- 2021 年第一季度報告和調整後的每股收益*分別為 (3.66) 美元和 1.85 美元，而 2020 年第一季度報告和調整後的每股收益分別為 1.11 美元和 1.59 美元。調整後的每股收益雙位數增長反映了公司各地區專業成份的發展趨勢和強勁的執行能力。
- 與 Arcor 合資企業公告相關，報告的業績反映出銷售減損費用為 3.6 億美元，其中包括 3.11 億美元的累計轉換損失。
- 公司預計，由於銷量回升和專業增長，與 2020 年第二季度相比，2021 年第二季度的淨銷售額和營業收入將大幅增長。
伊利諾伊州威斯特徹斯特郡, May 10, 2021 (GLOBE NEWSWIRE) -- 全球領先的食品及飲品製造業成分解決方案供應商 Ingredion Incorporated (NYSE: INGR) 今天宣佈 2021 年第一季度的業績。該結果根據 2021 年及 2020 年美國公認會計原則（「GAAP」）報告，包括從公司提供的非公認會計 (non-GAAP) 原則財務指標中排除的項目。
Ingredion 主席兼行政總裁 Jim Zallie 說：「我們成功交出了優秀的第一季度業績，當中淨銷售額及調整後的營業收入均顯著增長，是公司自 2018 年以來表現最好的季度。所有四個地區的營業收入均有所增長，而我們的業績反映出南美洲與亞太地區的強勁表現。」
Zallie 補充道：「我們繼續執行Driving Growth Roadmap（推動增長路線圖），因獲得亞太區和南美洲的雙位數增長所支持，而推動專業成分的增長。由於我們對擴大消費者首選專業產品那份堅定不移的決心，我們的減糖銷售額與去年相比增長了超過 200％。此外，我們最近透過收購 KaTech 來擴大我們的食品系統平台，而該公司是創新的定制成份供應商，可增強口感並提供穩定性。KaTech 增加了歐洲的樞紐，以補充我們現有的美國和亞洲食品系統的運營。」
Zallie 總結說：「我們正透過強大的客戶合作夥伴關係及強效的項目管道積極進行新的產品開發，以滿足不斷增長的消費者需求。我們仍然專於透過客戶共同創造來提供消費者喜愛的新品。當我們重新構想員工的工作未來時，是以客戶中心、速度與靈敏性定為目標。」
*調整後攤薄每股收益（「調整後每股收益」）、調整後營業收入、調整後有效所得稅率及已發行調整後稀釋後加權平均普通股均為非公認會計原則財務指標。在本新聞稿中包含的簡明綜合財務報表後，參閱名為「非公認會計準則資訊」的補充財務資訊第二部分，以將這些非 GAAP 財務指標與最直接可比的 GAAP 指標進行對賬。
每股攤薄收益 (EPS)
| 1Q20 | 1Q21 | ||
| Reported EPS | $1.11 | $(3.66) | |
| Restructuring/Impairment Costs | $0.16 | $0.12 | |
| Acquisition/Integration Costs | - | $0.01 | |
| Impairment*** | - | $5.35 | |
| Tax Items | $0.32 | $0.05 | |
| Diluted share impact | - | $(0.02) | |
| Adjusted EPS** | $1.59 | $1.85 | |
影響報告及調整後 EPS 變化的估計因素
| 1Q21 | |
| Margin | 0.33 |
| Volume | (0.02) |
| Foreign exchange | 0.01 |
| Other income | 0.04 |
| Total operating items | 0.36 |
| Other non-operating income | - |
| Financing costs | (0.01) |
| Non-controlling interests | (0.01) |
| Shares outstanding | (0.01) |
| Tax rate | (0.07) |
| Total non-operating items | (0.10) |
| Total items affecting EPS** | 0.26 |
**由於四捨五入的原因，總數可能不足
*** 與 Arcor 合資企業公告相關，報告的業績反映出銷售減損費用為 3.6 億美元，其中包括 3.11 億美元的累計轉換損失。
財政摘要
- 截至 2021 年 3 月 31 日，債務及現金包括短期投資總額分別為 22 億美元及 5.77 億美元，與 2020 年 3 月 31 日相比分別為 22 億美元及 6.65 億美元。
- 第一季度淨融資成本為 1,900 萬美元，比去年同期高 100 萬美元。增長的主要原因是資本化利息與去年相比下有所下降。
- 本季度報告及，調整後的有效稅率分別為 (29.3)％ 及 29.5％，與去年同期相比分別為 42.6％ 及 26.0％。報告稅率的下降主要是由於與阿根廷 Arcor 合資企業相關的減損費用影響。
- 第一季度的資本支出為 6,300 萬美元，比去年同期減少了 3,500 萬美元。
業務評述
所有 Ingredion
| $ in millions | 2020 Net Sales | FX Impact | Volume | Price mix | 2021 Net Sales | % change | % change excl. FX | ||
| First Quarter | 1,543 | 1 | -16 | 86 | 1,614 | 5% | 5% | ||
報告的營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | Acquisition/ Integration | Restructuring/ Impairment | 2021 | % change | % change excl. FX | ||
| First Quarter | 153 | - | 34 | -1 | -356 | -170 | -211% | -211% | ||
調整後的營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | 2021 | % change | % change excl. FX | ||
| First Quarter | 167 | - | 34 | 201 | 20% | 20% | ||
淨銷售額
- 第一季度的淨銷售額比去年同期上升。增長的原因是強勁的價格組合，包括轉嫁更高的粟米成本，其中納入 PureCircle 的業績，以及亞太區的專業銷量增長。排除匯率影響，季度淨營業額上升了 5%。
營業收入
- 本季度報告及調整後營業（損失）收入分別為 (1.7) 億美元及 2.01 億美元，與去年同期相比分別下降了 211% 及上升了 20%。報告的營業收入減少主要是由於與阿根廷 Arcor 合資企業相關的持有的銷售減損費用。調整後營業收入的增長原因是受到南美有利的價格結構及北美淨粟米成本降低所推動。排除匯率影響後，報告及調整後的營業收入分別比去年同期下降了 211% 和上升了 20%。
- 第一季度報告的營業收入比調整後的營業收入減少了 3.71 億美元，主要是由於與阿根廷 Arcor 合資企業相關的持有的銷售減損費用。
