Reportable Segment Information |
Reportable segment information was as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended | | Six Months Ended | | June 30, | | June 30, | (DOLLARS IN MILLIONS) | 2024 | | 2023 | | 2024 | | 2023 | Net sales: | | | | | | | | Nourish | $ | 1,478 | | | $ | 1,564 | | | $ | 2,974 | | | $ | 3,217 | | Health & Biosciences | 558 | | | 522 | | | 1,089 | | | 1,035 | | Scent | 603 | | | 592 | | | 1,248 | | | 1,200 | | Pharma Solutions | 250 | | | 251 | | | 477 | | | 504 | | Consolidated | $ | 2,889 | | | $ | 2,929 | | | $ | 5,788 | | | $ | 5,956 | | Segment Adjusted Operating EBITDA: | | | | | | | | Nourish | $ | 232 | | | $ | 181 | | | $ | 448 | | | $ | 389 | | Health & Biosciences | 165 | | | 145 | | | 324 | | | 276 | | Scent | 137 | | | 117 | | | 294 | | | 222 | | Pharma Solutions | 54 | | | 67 | | | 100 | | | 126 | | Total | 588 | | | 510 | | | 1,166 | | | 1,013 | | Depreciation & Amortization | (246) | | | (287) | | | (524) | | | (563) | | Interest Expense | (79) | | | (101) | | | (162) | | | (201) | | Other (Expense) Income, net | (15) | | | 11 | | | (16) | | | 8 | | Restructuring and Other Charges (a) | (2) | | | (7) | | | (5) | | | (59) | | Impairment of Goodwill b) | (64) | | | — | | | (64) | | | — | | Gains (Losses) on Business Disposals c) | 368 | | | (5) | | | 368 | | | (19) | | Loss on Assets Classified as Held for Sale d) | (282) | | | — | | | (282) | | | — | | Acquisition, Divestiture and Integration Costs e) | (59) | | | (45) | | | (117) | | | (76) | | Strategic Initiatives Costs f) | (12) | | | (9) | | | (16) | | | (22) | | Regulatory Costs g) | (19) | | | (14) | | | (54) | | | (19) | | Other h) | 5 | | | (3) | | | 4 | | | 2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Income Before Taxes | $ | 183 | | | $ | 50 | | | $ | 298 | | | $ | 64 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
_______________________ | | | | | | | (a) | For 2024, represents costs related to lease impairment and severance as part of the Company's restructuring efforts. For 2023, represents costs primarily related to severance as part of the Company's restructuring efforts. | | b) | Represents costs related to the impairment of goodwill related to the Pharma Solutions disposal group. | | c) | For 2024, primarily represents gains recognized as part of the sale of the Cosmetic Ingredients business. For 2023, primarily represents losses recognized as part of the sale of a portion of the Savory Solutions business. | | d) | Represents the loss recognized on assets classified as held for sale of the Pharma Solutions disposal group. | | e) | For 2024 and 2023, primarily represents costs related to the Company's actual and planned acquisitions and divestitures and integration related activities primarily for N&B. These costs primarily consisted of external consulting fees, professional and legal fees and salaries of individuals who are fully dedicated to such efforts.
For the three months ended June 30, 2024, business divestiture and integration related costs were approximately $56 million and $3 million, respectively. For the three months ended June 30, 2023, business divestiture, integration and acquisition related costs were approximately $20 million, $20 million and $5 million, respectively. For the six months ended June 30, 2024, business divestiture and integration related costs were approximately $112 million and $5 million, respectively. For the six months ended June 30, 2023, business divestiture, integration and acquisition related costs were approximately $41 million, $30 million, and $5 million, respectively. | | f) | Represents costs related to the Company's strategic assessment and business portfolio optimization efforts and reorganizing the Global Business Services Centers, primarily consulting fees. | | g) | Represents costs primarily related to legal fees incurred and provisions recognized for the ongoing investigations of the fragrance businesses. | | h) | Represents gains (losses) from sale of assets, executive employee separation costs and costs related to the Company's entity realignment project to optimize the structure of holding companies, primarily consulting fees. | | | | | | | | | | | | | | | | | | | |
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Net Sales by Destination of Product Delivery |
Net sales, which are attributed to individual regions based upon the destination of product delivery, were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | (DOLLARS IN MILLIONS) | 2024 | | 2023 | | 2024 | | 2023 | Europe, Africa and Middle East | $ | 972 | | | $ | 970 | | | $ | 1,949 | | | $ | 2,040 | | Greater Asia | 681 | | | 673 | | | 1,363 | | | 1,361 | | North America | 876 | | | 910 | | | 1,742 | | | 1,815 | | Latin America | 360 | | | 376 | | | 734 | | | 740 | | Consolidated | $ | 2,889 | | | $ | 2,929 | | | $ | 5,788 | | | $ | 5,956 | |
| | | | | | | | | | | | | | | | | | | | | | | | | Three Months Ended June 30, | | Six Months Ended June 30, | (DOLLARS IN MILLIONS) | 2024 | | 2023 | | 2024 | | 2023 | Net sales related to the U.S. | $ | 822 | | | $ | 777 | | | $ | 1,633 | | | $ | 1,648 | | Net sales attributed to all foreign countries | 2,067 | | | 2,152 | | | 4,155 | | | 4,308 | |
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