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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Dec. 31, 2010	Feb. 12, 2011	Jun. 30, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	INTERNATIONAL FLAVORS & FRAGRANCES INC
Entity Central Index Key	0000051253
Document Type	10-K
Document Period End Date	Dec. 31, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
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			$ 3,387,661,709
Entity Common Stock, Shares Outstanding		80,256,110

Consolidated Statement of Income - USD ($) $ in Thousands	12 Months Ended
Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Consolidated Statement of Income [Abstract]
Net sales	$ 2,622,862	$ 2,326,158	$ 2,389,372
Cost of goods sold	1,530,260	1,391,913	1,418,441
Research and development expenses	218,772	184,771	196,863
Selling and administrative expenses	447,392	390,885	400,723
Restructuring and other charges, net	10,077	18,301	18,212
Interest expense	48,709	61,818	74,008
Other expense (income), net	8,059	1,921	(2,797)
Total cost and expense	2,263,269	2,049,609	2,105,450
Income before taxes	359,593	276,549	283,922
Taxes on income	96,036	81,023	54,294
Net income	263,557	195,526	229,628
Other comprehensive income:
Foreign currency translation adjustments	(6,220)	81,240	(116,856)
Gains (losses) on derivatives qualifying as hedges	(1,442)	1,091	(1,989)
Pension and postretirement liability adjustment	3,285	(28,200)	(61,913)
Comprehensive income	$ 259,180	$ 249,657	$ 48,870
Net income per share - basic	$ 3.29	$ 2.48	$ 2.89
Net income per share - diluted	$ 3.26	$ 2.46	$ 2.86

Consolidated Balance Sheet - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheet - USD ($) $ in Thousands	Dec. 31, 2010	Dec. 31, 2009
Current Assets:
Cash and cash equivalents	$ 131,332	$ 80,135
Receivables:
Trade	458,128	454,528
Allowance for doubtful accounts	(6,324)	(10,263)
Inventories	531,675	444,977
Deferred income taxes	74,160	55,002
Prepaid expenses and other current assets	136,224	103,687
Total Current Assets	1,325,195	1,128,066
Property, plant and equipment, net	538,118	501,293
Goodwill	665,582	665,582
Other intangible assets, net	48,834	54,948
Deferred income taxes	122,800	129,720
Other assets	171,926	165,165
Total Assets	2,872,455	2,644,774
Current Liabilities:
Bank borrowings, overdrafts and current portion of long-term debt	133,899	76,780
Accounts payable	200,153	161,027
Dividends payable	21,657	19,786
Restructuring and other charges	3,977	18,914
Other current liabilities	301,265	207,947
Total Current Liabilities	660,951	484,454
Other Liabilities:
Long-term debt	787,668	934,749
Deferred gains	50,917	54,884
Retirement liabilities	221,985	240,950
Other liabilities	147,779	157,827
Total Other Liabilities	$ 1,208,349	$ 1,388,410
Commitments and Contingencies (Note 16)
Shareholders' Equity:
Common stock 12 1/2 cent par value; authorized 500,000,000 shares; issued 115,761,840 shares as of December 31, 2010 and 2009; and outstanding 80,210,365 and 79,157,393 shares as of December 31, 2010 and 2009	$ 14,470	$ 14,470
Capital in excess of par value	123,809	110,374
Retained earnings	2,519,706	2,339,205
Accumulated other comprehensive (loss) income:
Cumulative translation adjustment	(74,826)	(68,606)
Accumulated losses on derivatives qualifying as hedges	(4,183)	(2,741)
Pension and postretirement liability adjustment	(196,342)	(199,627)
Sum of common stock capital in excess of par value retained earnings cumulative translation adjustment accumulated losses on derivatives qualifying as hedges and pension and postretirement liability adjustment	2,382,634	2,193,075
Treasury stock, at cost - 35,551,475 and 36,604,447 shares as of December 31, 2010 and 2009	(1,383,212)	(1,424,072)
Total Shareholders' Equity	999,422	769,003
Noncontrolling interest	3,733	2,907
Total Shareholders' Equity including noncontrolling interest	1,003,155	771,910
Total Liabilities and Shareholders' Equity	$ 2,872,455	$ 2,644,774

Consolidated Statement of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Cash flows from operating activities:
Net income	$ 263,557	$ 195,526	$ 229,628
Adjustments to reconcile to net cash provided by operating activities
Depreciation and amortization	79,242	78,525	75,986
Deferred income taxes	(13,301)	(17,354)	7,261
Gain on disposal of assets	(3,681)	(2,324)	(2,160)
Equity based compensation	22,001	19,652	17,246
Changes in assets and liabilities:
Current receivables	(12,143)	(27,380)	(34,368)
Inventories	(86,250)	47,090	(19,736)
Current payables	116,817	56,676	(30,585)
Changes in other assets	(53,917)	(85,809)	(25,825)
Changes in other liabilities	2,811	27,035	3,166
Net cash provided by operations	315,136	291,637	220,613
Cash flows from investing activities:
Additions to property, plant and equipment	(106,301)	(66,819)	(85,395)
Proceeds from disposal of assets	1,657	1,784	2,848
Termination / maturity of net investment hedges	1,719	(13,604)
Purchase of investments	(3,858)	(2,249)	(7,198)
Net cash used in investing activities	(106,783)	(80,888)	(89,745)
Cash flows from financing activities:
Cash dividends paid to shareholders	(81,181)	(78,841)	(74,865)
Net change in bank borrowings and overdrafts	(103,190)	(37,292)	2,902
Net proceeds from long-term debt			139,167
Repayments of long-term debt		(201,102)	(139,364)
Proceeds from issuance of stock under stock plans	26,224	7,010	7,353
Excess tax benefits on share-based payments	1,403		133
Purchase of treasury stock		(1,967)	(29,995)
Net cash used in financing activities	(156,744)	(312,192)	(94,669)
Effect of exchange rate changes on cash and cash equivalents	(412)	3,111	(9,203)
Net change in cash and cash equivalents	51,197	(98,332)	26,996
Cash and cash equivalents at beginning of year	80,135	178,467	151,471
Cash and cash equivalents at end of year	131,332	80,135	178,467
Cash Paid For:
Interest	54,087	70,847	87,340
Taxes	$ 70,807	$ 58,055	$ 50,280

