Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 03, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-13397 | |
Entity Registrant Name | Ingredion Incorporated | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 22-3514823 | |
Entity Address, Address Line One | 5 Westbrook Corporate Center | |
Entity Address, City or Town | Westchester | |
Entity Address, State or Province | IL | |
Entity Address, Postal Zip Code | 60154 | |
City Area Code | 708 | |
Local Phone Number | 551-2600 | |
Title of 12(b) Security | Common Stock, $.01 par value per share | |
Trading Symbol | INGR | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 65,555,317 | |
Entity Central Index Key | 0001046257 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Income | ||||
Net sales | $ 2,023 | $ 1,763 | $ 5,959 | $ 5,139 |
Cost of sales | 1,649 | 1,440 | 4,816 | 4,098 |
Gross profit | 374 | 323 | 1,143 | 1,041 |
Operating expenses | 180 | 164 | 528 | 484 |
Other operating expense (income) | 10 | (1) | 4 | (29) |
Restructuring/impairment charges and related adjustments | 2 | (12) | 6 | 362 |
Operating income | 182 | 172 | 605 | 224 |
Financing costs | 24 | 20 | 65 | 58 |
Other non-operating (income) | (3) | (1) | (4) | (4) |
Income before income taxes | 161 | 153 | 544 | 170 |
Provision for income taxes | 52 | 34 | 157 | 113 |
Net income | 109 | 119 | 387 | 57 |
Less: Net income attributable to non-controlling interests | 3 | 1 | 9 | 7 |
Net income attributable to Ingredion | $ 106 | $ 118 | $ 378 | $ 50 |
Weighted average common shares outstanding: | ||||
Basic | 65.8 | 67 | 66.4 | 67.2 |
Diluted | 66.6 | 67.6 | 67.1 | 67.8 |
Earnings per common share of Ingredion: | ||||
Basic | $ 1.61 | $ 1.76 | $ 5.69 | $ 0.74 |
Diluted | $ 1.59 | $ 1.75 | $ 5.63 | $ 0.74 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Net income | $ 109 | $ 119 | $ 387 | $ 57 |
Other comprehensive income: | ||||
Gains on cash flow hedges, net of income tax effect of $19, $9, $66 and $56, respectively | 56 | 26 | 188 | 155 |
(Gains) on cash flow hedges reclassified to earnings, net of income tax effect of $18, $15, $52 and $45, respectively | (55) | (45) | (149) | (125) |
Losses related to pension and other postretirement obligations reclassified to earnings, net of income tax effect of $ - | 1 | 1 | ||
Currency translation adjustment | (114) | 248 | (195) | 226 |
Comprehensive (loss) income | (3) | 348 | 232 | 313 |
Less: Comprehensive (loss) income attributable to non-controlling interests | (2) | (2) | (4) | 6 |
Comprehensive (loss) income attributable to Ingredion | $ (1) | $ 350 | $ 236 | $ 307 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive (Loss) Income | ||||
Gains on cash flow hedges, income tax effect | $ (19) | $ (9) | $ (66) | $ (56) |
(Gains) on cash flow hedges reclassified to earnings, income tax effect | $ 18 | $ 15 | $ 52 | $ 45 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 294 | $ 328 |
Short-term investments | 4 | 4 |
Accounts receivable, net | 1,406 | 1,130 |
Inventories | 1,500 | 1,172 |
Prepaid expenses | 64 | 63 |
Total current assets | 3,268 | 2,697 |
Property, plant and equipment, net of accumulated depreciation of $3,256 and $3,232, respectively | 2,308 | 2,423 |
Intangible assets, net of accumulated amortization of $264 and $253, respectively | 1,286 | 1,348 |
Other assets | 541 | 531 |
Total assets | 7,403 | 6,999 |
Current liabilities: | ||
Short-term borrowings | 709 | 308 |
Accounts payable and accrued liabilities | 1,240 | 1,204 |
Total current liabilities | 1,949 | 1,512 |
Long-term debt | 1,739 | 1,738 |
Other non-current liabilities | 536 | 524 |
Total liabilities | 4,224 | 3,774 |
Share-based payments subject to redemption | 43 | 36 |
Redeemable non-controlling interests | 56 | 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 September 30, 2022 and December 31, 2021 | 1 | 1 |
Additional paid-in capital | 1,133 | 1,158 |
Less: Treasury stock (common stock: 12,258,900 and 11,154,203 shares at September 30, 2022 and December 31, 2021, respectively) at cost | (1,159) | (1,061) |
Accumulated other comprehensive loss | (1,052) | (897) |
Retained earnings | 4,143 | 3,899 |
Total Ingredion stockholders' equity | 3,066 | 3,100 |
Non-redeemable non-controlling interests | 14 | 18 |
Total equity | 3,080 | 3,118 |
Total liabilities and equity | $ 7,403 | $ 6,999 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Property, plant and equipment, Accumulated depreciation | $ 3,256 | $ 3,232 |
Intangible assets, Accumulated amortization | $ 264 | $ 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) | 12,258,900 | 11,154,203 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Equity - USD ($) $ in Millions | Common Stock | Additional Paid-in Capital | Treasury Stock, Common | 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, 2020 | 1 | 1,150 | (1,024) | (1,133) | 3,957 | 21 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 50 | 10 | |||||
Dividends declared | (130) | (10) | |||||
Repurchases of common stock | (68) | ||||||
Share-based compensation, net of issuance | 5 | 20 | |||||
Other comprehensive income (loss) | 256 | (2) | |||||
Balance at end of period at Sep. 30, 2021 | 1 | 1,155 | (1,072) | (877) | 3,877 | 19 | |
Balance at beginning of period at Mar. 31, 2021 | 1 | 1,155 | (1,022) | (1,164) | 3,667 | 26 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 178 | 3 | |||||
Dividends declared | (43) | (7) | |||||
Repurchases of common stock | (10) | ||||||
Share-based compensation, net of issuance | (1) | 3 | |||||
Other comprehensive income (loss) | 58 | ||||||
Balance at end of period at Jun. 30, 2021 | 1 | 1,154 | (1,029) | (1,106) | 3,802 | 22 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 118 | 3 | |||||
Dividends declared | (43) | (3) | |||||
Repurchases of common stock | (44) | ||||||
Share-based compensation, net of issuance | 1 | 1 | |||||
Other comprehensive income (loss) | 229 | (3) | |||||
Balance at end of period at Sep. 30, 2021 | 1 | 1,155 | (1,072) | (877) | 3,877 | 19 | |
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 | |
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) | 378 | 7 | |||||
Dividends declared | (134) | (4) | |||||
Repurchases of common stock | (112) | ||||||
Share-based compensation, net of issuance | 4 | 14 | |||||
Fair market value adjustment to non-controlling interests | (29) | ||||||
Other comprehensive income (loss) | (155) | (7) | |||||
Balance at end of period at Sep. 30, 2022 | 1 | 1,133 | (1,159) | (1,052) | 4,143 | 14 | 3,080 |
Balance at beginning of period at Mar. 31, 2022 | 1 | 1,160 | (1,091) | (763) | 3,986 | 19 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 142 | 2 | |||||
Dividends declared | (43) | (4) | |||||
Repurchases of common stock | (44) | ||||||
Share-based compensation, net of issuance | 2 | 2 | |||||
Fair market value adjustment to non-controlling interests | (29) | ||||||
Other comprehensive income (loss) | (177) | (2) | |||||
Balance at end of period at Jun. 30, 2022 | 1 | 1,133 | (1,133) | (940) | 4,085 | 15 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Net income (loss) | 106 | 2 | |||||
Dividends declared | (48) | ||||||
Repurchases of common stock | (29) | ||||||
Share-based compensation, net of issuance | 3 | ||||||
Other comprehensive income (loss) | (112) | (3) | |||||
Balance at end of period at Sep. 30, 2022 | $ 1 | $ 1,133 | $ (1,159) | $ (1,052) | $ 4,143 | $ 14 | $ 3,080 |
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, 2020 | 30 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 2 |
Share-based Payments Subject to Redemption, Ending Balance at Sep. 30, 2021 | 32 |
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2020 | 70 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | (3) |
Other comprehensive income (loss) | 1 |
Redeemable Non-Controlling Interests, Ending Balance at Sep. 30, 2021 | 68 |
Share-based Payments Subject to Redemption, Beginning Balance at Mar. 31, 2021 | 21 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 7 |
Share-based Payments Subject to Redemption, Ending Balance at Jun. 30, 2021 | 28 |
Redeemable Non-Controlling Interests, Beginning Balance at Mar. 31, 2021 | 70 |
Redeemable Non-Controlling Interests, Ending Balance at Jun. 30, 2021 | 70 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 4 |
Share-based Payments Subject to Redemption, Ending Balance at Sep. 30, 2021 | 32 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | (2) |
Redeemable Non-Controlling Interests, Ending Balance at Sep. 30, 2021 | 68 |
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 |
Share-based Payments Subject to Redemption, Beginning Balance at Dec. 31, 2021 | 36 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 7 |
Share-based Payments Subject to Redemption, Ending Balance at Sep. 30, 2022 | 43 |
Redeemable Non-Controlling Interests, Beginning Balance at Dec. 31, 2021 | 71 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | 2 |
Fair market value adjustment to non-controlling interests | 29 |
Non-controlling interest purchases | (40) |
Other comprehensive income (loss) | (6) |
Redeemable Non-Controlling Interests, Ending Balance at Sep. 30, 2022 | 56 |
Share-based Payments Subject to Redemption, Beginning Balance at Mar. 31, 2022 | 31 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 6 |
Share-based Payments Subject to Redemption, Ending Balance at Jun. 30, 2022 | 37 |
Redeemable Non-Controlling Interests, Beginning Balance at Mar. 31, 2022 | 71 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | 1 |
Fair market value adjustment to non-controlling interests | 29 |
Non-controlling interest purchases | (27) |
Other comprehensive income (loss) | (4) |
Redeemable Non-Controlling Interests, Ending Balance at Jun. 30, 2022 | 70 |
Increase (Decrease) in Temporary Equity | |
Share-based compensation, net of issuance | 6 |
Share-based Payments Subject to Redemption, Ending Balance at Sep. 30, 2022 | 43 |
Increase (Decrease) in Temporary Equity | |
Net income (loss) attributable to non-controlling interests | 1 |
Non-controlling interest purchases | (13) |
Other comprehensive income (loss) | (2) |
Redeemable Non-Controlling Interests, Ending Balance at Sep. 30, 2022 | $ 56 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash provided by operating activities | ||
Net income | $ 387 | $ 57 |
Non-cash charges to net income: | ||
Depreciation and amortization | 160 | 155 |
Mechanical stores expense | 42 | 40 |
Impairment on disposition of assets | 340 | |
