Ingredion Incorporated报告2020年第三季度业绩

时间：2021-01-07 16:38:07

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[导读]2020年第三季度报告和调整后每股收益（EPS*）分别为1.36美元和1.77美元，2019年第三季度的这两项数据分别为1.47美元和1.86美元2020年年初至今，报告和调整后每股收益分别为3.45

2020年第三季度报告和调整后每股收益（EPS*）分别为1.36美元和1.77美元，2019年第三季度的这两项数据分别为1.47美元和1.86美元
2020年年初至今，报告和调整后每股收益分别为3.45美元和4.50美元，而上年同期分别为4.51美元和5.06美元
公司预期通过收购100%所有权增加对Verdient Foods Inc.的投资，进一步增强其植物性蛋白质产品组合

伊利诺伊州威彻斯特, Nov. 06, 2020 (GLOBE NEWSWIRE) -- 面向食品和饮料生产业的全球领先原料解决方案提供商 Ingredion Incorporated（NYSE：INGR）今天公布了2020年第三季度业绩。业绩数据依据2020年和2019年美国公认会计原则（GAAP）列报，含公司报告的非GAAP财务指标之外项目。

“我们对第三季度的运营执行和财务业绩感到满意。2020年第二季度，由于新冠肺炎抗疫限制措施放松，消费者活动增加，我们所有四个地区的客户需求量均出现了连续增长，”Ingredion总裁兼首席执行官 Jim Zallie 表示。“报告和调整后营业收入分别比第二季度增长35%和41%。我们高度专注于服务客户和运营执行，使我们能够在大部分地区实现利润的同比增长。”

“在继续应对世界各地不同经济环境的同时，我们仍专注于员工的适应力、对我们运营所在社区的责任，以及为服务客户而确保务连续性。我们的团队在与客户共同推进走向市场战略方面表现出了极大的灵活性和创造力，我为他们感到无比自豪。作为新的工作方式，我们正在利用新形式的数字协作进行沟通、创新，以及与客户共同创造。我们正在将世界各地的Idea Labs转移到虚拟互动工作室，以将创新流程带给客户，无论他们身处任何地方，”Zallie继续说道。

“今天，我们宣布了推进我们驱动增长路线图的又一项战略步骤：正在进行的对Verdient Foods Inc.的收购，这将使我们的所有权达到100%。这一交易促进我们加速净销售额增长，进一步扩大制造能力，并更好地管理我们的供应网络，以满足对植物性蛋白质不断增长的需求。本季度，我们还通过整合PureCircle的全球团队和运营，进一步增强了我们的减糖能力。”

“我们处于有利地位，能够有效地管理疫情带来的不确定性，并成功地支持我们的客户及其不断变化的需求。对企业战略的切合性我们继续抱有信心，相信我们的战略能够促进业务增长并为股东创造价值，”Zallie总结道。

*调整后的摊薄每股收益（“调整后每股收益”）、调整后营业收入、调整后实际所得税率和调整后经营业务现金流量均为非GAAP财务指标。请参阅本新闻稿中随附的简明合并财务报表后题为“非GAAP信息”的补充财务信息第II节，以便根据最具直接可比性的美国公认会计原则指标调整这些非GAAP指标。

摊薄每股收益 (EPS)

	3Q19	3Q20	YTD19	YTD20
Reported EPS	$1.47	$1.36	$4.51	$3.45
Impairment/Restructuring Costs	$0.32	$0.22	$0.47	$0.51
Acquisition/Integration Costs	-	$0.06	$0.02	$0.10
Tax Items	$0.07	$0.01	$0.06	$0.33
Other Adjusted Items	-	$0.12	-	$0.12
Adjusted EPS**	$1.86	$1.77	$5.06	$4.50

预计会影响报告和调整后每股收益变化的因素

	3Q20	YTD20
Margin	(0.07)	(0.05)
Volume	(0.02)	(0.41)
Foreign exchange	(0.07)	(0.20)
Other income	0.01	(0.03)
Total operating items	(0.15)	(0.69)
Other non-operating income	0.02	0.05
Financing costs	0.09	0.09
Non-Controlling interests	0.02	0.02
Shares outstanding	(0.01)	(0.02)
Tax rate	(0.06)	(0.02)
Total non-operating items	0.06	0.12
Total items affecting EPS**	(0.09)	(0.56)

