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Business Segments | 3 Months Ended
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Feb. 29, 2020
Segment Reporting [Abstract] |
BUSINESS SEGMENTS | 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”, “Vahine”, “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, with the exception of our businesses in China and India, where foodservice sales are managed by and reported in our consumer segment. 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, we regard the products within each of our segments to be fairly homogenous. It is impracticable to segregate and identify sales and profits for each of these individual product lines. We measure segment performance based on operating income excluding special charges, as this activity is managed separately from the business segments. 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 internal reporting, evaluating performance or allocating capital. Because of manufacturing integration for certain products within the segments, products are not sold from one segment to another but rather inventory is transferred at cost. Intersegment sales are not material.
| Consumer |  | Flavor Solutions |  | Total
|  |  | (in millions) |  |
Three months ended February 29, 2020 |  |  |  |  |
Net sales | $ | 699.5 |  |  | $ | 512.5 |  |  | $ | 1,212.0 |
Operating income excluding special charges | 119.6 |  |  | 75.6 |  |  | 195.2 |
Income from unconsolidated operations | 7.8 |  |  | 2.6 |  |  | 10.4 |
Three months ended February 28, 2019 |  |  |  |  |
Net sales | $ | 744.9 |  |  | $ | 486.6 |  |  | $ | 1,231.5 |
Operating income excluding special charges | 135.3 |  |  | 63.7 |  |  | 199.0 |
Income from unconsolidated operations | 7.9 |  |  | 2.2 |  |  | 10.1 |
A reconciliation of operating income excluding special charges to operating income is as follows (in millions):
| Consumer |  | Flavor Solutions |  | Total
Three months ended February 29, 2020 |  |  |  |  |
Operating income excluding special charges | $ | 119.6 |  |  | $ | 75.6 |  |  | $ | 195.2 |
Less: Special charges | 0.6 |  |  | 0.4 |  |  | 1.0 |
Operating income | $ | 119.0 |  |  | $ | 75.2 |  |  | $ | 194.2 |
Three months ended February 28, 2019 |  |  |  |  |
Operating income excluding special charges | $ | 135.3 |  |  | $ | 63.7 |  |  | $ | 199.0 |
Less: Special charges | 1.5 |  |  | 0.6 |  |  | 2.1 |
Operating income | $ | 133.8 |  |  | $ | 63.1 |  |  | $ | 196.9 |
The following table sets forth our net sales, by geographic area, for the three months ended February 29, 2020 and February 28, 2019 (in millions):
| Americas | EMEA | Asia/Pacific |  | Total
Three months ended February 29, 2020 | $ | 819.6 |  | $ | 250.3 |  | $ | 142.1 |  |  | $ | 1,212.0 |
Three months ended February 28, 2019 | 807.0 |  | 242.8 |  | 181.7 |  |  | 1,231.5 |

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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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