Deferred income taxes | (3) | (25) |
Other non-cash charges | 41 | 4 |
Changes in working capital: | ||
Accounts receivable and prepaid expenses | (276) | (126) |
Inventories | (401) | (226) |
Accounts payable and accrued liabilities | 99 | 94 |
Margin accounts | (11) | (34) |
Other | 42 | (20) |
Cash provided by operating activities | 80 | 259 |
Cash used for investing activities | ||
Capital expenditures and mechanical stores purchases | (203) | (203) |
Proceeds from disposal of manufacturing facilities and properties | 7 | 17 |
Payments for acquisitions, net of cash acquired of $- and $2, respectively | (7) | (40) |
Other | 1 | (12) |
Cash used for investing activities | (202) | (238) |
Cash provided by (used for) financing activities | ||
Proceeds from borrowings | 376 | 804 |
Payments on debt | (342) | (1,194) |
Commercial paper borrowings, net | 372 | 350 |
Repurchases of common stock, net | (112) | (68) |
Purchases of non-controlling interests | (40) | |
Issuances of common stock for share-based compensation, net of settlements | 1 | 10 |
Dividends paid, including to non-controlling interests | (133) | (138) |
Cash provided by (used for) financing activities | 122 | (236) |
Effects of foreign exchange rate changes on cash | (34) | (16) |
Decrease in cash and cash equivalents | (34) | (231) |
Cash and cash equivalents, beginning of period | 328 | 665 |
Cash and cash equivalents, end of period | $ 294 | $ 434 |
Condensed Consolidated Statem_7
Condensed Consolidated Statements of Cash Flows (Parenthetical) $ in Millions | 9 Months Ended |
Sep. 30, 2021 USD ($) | |
Condensed Consolidated Statements of Cash Flows | |
Cash acquired from acquisition | $ 2 |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 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 September 30, 2022 and for the three and nine months ended September 30, 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) that are, in the opinion of management, necessary for the fair presentation of the Condensed Consolidated Statements of Income, Condensed Consolidated Statements of Comprehensive (Loss) Income, 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 | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Standards and 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. There have been no material changes to our significant accounting standards and policies for the three and nine months ended September 30, 2022. 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 In September 2022, the FASB issued ASU No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2022 | |
Acquisitions | |
Acquisitions | 3. Acquisitions PureCircle Non-Controlling Interests During the three and nine months ended September 30, 2022, Ingredion purchased shares from minority shareholders in PureCircle Limited (“PureCircle”) for $13 million and $40 million, respectively. These purchases increased our ownership percentage in PureCircle from 75 percent as of December 31, 2021, to 85 percent as of September 30, 2022. Other Acquisitions On August 1, 2022, Ingredion acquired Amishi Drugs and Chemicals Private Limited (“Amishi”) for $7 million, which added $2 million of goodwill and intangible assets to our Condensed Consolidated Financial Statements. Amishi is an Indian manufacturer of chemically modified starch-based pharmaceutical excipients. Beginning at the acquisition date, our Condensed Consolidated Financial Statements reflect the preliminary effects of the acquisition and Amishi’s financial results, which we report in our Asia-Pacific reportable business segment. 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, to our Condensed Consolidated Financial Statements. 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. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2022 | |
Intangible Assets | |
Intangible Assets | 4. Intangible Assets Goodwill ($883 million and $914 million at September 30, 2022, and December 31, 2021, respectively) represents the excess of the cost of an acquired entity over the fair value assigned to identifiable assets acquired and liabilities assumed. Ingredion also had indefinite-lived intangible assets of $143 million at each of September 30, 2022, and December 31, 2021. The original carrying value of goodwill and accumulated impairment charges by reportable business segment at September 30, 2022, are as follows: North South Asia- (in millions) America America Pacific EMEA Total Goodwill before impairment charges $ 624 $ 48 $ 323 $ 74 $ 1,069 Accumulated impairment charges (1) (33) (121) — (155) Balance at January 1, 2022 623 15 202 74 914 Acquisitions — — 2 4 6 Currency translation (1) 1 (25) (12) (37) Balance at September 30, 2022 $ 622 $ 16 $ 179 $ 66 $ 883 The following table summarizes the balances of Ingredion’s indefinite-lived intangible assets at the dates presented: (in millions) As of September 30, 2022 As of December 31, 2021 Trademarks/tradenames (indefinite-lived) $ 143 $ 143 Ingredion assesses goodwill and indefinite-lived intangible assets for impairment annually (or more frequently if impairment indicators arise). Based on the results of our assessment as of July 1, 2022, there were no impairments |
Investments
Investments | 9 Months Ended |
Sep. 30, 2022 | |
Investments | |
Investments | 5. Investments Investments consisted of the following as of the dates indicated: (in millions) September 30, 2022 December 31, 2021 Equity investments $ 23 $ 16 Equity method investments 109 104 Marketable securities 4 12 Total investments $ 136 $ 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) during the nine months ended September 30, 2021, which included $18 million related to the non-exclusive intellectual property licenses, partly offset by the $10 million cash payment. Beginning on June 1, 2021, Ingredion began accounting for the investment under the equity method. Argentina 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 “Argentina 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 Argentina 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 Argentina 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 an insignificant amount of pre-tax acquisition and integration costs during the three and nine months ended September 30, 2022, related to our investments in the Amyris and Argentina joint ventures. Ingredion incurred $3 million of pre-tax acquisition costs to acquire the Argentina joint venture investment during the three months ended September 30, 2021, and $4 million of pre-tax gains, consisting of the $8 million gain related to the Amyris joint venture, partially offset by $4 million of acquisition costs to acquire the Argentina and Amyris joint ventures during the nine months ended September 30, 2021. |
Restructuring and Impairment Ch
Restructuring and Impairment Charges | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Impairment Charges | |
Restructuring and Impairment Charges | 6. Restructuring and Impairment Charges For the three and nine months ended September 30, 2022, Ingredion recorded an insignificant amount and $4 million of pre-tax restructuring-related charges, respectively. For the three and nine months ended September 30, 2021, Ingredion recorded $12 million of net pre-tax restructuring and impairment income and $362 million of pre-tax restructuring and impairment charges, respectively. Restructuring Charges For the three months ended 30, 2022, we recorded an insignificant amount of pre-tax restructuring-related charges. For the nine months ended 30, 2022, we recorded $4 million of pre-tax restructuring-related charges, which included $3 million of costs associated with our Cost Smart selling, general and administrative expense (“SG&A”) program and $1 million of costs as part of our Cost Smart Cost of sales program. For the three months ended 30, 2021, For the nine months ended September 30, 2021, we recorded $22 million of pre-tax net restructuring-related charges, consisting of $13 million of costs associated with our Cost Smart SG&A program and $11 million of costs as part of our Cost Smart Cost of sales program. The Cost Smart Cost of sales program charges were partly offset by a $5 million gain on the sale of the Stockton, California land and building. We also recorded $3 million of restructuring charges related to disposition of the assets contributed to the Argentina joint venture. A summary of Ingredion’s severance accrual at September 30, 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 (2) Balance in severance accrual as of September 30, 2022 $ 1 Impairment Charges At the announcement of our agreement to invest in the Argentina joint venture during the three months ended March 31, 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 recorded an impairment charge of $360 million based on our preliminary estimates of their fair value. Upon completion of the transaction, we disposed of the assets and liabilities from our Argentina, Chile and Uruguay operations, which were previously accounted for as held for sale, and transferred them to the Argentina joint venture in exchange for an equity share in the venture. We accounted for our share of the venture as an equity method investment as discussed in Note 5. Upon disposal, we valued the assets and liabilities transferred at fair value. This resulted in a $20 million favorable adjustment to the estimated impairment charge during the three months ended September 30, 2021. The total net impairment charge was $340 million for the nine months ended September 30, 2021, of which $311 million was related to the write-off of the cumulative translation losses associated with the contributed net assets and $29 million was related to the write-down of the contributed net assets to fair value. We recorded the impairment within Restructuring/impairment charges and related adjustments in the Condensed Consolidated Statements of Income during the nine months ended September 30, 2021. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities | |
Derivative Instruments and Hedging Activities | 7. 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 September 30, 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 three and nine months ended September 30, 2022, Ingredion recognized a $3 million gain and $2 million gain, respectively, on non-designated commodity contracts. During the three and nine months ended September 30, 2021, Ingredion recognized an insignificant gain and a $1 million loss, respectively, on non-designated commodity contracts. 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 76 million and 135 million bushels of corn as of September 30, 2022 and December 31. 2021, respectively. Ingredion also had outstanding swap contracts that hedged the forecasted purchase of approximately 30 million and 35 million mmbtus of natural gas as of September 30, 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 $441 million and $360 million as of September 30, 2022 and December 31, 2021, respectively. Ingredion also hedges certain liabilities using foreign currency derivatives not designated as hedging instruments for accounting purposes, which had a notional value of $282 million and $205 million as of September 30, 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 $782 million and $505 million as of September 30, 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 $914 million and $708 million as of September 30, 2022 and December 31, 2021, respectively. Interest rate hedging Ingredion periodically enters into interest rate swaps to hedge its exposure to interest rate changes under its senior notes. 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 September 30, 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 September 30, 2022 and December 31, 2021. The derivative instruments designated as cash flow hedges included in AOCL as of September 30, 2022 and December 31, 2021 are reflected below: Amount of Gains Derivatives in Cash Flow Hedging Relationships (Losses) included in AOCL (in millions) September 30, 2022 December 31, 2021 Commodity contracts, net of income tax effect of $29 and $19, respectively $ 84 $ 51 Foreign currency contracts, net of income tax effect of $4 and $ -, respectively 6 — Interest rate contracts, net of income tax effect of $1 (3) (3) Total $ 87 $ 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 September 30, 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 $ 82 $ 27 $ 109 $ 3 $ 30 $ 33 Other assets 7 19 26 — — — Assets 89 46 135 3 30 33 Accounts payable and accrued liabilities 13 20 33 1 10 11 Non-current liabilities 1 18 19 — — — Liabilities 14 38 52 1 10 11 Net Assets/(Liabilities) $ 75 $ 8 $ 83 $ 2 $ 20 $ 22 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 (Losses) Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Three Months Ended September 30, Income Statement Three Months Ended September 30, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 72 $ 36 Cost of sales $ 72 $ 62 Foreign currency contracts 3 (1) Net sales/Cost of sales 1 (2) Interest rate contracts — — Financing costs, net — — Total $ 75 $ 35 $ 73 $ 60 Derivatives in Cash-Flow Gains (Losses) Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Nine Months Ended September 30, Income Statement Nine Months Ended September 30, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 240 $ 212 Cost of sales $ 197 $ 171 Foreign currency contracts 14 (1) Net sales/Cost of sales 4 (1) Interest rate contracts — — Financing costs, net — — Total $ 254 $ 211 $ 201 $ 170 As of September 30, 2022, AOCL included $86 million of net gains (net of income taxes of $32 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 | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Fair Value Measurements | 8. 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 September 30, 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 $ 4 $ 4 $ — $ — $ 12 $ 12 $ — $ — Derivative assets 168 110 58 — 74 49 25 — Derivative liabilities 63 58 5 — 32 22 10 — Long-term debt 1,523 — 1,523 — 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 | 9 Months Ended |
Sep. 30, 2022 | |
Financing Arrangements | |
Financing Arrangements | 9. Financing Arrangements Presented below are Ingredion’s debt carrying amounts, net of related discounts, premiums, and debt issuance costs as of September 30, 2022 and December 31, 2021: As of As of (in millions) September 30, 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 622 250 Other short-term borrowings 87 58 Total short-term borrowings 709 308 Total debt $ 2,448 $ 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 the nine months ended September 30, 2022, the average amount of commercial paper outstanding was $489 million with an average interest rate of 1.50 percent and a weighted average maturity of 18 days. From the inception of the program until September 30, 2021, the average amount of commercial paper outstanding was $401 million with an average interest rate of 0.23 percent and a weighted average maturity of 37 days. As of September 30, 2022, $622 million of commercial paper was outstanding with an average interest rate of 3.50 percent and a weighted average maturity of 16 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 September 30, 2022 and December 31, 2021, primarily include amounts outstanding under various unsecured local country operating lines of credit. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies | |
Commitments and Contingencies | 10. 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 rulings that Ingredion had received in previous years and affirmed that Ingredion is entitled to previously recorded tax credits. The Court ruling affirmed 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. As a result, during the nine months ended September 30, 2021, Ingredion recorded the $15 million of additional credits within Other operating expense (income) in the Condensed Consolidated Statements of Income. As of September 30, 2022 and December 31, 2021, Ingredion had $20 million and $41 million, respectively, of remaining indirect tax credits recorded in Other assets and Prepaid expenses on the Condensed Consolidated Balance Sheets. These credits resulted in an insignificant amount and $5 million of deferred income taxes as of September 30, 2022 and December 31, 2021, respectively. 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 | 9 Months Ended |
Sep. 30, 2022 | |
Income Taxes | |
Income Taxes | 11. Income Taxes During the three months ended March 31, 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, we recorded a provisional tax liability during the three months ended March 31, 2022, and will continue to assess the impact of the regulations on our Condensed Consolidated Financial Statements in future periods. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Sep. 30, 2022 | |
Pension and Other Postretirement Benefits | |
Pension and Other Postretirement Benefits | 12. 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 September 30, Nine Months Ended September 30, U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest cost 2 2 2 2 6 6 7 7 Expected return on plan assets (5) (4) (2) (2) (13) (13) (6) (6) Amortization of actuarial loss — (1) — 1 — (1) — 2 Net periodic (benefit) cost (a) $ (2) $ (2) $ 1 $ 2 $ (4) $ (5) $ 4 $ 6 We currently anticipate 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 nine months ended September 30, 2022, we made cash contributions of approximately $2 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 September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 1 1 2 2 Amortization of prior service cost (credit) — — 1 (1) Net periodic cost (a) $ 1 $ 1 $ 3 $ 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. 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 Incom e. |
Equity
Equity | 9 Months Ended |
Sep. 30, 2022 | |
Equity | |
Equity | 13. Equity Treasury stock On September 26, 2022, the Board of Directors contemporaneously approved a new stock repurchase program to authorize Ingredion to purchase up to 6 million shares of its outstanding common stock from September 26, 2022, through December 31, 2025. Ingredion may repurchase shares from time to time in the open market, in privately negotiated transactions, or otherwise, at prices Ingredion deems appropriate. Ingredion is not obligated to repurchase any shares under the authorization, and the new repurchase program may be suspended, discontinued, or modified at any time, for any reason and without notice. The parameters of Ingredion’s stock repurchase programs are not established solely with reference to the dilutive impact of shares issued under Ingredion’s stock incentive plan. However, Ingredion expects that, over time, share repurchases will offset the dilutive impact of shares issued under the stock incentive plan. During the three and nine months ended September 30, 2022, we repurchased 325 thousand and 1,283 thousand outstanding shares of common stock in open market transactions at a net cost of Share-based payments: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Stock options: Pre-tax compensation expense $ 1 $ 1 $ 3 $ 3 Income tax benefit — — — — Stock option expense, net of income taxes 1 1 3 3 Restricted stock units ("RSUs"): Pre-tax compensation expense 4 2 10 8 Income tax benefit — — (1) (1) RSUs, net of income taxes 4 2 9 7 Performance shares and other share-based awards: Pre-tax compensation expense 2 1 9 4 Income tax benefit — — (1) — Performance shares and other share-based compensation expense, net of income taxes 2 1 8 4 Total share-based compensation: Pre-tax compensation expense 7 4 22 15 Income tax benefit — — (2) (1) Total share-based compensation expense, net of income taxes $ 7 $ 4 $ 20 $ 14 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 nine months ended September 30, 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: Nine Months Ended September 30, 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 nine months ended September 30, 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 (70) 61.56 Cancelled (31) 103.55 Outstanding as of September 30, 2022 2,334 $ 90.87 5.22 $ 7 Exercisable as of September 30, 2022 1,763 $ 91.78 4.10 $ 7 For the nine months ended September 30, 2022, cash received from the exercise of stock options was approximately $4 million. As of September 30, 2022, the unrecognized compensation cost related to non-vested stock options totaled $4 million, which is expected to be amortized over the weighted-average period of approximately 1.7 years. Additional information pertaining to stock option activity is as follows for the periods presented: Three Months Ended Nine Months Ended September 30, September 30, (dollars in millions, except per share) 2022 2021 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 $ — $ 2 $ 6 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 207 88.82 Vested (128) 91.20 Cancelled (45) 87.04 Non-vested as of September 30, 2022 520 $ 87.95 As of September 30, 2022, the total remaining unrecognized compensation cost related to RSUs was $21 million, which will be amortized on a weighted-average basis over approximately 1.5 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 People, Culture and 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 People, Culture and 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 nine months ended September 30, 2022, Ingredion awarded 86 thousand performance shares at a weighted average fair value of $138.85 per share. As of September 30, 2022, the unrecognized compensation cost related to these awards was $11 million, which will be amortized over the remaining requisite service period of 1.9 years. The 2019 performance share awards, whose three-year performance period has ended, achieved a zero percent payout of granted performance shares. There were approximately two thousand performance shares cancelled during 2022. Accumulated Other Comprehensive Loss: The following is a summary of Accumulated other comprehensive loss for the nine months ended September 30, 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 (loss) gain before reclassification adjustments (195) 254 — 59 (Gain) reclassified from accumulated OCL — (201) 1 (200) Tax (provision) — (14) — (14) Net other comprehensive (loss) income (195) 39 1 (155) Balance, September 30, 2022 $ (1,098) $ 87 $ (41) $ (1,052) (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) gain before reclassification adjustments (85) 211 — 126 (Gain) reclassified from accumulated OCL 311 (170) — 141 Tax (provision) — (11) — (11) Net other comprehensive (loss) income 226 30 — 256 Balance, September 30, 2021 $ (888) $ 72 $ (61) $ (877) 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 Net income attributable to Ingredion 142 Net income attributable to non-controlling interests 2 1 Dividends declared, common stock ($0.65/share) (43) Dividends declared, non-controlling interests (4) Repurchases of common stock (44) Share-based compensation, net of issuance 2 2 6 Fair market value adjustment to non-controlling interests (29) 29 Non-controlling interest purchases (27) Other comprehensive (loss) (177) (2) (4) Balance, June 30, 2022 $ — $ 1 $ 1,133 $ (1,133) $ (940) $ 4,085 $ 15 $ 37 $ 70 Net income attributable to Ingredion 106 Net income attributable to non-controlling interests 2 1 Dividends declared, common stock ($0.71/share) (48) Repurchases of common stock (29) Share-based compensation, net of issuance 3 6 Non-controlling interest purchases (13) Other comprehensive (loss) (112) (3) (2) Balance, September 30, 2022 $ — $ 1 $ 1,133 $ (1,159) $ (1,052) $ 4,143 $ 14 $ 43 $ 56 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 (loss) 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 Net income attributable to Ingredion 178 Net income attributable to non-controlling interests 3 Dividends declared, common stock ($0.64/share) (43) Dividends declared, non-controlling interests (7) Repurchases of common stock (10) Share-based compensation, net of issuance (1) 3 7 Other comprehensive income 58 Balance, June 30, 2021 $ — $ 1 $ 1,154 $ (1,029) $ (1,106) $ 3,802 $ 22 $ 28 $ 70 Net income attributable to Ingredion 118 Net income (loss) attributable to non-controlling interests 3 (2) Dividends declared, common stock ($0.65/share) (43) Dividends declared, non-controlling interests (3) Repurchases of common stock (44) Share-based compensation, net of issuance 1 1 4 Other comprehensive income (loss) 229 (3) Balance, September 30, 2021 $ — $ 1 $ 1,155 $ (1,072) $ (877) $ 3,877 $ 19 $ 32 $ 68 Supplemental Information: Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ 106 65.8 $ 1.61 $ 118 67.0 $ 1.76 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.8 0.6 Diluted EPS $ 106 66.6 $ 1.59 $ 118 67.6 $ 1.75 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 378 66.4 $ 5.69 $ 50 67.2 $ 0.74 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.7 0.6 Diluted EPS $ 378 67.1 $ 5.63 $ 50 67.8 $ 0.74 Approximately 1.6 million and 1.4 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 three and nine months ended September 30, 2022, respectively. For the three and nine months ended September 30, 2021, approximately 1.6 million and 1.5 million share-based awards of common stock, respectively, were excluded from the calculation of diluted EPS as the impact of their inclusion would have been anti-dilutive. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2022 | |
Segment Information | |
Segment Information | 14. 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 Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Net sales to unaffiliated customers: North America $ 1,262 $ 1,083 $ 3,720 $ 3,096 South America 293 260 835 801 Asia-Pacific 278 245 825 728 EMEA 190 175 579 514 Total net sales $ 2,023 $ 1,763 $ 5,959 $ 5,139 Presented below are Ingredion’s operating income by reportable segment for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Operating income: North America $ 126 $ 120 $ 443 $ 403 South America 48 35 125 108 Asia-Pacific 27 21 70 70 EMEA 30 23 90 86 Corporate (40) (36) (109) (95) Subtotal 191 163 619 572 Acquisition/integration costs — (3) (1) (1) Restructuring/impairment charges and related adjustments — (8) (4) (22) Impairment on assets held for sale — 20 — (340) Other matters (9) — (9) 15 Total operating income $ 182 $ 172 $ 605 $ 224 Presented below are Ingredion’s total assets by reportable segment as of September 30, 2022 and December 31, 2021: As of As of (in millions) September 30, 2022 December 31, 2021 Assets: North America (a) $ 4,576 $ 4,203 South America 892 799 Asia-Pacific 1,340 1,403 EMEA 595 594 Total assets $ 7,403 $ 6,999 For purposes of presentation, North America includes Corporate assets. |
Supplementary Information
Supplementary Information | 9 Months Ended |
Sep. 30, 2022 | |
Supplementary Information | |
Supplementary Information | 15. Supplementary Financial Statement Information Accounts Receivable, Net Accounts receivable, net are summarized as follows: As of As of (in millions) September 30, 2022 December 31, 2021 Accounts receivable, net: Accounts receivable - trade $ 1,170 $ 950 Accounts receivable - other 253 193 Allowance for credit losses (17) (13) Total accounts receivable $ 1,406 $ 1,130 There were no significant contract assets or significant contract liabilities associated with our customers as of September 30, 2022 or December 31, 2021. Liabilities for volume discounts and incentives were also not significant as of September 30, 2022 or December 31, 2021. Inventories Inventories are summarized as follows: As of As of (in millions) September 30, 2022 December 31, 2021 Finished and in process $ 895 $ 688 Raw materials 517 380 Manufacturing supplies and other 88 104 Total inventories $ 1,500 $ 1,172 |
Summary of Significant Accoun_2
Summary of Significant Accounting Standards and Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Summary of Significant Accounting Standards and 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 In September 2022, the FASB issued ASU No. 2022-04, Liabilities – Supplier Finance Programs (Subtopic 405-50): Disclosure of Supplier Finance Program Obligations |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Intangible Assets | |
Schedule of goodwill | North South Asia- (in millions) America America Pacific EMEA Total Goodwill before impairment charges $ 624 $ 48 $ 323 $ 74 $ 1,069 Accumulated impairment charges (1) (33) (121) — (155) Balance at January 1, 2022 623 15 202 74 914 Acquisitions — — 2 4 6 Currency translation (1) 1 (25) (12) (37) Balance at September 30, 2022 $ 622 $ 16 $ 179 $ 66 $ 883 |
Schedule of intangible assets | (in millions) As of September 30, 2022 As of December 31, 2021 Trademarks/tradenames (indefinite-lived) $ 143 $ 143 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Investments | |
Schedule of investments | (in millions) September 30, 2022 December 31, 2021 Equity investments $ 23 $ 16 Equity method investments 109 104 Marketable securities 4 12 Total investments $ 136 $ 132 |
Restructuring and Impairment _2
Restructuring and Impairment Charges (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Restructuring and Impairment Charges | |
Summary of severance accrual | A summary of Ingredion’s severance accrual at September 30, 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 (2) Balance in severance accrual as of September 30, 2022 $ 1 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Derivative 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) September 30, 2022 December 31, 2021 Commodity contracts, net of income tax effect of $29 and $19, respectively $ 84 $ 51 Foreign currency contracts, net of income tax effect of $4 and $ -, respectively 6 — Interest rate contracts, net of income tax effect of $1 (3) (3) Total $ 87 $ 48 |
Schedule of location and amount of assets and liabilities reported in balance sheet | Fair Value of Hedging Instruments as of September 30, 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 $ 82 $ 27 $ 109 $ 3 $ 30 $ 33 Other assets 7 19 26 — — — Assets 89 46 135 3 30 33 Accounts payable and accrued liabilities 13 20 33 1 10 11 Non-current liabilities 1 18 19 — — — Liabilities 14 38 52 1 10 11 Net Assets/(Liabilities) $ 75 $ 8 $ 83 $ 2 $ 20 $ 22 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 (Losses) Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Three Months Ended September 30, Income Statement Three Months Ended September 30, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 72 $ 36 Cost of sales $ 72 $ 62 Foreign currency contracts 3 (1) Net sales/Cost of sales 1 (2) Interest rate contracts — — Financing costs, net — — Total $ 75 $ 35 $ 73 $ 60 Derivatives in Cash-Flow Gains (Losses) Recognized in AOCL on Derivatives Gains (Losses) Reclassified from AOCL into Income Hedging Relationships Nine Months Ended September 30, Income Statement Nine Months Ended September 30, (in millions) 2022 2021 Location 2022 2021 Commodity contracts $ 240 $ 212 Cost of sales $ 197 $ 171 Foreign currency contracts 14 (1) Net sales/Cost of sales 4 (1) Interest rate contracts — — Financing costs, net — — Total $ 254 $ 211 $ 201 $ 170 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Measurements | |
Schedule of assets and liabilities measured at fair value | As of September 30, 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 $ 4 $ 4 $ — $ — $ 12 $ 12 $ — $ — Derivative assets 168 110 58 — 74 49 25 — Derivative liabilities 63 58 5 — 32 22 10 — Long-term debt 1,523 — 1,523 — 1,957 — 1,957 — |