Consolidated Statement of Shareholders' Equity - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2010	Dec. 31, 2009	Dec. 31, 2008
Statement [Line Items]
Shares, beginning balance	36,604,447
Beginning balance	$ 771,910
Net income	263,557	$ 195,526	$ 229,628
Cumulative translation adjustment	(6,220)	81,240	(116,856)
Gains (losses) on derivatives qualifying as hedges	(1,442)	1,091	(1,989)
Pension liability and postretirement adjustment; net of tax: ($(34,159), $(8,876), $(2,429) for the year 2008, 2009 and 2010 respectively)	$ 3,285	$ (28,200)	(61,913)
Shares, ending balance	35,551,475	36,604,447
Ending balance	$ 1,003,155	$ 771,910
Common Stock [Member]
Statement [Line Items]
Beginning balance	14,470	14,470	14,470
Ending balance	14,470	14,470	14,470
Capital in excess of par value [Member]
Statement [Line Items]
Beginning balance	110,374	106,073	54,995
Stock options, value	(333)	(1,294)	(299)
Reacquired shares, value			45,000
Vested restricted stock units and awards, value	(11,544)	(13,026)	(10,003)
Stock based compensation, value	13,844	18,621	16,380
Other	11,468
Ending balance	123,809	110,374	106,073
Retained Earnings [Member]
Statement [Line Items]
Beginning balance	2,339,205	2,222,641	2,078,937
Net income	263,557	195,526	229,628
EITF 06-4 adoption adjustment; net of tax: $(5,529)			(10,022)
Cash dividends declared ($0.96, $1.00, $1.04 per share for the year 2008, 2009 and 2010 respectively)	(83,056)	(78,962)	(75,902)
Ending balance	2,519,706	2,339,205	2,222,641
Accumulated Other Comprehensive (Loss) Income [Member]
Statement [Line Items]
Beginning balance	(270,974)	(325,105)	(144,347)
Cumulative translation adjustment	(6,220)	81,240	(116,856)
Gains (losses) on derivatives qualifying as hedges	(1,442)	1,091	(1,989)
Pension liability and postretirement adjustment; net of tax: ($(34,159), $(8,876), $(2,429) for the year 2008, 2009 and 2010 respectively)	3,285	(28,200)	(61,913)
Ending balance	$ (275,351)	$ (270,974)	$ (325,105)
Treasury Stock [Member]
Statement [Line Items]
Shares, beginning balance	(36,604,447)	(37,100,778)	(34,766,612)
Beginning balance	$ (1,424,072)	$ (1,444,968)	$ (1,386,858)
Stock options, value	$ 30,461	$ 8,098	$ 6,295
Stock options, shares	779,317	207,435	157,376
Reacquired shares, value		$ (1,967)	$ (74,995)
Reacquired shares, shares		(75,000)	(2,762,058)
Vested restricted stock units and awards, value	$ 4,337	$ 9,190	$ 6,826
Vested restricted stock units and awards, shares	111,484	236,462	165,277
Stock based compensation, value	$ 6,062	$ 5,575	$ 3,764
Stock based compensation, shares	162,171	127,434	105,239
Shares, ending balance	(35,551,475)	(36,604,447)	(37,100,778)
Ending balance	$ (1,383,212)	$ (1,424,072)	$ (1,444,968)
Noncontrolling Interest [Member]
Statement [Line Items]
Beginning balance	2,907	7,531	9,162
Net income	826	(4,624)	(1,631)
Ending balance	$ 3,733	$ 2,907	$ 7,531

Nature of Operations and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2010

Nature of Operations and Summary of Significant Accounting Policies [Abstract]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Nature of Operations International Flavors & Fragrances Inc., and its subsidiaries (the “Registrant”, “IFF”, “the Company”, “we”, “us” and “our”) is a leading creator and manufacturer of flavor and fragrance compounds used to impart or improve flavor or fragrance in a wide variety of consumer products. Our products are sold principally to manufacturers of perfumes and cosmetics, hair and other personal care products, soaps and detergents, cleaning products, dairy, meat and other processed foods, beverages, snacks and savory foods, confectionery, sweet and baked goods, and pharmaceutical and oral care products.

Fiscal Year End We have historically operated on a 52/53 week fiscal year ending on the Friday closest to the last day of the quarter. For ease of presentation, December 31 is utilized consistently throughout this report and these financial statements and notes to represent the period-end date.

Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts and accompanying disclosures. These estimates are based on management’s best knowledge of current events and actions we may undertake in the future. Actual results may ultimately differ from estimates.

Principles of Consolidation The consolidated financial statements include our accounts and those of our subsidiaries. Significant intercompany balances and transactions have been eliminated. To the extent a subsidiary is not wholly-owned, any related noncontrolling interest is included as a separate component of Shareholders’ Equity. Any applicable expense (income) attributable to the noncontrolling interest is included in Other expense (income), net in the accompanying Consolidated Statement of Income due to its immateriality and, as such, is not included separately in comprehensive income.

Revenue Recognition We recognize revenue when the earnings process is complete. This generally occurs when (i) products are shipped to the customer in accordance with the terms of sale, (ii) title and risk of loss have been transferred and (iii) collection is reasonably assured. Net sales are reduced, at the time revenue is recognized, by accruing for applicable discounts, rebates and sales allowances based on historical experience. Related accruals are included in accrued liabilities.

Foreign Currency Translation We translate the assets and liabilities of non-U.S. subsidiaries into U.S. dollars at year-end exchange rates. Income and expense items are translated at average exchange rates during the year. Cumulative translation adjustments are shown as a separate component of Shareholders’ Equity.

Research and Development All research and development costs are expensed as incurred and are presented net of applicable R&D credits.

Cash Equivalents Cash equivalents include highly liquid investments with maturities of three months or less at date of purchase.

Inventories Inventories are stated at the lower of cost (on weighted average basis) or market. Our inventories consisted of the following:


	December 31,
(DOLLARS IN THOUSANDS)	2010		2009
Raw materials	$	270,191	$	228,999
Work in process		6,211		9,173
Finished goods		255,273		206,805

Total	$	531,675	$	444,977

Property, Plant and Equipment Property, plant and equipment are recorded at cost. Depreciation is calculated on a straight-line basis, principally over the following estimated useful lives: buildings and improvements, 10 to 40 years; machinery and equipment, 3 to 10 years; information technology hardware and software, 3 to 7 years; and leasehold improvements which are included in buildings and improvements, the estimated life of the improvements or the remaining term of the lease, whichever is shorter.

We review our long-lived assets for impairment when events or changes in business conditions indicate that their full carrying value may not be recovered. An estimate of undiscounted future cash flows produced by an asset or group of assets is compared to the carrying value to determine whether impairment exists. If assets are determined to be impaired, the loss is measured based on an estimate of fair value using various valuation techniques, including a discounted estimate of future cash flows.

Goodwill and Other Intangible Assets Goodwill represents the difference between the total purchase price and the fair value of identifiable assets and liabilities acquired in business acquisitions.

In assessing the potential for impairment of goodwill, management uses the most current actual and forecasted operating data available and current market based assumptions in accordance with the criteria in ASC 350. We identified two reporting units, the Flavors reporting unit and the Fragrances reporting unit. These reporting units were determined based on the level at which the performance is measured and reviewed. We perform a goodwill impairment test on an annual basis or more frequently in certain circumstances. We utilize the two-step approach, by assessing the fair value of our reporting units based on discounted cash flows. In addition, we utilize external market data of comparable companies to assess the reasonableness of the cash flows’ indicated values. There have been no significant changes to the methodologies used for valuing goodwill since the prior year. We deem goodwill to be impaired if the carrying amount of the reporting unit exceeds the estimated fair value. We completed our annual goodwill impairment test as of November 30, 2010, which indicated no impairment of goodwill, as the estimated fair values substantially exceeded the carrying values of each of our reporting units. In addition, there were no triggering events which required asset impairment reviews and the undiscounted cash flows associated with our other long-lived intangible assets.

Other intangible assets include patents, trademarks and other intellectual property valued at acquisition, and amortized on a straight-line basis over periods ranging from 6 to 20 years.

Income Taxes Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial reporting purposes and such amounts recognized for tax purposes, based on tax laws as currently enacted. Additional taxes which would result from distributions by subsidiary companies to the parent are provided to the extent anticipated. No provision is made for additional taxes on undistributed earnings of subsidiary companies that are intended to be indefinitely invested in such subsidiaries. No income tax benefit is attributed to the currency translation component of Accumulated other comprehensive income (“AOCI”). A valuation allowance is established for net deferred tax assets if, based on the weight of the available evidence, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

We recorded a liability for uncertain tax positions where we believe that a tax position is more likely than not to be sustained based on our best judgment of the amount we would ultimately pay.

Retirement Benefits Current service costs of retirement plans and postretirement health care and life insurance benefits are accrued currently. Prior service costs resulting from plan improvements are amortized over periods ranging from 10 to 20 years.

Financial Instruments We use derivative financial instruments to manage interest and foreign currency exposures. The gain or loss on the hedging instrument is recorded in earnings at the same time as the transaction being hedged is recorded in earnings. The associated asset or liability related to the open hedge instrument is recorded in Current assets or Current liabilities, as applicable.

