Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 15, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-13397 | ||
Entity Registrant Name | INGREDION INCORPORATED | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 22-3514823 | ||
Entity Address, Address Line One | 5 Westbrook Corporate Center | ||
Entity Address, City or Town | Westchester | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60154 | ||
City Area Code | 708 | ||
Local Phone Number | 551-2600 | ||
Title of 12(b) Security | Common Stock | ||
Trading Symbol | INGR | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 6,990,000,000 | ||
Entity Common Stock, Shares Outstanding | 65,563,650 | ||
Documents Incorporated by Reference | Information required by Part III (Items 10, 11, 12, 13 and 14) of this document is incorporated by reference to certain portions of the registrant’s definitive Proxy Statement to be distributed in connection with its 2024 Annual Meeting of Stockholders, which will be filed with the Securities and Exchange Commission within 120 days after December 31, 2023. | ||
Entity Central Index Key | 0001046257 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Chicago, IL |
Auditor Firm ID | 185 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | |||
Net sales | $ 8,160 | $ 7,946 | $ 6,894 |
Cost of sales | 6,411 | 6,452 | 5,563 |
Gross profit | 1,749 | 1,494 | 1,331 |
Operating expenses | 789 | 715 | 668 |
Other operating (income) expense | (8) | 13 | (34) |
Restructuring/impairment charges | 11 | 4 | 387 |
Operating income | 957 | 762 | 310 |
Financing costs | 114 | 99 | 74 |
Other non-operating expense (income) | 4 | (5) | (12) |
Income before income taxes | 839 | 668 | 248 |
Provision for income taxes | 188 | 166 | 123 |
Net income | 651 | 502 | 125 |
Less: Net income attributable to non-controlling interests | 8 | 10 | 8 |
Net income attributable to Ingredion | $ 643 | $ 492 | $ 117 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 66 | 66.2 | 67.1 |
Diluted (in shares) | 67 | 67 | 67.8 |
Earnings per common share of Ingredion: | |||
Basic (in dollars per share) | $ 9.74 | $ 7.43 | $ 1.74 |
Diluted (in dollars per share) | $ 9.60 | $ 7.34 | $ 1.73 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 651 | $ 502 | $ 125 |
Other comprehensive income: | |||
(Losses) gains on cash flow hedges, net of income tax effect of $40, $53 and $58, respectively | (111) | 157 | 160 |
Losses (gains) on cash flow hedges reclassified to earnings, net of income tax effect of $21, $69 and $55, respectively | 57 | (199) | (154) |
Actuarial (losses) gains on pension and other postretirement obligations, settlements and plan amendments, net of income tax effect of $—, $1 and $9, respectively | (2) | (4) | 19 |
Losses on pension and other postretirement obligations reclassified to earnings, net of income tax effect of $— | 1 | 0 | 0 |
Currency translation adjustment | 47 | (105) | 211 |
Comprehensive income | 643 | 351 | 361 |
Less: Comprehensive income attributable to non-controlling interests | 2 | 0 | 9 |
Comprehensive income attributable to Ingredion | $ 641 | $ 351 | $ 352 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Gains on cash flow hedges, income tax effect | $ 40 | $ 53 | $ 58 |
(Gains) losses on cash flow hedges reclassified to earnings, income tax effect | 21 | 69 | 55 |
Actuarial (losses) gains on pension and other postretirement obligations, settlements and plan amendments, income tax effect | 0 | 1 | 9 |
Losses on pension and other postretirement obligations reclassified to earnings, income tax effect | $ 0 | $ 0 | $ 0 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 401 | $ 236 |
Short-term investments | 8 | 3 |
Accounts receivable, net | 1,279 | 1,411 |
Inventories | 1,450 | 1,597 |
Prepaid expenses and assets held for sale | 261 | 62 |
Total current assets | 3,399 | 3,309 |
Property, plant and equipment, net | 2,370 | 2,407 |
Intangible assets, net | 1,303 | 1,301 |
Other assets | 570 | 544 |
Total assets | 7,642 | 7,561 |
Current liabilities: | ||
Short-term borrowings | 448 | 543 |
Accounts payable | 778 | 873 |
Accrued liabilities and liabilities held for sale | 546 | 466 |
Total current liabilities | 1,772 | 1,882 |
Long-term debt | 1,740 | 1,940 |
Other non-current liabilities | 480 | 477 |
Total liabilities | 3,992 | 4,299 |
Share-based payments subject to redemption | 55 | 48 |
Redeemable non-controlling interests | 43 | 51 |
Ingredion stockholders’ equity: | ||
Preferred stock — authorized 25.0 shares — $0.01 par value, none issued | 0 | 0 |
Common stock — authorized 200.0 shares — $0.01 par value, 77.8 issued at December 31, 2023 and 2022 | 1 | 1 |
Additional paid-in capital | 1,146 | 1,132 |
Less: Treasury stock (common stock: 12.6 and 12.1 shares at December 31, 2023 and 2022, respectively) at cost | (1,207) | (1,148) |
Accumulated other comprehensive loss | (1,056) | (1,048) |
Retained earnings | 4,654 | 4,210 |
Total Ingredion stockholders’ equity | 3,538 | 3,147 |
Non-redeemable non-controlling interests | 14 | 16 |
Total stockholders' equity | 3,552 | 3,163 |
Total liabilities and stockholders' equity | $ 7,642 | $ 7,561 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, issued (in shares) | 77,800,000 | 77,800,000 |
Treasury stock (in shares) | 12,600,000 | 12,100,000 |
Consolidated Statements of Equi
Consolidated Statements of Equity and Redeemable Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Non- Redeemable Non- Controlling Interests |
Balance at beginning of period at Dec. 31, 2020 | $ 1 | $ 1,150 | $ (1,024) | $ (1,133) | $ 3,957 | $ 21 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 117 | 11 | |||||
Dividends declared | (175) | (11) | |||||
Repurchases of common stock, net | (68) | ||||||
Share-based compensation, net of issuance | 8 | 31 | |||||
Other comprehensive (loss) | 236 | (3) | |||||
Balance at end of period at Dec. 31, 2021 | 1 | 1,158 | (1,061) | (897) | 3,899 | 18 | |
Share-based payments subject to redemption, beginning balance at Dec. 31, 2020 | $ 30 | ||||||
Increase (Decrease) in Temporary Equity | |||||||
Share-based compensation, net of issuance | 6 | ||||||
Share-based payments subject to redemption, ending balance at Dec. 31, 2021 | 36 | ||||||
Redeemable non-controlling interests, beginning balance at Dec. 31, 2020 | 70 | ||||||
Increase (Decrease) in Temporary Equity | |||||||
Net income (loss) attributable to non-controlling interests | (3) | ||||||
Other comprehensive income (loss) | 4 | ||||||
Redeemable non-controlling interests, ending balance at Dec. 31, 2021 | 71 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 492 | 9 | |||||
Dividends declared | (181) | (5) | |||||
Repurchases of common stock, net | (112) | ||||||
Share-based compensation, net of issuance | 3 | 25 | |||||
Fair market value adjustment to non-controlling interests | (29) | ||||||
Other comprehensive (loss) | (151) | (6) | |||||
Balance at end of period at Dec. 31, 2022 | 3,163 | 1 | 1,132 | (1,148) | (1,048) | 4,210 | 16 |
Increase (Decrease) in Temporary Equity | |||||||
Share-based compensation, net of issuance | 12 | ||||||
Share-based payments subject to redemption, ending balance at Dec. 31, 2022 | 48 | ||||||
Increase (Decrease) in Temporary Equity | |||||||
Net income (loss) attributable to non-controlling interests | 1 | ||||||
Fair market value adjustment to non-controlling interests | 29 | ||||||
Non-controlling interest purchases | (46) | ||||||
Other comprehensive income (loss) | (4) | ||||||
Redeemable non-controlling interests, ending balance at Dec. 31, 2022 | 51 | ||||||
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 643 | 7 | |||||
Dividends declared | (199) | (3) | |||||
Repurchases of common stock, net | (101) | ||||||
Share-based compensation, net of issuance | 7 | 42 | |||||
Fair market value adjustment to non-controlling interests | 7 | ||||||
Other comprehensive (loss) | (8) | (6) | |||||
Balance at end of period at Dec. 31, 2023 | 3,552 | $ 1 | $ 1,146 | $ (1,207) | $ (1,056) | $ 4,654 | $ 14 |
Increase (Decrease) in Temporary Equity | |||||||
Share-based compensation, net of issuance | 7 | ||||||
Share-based payments subject to redemption, ending balance at Dec. 31, 2023 | 55 | ||||||
Increase (Decrease) in Temporary Equity | |||||||
Net income (loss) attributable to non-controlling interests | 1 | ||||||
Fair market value adjustment to non-controlling interests | (7) | ||||||
Non-controlling interest purchases | (2) | ||||||
Other comprehensive income (loss) | 0 | ||||||
Redeemable non-controlling interests, ending balance at Dec. 31, 2023 | $ 43 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash from operating activities | |||
Net income | $ 651 | $ 502 | $ 125 |
Non-cash charges to net income: | |||
Depreciation and amortization | 219 | 215 | 220 |
Mechanical stores expense | 62 | 55 | 55 |
Impairment on disposition of assets | 0 | 0 | 340 |
Deferred income taxes | (6) | (3) | (61) |
Other non-cash charges | 69 | 57 | 8 |
Changes in working capital: | |||
Accounts receivable and prepaid expenses | 77 | (310) | (162) |
Inventories | 69 | (468) | (312) |
Accounts payable and accrued liabilities | (79) | 158 | 226 |
Margin accounts | 10 | (44) | (32) |
Other | (15) | (10) | (15) |
Cash provided by operating activities | 1,057 | 152 | 392 |
Cash from investing activities | |||
Capital expenditures and mechanical stores purchases | (316) | (300) | (300) |
Proceeds from disposal of manufacturing facilities and properties | 2 | 7 | 18 |
Payments for acquisitions, net of cash acquired | 0 | (29) | (40) |
Other | (15) | 2 | (13) |
Cash used for investing activities | (329) | (320) | (335) |
Cash from financing activities | |||
Proceeds from borrowings | 720 | 825 | 1,300 |
Payments on debt | (949) | (532) | (1,690) |
Commercial paper (repayments) borrowings, net | (63) | 140 | 250 |
Repurchases of common stock, net | (101) | (112) | (68) |
Issuances of common stock for share-based compensation, net | 20 | 9 | 19 |
Purchases of non-controlling interests | (2) | (46) | 0 |
Dividends paid, including to non-controlling interests | (194) | (181) | (184) |
Cash (used for) provided by financing activities | (569) | 103 | (373) |
Effects of foreign exchange rate changes on cash | 6 | (27) | (21) |
Increase (decrease) in cash and cash equivalents | 165 | (92) | (337) |
Cash and cash equivalents, beginning of period | 236 | 328 | 665 |
Cash and cash equivalents, end of period | $ 401 | $ 236 | $ 328 |
Description of the Business and
Description of the Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Description of the Business and Summary of Significant Accounting Policies | Description of the Business and Summary of Significant Accounting Policies Unless the context otherwise requires, all references herein to the “Company,” “Ingredion,” “we,” “us,” and “our” shall mean Ingredion Incorporated and its consolidated subsidiaries. Description of the business : We primarily manufacture and sell sweeteners, starches, nutrition ingredients and biomaterial solutions derived from wet milling and processing corn and other starch-based materials to a wide range of industries, both domestically and internationally. Basis of presentation : The Consolidated Financial Statements consist of the accounts of Ingredion, including all subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. Use of estimates : The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates and assumptions impact the value of purchase consideration, accounts receivable, inventories, certain investments, goodwill, intangible assets and other long-lived assets, legal contingencies, income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on our best estimates and judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We will adjust such estimates and assumptions when facts and circumstances dictate. Corn price volatility, adverse changes in the global economic environment, foreign currency devaluations versus the U.S. dollar, and access to credit markets increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. Foreign currency translation: Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the U.S. dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of Accumulated other comprehensive loss (“AOCL”), and income statement accounts are translated at the average exchange rate during the period. The U.S. dollar is the functional currency for our subsidiaries in Mexico and Argentina, and we translate their monetary assets and liabilities at current exchange rates with the related adjustment included in financing costs in our Consolidated Statements of Income. Non-monetary assets and liabilities are translated at historical exchange rates with the related translation adjustments included in AOCL in our Consolidated Balance Sheets. Revenue recognition: Ingredion recognizes revenue under the core principle to depict our transfer of products and solutions to customers in amounts that reflect the consideration we expect to receive. To achieve that core principle, we apply the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We identify customer purchase orders, which in some cases are governed by a master sales agreement, as the contracts with our customers. For each contract, we consider the transfer of products, each of which is distinct, to be the identified performance obligation. The pricing model can be fixed or variable within the contract. The variable pricing model is based on historical commodity pricing and is determinable before we complete the performance obligation. To determine the transaction price for the contract performance obligations, we also evaluate whether the price could be adjusted, and we may reduce the transaction price for certain sales adjustments such as volume incentive discounts and other discount arrangements. We estimate transaction price adjustments using the expected value method based on our analysis of historical volume incentives or discounts over a period considered adequate to account for current pricing and business trends. Historically, actual volume incentives and discounts relative to those estimated and included when determining the transaction price have not materially differed. We accrue volume incentives and discounts in Accrued liabilities and liabilities held for sale in the Consolidated Balance Sheets when we satisfy the performance obligation. We consider the product price as specified in the contract, net of any discounts, as the standalone selling price as it is an observable input that represents the price if we sold the product to a similar customer in similar circumstances. We do not recognize any significant financing components since payment is due shortly after we satisfy our performance obligation. We recognize revenue when we satisfy our performance obligation and control is transferred to the customer, which occurs at a point in time, either upon delivery to an agreed upon location or to the customer. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Shipping and handling activities related to contracts with customers represent fulfillment costs and are recorded in Cost of sales in the Consolidated Statements of Income. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from net sales. We expense costs to obtain a contract when we incur the costs since most contracts are one year or less. These costs primarily include our internal sales force compensation. Under the terms of these programs, the compensation is generally earned, and the costs are recognized when we recognize the revenue. From time to time, we may enter into long-term contracts with our customers. Historically, such contracts do not result in significant contract assets or liabilities. Any such arrangements are accounted for in Other assets or Accrued liabilities and liabilities held for sale in the Consolidated Balance Sheets. Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less and that have virtually no risk of loss in value. Accounts receivable : Accounts receivable consists of trade and other receivables carried at approximate fair value, net of an allowance for credit losses. The allowance for credit losses is determined using our best estimate of expected credit losses based on historical experience and current forecasts of future economic conditions, and we adjust this estimate over the life of the receivable as needed. Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method. Long-term investments: We hold marketable securities and equity investments, which we include in Other assets in the Consolidated Balance Sheets. Marketable securities are carried at fair value and we record changes in fair value to Other operating (income) expense in the Consolidated Statements of Income if we maintain the securities for processing transactions that directly support operating activities; otherwise, we record changes in fair value to Other non-operating (income) expense in the Consolidated Statements of Income. Equity investments in companies for which we do not have the ability to exercise significant influence are accounted for at fair value, with changes in fair value recorded in Other non-operating expense (income) in the Consolidated Statements of Income. Equity securities without readily determinable fair values are carried at cost, less impairments, if any, and adjusted for observable price changes for the identical or a similar investment of the same issuer. We perform a qualitative impairment assessment to determine if such investments are impaired, which considers all available information, including declines in the financial performance of the issuing entity, the issuing entity’s operating environment and general market conditions. Impairments of equity securities without readily determinable fair value are recorded in Other non-operating expense (income) in the Consolidated Statements of Income. Equity investments in companies for which we have the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting. Our share of the earnings or losses reported by equity method investees is recognized in Other operating (income) expense in the Consolidated Statements of Income. Each reporting period, we evaluate declines in the fair value of equity method investments below carrying value to determine if any are other-than-temporary and if so, we write down the investment to its estimated fair value. Impairments are recognized in Restructuring/impairment charges in the Consolidated Statements of Income. Leases: We determine if an arrangement contains a lease, as well as its classification as an operating lease or finance lease, at the inception of the agreement. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. The commencement date used for the calculation of the lease obligations recorded is the latter of the lease start date or January 1, 2019, which is when we adopted Accounting Standards Codification (“ASC”) 842. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. The lease asset value includes in our calculation any prepaid lease payments made and any lease incentives received from the arrangement as a reduction of the asset. Certain leases have options to terminate or extend the life of the lease, which we include in the lease asset and lease liability calculation when we have sole discretion to exercise the option and it is reasonably certain we will. We do not separate lease and non-lease components for our leases when it is impracticable to separate them, such as leases with variable payment arrangements. We have certain leases that have variable payments based solely on output or usage of the leased asset, which we do not record in our Consolidated Balance Sheets, but expense as incurred. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. Property, plant and equipment and definite-lived intangible assets: Property, plant and equipment (“PP&E”) is stated at cost less accumulated depreciation and definite-lived intangible assets are stated at cost less accumulated amortization. For PP&E, depreciation is generally computed on the straight-line basis over the estimated useful lives of depreciable assets, which range from 25 to 50 years for buildings and from two two Assets held for sale: We classify long-lived assets or disposal groups as held for sale in the period when all of the following conditions have been met: • we have approved and committed to a plan to sell the assets or disposal group, • the asset or disposal group is available for immediate sale in its present condition, • an active program to locate a buyer and other actions required to complete the sale have been initiated, • the sale of the asset or disposal group is probable and expected to be completed within one year, • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and • it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all the held for sale criteria are met, we initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or the fair value less any costs to sell, recognize any resulting losses, and cease depreciation and amortization of the long-lived asset or assets within a disposal group. Until the date of sale or until the asset or disposal group are no longer classified as held for sale, we assess fair value less any costs to sell and recognize any resulting losses at each reporting period. Gains are not recognized until the date of the sale. Indefinite-lived intangible assets and goodwill : We have certain indefinite-lived intangible assets in the form of tradenames and trademarks. Our methodology for allocating the purchase price of acquisitions is based on established valuation techniques that reflect the consideration of a number of factors, including valuations performed by third-party appraisers when appropriate. Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. We assess indefinite-lived intangible assets and goodwill for impairment annually (or other circumstances requiring assessment), which we perform as of July 1 of each year. In testing indefinite-lived intangible assets for impairment, we first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount. If not, then we determine the fair value of the indefinite-lived intangible assets by performing a quantitative impairment analysis that considers various factors, including net sales derived from these intangibles and certain market and industry conditions. In testing goodwill for impairment, we first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount. If not, then an impairment exists for the difference between the fair value and carrying value of the reporting unit. This difference is not to exceed the goodwill recorded at the reporting unit. Hedging instruments: We use derivative financial instruments consisting primarily of commodity futures, swaps and option contracts, forward currency contracts and options, interest rate swaps, and Treasury lock agreements (“T-Locks”). When we enter a derivative contract, we designate the derivative as a hedge of variable cash flows to be paid related to certain forecasted transactions (“a cash flow hedge”), as a hedge of the fair value of certain fixed (“firm”) commitments (“a fair value hedge”), or as a non-designated hedging instrument. This process includes linking all derivatives that are designated as cash flow or fair value hedges to specific assets and liabilities on the Consolidated Balance Sheets, or to specific firm commitments or forecasted transactions. For all hedging relationships, we document the hedging relationships and our risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how we will assess the hedging instrument’s effectiveness in offsetting the hedged risk, and a description of the method to measure ineffectiveness. We also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in a hedging transaction is highly effective in offsetting changes in cash flows or fair values of hedged items. For hedging instruments designated as cash flow hedges, unrealized gains and losses associated with marking cash flow hedging contracts to market (fair value) are recorded as a component of other comprehensive loss (“OCL”) and included in the equity section of the Consolidated Balance sheets as part of AOCL. These amounts, as well as their related tax effects, are subsequently reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the period a hedge is determined to be ineffective. Gains and losses from cash flow hedging instruments reclassified from AOCL to earnings are reported as Cash provided by operating activities on the Consolidated Statements of Cash Flows. For hedging instruments designated as fair value hedges, unrealized gains and losses associated with marking fair value hedging contracts to market (fair value) are recorded in earnings each period. Unrealized gains and losses on hedged items in designated and highly effective fair value hedges are also recorded in earnings each period. For hedging instruments not designated as hedging instruments for accounting purposes, all realized and unrealized gains and losses from these instruments are recognized in earnings during each accounting period. We assess the effectiveness of hedging contracts based on changes in the contract’s fair value. The changes in the market value of our hedging contracts have historically been, and are expected to be, highly effective at offsetting changes in the price of hedged items. We discontinue hedge accounting prospectively when it is unlikely or not probable that a forecasted transaction will occur or when we determine that the designation of the derivative as a hedging instrument is no longer appropriate, since the derivative is no longer effective in offsetting changes in the cash flows or fair value of the originally intended hedged transaction. When we discontinue hedge accounting, we continue to carry the derivative on the Consolidated Balance Sheets at its fair value and freeze the deferred gains or losses into AOCL. Changes in the fair value of the derivative are recognized in earnings in the same line item as the original hedged transaction instead of AOCL. Any accumulated gains and losses that were included in AOCL in the period we determined the hedge to be ineffective are also released to earnings. Pension and other postretirement benefits : All U.S. pension and postretirement benefit plans and most non-U.S. pension and postretirement benefit plans value the vested benefit obligation based on the actuarial present value of the vested benefits to which employees are currently entitled based on their expected date of separation or retirement. For defined benefit plans, the service cost component of net periodic benefit cost is presented within either Cost of sales or Operating expenses on the Consolidated Statements of Income. The interest cost, expected return on plan assets, amortization of actuarial loss, amortization of prior service credit and settlement loss components of net periodic benefit cost are presented as Other non-operating expense (income) on the Consolidated Statements of Income. Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets are classified in AOCL, along with the related tax impact, and recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees for active defined benefit pension plans and over the average remaining life of a plan’s active employees for frozen defined benefit pension plans. Share-based compensation: We have a stock incentive plan that provides for share-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units and performance shares to certain key employees. Compensation expense is generally recognized in the Consolidated Statements of Income on a straight-line basis for all awards over the requisite service period. We estimate a forfeiture rate at the time of certain grants, and we update the estimate throughout the vesting of certain awards within the amount of compensation costs recognized in each period. Earnings per common share: Basic earnings per common share (“EPS”) is computed by dividing Net income attributable to Ingredion by the weighted average number of shares outstanding. Diluted EPS is calculated using the treasury stock method, computed by dividing Net income attributable to Ingredion by the weighted average number of shares outstanding, including the dilutive effect of outstanding stock options and other instruments associated with long-term incentive compensation plans. Risks and uncertainties: We operate domestically and internationally, and our business and assets in each country are subject to varying degrees of risk and uncertainty. We insure our business and assets in each country against insurable risks in a manner that we deem appropriate. Because of our geographic dispersion, we believe that a loss from a non-insured event in any one country would not have a material adverse effect on our operations as a whole. Additionally, we believe there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect our results. We do not consider the potential for insurance recoveries if we record accruals for estimated probable costs from events or circumstances that may be insured. New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2024. We adopted ASU 2020-04 at the beginning of our 2023 fiscal year and this ASU did not have a material impact on our Consolidated Financial Statements. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . The amendments require buyers to disclose information about supplier finance programs that is sufficient to allow financial statement users to understand their nature, activity during the period, changes from period to period and potential magnitude. The amendments in this update are effective for annual periods beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We adopted the updates to the standard at the beginning of our 2023 fiscal year and will adopt the amendment on rollforward information during the first quarter of 2024. These updates did not have a material impact to our Consolidated Balance Sheets. The disclosure required by the recently adopted accounting standard is reflected in Note 15. We are currently assessing the impact of the rollforward information amendment on our Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60). The amendments in this update require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments in this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. A joint venture that was formed before January 1, 2025 may elect to apply the amendments retrospectively. We plan to adopt this ASU on a prospective basis at the beginning of our 2025 fiscal year and do not believe it will have a material impact on our Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) . The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Entities must apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We are currently assessing the impact of this ASU on our Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures. The amendments require public business entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, the amendment requires information pertaining to taxes paid (net of refunds received) to be disaggregated by federal, state, and foreign taxes with further disaggregation for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, with early adoption permitted. |
