Exhibit 99.4
Unaudited Pro Forma Consolidated Statements of Income
2000
(Dollars in thousands)
Pro Pro
Historical Forma Forma
1st Quarter Ended 3/31/00 IFF (1) BBA (2) Adjustments Combined
- ------------------------- -------------- ------------- ------------- -----------
Net sales $ 369,912 $117,341 $ (1,435)(3) $ 485,818
-------------- ------------- -------------- -------------
Cost of goods sold (8) 204,677 74,905 (1,496)(4) 278,086
Research and development expenses 26,812 7,105 33,917
Selling and administrative expenses (8) 61,749 24,430 86,179
Nonrecurring charges 9,354 - 9,354
Interest expense 2,137 536 16,250 (5) 18,923
Amortization - - 10,548 (6) 10,548
Other (income) expense, net (329) 653 324
-------------- ------------- -------------- -------------
304,400 107,629 25,302 437,331
-------------- ------------- -------------- -------------
Income before taxes on income 65,512 9,712 (26,737) 48,487
Taxes on income 21,736 3,691 (6,664)(7) 18,763
-------------- ------------- -------------- -------------
Net income $ 43,776 $ 6,021 $ (20,073) $ 29,724
============== ============= ============== =============
Pro Pro
Historical Forma Forma
2nd Quarter Ended 6/30/00 IFF (1) BBA (2) Adjustments Combined
- ------------------------- -------------- ------------- --------------- ---------------
Net sales $ 368,759 $123,565 $ (1,435)(3) $ 490,889
-------------- ------------- -------------- -------------
Cost of goods sold (8) 203,562 79,583 (1,496)(4) 281,649
Research and development expenses 26,945 6,886 33,831
Selling and administrative expenses (8) 61,754 24,435 86,189
Nonrecurring charges - - -
Interest expense 3,074 465 16,250 (5) 19,789
Amortization - - 10,548 (6) 10,548
Other (income) expense, net 203 614 817
-------------- ------------- -------------- -------------
295,538 111,983 25,302 432,823
-------------- ------------- -------------- -------------
Income before taxes on income 73,221 11,582 (26,737) 58,066
Taxes on income 24,305 4,401 (6,664)(7) 22,042
-------------- ------------- -------------- -------------
Net income $ 48,916 $ 7,181 $ (20,073) $ 36,024
============== ============= ============== =============
Unaudited Pro Forma Consolidated Statements of Income
2000
(Dollars in thousands)
Pro Pro
Historical Forma Forma
3rd Quarter Ended 9/30/00 IFF (1) BBA (2) Adjustments Combined
- ------------------------- -------------- ------------- ----------------- --------------
Net sales $ 339,591 $121,648 $ (1,435)(3) $ 459,804
-------------- ------------- -------------- -------------
Cost of goods sold (8) 191,499 78,018 (1,496)(4) 268,021
Research and development expenses 28,666 6,769 35,435
Selling and administrative expenses (8) 62,181 22,519 84,700
Nonrecurring charges 7,685 - 7,685
Interest expense 4,195 433 16,250 (5) 20,878
Amortization - - 10,548 (6) 10,548
Other (income) expense, net 2,614 (1,380) 1,234
-------------- ------------- -------------- -------------
296,840 106,359 25,302 428,501
-------------- ------------- -------------- -------------
Income before taxes on income 42,751 15,289 (26,737) 31,303
Taxes on income 13,824 5,088 (6,664)(7) 12,248
-------------- ------------- -------------- -------------
Net income $ 28,927 $ 10,201 $ (20,073) $ 19,055
============== ============= ============== =============
Pro Pro
Historical Forma Forma
4th Quarter Ended 12/31/00 IFF (1) BBA (2) Adjustments Combined
- -------------------------- -------------- ------------- ---------------- ---------------
Net sales $ 384,533 $ 60,212 $ (644)(3) $ 444,101
-------------- ------------- -------------- -------------
Cost of goods sold 231,915 39,178 (849)(4) 270,244
Research and development expenses 30,248 3,073 - 33,321
Selling and administrative expenses 72,969 9,605 - 82,574
Nonrecurring charges 24,234 - - 24,234
Interest expense 15,666 252 5,650 (5) 21,568
Amortization 7,032 - 3,519 (6) 10,551
Other (income) expense, net (174) (118) - (292)
-------------- ------------- -------------- -------------
381,890 51,990 8,320 442,200
-------------- ------------- -------------- -------------
Income before taxes on income 2,643 8,222 (8,964) 1,901
