{"schemaVersion":1,"research":true,"symbol":"iff","name":"International Flavors & Fragrances","topic":"moat","path":"/stock/iff/moat","status":"published","version":3,"updatedAt":"2026-10-18T14:12:32.224Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"IFF has a narrow moat from patented products and protected formulation and process know-how, supported by realized pricing and demand growth in its continuing businesses. Customer bargaining power, discretionary orders and constant innovation requirements limit pricing freedom and customer dependence. Evidence supports differentiation, but not exceptional durability or superiority across the portfolio.","advantages":[{"mechanism":"intangible_assets","claim":"Existing patented enzymatic polymers, trade-secret manufacturing processes and formulation capabilities provide differentiated offerings. Realized price and volume growth supports commercial relevance, although the disclosures do not isolate the returns attributable to intellectual property.","durability":"Protection and accumulated technical expertise support a current advantage requiring continued renewal. Patented polymers were introduced in 2023 and remained in production in 2025. Patent expiration dates, protected revenue shares and competitor performance are unavailable, limiting confidence in long-term durability.","risks":"Competitor innovation, customer reformulation, transparent labeling and weaker trade-secret protection can erode differentiation. Core-list rebates and discretionary orders constrain monetization. Fragrance Ingredients volume declines demonstrate uneven demand; ongoing investigations add regulatory exposure without establishing that competitive advantages arose from unlawful conduct.","invalidation":"The thesis would fail if protected offerings became readily substitutable, material intellectual property protection was lost, or repeated comparable volume declines and price concessions across the continuing businesses demonstrated that technical differentiation no longer sustained customer demand.","competitors":["Firmenich International SA","Givaudan SA","Symrise AG"],"evidenceIds":["e1","e2","e3","e4","e5","e6","e7","e8"],"counterEvidenceIds":["e9","e10","e11","e12","e13","e14","e15","e16"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"Business / Health & Biosciences / patented enzymatic polymers","excerpt":"The business also produces patented enzymatic polymers that are renewable, biodegradable alternatives to functional ingredients used in home cleaning and beauty care products."},{"id":"e2","sourceId":"filing-1","location":"Risk factors / protection of products and manufacturing processes through trade secrets","excerpt":"We often rely on trade secrets to protect our products, manufacturing processes, extract methodologies and other processes, as this does not require us to publicly file information regarding our intellectual property."},{"id":"e3","sourceId":"filing-5","location":"Business / introduction of patented enzymatic polymers in 2023","excerpt":"In 2023, we introduced patented enzymatic polymers that are renewable, biodegradable alternatives to functional ingredients used in home cleaning and beauty care products."},{"id":"e4","sourceId":"filing-2","location":"MD&A / Health & Biosciences biotechnology-derived portfolio","excerpt":"Our Health & Biosciences segment consists of the development and production of an advanced biotechnology-derived portfolio of enzymes, food cultures, probiotics and specialty ingredients for food and non-food applications."},{"id":"e5","sourceId":"filing-2","location":"MD&A / second-quarter 2026 Taste comparable sales, volume and pricing","excerpt":"On a comparable currency neutral basis, Taste sales increased 4% in 2026 compared to the prior year period primarily driven by volume and price increases in the Flavors business unit."},{"id":"e6","sourceId":"filing-2","location":"MD&A / second-quarter 2026 Health & Biosciences comparable sales and volume","excerpt":"On a comparable currency neutral basis, Health & Biosciences sales increased 5% in 2026 compared to the prior year period primarily driven by volume increases across various business units."},{"id":"e7","sourceId":"filing-1","location":"MD&A / 2024 Scent comparable sales, pricing and volume","excerpt":"On a comparable currency neutral basis, Scent sales increased 12% in 2024 compared to the 2023 period driven by price increases in the Fragrance Compounds business unit and volume increases across all business units."