International Flavors reaches tax deal with Spain
International Flavors & Fragrances Inc. said Thursday that it agreed to a tax settlement with Spanish authorities that calls for it to pay about $106 million by the end of the year.
The settlement concerns income tax deductions taken by its Spanish subsidiaries for the fiscal years 2004 through 2010.
Still unresolved are Spanish tax authorities' challenges to similar tax deductions taken in the 2002 and 2003 fiscal years.
As a result of the settlement, the company said it will record a charge of $58.5 million, or 71 cents per share, in the third quarter. It also will take an additional charge of $13.9 million, or 17 cents per share, for uncertainty about its taxes from 2002-03.
The New York company makes flavors and fragrances for an array of consumer products,
Shares fell 90 cents to $54.64 in midday trading.