北美洲
淨銷售額
| $ in millions | 2020 Net Sales | FX Impact | Volume | Price mix | 2021 Net Sales | % change | % change excl. FX | ||
| First Quarter | 963 | 6 | -55 | 31 | 945 | -2% | -3% | ||
- 停止生產乙醇表示該季度的淨銷售額減少約 1,300 萬美元。
部門營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | 2021 | % change | % change excl. FX | ||
| First Quarter | 125 | 1 | 8 | 134 | 7% | 6% | ||
- 第一季度營業收入為 1.34 億美元，比去年同期上升了 900 萬美元。增長的原因是淨粟米成本降低和有利的價格組合。
南美
淨銷售額
| $ in millions | 2020 Net Sales | FX Impact | Volume | Price mix | 2021 Net Sales | % change | % change excl. FX | ||
| First Quarter | 237 | -23 | 10 | 49 | 273 | 15% | 25% | ||
部門營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | 2021 | % change | % change excl. FX | ||
| First Quarter | 26 | -3 | 17 | 40 | 54% | 65% | ||
- 第一季度營業收入為 4,000 萬美元，比去年同期上升了 1,400 萬美元。增長的主要原因是強勁的價格組合和有利的淨粟米。排除匯率影響後，界別的營業收入增長 65%。
亞太區
淨銷售額
| $ in millions | 2020 Net Sales | FX Impact | Volume | Price mix | 2021 Net Sales | % change | % change excl. FX | ||
| First Quarter | 189 | 11 | 34 | 1 | 235 | 24% | 18% | ||
部門營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | 2021 | % change | % change excl. FX | ||
| First Quarter | 20 | 1 | 4 | 25 | 25% | 20% | ||
- 第一季度的營業收入為 2,500 萬美元，比去年同期上升了 500 萬美元，帶動原因是韓國和中國從去年的疫情影響中復蘇。
歐洲、中東及非洲 (EMEA)
淨銷售額
| $ in millions | 2020 Net Sales | FX Impact | Volume | Price mix | 2021 Net Sales | % change | % change excl. FX | ||
| First Quarter | 154 | 7 | -5 | 5 | 161 | 5% | 0% | ||
部門營業收入
| $ in millions | 2020 | FX Impact | Business Drivers | 2021 | % change | % change excl. FX | ||
| First Quarter | 27 | 1 | 3 | 31 | 15% | 10% | ||
- 第一季度營業收入為 3,100 萬美元，比去年同期增長了 400 萬美元。增長的主要原因是巴基斯坦有利的價格結構和較低的原材料成本。
股息和股票回購
在 2021 年 3 月，公司宣佈季度股息每股 0.64 美元，總計 4,400 萬美元。在本季度，公司回購了 1,400 萬美元的已發行普通股。
2021 年第二季度前景及全年展望
在第二季度，與去年同期相比，公司預計淨銷售額將增長 20% 至 30%，營業收入的增長將略勝於淨銷售額的增長。
鑑於預期的上半年業績，公司預計，由於粟米成本上升、強勁的價格組合和銷量回升的推動，全年的淨銷售額將達到雙位數增長。就全年度而言，公司預計在專業成分增長、其他產量回升及 Cost Smart 節省的推動下，調整後的營業收入將達到中段個位數增長，部分被下半年預計的粟米成本上漲所抵消。由於環境持續不確定，公司目前無法提供 2021 年全年 EPS 及營運現金流的指引。
預計全年的企業成本將持平。公司預計報告的有效稅率為 70% 至 75%，調整後的有效稅率為 28.4% 至 29.0%。隨著 Arcor 合資企業的預期結束，公司預計將在今年下半年更新南美洲分部的業績、融資成本與稅率報告。
資本投資承諾預計在 3.3 億美元至 3.5 億美元之間。
電話會議及網絡直播詳情
Ingredion 將於 2021 年 5 月 4 日（星期二）上午 8 時（中部時間）舉行電話會議， 由主席兼行政總裁 Jim Zallie 及執行副主席兼財務總監 James Gray 主持。電話會議將實時進行網絡直播，並可在 https://ir.ingredionincorporated.com/events-and-presentations 存取。電話會議將包括報告陳述，可在電話會議開始前幾個小時透過公司網站登入。網絡廣播的重播將在有限的時間內在 https://ir.ingredionincorporated.com/financial-information/quarterly-results 提供。
關於公司
Ingredion Incorporated (NYSE: INGR) 是全球領先的原料成分解決方案供應商，為 120 多個國家的客戶提供服務。該公司 2020 年的淨銷售額為 60 億美元，將穀物、水果、蔬菜及其他植物性原料轉變為食品、飲品、動物營養、釀造及工業市場的增值原料成分解決方案。透過 Ingredion 的 Idea Labs®、公司遍佈全球的創新中心及約 12,000 名員工，公司與客戶共同創造並實現了將人、自然及技術的潛力融合在一起以改善生活為目標。瀏覽 ingredion.com 以了解更多資訊及公司的最新消息。
前瞻性聲明
本新聞稿可能包含《1933 年證券法》（修訂版）第 27A 節及《1934 年證券交易法》（修訂版）第 21E 節所規定的前瞻性聲明。本公司擬將這些前瞻性聲明納入此類聲明的安全港原則。
前瞻性聲明包括（其中包括）有關本公司未來前景或財務狀況、淨銷售額、營業收入、銷量、營運成本、稅率、資本開支、開支或其他財務項目的任何陳述、與公司前景或未來的營運，包括管理層的計劃或策略及目標，以及任何基於上述各項的假設、預期或信念。
這些聲明有時可透過使用前瞻性詞語來識別，例如「可」、「將」、「應」、「預計」、「假設」、「相信」、「計劃」、「預料」、「估計」、「期望」、「意圖」、「繼續」、「備考」、「預測」、「展望」、「前景」、「機會」、「潛在」、「臨時」、或其他類似的表達方式或其反面用法。除本新聞稿中的歷史事實聲明或本新聞稿中提及或併入的所有其他聲明均為「前瞻性聲明」。