Acquisitions and Divestitures
Acquisitions and Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisition of PureCircle Non-Controlling Interests During 2023 and 2022, Ingredion purchased shares from minority shareholders in PureCircle Limited (“PureCircle”) for $2 million and $46 million, respectively. These purchases increased our ownership percentage in PureCircle to 88 percent as of December 31, 2023, from 87 percent as of December 31, 2022, and from 75 percent as of December 31, 2021. Other Acquisitions On December 1, 2022, we acquired a 65 percent controlling interest in Mannitab Pharma Specialties Private Limited (“Mannitab”), which is an Indian manufacturer of spray dried mannitol and fine grade mannitol, for $22 million. We agreed to acquire the remaining 35 percent of Mannitab on or before March 2026. To reflect our controlling interest in Mannitab, we recorded $19 million of goodwill and $9 million of definite-lived intangible assets on our Consolidated Financial Statements when we completed the purchase accounting in 2023. Beginning at the acquisition date, our Consolidated Financial Statements reflect the effects of the acquisition and Mannitab's financial results, which we report in our Asia-Pacific reportable business segment. On August 1, 2022, we acquired 100 percent of Amishi Drugs and Chemicals Private Limited (“Amishi”) for $7 million, which added $3 million of goodwill and intangible assets to our Consolidated Financial Statements. Amishi is an Indian manufacturer of chemically modified starch-based pharmaceutical excipients. Beginning at the acquisition date, our Consolidated Financial Statements reflect the effects of the acquisition and Amishi's financial results, which we report in our Asia-Pacific reportable business segment. On April 1, 2021, we acquired 100 percent of KaTech, a privately held company headquartered in Germany. KaTech provides advanced texture and stabilization solutions to the food and beverage industry. To complete the closing, we made a total cash payment of $40 million, net of cash acquired, which we funded from cash on hand. The acquisition added $26 million of goodwill and intangible assets, as well as $14 million of tangible assets. Beginning at the acquisition date, our Consolidated Financial Statements reflect the effects of the acquisition and KaTech’s financial results, which we report in our Europe, Middle East and Africa (“EMEA”) reportable business segment. Pre-tax acquisition and integration costs were insignificant in 2023, $1 million in 2022, and $5 million in 2021. The acquisitions individually and in the aggregate would not have been material to our results of operations for any periods presented. South Korea Divestiture On November 10, 2023, we entered into a definitive agreement to sell our business in South Korea to an affiliate of the Sajo Group, a leading food company headquartered in Seoul, South Korea, for 384.0 billion South Korean won, or approximately $294 million. We received 330.0 billion South Korean won, or $247 million net of certain transaction costs, when the transaction closed on February 1, 2024, and we will receive the remaining consideration in equal annual payments through February 2027. In the first quarter of 2024, we expect to record a gain from the imputed fair value of $283 million in consideration. Our business in South Korea generated operating profits of $30 million in 2023, $14 million in 2022 and $27 million in 2021. In connection with this divestment, we reclassified the assets and liabilities of our South Korea business, which is in our Asia-Pacific reportable business segment, as held for sale during the fourth quarter of 2023 in our Consolidated Financial Statements. The following table presents the major classes of assets and liabilities classified as held for sale for the South Korea divestment. Assets classified as held for sale are included in Prepaid expenses and assets held for sale, and liabilities held for sale are included in Accrued liabilities and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2023. December 31, 2023 Accounts receivable, net 38 Inventories 69 Property, plant and equipment, net 100 Other assets 4 Assets held for sale $ 211 Short-term borrowings $ 2 Accounts payable 30 Accrued liabilities 14 Non-current liabilities 5 Liabilities held for sale $ 51 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Goodwill The original carrying value of goodwill and accumulated impairment charges at December 31, 2023 are as follows: North South Asia- EMEA Total Goodwill before impairment charges $ 623 $ 49 $ 311 $ 72 $ 1,055 Accumulated impairment charges (1) (33) (121) — (155) Balance at January 1, 2023 622 16 190 72 900 Acquisitions — — 19 — 19 Currency translation — 2 (5) 2 (1) Balance at December 31, 2023 $ 622 $ 18 $ 204 $ 74 $ 918 We concluded that as of our July 1, 2023 impairment assessments, there were no impairments to goodwill. Other Intangible Assets A summary of other intangible assets is as follows: December 31, 2023 Gross Accumulated Amortization Net Weighted Average Useful Life Trademarks/tradenames (indefinite-lived) $ 143 $ — $ 143 — Patents 31 (9) 22 12 Customer relationships 358 (170) 188 19 Technology 111 (103) 8 9 Other 41 (17) 24 15 Total other intangible assets $ 684 $ (299) $ 385 17 December 31, 2022 Gross Accumulated Amortization Net Weighted Average Useful Life Trademarks/tradenames (indefinite-lived) $ 143 $ — $ 143 — Patents 32 (7) 25 12 Customer relationships 356 (150) 206 19 Technology 102 (101) 1 9 Other 43 (17) 26 15 Total other intangible assets $ 676 $ (275) $ 401 17 Amortization expense related to intangible assets was $26 million in 2023, $26 million in 2022, and $27 million in 2021. Based on the results of our impairment assessments, we concluded that as of July 1, 2023, there were no impairments to our indefinite-lived other intangible assets. Estimated future amortization expense related to intangible assets is as follows: Years ending December 31, Estimated Future Amortization Expense 2024 $ 26 2025 26 2026 26 2027 26 2028 26 |
Investments
Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments | Investments Investments as of December 31, 2023 and 2022 are as follows: 2023 2022 Equity investments $ 27 $ 23 Equity method investments 112 113 Marketable securities 4 3 Total investments $ 143 $ 139 Our investments classified as equity investments do not have readily determinable fair values. Beginning on the dates we entered into the agreements for equity method investments, our share of income from them is included within Other operating (income) expense in the Consolidated Statements of Income. Of the $11 million of Restructuring/impairment charges in the Consolidated Statements of Income we recorded in 2023, $10 million represented o ther-than-temporary-impairments on our Amyris joint venture and other joint ventures. Amyris Joint Venture On June 1, 2021, we entered into an agreement with Amyris for certain exclusive commercialization rights to Amyris’ rebaudioside M by fermentation product, the exclusive licensing of the product’s manufacturing technology, and a 31 percent ownership stake in a joint venture for the products (the “Amyris joint venture”). In exchange, we contributed $28 million of total consideration, which included $10 million of cash, as well as non-exclusive intellectual property licenses and other consideration valued at $18 million. The transaction resulted in an $8 million gain recorded in Other operating (income) expense, which included $18 million related to the non-exclusive intellectual property licenses, offset by the $10 million cash payment. Beginning June 1, 2021, we began accounting for the investment under the equity method and we recognize our share of results one quarter in arrears due to the timing of when results are available. Argentina Joint Venture On February 12, 2021, we entered into an agreement with an affiliate of Grupo Arcor, an Argentine food company, to establish Ingrear Holding S.A. (the “Argentina joint venture”), a joint venture that operates five manufacturing facilities in Argentina to sell value-added ingredients to customers in the food, beverage, pharmaceutical and other industries in Argentina, Chile and Uruguay. On August 2, 202 1 , we completed all closing conditions, pending customary antitrust review, to combine the manufacturing facilities, finalize the transaction and formally establish the Argentina joint venture, which is managed by a jointly appointed team of executives. We exchanged certain assets and liabilities with a fair value of $71 million from our Argentina, Chile and Uruguay operations for a value of $64 million of the Argentina joint venture, as well as $7 million of other consideration, including cash, from Grupo Arcor as of August 2, 2021. This resulted in our ownership of 49 percent of the Argentine joint venture’s outstanding shares. This transaction also resulted in a $340 million impairment charge for assets and liabilities we contributed to the Argentina joint venture, which consisted of $311 million related to the write-off of the cumulative translation losses associated with the contributed net assets and $29 million related to the final write-down of the contributed net assets to fair value. We incurred $4 million and $6 million of pre-tax acquisition and integration costs to acquire the Argentina and Amyris joint venture investments in 2022 and 2021, respectively. The 2022 charges were recorded within Financing costs on the Consolidated Statements of Income. The Argentina joint venture is accounted for on the equity method of accounting, and we recognize our share of income or expense in Other operating (income) expense one month in arrears due to the timing of when results are available. On December 13, 2023, the new Argentine government allowed the Argentine peso to devalue from the exchange rate of approximately 366 pesos to one U.S. dollar, to 800 pesos to one U.S. dollar. Our 2023 results do not reflect the impact of this devaluation. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges During 2023, we recorded $1 million of pre-tax restructuring charges related to the divestiture of our South Korea business. During 2022, we recorded $4 million of pre-tax restructuring charges, which included $3 million of costs associated with our Cost Smart selling, general and administrative expense (“SG&A”) program and $1 million of costs as part of our Cost Smart Cost of sales program. During 2021, we recorded a total of $47 million of pre-tax restructuring charges. We recorded pre-tax net restructuring charges of $27 million as part of our Cost Smart Cost of sales program, which primarily consisted of accelerated depreciation and other costs recorded in our North America segment. We also recorded $17 million of employee-related and other costs associated with our Cost Smart SG&A program, consisting of professional services and employee-related severance costs primarily in our North America and EMEA segments. |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We are exposed to market risk stemming from changes in commodity prices (primarily corn and natural gas), foreign currency exchange rates and interest rates. In the normal course of business, we actively manage our exposure to these market risks by entering various hedging transactions authorized under established policies that place controls on these activities. These transactions utilize exchange-traded derivatives or over-the-counter derivatives with investment grade counterparties. We use derivative financial instruments that consist of commodity-related futures, options and swap contracts, foreign currency-related forward contracts, interest rate swaps and treasury locks (“T-Locks”). Commodity price hedging : Our principal use of derivative financial instruments is to manage commodity price risk relating to anticipated purchases of corn and natural gas that we intend to use in the manufacturing process, generally over the next 12 to 24 months. We maintain a commodity-price risk management strategy that uses derivative instruments to minimize significant, unanticipated earnings fluctuations caused by commodity-price volatility. To manage price risk related to corn purchases primarily in North America, we use corn futures and option contracts that trade on regulated commodity exchanges to lock in corn costs associated with fixed-priced customer sales contracts. We use soybean oil and soybean meal futures contracts in North America that trade on regulated commodity exchanges to hedge sales of our co-products. We also use over-the-counter natural gas swaps primarily in North America to hedge a portion of our natural gas usage. These derivative financial instruments limit the impact that volatility resulting from fluctuations in market prices will have on corn and natural gas purchases, as well as co-product sales. Our natural gas, soybean meal and the majority of our corn and soybean oil derivatives have been designated as cash flow hedging instruments. A portion of our corn and soybean oil derivatives are not designated as hedging instruments for accounting purposes. We had outstanding futures and option contracts that hedged the forecasted purchase of approximately 109 million and 120 million bushels of corn as of December 31, 2023 and 2022, respectively. We also had outstanding swap contracts that hedged the forecasted purchase of approximately 28 million and 31 million mmbtus of natural gas as of December 31, 2023 and 2022, respectively. Foreign currency hedging : Due to our global operations, including operations in many emerging markets, we are exposed to fluctuations in foreign currency exchange rates. As a result, we have exposure to translational foreign-exchange risk when the results of our foreign net assets and operations are translated to U.S. dollars and to transactional foreign-exchange risk when transactions not denominated in the functional currency are revalued. Our foreign-exchange risk management strategy uses derivative financial instruments such as foreign currency forward contracts, swaps and options to manage our transactional foreign exchange risk. We enter into foreign currency derivative instruments that are designated as cash flow hedging instruments as well as instruments not designated as hedging instruments for accounting purposes in order to mitigate transactional foreign-exchange risk. We hedge certain assets using foreign currency derivatives not designated as hedging instruments, which had a notional value of $694 million and $405 million as of December 31, 2023 and 2022, respectively. We also hedge certain liabilities using foreign currency derivatives not designated as hedging instruments, which had a notional value of $182 million and $239 million as of December 31, 2023 and 2022, respectively. We hedge certain assets using foreign currency cash flow hedging instruments, which had a notional value of $449 million and $668 million as of December 31, 2023 and 2022, respectively. We also hedge certain liability positions using foreign currency cash flow hedging instruments, which had a notional value of $621 million and $840 million as of December 31, 2023 and 2022, respectively. Interest rate hedging : We assess our exposure to variability in interest rates by identifying and monitoring changes in interest rates that may adversely impact future cash flows and the fair value of existing debt instruments and by evaluating hedging opportunities. Our risk management strategy is to monitor interest rate risk attributable to our outstanding and forecasted debt obligations as well as our offsetting hedge positions. Derivative financial instruments that we have used to manage our interest rate risk consist of interest rate swaps and T-Locks. We periodically enter into T-Locks to hedge our exposure to interest rate changes. We have settled T-Locks associated with the issuance of our senior notes due in 2030 and 2050. The realized loss upon settlement of these T-Locks was recorded in AOCL and is amortized into earnings over the term of the senior notes. We did not have open T-Locks as of December 31, 2023 and 2022. The derivative instruments designated as cash flow hedges included in AOCL as of December 31, 2023 and 2022, are as follows: Derivatives in Cash Flow Hedging Relationships Gains (Losses) included in AOCL as of December 31, 2023 2022 Commodity contracts, net of income tax effect of $17 and $3, respectively $ (46) $ 8 Foreign currency contracts, net of income tax effect of $ 1 and $—, respectively — 1 Interest rate contracts, net of income tax effect of $1 (2) (3) Total $ (48) $ 6 As of December 31, 2023, AOCL included $46 million of net losses (net of income taxes of $16 million) on commodities-related derivative instruments, T-Locks and foreign currency hedges designated as cash flow hedges that are expected to be reclassified into earnings during the next twelve months. The fair value and balance sheet location of our derivative instruments, presented gross in the Consolidated Balance Sheets, are as follows: Fair Value of Hedging Instruments as of December 31, 2023 Designated Hedging Instruments Non-Designated Hedging Instruments Balance Sheet Location Commodity Contracts Foreign Currency Contracts Total Commodity Contracts Foreign Currency Contracts Total Accounts receivable, net $ 6 $ 11 $ 17 $ — $ 5 $ 5 Other assets — 4 4 — — — Assets 6 15 21 — 5 5 Accounts payable and accrued liabilities 44 14 58 2 12 14 Non-current liabilities 2 2 4 — — — Liabilities 46 16 62 2 12 14 Net Assets/(Liabilities) $ (40) $ (1) $ (41) $ (2) $ (7) $ (9) Fair Value of Hedging Instruments as of December 31, 2022 Designated Hedging Instruments Non-Designated Hedging Instruments Balance Sheet Location Commodity Contracts Foreign Currency Contracts Total Commodity Contracts Foreign Currency Contracts Total Accounts receivable, net $ 28 $ 20 $ 48 $ — $ 5 $ 5 Other assets 1 6 7 — — — Assets 29 26 55 — 5 5 Accounts payable and accrued liabilities 22 23 45 1 6 7 Non-current liabilities 3 9 12 — — — Liabilities 25 32 57 1 6 7 Net Assets/(Liabilities) $ 4 $ (6) $ (2) $ (1) $ (1) $ (2) Additional information relating to our derivative instruments are as follows: Derivatives in Cash Flow Hedging Relationships Gains (Losses) Income Statement Gains (Losses) 2023 2022 2021 2023 2022 2021 Commodity contracts $ (161) $ 202 $ 218 Cost of sales $ (87) $ 261 $ 211 Foreign currency contracts 10 8 — Net sales/Cost of sales 10 7 (1) Interest rate contracts — — — Financing costs (1) — (1) Total $ (151) $ 210 $ 218 $ (78) $ 268 $ 209 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We measure certain assets and liabilities at fair value, which is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the “exit price”) in an orderly transaction between market participants at the measurement date. In determining fair value, we use various valuation approaches. The hierarchy of those valuation approaches is in three levels based on the reliability of inputs. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. Below is a summary of the hierarchy levels: • Level 1 inputs consist of quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 inputs are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly for substantially the full term of the financial instrument. Level 2 inputs are based on quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability or can be derived principally from or corroborated by observable market data. • Level 3 inputs are unobservable inputs for the asset or liability. Unobservable inputs are used to measure fair value to the extent that observable inputs are not available, thereby allowing for situations in which there is little, if any, market activity for the asset or liability at the measurement date. Assets and liabilities measured at fair value on a recurring basis are presented below: As of December 31, 2023 As of December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Marketable securities $ 4 $ 4 $ — $ — $ 3 $ 3 $ — $ — Derivative assets 26 26 — — 60 49 11 — Derivative liabilities 76 43 33 — 64 51 13 — Long-term debt 1,591 — 1,591 — 1,733 — 1,733 — The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable and short-term borrowings approximate fair values. Commodity futures, options and swap contracts are recognized at fair value. Foreign currency forward contracts, swaps and options are also recognized at fair value. The fair value of our Long-term debt is estimated based on quotations of major securities dealers who are market makers in the securities. See Note 11 for information on the fair value of pension plan assets. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Financing Arrangements | Financing Arrangements We had total debt outstanding of approximately $2.2 billion and $2.5 billion at December 31, 2023 and 2022, respectively. As of December 31, 2023, our Short-term borrowings consisted primarily of commercial paper borrowings and amounts outstanding under various unsecured local country operating lines of credit. In 2023, we paid the outstanding principal in full and without penalty under our term loan credit agreement that was due on December 16, 2024. In 2021, we established a commercial paper program under which we may issue senior unsecured notes of short maturities up to a maximum aggregate principal amount of $1.0 billion outstanding at any time. The notes may be sold from time to time on customary terms in the U.S. commercial paper market. We use the note proceeds for general corporate purposes. From the inception of the program until December 31, 2021, the average amount of commercial paper outstanding was $670 million with an average interest rate of 0.27 percent and a weighted average maturity of 48 days. During 2022, the average amount of commercial paper outstanding was $522 million with an average interest rate of 1.97 percent and a weighted average maturity of 16 days. As of December 31, 2022, $390 million of commercial paper was outstanding with an average interest rate of 4.75 percent and a weighted average maturity of 7 days. During 2023, the average amount of commercial paper outstanding was $397 million with an average interest rate of 5.30 percent and a weighted average maturity of 11 days. As of December 31, 2023, $327 million of commercial paper was outstanding with an average interest rate of 5.50 percent and a weighted average maturity of 11 days. The amount of commercial paper outstanding under this program in 2024 is expected to fluctuate. Presented below are our debt carrying amounts, net of related discounts, premiums and debt issuance costs and fair values as of December 31, 2023 and 2022: 2023 2022 Carrying Fair Carrying Fair 2.900% senior notes due June 1, 2030 $ 596 $ 536 $ 595 $ 510 3.200% senior notes due October 1, 2026 499 479 498 470 3.900% senior notes due June 1, 2050 391 300 390 293 6.625% senior notes due April 15, 2037 253 275 253 256 Term loan credit agreement due December 16, 2024 — — 200 200 Revolving credit agreement — — — — Other long-term borrowings 1 1 4 4 Total long-term debt 1,740 1,591 1,940 1,733 Commercial paper 327 327 390 390 Other short-term borrowings 121 121 153 153 Total short-term borrowings 448 448 543 543 Total debt $ 2,188 $ 2,039 $ 2,483 $ 2,276 We guarantee certain obligations of our consolidated subsidiaries, which aggregated to $49 million and $63 million at December 31, 2023 and 2022, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The components of lease expense are as follows: 2023 2022 2021 Operating lease expense $ 63 $ 59 $ 58 Variable operating lease expense 26 27 26 Short term lease expense 3 3 4 Lease expense $ 92 $ 89 $ 88 We have operating leases for certain rail cars, office spaces, warehouses and machinery and equipment. We currently have no finance leases. The following is a reconciliation of future undiscounted cash flows to the operating lease liabilities and the related operating lease assets as presented within Other non-current liabilities and Other assets, respectively, on our Consolidated Balance Sheets as of December 31, 2023: 2024 $ 63 2025 52 2026 45 2027 29 2028 14 Thereafter 31 Total future lease payments 234 Less imputed interest 21 Present value of future lease payments 213 Less current lease liabilities 56 Non-current operating lease liabilities $ 157 Operating lease assets $ 208 Supplemental cash flow information arising from lease transactions is as follows: Year Ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 64 $ 60 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 72 $ 52 Year Ended Lease term and discount rate 2023 2022 Weighted average remaining lease term 5.3 years 5.9 years Weighted average discount rate 4.6 % 4.4 % |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes and the provision for income taxes for the years indicated are presented below: 2023 2022 2021 Income before income taxes: U.S. $ 244 $ 111 $ 39 Foreign 595 557 209 Total income before income taxes 839 668 248 Provision for income taxes: Current tax expense: U.S. federal 6 8 2 State and local 5 2 2 Foreign 183 159 180 Total current tax expense 194 169 184 Deferred tax expense (benefit): U.S. federal — 5 (57) State and local 1 (1) (2) Foreign (7) (7) (2) Total deferred tax (benefit) (6) (3) (61) Total provision for income taxes $ 188 $ 166 $ 123 Deferred income taxes are provided for the tax effects of temporary differences between the financial reporting basis and tax basis of assets and liabilities. Significant temporary differences as of December 31, 2023 and 2022, are summarized as follows: 2023 2022 Deferred tax assets attributable to: Employee benefit accruals $ 32 $ 30 Pensions and postretirement plans 16 14 Lease liabilities 54 49 Bad debt 5 6 Inventory reserve 16 22 Net operating loss carryforwards 58 59 Tax credit carryforwards 5 5 Derivative contracts 16 — Uniform capitalization 12 9 Other 35 33 Total deferred tax assets 249 227 Valuation allowances (46) (51) Net deferred tax assets 203 176 Deferred tax liabilities attributable to: Property, plant and equipment 184 175 Identified intangibles 33 48 Right-of-use lease assets 51 46 Foreign withholding and state taxes on unremitted earnings 1 1 Goodwill 35 31 Brazilian indirect tax credits — 4 Derivative contracts — 3 Total deferred tax liabilities 304 308 Net deferred tax liabilities $ 101 $ 132 Of the $58 million of tax-effected net operating loss carryforwards as of December 31, 2023, $42 million are for foreign loss carryforwards, $14 million for state loss carryforwards, and $2 million for U.S. federal loss carryforwards. Of the $42 million of foreign loss carryforwards, $24 million are related to Canada, $5 million to Australia, $4 million to Brazil, $3 million to Argentina, and $3 million to Malaysia with carryforward periods of 20 years, indefinite, indefinite, 5 years and 10 years, respectively. U.S. federal and state loss carryforwards have various expiration periods beginning in 2025. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. Prior to establishing a valuation allowance, we consider historical taxable income, scheduled reversal of deferred tax liabilities, tax planning strategies, tax carryovers and projected future taxable income. As of December 31, 2023, we maintained valuation allowances of $46 million, consisting of $23 million primarily related to foreign loss carryforwards, $14 million for state loss carryforwards, $6 million for state credits and carryforwards, $2 million for U.S. federal loss carryforwards and $1 million for certain foreign tax credits, all of which we have determined will more likely than not expire prior to realization. Net operating loss carryforwards disclosed in the financial statements differ from the as-filed tax returns due to an unrecognized tax benefit. Foreign net operating loss carryforwards and valuation allowances would increase $10 million absent the unrecognized tax benefit. A reconciliation of the U.S. federal statutory tax rate to our effective tax rate follows: 2023 2022 2021 Provision for tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Tax rate difference on foreign income 6.1 7.2 13.3 Foreign currency foreign exchange (1.8) (0.3) 3.2 Inflation adjustments (0.5) (0.6) (4.0) Tax benefit of intercompany financing (0.4) (0.4) (1.6) U.S. international tax implications 1.0 2.2 0.8 Valuation allowance in Argentina — — (0.4) Favorable judgment on the treatment of credits and interest on indirect taxes (0.2) (0.3) (4.8) Unremitted earnings — — (12.1) Impairment charge related to Argentina joint venture — — 35.5 Foreign-derived intangible income (FDII) (1.5) (1.0) — Brazil exclusion of certain tax incentives (1.2) (4.0) — Other items, net (0.1) 1.1 (1.3) Provision at effective tax rate 22.4 % 24.9 % 49.6 % The 2023 statutory tax rates (including surcharges and local jurisdictional taxes when applicable) were 30 percent in Mexico, 32 percent in Germany, 35 percent in Colombia, 39 percent in Pakistan, and 26 percent in Canada, where we have significant operations. In addition, our subsidiary in Brazil has a statutory tax rate of 34 percent before the application of local incentives that vary each year. During 2023, the IRS released Notice 2023-55, to address the final foreign tax credit regulations issued in 2022. The notice was effective in 2023 and provided retroactive relief to fiscal 2022. This increased our ability to claim certain foreign tax credits against U.S. taxes with respect to fiscal years 2022 and 2023. Additionally, during 2023, the Brazilian Government published Law 14.596/23, which established a transfer pricing framework in Brazil that is aligned with the Organization for Economic Co-operation and Development (“OECD”) guidelines. The law was effective January 1, 2024, but our subsidiary in Brazil elected to early adopt the law as of January 1, 2023, which provided a favorable country earnings mix and related increase in our foreign-derived intangible income. As of December 31, 2023, we had a $1 million accrual for foreign withholding on certain unremitted earnings from foreign subsidiaries. No foreign withholding taxes, federal and state taxes or foreign currency gains or losses have been provided on distributions of approximately $2.7 billion of unremitted earnings of our foreign subsidiaries, as such amounts are considered permanently reinvested. It is not practicable to estimate the additional income taxes, including applicable foreign withholding taxes that would be due upon the repatriation of these earnings. A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2023 and 2022 is as follows: 2023 2022 Balance at January 1 $ 30 $ 29 Additions for tax positions related to prior years 1 5 Reductions for tax positions related to prior years (1) (1) Additions based on tax positions related to the current year 1 1 Reductions related to a lapse in the statute of limitations — (4) Balance at December 31 $ 31 $ 30 Of the $31 million of unrecognized tax benefits as of December 31, 2023, $20 million represents the amount that, if recognized, could affect the effective tax rate in future periods. The remaining $11 million includes $10 million of net operating loss carryforwards that would have otherwise had a valuation allowance and $1 million of U.S. federal benefits. We account for interest and penalties related to income tax matters within the provision for income taxes. We have accrued $5 million of interest expense and penalties related to unrecognized tax benefits as of December 31, 2023. We are subject to U.S. federal income tax as well as income tax in multiple states and non-U.S. jurisdictions. The U.S. federal tax returns are subject to audit for the years 2020 through 2023. In general, our foreign subsidiaries remain subject to audit for years 2013 and later. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We sponsor noncontributory defined benefit pension plans (qualified and non-qualified) covering a substantial portion of our employees in the U.S. and Canada and certain employees in other foreign countries. Plans for most salaried employees provide pay-related benefits based on years of service. Plans for hourly employees generally provide benefits based on flat dollar amounts and years of service. Our general funding policy is to make contributions to the plans that comply with minimum funding requirements and are within the limits of deductibility under current tax regulations. Certain foreign countries allow income tax deductions without regard to contribution levels and our policy in those countries is to make contributions required by the terms of the applicable plan. Included in our pension obligation are nonqualified supplemental retirement plans for certain key employees. Benefits provided under these plans are unfunded and we make direct payments to plan participants. We also provide healthcare and/or life insurance benefits for retired employees in the U.S., Canada and Brazil. Healthcare benefits for retirees outside the U.S., Canada and Brazil are generally covered through local government plans. Pension Plans Pension Obligation and Funded Status: The changes in pension benefit obligations and plan assets during 2023 and 2022, as well as the funded status and the amounts recognized in our Consolidated Balance Sheets related to our pension plans at December 31, 2023 and 2022, are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Benefit obligation At January 1 $ 300 $ 383 $ 188 $ 254 Service cost 3 4 4 3 Interest cost 15 9 10 9 Benefits paid (18) (25) (13) (13) Actuarial loss (gain) 5 (71) 8 (49) Curtailment/settlement/amendments — — (1) (2) Foreign currency translation — — 4 (14) Benefit obligation at December 31 $ 305 $ 300 $ 200 $ 188 Fair value of plan assets At January 1 $ 317 $ 420 $ 189 $ 244 Actual return on plan assets 25 (79) 17 (30) Employer contributions 1 1 6 5 Benefits paid (18) (25) (13) (13) Plan settlements — — (1) (2) Foreign currency translation — — 2 (15) Fair value of plan assets at December 31 $ 325 $ 317 $ 200 $ 189 Funded status $ 20 $ 17 $ — $ 1 As of December 31, 2023, the actuarial loss for the U.S. and non-U.S. plans was primarily driven by a decrease in the discount rate compared to the prior year. As of December 31, 2022, the actuarial gain for the U.S. and non-U.S. plans was primarily driven by an increase in discount rates compared to the prior year. Amounts recorded in the Consolidated Balance Sheets as of December 31, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Non-current asset $ 28 $ 25 $ 47 $ 43 Current liabilities (1) (1) (2) (1) Non-current liabilities (7) (7) (45) (41) Net asset (liability) recognized $ 20 $ 17 $ — $ 1 Amounts recorded in AOCL, excluding tax effects that have not yet been recognized as components of net periodic benefit cost at December 31, 2023 and 2022, are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Net actuarial loss $ 32 $ 36 $ 24 $ 24 Prior service (credit) cost (2) (3) — — Net amount recognized $ 30 $ 33 $ 24 $ 24 The amount recognized in AOCL at December 31, 2023 decreased compared to prior year for the U.S. pension plans mainly because the actual return on assets was more than the expected return on assets, which was partially offset by the decrease in discount rates used to measure our obligations under our U.S. pension. The net amount recognized in AOCL at December 31, 2023 for the non-U.S. pension plans as compared to December 31, 2022 was flat primarily due to the actuarial loss amortization, which was offset by foreign currency translation. The accumulated benefit obligation for all defined benefit pension plans was $485 million and $469 million at December 31, 2023 and 2022, respectively. Information for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets is as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Projected benefit obligation $ (8) $ (8) $ (51) $ (45) Accumulated benefit obligation (8) (8) (40) (35) Fair value of plan assets — — 4 3 Components of net periodic benefit cost consist of the following for 2023, 2022 and 2021: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Service cost $ 3 $ 4 $ 4 $ 4 $ 3 $ 4 Interest cost 15 9 8 10 9 9 Expected return on plan assets (17) (16) (17) (9) (7) (8) Amortization of actuarial loss 1 — — 1 1 2 Amortization of prior service credit (1) (1) (1) — — — Net periodic benefit cost $ 1 $ (4) $ (6) $ 6 $ 6 $ 7 Total amounts recorded in other comprehensive income and net periodic benefit cost are as follows: (pre-tax) U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Net actuarial (gain) loss $ (3) $ 25 $ (1) $ — $ (11) $ (11) Prior service cost — — — — — — Amortization of actuarial loss (1) — — (1) (1) (2) Amortization of prior service credit 1 1 1 — — — Foreign currency translation — — — 1 (2) (11) Total recorded in other comprehensive (income) loss (3) 26 — — (14) (24) Net periodic benefit cost 1 (4) (6) 6 6 7 Total recorded in other comprehensive (income) loss and net periodic benefit cost $ (2) $ 22 $ (6) $ 6 $ (8) $ (17) The weighted average assumptions used to determine our obligations for the pension plans are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Discount rate 5.00 % 5.19 % 5.24 % 5.66 % Rate of compensation increase 3.83 3.92 3.76 3.83 Cash balance interest credit rate 4.53 4.21 — — The weighted average assumptions used to determine our net periodic benefit cost for the pension plans are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.19 % 2.91 % 2.58 % 5.67 % 3.66 % 2.84 % Expected long-term return on plan assets 5.50 4.10 4.10 5.05 3.50 3.37 Rate of compensation increase 3.92 4.18 4.26 3.83 3.77 3.54 Cash balance interest crediting rate 4.21 4.11 3.76 — — — For 2023, we assumed an expected long-term rate of return on assets of 5.50 percent for U.S. plans and 4.66 percent for Canadian plans. In developing the expected long-term rate of return assumption on plan assets, which consist mainly of U.S. and Canadian debt and equity securities, we evaluated historical rates of return achieved on plan assets and the asset allocation of the plans, input from our independent actuaries and investment consultants, and historical trends in long-term inflation rates. Projected return estimates are based upon broad equity and bond indices. The discount rate reflects a rate of return on high-quality fixed-income investments that match the duration of the expected benefit payments. We typically use returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption, and we elect to use a full yield curve approach to estimate these components of benefit cost by applying the specific spot rates along the yield curve used to determine the benefit obligation to the relevant projected cash flows. Plan Assets: Our investment policy for our pension plans is to balance risk and return through diversified portfolios of fixed income securities, equity instruments and short-term investments. Maturities for fixed income securities are managed such that sufficient liquidity exists to meet near-term benefit payment obligations. For U.S. pension plans, the weighted average target range allocation of assets was 9 to 19 percent in equities and 81 to 91 percent in fixed income inclusive of other short-term investments. The asset allocation is reviewed regularly, and portfolio investments are rebalanced to the targeted allocation when considered appropriate. Our weighted average asset allocations as of December 31, 2023 and 2022, for U.S. and non-U.S. pension plan assets are as follows: U.S. Plans Non-U.S. Plans Asset Category 2023 2022 2023 2022 Equity securities 12 % 11 % 8 % 8 % Debt securities 86 87 78 77 Cash and other 2 2 14 15 Total 100 % 100 % 100 % 100 % With the exception of cash, which is considered Level 1 in the fair value hierarchy, all significant pension plan assets are held in collective trusts by our U.S. and non-U.S. plans. The fair value of shares of collective trusts are based upon the net asset value (“NAV”) of the fund reported by the fund managers based on quoted market prices of the underlying securities as of the balance sheet date and are considered to be Level 2 fair value measurements. Investments measured at NAV as a practical expedient for fair value, are excluded from the fair value hierarchy. This may produce a fair value measurement that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while we believe our valuation methods are appropriate and consistent with those of other market participants, different methods could result in different fair value measurements at the reporting date. The fair values of our plan assets by asset category are as follows: Fair Value Measurements at December 31, 2023 NAV Level 1 Level 2 Total 2023 2022 2023 2022 2023 2022 2023 2022 U.S. Plans: Equity index: U.S. (a) $ — $ — $ — $ — $ 24 $ 22 $ 24 $ 22 International (b) — — — — 16 14 16 14 Fixed income index: Long bond (c) — — — — 133 127 133 127 Government bond (d) — — — — 89 89 89 89 Other fixed income (e) 57 59 — — — — 57 59 Cash & Short-term Investments (f) — — — — 6 6 6 6 Total U.S. Plans $ 57 $ 59 $ — $ — $ 268 $ 258 $ 325 $ 317 Non-U.S. Plans: Equity index: U.S. (a) $ — $ — $ — $ — $ 10 $ 9 $ 10 $ 9 International (b) — — — — 6 6 6 6 Fixed income index: Government bond (g) — — — — 78 99 78 99 Corporate bond (h) — — — — 79 46 79 46 Other (i) — — — — 25 22 25 22 Cash & Short-term Investments (f) — — 2 2 — 5 2 7 Total Non-U.S. Plans $ — $ — $ 2 $ 2 $ 198 $ 187 $ 200 $ 189 ______________________ (a) This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities. (b) This category consists of both passively and actively managed equity index funds that track an index of returns on international developed and emerging market equities. (c) This category consists of an actively managed fixed-income index fund that invests in a diversified portfolio of fixed-income securities with maturities generally exceeding 10 years. (d) This category consists of both passively and actively managed fixed-income index funds that invest in a diversified portfolio of fixed income government debt securities with varying maturities. (e) This category consists of an actively managed common collective fund that invests in government bonds, collateralized mortgage obligations, investment grade private credit and real estate debt. This fund is priced monthly at the aggregated market value of the underlying investments and may be fully redeemed with 95 days notice. (f) This category represents cash, cash equivalents, or highly liquid short-term investments. (g) This category consists of both passively and actively managed fixed income index funds that track the return of government bonds with varying maturities. (h) This category consists of actively managed fixed income index funds that track the return of investment grade corporate bonds with varying maturities. (i) This category mainly consists of investment products provided by insurance companies that offer returns that are subject to a minimum guarantee and mutual funds. During 2023, we made cash contributions of $1 million to our U.S. pension plans and $6 million to our non-U.S. pension plans. We anticipate that in 2024 we will make cash contributions of $1 million to our U.S. pension plans and $4 million to our non-U.S. pension plans. Cash contributions in subsequent years will depend on a number of factors, including the performance of plan assets. We expect to pay the following benefit payments to beneficiaries, which reflect anticipated future service, as appropriate: U.S. Plans Non-U.S. Plans 2024 $ 26 $ 12 2025 26 12 2026 26 12 2027 27 13 2028 24 38 Thereafter 114 73 We also maintain defined contribution plans. We make matching contributions to these plans that are subject to certain vesting requirements and are based on a percentage of employee contributions. The expense for defined contribution plans was $28 million in 2023, $22 million for 2022, and $22 million in 2021. Postretirement Benefit Plans Our postretirement benefit plans currently are not funded. The information presented below includes plans in the U.S., Brazil and Canada. The changes in the benefit obligations of the plans during 2023 and 2022, as well as the amounts recognized in our Consolidated Balance Sheets at December 31, 2023 and 2022, are as follows: 2023 2022 Accumulated postretirement benefit obligation At January 1 $ 58 $ 65 Service cost 1 1 Interest cost 4 3 Amendments 2 — Actuarial (gain) loss 1 (7) Benefits paid (4) (4) Foreign currency translation 2 — At December 31 64 58 Fair value of plan assets — — Funded status $ (64) $ (58) As of December 31, 2023, the actuarial loss was insignificant. As of December 31, 2022, the actuarial gain was mainly driven by higher discount rates. Amounts recorded in the Consolidated Balance Sheets at December 31, 2023 and 2022 consist of: 2023 2022 Current liabilities $ (4) $ (5) Non-current liabilities (60) (53) Net liability recognized $ (64) $ (58) Amounts recorded in AOCL, excluding tax effects that have not yet been recognized as components of net periodic benefit cost at December 31, 2023 and 2022, are as follows: 2023 2022 Net actuarial loss $ 4 $ 1 Prior service cost 6 5 Net amount recognized $ 10 $ 6 Components of net periodic benefit cost consisted of the following for 2023, 2022 and 2021: 2023 2022 2021 Service cost $ 1 $ 1 $ 1 Interest cost 4 3 2 Amortization of actuarial (gain) loss (1) — 1 Amortization of prior service cost (credit) 1 — (2) Net periodic benefit cost $ 5 $ 4 $ 2 Total amounts recorded in other comprehensive income and net periodic benefit cost for 2023, 2022 and 2021 are as follows: (pre-tax) 2023 2022 2021 Net actuarial loss (gain) $ 1 $ (7) $ (5) Prior service cost 2 — 4 Amortization of prior service (cost) credit (1) — 2 Amortization of actuarial gain (loss) 1 — (1) Foreign currency translation 1 — (4) Total recorded in other comprehensive loss (income) 4 (7) (4) Net periodic benefit cost 5 4 2 Total recorded in other comprehensive loss (income) and net periodic benefit cost $ 9 $ (3) $ (2) We used the following weighted average assumptions to determine our postretirement benefit obligations for 2023 and 2022: 2023 2022 Discount rate 7.37 % 7.30 % The following weighted average assumptions were used to determine our net postretirement benefit cost: 2023 2022 2021 Discount rate 7.30 % 4.22 % 3.69 % The discount rate reflects a rate of return on high-quality fixed-income investments that match the duration of expected benefit payments. We typically use returns on long-term, high-quality corporate AA bonds as a benchmark in establishing this assumption. The healthcare cost trend rates used in valuing our postretirement benefit obligations are established based upon actual healthcare trends and consultation with actuaries and benefit providers. We used the following assumptions as of December 31, 2023: U.S. Canada Brazil 2023 increase in per capita cost 7.80 % 5.04 % 8.94 % Ultimate trend 4.50 % 4.05 % 8.94 % Year ultimate trend reached 2033 2040 2023 We expect to make the following benefit payments to beneficiaries under our postretirement benefit plans, which reflect anticipated future service, as appropriate: 2024 $ 4 2025 4 2026 4 2027 4 2028 4 Thereafter 22 Multi-employer Plan Ingredion participates in and contributes to one multi-employer benefit plan under the terms of collective bargaining agreements that cover certain union-represented employees and retirees in the U.S. The plan covers medical and dental benefits for active hourly employees and retirees represented by the United Steelworkers Union for certain U.S. locations. The risks of participating in this multi-employer plan are different from risk of participating in single-employer plans. This plan receives contributions from two or more unrelated employers pursuant to one or more collective bargaining agreements, and the assets contributed by one employer may be used to fund the benefits of all employees covered within the plan. We are required to make contributions to this multi-employer plan as determined by the terms and conditions of the collective bargaining agreements and plan terms, but we do not provide more than five percent of the total contributions to the plan. We made regular contributions to the plan of $11 million in 2023, $10 million in 2022, and $14 million in 2021. We cannot currently estimate the amount of multi-employer plan contributions that will be required in 2024 and future years, but these contributions could increase due to healthcare cost trends. The North Kansas City retiree medical group shifted from a multi-employer plan to the Ingredion Post Retirement Medical Health and Life Plan at the end of 2021. The remaining collective bargaining agreements associated with the multi-employer plan expire during 2024 through 2027. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Equity | Equity Preferred stock: We have authorized 25 million shares of $0.01 par value preferred stock, none of which were issued or outstanding at December 31, 2023 and 2022. Treasury stock: On September 26, 2022, the Board of Directors approved a stock repurchase program authorizing us to purchase up to 6.0 million shares of our outstanding common stock until December 31, 2025. We may repurchase shares from time to time in the open market, in privately negotiated transactions, or otherwise, at prices we deem appropriate. We are not obligated to repurchase any shares under the authorization, and the repurchase program may be suspended, discontinued or modified at any time, for any reason and without notice. The parameters of our stock repurchase program are not established solely with reference to the dilutive impact of shares issued under our stock incentive plan. However, we expect that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan. During 2023, we repurchased 1.0 million outstanding shares of common stock in open market transactions at a net cost of $101 million. During 2022, pursuant to our previous stock repurchase program which has since been terminated, we repurchased 1.3 million shares of common stock in open market transactions at a net cost of $112 million. Common stock share activity for 2023, 2022 and 2021 is as follows: (Shares of common stock, in thousands) Issued Held in Treasury Outstanding Balance at December 31, 2020 77,811 10,795 67,016 Issuance of restricted stock units as compensation — (69) 69 Performance shares and other share-based awards — (6) 6 Stock options exercised — (331) 331 Purchase/acquisition of treasury stock — 765 (765) Balance at December 31, 2021 77,811 11,154 66,657 Issuance of restricted stock units as compensation — (95) 95 Performance shares and other share-based awards — (43) 43 Stock options exercised — (182) 182 Purchase/acquisition of treasury stock — 1,283 (1,283) Balance at December 31, 2022 77,811 12,117 65,694 Issuance of restricted stock units as compensation — (108) 108 Performance shares and other share-based awards — (51) 51 Stock options exercised — (386) 386 Purchase/acquisition of treasury stock — 1,000 (1,000) Balance at December 31, 2023 77,811 12,572 65,239 Share-based payments : Share-based compensation expense for 2023, 2022 and 2021 is as follows: 2023 2022 2021 Stock options: Pre-tax compensation expense $ 4 $ 4 $ 3 Income tax benefit — — — Stock option expense, net of income taxes 4 4 3 Restricted stock units (“RSUs”): Pre-tax compensation expense 15 13 12 Income tax benefit (2) (1) (1) RSUs, net of income taxes 13 12 11 Performance shares and other share-based awards: Pre-tax compensation expense 14 12 8 Income tax benefit (1) (1) (1) Performance shares and other share-based compensation expense, net of income taxes 13 11 7 Total share-based compensation: Pre-tax compensation expense 33 29 23 Income tax benefit (3) (2) (2) Total share-based compensation expense, net of income taxes $ 30 $ 27 $ 21 We have a stock incentive plan (“SIP”) that was approved on May 19, 2023 and which is administered by the People, Culture and Compensation Committee (“Compensation Committee”) of our Board of Directors that provides for the granting of stock options, restricted stock, restricted stock units and other share-based awards to certain key employees. A maximum of 5.4 million shares were originally authorized for awards under the SIP. As of December 31, 2023, 5.4 million shares were available for future grants under the SIP. Shares covered by awards that expire, terminate or lapse will again be available for the grant of awards under the SIP. Stock Options: Under the SIP, stock options are granted at exercise prices that equal the market value of the underlying common stock on the date of grant. The options have a 10-year term and are exercisable upon vesting, which occurs over a three-year period at the anniversary dates of the date of grant. We granted non-qualified options to purchase 197 thousand, 281 thousand and 358 thousand shares for 2023, 2022 and 2021, respectively. The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Year Ended December 31, 2023 2022 2021 Expected life (in years) 5.5 5.5 5.5 Risk-free interest rate 4.0 % 2.0 % 0.6 % Expected volatility 28.3 % 23.8 % 23.2 % Expected dividend yield 2.9 % 2.9 % 2.9 % The expected life of options represents the weighted average period that we expect options granted to be outstanding giving consideration to vesting schedules and our historical exercise patterns. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the grant date for the period corresponding to the expected life of the options. Expected volatility is based on historical volatilities of our common stock, and dividend yields are based on our dividend yield at the date of issuance. Stock option activity in 2023 is as follows: Number of Options Weighted Average Exercise Price per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2022 2,222 $ 92.32 5.16 $ 24 Granted 197 98.69 Exercised (386) 71.76 Cancelled (80) 102.66 Outstanding as of December 31, 2023 1,953 $ 96.61 4.97 $ 29 Exercisable as of December 31, 2023 1,523 $ 97.80 4.03 $ 22 For 2023, 2022 and 2021, cash received from the exercise of stock options was $28 million, $11 million and $21 million, respectively. As of December 31, 2023, the unrecognized compensation cost related to non-vested stock options totaled $3 million, which is expected to be amortized over the weighted-average period of approximately 1.6 years. Additional information pertaining to stock option activity is as follows: Year Ended December 31, 2023 2022 2021 Weighted average grant date fair value of stock options granted (per share) $ 23.80 $ 15.04 $ 12.31 Total intrinsic value of stock options exercised 13 6 10 Restricted Stock Units: We have granted restricted stock units (“RSUs”) to certain key employees. The RSUs are primarily subject to cliff vesting, generally after three years, provided the employee remains in our service. The fair value of the RSUs is determined based upon the number of shares granted and the quoted market price of our common stock at the grant date. RSU activity in 2023 is as follows: (shares in thousands) Number of Weighted Non-vested at December 31, 2022 517 $ 88.04 Granted 222 98.15 Vested (154) 87.91 Cancelled (33) 91.30 Non-vested at December 31, 2023 552 $ 92.05 The total fair value of RSUs that vested in each of 2023, 2022 and 2021 was $12 million. At December 31, 2023, the total remaining unrecognized compensation cost related to RSUs was $20 million, which will be amortized on a weighted-average basis over approximately 1.7 years. Recognized compensation cost related to unvested RSUs is included in Share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $28 million for both December 31, 2023 and 2022, respectively. Performance Shares: We have a long-term incentive plan for senior management in the form of performance shares. The vesting of the performance shares is generally based on two performance metrics. Fifty percent of the performance shares awarded vest based on our total shareholder return as compared to the total shareholder return of our peer group and the remaining fifty percent vest based on the calculation of our three-year average Adjusted Return on Invested Capital (“ROIC”) against an established ROIC target. The 2021 performance shares were granted in two tranches. Vesting for the first tranche was split evenly between our total shareholder return and Adjusted ROIC against the applicable target. The second tranche of performance share awards vest 100 percent based on the calculation of Adjusted ROIC against the applicable target. For the 2023 performance shares awarded based on our total shareholder return, the number of shares that ultimately vest can range from zero to 200 percent of the grant depending on our total shareholder return as compared to the total shareholder return of our peer group. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the Compensation Committee of the Board of Directors. Compensation expense is based on the fair value of the performance shares at the grant date, established using a Monte Carlo simulation model. The total compensation expense for these awards is amortized over a three-year graded vesting schedule. For the 2023 performance shares awarded based on Adjusted ROIC, the number of shares that ultimately vest can range from zero to 200 percent of the grant depending on our Adjusted ROIC performance against the target. The share award vesting will be calculated at the end of the three-year period and is subject to approval by management and the Compensation Committee. Compensation expense is based on the market price of our common stock on the grant date and the final number of shares that ultimately vest. We estimate the potential share vesting at least annually to adjust the compensation expense for these awards over the vesting period to reflect our estimated Adjusted ROIC performance against the target. The total compensation expense for these awards is amortized over a three-year graded vesting schedule. We awarded 93 thousand, 86 thousand and 108 thousand performance shares in 2023, 2022 and 2021, respectively. The weighted average fair value of the shares granted during 2023, 2022 and 2021 was $114.26, $138.85 and $100.29, respectively. The 2020 performance share awards that vested during 2023 achieved a 77 percent payout of the granted performance shares. As of December 31, 2023, the 2021 performance share awards are estimated to pay out at 200 percent. Additionally, there were 34 thousand shares cancelled during 2023. As of December 31, 2023, the unrecognized compensation cost relating to these plans was $8 million, which will be amortized over the remaining requisite service periods of 1.8 years. Recognized compensation cost related to these unvested awards is included in Share-based payments subject to redemption in the Consolidated Balance Sheets and totaled $27 million and $20 million at December 31, 2023 and 2022, respectively. Other share-based awards under the SIP: Under the compensation agreement with the Board of Directors, $150,000 of a non-employee director’s annual retainer is paid in Company common stock. A director may elect to defer all or a portion of the director's common stock or cash compensation, in shares of restricted stock units. These restricted units may not be transferred until a date not less than six months and no more than ten years and six months after the director’s termination of service from the Board of Directors, at which time the restricted units will be settled by delivering shares of common stock with fractional shares to be paid in cash. The compensation expense relating to this plan included in the Consolidated Statements of Income was approximately $2 million in each of 2023, 2022 and 2021. At December 31, 2023, there were approximately 235 thousand restricted stock units outstanding under this plan at a carrying value of approximately $15 million. Accumulated Other Comprehensive Loss: A summary of Accumulated other comprehensive loss for 2023, 2022 and 2021 is presented below: Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) income before reclassification adjustments (100) 218 28 146 Loss (income) reclassified from accumulated other comprehensive loss 311 (209) — 102 Tax (provision) — (3) (9) (12) Net other comprehensive income 211 6 19 236 Balance, December 31, 2021 (903) 48 (42) (897) Other comprehensive (loss) income before reclassification adjustments (105) 210 (5) 100 (Income) reclassified from accumulated other comprehensive loss — (268) — (268) Tax benefit — 16 1 17 Net other comprehensive (loss) (105) (42) (4) (151) Balance, December 31, 2022 (1,008) 6 (46) (1,048) Other comprehensive income (loss) before reclassification adjustments 47 (151) (2) (106) Loss reclassified from accumulated other comprehensive loss — 78 1 79 Tax benefit — 19 — 19 Net other comprehensive income (loss) 47 (54) (1) (8) Balance, December 31, 2023 $ (961) $ (48) $ (47) $ (1,056) Supplemental Information : The following table provides the computation of basic and diluted earnings per common share (“EPS”). 2023 2022 2021 Net Income Weighted Per Net Income Weighted Per Net Income Weighted Per Basic EPS $ 643 66.0 $ 9.74 $ 492 66.2 $ 7.43 $ 117 67.1 $ 1.74 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 1.0 0.8 0.7 Diluted EPS $ 643 67.0 $ 9.60 $ 492 67.0 $ 7.34 $ 117 67.8 $ 1.73 Approximately 0.5 million, 1.4 million and 0.9 million share-based awards of common stock were excluded for 2023, 2022 and 2021, respectively, from the calculation of the weighted average number of shares outstanding for diluted EPS because their effects were anti-dilutive. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are principally engaged in the production and sale of starches and sweeteners for a wide range of industries and we are managed geographically on a regional basis. The nature, amount, timing and uncertainty of our Net sales are managed by us primarily based on our geographic segments, which we classify and report as North America, South America, Asia-Pacific and EMEA. Our North America segment includes businesses in the U.S., Mexico and Canada. Our South America segment includes businesses and our share of earnings from investments in joint ventures in Brazil, Colombia, Peru, Ecuador and Argentina. Our Asia-Pacific segment includes businesses in Thailand, China, Japan, Australia, Indonesia, India, the Philippines, Malaysia, Singapore, New Zealand, Vietnam and previously South Korea, in which we sold our business on February 1, 2024, as more fully described in Note 2. Our EMEA segment includes businesses in Germany, Pakistan, the United Kingdom, South Africa and Poland. In November 2023, we announced plans to reorganize our business operations, which will result in a change to our reportable business segments. Once the reorganization is complete, which we expect to occur in 2024, we anticipate that our production assets and commercial efforts will align with a global focus on Texture and Healthful Solutions, a local focus on Food and Industrial Ingredients, and other businesses. We will continue to report our results using the existing reportable segment structure until the new segments are operational and discrete financial information consistent with the new segments is being provided to our Chief Operating Decision Maker. Net sales to unaffiliated customers by reportable segment are as follows: 2023 2022 2021 Net sales to unaffiliated customers: North America $ 5,188 $ 4,934 $ 4,137 South America 1,062 1,124 1,057 Asia-Pacific 1,089 1,107 997 EMEA 821 781 703 Total net sales $ 8,160 $ 7,946 $ 6,894 No customer accounted for 10 percent or more of our net sales in 2023, 2022 or 2021. Operating income by reportable segment is as follows: 2023 2022 2021 Operating income: North America $ 718 $ 565 $ 487 South America 142 169 138 Asia-Pacific 126 93 87 EMEA 156 110 106 Corporate (173) (150) (133) Subtotal 969 787 685 Acquisition/integration costs — (1) (3) Restructuring/impairment charges (11) (4) (47) Impairment on disposition of assets — — (340) Other matters (1) (20) 15 Total operating income $ 957 $ 762 $ 310 Total assets by reportable segment as of December 31, 2023 and 2022 are as follows: As of December 31, 2023 2022 Assets: North America (a) $ 4,485 $ 4,499 South America 980 949 Asia-Pacific 1,479 1,467 EMEA 698 646 Total assets $ 7,642 $ 7,561 _____________________ (a) For purposes of presentation, North America includes Corporate assets. Depreciation and amortization, mechanical stores expense and capital expenditures and mechanical stores purchases by reportable segment are as follows: 2023 2022 2021 Depreciation and amortization: North America (a) $ 146 $ 145 $ 146 South America 19 18 18 Asia-Pacific 39 37 40 EMEA 15 15 16 Total $ 219 $ 215 $ 220 Mechanical stores expense (b): North America (a) $ 47 $ 43 $ 43 South America 6 4 6 Asia-Pacific 5 4 3 EMEA 4 4 3 Total $ 62 $ 55 $ 55 Capital expenditures and mechanical stores purchases: North America (a) $ 183 $ 178 $ 166 South America 42 31 38 Asia-Pacific 68 72 81 EMEA 23 19 15 Total $ 316 $ 300 $ 300 _____________________ (a) North America includes Corporate activities. (b) Represents costs for spare parts used in the production process that are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost. Net sales to unaffiliated customers by country of origin are as follows: 2023 2022 2021 U.S. $ 3,069 $ 2,978 $ 2,509 Mexico 1,571 1,444 1,170 Brazil 669 720 586 Canada 548 512 459 Germany 413 342 309 Colombia 332 333 260 South Korea 325 356 323 Others 1,233 1,261 1,278 Total $ 8,160 $ 7,946 $ 6,894 Long-lived assets (excluding intangible assets and deferred tax assets) by country as of December 31, 2023 and 2022 are as follows: 2023 2022 U.S. $ 1,312 $ 1,289 Mexico 294 309 Canada 288 273 Brazil 235 209 China 164 144 Thailand 162 153 Germany 133 126 Others 338 435 Total $ 2,926 $ 2,938 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies In October 2022, the Brazilian Superior Court of Justice issued a motion of clarification that certain tax incentives provided by local governments can be excluded from taxable income. In the fourth quarter of 2022, we filed an action for a right to recover previously taxable, local government tax incentives granted during fiscal years 2018 to 2022. As our recovery is probable, we recorded a $27 million income tax benefit, which we expect to recover by the end of 2027. As of December 31, 2023 and 2022, we had $32 million and $27 million, respectively, of remaining tax incentives recorded within Other assets on the Consolidated Balance Sheets. In May 2021, the Brazilian Supreme Court (“Court”) issued its ruling related to the calculation of certain indirect taxes (referred as “Brazil indirect tax matters” in these financial statements), which affirmed the Brazil Federal Court of Appeals (“Lower Court”) rulings that we had received in previous years and affirmed that we are entitled to previously recorded tax credits. The Court ruling ensured that we are entitled to $15 million of additional credits from the period of 2015 to 2018 that was previously unrecorded pending a final Court ruling. We recorded the $15 million of additional credits in 2021 within Other operating (income) expense in the Consolidated Statements of Income. As of December 31, 2023 and 2022, we had $5 million and $17 million, respectively, of remaining indirect tax credits recorded in Other assets and Prepaid expenses and assets held for sale on our Consolidated Balance Sheets. We will use the income tax offsets to eliminate our Brazilian federal tax payments in 2024, including the income tax payable for the indirect taxes recovered. We are currently subject to claims and suits arising in the ordinary course of business, including labor matters, certain environmental proceedings and other commercial claims. We also routinely receive inquiries from regulators and other government authorities relating to various aspects of our business, including with respect to compliance with laws and regulations relating to the environment, and at any given time we have matters at various stages of resolution with the applicable governmental authorities. The outcomes of these matters are not within our complete control and may not be known for prolonged periods of time. We do not believe that the results of currently known legal proceedings and inquires will be material to us. There can be no assurance, however, that such proceedings, matters, claims, suits or investigations or those arising in the future, whether taken individually or in the aggregate, will not have a material adverse effect on our financial condition or results of operations. |
Supplementary Information
Supplementary Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Information | |
Supplementary Information | Supplementary Information Accounts Receivable, Net Accounts receivable, net as of December 31, 2023 and 2022 were as follows: 2023 2022 Accounts receivable — trade $ 1,145 $ 1,200 Accounts receivable — other 154 228 Allowance for credit losses (20) (17) Total accounts receivable, net $ 1,279 $ 1,411 Write-offs of accounts receivable were immaterial in 2023 and 2022. There wer e no significant contract assets associated with customers as of December 31, 2023 or 2022. Inventories Inventories as of December 31, 2023 and 2022 were as follows: 2023 2022 Finished and in process $ 926 $ 962 Raw materials 434 539 Manufacturing supplies 90 96 Total inventories $ 1,450 $ 1,597 PP&E, net PP&E, net as of December 31, 2023 and 2022 were as follows: 2023 2022 Land $ 178 $ 199 Buildings 853 854 Machinery and equipment 4,767 4,680 Property, plant and equipment, at cost 5,798 5,733 Accumulated depreciation (3,428) (3,326) Property, plant and equipment, net $ 2,370 $ 2,407 We recorded capitalized interest to PP&E of $3 million in 2023, $4 million in 2022, and $4 million in 2021. We recognized depreciation expense of $193 million in 2023, $189 million in 2022, and $194 million in 2021. Supply Chain Finance Programs Under supply chain finance programs administered by third-party banks, our suppliers have the opportunity to sell receivables due from us to participating financing institutions and receive earlier payment at a discount. Our responsibility is limited to making payment on the terms originally negotiated with our supplier, regardless of whether such supplier sells its receivable to a financial institution. The payment terms we negotiate with a supplier are independent of whether such supplier participates in a supply chain finance program, and participation in any such program by a supplier has no effect on our income or cash flows. As of December 31, 2023 and 2022, participating financial institutions held $153 million and $175 million, respectively, of our liabilities recorded in Accounts payable Accrued Liabilities and Liabilities Held for Sale Accrued liabilities as of December 31, 2023 and 2022 are as follows: 2023 2022 Compensation-related costs $ 121 $ 112 Current lease liabilities 56 48 Dividends payable 51 47 Taxes payable other than income taxes 46 45 Liabilities held for sale 51 — Other accrued liabilities 221 214 Total accrued liabilities and liabilities held for sale $ 546 $ 466 There wer e no s ignificant contract liabilities associated with our customers as of December 31, 2023 and 2022. Liabilities for volume discounts and incentives were also not significant as of December 31, 2023 and 2022. Other Non-Current Liabilities Other non-current liabilities as of December 31, 2023 and 2022 were as follows: 2023 2022 Non-current operating lease liabilities $ 157 $ 146 Pension and postretirement liabilities 117 101 Deferred tax liabilities 116 145 Other 90 85 Total other non-current liabilities $ 480 $ 477 Supplemental Statements of Income Information Research and development (“R&D”) expense was approximately $63 million, $52 million and $43 million in 2023, 2022 and 2021, respectively. Our R&D expense, which we record in Operating expenses in the Consolidated Statements of Income, represents investments in new product development and innovation. Supplemental Cash Flow Information The following represents additional cash flow information: 2023 2022 2021 Interest paid $ 96 $ 82 $ 72 Income taxes paid 157 187 168 Quarterly Financial Data (Unaudited) Earnings per share for each quarter and the year are calculated individually and may not sum to the total for the respective year. Summarized quarterly financial data was as follows: 1 st QTR 2 nd QTR 3 rd QTR 4 th QTR 2023 Net sales $ 2,137 $ 2,069 $ 2,033 $ 1,921 Gross profit 487 441 421 400 Net income attributable to Ingredion 191 163 158 131 Basic earnings per common share of Ingredion 2.89 2.46 2.39 2.00 Diluted earnings per common share of Ingredion 2.85 2.42 2.36 1.97 Per share dividends declared $ 0.71 $ 0.71 $ 0.78 $ 0.78 1 st QTR 2 nd QTR 3 rd QTR 4 th QTR 2022 Net sales $ 1,892 $ 2,044 $ 2,023 $ 1,987 Gross profit 379 390 374 351 Net income attributable to Ingredion 130 142 106 114 Basic earnings per common share of Ingredion 1.94 2.14 1.61 1.73 Diluted earnings per common share of Ingredion 1.92 2.12 1.59 1.71 Per share dividends declared $ 0.65 $ 0.65 $ 0.71 $ 0.71 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||||||||||
Net income attributable to Ingredion | $ 131 | $ 158 | $ 163 | $ 191 | $ 114 | $ 106 | $ 142 | $ 130 | $ 643 | $ 492 | $ 117 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of the Business a_2
Description of the Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation : The Consolidated Financial Statements consist of the accounts of Ingredion, including all subsidiaries. Intercompany accounts and transactions are eliminated in consolidation. |
Use of estimates | Use of estimates : The preparation of the accompanying Consolidated Financial Statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates and assumptions about future events. These estimates and the underlying assumptions affect the amounts of assets and liabilities reported, disclosures about contingent assets and liabilities, and reported amounts of revenues and expenses. Such estimates and assumptions impact the value of purchase consideration, accounts receivable, inventories, certain investments, goodwill, intangible assets and other long-lived assets, legal contingencies, income taxes, and pension and other postretirement benefits, among others. These estimates and assumptions are based on our best estimates and judgment. We evaluate our estimates and assumptions on an ongoing basis using historical experience and other factors, including the current economic environment, which we believe to be reasonable under the circumstances. We will adjust such estimates and assumptions when facts and circumstances dictate. Corn price volatility, adverse changes in the global economic environment, foreign currency devaluations versus the U.S. dollar, and access to credit markets increase the uncertainty inherent in such estimates and assumptions. As future events and their effects cannot be determined with precision, actual results could differ significantly from these estimates. Changes in these estimates will be reflected in the financial statements in future periods. |
Foreign currency translation | Foreign currency translation: Assets and liabilities of foreign subsidiaries, other than those whose functional currency is the U.S. dollar, are translated at current exchange rates with the related translation adjustments reported in equity as a component of Accumulated other comprehensive loss (“AOCL”), and income statement accounts are translated at the average exchange rate during the period. The U.S. dollar is the functional currency for our subsidiaries in Mexico and Argentina, and we translate their monetary assets and liabilities at current exchange rates with the related adjustment included in financing costs in our Consolidated Statements of Income. Non-monetary assets and liabilities are translated at historical exchange rates with the related translation adjustments included in AOCL in our Consolidated Balance Sheets. |
Revenue recognition | Revenue recognition: Ingredion recognizes revenue under the core principle to depict our transfer of products and solutions to customers in amounts that reflect the consideration we expect to receive. To achieve that core principle, we apply the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. We identify customer purchase orders, which in some cases are governed by a master sales agreement, as the contracts with our customers. For each contract, we consider the transfer of products, each of which is distinct, to be the identified performance obligation. The pricing model can be fixed or variable within the contract. The variable pricing model is based on historical commodity pricing and is determinable before we complete the performance obligation. To determine the transaction price for the contract performance obligations, we also evaluate whether the price could be adjusted, and we may reduce the transaction price for certain sales adjustments such as volume incentive discounts and other discount arrangements. We estimate transaction price adjustments using the expected value method based on our analysis of historical volume incentives or discounts over a period considered adequate to account for current pricing and business trends. Historically, actual volume incentives and discounts relative to those estimated and included when determining the transaction price have not materially differed. We accrue volume incentives and discounts in Accrued liabilities and liabilities held for sale in the Consolidated Balance Sheets when we satisfy the performance obligation. We consider the product price as specified in the contract, net of any discounts, as the standalone selling price as it is an observable input that represents the price if we sold the product to a similar customer in similar circumstances. We do not recognize any significant financing components since payment is due shortly after we satisfy our performance obligation. We recognize revenue when we satisfy our performance obligation and control is transferred to the customer, which occurs at a point in time, either upon delivery to an agreed upon location or to the customer. Further, in determining whether control has transferred, we consider if there is a present right to payment and legal title, along with risks and rewards of ownership having transferred to the customer. Shipping and handling activities related to contracts with customers represent fulfillment costs and are recorded in Cost of sales in the Consolidated Statements of Income. Taxes assessed by governmental authorities and collected from customers are accounted for on a net basis and excluded from net sales. We expense costs to obtain a contract when we incur the costs since most contracts are one year or less. These costs primarily include our internal sales force compensation. Under the terms of these programs, the compensation is generally earned, and the costs are recognized when we recognize the revenue. From time to time, we may enter into long-term contracts with our customers. Historically, such contracts do not result in significant contract assets or liabilities. Any such arrangements are accounted for in Other assets or Accrued liabilities and liabilities held for sale in the Consolidated Balance Sheets. |
Cash and cash equivalents | Cash and cash equivalents: Cash equivalents consist of all instruments purchased with an original maturity of three months or less and that have virtually no risk of loss in value. |
Accounts receivable | Accounts receivable : Accounts receivable consists of trade and other receivables carried at approximate fair value, net of an allowance for credit losses. The allowance for credit losses is determined using our best estimate of expected credit losses based on historical experience and current forecasts of future economic conditions, and we adjust this estimate over the life of the receivable as needed. |
Inventories | Inventories: Inventories are stated at the lower of cost or net realizable value. Costs are predominantly determined using the weighted average method. |
Long-term investments | Long-term investments: We hold marketable securities and equity investments, which we include in Other assets in the Consolidated Balance Sheets. Marketable securities are carried at fair value and we record changes in fair value to Other operating (income) expense in the Consolidated Statements of Income if we maintain the securities for processing transactions that directly support operating activities; otherwise, we record changes in fair value to Other non-operating (income) expense in the Consolidated Statements of Income. Equity investments in companies for which we do not have the ability to exercise significant influence are accounted for at fair value, with changes in fair value recorded in Other non-operating expense (income) in the Consolidated Statements of Income. Equity securities without readily determinable fair values are carried at cost, less impairments, if any, and adjusted for observable price changes for the identical or a similar investment of the same issuer. We perform a qualitative impairment assessment to determine if such investments are impaired, which considers all available information, including declines in the financial performance of the issuing entity, the issuing entity’s operating environment and general market conditions. Impairments of equity securities without readily determinable fair value are recorded in Other non-operating expense (income) in the Consolidated Statements of Income. Equity investments in companies for which we have the ability to exercise significant influence, but not control, are accounted for using the equity method of accounting. Our share of the earnings or losses reported by equity method investees is recognized in Other operating (income) expense in the Consolidated Statements of Income. Each reporting period, we evaluate declines in the fair value of equity method investments below carrying value to determine if any are other-than-temporary and if so, we write down the investment to its estimated fair value. Impairments are recognized in Restructuring/impairment charges in the Consolidated Statements of Income. |
Leases | Leases: We determine if an arrangement contains a lease, as well as its classification as an operating lease or finance lease, at the inception of the agreement. Lease assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Lease assets and liabilities are recognized at the lease commencement date based on the present value of future lease payments over the lease term. The commencement date used for the calculation of the lease obligations recorded is the latter of the lease start date or January 1, 2019, which is when we adopted Accounting Standards Codification (“ASC”) 842. As most of our leases do not provide an implicit rate, we use an incremental borrowing rate based on the information available at the commencement date to determine the present value of lease payments. The lease asset value includes in our calculation any prepaid lease payments made and any lease incentives received from the arrangement as a reduction of the asset. Certain leases have options to terminate or extend the life of the lease, which we include in the lease asset and lease liability calculation when we have sole discretion to exercise the option and it is reasonably certain we will. We do not separate lease and non-lease components for our leases when it is impracticable to separate them, such as leases with variable payment arrangements. We have certain leases that have variable payments based solely on output or usage of the leased asset, which we do not record in our Consolidated Balance Sheets, but expense as incurred. Lease expense is recognized on a straight-line basis over the lease term. Leases with an initial term of twelve months or less are not recorded on the Consolidated Balance Sheets. |
Property, plant and equipment and definite-lived intangible assets | Property, plant and equipment and definite-lived intangible assets: Property, plant and equipment (“PP&E”) is stated at cost less accumulated depreciation and definite-lived intangible assets are stated at cost less accumulated amortization. For PP&E, depreciation is generally computed on the straight-line basis over the estimated useful lives of depreciable assets, which range from 25 to 50 years for buildings and from two two |