**因数据舍入，总额可能有出入

主要财务数据

截至2020年9月30日，总债务及现金和短期投资分别为22亿美元和5.53亿美元，2019年12月31日的数字分别为18亿美元和2.68亿美元。总债务、现金和短期投资的增加主要是由于公司在2020年第二季度销售了10亿美元的优先票据（被7月份赎回2020年11月的4亿美元优先票据部分抵消）。
净融资成本为2,200万美元，其中500万美元用于支付与7月份提前赎回的优先票据相关的利息。第三季度净融资成本较上年同期下降200万美元。减少的原因在于利率降低而使净利息费用减少。
第三季度的报告和调整后实际税率分别为30.1%和26.2%，相比之下，上年同期的数字分别为27.1%和23.2%。报告和调整税率的增加主要是由于美国的外国税收抵免、国家收入组合和其他一次性调整。
年初至今的资本支出为2.5亿美元，较上年同期增加1900万美元。

业务回顾

整个Ingredion

$ in millions	2019 Net Sales	FX Impact	Volume	Price mix	PureCircle	2020 Net Sales	% change	% change excl. FX
Third quarter	1,574	-38	-36	-6	8	1,502	-5%	-2%
Year-to-Date	4,660	-138	-214	78	8	4,394	-6%	-3%

报告营业收入

$ in millions

2019

FX Impact

Business Drivers

PureCircle

Acquisition /Integration

Restructuring / Impairment

Other

2020

% change

% change
excl. FX

Third quarter

165

-6

-3

-5

153

-7%

-4%

Year-to-Date

494

-18

-41

-5

-6

-5

419

-15%

-11%

调整后营业收入

$ in millions	2019	FX Impact	Business Drivers	PureCircle	2020	% change	% change excl. FX
Third quarter	193	-6	-3	-5	179	-7%	-4%
Year-to-Date	537	-18	-41	-5	473	-12%	-8%

净销售额

第三季度的净销售额低于去年同期。下降原因在于南美洲的汇率影响以及北美洲的销量下降。剔除汇率影响后该季度的净销售额下降了2%。
年初至今的净销售额低于上年同期。年初至今净销售额下降的原因是北美州和南美洲的销售额下降以及南美的外汇影响，其中部分不利影响被有利的定价所抵消。剔除汇率影响后，年初至今的净销售额下降了3%。

营业收入

该季度报告和调整后营业收入分别为1.53亿美元和1.79亿美元，均较上年同期下降7%。下降的主要原因是北美销量下降以及PureCircle业绩纳入计算。剔除汇率影响后，报告和调整后营业收入均比去年同期下降4%。
年初至今报告和调整后营业收入分别为4.19亿美元和4.73亿美元，较上年同期分别下降15%和12%。下降的主要原因是北美地区销量下降，以及持续投资以推动业务和数字化转型导致公司成本上涨。剔除汇率影响后，报告和调整后营业收入分别比去年同期下降11%和8%。
因为与成本智能（Cost Smart）相关的资产关停和重组成本、收购与整合成本，以及八月份爱荷华州风暴损失的影响，第三季度和年初至今报告营业收入分别比调整后营业收入低2600万美元和5400万美元。

北美

净销售额

$ in millions	2019 Net Sales	FX Impact	Volume	Price mix	2020 Net Sales	% change	% change excl. FX
Third quarter	984	-1	-31	-24	928	-6%	-6%
Year-to-Date	2,912	-6	-181	14	2,739	-6%	-6%

部门营业利润

$ in millions	2019	FX Impact	Business Drivers	2020	% change	% change excl. FX
Third quarter	145	-	-13	132	-9%	-9%
Year-to-Date	409	-1	-50	358	-12%	-12%

营业收入

第三季度营业收入为1.32亿美元，相比去年同期降低1300万美元。营收下滑的原因是销量下降，这是由于新冠肺炎疫情继续影响着整个地区的外出消费，以及美国和加拿大不利的产品组合。
年初至今营业收入为3.58亿美元，相比去年同期下降5100万美元。下降主因在于整个地区的外出消费显著下降以及墨西哥的酿酒厂客户停工。