這些聲明基於當前的情況或期望，但受某些固有風險及，不確定因素的影響，其中許多風險及，不確定因素很難預測並且超出我們的控制範圍。雖然我們認為這些前瞻性聲明中反映我們的預期是基於合理假設的，但我們提醒投資者，我們不能保證預期將會是正確的。
由於各種因素，實際結果及發展可能與這些聲明表達或暗示的預期存在重大差異，其中包括：2019 冠狀病毒病對我們產品需求和財務結果的影響；消費偏好及觀念的變化，包括與高果糖粟米糖漿和我們生產的其他產品有關的偏好；全球經濟狀況以及影響我們購買原材料或製造或出售產品的各個地理區域和國家／地區的客戶及消費者的總體政治、經濟、商業及市場條件的影響，尤其是經濟、南美的貨幣及政治狀況以及歐洲的經濟及政治狀況，以及這些因素可能對我們的銷售量、產品定價，以及我們從客戶收取應收款的能力產生影響；我們服務的主要行業之未來財務業績，並從中獲得很大部分營業額，包括但不限於食品、飲品、動物營養廠及釀造行業；透過基因改造和生物技術開發產品的可接受性之不確定性；我們以足以獲得市場認可的價格或質量開發或獲取新產品和服務的能力；粟米提煉行業及相關行業的競爭壓力和／或客戶壓力增加，包括在我們的主要產品和我們的副產品（尤其是粟米油）的市場和價格方面；原材料的可用性，包括馬鈴薯澱粉、木薯澱粉、阿拉伯樹膠及我們某些建基於特定粟米品種的產品，以及我們將粟米或其他原材料的潛在成本轉嫁給客戶的能力；能源成本及可用性，包括巴基斯坦的能源問題；我們控制成本、達成預算並實現預期協同作用的能力，包括我們按時、按預算完成計劃中的維護和投資項目的能力，並根據我們在 Cost Smart 計劃下實現預期的節省以及在貨運和運輸方面實現預期的節省的能力；金融和資本市場的行為，包括由於外幣波動、利率和匯率波動以及市場變化，以及對沖此類波動而產生相關風險的結果；我們具有以優惠條件成功確定並完成收購或策略聯盟的能力，以及我們成功整合所收購業務或實施和維持策略聯盟並在上述所有方面實現預期協同作用的能力；我們製造工廠的運作困難；減值準備對我們的商譽或長期資產的影響；我們稅率的變動或其他所得稅負債的承擔；我們維持令人滿意的勞資關係之能力；自然災害、戰爭或類似的敵對行為、威脅或恐怖主義行為、像 2019 冠狀病毒病等疫情的爆發或延續，或我們無法控制的其他重大事件的發生對我們業務的影響；政府政策、法律或法規的變化以及法律合規成本，包括對環境法規的合規性；氣候變化的潛在影響；有關資訊技術系統、程序和網站的安全漏洞；我們以合理利率籌集資金的能力及其他影響我們獲得足夠資金用於未來增長和擴展業務的因素；股票市場的動盪以及其他可能對我們的股價產生不利影響的因素；影響我們繼續執行股息政策的風險；以及我們及時糾正我們財務報告內部控制重大缺陷的能力。
我們的前瞻性聲明僅代表截止日期，我們沒有義務更新任何前瞻性聲明，以反映新聲明或未來事件後聲明日期後的事件或情況或發展。如果我們更新或更正其中的一個或多個聲明，投資者及，其他人不應該斷定我們將進行額外的更新或更正。有關這些風險和其他風險的進一步說明，請參閱我們截至 2020 年 12 月 31 日的 10-K 表年度報告中的「風險因素」和其他信息以及我們隨後的 10-Q 和 8-K 表格報告。
聯絡人：
投資者：Tiffany Willis｜電話：708-551-2592
／ 傳媒： Becca Hary｜電話：708-551-2602
| Ingredion Incorporated ("Ingredion") | ||||||||||||
| Condensed Consolidated Statements of (Loss) Income | ||||||||||||
| (Unaudited) | ||||||||||||
| (in millions, except per share amounts) | Three Months Ended March 31, | Change % | ||||||||||
| 2021 | 2020 | |||||||||||
| Net sales | $ | 1,614 | $ | 1,543 | 5 | % | ||||||
| Cost of sales | 1,263 | 1,220 | ||||||||||
| Gross profit | 351 | 323 | 9 | % | ||||||||
| Operating expenses | 153 | 154 | (1 | %) | ||||||||
| Other (income) expense, net | (2 | ) | 2 | |||||||||
| Restructuring/impairment charges | 370 | 14 | ||||||||||
| Operating (loss) income | (170 | ) | 153 | (211 | %) | |||||||
| Financing costs, net | 19 | 18 | ||||||||||
| Other, non-operating (income), net | (1 | ) | (1 | ) | ||||||||
| (Loss) income before income taxes | (188 | ) | 136 | (238 | %) | |||||||
| Provision for income taxes | 55 | 58 | ||||||||||
| Net (loss) income | (243 | ) | 78 | (412 | %) | |||||||
| Less: Net income attributable to non-controlling interests | 3 | 3 | ||||||||||
| Net (loss) income attributable to Ingredion | $ | (246 | ) | $ | 75 | (428 | %) | |||||
| Earnings per common share attributable to Ingredion | ||||||||||||
| common shareholders: | ||||||||||||
| Weighted average common shares outstanding: | ||||||||||||
| Basic | 67.3 | 67.1 | ||||||||||
| Diluted | 67.3 | 67.8 | ||||||||||
| Earnings per common share of Ingredion: | ||||||||||||
| Basic | ($3.66 | ) | $1.12 | (427 | %) | |||||||
| Diluted | ($3.66 | ) | $1.11 | (430 | %) | |||||||
| Ingredion Incorporated ("Ingredion") | ||||||||
| Condensed Consolidated Balance Sheets | ||||||||
| (in millions, except share and per share amounts) | March 31, 2021 | December 31, 2020 | ||||||
