10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K 

(Mark One)

☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended November 30, 2020

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 001-14920

McCORMICK & COMPANY, INCORPORATED

(Exact name of registrant as specified in its charter)

Maryland	52-0408290
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)

24 Schilling Road, Suite 1,	Hunt Valley,	Maryland	21031
(Address of principal executive offices)			(Zip Code)

Registrant’s telephone number, including area code: (410) 771-7301

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class	Trading Symbol(s)	Name of Each Exchange on Which Registered
Common Stock, No Par Value	MKC-V	New York Stock Exchange
Common Stock Non-Voting, No Par Value	MKC	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: Not applicable.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes   ☒  No  ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.

Yes   ☐  No  ☒

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒  No  ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Check one:

Large Accelerated Filer	☒		Accelerated Filer	☐
Non-accelerated Filer	☐	(Do not check if a smaller reporting company)	Smaller Reporting Company	☐
			Emerging Growth Company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark if the registrant has filed a report on and attestation on its management's assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☒

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes  ☐    No  ☒

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked prices of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

The aggregate market value of the Voting Common Stock held by non-affiliates at May 31, 2020: $1,601,653,059

The aggregate market value of the Non-Voting Common Stock held by non-affiliates at May 31, 2020: $21,709,733,991

Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.

Class	Number of Shares Outstanding	Date
Common Stock	17,999,331	December 31, 2020
Common Stock Non-Voting	248,943,617	December 31, 2020

DOCUMENTS INCORPORATED BY REFERENCE

Document	Part of 10-K into Which Incorporated
Proxy Statement for McCormick’s March 31, 2021 Annual Meeting of Stockholders (the “2021 Proxy Statement”)	Part III

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PART I.

As used herein, references to “McCormick,” “we,” “us” and “our” are to McCormick & Company, Incorporated and its consolidated subsidiaries or, as the context may require, McCormick & Company, Incorporated only.

ITEM 1. BUSINESS

McCormick is a global leader in flavor. The company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry–retailers, food manufacturers and foodservice businesses. We also are partners in a number of joint ventures that are involved in the manufacture and sale of flavorful products, the most significant of which is McCormick de Mexico. Our major sales, distribution and production facilities are located in North America, Europe and China. Additional facilities are based in Australia, India, Central America, Thailand and South Africa.

In early fiscal 2021, we completed the purchase of FONA International, LLC and certain of its affiliates (FONA), a privately held company. The purchase price was approximately $710 million, net of cash acquired, subject to certain customary purchase price adjustments. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets. The acquisition of FONA broadens our value-add offerings with products that are highly complementary to our existing portfolio. By combining the portfolios and infrastructures, we have added manufacturing capacity as well as greater scale and expect to accelerate our global flavor growth. At the time of the acquisition, annual sales of FONA were approximately $114 million. The results of FONA’s operations will be included in our financial statements as a component of our flavor solutions segment from the date of FONA’s acquisition on December 30, 2020. Unless expressly noted, our disclosures contained in this Annual Report on Form 10-K for the year ended November 30, 2020 exclude the impact of our acquisition of FONA.

On November 30, 2020, we completed the purchase of the parent company of Cholula Hot Sauce® (Cholula) from L Catterton. The purchase price was approximately $803 million, net of cash acquired, subject to certain customary purchase price adjustments. Cholula, a premium Mexican hot sauce brand, is a strong addition to McCormick’s global branded flavor portfolio, which broadens the Company’s offering in the high growth hot sauce category to consumers and foodservice operators and accelerates our condiment growth opportunities with a complementary authentic Mexican flavor hot sauce. At the time of the acquisition, annual sales of Cholula were approximately $96 million. The results of Cholula’s operations have been included in our financial statements as a component of our consumer and flavor solutions segments from the date of acquisition.

In August 2017, we completed the acquisition of Reckitt Benckiser's Food Division (RB Foods) from Reckitt Benckiser Group plc. The purchase price was approximately $4.2 billion. The market-leading brands we acquired from RB Foods included French’s®, Frank’s RedHot® and Cattlemen’s®, which are a natural strategic fit with our robust global branded flavor portfolio. We believe that these additions moved us to a leading position in the attractive U.S. Condiments category, while providing significant international growth opportunities for our consumer and flavor solutions segments.

Business Segments

We operate in two business segments, consumer and flavor solutions. Demand for flavor is growing globally, and across both segments we have the customer base and product breadth to participate in all types of eating occasions. Our products deliver flavor when cooking at home, dining out, purchasing a quick service meal or enjoying a snack. We offer our customers and consumers a range of products to meet the increasing demand for certain product attributes such as organic, reduced sodium, gluten-free and non-GMO (genetically modified organisms) and that extend from premium to value-priced.

Consistent with market conditions in each segment, our consumer segment has a higher overall profit margin than our flavor solutions segment. In 2020, the consumer segment contributed approximately 64% of consolidated net sales and 77% of consolidated operating income, and the flavor solutions segment contributed approximately 36% of consolidated net sales and 23% of consolidated operating income.

Consumer Segment. From locations around the world, our brands reach consumers in approximately 160 countries and territories. Our leading brands in the Americas include McCormick®, French’s®, Frank’s RedHot®, Lawry’s® Cholula Hot Sauce® and Club House®, as well as brands such as Gourmet Garden® and OLD BAY®. We also market authentic regional and ethnic brands such as Zatarain’s®, Stubb's®, Thai Kitchen® and Simply Asia®. In the Europe, Middle East and Africa (EMEA) region, our major brands include the Ducros®, Schwartz®, Kamis® and Drogheria &

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Alimentari® brands of spices, herbs and seasonings and an extensive line of Vahiné® brand dessert items. In China, we market our products under the McCormick and DaQiao® brands. In Australia, we market our spices and seasonings under the McCormick brand, our dessert products under the Aeroplane® brand, and packaged chilled herbs under the Gourmet Garden brand. In India, we market our spices and rice products under the Kohinoor® brand. Elsewhere in the Asia/Pacific region, we market our products under the McCormick brand as well as other brands.

Approximately half of our consumer segment sales are spices, herbs and seasonings. For these products, we are a category leader in our primary markets. There are numerous competitive brands of spices, herbs and seasonings in the U.S. and additional brands in international markets. Some are owned by large food manufacturers, while others are supplied by small privately-owned companies. In this competitive environment, we are leading with innovation and brand marketing, and applying our analytical tools to help customers optimize the profitability of their spice and seasoning sales while simultaneously working to increase our sales and profit.

Our customers span a variety of retailers that include grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce retailers served directly and indirectly through distributors or wholesalers. In addition to marketing our branded products to these customers, we are also a leading supplier of private label items, also known as store brands. In our businesses in China and India, foodservice sales are managed by and reported in our consumer segment.

Flavor Solutions Segment. In our flavor solutions segment, we provide a wide range of products to multinational food manufacturers and foodservice customers. The foodservice customers are supplied with branded, packaged products both directly by us 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. We supply food manufacturers and foodservice customers with customized flavor solutions, and many of these customer relationships have been active for decades. Our range of flavor solutions remains one of the broadest in the industry and includes seasoning blends, spices and herbs, condiments, coating systems and compound flavors. In addition to a broad range of flavor solutions, our long-standing customer relationships are evidence of our effectiveness in building customer intimacy. Our customers benefit from our expertise in many areas, including sensory testing, culinary research, food safety and flavor application.

Our flavor solutions segment has a number of competitors. Some tend to specialize in a particular range of products and have a limited geographic reach. Other competitors include larger publicly held flavor companies that are more global in nature, but which also tend to specialize in a narrower range of flavor solutions than McCormick.

Raw Materials

The most significant raw materials used in our business are dairy products, pepper, vanilla, capsicums (red peppers and paprika), garlic, onion, rice and wheat flour. Pepper and other spices and herbs are generally sourced from countries other than the United States. Other raw materials, like dairy products and onion, are primarily sourced locally, either within the United States or from our international locations. Because the raw materials are agricultural products, they are subject to fluctuations in market price and availability caused by weather, growing and harvesting conditions, market conditions, and other factors beyond our control.

We respond to this volatility in a number of ways, including strategic raw material purchases, purchases of raw material for future delivery, customer price adjustments and cost savings from our Comprehensive Continuous Improvement (CCI) program.

Customers

Our products are sold directly to customers and also through brokers, wholesalers and distributors. In the consumer segment, products are then sold to consumers under a number of brands through a variety of retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce. In the flavor solutions segment, products are used by food and beverage manufacturers as ingredients for their finished goods and by foodservice customers as ingredients for menu items, as well as provided to their own customers for use in dine-in and take-out eating occasions, all to enhance the flavor of their foods. Customers for the flavor solutions segment include food manufacturers and the foodservice industry supplied both directly and indirectly through distributors.

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 12% of consolidated sales in 2020 and 11% of consolidated sales in 2019 and 2018. Sales to one of our flavor solutions segment customers, PepsiCo, Inc., accounted for approximately 11% of consolidated sales in 2020 and 10% of consolidated sales in both 2019 and 2018. In 2020, 2019 and 2018,

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the top three customers in our flavor solutions segment represented between 49% and 52% of our global flavor solutions sales.

Trademarks, Licenses and Patents

We own a number of trademark registrations. Although in the aggregate these trademarks are material to our business, the loss of any one of those trademarks, with the exception of our “McCormick,” “French’s ,” “Frank’s RedHot,” “Lawry’s,” “Zatarain’s,” “Cholula,” “Stubb's,” “Club House,” “Ducros,” “Schwartz,” “Vahiné,” "OLD BAY," "Simply Asia," "Thai Kitchen," "Kitchen Basics," “Kamis,” “Drogheria & Alimentari,” "DaQiao," “Kohinoor” and "Gourmet Garden" trademarks, would not have a material adverse effect on our business. The “Mc – McCormick” trademark is extensively used by us in connection with the sale of our food products in the U.S. and certain non-U.S. markets. The terms of the trademark registrations are as prescribed by law, and the registrations will be renewed for as long as we deem them to be useful.

We have entered into a number of license agreements authorizing the use of our trademarks by affiliated and non-affiliated entities. The loss of these license agreements would not have a material adverse effect on our business. The term of the license agreements is generally three to five years or until such time as either party terminates the agreement. Those agreements with specific terms are renewable upon agreement of the parties.

We also own various patents, none of which are individually material to our business.

Seasonality

Due to seasonal factors inherent in our business, our sales, income and cash from operations generally are lower in the first two quarters of the fiscal year, increase in the third quarter and are significantly higher in the fourth quarter due to the holiday season. This seasonality reflects customer and consumer buying patterns, primarily in the consumer segment.

Working Capital

In order to meet increased demand for our consumer products during our fourth quarter, we usually build our inventories during the third quarter of the fiscal year. We generally finance working capital items (inventory and receivables) through short-term borrowings, which include the use of lines of credit and the issuance of commercial paper. For a description of our liquidity and capital resources, see note 6 of the accompanying financial statements and the “Liquidity and Financial Condition” section of “Management’s Discussion and Analysis.”

Competition

Each segment operates in markets around the world that are highly competitive. In this competitive environment, our growth strategies include customer intimacy and product innovation based on consumer insights. Additionally, in the consumer segment, we are building brand recognition and loyalty through advertising and promotions.

Governmental Regulation

We are subject to numerous laws and regulations around the world that apply to our global businesses. In the United States, the safety, production, transportation, distribution, advertising, labeling and sale of many of our products and their ingredients are subject to the Federal Food, Drug, and Cosmetic Act; the Food Safety Modernization Act; the Federal Trade Commission Act; state consumer protection laws; competition laws, anti-corruption laws, customs and trade laws; federal, state and local workplace health and safety laws; various federal, state and local environmental protection laws; and various other federal, state and local statutes and regulations. Outside the United States, our business is subject to numerous similar statutes, laws and regulatory requirements.

Human Capital

We believe in the Power of People – our employees and customers across the world. Our high-performance culture is rooted in our shared values and respect for all contributions of every employee. Our key human capital objectives are to attract, retain and develop the highest quality talent. We employ various human resource programs in support of these objectives. We had approximately 13,000 full-time employees worldwide as of November 30, 2020. Our operations have not been affected significantly by work stoppages, other than those associated with temporary closures of plants related to the COVID-19 pandemic in fiscal 2020 and, in the opinion of management, employee relations are good. In 2020, our employees demonstrated resiliency, agility and engagement in support of business continuity despite the challenges that arose in the pandemic. We have approximately 300 employees in the United States who are covered by a collective bargaining contract, which is subject to renegotiation upon its expiration in 2021. At our subsidiaries outside the U.S., approximately 2,500 employees are covered by collective bargaining agreements or similar arrangements.

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We believe diversity and inclusion are at the core of our values and strategic business priorities. Throughout our business, we champion equality, supporting parity for women and under-represented groups as we work to create ethical, safe and supportive workplaces where our employees thrive. We believe a diverse and inclusive workplace results in business growth and encourages increased innovation, retention of talent and a more engaged workforce. We have various employee ambassador groups that provide a supportive, collaborative space for employees to come together to promote inclusion. Respect for human rights is fundamental to our business and its commitment to ethical business conduct.

We measure employee engagement on an ongoing basis to solicit feedback and understand views of our employees, work environment and culture. The results from engagement surveys are used to implement programs and processes designed to enhance employee engagement and improve the employee experience.

We are committed to the safety, health, and security of our employees. We believe a hazard-free environment is a critical enabler for the success of our business. Throughout our operations, we strive to ensure that all of our employees have access to safe workplaces that allow them to succeed in their jobs.

Information about our Executive Officers

In addition to the executive officers described in the 2021 Proxy Statement incorporated by reference in Part III, Item 10 of this Report, the following individuals are also executive officers of McCormick: Lisa B. Manzone and Nneka L. Rimmer.

Ms. Manzone is 56 years old and, during the last five years, has held the following positions with McCormick: June 2015 to present – Senior Vice President, Human Relations; January 2015 to June 2015 – Vice President Global Human Relations; January 2013 to January 2015 – Vice President Compensation and Benefits.

Ms. Rimmer is 49 years old and, during the last five years, has held the following positions with McCormick: August 2020 to present – President Global Flavors and Extracts (part of our flavor solutions segment); February 2019 to August 2020 – Senior Vice President, Business Transformation; August 2017 to February 2019 – Senior Vice President, Strategy and Global Enablement; April 2015 to August 2017 – Senior Vice President, Corporate Strategy and Development.

Operations Outside of the U.S.

We are subject in varying degrees to certain risks typically associated with a global business, such as local economic and market conditions, exchange rate fluctuations, and restrictions on investments, royalties and dividends. In fiscal year 2020, approximately 40% of sales were from non-U.S. operations. For information on how we manage some of these risks, see the “Market Risk Sensitivity” section of “Management’s Discussion and Analysis.”

Forward-Looking Information

Certain statements contained in this report, including statements concerning expected performance such as those relating to net sales, gross margin, earnings, cost savings, transaction and integration expenses, special charges, acquisitions, brand marketing support, volume and product mix, income tax expense, and the impact of foreign currency rates are “forward-looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements may be identified by the use of words such as “may,” “will,” “expect,” "should," "anticipate," "intend," “believe” and “plan.” These statements may relate to: the impact of the COVID-19 pandemic on our business, suppliers, consumers, customers, and employees; disruptions or inefficiencies in the supply chain, including any impact of COVID-19; the expected results of operations of businesses acquired by the company, including the acquisitions of Cholula and FONA; the expected impact of material costs and pricing actions on the company's results of operations and gross margins; the expected impact of productivity improvements, including those associated with our Comprehensive Continuous Improvement (CCI) program and global enablement initiative; expected working capital improvements; expectations regarding growth potential in various geographies and markets, including the impact from customer, channel, category, and e-commerce expansion; expected trends in net sales and earnings performance and other financial measures; the expected timing and costs of implementing our business transformation initiative, which includes the implementation of a global enterprise resource planning (ERP) system; the expected impact of accounting pronouncements; the expectations of pension and postretirement plan contributions and anticipated charges associated with those plans; the holding period and market risks associated with financial instruments; the impact of foreign exchange fluctuations; the adequacy of internally generated funds and existing sources of liquidity, such as the availability of bank financing; the anticipated sufficiency of future cash flows to enable the payments of interest and repayment of short- and long-term debt as well as quarterly dividends and the ability to issue additional debt or equity securities; and expectations regarding purchasing shares of McCormick's common stock under the existing repurchase authorization.