We record all derivative instruments on the balance sheet at fair value. Changes in a derivative’s fair value are recognized in earnings unless specific hedge criteria are met. If the derivative is designated as a fair value hedge, the changes in the fair value of the derivative and of the hedged item attributable to the hedged risk are recognized in the consolidated statement of income. If the derivative is designated as a cash flow hedge, the effective portions of changes in the fair value of the derivative are recorded in AOCI and are subsequently recognized in the consolidated statement of income when the hedged item affects earnings. Ineffective portions of changes in the fair value of cash flow hedges, if any, are recognized as a charge or credit to earnings.

Software Costs We capitalize direct internal and external development costs for certain significant projects associated with internal-use software and amortize these costs over 7 years. Neither preliminary evaluation costs nor costs associated with the software after implementation are capitalized. Costs related to projects that are not significant are expensed as incurred.

Shipping and Handling Costs Net sales include shipping and handling charges billed to customers. Cost of goods sold includes all costs incurred in connection with shipping and handling.

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


	Number of Shares
(SHARES IN THOUSANDS)	2010		2009		2008
Basic		79,495		78,403		79,032
Assumed dilution under stock plans		945		691		691

Diluted		80,440		79,094		79,723

Net income used in the computation of net income per share is unaffected by the assumed issuance of stock under our stock plans.

There were no stock options and stock settled appreciation rights (“SSAR’s”) outstanding that were excluded from the computation of diluted net income per share as of December 31, 2010. Stock options and SSAR’s to purchase 283,000 and 798,000 shares were outstanding at December 31, 2009 and 2008, respectively, but not included in the computation of diluted net income per share because the exercise prices were greater than the average market price of the common shares in the respective years.

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 approximately $0.01 per share for each year and the number of PRS outstanding as of December 31, 2010, 2009 and 2008 was immaterial (approximately 0.6% of the total number of common shares outstanding). Net income allocated to such PRS during 2010, 2009 and 2008 was approximately $1.7 million, $1.3 million and $1.4 million, respectively. Diluted shares and net income per share for the year ended December 31, 2008 have been adjusted to reflect authoritative guidance adopted in 2009.

Stock-Based Compensation We have stock-based compensation plans which are described more fully in Note 11 to the Consolidated Financial Statements. We follow the provisions under Accounting Standards Codification 718 “Compensation — Stock Compensation” (“ASC 718”) which requires measurement of compensation cost of all share-based awards at fair value on the date of grant and recognition of compensation expense over the service periods for awards expected to vest. All share-based awards granted subsequent to January 1, 2006 are based on the grant date fair value estimated in accordance with the provisions of ASC 718. The cost of such share-based awards is principally recognized on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures.

New Accounting Standards

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 also requires 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 year ended December 31, 2010.

Reclassifications and Revisions Certain reclassifications have been made to the prior years’ financial statements to conform to the 2010 presentation. In addition, as a result of the adoption of authoritative guidance in 2009 related to the “noncontrolling interests”, we reclassified Noncontrolling interest of $7.5 million from Other liabilities to a separate component of Shareholders’ Equity in the Consolidated Balance Sheet. The Company also revised its method of reporting R&D credits to be properly reflected as a reduction in R&D expense versus a reduction in income tax expense. The revision impacted the first nine months of 2009 and the year ended December 31, 2008. The revisions had no impact on net income in any period. The associated amount for 2008 was $3.4 million.

Reclassifications, including their impact, on the Consolidated Statement of Income for the years ended December 31, 2009 and December 31, 2008 were as follows: Cost of goods sold increased $0.9 million and decreased $0.3 million, respectively; R&D decreased $9.1 million and $12.4 million, respectively; and Selling and administrative increased $8.2 million and $12.7 million, respectively.

Income Taxes

12 Months Ended

Dec. 31, 2010

Income Taxes [Abstract]

INCOME TAXES

NOTE 9. INCOME TAXES

Earnings before income taxes consisted of the following:


(DOLLARS IN THOUSANDS)	2010			2009			2008
U.S. loss before taxes	$	(82,112	)	$	(80,345	)	$	(90,819	)
Foreign income before taxes		441,705			356,894			374,741

Total income before taxes	$	359,593		$	276,549		$	283,922

The income tax provision consisted of the following:


(DOLLARS IN THOUSANDS)	2010			2009			2008
Current
Federal	$	5,379		$	3,829		$	(8,363	)
State and local		507			413			(94	)
Foreign		103,451			94,135			55,490

		109,337			98,377			47,033


Deferred
Federal		(21,865	)		(13,817	)		1,634
State and local		2,310			6,845			(1,766	)
Foreign		6,254			(10,382	)		7,393

		(13,301	)		(17,354	)		7,261

Total income taxes	$	96,036		$	81,023		$	54,294

A reconciliation between the U.S. Federal statutory income tax rate to our actual effective tax rate is as follows:


	2010			2009			2008
Statutory tax rate		35.0	%		35.0	%		35.0	%
Difference in effective tax rate on foreign earnings and remittances		(8.1	)		(8.0	)		(15.0	)
State and local taxes		0.6			1.7			(0.7	)
Other, net		(0.8	)		0.6	⁽¹⁾		(0.2	)

Effective tax rate		26.7	%		29.3	%		19.1	%


(1)		The 2009 results include $6 million of tax expense due to the recognition of out-of-period tax adjustments arising from periods 2006 and prior. The Company did not adjust the prior periods as it concluded that such adjustments were not material to the prior periods’ consolidated financial statements.

Our effective tax rate reflects the benefit from having significant operations outside the U.S. that are taxed at rates that are lower than the U.S. federal rate of 35%. The 2010 and 2009 effective tax rates were also favorably impacted by the reversals of previously established tax accruals of $6 million and $2 million, respectively.

The components of the deferred tax assets and liabilities included on the balance sheet are as follows:


	December 31,
(DOLLARS IN THOUSANDS)	2010			2009
ASSETS
Employee and retiree benefits	$	126,009		$	116,471
Credit and net operating loss carryforwards		190,690			209,161
Property, plant and equipment		4,152			2,559
Trademarks and other		96,373			29,508
Amortizable R&D expenses		22,278			—
Other, net		27,690			16,302

Gross deferred tax assets		467,192			374,001
Valuation allowance		(288,182	)		(212,705	)

Total deferred tax assets		179,010			161,296
LIABILITIES
Trademarks and other		—			—

Total net deferred tax assets	$	179,010		$	161,296

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


(DOLLARS IN THOUSANDS)	2010			2009			2008
Balance of unrecognized tax benefits at beginning of year	$	64,673		$	57,616		$	80,645
Gross amount of increases in unrecognized tax benefits as a result of positions taken during a prior year		2			—			4,265
Gross amount of decreases in unrecognized tax benefits as a result of positions taken during a prior year		—			(26	)		(2,200	)
Gross amount of increases in unrecognized tax benefits as a result of positions taken during the current year		4,706			8,827			8,394
The amounts of decreases in unrecognized benefits relating to settlements with taxing authorities		(4,945	)		(509	)		(31,877	)
Reduction in unrecognized tax benefits due to the lapse of applicable statute of limitation		(508	)		(1,235	)		(1,611	)

Balance of unrecognized tax benefits at end of year	$	63,928		$	64,673		$	57,616

At December 31, 2010, 2009 and 2008, there are $64 million, $65 million and $57 million, respectively, of unrecognized tax benefits that if recognized, would affect the annual effective tax rate.

We have consistently recognized interest and penalties related to unrecognized tax benefits as a component of income tax expense. For the years ended December 31, 2010, 2009 and 2008 we recognized (reversed) $1 million, $2 million and $(1) million, respectively in interest and penalties. At December 31, 2010, 2009 and 2008, we had accrued $11 million, $10 million and $8 million, respectively, of interest and penalties classified as Other liabilities.

Net operating loss carryforwards were $168 million and $173 million at December 31, 2010 and 2009, respectively. If unused, $4 million will expire between 2011 and 2030. The remainder, totaling $164 million, may be carried forward indefinitely. Tax credit carryforwards were $23 million and $36 million at December 31, 2010 and December 31, 2009, respectively. If unused, the credit carryforwards will expire between 2011 and 2030.

