International Flavors reaches settlement on income tax disputes with Spain

International Flavors & Fragrances reached an overall settlement with the Spanish tax authorities regarding income tax deductions taken by its Spanish subsidiaries for the fiscal years 2004 through 2010. As part of the overall settlement, the Company and the Spanish tax authorities have also preliminarily agreed upon the key principles to be incorporated into an agreement that will establish the tax basis for the Company’s activities in Spain for 2012 and future years. In accordance with the overall settlement, the Company and the Spanish tax authorities agreed to settle all disputes and claims arising from the Company’s Spanish subsidiaries’ tax returns for the fiscal years 2004 through 2010 in exchange for an agreed-upon aggregate payment of Euro 86.0 million, or $105.7 million before year-end. As a result of the settlement, the Company will record an after-tax charge to net income of $58.5 million, or $0.71 per share, in the third quarter of 2012 covering the fiscal years 2004 through 2010, as well as an expected assessment for 2011, on a basis consistent with the settlement reached for the fiscal years 2004 through 2010.