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Business Segments And Geographic Areas | 12 Months Ended
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Nov. 30, 2019
Segment Reporting Information, Profit (Loss) [Abstract] |
Business Segments And Geographic Areas | BUSINESS SEGMENTS AND GEOGRAPHIC AREAS Business Segments We operate in two business segments: consumer and flavor solutions. The consumer and flavor solutions segments manufacture, market and distribute spices, seasoning mixes, condiments and other flavorful products throughout the world. Our consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the “McCormick” brand and a variety of brands around the world, including “French's,” “Frank's RedHot,” “Lawry’s,” “Zatarain’s,” “Simply Asia,” “Thai Kitchen,” “Ducros,” “Vahiné,” “Schwartz,” “Club House,” “Kamis,” “Kohinoor,” "DaQiao," "Drogheria & Alimentari," "Stubb's" and "Gourmet Garden." Our flavor solutions segment sells to food manufacturers and the foodservice industry both directly and indirectly through distributors. In each of our segments, we produce and sell many individual products which are similar in composition and nature. With their primary attribute being flavor, the products within each of our segments are regarded as fairly homogenous. It is impracticable to segregate and identify sales and profits for each of these individual product lines. Historically, we have measured segment performance based on operating income excluding special charges as this activity is managed separately from the business segments. Beginning in 2017, we also excluded transaction and integration expenses related to our acquisition of RB Foods from our measure of segment performance as these expenses are similarly managed separately from the business segments. These transaction and integration expenses excluded from our segment performance measure include the amortization of the acquisition-date fair value adjustment of inventories that is included in cost of goods sold, costs directly associated with that acquisition and costs associated with integrating the RB Foods business. Although the segments are managed separately due to their distinct distribution channels and marketing strategies, manufacturing and warehousing are often integrated to maximize cost efficiencies. We do not segregate jointly utilized assets by individual segment for purposes of internal reporting, performance evaluation, or capital allocation. In 2019, the Company transferred management responsibility for certain export operations in both its consumer and flavor solutions segments between geographies within each respective segment, shifting from the Americas to the Asia/Pacific regions within each segment, with no change in segment sales or segment operating income for either the consumer or flavor solutions segment in total. We have a large number of customers for our products. Sales to one of our consumer segment customers, Wal-Mart Stores, Inc., accounted for approximately 11% of consolidated sales in 2019, 2018 and 2017. Sales to one of our flavor solutions segment customers, PepsiCo, Inc., accounted for approximately 10% of consolidated sales in both 2019 and 2018 and approximately 11% in 2017. Accounting policies for measuring segment operating income and assets are consistent with those described in note 1. Because of integrated manufacturing for certain products within the segments, products are not sold from one segment to another but rather inventory is transferred at cost. Inter-segment sales are not material. Corporate assets include cash, deferred taxes, investments and certain fixed assets. Business Segment Results