The U.S. consolidated group consistently generates taxable income after the inclusion of foreign dividends. As such, the Company is not in a federal net operating loss position. This tax posture is such that IFF and its U.S. subsidiaries will realize tax benefits from the reversal of temporary differences and the utilization of its federal tax credits before the expiration of the applicable carryforward periods.

The majority of states where IFF and subsidiaries file income tax returns allow a 100% foreign dividend exclusion, effectively converting the domestic companies’ reversing temporary differences into net operating losses. As there is significant doubt with respect to realizability of these net operating losses, we have established a full valuation allowance against these deferred tax assets. There are also states that adopt a different approach with respect to the foreign dividend exclusion, providing limitations on foreign dividend deductibility. In these jurisdictions, IFF realizes tax benefits from reversing temporary differences, and no valuation allowance is necessary.

The Company has not factored any future trends, other than inflation, in its taxable income projections. The corresponding taxable income is sufficient to realize $11 million in deferred tax assets as of December 31, 2010.

Of the $191 million deferred tax asset for net operating loss carryforwards and credits at December 31, 2010, we consider it unlikely that a portion of the tax benefit will be realized. Accordingly, a valuation allowance of $160 million of net operating loss carryforwards and $8 million of tax credits has been established against these deferred tax assets, respectively. In addition, due to realizability concerns, we established a valuation allowance against certain other net deferred tax assets of $120 million.

Tax benefits credited to Shareholders’ equity totaled $3 million and less than $1 million for 2010 and 2009, respectively.

U.S. income taxes and foreign withholding taxes associated with the repatriation of earnings of foreign subsidiaries were not provided on a cumulative total of $799 million of undistributed earnings of foreign subsidiaries. We intend to reinvest these earnings indefinitely in our foreign subsidiaries.

The Company has several tax audits and/or litigation in process and of these, the most significant is related to uncertain tax positions within our European operations. While the Company believes its position in regard to these matters is in accordance with applicable legislation, the local tax authority is challenging the Company’s position. The Company has recorded a liability for unrecognized tax benefits based on management’s best estimate of the potential outcomes of these cases. There could be future events or changes in facts or circumstances that could require us to further increase our liability for unrecognized tax benefits and/or possibly have a material impact on our financial condition, reported results or liquidity.

In addition, we have several other tax audits in process and have open tax years with various 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 impact on our financial position, reported results or liquidity.

Stock Compensation Plans

12 Months Ended

Dec. 31, 2010

Stock Compensation Plans [Abstract]

STOCK COMPENSATION PLANS

NOTE 11. STOCK COMPENSATION PLANS

We have various equity plans under which our officers, senior management, other key employees and directors may be granted options to purchase IFF common stock or other forms of equity-based awards. Beginning in 2004, we granted Restricted Stock Units (“RSU’s”) as the principal element of our equity compensation for all eligible U.S. based employees and a majority of eligible overseas employees. Vesting of the RSU’s is solely time based; the vesting period is primarily three years from date of grant. For a small group of employees, primarily overseas, we granted stock options prior to 2008.

The cost of all employee share based awards are principally recognized on a straight-line attribution basis over their respective vesting periods, net of estimated forfeitures. Total stock-based compensation expense included in our Consolidated Statement of Income for 2010, 2009 and 2008 was $22 million ($14 net of tax), $20 million ($13 net of tax) and $17 million ($11 net of tax), respectively.

The shareholders of the Company approved the Company’s 2010 Stock Award and Incentive Plan (the “2010 Plan”) at the Annual Meeting of Shareholders held on April 27, 2010. The 2010 Plan was approved by the Company’s Board of Directors (the “Board”) on February 2, 2010, subject to shareholder approval. The 2010 Plan replaces the Company’s 2000 Stock Award and Incentive Plan and the 2000 Supplemental Stock Award Plan (the “2000 Plans”) and will provide the source for future deferrals of cash into deferred stock under the Company’s Deferred Compensation Plan (with the Deferred Compensation Plan being deemed a subplan under the 2010 Plan for the sole purpose of funding deferrals under the IFF Share Fund).

Under the 2010 Plan, a total of 2,749,669 shares are authorized for issuance, including 749,669 shares remaining available under a previous plan that were rolled into the 2010 Plan. At December 31, 2010, 2,997,442 shares were subject to outstanding awards and 2,309,171 shares remained available for future awards under all of the Company’s equity award plans, including the 2010 Plan (excluding shares not yet issued under open cycles of the Company’s Long-Term Incentive Plan).

In 2006, our Board approved a Long-Term Incentive Plan (“LTIP”) for senior management under our 2000 SAIP for the years 2006-2008 (“Cycle VI”). Under Cycle VI, each participant has a range of awards that would be paid out 50% in cash and 50% in IFF stock at the end of the three-year cycle. The portion that would be paid in equity would not be determined until the end of the LTIP cycle. Because the number of shares is not fixed at the time of the award we account for these awards as liability based awards and recognize compensation expense on a straight-line basis over the three-year period based on the fair value of our stock at the end of each year and the expected payout based on the percent of performance achieved to date. Cycle VI concluded at the end of 2008 and an aggregate 116,247 shares of common stock were issued in February 2009.

Beginning with the LTIP 2007-2009 cycle and thereafter, the targeted payout is 50% cash and 50% IFF stock at the end of the three-year cycle and provides for segmentation in which one-fourth of the award vests during each twelve-month period, with the final one-fourth segment vesting over the full three-year period. These awards are earned based on the achievement of defined EPS targets and our performance ranking of total shareholder return as a percentile of the S&P 500. When the award is granted, 50% of the target dollar value of the award is converted to a number of “notional” shares based on the closing price at the beginning of the cycle. For those shares whose payout is based on shareholder return as a percentile of the S&P 500, compensation expense is recognized using a graded-vesting attribution method, while compensation expense for the remainder of the performance shares (e.g., EPS targets) is recognized on a straight-line basis over the vesting period based on the probable outcome of the performance condition. The 2007-2009 cycle (Cycle VII) concluded at the end of 2009 and an aggregate 53,378 shares of our common stock were issued in February 2010.

On February 1, 2010, the Compensation Committee of the Company’s Board of Directors approved a one-year supplemental performance metric for the Company’s LTIP 2008-2010 cycle (Cycle VIII) which is based on improvement in operating profit margin measured over the fiscal year 2010 period as compared to 2009. The 2008-2010 cycle concluded at the end of 2010 and an aggregate 81,943 shares of our common stock will be issued in March 2011.

In 2006, our Board approved the Equity Choice Program (the “Program”) for senior management. This program continues under our 2010 SAIP. Eligible employees can choose from among three equity alternatives and will be granted such equity awards up to certain dollar awards depending on the participant’s grade level. A participant may choose among (1) Stock settled appreciation rights (“SSAR’s”), (2) RSU’s or (3) Purchase restricted stock (“PRS”).

Stock Options and SSAR’s

Stock options granted vest in periods ranging from one to three years and have a maximum term of ten years. SSAR’s granted become exercisable on the third anniversary of the grant date and have a maximum term of seven years. We awarded 196,652, 236,986 and 299,307 SSAR’s during 2010, 2009 and 2008, respectively. No stock options were granted in 2010, 2009 and 2008.

We use the Binomial lattice-pricing as our valuation model for estimating the fair value of options granted. In applying the Binomial model, we utilize historical information to estimate expected term and forfeitures within the model. The expected term of an option is based on historical employee exercise behavior, vesting terms and a contractual life of primarily ten years for options and seven years for SSAR’s. The risk-free interest rate for periods within the expected term of the award is based on the U.S. Treasury yield curve in effect at the time of grant. Expected volatility is based on an average of implied and historical volatility of the price of our common stock over the calculated expected term. We anticipate paying cash dividends in the future and therefore use an expected dividend yield in the valuation model; the cash dividend in effect at the time of grant was employed in this calculation.