},{"id":"e8","sourceId":"filing-4","location":"Litigation matters / named fragrance industry co-defendants","excerpt":"Since March 2023, various putative class action lawsuits have been filed against IFF, Firmenich International SA, Givaudan SA, and Symrise AG and/or certain affiliates thereof in the Quebec Superior Court, the Federal Court of Canada, Ontario Superior Court, the Supreme Court of British Columbia and, in several cases, the United States District Court for the District of New Jersey."},{"id":"e9","sourceId":"filing-1","location":"Business / requirement for constant innovation","excerpt":"Consumer Insights, Research and Product Development Process The markets in which we operate require constant innovation to remain competitive."},{"id":"e10","sourceId":"filing-1","location":"Risk factors / limitations of trade-secret protection","excerpt":"For those intellectual property rights that are protected as trade secrets, this litigation could result in even higher costs, and potentially the loss of certain rights, since we would not have a perfected intellectual property right that precludes others from making, using or selling our products or processes."},{"id":"e11","sourceId":"filing-1","location":"Risk factors / transparent labeling and intellectual property protection","excerpt":"The ongoing trend among our customers towards more transparent labeling could further diminish our ability to effectively protect our products."},{"id":"e12","sourceId":"filing-1","location":"Risk factors / customer discretion over order timing and quantities","excerpt":"Moreover, given that the timing or volumes in our customers’ orders are generally at our customers’ discretion, customers may cancel, reduce or postpone orders with us on relatively short notice."},{"id":"e13","sourceId":"filing-1","location":"Risk factors / supplier core lists and customer rebates","excerpt":"Multinational and increasingly middle market customers also rely on “core lists” of suppliers, requiring more favorable terms for inclusion, such as rebates, which could adversely affect our margins."},{"id":"e14","sourceId":"filing-2","location":"MD&A / second-quarter 2026 Scent growth and Fragrance Ingredients volume decline","excerpt":"On a comparable currency neutral basis, Scent sales increased 8% in 2026 compared to the prior year period primarily driven by volume increases in Fragrance Compounds, partially offset by volume decreases in Fragrance Ingredients."},{"id":"e15","sourceId":"filing-1","location":"Risk factors / multinational, specialized and customer-developed competition","excerpt":"We face intense global competition from multinational and specialized companies across our product offerings, as well as consumer product companies developing their own alternatives."},{"id":"e16","sourceId":"filing-2","location":"Contingencies / ongoing fragrance competition investigations","excerpt":"IFF understands the EC, CMA and the Swiss Competition Commission are investigating potential anticompetitive conduct as it relates to IFF’s fragrance businesses."},{"id":"e17","sourceId":"filing-3","location":"Compensation discussion / reported 2025 comparable sales, EBITDA and net pricing outcomes","excerpt":"As disclosed in our full-year 2025 results, on a comparable, currency-neutral basis, sales increased 2%, and currency-neutral adjusted operating EBITDA increased 7%, led by volume growth, productivity gains and favorable net pricing."},{"id":"e18","sourceId":"filing-2","location":"MD&A / continuing operations results and margins for second-quarter and first-half 2026","excerpt":"40 Table of Contents RESULTS OF CONTINUING OPERATIONS Three Months Ended Six Months Ended June 30, June 30, (DOLLARS IN MILLIONS EXCEPT PER SHARE AMOUNTS) 2026 2025 Change 2026 2025 Change Net sales $ 1,954 $ 1,919 2 % $ 3,860 $ 3,969 (3) % Cost of sales 1,101 1,095 1 % 2,178 2,293 (5) % Gross profit 853 824 4 % 1,682 1,676 — % Research and development (R&D) expenses 170 170 — % 324 325 — % Selling and administrative (S&A) expenses 437 409 7 % 771 799 (4) % Amortization of acquisition-related intangibles 82 82 — % 166 162 2 % Impairment of goodwill — — NMF — 34 NMF Restructuring and other charges 6 20 (70) % 10 35 (71) % Losses on sale of assets — 1 NMF — 1 NMF Operating profit 158 142 11 % 411 320 28 % Interest expense 46 61 (25) % 90 132 (32) % Gain on extinguishment of debt — (488) NMF — (488) NMF Losses on business disposals 1 111 (99) % 1 111 (99) % Loss on assets classified as held for sale 27 — NMF 27 — NMF Other expense, net 20 20 — % 33 39 (15) % Income from continuing operations before taxes 64 438 (85) % 260 526 (51) % Provision (benefit) for income taxes 31 (112) (128) % 72 (92) (178) % Net