Unrecognized tax benefits, including interest

  
At December 31, 2021, 2020 and 2019, there were approximately $130 million, $98 million and $74 million, respectively, of unrecognized tax benefits recorded to Other liabilities and less than $1 million recorded to Other current liabilities for 2021 and approximately $1 million recorded to Other current liabilities for both 2020 and 2019. If these unrecognized tax benefits were recognized, all the benefits and related interest and penalties would be recorded as a benefit to income tax expense.For the year ended December 31, 2021, the Company increased its liabilities for interest and penalties by approximately $19 million, net, increased its liabilities for interest and penalties by approximately $3 million, net for the year ended 2020, and increased its liabilities for interest and penalties by approximately $11 million, net for the year ended 2019. At December 31, 2021, 2020 and 2019, the Company had accrued approximately $36 million, $17 million and $14 million, respectively, of interest and penalties classified as Other liabilities, and less than $1 million to Other current liabilities for December 31, 2021 and 2020. No such liabilities were accrued for the year ended December 31, 2019.As of December 31, 2021, the Company’s aggregate provision for unrecognized tax benefits, including interest and penalties, was approximately $166 million, associated with various tax positions principally asserted in foreign jurisdictions, none of which were individually material.OtherTax benefits credited to Shareholders’ equity were de minimis for the years ended December 31, 2021, 2020 and 2019 associated with stock option exercises and PRSU dividends.The Company regularly repatriates earnings from non-U.S. subsidiaries. As the Company repatriates these funds to the U.S. they will be required to pay income taxes in certain U.S. states and applicable foreign withholding taxes during the period when such repatriation occurs. Accordingly, as of December 31, 2021, the Company had a deferred tax liability of approximately $81 million for the effect of repatriating the funds to the U.S., attributable to various non-U.S. subsidiaries. There is no deferred tax liability associated with non-U.S. subsidiaries where we intend to indefinitely reinvest the earnings to fund local operations and/or capital projects.The Company has ongoing income tax audits and legal proceedings which are at various stages of administrative or judicial review, of which the material items are discussed below. In addition, the Company has other ongoing tax audits and legal proceedings that relate to indirect taxes, such as value-added taxes, capital tax, sales and use and property taxes, which are discussed in Note 19.The Company also has several other tax audits in process and has open tax years with various taxing jurisdictions that range primarily from 2011 to 2020. Based on currently available information, the Company does not believe the ultimate outcome of any of these tax audits and other tax positions related to open tax years, when finalized, will have a material impact on its financial position.  
NOTE 11.    NET INCOME PER SHAREBasic and diluted net income per share is based on the weighted average number of shares outstanding. A reconciliation of shares used in the computation of basic and diluted net income per share is as follows:

|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|  | December 31, |
| (AMOUNTS IN MILLIONS EXCEPT PER SHARE AMOUNTS) | 2021 |  | 2020 |  | 2019 |
| Net Income |  |  |  |  |  |
| Net income attributable to IFF stockholders | $ | 270  |  |  | $ | 363  |  |  | $ | 456  |  |
| Adjustment related to (increase) decrease in redemption value of redeemable noncontrolling interests in excess of earnings allocated | (2) |  |  | 2  |  |  | (2) |  |
| Net income available to IFF stockholders | $ | 268  |  |  | $ | 365  |  |  | $ | 454  |  |
| Shares |  |  |  |  |  |
| Weighted average common shares outstanding (basic)(1) | 243  |  |  | 112  |  |  | 112  |  |
| Adjustment for assumed dilution(2): |  |  |  |  |  |
| Stock options and restricted stock awards | —  |  |  | 1  |  |  | —  |  |
| SPC portion of the TEUs | —  |  |  | 1  |  |  | 1  |  |
| Weighted average shares assuming dilution (diluted) | 243  |  |  | 114  |  |  | 113  |  |
| Net Income per Share |  |  |  |  |  |
| Net income per share - basic(3)(4) | $ | 1.11  |  |  | $ | 3.25  |  |  | $ | 4.05  |  |
| Net income per share - dilutive(4)(5) | 1.10  |  |  | 3.21  |  |  | 4.00  |  |

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