Assets held for sale | Assets held for sale: We classify long-lived assets or disposal groups as held for sale in the period when all of the following conditions have been met: • we have approved and committed to a plan to sell the assets or disposal group, • the asset or disposal group is available for immediate sale in its present condition, • an active program to locate a buyer and other actions required to complete the sale have been initiated, • the sale of the asset or disposal group is probable and expected to be completed within one year, • the asset or disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value, and • it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. When all the held for sale criteria are met, we initially measure a long-lived asset or disposal group that is classified as held for sale at the lower of its carrying value or the fair value less any costs to sell, recognize any resulting losses, and cease depreciation and amortization of the long-lived asset or assets within a disposal group. Until the date of sale or until the asset or disposal group are no longer classified as held for sale, we assess fair value less any costs to sell and recognize any resulting losses at each reporting period. Gains are not recognized until the date of the sale. |
Indefinite-lived intangible assets and goodwill | Indefinite-lived intangible assets and goodwill : We have certain indefinite-lived intangible assets in the form of tradenames and trademarks. Our methodology for allocating the purchase price of acquisitions is based on established valuation techniques that reflect the consideration of a number of factors, including valuations performed by third-party appraisers when appropriate. Goodwill represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. We assess indefinite-lived intangible assets and goodwill for impairment annually (or other circumstances requiring assessment), which we perform as of July 1 of each year. In testing indefinite-lived intangible assets for impairment, we first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is greater than its carrying amount. If not, then we determine the fair value of the indefinite-lived intangible assets by performing a quantitative impairment analysis that considers various factors, including net sales derived from these intangibles and certain market and industry conditions. In testing goodwill for impairment, we first assess qualitative factors to determine whether it is more-likely-than-not that the fair value of a reporting unit is greater than its carrying amount. If not, then an impairment exists for the difference between the fair value and carrying value of the reporting unit. This difference is not to exceed the goodwill recorded at the reporting unit. |
Hedging instruments | Hedging instruments: We use derivative financial instruments consisting primarily of commodity futures, swaps and option contracts, forward currency contracts and options, interest rate swaps, and Treasury lock agreements (“T-Locks”). When we enter a derivative contract, we designate the derivative as a hedge of variable cash flows to be paid related to certain forecasted transactions (“a cash flow hedge”), as a hedge of the fair value of certain fixed (“firm”) commitments (“a fair value hedge”), or as a non-designated hedging instrument. This process includes linking all derivatives that are designated as cash flow or fair value hedges to specific assets and liabilities on the Consolidated Balance Sheets, or to specific firm commitments or forecasted transactions. For all hedging relationships, we document the hedging relationships and our risk-management objective and strategy for undertaking the hedge transactions, the hedging instrument, the hedged item, the nature of the risk being hedged, how we will assess the hedging instrument’s effectiveness in offsetting the hedged risk, and a description of the method to measure ineffectiveness. We also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivative that is used in a hedging transaction is highly effective in offsetting changes in cash flows or fair values of hedged items. For hedging instruments designated as cash flow hedges, unrealized gains and losses associated with marking cash flow hedging contracts to market (fair value) are recorded as a component of other comprehensive loss (“OCL”) and included in the equity section of the Consolidated Balance sheets as part of AOCL. These amounts, as well as their related tax effects, are subsequently reclassified into earnings in the same line item affected by the hedged transaction and in the same period or periods during which the hedged transaction affects earnings, or in the period a hedge is determined to be ineffective. Gains and losses from cash flow hedging instruments reclassified from AOCL to earnings are reported as Cash provided by operating activities on the Consolidated Statements of Cash Flows. For hedging instruments designated as fair value hedges, unrealized gains and losses associated with marking fair value hedging contracts to market (fair value) are recorded in earnings each period. Unrealized gains and losses on hedged items in designated and highly effective fair value hedges are also recorded in earnings each period. For hedging instruments not designated as hedging instruments for accounting purposes, all realized and unrealized gains and losses from these instruments are recognized in earnings during each accounting period. We assess the effectiveness of hedging contracts based on changes in the contract’s fair value. The changes in the market value of our hedging contracts have historically been, and are expected to be, highly effective at offsetting changes in the price of hedged items. We discontinue hedge accounting prospectively when it is unlikely or not probable that a forecasted transaction will occur or when we determine that the designation of the derivative as a hedging instrument is no longer appropriate, since the derivative is no longer effective in offsetting changes in the cash flows or fair value of the originally intended hedged transaction. When we discontinue hedge accounting, we continue to carry the derivative on the Consolidated Balance Sheets at its fair value and freeze the deferred gains or losses into AOCL. Changes in the fair value of the derivative are recognized in earnings in the same line item as the original hedged transaction instead of AOCL. Any accumulated gains and losses that were included in AOCL in the period we determined the hedge to be ineffective are also released to earnings. |
Pension and other postretirement benefits | Pension and other postretirement benefits : All U.S. pension and postretirement benefit plans and most non-U.S. pension and postretirement benefit plans value the vested benefit obligation based on the actuarial present value of the vested benefits to which employees are currently entitled based on their expected date of separation or retirement. For defined benefit plans, the service cost component of net periodic benefit cost is presented within either Cost of sales or Operating expenses on the Consolidated Statements of Income. The interest cost, expected return on plan assets, amortization of actuarial loss, amortization of prior service credit and settlement loss components of net periodic benefit cost are presented as Other non-operating expense (income) on the Consolidated Statements of Income. Actuarial gains and losses in excess of 10 percent of the greater of the projected benefit obligation or the market-related value of plan assets are classified in AOCL, along with the related tax impact, and recognized as a component of net periodic benefit cost over the average remaining service period of a plan’s active employees for active defined benefit pension plans and over the average remaining life of a plan’s active employees for frozen defined benefit pension plans. |
Share-based compensation | Share-based compensation: We have a stock incentive plan that provides for share-based employee compensation, including the granting of stock options, shares of restricted stock, restricted stock units and performance shares to certain key employees. Compensation expense is generally recognized in the Consolidated Statements of Income on a straight-line basis for all awards over the requisite service period. We estimate a forfeiture rate at the time of certain grants, and we update the estimate throughout the vesting of certain awards within the amount of compensation costs recognized in each period. |
Earnings per common share | Earnings per common share: |
Risks and uncertainties | Risks and uncertainties: We operate domestically and internationally, and our business and assets in each country are subject to varying degrees of risk and uncertainty. We insure our business and assets in each country against insurable risks in a manner that we deem appropriate. Because of our geographic dispersion, we believe that a loss from a non-insured event in any one country would not have a material adverse effect on our operations as a whole. Additionally, we believe there is no significant concentration of risk with any single customer or supplier whose failure or non-performance would materially affect our results. We do not consider the potential for insurance recoveries if we record accruals for estimated probable costs from events or circumstances that may be insured. |
New Accounting Standards | New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The amendments in this update provide optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) reference rate reform on financial reporting. The amendments in this update are effective for all entities as of March 12, 2020 through December 31, 2024. We adopted ASU 2020-04 at the beginning of our 2023 fiscal year and this ASU did not have a material impact on our Consolidated Financial Statements. In September 2022, the FASB issued ASU No. 2022-04, Liabilities - Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations . The amendments require buyers to disclose information about supplier finance programs that is sufficient to allow financial statement users to understand their nature, activity during the period, changes from period to period and potential magnitude. The amendments in this update are effective for annual periods beginning after December 15, 2022, except for the amendment on rollforward information, which is effective for fiscal years beginning after December 15, 2023. We adopted the updates to the standard at the beginning of our 2023 fiscal year and will adopt the amendment on rollforward information during the first quarter of 2024. These updates did not have a material impact to our Consolidated Balance Sheets. The disclosure required by the recently adopted accounting standard is reflected in Note 15. We are currently assessing the impact of the rollforward information amendment on our Consolidated Financial Statements. In August 2023, the FASB issued ASU No. 2023-05, Business Combinations - Joint Venture Formations (Subtopic 805-60). The amendments in this update require that a joint venture apply a new basis of accounting upon formation. By applying a new basis of accounting, a joint venture, upon formation, will recognize and initially measure its assets and liabilities at fair value (with exceptions to fair value measurement that are consistent with the business combinations guidance). The amendments in this ASU are effective prospectively for all joint venture formations with a formation date on or after January 1, 2025. A joint venture that was formed before January 1, 2025 may elect to apply the amendments retrospectively. We plan to adopt this ASU on a prospective basis at the beginning of our 2025 fiscal year and do not believe it will have a material impact on our Consolidated Financial Statements. In November 2023, the FASB issued ASU No. 2023-07, Segment Reporting (Topic 280) . The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. Entities must apply the amendments in this ASU retrospectively to all prior periods presented in the financial statements. We are currently assessing the impact of this ASU on our Consolidated Financial Statements. In December 2023, the FASB issued ASU No. 2023-09, Income Taxes (Topic 740) : Improvements to Income Tax Disclosures. The amendments require public business entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. Additionally, the amendment requires information pertaining to taxes paid (net of refunds received) to be disaggregated by federal, state, and foreign taxes with further disaggregation for specific jurisdictions to the extent the related amounts exceed a quantitative threshold. The amendments in this ASU are effective for annual periods beginning after December 15, 2024, with early adoption permitted. |
Acquisitions and Divestitures (
Acquisitions and Divestitures (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of assets and liabilities held for sale | The following table presents the major classes of assets and liabilities classified as held for sale for the South Korea divestment. Assets classified as held for sale are included in Prepaid expenses and assets held for sale, and liabilities held for sale are included in Accrued liabilities and liabilities held for sale on the Consolidated Balance Sheets as of December 31, 2023. December 31, 2023 Accounts receivable, net 38 Inventories 69 Property, plant and equipment, net 100 Other assets 4 Assets held for sale $ 211 Short-term borrowings $ 2 Accounts payable 30 Accrued liabilities 14 Non-current liabilities 5 Liabilities held for sale $ 51 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The original carrying value of goodwill and accumulated impairment charges at December 31, 2023 are as follows: North South Asia- EMEA Total Goodwill before impairment charges $ 623 $ 49 $ 311 $ 72 $ 1,055 Accumulated impairment charges (1) (33) (121) — (155) Balance at January 1, 2023 622 16 190 72 900 Acquisitions — — 19 — 19 Currency translation — 2 (5) 2 (1) Balance at December 31, 2023 $ 622 $ 18 $ 204 $ 74 $ 918 |
Schedule of intangible assets | A summary of other intangible assets is as follows: December 31, 2023 Gross Accumulated Amortization Net Weighted Average Useful Life Trademarks/tradenames (indefinite-lived) $ 143 $ — $ 143 — Patents 31 (9) 22 12 Customer relationships 358 (170) 188 19 Technology 111 (103) 8 9 Other 41 (17) 24 15 Total other intangible assets $ 684 $ (299) $ 385 17 December 31, 2022 Gross Accumulated Amortization Net Weighted Average Useful Life Trademarks/tradenames (indefinite-lived) $ 143 $ — $ 143 — Patents 32 (7) 25 12 Customer relationships 356 (150) 206 19 Technology 102 (101) 1 9 Other 43 (17) 26 15 Total other intangible assets $ 676 $ (275) $ 401 17 |
Schedule of amortization expense related to intangible assets | Estimated future amortization expense related to intangible assets is as follows: Years ending December 31, Estimated Future Amortization Expense 2024 $ 26 2025 26 2026 26 2027 26 2028 26 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Schedule of investments | Investments as of December 31, 2023 and 2022 are as follows: 2023 2022 Equity investments $ 27 $ 23 Equity method investments 112 113 Marketable securities 4 3 Total investments $ 143 $ 139 |
Derivatives Instruments and H_2
Derivatives Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of cash flow hedges included in AOCI | The derivative instruments designated as cash flow hedges included in AOCL as of December 31, 2023 and 2022, are as follows: Derivatives in Cash Flow Hedging Relationships Gains (Losses) included in AOCL as of December 31, 2023 2022 Commodity contracts, net of income tax effect of $17 and $3, respectively $ (46) $ 8 Foreign currency contracts, net of income tax effect of $ 1 and $—, respectively — 1 Interest rate contracts, net of income tax effect of $1 (2) (3) Total $ (48) $ 6 |
Schedule of fair value and balance sheet location of derivative instruments | The fair value and balance sheet location of our derivative instruments, presented gross in the Consolidated Balance Sheets, are as follows: Fair Value of Hedging Instruments as of December 31, 2023 Designated Hedging Instruments Non-Designated Hedging Instruments Balance Sheet Location Commodity Contracts Foreign Currency Contracts Total Commodity Contracts Foreign Currency Contracts Total Accounts receivable, net $ 6 $ 11 $ 17 $ — $ 5 $ 5 Other assets — 4 4 — — — Assets 6 15 21 — 5 5 Accounts payable and accrued liabilities 44 14 58 2 12 14 Non-current liabilities 2 2 4 — — — Liabilities 46 16 62 2 12 14 Net Assets/(Liabilities) $ (40) $ (1) $ (41) $ (2) $ (7) $ (9) Fair Value of Hedging Instruments as of December 31, 2022 Designated Hedging Instruments Non-Designated Hedging Instruments Balance Sheet Location Commodity Contracts Foreign Currency Contracts Total Commodity Contracts Foreign Currency Contracts Total Accounts receivable, net $ 28 $ 20 $ 48 $ — $ 5 $ 5 Other assets 1 6 7 — — — Assets 29 26 55 — 5 5 Accounts payable and accrued liabilities 22 23 45 1 6 7 Non-current liabilities 3 9 12 — — — Liabilities 25 32 57 1 6 7 Net Assets/(Liabilities) $ 4 $ (6) $ (2) $ (1) $ (1) $ (2) |
Schedule of amount of gains and losses recognized in OCI and income statement location | Additional information relating to our derivative instruments are as follows: Derivatives in Cash Flow Hedging Relationships Gains (Losses) Income Statement Gains (Losses) 2023 2022 2021 2023 2022 2021 Commodity contracts $ (161) $ 202 $ 218 Cost of sales $ (87) $ 261 $ 211 Foreign currency contracts 10 8 — Net sales/Cost of sales 10 7 (1) Interest rate contracts — — — Financing costs (1) — (1) Total $ (151) $ 210 $ 218 $ (78) $ 268 $ 209 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Assets and liabilities measured at fair value on a recurring basis are presented below: As of December 31, 2023 As of December 31, 2022 Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Marketable securities $ 4 $ 4 $ — $ — $ 3 $ 3 $ — $ — Derivative assets 26 26 — — 60 49 11 — Derivative liabilities 76 43 33 — 64 51 13 — Long-term debt 1,591 — 1,591 — 1,733 — 1,733 — |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of debt | Presented below are our debt carrying amounts, net of related discounts, premiums and debt issuance costs and fair values as of December 31, 2023 and 2022: 2023 2022 Carrying Fair Carrying Fair 2.900% senior notes due June 1, 2030 $ 596 $ 536 $ 595 $ 510 3.200% senior notes due October 1, 2026 499 479 498 470 3.900% senior notes due June 1, 2050 391 300 390 293 6.625% senior notes due April 15, 2037 253 275 253 256 Term loan credit agreement due December 16, 2024 — — 200 200 Revolving credit agreement — — — — Other long-term borrowings 1 1 4 4 Total long-term debt 1,740 1,591 1,940 1,733 Commercial paper 327 327 390 390 Other short-term borrowings 121 121 153 153 Total short-term borrowings 448 448 543 543 Total debt $ 2,188 $ 2,039 $ 2,483 $ 2,276 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Summary of components of lease expense | The components of lease expense are as follows: 2023 2022 2021 Operating lease expense $ 63 $ 59 $ 58 Variable operating lease expense 26 27 26 Short term lease expense 3 3 4 Lease expense $ 92 $ 89 $ 88 |
Reconciliation of future undiscounted cash flows to the operating lease liabilities and the related ROU assets | The following is a reconciliation of future undiscounted cash flows to the operating lease liabilities and the related operating lease assets as presented within Other non-current liabilities and Other assets, respectively, on our Consolidated Balance Sheets as of December 31, 2023: 2024 $ 63 2025 52 2026 45 2027 29 2028 14 Thereafter 31 Total future lease payments 234 Less imputed interest 21 Present value of future lease payments 213 Less current lease liabilities 56 Non-current operating lease liabilities $ 157 Operating lease assets $ 208 |
Summary of other lease information | Supplemental cash flow information arising from lease transactions is as follows: Year Ended 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 64 $ 60 Right-of-use assets obtained in exchange for lease liabilities: Operating leases $ 72 $ 52 Year Ended Lease term and discount rate 2023 2022 Weighted average remaining lease term 5.3 years 5.9 years Weighted average discount rate 4.6 % 4.4 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of the components of income before income taxes | The components of income before income taxes and the provision for income taxes for the years indicated are presented below: 2023 2022 2021 Income before income taxes: U.S. $ 244 $ 111 $ 39 Foreign 595 557 209 Total income before income taxes 839 668 248 Provision for income taxes: Current tax expense: U.S. federal 6 8 2 State and local 5 2 2 Foreign 183 159 180 Total current tax expense 194 169 184 Deferred tax expense (benefit): U.S. federal — 5 (57) State and local 1 (1) (2) Foreign (7) (7) (2) Total deferred tax (benefit) (6) (3) (61) Total provision for income taxes $ 188 $ 166 $ 123 |
Schedule of the tax effects of significant temporary difference | Significant temporary differences as of December 31, 2023 and 2022, are summarized as follows: 2023 2022 Deferred tax assets attributable to: Employee benefit accruals $ 32 $ 30 Pensions and postretirement plans 16 14 Lease liabilities 54 49 Bad debt 5 6 Inventory reserve 16 22 Net operating loss carryforwards 58 59 Tax credit carryforwards 5 5 Derivative contracts 16 — Uniform capitalization 12 9 Other 35 33 Total deferred tax assets 249 227 Valuation allowances (46) (51) Net deferred tax assets 203 176 Deferred tax liabilities attributable to: Property, plant and equipment 184 175 Identified intangibles 33 48 Right-of-use lease assets 51 46 Foreign withholding and state taxes on unremitted earnings 1 1 Goodwill 35 31 Brazilian indirect tax credits — 4 Derivative contracts — 3 Total deferred tax liabilities 304 308 Net deferred tax liabilities $ 101 $ 132 |
Schedule of reconciliation of US federal statutory tax rate to effective tax rate | A reconciliation of the U.S. federal statutory tax rate to our effective tax rate follows: 2023 2022 2021 Provision for tax at U.S. statutory rate 21.0 % 21.0 % 21.0 % Tax rate difference on foreign income 6.1 7.2 13.3 Foreign currency foreign exchange (1.8) (0.3) 3.2 Inflation adjustments (0.5) (0.6) (4.0) Tax benefit of intercompany financing (0.4) (0.4) (1.6) U.S. international tax implications 1.0 2.2 0.8 Valuation allowance in Argentina — — (0.4) Favorable judgment on the treatment of credits and interest on indirect taxes (0.2) (0.3) (4.8) Unremitted earnings — — (12.1) Impairment charge related to Argentina joint venture — — 35.5 Foreign-derived intangible income (FDII) (1.5) (1.0) — Brazil exclusion of certain tax incentives (1.2) (4.0) — Other items, net (0.1) 1.1 (1.3) Provision at effective tax rate 22.4 % 24.9 % 49.6 % |
Schedule of reconciliation of beginning and ending amount of unrecognized tax benefits, excluding interest and penalties | A reconciliation of the beginning and ending amounts of unrecognized tax benefits, excluding interest and penalties, for 2023 and 2022 is as follows: 2023 2022 Balance at January 1 $ 30 $ 29 Additions for tax positions related to prior years 1 5 Reductions for tax positions related to prior years (1) (1) Additions based on tax positions related to the current year 1 1 Reductions related to a lapse in the statute of limitations — (4) Balance at December 31 $ 31 $ 30 |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Pension Plan | |
Pension and other postretirement benefits | |
Schedule of funded status | The changes in pension benefit obligations and plan assets during 2023 and 2022, as well as the funded status and the amounts recognized in our Consolidated Balance Sheets related to our pension plans at December 31, 2023 and 2022, are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Benefit obligation At January 1 $ 300 $ 383 $ 188 $ 254 Service cost 3 4 4 3 Interest cost 15 9 10 9 Benefits paid (18) (25) (13) (13) Actuarial loss (gain) 5 (71) 8 (49) Curtailment/settlement/amendments — — (1) (2) Foreign currency translation — — 4 (14) Benefit obligation at December 31 $ 305 $ 300 $ 200 $ 188 Fair value of plan assets At January 1 $ 317 $ 420 $ 189 $ 244 Actual return on plan assets 25 (79) 17 (30) Employer contributions 1 1 6 5 Benefits paid (18) (25) (13) (13) Plan settlements — — (1) (2) Foreign currency translation — — 2 (15) Fair value of plan assets at December 31 $ 325 $ 317 $ 200 $ 189 Funded status $ 20 $ 17 $ — $ 1 |
Schedule of amounts recognized in the consolidated balance sheets | Amounts recorded in the Consolidated Balance Sheets as of December 31, 2023 and 2022 are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Non-current asset $ 28 $ 25 $ 47 $ 43 Current liabilities (1) (1) (2) (1) Non-current liabilities (7) (7) (45) (41) Net asset (liability) recognized $ 20 $ 17 $ — $ 1 |
Schedule of amounts recognized in accumulated other comprehensive loss | Amounts recorded in AOCL, excluding tax effects that have not yet been recognized as components of net periodic benefit cost at December 31, 2023 and 2022, are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Net actuarial loss $ 32 $ 36 $ 24 $ 24 Prior service (credit) cost (2) (3) — — Net amount recognized $ 30 $ 33 $ 24 $ 24 |
Schedule of plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | Information for pension plans with a projected benefit obligation in excess of plan assets and an accumulated benefit obligation in excess of plan assets is as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Projected benefit obligation $ (8) $ (8) $ (51) $ (45) Accumulated benefit obligation (8) (8) (40) (35) Fair value of plan assets — — 4 3 |
Components of net periodic benefit cost | Components of net periodic benefit cost consist of the following for 2023, 2022 and 2021: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Service cost $ 3 $ 4 $ 4 $ 4 $ 3 $ 4 Interest cost 15 9 8 10 9 9 Expected return on plan assets (17) (16) (17) (9) (7) (8) Amortization of actuarial loss 1 — — 1 1 2 Amortization of prior service credit (1) (1) (1) — — — Net periodic benefit cost $ 1 $ (4) $ (6) $ 6 $ 6 $ 7 |
Schedule of amounts recorded in other comprehensive income and net periodic benefit cost | Total amounts recorded in other comprehensive income and net periodic benefit cost are as follows: (pre-tax) U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Net actuarial (gain) loss $ (3) $ 25 $ (1) $ — $ (11) $ (11) Prior service cost — — — — — — Amortization of actuarial loss (1) — — (1) (1) (2) Amortization of prior service credit 1 1 1 — — — Foreign currency translation — — — 1 (2) (11) Total recorded in other comprehensive (income) loss (3) 26 — — (14) (24) Net periodic benefit cost 1 (4) (6) 6 6 7 Total recorded in other comprehensive (income) loss and net periodic benefit cost $ (2) $ 22 $ (6) $ 6 $ (8) $ (17) |
Schedule of weighted average assumptions used to determine the company's obligations | The weighted average assumptions used to determine our obligations for the pension plans are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2023 2022 Discount rate 5.00 % 5.19 % 5.24 % 5.66 % Rate of compensation increase 3.83 3.92 3.76 3.83 Cash balance interest credit rate 4.53 4.21 — — |
Schedule of weighted average assumptions used to determine the company's net periodic benefit cost | The weighted average assumptions used to determine our net periodic benefit cost for the pension plans are as follows: U.S. Plans Non-U.S. Plans 2023 2022 2021 2023 2022 2021 Discount rate 5.19 % 2.91 % 2.58 % 5.67 % 3.66 % 2.84 % Expected long-term return on plan assets 5.50 4.10 4.10 5.05 3.50 3.37 Rate of compensation increase 3.92 4.18 4.26 3.83 3.77 3.54 Cash balance interest crediting rate 4.21 4.11 3.76 — — — |
Schedule of weighted average asset allocation | Our weighted average asset allocations as of December 31, 2023 and 2022, for U.S. and non-U.S. pension plan assets are as follows: U.S. Plans Non-U.S. Plans Asset Category 2023 2022 2023 2022 Equity securities 12 % 11 % 8 % 8 % Debt securities 86 87 78 77 Cash and other 2 2 14 15 Total 100 % 100 % 100 % 100 % |
