Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | May 04, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-13397 | |
Entity Registrant Name | Ingredion Inc | |
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, $.01 par value per share | |
Trading Symbol | INGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 66,219,580 | |
Entity Central Index Key | 0001046257 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (Loss) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Income (Loss) | ||
Net sales | $ 1,892 | $ 1,614 |
Cost of sales | 1,513 | 1,263 |
Gross profit | 379 | 351 |
Operating expenses | 169 | 153 |
Other operating (income) | (2) | (2) |
Restructuring/impairment charges | 2 | 370 |
Operating income (loss) | 210 | (170) |
Financing costs | 24 | 19 |
Other non-operating (income) | (1) | (1) |
Income (loss) before income taxes | 187 | (188) |
Provision for income taxes | 54 | 55 |
Net income (loss) | 133 | (243) |
Less: Net income attributable to non-controlling interests | 3 | 3 |
Net income (loss) attributable to Ingredion | $ 130 | $ (246) |
Weighted average common shares outstanding: | ||
Basic | 66.9 | 67.3 |
Diluted | 67.6 | 67.3 |
Earnings (loss) per common share of Ingredion: | ||
Basic | $ 1.94 | $ (3.66) |
Diluted | $ 1.92 | $ (3.66) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Net income (loss) | $ 133 | $ (243) |
Other comprehensive income: | ||
Gains on cash flow hedges, net of income tax effect of $46 and $7, respectively | 130 | 22 |
(Gains) on cash flow hedges reclassified to earnings, net of income tax effect of $12 and $ - , respectively | (34) | (1) |
Currency translation adjustment | 38 | (52) |
Comprehensive income (loss) | 267 | (274) |
Less: Comprehensive income attributable to non-controlling interests | 2 | 5 |
Comprehensive income (loss) attributable to Ingredion | $ 265 | $ (279) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) | ||
Gains (losses) on cash flow hedges, income tax effect | $ (46) | $ (7) |
(Gains) losses on cash flow hedges reclassified to earnings, net of income tax effect | $ 12 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 324 | $ 328 |
Short-term investments | 5 | 4 |
Accounts receivable, net | 1,431 | 1,130 |
Inventories | 1,306 | 1,172 |
Prepaid expenses | 63 | 63 |
Total current assets | 3,129 | 2,697 |
Property, plant and equipment, net of accumulated depreciation of $3,304 and $3,232, respectively | 2,446 | 2,423 |
Intangible assets, net of accumulated amortization of $259 and $253, respectively | 1,339 | 1,348 |
Other assets | 521 | 531 |
Total assets | 7,435 | 6,999 |
Current liabilities: | ||
Short-term borrowings | 514 | 308 |
Accounts payable and accrued liabilities | 1,207 | 1,204 |
Total current liabilities | 1,721 | 1,512 |
Long-term debt | 1,739 | 1,738 |
Other non-current liabilities | 561 | 524 |
Total liabilities | 4,021 | 3,774 |
Share-based payments subject to redemption | 31 | 36 |
Redeemable non-controlling interests | 71 | 71 |
Ingredion stockholders' equity: | ||
Preferred stock - authorized 25,000,000 shares - $0.01 par value, none issued | ||
Common stock - authorized 200,000,000 shares - $0.01 par value, 77,810,875 issued at March 31, 2022 and December 31, 2021 | 1 | 1 |
Additional paid-in capital | 1,160 | 1,158 |
Less: Treasury stock (common stock: 11,464,034 and 11,154,203 shares at March 31, 2022 and December 31, 2021, respectively) at cost | (1,091) | (1,061) |
Accumulated other comprehensive loss | (763) | (897) |
Retained earnings | 3,986 | 3,899 |
Total Ingredion stockholders' equity | 3,293 | 3,100 |
Non-redeemable non-controlling interests | 19 | 18 |
Total equity | 3,312 | 3,118 |
Total liabilities and equity | $ 7,435 | $ 6,999 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Property, plant and equipment, Accumulated depreciation | $ 3,304 | $ 3,232 |
Intangible assets, Accumulated amortization | $ 259 | $ 253 |
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) | 77,810,875 | 77,810,875 |
Treasury stock (in shares) | 11,464,034 | 11,154,203 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Noncontrolling Interest | Total |
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) | (246) | 4 | |||||
Dividends declared | (44) | ||||||
Repurchases of common stock | (14) | ||||||
Share-based compensation, net of issuance | 5 | 16 | |||||
Other comprehensive income (loss) | (31) | 1 | |||||
Balance at end of period at Mar. 31, 2021 | 1 | 1,155 | (1,022) | (1,164) | 3,667 | 26 | |
Balance at beginning of period at Dec. 31, 2021 | 1 | 1,158 | (1,061) | (897) | 3,899 | 18 | $ 3,118 |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 130 | 3 | |||||
Dividends declared | (43) | ||||||
Repurchases of common stock | (39) | ||||||
Share-based compensation, net of issuance | 2 | 9 | |||||
Other comprehensive income (loss) | 134 | (2) | |||||
Balance at end of period at Mar. 31, 2022 | $ 1 | $ 1,160 | $ (1,091) | $ (763) | $ 3,986 | $ 19 | $ 3,312 |
Condensed Consolidated Statem_5
Condensed Consolidated Statement of Redeemable Equity $ in Millions | USD ($) |
Share-based Payments Subject to Redemption, Beginning Balance at Dec. 31, 2020 | $ 30 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | (9) |
Share-based Payments Subject to Redemption, Ending Balance at Mar. 31, 2021 | 21 |
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2020 | 70 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | (1) |
Other comprehensive income (loss) | 1 |
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2021 | 70 |
Share-based Payments Subject to Redemption, Beginning Balance at Dec. 31, 2021 | 36 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | (5) |
Share-based Payments Subject to Redemption, Ending Balance at Mar. 31, 2022 | 31 |
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2021 | 71 |
Redeemable Non-Controlling Interests, Ending Balance at Mar. 31, 2022 | $ 71 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash (used for) provided by operating activities | ||
Net income (loss) | $ 133 | $ (243) |
Non-cash charges to net income (loss): | ||
Depreciation and amortization | 53 | 52 |
Mechanical stores expense | 13 | 14 |
Impairment charge for assets held for sale | 360 | |
Deferred income taxes | 3 | (4) |
Other non-cash charges | 15 | 7 |
Changes in working capital: | ||
Accounts receivable and prepaid expenses | (126) | (56) |
Inventories | (119) | (69) |
Accounts payable and accrued liabilities | (45) | (5) |
Margin accounts | 28 | (16) |
Other | (7) | (18) |
Cash (used for) provided by operating activities | (52) | 22 |
Cash used for investing activities | ||
Capital expenditures and mechanical stores purchases | (85) | (65) |
Proceeds from disposal of manufacturing facilities and properties | 5 | 2 |
Other | 4 | (1) |
Cash used for investing activities | (76) | (64) |
Cash provided by (used for) financing activities | ||
Proceeds from borrowings | 147 | 46 |
Payments on debt | (123) | (36) |
Commercial paper borrowings, net | 178 | |
Repurchases of common stock, net | (39) | (14) |
(Settlements) issuances of common stock for share-based compensation, net | (1) | 7 |
Dividends paid, including to non-controlling interests | (43) | (43) |
Cash provided by (used for) financing activities | 119 | (40) |
Effects of foreign exchange rate changes on cash | 5 | (7) |
(Decrease) in cash and cash equivalents | (4) | (89) |
Cash and cash equivalents, beginning of period | 328 | 665 |
Cash and cash equivalents, end of period | $ 324 | $ 576 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2022 | |
Interim Financial Statements | |
Interim Financial Statements | 1. Interim Financial Statements References to the “Company,” “Ingredion,” “we,” “us,” and “our” shall mean Ingredion Incorporated (“Ingredion”) individually and together with its consolidated subsidiaries. These statements should be read in conjunction with the consolidated financial statements and the related notes to those statements contained in Ingredion’s Annual Report on Form 10-K for the year ended December 31, 2021. The unaudited Condensed Consolidated Financial Statements as of March 31, 2022 and for the quarter ended March 31, 2022 and 2021 included herein were prepared by management on the same basis as Ingredion’s audited Consolidated Financial Statements for the year ended December 31, 2021 and reflect all adjustments (consisting solely of normal recurring items unless otherwise noted) which are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Statements of Income (Loss), Condensed Consolidated Statements of Comprehensive Income (Loss), Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Equity and Redeemable Equity, and Condensed Consolidated Statements of Cash Flows. The results for the interim period are not necessarily indicative of the results expected for the full year or any other future period. |
Summary of Significant Accounti
Summary of Significant Accounting Standards and Policies | 3 Months Ended |
Mar. 31, 2022 | |
Description of the Business and Summary of Significant Accounting Policies | |
Summary of Significant Accounting Standards and Policies | 2. Summary of Significant Accounting Standards and Policies For detailed information about Ingredion’s significant accounting standards and policies, see Note 1 of the Notes to the Consolidated Financial Statements included in Ingredion’s Annual Report on Form 10-K for the year ended December 31, 2021. New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2022 | |
Acquisitions | |
Acquisitions | 3. Acquisitions On April 1, 2021, Ingredion acquired 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, Ingredion 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, which we preliminarily recorded on the acquisition date based on available information and incorporating our best estimates. Beginning at the acquisition date, our Condensed 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2022 | |
