INTERNATIONAL FLAVORS & FRAGRANCES INC

Previous wording

Our Scent segment creates fragrance compounds, fragrance ingredients and cosmetic ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. Consumer insights science and creativity are at the heart of our Scent business, and, along with our unique portfolio of natural and synthetic ingredients, global footprint, innovative technologies and know-how, and customer intimacy, we believe these make us a market leader in scent products. The Scent segment is comprised of Fragrance Compounds, Fragrance Ingredients and Cosmetic Ingredients. We completed the divestiture of our Cosmetic Ingredients business on April 2, 2024.

Current wording

Our Scent segment creates fragrance compounds and fragrance ingredients that are integral elements in the world’s finest perfumes and best-known household and personal care products. Consumer insights science and creativity are at the heart of our Scent business, and, along with our unique portfolio of natural and synthetic ingredients, global footprint, innovative technologies and know-how, and customer intimacy, we believe these make us a market leader in scent products. The Scent segment is comprised of Fragrance Compounds and Fragrance Ingredients. We completed the divestiture of our Cosmetic Ingredients business on April 2, 2024.

Previous wording

Our Pharma Solutions segment produces, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical 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 formulations. Our excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Our Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture and consumer products. On March 19, 2024, we announced the sale process and entered into an agreement to sell our Pharma Solutions business. See Note 3 for additional information.

Current wording

Our Pharma Solutions segment produces, among other things, a vast portfolio of cellulosics and seaweed-based pharmaceutical 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 formulations. Our excipients are used in prescription and over-the-counter pharmaceuticals and dietary supplements. Our Pharma Solutions products also serve a variety of other specialty and industrial end-uses including coatings, inks, electronics, agriculture and consumer products. On March 19, 2024, we announced the sale process and entered into an agreement to sell our Pharma Solutions business, that is primarily made up of most businesses within the Company's existing Pharma Solutions reportable segment as well as certain adjacent businesses. See Note 3 for additional information.

Previous wording

For each of the three months ended March 31, 2024 and 2023, total sales to Israeli customers were approximately 1% of total sales.

Current wording

For each of the three and six months ended June 30, 2024 and 2023, total sales to Israeli customers were less than 1% of total sales.

Previous wording

For the three months ended March 31, 2024 and 2023, sales to Russian customers were approximately 1% and 2% of total sales, respectively.

Current wording

For the three and six months ended June 30, 2024, sales to Russian customers were approximately 2% and 1% of total sales, respectively. For the three and six months ended June 30, 2023, sales to Russian customers were approximately 1% and 2% of total sales, respectively.

Previous wording

For each of the three months ended March 31, 2024 and 2023, sales to Ukrainian customers were less than 1% of total sales.

Current wording

For each of the three and six months ended June 30, 2024 and 2023, sales to Ukrainian customers were less than 1% of total sales.

Previous wording

We have a reserve of approximately $3 million related to expected credit losses on receivables from customers located in Russia and Ukraine. For additional information, refer to Note 1 and Part I, Item 1A, “Risk Factors,” of our 2023 Form 10-K.

Current wording

We have a reserve of approximately $2 million related to expected credit losses on receivables from customers located in Russia and Ukraine. For additional information, refer to Note 1 and Part I, Item 1A, “Risk Factors,” of our 2023 Form 10-K.

Previous wording

Sales in the first quarter of 2024 decreased $128 million, or 4% on a reported basis, to $2.899 billion compared to $3.027 billion in the 2023 period. On a currency neutral basis, sales in the first quarter of 2024 decreased 1% compared to the 2023 period. Exchange rate variations had an unfavorable impact on net sales for the first quarter of 2024 of 3%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. The decrease in sales was primarily driven by the impact of the divestitures of the portion of the Savory Solutions business and Flavor Specialty Ingredients (“FSI”) business (“change in business portfolio mix due to divestitures”), which was approximately $153 million, offset in part by volume and price increases across various businesses.

