Select a U.S.-based multinational company which has filed an annual report (Form 10-K) within the last year through the SEC’s EDGAR system. Only one group member may select a specific company. Do not

Develop Your Skills

RESEARCH CASE—INTERNATIONAL FLAVORS AND FRAGRANCES 

Many companies make annual reports available on their corporate web page, often under an Investors tab. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Type, search for 10-K). 

Access the most recent annual report for International Flavors and Fragrances (IFF) to complete the following requirements.

Required

1. Identify the location(s) in the annual report where IFF provides disclosures related to its management of foreign exchange risk.

2. Determine the types of hedging instruments the company uses and the types of hedges in which it engages.

3. Determine the manner in which the company discloses the fact that its foreign exchange hedges are effective in offsetting gains and losses on the underlying items being hedged.