On August 5, 2025, the Company announced it had entered into a definitive agreement to divest its Soy Crush, Concentrates, and Lecithin business (the “SCL disposal group”), which was included in the Food Ingredients segment. This sale aligned with IFF’s strategy to strengthen its portfolio and supports the ongoing evaluation of strategic alternatives for the Food Ingredients segment.

The Company completed the divestiture on March 2, 2026, and received cash proceeds of approximately $105 million and recognized a pre-tax loss of approximately $7 million, presented in Losses on business disposals on the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) for the three months ended March 31, 2026. This is in addition to the life-to-date loss on assets classified as held for sale of $115 million recognized through December 31, 2025.

The sale consideration is subject to certain post-closing adjustments in accordance with the transaction agreement.

The income tax benefit recognized was approximately $1 million for the three months ended March 31, 2026. This is in addition to approximately $27 million of income tax benefit that was recognized for the year ended December 31, 2025 for a total income tax benefit of $28 million.


(DOLLARS IN MILLIONS)
Cash proceeds from the buyer	$	105
Direct costs to sell	(2)
Fair value of sale consideration	$	103

The carrying value of net assets associated with the SCL disposal group as of the disposal date was approximately $110 million. The major classes of assets and liabilities sold consisted of the following:


(DOLLARS IN MILLIONS)	March 2, 2026
Assets
Trade receivables, net	$	22
Inventories	48
Property, plant and equipment, net	99
Other intangible assets, net	89
Operating lease right-of-use assets	7
Other assets	9
Less: Loss recognized on assets held-for-sale	(115)
Total assets	159
Liabilities
Accounts payable	$	41
Other liabilities	8
Total liabilities	49
Carrying value of net assets	$	110

The Company’s Consolidated Balance Sheet as of December 31, 2025 included the carrying amounts of the assets and liabilities of the SCL disposal group as held for sale.


(DOLLARS IN MILLIONS)	December 31, 2025
Assets

Trade receivables, net	$	25
Inventories	37
Property, plant and equipment, net	98

Other intangible assets, net	89
Operating lease right-of-use assets	7
Other assets	10
Less: Loss recognized on assets held-for-sale	(115)
Total assets held-for-sale	$	151
Liabilities
Accounts payable	$	34

Other liabilities	10
Total liabilities held-for-sale	$	44