Principal assumptions used in applying the Binomial model in 2010, 2009 and 2008 were:


	2010			2009			2008
Weighted average fair value of SSAR’s granted during the period	$	10.41		$	7.08		$	9.93
Assumptions:
Risk-free interest rate		2.2	%		2.5	%		3.2	%
Expected volatility		29.8	%		30.9	%		25.7	%
Expected dividend yield		2.2	%		3.2	%		2.2	%
Expected life, in years		5			5			5
Termination rate		1.09	%		0.91	%		0.46	%
Exercise multiple		1.38			1.46			1.52

Stock option and SSAR activity was as follows:


				Weighted		Options/
	Shares Subject to			Average Exercise		SSAR’s
(SHARE AMOUNTS IN THOUSANDS)	Options/SSAR’s			Price		Exercisable
Balance at December 31, 2009		2,228		$	35.27		1,763
Granted		197			44.92
Exercised		(939	)		33.82
Cancelled		(46	)		37.11

Balance at December 31, 2010		1,440		$	37.46		883

The weighted average exercise price of our options and SSAR’s exercisable at December 31, 2010, 2009 and 2008 were $36.14, $34.20, and $33.48, respectively. The following tables summarize information concerning currently outstanding and exercisable options and SSAR’s.

Stock options and SSAR’s outstanding at December 31, 2010 were as follows:


			Weighted Average
	Number		Remaining		Weighted		Aggregate
	Outstanding		Contractual Life (in		Average		Intrinsic Value
Price Range	(in thousands)		years)		Exercise Price		(in thousands)
$26-$30		410		3.7	$	29.77
$31-$35		344		2.3		33.31
$36-$40		130		4.0		37.01
$41-$45		397		5.4		43.54
$46-$55		159		5.4		51.47

		1,440			$	37.46	$	26,104

Stock options and SSAR’s exercisable as of December 31, 2010 were as follows:


			Weighted Average
	Number		Remaining		Weighted		Aggregate
	Outstanding		Contractual Life (in		Average		Intrinsic Value
Price Range	(in thousands)		years)		Exercise Price		(in thousands)
$26-$30		257		1.8	$	29.35
$31-$35		344		2.3		33.31
$36-$40		95		3.4		37.36
$41-$45		28		4.1		42.12
$46-$55		159		5.4		51.47

		883			$	36.14	$	17,162

The total intrinsic value of options exercised during 2010, 2009 and 2008 totaled $14 million, $1 million and $2 million, respectively.

As of December 31, 2010, there was $2.1 million of total unrecognized compensation cost related to non-vested stock options and SSAR awards granted; such cost is expected to be recognized over a weighted average period of 1.8 years.

Restricted Stock Units

We have granted RSU’s to eligible employees and directors. Such RSU’s are subject to forfeiture if certain employment conditions are not met. RSU’s principally vest 100% at the end of three years and contain no performance criteria provisions. An RSU’s fair value is calculated based on the market price of our stock at date of grant, with an adjustment to reflect the fact that such awards do not participate in dividend rights. The aggregate fair value is amortized to expense ratably over the vesting period.

RSU activity was as follows:


				Weighted-Average
	Number of			Grant Date Fair
(SHARE AMOUNTS IN THOUSANDS)	Shares			Value Per Share
Balance at December 31, 2009		978		$	37.42
Granted		305			48.09
Vested		(209	)		48.41
Forfeited		(45	)		37.44

Balance at December 31, 2010		1,029		$	40.29

The total fair value of RSU’s which vested during the year ended December 31, 2010 was $9.9 million.

As of December 31, 2010, there was $15.8 million of total unrecognized compensation cost related to non-vested RSU awards granted under the equity incentive plans; such cost is expected to be recognized over a weighted average period of 1.7 years.

Purchased Restricted Stock

PRS provides for eligible employees to purchase restricted shares of IFF stock at 50% of the fair market value on the grant date of the award. The shares generally vest on the third anniversary of the grant date, are subject to employment and other specified conditions and pay dividends if and when paid by us. Holders of PRS have, in most instances, all of the rights of stockholders, except that they may not sell, assign, pledge or otherwise encumber such shares. RSU’s provide no such rights. We issued 213,714 shares of PRS in 2010 for an aggregate purchase price of $4.8 million covering 106,857 purchased shares, 218,134 shares of PRS in 2009 for $3 million covering 109,067 purchased shares and 102,812 shares in 2008 for $2 million covering 51,406 purchased shares.

PRS activity was as follows:


				Weighted-Average
	Number of			Grant Date Fair
(SHARE AMOUNTS IN THOUSANDS)	Shares			Value Per Share
Balance at December 31, 2009		498		$	15.44
Granted		214			22.54
Vested		(181	)		25.89
Forfeited		(6	)		15.24

Balance at December 31, 2010		525		$	19.32

The total fair value of PRS’s which vested during the year ended December 31, 2010 was $3.8 million.

As of December 31, 2010, there was $3.7 million of total unrecognized compensation cost related to non-vested PRS awards granted under the equity incentive plans; such cost is expected to be recognized over a weighted average period of 1.7 years.

Postretirement Benefits

12 Months Ended

Dec. 31, 2010

Postretirement Benefits [Abstract]

POSTRETIREMENT BENEFITS

NOTE 13. POSTRETIREMENT BENEFITS

We have pension and/or other retirement benefit plans covering substantially all employees. Pension benefits are generally based on years of service and on compensation during the final years of employment. Plan assets consist primarily of equity securities and corporate and government fixed income securities. Substantially all pension benefit costs are funded as accrued; such funding is limited, where applicable, to amounts deductible for income tax purposes. Certain other retirement benefits are provided by general corporate assets.

We sponsor a qualified defined contribution plan covering substantially all U.S. employees. Under this plan, we match 100% of participants’ contributions up to 4% of compensation and 75% of participants’ contributions from over 4% to 8%. Employees that are still eligible to accrue benefits under the defined benefit plan are limited to a 50% match up to 6% of the participants’ compensation.

In addition to pension benefits, certain health care and life insurance benefits are provided to qualifying United States employees upon retirement from IFF. Such coverage is provided through insurance plans with premiums based on benefits paid. We do not generally provide health care or life insurance coverage for retired employees of foreign subsidiaries; such benefits are provided in most foreign countries by government-sponsored plans, and the cost of these programs is not significant to us.

The plan assets and benefit obligations of our defined benefit pension plans are measured at December 31 of each year.


	U.S. Plans									Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2010			2009			2008			2010			2009			2008
Components of net periodic benefit cost
Service cost for benefits earned	$	3,781		$	4,080		$	4,569		$	9,804		$	8,678		$	10,266
Interest cost on projected benefit obligation		24,191			23,685			23,883			32,954			30,978			36,270
Expected return on plan assets		(24,146	)		(24,616	)		(25,101	)		(41,569	)		(40,589	)		(51,256	)
Net amortization and deferrals		7,441			6,413			4,618			5,214			3,004			3,020
Settlement and curtailment		—			—			—			182			440			—
Special termination benefits		—			—			—			178			—			—

Expense		11,267			9,562			7,969			6,763			2,511			(1,700	)
Defined contribution and other retirement plans		7,169			6,255			6,220			4,459			4,135			4,367

Total pension expense	$	18,436		$	15,817		$	14,189		$	11,222		$	6,646		$	2,667


Changes in plan assets and benefit obligations recognized in OCI
Net actuarial (gain) loss	$	10,891								$	5,026
Actuarial loss		(6,951	)								(5,254	)
Prior service cost		(490	)								(142	)
Currency translation adjustment		—									(5,191	)

Total recognized in OCI (before tax effects)	$	3,450								$	(5,561	)


	Postretirement Benefits
(DOLLARS IN THOUSANDS)	2010			2009			2008
Components of net periodic benefit cost
Service cost for benefits earned	$	1,378		$	1,644		$	2,694
Interest cost on projected benefit obligation		6,468			6,166			7,079
Net amortization and deferrals		(2,232	)		(2,012	)		(723	)