Investments | |
Investments | 4. Investments Investments consisted of the following as of: (in millions) March 31, 2022 December 31, 2021 Equity investments $ 19 $ 16 Equity method investments 106 104 Marketable securities 5 12 Total investments $ 130 $ 132 Amyris Joint Venture On June 1, 2021, Ingredion entered into an agreement with Amyris, Inc. (“Amyris”) for certain exclusive commercialization rights to Amyris’s 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), which included $18 million related to the non-exclusive intellectual property licenses, offset by the $10 million cash payment. Beginning June 1, 2021, Ingredion accounts for the investment under the equity method. Arcor Joint Venture On February 12, 2021, Ingredion entered into an agreement with an affiliate of Grupo Arcor, an Argentine food company, to establish Ingrear Holding S.A. (the “Arcor joint venture”), a joint venture to operate 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, 2021, Ingredion and Grupo Arcor completed all closing conditions, pending customary antitrust review, to combine the manufacturing facilities, finalize the transaction and formally establish the Arcor joint venture, which is managed by a jointly appointed team of executives and is accounted for under the equity method. We exchanged certain assets and liabilities with a fair value of $71 million from our Argentina, Chile and Uruguay operations for 49 percent of the outstanding shares of the Arcor joint venture valued at $64 million, as well as $7 million of other consideration, including cash, from Grupo Arcor as of August 2, 2021. The transaction also resulted in an impairment charge for the transferred assets and liabilities more fully described in Note 5. Beginning on the dates Ingredion entered into the agreements for equity method investees, our share of income from them is included in Other operating (income). Ingredion incurred $6 million of pre-tax transaction and integration costs to acquire the Arcor and Amyris joint venture investments in 2021. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Impairment Charges | |
Restructuring and Impairment Charges | 5. Restructuring and Impairment Charges For the first quarter of 2022, Ingredion recorded $2 million of pre-tax restructuring charges. For the first quarter of 2021, we recorded a total of $370 million of pre-tax restructuring and impairment charges, consisting of $360 million of pre-tax impairment charges and $10 million of pre-tax restructuring charges. Restructuring Charges For the first quarter of 2022, we recorded $2 million of pre-tax net restructuring related charges, which included $1 million of costs as part of our Cost Smart Cost of sales program and $1 million of costs associated with our Cost Smart selling, general and administrative expense (“SG&A”) program. For the first quarter of 2021, A summary of Ingredion’s severance accrual at March 31, 2022, which we expect to fully pay in 2022, is as follows ($ in millions): Balance in severance accrual as of December 31, 2021 $ 3 Payments made to terminated employees (1) Balance in severance accrual as of March 31, 2022 $ 2 Impairment Charges At the announcement of our agreement to invest in the Arcor joint venture during the first quarter of 2021, we reclassified assets and liabilities we expected to contribute to the joint venture as held for sale in Other assets in the Condensed Consolidated Balance Sheets and we recorded an impairment charge of $360 million based on our preliminary estimates of their fair value. Of the $360 million impairment charge for the net assets contributed to the Arcor joint venture during the first quarter of 2021, $311 million was related to the write-off of the cumulative translation losses associated with the contributed net assets and $49 million was related to the write-down of the contributed net assets. |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives Instruments and Hedging Activities | |
Derivatives Instruments and Hedging Activities | 6. Derivative Instruments and Hedging Activities Ingredion is 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 have no collateral to counterparties under collateral funding arrangements as of March 31, 2022. Derivative financial instruments used by Ingredion consist primarily of commodity-related futures, options and swap contracts, foreign currency-related forward contracts, interest rate swaps and treasury locks (“T-Locks”). Commodity price hedging 12 For certain corn derivative instruments that are not designated as cash flow hedging instruments for accounting purposes, all realized and unrealized gains and losses from these instruments are recognized in cost of sales during each accounting period. We enter these derivative instruments to further mitigate commodity and basis price risks related to anticipated purchases of corn. During the first quarter of 2022, Ingredion recognized a $2 million gain on non-designated commodity contracts compared to a $1 million loss on non-designated commodity contracts during the first quarter of 2021. For commodity hedges designated as cash flow hedges for accounting purposes, unrealized gains and losses associated with marking the commodity hedging contracts to market (fair value) are recorded as a component of Other comprehensive loss (“OCL”) and included in the equity section of the Condensed Consolidated Balance Sheets as part of Accumulated other comprehensive loss (“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. Ingredion assesses the effectiveness of a commodity hedge contract based on changes in the contract’s fair value. The changes in the market value of such contracts have historically been, and are expected to continue to be, highly effective at offsetting changes in the price of the hedged items. Gains and losses from cash flow hedging instruments reclassified from AOCL to earnings are reported as Cash provided by operating activities on the Condensed Consolidated Statements of Cash Flows. Ingredion had outstanding futures and option contracts that hedged the forecasted purchase of approximately 107 million and 135 million bushels of corn as of March 31, 2022 and December 31. 2021, respectively. Ingredion also had outstanding swap contracts that hedged the forecasted purchase of approximately 31 million and 35 million mmbtus of natural gas as of March 31, 2022 and December 31, 2021, respectively. Foreign currency hedging Ingredion hedges certain assets using foreign currency derivatives not designated as hedging instruments for accounting purposes, which had a notional value of $466 million and $360 million as of March 31, 2022 and December 31, 2021, respectively. Ingredion also hedges certain liabilities using foreign currency derivatives not designated as hedging instruments, which had a notional value of $223 million and $205 million as of March 31, 2022 and December 31 2021, respectively. Ingredion hedges certain assets using foreign currency derivative instruments that are designated as cash flow hedging instruments for accounting purposes, which had a notional value of $350 million and $505 million as of March 31, 2022 and December 31, 2021, respectively. Ingredion also hedges certain liability positions using foreign currency derivative instruments that are designated as cash flow hedging instruments for accounting purposes, which had a notional value of $578 million and $708 million as of March 31, 2022 and December 31, 2021, respectively. Interest rate hedging Ingredion periodically enters into interest rate swaps to hedge its exposure to interest rate changes. The changes in fair value of interest rate swaps designated as hedging instruments that effectively offset the variability in the fair value of outstanding debt obligations are reported in earnings. These amounts offset the gains or losses (the changes in fair value) of the hedged debt instruments that are attributable to changes in interest rates (the hedged risk), which are also recognized in earnings. Ingredion did not have any outstanding interest rate swaps as of March 31, 2022 or December 31, 2021. Ingredion periodically enters into T-Locks to hedge its exposure to interest rate changes. The T-Locks are designated as hedges of the variability in cash flows associated with future interest payments caused by market fluctuations in the benchmark interest rate until the fixed interest rate is established and are accounted for as cash flow hedges. Accordingly, changes in the fair value of the T-Locks are recorded to AOCL until the consummation of the underlying debt offering, at which time any realized gain (loss) is amortized to earnings over the life of the debt. During 2020, Ingredion entered into and settled T-Locks associated with the issuance of senior notes due in 2030 and 2050. The realized loss upon settlement of the T-Locks was recorded in AOCL and is amortized into earnings over the term of the senior notes. Ingredion did not have outstanding T-Locks as of March 31, 2022 and December 31, 2021. The derivative instruments designated as cash flow hedges included in AOCL as of March 31, 2022 and December 31, 2021 are reflected below: Amount of Gains Derivatives in Cash Flow Hedging Relationships (Losses) included in AOCL (in millions) March 31, 2022 December 31, 2021 Commodity contracts, net of income tax effect of $51 and $19, respectively $ 146 $ 51 Foreign currency contracts, net of income tax effect of $2 and $ -, respectively 1 - Interest rate contracts, net of income tax effect of $1 (3) (3) Total $ 144 $ 48 The fair value and balance sheet location of the Ingredion’s derivative instruments, presented gross in the Condensed Consolidated Balance Sheets, are reflected below: Fair Value of Hedging Instruments as of March 31, 2022 (in millions) 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 $ 137 $ 8 $ 145 $ 14 $ 4 $ 18 Other assets 35 — 35 — 3 3 Assets 172 8 180 14 7 21 Accounts payable and accrued liabilities 30 8 38 10 6 16 Non-current liabilities 1 — 1 — 7 7 Liabilities 31 8 39 10 13 23 Net Assets/(Liabilities) $ 141 $ — $ 141 $ 4 $ (6) $ (2) Fair Value of Hedging Instruments as of December 31, 2021 (in millions) 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 $ 45 $ 9 $ 54 $ 4 $ 3 $ 7 Other assets 7 6 13 — — — Assets 52 15 67 4 3 7 Accounts payable and accrued liabilities 5 12 17 2 4 6 Non-current liabilities 2 6 8 — 1 1 Liabilities 7 18 25 2 5 7 Net Assets/(Liabilities) $ 45 $ (3) $ 42 $ 2 $ (2) $ — Additional information relating to the Ingredion’s derivative instruments is presented below: Derivatives in Cash Flow Gains Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Three Months Ended March 31, Income Statement Three Months Ended March 31, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 171 $ 27 Cost of sales $ 44 $ (1) Foreign currency contracts 5 2 Net sales/Cost of sales 2 2 Interest rate contracts — — Financing costs, net — — Total $ 176 $ 29 $ 46 $ 1 As of March 31, 2022, AOCL included $142 million of net gains (net of income taxes of $50 million) on commodities-related derivatives instruments, foreign currency hedges, and T-Locks designated as cash flow hedges that are expected to be reclassified into earnings during the next 12 months. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 7. 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 March 31, 2022 As of December 31, 2021 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Available for sale securities $ 5 $ 5 $ — $ — $ 12 $ 12 $ — $ — Derivative assets 201 134 67 — 74 49 25 — Derivative liabilities 62 59 3 — 32 22 10 — Long-term debt 1,763 — 1,763 — 1,957 — 1,957 — The carrying values of cash equivalents, short-term investments, accounts receivable, accounts payable and short-term borrowings approximate fair values. Commodity futures, options and swaps contracts are recognized at fair value. Foreign currency forward contracts, swaps and options are also recognized at fair value. The fair value of Ingredion’s Long-term debt is estimated based on quotations of major securities dealers who are market makers in the securities. |
Financing Arrangements
Financing Arrangements | 3 Months Ended |
Mar. 31, 2022 | |
Financing Arrangements | |
Financing Arrangements | 8. Financing Arrangements Presented below are Ingredion’s debt carrying amounts, net of related discounts, premiums, and debt issuance costs as of March 31, 2022 and December 31, 2021: As of As of (in millions) March 31, 2022 December 31, 2021 2.900% senior notes due June 1, 2030 $ 595 $ 595 3.200% senior notes due October 1, 2026 498 498 3.900% senior notes due June 1, 2050 390 390 6.625% senior notes due April 15, 2037 253 253 Revolving credit agreement — — Other long-term borrowings 3 2 Total long-term debt 1,739 1,738 Commercial paper 428 250 Other short-term borrowings 86 58 Total short-term borrowings 514 308 Total debt $ 2,253 $ 2,046 On July 27, 2021 Ingredion established a commercial paper program under which Ingredion may issue senior unsecured notes of short maturities up to a maximum aggregate principal amount of $1 billion outstanding at any time. The notes may be sold from time to time on customary terms in the U.S. commercial paper market. Ingredion intends to use the note proceeds for general corporate purposes. During 2022, the average amount of commercial paper outstanding was $353 million with an average interest rate of 0.38 percent and a weighted average maturity of 27 days . As of March 31, 2022, $428 million of commercial paper was outstanding with an average interest rate of 0.99 percent and a weighted average maturity of 14 days . As of December 31, 2021, $250 million of commercial paper was outstanding with an average interest rate of 0.35 percent and a weighted average maturity of 40 days . The amount of commercial paper outstanding under this program in 2022 is expected to fluctuate. Other short-term borrowings as of March 31, 2022 and December 31, 2021, primarily include amounts outstanding under various unsecured local country operating lines of credit. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 9. Commitments and Contingencies In May 2021, the Brazilian Supreme Court (“Court”) issued its ruling related to the calculation of certain indirect taxes, which affirmed the Federal Court of Appeals (“Lower Court”) rulings that Ingredion had received in previous years and affirmed that Ingredion is entitled to previously recorded tax credits. The Court ruling ensured that Ingredion is entitled to $15 million of additional credits from the period of 2015 to 2018 that were previously unrecorded pending a final Court ruling. In the second quarter of 2021, Ingredion recorded the $15 million of additional credits within Other operating (income) in the Condensed Consolidated Statements of Income (Loss). As of March 31, 2022, Ingredion has $41 million of remaining indirect tax credits recorded in Other assets and Prepaid expenses on the Condensed Consolidated Balance Sheets that result in deferred income taxes of $3 million. We will use the income tax offsets to eliminate our Brazilian federal tax payments in 2022 and future years, including the income tax payable for the indirect taxes recovered. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2022 | |
Taxes | |
Taxes | 10. Income Taxes In the first quarter of 2022, the U.S. Treasury published final foreign tax credit regulations that limit our ability to claim foreign tax credits from certain countries, primarily in South America. As a result, Ingredion recorded a provisional tax liability and will continue to assess the impact of the regulations on our Condensed Consolidated Financial Statements. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Mar. 31, 2022 | |
Pension and Other Postretirement Benefits | |
Pension and Other Postretirement Benefits | 11. Pension and Other Postretirement Benefits The following table sets forth the components of net periodic benefit cost of the U.S. and non-U.S. defined benefit pension plans for the periods presented: Three Months Ended March 31, U.S. Plans Non-U.S. Plans (in millions) 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 2 2 2 3 Expected return on plan assets (4) (5) (2) (2) Amortization of actuarial loss — — — 1 Net periodic benefit cost (a) $ (1) $ (2) $ 1 $ 3 Ingredion currently anticipates that we will make approximately $4 million in cash contributions to our pension plans in 2022, consisting of contributions of $3 million to our non-U.S. pension plans and $1 million to our U.S. pension plans. For the first quarter of 2022, we made cash contributions of approximately $1 million to the non-U.S. plans and an insignificant amount to the U.S. plans. The following table sets forth the components of net postretirement benefit cost for the periods presented: Three Months Ended March 31, (in millions) 2022 2021 Service cost $ — $ — Interest cost 1 1 Amortization of prior service credit — (1) Net periodic benefit cost (a) $ 1 $ — (a) The service cost component of net periodic benefit cost is presented within either Cost of sales or Operating expenses on the Condensed Consolidated Statements of Income (Loss). The interest cost, expected return on plan assets, amortization of prior service credit, and amortization of actuarial loss components of net periodic benefit cost are presented as Other, non-operating income on the Condensed Consolidated Statements of Income (Loss). |
Equity
Equity | 3 Months Ended |
Mar. 31, 2022 | |
Equity | |
Equity | 12. Equity Treasury stock During the first quarter of 2022, Ingredion repurchased 455 thousand outstanding shares of common stock in open market transactions at a net cost of $39 million. During the first quarter of 2021, Ingredion repurchased 158 thousand outstanding shares of common stock in open market transactions at a net cost of $14 million. Share-based payments: Three Months Ended March 31, (in millions) 2022 2021 Stock options: Pre-tax compensation expense $ 1 $ 1 Income tax benefit — — Stock option expense, net of income taxes 1 1 Restricted stock units ("RSUs"): Pre-tax compensation expense 3 3 Income tax benefit — — RSUs, net of income taxes 3 3 Performance shares and other share-based awards: Pre-tax compensation expense 3 1 Income tax benefit (1) — Performance shares and other share-based compensation expense, net of income taxes 2 1 Total share-based compensation: Pre-tax compensation expense 7 5 Income tax benefit (1) — Total share-based compensation expense, net of income taxes $ 6 $ 5 Stock Options: expense is generally recognized on a straight-line basis for all awards over the employee’s vesting period or over a one-year required service period for certain retirement-eligible executive level employees. Ingredion estimates a forfeiture rate at the time of grant and updates the estimate throughout the vesting period of the stock options within the amount of compensation costs recognized in each period. Ingredion granted non-qualified options to purchase 281 thousand shares and 358 thousand shares for the first quarter of 2022 and 2021, respectively. The fair value of each option grant for the periods presented was estimated using the Black-Scholes option-pricing model with the following assumptions: Three Months Ended March 31, 2022 2021 Expected life (in years) 5.5 5.5 Risk-free interest rate 2.0 % 0.6 % Expected volatility 23.8 % 23.2 % Expected dividend yield 2.9 % 2.9 % The expected life of options represents the weighted average period of time that options granted are expected to be outstanding giving consideration to vesting schedules and Ingredion’s 