income from continuing operations $ 33 $ 550 (94) % $ 188 $ 618 (70) % Income (loss) from discontinued operations before tax 31 66 (53) % 44 (1,016) (104) % Provision for income taxes from discontinued operations 13 17 (24) % 11 20 (45) % Net income (loss) from discontinued operations 18 49 (63) % 33 (1,036) (103) % Net income (loss) 51 599 (91) % 221 (418) (153) % Net income attributable to non-controlling interests from continuing operations — — NMF 1 1 — % Net income attributable to non-controlling interests from discontinued operations 1 — NMF 1 — NMF Net income (loss) attributable to IFF shareholders $ 50 $ 599 (92) % $ 219 $ (419) (152) % Income (loss) per share - basic Continuing operations $ 0.13 $ 2.15 (94) % $ 0.73 $ 2.41 (70) % Discontinued operations 0.07 0.19 (65) % 0.13 (4.05) (103) % Net income (loss) per share - basic $ 0.20 $ 2.34 (92) % $ 0.86 $ (1.64) (152) % Income (loss) per share - diluted Continuing operations $ 0.13 $ 2.14 (94) % $ 0.73 $ 2.40 (70) % Discontinued operations 0.07 0.19 (65) % 0.12 (4.03) (103) % Net income (loss) per share - diluted $ 0.20 $ 2.33 (91) % $ 0.85 $ (1.63) (152) % Gross margin 43.7 % 42.9 % 80 bps 43.6 % 42.2 % 140 bps R&D as a percentage of sales 8.7 % 8.9 % (20) bps 8.4 % 8.2 % 20 bps S&A as a percentage of sales 22.4 % 21.3 % 110 bps 20.0 % 20.1 % (10) bps Operating margin 8.1 % 7.4 % 70 bps 10.6 % 8.1 % 250 bps Effective tax rate 48.4 % (25.6) % NMF 27.7 % (17.5) % NMF Segment net sales Taste $ 688 $ 654 5 % $ 1,368 $ 1,304 5 % Health & Biosciences 601 559 8 % 1,176 1,079 9 % Scent 665 603 10 % 1,316 1,217 8 % Pharma Solutions — 103 (100) % — 369 (100) % Consolidated $ 1,954 $ 1,919 2 % $ 3,860 $ 3,969 (3) % _______________________ NMF: Not meaningful 41 Table of Contents Cost of sales includes the cost of materials and manufacturing expenses."},{"id":"e19","sourceId":"filing-1","location":"MD&A / 2025 cost reductions, divestitures and productivity","excerpt":"The decrease in cost of sales was primarily driven by the divestitures the impact of which was approximately $493 million, lower raw material costs and lower unfavorable manufacturing absorption compared to the prior year period, increased productivity compared to the prior year period, offset in part by volume increases."},{"id":"e20","sourceId":"filing-5","location":"MD&A / 2023 volume declines, manufacturing absorption and inventory write-down","excerpt":"The decrease in cost of goods sold was primarily driven by volume decreases in sales and the net impact of the change in business portfolio mix, which was approximately $405 million, offset in part by unfavorable manufacturing absorption primarily related to our inventory reduction program and a write-down of inventory related to Locust Bean Kernel (“LBK”) in Nourish, which was approximately $72 million."},{"id":"e21","sourceId":"filing-1","location":"Risk factors / 2025 customer concentration","excerpt":"In 2025, our 25 largest customers, a majority of which were multinational consumer products companies, collectively accounted for approximately 32% of our sales."},{"id":"e22","sourceId":"filing-1","location":"Goodwill / realized 2025 Food Ingredients impairment","excerpt":"As a result, the Company determined that the carrying amount of the Food Ingredients reporting unit exceeded its estimated fair value and recognized an impairment charge of $1.153 billion, which is reflected in the Consolidated Statements of Income (Loss) and Comprehensive Income (Loss) during the year ended December 31, 2025."},{"id":"e23","sourceId":"filing-4","location":"Goodwill / realized 2023 Nourish impairment","excerpt":"The Company determined that the carrying value of the Nourish reporting unit exceeded its fair value and recorded an impairment charge of $2.623 billion in the Consolidated Statements of Income (Loss) and Comprehensive Loss for the year ended December 31, 2023."},{"id":"e24","sourceId":"filing-1","location":"Liquidity / cash purchase of outstanding Senior Notes in 2025","excerpt":"The increase in cash flows used in financing activities from 2024 to 2025 was primarily driven by our purchase with cash of certain of our outstanding series of Senior Notes for $2.0 billion, excluding accrued and unpaid interest."},{"id":"e25","sourceId":"filing-2","location":"Liquidity / first-half 2026 capital expenditure and divestiture proceeds","excerpt":"Investing cash outflows in the current year were primarily driven by $301 million of additions to property, plant and equipment, partially offset by $201 million of net proceeds from the divestiture of the SCL disposal group and the collection of an earnout related to the prior year divestiture of the Pharma Solutions disposal group."