XML 41 R23.htm IDEA: XBRL DOCUMENT
v3.21.4

Business Segments And Geographic Areas | 12 Months Ended
--- | ---
Nov. 30, 2021
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,” "Cholula," “Schwartz,” “Club House,” “Kamis,” "DaQiao," "Drogheria & Alimentari," "Stubb's," "OLD BAY" 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, 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. We measure segment performance based on operating income excluding special charges as this activity is managed separately from the business segments. We also excluded transaction and integration expenses related to our acquisitions, including the recent acquisitions of Cholula and FONA, 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 businesses. 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. 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%, 12% and 11% of consolidated sales in 2021, 2020, and 2019, respectively. Sales to one of our flavor solutions segment customers, PepsiCo, Inc., accounted for approximately 11%, 11%, and 10% of consolidated sales in 2021, 2020, and 2019, respectively. 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
2021 |  |  |  |  |
Net sales | $ | 3,937.5 |  | $ | 2,380.4 |  | $ | 6,317.9 |  | $ | — |  | $ | 6,317.9 |
Operating income excluding special charges and transaction and integration expenses | 804.9 |  | 296.6 |  | 1,101.5 |  | — |  | 1,101.5 |
Income from unconsolidated operations | 47.8 |  | 4.4 |  | 52.2 |  | — |  | 52.2 |
Assets | — |  | — |  | 12,185.1 |  | 720.7 |  | 12,905.8 |
Capital expenditures | — |  | — |  | 227.6 |  | 50.4 |  | 278.0 |
Depreciation and amortization | — |  | — |  | 147.0 |  | 39.3 |  | 186.3 |
2020 |  |  |  |  |
Net sales | $ | 3,596.7 |  | $ | 2,004.6 |  | $ | 5,601.3 |  | $ | — |  | $ | 5,601.3 |
Operating income excluding special charges and transaction and integration expenses | 780.9 |  | 237.9 |  | 1,018.8 |  | — |  | 1,018.8 |
Income from unconsolidated operations | 34.1 |  | 6.7 |  | 40.8 |  | — |  | 40.8 |
Assets | — |  | — |  | 11,339.2 |  | 750.5 |  | 12,089.7 |
Capital expenditures | — |  | — |  | 150.1 |  | 75.2 |  | 225.3 |
Depreciation and amortization | — |  | — |  | 123.9 |  | 41.1 |  | 165.0 |
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 |
A reconciliation of operating income excluding special charges and, for 2021 and 2020, transaction and integration expenses, to operating income for 2021, 2020 and 2019 is as follows:
(millions) | Consumer |  | Flavor Solutions |  | Total
2021 |  |  |  |  |
Operating income excluding special charges and transaction and integration expenses | $ | 804.9 |  |  | $ | 296.6 |  |  | $ | 1,101.5 |
Less: Special charges and transaction-related expenses included in cost of goods sold | 8.7 |  |  | 2.3 |  |  | 11.0 |
Less: Other special charges | 31.5 |  |  | 14.9 |  |  | 46.4 |
Less: Other transaction and integration expenses | 7.8 |  |  | 21.2 |  |  | 29.0 |
Operating income | $ | 756.9 |  |  | $ | 258.2 |  |  | $ | 1,015.1 |
2020 |  |  |  |  |
Operating income excluding special charges and transaction and integration expenses | $ | 780.9 |  |  | $ | 237.9 |  |  | $ | 1,018.8 |
Less: Special charges | 5.5 |  |  | 1.4 |  |  | 6.9 |
Less: Transaction and integration expenses | 7.5 |  |  | 4.9 |  |  | 12.4 |
Operating income | $ | 767.9 |  |  | $ | 231.6 |  |  | $ | 999.5 |
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 |
Geographic Areas We have net sales and long-lived assets in the following geographic areas:
(millions) | United States | EMEA | Other countries | Total
2021 |  |  |  |
Net sales | $ | 3,817.5 |  | $ | 1,191.3 |  | $ | 1,309.1 |  | $ | 6,317.9 |
Long-lived assets | 7,872.2 |  | 1,146.6 |  | 909.8 |  | 9,928.6 |
2020 |  |  |  |
Net sales | $ | 3,445.9 |  | $ | 1,046.7 |  | $ | 1,108.7 |  | $ | 5,601.3 |
Long-lived assets | 7,202.0 |  | 1,135.6 |  | 916.5 |  | 9,254.1 |
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 |
Long-lived assets include property, plant and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization.

X
- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingInformationProfitLossAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration