View Filing Data

Document and Entity Information - USD ($)	9 Months Ended
Document and Entity Information - USD ($)	Sep. 30, 2010	Oct. 22, 2010	Jun. 30, 2009
Document and Entity Information [Abstract]
Entity Registrant Name	INTERNATIONAL FLAVORS & FRAGRANCES INC
Entity Central Index Key	0000051253
Document Type	10-Q
Document Period End Date	Sep. 30, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 2,584,509,708
Entity Common Stock, Shares Outstanding		79,950,836

Consolidated Balance Sheet (Unaudited) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2010	Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$ 114,885	$ 80,135
Trade receivables	519,378	454,528
Allowance for doubtful accounts	(7,405)	(10,263)
Inventories: Raw materials	267,479	228,999
Work in process	8,951	9,173
Finished goods	227,561	206,805
Total Inventories	503,991	444,977
Deferred income taxes	74,699	55,002
Prepaid expenses and other current assets	122,602	103,687
Total Current Assets	1,328,150	1,128,066
Property, plant and equipment, at cost	1,323,900	1,265,885
Accumulated depreciation	(818,227)	(764,592)
Property, plant and equipment, at cost	505,673	501,293
Goodwill	665,582	665,582
Intangible assets, net	50,352	54,948
Deferred income taxes	140,441	129,720
Other assets	174,109	165,165
Total Assets	2,864,307	2,644,774
Current Liabilities:
Bank borrowings and overdrafts and current portion of long-term debt	137,872	76,780
Accounts payable	169,652	161,027
Accrued payroll and bonus	84,168	49,022
Accrued taxes on income	42,597	1,913
Dividends payable	21,576	19,786
Restructuring and other charges	5,839	18,914
Other current liabilities	181,893	157,012
Total Current Liabilities	643,597	484,454
Other Liabilities:
Long-term debt	810,719	934,749
Deferred gains	51,710	54,884
Retirement liabilities	242,744	240,950
Other liabilities	164,665	157,827
Total Other Liabilities	$ 1,269,838	$ 1,388,410
Commitments and Contingencies (Note 13)
Shareholders' Equity:
Common stock 12 1/2 cent par value; authorized 500,000,000 shares; issued 115,761,840 shares as of September 30, 2010 and December 31, 2009; and outstanding 79,923,153 and 79,157,393 shares as of September 30, 2010 and December 31, 2009	$ 14,470	$ 14,470
Capital in excess of par value	106,726	110,374
Retained earnings	2,485,785	2,339,205
Accumulated other comprehensive loss	(265,374)	(270,974)
Treasury stock, at cost - 35,838,687 shares as of September 30, 2010 and 36,604,447 shares as of December 31, 2009	(1,394,453)	(1,424,072)
Total Shareholders' Equity	947,154	769,003
Noncontrolling interest	3,718	2,907
Total Shareholders' Equity including noncontrolling interest	950,872	771,910
Total Liabilities and Shareholders' Equity	$ 2,864,307	$ 2,644,774

Consolidated Balance Sheet (Unaudited) (Parenthetical) - USD ($)	Sep. 30, 2010	Dec. 31, 2009
Shareholders' Equity:
Common stock, par value	$ 0.125	$ 0.125
Common stock, shares authorized	500,000,000	500,000,000
Common stock, shares issued	115,761,840	115,761,840
Common stock, shares outstanding	79,923,153	79,157,393
Treasury stock, shares at cost	35,838,687	36,604,447

Consolidated Statement of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2010	Sep. 30, 2009
Consolidated Statement of Income [Abstract]
Net sales	$ 673,283	$ 612,634	$ 1,992,993	$ 1,740,525
Cost of goods sold	388,235	363,780	1,152,737	1,041,692
Research and development expenses	53,214	49,392	161,688	140,971
Selling and administrative expenses	108,955	101,199	336,487	290,116
Restructuring and other charges	2,355	10,500	9,186	14,604
Interest expense	12,244	13,503	37,031	47,331
Other expense (income), net	2,097	(24)	6,967	383
Cost and expense, Total	567,100	538,350	1,704,096	1,535,097
Income before taxes on income	106,183	74,284	288,897	205,428
Taxes on income	29,145	21,484	80,917	57,350
Net income	77,038	52,800	207,980	148,078
Other comprehensive income:
Foreign currency translation adjustments	42,055	5,161	5,412	72,595
Gains (losses) on derivatives qualifying as hedges	(5,848)	(853)	(5,288)	343
Pension and postretirement net liability adjustment	2,025	1,446	5,476	3,721
Comprehensive income	$ 115,270	$ 58,554	$ 213,580	$ 224,737
Net income per share - basic	$ 0.96	$ 0.67	$ 2.61	$ 1.88
Net income per share - diluted	$ 0.95	$ 0.66	$ 2.58	$ 1.86
Average number of shares outstanding - basic	79,357	78,491	79,078	78,346
Average number of shares outstanding - diluted	80,266	79,159	79,997	78,986
Dividends declared per share	$ 0.27	$ 0.25	$ 0.77	$ 0.75

Consolidated Statement of Cash Flows (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2010	Sep. 30, 2009
Cash flows from operating activities:
Net income	$ 207,980	$ 148,078
Adjustments to reconcile to net cash provided by operations:
Depreciation and amortization	60,137	58,074
Deferred income taxes	(40,720)	2,421
Gain on disposal of assets	(2,960)	(2,366)
Equity based compensation	16,708	15,065
Changes in assets and liabilities:
Current receivables	(60,926)	(56,280)
Inventories	(53,155)	61,310
Current payables	92,841	15,647
Other assets	(22,224)	(40,219)
Other liabilities	10,644	(1,658)
Net cash provided by operations	208,325	200,072
Cash flows from investing activities:
Additions to property, plant and equipment	(53,597)	(29,755)
Purchase of investments	(3,592)	(3,288)
Termination / maturity of net investment hedges	1,668	(13,604)
Proceeds from disposal of assets	1,541	1,192
Net cash used in investing activities	(53,980)	(45,455)
Cash flows from financing activities:
Cash dividends paid to shareholders	(59,605)	(78,441)
Net change in bank borrowings and overdrafts	(76,086)	(48,318)
Repayments of long-term debt		(52,800)
Proceeds from issuance of stock under stock-based compensation plans	17,105	2,103
Purchase of treasury stock		(1,967)
Net cash used in financing activities	(118,586)	(179,423)
Effect of exchange rate changes on cash and cash equivalents	(1,009)	911
Net change in cash and cash equivalents	34,750	(23,895)
Cash and cash equivalents at beginning of year	80,135	178,467
Cash and cash equivalents at end of period	114,885	154,572
Interest paid	53,086	69,243
Income taxes paid	$ 45,882	$ 40,037

Recent Accounting Pronouncements	9 Months Ended
Recent Accounting Pronouncements	Sep. 30, 2010
Recent Accounting Pronouncements [Abstract]
Recent Accounting Pronouncements	Note 1. Recent Accounting Pronouncements: In January 2010, the Financial Accounting Standards Board (“FASB”) issued authoritative guidance revising certain disclosure requirements concerning fair value measurements. The guidance requires an entity to disclose separately significant transfers into and out of Levels 1 and 2 of the fair value hierarchy and to disclose the reasons for such transfers. It will also require the presentation of purchases, sales, issuances and settlements within Level 3 on a gross basis rather than a net basis. These new disclosure requirements were effective for our first quarter of 2010, except for the additional disclosure of Level 3 activity, which is effective for fiscal years beginning after December 15, 2010. We did not have any such transfers into and out of Levels 1 and 2 during the three months and nine months ended September 30, 2010. We are currently evaluating the full impact of this guidance, but we do not expect it to have a material impact on the disclosures in our Consolidated Financial Statements in future filings.

Reclassifications	9 Months Ended
Reclassifications	Sep. 30, 2010
Reclassifications [Abstract]
Reclassifications	Note 2. Reclassifications: Certain reclassifications and revisions have been made to the prior years’ financial statements to conform to the 2010 presentation. During 2009, the Company revised its method of reporting Research and Development (R&D) credits to be properly reflected as a reduction in R&D expense versus a reduction in income tax expense. The R&D revision increased the income tax expense for the three months and nine months ended September 30, 2009 in the amounts of $1.0 million and $4.7 million, respectively. The 2009 revisions had no impact on net income. Reclassifications, including their impact, on the Consolidated Statement of Income for the three months and nine months ended September 30, 2009 were as follows: Cost of goods sold increased $0.1 million and $0.4 million, respectively; R&D decreased $1.8 million and $5.6 million, respectively; and Selling and Administrative increased $1.7 million and $5.2 million, respectively.

Net Income Per Share

9 Months Ended

Sep. 30, 2010

Net Income Per Share [Abstract]

Net Income Per Share

Note 3. Net Income Per Share:

Net income per share is based on the weighted average number of shares outstanding. A reconciliation of the shares used in the computation of basic and diluted net income per share is as follows:


	Three Months Ended September 30,				Nine Months Ended September 30,
(Shares in thousands)	2010		2009		2010		2009
Basic		79,357		78,491		79,078		78,346
Assumed dilution under stock plans		909		668		919		640

Diluted		80,266		79,159		79,997		78,986

Stock options and stock settled appreciation rights (“SSARs”) to purchase 378,000 shares and 818,000 shares were outstanding as of September 30, 2010 and September 30, 2009, respectively, but were not included in the computation of diluted net income per share for the respective periods since the impact was anti-dilutive.

We have issued shares of Purchased Restricted Stock (“PRS”) which contain nonforfeitable rights to dividends and thus are considered participating securities which are required to be included in the computation of basic and diluted earnings per share pursuant to the two-class method. We did not present the two-class method since the difference between basic and diluted net income per share for both common shareholders and PRS shareholders was less than $0.01 per share for each period and the number of PRS outstanding as of September 30, 2010 and 2009 was immaterial (approximately 0.6% of the total number of common shares outstanding). Net income allocated to such PRS was $0.5 million and $1.3 million during the three and nine months ended September 30, 2010, respectively, and $0.3 million and $1.0 million during the three and nine months ended September 30, 2009, respectively.

Restructuring and Other Charges

9 Months Ended

Sep. 30, 2010

Restructuring and Other Charges [Abstract]

Restructuring and Other Charges

Note 4. Restructuring and Other Charges:

The Company has completed its previously announced negotiations with the Drogheda, Ireland employee representatives regarding separation benefits related to the closure of the Company’s compounding facility at that location. Based upon the period-end estimates regarding the separation agreements, the Company increased its provision for severance costs by approximately $5 million in the first nine months of 2010. The balance of the restructuring charges in the first nine months of 2010 was mainly due to accelerated depreciation and other restructuring related costs pertaining to the rationalization of our Fragrance and Ingredients operations in Europe. The Company ceased its operations at the Drogheda plant as of September 30, 2010. The Company is currently working with the Trustees of the pension plan regarding various aspects associated with the funding requirements for the plan, which it expects to conclude in the first quarter of 2011.

We expect to incur total costs related to this restructuring plan of approximately $31-$34 million, consisting primarily of $18 million of employee termination costs, $9-$12 million in plant shutdown and business transition costs and $4 million in accelerated depreciation of related fixed assets. The increase from our prior estimate reflects projected higher inventory write-offs and transition costs associated with a more complex operating environment, due to higher activity levels, and potential incremental pension settlement costs.