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These and other forward-looking statements are based on management’s current views and assumptions and involve risks and uncertainties that could significantly affect expected results. Results may be materially affected by factors such as: the company's ability to drive revenue growth; damage to the company's reputation or brand name; loss of brand relevance; increased private label use; product quality, labeling, or safety concerns; negative publicity about our products; actions by, and the financial condition of, competitors and customers; the longevity of mutually beneficial relationships with our large customers; the ability to identify, interpret and react to changes in consumer preference and demand; business interruptions due to natural disasters, unexpected events or public health crisis, including COVID-19; issues affecting the company's supply chain and raw materials, including fluctuations in the cost and availability of raw and packaging materials; government regulation, and changes in legal and regulatory requirements and enforcement practices; the lack of successful acquisition and integration of new businesses, including the acquisitions of Cholula and FONA; global economic and financial conditions generally, including the on-going impact of the exit of the United Kingdom (U.K.) from the European Union, availability of financing, interest and inflation rates, and the imposition of tariffs, quotas, trade barriers and other similar restrictions; foreign currency fluctuations; the effects of increased level of debt service following the Cholula and FONA acquisitions as well as the effects that such increased debt service may have on the company's ability to borrow or the cost of any such additional borrowing, our credit rating, and our ability to react to certain economic and industry conditions; impairments of indefinite-lived intangible assets; assumptions we have made regarding the investment return on retirement plan assets, and the costs associated with pension obligations; the stability of credit and capital markets; risks associated with the company's information technology systems, including the threat of data breaches and cyber-attacks; the company's inability to successfully implement our business transformation initiative; fundamental changes in tax laws; including interpretations and assumptions we have made, and guidance that may be issued, regarding the U.S. Tax Act enacted on December 22, 2017 and volatility in our effective tax rate; climate change; infringement of intellectual property rights, and those of customers; litigation, legal and administrative proceedings; the company's inability to achieve expected and/or needed cost savings or margin improvements; negative employee relations; and other risks described herein under Part I, Item 1A "Risk Factors."

Actual results could differ materially from those projected in the forward-looking statements. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

Available Information

Our principal corporate internet website address is: www.mccormickcorporation.com. We make available free of charge through our website our Annual Report on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act as soon as reasonably practicable after such documents are electronically filed with, or furnished to, the United States Securities and Exchange Commission (the SEC). The SEC maintains an internet website at www.sec.gov that contains reports, proxy and information statements, and other information regarding McCormick. Our website also includes our Corporate Governance Guidelines, Business Ethics Policy and charters of the Audit Committee, Compensation & Human Capital Committee, and Nominating/Corporate Governance Committee of our Board of Directors.

ITEM 1A. RISK FACTORS

The following are certain risk factors that could affect our business, financial condition and results of operations. These risk factors should be considered in connection with evaluating the forward-looking statements contained in this Annual Report on Form 10-K because these factors could cause the actual results and conditions to differ materially from those projected in forward-looking statements. Before you buy our Common Stock or Common Stock Non-Voting, you should know that making such an investment involves risks, including the risks described below. Additional risks and uncertainties that are not presently known to us or are currently deemed to be immaterial also may materially adversely affect our business, financial condition, or results of operations in the future. If any of the risks actually occur, our business, financial condition or results of operations could be negatively affected. In that case, the trading price of our securities could decline, and you may lose part or all of your investment.

Risks Related to Our Company, Business and Operations

Our operations may be adversely impacted as a result of pandemic outbreaks, including COVID-19.

In December 2019, COVID-19, a strain of novel coronavirus, was first reported in Wuhan, China, resulting in thousands of confirmed cases of the disease in China. By January 2020, the Chinese government implemented a quarantine protocol for Wuhan and implemented other restrictions for other major Chinese cities, including

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mandatory business closures, social distancing measures, and various travel restrictions. In March 2020, as COVID-19 spread outside of China, significantly impacting the rest of the world, the World Health Organization designated the outbreak as a global pandemic. The effects of COVID-19 and related actions to attempt to control its spread significantly impacted not only our operating results but also the global economy. COVID-19 has impacted and continues to impact our customers, our operations, consumers and the global economy as discussed below. However, given the evolving health, economic, social, and governmental environments, the breadth and duration of such impact remains uncertain.

The COVID-19 pandemic has affected, and continues to affect, our operations, major facilities, and the health of our employees and consumers. The production of certain of our products in our Americas, EMEA, and Asia/Pacific geographic regions are concentrated in a single manufacturing site within each region. To mitigate the spread of COVID-19, many governments have implemented quarantines and significant restrictions on travel as well as work restrictions that prohibited many employees from going to work. As a result, we temporarily closed certain manufacturing and other facilities for limited periods in 2020. Our results have been and we expect will continue to be adversely impacted by these closures and other actions taken to contain or treat the impact of COVID-19, and the extent of such impact will depend upon future developments, which are highly uncertain and cannot be predicted. COVID-19 continues to interfere with general commercial activity related to our supply chain and customer base, which could have a material adverse effect on our business, financial condition, or results of operations. In mid-2020, we saw some loosening of government-mandated COVID-19 restrictions in certain locales in response to improved COVID-19 infection levels. However, upon worsening COVID-19 infection levels in certain localities in late fiscal 2020 and in early fiscal 2021, local governmental authorities have either re-imposed some or all of earlier restrictions or imposed other restrictions, all in an effort to prevent the spread of COVID-19.

In early fiscal 2021, vaccines for combatting COVID-19 were approved by health agencies in certain countries/regions in which we operate (including the U.S., U.K., European Union, Canada and Mexico) and began to be administered. However, initial quantities of vaccines are limited and vaccine distributions, controlled by local authorities, are being allocated, generally first to front-line health care workers and other essential workers and next to those members of individual populations believed most susceptible to severe effects from COVID-19. Full administration of the COVID-19 vaccines is unlikely to occur in most jurisdictions until mid- to late- 2021. The impact of COVID-19, including the impact of restrictions imposed to combat its spread, could result in additional businesses being shut down, additional work restrictions and supply chains being interrupted, slowed, or rendered inoperable. As a result, it may be even more challenging to obtain and process raw materials to support our business needs, and more individuals could become ill, quarantined or otherwise unable to work and/or travel due to health reasons or governmental restrictions. Also, governments may impose other laws, regulations or taxes which could adversely impact our business, financial condition or results of operations. Further, as some of our customers’ businesses are similarly affected, they might delay or reduce purchases from us, which could adversely affect our results of our business, financial condition or results of operations. The potential effects of COVID-19 also could impact many of the other risk factors described herein, but given the evolving health, economic, social and governmental environments, such potential impact remains uncertain. While we expect the impacts of COVID-19 to continue to have an effect on our business, financial condition and results of operations, we are unable to predict the extent or nature of these impacts at this time.

Damage to our reputation or brand name, loss of brand relevance, increase in use of private label or other competitive brands by customers or consumers, or product quality or safety concerns could negatively impact our business, financial condition or results of operations.

We have many iconic brands with long-standing consumer recognition. Our success depends on our ability to maintain our brand image for our existing products, extend our brands to new platforms, and expand our brand image with new product offerings.

We continually make efforts to maintain and improve relationships with our customers and consumers and to increase awareness and relevance of our brands through effective marketing and other measures. From time to time, our customers evaluate their mix of product offerings, and consumers have the option to purchase private label or other competitive products instead of our branded products. In the event that we are unable to supply our products to customers in the time frame and quantities that they desire, whether due to increased demand or other factors, our customers may discontinue all or a portion of their purchases from us and source competitive brands. If a significant portion of our branded business was switched to private label or competitive products, it could have a material negative impact on our consumer segment.

Our reputation for manufacturing high-quality products is widely recognized. In order to safeguard that reputation,

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we have adopted rigorous quality assurance and quality control procedures which are designed to ensure the safety of our products. A serious breach of our quality assurance or quality control procedures, deterioration of our quality image, impairment of our customer or consumer relationships or failure to adequately protect the relevance of our brands may lead to litigation, customers purchasing from our competitors or consumers purchasing other brands or private label items that may or may not be manufactured by us, any of which could have a material negative impact on our business, financial condition or results of operations.

The food industry generally is subject to risks posed by food spoilage and contamination, product tampering, product recall, import alerts and consumer product liability claims. For instance, we may be required to recall certain of our products should they be mislabeled, contaminated or damaged, and certain of our raw materials could be blocked from entering the country if they were subject to government-imposed actions. We also may become involved in lawsuits and legal proceedings if it is alleged that the consumption of any of our products could cause injury or illness, or that any of our products are mislabeled or fail to meet applicable legal requirements (even if the allegation is untrue). A product recall, import alert or an adverse result in any such litigation, or negative perceptions regarding food products and ingredients, could result in our having to pay fines or damages, incur additional costs or cause customers and consumers in our principal markets to lose confidence in the safety and quality of certain products or ingredients, any of which could have a negative effect on our business or financial results and, depending upon the significance of the affected product, that negative effect could be material to our business or financial results. Negative publicity about these concerns, whether or not valid, may discourage customers and consumers from buying our products or cause disruptions in production or distribution of our products and adversely affect our business, financial condition or results of operations.

The rising popularity of social networking and other consumer-oriented technologies has increased the speed and accessibility of information dissemination (whether or not accurate), and, as a result, negative, inaccurate, or misleading posts or comments on websites may generate adverse publicity that could damage our reputation or brands.

Customer consolidation, and competitive, economic and other pressures facing our customers, may put pressure on our operating margins and profitability.

A number of our customers, such as supermarkets, warehouse clubs and food distributors, have consolidated in recent years and consolidation could continue. Such consolidation could present a challenge to margin growth and profitability in that it has produced large, sophisticated customers with increased buying power who are more capable of operating with reduced inventories; resisting price increases; demanding lower pricing, increased promotional programs and specifically tailored products; and shifting shelf space currently used for our products to private label and other competitive products. The economic and competitive landscape for our customers is constantly changing, such as the emergence of new sales channels like e-commerce, and our customers' responses to those changes could impact our business. Our flavor solutions segment may be impacted if the reputation or perception of the customers of our flavor solutions segment declines. These factors and others could have an adverse impact on our business, financial condition or results of operations.

The inability to maintain mutually beneficial relationships with large customers could adversely affect our business.

We have a number of major customers, including two large customers that, in the aggregate, constituted approximately 23% of our consolidated sales in 2020. The loss of either of these large customers or a material negative change in our relationship with these large customers or other major customers could have an adverse effect on our business.

Disruption of our supply chain and issues regarding procurement of raw materials may negatively impact us.

Our purchases of raw materials are subject to fluctuations in market price and availability caused by weather, growing and harvesting conditions, market conditions, governmental actions and other factors beyond our control. The most significant raw materials used by us in our business are dairy products, pepper, vanilla, capsicums (red peppers and paprika), garlic, onion, rice and wheat flour. While future price movements of raw material costs are uncertain, we seek to mitigate the market price risk in a number of ways, including strategic raw material purchases, purchases of raw material for future delivery, customer price adjustments and cost savings from our CCI program. We generally have not used derivatives to manage the volatility related to this risk. To the extent that we have used derivatives for this purpose, it has not been material to our business. Any actions we take in response to market price fluctuations may not effectively limit or eliminate our exposure to changes in raw material prices. Therefore, we

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cannot provide assurance that future raw material price fluctuations will not have a negative impact on our business, financial condition or operating results.

In addition, we may have very little opportunity to mitigate the risk of availability of certain raw materials due to the effect of weather on crop yield, government actions, political unrest in producing countries, action or inaction by suppliers in response to laws and regulations, changes in agricultural programs and other factors beyond our control. Therefore, we cannot provide assurance that future raw material availability will not have a negative impact on our business, financial condition or operating results.

Political, socio-economic and cultural conditions, as well as disruptions caused by terrorist activities or otherwise, could also create additional risks for regulatory compliance. Although we have adopted rigorous quality assurance and quality control procedures which are designed to ensure the safety of our imported products, we cannot provide assurance that such events will not have a negative impact on our business, financial condition or operating results.

Our profitability may suffer as a result of competition in our markets.

The food industry is intensely competitive. Competition in our product categories is based on price, product innovation, product quality, brand recognition and loyalty, effectiveness of marketing and promotional activity, and the ability to identify and satisfy consumer preferences. From time to time, we may need to reduce the prices for some of our products to respond to competitive and customer pressures, which may adversely affect our profitability. Such pressures could reduce our ability to take appropriate remedial action to address commodity and other cost increases.

Our operations may be impaired as a result of disasters, business interruptions or similar events.

We could have an interruption in our business, loss of inventory or data, or be rendered unable to accept and fulfill customer orders as a result of a natural disaster, catastrophic event, epidemic or computer system failure. Natural disasters could include an earthquake, fire, flood, tornado or severe storm. A catastrophic event could include a terrorist attack. An epidemic could affect our operations, major facilities or employees’ and consumers’ health. In addition, some of our inventory and production facilities are located in areas that are susceptible to harsh weather; a major storm, heavy snowfall or other similar event could prevent us from delivering products in a timely manner. Production of certain of our products is concentrated in a single manufacturing site.

We cannot provide assurance that our disaster recovery plan will address all of the issues we may encounter in the event of a disaster or other unanticipated issue, and our business interruption insurance may not adequately compensate us for losses that may occur from any of the foregoing. In the event that a natural disaster, terrorist attack or other catastrophic event were to destroy any part of our facilities or interrupt our operations for any extended period of time, or if harsh weather or health conditions prevent us from delivering products in a timely manner, our business, financial condition or operating results could be adversely affected.

We may not be able to successfully consummate and manage ongoing acquisition, joint venture and divestiture activities which could have an impact on our results.

From time to time, we may acquire other businesses and, based on an evaluation of our business portfolio, divest existing businesses. These acquisitions, joint ventures and divestitures may present financial, managerial and operational challenges, including diversion of management attention from existing businesses, difficulty with integrating or separating personnel and financial and other systems, increased expenses and raw material costs, assumption of unknown liabilities and indemnities, and potential disputes with the buyers or sellers. In addition, we may be required to incur asset impairment charges (including charges related to goodwill and other intangible assets) in connection with acquired businesses, which may reduce our profitability. If we are unable to consummate such transactions, or successfully integrate and grow acquisitions and achieve contemplated revenue synergies and cost savings, our financial results could be adversely affected. Additionally, joint ventures inherently involve a lesser degree of control over business operations, thereby potentially increasing the financial, legal, operational, and/or compliance risks.

An impairment of the carrying value of goodwill or other indefinite-lived intangible assets could adversely affect our results.

As of November 30, 2020, we had approximately $5.0 billion of goodwill and approximately $3.0 billion of other indefinite-lived intangible assets. Goodwill and indefinite-lived intangible assets are initially recorded at fair value and not amortized but are tested for impairment at least annually or more frequently if impairment indicators arise. We test goodwill at the reporting unit level by comparing the carrying value of the net assets of the reporting unit, including goodwill, to the unit's fair value. Similarly, we test indefinite-lived intangible assets by comparing the fair

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value of those assets to their carrying values. If the carrying values of the reporting unit or indefinite-lived intangible assets exceed their fair value, the goodwill or indefinite-lived intangible assets are considered impaired and reduced to their implied fair value or fair value, respectively. Factors that could result in an impairment include a change in revenue growth rates, operating margins, weighted average cost of capital, future economic and market conditions or assumed royalty rates. The impairment of our goodwill or indefinite-lived intangible assets would have a negative impact on our consolidated results of operations.

Because indefinite-lived intangible assets are recorded at fair value at the date of acquisition of the related business, indefinite-lived intangible assets associated with recent business acquisitions, particularly those acquired in recent low interest rate environments, such as Cholula and FONA, are more susceptible to impairment in periods of rising interest rates than indefinite-lived intangible assets related to businesses acquired in periods of higher interest rates.

Streamlining actions to reduce fixed costs, simplify or improve processes, and improve our competitiveness may have a negative effect on employee relations.

We regularly evaluate whether to implement changes to our organization structure to reduce fixed costs, simplify or improve processes, and improve our competitiveness, and we expect to continue to evaluate such actions in the future. From time to time, those changes are of such significance that we may transfer production from one manufacturing facility to another; transfer certain selling and administrative functions from one location to another; eliminate certain manufacturing, selling and administrative positions; and exit certain businesses or lines of business. These actions may result in a deterioration of employee relations at the impacted locations or elsewhere in McCormick.

If we are unable to fully realize the benefits from our CCI program, our financial results could be negatively affected.

Our future success depends in part on our ability to be an efficient producer in a highly competitive industry. Any failure by us to achieve our planned cost savings and efficiencies under our CCI program, an ongoing initiative to improve productivity and reduce costs throughout the organization, or other similar programs, could have an adverse effect on our business, results of operations and financial position.

Uncertain global economic conditions expose us to credit risks from customers and counterparties.

Consolidations in some of the industries in which our customers operate have created larger customers, some of which are highly leveraged. In addition, competition has increased with the growth in alternative channels through our customer base. These factors have caused some customers to be less profitable and increased our exposure to credit risk. Current credit markets are volatile, and some of our customers and counterparties are highly leveraged. A significant adverse change in the financial and/or credit position of a customer or counterparty could require us to assume greater credit risk relating to that customer or counterparty and could limit our ability to collect receivables. This could have an adverse impact on our financial condition and liquidity.