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 Ingredion’s common stock. Dividend yields are based on Ingredion’s dividend yield at the date of issuance. Stock option activity for the first quarter of 2022 was as follows: Number of Options (in thousands) Weighted Average Exercise Price per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2021 2,154 $ 90.39 5.26 $ 26 Granted 281 88.66 Exercised (36) 57.65 Cancelled (13) 117.27 Outstanding as of March 31, 2022 2,386 $ 90.54 5.69 $ 12 Exercisable as of March 31, 2022 1,805 $ 91.34 4.56 $ 12 For the first quarter of 2022, cash received from the exercise of stock options was approximately $2 million. As of March 31, 2022, the unrecognized compensation cost related to non-vested stock options totaled $6 million, which is expected to be amortized over the weighted-average period of approximately 2.0 years. Additional information pertaining to stock option activity is as follows for the periods presented: March 31, (dollars in millions, except per share) 2022 2021 Weighted average grant date fair value of stock options granted (per share) $ 15.04 $ 12.31 Total intrinsic value of stock options exercised $ 1 $ 5 Restricted Stock Units: The following table summarizes RSU activity in 2022: (RSUs in thousands) Number of Restricted Shares Weighted Average Fair Value per Share Non-vested as of December 31, 2021 486 $ 88.34 Granted 193 88.91 Vested (122) 91.40 Cancelled (14) 88.07 Non-vested as of March 31, 2022 543 $ 87.86 As of March 31, 2022, the total remaining unrecognized compensation cost related to RSUs was $30 million, which will be amortized on a weighted-average basis over approximately 1.9 years. Performance Shares: For the 2022 performance shares awarded based on Ingredion’s total shareholder return, the number of shares that ultimately vest can range from zero to 200 percent of the grant depending on Ingredion’s total shareholder return as compared to the total shareholder return of its 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 2022 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 Ingredion’s 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 date of the grant and the final number of shares that ultimately vest. Ingredion will estimate the potential share vesting at least annually to adjust the compensation expense for these awards over the vesting period to reflect Ingredion’s estimated Adjusted ROIC performance against the target. The total compensation expense for these awards is amortized over a three-year graded vesting schedule. For the first quarter of 2022, Ingredion awarded 86 thousand performance shares at a weighted average fair value of $138.85 per share. As of March 31, 2022, the unrecognized compensation cost related to these awards was $16 million, which will be amortized over the remaining requisite service period of 2.4 years. The 2019 performance share awards, whose three-year performance period has ended, achieved a zero percent payout of granted performance shares. There were no performance shares cancelled during 2022. Accumulated Other Comprehensive Loss: The following is a summary of Accumulated other comprehensive loss for the first quarter of 2022 and 2021: (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2021 $ (903) $ 48 $ (42) $ (897) Other comprehensive gain before reclassification adjustments 38 176 — 214 (Gain) reclassified from accumulated OCL — (46) — (46) Tax (provision) — (34) — (34) Net other comprehensive income 38 96 — 134 Balance, March 31, 2022 $ (865) $ 144 $ (42) $ (763) (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) before reclassification adjustments (52) 29 — (23) (Gain) reclassified from accumulated OCL — (1) — (1) Tax (provision) — (7) — (7) Net other comprehensive (loss) income (52) 21 — (31) Balance, March 31, 2021 $ (1,166) $ 63 $ (61) $ (1,164) Supplemental Information : The following Condensed Consolidated Statements of Equity and Redeemable Equity present the dividends per share for common stock for the periods indicated: Total Equity Non- Accumulated Redeemable Share-based Redeemable Additional Other Non- Payments Non- Preferred Common Paid-In Treasury Comprehensive Retained Controlling Subject to Controlling (in millions) Stock Stock Capital Stock Loss Earnings Interests Redemption Interests Balance, December 31, 2021 $ — $ 1 $ 1,158 $ (1,061) $ (897) $ 3,899 $ 18 $ 36 $ 71 Net income attributable to Ingredion 130 Net income attributable to non-controlling interests 3 Dividends declared, common stock ($0.65/share) (43) Repurchases of common stock (39) Share-based compensation, net of issuance 2 9 (5) Other comprehensive income (loss) 134 (2) Balance, March 31, 2022 $ — $ 1 $ 1,160 $ (1,091) $ (763) $ 3,986 $ 19 $ 31 $ 71 Total Equity Non- Accumulated Redeemable Share-based Redeemable Additional Other Non- Payments Non- Preferred Common Paid-In Treasury Comprehensive Retained Controlling Subject to Controlling (in millions) Stock Stock Capital Stock Loss Earnings Interests Redemption Interests Balance, December 31, 2020 $ — $ 1 $ 1,150 $ (1,024) $ (1,133) $ 3,957 $ 21 $ 30 $ 70 Net (loss) attributable to Ingredion (246) Net income attributable to non-controlling interests 4 (1) Dividends declared, common stock ($0.64/share) (44) Repurchases of common stock (14) Share-based compensation, net of issuance 5 16 (9) Other comprehensive (loss) income (31) 1 1 Balance, March 31, 2021 $ — $ 1 $ 1,155 $ (1,022) $ (1,164) $ 3,667 $ 26 $ 21 $ 70 Supplemental Information: Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (in millions, except per share amounts) Net Income Available to Ingredion Weighted Average Shares Per Share Amount Net Income Available to Ingredion Weighted Average Shares Per Share Amount Basic EPS $ 130 66.9 $ 1.94 $ (246) 67.3 $ (3.66) Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.7 — Diluted EPS $ 130 67.6 $ 1.92 $ (246) 67.3 $ (3.66) Approximately 1.3 million and 2.1 million share-based awards of common stock were excluded from the calculation of diluted EPS as the impact of their inclusion would have been anti-dilutive for the first quarter of 2022 and 2021, respectively. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Segment Information | 13. Segment Information Ingredion is principally engaged in the production and sale of starches and sweeteners for a wide range of industries and is managed geographically on a regional basis. The nature, amount, timing and uncertainty of Ingredion’s Net sales are managed by Ingredion 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, Argentina, Chile, Colombia, Ecuador, Peru and Uruguay. Our Asia-Pacific segment includes the PureCircle operating segment as well as businesses in South Korea, Thailand, China, Australia, Japan, New Zealand, Indonesia, Singapore, the Philippines, Malaysia, India and Vietnam. Our EMEA segment includes businesses in Pakistan, Germany, Poland, the United Kingdom and South Africa. Net sales by product are not presented because to do so would be impracticable. Presented below are Ingredion’s net sales to unaffiliated customers by reportable segment for the periods indicated: Three Months Ended March 31, (in millions) 2022 2021 Net sales to unaffiliated customers: North America $ 1,174 $ 945 South America 252 273 Asia-Pacific 272 235 EMEA 194 161 Total net sales $ 1,892 $ 1,614 Presented below are Ingredion’s operating income by reportable segment for the periods indicated: Three Months Ended March 31, (in millions) 2022 2021 Operating income: North America $ 156 $ 134 South America 38 40 Asia-Pacific 22 25 EMEA 31 31 Corporate (34) (29) Subtotal 213 201 Acquisition/integration costs (1) (1) Restructuring/impairment charges (2) (10) Impairment on assets held for sale — (360) Total operating income $ 210 $ (170) Presented below are Ingredion’s total assets by reportable segment as of March 31, 2022, and December 31, 2021: As of As of (in millions) March 31, 2022 December 31, 2021 Assets: North America (a) $ 4,523 $ 4,203 South America 907 799 Asia-Pacific 1,401 1,403 EMEA 604 594 Total assets $ 7,435 $ 6,999 (a) For purposes of presentation, North America includes Corporate assets. |
Supplementary Information
Supplementary Information | 3 Months Ended |
Mar. 31, 2022 | |
Supplementary Information | |
Supplementary Information | 14. Supplementary Financial Statement Information Accounts Receivable, Net Accounts receivable, net are summarized as follows: As of As of (in millions) March 31, 2022 December 31, 2021 Accounts receivable, net: Accounts receivable — trade $ 1,122 $ 950 Accounts receivable — other 324 193 Allowance for credit losses (15) (13) Total accounts receivable $ 1,431 $ 1,130 There were no significant contract assets or significant contract liabilities associated with our customers as of March 31, 2022 or December 31, 2021. Liabilities for volume discounts and incentives were also not significant as of March 31, 2022 or December 31, 2021. Inventories Inventories are summarized as follows: As of As of (in millions) March 31, 2022 December 31, 2021 Finished and in process $ 762 $ 688 Raw materials 428 380 Manufacturing supplies and other 116 104 Total inventories $ 1,306 $ 1,172 |
Summary of Significant Accoun_2
Summary of Significant Accounting Standards and Policies (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Description of the Business and Summary of Significant Accounting Policies | |
New Accounting Standards | New Accounting Standards In March 2020, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Investments | |
Schedule of investments | (in millions) March 31, 2022 December 31, 2021 Equity investments $ 19 $ 16 Equity method investments 106 104 Marketable securities 5 12 Total investments $ 130 $ 132 |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Restructuring and Impairment Charges | |