Current wording

Sales in the second quarter of 2024 decreased $40 million, or 1% on a reported basis, to $2.889 billion compared to $2.929 billion in the 2023 period. On a currency neutral basis, sales in the second quarter of 2024 increased 2% compared to the 2023 period. Exchange rate variations had an unfavorable impact on net sales for the second quarter of 2024 of 3%. The effect of exchange rates can vary by business and region, depending upon the mix of sales priced in U.S. dollars as compared to other currencies. The increase in currency neutral sales was primarily driven by volume increases across various businesses, offset by divestiture impacts of approximately $134 million from the sale of a portion of the Savory Solutions business, Flavor Specialty Ingredients ("FSI") business, and Cosmetic Ingredients business (“change in business portfolio mix due to divestitures”).

Previous wording

Gross profit in the first quarter of 2024 increased $60 million, or 6% on a reported basis, to $1.024 billion (35.3% of sales) compared to $964 million (31.8% of sales) in the 2023 period. The increase in gross profit was primarily driven by volume increases, productivity gains and favorable net pricing, offset in part by the change in business portfolio mix due to divestitures.

Current wording

Gross profit in the second quarter of 2024 increased $135 million, or 14%, to $1.068 billion (37.0% of sales) compared to $933 million (31.9% of sales) in the 2023 period. The increase in gross profit was primarily driven by volume increases, productivity gains and favorable net pricing, offset in part by the change in business portfolio mix due to divestitures.

Previous wording

FIRST QUARTER 2024 IN COMPARISON TO FIRST QUARTER 2023

Current wording

SECOND QUARTER 2024 IN COMPARISON TO SECOND QUARTER 2023

Previous wording

Nourish sales in 2024 decreased $157 million, or 9% on a reported basis, to $1.496 billion compared to $1.653 billion in the prior year period. On a currency neutral basis, Nourish sales decreased 6% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Nourish operating segment was driven by the divestiture of the portion of the Savory Solutions business, with an impact of approximately $133 million, and price decreases across various business units, offset in part by volume increases across various business units.

Current wording

Nourish sales in 2024 decreased $86 million, or 5% on a reported basis, to $1.478 billion compared to $1.564 billion in the prior year period. On a currency neutral basis, Nourish sales decreased 2% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Nourish operating segment was driven by the divestiture of the portion of the Savory Solutions business with an impact of approximately $89 million and price decreases across various business units, offset in part by volume increases across various business units.

Previous wording

Health & Biosciences sales in 2024 increased $18 million, or 4% on a reported basis, to $531 million compared to $513 million in the prior year period. On a currency neutral basis, Health & Biosciences sales increased 6% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Health & Biosciences operating segment was driven by volume and price increases across various business units.

Current wording

Health & Biosciences sales in 2024 increased $36 million, or 7% on a reported basis, to $558 million compared to $522 million in the prior year period. On a currency neutral basis, Health & Biosciences sales increased 9% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Health & Biosciences operating segment was driven by volume increases across various business units.

Previous wording

Scent sales in 2024 increased $37 million, or 6% on a reported basis, to $645 million compared to $608 million in the prior year period. On a currency neutral basis, Scent sales increased 12% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Scent operating segment was driven by volume and price increases, primarily in the Fragrance Compounds business unit, offset in part by the divestiture of the FSI business, with an impact of approximately $20 million.

Current wording

Scent sales in 2024 increased $11 million, or 2% on a reported basis, to $603 million compared to $592 million in the prior year period. On a currency neutral basis, Scent sales increased 7% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, performance in the Scent operating segment was driven by volume and price increases in the fragrance compounds and fragrance ingredients business units, offset in part by the divestitures of the FSI business and Cosmetic Ingredients business with an impact of approximately $45 million.

Previous wording

Pharma Solutions sales in 2024 decreased $26 million, or 10% on a reported basis, to $227 million compared to $253 million in the prior year period. On a currency neutral basis, Pharma Solutions sales decreased 11% in 2024 compared to the prior year period as exchange rate variations had a favorable impact. In addition, performance in the Pharma Solutions operating segment was driven by volume declines and price decreases in selective end markets.