Financing Arrangements (Tables)
Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Financing Arrangements | |
Schedule of debt | As of As of (in millions) September 30, 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 622 250 Other short-term borrowings 87 58 Total short-term borrowings 709 308 Total debt $ 2,448 $ 2,046 |
Net Periodic Pension and Postre
Net Periodic Pension and Postretirement Benefit Costs (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Pension Plan | |
Pension and other postretirement benefits | |
Components of net periodic benefit cost | Three Months Ended September 30, Nine Months Ended September 30, U.S. Plans Non-U.S. Plans U.S. Plans Non-U.S. Plans (in millions) 2022 2021 2022 2021 2022 2021 2022 2021 Service cost $ 1 $ 1 $ 1 $ 1 $ 3 $ 3 $ 3 $ 3 Interest cost 2 2 2 2 6 6 7 7 Expected return on plan assets (5) (4) (2) (2) (13) (13) (6) (6) Amortization of actuarial loss — (1) — 1 — (1) — 2 Net periodic (benefit) cost (a) $ (2) $ (2) $ 1 $ 2 $ (4) $ (5) $ 4 $ 6 |
Postemployment Retirement Benefits | |
Pension and other postretirement benefits | |
Components of net periodic benefit cost | Three Months Ended September 30, Nine Months Ended September 30, (in millions) 2022 2021 2022 2021 Service cost $ — $ — $ — $ — Interest cost 1 1 2 2 Amortization of prior service cost (credit) — — 1 (1) Net periodic cost (a) $ 1 $ 1 $ 3 $ 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. 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 Incom e. |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity | |
Schedule of stock based compensation expense | Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Stock options: Pre-tax compensation expense $ 1 $ 1 $ 3 $ 3 Income tax benefit — — — — Stock option expense, net of income taxes 1 1 3 3 Restricted stock units ("RSUs"): Pre-tax compensation expense 4 2 10 8 Income tax benefit — — (1) (1) RSUs, net of income taxes 4 2 9 7 Performance shares and other share-based awards: Pre-tax compensation expense 2 1 9 4 Income tax benefit — — (1) — Performance shares and other share-based compensation expense, net of income taxes 2 1 8 4 Total share-based compensation: Pre-tax compensation expense 7 4 22 15 Income tax benefit — — (2) (1) Total share-based compensation expense, net of income taxes $ 7 $ 4 $ 20 $ 14 |
Schedule of valuation assumptions for stock options | Nine Months Ended September 30, 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 (70) 61.56 Cancelled (31) 103.55 Outstanding as of September 30, 2022 2,334 $ 90.87 5.22 $ 7 Exercisable as of September 30, 2022 1,763 $ 91.78 4.10 $ 7 |
Schedule of additional information pertaining to stock option activity | Three Months Ended Nine Months Ended September 30, September 30, (dollars in millions, except per share) 2022 2021 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 $ — $ 2 $ 6 |
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 207 88.82 Vested (128) 91.20 Cancelled (45) 87.04 Non-vested as of September 30, 2022 520 $ 87.95 |
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 (loss) gain before reclassification adjustments (195) 254 — 59 (Gain) reclassified from accumulated OCL — (201) 1 (200) Tax (provision) — (14) — (14) Net other comprehensive (loss) income (195) 39 1 (155) Balance, September 30, 2022 $ (1,098) $ 87 $ (41) $ (1,052) (in millions) Cumulative Translation Adjustment Hedging Activities Pension and Postretirement Adjustment AOCL Balance, December 31, 2020 $ (1,114) $ 42 $ (61) $ (1,133) Other comprehensive (loss) gain before reclassification adjustments (85) 211 — 126 (Gain) reclassified from accumulated OCL 311 (170) — 141 Tax (provision) — (11) — (11) Net other comprehensive (loss) income 226 30 — 256 Balance, September 30, 2021 $ (888) $ 72 $ (61) $ (877) |
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 Net income attributable to Ingredion 142 Net income attributable to non-controlling interests 2 1 Dividends declared, common stock ($0.65/share) (43) Dividends declared, non-controlling interests (4) Repurchases of common stock (44) Share-based compensation, net of issuance 2 2 6 Fair market value adjustment to non-controlling interests (29) 29 Non-controlling interest purchases (27) Other comprehensive (loss) (177) (2) (4) Balance, June 30, 2022 $ — $ 1 $ 1,133 $ (1,133) $ (940) $ 4,085 $ 15 $ 37 $ 70 Net income attributable to Ingredion 106 Net income attributable to non-controlling interests 2 1 Dividends declared, common stock ($0.71/share) (48) Repurchases of common stock (29) Share-based compensation, net of issuance 3 6 Non-controlling interest purchases (13) Other comprehensive (loss) (112) (3) (2) Balance, September 30, 2022 $ — $ 1 $ 1,133 $ (1,159) $ (1,052) $ 4,143 $ 14 $ 43 $ 56 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 (loss) 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 Net income attributable to Ingredion 178 Net income attributable to non-controlling interests 3 Dividends declared, common stock ($0.64/share) (43) Dividends declared, non-controlling interests (7) Repurchases of common stock (10) Share-based compensation, net of issuance (1) 3 7 Other comprehensive income 58 Balance, June 30, 2021 $ — $ 1 $ 1,154 $ (1,029) $ (1,106) $ 3,802 $ 22 $ 28 $ 70 Net income attributable to Ingredion 118 Net income (loss) attributable to non-controlling interests 3 (2) Dividends declared, common stock ($0.65/share) (43) Dividends declared, non-controlling interests (3) Repurchases of common stock (44) Share-based compensation, net of issuance 1 1 4 Other comprehensive income (loss) 229 (3) Balance, September 30, 2021 $ — $ 1 $ 1,155 $ (1,072) $ (877) $ 3,877 $ 19 $ 32 $ 68 |
Schedule of basic and diluted earnings per common share | Three Months Ended September 30, 2022 Three Months Ended September 30, 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 $ 106 65.8 $ 1.61 $ 118 67.0 $ 1.76 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.8 0.6 Diluted EPS $ 106 66.6 $ 1.59 $ 118 67.6 $ 1.75 Nine Months Ended September 30, 2022 Nine Months Ended September 30, 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 $ 378 66.4 $ 5.69 $ 50 67.2 $ 0.74 Effect of Dilutive Securities: Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards 0.7 0.6 Diluted EPS $ 378 67.1 $ 5.63 $ 50 67.8 $ 0.74 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 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 Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Net sales to unaffiliated customers: North America $ 1,262 $ 1,083 $ 3,720 $ 3,096 South America 293 260 835 801 Asia-Pacific 278 245 825 728 EMEA 190 175 579 514 Total net sales $ 2,023 $ 1,763 $ 5,959 $ 5,139 Presented below are Ingredion’s operating income by reportable segment for the periods indicated: Three Months Ended Nine Months Ended September 30, September 30, (in millions) 2022 2021 2022 2021 Operating income: North America $ 126 $ 120 $ 443 $ 403 South America 48 35 125 108 Asia-Pacific 27 21 70 70 EMEA 30 23 90 86 Corporate (40) (36) (109) (95) Subtotal 191 163 619 572 Acquisition/integration costs — (3) (1) (1) Restructuring/impairment charges and related adjustments — (8) (4) (22) Impairment on assets held for sale — 20 — (340) Other matters (9) — (9) 15 Total operating income $ 182 $ 172 $ 605 $ 224 Presented below are Ingredion’s total assets by reportable segment as of September 30, 2022 and December 31, 2021: As of As of (in millions) September 30, 2022 December 31, 2021 Assets: North America (a) $ 4,576 $ 4,203 South America 892 799 Asia-Pacific 1,340 1,403 EMEA 595 594 Total assets $ 7,403 $ 6,999 For purposes of presentation, North America includes Corporate assets. |
Supplementary Information (Tabl
Supplementary Information (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Supplementary Information | |
Schedule of accounts receivable, net | As of As of (in millions) September 30, 2022 December 31, 2021 Accounts receivable, net: Accounts receivable - trade $ 1,170 $ 950 Accounts receivable - other 253 193 Allowance for credit losses (17) (13) Total accounts receivable $ 1,406 $ 1,130 |
Schedule of inventories | As of As of (in millions) September 30, 2022 December 31, 2021 Finished and in process $ 895 $ 688 Raw materials 517 380 Manufacturing supplies and other 88 104 Total inventories $ 1,500 $ 1,172 |
Acquisitions - PureCircle Non-C
Acquisitions - PureCircle Non-Controlling Interests (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Acquisition | |||
Purchases of non-controlling interests | $ 40 | ||
PureCircle | |||
Acquisition | |||
Ownership percentage by parent | 85% | 85% | 75% |
PureCircle | |||
Acquisition | |||
Purchases of non-controlling interests | $ 13 | $ 40 |
Acquisitions - Other (Details)
Acquisitions - Other (Details) - USD ($) $ in Millions | 9 Months Ended | ||||
Aug. 01, 2022 | Apr. 01, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Acquisitions | |||||
Payment for acquisition, net of cash acquired | $ 7 | $ 40 | |||
Goodwill and identifiable intangible assets | 1,286 | $ 1,348 | |||
Goodwill | $ 883 | $ 914 | |||
Amishi | |||||
Acquisitions | |||||
Payment for acquisition, net of cash acquired | $ 7 | ||||
Goodwill and identifiable intangible assets | $ 2 | ||||
KaTech | |||||
Acquisitions | |||||
Payment for acquisition, net of cash acquired | $ 40 | ||||
Goodwill and identifiable intangible assets | 26 | ||||
Tangible assets | $ 14 |
Intangible Assets - Goodwill (D
Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jul. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Carrying value of goodwill | |||
Goodwill before impairment charges | $ 1,069 | ||
Accumulated impairment charges | (155) | ||
Balance at the beginning of the period | $ 914 | ||
Acquisitions | 6 | ||
Currency translation | (37) | ||
Balance at the end of the period | 883 | ||
Goodwill impairment | $ 0 | ||
North America Segment | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 624 | ||
Accumulated impairment charges | (1) | ||
Balance at the beginning of the period | 623 | ||
Currency translation | (1) | ||
Balance at the end of the period | 622 | ||
South America Segment | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 48 | ||
Accumulated impairment charges | (33) | ||
Balance at the beginning of the period | 15 | ||
Currency translation | 1 | ||
Balance at the end of the period | 16 | ||
Asia Pacific Segment | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | 323 | ||