Including the third quarter of 2009, we have recorded total expenses of $29.9 million relating to this plan, of which $23.6 million was recorded to restructuring and other charges and $6.3 million recorded to costs of sales and research, selling and administrative expenses.

The balance of the employee-related liabilities is expected to be utilized by the end of 2011 as obligations are satisfied. Change in restructuring liabilities during the nine months ended September 30, 2010 is as follows:


				Asset-
	Employee-			Related
	Related			and Other			Total
Balance December 31, 2009	$	18,914		$	—		$	18,914
Additional charges		4,938			4,248			9,186
Payments and other costs		(18,013	)		(1,341	)		(19,354	)
Non-cash charges		—			(2,907	)		(2,907	)

Balance September 30, 2010	$	5,839		$	—		$	5,839

Goodwill and Other Intangible Assets, Net

9 Months Ended

Sep. 30, 2010

Goodwill and Other Intangible Assets, Net [Abstract]

Goodwill and Other Intangible Assets, Net

Note 5. Goodwill and Other Intangible Assets, Net:

Goodwill by operating segment for both September 30, 2010 and December 31, 2009 is as follows:


(DOLLARS IN THOUSANDS)	Amount
Flavors	$	319,479
Fragrances		346,103

Total	$	665,582

Trademark and other intangible assets consist of the following amounts:


	September 30,			December 31,
(DOLLARS IN THOUSANDS)	2010			2009
Gross carrying value	$	165,406		$	165,406
Accumulated amortization		(115,054	)		(110,458	)

Total	$	50,352		$	54,948

Amortization expense for the three months ended September 30, 2010 and September 30, 2009 was $1.5 million. Amortization expense for the nine months ended September 30, 2010 and September 30, 2009 was $4.6 million. Estimated annual amortization is $6 million for years 2010 through 2013 and $5 million for 2014.

Comprehensive Income

9 Months Ended

Sep. 30, 2010

Comprehensive Income [Abstract]

Comprehensive Income

Note 6. Comprehensive Income:

Changes in the Accumulated other comprehensive income loss (“AOCI”) component of shareholders’ equity were as follows:


				Accumulated (losses)			Pension and
				gains on derivatives			postretirement net
	Translation			qualifying as hedges,			liability adjustment,
(DOLLARS IN THOUSANDS)	adjustments			net of tax			net of tax			Total
Balance December 31, 2009	$	(68,606	)	$	(2,741	)	$	(199,627	)	$	(270,974	)
Change		5,412			(5,288	)		5,476			5,600

Balance September 30, 2010	$	(63,194	)	$	(8,029	)	$	(194,151	)	$	(265,374	)


				Accumulated (losses)			Pension and
				gains on derivatives			postretirement net
	Translation			qualifying as hedges,			liability adjustment,
(DOLLARS IN THOUSANDS)	adjustments			net of tax			net of tax			Total
Balance December 31, 2008	$	(149,846	)	$	(3,832	)	$	(171,427	)	$	(325,105	)
Change		72,595			343			3,721			76,659

Balance September 30, 2009	$	(77,251	)	$	(3,489	)	$	(167,706	)	$	(248,446	)

Borrowings

9 Months Ended

Sep. 30, 2010

Borrowings [Abstract]

Borrowings

Note 7. Borrowings:

Debt consists of the following:


(DOLLARS IN THOUSANDS)	Rate			Maturities		September 30, 2010		December 31, 2009
Bank borrowings and overdrafts						$	37,872	$	76,780
Current portion of long-term debt		5.96	%				100,000		—

Total current debt							137,872		76,780

Senior notes — 2007		6.38	%		2017-27		500,000		500,000
Senior notes — 2006		6.10	%		2012-16		225,000		325,000
Bank borrowings		0.39	%		2012		50,380		75,166
Japanese Yen notes		2.81	%		2011		21,886		19,614
Other							8		16
Deferred realized gains on interest rate swaps							13,445		14,953

Total long-term debt							810,719		934,749

Total debt						$	948,591	$	1,011,529

The estimated fair value at September 30, 2010 of our Senior Notes — 2007 and Senior Notes — 2006 was approximately $614 million and $365 million, respectively. The fair value of our Senior Notes was calculated using discounted cash flows applying current interest rates and current credit spreads based on our own credit risk. The estimated fair value of the remainder of our long-term debt at September 30, 2010 approximated the carrying value.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2010
Income Taxes [Abstract]
Income Taxes	Note 8. Income Taxes: As of September 30, 2010, we had $69 million of gross unrecognized tax benefits recorded in Other liabilities, that if recognized, would be recorded as a component of income tax expense and would affect our effective tax rate. We have consistently recognized interest and penalties related to unrecognized tax benefits as a component of income tax expense. At September 30, 2010, we had accrued $11 million of interest and penalties. We have several tax audits in process and have open tax years with various significant taxing jurisdictions that range primarily from 2002 to 2009. Based on currently available information, we do not believe the ultimate outcome of these tax audits and other tax positions related to open tax years, when finalized, will have a material adverse effect on our financial position, results of operations or cash flows. We review uncertain tax positions on an ongoing basis and related reserves are adjusted in light of changing facts and circumstances including the progress of tax audits. The Company has historically utilized bank guarantees to collateralize tax exposures related to certain administrative proceedings. With the current turmoil in the credit markets, the Company may be precluded from securing similar forms of collateral for unrecognized tax benefits. If this situation occurs, the Company may be required to self-fund any future collateral obligations. The effective tax rate for the three and nine months ended September 30, 2010 was 27.4% and 28.0%, respectively, compared with 28.9% and 27.9% for the comparable periods in 2009. The reduction in the effective tax rate in the three months ended September 30, 2010 was mainly attributable to mix of earnings across the countries in which the Company operates.