},{"id":"e26","sourceId":"filing-2","location":"Liquidity / first-half 2026 commercial paper repayments and executed share repurchases","excerpt":"This decrease was partially offset by increased net repayments of commercial paper of $264 million during the six months ended June 30, 2026, in addition to $71 million of common stock repurchases under the share repurchase program that began on October 1, 2025."},{"id":"e27","sourceId":"filing-2","location":"Liquidity / June 2026 covenant leverage ratio","excerpt":"At June 30, 2026, our net debt to credit adjusted EBITDA(1) ratio was 2.51 to 1.0 as defined by the credit facility agreements, which is below the relevant level provided by our financial covenants of existing outstanding debt."},{"id":"e28","sourceId":"filing-3","location":"Compensation / zero 2023 LTIP payout and erroneous 2022 LTIP awards","excerpt":"Other AIP metrics such as Currency Neutral Sales Growth, Cash Conversion Cycle, and ESG-related metrics were not affected by the revisions; • The 2020 and 2021 LTIP cycles were not affected, as Net Debt Ratio and Total Shareholder Return metrics were not impacted by the revisions; • The 2023 LTIP cycle (concluded December 31, 2025) resulted in zero payout because the minimum performance criteria were not met; and • The 2022 LTIP awards (for the January 1, 2022 – December 31, 2024 performance period) were erroneously awarded as a result of the restatement."},{"id":"e29","sourceId":"filing-3","location":"Compensation / amount determined subject to clawback","excerpt":"Erroneously Awarded Compensation As a result of the foregoing analysis, the Committee determined that a total of $606,280 in erroneously awarded compensation related to the 2022 LTIP awards is subject to recovery under the Clawback Policy."},{"id":"e30","sourceId":"filing-3","location":"Compensation / clawback notices issued March 9, 2026","excerpt":"On March 9, 2026, clawback notices were issued to all impacted current/former Section 16 Officers who received 2022-2024 LTIP payouts."},{"id":"e31","sourceId":"filing-1","location":"Stock compensation / 2023–2025 LTIP ROIC and relative TSR performance conditions","excerpt":"For the 2023-2025 cycle, the LTIP awards are earned based on the achievement of: (i) 3-year cumulative Return on Invested Capital (“ROIC”) (representing one-half of the award value) and (ii) Relative Total Shareholder Return (“TSR”) targets (representing one-half of the award value)."},{"id":"e32","sourceId":"filing-3","location":"Corporate governance / existing independence, oversight and shareholder rights policies","excerpt":"Corporate Governance Highlights Our commitment to good corporate governance is evidenced by the following best practices: OUR CORPORATE GOVERNANCE POLICIES REFLECT BEST PRACTICES • All Directors other than our CEO are Independent • Strong Pay-for-Performance Compensation Policies • Diverse Board Brings Balance of Skills, Professional Experience and Perspectives • Annual Election of All Directors • Non-Executive Chair of the Board Leads Board’s Independent Oversight • No Guaranteed Pay Increases or Equity Awards for Named Executive Officers (“NEOs”) • Annual Board and Committee Assessments • Formal Board and Executive Succession Planning • No Limitation on Shareholder Litigation Rights • No Exclusive Forum or Fee-Shifting Provisions • Majority Voting and Director Resignation Policy in Uncontested Elections • Proxy Access By-Law Provisions • Prohibition on Short Sales and Hedging of our Stock by our Employees, Officers and Directors • Executives and Directors are Subject to Rigorous Stock Retention Guidelines • Extensive Executive Clawback Policy • Long Standing Commitment to Sustainability as a Long-Term Value Driver • Shareholder Right to Call a Special Meeting IFF | 2026 PROXY STATEMENT i TABLE OF CONTENTS Proxy Statement Summary Proposals and Board Recommendations Proposal 1 Election of 10 Director Nominees The Board recommends a vote FOR the election of all Director Nominees Our Governance & Corporate Responsibility Committee and our Board have determined that each of the nominees possesses the skills and qualifications to collectively comprise a highly effective Board."