Accumulated impairment charges | (121) | ||
Balance at the beginning of the period | 202 | ||
Acquisitions | 2 | ||
Currency translation | (25) | ||
Balance at the end of the period | 179 | ||
EMEA Segment | |||
Carrying value of goodwill | |||
Goodwill before impairment charges | $ 74 | ||
Balance at the beginning of the period | 74 | ||
Acquisitions | 4 | ||
Currency translation | (12) | ||
Balance at the end of the period | $ 66 |
Intangible Assets - Indefinite-
Intangible Assets - Indefinite-lived intangible assets (Details) - USD ($) $ in Millions | Jul. 01, 2022 | Sep. 30, 2022 | Dec. 31, 2021 |
Indefinite-lived intangible assets | |||
Indefinite-lived intangible assets | $ 143 | $ 143 | |
Indefinite-lived intangible assets impairment | $ 0 | ||
Trademarks and Trade Names | |||
Indefinite-lived intangible assets | |||
Indefinite-lived intangible assets | $ 143 | $ 143 |
Investments (Details)
Investments (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Investments | ||
Equity investments | $ 23 | $ 16 |
Equity method investments | 109 | 104 |
Marketable securities | 4 | 12 |
Total investments | $ 136 | $ 132 |
Investments - Amyris & Argentin
Investments - Amyris & Argentina joint venture (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Aug. 02, 2021 USD ($) | Jun. 01, 2021 USD ($) | Sep. 30, 2021 USD ($) | Sep. 30, 2021 USD ($) | Feb. 12, 2021 facility | |
Equity Method Investments | |||||
Income from equity method investment agreement | $ 4 | ||||
Acquisition costs | 4 | ||||
Argentina joint venture | |||||
Equity Method Investments | |||||
Number of manufacturing facilities to be operated | facility | 5 | ||||
Amyris joint venture | |||||
Equity Method Investments | |||||
Ownership percentage | 31% | ||||
Total consideration under equity method investment agreement | $ 28 | ||||
Cash consideration paid | 10 | 10 | |||
Non-exclusive license and other consideration | $ 18 | 18 | |||
Income from equity method investment agreement | $ 8 | ||||
Argentina joint venture | |||||
Equity Method Investments | |||||
Fair value of assets and liabilities transferred | $ 71 | ||||
Ownership percentage | 49% | ||||
Value of shares received as consideration for assets contributed | $ 64 | ||||
Acquisition costs | $ 3 | ||||
Argentina joint venture | Grupo Arcor | |||||
Equity Method Investments | |||||
Cash and other considerations received from joint venture in return of assets and liabilities transferred | $ 7 |
Restructuring and Impairment _3
Restructuring and Impairment Charges - Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and Impairment Charges | ||||
Restructuring/impairment charges and related adjustments | $ 2 | $ (12) | $ 6 | $ 362 |
Restructuring charges | $ 8 | $ 4 | $ 22 |
Restructuring and Impairment _4
Restructuring and Impairment Charges - Restructuring Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring and impairment charges | |||
Restructuring charges | $ 8 | $ 4 | $ 22 |
Cost Smart SG&A Program | |||
Restructuring and impairment charges | |||
Restructuring charges | 4 | 3 | 13 |
Cost Smart Cost of Sales Program | |||
Restructuring and impairment charges | |||
Restructuring charges | 3 | $ 1 | 11 |
Production facility closure, Stockton, California | |||
Restructuring and impairment charges | |||
Gain on the sale of land and building | 5 | ||
Argentina joint venture restructuring | |||
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 | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Restructuring accrual | |||
Restructuring charges | $ 8 | $ 4 | $ 22 |
Employee-related severance costs | |||
Restructuring accrual | |||
Balance in severance accrual at beginning of period | 3 | ||
Payments made to terminated employees | (2) | ||
Balance in severance accrual at end of period | $ 1 |
Restructuring and Impairment _6
Restructuring and Impairment Charges - Impairment Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2021 | |
Restructuring and impairment charges | |||
Impairment on disposition of assets | $ (20) | $ 340 | |
Disposal Group, Held for Sale, Not Discontinued Operations | South American Subsidiaries, PP&E | |||
Restructuring and impairment charges | |||
Impairment on disposition of assets | $ 360 | ||
Disposal Group, Disposed of by Sale, Not Discontinued Operations | South American Subsidiaries, PP&E | |||
Restructuring and impairment charges | |||
Impairment on disposition of assets | $ (20) | 340 | |
Impairment charge - Cumulative translation adjustment | 311 | ||
Impairment charge - Write-down of contributed net assets | $ 29 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Commodity price hedging (Details) bu in Millions, MMBTU in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2022 USD ($) MMBTU bu | Sep. 30, 2021 | Sep. 30, 2022 USD ($) MMBTU bu | Sep. 30, 2021 USD ($) | Dec. 31, 2021 MMBTU bu | |
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 | ||||
Not Designated as Hedging Instrument | Commodity Contract | |||||
Financial instruments, derivatives and hedging activities | |||||
Derivative, Gain (Loss), Statement of Income or Comprehensive Income | Cost of sales | Cost of sales | Cost of sales | Cost of sales | |
Not Designated as Hedging Instrument | Corn Commodity | |||||
Financial instruments, derivatives and hedging activities | |||||
Gain or (loss) recognized in income | $ | $ 3 | $ 2 | $ (1) | ||
Designated as Hedging Instrument | Corn Commodity | |||||
Financial instruments, derivatives and hedging activities | |||||
Futures contract (in bushels for corn and gallons for ethanol) | bu | 76 | 76 | 135 | ||
Designated as Hedging Instrument | Natural Gas Commodity | |||||
Financial instruments, derivatives and hedging activities | |||||
Natural gas futures contract (in mmbtu) | MMBTU | 30 | 30 | 35 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Foreign currency hedging (Details) - Foreign Currency Contracts - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Short | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 441 | $ 360 |
Long | Not Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 282 | 205 |
Cash Flow Hedging | Short | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | 782 | 505 |
Cash Flow Hedging | Long | Designated as Hedging Instrument | ||
Financial instruments, derivatives and hedging activities | ||
Derivative notional amount | $ 914 | $ 708 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - CF Hedges in AOCI (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | $ (1,052) | $ (897) |
Cash Flow Hedging | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 87 | 48 |
Cash Flow Hedging | Commodity Contract | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 84 | 51 |
Tax effect on gains (losses) of derivative instruments | (29) | (19) |
Cash Flow Hedging | Foreign Currency Contracts | ||
Accumulated Other Comprehensive Loss. | ||
Accumulated other comprehensive income (loss) | 6 | |
Tax effect on gains (losses) of derivative instruments | (4) | |
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 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value of derivatives | ||
Derivative Asset, Current, Statement of Financial Position | Accounts receivable, net | Accounts receivable, net |
Derivative Asset, Noncurrent, Statement of Financial Position | Other assets | Other assets |
Derivative Asset, Statement of Financial Position | Other assets, Accounts receivable, net | Other assets, Accounts receivable, net |
Derivative Liability, Current, Statement of Financial Position | Accounts Payable and Accrued Liabilities, Current | Accounts Payable and Accrued Liabilities, Current |
Derivative Liability, Noncurrent, Statement of Financial Position | Other non-current liabilities | Other non-current liabilities |
Derivative Liability, Statement of Financial Position | Accounts Payable and Accrued Liabilities, Current, Other non-current liabilities | Accounts Payable and Accrued Liabilities, Current, Other non-current liabilities |
Designated as Hedging Instrument | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | $ 109 | $ 54 |
Fair value of derivative instruments, Assets, noncurrent | 26 | 13 |
Fair value of derivative instruments, Assets | 135 | 67 |
Fair value of derivative instruments, Liabilities, current | 33 | 17 |
Fair value of derivative instruments, Liabilities, noncurrent | 19 | 8 |
Fair value of derivative instruments, Liabilities | 52 | 25 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 83 | 42 |
Designated as Hedging Instrument | Commodity Contract | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | 82 | 45 |
Fair value of derivative instruments, Assets, noncurrent | 7 | 7 |
Fair value of derivative instruments, Assets | 89 | 52 |
Fair value of derivative instruments, Liabilities, current | 13 | 5 |
Fair value of derivative instruments, Liabilities, noncurrent | 1 | 2 |
Fair value of derivative instruments, Liabilities | 14 | 7 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 75 | 45 |
Designated as Hedging Instrument | Foreign Currency Contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | 27 | 9 |
Fair value of derivative instruments, Assets, noncurrent | 19 | 6 |
Fair value of derivative instruments, Assets | 46 | 15 |
Fair value of derivative instruments, Liabilities, current | 20 | 12 |
Fair value of derivative instruments, Liabilities, noncurrent | 18 | 6 |
Fair value of derivative instruments, Liabilities | 38 | 18 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 8 | (3) |
Not Designated as Hedging Instrument | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | 33 | 7 |
Fair value of derivative instruments, Assets | 33 | 7 |
Fair value of derivative instruments, Liabilities, current | 11 | 6 |
Fair value of derivative instruments, Liabilities, noncurrent | 1 | |
Fair value of derivative instruments, Liabilities | 11 | 7 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 22 | |
Not Designated as Hedging Instrument | Commodity Contract | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | 3 | 4 |
Fair value of derivative instruments, Assets | 3 | 4 |
Fair value of derivative instruments, Liabilities, current | 1 | 2 |
Fair value of derivative instruments, Liabilities | 1 | 2 |
Fair value of derivative instruments, Net Assets/(Liabilities) | 2 | 2 |
Not Designated as Hedging Instrument | Foreign Currency Contracts | ||
Fair value of derivatives | ||
Fair value of derivative instruments, Assets, current | 30 | 3 |
Fair value of derivative instruments, Assets | 30 | 3 |