Schedule of fair values of the company's plan assets, by asset category and level | The fair values of our plan assets by asset category are as follows: Fair Value Measurements at December 31, 2023 NAV Level 1 Level 2 Total 2023 2022 2023 2022 2023 2022 2023 2022 U.S. Plans: Equity index: U.S. (a) $ — $ — $ — $ — $ 24 $ 22 $ 24 $ 22 International (b) — — — — 16 14 16 14 Fixed income index: Long bond (c) — — — — 133 127 133 127 Government bond (d) — — — — 89 89 89 89 Other fixed income (e) 57 59 — — — — 57 59 Cash & Short-term Investments (f) — — — — 6 6 6 6 Total U.S. Plans $ 57 $ 59 $ — $ — $ 268 $ 258 $ 325 $ 317 Non-U.S. Plans: Equity index: U.S. (a) $ — $ — $ — $ — $ 10 $ 9 $ 10 $ 9 International (b) — — — — 6 6 6 6 Fixed income index: Government bond (g) — — — — 78 99 78 99 Corporate bond (h) — — — — 79 46 79 46 Other (i) — — — — 25 22 25 22 Cash & Short-term Investments (f) — — 2 2 — 5 2 7 Total Non-U.S. Plans $ — $ — $ 2 $ 2 $ 198 $ 187 $ 200 $ 189 ______________________ (a) This category consists of both passively and actively managed equity index funds that track the return of large capitalization U.S. equities. (b) This category consists of both passively and actively managed equity index funds that track an index of returns on international developed and emerging market equities. (c) This category consists of an actively managed fixed-income index fund that invests in a diversified portfolio of fixed-income securities with maturities generally exceeding 10 years. (d) This category consists of both passively and actively managed fixed-income index funds that invest in a diversified portfolio of fixed income government debt securities with varying maturities. (e) This category consists of an actively managed common collective fund that invests in government bonds, collateralized mortgage obligations, investment grade private credit and real estate debt. This fund is priced monthly at the aggregated market value of the underlying investments and may be fully redeemed with 95 days notice. (f) This category represents cash, cash equivalents, or highly liquid short-term investments. (g) This category consists of both passively and actively managed fixed income index funds that track the return of government bonds with varying maturities. (h) This category consists of actively managed fixed income index funds that track the return of investment grade corporate bonds with varying maturities. (i) This category mainly consists of investment products provided by insurance companies that offer returns that are subject to a minimum guarantee and mutual funds. |
Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made | We expect to pay the following benefit payments to beneficiaries, which reflect anticipated future service, as appropriate: U.S. Plans Non-U.S. Plans 2024 $ 26 $ 12 2025 26 12 2026 26 12 2027 27 13 2028 24 38 Thereafter 114 73 |
Postemployment Retirement Benefits | |
Pension and other postretirement benefits | |
Schedule of funded status | The information presented below includes plans in the U.S., Brazil and Canada. The changes in the benefit obligations of the plans during 2023 and 2022, as well as the amounts recognized in our Consolidated Balance Sheets at December 31, 2023 and 2022, are as follows: 2023 2022 Accumulated postretirement benefit obligation At January 1 $ 58 $ 65 Service cost 1 1 Interest cost 4 3 Amendments 2 — Actuarial (gain) loss 1 (7) Benefits paid (4) (4) Foreign currency translation 2 — At December 31 64 58 Fair value of plan assets — — Funded status $ (64) $ (58) |
Schedule of amounts recognized in the consolidated balance sheets | Amounts recorded in the Consolidated Balance Sheets at December 31, 2023 and 2022 consist of: 2023 2022 Current liabilities $ (4) $ (5) Non-current liabilities (60) (53) Net liability recognized $ (64) $ (58) |
Schedule of amounts recognized in accumulated other comprehensive loss | Amounts recorded in AOCL, excluding tax effects that have not yet been recognized as components of net periodic benefit cost at December 31, 2023 and 2022, are as follows: 2023 2022 Net actuarial loss $ 4 $ 1 Prior service cost 6 5 Net amount recognized $ 10 $ 6 |
Components of net periodic benefit cost | Components of net periodic benefit cost consisted of the following for 2023, 2022 and 2021: 2023 2022 2021 Service cost $ 1 $ 1 $ 1 Interest cost 4 3 2 Amortization of actuarial (gain) loss (1) — 1 Amortization of prior service cost (credit) 1 — (2) Net periodic benefit cost $ 5 $ 4 $ 2 |
Schedule of amounts recorded in other comprehensive income and net periodic benefit cost | Total amounts recorded in other comprehensive income and net periodic benefit cost for 2023, 2022 and 2021 are as follows: (pre-tax) 2023 2022 2021 Net actuarial loss (gain) $ 1 $ (7) $ (5) Prior service cost 2 — 4 Amortization of prior service (cost) credit (1) — 2 Amortization of actuarial gain (loss) 1 — (1) Foreign currency translation 1 — (4) Total recorded in other comprehensive loss (income) 4 (7) (4) Net periodic benefit cost 5 4 2 Total recorded in other comprehensive loss (income) and net periodic benefit cost $ 9 $ (3) $ (2) |
Schedule of weighted average assumptions used to determine the company's obligations | We used the following weighted average assumptions to determine our postretirement benefit obligations for 2023 and 2022: 2023 2022 Discount rate 7.37 % 7.30 % |
Schedule of weighted average assumptions used to determine the company's net periodic benefit cost | The following weighted average assumptions were used to determine our net postretirement benefit cost: 2023 2022 2021 Discount rate 7.30 % 4.22 % 3.69 % |
Schedule of assumptions made in measuring the company's postretirement benefit obligation | We used the following assumptions as of December 31, 2023: U.S. Canada Brazil 2023 increase in per capita cost 7.80 % 5.04 % 8.94 % Ultimate trend 4.50 % 4.05 % 8.94 % Year ultimate trend reached 2033 2040 2023 |
Schedule of benefit payments, which reflect anticipated future service, as appropriate and are expected to be made | We expect to make the following benefit payments to beneficiaries under our postretirement benefit plans, which reflect anticipated future service, as appropriate: 2024 $ 4 2025 4 2026 4 2027 4 2028 4 Thereafter 22 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of reconciliation of common stock share activity | Common stock share activity for 2023, 2022 and 2021 is as follows: (Shares of common stock, in thousands) Issued Held in Treasury Outstanding Balance at December 31, 2020 77,811 10,795 67,016 Issuance of restricted stock units as compensation — (69) 69 Performance shares and other share-based awards — (6) 6 Stock options exercised — (331) 331 Purchase/acquisition of treasury stock — 765 (765) Balance at December 31, 2021 77,811 11,154 66,657 Issuance of restricted stock units as compensation — (95) 95 Performance shares and other share-based awards — (43) 43 Stock options exercised — (182) 182 Purchase/acquisition of treasury stock — 1,283 (1,283) Balance at December 31, 2022 77,811 12,117 65,694 Issuance of restricted stock units as compensation — (108) 108 Performance shares and other share-based awards — (51) 51 Stock options exercised — (386) 386 Purchase/acquisition of treasury stock — 1,000 (1,000) Balance at December 31, 2023 77,811 12,572 65,239 |
Schedule of stock based compensation expense | Share-based compensation expense for 2023, 2022 and 2021 is as follows: 2023 2022 2021 Stock options: Pre-tax compensation expense $ 4 $ 4 $ 3 Income tax benefit — — — Stock option expense, net of income taxes 4 4 3 Restricted stock units (“RSUs”): Pre-tax compensation expense 15 13 12 Income tax benefit (2) (1) (1) RSUs, net of income taxes 13 12 11 Performance shares and other share-based awards: Pre-tax compensation expense 14 12 8 Income tax benefit (1) (1) (1) Performance shares and other share-based compensation expense, net of income taxes 13 11 7 Total share-based compensation: Pre-tax compensation expense 33 29 23 Income tax benefit (3) (2) (2) Total share-based compensation expense, net of income taxes $ 30 $ 27 $ 21 |
Schedule of valuation assumptions for stock options | The fair value of each option grant was estimated using the Black-Scholes option-pricing model with the following assumptions: For the Year Ended December 31, 2023 2022 2021 Expected life (in years) 5.5 5.5 5.5 Risk-free interest rate 4.0 % 2.0 % 0.6 % Expected volatility 28.3 % 23.8 % 23.2 % Expected dividend yield 2.9 % 2.9 % 2.9 % |
Schedule of stock option transactions | Stock option activity in 2023 is as follows: Number of Options Weighted Average Exercise Price per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value Outstanding as of December 31, 2022 2,222 $ 92.32 5.16 $ 24 Granted 197 98.69 Exercised (386) 71.76 Cancelled (80) 102.66 Outstanding as of December 31, 2023 1,953 $ 96.61 4.97 $ 29 Exercisable as of December 31, 2023 1,523 $ 97.80 4.03 $ 22 |
Schedule of additional information pertaining to stock option activity | Additional information pertaining to stock option activity is as follows: Year Ended December 31, 2023 2022 2021 Weighted average grant date fair value of stock options granted (per share) $ 23.80 $ 15.04 $ 12.31 Total intrinsic value of stock options exercised 13 6 10 |
Schedule of restricted unit activity | RSU activity in 2023 is as follows: (shares in thousands) Number of Weighted Non-vested at December 31, 2022 517 $ 88.04 Granted 222 98.15 Vested (154) 87.91 Cancelled (33) 91.30 Non-vested at December 31, 2023 552 $ 92.05 |
Summary of net changes in accumulated other comprehensive loss | A summary of Accumulated other comprehensive loss for 2023, 2022 and 2021 is presented below: Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) income before reclassification adjustments (100) 218 28 146 Loss (income) reclassified from accumulated other comprehensive loss 311 (209) — 102 Tax (provision) — (3) (9) (12) Net other comprehensive income 211 6 19 236 Balance, December 31, 2021 (903) 48 (42) (897) Other comprehensive (loss) income before reclassification adjustments (105) 210 (5) 100 (Income) reclassified from accumulated other comprehensive loss — (268) — (268) Tax benefit — 16 1 17 Net other comprehensive (loss) (105) (42) (4) (151) Balance, December 31, 2022 (1,008) 6 (46) (1,048) Other comprehensive income (loss) before reclassification adjustments 47 (151) (2) (106) Loss reclassified from accumulated other comprehensive loss — 78 1 79 Tax benefit — 19 — 19 Net other comprehensive income (loss) 47 (54) (1) (8) Balance, December 31, 2023 $ (961) $ (48) $ (47) $ (1,056) |
Schedule of basic and diluted earnings per common share | The following table provides the computation of basic and diluted earnings per common share (“EPS”). 2023 2022 2021 Net Income Weighted Per Net Income Weighted Per Net Income Weighted Per Basic EPS $ 643 66.0 $ 9.74 $ 492 66.2 $ 7.43 $ 117 67.1 $ 1.74 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 1.0 0.8 0.7 Diluted EPS $ 643 67.0 $ 9.60 $ 492 67.0 $ 7.34 $ 117 67.8 $ 1.73 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting of net sales, operating income and total assets | Net sales to unaffiliated customers by reportable segment are as follows: 2023 2022 2021 Net sales to unaffiliated customers: North America $ 5,188 $ 4,934 $ 4,137 South America 1,062 1,124 1,057 Asia-Pacific 1,089 1,107 997 EMEA 821 781 703 Total net sales $ 8,160 $ 7,946 $ 6,894 No customer accounted for 10 percent or more of our net sales in 2023, 2022 or 2021. Operating income by reportable segment is as follows: 2023 2022 2021 Operating income: North America $ 718 $ 565 $ 487 South America 142 169 138 Asia-Pacific 126 93 87 EMEA 156 110 106 Corporate (173) (150) (133) Subtotal 969 787 685 Acquisition/integration costs — (1) (3) Restructuring/impairment charges (11) (4) (47) Impairment on disposition of assets — — (340) Other matters (1) (20) 15 Total operating income $ 957 $ 762 $ 310 Total assets by reportable segment as of December 31, 2023 and 2022 are as follows: As of December 31, 2023 2022 Assets: North America (a) $ 4,485 $ 4,499 South America 980 949 Asia-Pacific 1,479 1,467 EMEA 698 646 Total assets $ 7,642 $ 7,561 _____________________ (a) For purposes of presentation, North America includes Corporate assets. Depreciation and amortization, mechanical stores expense and capital expenditures and mechanical stores purchases by reportable segment are as follows: 2023 2022 2021 Depreciation and amortization: North America (a) $ 146 $ 145 $ 146 South America 19 18 18 Asia-Pacific 39 37 40 EMEA 15 15 16 Total $ 219 $ 215 $ 220 Mechanical stores expense (b): North America (a) $ 47 $ 43 $ 43 South America 6 4 6 Asia-Pacific 5 4 3 EMEA 4 4 3 Total $ 62 $ 55 $ 55 Capital expenditures and mechanical stores purchases: North America (a) $ 183 $ 178 $ 166 South America 42 31 38 Asia-Pacific 68 72 81 EMEA 23 19 15 Total $ 316 $ 300 $ 300 _____________________ (a) North America includes Corporate activities. (b) Represents costs for spare parts used in the production process that are recorded in PP&E as part of machinery and equipment until they are utilized in the manufacturing process and expensed as a period cost. |
Schedule of net sales to unaffiliated customers by country of origin | Net sales to unaffiliated customers by country of origin are as follows: 2023 2022 2021 U.S. $ 3,069 $ 2,978 $ 2,509 Mexico 1,571 1,444 1,170 Brazil 669 720 586 Canada 548 512 459 Germany 413 342 309 Colombia 332 333 260 South Korea 325 356 323 Others 1,233 1,261 1,278 Total $ 8,160 $ 7,946 $ 6,894 |
Schedule of long-lived assets (excluding intangible assets) by country | Long-lived assets (excluding intangible assets and deferred tax assets) by country as of December 31, 2023 and 2022 are as follows: 2023 2022 U.S. $ 1,312 $ 1,289 Mexico 294 309 Canada 288 273 Brazil 235 209 China 164 144 Thailand 162 153 Germany 133 126 Others 338 435 Total $ 2,926 $ 2,938 |
Supplementary Information (Tabl
Supplementary Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplementary Information | |
Schedule of accounts receivable, net | Accounts receivable, net as of December 31, 2023 and 2022 were as follows: 2023 2022 Accounts receivable — trade $ 1,145 $ 1,200 Accounts receivable — other 154 228 Allowance for credit losses (20) (17) Total accounts receivable, net $ 1,279 $ 1,411 |
Schedule of inventories | Inventories as of December 31, 2023 and 2022 were as follows: 2023 2022 Finished and in process $ 926 $ 962 Raw materials 434 539 Manufacturing supplies 90 96 Total inventories $ 1,450 $ 1,597 |
Schedule of PP&E | PP&E, net as of December 31, 2023 and 2022 were as follows: 2023 2022 Land $ 178 $ 199 Buildings 853 854 Machinery and equipment 4,767 4,680 Property, plant and equipment, at cost 5,798 5,733 Accumulated depreciation (3,428) (3,326) Property, plant and equipment, net $ 2,370 $ 2,407 |
Schedule of accrued liabilities | Accrued liabilities as of December 31, 2023 and 2022 are as follows: 2023 2022 Compensation-related costs $ 121 $ 112 Current lease liabilities 56 48 Dividends payable 51 47 Taxes payable other than income taxes 46 45 Liabilities held for sale 51 — Other accrued liabilities 221 214 Total accrued liabilities and liabilities held for sale $ 546 $ 466 |
Schedule of other non-current liabilities | Other non-current liabilities as of December 31, 2023 and 2022 were as follows: 2023 2022 Non-current operating lease liabilities $ 157 $ 146 Pension and postretirement liabilities 117 101 Deferred tax liabilities 116 145 Other 90 85 Total other non-current liabilities $ 480 $ 477 |
Schedule of supplemental cash flow information | The following represents additional cash flow information: 2023 2022 2021 Interest paid $ 96 $ 82 $ 72 Income taxes paid 157 187 168 |
Schedule of quarterly financial data | Earnings per share for each quarter and the year are calculated individually and may not sum to the total for the respective year. Summarized quarterly financial data was as follows: 1 st QTR 2 nd QTR 3 rd QTR 4 th QTR 2023 Net sales $ 2,137 $ 2,069 $ 2,033 $ 1,921 Gross profit 487 441 421 400 Net income attributable to Ingredion 191 163 158 131 Basic earnings per common share of Ingredion 2.89 2.46 2.39 2.00 Diluted earnings per common share of Ingredion 2.85 2.42 2.36 1.97 Per share dividends declared $ 0.71 $ 0.71 $ 0.78 $ 0.78 1 st QTR 2 nd QTR 3 rd QTR 4 th QTR 2022 Net sales $ 1,892 $ 2,044 $ 2,023 $ 1,987 Gross profit 379 390 374 351 Net income attributable to Ingredion 130 142 106 114 Basic earnings per common share of Ingredion 1.94 2.14 1.61 1.73 Diluted earnings per common share of Ingredion 1.92 2.12 1.59 1.71 Per share dividends declared $ 0.65 $ 0.65 $ 0.71 $ 0.71 |
Description of the Business a_3
Description of the Business and Summary of Significant Accounting Policies - Property, Plant and Equipment and Definite-Lived Intangible Assets (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, plant and equipment and depreciation | ||
Estimated useful life, definite-lived intangible assets | 17 years | 17 years |
Minimum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, definite-lived intangible assets | 2 years | |
Maximum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, definite-lived intangible assets | 30 years | |
Buildings | Minimum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, PP&E | 25 years | |
Buildings | Maximum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, PP&E | 50 years | |
Machinery and equipment | Minimum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, PP&E | 2 years | |
Machinery and equipment | Maximum | ||
Property, plant and equipment and depreciation | ||
Estimated useful life, PP&E | 25 years |
Acquisitions and Divestitures -
Acquisitions and Divestitures - Narrative (Details) $ in Millions, ₩ in Billions | 3 Months Ended | 12 Months Ended | ||||||||||
Feb. 01, 2024 USD ($) | Feb. 01, 2024 KRW (₩) | Dec. 01, 2022 USD ($) | Aug. 01, 2022 USD ($) | Apr. 01, 2021 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Mar. 31, 2026 | Nov. 10, 2023 USD ($) | Nov. 10, 2023 KRW (₩) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Purchases of non-controlling interests | $ 2 | $ 46 | $ 0 | |||||||||
Payment for acquisition, net of cash acquired | 0 | 29 | 40 | |||||||||
Goodwill | 918 | 900 | ||||||||||
Intangible assets, net | 1,303 | 1,301 | ||||||||||
Pre-tax acquisition and integration costs | 0 | 1 | 5 | |||||||||
South Korea Divestiture | Held-for-sale, not discontinued operations | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Divestiture, consideration | $ 294 | ₩ 384 | ||||||||||
Disposal group, operating profit | $ 30 | $ 14 | $ 27 | |||||||||
South Korea Divestiture | Held-for-sale, not discontinued operations | Subsequent Event | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Proceeds from divestiture of businesses | $ 247 | ₩ 330 | ||||||||||
Forecast | South Korea Divestiture | Held-for-sale, not discontinued operations | Subsequent Event | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Gain on disposal | $ 283 | |||||||||||
Disposal Group, Not Discontinued, Operation Gain (Loss) On Disposal Statement Of Income, Extensible List Not Disclosed Flag | gain | |||||||||||
PureCircle Limited | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Ownership percentage by parent | 88% | 87% | 75% | |||||||||
PureCircle Limited | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Purchases of non-controlling interests | $ 2 | $ 46 | ||||||||||
M.B. Sugars and Pharmaceuticals Limited | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Additional percentage of outstanding shares acquired | 65% | |||||||||||
Payment for acquisition, net of cash acquired | $ 22 | |||||||||||
Goodwill | 19 | |||||||||||
Definite-lived intangible assets | $ 9 | |||||||||||
M.B. Sugars and Pharmaceuticals Limited | Forecast | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Additional percentage of outstanding shares acquired | 35% | |||||||||||
Amishi Drugs And Chemicals Private Limited | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Additional percentage of outstanding shares acquired | 100% | |||||||||||
Payment for acquisition, net of cash acquired | $ 7 | |||||||||||
Intangible assets, net | $ 3 | |||||||||||
KaTech | ||||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||||
Additional percentage of outstanding shares acquired | 100% | |||||||||||
Payment for acquisition, net of cash acquired | $ 40 | |||||||||||
Goodwill | 26 | |||||||||||
Tangible assets | $ 14 |
Acquisitions and Divestitures_2
Acquisitions and Divestitures - Schedule of assets and liabilities held for sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Liabilities held for sale | $ 51 | $ 0 |
South Korea Divestiture | Held-for-sale, not discontinued operations | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Accounts receivable, net | 38 | |
Inventories | 69 | |
Property, plant and equipment, net | 100 | |
Other assets | 4 | |
Assets held for sale | 211 | |
Short-term borrowings | 2 | |
Accounts payable | 30 | |
Accrued liabilities | 14 | |
Non-current liabilities | 5 | |
Liabilities held for sale | $ 51 |
Intangible Assets - Goodwill (D
Intangible Assets - Goodwill (Details) - USD ($) | 12 Months Ended | ||
Jul. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Carrying value of goodwill | |||
Goodwill before impairment charges | $ 1,055,000,000 | ||
Accumulated impairment charges | (155,000,000) | ||
Balance at the beginning of the period | $ 900,000,000 | ||
Acquisitions | 19,000,000 | ||
Currency translation | (1,000,000) | ||
Balance at the end of the period | 918,000,000 | ||
Goodwill impairment | $ 0 | ||
North America | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 623,000,000 | ||
Accumulated impairment charges | (1,000,000) | ||
Balance at the beginning of the period | 622,000,000 | ||
Acquisitions | 0 | ||
Currency translation | 0 | ||
Balance at the end of the period | 622,000,000 | ||
South America | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 49,000,000 | ||
Accumulated impairment charges | (33,000,000) | ||
Balance at the beginning of the period | 16,000,000 | ||
Acquisitions | 0 | ||
Currency translation | 2,000,000 | ||
Balance at the end of the period | 18,000,000 | ||
Asia- Pacific | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 311,000,000 | ||
Accumulated impairment charges | (121,000,000) | ||
Balance at the beginning of the period | 190,000,000 | ||
Acquisitions | 19,000,000 | ||
Currency translation | (5,000,000) | ||
Balance at the end of the period | 204,000,000 | ||
EMEA | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 72,000,000 | ||
Accumulated impairment charges | $ 0 | ||
Balance at the beginning of the period | 72,000,000 | ||
Acquisitions | 0 | ||
Currency translation | 2,000,000 | ||
Balance at the end of the period | $ 74,000,000 |
Intangible Assets - Other Intan
Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Gross | ||
Total other intangible assets, gross | $ 684 | $ 676 |
Accumulated Amortization | (299) | (275) |
Net | ||
Total other intangible assets, net | $ 385 | $ 401 |
Weighted Average Useful Life (years) | 17 years | 17 years |
Patents | ||
Gross | ||
Finite-lived intangible assets, gross | $ 31 | $ 32 |
Accumulated Amortization | (9) | (7) |
Net | ||
Finite-lived intangible assets, net | $ 22 | $ 25 |
Weighted Average Useful Life (years) | 12 years | 12 years |
Customer relationships | ||
Gross | ||
Finite-lived intangible assets, gross | $ 358 | $ 356 |
Accumulated Amortization | (170) | (150) |
Net | ||
Finite-lived intangible assets, net | $ 188 | $ 206 |
Weighted Average Useful Life (years) | 19 years | 19 years |
Technology | ||
Gross | ||
Finite-lived intangible assets, gross | $ 111 | $ 102 |
Accumulated Amortization | (103) | (101) |
Net | ||
Finite-lived intangible assets, net | $ 8 | $ 1 |
Weighted Average Useful Life (years) | 9 years | 9 years |
Other | ||
Gross | ||
Finite-lived intangible assets, gross | $ 41 | $ 43 |
Accumulated Amortization | (17) | (17) |
Net | ||
Finite-lived intangible assets, net | $ 24 | $ 26 |
Weighted Average Useful Life (years) | 15 years | 15 years |
Trademarks/tradenames (indefinite-lived) | ||
Gross | ||
Indefinite-lived intangible assets | $ 143 | $ 143 |
Net | ||
Indefinite-lived intangible assets | $ 143 | $ 143 |
Intangible Assets - Amortizatio
Intangible Assets - Amortization Expense (Details) - USD ($) | 12 Months Ended | |||
Jul. 01, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 26,000,000 | $ 26,000,000 | $ 27,000,000 | |
Indefinite-lived intangible assets impairment | $ 0 | |||
Intangible asset amortization expense for the next five years | ||||
2024 | 26,000,000 | |||
2025 | 26,000,000 | |||
2026 | 26,000,000 | |||
2027 | 26,000,000 | |||
2028 | $ 26,000,000 |
Investments - Breakdown of Inve
Investments - Breakdown of Investments (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Investments [Abstract] | ||
Equity investments | $ 27 | $ 23 |
Equity method investments | 112 | 113 |
Marketable securities | 4 | 3 |
Total investments | $ 143 | $ 139 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Millions | 12 Months Ended | |||||||
Aug. 02, 2021 USD ($) | Jun. 01, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 13, 2023 $ / $ | Dec. 12, 2023 $ / $ | Feb. 12, 2021 facility | |
Equity Method Investments | ||||||||
Restructuring/impairment charges | $ 11 | $ 4 | $ 387 | |||||
Impairment of equity method investments | 10 | |||||||
Impairment on disposition of assets | $ 0 | 0 | 340 | |||||
Joint venture pre-tax transaction and integration costs | $ 4 | 6 | ||||||
Foreign currency exchange rate | $ / $ | 800 | 366 | ||||||
Argentina joint venture | ||||||||
Equity Method Investments | ||||||||
Number of manufacturing facilities to be operated | facility | 5 | |||||||
Joint venture, period in arrears | 1 month | |||||||
Amyris joint venture | ||||||||
Equity Method Investments | ||||||||
Ownership percentage | 31% | |||||||
Total consideration under equity method investment agreement | $ 28 | |||||||
Cash consideration | 10 | |||||||
Non-exclusive license and other consideration | 18 | |||||||
Income from equity method investment agreement | $ 8 | |||||||
Argentina joint venture | ||||||||
Equity Method Investments | ||||||||
Ownership percentage | 49% | |||||||
Fair value of assets and liabilities transferred | $ 71 | |||||||
Value of shares received as consideration for assets contributed | 64 | |||||||
Impairment on disposition of assets | 340 | |||||||
Impairment charge - cumulative translation adjustment | 311 | |||||||
Impairment charge - write-down of contributed net assets | $ 29 | |||||||
Argentina joint venture | Grupo Arcor | ||||||||
Equity Method Investments | ||||||||
Cash and other considerations received from joint venture in return of assets and liabilities transferred | $ 7 |
Restructuring Charges (Details)
Restructuring Charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restructuring and impairment charges | |||
Restructuring charges | $ 1 | $ 4 | $ 47 |
Cost Smart SG&A Program | |||
Restructuring and impairment charges | |||
Restructuring charges | 3 | 17 | |
Cost Smart Cost of Sales Program | |||
Restructuring and impairment charges | |||
Restructuring charges | $ 1 | $ 27 |
Derivatives Instruments and H_3
Derivatives Instruments and Hedging Activities - Commodity Price Hedging (Details) bu in Millions, MMBTU in Millions | 12 Months Ended | |
Dec. 31, 2023 MMBTU bu | Dec. 31, 2022 MMBTU bu | |
Commodity contracts | Minimum | ||
Financial instruments, derivatives and hedging activities | ||
Maturity period of price risk derivative | 12 months | |
Commodity contracts | Maximum | ||
Financial instruments, derivatives and hedging activities | ||
Maturity period of price risk derivative | 24 months | |
Corn Commodity | ||
Financial instruments, derivatives and hedging activities | ||
Futures contract (in bushels for corn) | bu | 109 | 120 |
Natural Gas Commodity | ||
Financial instruments, derivatives and hedging activities | ||
Natural gas swap contract (in mmbtu of natural gas) | MMBTU | 28 | 31 |
Derivatives Instruments and H_4
Derivatives Instruments and Hedging Activities - Foreign Currency Hedging (Details) - Foreign currency contracts - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Short | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 694 | $ 405 |
Long | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 182 | 239 |
Cash Flow Hedging | Short | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 449 | 668 |
Cash Flow Hedging | Long | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 621 | $ 840 |
Derivatives Instruments and H_5
Derivatives Instruments and Hedging Activities - Schedule of Cash Flow Hedges in AOCI (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Gains (losses) included in AOCL | $ (1,056) | $ (1,048) |
Cash Flow Hedging | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Gains (losses) included in AOCL | (48) | 6 |
Cash Flow Hedging | Commodity contracts | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Tax effect of gains (losses) on cash flow hedges | 17 | (3) |
Gains (losses) included in AOCL | (46) | 8 |
Cash Flow Hedging | Foreign currency contracts | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Tax effect of gains (losses) on cash flow hedges | 1 | 0 |
Gains (losses) included in AOCL | 0 | 1 |
Cash Flow Hedging | Interest rate contracts | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Tax effect of gains (losses) on cash flow hedges | 1 | 1 |