南美洲

净销售额

$ in millions	2019 Net Sales	FX Impact	Volume	Price mix	2020 Net Sales	% change	% change excl. FX
Third quarter	245	-38	-7	24	224	-9%	7%
Year-to-Date	699	-104	-20	68	643	-8%	7%

部门营业利润

$ in millions	2019	FX Impact	Business Drivers	2020	% change	% change excl. FX
Third quarter	27	-6	8	29	7%	30%
Year-to-Date	61	-13	20	68	11%	33%

营业收入

第三季度营业收入为2900万美元，相比去年同期增加200万美元。这一增长是由强劲的价格组合所推动（被不利的外汇影响所抵消）。剔除外汇影响后，部门营业收入增长30%。
年初至今营业收入为6800万美元，与去年同期相比增长700万美元，增长原因在于受强劲的价格组合效应带动（部分被不利的外汇影响所抵消）。剔除外汇影响后，部门营业收入增长33%。阿根廷的结果按恶性通货膨胀会计以美元核算。

亚太

净销售额

$ in millions	2019 Net Sales	FX Impact	Volume	Price mix	PureCircle	2020 Net Sales	% change	% change excl. FX
Third quarter	205	-	1	-7	8	207	1%	1%
Year-to-Date	611	-12	-12	-12	8	583	-5%	-3%

部门营业利润

$ in millions	2019	FX Impact	Business Drivers	PureCircle	2020	% change	% change excl. FX
Third quarter	22	-	1	-5	18	-18%	-18%
Year-to-Date	65	-1	1	-5	60	-8%	-6%

营业收入

第三季度营业收入为1800万美元，相比去年同期下降400万美元，原因在于PureCircle运营亏损500万美元。不计入PureCircle影响，第三季度营业收入为2300万美元，相比去年同期增长100万美元，主要原因是投入成本和运营费用降低。
年初至今营业收入为6000万美元，相比去年同期下降500万美元。PureCircle业绩导致年初至今营业收入减少500万美元。剔除PureCircle业绩后，年初至今营业收入与去年同期持平，投入成本降低以及运营成本减少抵消了上半年因居家防疫令造成的销售额下降。剔除外汇影响后，部门营业收入下降6%。

欧洲、中东和非洲（EMEA）

净销售额

$ in millions	2019 Net Sales	FX Impact	Volume	Price mix	2020 Net Sales	% change	% change excl. FX
Third quarter	140	-	1	2	143	2%	2%
Year-to-Date	438	-18	-1	10	429	-2%	2%

部门营业利润

$ in millions	2019	FX Impact	Business Drivers	2020	% change	% change excl. FX
Third quarter	24	-	1	25	4%	4%
Year-to-Date	71	-3	5	73	3%	8%

营业收入

第三季度营业收入为2500万美元，相比去年同期增加100万美元。这一增长主要是由于巴基斯坦有利的价格组合和欧洲较低的运营费用。
年初至今营业收入为7300万美元，相比去年同期增加200万美元。增长原因主要在于巴基斯坦定价措施、EMEA特种产品销量强劲以及欧洲运营费用降低，其中部分被居家订单对巴基斯坦第一季度产量和销量的影响以及外汇的负面影响所抵消。剔除汇率影响后，部门营业收入较去年同期增长8%。

股息

2020年9月，公司的季度股息从每股0.63美元增长到每股0.64美元，并在第三季度支付了4500万美元的股息，年初至今支付了1.32亿美元。

2020年展望

由于新冠病毒疫情影响仍不确定，公司目前无法合理估计全年业绩，指导意见仍保持撤回。

公司预计第四季度新冠肺炎疫情对我们营业部门净销售额的不利影响仍将继续，净销售额的复苏通常与放松限制和消费者活动增加有关。鉴于许多地区疫情流行的患病率有升有降，我们预计外出消费将继续波动，对外出消费型食品饮料原料的需求量造成抑制。我们预计居家消费食品需求将小幅增长，这部分食品食材的原料销量将增加。