Fair value of derivative instruments, Liabilities, current | 10 | 4 |
Fair value of derivative instruments, Liabilities, noncurrent | 1 | |
Fair value of derivative instruments, Liabilities | 10 | 5 |
Fair value of derivative instruments, Net Assets/(Liabilities) | $ 20 | $ (2) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Additional information - CF hedges (Details) - Cash Flow Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Hedging relationships | ||||
Gains (Losses) Recognized in AOCL on Derivatives | $ 75 | $ 35 | $ 254 | $ 211 |
Gains (Losses) Reclassified from AOCL into Income | 73 | 60 | 201 | 170 |
Commodity Contract | ||||
Hedging relationships | ||||
Gains (Losses) Recognized in AOCL on Derivatives | 72 | 36 | 240 | 212 |
Commodity Contract | Cost of sales | ||||
Hedging relationships | ||||
Gains (Losses) Reclassified from AOCL into Income | 72 | 62 | 197 | 171 |
Foreign Currency Contracts | ||||
Hedging relationships | ||||
Gains (Losses) Recognized in AOCL on Derivatives | 3 | (1) | 14 | (1) |
Foreign Currency Contracts | Net sales/Cost of sales | ||||
Hedging relationships | ||||
Gains (Losses) Reclassified from AOCL into Income | $ 1 | $ (2) | $ 4 | $ (1) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Gain (Losses) Recognized in Income (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Derivative Instruments and Hedging Activities | |
Gains expected to be reclassified into earnings during the next twelve months, net of tax | $ 86 |
Gains expected to be reclassified into earnings during the next twelve months, income tax effect | $ 32 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Fair value of assets and liabilities | ||
Derivative Asset, Statement of Financial Position | Other assets, Accounts receivable, net | Other assets, Accounts receivable, net |
Derivative Liability, Statement of Financial Position | Accounts Payable and Accrued Liabilities, Current, Other non-current liabilities | Accounts Payable and Accrued Liabilities, Current, Other non-current liabilities |
Recurring | ||
Fair value of assets and liabilities | ||
Available for sale securities | $ 4 | $ 12 |
Derivative assets | 168 | 74 |
Derivative liabilities | 63 | 32 |
Long-term debt | 1,523 | 1,957 |
Recurring | Level 1 | ||
Fair value of assets and liabilities | ||
Available for sale securities | 4 | 12 |
Derivative assets | 110 | 49 |
Derivative liabilities | 58 | 22 |
Recurring | Level 2 | ||
Fair value of assets and liabilities | ||
Derivative assets | 58 | 25 |
Derivative liabilities | 5 | 10 |
Long-term debt | $ 1,523 | $ 1,957 |
Financing Arrangements - Carryi
Financing Arrangements - Carrying amount (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Financing Arrangements | ||
Long-term debt | $ 1,739 | $ 1,738 |
Total short-term borrowings | 709 | 308 |
Total debt | $ 2,448 | $ 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 | 622 | 250 |
Other short-term borrowings | ||
Financing Arrangements | ||
Short-term borrowings | $ 87 | $ 58 |
Financing Arrangements - Commer
Financing Arrangements - Commercial paper (Details) - USD ($) $ in Millions | 2 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Long-term debt | ||||
Payments on debt | $ 342 | $ 1,194 | ||
Proceeds from borrowings | 376 | $ 804 | ||
Commercial paper | ||||
Long-term debt | ||||
Maximum aggregate principal amount | $ 1,000 | |||
Average amount of commercial paper outstanding | $ 401 | $ 489 | ||
Weighted average interest rate (as a percent) | 0.23% | 1.50% | ||
Weighted average maturity | 37 days | 18 days | ||
Short-term borrowings | $ 622 | $ 250 | ||
Weighted average interest rate of outstanding balance (as a percent) | 3.50% | 0.35% | ||
Weighted average maturity of outstanding balance | 16 days | 40 days |
Commitments and Contingencies (
Commitments and Contingencies (Details) - Indirect tax credits - Foreign - Brazil - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||
May 31, 2021 | Sep. 30, 2021 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies | |||||
Brazilian indirect tax credits | $ 5 | $ 5 | |||
Other Assets and Prepaid Expenses | |||||
Commitments and Contingencies | |||||
Future tax credits | $ 20 | $ 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 | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Pension Plan | ||||
Components of Net Periodic Benefit Costs | ||||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Expected Return (Loss), Statement of Income or Comprehensive Income | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Defined Benefit Plan, Net Periodic Benefit (Cost) Credit, Amortization of Gain (Loss), Statement of Income or Comprehensive Income | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Anticipated cash contributions | ||||
Anticipated cash contributions in current year | $ 4 | $ 4 | ||
Pension Plan | UNITED STATES | ||||
Components of Net Periodic Benefit Costs | ||||
Service cost | 1 | $ 1 | 3 | $ 3 |
Interest cost | 2 | 2 | 6 | 6 |
Expected return on plan assets | (5) | (4) | (13) | (13) |
Amortization of actuarial loss | (1) | (1) | ||
Net periodic benefit cost | (2) | (2) | (4) | (5) |
Anticipated cash contributions | ||||
Anticipated cash contributions in current year | 1 | 1 | ||
Pension Plan | Non-U.S. | ||||
Components of Net Periodic Benefit Costs | ||||
Service cost | 1 | 1 | 3 | 3 |
Interest cost | 2 | 2 | 7 | 7 |
Expected return on plan assets | (2) | (2) | (6) | (6) |
Amortization of actuarial loss | 1 | 2 | ||
Net periodic benefit cost | 1 | 2 | 4 | 6 |
Anticipated cash contributions | ||||
Anticipated cash contributions in current year | 3 | 3 | ||
Employer contributions | ||||
Employer contributions | 2 | |||
Postemployment Retirement Benefits | ||||
Components of Net Periodic Benefit Costs | ||||
Interest cost | $ 1 | $ 1 | $ 2 | $ 2 |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Interest Cost, Statement of Income or Comprehensive Income | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Amortization of prior service credit | $ 1 | $ (1) | ||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Amortization of Prior Service Cost (Credit), Statement of Income or Comprehensive Income | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) | Other Nonoperating Income (Expense) |
Net periodic benefit cost | $ 1 | $ 1 | $ 3 | $ 1 |
Equity - Treasury stock (Detail
Equity - Treasury stock (Details) - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Sep. 26, 2022 | Oct. 22, 2018 | |
Treasury Stock, Common | ||||||||||
Treasury stock: | ||||||||||
Purchase/acquisition of treasury stock (in shares) | 325 | 500 | 1,283 | 765 | ||||||
Repurchases of common stock (in dollars) | $ 29 | $ 44 | $ 39 | $ 44 | $ 10 | $ 14 | $ 112 | $ 68 | ||
2018 Stock Repurchase Program | ||||||||||
Treasury stock: | ||||||||||
Shares authorized to be repurchased (in shares) | 8,000 | |||||||||
Remaining shares authorized to be repurchased upon termination of repurchase plan (in shares) | 3,800 | |||||||||
2022 Stock Repurchase Program | ||||||||||
Treasury stock: | ||||||||||
Shares authorized to be repurchased (in shares) | 6,000 |
Equity - Share-based payments (
Equity - Share-based payments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Share-based compensation expense | ||||
Pre-tax compensation expense | $ 7 | $ 4 | $ 22 | $ 15 |
Income tax benefit | (2) | (1) | ||
Total share-based compensation expense, net of income taxes | 7 | 4 | 20 | 14 |
Employee Stock Option | ||||
Share-based compensation expense | ||||
Pre-tax compensation expense | 1 | 1 | 3 | 3 |
Total share-based compensation expense, net of income taxes | 1 | 1 | 3 | 3 |
RSU | ||||
Share-based compensation expense | ||||
Pre-tax compensation expense | 4 | 2 | 10 | 8 |
Income tax benefit | (1) | (1) | ||
Total share-based compensation expense, net of income taxes | 4 | 2 | 9 | 7 |
Performance shares and other share-based awards | ||||
Share-based compensation expense | ||||
Pre-tax compensation expense | 2 | 1 | 9 | 4 |
Income tax benefit | (1) | |||
Total share-based compensation expense, net of income taxes | $ 2 | $ 1 | $ 8 | $ 4 |
Equity - Stock options (Details
Equity - Stock options (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2022 | Sep. 30, 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) | (70) | |||
Cancelled (in shares) | (31) | |||
Outstanding at the end of the period (in shares) | 2,334 | 2,334 | 2,154 | |
Exercisable at the end of the period (in shares) | 1,763 | 1,763 | ||
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) | 61.56 | |||
Cancelled (in dollars per share) | 103.55 | |||
Outstanding at the end of the period (in dollars per share) | $ 90.87 | 90.87 | $ 90.39 | |
Exercisable at the end of the period (in dollars per share) | $ 91.78 | $ 91.78 | ||
Additional information pertaining to stock options | ||||
Average Remaining Contractual Term, Outstanding | 5 years 2 months 19 days | 5 years 3 months 3 days | ||
Average Remaining Contractual Term, Exercisable | 4 years 1 month 6 days | |||
Aggregate Intrinsic Value, Outstanding (in dollars) | $ 7 | $ 7 | $ 26 | |
Aggregate Intrinsic Value, Exercisable (in dollars) | 7 | 7 | ||
Cash received from exercise of stock options | $ 4 | |||
Weighted average grant date fair value of stock options granted (per share) | $ 15.04 | $ 12.31 | ||
Total intrinsic value of stock options exercised | 1 | $ 2 | $ 6 | |
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% | 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 | $ 4 | $ 4 | ||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 8 months 12 days |
Equity - Restricted stock units
Equity - Restricted stock units (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | |||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Other disclosures | ||||||||
Share-based payments subject to redemption | $ 43 | $ 37 | $ 31 | $ 36 | $ 32 | $ 28 | $ 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) | 207 | |||||||
Vested (in shares) | (128) | |||||||
Cancelled (in shares) | (45) | |||||||
Non-vested at the end of the period (in shares) | 520 | |||||||
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) | 88.82 | |||||||
Vested (in dollars per share) | 91.20 | |||||||
Cancelled (in dollars per share) | 87.04 | |||||||
Non-vested at the end of the period (in dollars per share) | $ 87.95 | |||||||
Other disclosures | ||||||||
Unrecognized compensation cost | $ 21 | |||||||
Weighted-average period for amortization of unrecognized compensation cost | 1 year 6 months |