},{"id":"e33","sourceId":"filing-2","location":"Accounting policies / identified tax-related errors and revisions","excerpt":"Revision of Previously Issued Financial Statements In preparing the Consolidated Financial Statements as of and for the three and nine months ended September 30, 2025 and the year ended December 31, 2025, Management identified certain income tax-related adjustments that primarily relate to the understatement of income tax expense due to errors in the accounting for transfer pricing, the correction of deferred tax 7 Table of Contents liabilities on goodwill recorded in purchase accounting, and other income tax entries that impacted prior interim and annual financial statements."},{"id":"e34","sourceId":"filing-1","location":"Litigation / EC settlement provision and payment in 2024","excerpt":"During the first three months of 2024, IFF recognized a provision of €16 million (approximately $18 million) in connection with a settlement with the EC, which was paid during the third quarter of 2024."},{"id":"e35","sourceId":"filing-1","location":"Litigation / settlement concerning deletion of investigation-relevant messages","excerpt":"This settlement pertains to a charge related to the deletion of messages relevant to the investigation by a former Scent employee."},{"id":"e36","sourceId":"filing-2","location":"Contingencies / DOJ investigation closed February 5, 2026","excerpt":"On February 5, 2026, IFF received a letter from DOJ confirming the closing of its investigation (such decision is independent of the other related civil or regulatory matters)."},{"id":"e37","sourceId":"filing-2","location":"Segment information / Food Ingredients classified as discontinued operations","excerpt":"Beginning in the second quarter of 2026, the Company determined that the held for sale and discontinued operations criteria were met for the entirety of the Food Ingredients segment, after certain perimeter adjustments, and classified its results as discontinued operations for the periods presented."},{"id":"e38","sourceId":"filing-2","location":"MD&A / definitive Food Ingredients divestiture agreement announced May 29, 2026","excerpt":"On May 29, 2026, we announced that we entered into a definitive agreement to divest our Food Ingredients disposal group."},{"id":"e39","sourceId":"filing-2","location":"Capital allocation / enhanced repurchase authorization announced August 4, 2026","excerpt":"Share Repurchase Authorization On August 4, 2026, the Company announced that its Board of Directors has authorized an enhanced share repurchase authorization with a total value of $2.5 billion, including approximately $400 million remaining on its prior authorization."},{"id":"e40","sourceId":"filing-2","location":"Capital allocation / planned repurchases conditional on Food Ingredients sale closing","excerpt":"The remaining $2.0 billion share repurchase is expected to be executed following the closing of the Food Ingredients disposal group divestiture, with an expected completion of the program by the end of 2027."},{"id":"e41","sourceId":"filing-1","location":"MD&A / actual 2025 research and development spending","excerpt":"Research and Development (“R&D”) Expenses R&D expenses increased $23 million to $694 million (6.4% of sales) in 2025 compared to $671 million (5.8% of sales) in 2024."},{"id":"e42","sourceId":"filing-2","location":"Accounting revisions / management assessment of prior-period error materiality","excerpt":"Based on this assessment, in consideration of both quantitative and qualitative factors, management determined that the related impacts of the errors were not material to any previously issued interim or annual financial statements."}],"changes":["Retain the previous narrow verdict, with the advantage confined to evidenced intellectual property and technical differentiation rather than established customer lock-in.","Explicitly incorporate 2026 Taste pricing and volume growth, Health & Biosciences volume growth, and the Fragrance Ingredients volume decline.","Treat Food Ingredients as discontinued operations subject to a definitive sale agreement, without assuming the sale has closed.","Add actual incentive outcomes, clawback notices, accounting revisions and the paid EC settlement to management assessment; distinguish repurchase authorizations from execution."],"limitations":["All evidence comes from supplied issuer filings. Reported operating results and existing compensation arrangements support assessments, while claims of leadership, customer intimacy and superior innovation are not independently demonstrated.","The three named competitors appear as fragrance litigation co-defendants. The passages do not establish comprehensive competitor coverage or comparative performance in Taste or Health & Biosciences.","Patent duration, protected product revenue, licensing economics and formulation replacement costs are undisclosed. No separate network effect, cost