IFF · 10-Q · 2026Q2 · Full report

Regulatory Risk

INTERNATIONAL FLAVORS & FRAGRANCES INC · 2026-08-04 · Importance 72 · Surprise 74

Selling and administrative expenses included higher regulatory costs, contributing to a $28 million increase in second-quarter S&A expense to $437 million. Regulatory costs totaled $71 million in second-quarter 2026 and $81 million in the first six months, compared with $53 million and $64 million, respectively, in the prior-year periods. Increased non-deductible regulatory costs also contributed to the effective tax rate rising to 48.4% in the second quarter and 27.7% for the first six months, and the filing identifies federal, state, local and international regulatory compliance as an ongoing exposure.