我们预计全年的报告税率为32%至36%，调整后的实际税率范围为约27%至28%。

预计资本支出将在2.9亿美元至3.1亿美元之间，其中驱动特种产品增长方面的投入超过1亿美元。

电话会议和网络直播详情
Ingredion将于美国中部时间2020年11月2日上午8:00召开电话会议。会议由总裁兼首席执行官Jim Zallie以及执行副总裁兼首席财务官James Gray主持。电话会议将进行实时网络直播，其中的演示稿可通过公司网站www.ingredion.com获取。演示稿于会议开始前的几小时内开放下载。网络直播将通过www.ingredion.com网站提供限时重放。

关于公司
Ingredion Incorporated（NYSE: INGR）总部位于芝加哥郊区，是全球领先的原料解决方案提供商，为全球120多个国家/地区的客户提供服务。公司将谷物、水果、蔬菜和其他植物基材料转化为食品、饮料、动物饲料、酿造和工业市场使用的增值原料和生物材料解决方案，2019年净销售额超过60亿美元。凭借遍布世界各地的Ingredion Idea Labs^®创新中心和11,000多名员工，公司与客户共同确立并实现其目标：将人、自然和科技的潜力融合在一起以创建更美好的生活。如需了解更多信息和最新公司新闻，请访问ingredion.com。

前瞻性声明
本新闻稿含有或可能含有《1933年证券法案》第27A节（及其修订案）以及《1934年证券交易法案》第21E节（及其修订案）中定义的前瞻性声明。公司拟将这些前瞻性声明纳入该等声明的安全港条款。

除其他事项之外，前瞻性声明还包括公司对2020年新冠病毒疫情影响、公司实际税率和资本支出的预期的任何陈述，以及基于上述内容的任何假设、期望或信念。这些陈述有时可以通过使用的前瞻性词汇进行确定，如“可能”、“将”、“应该”、“预计”、“假设”、“相信”、“计划”、“规划”、“估计”、“期望”、“意图”、“继续”、“预估”、“预测”、“展望”、“拟制”、“驱使”、“机会”、“潜在”、“暂定”或其他类似的表达或否定。本新闻稿中包含或提及的历史事实之外的所有陈述均为“前瞻性声明”。

这些陈述均基于当前情况或预期作出，但存在某些固有的风险和不确定性，其中很多难以预测并且超出我们的控制范围。我们相信这些前瞻性声明所反映的预期均基于合理假设，但投资者须注意：我们无法担保这些预期将成为现实。

由于下列风险和不确定性，以及各类因素，实际结果和发展可能与这些声明中明示或暗示的预期显著不同：高果糖玉米糖浆相关及其他消费偏好和意识的改变；全球经济状况以及在我们购买原材料或产销产品的各地理区域和国家/地区影响到客户和消费者的总体政治、经济、商业和市场状况的影响，特别包括南美的经济、货币和政治状况和欧洲的经济和政治状况及其可能对我们产品销售量和定价、我们对信用市场的利用和我们向客户收取应收账款能力的影响；我们养老金资产投资回报收益方面的不利变化；我们所服务并且作为我们销售额重要来源的主要行业的未来财务表现，包括食品、饮料、动物饲料和酿造行业；对通过基因编辑和生物技术所开发产品之接受度的不确定性；我们开发或获得新产品和服务的速度和质量足以满足期望的能力；美国和外国政府政策、法规或监管的变动以及法律合规性成本；玉米加工行业和相关行业日益增长的竞争和/或消费者压力，包括在我们主要产品和副产品（尤其是玉米油）的市场和价格方面；原材料的供应情况，包括马铃薯淀粉、木薯淀粉、阿拉伯树胶和我们某些产品所需的特殊玉米品种，以及我们向客户转嫁玉米或其他原材料成本上涨的能力；原材料和能源成本及供应情况；我们消化成本、完成预算和实现预期协调的能力，包括我们能够按预算按时完成计划维护和投资项目，以及按照成本智能计划和货运和运输成本方面实现预期节约的能力；金融和资本市场对我们借贷成本的影响，包括由于外币波动、利率和汇率波动以及市场波动而产生的风险以及对冲此类波动的相关风险；气候变化的潜在影响；我们按有利条款成功确定并完成收购或结成战略联盟的能力，以及我们成功整合所收购企业或实施并在上述所有方面维持战略联盟实现预期协同作用的能力；我们生产厂或锅炉可靠性方面的运营困难；产品的安全和质量相关风险，以及环境、健康与安全、食品安全法律法规的合规性风险；涉及在外国使用外币以及跨国产品运输的运营所固有的经济、政治和其他风险，包括商品关税、配额和进口关税；可能对我们的信息技术系统、流程和网点造成影响的中断、安全违规或故障；我们维持良好劳资关系的能力；天气、自然灾害、战争或类似敌对活动、恐怖主义活动或威胁、新冠肺炎等流行病疫情的爆发或持续以及其他可能对我们业务造成的影响的重大事件；商誉或长期资产减值准备的潜在认列；税率变动或额外所得税负债敞口；以及我们以合理利率为我们的业务增长和扩张进行筹款的能力。