Equity Compensation Plans

9 Months Ended

Sep. 30, 2010

Equity Compensation Plans [Abstract]

Equity Compensation Plans

Note 9. Equity Compensation Plans:

We have various plans under which our officers, senior management, other key employees and directors may be granted equity-based awards, including PRS, restricted stock units (“RSUs”), SSARs or stock options to purchase our common stock.

We offer a Long-Term Incentive Plan (“LTIP”) for senior management. LTIP plan award payouts are based on meeting certain targeted financial and/or strategic goals established by the Compensation Committee of the Board of Directors early in each three-year LTIP cycle. Beginning with the LTIP 2007-2009 cycle and each three-year cycle thereafter, the targeted payout is 50% cash and 50% IFF stock. The number of shares for the 50% stock portion is determined by the closing share price on the first trading day at the beginning of the cycle. Generally, the executive may receive a pro-rated payout for each LTIP cycle based on active service during such cycle.

Principal assumptions used in applying the Binomial model for SSAR’s granted during the nine months ended September 30, 2010 and September 30, 2009 were as follows:


	2010			2009
Weighted average fair value of SSAR’s granted during the period	$	10.41		$	7.08
Assumptions:
Risk-free interest rate		2.2	%		2.5	%
Expected volatility		29.8	%		30.9	%
Expected dividend yield		2.2	%		3.2	%
Expected life, in years		5			5
Termination rate		1.09	%		0.91	%
Exercise multiple		1.38			1.46

Stock option and SSAR activity for the nine months ended September 30, 2010 was as follows:


				Weighted Average
(SHARE AMOUNTS IN THOUSANDS)	Options/SSARs			Exercise Price
Balance at December 31, 2009		2,228		$	35.27
Exercised		(391	)	$	34.04
Cancelled		(6	)	$	43.13

Balance at March 31, 2010		1,831		$	35.50

Granted		197		$	44.92
Exercised		(173	)	$	32.27
Cancelled		(38	)	$	35.47

Balance at June 30, 2010		1,817		$	36.82

Exercised		(78	)	$	32.89

Balance at September 30, 2010		1,739		$	37.00

RSU and PRS activity for the nine months ended September 30, 2010 was as follows:


				Weighted Average
				Grant Date Fair
(SHARE AMOUNTS IN THOUSANDS)	RSU			Value Per Share
Balance at December 31, 2009		978		$	37.42
Cancelled		(2	)	$	41.16

Balance at March 31, 2010		976		$	38.52

Granted		281		$	45.95
Vested		(193	)	$	40.30
Cancelled		(12	)	$	38.15

Balance at June 30, 2010		1,052		$	37.29

Granted		24		$	45.47
Vested		(1	)	$	36.33
Cancelled		(18	)	$	37.06

Balance at September 30, 2010		1,057		$	37.49


				Weighted Average
				Grant Date Fair
(SHARE AMOUNTS IN THOUSANDS)	PRS			Value Per Share
Balance at December 31, 2009		498		$	20.28
Granted		39		$	22.90
Cancelled		(4	)	$	15.24

Balance at March 31, 2010		533		$	20.52

Granted		174		$	22.46
Vested		(180	)	$	25.89

Balance at June 30, 2010		527		$	19.31

Cancelled		(2	)	$	15.24

Balance at September 30, 2010		525		$	19.32

Pre-tax expense related to all forms of equity compensation was as follows:


	Three Months Ended				Nine Months Ended
	September 30,				September 30,
(DOLLARS IN THOUSANDS)	2010		2009		2010		2009
Restricted stock and RSUs	$	5,530	$	4,404	$	15,639	$	13,228
Stock options and SSARs		398		525		1,069		1,837

Total equity compensation expense	$	5,928	$	4,929	$	16,708	$	15,065

Tax benefits associated with share-based compensation of $2.1 million and $6.1 million were recognized for the third quarter and first nine months 2010, respectively, and $2.2 million and $5.4 million were recognized for the third quarter and first nine months 2009, respectively.

Segment Information

9 Months Ended

Sep. 30, 2010

Segment Information [Abstract]

Segment Information

Note 10. Segment Information:

We are organized into two business segments, Flavors and Fragrances; these segments align with the internal structure used to manage these businesses. Accounting policies used for segment reporting are described in Note 1 of the Notes to the Consolidated Financial Statements included in our 2009 Form 10-K. We evaluate the performance of these segments, which we refer to as business units, based on operating profit before interest expense, other income (expense), net and income taxes.

The Global expenses caption represents corporate and headquarters-related expenses which include legal, finance, human resources, certain incentive compensation expenses and other administrative expenses that are not allocated to individual business units.

Our reportable segment information was as follows:


	Three Months Ended September 30, 2010
					Global
(DOLLARS IN THOUSANDS)	Flavors		Fragrances		Expenses			Consolidated

Net sales	$	300,540	$	372,743	$	—		$	673,283


Operating profit	$	62,980	$	68,611	$	(11,067	)	$	120,524


Interest expense									(12,244	)
Other income (expense), net									(2,097	)

Income before taxes on income								$	106,183


	Three Months Ended September 30, 2009
					Global
(DOLLARS IN THOUSANDS)	Flavors		Fragrances		Expenses			Consolidated

Net sales	$	275,421	$	337,213	$	—		$	612,634


Operating profit	$	54,981	$	47,268	$	(14,486	)	$	87,763


Interest expense									(13,503	)
Other income (expense), net									24

Income before taxes on income								$	74,284


	Nine Months Ended September 30, 2010
					Global
(DOLLARS IN THOUSANDS)	Flavors		Fragrances		Expenses			Consolidated