Summary of severance accrual | A summary of Ingredion’s severance accrual at March 31, 2022, which we expect to fully pay in 2022, is as follows ($ in millions): Balance in severance accrual as of December 31, 2021 $ 3 Payments made to terminated employees (1) Balance in severance accrual as of March 31, 2022 $ 2 |
Derivatives Instruments and H_2
Derivatives Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Derivatives Instruments and Hedging Activities | |
Schedule of cash flow hedges included in AOCI | Amount of Gains Derivatives in Cash Flow Hedging Relationships (Losses) included in AOCL (in millions) March 31, 2022 December 31, 2021 Commodity contracts, net of income tax effect of $51 and $19, respectively $ 146 $ 51 Foreign currency contracts, net of income tax effect of $2 and $ -, respectively 1 - Interest rate contracts, net of income tax effect of $1 (3) (3) Total $ 144 $ 48 |
Schedule of location and amount of assets and liabilities reported in balance sheet | Fair Value of Hedging Instruments as of March 31, 2022 (in millions) 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 $ 137 $ 8 $ 145 $ 14 $ 4 $ 18 Other assets 35 — 35 — 3 3 Assets 172 8 180 14 7 21 Accounts payable and accrued liabilities 30 8 38 10 6 16 Non-current liabilities 1 — 1 — 7 7 Liabilities 31 8 39 10 13 23 Net Assets/(Liabilities) $ 141 $ — $ 141 $ 4 $ (6) $ (2) Fair Value of Hedging Instruments as of December 31, 2021 (in millions) 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 $ 45 $ 9 $ 54 $ 4 $ 3 $ 7 Other assets 7 6 13 — — — Assets 52 15 67 4 3 7 Accounts payable and accrued liabilities 5 12 17 2 4 6 Non-current liabilities 2 6 8 — 1 1 Liabilities 7 18 25 2 5 7 Net Assets/(Liabilities) $ 45 $ (3) $ 42 $ 2 $ (2) $ — |
Schedule of amount of gains and losses recognized in OCI and location and income statement location | Derivatives in Cash Flow Gains Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Three Months Ended March 31, Income Statement Three Months Ended March 31, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 171 $ 27 Cost of sales $ 44 $ (1) Foreign currency contracts 5 2 Net sales/Cost of sales 2 2 Interest rate contracts — — Financing costs, net — — Total $ 176 $ 29 $ 46 $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value | As of March 31, 2022 As of December 31, 2021 (in millions) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Available for sale securities $ 5 $ 5 $ — $ — $ 12 $ 12 $ — $ — Derivative assets 201 134 67 — 74 49 25 — Derivative liabilities 62 59 3 — 32 22 10 — Long-term debt 1,763 — 1,763 — 1,957 — 1,957 — |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Financing Arrangements | |
Schedule of debt | As of As of (in millions) March 31, 2022 December 31, 2021 2.900% senior notes due June 1, 2030 $ 595 $ 595 3.200% senior notes due October 1, 2026 498 498 3.900% senior notes due June 1, 2050 390 390 6.625% senior notes due April 15, 2037 253 253 Revolving credit agreement — — Other long-term borrowings 3 2 Total long-term debt 1,739 1,738 Commercial paper 428 250 Other short-term borrowings 86 58 Total short-term borrowings 514 308 Total debt $ 2,253 $ 2,046 |
Net Periodic Pension and Postre
Net Periodic Pension and Postretirement Benefit Costs (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Pension Plan | |
Pension and other postretirement benefits | |
Components of net periodic benefit cost | Three Months Ended March 31, U.S. Plans Non-U.S. Plans (in millions) 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 Interest cost 2 2 2 3 Expected return on plan assets (4) (5) (2) (2) Amortization of actuarial loss — — — 1 Net periodic benefit cost (a) $ (1) $ (2) $ 1 $ 3 |
Postemployment Retirement Benefits | |
Pension and other postretirement benefits | |
Components of net periodic benefit cost | Three Months Ended March 31, (in millions) 2022 2021 Service cost $ — $ — Interest cost 1 1 Amortization of prior service credit — (1) Net periodic benefit cost (a) $ 1 $ — (a) The service cost component of net periodic benefit cost is presented within either Cost of sales or Operating expenses on the Condensed Consolidated Statements of Income (Loss). The interest cost, expected return on plan assets, amortization of prior service credit, and amortization of actuarial loss components of net periodic benefit cost are presented as Other, non-operating income on the Condensed Consolidated Statements of Income (Loss). |
Equity (Tables)
Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Equity | |
Schedule of stock based compensation expense | Three Months Ended March 31, (in millions) 2022 2021 Stock options: Pre-tax compensation expense $ 1 $ 1 Income tax benefit — — Stock option expense, net of income taxes 1 1 Restricted stock units ("RSUs"): Pre-tax compensation expense 3 3 Income tax benefit — — RSUs, net of income taxes 3 3 Performance shares and other share-based awards: Pre-tax compensation expense 3 1 Income tax benefit (1) — Performance shares and other share-based compensation expense, net of income taxes 2 1 Total share-based compensation: Pre-tax compensation expense 7 5 Income tax benefit (1) — Total share-based compensation expense, net of income taxes $ 6 $ 5 |
Schedule of valuation assumptions for stock options | Three Months Ended March 31, 2022 2021 Expected life (in years) 5.5 5.5 Risk-free interest rate 2.0 % 0.6 % Expected volatility 23.8 % 23.2 % Expected dividend yield 2.9 % 2.9 % |
Schedule of stock option transactions | Number of Options (in thousands) Weighted Average Exercise Price per Share Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Outstanding as of December 31, 2021 2,154 $ 90.39 5.26 $ 26 Granted 281 88.66 Exercised (36) 57.65 Cancelled (13) 117.27 Outstanding as of March 31, 2022 2,386 $ 90.54 5.69 $ 12 Exercisable as of March 31, 2022 1,805 $ 91.34 4.56 $ 12 |
Schedule of additional information pertaining to stock option activity | March 31, (dollars in millions, except per share) 2022 2021 Weighted average grant date fair value of stock options granted (per share) $ 15.04 $ 12.31 Total intrinsic value of stock options exercised $ 1 $ 5 |
Schedule of restricted unit activity | (RSUs in thousands) Number of Restricted Shares Weighted Average Fair Value per Share Non-vested as of December 31, 2021 486 $ 88.34 Granted 193 88.91 Vested (122) 91.40 Cancelled (14) 88.07 Non-vested as of March 31, 2022 543 $ 87.86 |
Summary of net changes in accumulated other comprehensive loss | (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2021 $ (903) $ 48 $ (42) $ (897) Other comprehensive gain before reclassification adjustments 38 176 — 214 (Gain) reclassified from accumulated OCL — (46) — (46) Tax (provision) — (34) — (34) Net other comprehensive income 38 96 — 134 Balance, March 31, 2022 $ (865) $ 144 $ (42) $ (763) (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment Accumulated Other Comprehensive Loss Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) before reclassification adjustments (52) 29 — (23) (Gain) reclassified from accumulated OCL — (1) — (1) Tax (provision) — (7) — (7) Net other comprehensive (loss) income (52) 21 — (31) Balance, March 31, 2021 $ (1,166) $ 63 $ (61) $ (1,164) |
Schedule of stockholders equity and redeemable equity | Total Equity Non- Accumulated Redeemable Share-based Redeemable Additional Other Non- Payments Non- Preferred Common Paid-In Treasury Comprehensive Retained Controlling Subject to Controlling (in millions) Stock Stock Capital Stock Loss Earnings Interests Redemption Interests Balance, December 31, 2021 $ — $ 1 $ 1,158 $ (1,061) $ (897) $ 3,899 $ 18 $ 36 $ 71 Net income attributable to Ingredion 130 Net income attributable to non-controlling interests 3 Dividends declared, common stock ($0.65/share) (43) Repurchases of common stock (39) Share-based compensation, net of issuance 2 9 (5) Other comprehensive income (loss) 134 (2) Balance, March 31, 2022 $ — $ 1 $ 1,160 $ (1,091) $ (763) $ 3,986 $ 19 $ 31 $ 71 Total Equity Non- Accumulated Redeemable Share-based Redeemable Additional Other Non- Payments Non- Preferred Common Paid-In Treasury Comprehensive Retained Controlling Subject to Controlling (in millions) Stock Stock Capital Stock Loss Earnings Interests Redemption Interests Balance, December 31, 2020 $ — $ 1 $ 1,150 $ (1,024) $ (1,133) $ 3,957 $ 21 $ 30 $ 70 Net (loss) attributable to Ingredion (246) Net income attributable to non-controlling interests 4 (1) Dividends declared, common stock ($0.64/share) (44) Repurchases of common stock (14) Share-based compensation, net of issuance 5 16 (9) Other comprehensive (loss) income (31) 1 1 Balance, March 31, 2021 $ — $ 1 $ 1,155 $ (1,022) $ (1,164) $ 3,667 $ 26 $ 21 $ 70 |
Schedule of basic and diluted earnings per common share | Three Months Ended March 31, 2022 Three Months Ended March 31, 2021 (in millions, except per share amounts) Net Income Available to Ingredion Weighted Average Shares Per Share Amount Net Income Available to Ingredion Weighted Average Shares Per Share Amount Basic EPS $ 130 66.9 $ 1.94 $ (246) 67.3 $ (3.66) Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.7 — Diluted EPS $ 130 67.6 $ 1.92 $ (246) 67.3 $ (3.66) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Information | |
Schedule of segment reporting of net sales, operating income and total assets | Presented below are Ingredion’s net sales to unaffiliated customers by reportable segment for the periods indicated: Three Months Ended March 31, (in millions) 2022 2021 Net sales to unaffiliated customers: North America $ 1,174 $ 945 South America 252 273 Asia-Pacific 272 235 EMEA 194 161 Total net sales $ 1,892 $ 1,614 Presented below are Ingredion’s operating income by reportable segment for the periods indicated: Three Months Ended March 31, (in millions) 2022 2021 Operating income: North America $ 156 $ 134 South America 38 40 Asia-Pacific 22 25 EMEA 31 31 Corporate (34) (29) Subtotal 213 201 Acquisition/integration costs (1) (1) Restructuring/impairment charges (2) (10) Impairment on assets held for sale — (360) Total operating income $ 210 $ (170) Presented below are Ingredion’s total assets by reportable segment as of March 31, 2022, and December 31, 2021: As of As of (in millions) March 31, 2022 December 31, 2021 Assets: North America (a) $ 4,523 $ 4,203 South America 907 799 Asia-Pacific 1,401 1,403 EMEA 604 594 Total assets $ 7,435 $ 6,999 (a) For purposes of presentation, North America includes Corporate assets. |