| (Unaudited) | ||||||||
| Assets | ||||||||
| Current assets | ||||||||
| Cash and cash equivalents | $ | 576 | $ | 665 | ||||
| Short-term investments | 1 | - | ||||||
| Accounts receivable – net | 1,025 | 1,011 | ||||||
| Inventories | 950 | 917 | ||||||
| Prepaid expenses | 58 | 54 | ||||||
| Total current assets | 2,610 | 2,647 | ||||||
| Property, plant and equipment – net | 2,355 | 2,455 | ||||||
| Goodwill | 899 | 902 | ||||||
| Other intangible assets – net | 437 | 444 | ||||||
| Operating lease assets | 182 | 173 | ||||||
| Deferred income tax assets | 24 | 23 | ||||||
| Other assets | 296 | 214 | ||||||
| Total assets | $ | 6,803 | $ | 6,858 | ||||
| Liabilities and equity | ||||||||
| Current liabilities | ||||||||
| Short-term borrowings | 448 | $ | 438 | |||||
| Accounts payable and accrued liabilities | 932 | 1,020 | ||||||
| Total current liabilities | 1,380 | 1,458 | ||||||
| Non-current liabilities | 219 | 227 | ||||||
| Long-term debt | 1,749 | 1,748 | ||||||
| Non-current operating lease liabilities | 145 | 136 | ||||||
| Deferred income tax liabilities | 219 | 217 | ||||||
| Liabilities held for sale | 337 | - | ||||||
| Total liabilities | 4,049 | 3,786 | ||||||
| Share-based payments subject to redemption | 21 | 30 | ||||||
| Redeemable non-controlling interests | 70 | 70 | ||||||
| Equity | ||||||||
| 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 shares issued at March 31, 2021 and December 31, 2020 | 1 | 1 | ||||||
| Additional paid-in capital | 1,155 | 1,150 | ||||||
| Less: Treasury stock (common stock; 10,737,015 and 10,795,346 shares at March 31, 2021 and December 31, 2020, respectively) at cost | (1,022 | ) | (1,024 | ) | ||||
| Accumulated other comprehensive loss | (1,164 | ) | (1,133 | ) | ||||
| Retained earnings | 3,667 | 3,957 | ||||||
| Total Ingredion stockholders' equity | 2,637 | 2,951 | ||||||
| Non-redeemable non-controlling interests | 26 | 21 | ||||||
| Total equity | 2,663 | 2,972 | ||||||
| Total liabilities and equity | $ | 6,803 | $ | 6,858 | ||||
| Ingredion Incorporated ("Ingredion") | ||||||||
| Condensed Consolidated Statements of Cash Flows | ||||||||
| (Unaudited) | ||||||||
| For the Three Months Ended March 31, | ||||||||
| (in millions) | 2021 | 2020 | ||||||
| Cash provided by operating activities: | ||||||||
| Net (loss) income | $ | (243 | ) | $ | 78 | |||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 52 | 54 | ||||||
| Mechanical stores expense | 14 | 13 | ||||||
| Deferred income taxes | (4 | ) | - | |||||
| Impairment charges related to Arcor joint venture held for sale classification | 360 | - | ||||||
| Margin accounts | (16 | ) | (20 | ) | ||||
| Changes in other trade working capital | (130 | ) | (85 | ) | ||||
| Other | (11 | ) | 25 | |||||
| Cash provided by operating activities | 22 | 65 | ||||||
| Cash used for investing activities: | ||||||||
| Capital expenditures and mechanical stores purchases, net proceeds on disposals | (63 | ) | (98 | ) | ||||
| Short-term investments | (1 | ) | 2 | |||||
| Cash used for investing activities | (64 | ) | (96 | ) | ||||