Net sales	$	905,032	$	1,087,961	$	—		$	1,992,993


Operating profit	$	189,064	$	190,000	$	(46,169	)	$	332,895


Interest expense									(37,031	)
Other income (expense), net									(6,967	)

Income before taxes on income								$	288,897


	Nine Months Ended September 30, 2009
					Global
(DOLLARS IN THOUSANDS)	Flavors		Fragrances		Expenses			Consolidated

Net sales	$	811,310	$	929,215	$	—		$	1,740,525


Operating profit	$	162,415	$	121,803	$	(31,076	)	$	253,142


Interest expense									(47,331	)
Other income (expense), net									(383	)

Income before taxes on income								$	205,428

Net sales are attributed to individual regions based upon the destination of product delivery. Net sales related to the U.S. for the three months ended September 30, 2010 and 2009 were $166.2 million and $151.9 million, respectively, and for the nine months ended September 30, 2010 and 2009 were $475.1 million and $432.2 million, respectively. Net sales attributed to all foreign countries in total for the three months ended September 30, 2010 and 2009 were $507.1 million and $460.7 million, respectively, and for the nine months ended September 30, 2010 and 2009 were $1,517.8 million and $1,308.3 million, respectively. No non-U.S. country had net sales in any period presented greater than 7% of total consolidated net sales.

Retirement Benefits

9 Months Ended

Sep. 30, 2010

Retirement Benefits [Abstract]

Retirement Benefits

Note 11. Retirement Benefits:

Pension expense included the following components:


U.S. Plans	Three Months Ended September 30,						Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009
Service cost for benefits earned	$	1,016		$	700		$	2,836		$	3,060
Interest cost on projected benefit obligation		6,164			5,794			18,143			17,764
Expected return on plan assets		(6,026	)		(6,379	)		(18,110	)		(18,463	)
Net amortization and deferrals		1,958			1,641			5,581			4,809

Defined benefit plans		3,112			1,756			8,450			7,170
Defined contribution and other retirement plans		1,742			1,699			5,479			5,482

Total pension expense	$	4,854		$	3,455		$	13,929		$	12,652


Non-U.S. Plans	Three Months Ended September 30,						Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009
Service cost for benefits earned	$	2,448		$	2,012		$	7,642		$	6,035
Interest cost on projected benefit obligation		8,506			7,136			25,518			21,408
Expected return on plan assets		(10,710	)		(9,351	)		(32,149	)		(28,052	)
Net amortization and deferrals		1,345			697			4,034			2,092
(Gain)/loss due to settlements and curtailments		63			—			126			—

Defined benefit plans		1,652			494			5,171			1,483
Defined contribution and other retirement plans		985			1,211			3,182			3,264

Total pension expense	$	2,637		$	1,705		$	8,353		$	4,747

During 2010, we will contribute an estimated $12 million to our U.S. pension plans and up to $16 million to our non-U.S. pension plans. In the three and nine months ended September 30, 2010, no contributions were made to our qualified U.S. pension plan. In the three and nine months ended September 30, 2010, $3.4 million and $11.3 million of contributions were made to the non-U.S. plans, respectively. In the three and nine months ended September 30, 2010, $1.5 million and $3.3 million of benefit payments were made with respect to our non-qualified U.S. pension plan.

The financial returns of our investment trusts during the third quarter and first nine months of 2010 continue to be generally in line with the markets by asset class. We had little exposure to financial institution equities and had no direct investments in sub-prime related assets.

Expense recognized for postretirement benefits other than pensions included the following components:


	Three Months Ended September 30,						Nine Months Ended September 30,
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009
Service cost for benefits earned	$	410		$	351		$	1,230		$	1,233
Interest on benefit obligation		1,643			1,513			4,929			4,625
Net amortization and deferrals		(489	)		(379	)		(1,467	)		(1,509	)

Total postretirement benefit expense	$	1,564		$	1,485		$	4,692		$	4,349

We expect to contribute approximately $6 million to our postretirement benefit other than pension plans in 2010. In the three and nine months ended September 30, 2010, $1.1 million and $3.7 million of contributions were made, respectively.

