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Segment Information
 12 Months Ended
Dec. 31, 2021
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
During the first quarter of 2021, the Company completed its Merger with N&B. Following the Merger, the Company reorganized its reportable segments and is now organized into four reportable operating segments: Nourish, Health & Biosciences (“H&B”), Scent and Pharma Solutions. These segments align with the internal structure to manage these businesses. The Company’s Chief Operating Decision Maker regularly reviews financial information to allocate resources and assess performance utilizing these reorganized segments. Therefore, beginning in the first quarter of 2021, the Company reported its financial performance based on its new segments. The Company recast certain prior period amounts to conform to the way the Company is internally managed and how the Company monitors segment performance during the current fiscal year. Prior to the realignment, the Company operated and managed its business as two operating and reportable segments: Taste and Scent.
Nourish combines the majority of IFF’s legacy Taste segment and N&B’s Food & Beverage segment. It is comprised of three business units, Ingredients, Flavors and Food Designs, with a diversified portfolio across natural and plant-based specialty food ingredients, flavor compounds, and savory solutions and inclusions, respectively. Ingredients provide texturizing solutions to the food industry, food protection solutions used in food and beverage products, specialty soy and pea protein with value-added formulations, emulsifiers and sweeteners. Flavors provide a range of flavor compounds and natural taste solutions that are ultimately used by IFF's customers in savory products, beverages, sweets, and dairy products. Flavors also provide value-added spices and seasoning ingredients for meat, food service, convenience, alternative protein and culinary products. Food Designs provide savory solution products such as spices, sauces, marinades and mixtures. Additionally, Food Designs provide inclusion products that help with taste and texture by, among other things, combining flavorings with fruit, vegetables, and other natural ingredients for a wide range of food products, such as health snacks, baked goods, cereals, pastries, ice cream and other dairy products.
Health & Biosciences is comprised of six business units, Health, Cultures & Food Enzymes, Home & Personal Care, Animal Nutrition, Grain Processing and Microbial Control, with a biotechnology-driven portfolio of products that serve the health and wellness, food, consumer and industrial markets. Products within this portfolio range from enzymes, food cultures, probiotics and specialty ingredients for non-food applications. Health provides ingredients for dietary supplements, food and beverage, specialized nutrition and pharma. Cultures & Food Enzymes provide products that aim to serve the global demand for healthy, natural, clean label and fermented food for fresh dairy, cheese, bakery and brewing products. This is accomplished by providing IFF's customers with products that allow for extended shelf life and stability, which help to improve customers' products and performance. The business unit's enzyme solution also allows IFF's customers to provide low sugar, high fiber and lactose-free dairy products. Home & Personal Care produces enzymes for detergents, cleaning and textile processing products in the laundry, dishwashing, textiles and industrials and personal care markets that help to enhance product and process performances. Animal Nutrition produces enzymes that help to improve the product and process performance of animal feed products, which aim to lessen environmental impact by reducing farm waste. Grain Processing produces enzymes for biofuel production and carbohydrate processing. Microbial Control produces biocides for controlling microbial populations for oil and gas production, home and personal care and industrial preservation markets.
Scent is comprised of (1) Fragrance Compounds, which are ultimately used by our customers in two broad categories: Fine Fragrances, including perfumes and colognes, and Consumer Fragrances, including fragrance compounds for personal care (e.g., soaps), household products (e.g., detergents and cleaning agents) and beauty care, including toiletries; (2) Fragrance Ingredients, consisting of synthetic and natural ingredients that can be combined with other materials to create unique fine fragrance and consumer fragrance compounds; and (3) Cosmetic Active Ingredients, consisting of active and functional ingredients, botanicals and delivery systems to support our customers’ cosmetic and personal care product lines. Major fragrance customers include the cosmetics industry, including perfume and toiletries manufacturers, and the household products industry, including manufacturers of soaps, detergents, fabric care, household cleaners and air fresheners.
Pharma Solutions is comprised of N&B’s historical Pharma Solutions business. The Pharma Solutions business produces a vast portfolio including cellulosics and seaweed-based pharma excipients, used to improve the functionality and delivery of active pharmaceutical ingredients, including controlled or modified drug release formulations, and enabling the development of more effective pharmaceutical finished dosage formats. Pharma Solutions excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture, and consumer products.
Effective in the first quarter of 2021, management elected to change the profit or loss measure of the Company’s reportable segments from Segment Operating Profit to Segment Adjusted Operating EBITDA for internal reporting and performance measurement purposes. This change was made to enhance the transparency and visibility of the underlying operating performance of each segment. The Company's Chief Operating Decision Maker evaluates the performance of these reportable operating segments based on Segment Adjusted Operating EBITDA, which is defined as Income Before Taxes before depreciation and amortization expense, interest expense, restructuring and other charges and certain non-recurring items. Prior period amounts have been recast to reflect these changes in segment profitability measures.