我们的前瞻性声明仅针对截至声明日期的情况，我们无任何义务在声明日期之后因为任何新的信息或未来事件或发展而更新任何前瞻性声明以反映事件或情况。如果我们确实更新或更正了其中一项或多项声明，投资者和其他人不应该就此推断我们将进行其他更新或更正。有关这些和其他风险的进一步描述，请参见我们截至2019年12月31日的年度报告（表10-K）和截至2020年3月31日的季度期间的季度报告（表10-Q）以及我们的后续报告（表10-Q和表8-K）中收录的“风险因素”。

联系人：
投资者：Tiffany Willis，708-551-2592
媒体：Becca Hary，708-551-2602

Ingredion Incorporated ("Ingredion")
Condensed Consolidated Statements of Income
(Unaudited)



(in millions, except per share amounts)	Three Months Ended September 30,								Change %		Nine Months Ended September 30,								Change %
		2020				2019						2020				2019
Net sales	$		1,502		$		1,574		(5	%)	$		4,394		$		4,660		(6	%)
Cost of sales		1,176				1,230						3,474				3,671
Gross profit		326				344			(5	%)		920				989			(7	%)

Operating expenses		155				153			1	%		456				457			0	%
Other expense (income), net		2				(2		)				4				(3		)
Restructuring/impairment charges		16				28						41				41
Operating income		153				165			(7	%)		419				494			(15	%)
Financing costs, net		22				24						59				62
Other, non-operating (income) expense, net		(2		)		1						(3		)		1
Income before income taxes		133				140			(5	%)		363				431			(16	%)
Provision for income taxes		40				38						125				120
Net income		93				102			(9	%)		238				311			(23	%)
Less: Net income attributable to non-controlling interests		1				3						5				7
Net income attributable to Ingredion	$		92		$		99		(7	%)	$		233		$		304		(23	%)


Earnings per common share attributable to Ingredion
common shareholders:

Weighted average common shares outstanding:
Basic		67.2				66.9						67.2				66.9
Diluted		67.6				67.4						67.6				67.4

Earnings per common share of Ingredion:
Basic	$	1.37			$	1.48			(7	%)	$	3.47			$	4.54			(24	%)
Diluted	$	1.36			$	1.47			(7	%)	$	3.45			$	4.51			(24	%)

Ingredion Incorporated ("Ingredion")
Condensed Consolidated Balance Sheets



(in millions, except share and per share amounts)	September 30, 2020			December 31, 2019
	(Unaudited)

Assets
Current assets
Cash and cash equivalents	$	553		$	264
Short-term investments		-			4
Accounts receivable – net		913			977
Inventories		908			861
Prepaid expenses		56			54
Total current assets		2,430			2,160

Property, plant and equipment – net		2,354			2,306
Goodwill		841			801
Other intangible assets – net		479			437
Operating lease assets		161			151
Deferred income tax assets		23			13
Other assets		176			172
Total assets	$	6,464		$	6,040

Liabilities and equity
Current liabilities
Short-term borrowings		62		$	82
Accounts payable and accrued liabilities		893			885
Total current liabilities		955			967

Non-current liabilities		211			220
Long-term debt		2,115			1,766
Non-current operating lease liabilities		123			120
Deferred income tax liabilities		189			195
Share-based payments subject to redemption		32			31
Redeemable non-controlling interests		74			-