Expense	$	5,614		$	5,798		$	9,050


Changes in plan assets and benefit obligations recognized in OCI
Net actuarial (gain) loss	$	(5,426	)
Actuarial loss		(2,487	)
Prior service credit		4,719

Total recognized in OCI (before tax effects)	$	(3,194	)

The amounts expected to be recognized in net periodic cost in 2011 are:


					Postretirement
(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans		Benefits
Loss recognition	$	10,773	$	5,084	$	2,032
Prior service cost recognition		515		143		(4,719	)


Weighted-average actuarial	U.S. Plans									Non-U.S. Plans
assumption used to determine expense	2010			2009			2008			2010			2009			2008
Discount rate		6.10	%		6.00	%		6.10	%		5.66	%		6.11	%		5.78	%
Expected return on plan assets		8.25	%		8.25	%		8.25	%		6.63	%		6.76	%		7.02	%
Rate of compensation increase		3.25	%		3.50	%		4.00	%		3.00	%		2.56	%		2.98	%

Changes in the postretirement benefit obligation and plan assets, as applicable, are detailed in the following table:


	U.S. Plans						Non-U.S. Plans						Postretirement Benefits
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009			2010			2009
Benefit obligation at beginning of year	$	406,901		$	404,902		$	621,259		$	499,004		$	110,512		$	106,166
Service cost for benefits earned		3,781			4,080			9,804			8,678			1,378			1,644
Interest cost on projected benefit obligation		24,191			23,685			32,954			30,978			6,468			6,166
Actuarial (gain) loss		28,018			(4,316	)		16,432			79,704			(5,426	)		1,170
Adjustments for expense/tax contained in service cost		—			—			(2,153	)		(1,694	)		—			—
Plan participants’ contributions		—			—			2,256			2,120			944			927
Benefits paid		(22,245	)		(21,450	)		(26,549	)		(24,761	)		(5,166	)		(5,561	)
Curtailments / settlements		—			—			(3,325	)		(1,537	)		—			—
Special terminaion benefits		—			—			178			—			—			—
Translation adjustments		—			—			(25,804	)		28,767			—			—

Benefit obligation at end of year	$	440,646		$	406,901		$	625,052		$	621,259		$	108,710		$	110,512


Fair value of plan assets at beginning of year	$	304,890		$	248,151		$	660,176		$	574,886
Actual return on plan assets		41,273			42,174			48,553			60,992
Employer contributions		23,166			36,015			17,827			15,848
Participants’ contributions		—			—			2,256			2,120
Benefits paid		(22,245	)		(21,450	)		(26,549	)		(24,761	)
Settlements		—			—			(1,056	)		(1,537	)
Translation adjustments		—			—			(29,648	)		32,628

Fair value of plan assets at end of year	$	347,084		$	304,890		$	671,559		$	660,176

Funded status at end of year	$	(93,562	)	$	(102,011	)	$	46,507		$	38,917


	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009
Amounts recognized in the balance sheet:
Non-current assets	$	—		$	—		$	66,274		$	61,881
Current liabilities		(3,291	)		(3,175	)		(608	)		(636	)
Non-current liabilities		(90,271	)		(98,836	)		(19,159	)		(22,328	)

Net amount recognized	$	(93,562	)	$	(102,011	)	$	46,507		$	38,917


	U.S. Plans				Non-U.S. Plans				Postretirement Benefits
(DOLLARS IN THOUSANDS)	2010		2009		2010		2009		2010			2009
Amounts Recognized in AOCI consist of:
Net actuarial loss	$	129,916	$	125,975	$	155,305	$	160,738	$	30,217		$	38,130
Prior service cost (credit)		2,045		2,536		17		145		(29,159	)		(33,878	)

Total AOCI (before tax effects)	$	131,961	$	128,511	$	155,322	$	160,883	$	1,058		$	4,252


	U.S. Plans						Non-U.S. Plans
(DOLLARS IN THOUSANDS)	2010			2009			2010			2009
Accumulated Benefit Obligation — end of year	$	435,123		$	402,130		$	598,025		$	589,317


Information for Pension Plans with an ABO in excess of Plan Assets:
Projected benefit obligation	$	440,646		$	406,901		$	23,840		$	46,943
Accumulated benefit obligation		435,123			402,130			21,852			41,636
Fair value of plan assets		347,084			304,890			4,073			23,979

Weighted-average assumptions used to determine obligations at December 31
Discount rate		5.60	%		6.10	%		5.37	%		5.66	%
Rate of compensation increase		3.25	%		3.25	%		2.66	%		3.00	%


	U.S Plans						Non-U.S. Plans
Percentage of assets invested in:	2010			2009			2010			2009
Equities		64	%		60	%		31	%		30	%
Fixed income		36	%		40	%		54	%		56	%
Property		n/a			n/a			11	%		12	%
Other investments		n/a			n/a			4	%		2	%


					Postretirement
(DOLLARS IN THOUSANDS)	U.S. Plans		Non-U.S. Plans		Benefits
Estimated Future Benefit Payments
2011	$	23,460	$	24,773	$	5,982
2012		25,086		27,450		6,269
2013		26,153		27,600		6,713
2014		27,407		27,533		7,133
2015		28,484		28,459		7,434
2016-2020		158,946		157,386		41,213

Contributions
Required Company Contributions in the Following Year (2011)	$	3,381	$	22,168	$	5,982

We consider a number of factors in determining and selecting assumptions for the overall expected long-term rate of return on plan assets. We consider the historical long-term return experience of our assets, the current and expected allocation of our plan assets and expected long-term rates of return. We derive these expected long-term rates of return with the assistance of our investment advisors. We base our expected allocation of plan assets on a diversified portfolio consisting of domestic and international equity securities, fixed income, real estate and alternative asset classes. The asset allocation is monitored on an ongoing basis.

We consider a variety of factors in determining and selecting our assumptions for the discount rate at December 31. For the U.S. plans, the discount rate was based on the internal rate of return for a portfolio of Moody’s Aaa, Aa and Merrill Lynch AAA-AA high quality bonds with maturities that are consistent with the projected future benefit payment obligations of the plan. The rate of compensation increase for all plans and the medical cost trend rate for the applicable U.S. plans are based on plan experience.

With respect to the U.S. plans, the expected return on plan assets was determined based on an asset allocation model using the current target allocation, real rates of return by asset class and an anticipated inflation rate. The target asset allocation consists of approximately: 60%-65% in equity securities and 35%-40% in fixed income securities. The inflation rate assumed in the model was 2.5%. The plan has achieved a compounded annual rate of return of approximately 8% over the previous 20 years. At December 31, 2010, the actual asset allocation was: 64% in equity securities; 35% in fixed income securities; and 1% in cash. At December 31, 2009, the actual asset allocation was: 67% in equity securities; 30% in fixed income securities; and 3% in cash.

The expected annual rate of return for the non-U.S. plans employs a similar set of criteria adapted for local investments, inflation rates and in certain cases specific government requirements. The target asset allocation, for the non-U.S. plans, consists of approximately: 55%-60% in fixed income securities; 30%-35% in equity securities; 5%-10% in real estate; and up to 5% in cash. At December 31, 2010, the actual asset allocation was: 55% in fixed income investments; 30% in equity investments; 11% in real estate investments; and 4% in cash. At December 31, 2009, the actual asset allocation was: 57% in fixed income investments; 30% in equity investments; 11% in real estate investments; and 2% in cash.

The following tables present our plan assets for the U.S. and non-U.S. plans using the fair value hierarchy as of December 31, 2010 and 2009. Our plans’ assets were accounted for at fair value and are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement requires judgment, and may affect the valuation of fair value assets and their placement within the fair value hierarchy levels. For more information on a description of the fair value hierarchy, see Note 14.