Current wording

Pharma Solutions sales in 2024 remained flat at $250 million compared to $251 million in the prior year period. On a currency neutral basis, Pharma Solutions sales were flat in 2024 compared to the prior year. Performance in the Pharma Solutions operating segment was driven by volume increases, offset by price decreases in selective end markets.

Previous wording

Cost of goods sold decreased $188 million to $1.875 billion (64.7% of sales) in the first quarter of 2024 compared to $2.063 billion (68.2% of sales) in the first quarter of 2023. The decrease in cost of goods sold was primarily driven by lower raw material costs and manufacturing expenses, lower unfavorable manufacturing absorption compared to the prior year period and the change in business portfolio mix due to divestitures, with an impact of approximately $109 million, offset in part by volume increases in sales.

Current wording

Cost of goods sold decreased $175 million to $1.821 billion (63.0% of sales) in the second quarter of 2024 compared to $1.996 billion (68.1% of sales) in the second quarter of 2023. The decrease in cost of goods sold was primarily driven by lower raw material costs and manufacturing expenses, lower unfavorable manufacturing absorption compared to the prior year period, positive net pricing and productivity compared to the prior year period, and the change in business portfolio mix due to divestitures, with an impact of approximately $86 million, offset in part by volume increases in sales.

Previous wording

R&D expenses increased $5 million to $166 million (5.7% of sales) in the first quarter of 2024 compared to $161 million (5.3% of sales) in the first quarter of 2023. The increase in R&D expenses was primarily driven by higher operating expenses for R&D related activities, offset in part by the change in business portfolio mix due to divestitures.

Current wording

R&D expenses increased $12 million to $173 million (6.0% of sales) in the second quarter of 2024 compared to $161 million (5.5% of sales) in the second quarter of 2023. The increase in R&D expenses was primarily driven by an increase in incentive compensation expense, offset in part by the change in business portfolio mix due to divestitures.

Previous wording

S&A expenses increased $36 million to $490 million (16.9% of sales) in the first quarter of 2024 compared to $454 million (15.0% of sales) in the first quarter of 2023. The increase in S&A expenses was primarily driven by higher legal fees incurred and provisions for the ongoing investigations of the fragrance businesses and professional fees, including consulting costs, offset in part by the change in business portfolio mix due to divestitures.

Current wording

S&A expenses increased $48 million to $493 million (17.1% of sales) in the second quarter of 2024 compared to $445 million (15.2% of sales) in the second quarter of 2023. The increase in S&A expenses was primarily driven by increased incentive compensation expense, higher professional and legal fees incurred and provisions for the ongoing investigations of the fragrance businesses, offset in part by the change in business portfolio mix due to divestitures.

Previous wording

Amortization expenses decreased to $168 million in the first quarter of 2024 compared to $171 million in the first quarter of 2023. The decrease in amortization expense was primarily driven by the reduction in intangible assets as a result of the change in business portfolio mix due to divestitures and intangible assets of the Cosmetic Ingredients business being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets. See Note 3, Note 11 and Note 16 for additional information.

Current wording

Amortization expenses decreased to $153 million in the second quarter of 2024 compared to $172 million in the second quarter of 2023. The decrease in amortization expense was primarily driven by the reduction in intangible assets as a result of the change in business portfolio mix due to divestitures and intangible assets of the Pharma Solutions disposal group being classified as “held for sale,” and therefore no longer recognizing amortization expense on those intangible assets. See Note 3 for additional information.

Previous wording

Restructuring and other charges was $3 million in the first quarter of 2024 compared to $52 million in the first quarter of 2023. The decrease was driven by lower severance costs incurred compared to the prior year period. See Note 4 for additional information.

Current wording

Restructuring and other charges was $2 million in the second quarter of 2024 compared to $7 million in the second quarter of 2023. The decrease was driven by lower severance costs incurred compared to the prior year period. See Note 4 for additional information.

Previous wording

Interest expense decreased to $83 million in the first quarter of 2024 compared to $100 million in the first quarter of 2023. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Current wording

Interest expense decreased to $79 million in the second quarter of 2024 compared to $101 million in the second quarter of 2023. The decrease in interest expense was due to lower debt outstanding. See Note 13 for additional information.

