8-K 1 a8k04162007.txt 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) April 16, 2007 ----------------------------- INTERNATIONAL FLAVORS & FRAGRANCES INC. ------------------------------------------------------------------------------- (Exact Name of Registrant as Specified in Charter) New York 1-4858 13-1432060 ------------------------------------------------------------------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification No.) 521 West 57th Street, New York, New York 10019 ------------------------------------------------------------------------------- (Address of Principal Executive Offices) (Zip Code) Registrant's telephone number, including area code (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 (see General Instruction A.2. below): |_| 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 9. Regulation FD Disclosure Effective January 1, 2007, International Flavors & Fragrances Inc. (the "Company" or "IFF") was reorganized into two business segments that reflect its Flavor and Fragrance businesses. This reorganization allows IFF to sharpen its focus on these businesses to drive future profitable growth. Separate individuals in the newly created positions of Group Presidents will oversee these business segments and report directly to the Chief Executive Officer ("CEO"). The Company's CEO evaluates the performance of each business segment based on segment profit. Flavor and Fragrance business segments will maintain a regional structure for sales, marketing and creative development. Certain research and development ("R&D") activities will also be maintained regionally with each business segment focused on its long term strategic objectives. The Company will continue to leverage operating and creative efficiencies achieved through a centralized support structure. Global marketing, supply chain management, corporate R&D, human resources, finance and legal will continue to report to the CEO. Global expenses represent corporate and headquarters-related expenses which include legal, finance, human resource and other administrative expenses which were not allocable to the segments. In anticipation of earnings announcements for 2007, the following information is being furnished as a result of the reorganization of the geographic regions into two business segments, flavors and fragrances, under which the Company operates: 1. Unaudited as-adjusted quarterly segment information for the three months ended March 31, 2006 and 2005. 2. Unaudited as-adjusted quarterly segment information for the three and six months ended June 30, 2006 and 2005. 3. Unaudited as-adjusted quarterly segment information for the three and nine months ended September 30, 2006 and 2005. 4. Unaudited as-adjusted segment information as of and for the three and twelve months ended December 31, 2006 and 2005. Item 9.01 Financial Statements and Exhibits (c) Exhibits: 99.1 Unaudited as-adjusted quarterly segment information for the three months ended March 31, 2006 and 2005. 99.2 Unaudited as-adjusted quarterly segment information for the three and six months ended June 30, 2006 and 2005. 99.3 Unaudited as-adjusted quarterly segment information for the three and nine months ended September 30, 2006 and 2005. 99.4 Unaudited as-adjusted segment information as of and for the three and twelve months ended December 31, 2006 and 2005. 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. Dated: April 17, 2007 By: /s/ Douglas J. Wetmore ------------------------------------ Name: Douglas J. Wetmore Title: Senior Vice President, Chief Financial Officer EXHIBITS No. Description ---- ------------ 99.1 Unaudited as-adjusted quarterly segment information for the three months ended March 31, 2006 and 2005. 99.2 Unaudited as-adjusted quarterly segment information for the three and six months ended June 30, 2006 and 2005. 99.3 Unaudited as-adjusted quarterly segment information for the three and nine months ended September 30, 2006 and 2005. 99.4 Unaudited as-adjusted segment information as of and for the three and twelve months ended December 31, 2006 and 2005. Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.1 ------------
Three Months Ended March 31, 2006 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $219,510 $ 291,922 $ - $ 511,432 ==================================================================== Segment profit $ 38,103 $ 51,604 $ (7,993) $ 81,714 Restructuring and other charges (652) 23 (32) (661) -------------------------------------------------------------------- Operating profit $ 37,451 $ 51,627 $ (8,025) 81,053 ================================================ Interest expense (5,373) Other income (expense), net (439) -------------------- Income before taxes on income $ 75,241 ====================
Three Months Ended March 31, 2005 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $219,188 $ 303,864 $ - $ 523,052 ==================================================================== Segment profit $ 30,911 $ 56,186 $ (5,707) $ 81,390 Restructuring and other charges - - - - ------------------------------------------------------------------- Operating profit $ 30,911 $ 56,187 $ (5,707) 81,390 ================================================ Interest expense (5,576) Other income (expense), net 556 -------------------- Income before taxes on income $ 76,370 ===================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.2 ------------
Three Months Ended June 30, 2006 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 226,920 $ 303,585 $ - $ 530,505 ==================================================================== Segment profit $ 38,438 $ 58,794 $ (6,599) $ 90,633 Restructuring and other charges 1,625 (897) (424) 304 -------------------------------------------------------------------- Operating profit $ 40,063 $ 57,897 $ (7,023) 90,937 ================================================ Interest expense (6,300) Other income (expense), net 286 -------------------- Income before taxes on income $ 84,923 ====================
Three Months Ended June 30, 2005 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 219,698 $ 295,880 $ - $ 515,578 ==================================================================== Segment profit $ 33,331 $ 56,703 $ (4,534) $ 85,500 Restructuring and other charges - - - - -------------------------------------------------------------------- Operating profit $ 33,331 $ 56,703 $ (4,534) 85,500 ================================================ Interest expense (6,062) Other income (expense), net 2,558 -------------------- Income before taxes on income $ 81,996 ====================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.2 ------------
Six Months Ended June 30, 2006 ------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated ------------------------------------------------------------------------------------------------------------------ Net sales $ 446,430 $ 595,507 $ - $ 1,041,937 =================================================================== Segment profit $ 76,541 $ 110,398 $ (14,592) $ 172,347 Restructuring and other charges 973 (874) (456) (357) ------------------------------------------------------------------- Operating profit $ 77,514 $ 109,524 $ (15,048) 171,990 ================================================ Interest expense (11,673) Other income (expense), net (153) ------------------- Income before taxes on income $ 160,164 ===================