	U.S. Plans for the year ended
	December 31, 2010
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total

*Cash Equivalents*	$	—	$	3,642	$	—	$	3,642
*Equity Securities*
U.S. Common Stock		38,890		—		—		38,890
Balanced Funds		—		7,693		—		7,693
Pooled Funds		—		175,898		—		175,898
*Fixed Income Securities*
Government & Government Agency Bonds		—		58,814		—		58,814
Corporate Bonds		—		52,794		—		52,794
Municipal Bonds		—		5,605		—		5,605
Mortgage Backed Securities		—		995		—		995
Asset Backed Securities		—		987		—		987


Total	$	38,890	$	306,428	$	—	$	345,318

Receivables							$	1,766

Total							$	347,084


	U.S. Plans for the year ended
	December 31, 2009
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total

*Cash Equivalents*	$	—	$	7,908	$	—	$	7,908
*Equity Securities*
IFF Common Stock		12,095		—		—		12,095
U.S. Common Stock		13,850		—		—		13,850
Non-U.S. Common Stock		1,160		—		—		1,160
Mutual Funds		43,024		—		—		43,024
Pooled Funds		—		136,943		—		136,943
*Fixed Income Securities*
Government & Government Agency Bonds		—		40,032		—		40,032
Corporate Bonds		—		46,139		—		46,139
Municipal Bonds		—		1,760		—		1,760
Asset Backed Securities		—		573		—		573


Total	$	70,129	$	233,355	$	—	$	303,484

Receivables							$	1,406

Total							$	304,890


	Non-U.S. Plans for the year ended
	December 31, 2010
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total

*Cash*	$	24,345	$	—	$	—	$	24,345
*Equity Securities*
U.S. Large Cap		26,404		—		—		26,404
Non-U.S. Large Cap		150,103		—		—		150,103
Non-U.S. Mid Cap		6,040		—		—		6,040
Non-U.S. Small Cap		2,223		—		—		2,223
Emerging Markets		15,182		—		—		15,182
*Fixed Income Securities*
U.S. Treasuries/Government Bonds		104		—		—		104
U.S. Corporate Bonds		—		8,286		—		8,286
Non-U.S. Treasuries/Government Bonds		170,188		—		—		170,188
Non-U.S. Corporate Bonds		72,957		87,731		—		160,688
Non-U.S. Mortgage-Backed Securities		—		—		—		—
Non-U.S. Asset-Backed Securities		—		8,280		—		8,280
Non-U.S. Other Fixed Income		—		23,559		—		23,559
*Alternative Types of Investments*
Insurance Contracts		—		316		—		316
Derivative Financial Instruments		—		3,086		—		3,086
Private Equity		—		—		1		1
*Real Estate*
Non-U.S. Real Estate		—		71,537		1,217		72,754


Total	$	467,546	$	202,795	$	1,218	$	671,559


	Non-U.S. Plans for the year ended
	December 31, 2009
(DOLLARS IN THOUSANDS)	Level 1		Level 2		Level 3		Total

*Cash*	$	13,134	$	—	$	—	$	13,134
*Equity Securities*
U.S. Large Cap		26,938		—		—		26,938
Non-U.S. Large Cap		138,491		—		—		138,491
Non-U.S. Mid Cap		7,660		—		—		7,660
Non-U.S. Small Cap		1,622		—		—		1,622
Emerging Markets		9,786		—		—		9,786
Pooled Funds		12,934		—		—		12,934
*Fixed Income Securities*
U.S. Treasuries/Government Bonds		86		—		—		86
Non-U.S. Treasuries/Government Bonds		153,892		—		—		153,892
Non-U.S. Corporate Bonds		79,659		93,671		—		173,330
Non-U.S. Mortgage-Backed Securities		8,540		—		—		8,540
Non-U.S. Asset-Backed Securities		5,693		8,674		—		14,367
Non-U.S. Other Fixed Income		4,270		20,569		—		24,839
*Alternative Types of Investments*
Insurance Contracts		—		322		—		322
Private Equity Funds		—		—		2		2
*Real Estate*
Non-U.S. Real Estate		1,202		72,655		376		74,233


Total	$	463,907	$	195,891	$	378	$	660,176

Cash and cash equivalents are primarily held in registered money market funds which are valued using a market approach based on the quoted market prices of identical instruments. Other cash and cash equivalents are valued daily by the fund using a market approach with inputs that include quoted market prices for similar instruments.

Equity securities are primarily valued using a market approach based on the quoted market prices of identical instruments. Pooled funds are typically common or collective trusts valued at their net asset values (NAVs) that are calculated by the investment manager of the fund.

Fixed income securities are primarily valued using a market approach with inputs that include broker quotes and benchmark yields.

Derivative instruments are valued by the custodian using closing market swap curves and market derived inputs.

Real estate values are primarily reported by the fund manager and are based on valuation of the underlying investments, which include inputs such as cost, discounted future cash flows, independent appraisals and market comparable data.

The following table presents a reconciliation of Level 3 non-U.S. plan assets held during the year ended December 31, 2010.


	Non-U.S. Plans
	Real		Private
(DOLLARS IN THOUSANDS)	Estate		Equity			Total

Beginning balance as of December 31, 2009	$	376	$	2		$	378
Actual return on plan assets:
Relating to assets still held at the reporting date		841		(1	)		840

Ending balance as of December 31, 2010	$	1,217	$	1		$	1,218

The following weighted average assumptions were used to determine our postretirement benefit expense and obligation for the years ended December 31:


	Expense						Liability
	2010			2009			2010			2009
Discount rate		6.10	%		6.00	%		5.50	%		6.10	%
Current medical cost trend rate		9.00	%		8.00	%		8.00	%		9.00	%
Ultimate medical cost trend rate		4.75	%		4.75	%		4.75	%		4.75	%
Medical cost trend rate decreases to ultimate rate in year		2016			2014			2016			2016


	Sensitivity of Disclosures to Changes in Selected Assumptions
							25 BP Decrease in
	25 BP Decrease in Discount				25 BP Decrease in		Long-Term Rate of
	Rate				Discount Rate		Return
	Change in		Change in		Change in		Change in
(DOLLARS IN THOUSANDS)	PBO		ABO		pension expense		pension expense
U.S. Pension Plans	$	10,523	$	10,302	$	657	$	739
Non-U.S. Pension Plans	$	26,309	$	22,996	$	2,077	$	1,675
Postretirement Benefit Plan		N/A	$	2,938	$	112		N/A

The effect of a 1% increase in the medical cost trend rate would increase the accumulated postretirement benefit obligation and the annual postretirement expense by approximately $6.4 million and $0.4 million, respectively; a 1% decrease in the rate would decrease the obligation and expense by approximately $6.1 million and $0.4 million, respectively.

We contributed $20 million and $18 million to our qualified U.S. pension plans and non-U.S. pension plans in 2010. We made $3 million in benefit payments with respect to our non-qualified U.S. pension plan. In addition, $5 million of contributions were made with respect to our other postretirement plans.