Gains (losses) included in AOCL | $ (2) | $ (3) |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities - Interest Rate Hedging (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Loss expected to be reclassified into earnings during the next twelve months | $ 46 |
Loss expected to be reclassified into earnings during the next twelve months, income tax effect | $ 16 |
Derivatives Instruments and H_6
Derivatives Instruments and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of derivatives | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other assets, Accounts receivable, net | Other assets, Accounts receivable, net |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accounts payable, Other non-current liabilities, Accrued liabilities and liabilities held for sale | Accounts payable, Other non-current liabilities, Accrued liabilities and liabilities held for sale |
Designated Hedging Instruments | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | $ 21 | $ 55 |
Fair value of derivative instruments, liabilities | 62 | 57 |
Fair value of derivative instruments, net assets/(liabilities) | (41) | (2) |
Designated Hedging Instruments | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 17 | 48 |
Designated Hedging Instruments | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 4 | 7 |
Designated Hedging Instruments | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 58 | 45 |
Designated Hedging Instruments | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 4 | 12 |
Designated Hedging Instruments | Commodity contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 6 | 29 |
Fair value of derivative instruments, liabilities | 46 | 25 |
Fair value of derivative instruments, net assets/(liabilities) | (40) | 4 |
Designated Hedging Instruments | Commodity contracts | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 6 | 28 |
Designated Hedging Instruments | Commodity contracts | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 1 |
Designated Hedging Instruments | Commodity contracts | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 44 | 22 |
Designated Hedging Instruments | Commodity contracts | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 2 | 3 |
Designated Hedging Instruments | Foreign currency contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 15 | 26 |
Fair value of derivative instruments, liabilities | 16 | 32 |
Fair value of derivative instruments, net assets/(liabilities) | (1) | (6) |
Designated Hedging Instruments | Foreign currency contracts | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 11 | 20 |
Designated Hedging Instruments | Foreign currency contracts | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 4 | 6 |
Designated Hedging Instruments | Foreign currency contracts | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 14 | 23 |
Designated Hedging Instruments | Foreign currency contracts | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 2 | 9 |
Non-Designated Hedging Instruments | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 5 | 5 |
Fair value of derivative instruments, liabilities | 14 | 7 |
Fair value of derivative instruments, net assets/(liabilities) | (9) | (2) |
Non-Designated Hedging Instruments | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 5 | 5 |
Non-Designated Hedging Instruments | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 0 |
Non-Designated Hedging Instruments | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 14 | 7 |
Non-Designated Hedging Instruments | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 0 | 0 |
Non-Designated Hedging Instruments | Commodity contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 0 |
Fair value of derivative instruments, liabilities | 2 | 1 |
Fair value of derivative instruments, net assets/(liabilities) | (2) | (1) |
Non-Designated Hedging Instruments | Commodity contracts | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 0 |
Non-Designated Hedging Instruments | Commodity contracts | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 0 |
Non-Designated Hedging Instruments | Commodity contracts | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 2 | 1 |
Non-Designated Hedging Instruments | Commodity contracts | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 0 | 0 |
Non-Designated Hedging Instruments | Foreign currency contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 5 | 5 |
Fair value of derivative instruments, liabilities | 12 | 6 |
Fair value of derivative instruments, net assets/(liabilities) | (7) | (1) |
Non-Designated Hedging Instruments | Foreign currency contracts | Accounts receivable, net | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 5 | 5 |
Non-Designated Hedging Instruments | Foreign currency contracts | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, assets | 0 | 0 |
Non-Designated Hedging Instruments | Foreign currency contracts | Accounts payable and accrued liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | 12 | 6 |
Non-Designated Hedging Instruments | Foreign currency contracts | Non-current liabilities | ||
Fair value of derivatives | ||
Fair value of derivative instruments, liabilities | $ 0 | $ 0 |
Derivatives Instruments and H_7
Derivatives Instruments and Hedging Activities - Cash Flow Hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Hedging relationships | |||
Gains (Losses) Recognized in OCL on Derivatives | $ (151) | $ 210 | $ 218 |
Gains (Losses) Reclassified from AOCL into Income | (78) | 268 | 209 |
Commodity contracts | |||
Hedging relationships | |||
Gains (Losses) Recognized in OCL on Derivatives | (161) | 202 | 218 |
Commodity contracts | Cost of sales | |||
Hedging relationships | |||
Gains (Losses) Reclassified from AOCL into Income | (87) | 261 | 211 |
Foreign currency contracts | |||
Hedging relationships | |||
Gains (Losses) Recognized in OCL on Derivatives | 10 | 8 | 0 |
Foreign currency contracts | Net sales/Cost of sales | |||
Hedging relationships | |||
Gains (Losses) Reclassified from AOCL into Income | 10 | 7 | (1) |
Interest rate contracts | |||
Hedging relationships | |||
Gains (Losses) Recognized in OCL on Derivatives | 0 | 0 | 0 |
Interest rate contracts | Financing costs | |||
Hedging relationships | |||
Gains (Losses) Reclassified from AOCL into Income | $ (1) | $ 0 | $ (1) |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value of assets and liabilities | ||
Long-term debt | $ 1,591 | $ 1,733 |
Fair Value, Recurring | ||
Fair value of assets and liabilities | ||
Marketable securities | 4 | 3 |
Derivative assets | 26 | 60 |
Derivative liabilities | 76 | 64 |
Long-term debt | 1,591 | 1,733 |
Fair Value, Recurring | Level 1 | ||
Fair value of assets and liabilities | ||
Marketable securities | 4 | 3 |
Derivative assets | 26 | 49 |
Derivative liabilities | 43 | 51 |
Long-term debt | 0 | 0 |
Fair Value, Recurring | Level 2 | ||
Fair value of assets and liabilities | ||
Marketable securities | 0 | 0 |
Derivative assets | 0 | 11 |
Derivative liabilities | 33 | 13 |
Long-term debt | 1,591 | 1,733 |
Fair Value, Recurring | Level 3 | ||
Fair value of assets and liabilities | ||
Marketable securities | 0 | 0 |
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Long-term debt | $ 0 | $ 0 |
Financing Arrangements - Narrat
Financing Arrangements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | |||
Total debt | $ 2,188 | $ 2,483 | |
Guaranteed obligations of consolidated subsidiaries | 49 | 63 | |
Commercial paper | |||
Long-term debt | |||
Maximum aggregate principal amount | $ 1,000 | ||
Average amount of commercial paper outstanding | $ 397 | $ 522 | $ 670 |
Weighted average interest rate | 5.30% | 1.97% | 0.27% |
Weighted average maturity | 11 days | 16 days | 48 days |
Short-term borrowings | $ 327 | $ 390 | |
Basis spread | 5.50% | 4.75% | |
Weighted average maturity of outstanding balance | 11 days | 7 days |
Financing Arrangements - Schedu
Financing Arrangements - Schedule of Debt (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Arrangements | ||
Long-term debt, noncurrent, carrying value | $ 1,740 | $ 1,940 |
Total short-term borrowings, fair value | 448 | 543 |
Total debt, carrying value | 2,188 | 2,483 |
Long-term debt, noncurrent, fair value | 1,591 | 1,733 |
Total short-term borrowings, fair value | 448 | 543 |
Total debt, fair value | $ 2,039 | $ 2,276 |
2.900% senior notes due June 1, 2030 | ||
Financing Arrangements | ||
Debt, interest rate | 2.90% | 2.90% |
Long-term debt, noncurrent, carrying value | $ 596 | $ 595 |
Long-term debt, noncurrent, fair value | $ 536 | $ 510 |
3.200% senior notes due October 1, 2026 | ||
Financing Arrangements | ||
Debt, interest rate | 3.20% | 3.20% |
Long-term debt, noncurrent, carrying value | $ 499 | $ 498 |
Long-term debt, noncurrent, fair value | $ 479 | $ 470 |
3.900% senior notes due June 1, 2050 | ||
Financing Arrangements | ||
Debt, interest rate | 3.90% | 3.90% |
Long-term debt, noncurrent, carrying value | $ 391 | $ 390 |
Long-term debt, noncurrent, fair value | $ 300 | $ 293 |
6.625% senior notes due April 15, 2037 | ||
Financing Arrangements | ||
Debt, interest rate | 6.625% | 6.625% |
Long-term debt, noncurrent, carrying value | $ 253 | $ 253 |
Long-term debt, noncurrent, fair value | 275 | 256 |
Term loan credit agreement due December 16, 2024 | ||
Financing Arrangements | ||
Long-term debt, noncurrent, carrying value | 0 | 200 |
Long-term debt, noncurrent, fair value | 0 | 200 |
Revolving credit agreement | ||
Financing Arrangements | ||
Long-term debt, noncurrent, carrying value | 0 | 0 |
Long-term debt, noncurrent, fair value | 0 | 0 |
Other long-term borrowings | ||
Financing Arrangements | ||
Long-term debt, noncurrent, carrying value | 1 | 4 |
Long-term debt, noncurrent, fair value | 1 | 4 |
Commercial paper | ||
Financing Arrangements | ||
Short-term borrowings | 327 | 390 |
Short-term borrowings, fair value | 327 | 390 |
Other short-term borrowings | ||
Financing Arrangements | ||
Short-term borrowings | 121 | 153 |
Short-term borrowings, fair value | $ 121 | $ 153 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lease Cost | |||
Operating lease expense | $ 63 | $ 59 | $ 58 |
Variable operating lease expense | 26 | 27 | 26 |
Short term lease expense | 3 | 3 | 4 |
Lease expense | $ 92 | $ 89 | $ 88 |
Leases - Operating Lease Reconc
Leases - Operating Lease Reconciliation (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Reconciliation of future undiscounted cash flows to the operating lease liabilities and the related ROU assets | ||
2024 | $ 63 | |
2025 | 52 | |
2026 | 45 | |
2027 | 29 | |
2028 | 14 | |
Thereafter | 31 | |
Total future lease payments | 234 | |
Less imputed interest | 21 | |
Present value of future lease payments | 213 | |
Less current lease liabilities | 56 | $ 48 |
Non-current operating lease liabilities | 157 | $ 146 |
Operating lease assets | $ 208 | |
Operating Lease, Liability, Current, Statement of Financial Position | Accrued liabilities and liabilities held for sale | Accrued liabilities and liabilities held for sale |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | Other non-current liabilities | Other non-current liabilities |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other assets |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ 64 | $ 60 |
Right-of-use assets obtained in exchange for lease liabilities: | ||
Operating leases | $ 72 | $ 52 |
Weighted average remaining lease term: | ||
Weighted average remaining lease term | 5 years 3 months 18 days | 5 years 10 months 24 days |
Weighted average discount rate | 4.60% | 4.40% |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income before income taxes: | |||
U.S. | $ 244 | $ 111 | $ 39 |
Foreign | 595 | 557 | 209 |
Income before income taxes | 839 | 668 | 248 |
Current tax expense: | |||
U.S. federal | 6 | 8 | 2 |
State and local | 5 | 2 | 2 |
Foreign | 183 | 159 | 180 |
Total current tax expense | 194 | 169 | 184 |
Deferred tax expense (benefit): | |||
U.S. federal | 0 | 5 | (57) |
State and local | 1 | (1) | (2) |
Foreign | (7) | (7) | (2) |
Total deferred tax (benefit) | (6) | (3) | (61) |
Total provision for income taxes | $ 188 | $ 166 | $ 123 |
Income Taxes - Deferred Taxes (
Income Taxes - Deferred Taxes (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets attributable to: | ||
Employee benefit accruals | $ 32 | $ 30 |
Pensions and postretirement plans | 16 | 14 |
Lease liabilities | 54 | 49 |
Bad debt | 5 | 6 |
Inventory reserve | 16 | 22 |
Net operating loss carryforwards | 58 | 59 |
Tax credit carryforwards | 5 | 5 |
Derivative contracts | 16 | 0 |
Uniform capitalization | 12 | 9 |
Other | 35 | 33 |
Total deferred tax assets | 249 | 227 |
Valuation allowances | (46) | (51) |
Net deferred tax assets | 203 | 176 |
Deferred tax liabilities attributable to: | ||
Property, plant and equipment | 184 | 175 |
Identified intangibles | 33 | 48 |
Right-of-use lease assets | 51 | 46 |
Foreign withholding and state taxes on unremitted earnings | 1 | 1 |
Goodwill | 35 | 31 |
Brazilian indirect tax credits | 0 | 4 |
Derivative contracts | 0 | 3 |
Total deferred tax liabilities | 304 | 308 |
Net deferred tax liabilities | $ 101 | $ 132 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Operating losses | |||
Net operating loss carryforwards | $ 58,000,000 | $ 59,000,000 | |
Net operating loss carryforwards, federal | 2,000,000 | ||
Net operating loss carryforwards, state | 14,000,000 | ||
Net operating loss carryforwards, foreign | 42,000,000 | ||
Valuation allowances | (46,000,000) | $ (51,000,000) | |
Increase in foreign net operating loss carryforwards | $ 10,000,000 | ||
Provision for tax at U.S. statutory rate | 21% | 21% | 21% |
Accrual for foreign withholding on unremitted earnings from foreign subsidiaries | $ 1,000,000 | ||
Tax provision on distributions of unremitted earnings | 0 | ||
Unremitted earnings of foreign subsidiaries considered permanently reinvested | 2,700,000,000 | ||
Unrecognized tax benefits | 31,000,000 | $ 30,000,000 | $ 29,000,000 |
Unrecognized tax benefit that, if recognized, could affect the effective tax rate in future periods | 20,000,000 | ||
Remaining unrecognized tax benefits | 11,000,000 | ||
Unrecognized tax benefit for operating loss carryforwards that would have otherwise had a valuation allowance | 10,000,000 | ||
Unrecognized tax benefits for U.S. federal benefits | 1,000,000 | ||
Unrecognized tax benefits, accrued interest expense and penalties | 5,000,000 | ||
Amount of unrecognized tax benefits that may be recognized within 12 months | 4,000,000 | ||
Foreign Tax Authority | |||
Operating losses | |||
Loss carryforwards, valuation allowance | 23,000,000 | ||
Credit carryforwards, valuation allowance | 1,000,000 | ||
State and Local Jurisdiction | |||
Operating losses | |||
Loss carryforwards, valuation allowance | 14,000,000 | ||
Credit carryforwards, valuation allowance | 6,000,000 | ||
Domestic Tax Authority | |||
Operating losses | |||
Loss carryforwards, valuation allowance | 2,000,000 | ||
Canada | |||
Operating losses | |||
Net operating loss carryforwards, foreign | $ 24,000,000 | ||
Foreign carryforward period (in years) | 20 years | ||
Provision for tax at U.S. statutory rate | 26% | ||
Australia | |||
Operating losses | |||
Net operating loss carryforwards, foreign | $ 5,000,000 | ||
Brazil | |||
Operating losses | |||
Net operating loss carryforwards, foreign | $ 4,000,000 | ||
Provision for tax at U.S. statutory rate | 34% | ||
Argentina | |||
Operating losses | |||
Net operating loss carryforwards, foreign | $ 3,000,000 | ||
Foreign carryforward period (in years) | 5 years | ||
Malaysia | |||
Operating losses | |||
Net operating loss carryforwards, foreign | $ 3,000,000 | ||
Foreign carryforward period (in years) | 10 years | ||
Mexico | |||
Operating losses | |||
Provision for tax at U.S. statutory rate | 30% | ||
Germany | |||
Operating losses | |||
Provision for tax at U.S. statutory rate | 32% | ||
Colombia | |||
Operating losses | |||
Provision for tax at U.S. statutory rate | 35% | ||
Pakistan | |||
Operating losses | |||
Provision for tax at U.S. statutory rate | 39% |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Effective Tax Rate (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of effective tax rate | |||
Provision for tax at U.S. statutory rate | 21% | 21% | 21% |
Tax rate difference on foreign income | 6.10% | 7.20% | 13.30% |
Foreign currency foreign exchange | (1.80%) | (0.30%) | 3.20% |
Inflation adjustments | (0.50%) | (0.60%) | (4.00%) |
Tax benefit of intercompany financing | (0.40%) | (0.40%) | (1.60%) |
U.S. international tax implications | 1% | 2.20% | 0.80% |
Valuation allowance in Argentina | 0% | 0% | (0.40%) |
Favorable judgment on the treatment of credits and interest on indirect taxes | (0.20%) | (0.30%) | (4.80%) |
Unremitted earnings | 0% | 0% | (12.10%) |
Impairment charge related to Argentina joint venture | 0% | 0% | 35.50% |
Foreign-derived intangible income (FDII) | (1.50%) | (1.00%) | 0% |
Brazil exclusion of certain tax incentives | (1.20%) | (4.00%) | 0% |
Other items, net | (0.10%) | 1.10% | (1.30%) |
Provision at effective tax rate | 22.40% | 24.90% | 49.60% |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Balance at beginning of period | $ 30 | $ 29 |
Additions for tax positions related to prior years | 1 | 5 |
Reductions for tax positions related to prior years | (1) | (1) |
Additions based on tax positions related to the current year | 1 | 1 |
Reductions related to a lapse in the statute of limitations | 0 | (4) |
Balance at end of period | $ 31 | $ 30 |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits - Pension Obligation and Funded Status (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. Plans | |||
Benefit obligation | |||
Balance at the beginning of the period | $ 300 | $ 383 | |
Service cost | 3 | 4 | $ 4 |
Interest cost | 15 | 9 | 8 |
Benefits paid | (18) | (25) | |
Actuarial loss (gain) | 5 | (71) | |
Curtailment/settlement/amendments | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Balance at the end of the period | 305 | 300 | 383 |
Fair value of plan assets | |||
Balance at the beginning of the period | 317 | 420 | |
Actual return on plan assets | 25 | (79) | |
Employer contributions | 1 | 1 | |
Benefits paid | (18) | (25) | |
Plan settlements | 0 | 0 | |
Foreign currency translation | 0 | 0 | |
Balance at the end of the period | 325 | 317 | 420 |
Funded status | 20 | 17 | |
Non-U.S. Plans | |||
Benefit obligation | |||
Balance at the beginning of the period | 188 | 254 | |
Service cost | 4 | 3 | 4 |
Interest cost | 10 | 9 | 9 |
Benefits paid | (13) | (13) | |
Actuarial loss (gain) | 8 | (49) | |
Curtailment/settlement/amendments | (1) | (2) | |
Foreign currency translation | 4 | (14) | |
Balance at the end of the period | 200 | 188 | 254 |
Fair value of plan assets | |||
Balance at the beginning of the period | 189 | 244 | |
Actual return on plan assets | 17 | (30) | |
Employer contributions | 6 | 5 | |
Benefits paid | (13) | (13) | |
Plan settlements | (1) | (2) | |
Foreign currency translation | 2 | (15) | |
Balance at the end of the period | 200 | 189 | $ 244 |
Funded status | $ 0 | $ 1 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits - Pension Amounts Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current liabilities | $ (117) | $ (101) | |
Pension Plan | |||
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | |||
Accumulated benefit obligation | 485 | 469 | |
Pension Plan | U.S. Plans | |||
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current asset | 28 | 25 | |
Current liabilities | (1) | (1) | |
Non-current liabilities | (7) | (7) | |
Net asset (liability) recognized | 20 | 17 | |
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | |||
Net actuarial loss | 32 | 36 | |
Prior service (credit) cost | (2) | (3) | |
Net amount recognized | 30 | 33 | |
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | (8) | (8) | |
Accumulated benefit obligation | (8) | (8) | |
Fair value of plan assets | 0 | 0 | |
Components of net periodic benefit cost | |||
Service cost | 3 | 4 | $ 4 |
Interest cost | 15 | 9 | 8 |
Expected return on plan assets | (17) | (16) | (17) |
Amortization of actuarial (gain) loss | 1 | 0 | 0 |
Amortization of prior service cost (credit) | (1) | (1) | (1) |
Net periodic benefit cost | 1 | (4) | (6) |
Amounts recorded in other comprehensive income and net periodic benefit cost | |||
Net actuarial (gain) loss | (3) | 25 | (1) |
Prior service cost | 0 | 0 | 0 |
Amortization of actuarial gain (loss) | (1) | 0 | 0 |
Amortization of prior service (cost) credit | 1 | 1 | 1 |
Foreign currency translation | 0 | 0 | 0 |
Total recorded in other comprehensive (income) loss | (3) | 26 | 0 |
Net periodic benefit cost | 1 | (4) | (6) |
Total recorded in other comprehensive (income) loss and net periodic benefit cost | (2) | 22 | (6) |
Pension Plan | Non-U.S. Plans | |||
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current asset | 47 | 43 | |
Current liabilities | (2) | (1) | |
Non-current liabilities | (45) | (41) | |
Net asset (liability) recognized | 0 | 1 | |
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | |||
Net actuarial loss | 24 | 24 | |
Prior service (credit) cost | 0 | 0 | |
Net amount recognized | 24 | 24 | |
Information about plan obligations and assets for plans with an accumulated benefit obligation in excess of plan assets | |||
Projected benefit obligation | (51) | (45) | |
Accumulated benefit obligation | (40) | (35) | |
Fair value of plan assets | 4 | 3 | |
Components of net periodic benefit cost | |||
Service cost | 4 | 3 | 4 |
Interest cost | 10 | 9 | 9 |
Expected return on plan assets | (9) | (7) | (8) |
Amortization of actuarial (gain) loss | 1 | 1 | 2 |
Amortization of prior service cost (credit) | 0 | 0 | 0 |
Net periodic benefit cost | 6 | 6 | 7 |
Amounts recorded in other comprehensive income and net periodic benefit cost | |||
Net actuarial (gain) loss | 0 | (11) | (11) |
Prior service cost | 0 | 0 | 0 |
Amortization of actuarial gain (loss) | (1) | (1) | (2) |
Amortization of prior service (cost) credit | 0 | 0 | 0 |
Foreign currency translation | 1 | (2) | (11) |
Total recorded in other comprehensive (income) loss | 0 | (14) | (24) |
Net periodic benefit cost | 6 | 6 | 7 |
Total recorded in other comprehensive (income) loss and net periodic benefit cost | $ 6 | $ (8) | $ (17) |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits - Pension Assumptions (Details) - Pension Plan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
U.S. Plans | |||
Weighted average assumptions used to determine the company's obligations | |||
Discount rate | 5% | 5.19% | |
Rate of compensation increase | 3.83% | 3.92% | |
Cash balance interest credit rate | 4.53% | 4.21% | |
Weighted average assumptions used to determine the company's net periodic benefit cost | |||
Discount rate | 5.19% | 2.91% | 2.58% |
Expected long-term return on plan assets | 5.50% | 4.10% | 4.10% |
Rate of compensation increase | 3.92% | 4.18% | 4.26% |
Cash balance interest crediting rate | 4.21% | 4.11% | 3.76% |
Non-U.S. Plans | |||
Weighted average assumptions used to determine the company's obligations | |||
Discount rate | 5.24% | 5.66% | |
Rate of compensation increase | 3.76% | 3.83% | |
Cash balance interest credit rate | 0% | 0% | |
Weighted average assumptions used to determine the company's net periodic benefit cost | |||
Discount rate | 5.67% | 3.66% | 2.84% |
Expected long-term return on plan assets | 5.05% | 3.50% | 3.37% |
Rate of compensation increase | 3.83% | 3.77% | 3.54% |
Cash balance interest crediting rate | 0% | 0% | 0% |
Canada | |||
Weighted average assumptions used to determine the company's net periodic benefit cost | |||
Expected long-term return on plan assets | 4.66% |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits - Pension Plan Asset Weighted Average Asset Allocation (Details) - Pension Plan | Dec. 31, 2023 | Dec. 31, 2022 |
U.S. Plans | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 100% | 100% |
U.S. Plans | Equity securities | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 12% | 11% |
U.S. Plans | Equity securities | Minimum | ||
Plan assets | ||
Plan assets allocation percentage | 9% | |
U.S. Plans | Equity securities | Maximum | ||
Plan assets | ||
Plan assets allocation percentage | 19% | |
U.S. Plans | Debt securities | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 86% | 87% |
U.S. Plans | Debt securities | Minimum | ||
Plan assets | ||
Plan assets allocation percentage | 81% | |
U.S. Plans | Debt securities | Maximum | ||
Plan assets | ||
Plan assets allocation percentage | 91% | |
U.S. Plans | Cash and other | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 2% | 2% |
Non-U.S. Plans | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 100% | 100% |
Non-U.S. Plans | Equity securities | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 8% | 8% |
Non-U.S. Plans | Debt securities | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 78% | 77% |
Non-U.S. Plans | Cash and other | ||
Weighted average asset allocation | ||
Weighted average asset allocation | 14% | 15% |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits - Pension Plan Assets by Category and FV (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other | |||
Plan assets | |||
Redemption notification period | 95 days | ||
Pension Plan | U.S. Plans | |||
Plan assets | |||
Fair value of plan assets | $ 325 | $ 317 | $ 420 |
Pension Plan | U.S. Plans | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 24 | 22 | |
Pension Plan | U.S. Plans | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 16 | 14 | |
Pension Plan | U.S. Plans | Fixed income index- Long bond | |||
Plan assets | |||
Fair value of plan assets | 133 | 127 | |
Pension Plan | U.S. Plans | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | $ 89 | $ 89 | |
Pension Plan | U.S. Plans | Fixed income index - Government bond | Minimum | |||
Plan assets | |||
Fixed income securities maturity (in years) | 10 years | 10 years | |
Pension Plan | U.S. Plans | Other | |||
Plan assets | |||
Fair value of plan assets | $ 57 | $ 59 | |
Pension Plan | U.S. Plans | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 6 | 6 | |
Pension Plan | U.S. Plans | NAV | |||
Plan assets | |||
Fair value of plan assets | 57 | 59 | |
Pension Plan | U.S. Plans | NAV | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | NAV | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | NAV | Fixed income index- Long bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | NAV | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | NAV | Other | |||
Plan assets | |||
Fair value of plan assets | 57 | 59 | |
Pension Plan | U.S. Plans | NAV | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Fixed income index- Long bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Other | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 1 | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 2 | |||
Plan assets | |||
Fair value of plan assets | 268 | 258 | |
Pension Plan | U.S. Plans | Level 2 | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 24 | 22 | |
Pension Plan | U.S. Plans | Level 2 | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 16 | 14 | |
Pension Plan | U.S. Plans | Level 2 | Fixed income index- Long bond | |||
Plan assets | |||
Fair value of plan assets | 133 | 127 | |
Pension Plan | U.S. Plans | Level 2 | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 89 | 89 | |
Pension Plan | U.S. Plans | Level 2 | Other | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | U.S. Plans | Level 2 | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 6 | 6 | |
Pension Plan | Non-U.S. Plans | |||
Plan assets | |||
Fair value of plan assets | 200 | 189 | $ 244 |
Pension Plan | Non-U.S. Plans | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 10 | 9 | |
Pension Plan | Non-U.S. Plans | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 6 | 6 | |
Pension Plan | Non-U.S. Plans | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 78 | 99 | |
Pension Plan | Non-U.S. Plans | Fixed income index - Corporate bond | |||
Plan assets | |||
Fair value of plan assets | 79 | 46 | |
Pension Plan | Non-U.S. Plans | Other | |||
Plan assets | |||
Fair value of plan assets | 25 | 22 | |
Pension Plan | Non-U.S. Plans | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 2 | 7 | |
Pension Plan | Non-U.S. Plans | NAV | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Fixed income index - Corporate bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Other | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | NAV | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | |||
Plan assets | |||
Fair value of plan assets | 2 | 2 | |
Pension Plan | Non-U.S. Plans | Level 1 | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | Fixed income index - Corporate bond | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | Other | |||
Plan assets | |||