Previous wording

The effective tax rate for the three months ended March 31, 2024 was 47.0% compared to 157.1% for the three months ended March 31, 2023. The quarter-over-quarter decrease was primarily driven by an increase in pre-tax income, changes in the mix of earnings and in tax charges on business divestitures.

Current wording

The effective tax rate for the three months ended June 30, 2024 was 6.0% compared to 46.0% for the three months ended June 30, 2023. The quarter-over-quarter decrease was primarily driven by an increase in pre-tax income, changes in the mix of earnings and in tax impacts on business divestitures.

Previous wording

Scent Segment Adjusted Operating EBITDA increased $52 million, or 50% on reported basis, to $157 million in the first quarter of 2024 (24.3% of segment sales) from $105 million (17.3% of segment sales) in the comparable 2023 period. On a currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 80% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, the performance was primarily driven by favorable net pricing, volume increases and productivity gains, offset in part by the impact of the divestiture of the FSI business.

Current wording

Scent Segment Adjusted Operating EBITDA increased $20 million, or 17% on reported basis, to $137 million in the second quarter of 2024 (22.7% of segment sales) from $117 million (19.8% of segment sales) in the comparable 2023 period. On a currency neutral basis, Scent Segment Adjusted Operating EBITDA increased 37% in 2024 compared to the prior year period as exchange rate variations had an unfavorable impact. In addition, the performance was primarily driven by favorable net pricing, volume increases and productivity gains, offset in part by the impact of the divestiture of the FSI business and Cosmetic Ingredients business.

Previous wording

Other expense, net, was $1 million in the first quarter of 2024 compared to $17 million in the first quarter of 2023. The decrease of $16 million was primarily due to the change in losses incurred from the liquidation of a business in Russia for the sale of the portion of the Savory Solutions business from the prior year period (see Note 3 for additional information) and lower foreign exchange losses, offset in part by lower pension-related benefits.

Current wording

Other expense (income), net, was $16 million in the first six months of 2024 compared to $(8) million in the 2023 period. The change of $24 million was primarily due to increased foreign exchange losses, offset in part by decreased pension-related benefit. See Note 8 for additional information.

Previous wording

We had cash and cash equivalents of $764 million, inclusive of $32 million currently in Assets held for sale on the Consolidated Balance Sheets, at March 31, 2024 compared to $729 million, inclusive of $26 million in Assets held for sale on the Consolidated Balance Sheets, at December 31, 2023 and of this balance, a portion was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.

Current wording

We had cash and cash equivalents of $674 million, inclusive of $3 million currently in Assets held for sale on the Consolidated Balance Sheets, at June 30, 2024 compared to $729 million, inclusive of $26 million in Assets held for sale on the Consolidated Balance Sheets, at December 31, 2023 and of this balance, a portion was held outside the United States. Cash balances held in foreign jurisdictions are, in most circumstances, available to be repatriated to the United States.

Previous wording

Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of March 31, 2024, we had a deferred tax liability of approximately $174 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.

Current wording

Effective utilization of the cash generated by our international operations is a critical component of our strategy. We regularly repatriate cash from our non-U.S. subsidiaries to fund financial obligations in the U.S. As we repatriate these funds to the U.S., there will be required income taxes payable in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of June 30, 2024, we had a deferred tax liability of approximately $175 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.

Previous wording

Cash flows provided by operating activities for the three months ended March 31, 2024 was $99 million, or 3.4% of sales, compared to $127 million, or 4.2% of sales, for the three months ended March 31, 2023. The decrease in cash flows from operating activities during 2024 was primarily driven by the increase in working capital, largely related to accounts receivable and inventories, offset in part by accounts payable and higher cash earnings, excluding the impact of non-cash adjustments.

Current wording

Cash flows provided by operating activities for the six months ended June 30, 2024 was $336 million, or 5.8% of sales, compared to $375 million, or 6.3% of sales, for the six months ended June 30, 2023. The decrease in cash flows from operating activities during 2024 was primarily driven by the increase in working capital, largely related to accounts receivable and inventories, offset in part by accounts payable and higher cash earnings, excluding the impact of non-cash adjustments.