Supplementary Information (Tabl
Supplementary Information (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Supplementary Information | |
Schedule of accounts receivable, net | As of As of (in millions) March 31, 2022 December 31, 2021 Accounts receivable, net: Accounts receivable — trade $ 1,122 $ 950 Accounts receivable — other 324 193 Allowance for credit losses (15) (13) Total accounts receivable $ 1,431 $ 1,130 |
Schedule of inventories | As of As of (in millions) March 31, 2022 December 31, 2021 Finished and in process $ 762 $ 688 Raw materials 428 380 Manufacturing supplies and other 116 104 Total inventories $ 1,306 $ 1,172 |
Acquisitions - KaTech (Details)
Acquisitions - KaTech (Details) - KaTech $ in Millions | Apr. 01, 2021USD ($) |
Acquisitions | |
Payment for acquisition, net of cash acquired | $ 40 |
Goodwill | 26 |
Tangible assets | $ 14 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Investments | ||
Equity investments | $ 19 | $ 16 |
Equity method investments | 106 | 104 |
Marketable securities | 5 | 12 |
Total investments | $ 130 | $ 132 |
Investments - Amyris & Arcor jo
Investments - Amyris & Arcor joint venture (Details) $ in Millions | Aug. 02, 2021USD ($) | Jun. 01, 2021USD ($) | Dec. 31, 2021USD ($) | Feb. 12, 2021facility |
Equity Method Investments | ||||
Transaction costs | $ 6 | |||
Arcor joint venture | ||||
Equity Method Investments | ||||
Number of manufacturing facilities to be operated | facility | 5 | |||
Amyris joint venture | ||||
Equity Method Investments | ||||
Ownership percentage | 31.00% | |||
Total consideration under equity method investment agreement | $ 28 | |||
Cash consideration paid | 10 | |||
Non-exclusive license and other consideration | 18 | |||
Income from equity method investment agreement | $ 8 | |||
Arcor joint venture | ||||
Equity Method Investments | ||||
Fair value of assets and liabilities transferred | $ 71 | |||
Ownership percentage | 49.00% | |||
Value of shares received as consideration for assets contributed | $ 64 | |||
Arcor joint venture | Grupo Arcor | ||||
Equity Method Investments | ||||
Cash and other considerations received from joint venture in return of assets and liabilities transferred | $ 7 |
Restructuring and Impairment _3
Restructuring and Impairment Charges - Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and Impairment Charges | ||
Restructuring/impairment charges and related adjustments | $ 2 | $ 370 |
Restructuring charges | $ 2 | 10 |
Impairment charges | 360 | |
Impairment on disposition of assets | $ 360 |
Restructuring and Impairment _4
Restructuring and Impairment Charges - Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring and impairment charges | ||
Restructuring charges | $ 2 | $ 10 |
Cost Smart SG&A Program | ||
Restructuring and impairment charges | ||
Restructuring charges | 1 | 5 |
Cost Smart Cost of Sales Program | ||
Restructuring and impairment charges | ||
Restructuring charges | $ 1 | $ 3 |
Restructuring and Impairment _5
Restructuring and Impairment Charges - Employee-related severance (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring accrual | ||
Restructuring charges | $ 2 | $ 10 |
Employee-related severance costs | ||
Restructuring accrual | ||
Balance in severance accrual at beginning of period | 3 | |
Payments made to terminated employees | (1) | |
Balance in severance accrual at end of period | $ 2 |
Restructuring and Impairment _6
Restructuring and Impairment Charges - Impairment Charges (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Restructuring and impairment charges | |
Impairment on disposition of assets | $ 360 |
Disposal Group, Held for Sale, Not Discontinued Operations | South American Subsidiaries, PP&E | |
Restructuring and impairment charges | |
Impairment on disposition of assets | 360 |
Impairment charge - Cumulative translation adjustment | 311 |
Impairment charge - Write-down of contributed net assets | $ 49 |
Derivatives Instruments and H_3
Derivatives Instruments and Hedging Activities - Commodity price hedging (Details) bu in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022USD ($)MMBTUbu | Mar. 31, 2021USD ($) | Dec. 31, 2021MMBTUbu | |
Commodity Contract | Minimum | |||
Financial instruments, derivatives and hedging activities | |||
Maturity period of price risk derivative | 12 months | ||
Commodity Contract | 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 and gallons for ethanol) | bu | 107 | 135 | |
Natural Gas Commodity | |||
Financial instruments, derivatives and hedging activities | |||
Natural gas futures contract (in mmbtu) | MMBTU | 31 | 35 | |
Not Designated as Hedging Instrument | Corn Commodity | |||
Financial instruments, derivatives and hedging activities | |||
Gain or (loss) recognized in income | $ | $ 2 | $ 1 |
Derivatives Instruments and H_4
Derivatives Instruments and Hedging Activities - Foreign currency hedging (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Short | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 466 | $ 360 |
Long | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 223 | 205 |
Long | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 708 | |
Cash Flow Hedging | Short | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 350 | $ 505 |
Cash Flow Hedging | Long | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 578 |
Derivatives Instruments and H_5
Derivatives Instruments and Hedging Activities - CF Hedges in AOCI (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | $ (763) | $ (897) |
Cash Flow Hedging | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 144 | 48 |
Cash Flow Hedging | Commodity Contract | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 146 | 51 |
Tax effect on gains (losses) of derivative instruments | (51) | (19) |
Cash Flow Hedging | Foreign Currency Contracts | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 1 | |
Tax effect on gains (losses) of derivative instruments | (2) | |
Cash Flow Hedging | Interest Rate Contract | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | (3) | (3) |
Tax effect on gains (losses) of derivative instruments | $ 1 | $ 1 |
Derivatives Instruments and H_6
Derivatives Instruments and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Designated as Hedging Instrument | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | $ 180 | $ 67 |
Fair value of derivative instruments, Liabilities | 39 | 25 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 141 | 42 |
Designated as Hedging Instrument | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 145 | 54 |
Designated as Hedging Instrument | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 35 | 13 |
Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 38 | 17 |
Designated as Hedging Instrument | Non Current Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 1 | 8 |
Designated as Hedging Instrument | Commodity Contract | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 172 | 52 |
Fair value of derivative instruments, Liabilities | 31 | 7 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 141 | 45 |
Designated as Hedging Instrument | Commodity Contract | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 137 | 45 |
Designated as Hedging Instrument | Commodity Contract | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 35 | 7 |
Designated as Hedging Instrument | Commodity Contract | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 30 | 5 |
Designated as Hedging Instrument | Commodity Contract | Non Current Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 1 | 2 |
Designated as Hedging Instrument | Foreign Exchange Forward | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 8 | 15 |
Fair value of derivative instruments, Liabilities | 8 | 18 |
Fair value of derivative instruments, Net Assets/(Liabilities) | (3) | |
Designated as Hedging Instrument | Foreign Exchange Forward | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 8 | 9 |
Designated as Hedging Instrument | Foreign Exchange Forward | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 6 | |
Designated as Hedging Instrument | Foreign Exchange Forward | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 8 | 12 |
Designated as Hedging Instrument | Foreign Exchange Forward | Non Current Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 6 | |
Not Designated as Hedging Instrument | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 21 | 7 |
Fair value of derivative instruments, Liabilities | 23 | 7 |
Fair value of derivative instruments, Net Assets/(Liabilities) | (2) | |
Not Designated as Hedging Instrument | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 18 | 7 |
Not Designated as Hedging Instrument | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 3 | |
Not Designated as Hedging Instrument | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 16 | 6 |
Not Designated as Hedging Instrument | Non Current Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 7 | 1 |
Not Designated as Hedging Instrument | Commodity Contract | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 14 | 4 |
Fair value of derivative instruments, Liabilities | 10 | 2 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 4 | 2 |
Not Designated as Hedging Instrument | Commodity Contract | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 14 | 4 |