Fair value of plan assets | 0 | 0 | |
Pension Plan | Non-U.S. Plans | Level 1 | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | 2 | 2 | |
Pension Plan | Non-U.S. Plans | Level 2 | |||
Plan assets | |||
Fair value of plan assets | 198 | 187 | |
Pension Plan | Non-U.S. Plans | Level 2 | Equity index - U.S. | |||
Plan assets | |||
Fair value of plan assets | 10 | 9 | |
Pension Plan | Non-U.S. Plans | Level 2 | Equity index - International | |||
Plan assets | |||
Fair value of plan assets | 6 | 6 | |
Pension Plan | Non-U.S. Plans | Level 2 | Fixed income index - Government bond | |||
Plan assets | |||
Fair value of plan assets | 78 | 99 | |
Pension Plan | Non-U.S. Plans | Level 2 | Fixed income index - Corporate bond | |||
Plan assets | |||
Fair value of plan assets | 79 | 46 | |
Pension Plan | Non-U.S. Plans | Level 2 | Other | |||
Plan assets | |||
Fair value of plan assets | 25 | 22 | |
Pension Plan | Non-U.S. Plans | Level 2 | Cash & Short-term Investments | |||
Plan assets | |||
Fair value of plan assets | $ 0 | $ 5 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits - Pension Benefit Payments (Details) - Pension Plan - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
U.S. Plans | ||
Benefit plans | ||
Employer contributions | $ 1 | $ 1 |
Expected contribution in next fiscal year | 1 | |
Expected future benefit payments | ||
2024 | 26 | |
2025 | 26 | |
2026 | 26 | |
2027 | 27 | |
2028 | 24 | |
Thereafter | 114 | |
Non-U.S. Plans | ||
Benefit plans | ||
Employer contributions | 6 | $ 5 |
Expected contribution in next fiscal year | 4 | |
Expected future benefit payments | ||
2024 | 12 | |
2025 | 12 | |
2026 | 12 | |
2027 | 13 | |
2028 | 38 | |
Thereafter | $ 73 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits - Defined Contribution Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |||
Amounts charged to expense for defined contribution plans | $ 28 | $ 22 | $ 22 |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits - Postretirement Funded Status (Details) - Postemployment Retirement Benefits - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Benefit obligation | |||
Balance at the beginning of the period | $ 58 | $ 65 | |
Service cost | 1 | 1 | $ 1 |
Interest cost | 4 | 3 | 2 |
Amendments | 2 | 0 | |
Actuarial loss (gain) | 1 | (7) | |
Benefits paid | (4) | (4) | |
Foreign currency translation | 2 | 0 | |
Balance at the end of the period | 64 | 58 | $ 65 |
Fair value of plan assets | 0 | 0 | |
Funded status | $ (64) | $ (58) |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits - Postretirement Amounts Recognized (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Amounts recognized in the Consolidated Balance Sheets | |||
Non-current liabilities | $ (117) | $ (101) | |
Postemployment Retirement Benefits | |||
Amounts recognized in the Consolidated Balance Sheets | |||
Current liabilities | (4) | (5) | |
Non-current liabilities | (60) | (53) | |
Net asset (liability) recognized | (64) | (58) | |
Amounts recognized in accumulated other comprehensive loss, excluding tax effects, that have not yet been recognized as components of net periodic benefit cost | |||
Net actuarial loss | 4 | 1 | |
Prior service (credit) cost | 6 | 5 | |
Net amount recognized | 10 | 6 | |
Components of net periodic benefit cost | |||
Service cost | 1 | 1 | $ 1 |
Interest cost | 4 | 3 | 2 |
Amortization of actuarial (gain) loss | (1) | 0 | 1 |
Amortization of prior service cost (credit) | 1 | 0 | (2) |
Net periodic benefit cost | 5 | 4 | 2 |
Amounts recorded in other comprehensive income and net periodic benefit cost | |||
Net actuarial loss (gain) | 1 | (7) | (5) |
Prior service cost | 2 | 0 | 4 |
Amortization of prior service (cost) credit | (1) | 0 | 2 |
Amortization of actuarial gain (loss) | 1 | 0 | (1) |
Foreign currency translation | 1 | 0 | (4) |
Total recorded in other comprehensive (income) loss | 4 | (7) | (4) |
Net periodic benefit cost | 5 | 4 | 2 |
Total recorded in other comprehensive (income) loss and net periodic benefit cost | $ 9 | $ (3) | $ (2) |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits - Postretirement Assumptions and Trends (Details) - Postemployment Retirement Benefits | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Weighted average assumptions used to determine the company's obligations | |||
Discount rate | 7.37% | 7.30% | |
Weighted average assumptions used to determine the company's net periodic benefit cost | |||
Discount rate | 7.30% | 4.22% | 3.69% |
U.S. Plans | |||
Assumptions used in measuring benefit obligation | |||
2023 increase in per capita cost | 7.80% | ||
Ultimate trend | 4.50% | ||
Year ultimate trend reached | 2033 | ||
Canada | |||
Assumptions used in measuring benefit obligation | |||
2023 increase in per capita cost | 5.04% | ||
Ultimate trend | 4.05% | ||
Year ultimate trend reached | 2040 | ||
Brazil | |||
Assumptions used in measuring benefit obligation | |||
2023 increase in per capita cost | 8.94% | ||
Ultimate trend | 8.94% | ||
Year ultimate trend reached | 2023 |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits - Postretirement Benefit Payments (Details) - Postemployment Retirement Benefits $ in Millions | Dec. 31, 2023 USD ($) |
Expected future benefit payments | |
2024 | $ 4 |
2025 | 4 |
2026 | 4 |
2027 | 4 |
2028 | 4 |
Thereafter | $ 22 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits - Multiemployer Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) plan | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Multiemployer Plans | |||
Multiemployer benefit plan that company contributes to | plan | 1 | ||
Multiemployer plan, maximum contributions by Ingredion | false | ||
Multiemployer plan contributions | $ | $ 11 | $ 10 | $ 14 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock: | ||
Preferred stock, authorized (in shares) | 25,000,000 | 25,000,000 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Equity - Treasury Stock (Detail
Equity - Treasury Stock (Details) - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 26, 2022 | |
2022 Stock Repurchase Program | ||||
Treasury stock: | ||||
Stock repurchase program, number of shares authorized | 6,000 | |||
Treasury Stock | ||||
Treasury stock: | ||||
Purchase/acquisition of treasury stock, held in treasury (in shares) | 1,000 | 1,283 | 765 | |
Repurchases of common stock | $ 101 | $ 112 | $ 68 |
Equity - Share Activity (Detail
Equity - Share Activity (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Capital Stock Activity | |||
Balance at beginning of period (in shares) | 65,694 | 66,657 | 67,016 |
Stock options exercised (in shares) | (386) | (182) | (331) |
Purchase/acquisition of treasury stock, outstanding (in shares) | (1,000) | (1,283) | (765) |
Balance at end of period (in shares) | 65,239 | 65,694 | 66,657 |
Restricted Stock Units ("RSUs") | Employee | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | (108) | (95) | (69) |
Performance shares and other share-based awards | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | (51) | (43) | (6) |
Common Stock | |||
Capital Stock Activity | |||
Balance at beginning of period (in shares) | 77,811 | 77,811 | 77,811 |
Stock options exercised (in shares) | 0 | 0 | 0 |
Purchase/acquisition of treasury stock, held in treasury (in shares) | 0 | 0 | 0 |
Balance at end of period (in shares) | 77,811 | 77,811 | 77,811 |
Common Stock | Restricted Stock Units ("RSUs") | Employee | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | 0 | 0 | 0 |
Common Stock | Performance shares and other share-based awards | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | 0 | 0 | 0 |
Treasury Stock | |||
Capital Stock Activity | |||
Balance at beginning of period (in shares) | 12,117 | 11,154 | 10,795 |
Stock options exercised (in shares) | (386) | (182) | (331) |
Purchase/acquisition of treasury stock, held in treasury (in shares) | 1,000 | 1,283 | 765 |
Balance at end of period (in shares) | 12,572 | 12,117 | 11,154 |
Treasury Stock | Restricted Stock Units ("RSUs") | Employee | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | (108) | (95) | (69) |
Treasury Stock | Performance shares and other share-based awards | |||
Capital Stock Activity | |||
Issuance of share-based awards (in shares) | (51) | (43) | (6) |
Equity - Share-based Payments (
Equity - Share-based Payments (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation expense | |||
Pre-tax compensation expense | $ 33 | $ 29 | $ 23 |
Income tax benefit | (3) | (2) | (2) |
Total share-based compensation expense, net of income taxes | $ 30 | 27 | 21 |
Share-based Payment Arrangement, Disclosure [Abstract] | |||
Shares authorized under Stock Incentive Plan (in shares) | 5.4 | ||
Shares available for future grants under Stock Incentive Plan (in shares) | 5.4 | ||
Stock options | |||
Share-based compensation expense | |||
Pre-tax compensation expense | $ 4 | 4 | 3 |
Income tax benefit | 0 | 0 | 0 |
Total share-based compensation expense, net of income taxes | 4 | 4 | 3 |
Restricted Stock Units ("RSUs") | Employee | |||
Share-based compensation expense | |||
Pre-tax compensation expense | 15 | 13 | 12 |
Income tax benefit | (2) | (1) | (1) |
Total share-based compensation expense, net of income taxes | 13 | 12 | 11 |
Performance shares and other share-based awards | |||
Share-based compensation expense | |||
Pre-tax compensation expense | 14 | 12 | 8 |
Income tax benefit | (1) | (1) | (1) |
Total share-based compensation expense, net of income taxes | $ 13 | $ 11 | $ 7 |
Equity - Stock Options (Details
Equity - Stock Options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based compensation | |||
Options granted (in shares) | 197 | 281 | 358 |
Assumptions used to measure the fair value of awards | |||
Expected life (in years) | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Risk-free interest rate | 4% | 2% | 0.60% |
Expected volatility | 28.30% | 23.80% | 23.20% |
Expected dividend yield | 2.90% | 2.90% | 2.90% |
Stock options, Number of Options | |||
Outstanding at the beginning of the period (in shares) | 2,222 | ||
Granted (in shares) | 197 | 281 | 358 |
Exercised (in shares) | (386) | (182) | (331) |
Cancelled (in shares) | (80) | ||
Outstanding at the end of the period (in shares) | 1,953 | 2,222 | |
Exercisable at the end of the period (in shares) | 1,523 | ||
Stock options, Weighted Average Exercise Price per Share | |||
Outstanding at the beginning of the period (in dollars per share) | $ 92.32 | ||
Granted (in dollars per share) | 98.69 | ||
Exercised (in dollars per share) | 71.76 | ||
Cancelled (in dollars per share) | 102.66 | ||
Outstanding at the end of the period (in dollars per share) | 96.61 | $ 92.32 | |
Exercisable at the end of the period (in dollars per share) | $ 97.80 | ||
Additional information pertaining to stock options | |||
Average Remaining Contractual Term, Outstanding | 4 years 11 months 19 days | 5 years 1 month 28 days | |
Average Remaining Contractual Term, Exercisable | 4 years 10 days | ||
Aggregate Intrinsic Value, Outstanding (in dollars) | $ 29 | $ 24 | |
Aggregate Intrinsic Value, Exercisable (in dollars) | 22 | ||
Cash received from exercise of stock options | $ 28 | $ 11 | $ 21 |
Weighted average grant date fair value of stock options granted (in dollars per share) | $ 23.80 | $ 15.04 | $ 12.31 |
Total intrinsic value of stock options exercised (in dollars) | $ 13 | $ 6 | $ 10 |
Stock options | |||
Share-based compensation | |||
Term of award | 10 years | ||
Period of vesting | 3 years | ||
Additional information pertaining to stock options | |||
Unrecognized compensation cost | $ 3 | ||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 7 months 6 days |
Equity - Restricted Stock Units
Equity - Restricted Stock Units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other disclosures | ||||
Share-based payments subject to redemption | $ 55 | $ 48 | $ 36 | $ 30 |
Restricted Stock Units ("RSUs") | Employee | ||||
Share-based compensation | ||||
Vesting terms | 3 years | |||
Restricted stock unit activity | ||||
Non-vested at the beginning of the period (in shares) | 517 | |||
Granted (in shares) | 222 | |||
Vested (in shares) | (154) | |||
Cancelled (in shares) | (33) | |||
Non-vested at the end of the period (in shares) | 552 | 517 | ||
Weighted-average fair value per share | ||||
Non-vested at the beginning of the period (in dollars per share) | $ 88.04 | |||
Granted (in dollars per share) | 98.15 | |||
Vested (in dollars per share) | 87.91 | |||
Cancelled (in dollars per share) | 91.30 | |||
Non-vested at the end of the period (in dollars per share) | $ 92.05 | $ 88.04 | ||
Other disclosures | ||||
Fair value of awards vested during the year | $ 12 | $ 12 | $ 12 | |
Unrecognized compensation cost | $ 20 | |||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days | |||
Share-based payments subject to redemption | $ 28 |
Equity - Performance Shares (De
Equity - Performance Shares (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) metric tranche $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Dec. 31, 2020 USD ($) | |
Share-based compensation | ||||
Share-based payments subject to redemption | $ 55 | $ 48 | $ 36 | $ 30 |
Performance Shares | ||||
Share-based compensation | ||||
Number of tranches | metric | 2 | |||
Granted (in shares) | shares | 93 | 86 | 108 | |
Weighted-average fair value per share, granted (in dollars per share) | $ / shares | $ 114.26 | $ 138.85 | $ 100.29 | |
Cancelled (in shares) | shares | 34 | |||
Unrecognized compensation cost | $ 8 | |||
Remaining requisite service period (in years) | 1 year 9 months 18 days | |||
Share-based payments subject to redemption | $ 27 | $ 20 | ||
Performance shares, vesting based on TSR | ||||
Share-based compensation | ||||
Percentage of share-based compensation award | 50% | |||
Performance shares calculation period | 3 years | |||
Vesting terms | 3 years | |||
Performance shares, vesting based on TSR | Maximum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 200% | |||
Performance shares, vesting based on Adjusted ROIC | ||||
Share-based compensation | ||||
Percentage of share-based compensation award | 50% | |||
Performance shares calculation period | 3 years | |||
Vesting terms | 3 years | |||
Performance shares, vesting based on Adjusted ROIC | Minimum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 0% | |||
Performance shares, vesting based on Adjusted ROIC | Maximum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 200% | |||
2021 Awards | Performance Shares | ||||
Share-based compensation | ||||
Number of tranches | tranche | 2 | |||
Estimated pay out (as a percent) | 200% | |||
2021 Awards | Performance shares, vesting based on Adjusted ROIC | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 100% | |||
2020 Awards | Performance Shares | ||||
Share-based compensation | ||||
Award pay out achieved (as a percent) | 77% |
Equity - Other Share-based Awar
Equity - Other Share-based Awards under the SIP (Details) - USD ($) shares in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Other share-based awards under the SIP | |||
Amount of Directors' retainer paid in stock | $ 150,000 | ||
Total share-based compensation expense included in net income | 33,000,000 | $ 29,000,000 | $ 23,000,000 |
Restricted Stock Units ("RSUs") | Director | |||
Other share-based awards under the SIP | |||
Total share-based compensation expense included in net income | $ 2,000,000 | $ 2,000,000 | $ 2,000,000 |
Awards outstanding (in shares) | 235 | ||
Carrying value of share units outstanding | $ 15,000,000 | ||
Restricted Stock Units ("RSUs") | Director | Minimum | |||
Other share-based awards under the SIP | |||
Minimum period over which deferred shares may be transferred after director's termination of service | 6 months | ||
Restricted Stock Units ("RSUs") | Director | Maximum | |||
Other share-based awards under the SIP | |||
Minimum period over which deferred shares may be transferred after director's termination of service | 10 years 6 months |
Equity - AOCL (Details)
Equity - AOCL (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the period | $ 3,147 | ||
Other comprehensive (loss) income before reclassification adjustments | (106) | $ 100 | $ 146 |
(Income) reclassified from accumulated other comprehensive loss | 79 | (268) | 102 |
Tax (provision) | 19 | 17 | (12) |
Net other comprehensive income | (8) | (151) | 236 |
Balance at the end of the period | 3,538 | 3,147 | |
Accumulated Other Comprehensive Loss | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the period | (1,048) | (897) | (1,133) |
Balance at the end of the period | (1,056) | (1,048) | (897) |
Cumulative Translation Adjustment | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the period | (1,008) | (903) | (1,114) |
Other comprehensive (loss) income before reclassification adjustments | 47 | (105) | (100) |
(Income) reclassified from accumulated other comprehensive loss | 0 | 0 | 311 |
Tax (provision) | 0 | 0 | 0 |
Net other comprehensive income | 47 | (105) | 211 |
Balance at the end of the period | (961) | (1,008) | (903) |
Hedging Activities | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the period | 6 | 48 | 42 |
Other comprehensive (loss) income before reclassification adjustments | (151) | 210 | 218 |
(Income) reclassified from accumulated other comprehensive loss | 78 | (268) | (209) |
Tax (provision) | 19 | 16 | (3) |
Net other comprehensive income | (54) | (42) | 6 |
Balance at the end of the period | (48) | 6 | 48 |
Pension and Postretirement Adjustment | |||
Accumulated Other Comprehensive Loss | |||
Balance at the beginning of the period | (46) | (42) | (61) |
Other comprehensive (loss) income before reclassification adjustments | (2) | (5) | 28 |
(Income) reclassified from accumulated other comprehensive loss | 1 | 0 | 0 |
Tax (provision) | 0 | 1 | (9) |
Net other comprehensive income | (1) | (4) | 19 |
Balance at the end of the period | $ (47) | $ (46) | $ (42) |
Equity - EPS (Details)
Equity - EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Basic EPS: | |||||||||||
Net Income Available to Ingredion | $ 643 | $ 492 | $ 117 | ||||||||
Weighted average number of shares outstanding, basic | 66 | 66.2 | 67.1 | ||||||||
Basic earnings per common share of Ingredion (in dollars per share) | $ 2 | $ 2.39 | $ 2.46 | $ 2.89 | $ 1.73 | $ 1.61 | $ 2.14 | $ 1.94 | $ 9.74 | $ 7.43 | $ 1.74 |
Effect of Dilutive Securities: | |||||||||||
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards | 1 | 0.8 | 0.7 | ||||||||
Diluted EPS: | |||||||||||
Net Income Available to Ingredion | $ 643 | $ 492 | $ 117 | ||||||||
Weighted average number of shares outstanding - diluted, Total | 67 | 67 | 67.8 | ||||||||
Diluted earnings per common share of Ingredion (in dollars per share) | $ 1.97 | $ 2.36 | $ 2.42 | $ 2.85 | $ 1.71 | $ 1.59 | $ 2.12 | $ 1.92 | $ 9.60 | $ 7.34 | $ 1.73 |
Antidilutive securities excluded in calculation of diluted EPS: | |||||||||||
Antidilutive securities excluded from computation of earnings per share amount (in shares) | 0.5 | 1.4 | 0.9 |
Segment Information - Net Sales
Segment Information - Net Sales and Operating Income (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information | |||||||||||
Net sales | $ 1,921 | $ 2,033 | $ 2,069 | $ 2,137 | $ 1,987 | $ 2,023 | $ 2,044 | $ 1,892 | $ 8,160 | $ 7,946 | $ 6,894 |
Subtotal | 969 | 787 | 685 | ||||||||
Acquisition/integration costs | 0 | (1) | (3) | ||||||||
Restructuring/impairment charges | (11) | (4) | (47) | ||||||||
Impairment on disposition of assets | 0 | 0 | (340) | ||||||||
Other matters | (1) | (20) | 15 | ||||||||
Operating income | 957 | 762 | 310 | ||||||||
North America | |||||||||||
Segment information | |||||||||||
Net sales | 5,188 | 4,934 | 4,137 | ||||||||
South America | |||||||||||
Segment information | |||||||||||
Net sales | 1,062 | 1,124 | 1,057 | ||||||||
Asia- Pacific | |||||||||||
Segment information | |||||||||||
Net sales | 1,089 | 1,107 | 997 | ||||||||
EMEA | |||||||||||
Segment information | |||||||||||
Net sales | 821 | 781 | 703 | ||||||||
Operating Segments | North America | |||||||||||
Segment information | |||||||||||
Subtotal | 718 | 565 | 487 | ||||||||
Operating Segments | South America | |||||||||||
Segment information | |||||||||||
Subtotal | 142 | 169 | 138 | ||||||||
Operating Segments | Asia- Pacific | |||||||||||
Segment information | |||||||||||
Subtotal | 126 | 93 | 87 | ||||||||
Operating Segments | EMEA | |||||||||||
Segment information | |||||||||||
Subtotal | 156 | 110 | 106 | ||||||||
Corporate, Non-Segment | |||||||||||
Segment information | |||||||||||
Subtotal | $ (173) | $ (150) | $ (133) |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Segment information | ||
Total assets | $ 7,642 | $ 7,561 |
North America | ||
Segment information | ||
Total assets | 4,485 | 4,499 |
South America | ||
Segment information | ||
Total assets | 980 | 949 |
Asia- Pacific | ||
Segment information | ||
Total assets | 1,479 | 1,467 |
EMEA | ||
Segment information | ||
Total assets | $ 698 | $ 646 |
Segment Information - Depreciat
Segment Information - Depreciation, Store Expense and Capital Expenditures (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information | |||
Depreciation and amortization | $ 219 | $ 215 | $ 220 |
Mechanical stores expense | 62 | 55 | 55 |
Capital expenditures and mechanical stores purchases: | 316 | 300 | 300 |
North America | |||
Segment information | |||
Depreciation and amortization | 146 | 145 | 146 |
Mechanical stores expense | 47 | 43 | 43 |
Capital expenditures and mechanical stores purchases: | 183 | 178 | 166 |
South America | |||
Segment information | |||
Depreciation and amortization | 19 | 18 | 18 |
Mechanical stores expense | 6 | 4 | 6 |
Capital expenditures and mechanical stores purchases: | 42 | 31 | 38 |
Asia- Pacific | |||
Segment information | |||
Depreciation and amortization | 39 | 37 | 40 |
Mechanical stores expense | 5 | 4 | 3 |
Capital expenditures and mechanical stores purchases: | 68 | 72 | 81 |
EMEA | |||
Segment information | |||
Depreciation and amortization | 15 | 15 | 16 |
Mechanical stores expense | 4 | 4 | 3 |
Capital expenditures and mechanical stores purchases: | $ 23 | $ 19 | $ 15 |
Segment Information - Sales and
Segment Information - Sales and Long-lived Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment information | |||||||||||
Net sales | $ 1,921 | $ 2,033 | $ 2,069 | $ 2,137 | $ 1,987 | $ 2,023 | $ 2,044 | $ 1,892 | $ 8,160 | $ 7,946 | $ 6,894 |
Long-lived assets | 2,926 | 2,938 | 2,926 | 2,938 | |||||||
U.S. | |||||||||||
Segment information | |||||||||||
Net sales | 3,069 | 2,978 | 2,509 | ||||||||
Long-lived assets | 1,312 | 1,289 | 1,312 | 1,289 | |||||||
Mexico | |||||||||||
Segment information | |||||||||||
Net sales | 1,571 | 1,444 | 1,170 | ||||||||
Long-lived assets | 294 | 309 | 294 | 309 | |||||||
Brazil | |||||||||||
Segment information | |||||||||||
Net sales | 669 | 720 | 586 | ||||||||
Long-lived assets | 235 | 209 | 235 | 209 | |||||||
Canada | |||||||||||
Segment information | |||||||||||
Net sales | 548 | 512 | 459 | ||||||||
Long-lived assets | 288 | 273 | 288 | 273 | |||||||
China | |||||||||||
Segment information | |||||||||||
Long-lived assets | 164 | 144 | 164 | 144 | |||||||
Thailand | |||||||||||
Segment information | |||||||||||
Long-lived assets | 162 | 153 | 162 | 153 | |||||||
Germany | |||||||||||
Segment information | |||||||||||
Net sales | 413 | 342 | 309 | ||||||||
Long-lived assets | 133 | 126 | 133 | 126 | |||||||
Colombia | |||||||||||
Segment information | |||||||||||
Net sales | 332 | 333 | 260 | ||||||||
South Korea | |||||||||||
Segment information | |||||||||||
Net sales | 325 | 356 | 323 | ||||||||
Others | |||||||||||
Segment information | |||||||||||
Net sales | 1,233 | 1,261 | $ 1,278 | ||||||||
Long-lived assets | $ 338 | $ 435 | $ 338 | $ 435 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 | |
Commitments and Contingencies | ||||
Tax benefit related to the exclusion of certain tax incentives | $ 27 | |||
Brazilian deferred tax credits | 4 | $ 0 | ||
Reduction in Taxes | Foreign Tax Authority | Brazil | ||||
Commitments and Contingencies | ||||
Brazilian deferred tax credits | 27 | 32 | ||
Reduction in Taxes | Foreign Tax Authority | Brazil | Other Assets and Prepaid Expenses | ||||
Commitments and Contingencies | ||||
Remaining indirect tax credits | $ 17 | $ 5 | ||
Reduction in Taxes | Foreign Tax Authority | Tax years 2015 - 2018 | Brazil | ||||
Commitments and Contingencies | ||||
Amount of indirect tax credits expected to receive | $ 15 | |||
Reduction in Taxes | Foreign Tax Authority | Tax years 2015 - 2018 | Other Operating Expense (Income) | Brazil | ||||
Commitments and Contingencies | ||||
Foreign tax benefits | $ 15 |
Supplementary Information - Acc
Supplementary Information - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplementary Information | ||
Accounts receivable — trade | $ 1,145 | $ 1,200 |
Accounts receivable — other | 154 | 228 |
Allowance for credit losses | (20) | (17) |
Total accounts receivable, net | $ 1,279 | $ 1,411 |
Supplementary Information - Inv
Supplementary Information - Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplementary Information | ||
Finished and in process | $ 926 | $ 962 |
Raw materials | 434 | 539 |
Manufacturing supplies | 90 | 96 |
Total inventories | $ 1,450 | $ 1,597 |
Supplementary Information - PP&
Supplementary Information - PP&E (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, plant and equipment and depreciation | |||
Property, plant and equipment, at cost | $ 5,798 | $ 5,733 | |
Accumulated depreciation | (3,428) | (3,326) | |
Property, plant and equipment, net | 2,370 | 2,407 | |
Amount of interest capitalized to PP&E | 3 | 4 | $ 4 |
Depreciation expense | 193 | 189 | $ 194 |
Land | |||
Property, plant and equipment and depreciation | |||
Property, plant and equipment, at cost | 178 | 199 | |
Buildings | |||
Property, plant and equipment and depreciation | |||
Property, plant and equipment, at cost | 853 | 854 | |
Machinery and equipment | |||
Property, plant and equipment and depreciation | |||
Property, plant and equipment, at cost | $ 4,767 | $ 4,680 |
Supplementary Information - Sup
Supplementary Information - Supply Chain Finance Programs (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplementary Information | ||
Supplier finance program obligation | $ 153 | $ 175 |
Supplier Finance Program, Obligation, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable |
Supplementary Information - A_2
Supplementary Information - Accrued Liabilities and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Supplementary Information | ||
Compensation-related costs | $ 121 | $ 112 |
Current lease liabilities | 56 | 48 |
Dividends payable | 51 | 47 |
Taxes payable other than income taxes | 46 | 45 |
Liabilities held for sale | 51 | 0 |
Other accrued liabilities | 221 | 214 |
Total accrued liabilities and liabilities held for sale | $ 546 | $ 466 |
Operating Lease, Liability, Current, Statement of Financial Position | Total accrued liabilities and liabilities held for sale | Total accrued liabilities and liabilities held for sale |
Supplementary Information - Oth
Supplementary Information - Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Non-current liabilities: | ||
Non-current operating lease liabilities | $ 157 | $ 146 |
Pension and postretirement liabilities | 117 | 101 |
Deferred tax liabilities | 116 | 145 |
Other | 90 | 85 |
Total other non-current liabilities | $ 480 | $ 477 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position | Total other non-current liabilities | Total other non-current liabilities |
Supplementary Information - S_2
Supplementary Information - Supplemental Income Statements and Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Income Statements Information | |||
Research and development expense | $ 63 | $ 52 | $ 43 |
Supplemental Cash Flow Information | |||
Interest paid | 96 | 82 | 72 |
Income taxes paid | $ 157 | $ 187 | $ 168 |
Supplementary Information - Qua
Supplementary Information - Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Supplementary Information | |||||||||||
Net sales | $ 1,921 | $ 2,033 | $ 2,069 | $ 2,137 | $ 1,987 | $ 2,023 | $ 2,044 | $ 1,892 | $ 8,160 | $ 7,946 | $ 6,894 |
Gross profit | 400 | 421 | 441 | 487 | 351 | 374 | 390 | 379 | 1,749 | 1,494 | 1,331 |
Net income attributable to Ingredion | $ 131 | $ 158 | $ 163 | $ 191 | $ 114 | $ 106 | $ 142 | $ 130 | $ 643 | $ 492 | $ 117 |
Basic earnings per common share of Ingredion (in dollars per share) | $ 2 | $ 2.39 | $ 2.46 | $ 2.89 | $ 1.73 | $ 1.61 | $ 2.14 | $ 1.94 | $ 9.74 | $ 7.43 | $ 1.74 |
Diluted earnings per common share of Ingredion (in dollars per share) | 1.97 | 2.36 | 2.42 | 2.85 | 1.71 | 1.59 | 2.12 | 1.92 | $ 9.60 | $ 7.34 | $ 1.73 |
Per share dividends declared (in dollars per share) | $ 0.78 | $ 0.78 | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.71 | $ 0.65 | $ 0.65 |