Six Months Ended June 30, 2005 ------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated ------------------------------------------------------------------------------------------------------------------ Net sales $ 438,886 $ 599,744 $ - $ 1,038,630 =================================================================== Segment profit $ 64,242 $ 112,889 $ (10,241) $ 166,890 Restructuring and other charges - - - - ------------------------------------------------------------------ Operating profit $ 64,242 $ 112,889 $ (10,241) 166,890 ================================================ Interest expense (11,638) Other income (expense), net 3,114 ------------------- Income before taxes on income $ 158,366 ===================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.3 ------------
Three Months Ended September 30, 2006 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 229,734 $ 309,401 $ - $ 539,135 ==================================================================== Segment profit $ 44,080 $ 56,486 $ (9,856) $ 90,710 Restructuring and other charges 553 (824) (45) (316) -------------------------------------------------------------------- Operating profit $ 44,633 $ 55,662 $ (9,901) 90,394 ================================================ Interest expense (6,475) Other income (expense), net 6,783 -------------------- Income before taxes on income $ 90,702 ====================
Three Months Ended September 30, 2005 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 216,789 $ 276,329 $ - $ 493,118 ==================================================================== Segment profit $ 34,005 $ 43,651 $ (5,691) $ 71,965 Restructuring and other charges - - - - -------------------------------------------------------------------- Operating profit $ 34,005 $ 43,651 $ (5,691) 71,965 ================================================ Interest expense (6,566) Other income (expense), net 854 -------------------- Income before taxes on income $ 66,253 ====================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.3 ------------
Nine Months Ended September 30, 2006 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 676,164 $ 904,908 $ - $ 1,581,072 ==================================================================== Segment profit $ 120,621 $ 166,884 $ (24,448) $ 263,057 Restructuring and other charges 1,526 (1,698) (501) (673) -------------------------------------------------------------------- Operating profit $ 122,147 $ 165,186 $ (24,949) 262,384 ================================================ Interest expense (18,148) Other income (expense), net 6,630 -------------------- Income before taxes on income $ 250,866 ====================
Nine Months Ended September 30, 2005 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 655,675 $ 876,073 $ - $ 1,531,748 ==================================================================== Segment profit $ 98,247 $ 156,540 $ (15,932) $ 238,855 Restructuring and other charges - - - - ------------------------------------------------------------------- Operating profit $ 98,247 $ 156,540 $ (15,932) 238,855 ================================================ Interest expense (18,204) Other income (expense), net 3,968 -------------------- Income before taxes on income $ 224,619 ====================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.4 ------------
Three Months Ended December 31, 2006 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 218,611 $ 295,707 $ - $ 514,318 ==================================================================== Segment profit $ 32,015 $ 47,995 $(11,394) $ 68,616 Restructuring and other charges (1,063) (941) (3) (2,007) -------------------------------------------------------------------- Operating profit $ 30,952 $ 47,054 $(11,397) 66,609 ================================================ Interest expense (7,401) Other income (expense), net 3,208 -------------------- Income before taxes on income $ 62,416 ====================
Three Months Ended December 31, 2005 -------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated -------------------------------------------------------------------------------------------------------------------- Net sales $ 202,049 $ 259,596 $ - $ 461,645 ==================================================================== Segment profit $ 15,837 $ 39,829 $ (4,326) $ 51,340 Restructuring and other charges (6,293) (9,617) (7,409) (23,319) -------------------------------------------------------------------- Operating profit $ 9,544 $ 30,212 $(11,735) 28,021 ================================================ Interest expense (5,752) Other income (expense), net (700) -------------------- Income before taxes on income $ 21,569 ====================
Exhibits International Flavors & Fragrances Inc. 2006 & 2005 Business Segment Information (Unaudited) EXHIBIT 99.4 ------------
For the Year Ended December 31, 2006 ----------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated ----------------------------------------------------------------------------------------------------------------------- Net sales $ 894,775 $ 1,200,615 $ - $ 2,095,390 ======================================================================= Segment profit $ 152,636 $ 214,879 $ (35,842) $ 331,673 Restructuring and other charges 463 (2,639) (504) (2,680) ----------------------------------------------------------------------- Operating profit $ 153,099 $ 212,240 $ (36,346) 328,993 =================================================== Interest expense (25,549) Other income (expense), net 9,838 -------------------- Income before taxes on income $ 313,282 ==================== Segment assets $ 972,814 $ 1,244,680 $ 261,410 $ 2,478,904 ======================================================================= Goodwill 319,479 346,103 - 665,582 Intangible assets, net 53,442 26,692 - 80,134 Depreciation and amortization 35,785 52,652 1,296 89,733 Capital expenditures 19,175 34,689 4,418 58,282
For the Year Ended December 31, 2005 ---------------------------------------------------------------------- Global (Dollars in thousands) Flavor Fragrance Expenses Consolidated ---------------------------------------------------------------------------------------------------------------------- Net sales $ 857,724 $ 1,135,669 $ - $ 1,993,393 ====================================================================== Segment profit $ 114,084 $ 196,369 $ (20,258) $ 290,195 Restructuring and other charges (6,293) (9,617) (7,409) (23,319) ---------------------------------------------------------------------- Operating profit $ 107,791 $ 186,752 $ (27,667) 266,876 ================================================== Interest expense (23,956) Other income (expense), net 3,268 -------------------- Income before taxes on income $ 246,188 ==================== Segment assets $ 998,951 $ 1,299,221 $ 340,024 $ 2,638,196 ====================================================================== Goodwill 319,479 346,103 - 665,582 Intangible assets, net 72,066 35,003 - 107,069 Depreciation and amortization 36,748 54,146 1,034 91,928 Capital expenditures 27,820 58,566 7,047 93,433