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 September 30, 2020 and December 31, 2019		1			1
Additional paid-in capital		1,145			1,137
Less: Treasury stock (common stock; 10,822,592 and 10,993,388 shares at
September 30, 2020 and December 31, 2019, respectively) at cost		(1,027	)		(1,040	)
Accumulated other comprehensive loss		(1,259	)		(1,158	)
Retained earnings		3,884			3,780
Total Ingredion stockholders' equity		2,744			2,720
Non-redeemable non-controlling interests		21			21
Total equity		2,765			2,741

Total liabilities and equity	$	6,464		$	6,040

Ingredion Incorporated ("Ingredion")
Condensed Consolidated Statements of Cash Flows
(Unaudited)

	For the Nine Months Ended September 30,
(in millions)	2020			2019

Cash provided by operating activities:
Net income	$	238		$	311
Adjustments to reconcile net income to
net cash provided by operating activities:
Depreciation and amortization		158			158
Mechanical stores expense		39			42
Deferred income taxes		(1	)		2
Charge for fair value mark-up of acquired inventory		3			-
Margin accounts		6			(4	)
Changes in other trade working capital		80			(51	)
Other		39			32
Cash provided by operating activities		562			490

Cash used for investing activities:
Capital expenditures and mechanical stores purchases, net proceeds on disposals		(250	)		(231	)
Payments for acquisitions, net of cash acquired		(208	)		(42	)
Investment in a non-consolidated affiliate		(6	)		(10	)
Short-term investments		4			4
Other		-			1
Cash used for investing activities		(460	)		(278	)

Cash provided by (used for) financing activities:
Proceeds from borrowings (payments on), net		341			(19	)
Debt issuance costs		(9	)		-
Repurchases of common stock, net		-			63
Issuances of common stock for share-based compensation, net of settlements		2			1
Dividends paid, including to non-controlling interests		(132	)		(131	)
Cash provided by (used for) financing activities		202			(86	)

Effect of foreign exchange rate changes on cash		(15	)		(10	)
Increase in cash and cash equivalents		289			116
Cash and cash equivalents, beginning of period		264			327
Cash and cash equivalents, end of period	$	553		$	443

Ingredion Incorporated ("Ingredion")
Supplemental Financial Information
(Unaudited)




I. Geographic Information of Net Sales and Operating Income

(in millions, expect for percentages)	Three Months Ended September 30,								Change		Nine Months Ended September 30,						Change		Change
		2020			2019		Change		Excl. FX			2020			2019		%		Excl. FX
Net Sales
North America	$	928		$	984		(6	%)	(6	%)	$	2,739		$	2,912		(6	%)	(6	%)
South America		224			245		(9	%)	7	%		643			699		(8	%)	7	%
Asia-Pacific		207			205		1	%	1	%		583			611		(5	%)	(3	%)
EMEA		143			140		2	%	2	%		429			438		(2	%)	2	%
Total Net Sales	$	1,502		$	1,574		(5	%)	(2	%)	$	4,394		$	4,660		(6	%)	(3	%)

Operating Income
North America	$	132		$	145		(9	%)	(9	%)	$	358		$	409		(12	%)	(12	%)
South America		29			27		7	%	30	%		68			61		11	%	33	%
Asia-Pacific		18			22		(18	%)	(18	%)		60			65		(8	%)	(6	%)
EMEA		25			24		4	%	4	%		73			71		3	%	8	%
Corporate		(25	)		(25	)	0	%	0	%		(86	)		(69	)	(25	%)	(25	%)
Sub-total		179			193		(7	%)	(4	%)		473			537		(12	%)	(8	%)
Restructuring/impairment charges		(16	)		(28	)						(41	)		(41	)
Acquisition/integration costs		(5	)		-							(8	)		(2	)
Charge for fair value markup of acquired inventory		(3	)		-							(3	)
North America storm damage		(2	)		-							(2	)		-
Total Operating Income	$	153		$	165		(7	%)	(4	%)	$	419		$	494		(15	%)	(11	%)

II. Non-GAAP Information

To supplement the consolidated financial results prepared in accordance with 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 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				Nine Months Ended				Nine Months Ended
	September 30, 2020						September 30, 2019				September 30, 2020				September 30, 2019
	(in millions)			Diluted EPS			(in millions)		Diluted EPS		(in millions)		Diluted EPS		(in millions)		Diluted EPS

Net income attributable to Ingredion	$	92		$	1.36		$	99	$	1.47	$	233	$	3.45	$	304	$	4.51

