v3.26.1
Segment Information
 3 Months Ended
Mar. 31, 2026
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company’s reportable segments are: Taste, Food Ingredients, Health & Biosciences, and Scent. Prior to the sale of the Pharma Solutions disposal group in the second quarter of 2025, Pharma Solutions was also a reportable segment.
The Company’s CODM evaluates the performance of these reportable segments based on its Adjusted Operating EBITDA, which is defined as Income (loss) before taxes, depreciation and amortization expense, interest expense, restructuring and other charges and certain items that are not related to recurring operations.
The Company’s CODM uses Adjusted Operating EBITDA to evaluate segment performance in deciding whether to reinvest resources into the respective segment or into other parts of the entity. Budget versus actual results of Adjusted Operating EBITDA is used in assessing performance of the segment and in establishing certain compensation payouts. The Company’s CODM also uses Adjusted Operating EBITDA in competitive analysis by benchmarking to the Company’s competitors.
The Company’s CODM does not use assets by segment to evaluate segment performance or allocate resources and thus, total assets by segment are not disclosed.
Reportable segment information was as follows:
Three Months Ended March 31, 2026
TasteFood IngredientsHealth & BiosciencesScentTotal
Net sales $656 $839 $595 $651 $2,741 
Cost of sales (375)(646)(327)(375)
Research & development expenses (43)(14)(55)(54)
Selling & administrative expenses (101)(99)(92)(92)
Depreciation expense add-back (a) 16 34 32 18 
Adjusted Operating EBITDA$153 $114 $153 $148 $568 

Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA$568 
Depreciation & Amortization(246)
Interest Expense(44)
Other Expense, net (b)(13)
Restructuring and Other Charges (c)(6)
Losses on Business Disposals (e)(7)
Divestiture Costs (f)(24)
Strategic Initiative Costs (g)(9)
Regulatory Costs (h)(10)
Income Before Taxes$209 
Three Months Ended March 31, 2025
TasteFood IngredientsHealth & BiosciencesScentPharma SolutionsTotal
Net sales$627 $796 $540 $614 $266 $2,843 
Cost of sales(377)(609)(298)(344)(180)
Research & development expenses (40)(12)(52)(55)(5)
Selling & administrative expenses (94)(92)(81)(86)(32)
Depreciation expense add-back (a) 15 28 29 15 5 
Adjusted Operating EBITDA$131 $111 $138 $144 $54 $578 

Reconciliation of Adjusted Operating EBITDA:
Total Adjusted Operating EBITDA$578 
Depreciation & Amortization(236)
Interest Expense(71)
Other Expense, net (b)(20)
Restructuring and Other Charges (c)(17)
Impairment of Goodwill (d)(1,153)
Divestiture Costs (f)(51)
Strategic Initiatives Costs (g)(8)
Regulatory Costs (h)(11)
Other (i)(5)
Loss Before Taxes$(994)
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(a)There is depreciation recorded within cost of sales, research & development expenses, and selling & administrative expenses, which is then added back to calculate segment Adjusted Operating EBITDA. This reflects how the CODM reviews Segment results.
(b)
Please refer to Note 8 for additional information.
(c)Represents costs related to severance as part of the IFF Productivity Program.
(d)For 2025, represents the impairment of goodwill related to the Food Ingredients reporting unit.
(e)For 2026, primarily represents losses recognized as part of the divestiture of the Soy, Concentrates and Lecithin disposal group.
(f)For 2026 and 2025, primarily represents costs related to the Company’s completed and anticipated divestitures. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
(g)Represents costs related to the Company’s strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services (GBS) Centers. In 2026, the GBS reorganization has been expanded to include additional functions such as customer service, supply chain and logistics in addition to human resources, accounting and finance, as well as additional efforts to automate processes and expand the use of artificial intelligence (AI) for these functions. These costs primarily consisted of external consulting fees and salaries of individuals who are fully dedicated to such efforts. Costs to develop software and AI are only included to the extent that they do not qualify for capitalization.
(h)Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses.
(i)For 2025, represents the net impact of costs related to severance, including accelerated stock compensation expense, for certain executives who have separated from the Company, in addition to consulting costs related to the Company’s implementation of a phased restructuring initiative aimed at optimizing its legal entity framework.
Segment capital expenditures consisted as follows:
Three Months Ended March 31,
(DOLLARS IN MILLIONS)20262025
Taste$24 $27 
Food Ingredients50 60 
Health & Biosciences55 40 
Scent 36 24 
Pharma Solutions— 28 
Consolidated $165 $179 
Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows:
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20262025
Europe, Africa and Middle East$949 $952 
Greater Asia656 670 
North America788 868 
Latin America348 353 
Consolidated$2,741 $2,843 
 Three Months Ended March 31,
(DOLLARS IN MILLIONS)20262025
Net sales related to the U.S.$741 $801 
Net sales attributed to all foreign countries2,000 2,042 
No country other than the U.S. had net sales greater than 10% of total consolidated net sales for each of the three months ended March 31, 2026 and 2025.