related Costs (g) (1,679) - Adjusted (Non-GAAP) $ 196,946 $ 143,158
Reconciliation of Operating Profit First
Quarter 2019 2018 Reported (GAAP) $ 163,870 $
174,856 Operational Improvement Initiatives (a) 406 1,026
Acquisition Related Costs (b) - (514) Integration Related Costs (c)
14,897 - Restructuring and Other Charges, net (d) 16,174 717 Gains
on Sale of Assets (188) (69) FDA Mandated Product Recall (e) -
5,000 Frutarom Acquisition Related Costs (g) 9,529 - Adjusted
(Non-GAAP) $ 204,688 $ 181,016
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.
Reconciliation of Net Income First
Quarter 2019 2018
Income beforetaxes
Taxes onincome (h)
Net IncomeAttributable
toIFF (i)
Diluted EPS
Income beforetaxes
Taxes onincome (h)
Net IncomeAttributable
toIFF
Diluted EPS (j)
Reported (GAAP) $ 134,576 $ 23,362 $ 108,829 $ 0.96 $ 158,837 $
29,421 $ 129,416 $ 1.63 Operational Improvement Initiatives (a) 406
142 264 - 1,026 294 732 0.01 Acquisition Related Costs (b) - - - -
(514) (134) (380) - Integration Related Costs (c) 14,897 3,349
11,548 0.10 - - - - Restructuring and Other Charges, net (d) 16,174
4,031 12,143 0.11 717 169 548 0.01 Gains on Sale of Assets (188)
(43) (145) - (69) (17) (52) - FDA Mandated Product Recall (e) - - -
- 5,000 1,196 3,804 0.05 U.S. Tax Reform (f) - - - - - (649) 649
0.01 Frutarom Acquisition Related Costs (g) 9,529 1,530 7,999 0.07
- - - - Adjusted (Non-GAAP) $ 175,394 $ 32,371 $ 140,638 $ 1.24 $
164,997 $ 30,280 $ 134,717 $ 1.69
Reconciliation of
Adjusted (Non-GAAP) EPS ex. Amortization First Quarter
Numerator 2019 2018 Adjusted (Non-GAAP) Net
Income $ 140,638 $ 134,717
Amortization of Acquisition related
IntangibleAssets
47,625 9,185
Tax impact on Amortization of Acquisition
relatedIntangible Assets
10,196 2,336
Amortization of Acquisition related
IntangibleAssets, net of tax (k)
37,429 6,849
Adjusted (Non-GAAP) Net Income
ex.Amortization
178,067 141,566
Denominator
Weighted average shares assumingdilution
(diluted)
113,389 79,393 Adjusted (Non-GAAP) EPS ex. Amortization $ 1.57 $
1.78 (a) Represents accelerated depreciation related to a
plant relocation in India, as well as a lab closure in Taiwan for
2018. (b)
Represents adjustments to the contingent
consideration payable for PowderPure, and transaction costs related
to
Fragrance Resources and PowderPure within
Selling and administrative expenses.
(c)
For 2019, represents costs related to the
integration of the Frutarom acquisition, principally advisory
services. For 2018, represents costs related to the integration of
the David Michael and FragranceResources acquisitions.
(d) For 2019, represents severance costs related primarily to
Scent. For 2018, represents severance costs related to the 2017
Productivity Program and Taiwan lab closure. (e) Represents losses
related to the FDA mandated recall. (f) Represents charges incurred
related to enactment of certain U.S. tax legislation changes in
December 2017. (g)
Represents transaction-related costs and
expenses related to the acquisition of Frutarom. Amount primarily
includes $7.9 million of amortization for inventory "step-up" costs
and $1.7 million oftransaction costs included in Selling and
administrative expenses.
(h)
The income tax expense (benefit) on
non-GAAP adjustments is computed in accordance with ASC 740 using
the same methodology as the GAAP provision of income taxes. Income
tax effects of non-GAAP adjustments are calculated based on the
applicable statutory tax rate for each jurisdiction in which such
charges were incurred, except for those items which are non-taxable
for which the taxexpense (benefit) was calculated at 0%. For fiscal
year 2019, these non-GAAP adjustments were not subject to foreign
tax credits or valuation allowances, but to the extent that such
factors areapplicable to any future non-GAAP adjustments we will
take such factors into consideration in calculating the tax expense
(benefit). For amortization, the tax benefit has been calculated
based on thestatutory rate on a country by country basis.
(i) For 2019, net income is reduced by income attributable to
noncontrolling interest of $2.4M. (j) The sum of these items does
not foot due to rounding. (k) Represents all amortization of
intangible assets acquired in connection with acquisitions, net of
tax.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20190506005749/en/
Michael DeVeauHead of Investor Relations and Communications
& Divisional CFO, Scent212.708.7164Michael.DeVeau@iff.com
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