Add back:

Acquisition/integration costs, net of income tax benefit of $1 million and $2 million for the three and nine months ended September 30, 2020, respectively, and $ - million and $1 million for the three and nine months ended September 30, 2019, respectively (i)		4			0.06			-		-		6		0.10		1		0.02

Restructuring/impairment charges, net of income tax benefit of $1 million and $7 million for the three and nine months ended September 30, 2020, respectively, and $6 million and $9 million for the three and nine months ended September 30, 2019, respectively (ii)		15			0.22			22		0.32		34		0.51		32		0.47

Charge for fair value markup of acquired inventory, net of income tax benefit of $ - for the three and nine months ending September 30, 2020, respectively (iii)		3			0.04			-		-		3		0.04

Charge for early extinguishment of debt, net of income tax benefit of $1 million for the three and nine months ended September 30, 2020, respectively (iv)		4			0.06			-		-		4		0.06		-		-

North America storm damage, net of income tax benefit of $ - for the three and nine months ended September 30, 2020, respectively (v)		2			0.03			-		-		2		0.03		-		-

Tax (benefit) provision - Mexico (vi)		(6	)		(0.08	)		3		0.04		16		0.24		2		0.03

Other tax matters (vii)		6			0.09			2		0.03		6		0.09		2		0.03

Non-GAAP adjusted net income attributable to Ingredion	$	120		$	1.77		$	126	$	1.86	$	304	$	4.50	$	341	$	5.06

Net income, EPS and tax rates may not foot or recalculate due to rounding.

Notes

(i) The 2020 period primarily includes costs related to the acquisition and integration of the business acquired from PureCircle Limited. The 2019 period primarily includes costs related to the acquisition and integration of the business acquired from Western Polymer, LLC.

(ii) During the three months ended September 30, 2020, the Company recorded $6 million of pre-tax restructuring/impairment charges, consisting of $4 million of employee-related and other costs, including professional services, associated with its Cost Smart SG&A program and $2 million of restructuring related expenses primarily in North America and APAC as part of its Cost Smart cost of sales program. During the nine months ended September 30, 2020, the Company recorded $31 million of pre-tax restructuring/impairment charges, consisting of, $17 million of restructuring related expenses primarily in North America and APAC as part of its Cost Smart cost of sales program and $14 million of employee-related and other costs, including professional services, associated with its Cost Smart SG&A program. In addition, the Company recorded a $10 million impairment of its equity method investment during the three months ended September 30, 2020, triggered by the decrease in fair value of its investment resulting from the agreed upon purchase price of the remaining 80% interest in Verdient Foods, Inc. The Company expects to complete the acquisition during Q4 2020. During the three and nine months ended September 30, 2019, the Company recorded $28 million and $41 million of pre-tax restructuring charges, respectively. During the third quarter of 2019, the Company recorded $14 million of net restructuring related expenses as part of the Cost Smart cost of sales program, including $6 million of employee-related costs and accelerated depreciation as part of the closure of our Lane Cove, Australia facility. Additionally, we recorded $4 million of employee-related costs in South America and APAC, and $4 million of other costs, including professional services, within the Cost Smart cost of sales program. The Company also recorded $14 million of restructuring related costs as part of the Cost Smart SG&A program, including $7 million of employee-related severance and $7 million of other costs, including professional services, primarily in North America and South America. During the nine months ended September 30, 2019, the Company recorded $41 million of restructuring charges including $20 million of employee-related and other costs, including professional services, associated with its Cost Smart SG&A program, $18 million of other costs, including professional services, and employee-related costs associated with its Cost Smart cost of sales program, including the closure of the Lane Cove, Australia facility, and $3 million of other costs related to the Latin America finance transformation initiative.

(iii) The three and nine months ended September 30, 2020 includes the flow-through of costs associated with the purchase of PureCircle Limited inventory that was adjusted to fair value at the acquisition date in accordance with business combination accounting rules.

(iv) During the three and nine months ended September 30, 2020, the Company incurred $5 million of costs directly related to the early debt extinguishment of the $400 million 4.625% senior notes due November 1, 2020. The Company recorded the debt extinguishment charges within Financing costs, net on the Condensed Consolidated Statements of Income.