Financial Instruments	9 Months Ended
Financial Instruments	Sep. 30, 2010
Financial Instruments [Abstract]
Financial Instruments	<!--DOCTYPE html PUBLIC "-//W3C//DTD XHTML 1.0 Transitional//EN" "http://www.w3.org/TR/xhtml1/DTD/xhtml1-transitional.dtd" --> <!-- Begin Block Tagged Note 12 - iff:FinancialInstrumentsTextBlock--> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt"><b>Note 12. Financial Instruments:</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Fair Value</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Accounting guidance on fair value measurements specifies a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect our market assumptions. These two types of inputs create the following fair value hierarchy: </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="12%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>Level 1-Quoted prices for <i>identical </i>instruments in active markets.</td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="12%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>Level 2-Quoted prices for <i>similar </i>instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets.</td> </tr> </table> </div> <div style="margin-top: 10pt"> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr valign="top" style="font-size: 10pt; color: #000000; background: transparent"> <td width="12%" style="background: transparent"> </td> <td width="3%" nowrap="nowrap" align="left"><b>•</b></td> <td width="1%"> </td> <td>Level 3-Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable<i>.</i></td> </tr> </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">This hierarchy requires us to use observable market data, when available, and to minimize the use of unobservable inputs when determining fair value. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">When available, we generally use quoted market prices to determine fair value, and classify such items in Level 1. We determine the fair value of structured liabilities (where performance is linked to structured interest rates, inflation or currency risks) using the London InterBank Offer Rate (“LIBOR”) swap curve and forward interest and exchange rates at period end. Such instruments are classified as Level 2 based on the observability of significant inputs to the model. We do not have any instruments classified as Level 3. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The market valuation adjustments include a bilateral or “own” credit risk adjustment applied to reflect our own credit risk when valuing all liabilities measured at fair value, in accordance with the requirements under the accounting guidance. The methodology is consistent with that applied in generating counterparty credit risk adjustments, but incorporates our own credit risk as observed in the credit default swap market. As for counterparty credit risk, our own credit risk adjustments include the impact of credit risk mitigants. The estimated change in the fair value of these liabilities due to such changes in our own credit risk (or instrument-specific credit risk) was immaterial as of September 30, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; margin-left: 4%"><b>Derivatives</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">We periodically enter into foreign currency forward contracts with the objective of reducing exposure to cash flow volatility associated with our intercompany loans, foreign currency receivables and payables, and anticipated purchases of certain raw materials used in operations. These contracts generally involve the exchange of one currency for a second currency at a future date, have maturities not exceeding twelve months and are with counterparties which are major international financial institutions. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In 2003, we executed a 10-year Yen — U.S. dollar currency swap related to the monthly sale and purchase of products between the U.S. and Japan which has been designated as a cash flow hedge. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In 2005, we entered into an interest rate swap agreement effectively converting the fixed rate on our long-term Japanese Yen borrowings to a variable short-term rate based on the Tokyo InterBank Offering Rate (“TIBOR”) plus an interest markup. This swap was designated as a fair value hedge. Any amounts recognized in interest expense for both periods presented have been insignificant. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In February 2009, we paid $16 million to close out the $300 million U.S. Dollar (“USD”) LIBOR to European InterBank Offer Rate (“EURIBOR”) interest rate swap. As this swap was designated as a net investment hedge, $12 million of the loss was deferred in AOCI where it will remain until the Euro net investment is divested and $4 million was included as a component of interest expense during the nine months ended September 30, 2009. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">In May 2009 we entered into a forward currency contract which qualified as a net investment hedge, in order to protect a portion of our net European investment from foreign currency risk. We recognized a $1.6 million loss during the year ended December 31, 2009, which was deferred as a component of AOCI. The ineffective portion of this net investment hedge was not material. This forward currency contract matured before the end of the second quarter of 2009. Upon its maturity, we entered into an intercompany loan payable in the amount of 40 million Euros in order to protect a portion of our net European investment from foreign currency risk. This intercompany loan was designated as a net investment hedge and experienced no ineffectiveness while outstanding. We recognized a $3.1 million loss during the year ended December 31, 2009, which was deferred as a component of AOCI. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During the nine months ended September 30, 2010, we entered into multiple forward currency contracts which qualified as net investment hedges, in order to mitigate a portion of our net European investments from foreign currency risk. The effective portions of net investment hedges are recorded in Other comprehensive income (“OCI”) as a component of “Foreign currency translation adjustments” in the accompanying Consolidated Statement of Income. Realized gains/(losses) are deferred in AOCI where they will remain until the net investments in our European subsidiaries are divested. Two of these forward currency contracts matured during the nine-month period ended September 30, 2010. The remaining outstanding foreign currency forward contacts for which we account for as net investment hedges have remaining maturities of less than one year. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During the second and third quarter of 2010, we entered into several forward currency contracts which qualified as cash flow hedges. The objective of these hedges is to protect against the currency risk associated with forecasted US Dollar (USD) denominated raw material purchases made by Euro (EUR) functional entities which result from changes in the EUR/USD exchange rate. The effective portions of cash flow hedges are recorded in OCI as a component of “Gains (losses) on derivatives qualifying as hedges” in the accompanying Consolidated Statement of Income. Realized gains/(losses) remain in AOCI until the hedged item is recognized in earnings. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">During the third quarter of 2010, we entered into two interest rate swap agreements effectively converting the fixed rate on our long term borrowings to a variable short-term rate based on the LIBOR plus an interest mark-up. These swaps are designated as fair value hedges. Any amounts recognized in interest expense have been insignificant for the three and nine months ended September 30, 2010. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following tables show the Company’s derivative instruments measured at fair value (Level 2 of the fair value hierarchy) as reflected in the Consolidated Balance Sheets as of September 30, 2010 and December 31, 2009 (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="58%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>September 30, 2010</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Derivatives</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Derivatives Not</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Designated as</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Designated as</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Hedging</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Hedging</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Total Fair</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Instruments</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Instruments</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative assets (a) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.7</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate swaps </div></td> <td> </td> <td align="left">$</td> <td align="right">0.4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.4</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px"> </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td align="left">$</td> <td align="right">0.4</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">2.1</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative liabilities (b) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">23.1</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">3.7</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">26.8</td> <td> </td> </tr> <!-- End Table Body --> </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="58%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="10" style="border-bottom: 1px solid #000000"><b>December 31, 2009</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Fair Value of</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Derivatives</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Derivatives Not</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Designated as</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Designated as</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"> </td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Hedging</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Hedging</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Total Fair</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Instruments</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Instruments</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>Value</b></td> <td> </td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative assets (a) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate swap </div></td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:30px; text-indent:-15px"> </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 1px solid #000000"> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.2</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.4</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative liabilities (b) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">4.5</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">0.9</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5.4</td> <td> </td> </tr> <!