advantage or efficient-scale moat is established.","Customer retention is assessed indirectly from volume growth and order terms; repeat-customer rates, renewals and measured switching costs are unavailable.","Pricing contributions are not quantified separately from volume in the cited growth passages. Detailed price-setting clauses, escalators and pass-through provisions are absent.","Governance and incentive arrangements are disclosed, but supplied passages do not establish executives' actual ownership or completed clawback recovery. Future awards, buybacks and transaction outcomes are not treated as achieved.","Source dates are filing dates, including August 4, 2026 for the latest supplied quarterly filing; they are not retrieval dates. Earlier consolidated results span a different portfolio and include amounts subsequently revised."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":2,"rationale":"Patented products and protected process know-how establish differentiation, supported by commercial growth. Their economic contribution and superiority over alternatives remain unquantified.","evidenceIds":["e1","e2","e4","e5","e6"]},{"criterion":"durability","grade":2,"rationale":"Continued production of polymers introduced in 2023 supports persistence, but constant innovation and limited trade-secret exclusivity require renewal. Patent lives and long-run protected returns are missing.","evidenceIds":["e1","e3","e9","e10","e11","e41"]},{"criterion":"customer_dependency","grade":2,"rationale":"Growth in functional biotechnology products and flavors supports customer value indirectly. Discretionary orders and rebate demands show substantial buyer power; contractual lock-in and switching costs are unproven.","evidenceIds":["e4","e5","e6","e12","e13","e21"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Continuing-business growth and sustained R&D investment support resilience, but Fragrance Ingredients volumes declined and competition includes customers developing alternatives. Historical impairments show portfolio weakness without proving erosion throughout today's continuing businesses.","evidenceIds":["e5","e6","e14","e15","e22","e23","e37","e41"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":3,"rationale":"Reported 2024 Scent growth combined price increases with volume growth; 2025 results included favorable net pricing; second-quarter 2026 Taste again combined price and volume increases. This demonstrates realized pricing across several periods, although separate price contributions and portfolio-wide persistence are unavailable.","evidenceIds":["e5","e7","e17"]},{"criterion":"retention","grade":2,"rationale":"Volume growth alongside Taste price increases and broader Health & Biosciences demand provides indirect retention evidence. It cannot distinguish existing-customer repeat purchases from new wins, and Fragrance Ingredients volumes declined while customers retain order discretion.","evidenceIds":["e5","e6","e12","e14"]},{"criterion":"margin_resilience","grade":2,"rationale":"Continuing-operations gross and operating margins improved in first-half 2026. Earlier improvements also reflected lower input costs, productivity and portfolio changes, while 2023 suffered adverse absorption and an inventory write-down. Resilience is mixed and cannot be attributed solely to pricing.","evidenceIds":["e18","e19","e20"]},{"criterion":"contractual_freedom","grade":1,"rationale":"Customers can cancel, reduce or postpone orders on short notice, and supplier-list inclusion requires favorable terms such as rebates. These disclosed terms weaken IFF's bargaining freedom; detailed pricing clauses are unavailable.","evidenceIds":["e12","e13","e21"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":2,"rationale":"Actual debt purchases, commercial paper repayments and capital investment support improved discipline, with covenant leverage at 2.51 times in June 2026. Large historical impairments temper that record. The enlarged buyback authorization remains a commitment whose full execution and returns are unproven.","evidenceIds":["e22","e23","e24","e25","e26","e27","e39","e40"]},{"criterion":"incentive_alignment","grade":3,"rationale":"ROIC and relative TSR conditions were implemented, and the completed 2023 LTIP cycle paid zero after minimum criteria were missed. Erroneous prior awards triggered a quantified recovery determination and issued notices, demonstrating consequences beyond policy language. Completed recovery and actual executive ownership are not established.","evidenceIds":["e28","e29","e30","e31"]},{"criterion":"execution","grade":2,"rationale":"Reported