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Business Segments | 9 Months Ended
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Aug. 31, 2024
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, herbs, 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”, “OLD BAY”, “Lawry’s”, “Zatarain’s”, “Simply Asia”, “Thai Kitchen”, “Ducros”, “Vahine”, “Cholula”, “Schwartz”, “Club House”, “Kamis”, “DaQiao”, “La Drogheria”, “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 business in China, where foodservice sales are managed by and reported in our consumer segment. 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 purposes of internal reporting, performance evaluation, or capital allocation. 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 August 31, 2024 |  |  |  |  |
Net sales | $ | 937.4 |  |  | $ | 742.4 |  |  | $ | 1,679.8 |
Operating income excluding special charges | 186.8 |  |  | 101.6 |  |  | 288.4 |
Income from unconsolidated operations | 17.1 |  |  | 0.8 |  |  | 17.9 |
Three months ended August 31, 2023 |  |  |  |  |
Net sales | $ | 937.1 |  |  | $ | 747.6 |  |  | $ | 1,684.7 |
Operating income excluding special charges | 173.3 |  |  | 77.8 |  |  | 251.1 |
Income from unconsolidated operations | 11.9 |  |  | 1.5 |  |  | 13.4 |
Nine months ended August 31, 2024 |  |  |  |  |
Net sales | $ | 2,763.4 |  |  | $ | 2,162.3 |  |  | $ | 4,925.7 |
Operating income excluding special charges | 512.4 |  |  | 249.6 |  |  | 762.0 |
Income from unconsolidated operations | 54.7 |  |  | 1.3 |  |  | 56.0 |
Nine months ended August 31, 2023 |  |  |  |  |
Net sales | $ | 2,758.7 |  |  | $ | 2,150.7 |  |  | $ | 4,909.4 |
Operating income excluding special charges | 500.3 |  |  | 212.6 |  |  | 712.9 |
Income from unconsolidated operations | 36.5 |  |  | 1.2 |  |  | 37.7 |
A reconciliation of operating income excluding special charges to operating income is as follows (in millions):
| Consumer |  | Flavor Solutions |  | Total
Three months ended August 31, 2024 |  |  |  |  |
Operating income excluding special charges | $ | 186.8 |  |  | $ | 101.6 |  |  | $ | 288.4 |
Less: Special charges | 0.5 |  |  | 1.4 |  |  | 1.9 |
Operating income | $ | 186.3 |  |  | $ | 100.2 |  |  | $ | 286.5 |
Three months ended August 31, 2023 |  |  |  |  |
Operating income excluding special charges | $ | 173.3 |  |  | $ | 77.8 |  |  | $ | 251.1 |
Less: Special charges | 2.2 |  |  | 3.9 |  |  | 6.1 |
Operating income | $ | 171.1 |  |  | $ | 73.9 |  |  | $ | 245.0 |
Nine months ended August 31, 2024 |  |  |  |  |
Operating income excluding special charges | $ | 512.4 |  |  | $ | 249.6 |  |  | $ | 762.0 |
Less: Special charges | 3.8 |  |  | 4.1 |  |  | 7.9 |
Operating income | $ | 508.6 |  |  | $ | 245.5 |  |  | $ | 754.1 |
Nine months ended August 31, 2023
Operating income excluding special charges | $ | 500.3 |  |  | $ | 212.6 |  |  | $ | 712.9 |
Less: Special charges | 29.6 |  |  | 17.5 |  |  | 47.1 |
Operating income | $ | 470.7 |  |  | $ | 195.1 |  |  | $ | 665.8 |
Total segment operating income as disclosed in the preceding table represents our consolidated operating income. The reconciliation of that operating income to income from consolidated operations before income taxes, which includes interest expense and other income, net is presented on the consolidated income statement. The following table sets forth our net sales, by geographic area, for the three and nine months ended August 31, 2024 and 2023 (in millions):
| Americas | EMEA | APAC |  | Total
Three months ended August 31, 2024 | $ | 1,209.3 |  | $ | 295.4 |  | $ | 175.1 |  |  | $ | 1,679.8 |
Three months ended August 31, 2023 | 1,203.3 |  | 304.4 |  | 177.0 |  |  | 1,684.7 |
Nine months ended August 31, 2024 | 3,492.7 |  | 909.4 |  | 523.6 |  |  | 4,925.7 |
Nine months ended August 31, 2023 | 3,475.8 |  | 899.0 |  | 534.6 |  |  | 4,909.4 |

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- Definition The entire disclosure for reporting segments including data and tables. 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