-- End Table Body --> </table> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr style="font-size: 6pt"> <td width="3%"> </td> <td width="1%"> </td> <td width="96"> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(a)</td> <td> </td> <td>Derivative assets are recorded to Prepaid expenses and other current assets in the Consolidated Balance Sheet.</td> </tr> <tr style="font-size: 3pt"> <td> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(b)</td> <td> </td> <td>All derivative liabilities are recorded as Other current liabilities in the Consolidated Balance Sheet.</td> </tr> </table> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table shows the effect of the Company’s derivative instruments which were not designated as hedging instruments in the Consolidated Statements of Income for the three and nine months ended September 30, 2010 and September 30, 2009 (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="38%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="15%"> </td> <td width="25%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or (Loss)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Recognized in Income on</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Location of Gain</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Derivative</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>or (Loss)</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Derivatives Not Designated as</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the three months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Recognized in</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Hedging Instruments under</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Income on</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>ASC 815</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Derivative</b></td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(7.2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11.0</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left" valign="top">Other (income) expense, net</td> </tr> <!-- End Table Body --> </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="38%"> </td> <td width="5%"> </td> <td width="2%"> </td> <td width="1%"> </td> <td width="2%"> </td> <td width="5%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="15%"> </td> <td width="25%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or (Loss)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Recognized in Income on</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Location of Gain</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Derivative</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>or (Loss)</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Derivatives Not Designated as</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the nine months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Recognized in</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b>Hedging Instruments under</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center"><b>Income on</b></td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left" style="border-bottom: 1px solid #000000"><b>ASC 815</b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" style="border-bottom: 1px solid #000000"><b>Derivative</b></td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency contract </div></td> <td> </td> <td align="left">$</td> <td align="right">7.2</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3.8</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left" valign="top">Other (income) expense, net</td> </tr> <!-- End Table Body --> </table> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Most of these net gains (losses) offset any recognized gains (losses) arising from the revaluation of the related intercompany loans during the same respective periods. </div> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent:8%">The following table shows the effect of the Company’s derivative instruments designated as cash flow and net investment hedging instruments in the Consolidated Statements of Income for the three and nine months ended September 30, 2010 and September 30, 2009 (in millions): </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="30%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Loss) Reclassified</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Loss) Recognized in</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>from Accumulated</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>OCI on Derivative</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain or</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>OCI into Income</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Effective Portion)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Reclassified</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the three months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>from Accumulated</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the three months</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>OCI into Income</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash Flow Hedging Relationships:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Cross currency swap (1) </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.4</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.9</td> <td nowrap="nowrap">)</td> <td> </td> <td colspan="3" nowrap="nowrap" align="left">Other (income) expense, net</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.2</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5.5</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="left">Cost of goods sold</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Net Investment Hedging Relationships:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(9.3</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" colspan="3">N/A</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(15.2</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.9</td> <td nowrap="nowrap">)</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.2</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <!-- End Table Body --> </table> </div> <div align="center"> <table style="font-size: 10pt; text-align: left" cellspacing="0" border="0" cellpadding="0" width="100%"> <!-- Begin Table Head --> <tr valign="bottom"> <td width="30%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> <td width="3%"> </td> <td width="1%"> </td> <td width="9%"> </td> <td width="1%"> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Amount of Gain or</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Loss) Reclassified</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Loss) Recognized in</b></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>from Accumulated</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>OCI on Derivative</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Location of Gain or</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>OCI into Income</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Effective Portion)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>(Loss) Reclassified</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>(Effective Portion)</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the nine months</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>from Accumulated</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the nine months</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>OCI into Income</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>ended September 30,</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>(Effective Portion)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2010</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2" style="border-bottom: 1px solid #000000"><b>2009</b></td> <td> </td> </tr> <!-- End Table Head --> <!-- Begin Table Body --> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Cash Flow Hedging Relationships:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Cross currency swap (1) </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.6</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">0.3</td> <td> </td> <td> </td> <td colspan="3" align="left" nowrap="nowrap">Other (income) expense, net</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1.1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(4.7</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="left">Cost of goods sold</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Derivatives in Net Investment Hedging Relationships:</b> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff; padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(6.2</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" colspan="3">N/A</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="padding-top: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(11.5</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">0.3</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1.1</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(0.5</td> <td nowrap="nowrap">)</td> </tr> <tr style="font-size: 1px"> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> <td> </td> <td nowrap="nowrap" colspan="2" align="right" style="border-top: 3px double #000000"> </td> <td> </td> </tr> <!-- End Table Body --> </table> </div> <table width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt; text-align: left"> <tr style="font-size: 6pt"> <td width="3%"> </td> <td width="1%"> </td> <td width="96"> </td> </tr> <tr valign="top"> <td nowrap="nowrap" align="left">(1)</td> <td> </td> <td>Ten year swap executed in 2003 </td> </tr> </table> <!-- Folio --> <!-- /Folio --> </div> <!-- PAGEBREAK --> <div style="font-family: 'Times New Roman',Times,serif; margin-left: 0in; "> <div align="left" style="font-size: 10pt; margin-top: 0pt; text-indent: 8%"> No ineffectiveness was experienced in the above noted cash flow hedges during the three and nine months ended September 30, 2010. The ineffective portion of the net investment hedges was not material during the three and nine months ended September 30, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company expects approximately $4.6 million (net of tax), of derivative losses included in AOCI at September 30, 2010, based on current market rates, will be reclassified into earnings within the next 12 months. The majority of this amount will vary due to fluctuations in foreign currency exchange rates. </div> </div>