Fluctuations in foreign currency markets may negatively impact us.

We are exposed to fluctuations in foreign currency in the following main areas: cash flows related to raw material purchases; the translation of foreign currency earnings to U.S. dollars; the effects of foreign currency on loans between subsidiaries and unconsolidated affiliates and on cash flows related to repatriation of earnings of unconsolidated affiliates. Primary exposures include the U.S. dollar versus the Euro, British pound sterling, Canadian dollar, Polish zloty, Australian dollar, Mexican peso, Swiss franc, Chinese renminbi, Indian rupee and Thai baht, as well as the Euro versus the British pound sterling and Australian dollar, and finally the Canadian dollar versus British pound sterling. We routinely enter into foreign currency exchange contracts to facilitate managing certain of these foreign currency risks. However, these contracts may not effectively limit or eliminate our exposure to a decline in operating results due to foreign currency exchange changes. Therefore, we cannot provide assurance that future exchange rate fluctuations will not have a negative impact on our business, financial position or operating results.

The on-going effects of the decision by British voters to exit the European Union may negatively impact our operations.

On December 24, 2020, the U.K. and the European Union announced an agreement on the EU-UK Trade and Cooperation Agreement (the EU-UK trade deal) that took effect on January 1, 2021.The trade deal was formally approved by the U.K. House of Commons on December 30, 2020 and is expected to be formally approved by the

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European Union legislature in March 2021. While the EU-UK trade deal has removed uncertainty and a significant amount of financial risk associated with the U.K.’s exit from the European Union, we are still assessing its details and related impact on our U.K business and other operations. We believe that the new trading relationship between the U.K and the European Union will result in increased costs of goods imported into the U.K. from the European Union and exported from the U.K. into the European Union. The movement of goods between the U.K. and the European Union will continue to be subject to additional inspections and documentation checks, leading to possible delays at ports of entry and departure. Also, there will be additional costs related to goods that are deemed to originate outside of the U.K. or European Union, and for which the originating country has no trade agreement with the U.K. Our ability to increase pricing of our products in light of increased costs is uncertain and, to the extent we are unable to fully do so, our profitability will decline.

We face risks associated with certain pension assets and obligations.

We hold investments in equity and debt securities in our qualified defined benefit pension plans and in a rabbi trust for our U.S. non-qualified pension plan. Deterioration in the value of plan assets resulting from a general financial downturn or otherwise, or an increase in the actuarial valuation of the plans' liability due to a low interest rate environment, could cause (or increase) an underfunded status of our defined benefit pension plans, thereby increasing our obligation to make contributions to the plans. An obligation to make contributions to pension plans could reduce the cash available for working capital and other corporate uses, and may have an adverse impact on our operations, financial condition and liquidity.

Climate change may negatively affect our business, financial condition and results of operations.

Unseasonable or unusual weather or long-term climate changes may negatively impact the price or availability of spices, herbs and other raw materials. Scientific consensus shows that greenhouse gases in the atmosphere have an adverse impact on global temperatures, weather patterns and the frequency and severity of extreme weather and natural disasters. In the event that such climate change has a negative effect on agricultural productivity or practices, we may be subject to decreased availability or less favorable pricing for certain commodities that are necessary for our products. In addition, such climate change may result in modifications to the eating preferences of the ultimate consumers of certain of our products, which may also unfavorably impact our sales and profitability.

Risks Relating to Credit and Capital Markets, Our Credit Rating, Borrowings and Dividends

Increases in interest rates or changes in our credit ratings may negatively impact us.

On November 30, 2020, we had total outstanding variable rate debt of approximately $950 million, including $887 million of short-term borrowings, at a weighted-average interest rate of approximately 0.3%. The interest rates under our term loans and revolving credit facilities can vary based on our credit ratings. Our policy is to manage our interest rate risk by entering into both fixed and variable rate debt arrangements. We also use interest rate swaps to minimize worldwide financing cost and to achieve a desired mix of fixed and variable rate debt. We utilize derivative financial instruments to enhance our ability to manage risk, including interest rate exposures that exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instruments. Our use of derivative financial instruments is monitored through regular communication with senior management and the utilization of written guidelines. However, our use of these instruments may not effectively limit or eliminate our exposure to changes in interest rates. Therefore, we cannot provide assurance that future credit rating or interest rate changes will not have a material negative impact on our business, financial position or operating results.

Our credit ratings impact the cost and availability of future borrowings and, accordingly, our cost of capital.

Our credit ratings reflect each rating organization's opinion of our financial strength, operating performance and ability to meet our debt obligations. Our credit ratings were downgraded following our financing of the acquisition of RB Foods in August 2017 and any reduction in our credit ratings may limit our ability to borrow at interest rates consistent with the interest rates that were available to us prior to that acquisition and the related financing transactions. If our credit ratings are downgraded or put on watch for a potential downgrade, we may not be able to sell additional debt securities or borrow money in the amounts, at the times or interest rates, or upon the more favorable terms and conditions that might be available if our current credit ratings were maintained.

We have incurred additional indebtedness to finance the acquisition of Cholula and FONA that may limit our ability to, among other matters, issue additional indebtedness, meet our debt service requirements, react to rising interest rates, comply with certain covenants and compete with less highly leveraged competitors.

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After financing our acquisition of Cholula on November 30, 2020, we have a significant amount of indebtedness outstanding. As of November 30, 2020, the indebtedness of McCormick and its subsidiaries is approximately $4.9 billion. Subsequent to November 30, 2020, we acquired FONA for $710 million, which we funded with cash and commercial paper borrowings. This substantial level of indebtedness could have important consequences to our business, including, but not limited to:

•increasing our debt service obligations, making it more difficult for us to satisfy our obligations;

•limiting our ability to borrow additional funds, including an anticipated long-term debt financing in fiscal 2021 of the Cholula and FONA acquisition indebtedness together with our 3.9% notes in the amount of $250 million that mature in July 2021, and increasing the cost of any such borrowing;

•increasing our exposure to negative fluctuations in interest rates;

•subjecting us to financial and other restrictive covenants, the non-compliance with which could result in an event of default;

•increasing our vulnerability to, and reducing our flexibility to respond to, general adverse economic and industry conditions;

•limiting our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and

•placing us at a competitive disadvantage as compared to our competitors, to the extent that they are not as highly leveraged.

The deterioration of credit and capital markets may adversely affect our access to sources of funding.

We rely on our revolving credit facilities, or borrowings backed by these facilities, to fund a portion of our seasonal working capital needs and other general corporate purposes, including funding of acquisitions. If any of the banks in the syndicates backing these facilities were unable to perform on its commitments, our liquidity could be impacted, which could adversely affect funding of seasonal working capital requirements. We engage in regular communication with all of the banks participating in our revolving credit facilities. During these communications, none of the banks have indicated that they may be unable to perform on their commitments. In addition, we periodically review our banking and financing relationships, considering the stability of the institutions, pricing we receive on services and other aspects of the relationships. Based on these communications and our monitoring activities, we believe the likelihood of one of our banks not performing on its commitment is remote.

In addition, global capital markets have experienced volatility in the past that has tightened access to capital markets and other sources of funding, and such volatility and tightened access could reoccur in the future. In the event that we need to access the capital markets or other sources of financing, there can be no assurance that we will be able to obtain financing on acceptable terms or within an acceptable time period. Our inability to obtain financing on acceptable terms or within an acceptable time period could have an adverse impact on our operations, financial condition and liquidity.

The uncertainty regarding the potential phase-out of LIBOR may negatively impact our operating results.

LIBOR, the interest rate benchmark used as a reference rate on our variable rate debt, including our revolving credit facility, interest rate swaps, and cross currency interest rate swaps is expected to be phased out after calendar year 2021, when private-sector banks are no longer required to report the information used to set the rate. Without this data, LIBOR may no longer be published, or the lack of quality and quantity of data may cause the rate to no longer be representative of the market. At this time, no consensus exists as to what rate or rates will become accepted alternatives to LIBOR, although the U.S. Federal Reserve, in connection with the Alternative Reference Rates Committee, a steering committee comprised of large U.S. financial institutions, is considering replacing U.S. dollar LIBOR with the Secured Overnight Financing Rate (SOFR). SOFR is a more generic measure than LIBOR and considers the cost of borrowing cash overnight, collateralized by U.S. Treasury securities. Given the inherent differences between LIBOR and SOFR or any other alternative benchmark rate that may be established, there are many uncertainties regarding a transition from LIBOR, including but not limited to the need to amend all contracts with LIBOR as the referenced rate and how this will impact the Company’s cost of variable rate debt and certain derivative financial instruments. The Company will also need to consider new contracts and if they should reference an alternative benchmark rate or include suggested fallback language, as published by the Alternative Reference Rates Committee. The consequences of these developments with respect to LIBOR cannot be entirely predicted and span multiple future periods but could result in an increase in the cost of our variable rate debt or derivative financial instruments which may be detrimental to our financial position or operating results.

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The declaration, payment and amount of dividends is made at the discretion of our board of directors and depends on a number of factors.

The declaration, payment and amount of any dividends is made pursuant to our dividend policy and is subject to final determination each quarter by our board of directors in its discretion based on a number of factors that it deems relevant, including our financial position, results of operations, available cash resources, cash requirements and alternative uses of cash that our board of directors may conclude would be in the best interest of the company and our shareholders. Our dividend payments are subject to solvency conditions established by the Maryland General Corporation Law. Accordingly, there can be no assurance that any future dividends will be equal or similar in amount to any dividends previously paid or that our board of directors will not decide to reduce, suspend or discontinue the payment of dividends at any time in the future.

Risks Related to Intellectual Property, Information Technology, and Cyber-Security

Our intellectual property rights, and those of our customers, could be infringed, challenged or impaired, and reduce the value of our products and brands or our business with customers.

We possess intellectual property rights that are important to our business, and we are provided access by certain customers to particular intellectual property rights belonging to such customers. These intellectual property rights include ingredient formulas, trademarks, copyrights, patents, business processes and other trade secrets which are important to our business and relate to some of our products, our packaging, the processes for their production, and the design and operation of equipment used in our businesses. We protect our intellectual property rights, and those of certain customers, globally through a variety of means, including trademarks, copyrights, patents and trade secrets, third-party assignments and nondisclosure agreements, and monitoring of third-party misuses of intellectual property. If we fail to obtain or adequately protect our intellectual property (and the intellectual property of customers to which we have been given access), the value of our products and brands could be reduced and there could be an adverse impact on our business, financial condition and results of operations.

Our operations and reputation may be impaired if our information technology systems fail to perform adequately or if we are the subject of a data breach or cyber-attack.

Our information technology systems are critically important to operating our business. We rely on our information technology systems, some of which are or may be managed or hosted by or out-sourced to third party service providers, to manage our business data, communications, supply chain, order entry and fulfillment, and other business processes. If we do not allocate and effectively manage the resources necessary to build, sustain, and protect appropriate information technology systems and infrastructure, or we do not effectively implement system upgrades or oversee third party service providers, our business or financial results could be negatively impacted. The failure of our information technology systems to perform as we anticipate could disrupt our business and could result in transaction or reporting errors, processing inefficiencies and the loss of sales and customers, causing our business and results of operations to suffer.

Furthermore, our information technology systems are subject to cyber-attacks or other security incidents, service disruptions, or other system or process failures. Such incidents could result in unauthorized access to information including customer, consumer or other company confidential data as well as disruptions to operations. We have experienced in the past, and expect to continue to experience, cybersecurity threats and incidents, although to date none has been material. To address the risks to our information technology systems and data, we maintain an information security program that includes updating technology, developing security policies and procedures, implementing and assessing the effectiveness of controls, conducting risk assessments of third party service providers and designing business processes to mitigate the risk of such breaches. There can be no assurance that these measures will prevent or limit the impact of a future incident. Moreover, the development and maintenance of these measures requires continuous monitoring as technologies change and efforts to overcome security measures evolve. If we are unable to prevent or adequately respond to and resolve an incident, it may have a material, negative impact on our operations or business reputation, and we may experience other adverse consequences such as loss of assets, remediation costs, litigation, regulatory investigations, and the failure by us to retain or attract customers following such an event. Additionally, we rely on services provided by third-party vendors for certain information technology processes and functions, which makes our operations vulnerable to a failure by any one of these vendors to perform adequately or maintain effective internal controls.

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If we are not able to successfully implement our business transformation initiative or utilize information technology systems and networks effectively, our ability to conduct our business may be negatively impacted.

We continue to implement our multi-year business transformation initiative to execute significant change to our global processes, capabilities and operating model, including in our Global Enablement (GE) organization, in order to provide a scalable platform for future growth, while reducing costs. As technology provides the backbone for greater process alignment, information sharing and scalability, we are also making investments in our information systems, including the multi-year program to replace our enterprise resource planning (ERP) system currently underway, which includes the transformation of our financial processing systems to enterprise-wide systems solutions. These systems implementations are part of our ongoing business transformation initiative, and we plan to implement these systems throughout all parts of our businesses. If we do not allocate and effectively manage the resources necessary to build and sustain the proper information technology infrastructure, or if we fail to achieve the expected benefits from this initiative, it may impact our ability to process transactions accurately and efficiently and remain in step with the changing needs of our business, which could result in the loss of customers and revenue. In addition, failure to either deliver the applications on time, or anticipate the necessary readiness and training needs, could lead to business disruption and loss of customers and revenue. In connection with these implementations and resulting business process changes, we continue to enhance the design and documentation of business processes and controls, including our internal control over financial reporting processes, to maintain effective controls over our financial reporting.

We utilize cloud-based services and systems and networks managed by third-party vendors to process, transmit and store information and to conduct certain of our business activities and transactions with employees, customers, vendors and other third parties. Our utilization of these cloud-based services and systems will increase as we implement our business transformation initiatives. If any of these third-party service providers or vendors do not perform effectively, or if we fail to adequately monitor their performance (including compliance with service-level agreements or regulatory or legal requirements), we may not be able to achieve expected cost savings, we may have to incur additional costs to correct errors made by such service providers, our reputation could be harmed or we could be subject to litigation, claims, legal or regulatory proceedings, inquiries or investigations. Depending on the function involved, such errors may also lead to business disruption, processing inefficiencies, the loss of or damage to intellectual property or sensitive data through security breaches or otherwise, incorrect or adverse effects on financial reporting, litigation or remediation costs, or damage to our reputation, which could have a negative impact on employee morale. In addition, the management of multiple third-party service providers increases operational complexity and decreases our control.

Risks Related to Our Global Business, Litigation, Laws and Regulations

Laws and regulations could adversely affect our business.

Food products are extensively regulated in most of the countries in which we sell our products. We are subject to numerous laws and regulations relating to the growing, sourcing, manufacturing, storage, labeling, marketing, advertising and distribution of food products, as well as laws and regulations relating to financial reporting requirements, the environment, consumer protection, competition, anti-corruption, privacy, relations with distributors and retailers, foreign supplier verification, customs and trade laws, including the import and export of products and product ingredients, employment, and health and safety. Enforcement of existing laws and regulations, changes in legal requirements, and/or evolving interpretations of existing regulatory requirements may result in increased compliance costs and create other obligations, financial or otherwise, that could adversely affect our business, financial condition or operating results. Increased regulatory scrutiny of, and increased litigation involving, product claims and concerns regarding the attributes of food products and ingredients may increase compliance costs and create other obligations that could adversely affect our business, financial condition or operating results. Governments may also impose requirements and restrictions that impact our business, such as labeling disclosures pertaining to ingredients. For example, "Proposition 65, the Safe Drinking Water and Toxic Enforcement Act of 1986," in California exposes all food companies to the possibility of having to provide warnings on their products in that state. If we were required to add warning labels to any of our products or place warnings in locations where our products are sold in order to comply with Proposition 65, the sales of those products and other products of our company could suffer, not only in those locations but elsewhere.

In addition, there are various compliance obligations for companies that process personal data of certain individuals, including such obligations required by the European Union’s General Data Protection Regulation (GDPR), which came into effect in May 2018, and the California Consumer Privacy Act (CCPA), which came into effect in January

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2020. These types of data privacy laws create a range of new compliance obligations for companies that process personal data of certain individuals and increases financial penalties for non-compliance. For example, the CCPA imposes requirements on companies that do business in California and collect personal information from customers, including notice, consent and service provider requirements. The CCPA also provides for civil penalties for companies that fail to comply with these requirements, as well as a private right of action for data breaches. Regulations to implement portions of the CCPA have not been finalized and could significantly impact CCPA compliance measures. As a company that is subject to data privacy laws, we bear the costs of compliance with them, including the GDPR and CCPA, and are subject to the potential for fines and penalties in the event of a breach of these laws, which continue to evolve. These factors and others could have an adverse impact on our business, financial condition or results of operations.

Litigation, legal or administrative proceedings could have an adverse impact on our business and financial condition or damage our reputation.

