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
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INTERNATIONAL FLAVORS & FRAGRANCES INC.
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(Exact Name of Registrant as Specified in Charter)
New York 1-4858 13-1432060
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(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File Number) Identification No.)
521 West 57th Street, New York, New York 10019
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(Address of Principal Executive Offices) (Zip Code)
Registrant's telephone number, including area code (212) 765-5500
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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
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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
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Three Months Ended March 31, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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)
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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
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Three Months Ended June 30, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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Net sales $ 219,698 $ 295,880 $ - $ 515,578
====================================================================
Segment profit $ 33,331 $ 56,703 $ (4,534) $ 85,500
Restructuring and other charges - - - -
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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
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Six Months Ended June 30, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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)
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Operating profit $ 77,514 $ 109,524 $ (15,048) 171,990
================================================
Interest expense (11,673)
Other income (expense), net (153)
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Income before taxes on income $ 160,164
===================
Six Months Ended June 30, 2005
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Income before taxes on income $ 158,366
===================
Exhibits
International Flavors & Fragrances Inc.
2006 & 2005 Business Segment Information
(Unaudited)
EXHIBIT 99.3
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Three Months Ended September 30, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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)
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Operating profit $ 44,633 $ 55,662 $ (9,901) 90,394
================================================
Interest expense (6,475)
Other income (expense), net 6,783
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Income before taxes on income $ 90,702
====================
Three Months Ended September 30, 2005
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Nine Months Ended September 30, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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)
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Operating profit $ 122,147 $ 165,186 $ (24,949) 262,384
================================================
Interest expense (18,148)
Other income (expense), net 6,630
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Income before taxes on income $ 250,866
====================
Nine Months Ended September 30, 2005
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Three Months Ended December 31, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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
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For the Year Ended December 31, 2006
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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)
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Operating profit $ 153,099 $ 212,240 $ (36,346) 328,993
===================================================
Interest expense (25,549)
Other income (expense), net 9,838
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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
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Global
(Dollars in thousands) Flavor Fragrance Expenses Consolidated
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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