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2010
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 13. Commitments and Contingencies: The Company accrues for contingencies related to litigation in accordance with ASC 450-20, “Loss Contingencies”, which requires the Company to assess contingencies to determine the degree of probability and range of possible loss. An estimated loss contingency is accrued in the Company’s consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because litigation is inherently unpredictable and unfavorable resolutions could occur, assessing contingencies is highly sensitive and requires judgments about future events. The Company regularly reviews contingencies to determine the adequacy of accruals. The amount of ultimate loss may differ from these estimates and further events may require the Company to increase the amounts it has accrued on any matter. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Popcorn Flavor Litigation We are party to a number of lawsuits and claims related primarily to flavoring supplied by us and by other third party suppliers, in most instances to manufacturers of butter flavored popcorn. A total of fourteen actions involving 227 claimants are currently pending against us and other flavor suppliers and related companies based on similar claims of alleged respiratory illness. In certain cases, plaintiffs are unable to demonstrate that they have suffered a compensable loss as a result of such exposure, or that injuries incurred in fact resulted from exposure to our flavor products. In most of the complaints, the damages sought by the plaintiffs are not alleged at the pleading stage and may not be specified until a much later time in the proceeding, if at all. During the nine months ended September 30, 2010, there have been three new actions filed involving eleven claimants and three actions involving five claimants have been settled for a net out-of-pocket amount which is not material to us after giving effect to insurance recovery, and three other cases have been consolidated with other pending cases. In addition, 56 claimants were voluntarily dismissed from continuing cases based on a determination that their claims lacked merit. At each balance sheet date, or more frequently as conditions warrant, we review the status of each pending claim, as well as our insurance coverage for such claims with due consideration given to potentially applicable deductibles, retentions and reservation of rights under insurance policies with respect to all these matters. The liabilities are recorded at management’s best estimate of the outcome of the lawsuits and claims, taking into consideration the facts and circumstances of the individual matters as well as past experience on similar matters. Amounts accrued are also based upon our historical experience with these claims, including claims which have been closed with no liability as well as claims settled to date. Settled claims, since the inception of the flavor-related claims, have not been material to us in any reporting period after giving effect to insurance recovery. At each balance sheet date, the key issues that management assesses are whether it is probable that a loss as to asserted or unasserted claims has been incurred and if so, whether the amount of loss can be reasonably estimated. We are not able to provide an amount or range of estimated loss in excess of the liability currently accrued at the balance sheet date as to asserted and unasserted claims because such estimate cannot reasonably be made. While the ultimate outcome of any litigation cannot be predicted, management believes that adequate provision has been made with respect to all known claims. Based on information presently available and in light of the merits of our defenses and the availability of insurance, we do not expect the outcome of the above cases, singly or in the aggregate, to have a material adverse effect on our financial condition, results of operations or liquidity. There can be no assurance that future events will not require us to increase the amount we have accrued for any matter or accrue for a matter that has not been previously accrued. We periodically assess our insurance coverage for all known claims, taking into account aggregate coverages by occurrence, limits of coverage, self-insured retentions and deductibles, historical claims experience and claims experience with insurers. We record the expected liability with respect to these claims in Other liabilities and expected recoveries from our insurance carrier group in Other assets. We believe that realization of the insurance receivable is probable due to the terms of the insurance policies and the payment experience to date of the carrier group as it relates to these claims. Patent Claims A complaint, captioned V. Mane Fils S.A. v. International Flavors and Fragrances, Inc. was filed in U.S. District Court for the District of New Jersey in May 2006, and alleges that the Company has and continues to infringe U.S. Patent Nos. 5,725,856 and 5,843,466, relating to a flavor ingredient that may provide a cooling effect. The Company answered the complaint by denying liability, asserting that both patents are invalid and various other defenses. In June 2008, plaintiff amended its complaint to add claims for violations of the Lanham Act, tortuous interference and unfair competition. The Company answered the amended complaint by denying all liability. In connection with the patent claims, the plaintiff seeks monetary damages, damages for alleged willful infringement, injunctive relief and fees, costs and interest. In connection with the additional claims, plaintiff also seeks monetary damages, punitive damages and fees and costs. In May 2010, following reexamination of the patents in question by the U.S. Patent Office, all of the patent claims, initially rejected in the reexamination proceeding, were reallowed. The Company and the plaintiff have each filed motions for summary judgment with respect to various claims. No trial date has been scheduled. The Company denies the allegations and will defend its position in Court. We analyze our liability on a regular basis and accrue for litigation loss contingencies when they are probable and estimable. During the second quarter 2010, we recorded a provision related to this case which is reflected in Other Liabilities. The Company is unable to reasonably estimate the amount or realistic range of potential loss above its recorded liability, if any, that might result if the outcome of this matter is unfavorable. Based on present information, the Company believes that its ultimate liability, if any, arising from this proceeding would not have a material adverse effect on its financial position or liquidity; however, due to the unpredictability regarding the litigation process, such claims, if ultimately resolved against us, could potentially have a material adverse effect on our cash flows or results of operations in a particular period. An adverse outcome could also potentially affect our ability to sell one or more flavor products to the extent the Court ultimately issued an injunction related to the patents. The Company disputes the allegations of wrongdoing, believes it has meritorious defenses and is vigorously defending all claims. Environmental Over the past approximately 20 years, various federal and state authorities and private parties have claimed that we are a Potentially Responsible Party (“PRP”) as a generator of waste materials for alleged pollution at a number of waste sites operated by third parties located principally in New Jersey and have sought to recover costs incurred and to be incurred to clean up the sites. We have been identified as a PRP at ten facilities operated by third parties at which investigation and/or remediation activities may be ongoing. We analyze our liability on a regular basis and accrue for environmental liabilities when they are probable and estimable. At September 30, 2010, we estimated our share of the total future costs for these sites to be less than $5 million. While joint and several liability is authorized under federal and state environmental laws, we believe that the amounts we have paid and anticipate paying in the future for clean-up costs and damages at all sites are not and will not be material to our financial condition, results of operations or liquidity. This conclusion is based upon, among other things, the involvement of other PRP’s at most sites, the status of the proceedings, including various settlement agreements and consent decrees, the extended time period over which payment will likely be made and an agreement reached in July 1994 with three of our liability insurers pursuant to which defense costs and indemnity amounts payable by us in respect of the sites will be shared by the insurers up to an agreed amount.