| Cash (used for) provided by financing activities: | ||||||||
| Proceeds from borrowings (payments on), net | 10 | 102 | ||||||
| Repurchases of common stock, net | (14 | ) | - | |||||
| Issuances of common stock for share-based compensation, net of settlements | 7 | 2 | ||||||
| Dividends paid, including to non-controlling interests | (43 | ) | (42 | ) | ||||
| Cash (used for) provided by financing activities | (40 | ) | 62 | |||||
| Effect of foreign exchange rate changes on cash | (7 | ) | (17 | ) | ||||
| (Decrease) increase in cash and cash equivalents | (89 | ) | 14 | |||||
| Cash and cash equivalents, beginning of period | 665 | 264 | ||||||
| Cash and cash equivalents, end of period | $ | 576 | $ | 278 | ||||
| Ingredion Incorporated ("Ingredion") | ||||||||||||||
| Supplemental Financial Information | ||||||||||||||
| (Unaudited) | ||||||||||||||
| I. Geographic Information of Net Sales and Operating Income | ||||||||||||||
| (in millions, expect for percentages) | Three Months Ended March 31, | Change | ||||||||||||
| 2021 | 2020 | Change | Excl. FX | |||||||||||
| Net Sales | ||||||||||||||
| North America | $ | 945 | $ | 963 | (2 | %) | (3 | %) | ||||||
| South America | 273 | 237 | 15 | % | 25 | % | ||||||||
| Asia-Pacific | 235 | 189 | 24 | % | 18 | % | ||||||||
| EMEA | 161 | 154 | 5 | % | 0 | % | ||||||||
| Total Net Sales | $ | 1,614 | $ | 1,543 | 5 | % | 5 | % | ||||||
| Operating Income | ||||||||||||||
| North America | $ | 134 | $ | 125 | 7 | % | 6 | % | ||||||
| South America | 40 | 26 | 54 | % | 65 | % | ||||||||
| Asia-Pacific | 25 | 20 | 25 | % | 20 | % | ||||||||
| EMEA | 31 | 27 | 15 | % | 10 | % | ||||||||
| Corporate | (29 | ) | (31 | ) | 6 | % | 6 | % | ||||||
| Sub-total | 201 | 167 | 20 | % | 20 | % | ||||||||
| Acquisition/integration costs | (1 | ) | - | |||||||||||
| Restructuring/impairment charges | (10 | ) | (14 | ) | ||||||||||
| Impairment charges related to Arcor joint venture held for sale classification | (360 | ) | - | |||||||||||
| Total Operating (Loss) Income | $ | (170 | ) | $ | 153 | (211 | %) | (211 | %) | |||||
| II. Non-GAAP Information | ||||||||||||||
| To supplement the consolidated financial results prepared in accordance with U.S. generally accepted accounting principles (“GAAP”), we use non-GAAP historical financial measures, which exclude certain GAAP items such as acquisition and integration costs, restructuring and impairment cost, Mexico tax provision, and certain other special items. We generally use the term “adjusted” when referring to these non-GAAP amounts. | ||||||||||||||
| Management uses non-GAAP financial measures internally for strategic decision making, forecasting future results and evaluating current performance. By disclosing non-GAAP financial measures, management intends to provide investors with a more meaningful, consistent comparison of our operating results and trends for the periods presented. These non-GAAP financial measures are used in addition to and in conjunction with results presented in accordance with GAAP and reflect an additional way of viewing aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business. These non-GAAP measures should be considered as a supplement to, and not as a substitute for, or superior to, the corresponding measures calculated in accordance with GAAP. | ||||||||||||||