Equity - Performance shares (De
Equity - Performance shares (Details) $ / shares in Units, shares in Thousands, $ in Millions | 9 Months Ended | 12 Months Ended | ||||||
Sep. 30, 2022 USD ($) item $ / shares shares | Dec. 31, 2021 USD ($) item | Jun. 30, 2022 USD ($) | Mar. 31, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2021 USD ($) | Mar. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Share-based compensation | ||||||||
Share-based payments subject to redemption | $ | $ 43 | $ 36 | $ 37 | $ 31 | $ 32 | $ 28 | $ 21 | $ 30 |
Performance Shares | ||||||||
Share-based compensation | ||||||||
Number of tranches | item | 2 | 2 | ||||||
Cancelled (in shares) | shares | 2 | |||||||
Performance shares, vesting based on TSR | ||||||||
Share-based compensation | ||||||||
Percentage of share-based compensation award | 50% | 50% | ||||||
Performance shares, vesting based on Adjusted ROIC | ||||||||
Share-based compensation | ||||||||
Percentage of share-based compensation award | 50% | 50% | ||||||
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% | |||||||
2022 Awards | Performance Shares | ||||||||
Share-based compensation | ||||||||
Granted (in shares) | shares | 86 | |||||||
Weighted-average fair value per share, Granted (in dollars per share) | $ / shares | $ 138.85 | |||||||
Unrecognized compensation cost | $ | $ 11 | |||||||
Remaining requisite service period (in years) | 1 year 10 months 24 days | |||||||
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% | |||||||
2022 Awards | Performance shares, vesting based on TSR | Maximum | ||||||||
Share-based compensation | ||||||||
Performance shares available for vesting (as a percent) | 200% | |||||||
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% | |||||||
2022 Awards | Performance shares, vesting based on Adjusted ROIC | Maximum | ||||||||
Share-based compensation | ||||||||
Performance shares available for vesting (as a percent) | 200% |
Equity - AOCL (Details)
Equity - AOCL (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | $ 3,100 | |
Balance at the end of the period | 3,066 | |
Cumulative Translation Adjustment | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | (903) | $ (1,114) |
Other comprehensive gain (loss) before reclassification adjustments | (195) | (85) |
(Gain) reclassified from accumulated OCL | 311 | |
Net other comprehensive (loss) income | (195) | 226 |
Balance at the end of the period | (1,098) | (888) |
Hedging Activities | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | 48 | 42 |
Other comprehensive gain (loss) before reclassification adjustments | 254 | 211 |
(Gain) reclassified from accumulated OCL | (201) | (170) |
Tax (provision) benefit | (14) | (11) |
Net other comprehensive (loss) income | 39 | 30 |
Balance at the end of the period | 87 | 72 |
Pension and Postretirement Adjustment | ||
Accumulated Other Comprehensive Loss | ||
Balance at the beginning of the period | (42) | (61) |
(Gain) reclassified from accumulated OCL | 1 | |
Net other comprehensive (loss) income | 1 | |
Balance at the end of the period | (41) | (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 | 59 | 126 |
(Gain) reclassified from accumulated OCL | (200) | 141 |
Tax (provision) benefit | (14) | (11) |
Net other comprehensive (loss) income | (155) | 256 |
Balance at the end of the period | $ (1,052) | $ (877) |
Equity - Statements of Equity w
Equity - Statements of Equity with dividends per share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Balance at beginning of period | $ 3,118 | $ 3,118 | ||||||
Balance at end of period | $ 3,080 | 3,080 | ||||||
Dividends declared, common stock (in dollars per share) | $ 0.71 | $ 0.65 | $ 0.65 | $ 0.65 | $ 0.64 | $ 0.64 | ||
Common Stock | ||||||||
Balance at beginning of period | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | 1 | $ 1 |
Balance at end of period | 1 | 1 | 1 | 1 | 1 | 1 | 1 | 1 |
Additional Paid-in Capital | ||||||||
Balance at beginning of period | 1,133 | 1,160 | 1,158 | 1,154 | 1,155 | 1,150 | 1,158 | 1,150 |
Share-based compensation, net of issuance | 2 | 2 | 1 | (1) | 5 | 4 | 5 | |
Fair market value adjustment to non-controlling interests | (29) | (29) | ||||||
Balance at end of period | 1,133 | 1,133 | 1,160 | 1,155 | 1,154 | 1,155 | 1,133 | 1,155 |
Treasury Stock, Common | ||||||||
Balance at beginning of period | (1,133) | (1,091) | (1,061) | (1,029) | (1,022) | (1,024) | (1,061) | (1,024) |
Repurchases of common stock | (29) | (44) | (39) | (44) | (10) | (14) | (112) | (68) |
Share-based compensation, net of issuance | 3 | 2 | 9 | 1 | 3 | 16 | 14 | 20 |
Balance at end of period | (1,159) | (1,133) | (1,091) | (1,072) | (1,029) | (1,022) | (1,159) | (1,072) |
Accumulated Other Comprehensive Income (Loss) | ||||||||
Balance at beginning of period | (940) | (763) | (897) | (1,106) | (1,164) | (1,133) | (897) | (1,133) |
Other comprehensive income (loss) | (112) | (177) | 134 | 229 | 58 | (31) | (155) | 256 |
Balance at end of period | (1,052) | (940) | (763) | (877) | (1,106) | (1,164) | (1,052) | (877) |
Retained Earnings | ||||||||
Balance at beginning of period | 4,085 | 3,986 | 3,899 | 3,802 | 3,667 | 3,957 | 3,899 | 3,957 |
Net income (loss) | 106 | 142 | 130 | 118 | 178 | (246) | 378 | 50 |
Dividends declared, common stock | (48) | (43) | (43) | (43) | (43) | (44) | (134) | (130) |
Balance at end of period | 4,143 | 4,085 | 3,986 | 3,877 | 3,802 | 3,667 | 4,143 | 3,877 |
Noncontrolling Interest | ||||||||
Balance at beginning of period | 15 | 19 | 18 | 22 | 26 | 21 | 18 | 21 |
Net income (loss) | 2 | 2 | 3 | 3 | 3 | 4 | 7 | 10 |
Dividends declared, common stock | (4) | (3) | (7) | (4) | (10) | |||
Other comprehensive income (loss) | (3) | (2) | (2) | (3) | 1 | (7) | (2) | |
Balance at end of period | $ 14 | $ 15 | $ 19 | $ 19 | $ 22 | $ 26 | $ 14 | $ 19 |
Equity - Statements of Redeemab
Equity - Statements of Redeemable Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Increase (Decrease) in Temporary Equity | ||||||||
Share-based Payments Subject to Redemption, Beginning Balance | $ 37 | $ 31 | $ 36 | $ 28 | $ 21 | $ 30 | $ 36 | $ 30 |
Share-based compensation, net of issuance | 6 | 6 | (5) | 4 | 7 | (9) | 7 | 2 |
Share-based Payments Subject to Redemption, Ending Balance | 43 | 37 | 31 | 32 | 28 | 21 | 43 | 32 |
Redeemable Non-Controlling Interests, Beginning Balance | 70 | 71 | 71 | 70 | 70 | 70 | 71 | 70 |
Net income (loss) attributable to non-controlling interests | 1 | 1 | (2) | (1) | 2 | (3) | ||
Fair market value adjustment to non-controlling interests | 29 | 29 | ||||||
Non-controlling interest purchases | (13) | (27) | (40) | |||||
Other comprehensive income (loss) | (2) | (4) | 1 | (6) | 1 | |||
Redeemable Non-Controlling Interests, Ending Balance | $ 56 | $ 70 | $ 71 | $ 68 | $ 70 | $ 70 | $ 56 | $ 68 |
Equity - EPS (Details)
Equity - EPS (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Basic EPS: | ||||
Net Income Available to Ingredion - basic | $ 106 | $ 118 | $ 378 | $ 50 |
Weighted average number of shares outstanding, basic | 65.8 | 67 | 66.4 | 67.2 |
Basic earnings per common share of Ingredion (in dollars per share) | $ 1.61 | $ 1.76 | $ 5.69 | $ 0.74 |
Effect of Dilutive Securities: | ||||
Incremental shares from assumed exercise of dilutive stock options and vesting of dilutive RSUs and other awards | 0.8 | 0.6 | 0.7 | 0.6 |
Diluted EPS: | ||||
Net Income Available to Ingredion - diluted | $ 106 | $ 118 | $ 378 | $ 50 |
Weighted average number of shares outstanding - diluted, Total | 66.6 | 67.6 | 67.1 | 67.8 |
Diluted earnings per common share of Ingredion (in dollars per share) | $ 1.59 | $ 1.75 | $ 5.63 | $ 0.74 |
Antidilutive securities excluded in calculation of diluted EPS: | ||||
Antidilutive securities excluded from computation of earnings per share amount | 1.6 | 1.6 | 1.4 | 1.5 |
Segment Information - Net sales
Segment Information - Net sales (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Segment information | ||||
Total net sales | $ 2,023 | $ 1,763 | $ 5,959 | $ 5,139 |
Operating income Subtotal | 191 | 163 | 619 | 572 |
Acquisition/integration costs | (3) | (1) | (1) | |
Restructuring/impairment charges and related adjustments | (8) | (4) | (22) | |
Impairment on assets held for sale | 20 | (340) | ||
Other matters | (9) | (9) | 15 | |
Operating income | 182 | 172 | 605 | 224 |
North America Segment | ||||
Segment information | ||||
Total net sales | 1,262 | 1,083 | 3,720 | 3,096 |
South America Segment | ||||
Segment information | ||||
Total net sales | 293 | 260 | 835 | 801 |
Asia Pacific Segment | ||||
Segment information | ||||
Total net sales | 278 | 245 | 825 | 728 |
EMEA Segment | ||||
Segment information | ||||
Total net sales | 190 | 175 | 579 | 514 |
Operating Segments | North America Segment | ||||
Segment information | ||||
Operating income Subtotal | 126 | 120 | 443 | 403 |
Operating Segments | South America Segment | ||||
Segment information | ||||
Operating income Subtotal | 48 | 35 | 125 | 108 |
Operating Segments | Asia Pacific Segment | ||||
Segment information | ||||
Operating income Subtotal | 27 | 21 | 70 | 70 |
Operating Segments | EMEA Segment | ||||
Segment information | ||||
Operating income Subtotal | 30 | 23 | 90 | 86 |
Corporate, Non-Segment | ||||
Segment information | ||||
Operating income Subtotal | $ (40) | $ (36) | $ (109) | $ (95) |
Segment Information - Assets (D
Segment Information - Assets (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Segment information | ||
Total assets | $ 7,403 | $ 6,999 |
North America Segment | ||
Segment information | ||
Total assets | 4,576 | 4,203 |
South America Segment | ||
Segment information | ||
Total assets | 892 | 799 |
Asia Pacific Segment | ||
Segment information | ||
Total assets | 1,340 | 1,403 |
EMEA Segment | ||
Segment information | ||
Total assets | $ 595 | $ 594 |
Supplementary Information - Acc
Supplementary Information - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Supplementary Information | ||
Accounts receivable - trade | $ 1,170 | $ 950 |
Accounts receivable - other | 253 | 193 |
Allowance for credit losses | (17) | (13) |
Total accounts receivable | $ 1,406 | $ 1,130 |
Supplementary Information - Inv
Supplementary Information - Inventories (Details) - USD ($) $ in Millions | Sep. 30, 2022 | Dec. 31, 2021 |
Supplementary Information | ||
Finished and in process | $ 895 | $ 688 |
Raw materials | 517 | 380 |
Manufacturing supplies and other | 88 | 104 |
Total inventories | $ 1,500 | $ 1,172 |