Previous wording

Cash flows used in investing activities for the three months ended March 31, 2024 was $78 million compared to $167 million in the prior year period. The decrease in cash flows used in investing activities was primarily driven by lower spending on property, plant and equipment and higher net proceeds received from business divestiture related to the remaining sale consideration of the portion of the Savory Solutions business.

Current wording

Cash flows provided by investing activities for the six months ended June 30, 2024 was $664 million compared to $552 million in the prior year period. The increase in cash flows provided by investing activities was primarily driven by lower spending on property, plant and equipment and higher net proceeds received from business divestiture related to the remaining sale consideration of the portion of the Savory Solutions business.

Previous wording

We have evaluated and re-prioritized our capital projects and expect that capital spending in 2024 will be approximately 4.9% of sales (net of potential grants and other reimbursements from government authorities), up from 4.1% in 2023.

Current wording

We have evaluated and re-prioritized our capital projects and expect that capital spending in 2024 will be approximately 5.0% of sales (net of potential grants and other reimbursements from government authorities), up from 4.4% in 2023.

Previous wording

Cash Flows Used In Investing Activities

Current wording

Cash Flows Used In Financing Activities

Previous wording

Cash flows provided by financing activities for the three months ended March 31, 2024 was $40 million compared to $78 million in the prior year period. The decrease in cash flows provided by financing activities was primarily driven by higher repayments of long-term debt, offset in part by higher net borrowings of commercial paper and drawdowns under the Revolving Credit Facility, compared to repayments under the Revolving Credit Facility in the prior year period.

Current wording

Cash flows used in financing activities for the six months ended June 30, 2024 was $1,023 million compared to $866 million in the prior year period. The increase in cash flows used in financing activities was primarily driven by higher repayments of long-term debt, offset in part by higher net borrowings of commercial paper in the current period and repayments under the Revolving Credit Facility in the prior year period.

Previous wording

We paid dividends totaling $207 million in the 2024 period. We declared a cash dividend per share of $0.40 in the first quarter of 2024 that was paid on April 10, 2024 to all shareholders of record as of March 22, 2024.

Current wording

We paid dividends totaling $309 million in the 2024 period. We declared a cash dividend per share of $0.40 in the second quarter of 2024 that was paid on July 10, 2024 to all shareholders of record as of June 21, 2024.

Previous wording

Operating cash flow provides the primary source of funds for capital investment needs, dividends paid to shareholders and debt service repayments. We anticipate that cash flows from operations, cash proceeds generated from planned business divestitures and availability under our existing credit facilities will be sufficient to meet our investing and financing needs, including our debt service requirements. We regularly assess our capital structure, including both current and long-term debt instruments, as compared to our cash generation and investment needs in order to provide ample flexibility and to optimize our leverage ratios. See Note 13 for additional information.

Current wording

Operating cash flow provides the primary source of funds for capital investment needs, dividends paid to shareholders and debt service repayments. We anticipate that cash flows from operations, cash proceeds generated from planned business divestitures and availability under our existing credit facilities will be sufficient to meet our investing and financing needs, including our debt service requirements for the foreseeable future. We regularly assess our capital structure, including both current and long-term debt instruments, as compared to our cash generation and investment needs in order to provide ample flexibility and to optimize our leverage ratios. See Note 13 for additional information.

Previous wording

As of March 31, 2024, we had $250 million outstanding borrowings under our $2.000 billion Revolving Credit Facility. The amount that we are able to draw down under the Revolving Credit Facility is limited by financial covenants as described in more detail below. As of March 31, 2024, our available capacity was $1.791 billion under the Revolving Credit Facility.

Current wording

As of June 30, 2024, we had no outstanding borrowings under our $2.000 billion Revolving Credit Facility. The amount that we are able to draw down under the Revolving Credit Facility is limited by financial covenants as described in more detail below. As of June 30, 2024, our available capacity was $1.696 billion under the Revolving Credit Facility.

Previous wording

At March 31, 2024, we were in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At March 31, 2024, our net debt to credit adjusted EBITDA(1) ratio was 4.42 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. The most comparable GAAP measure is the total debt to net loss ratio, which was (4.13) to 1.0 at March 31, 2024.