| Non-GAAP financial measures are not prepared in accordance with GAAP; therefore, the information is not necessarily comparable to other companies. A reconciliation of each non-GAAP historical financial measure to the most comparable GAAP measure is provided in the tables below. | ||||||||||||||
| Ingredion Incorporated ("Ingredion") | ||||||||||||||
| Reconciliation of GAAP Net (Loss) Income attributable to Ingredion and Diluted Earnings Per Share ("EPS") to | ||||||||||||||
| Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | Three Months Ended | |||||||||||||
| March 31, 2021 | March 31, 2020 | |||||||||||||
| (in millions) | Diluted EPS | (in millions) | Diluted EPS | |||||||||||
| Net (loss) income attributable to Ingredion | $ | (246 | ) | $ | (3.66 | ) | $ | 75 | $ | 1.11 | ||||
| Add back: | ||||||||||||||
| Acquisition/integration costs, net of $ - million of income tax benefit for three months ended March 31, 2021 and 2020 (i) | 1 | 0.01 | - | - | ||||||||||
| Restructuring/impairment charges, net of income tax benefit of $2 million and $3 million for the three months ended March 31, 2021 and 2020, respectively (ii) | 8 | 0.12 | 11 | 0.16 | ||||||||||
| Impairment charges related to Arcor joint venture held for sale classification, net of $ - million of income tax benefit for the three months ended March 31, 2021 (iii) | 360 | 5.35 | - | - | ||||||||||
| Tax provision - Mexico (iv) | 3 | 0.05 | 22 | 0.32 | ||||||||||
| Diluted share impact (v) | - | (0.02 | ) | - | - | |||||||||
| Non-GAAP adjusted net income attributable to Ingredion | $ | 126 | $ | 1.85 | $ | 108 | $ | 1.59 | ||||||
| Net income, EPS and tax rates may not foot or recalculate due to rounding. | ||||||||||||||
| Notes | ||||||||||||||
| (i) The 2021 period primarily includes costs related to the acquisition and integration of the business acquired from PureCircle Limited. Acquisition and integration costs presented in the "reconciliation of adjusted net income attributable to Ingredion" table are net of costs attributable to non-controlling interest. | ||||||||||||||
| (ii) During the three months ended March 31, 2021, the Company recorded $10 million of pre-tax restructuring/impairment charges, consisting of $5 million of employee-related and other costs, including professional services, associated with its Cost Smart SG&A program, $3 million of restructuring-related expenses as part of its Cost Smart cost of sales program, primarily in North America, and $2 million of employee-related and other costs related to the Arcor joint venture transaction expected to close in the third quarter of 2021. | ||||||||||||||
| During the three months ended March 31, 2020, the Company recorded $14 million of pre-tax restructuring/impairment charges, consisting of $9 million of restructuring related expenses as part of its Cost Smart cost of sales program and $5 million of employee-related and other costs, including professional services, associated with its Cost Smart SG&A program. | ||||||||||||||