Taxes on income 1,257 3,255 (1,206)(7) 3,306
-------------- ------------- -------------- -------------
Net income $ 1,386 $ 4,967 $ (7,758) $ (1,405)
============== ============= ============== =============
Exhibit 99.5
Unaudited Pro Forma Consolidated Statements of Income
2000
(Dollars in thousands)
Pro Pro
Historical Forma Forma
Year Ended 12/31/00 IFF (1) BBA (2) Adjustments Combined
- ------------------- -------------- ------------- ---------------- ---------------
Net sales $1,462,795 $422,766 $ (4,949)(3) $1,880,612
-------------- ------------- -------------- -------------
Cost of goods sold 831,653 271,684 (5,337)(4) 1,098,000
Research and development expenses 112,671 23,833 136,504
Selling and administrative expenses 258,653 80,989 339,642
Nonrecurring charges 41,273 - 41,273
Interest expense 25,072 1,686 54,400 (5) 81,158
Amortization 7,032 - 35,163 (6) 42,195
Other (income) expense, net 2,314 (231) 2,083
-------------- ------------- -------------- -------------
1,278,668 377,961 84,226 1,740,855
-------------- ------------- -------------- -------------
Income before taxes on income 184,127 44,805 (89,175) 139,757
Taxes on income 61,122 16,435 (21,198)(7) 56,359
-------------- ------------- -------------- -------------
Net income $ 123,005 $ 28,370 $ (67,977) $ 83,398
============== ============= ============== =============
Notes to Unaudited Pro Forma Consolidated Statements of Income:
(1) IFF acquired Bush Boake Allen ("BBA"), effective November 3, 2000,
and the BBA operating results are included in IFF's consolidated
results from that date.
(2) BBA results from the beginning of the year to November 3, 2000, the
date of acquisition, are included in the respective periods.
(3) To eliminate intercompany sales between IFF and BBA for the period
from the beginning of the year to November 3, 2000, the date of
acquisition. For purposes of computing the individual quarter
eliminations, the full year amount was allocated on a pro rata
basis. Post-acquisition, intercompany sales are eliminated in
arriving at the IFF historical results.
(4) To eliminate cost of goods sold relating to intercompany sales and
account for related estimated profit that remains in inventory. For
purposes of computing the individual quarter eliminations, the full
year amount was allocated on a pro rata basis.
(5) To reflect the recognition of incremental interest expense on
additional borrowings of approximately $970.0 million, equal to the
cash consideration exchanged in the acquisition. Interest expense
was calculated using an average interest rate of 6.7%. The interest
rate reflects IFF's average borrowing rate during the year.
(6) To reflect the amortization of goodwill and other intangibles
resulting from the preliminary allocation of the excess of
consideration over the net assets of BBA. Other intangible assets
include patents, trademarks and other intellectual property owned or
developed by BBA, the value of which is being amortized over periods
ranging from 10 to 20 years. Under current accounting rules, IFF
would expect the amount of excess consideration allocated to
goodwill to be amortized over 20 years. In December 2000, the
Financial Accounting Standards Board (FASB) reached a tentative
decision to use the nonamortization approach to account for
purchased goodwill. Under the revised proposal, goodwill would not
be amortized annually, but instead would be reviewed for impairment
and written down (expensed against earnings) when the carrying value
of the goodwill exceeds its fair value. The final standard has not
been issued and the proposed approach may change.
(7) To reflect the tax effect, as appropriate, of the pro forma adjustments.
(8) Reflects the reclassification of shipping and handling costs from
Selling expense to Cost of goods sold in accordance with guidance
established by Emerging Issues Task Force No. 00-10, "Accounting for
Shipping and Handling Fees and Costs." This change in classification
was made by IFF in the 4th quarter 2000 and does not affect the
reported BBA historical amounts.