Current wording

At June 30, 2024, we were in compliance with all financial and other covenants, including the net debt to credit adjusted EBITDA(1) ratio. At June 30, 2024, our net debt to credit adjusted EBITDA(1) ratio was 3.98 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. The most comparable GAAP measure is the total debt to net loss ratio, which was (3.99) to 1.0 at June 30, 2024.

Previous wording

(1)Certain adjustments were made to interest expense associated with our cash pooling arrangements for the second through fourth quarters of 2023.

Current wording

(1)Certain adjustments were made to interest expense associated with our cash pooling arrangements for the second through fourth quarters of 2023. See Note 1 for additional information.

Previous wording

(3)Non-cash items consisted of losses (gains) on sale of assets, losses on business disposals, gain on China facility relocation, write-down of inventory related to Locust Bean Kernel and stock-based compensation.

Current wording

(3)Non-cash items consisted of losses (gains) on sale of assets, losses (gains) on business disposals, losses on held for sale assets, gain on China facility relocation, write-down of inventory related to Locust Bean Kernel and stock-based compensation.

Previous wording

(2)Cash and cash equivalents included approximately $32 million currently in Assets held for sale on the Consolidated Balance Sheets.

Current wording

(2)Cash and cash equivalents included approximately $3 million currently in Assets held for sale on the Consolidated Balance Sheets.

Previous wording

As of March 31, 2024, we had $8.513 billion aggregate principal amount outstanding in senior unsecured notes, with $863 million principal amount denominated in EUR and $7.650 billion principal amount denominated in USD. The notes bear effective interest rates ranging from 1.22% per year to 5.12% per year, with maturities from October 1, 2025 to December 1, 2050. See Note 13 for additional information.

Current wording

As of June 30, 2024, we had $8.507 billion aggregate principal amount outstanding in senior unsecured notes, with $857 million principal amount denominated in EUR and $7.650 billion principal amount denominated in USD. The notes bear effective interest rates ranging from 1.22% per year to 5.12% per year, with maturities from October 1, 2025 to December 1, 2050. See Note 13 for additional information.

Previous wording

We expect to contribute a total of $5 million to our U.S. pension plans and a total of $23 million to our non-U.S. pension plans during 2024. During the three months ended March 31, 2024, no contributions were made to the qualified U.S. pension plans, $6 million of contributions were made to the non-U.S. pension plans and $1 million of contributions were made with respect to the non-qualified U.S. pension plan. We also expect to contribute $4 million to our postretirement benefits other than pension plans during 2024. During the three months ended March 31, 2024, $1 million of benefit payments were made to postretirement benefits other than pension plans.

Current wording

We expect to contribute a total of $5 million to our U.S. pension plans and a total of $23 million to our non-U.S. pension plans during 2024. During the six months ended June 30, 2024, less than $1 million of contributions were made to the qualified U.S. pension plans, $9 million of contributions were made to the non-U.S. pension plans and $2 million of contributions were made with respect to the non-qualified U.S. pension plan. We also expect to contribute $4 million to our postretirement benefits other than pension plans during 2024. During the six months ended June 30, 2024, $2 million of benefit payments were made to postretirement benefits other than pension plans.

Previous wording

Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization expense, interest expense, other income (expense), net, restructuring and other charges and certain items unrelated to recurring operations such as acquisition, divestiture and integration related costs, entity realignment costs, strategic initiatives costs, regulatory costs and other costs that are not related to recurring operations.

Current wording

Adjusted operating EBITDA and adjusted operating EBITDA margin exclude depreciation and amortization expense, interest expense, other income (expense), net, restructuring and other charges and certain items unrelated to recurring operations such as gains (losses) on business disposals, loss on assets classified as held for sale, acquisition, divestiture and integration related costs, entity realignment costs, strategic initiatives costs, regulatory costs and other costs that are not related to recurring operations.