Not Designated as Hedging Instrument | Commodity Contract | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 10 | 2 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 7 | 3 |
Fair value of derivative instruments, Liabilities | 13 | 5 |
Fair value of derivative instruments, Net Assets/(Liabilities) | (6) | (2) |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Accounts Receivable, Net [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 4 | 3 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Other assets | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets | 3 | |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Accounts Payable and Accrued Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | 6 | 4 |
Not Designated as Hedging Instrument | Foreign Exchange Forward | Non Current Liabilities [Member] | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Liabilities | $ 7 | $ 1 |
Derivatives Instruments and H_7
Derivatives Instruments and Hedging Activities - Additional information - CF hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Hedging relationships | ||
Gains (Losses) Recognized in AOCL on Derivatives | $ 176 | $ 29 |
Gains (Losses) Reclassified from AOCL into Income | 46 | 1 |
Commodity Contract | ||
Hedging relationships | ||
Gains (Losses) Recognized in AOCL on Derivatives | 171 | 27 |
Commodity Contract | Cost of sales | ||
Hedging relationships | ||
Gains (Losses) Reclassified from AOCL into Income | 44 | (1) |
Foreign Currency Contracts | ||
Hedging relationships | ||
Gains (Losses) Recognized in AOCL on Derivatives | 5 | 2 |
Foreign Currency Contracts | Net sales/Cost of sales | ||
Hedging relationships | ||
Gains (Losses) Reclassified from AOCL into Income | $ 2 | $ 2 |
Derivatives Instruments and H_8
Derivatives Instruments and Hedging Activities - Gain (Losses) Recognized in Income (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Derivatives Instruments and Hedging Activities | |
Gains expected to be reclassified into earnings during the next twelve months, net of tax | $ 142 |
Gains expected to be reclassified into earnings during the next twelve months, income tax effect | $ 50 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - Recurring - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities | ||
Available for sale securities | $ 5 | $ 12 |
Derivative assets | 201 | 74 |
Derivative liabilities | 62 | 32 |
Long-term debt | 1,763 | 1,957 |
Level 1 | ||
Fair value of assets and liabilities | ||
Available for sale securities | 5 | 12 |
Derivative assets | 134 | 49 |
Derivative liabilities | 59 | 22 |
Level 2 | ||
Fair value of assets and liabilities | ||
Derivative assets | 67 | 25 |
Derivative liabilities | 3 | 10 |
Long-term debt | $ 1,763 | $ 1,957 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying amount (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Arrangements | ||
Long-term debt | $ 1,739 | $ 1,738 |
Total short-term borrowings | 514 | 308 |
Total debt | $ 2,253 | $ 2,046 |
2.9% senior notes due June 1, 2030 | ||
Financing Arrangements | ||
Debt, interest rate (as a percent) | 2.90% | 2.90% |
Long-term debt | $ 595 | $ 595 |
3.2% senior notes due October 1, 2026 | ||
Financing Arrangements | ||
Debt, interest rate (as a percent) | 3.20% | 3.20% |
Long-term debt | $ 498 | $ 498 |
3.9% senior notes due June 1, 2050 | ||
Financing Arrangements | ||
Debt, interest rate (as a percent) | 3.90% | 3.90% |
Long-term debt | $ 390 | $ 390 |
6.625% senior notes due April 15, 2037 | ||
Financing Arrangements | ||
Debt, interest rate (as a percent) | 6.625% | 6.625% |
Long-term debt | $ 253 | $ 253 |
Other long-term borrowings | ||
Financing Arrangements | ||
Long-term debt | 3 | 2 |
Commercial paper | ||
Financing Arrangements | ||
Short-term borrowings | 428 | 250 |
Other short-term borrowings | ||
Financing Arrangements | ||
Short-term borrowings | $ 86 | $ 58 |
Financing Arrangements - Revolv
Financing Arrangements - Revolving credit agreement (Details) - USD ($) $ in Millions | 3 Months Ended | 15 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | |
Long-term debt | ||||
Payments on debt | $ 123 | $ 36 | ||
Proceeds from borrowings | $ 147 | $ 46 | ||
Commercial paper | ||||
Long-term debt | ||||
Average amount of commercial paper outstanding | $ 353 | |||
Weighted average interest rate (as a percent) | 0.38% | |||
Weighted average maturity | 14 days | 27 days | ||
Short-term borrowings | $ 428 | $ 428 | $ 250 | |
Weighted average interest rate of outstanding balance (as a percent) | 0.99% | 0.99% | 0.35% | |
Weighted average maturity of outstanding balance | 40 days | |||
Revolving credit agreement | ||||
Long-term debt | ||||
Maximum aggregate principal amount | $ 1,000 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Indirect tax credits - Foreign - Brazil - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
May 31, 2021 | Dec. 31, 2021 | Mar. 31, 2022 | |
Commitments and Contingencies | |||
Brazilian indirect tax credits | $ 3 | ||
Other Assets and Prepaid Expenses | |||
Commitments and Contingencies | |||
Future tax credits | $ 41 | ||
Tax years 2015 - 2018 | |||
Commitments and Contingencies | |||
Amount of indirect tax credits expected to receive | $ 15 | ||
Tax years 2015 - 2018 | Other operating income, net | |||
Commitments and Contingencies | |||
Foreign pre-tax benefits | $ 15 |
Net Periodic Pension and Post_2
Net Periodic Pension and Postretirement Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Pension Plan | ||
Anticipated cash contributions | ||
Anticipated cash contributions in current year | $ 4 | |
Pension Plan | UNITED STATES | ||
Components of Net Periodic Benefit Costs | ||
Service cost | 1 | $ 1 |
Interest cost | 2 | 2 |
Expected return on plan assets | (4) | (5) |
Net periodic benefit cost | (1) | (2) |
Anticipated cash contributions | ||
Anticipated cash contributions in current year | 1 | |
Pension Plan | Non-US | ||
Components of Net Periodic Benefit Costs | ||
Service cost | 1 | 1 |
Interest cost | 2 | 3 |
Expected return on plan assets | (2) | (2) |
Amortization of actuarial loss | 1 | |
Net periodic benefit cost | 1 | 3 |
Anticipated cash contributions | ||
Anticipated cash contributions in current year | 3 | |
Employer contributions | ||
Employer contributions | 1 | |
Postemployment Retirement Benefits | ||
Components of Net Periodic Benefit Costs | ||
Interest cost | 1 | 1 |
Amortization of prior service credit | $ (1) | |
Net periodic benefit cost | $ 1 |
Equity - Treasury stock (Detail
Equity - Treasury stock (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Oct. 22, 2018 | |
Treasury Stock | |||
Treasury stock: | |||
Purchase/acquisition of treasury stock (in shares) | 455 | 158 | |
Repurchases of common stock (in dollars) | $ 39 | $ 14 | |
2018 Stock Repurchase Program | |||
Treasury stock: | |||
Shares authorized to be repurchased (in shares) | 8,000 |
Equity - Share-based payments (
Equity - Share-based payments (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based compensation expense | ||
Pre-tax compensation expense | $ 7 | $ 5 |
Income tax benefit | (1) | |
Total share-based compensation expense, net of income taxes | 6 | 5 |
Employee Stock Option | ||
Share-based compensation expense | ||
Pre-tax compensation expense | 1 | 1 |
Total share-based compensation expense, net of income taxes | 1 | 1 |
RSU | ||
Share-based compensation expense | ||
Pre-tax compensation expense | 3 | 3 |
Total share-based compensation expense, net of income taxes | 3 | 3 |
Performance shares and other share-based awards | ||
Share-based compensation expense | ||
Pre-tax compensation expense | 3 | 1 |
Income tax benefit | (1) | |
Total share-based compensation expense, net of income taxes | $ 2 | $ 1 |
Equity - Stock options (Details
Equity - Stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Stock options, Number of Options | |||
Outstanding at the beginning of the period (in shares) | 2,154 | ||
Granted (in shares) | 281 | 358 | |
Exercised (in shares) | (36) | ||
Cancelled (in shares) | (13) | ||
Outstanding at the end of the period (in shares) | 2,386 | 2,154 | |
Exercisable at the end of the period (in shares) | 1,805 | ||
Stock options, Weighted Average Exercise Price per Share | |||
Outstanding at the beginning of the period (in dollars per share) | $ 90.39 | ||
Granted (in dollars per share) | 88.66 | ||
Exercised (in dollars per share) | 57.65 | ||
Cancelled (in dollars per share) | 117.27 | ||
Outstanding at the end of the period (in dollars per share) | 90.54 | $ 90.39 | |
Exercisable at the end of the period (in dollars per share) | $ 91.34 | ||
Additional information pertaining to stock options | |||
Average Remaining Contractual Term, Outstanding | 5 years 8 months 8 days | 5 years 3 months 3 days | |
Average Remaining Contractual Term, Exercisable | 4 years 6 months 21 days | ||
Aggregate Intrinsic Value, Outstanding (in dollars) | $ 12 | $ 26 | |
Aggregate Intrinsic Value, Exercisable (in dollars) | 12 | ||
Cash received from exercise of stock options | $ 2 | ||
Weighted average grant date fair value of stock options granted (per share) | $ 15.04 | $ 12.31 | |
Total intrinsic value of stock options exercised | $ 1 | $ 5 | |
Employee Stock Option | |||
Share-based compensation | |||
Term of award | 10 years | ||
Period of vesting | 3 years | ||
Required service period | 1 year | ||
Assumptions used to measure the fair value of awards | |||
Expected life | 5 years 6 months | 5 years 6 months | |
Risk-free interest rate (as a percent) | 2.00% | 0.60% | |
Expected volatility (as a percent) | 23.80% | 23.20% | |
Expected dividend yield (as a percent) | 2.90% | 2.90% | |
Additional information pertaining to stock options | |||
Unrecognized compensation cost | $ 6 | ||
Weighted-average period for amortization of unrecognized compensation cost | 2 years |