(v) During the three and nine months ended September 30, 2020, the Company incurred storm damage to the Cedar Rapids, IA manufacturing facility. The facility was shut down for 10 days, and the storm related damage resulted in $2 million of charges during the three months ended September 30, 2020. The Company recorded the storm damage costs within Other expense (income), net on the Condensed Consolidated Statements of Income.

(vi) 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 tax benefit of $6 million and a tax provision of $16 million three and nine months ended September 30, 2020, respectively, as a result of the movement of the Mexican peso against the U.S. dollar during the periods. During the three and nine months ended September 30, 2019, the company recorded a tax provision of $3 million and $2 million, respectively, as a result of the movement of the Mexican peso against the U.S. dollar during the periods.

(vii) This relates to other tax settlements, tax adjustments for an intercompany reorganization, and tax results of the above non-GAAP addbacks.




II. Non-GAAP Information (continued)


Ingredion Incorporated ("Ingredion")
Reconciliation of GAAP Operating Income to Non-GAAP Adjusted Operating Income
(Unaudited)


	Three Months Ended						Nine Months Ended
	September 30,						September 30,
(in millions, pre-tax)		2020			2019			2020		2019

Operating income	$	153		$	165		$	419	$	494

Add back:

Acquisition/integration costs (i)		5			-			8		2

Restructuring/impairment charges (ii)		16			28			41		41

Charge for fair value markup of acquired inventory (iii)		3			-			3		0

North America storm damage (v)		2			-			2		-

Non-GAAP adjusted operating income	$	179		$	193		$	473	$	537


For each tickmark above, see footnotes 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 September 30, 2020							Nine Months Ended September 30, 2020
	Income before		Provision for			Effective Income		Income before		Provision for			Effective Income
(in millions)	Income Taxes (a)		Income Taxes (b)			Tax Rate (b / a)		Income Taxes (a)		Income Taxes (b)			Tax Rate (b / a)

As Reported	$	133	$	40		30.1	%	$	363	$	125		34.4	%

Add back:

Acquisition/integration costs (i)		5		1					8		2

Restructuring/impairment charges (ii)		16		1					41		7

Charge for fair value markup of acquired inventory (iii)		3		-					3		-

Charge for early extinguishment of debt (iv)		5		1					5		1

North America storm damage (v)		2		-					2		-

Tax item - Mexico (vi)		-		6					-		(16	)

Other tax matters (vii)		-		(6	)				-		(6	)

Adjusted Non-GAAP	$	164	$	43		26.2	%	$	422	$	113		26.8	%



	Three Months Ended September 30, 2019							Nine Months Ended September 30, 2019
	Income before		Provision for			Effective Income		Income before		Provision for			Effective Income
(in millions)	Income Taxes (a)		Income Taxes (b)			Tax Rate (b / a)		Income Taxes (a)		Income Taxes (b)			Tax Rate (b / a)

As Reported	$	140	$	38		27.1	%	$	431	$	120		27.8	%

Add back:

Acquisition/integration costs (i)		-		-					2		1

Restructuring/impairment charges (ii)		28		6					41		9

Tax item - Mexico (vi)		-		(3	)				-		(2	)

Other tax matters (vii)		-		(2	)				-		(2	)

Adjusted Non-GAAP	$	168	$	39		23.2	%	$	474	$	126		26.6	%


For each tickmark above, see footnotes 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 2020
	Low End		High End
GAAP ETR	32.0	%	36.0	%

Add:

Acquisition/integration costs (i)	0.4	%	0.4	%

Restructuring/impairment charges (ii)	1.5	%	1.6	%

Charge for fair value markup of acquired inventory (iii)	0.0	%	0.0	%

Charge for early extinguishment of debt (iv)	0.2	%	0.2	%

North America storm damage (v)	0.1	%	0.2	%

Tax item - Mexico (vi)	-2.3	%	-5.0	%

Other tax matters (vii)	-1.0	%	-1.0	%

Impact of adjustment on Effective Tax Rate (viii)	-3.9	%	-4.4	%

Adjusted ETR	27.0	%	28.0	%



Above is a reconciliation of our anticipated full year 2020 GAAP ETR to our anticipated full year 2020 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 (vii), see footnotes 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.

(viii) Indirect impact of tax rate after items (i) through (vii).