We are party to a variety of legal claims and proceedings in the ordinary course of business. Since litigation is inherently uncertain, there is no guarantee that we will be successful in defending ourselves against such claims or proceedings, or that management’s assessment of the materiality or immateriality of these matters, including any reserves taken in connection with such matters, will be consistent with the ultimate outcome of such claims or proceedings. In the event that management’s assessment of the materiality or immateriality of current claims and proceedings proves inaccurate, or litigation that is material arises in the future, there may be a material adverse effect on our financial condition. Any adverse publicity resulting from allegations made in litigation claims or legal or administrative proceedings (even if untrue) may also adversely affect our reputation. These factors and others could have an adverse impact on our business and financial condition or damage our reputation.

Our international and cross-border operations are subject to additional risks.

We operate our business and market our products internationally. In fiscal year 2020, approximately 38% of our sales were generated in countries other than the U.S. Our international operations are subject to additional risks, including fluctuations in currency values, foreign currency exchange controls, discriminatory fiscal policies, compliance with U.S. and foreign laws, enforcement of remedies in foreign jurisdictions and other economic or political uncertainties. Several countries within the European Union continue to experience sovereign debt and credit issues, which causes more volatility in the economic environment throughout the European Union and the U.K. Additionally, sales in countries other than the U.S., together with finished goods and raw materials imported into the U.S., are subject to risks related to fundamental changes to tax laws as well as the imposition of tariffs, quotas, trade barriers and other similar restrictions. All of these risks could result in increased costs or decreased revenues, which could adversely affect our profitability.

The global nature of our business, changes in tax legislation and the resolution of tax uncertainties create volatility in our effective tax rate.

As a global business, our tax rate from period to period can be affected by many factors, including changes in tax

legislation, our global mix of earnings, the tax characteristics of our income, the timing and recognition of goodwill

impairments, acquisitions and dispositions, adjustments to our reserves related to uncertain tax positions, changes in valuation allowances and the portion of the income of international subsidiaries that we expect to remit to the U.S. and that will be taxable.

In addition, significant judgment is required in determining our effective tax rate and in evaluating our tax positions. We establish accruals for certain tax contingencies when, despite the belief that our tax return positions are appropriately supported, the positions are uncertain. The tax contingency accruals are adjusted in light of changing facts and circumstances, such as the progress of tax audits, case law and emerging legislation. Our effective tax rate includes the impact of tax contingency accruals and changes to those accruals, including related interest and penalties, as considered appropriate by management. When particular matters arise, a number of years may elapse before such matters are audited and finally resolved. Favorable resolution of such matters could be recognized as a reduction to our effective tax rate in the year of resolution. Unfavorable resolution of any particular issue could increase the effective tax rate and may require the use of cash in the year of resolution.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

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Our principal executive offices and primary research facilities are leased and owned, respectively, and are located in suburban Baltimore, Maryland.

The following is a list of our principal manufacturing properties, all of which are owned except for the facilities in Commerce, California; Lakewood, New Jersey; Melbourne, Australia; Florence, Italy; and a portion of the facility in Littleborough, England, which are leased. The manufacturing facilities that we own in Guangzhou, Shanghai and Wuhan, China are each located on land subject to long-term leases:

United States:

Hunt Valley, Maryland–consumer and flavor solutions

(3 principal plants)

Gretna, Louisiana–consumer and flavor solutions

South Bend, Indiana–consumer and flavor solutions

Atlanta, Georgia–flavor solutions

Commerce, California–consumer

Irving, Texas–flavor solutions

Lakewood, New Jersey–flavor solutions

Springfield, Missouri–consumer and flavor solutions

Canada:

London, Ontario–consumer and flavor solutions

Mexico:

Cuautitlan de Romero Rubio–flavor solutions

United Kingdom:

Haddenham, England–consumer and flavor solutions

Littleborough, England–flavor solutions

France:

Carpentras–consumer and flavor solutions

Monteux–consumer and flavor solutions

Poland:

Stefanowo–consumer

Italy:

Florence–consumer and flavor solutions (2 principal plants)

China:

Guangzhou–consumer and flavor solutions

Shanghai–consumer and flavor solutions

Wuhan–consumer

Australia:

Melbourne–consumer and flavor solutions

Palmwoods–consumer

India:

New Delhi–consumer and flavor solutions

Thailand:

    Chonburi–consumer and flavor solutions

In addition to distribution facilities and warehouse space available at our manufacturing facilities, we lease regional distribution facilities as follows (i) in the U.S.: Belcamp and Aberdeen, Maryland; Salinas, California; Byhalia, Mississippi; Irving, Texas; and Springfield, Missouri; (ii) in Canada: Mississauga and London, Ontario; (iii) in Heywood, U.K. and (iv) in Compans, France. We also own distribution facilities in Belcamp, Maryland and Monteux, France. In addition, we own, lease or contract other properties used for manufacturing consumer and flavor solutions products and for sales, warehousing, distribution and administrative functions.

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We believe our plants are well maintained and suitable for their intended use. We further believe that these plants generally have adequate capacity or the ability to expand, and can accommodate seasonal demands, changing product mixes and additional growth.

ITEM 3. LEGAL PROCEEDINGS

There are no material pending legal proceedings in which we or any of our subsidiaries are a party or to which any of our or their property is the subject.

ITEM 4. MINE SAFETY DISCLOSURES

Not Applicable.

PART II.

ITEM 5. MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Our Common Stock and Common Stock Non-Voting are listed and traded on the New York Stock Exchange (NYSE). Our Common Stock and Common Stock Non-Voting trade under the ticker symbols MKCV and MKC, respectively. We have disclosed in note 18 of the accompanying financial statements the information relating to the dividends declared and paid on our classes of common stock. The market price of our common stock at the close of business on December 31, 2020 was $95.57 per share for the Common Stock and $95.60 per share for the Common Stock Non-Voting.

On November 30, 2020, the Company effected a two-for-one stock split in the form of a stock dividend on all shares of the Company's two classes of common stock. On November 30, 2020, one like share was issued for each outstanding share to shareholders of record as of November 20, 2020. All common stock and per share data has been retroactively adjusted to reflect the stock split.

The approximate number of holders of our common stock based on record ownership as of December 31, 2020 was as follows:

Title of class	Approximate     number     of record     holders
Common Stock, no par value	2,000
Common Stock Non-Voting, no par value	9,400

The following table summarizes our purchases of Common Stock (CS) and Common Stock Non-Voting (CSNV) during the fourth quarter of 2020:

ISSUER PURCHASES OF EQUITY SECURITIES

Period	Total number of shares purchased	Average price paid per share	Total number of shares purchased as part of publicly announced plans or programs	Approximate dollar value of shares that may yet be purchased under the plans or programs
September 1, 2020 to September 30, 2020	CS-0 CSNV-0	- -	- -	$586 million
October 1, 2020 to October 31, 2020	CS-13,200 CSNV-0	$97.24 -	13,200 -	$585 million
November 1, 2020 to November 30, 2020	CS-0 CSNV-0	- -	- -	$585 million
Total	CS-13,200 CSNV-0	$97.24 -	13,200 -	$585 million

As of November 30, 2020, approximately $585 million remained of a $600 million share repurchase authorization approved by the Board of Directors in November 2019. The timing and amount of any shares repurchased is determined by our management based on its evaluation of market conditions and other factors.

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In certain circumstances, we issue shares of CS in exchange for shares of CSNV, or issue shares of CSNV in exchange for shares of CS, in either case pursuant to the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933, as amended. Typically, these exchanges are made in connection with the administration of our employee benefit plans, executive compensation programs and dividend reinvestment/direct purchase plans. The number of shares issued in an exchange is generally equal to the number of shares received in the exchange, although the number may differ slightly to the extent necessary to comply with the requirements of the Employee Retirement Income Security Act of 1974. During fiscal 2020, we issued 975,306 shares of CSNV in exchange for shares of CS and issued 4,404 shares of CS in exchange for shares of CSNV.

ITEM 6. SELECTED FINANCIAL DATA

HISTORICAL FINANCIAL SUMMARY

(millions except per share and percentage data)	2020			2019			2018			2017			2016
For the Year
Net sales	$	5,601.3		$	5,347.4		$	5,302.8		$	4,730.3		$	4,313.9
Operating income	999.5			957.7			891.1			699.8			649.4
Income from unconsolidated operations	40.8			40.9			34.8			33.9			36.1
Net income	747.4			702.7			933.4			477.4			472.3
Per Common Share (1)
Earnings per share–basic	$	2.80		$	2.65		$	3.55		$	1.88		$	1.87
Earnings per share–diluted	2.78			2.62			3.50			1.86			1.85
Common dividends declared	1.27			1.17			1.07			0.97			0.88
Closing price, non-voting shares–end of year	93.49			84.63			75.00			51.09			45.60
Book value per share	14.76			13.01			12.05			9.81			6.53
At Year-End
Total assets	$	12,089.7		$	10,362.1		$	10,256.4		$	10,385.8		$	4,635.9
Current debt	1,150.6			698.4			643.5			583.2			393.2
Long-term debt	3,753.8			3,625.8			4,052.9			4,443.9			1,054.0
Shareholders’ equity	3,940.0			3,456.7			3,182.2			2,570.9			1,638.1
Other Financial Measures
Percentage of net sales
Gross profit	41.1		%	40.1		%	39.5		%	37.9		%	38.1		%
Operating income	17.8		%	17.9		%	16.8		%	14.8		%	15.1		%
Capital expenditures	$	225.3		$	173.7		$	169.1		$	182.4		$	153.8
Depreciation and amortization	165.0			158.8			150.7			125.2			108.7
Common share repurchases	47.3			95.1			62.3			137.8			242.7
Dividends paid	330.1			302.2			273.4			237.6			217.8
Average shares outstanding (1)
Basic	266.5			265.1			263.1			253.6			253.1
Diluted	269.1			268.1			266.5			256.8			255.9

(1)On November 30, 2020, the Company effected a two-for-one stock split to shareholders of record as of November 20, 2020. All common stock and per share data has been retroactively adjusted to reflect the stock split.

The historical financial summary includes the impact of certain items that affect the comparability of financial results year to year. The net impact of these items is reflected in the following table:

(millions except per share data)	2020		2019		2018		2017		2016
Operating income (1)	$	(19.3)	$	(20.8)	$	(38.8)	$	(83.9)	$	(16.0)
Net income (2)	(15.3)		(14.6)		271.4		(69.3)		(11.1)
Earnings per share–diluted (3)	(0.05)		(0.06)		1.02		(0.27)		(0.04)

(1)In 2020, 2019, 2018, 2017, and 2016, we recorded special charges related to the completion of organization and streamlining actions, including, for 2016, special charges related to the discontinuance of bulk-packaged and broken basmati rice product lines for our business in India. In 2020, we recorded transaction and integration expenses related to our

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acquisitions of Cholula and FONA. In 2018 and 2017, we recorded transaction and integration expenses related to our acquisition of RB Foods.

(2)In 2019 and 2018, we recorded a non-recurring benefit from the U.S. Tax Act of $1.5 million and $301.5 million, respectively.

(3)On November 30, 2020, the Company effected a two-for-one stock split to shareholders of record as of November 20, 2020. All common stock and per share data has been retroactively adjusted to reflect the stock split.

ITEM 7. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

The following Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to help the reader understand McCormick & Company, Incorporated, our operations and our present business environment. MD&A is provided as a supplement to, and should be read in conjunction with, our financial statements and the accompanying notes thereto contained in Item 8 of this report. We use certain non-GAAP information that we believe is important for purposes of comparison to prior periods and development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends. The dollar and share information in the charts and tables in the MD&A are in millions, except per share data. On November 30, 2020, the Company effected a two-for-one stock split in the form of a stock dividend on all shares of the Company’s two classes of common stock. On November 30, one like share was issued to each share outstanding to shareholders of record as of November 20, 2020. All common stock and per share data has been retroactively adjusted to reflect the stock split.

McCormick is a global leader in flavor. The company manufactures, markets and distributes spices, seasoning mixes, condiments and other flavorful products to the entire food industry–retailers, food manufacturers and foodservice businesses. We manage our business in two operating segments, consumer and flavor solutions, as described in Item 1 of this report.

Our long-term annual growth objectives in constant currency are to increase sales 4% to 6%, increase adjusted operating income 7% to 9% and increase adjusted earnings per share 9% to 11%.

Impact of Global COVID-19 Pandemic–During the year ended November 30, 2020, the effects of a new coronavirus (COVID-19) and related actions to attempt to control its spread significantly impacted not only our operating results but also the global economy.

The impact of the global COVID-19 pandemic on our consolidated operating results in early fiscal 2020 was limited, in all material respects, to our operations in China where the Chinese government mandated numerous measures, including closures of businesses, limitations on movements of individuals and goods, and the imposition of other restrictive measures, in its efforts to mitigate the spread of COVID-19 within the country. In March 2020, as COVID-19 spread outside of China, significantly impacting the rest of the world, the World Health Organization designated the outbreak as a global pandemic. The pandemic spread outside of China in the balance of fiscal year 2020 to impact operations in our Americas and Europe, Middle East and Africa (EMEA) regions in addition to elsewhere in our Asia/Pacific region. The effects of COVID-19 and related actions to attempt to control its spread significantly impacted not only our operating results but also the global economy.

In the U.S., many state and local governments, based on local conditions, either recommended or mandated actions to slow the transmission of COVID-19. These measures ranged from limitations on crowd size, together with closures of bars and dine-in restaurants, to mandatory orders for non-essential citizens to shelter in place. Governments in non-U.S. jurisdictions also implemented shelter-in-place orders, quarantines, significant restrictions on travel, as well as restrictions that prohibited many employees from going to work. Borders between countries have been closed to contain the spread of COVID-19 contagion. The extent and nature of government actions varied during fiscal year 2020 and in early fiscal year 2021 based upon the then-current extent and severity of the COVID-19 pandemic within their respective countries and localities.

We identified three priorities while navigating through the period of volatility and uncertainty associated with various stages of the COVID-19 pandemic:

▪First, to ensure the health and safety of our employees and the quality and integrity of our products.

▪Second, to keep our brands and our customers' brands in supply and to maintain the financial strength of our business.

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▪Third, to ensure McCormick emerges strong from this event. The pandemic will come to an end and we believe that we will come out a better company by driving our long-term strategies, responding to changing consumer behavior and capitalizing on opportunities from our relative strength.

We implemented numerous measures over the course of fiscal 2020 to ensure that these priorities were achieved, including: (i) for our manufacturing and distribution employees, who played a critical role in maintaining the supply of our products to our customers and consumers, we instituted pre-shift temperature checks, temporarily increased pay and benefits, and provided time to enable social distancing and even greater sanitation procedures during shift changes; (ii) for our other employees, we instituted work-from-home arrangements; (iii) we maintained close communication with customers and suppliers to enable us to react to changing demand; and (iv) throughout the organization, we empowered global, regional and local crisis response teams that enabled us to react quickly to the challenging environment.

Our sales increased by 4.7% for the year ended November 30, 2020 over the 2019 level. That increase was driven by an 10.0% increase in sales of our consumer segment, partially offset by a 3.5% decline in sales of our flavor solutions segment. Our operating results have and will continue to be impacted by COVID-19, including the related recovery and the shift in consumer demand resulting from the pandemic. We have partnered with our customers to monitor consumer demand changes and address the shift to at-home versus away-from-home consumption. We estimate that away-from-home consumption has historically represented approximately 20% of our consolidated sales. The effects of COVID-19 on consumer behavior have, on a net basis, favorably impacted the operating results of our consumer segment and unfavorably impacted the operating results of our flavor solutions segment during the year ended November 30, 2020. The impact of COVID-19 on our consumer segment during fiscal 2020 resulted in a significant increase in at-home consumption and related demand for our products. The unfavorable impact on our flavor solutions segment during the same periods was principally attributable to decreased demand from certain customers that were affected by government mandates related to COVID-19 in many of our markets. Those measures required closures of, or capacity limitations on, dine-in restaurants or restricted operations of those restaurants to carry-out or delivery only and also restricted operations of quick service restaurants to drive-through pick-up or delivery. The resulting negative demand impacts in our flavor solutions segment were partially offset by increased at-home consumption from certain customers in our flavor solutions segment that use our products to flavor their own brands for at-home consumption. The impact of COVID-19 on our consumer segment and flavor solutions segment moderated during our fourth quarter of fiscal 2020. During that quarter, our sales increased by 4.9% over the comparable period in 2019, driven by a 5.9% increase in sales of our consumer segment and a 3.1% increase in sales of our flavor solutions segment. The 5.9% fourth quarter growth in sales of our consumer segment was moderated by the lack of availability of certain of our consumer products in the U.S. following the sustained increase in demand earlier in 2020 that caused us to suspend or curtail production of some secondary products in the fourth quarter to protect the supply of our top selling holiday items.