Financial Instruments	12 Months Ended
Financial Instruments	Dec. 31, 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 14 - 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 14. FINANCIAL INSTRUMENTS</b> </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 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 December 31, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 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 the periods presented have been immaterial. </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 year ended December 31, 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 year ended December 31, 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. Six of these forward currency contracts matured during the year ended December 31, 2010. The remaining outstanding foreign currency forward contacts have remaining maturities of less than one year. Beginning in December 2010, the Company no longer designates these contracts as net investment hedges. Changes due to differences in the exchange rates for these contracts were recorded in earnings effective December 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">Beginning in the second quarter of 2010 and for the duration of the remaining year, 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 a portion of 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 immaterial for the year ended December 31, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The following table shows the notional amount of the Company’s derivatives designated as hedging instruments outstanding as of December 31, 2010 and December 31, 2009 (in thousands): </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="72%"> </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="6" style="border-bottom: 1px solid #000000"><b>For the years ended December 31,</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> </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> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">141,050</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">50,000</td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:15px; text-indent:-15px">Interest rate swaps </div></td> <td> </td> <td align="left">$</td> <td align="right">116,209</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,209</td> <td> </td> </tr> <!-- End Table Body --> </table> </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 December 31, 2010 and December 31, 2009 (in thousands): </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, 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"> <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"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">2,984</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,491</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,475</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate swaps </div></td> <td> </td> <td> </td> <td align="right">112</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">112</td> <td> </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: 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">$</td> <td align="right">3,096</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">1,491</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">4,587</td> <td> </td> </tr> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative liabilities (b) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">7,086</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">9,276</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,362</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate swaps </div></td> <td> </td> <td> </td> <td align="right">348</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">348</td> <td> </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: 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">$</td> <td align="right">7,434</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">9,276</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">16,710</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td align="right">.</td> <td> </td> <td> </td> <td> </td> <td> </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> <td align="left" valign="top"> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <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"> <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">$</td> <td align="right">174</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">174</td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:30px; text-indent:-15px">Interest rate swap </div></td> <td> </td> <td> </td> <td align="right">166</td> <td> </td> <td> </td> <td> </td> <td align="right">—</td> <td> </td> <td> </td> <td> </td> <td align="right">166</td> <td> </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: 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">$</td> <td align="right">166</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">174</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">340</td> <td> </td> </tr> <tr valign="bottom"><!-- Blank Space --> <td> <div style="margin-left:15px; text-indent:-15px"> </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Derivative liabilities (b) </div></td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> </tr> <tr valign="bottom"> <td> <div style="margin-left:30px; text-indent:-15px">Foreign currency contracts </div></td> <td> </td> <td align="left">$</td> <td align="right">4,467</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">906</td> <td> </td> <td> </td> <td align="left">$</td> <td align="right">5,373</td> <td> </td> </tr> <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> <!-- 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 years ended December 31, 2010 and December 31, 2009 (in thousands): </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="6"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b></b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b></b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b></b></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" colspan="2"><b></b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b></b></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" colspan="2"><b>Location of Gain</b></td> <td> </td> </tr> <tr style="font-size: 10pt" valign="bottom"> <td nowrap="nowrap" align="left"><b></b></td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>Derivative</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>or (Loss)</b></td> <td> </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 years ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Recognized in</b></td> <td> </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>December 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"><b>Income on</b></td> <td> </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" colspan="2" 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> </td> <td> </td> <td> </td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Foreign currency contract </div></td> <td> </td> <td align="left">$</td> <td align="right">8,233</td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,991</td> <td nowrap="nowrap">)</td> <td> </td> <td colspan="3" nowrap="nowrap" align="center">Other expense (income), 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 years ended December 31, 2010 and December 31, 2009 (in thousands): </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 colspan="2" nowrap="nowrap"><b>Location of Gain or</b></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 colspan="2" nowrap="nowrap"><b>(Loss) Reclassified</b></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 colspan="2" nowrap="nowrap"><b>from Accumulated</b></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>OCI into Income</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" 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>(Effective Portion)</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><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 years ended</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6"><b>For the years ended</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>December 31,</b></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="2"></td> <td> </td> <td> </td> <td nowrap="nowrap" align="center" colspan="6" style="border-bottom: 1px solid #000000"><b>December 31,</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"></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"> <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"><!-- 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"> <td> <div style="margin-left:15px; text-indent:-15px">Cross currency swap (1) </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(539</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,072</td> <td> </td> <td> </td> <td colspan="3" align="left">Other expense (income), net</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,593</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(862</td> <td nowrap="nowrap">)</td> </tr> <tr valign="bottom" style="background: #cceeff"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(894</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td colspan="3" align="left">Cost of goods sold</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(216</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> </tr> <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"> <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"><!-- 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"> <td> <div style="margin-left:15px; text-indent:-15px">Forward currency contract </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(3,788</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">—</td> <td> </td> <td> </td> <td align="left" colspan="2">N/A</td> <td> </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 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: 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> </td> <td> </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"><!-- 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"> <td> <div style="margin-left:15px; text-indent:-15px"><b>Total</b> </div></td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(5,221</td> <td nowrap="nowrap">)</td> <td> </td> <td align="left">$</td> <td align="right">1,072</td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(1,809</td> <td nowrap="nowrap">)</td> <td> </td> <td nowrap="nowrap" align="left">$</td> <td align="right">(862</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> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">No ineffectiveness was experienced in the above noted cash flow hedges during the year ended December 31, 2010. The ineffective portion of the net investment hedges was not material for the year ended December 31, 2010. </div> <div align="left" style="font-size: 10pt; margin-top: 10pt; text-indent: 8%">The Company expects approximately $2.0 million (net of tax), of derivative losses included in AOCI at December 31, 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	12 Months Ended
Commitments and Contingencies	Dec. 31, 2010
Commitments and Contingencies [Abstract]
COMMITMENTS AND CONTINGENCIES	NOTE 16. COMMITMENTS AND CONTINGENCIES Minimum rental commitments under non-cancelable operating leases are $25 million in 2011, $23 million in 2012, $21 million in 2013, $19 million in 2014, $18 million in 2015 and from 2016 and thereafter through 2030, the aggregate lease obligations are $164 million. The corresponding rental expense amounted to $29 million, $30 million and $28 million in 2010, 2009 and 2008, respectively. None of our leases contain step rent provisions or escalation clauses and they do not require capital improvement funding. At December 31, 2010, we had outstanding bank guarantees and undrawn letters of credit from financial institutions. These relate to normal business operations principally as a result of commercial and governmental requirements. 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. A 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 16 actions involving 269 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 2010, there have been seven new actions filed involving 66 claimants and five actions involving 16 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, 57 claimants were voluntarily dismissed from continuing cases based on a determination that their claims lacked merit. On a quarterly basis, 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. 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. 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 December 31, 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.

Sale and Leaseback Transactions	12 Months Ended
Sale and Leaseback Transactions	Dec. 31, 2010
Sale and Leaseback Transactions [Abstract]
SALE AND LEASEBACK TRANSACTIONS	NOTE 7. SALE AND LEASEBACK TRANSACTIONS In connection with the disposition of certain real estate in prior years, we entered into long-term operating leases covering the facilities disposed of. The leases are classified as operating leases in accordance with ASC 840, “Leases” and the gains realized have been deferred and are being credited to income over the initial lease term. Such deferred gains totaled $54 million and $59 million at December 31, 2010 and 2009, respectively, of which $51 million and $55 million, respectively, are reflected in the accompanying Consolidated Balance Sheet under the caption Deferred gains, with the remainder included as a component of Other current liabilities.

Shareholders' Equity	12 Months Ended
Shareholders' Equity	Dec. 31, 2010
Shareholders' Equity [Abstract]
SHAREHOLDERS' EQUITY	NOTE 10. SHAREHOLDERS’ EQUITY On March 9, 2000, we adopted a shareholder protection rights agreement (the “Rights Agreement”) and declared a dividend of one right on each share of common stock outstanding on March 24, 2000 or issued thereafter. The Rights Agreement expired in March 2010. Dividends declared per share were $1.04, $1.00 and $0.96 in 2010, 2009 and 2008, respectively.

Concentrations of Credit Risk	12 Months Ended
Concentrations of Credit Risk	Dec. 31, 2010
Concentrations of Credit Risk [Abstract]
CONCENTRATIONS OF CREDIT RISK	NOTE 15. CONCENTRATIONS OF CREDIT RISK We have no significant concentrations of risk in financial instruments. Temporary investments are made in a well-diversified portfolio of high-quality, liquid obligations of government, corporate and financial institutions. There are also limited concentrations of credit risk with respect to trade receivables because of the large number of customers spread across many industries and geographic regions.

Consolidated Balance Sheet (Parenthetical) - USD ($)	Dec. 31, 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	80,210,365	79,157,393
Treasury stock, shares at cost	35,551,475	36,604,447