Reportable segment information is as follows:
 December 31,
(DOLLARS IN MILLIONS)202120202019
Net sales
Nourish$6,264 $2,886 $2,978 
Health & Biosciences2,329 134 129 
Scent2,254 2,064 2,033 
Pharma Solutions809 — — 
Consolidated$11,656 $5,084 $5,140 
December 31,
(DOLLARS IN MILLIONS)20212020
Segment assets
Nourish$17,449 $8,534 
Health & Biosciences14,774 1,375 
Scent4,078 3,646 
Pharma Solutions3,357 — 
Consolidated$39,658 $13,555 
 December 31,
(DOLLARS IN MILLIONS)202120202019
Segment Adjusted Operating EBITDA:
Nourish$1,172 $599 $658 
Health & Biosciences625 40 33 
Scent463 416 425 
Pharma Solutions165 — — 
Total2,425 1,055 1,116 
Depreciation & Amortization(1,156)(325)(323)
Interest Expense(289)(132)(138)
Other income, net58 7 30 
Operational Improvement Initiatives (a)— — (2)
Frutarom Integration Related Costs (b)(4)(10)(55)
Restructuring and Other Charges (41)(17)(30)
Gains (Losses) on Sale of Assets 1 (4)(3)
Shareholder Activism Related Costs (c)(7)— — 
Business Divestiture Costs (d)(42)— — 
Employee Separation Costs (e)(29)(3)— 
Frutarom Acquisition Related Costs (f)(2)(1)(6)
Compliance Review & Legal Defense Costs (g)— (3)(11)
N&B Inventory Step-Up Costs (368)— — 
N&B Transaction Related Costs (h)(91)(29)(21)
N&B Integration Related Costs (i)(101)(97)— 
Income Before Taxes$354 $441 $557 
(a)Represents accelerated depreciation related to plant relocations in India and China.
(b)Represents costs related to the integration of the Frutarom acquisition. For 2021, costs primarily related to performance stock awards. For 2020, costs primarily related to advisory services, retention bonuses and performance stock awards. For 2019, costs primarily related to advisory services.
(c)Represents shareholder activist related costs, primarily professional fees.
(d)Represents costs related to the Company's sales and planned sales of businesses, primarily legal and professional fees.
(e)Represents costs related to severance, including accelerated stock compensation expense, for certain employees and executives who have been separated or will separate from the Company.
(f)Represents transaction-related costs and expenses related to the acquisition of Frutarom. For 2021, amount primarily includes earn-out payments, net of adjustments. For 2020, amount primarily includes earn-out payments, net of adjustments, amortization for inventory "step-up" costs and transaction costs primarily related to the 2019 Acquisition Activity. For 2019, amount primarily includes amortization for inventory "step-up" costs and transaction costs.
(g)Costs related to reviewing the nature of inappropriate payments and review of compliance in certain other countries. In addition, includes legal costs for related shareholder lawsuits.
(h)Represents transaction costs and expenses related to the transaction with N&B, primarily legal and professional fees.
(i)Represents costs primarily related to advisory services for the integration of the transaction with N&B, primarily consulting fees.
The Company has not disclosed revenues at a lower level than provided herein, such as revenues from external customers by product, as it is impracticable for it to do so.
The Company had no customers that accounted for greater than 10% of consolidated net sales in 2021, 2020 and 2019.
Long-lived assets, net, by country, consisted as follows:
 December 31,
(DOLLARS IN MILLIONS)20212020
United States$2,041 $572 
China259 172 
Denmark251 — 
Finland196 — 
France188 28 
Germany156 7 
Other1,277 679 
Consolidated$4,368 $1,458 
Segment capital expenditures and depreciation and amortization consisted as follows:
 Capital ExpendituresDepreciation and Amortization
(DOLLARS IN MILLIONS)202120202019202120202019
Nourish$183 $98 $126 $594 $211 $210 
Health & Biosciences139 7 8 353 36 34 
Scent41 87 102 84 78 79 
Pharma Solutions30 — — 125 — — 
Consolidated$393 $192 $236 $1,156 $325 $323 
Net sales are attributed to individual regions based upon the destination of product delivery and are as follows:
 Net Sales by Geographic Area
(DOLLARS IN MILLIONS)202120202019
Europe, Africa and Middle East$4,093 $1,987 $2,082 
Greater Asia2,728 1,162 1,163 
North America3,499 1,228 1,170 
Latin America1,336 707 725 
Consolidated$11,656 $5,084 $5,140 
 Net Sales by Geographic Area
(DOLLARS IN MILLIONS)202120202019
Net sales related to the U.S.$3,211 $1,093 $1,053 
Net sales attributed to all foreign countries8,445 3,991 4,087 
No non-U.S. country had net sales greater than 7% of total consolidated net sales for 2021 and net sales greater than 6% of total consolidated net sales for 2020 and 2019.