| (iii) During the three months ended March 31, 2021, the Company recorded a $360 million held for sale impairment charge related to the Arcor joint venture. The impairment charge reflects write-down to fair value of the contribution of certain Argentina, Chile and Uruguay assets and liabilities that will be contributed to the Arcor joint venture. The impairment charge reflects a $49 million write-down of the contributed net assets to the agreed upon fair value and a $311 million valuation allowance for the cumulative translation losses related to these net assets that will be released from Accumulated Other Comprehensive Loss on the balance sheet at the close of the transaction. | ||||||||||||||
| (iv) The tax item represents the impact of the Company’s use of the U.S. dollar as the functional currency for its subsidiaries in Mexico. Mexico’s effective tax rate is strongly influenced by the remeasurement of the Mexican peso financial statements into U.S. dollars. The company recorded a discrete tax provision of $3 million and $22 million for the three months ended March 31, 2021 and 2020, respectively, as a result of the movement of the Mexican peso against the U.S. dollar during the periods. | ||||||||||||||
| (v) If GAAP net income is negative and Non-GAAP Adjusted Net Income is positive, adjusted diluted weighted average common shares outstanding will include any options, restricted share units, or performance shares that would be otherwise dilutive instruments using the treasury stock method, until the effect of these adjustments is anti-dilutive. During the three months ended March 31, 2021 the incremental dilutive share impact of these instruments was 0.6 million shares of common stock equivalents. The diluted weighted average shares outstanding of 67.3 million would increase to an adjusted diluted weighted average common shares outstanding of 67.9 million for the three months ended March 31, 2021. There is no impact to the three months ended March 31, 2020. | ||||||||||||||
| Ingredion Incorporated ("Ingredion") | ||||||||||||||
| Reconciliation of GAAP Operating (Loss) Income to Non-GAAP Adjusted Operating Income | ||||||||||||||
| (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | ||||||||||||||
| (in millions, pre-tax) | 2021 | 2020 | ||||||||||||
| Operating (loss) income | $ | (170 | ) | $ | 153 | |||||||||
| Add back: | ||||||||||||||
| Acquisition/integration costs (i) | 1 | - | ||||||||||||
| Restructuring/impairment charges (ii) | 10 | 14 | ||||||||||||
| Impairment charges related to Arcor joint venture held for sale classification (iii) | 360 | - | ||||||||||||
| Non-GAAP adjusted operating income | $ | 201 | $ | 167 | ||||||||||
| For notes (i) through (iii), see notes (i) through (iii) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. | ||||||||||||||
| II. Non-GAAP Information (continued) | |||||||||||
| Ingredion Incorporated ("Ingredion") | |||||||||||
| Reconciliation of GAAP Effective Income Tax Rate to Non-GAAP Adjusted Effective Income Tax Rate | |||||||||||
| (Unaudited) | |||||||||||