Previous wording

Statements in this Form 10-Q, which are not historical facts or information, are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations and include statements concerning (i) expected cash flow and availability of capital resources to fund our operations and meet our debt service requirements; (ii) our ability to execute on our strategic and financial transformation, including the progress and success of our portfolio optimization strategy (including the sale process for our Pharma Solutions business), through non-core business divestitures and acquisitions, and expectations regarding the implementation of our refreshed growth-focused strategy and expectations around our business divestitures; (iii) our ability to continue to generate value for, and return cash to, our shareholders; (iv) expectations of the impact of inflationary pressures and the pricing actions to offset exposure to such impacts; (v) the impact of high input costs, including commodities, raw materials, transportation and energy; (vi) the expected impact of global supply chain challenges; (vii) our ability to enhance our innovation efforts, drive cost efficiencies and execute on specific consumer trends and demands; (viii) the growth potential of the markets in which we operate, including the emerging markets; (ix) expectations regarding sales and profit for the fiscal year 2024, including the impact of foreign exchange, pricing actions, raw materials, energy, and sourcing, logistics and manufacturing costs; (x) the impact of global economic uncertainty and recessionary pressures on demand for consumer products; (xi) the success of our integration efforts, following the N&B Transaction, and ability to deliver on our synergy commitments as well as future opportunities for the combined company; (xii) our strategic investments in capacity and increasing inventory to drive improved profitability; (xiii) our ability to drive cost discipline measures and the ability to recover margin to pre-inflation levels; (xiv) expected capital expenditures in 2024; and (xv) the expected costs and benefits of our ongoing optimization of our manufacturing operations, including the expected number of closings. These forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “estimate”, “should”, “predict” and similar terms or variations thereof. Such forward-looking statements are based on a series of expectations, assumptions, estimates and projections about the Company, are not guarantees of future results or performance, and …

Excerpt shortened here; the source contains the full paragraph.

Current wording

Statements in this Form 10-Q, which are not historical facts or information, are “forward-looking statements” within the meaning of The Private Securities Litigation Reform Act of 1995. Such forward-looking statements are based on management’s current assumptions, estimates and expectations and include statements concerning (i) expected cash flow and availability of capital resources to fund our operations and meet our debt service requirements; (ii) our ability to execute on our strategic and financial transformation, including the progress and success of our portfolio optimization strategy (including the sale process for our Pharma Solutions disposal group), through non-core business divestitures and acquisitions, and expectations regarding the implementation of our refreshed growth-focused strategy and expectations around our business divestitures; (iii) our ability to continue to generate value for, and return cash to, our shareholders; (iv) expectations of the impact of inflationary pressures and the pricing actions to offset exposure to such impacts; (v) the impact of high input costs, including commodities, raw materials, transportation and energy; (vi) the expected impact of global supply chain challenges; (vii) our ability to enhance our innovation efforts, drive cost efficiencies and execute on specific consumer trends and demands; (viii) the growth potential of the markets in which we operate, including the emerging markets; (ix) expectations regarding sales and profit for the fiscal year 2024, including the impact of foreign exchange, pricing actions, raw materials, energy, and sourcing, logistics and manufacturing costs; (x) the impact of global economic uncertainty and recessionary pressures on demand for consumer products; (xi) the success of our integration efforts, following the N&B Transaction, and ability to deliver on our synergy commitments as well as future opportunities for the combined company; (xii) our strategic investments in capacity and increasing inventory to drive improved profitability; (xiii) our ability to drive cost discipline measures and the ability to recover margin to pre-inflation levels; (xiv) expected capital expenditures in 2024; and (xv) the expected costs and benefits of our ongoing optimization of our manufacturing operations, including the expected number of closings. These forward-looking statements should be evaluated with consideration given to the many risks and uncertainties inherent in our business that could cause actual results and events to differ materially from those in the forward-looking statements. Certain of such forward-looking information may be identified by such terms as “expect”, “anticipate”, “believe”, “intend”, “outlook”, “may”, “estimate”, “should”, “predict” and similar terms or variations thereof. Such forward-looking statements are based on a series of expectations, assumptions, estimates and projections about the Company, are not guarantees of future results or performance…

Excerpt shortened here; the source contains the full paragraph.