growth, improved continuing operating profit and debt reduction demonstrate recent progress. This operating evidence is indirect evidence of management effectiveness, tempered by impairments and accounting revisions. The Food Ingredients agreement establishes a transaction milestone rather than completed sale execution.","evidenceIds":["e5","e6","e17","e18","e22","e24","e33","e38"]},{"criterion":"governance","grade":2,"rationale":"Independent oversight arrangements and issued clawback notices support accountability. Accounting errors and the paid settlement concerning deleted investigation messages show realized shortcomings. DOJ closure is favorable, but other investigations remain unresolved and do not establish misconduct by themselves; management assessed prior-period errors as immaterial to those periods.","evidenceIds":["e30","e32","e33","e34","e35","e36","e16","e42"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"ad3dcc533037977014536ed847133bd78fab2ff6b1382561c89a6c95b479b652","updatedAt":"2026-10-18T14:12:32.224Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/51253/000005125326000006/iff-20251231.htm","publishedAt":"2026-02-27","sha256":"5d1b7303f3dbf61279562e379588752ad1b4c23722ed9c385f02ad85c47de726","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/51253/000005125326000030/iff-20260630.htm","publishedAt":"2026-08-04","sha256":"8a1a808769644f13b77c49e1799e34f3deb82aca96979c9f15af83c02a59ff28","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/51253/000114036126009960/ny20055514x1_def14a.htm","publishedAt":"2026-03-18","sha256":"bea5a2996916667f1e009db06ff293e833234f919105918360af90ee4c8e30b3","dateKind":"filed"},{"id":"filing-4","url":"https://www.sec.gov/Archives/edgar/data/51253/000005125325000013/iff-20241231.htm","publishedAt":"2025-02-28","sha256":"e04391d4592c01874e17d0758dfff3896bb59f9bdea674f90ed1b34568adf131","dateKind":"filed"},{"id":"filing-5","url":"https://www.sec.gov/Archives/edgar/data/51253/000005125324000006/iff-20231231.htm","publishedAt":"2024-02-28","sha256":"2e5c53109f5b89f1e4e8846a8b6b76846a79ed2b0140c390857a14e1e8ded45a","dateKind":"filed"},{"id":"filing-6","url":"https://www.sec.gov/Archives/edgar/data/51253/000005125326000017/iff-20260331.htm","publishedAt":"2026-05-05","sha256":"ee06b0b8dbf8ff2f85c3d5c71b6ec5a03d531ce2c29f3334dfffb1adb8556e30","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:2eeba3b3d752fcac7c3632d92285aa57567c4ffbcf7ffb663f6a16ca132528b1","usage":{"input_tokens":88311,"cached_input_tokens":21120,"cache_write_input_tokens":0,"output_tokens":4374,"reasoning_output_tokens":82}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":32.04358270418668,"operating_margin":5.018874399450927,"roic":2.218283764039897,"fcf_margin":8.956760466712423,"sbc_revenue":0.46328071379547014},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","buybacks":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":33.368167202572344,"operating_margin":-10.659163987138264,"roic":null,"fcf_margin":-0.860128617363344,"sbc_revenue":0.39389067524115756},"issues":{"pe":"Trailing earnings is zero or negative, so this ratio is undefined.","peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","ev_ebitda":"Trailing EBITDA is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","sbc_fcf":"Free cash flow before SBC deduction is zero or negative, so this ratio is undefined.","roic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%.","net_debt_ebitda":"Trailing EBITDA is zero or negative, so this ratio is undefined.","debt_fcf":"Trailing free cash flow is zero or negative, so this ratio is undefined.","buybacks":"The reported inputs required for this metric are unavailable in the extracted statements for this period."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":32.067253245056186,"operating_margin":-18.381392107326423,"roic":null,"fcf_margin":8.154020385050963,"sbc_revenue":0.5662514156285391},"issues":{"pe":"Trailing earnings is zero or negative, so this ratio is undefined.","peg":"Prior-year TTM earnings per diluted share is zero or negative; a growth-adjusted multiple is undefined.","pfcf_growth":"Prior-year TTM FCF per diluted share is zero or negative; a growth-adjusted multiple is undefined.","ev_ebitda":"Trailing EBITDA is zero or negative, so this ratio is undefined.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic":"NOPAT is undefined under this method: pretax profit must be positive and the effective tax rate must be between 0 and 100%.","roiic":"Invested capital did not increase versus the prior year. 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