Many companies make annual reports available on their corporate Internet home page. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filing Type, search for 10-K). Access the most recent annual report for International Flavors and Fragrances (IFF).

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.