(millions) | Consumer | Flavor Solutions | Total segments | Corporate & other | Total
2019 |  |  |  |  |
Net sales | $ | 3,269.8 |  | $ | 2,077.6 |  | $ | 5,347.4 |  | $ | — |  | $ | 5,347.4 |
Operating income excluding special charges | 676.3 |  | 302.2 |  | 978.5 |  | — |  | 978.5 |
Income from unconsolidated operations | 31.8 |  | 9.1 |  | 40.9 |  | — |  | 40.9 |
Assets | — |  | — |  | 9,950.3 |  | 411.8 |  | 10,362.1 |
Capital expenditures | — |  | — |  | 121.8 |  | 51.9 |  | 173.7 |
Depreciation and amortization | — |  | — |  | 118.0 |  | 40.8 |  | 158.8 |
2018 |  |  |  |  |
Net sales | $ | 3,247.0 |  | $ | 2,055.8 |  | $ | 5,302.8 |  | $ | — |  | $ | 5,302.8 |
Operating income excluding special charges and transaction and integration expenses | 637.1 |  | 292.8 |  | 929.9 |  | — |  | 929.9 |
Income from unconsolidated operations | 29.5 |  | 5.3 |  | 34.8 |  | — |  | 34.8 |
Assets | — |  | — |  | 10,015.8 |  | 240.6 |  | 10,256.4 |
Capital expenditures | — |  | — |  | 126.3 |  | 42.8 |  | 169.1 |
Depreciation and amortization | — |  | — |  | 115.0 |  | 35.7 |  | 150.7 |
2017 |  |  |  |  |
Net sales | $ | 2,901.6 |  | $ | 1,828.7 |  | $ | 4,730.3 |  | $ | — |  | $ | 4,730.3 |
Operating income excluding special charges and transaction and integration expenses | 562.4 |  | 221.3 |  | 783.7 |  | — |  | 783.7 |
Income from unconsolidated operations | 28.9 |  | 5.0 |  | 33.9 |  | — |  | 33.9 |
Assets | — |  | — |  | 10,036.7 |  | 349.1 |  | 10,385.8 |
Capital expenditures | — |  | — |  | 153.6 |  | 28.8 |  | 182.4 |
Depreciation and amortization | — |  | — |  | 99.8 |  | 25.4 |  | 125.2 |
A reconciliation of operating income excluding special charges and, for 2018 and 2017, transaction and integration expenses, to operating income for 2019, 2018 and 2017 is as follows:
(millions) | Consumer |  | Flavor Solutions |  | Total
2019 |  |  |  |  |
Operating income excluding special charges | $ | 676.3 |  |  | $ | 302.2 |  |  | $ | 978.5 |
Less: Special charges | 13.1 |  |  | 7.7 |  |  | 20.8 |
Operating income | $ | 663.2 |  |  | $ | 294.5 |  |  | $ | 957.7 |
2018 |  |  |  |  |
Operating income excluding special charges and transaction and integration expenses | $ | 637.1 |  |  | $ | 292.8 |  |  | $ | 929.9 |
Less: Special charges | 10.0 |  |  | 6.3 |  |  | 16.3 |
Less: Transaction and integration expenses | 15.0 |  |  | 7.5 |  |  | 22.5 |
Operating income | $ | 612.1 |  |  | $ | 279.0 |  |  | $ | 891.1 |
2017 |  |  |  |  |
Operating income excluding special charges and transaction and integration expenses | $ | 562.4 |  |  | $ | 221.3 |  |  | $ | 783.7 |
Less: Special charges | 15.3 |  |  | 6.9 |  |  | 22.2 |
Less: Transaction and integration expenses included in cost of goods sold | 13.6 |  |  | 7.3 |  |  | 20.9 |
Less: Other transaction and integration expenses | 27.1 |  |  | 13.7 |  |  | 40.8 |
Operating income | $ | 506.4 |  |  | $ | 193.4 |  |  | $ | 699.8 |
Geographic Areas We have net sales and long-lived assets in the following geographic areas:
(millions) | United States | EMEA | Other countries | Total
2019 |  |  |  |
Net sales | $ | 3,226.3 |  | $ | 986.1 |  | $ | 1,135.0 |  | $ | 5,347.4 |
Long-lived assets | 6,397.0 |  | 1,032.4 |  | 875.4 |  | 8,304.8 |
2018 |  |  |  |
Net sales | $ | 3,145.0 |  | $ | 1,021.1 |  | $ | 1,136.7 |  | $ | 5,302.8 |
Long-lived assets | 6,411.0 |  | 1,057.1 |  | 874.6 |  | 8,342.7 |
2017 |  |  |  |
Net sales | $ | 2,748.7 |  | $ | 948.9 |  | $ | 1,032.7 |  | $ | 4,730.3 |
Long-lived assets | 6,329.1 |  | 1,125.3 |  | 881.2 |  | 8,335.6 |
Long-lived assets include property, plant and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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