Equity - Restricted stock units
Equity - Restricted stock units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Other disclosures | ||||
Share-based payments subject to redemption | $ 31 | $ 36 | $ 21 | $ 30 |
RSU | ||||
Share-based compensation | ||||
Vesting period | 3 years | |||
Restricted stock unit activity | ||||
Non-vested at the beginning of the period (in shares) | 486 | |||
Granted (in shares) | 193 | |||
Vested (in shares) | (122) | |||
Cancelled (in shares) | (14) | |||
Non-vested at the end of the period (in shares) | 543 | |||
Weighted-average fair value per share | ||||
Non-vested at the beginning of the period (in dollars per share) | $ 88.34 | |||
Granted (in dollars per share) | 88.91 | |||
Vested (in dollars per share) | 91.40 | |||
Cancelled (in dollars per share) | 88.07 | |||
Non-vested at the end of the period (in dollars per share) | $ 87.86 | |||
Other disclosures | ||||
Unrecognized compensation cost | $ 30 | |||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 10 months 24 days |
Equity - Performance shares (De
Equity - Performance shares (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2022USD ($)item$ / sharesshares | Dec. 31, 2021USD ($)item | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Share-based compensation | ||||
Share-based payments subject to redemption | $ | $ 31 | $ 36 | $ 21 | $ 30 |
Performance Shares | ||||
Share-based compensation | ||||
Number of tranches | item | 2 | 2 | ||
Granted (in shares) | shares | 86,000 | |||
Weighted-average fair value per share, Granted (in dollars per share) | $ / shares | $ 138.85 | |||
Cancelled (in shares) | shares | 0 | |||
Unrecognized compensation cost | $ | $ 16 | |||
Remaining requisite service period (in years) | 2 years 4 months 24 days | |||
Performance shares, vesting based on TSR | ||||
Share-based compensation | ||||
Percentage of share-based compensation award | 50.00% | 50.00% | ||
Performance shares, vesting based on Adjusted ROIC | ||||
Share-based compensation | ||||
Percentage of share-based compensation award | 50.00% | 50.00% | ||
Performance period (in years) | 3 years | 3 years | ||
2019 Awards | Performance Shares | ||||
Share-based compensation | ||||
Performance period (in years) | 3 years | |||
Award pay out achieved (as a percent) | 0.00% | |||
2022 Awards | Performance shares, vesting based on TSR | ||||
Share-based compensation | ||||
Vesting period | 3 years | |||
Performance period (in years) | 3 years | |||
2022 Awards | Performance shares, vesting based on TSR | Minimum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 0.00% | |||
2022 Awards | Performance shares, vesting based on TSR | Maximum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 200.00% | |||
2022 Awards | Performance shares, vesting based on Adjusted ROIC | ||||
Share-based compensation | ||||
Vesting period | 3 years | |||
Performance period (in years) | 3 years | |||
2022 Awards | Performance shares, vesting based on Adjusted ROIC | Minimum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 0.00% | |||
2022 Awards | Performance shares, vesting based on Adjusted ROIC | Maximum | ||||
Share-based compensation | ||||
Performance shares available for vesting (as a percent) | 200.00% |
Equity - AOCL (Details)
Equity - AOCL (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | $ 3,100 | |
Balance at the end of the period | 3,293 | |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | (903) | $ (1,114) |
Other comprehensive gain (loss) before reclassification adjustments | 38 | (52) |
Net other comprehensive income (loss) | 38 | (52) |
Balance at the end of the period | (865) | (1,166) |
Hedging Activities | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | 48 | 42 |
Other comprehensive gain (loss) before reclassification adjustments | 176 | 29 |
(Gain) reclassified from accumulated OCL | (46) | (1) |
Tax (provision) benefit | (34) | (7) |
Net other comprehensive income (loss) | 96 | 21 |
Balance at the end of the period | 144 | 63 |
Pension and Postretirement Adjustment | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | (42) | (61) |
Balance at the end of the period | (42) | (61) |
Accumulated Other Comprehensive Income (Loss) | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | (897) | (1,133) |
Other comprehensive gain (loss) before reclassification adjustments | 214 | (23) |
(Gain) reclassified from accumulated OCL | (46) | (1) |
Tax (provision) benefit | (34) | (7) |
Net other comprehensive income (loss) | 134 | (31) |
Balance at the end of the period | $ (763) | $ (1,164) |
Equity - Statements of Equity w
Equity - Statements of Equity with dividends per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Balance at beginning of period | $ 3,118 | |
Balance at end of period | $ 3,312 | |
Dividends declared, common stock (in dollars per share) | $ 0.65 | $ 0.64 |
Common Stock | ||
Balance at beginning of period | $ 1 | $ 1 |
Balance at end of period | 1 | 1 |
Additional Paid-in Capital | ||
Balance at beginning of period | 1,158 | 1,150 |
Share-based compensation, net of issuance | 2 | 5 |
Balance at end of period | 1,160 | 1,155 |
Treasury Stock | ||
Balance at beginning of period | (1,061) | (1,024) |
Repurchases of common stock | (39) | (14) |
Share-based compensation, net of issuance | 9 | 16 |
Balance at end of period | (1,091) | (1,022) |
Accumulated Other Comprehensive Income (Loss) | ||
Balance at beginning of period | (897) | (1,133) |
Other comprehensive income (loss) | 134 | (31) |
Balance at end of period | (763) | (1,164) |
Retained Earnings | ||
Balance at beginning of period | 3,899 | 3,957 |
Net income (loss) | 130 | (246) |
Dividends declared, common stock | (43) | (44) |
Balance at end of period | 3,986 | 3,667 |
Noncontrolling Interest | ||
Balance at beginning of period | 18 | 21 |
Net income (loss) | 3 | 4 |
Other comprehensive income (loss) | (2) | 1 |
Balance at end of period | $ 19 | $ 26 |
Equity - Statements of Redeemab
Equity - Statements of Redeemable Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Increase (Decrease) in Temporary Equity | ||
Share-based Payments Subject to Redemption, Beginning Balance | $ 36 | $ 30 |
Share-based compensation, net of issuance | (5) | (9) |
Share-based Payments Subject to Redemption, Ending Balance | 31 | 21 |
Redeemable Non-Controlling Interests, Beginning Balance | 71 | 70 |
Net income (loss) attributable to non-controlling interests | (1) | |
Other comprehensive income (loss) | 1 | |
Redeemable Non-Controlling Interests, Ending Balance | $ 71 | $ 70 |
Equity - EPS (Details)
Equity - EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Basic EPS: | ||
Net Income Available to Ingredion - basic | $ 130 | $ (246) |
Weighted average number of shares outstanding, basic | 66.9 | 67.3 |
Basic earnings per common share of Ingredion (in dollars per share) | $ 1.94 | $ (3.66) |
Effect of Dilutive Securities: | ||
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards | 0.7 | |
Diluted EPS: | ||
Net Income Available to Ingredion - diluted | $ 130 | $ (246) |
Weighted average number of shares outstanding - diluted, Total | 67.6 | 67.3 |
Diluted earnings per common share of Ingredion (in dollars per share) | $ 1.92 | $ (3.66) |
Antidilutive securities excluded in calculation of diluted EPS: | ||
Antidilutive securities excluded from computation of earnings per share amount | 1.3 | 2.1 |
Segment Information - Net sales
Segment Information - Net sales (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment information | ||
Total net sales | $ 1,892 | $ 1,614 |
Operating income Subtotal | 213 | 201 |
Acquisition / integration costs | (1) | (1) |
Restructuring/impairment charges | (2) | (10) |
Impairment on assets held for sale | (360) | |
Operating income (loss) | 210 | (170) |
Financing costs | 24 | 19 |
Other non-operating (income) | (1) | (1) |
Income (loss) before income taxes | 187 | (188) |
North America Segment | ||
Segment information | ||
Total net sales | 1,174 | 945 |
South America Segment | ||
Segment information | ||
Total net sales | 252 | 273 |
Asia Pacific Segment | ||
Segment information | ||
Total net sales | 272 | 235 |
EMEA Segment | ||
Segment information | ||
Total net sales | 194 | 161 |
Operating Segments | North America Segment | ||
Segment information | ||
Operating income Subtotal | 156 | 134 |
Operating Segments | South America Segment | ||
Segment information | ||
Operating income Subtotal | 38 | 40 |
Operating Segments | Asia Pacific Segment | ||
Segment information | ||
Operating income Subtotal | 22 | 25 |
Operating Segments | EMEA Segment | ||
Segment information | ||
Operating income Subtotal | 31 | 31 |
Corporate, Non-Segment | ||
Segment information | ||
Operating income Subtotal | $ (34) | $ (29) |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Segment information | ||
Total assets | $ 7,435 | $ 6,999 |
North America Segment | ||
Segment information | ||
Total assets | 4,523 | 4,203 |
South America Segment | ||
Segment information | ||
Total assets | 907 | 799 |
Asia Pacific Segment | ||
Segment information | ||
Total assets | 1,401 | 1,403 |
EMEA Segment | ||
Segment information | ||
Total assets | $ 604 | $ 594 |
Supplementary Information - Acc
Supplementary Information - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Supplementary Information | ||
Accounts receivable - trade | $ 1,122 | $ 950 |
Accounts receivable - other | 324 | 193 |
Allowance for doubtful accounts | (15) | (13) |
Total accounts receivable | $ 1,431 | $ 1,130 |
Supplementary Information - Inv
Supplementary Information - Inventories (Details) - USD ($) $ in Millions | Mar. 31, 2022 | Dec. 31, 2021 |
Supplementary Information | ||
Finished and in process | $ 762 | $ 688 |
Raw materials | 428 | 380 |
Manufacturing supplies and other | 116 | 104 |
Total inventories | $ 1,306 | $ 1,172 |