| Three Months Ended March 31, 2021 | |||||||||||
| (Loss) income before | Provision for | Effective Income | |||||||||
| (in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b/a) | ||||||||
| As Reported | $ | (188 | ) | $ | 55 | -29.3 | % | ||||
| Add back: | |||||||||||
| Acquisition/integration costs (i) | 1 | - | |||||||||
| Restructuring/impairment charges (ii) | 10 | 2 | |||||||||
| Impairment charges related to Arcor joint venture held for sale classification (iii) | 360 | - | |||||||||
| Tax item - Mexico (iv) | - | (3 | ) | ||||||||
| Adjusted Non-GAAP | $ | 183 | $ | 54 | 29.5 | % | |||||
| Three Months Ended March 31, 2020 | |||||||||||
| Income before | Provision for | Effective Income | |||||||||
| (in millions) | Income Taxes (a) | Income Taxes (b) | Tax Rate (b/a) | ||||||||
| As Reported | $ | 136 | $ | 58 | 42.6 | % | |||||
| Add back: | |||||||||||
| Restructuring/impairment charges (ii) | 14 | 3 | |||||||||
| Tax item - Mexico (iv) | - | (22 | ) | ||||||||
| Adjusted Non-GAAP | $ | 150 | $ | 39 | 26.0 | % | |||||
| For notes (i) through (iv), see notes (i) through (iv) included in the Reconciliation of GAAP Net Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. | |||||||||||
| II. Non-GAAP Information (continued) | ||||||
| Ingredion Incorporated ("Ingredion") | ||||||
| Reconciliation of Reported U.S. GAAP Effective Tax Rate ("GAAP ETR") | ||||||
| to Anticipated Adjusted Effective Tax Rate ("Adjusted ETR") | ||||||
| (Unaudited) | ||||||
| Anticipated Effective Tax Rate Range | ||||||
| for Full Year 2021 | ||||||
| Low End | High End | |||||
| GAAP ETR | 70.5 | % | 75.6 | % | ||
| Add: | ||||||
| Acquisition/integration costs (i) | 0.0 | % | 0.0 | % | ||
| Restructuring/impairment charges (ii) | 0.6 | % | 0.6 | % | ||
| Impairment charges related to Arcor joint venture held for sale classification (iii) | 0.0 | % | 0.0 | % | ||
| Tax provision - Mexico (iv) | 0.3 | % | -1.3 | % | ||
| Other tax matters (vi) | -0.2 | % | -0.2 | % | ||
| Impact of adjustment on Effective Tax Rate (vii) | -43.2 | % | -45.7 | % | ||
| Adjusted ETR | 28.0 | % | 29.0 | % | ||
| Above is a reconciliation of our anticipated full year 2021 GAAP ETR to our anticipated full year 2021 adjusted ETR. The amounts above may not reflect certain future charges, costs and/or gains that are inherently difficult to predict and estimate due to their unknown timing, effect and/or significance. These amounts include, but are not limited to, acquisition and integration costs, impairment and restructuring costs, and certain other special items. We generally exclude these items from our adjusted ETR guidance. For these reasons, we are more confident in our ability to predict adjusted ETR than we are in our ability to predict GAAP ETR. | ||||||
| For items (i) through (iv), see footnotes included in the Reconciliation of GAAP Net (Loss) Income attributable to Ingredion and Diluted EPS to Non-GAAP Adjusted Net Income attributable to Ingredion and Adjusted Diluted EPS. | ||||||
| (vi) This relates to other tax settlements. | ||||||
| (vii) Indirect impact of tax rate after items (i) through (vi). | ||||||