Upon worsening COVID-19 infection levels in certain localities in late fiscal 2020 and in early fiscal 2021, local governmental authorities have either re-imposed some or all of earlier restrictions or imposed other restrictions, all in an effort to check the spread of COVID-19.

In early fiscal 2021, vaccines effective in combatting COVID-19 were approved by health agencies in certain countries/regions in which we operate (including the U.S., U.K., European Union, Canada and Mexico) and began to be administered. However, initial quantities of vaccines are limited and vaccine distributions, controlled by local authorities, are being allocated, generally first to front-line health care workers and other essential workers and next to those members of individual populations believed most susceptible to severe effects from COVID-19. Full administration of the COVID-19 vaccines is unlikely to occur in most jurisdictions until mid- to late-2021. The pace and shape of the COVID-19 recovery described above as well as the impact and extent of potential resurgences is not presently known. These and other uncertainties with respect to COVID-19 could result in changes to our current expectations in addition to a number of adverse impacts to our business, including but not limited to additional disruption to the economy and consumers’ willingness and ability to spend, temporary or permanent closures by businesses that consume our products, such as restaurants, additional work restrictions, and supply chains being interrupted, slowed, or rendered inoperable or, in the case of significant increased demand for our product, incapable of fulfilling that increased demand. As a result, it may be challenging to obtain and process raw materials to support our business needs, and individuals could become ill, quarantined, or otherwise unable to work and/or travel due to health reasons or governmental restrictions. Also, governments may impose other laws, regulations or taxes which could adversely impact our business, financial condition or results of operations. Further, if our customers’ businesses are similarly affected, they might delay or reduce purchases from us. The potential effects of COVID-19 also could impact us in a number of other ways including, but not limited to, variations in the level of our

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profitability, laws and regulations affecting our business, fluctuations in foreign currency markets, the availability of future borrowings, the cost of borrowings, valuation of our pension assets and obligations, credit risks of our customers and counterparties, and potential impairment of the carrying value of goodwill or other indefinite-lived intangible assets.

Sales growth: Over time, we expect to grow sales with similar contributions from: 1) our base business – driven by brand marketing support, category management, and differentiated customer engagement; 2) new products; and 3) acquisitions.

Base business – We expect to drive sales growth by optimizing our brand marketing investment through improved speed, quality and effectiveness. We measure the return on our brand marketing investment and have identified digital marketing as one of our highest return investments in brand marketing support. Through digital marketing, we are connecting with consumers in a personalized way to deliver recipes, provide cooking advice and discover new products.

New Products – For our consumer segment, we believe that scalable and differentiated innovation continues to be one of the best ways to distinguish our brands from our competition, including private label. We are introducing products for every type of cooking occasion, from gourmet, premium items to convenient and value-priced flavors.

For flavor solutions customers, we are developing seasonings for snacks and other food products, as well as flavors for new menu items. We have a solid pipeline of flavor solutions aligned with our customers’ new product launch plans, many of which include “better-for-you” innovation. With over 20 product innovation centers around the world, we are supporting the growth of our brands and those of our flavor solutions customers with products that appeal to local consumers.

Acquisitions – Acquisitions are expected to approximate one-third of our sales growth over time. Since the beginning of 2015, we have completed nine acquisitions, which are driving sales in both our consumer and flavor solutions segments. We focus on acquisition opportunities that meet the growing demand for flavor and health. Geographically, our focus is on acquisitions that build scale where we currently have presence in both developed and emerging markets. Our acquisitions have included bolt-on opportunities as well as the following recent acquisitions:

•On December 30, 2020, we acquired FONA International, LLC and certain of its affiliates (FONA), a privately owned company, for approximately $710 million, net of cash acquired, subject to certain customary purchase price adjustments. We financed this fiscal 2021 acquisition with cash and short-term borrowings. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets which expands the breadth of our flavor solutions segment into attractive categories, as well as extends our technology platform, strengthens our capabilities, and accelerates the strategic migration of our portfolio to more value-added and technically insulated products.

•On November 30, 2020, we acquired the parent company of Cholula Hot Sauce® (Cholula) from L Catterton for approximately $803 million, net of cash acquired, subject to certain customary purchase price adjustments. Cholula is a strong addition to McCormick’s global branded flavor portfolio, which broadens the Company’s offering in the high growth hot sauce category to consumers and foodservice operators and accelerates our condiment growth opportunities with a complementary authentic Mexican flavor hot sauce in both our consumer and flavor solutions segments.

•On August 17, 2017, we acquired Reckitt Benckiser's Food Division (RB Foods) for approximately $4.2 billion. The acquired market-leading brands of RB Foods included French’s®, Frank’s RedHot® and Cattlemen’s®, which are a natural strategic fit with our robust global branded flavor portfolio. We believe that these additions moved us to a leading position in the attractive U.S. condiments category and provide significant international growth opportunities for our consumer and flavor solutions segments.

The FONA and Cholula acquisitions are expected to contribute more than one-third of our sales growth in 2021. The RB Foods acquisition contributed more than one-third of our sales growth in 2018 and 2017.

Cost savings and business transformation: We are fueling our investment in growth with cost savings from our CCI program, an ongoing initiative to improve productivity and reduce costs throughout the organization, that also includes savings from the organization and streamlining actions described in note 3 of notes to our consolidated financial statements. In addition to funding brand marketing support, product innovation and other growth initiatives, our CCI program helps offset higher costs and is contributing to higher operating income and earnings per share.

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We are making investments to build the McCormick of the future, including in our Global Enablement (GE) organization to transform McCormick through globally aligned, innovative services to enable growth. As more fully described in note 3 of notes to our consolidated financial statements, we expect to incur special charges of approximately $60 million to $65 million associated with our GE initiative of which approximately $39.9 million have been recognized through November 30, 2020. As technology provides the backbone for this greater process alignment, information sharing and scalability, we are also making investments in our information systems. From late 2018 through early 2020, we progressed in implementing our global enterprise resource planning (ERP) replacement program which will enable us to accelerate the transformation of our ways of working and provide a scalable platform for growth. In the second quarter of fiscal 2020, we elected to pause activity related to our ERP for the balance of fiscal 2020 due, in part, to COVID-19 restrictions that restricted necessary travel by internal and external ERP team members and made it difficult for local McCormick personnel to actively participate in the ERP development, data cleansing, and testing prior to then scheduled pilots later in fiscal 2020. In addition, the pause of this activity enabled all McCormick employees to focus their activities on the three priorities previously described under the heading “Impact of COVID-19 Pandemic” for navigating through the period of volatility and uncertainty associated with various stages of the COVID-19 pandemic.

We expect that, in total over the course of the ERP replacement program from late 2018 through 2023, we will invest from approximately $350 million to $400 million, including expenses related to the go-live activities in our operations, to enable the anticipated completion of the global roll out of our new information technology platform in 2022. Of that projected, $350 million to $400 million, we expect capitalized software to account for approximately 50% and program expenses to account for approximately 50%. Of the approximately $175 million to $200 million of operating expenses included in our projected total spending related to our ERP replacement program, approximately $40 million have been recognized through November 30, 2020. Of the approximately $175 million to $200 million of capitalized software included in our projected total spending related to our ERP program, approximately $87 million has been recognized through November 30, 2020.

The GE initiative is expected to generate annual savings, ranging from approximately $45 million to $55 million, once all actions are implemented, including those that are dependent on the replacement of our global ERP platform.

Cash flow: We continue to generate strong cash flow. Net cash provided by operating activities reached $1,041.3 million in 2020, an increase of $94.5 million from the $946.8 million realized in 2019. In 2020, we continued to have a balanced use of cash for debt repayment, capital expenditures and the return of cash to shareholders through dividends and share repurchases. We are using our cash to fund shareholder dividends, with annual increases in each of the past 35 years, and to fund capital expenditures and acquisitions. In 2020, the return of cash to our shareholders through dividends and share repurchases was $377.4 million.

Operating Results: On a long-term basis, we expect a combination of acquisitions and share repurchases to add about 2% to earnings per share growth.

In 2020, we achieved further growth of our business with net sales rising 4.7% over the 2019 level due to the following factors:

•We grew volume and product mix, which added 3.7% of sales growth. This growth was driven by sharply higher demand within our consumer segment, as the continuation of measures imposed to mitigate the spread of COVID-19 and the related change in consumer behavior, resulted in a shift in consumer behavior toward at-home meal preparation that more than offset lower demand within our flavor solutions segment principally associated with our branded food service customers.

•Pricing actions contributed 1.6% of the increase in net sales.

•Net sales growth was negatively impacted by fluctuations in currency rates that decreased sales growth by 0.6%. Excluding this impact, we grew sales by 5.3% over the prior year on a constant currency basis.

Operating income was $999.5 million in 2020 and $957.7 million in 2019. We recorded $6.9 million and $20.8 million of special charges in 2020 and 2019, respectively, related to organization and streamlining actions. In 2020, we also recorded $12.4 million of transaction and integration expenses related to our acquisitions of Cholula and FONA that reduced operating income. In 2020, compared to the year-ago period, the favorable impact of higher sales and $113.0 million of cost savings from our CCI program, including organization and streamlining actions, more than offset the impact of increased conversion costs, COVID-19 related expenses, higher incentive compensation, and the unfavorable impact of foreign currency exchange rates. During 2020, COVID-19 related

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expenses included certain actions taken in response to the pandemic, including the impact of temporary arrangements that increased salaries and benefits paid to our manufacturing employees, measures to enable manufacturing and distribution staff to maintain social distancing and permit enhanced cleaning between shifts that reduced productivity, and impact of lower production volumes of flavor solutions inventories. Excluding special charges together with, for 2020, transaction and integration expenses related to our acquisitions of Cholula and FONA, adjusted operating income was $1,018.8 million in 2020, an increase of 4.1%, compared to $978.5 million in the year-ago period. In constant currency, adjusted operating income rose 4.8%. For further details and a reconciliation of non-GAAP to reported amounts, see the subsequent discussion under the heading "Non-GAAP Financial Measures".

Diluted earnings per share was $2.78 in 2020 and $2.62 in 2019. The year-on-year increase in earnings per share was driven mainly by higher operating income and decreased interest expense. Those favorable impacts in 2020 were partially offset by the impact of a higher effective tax rate, a decrease in other income and the impact of higher shares outstanding. Special charges, and in 2020, transaction and integration expenses lowered earnings per share by $0.05 and $0.06 in 2020 and 2019, respectively. Excluding the effects of special charges, transaction and integration expenses, and the non-recurring benefit of the U.S. Tax Act, adjusted diluted earnings per share was $2.83 in 2020 and $2.68 in 2019, or an increase of 5.6%.

2021 Outlook

In 2021, we expect to grow net sales over the 2020 level by 7% to 9%, including an estimated 2% favorable impact from currency rates, or 5 to 7% on a constant currency basis. That anticipated 2021 sales growth includes the incremental impact of the Cholula and FONA acquisitions, which we expect to comprise 3.5% to 4.0% of the expected 7% to 9% sales growth, and higher volume and product mix driven by our category management, brand marketing, new product, and differentiated customer engagement growth plans. We expect to have organic sales growth in both our consumer and flavor solutions segments.

We expect our 2021 gross profit margin to range from a decline of 10 basis points to an increase of 15 basis points from our gross profit margin of 41.1% in 2020. The projected 2021 range of change in gross profit margin is principally due to (i) expected accretion from our acquisitions of Cholula and FONA, net of transaction and integration expenses of $6.9 million related to the amortization of the step-up of the acquired inventories of Cholula and FONA to fair value, (ii) anticipated unfavorable sales mix in 2021 between our consumer and flavor solutions segments as compared to 2020, (iii) an expected increase in COVID-19 expenses of approximately $10 million in 2021 over the 2020 level, and (iv) an anticipated low-single-digit level of inflation in 2021 compared to 2020. Excluding the $6.9 million of transaction and integration expenses related to our acquisitions of Cholula and FONA included in our projected range of gross profit margin anticipated in 2021, we expect our adjusted gross profit margin to range from comparable to 25 basis points higher than our 2020 gross profit margin of 41.1%.

In 2021, we expect an increase in operating income of 4% to 6%, which includes an estimated 2% favorable impact from currency rates, over the 2020 level. The projected range of change in operating income in 2021 reflects an expected increase of approximately $30 million in expense related to our global ERP replacement program over the fiscal 2020 level. Our CCI-led cost savings target in 2021 is approximately $110 million and approximates the $113 million of CCI-led cost savings realized in 2020. We anticipate transaction and integration expenses related to the Cholula and FONA acquisitions of approximately $50 million to negatively impact operating income in 2021, as compared to $12.4 million of transaction and integration expenses in 2020. We also expect approximately $8 million of special charges in 2021 that relate to previously announced organization and streamlining actions; in 2020, special charges were $6.9 million. Excluding special charges and transaction and integration expenses, we expect 2021’s adjusted operating income to increase by 8% to 10%, which includes an estimated 2% favorable impact from currency rates, or to increase by 6% to 8% on a constant currency basis over the 2020 level.

Our underlying effective tax rate is projected to be higher in 2021 than in 2020. We estimate our effective tax rate, including the net favorable impact of anticipated discrete tax items, to approximate 24% in 2021 as compared to 19.8% in 2020. Excluding projected taxes associated with special charges and transaction and integration expenses, including the unfavorable impact in 2021 of a discrete tax item related to our acquisition of FONA, we estimate that our adjusted effective tax rate will approximate 23% in fiscal 2021, as compared to an adjusted effective tax rate of 19.9% in 2020.

Diluted earnings per share was $2.78 in 2020. Diluted earnings per share for 2021 is projected to range from $2.71 to $2.76. Excluding the per share impact of special charges and transaction and integration expenses of $0.01 and $0.04, respectively, adjusted diluted earnings per share was $2.83 in 2020. Adjusted diluted earnings per share

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(excluding an estimated per share impact from special charges of $0.02 and from transaction and integration expenses of $0.18, including the unfavorable impact of a discrete tax item of $0.04 related to our acquisition of FONA) is projected to range from $2.91 to $2.96 in 2021. We expect adjusted diluted earnings per share to grow by 3% to 5%, which includes a 2% favorable impact from currency rates, or to grow by 1% to 3% on a constant currency basis over adjusted diluted earnings per share of $2.83 in 2020.

RESULTS OF OPERATIONS—2020 COMPARED TO 2019

	2020			2019
Net sales	$	5,601.3		$	5,347.4
Percent growth	4.7		%	0.8		%
Components of percent growth in net sales–increase (decrease):
Volume and product mix	3.7		%	2.5		%
Pricing actions	1.6		%	0.2		%
Foreign exchange	(0.6)		%	(1.9)		%

Sales for 2020 increased by 4.7% from 2019 and by 5.3% on a constant currency basis. That 4.7% sales increase was driven by higher sales in our consumer segment, which increased by 10.0% over the 2019 level, partially offset by lower sales in our flavor solutions segment, which declined by 3.5% from the prior year level. On a consolidated basis, higher volume and favorable product mix increased sales by 3.7% while pricing actions added 1.6% to sales. That net volume increase and favorable mix was driven by higher demand within our consumer segment, as measures imposed to mitigate the spread of COVID-19 and the related change in consumer behavior, resulted in a shift in consumer behavior toward at-home meal preparation that more than offset lower demand within our flavor solutions segment principally associated with our restaurant and branded food service customers. Sales were also impacted by unfavorable foreign currency rates that decreased net sales 0.6% compared to 2019 and is excluded from our measure of sales growth of 5.3% on a constant currency basis.

	2020			2019
Gross profit	$	2,300.4		$	2,145.3
Gross profit margin	41.1		%	40.1		%

In 2020, our gross profit margin increased 100 basis points to 41.1% from 40.1% in 2019. This improvement was driven by the favorable impact of CCI-led cost savings, favorable pricing actions and the mix of consumer and flavor solutions sales, partially offset by unfavorable conversion costs and increased material costs. Higher conversion costs during 2020 reflected certain matters associated with COVID-19, including the impact of temporary arrangements that increased salaries and benefits paid to our manufacturing employees, measures to enable manufacturing and distribution staff to maintain social distancing and permit enhanced cleaning between shifts that reduced productivity, and the impact of lower production volumes of flavor solutions inventories.

	2020			2019
Selling, general & administrative expense	$	1,281.6		$	1,166.8
Percent of net sales	22.9		%	21.8		%

Selling, general and administrative (SG&A) expense was $1,281.6 million in 2020 compared to $1,166.8 million in 2019, an increase of $114.8 million. That increase in SG&A expense was primarily a result of (i) higher performance-based employee incentive expense accruals, (ii) higher distribution expenses associated with the higher sales volume, (iii) increased brand marketing costs and (iv) a one-time fiscal 2019 expense reduction from the alignment of an employee benefit plan to our global standard that did not recur in 2020, all as compared to 2019. SG&A expense as a percent of net sales increased by 110 basis points from the prior year level, primarily as a result of the previously mentioned factors, partially offset by the impact of the leverage of fixed and semi-fixed expenses over a higher level of sales during the 2020 period.

	2020		2019
Total special charges	$	6.9	$	20.8

We regularly evaluate whether to implement changes to our organization structure to reduce fixed costs, simplify or improve processes, and improve our competitiveness, and we expect to continue to evaluate such actions in the future. From time to time, those changes are of such significance in terms of both up-front costs and organizational/ structural impact that we obtain advance approval from our Management Committee and classify expenses related to those changes as special charges in our financial statements.

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During 2020, we recorded $6.9 million of special charges, consisting of $5.3 million related to streamlining actions in our EMEA region and $1.6 million related to our GE initiative.

During 2019, we recorded $20.8 million of special charges, consisting primarily of (i) $14.1 million of costs related to our multi-year GE business transformation initiative, including $10.6 million of third-party expenses, $2.1 million related to severance and related benefits, and $1.4 million related to other costs; (ii) $2.3 million of severance and related benefits associated with streamlining actions in the Americas; and (iii) $3.9 million related to streamlining actions in our EMEA region.

	2020		2019
Transaction and integration expenses	$	12.4	$	—

Transaction and integration expenses related to our acquisitions of Cholula and FONA of $11.2 million and $1.2 million, respectively, were incurred late in fiscal 2020. We expect to incur additional transaction and integration expenses related to these acquisitions in fiscal 2021.

	2020			2019
Operating income	$	999.5		$	957.7
Percent of net sales	17.8		%	17.9		%

Operating income increased by $41.8 million, or 4.4%, from $957.7 million in 2019 to $999.5 million in 2020. Operating income as a percent of net sales declined by 10 basis points in 2020, to 17.8% in 2020 from 17.9% in 2019 as a result of the factors previously described. Excluding the effect of special charges and transaction and integration expenses previously described, adjusted operating income was $1,018.8 million in 2020 as compared to $978.5 million in 2019, an increase of $40.3 million or 4.1% over the 2019 level. Adjusted operating income as a percent of net sales declined by 10 basis points in 2020, to 18.2% in 2020 from 18.3% in 2019.

	2020		2019
Interest expense	$	135.6	$	165.2
Other income, net	17.6		26.7

Interest expense was $29.6 million lower for 2020 as compared to the prior year primarily due to a decline in average total borrowings and a lower interest rate environment. Other income, net for 2020 decreased by $9.1 million from the 2019 level due principally to lower non-service cost income associated with our pension and postretirement benefit plans that declined by $7.6 million in 2020 from the prior year level.

	2020			2019
Income from consolidated operations before income taxes	$	881.5		$	819.2
Income tax expense	174.9			157.4
Effective tax rate	19.8		%	19.2		%

The provision for income taxes is based on the current estimate of the annual effective tax rate adjusted to reflect the tax impact of items discrete to the fiscal period. We record tax expense or tax benefits that do not relate to ordinary income in the current fiscal year discretely in the period in which such items occur pursuant to the requirements of U.S. GAAP. Examples of such types of discrete items not related to ordinary income of the current fiscal year include, but are not limited to, excess tax benefits associated with share-based payments to employees, changes in estimates of the outcome of tax matters related to prior years, including reversals of reserves upon the lapsing of statutes of limitations, provision-to-return adjustments, the settlement of tax audits, changes in enacted tax rates, changes in the assessment of deferred tax valuation allowances and the tax effects of intra-entity asset transfers (other than inventory).

The effective tax rate was 19.8% in 2020 as compared to 19.2% in 2019. The effective tax rate of 19.2% in 2019 includes a non-recurring net tax benefit of $1.5 million associated with the U.S. Tax Act, as more fully described in note 13 of notes to our consolidated financial statements. Net discrete tax benefits were $43.4 million in 2020, which is a decrease of $0.3 million from $43.7 million in 2019, including the $1.5 million non-recurring benefit of the U.S. Tax Act in 2019. Discrete tax benefits in both the 2020 and 2019 periods include excess tax benefits associated with share-based payments to employees ($14.2 million and $22.4 million in 2020 and 2019, respectively), the tax benefits associated with intra-entity asset transfers that occurred ($9.9 million and $15.2 million in 2020 and 2019, respectively), the reversal of reserves for unrecognized tax benefits for the expiration of the statues of limitations and other discrete items. In 2020, discrete tax benefits included $11.9 million associated with the release of valuation allowances due to a change in judgment about realizability of deferred tax assets. See note 13 of notes to

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our consolidated financial statements for a more detailed reconciliation of the U.S. federal tax rate with the effective tax rate.

	2020		2019
Income from unconsolidated operations	$	40.8	$	40.9

Income from unconsolidated operations, which is presented net of the elimination of earnings attributable to non-controlling interests, decreased $0.1 million in 2020 from the prior year. We own 50% of most of our unconsolidated joint ventures, including our largest joint venture, McCormick de Mexico, that comprised 75% and 72% of the income of our unconsolidated operations in 2020 and 2019, respectively.

We reported diluted earnings per share of $2.78 in 2020, compared to $2.62 in 2019. The table below outlines the major components of the change in diluted earnings per share from 2019 to 2020. The increase in adjusted operating income in the table below includes the impact from unfavorable currency exchange rates in 2020.

2019 Earnings per share—diluted	$	2.62
Increase in operating income	0.12
Decrease in special charges	0.05
Increase in transaction and integration expenses	(0.04)
Decrease in interest expense	0.09
Decrease in other income	(0.03)
Impact of income taxes	(0.02)
Impact of higher shares	(0.01)
2020 Earnings per share—diluted	$	2.78

Results of Operations—Segments

We measure the performance of our business segments based on operating income, excluding special charges and transaction and integration expenses related to our acquisitions. See note 16 of notes to our consolidated financial statements for additional information on our segment measures as well as for a reconciliation by segment of operating income, excluding special charges and transaction and integration expenses related to our acquisitions. In the following discussion, we refer to our previously described measure of segment profit as "Segment operating income".

Consumer Segment

	2020			2019
Net sales	$	3,596.7		$	3,269.8
Percent growth	10.0		%	0.7		%
Components of percent growth in net sales–increase (decrease):
Volume and product mix	8.8		%	2.4		%
Pricing actions	1.5		%	0.1		%
Foreign exchange	(0.3)		%	(1.8)		%
Segment operating income	$	780.9		$	676.3
Segment operating income margin	21.7		%	20.7		%

Sales of our consumer segment in 2020 grew by 10.0% as compared to 2019 and grew by 10.3% on a constant currency basis. This increase was driven by sharply higher sales of our consumer business in the Americas and in EMEA, with a partial offset from a sales decline in the Asia/Pacific region. Asia/Pacific region sales declines were driven by lower sales in China, which includes the impact of away-from-home products included in its consumer portfolio. Higher volume and product mix added 8.8% to sales as measures imposed to mitigate the spread of COVID-19 resulted in a shift in consumer behavior toward at-home meal preparation. Pricing actions added 1.5% to sales as compared to the prior year period. The unfavorable impact of foreign currency exchange rates decreased consumer segment sales by 0.3% compared to 2019 and is excluded from our measure of sales growth of 10.3% on a constant currency basis.

In the Americas, consumer sales rose 13.9% in 2020 as compared to 2019 and rose by 14.0% on a constant currency basis. Higher volume and product mix added 11.9% to sales driven by significant growth across the McCormick branded portfolio. In addition, pricing actions, taken in response to higher costs, increased sales by

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2.1% as compared to the prior year period. The unfavorable impact of foreign currency exchange rates decreased sales by 0.1% compared to 2019 and is excluded from our measure of sales growth of 14.0% on a constant currency basis.

In the EMEA region, consumer sales increased 14.5% in 2020 as compared to 2019 and rose by 14.3% on a constant currency basis. Volume and product mix increased sales by 13.9%. The increase was broad based across the region with particular strength in branded spices and seasonings and homemade dessert products in France. The impact of pricing actions increased sales by 0.4%. The favorable impact of foreign currency exchange rates increased sales by 0.2% compared to 2019 and is excluded from our measure of sales growth of 14.3% on a constant currency basis.

In the Asia/Pacific region, consumer sales decreased 16.6% as compared to 2019 and decreased 15.1% on a constant currency basis. Lower volume and product mix reduced sales by 15.0%. The decrease was driven by products related to away-from-home consumption in China. Partially offsetting this decline was growth in cooking-at-home products, particularly in Australia. Pricing actions reduced sales by 0.1% as compared to 2019. The unfavorable impact from foreign currency exchange rates decreased sales by 1.5% compared to 2019 and is excluded from our measure of sales decline of 15.1% on a constant currency basis.

We grew segment operating income for our consumer segment by $104.6 million, or 15.5%, in 2020 as compared to 2019. The increase in segment operating income was driven by the impact of higher sales, as previously described, and CCI-led cost savings, partially offset by higher conversion costs, increased material costs, increased brand marketing costs and higher performance-based employee incentive expense accruals. Higher conversion costs during 2020 reflected certain matters associated with COVID-19, including the impact of temporary arrangements that increased salaries and benefits paid to our manufacturing employees as well as measures to enable manufacturing and distribution staff to maintain social distancing and permit enhanced cleaning between shifts that reduced productivity. Segment operating margin for our consumer segment rose by 100 basis points in 2020 to 21.7%, driven by an increase in consumer gross profit margin that was partially offset by an increase in SG&A expense as a percentage of net sales as compared to the 2019 period. Segment operating margin in 2020 benefited from the leverage of fixed and semi-fixed expenses over a higher sales base than compared to the 2019 level. On a constant currency basis, segment operating income for our consumer segment rose by 15.7% in 2020 in comparison to the same period in 2019.

Flavor Solutions Segment

	2020			2019
Net sales	$	2,004.6		$	2,077.6
Percent (decline) growth	(3.5)		%	1.1		%
Components of percent change in net sales–increase (decrease):
Volume and product mix	(4.2)		%	2.9		%
Pricing actions	1.8		%	0.3		%
Foreign exchange	(1.1)		%	(2.1)		%
Segment operating income	$	237.9		$	302.2
Segment operating income margin	11.9		%	14.5		%

Sales of our flavor solutions segment decreased 3.5% in 2020 as compared to 2019 and decreased by 2.4% on a constant currency basis. Driving that decrease in sales was lower demand due to the impact of the COVID-19 disruption on our restaurant and branded food service customers, particularly in the Americas and EMEA regions. Unfavorable volume and product mix decreased segment sales by 4.2% as compared to 2019, while pricing actions, taken in response to increased costs, during the period increased sales by 1.8%. The unfavorable impact of foreign currency rates decreased flavor solutions segment sales by 1.1% as compared to 2019 and is excluded from our measure of sales decline of 2.4% on a constant currency basis.

In the Americas, flavor solutions sales decreased by 3.5% in 2020 as compared to the prior year level and decreased by 2.5% on a constant currency basis. Unfavorable volume and product mix decreased flavor solutions sales in the Americas by 4.4% during 2020, driven by lower sales to branded foodservice and quick service restaurant customers, but was partially offset by higher sales to packaged food companies. Pricing actions increased sales by 1.9% as compared to the prior year period. An unfavorable impact from foreign currency rates decreased sales by 1.0% compared to 2019 and is excluded from our measure of sales decline of 2.5% on a constant currency basis.

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In the EMEA region, flavor solutions sales in 2020 decreased by 5.5% from the prior year level and decreased by 4.2% on a constant currency basis. Unfavorable volume and product mix decreased segment sales by 7.0% as compared to 2019. The decline was primarily attributable to lower sales to branded foodservice and quick service restaurant customers, partially offset by higher demand from packaged food companies. Pricing actions increased sales by 2.8% in 2020 as compared the prior year level. An unfavorable impact from foreign currency rates decreased sales by 1.3% compared to 2019 and is excluded from our measure of sales decline of 4.2% on a constant currency basis.

In the Asia/Pacific region, flavor solutions sales increased 0.4% in 2020 from the prior year level and increased by 1.6% on a constant currency basis. Favorable volume and product mix increased sales by 2.2%, driven by higher sales to quick service restaurant customers. Pricing actions decreased sales by 0.6% as compared to the prior year period. An unfavorable impact from foreign currency rates decreased sales by 1.2% compared to 2019 and is excluded from our measure of sales growth of 1.6% on a constant currency basis.

Segment operating income for our flavor solutions segment decreased by $64.3 million, or 21.3%, in 2020 as compared to 2019. The decrease in segment operating income was driven by lower sales, increased conversion costs, the impact of lower production volumes, increased material costs and higher performance-based employee incentive expense accruals that were partially offset by CCI-led cost savings. Higher conversion costs during 2020 reflected certain matters associated with COVID-19, including the impact of temporary arrangements that increased salaries and benefits paid to our manufacturing employees as well as measures to enable manufacturing and distribution staff to maintain social distancing and permit enhanced cleaning between shifts that reduced productivity, and the impact of lower production volumes of flavor solutions inventories. Segment operating margin for our flavor solutions segment decreased by 260 basis points from the prior year level to 11.9% in 2020, driven by lower flavor solutions segment gross profit margin and an increase in SG&A expense as a percent of net sales. Segment operating margin in 2020 also declined due to the deleveraging impact of fixed and semi-fixed expenses over a lower sales base as compared to the 2019 period. On a constant currency basis, segment operating income for our flavor solutions segment declined by 19.7% in 2020, as compared to the same period in 2019.

RESULTS OF OPERATIONS—2019 COMPARED TO 2018

	2019			2018
Net sales	$	5,347.4		$	5,302.8
Percent growth	0.8		%	12.1		%
Components of percent growth in net sales–increase (decrease):
Volume and product mix	2.5		%	2.2		%
Pricing actions	0.2		%	0.5		%
Acquisitions	—		%	8.2		%
Foreign exchange	(1.9)		%	1.2		%

Sales for 2019 increased by 0.8% from 2018 and by 2.7% on a constant currency basis. Both the consumer and flavor solutions segments drove higher volume and product mix that added 2.5% to sales. This was driven by product innovation as well as growth in the base business. Pricing actions added 0.2% to sales. These factors were partially offset by an unfavorable impact from foreign currency exchange rates that reduced sales by 1.9% compared to 2018 and is excluded from our measure of sales growth of 2.7% on a constant currency basis.

	2019			2018
Gross profit	$	2,145.3		$	2,093.3
Gross profit margin	40.1		%	39.5		%

In 2019, our gross profit margin increased 60 basis points to 40.1% from 39.5% in 2018, driven by the favorable impact of CCI-led cost savings, partially offset by unfavorable conversion costs.

	2019			2018
Selling, general & administrative expense	$	1,166.8		$	1,163.4
Percent of net sales	21.8		%	22.0		%

SG&A expense was $1,166.8 million in 2019 compared to $1,163.4 million in 2018, an increase of $3.4 million. That increase in SG&A expense was driven by increased stock-based compensation expense and higher distribution costs, partially offset by CCI-led cost savings. SG&A expense in 2019 also reflected the impact of two significant,

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but largely offsetting items: (i) expenses associated with our investment in a global ERP platform in support of our GE business transformation initiative that increased SG&A expense over the prior year level; and (ii) a one-time fiscal 2019 expense reduction from the alignment of an employee benefit plan to our global standard that decreased SG&A expense from the prior year level. As a result of the above factors over an increased net sales base, SG&A expense as a percent of net sales was 21.8%, a 20-basis point improvement from 2018.

	2019		2018
Total special charges	$	20.8	$	16.3

During 2019, we recorded $20.8 million of special charges, consisting primarily of (i) $14.1 million of costs related to our multi-year GE business transformation initiative, including $10.6 million of third-party expenses, $2.1 million related to severance and related benefits, and $1.4 million related to other costs; (ii) $2.3 million of severance and related benefits associated with streamlining actions in the Americas; and (iii) $3.9 million related to streamlining actions in our EMEA region.

During 2018, we recorded $16.3 million of special charges, consisting primarily of: (i) $11.5 million related to our multi-year GE business transformation initiative, consisting of $7.5 million of third party expenses, $1.0 million of employee severance charges and a non-cash asset impairment charge of $3.0 million (that non-cash asset impairment charge was related to the write-off of certain software assets that are incompatible with our move to the new global ERP platform); (ii) a one-time payment, in the aggregate amount of $2.2 million, made to eligible U.S. hourly employees to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act; (iii) $1.0 million related to employee severance benefits and other costs directly associated with the relocation of one of our Chinese manufacturing facilities; and (iv) $1.6 million related to employee severance benefits and other costs related to the transfer of certain manufacturing operations in our Asia/Pacific region to a then newly constructed facility in Thailand.

	2019		2018
Transaction and integration expenses	$	—	$	22.5

Transaction and integration expenses related to the RB Foods acquisition totaled $22.5 million for 2018. These costs primarily consisted of outside advisory, service and consulting costs; employee-related costs, and other costs related to the acquisition.

	2019			2018
Operating income	$	957.7		$	891.1
Percent of net sales	17.9		%	16.8		%

Operating income increased by $66.6 million, or 7.5%, from $891.1 million in 2018 to $957.7 million in 2019. An absence of transaction and integration expenses in 2019, compared to $22.5 million related to our acquisition of RB Foods in 2018, more than offset a $4.5 million increase in special charges in 2019 from $16.3 million in 2018 to $20.8 million in 2019. Operating income as a percent of net sales rose by 110 basis points in 2019, from 16.8% in 2018 to 17.9% in 2019 as a result of the factors previously described. Our operating income as a percent of net sales in 2019 was impacted by two large, but substantially offsetting items: (i) expenses associated with our investment in a global ERP platform in support of our GE business transformation initiative that decreased operating income as a percent of sales by approximately 35 basis points in 2019; and (ii) a one-time fiscal 2019 expense reduction from the alignment of an employee benefit plan to our global standard that increased operating income as a percent of sales by approximately 40 basis points in 2019. Excluding the effect of special charges and transaction and integration expenses previously described, adjusted operating income was $978.5 million in 2019 as compared to $929.9 million in 2018, an increase of $48.6 million or 5.2% over the 2018 level. Adjusted operating income as a percent of sales rose by 80 basis points in 2019, from 17.5% in 2018 to 18.3% in 2019.

	2019		2018
Interest expense	$	165.2	$	174.6
Other income, net	26.7		24.8

Interest expense was $9.4 million lower for 2019 as compared to the prior year primarily due to a decline in average total borrowings. Other income, net for 2019 increased by $1.9 million from the 2018 level due principally to higher non-service cost income associated with our pension and postretirement benefit plans and higher interest income, which was partially offset by a gain on the sale of a building, which was reflected in our 2018 results and did not recur in 2019.

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	2019			2018
Income from consolidated operations before income taxes	$	819.2		$	741.3
Income tax (benefit) expense	157.4			(157.3)
Effective tax rate	19.2		%	(21.2)		%

As more fully described above and in note 13 of notes to our consolidated financial statements, the U.S. Tax Act was enacted in December 2017. The U.S. Tax Act significantly changed U.S. corporate income tax laws by, among other things, reducing the U.S. corporate income tax rate to 21% beginning on January 1, 2018 and creating a territorial tax system with a one-time transition tax on previously deferred post-1986 foreign earnings of U.S. subsidiaries. Under GAAP (specifically, ASC Topic 740, Income Taxes), the effects of changes in tax rates and laws on deferred tax balances are recognized in the period in which the new legislation is enacted. We recorded a net benefit of $301.5 million associated with the U.S. Tax Act during 2018. This amount includes a $380.0 million benefit from the revaluation of our net U.S. deferred tax liabilities as of January 1, 2018, based on the new lower corporate income tax rate offset, in part, by an estimated net transition tax impact of $78.5 million. That net transition tax impact is comprised of the mandated one-time transition tax on previously deferred post-1986 foreign earnings of U.S. subsidiaries estimated at $75.3 million, together with additional foreign withholding taxes of $7.9 million associated with previously unremitted prior year earnings of certain foreign subsidiaries that were no longer considered indefinitely reinvested as of the effective date of the U.S. Tax Act and that were subsequently repatriated in 2018, less a $4.7 million reduction in our fiscal 2018 income taxes directly resulting from the transition tax. In addition, in 2019, we recorded a benefit of $1.5 million relating to an adjustment to a prior year tax accrual associated with the U.S. Tax Act.

The effective tax rate was an expense of 19.2% in 2019 as compared to a benefit of 21.2% in 2018. The effective tax rate benefit of 21.2% in 2018 includes the non-recurring net tax benefit of $301.5 million associated with the U.S. Tax Act, as more fully described above, that had a (40.7)% impact on 2018’s effective tax rate. Net discrete tax benefits were $43.7 million in 2019, which is an increase of $15.6 million from $28.1 million in 2018, excluding the non-recurring benefit of the U.S. Tax Act in 2018. For 2019, the effective tax rate was impacted by $15.2 million of tax benefits associated with an intra-entity asset transfer that occurred during 2019 under the provisions of ASU No. 2016-16, which we adopted on December 1, 2018. Discrete tax benefits in both periods include excess tax benefits associated with share-based payments to employees ($22.4 million and $21.7 million in 2019 and 2018, respectively), reversal of reserves for unrecognized tax benefits for the expiration of the statues of limitations and settlements with taxing authorities in several jurisdictions, the previously described non-recurring benefit of the U.S. Tax Act, and other discrete items. See note 13 of notes to our consolidated financial statements for a more detailed reconciliation of the U.S. federal tax rate with the effective tax rate.

	2019		2018
Income from unconsolidated operations	$	40.9	$	34.8

Income from unconsolidated operations increased $6.1 million in 2019 from the prior year. This increase was primarily attributable to the impact of higher earnings from our largest joint venture, McCormick de Mexico, as well as the impact of eliminating a lower level of earnings associated with our minority interests in 2019 as compared to 2018. We own 50% of most of our unconsolidated joint ventures, including McCormick de Mexico that comprised 72% of the income of our unconsolidated operations in 2019.

We reported diluted earnings per share of $2.62 in 2019, compared to $3.50 in 2018. The table below outlines the major components of the change in diluted earnings per share from 2018 to 2019. The increase in adjusted operating income in the table below includes the impact from unfavorable currency exchange rates in 2019.

2018 Earnings per share—diluted	$	3.50
Increase in operating income	0.15
Impact of non-recurring tax benefit recognized as a result of the U.S. Tax Act	(1.13)
Increase in special charges	(0.01)
Decrease in transaction and integration expenses	0.06
Decrease in interest expense	0.03
Increase in other income	0.01
Impact of income taxes	0.01
Increase in unconsolidated income	0.02
Impact of higher shares outstanding	(0.02)
2019 Earnings per share—diluted	$	2.62

Results of Operations—Segments

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Consumer Segment

	2019			2018
Net sales	$	3,269.8		$	3,247.0
Percent growth	0.7		%	11.9		%
Components of percent growth in net sales–increase (decrease):
Volume and product mix	2.4		%	1.7		%
Pricing actions	0.1		%	0.6		%
Acquisitions	—		%	8.2		%
Foreign exchange	(1.8)		%	1.4		%
Segment operating income	$	676.3		$	637.1
Segment operating income margin	20.7		%	19.6		%

Sales of our consumer segment in 2019 grew by 0.7% as compared to 2018 and grew by 2.5% on a constant currency basis. Higher volume and product mix added 2.4% to sales, and pricing actions added 0.1%. These factors offset an unfavorable impact from foreign currency exchange rates that reduced consumer segment sales by 1.8% compared to 2018 and is excluded from our measure of sales growth of 2.5% on a constant currency basis.

In the Americas, consumer sales rose 2.4% in 2019 as compared to 2018 and rose by 2.7% on a constant currency basis. Higher volume and product mix added 2.7% to sales, driven by new product sales as well as base business growth. The unfavorable impact of foreign currency exchange rates decreased sales by 0.3% compared to 2018 and is excluded from our measure of sales growth of 2.7% on a constant currency basis.

In the EMEA region, consumer sales decreased 5.5% in 2019 as compared to 2018 and decreased 0.2% on a constant currency basis. Volume and product mix increased sales by 1.0%, led by new products and promotions that were partially offset by declines in private label sales. The impact of pricing actions reduced sales by 1.2%. The unfavorable impact of foreign currency exchange rates decreased sales by 5.3% compared to 2018 and is excluded from our measure of sales decline of 0.2% on a constant currency basis.

In the Asia/Pacific region, consumer sales increased 0.8% as compared to 2018 and increased 5.7% on a constant currency basis. Higher volume and product mix added 2.9% to sales, led by strong sales in India and Southeast Asia. Pricing actions, primarily in China, added 2.8% to sales as compared to 2018. These factors offset an unfavorable impact from foreign currency exchange rates that decreased sales by 4.9% compared to 2018 and is excluded from our measure of sales growth of 5.7% on a constant currency basis.

We grew segment operating income for our consumer segment by $39.2 million, or 6.1%, in 2019 compared to 2018. The favorable impact of higher sales and CCI-led cost savings more than offset increased conversion costs. On a constant currency basis, segment operating income for our consumer segment rose 7.3%. Segment operating income margin for our consumer segment rose by 110 basis points to 20.7% in 2019 from 19.6% in 2018, driven by an improvement in gross margin.

Flavor Solutions Segment

	2019			2018
Net sales	$	2,077.6		$	2,055.8
Percent growth	1.1		%	12.4		%
Components of percent growth in net sales–increase (decrease):
Volume and product mix	2.9		%	3.1		%
Pricing actions	0.3		%	0.3		%
Acquisitions	—		%	8.2		%
Foreign exchange	(2.1)		%	0.8		%
Segment operating income	$	302.2		$	292.8
Segment operating income margin	14.5		%	14.2		%

Sales of our flavor solutions segment increased 1.1% in 2019 as compared to 2018 and increased by 3.2% on a constant currency basis. Higher volume and product mix added 2.9% to sales and pricing actions added 0.3%. These factors partially offset an unfavorable impact from foreign currency exchange rates that reduced flavor solutions segment sales by 2.1% compared to 2018 and is excluded from our measure of sales growth of 3.2% on a constant currency basis.

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In the Americas, flavor solutions sales rose 2.2% in 2019 as compared to 2018 and rose 2.6% on a constant currency basis. Higher volume and product mix added 2.4% to sales and included growth in new products as well as in base business, led by sales to packaged food companies. Pricing actions added 0.2% to sales in 2019. These factors offset an unfavorable impact from foreign currency exchange rates that reduced sales by 0.4% in 2019 compared to 2018 and is excluded from our measure of sales growth of 2.6% on a constant currency basis.

In the EMEA region, flavor solutions sales decreased 0.3% in 2019 as compared to 2018 and increased 6.7% on a constant currency basis. Higher volume and product mix added 5.4% to sales in 2019 with contributions from new products as well as base business growth. The increase was led by sales to quick service restaurants and packaged foods companies. Pricing actions added 1.3% to sales in 2019. These factors partially offset an unfavorable impact from foreign currency exchange rates that decreased sales by 7.0% in 2019 compared to 2018 and is excluded from our measure of sales growth of 6.7% on a constant currency basis.

In the Asia/Pacific region, flavor solutions sales decreased 3.4% in 2019 as compared to 2018 and increased 0.6% on a constant currency basis. Higher volume and product mix added 0.9% to sales and included increased sales to quick service restaurants, partially offset by the exit of certain low margin business. Pricing actions reduced sales in 2019 by 0.3%. These factors partially offset an unfavorable impact from foreign currency exchange rates that reduced sales by 4.0% in 2019 compared to 2018 and is excluded from our measure of sales growth of 0.6% on a constant currency basis.

We grew segment operating income for our flavor solutions segment by $9.4 million, or 3.2%, in 2019 compared to 2018. The increase in segment operating income was driven by higher sales as well as lower SG&A expense. On a constant currency basis, segment operating income for our flavor solutions segment rose 5.3%. Segment operating income margin for our flavor solutions segment rose by 30 basis points to 14.5% in 2019 from 14.2% in 2018 and reflected the impact of lower SG&A expense as a percentage of net sales.

NON-GAAP FINANCIAL MEASURES

The following tables include financial measures of adjusted operating income, adjusted income tax expense, adjusted income tax rate, adjusted net income and adjusted diluted earnings per share. These represent non-GAAP financial measures which are prepared as a complement to our financial results prepared in accordance with United States generally accepted accounting principles. These financial measures exclude the impact, as applicable, of the following:

•Special charges – Special charges consist of expenses associated with certain actions undertaken by the Company to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee. Upon presentation of any such proposed action (including details with respect to estimated costs, which generally consist principally of employee severance and related benefits, together with ancillary costs associated with the action that may include a non-cash component or a component which relates to inventory adjustments that are included in cost of goods sold; impacted employees or operations; expected timing; and expected savings) to the Management Committee and the Committee’s advance approval, expenses associated with the approved action are classified as special charges upon recognition and monitored on an ongoing basis through completion. In 2018, we also included in special charges, as approved by our Management Committee, expense associated with a one-time payment, made to eligible U.S. hourly employees, to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act as that non-recurring income tax benefit is excluded from our computation of adjusted income taxes, adjusted net income and adjusted diluted earnings per share, each a non-GAAP measure.

•Transaction and integration expenses associated with the Cholula, FONA and RB Foods acquisitions – We exclude certain costs associated with our acquisitions of Cholula and FONA in November and December 2020, respectively, and RB Foods in August 2017 and their subsequent integration into the Company. Such costs, which we refer to as “Transaction and integration expenses”, include transaction costs associated with each acquisition, as well as integration costs following the respective acquisition, including the impact of the acquisition date fair value adjustment for inventory, together with the impact of discrete tax items, if any, directly related to each acquisition.

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•Income taxes associated with the U.S. Tax Act – In connection with the enactment of the U.S. Tax Act in December 2017, we recorded a net non-recurring income tax benefit of $301.5 million during the year ended November 30, 2018, which included the estimated impact of the tax benefit from revaluation of net U.S. deferred tax liabilities based on the new lower corporate income tax rate and the tax expense associated with the one-time transition tax on previously unremitted earnings of non-U.S. subsidiaries. We recorded an additional net income tax benefit of $1.5 million during the year ended November 30, 2019 associated with a U.S. Tax Act related provision to return adjustment.

Details with respect to the composition of transaction and integration expenses, special charges and non-recurring income tax benefits associated with the U.S. Tax Act recorded for the years and in the amounts set forth below are included in notes 2, 3 and 13, respectively, of notes to our consolidated financial statements.

We believe that these non-GAAP financial measures are important. The exclusion of the items noted above provides additional information that enables enhanced comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects. This information is also used by management to measure the profitability of our ongoing operations and analyze our business performance and trends.

These non-GAAP financial measures may be considered in addition to results prepared in accordance with GAAP, but they should not be considered a substitute for, or superior to, GAAP results. In addition, these non-GAAP financial measures may not be comparable to similarly titled measures of other companies because other companies may not calculate them in the same manner that we do. We intend to continue to provide these non-GAAP financial measures as part of our future earnings discussions and, therefore, the inclusion of these non-GAAP financial measures will provide consistency in our financial reporting.

A reconciliation of these non-GAAP measures to GAAP financial results is provided below:

	2020			2019			2018
Operating income	$	999.5		$	957.7		$	891.1
Impact of transaction and integration expenses	12.4			—			22.5
Impact of special charges	6.9			20.8			16.3
Adjusted operating income	$	1,018.8		$	978.5		$	929.9
% increase versus prior year	4.1		%	5.2		%	18.7		%
Adjusted operating income margin (1)	18.2		%	18.3		%	17.5		%
Income tax expense (benefit)	$	174.9		$	157.4		$	(157.3)
Non-recurring benefit, net, of the U.S. Tax Act (2)	—			1.5			301.5
Impact of transaction and integration expenses	1.9			—			4.9
Impact of special charges	2.1			4.7			3.8
Adjusted income tax expense	$	178.9		$	163.6		$	152.9
Adjusted income tax rate(3)	19.9		%	19.5		%	19.6		%
Net income	$	747.4		$	702.7		$	933.4
Impact of transaction and integration expenses	10.5			—			17.6
Impact of special charges	4.8			16.1			12.5
Non-recurring benefit, net, of the U.S. Tax Act (2)	—			(1.5)			(301.5)
Adjusted net income	$	762.7		$	717.3		$	662.0
% increase versus prior year	6.3		%	8.4		%	21.1		%
Earnings per share—diluted	$	2.78		$	2.62		$	3.50
Impact of transaction and integration expenses	0.04			—			0.06
Impact of special charges	0.01			0.06			0.05
Non-recurring benefit, net, of the U.S. Tax Act (2)	—			—			(1.13)
Adjusted earnings per share—diluted	$	2.83		$	2.68		$	2.48

(1)	Adjusted operating income margin is calculated as adjusted operating income as a percent of net sales for each period presented.
(2)	The non-recurring income tax benefit, net, associated with enactment of the U.S. Tax Act of $1.5 million and $301.5 million for the years ended November 30, 2019 and 2018, respectively, is more fully described in note 13 of notes to our consolidated financial statements.
(3)	Adjusted income tax rate is calculated as adjusted income tax expense as a percent of income from consolidated operations before income taxes, excluding transaction and integration expenses and special charges, or $900.8 million, $840.0 million, and $780.1 million for the years ended November 30, 2020, 2019, and 2018, respectively.

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	Estimate for the year ending November 30, 2021
Earnings per share – diluted	$2.71 to $2.76
Impact of transaction and integration expenses (1)	0.18
Impact of special charges	0.02
Adjusted earnings per share – diluted	$2.91 to $2.96

(1) Transaction and integration expenses include estimated transaction and integration expenses associated with our acquisitions of Cholula and FONA. These expenses include anticipated transaction expenses, integration expenses, including the effect of the fair value adjustment of acquired inventory on cost of goods sold and the unfavorable impact of a discrete item on income tax expenses directly related to our December 2020 acquisition of FONA, which we expect will approximate $0.04 per diluted share, and is included in the after-tax impact of transaction and integration expenses of $0.18 per diluted share estimated for the year ending November 30, 2021.

Because we are a multi-national company, we are subject to variability of our reported U.S. dollar results due to changes in foreign currency exchange rates. Those changes have been volatile over the past several years. The exclusion of the effects of foreign currency exchange, or what we refer to as amounts expressed “on a constant currency basis,” is a non-GAAP measure. We believe that this non-GAAP measure provides additional information that enables enhanced comparison to prior periods excluding the translation effects of changes in rates of foreign currency exchange and provides additional insight into the underlying performance of our operations located outside of the U.S. It should be noted that our presentation herein of amounts and percentage changes on a constant currency basis does not exclude the impact of foreign currency transaction gains and losses (that is, the impact of transactions denominated in other than the local currency of any of our subsidiaries in their local currency reported results).

Percentage changes in sales and adjusted operating income expressed on a constant currency basis are presented excluding the impact of foreign currency exchange. To present this information for historical periods, current year results for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at the average exchange rates in effect during the prior fiscal year, rather than at the actual average exchange rates in effect during the current fiscal year. As a result, the foreign currency impact is equal to the current year results in local currencies multiplied by the change in the average foreign currency exchange rate between the current year and the prior fiscal year. The tables set forth below present our growth in net sales and adjusted operating income on a constant currency basis as follows: (1) to present our growth in net sales and adjusted operating income for 2020 on a constant currency basis, net sales and adjusted operating income for 2020 for entities reporting in currencies other than the U.S. dollar have been translated using the average foreign exchange rates in effect for 2019 and compared to the reported results for 2019; and (2) to present our growth in net sales and adjusted operating income for 2019 on a constant currency basis, net sales and operating income for 2019 for entities reporting in currencies other than the U.S. dollar have been translated using the average foreign exchange rates in effect for 2018 and compared to the reported results for 2018.

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	For the year ended November 30, 2020
	Percentage change as reported		Impact of foreign currency exchange		Percentage change on constant currency basis
Net sales:
Consumer segment:
Americas	13.9	%	(0.1)	%	14.0	%
EMEA	14.5	%	0.2	%	14.3	%
Asia/Pacific	(16.6)	%	(1.5)	%	(15.1)	%
Total Consumer	10.0	%	(0.3)	%	10.3	%
Flavor Solutions segment:
Americas	(3.5)	%	(1.0)	%	(2.5)	%
EMEA	(5.5)	%	(1.3)	%	(4.2)	%
Asia/Pacific	0.4	%	(1.2)	%	1.6	%
Total Flavor Solutions	(3.5)	%	(1.1)	%	(2.4)	%
Total net sales	4.7	%	(0.6)	%	5.3	%
Adjusted operating income:
Consumer segment	15.5	%	(0.2)	%	15.7	%
Flavor Solutions segment	(21.3)	%	(1.6)	%	(19.7)	%
Total adjusted operating income	4.1	%	(0.7)	%	4.8	%

	For the year ended November 30, 2019
	Percentage change as reported		Impact of foreign currency exchange		Percentage change on constant currency basis
Net sales:
Consumer segment:
Americas	2.4	%	(0.3)	%	2.7	%
EMEA	(5.5)	%	(5.3)	%	(0.2)	%
Asia/Pacific	0.8	%	(4.9)	%	5.7	%
Total Consumer	0.7	%	(1.8)	%	2.5	%
Flavor Solutions segment:
Americas	2.2	%	(0.4)	%	2.6	%
EMEA	(0.3)	%	(7.0)	%	6.7	%
Asia/Pacific	(3.4)	%	(4.0)	%	0.6	%
Total Flavor Solutions	1.1	%	(2.1)	%	3.2	%
Total net sales	0.8	%	(1.9)	%	2.7	%
Adjusted operating income:
Consumer segment	6.1	%	(1.2)	%	7.3	%
Flavor Solutions segment	3.2	%	(2.1)	%	5.3	%
Total adjusted operating income	5.2	%	(1.5)	%	6.7	%

To present the percentage change in projected 2021 net sales, adjusted operating income and adjusted earnings per share — diluted on a constant currency basis, 2021 projected local currency net sales, adjusted operating income, and adjusted net income for entities reporting in currencies other than the U.S. dollar are translated into U.S. dollars at currently prevailing exchange rates and are compared to those 2021 local currency projected results, translated into U.S. dollars at the average actual exchange rates in effect during the corresponding months in fiscal year 2020 to determine what the 2021 consolidated U.S. dollar net sales, adjusted operating income and adjusted earnings per share — diluted would have been if the relevant currency exchange rates had not changed from those of the comparable 2020 periods.

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	Projections for the Year Ending November 30, 2021
Percentage change in net sales	7% to 9%
Impact of favorable foreign currency exchange	2	%
Percentage change in net sales in constant currency	5% to 7%
Percentage change in adjusted operating income	8% to 10%
Impact of favorable foreign currency exchange	2	%
Percentage change in adjusted operating income in constant currency	6% to 8%
Percentage change in adjusted earnings per share— diluted	3% to 5%
Impact of favorable foreign currency exchange	2	%
Percentage change in adjusted earnings per share— diluted in constant currency	1% to 3%

In addition to the above non-GAAP financial measures, we use a leverage ratio which is determined using non-GAAP measures. A leverage ratio is a widely-used measure of ability to repay outstanding debt obligations and is a meaningful metric to investors in evaluating financial leverage. We believe that our leverage ratio is a meaningful metric to investors in evaluating our financial leverage, although our method to calculate our leverage ratio may be different than the method used by other companies to calculate such a leverage ratio. We determine our leverage ratio as net debt (which we define as total debt, net of cash in excess of $75.0 million) to adjusted earnings before interest, tax, depreciation and amortization (Adjusted EBITDA). We define Adjusted EBITDA as net income plus expenses for interest, income taxes, depreciation and amortization, less interest income and as further adjusted for cash and non-cash acquisition-related expenses (which may include the effect of the fair value adjustment of acquired inventory on cost of goods sold), special charges, stock-based compensation expenses, and certain gains or losses (which may include third party fees and expenses and integration costs). Adjusted EBITDA and our leverage ratio are both non-GAAP financial measures. Our determination of the leverage ratio is consistent with the terms of our revolving credit facilities, which require us to maintain our leverage ratio below certain levels. Under those agreements, the applicable leverage ratio is reduced periodically. As of November 30, 2020, our capacity under the revolving credit facilities was not affected by these covenants. In early fiscal 2021 following our acquisition of FONA, the levels specified in our revolving credit facilities under which we are required to maintain our leverage ratios were amended by the participating banks to increase the permitted maximum leverage ratios. We do not expect that these covenants would limit our access to our revolving credit facilities for the foreseeable future; however, the leverage ratio could restrict our ability to utilize these facilities. We expect to comply with this financial covenant for the foreseeable future.

The following table reconciles our net income to Adjusted EBITDA for the years ended November 30:

	2020		2019		2018
Net income	$	747.4	$	702.7	$	933.4
Depreciation and amortization	165.0		158.8		150.7
Interest expense	135.6		165.2		174.6
Income tax expense (benefit)	174.9		157.4		(157.3)
EBITDA	1,222.9		1,184.1		1,101.4
Adjustments to EBITDA (1)	57.5		47.9		57.3
Adjusted EBITDA	$	1,280.4	$	1,232.0	$	1,158.7
Net debt (2)	$	4,555.8	$	4,243.8	$	4,674.8
Leverage ratio (Net debt/Adjusted EBITDA) (3)	3.6		3.4		4.0

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(1)	Adjustments to EBITDA are determined under the leverage ratio covenant in our revolving credit facilities and include special charges, stock-based compensation expense, interest income and, for the years ended November 30, 2020 and 2018, transaction and integration expenses.
(2)	The leverage ratio covenant in our revolving credit facilities define net debt as the sum of short-term borrowings, current portion of long-term debt, and long-term debt, less the amount of cash and cash equivalents that exceed $75.0 million.
(3)	The leverage ratio covenant in our revolving credit facilities provide that Adjusted EBITDA also includes the pro forma impact of acquisitions. As of November 30, 2020, our leverage ratio under the terms of those agreements, including the pro forma impact of acquisitions was 3.5.

Our long-term target for our leverage ratio is 1.5 to 2.0. Our leverage ratio can be temporarily impacted by our acquisition activity.

LIQUIDITY AND FINANCIAL CONDITION

	2020		2019		2018
Net cash provided by operating activities	$	1,041.3	$	946.8	$	821.2
Net cash used in investing activities	(1,025.6)		(171.0)		(158.5)
Net cash provided by (used in) financing activities	220.9		(725.8)		(751.1)

We generate strong cash flow from operations which enables us to fund operating projects and investments that are designed to meet our growth objectives, service our debt, increase our dividend, fund capital projects and other investments, and make share repurchases when appropriate. Due to the cyclical nature of a portion of our business, our cash flow from operations has historically been the strongest during the fourth quarter.

In the cash flow statement, the changes in operating assets and liabilities are presented excluding the effects of changes in foreign currency exchange rates, as these do not reflect actual cash flows. In addition, in the cash flow statement, the changes in operating assets and liabilities are presented excluding the effect of acquired operating assets and liabilities, as the cash flows associated with acquisition of businesses is presented as an investing activity. Accordingly, the amounts in the cash flow statement do not agree with changes in the operating assets and liabilities that are presented in the balance sheet.

The reported values of our assets and liabilities held in our non-U.S. subsidiaries and affiliates can be significantly affected by fluctuations in foreign exchange rates between periods. At November 30, 2020, the exchange rates for the Euro, British pound sterling, Canadian dollar, Australian dollar, Chinese renminbi and Polish zloty were higher versus the U.S. dollar than at November 30, 2019. During 2020, we have seen greater-than-normal fluctuations in foreign exchanges rates as a result of increased market volatility driven by the global COVID-19 pandemic.

Operating Cash Flow – Operating cash flow was $1,041.3 million in 2020, $946.8 million in 2019, and $821.2 million in 2018. The increases in cash flow from operations in both 2020 and 2019 were primarily due to higher net income, exclusive of the 2018 impact of the non-cash non-recurring net income tax benefit of $309.4 million related to the U.S. Tax Act. In addition, as more fully described below, our working capital management impacted operating cash flow. In 2020, the increases to operating cash flow were the result of a significantly lower use of cash associated with other assets and liabilities, including the timing of certain employee incentive and customer related payments, which was partially offset by the use of cash associated with working capital, driven by the increased level of inventory to meet demand. In 2019 and 2018, our working capital management favorably impacted operating cash flow. In 2019, those increases were partially offset by a use of cash associated with other assets and liabilities, totaling $81.5 million. In 2018, those increases were partially offset by a higher use of cash from other operating assets and liabilities partially related to the timing of our payment of transaction and integration expenses as well as of interest on indebtedness related to our acquisition of RB Foods.

Our working capital management – principally related to inventory, trade accounts receivable, and accounts payable – impacts our operating cash flow. The change in inventory had a significant impact on the variability in cash flow from operations. It was a use of cash in 2020, 2019 and 2018. The change in trade accounts receivable was a source of cash in 2020, 2019 and 2018. The change in accounts payable was a significant source of cash in all three years.

In addition to operating cash flow, we also use cash conversion cycle (CCC) to measure our working capital management. This metric is different than operating cash flow in that it uses average balances instead of specific point in time measures. CCC is a calculation of the number of days, on average, that it takes us to convert a cash outlay for resources, such as raw materials, to a cash inflow from collection of accounts receivable. Our goal is to lower our CCC over time. We calculate CCC as follows:

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Days sales outstanding (average trade accounts receivable divided by average daily net sales) plus days in inventory (average inventory divided by average daily cost of goods sold) less days payable outstanding (average trade accounts payable divided by average daily cost of goods sold plus the average daily change in inventory).

The following table outlines our cash conversion cycle (in days) over the last three years:

	2020	2019	2018
Cash Conversion Cycle	39	43	55

The decreases in CCC in 2020 from 2019 and in 2019 from 2018 were due, in both instances, to an increase in our days payable outstanding as a result of extending our payment terms to suppliers, as more fully described below, and to a lesser extent, by a decrease in our days sales outstanding. Our CCC is also impacted by days in inventory which increased in 2020 as compared to 2019 and also in 2019 as compared to 2018.

Prior to fiscal 2018, in response to evolving market practices, we began a program to negotiate extended payment terms with our suppliers. We also initiated a Supply Chain Finance program (SCF) with several global financial institutions (SCF Banks). Under the SCF, qualifying suppliers may elect to sell their receivables from us to an SCF Bank. These participating suppliers negotiate their receivables sales arrangements directly with the respective SCF Bank. While we are not party to those agreements, the SCF Banks allow the participating suppliers to utilize our creditworthiness in establishing credit spreads and associated costs. This generally provides the suppliers with more favorable terms than they would be able to secure on their own. We have no economic interest in a supplier’s decision to sell a receivable. Once a qualifying supplier elects to participate in the SCF and reaches an agreement with a SCF Bank, the supplier elects which of our individual invoices they sell to the SCF bank. However, all of our payments to participating suppliers are paid to the SCF Bank on the invoice due date, regardless of whether the individual invoice is sold by the supplier to the SCF Bank. The SCF Bank pays the supplier on the invoice due date for any invoices that were not previously sold by the supplier to the SCF Bank.

The terms of our payment obligation are not impacted by a supplier’s participation in the SCF. Our payment terms with our suppliers for similar materials within individual markets are consistent between those suppliers that elect to participate in the SCF and those suppliers that do not participate. Accordingly, our average days outstanding are not significantly impacted by the portion of suppliers or related input costs that are included in the SCF. For our participating suppliers, we believe substantially all of their receivables with us are sold to the SCF Banks. Accordingly, we would expect that at each balance sheet date, a similar proportion of amounts originally due to suppliers would instead be payable to SCF Banks. All outstanding amounts related to suppliers participating in the SCF are recorded within the line entitled "Trade accounts payable" in our consolidated balance sheets, and the associated payments are included in operating activities within our consolidated statements of cash flows. As of November 30, 2020 and 2019, the amount due to suppliers participating in the SCF and included in "Trade accounts payable" were approximately $273.6 million and $206.5 million, respectively.

Future changes in our suppliers’ financing policies or economic developments, such as changes in interest rates, general market liquidity or our creditworthiness relative to participating suppliers could impact those suppliers’ participation in the SCF and/or our ability to negotiate extended payment terms with our suppliers. However, any such impacts are difficult to predict.

Investing Cash Flow – Net cash used in investing activities was $1,025.6 million in 2020, $171.0 million in 2019, and $158.5 million in 2018. Our primary investing cash flows include the usage of cash associated with acquisition of businesses and capital expenditures. Cash usage related to our acquisitions of businesses were $803.0 million in 2020 and $4.2 million in 2018. Capital expenditures, including expenditures for capitalized software, were $225.3 million in 2020, $173.7 million in 2019, and $169.1 million in 2018. We expect 2021 capital expenditures to approximate $265 million to support our planned growth, including the multi-year program to replace our ERP system and other initiatives.

Financing Cash Flow – Net cash associated with financing activities was a source of cash of $220.9 million in 2020. Net cash used in financing activities was $725.8 million in 2019 and $751.1 million in 2018. The variability between years is principally a result of changes in our net borrowings, share repurchase activity and dividends, all as described below.

The following table outlines our net borrowing activities:

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	2020		2019		2018
Net increase in short-term borrowings	$	286.5	$	41.0	$	305.5
Proceeds from issuance of long-term debt, net of debt issuance costs	525.9		—		25.9
Repayments of long-term debt	(257.7)		(447.7)		(797.9)
Net cash provided from (used in) borrowing activities	$	554.7	$	(406.7)	$	(466.5)

In 2020, we borrowed $527.0 million under long-term borrowing arrangements, including net proceeds of $495.0 million of 2.5% notes due April 2030. We also repaid $257.7 million of long-term debt, including $250.0 million associated with our term loans due in August 2020.

In 2019, we repaid $447.7 million of long-term debt, including $436.3 million of our $1,500.0 million term loans issued in August 2017.

In 2018, we borrowed $25.9 million under long-term borrowing arrangements. In 2018, we repaid $797.9 million of long-term debt, including the $250 million 5.75% notes that matured on December 15, 2017 and $545.0 million of our $1,500.0 million term loans issued in August 2017.

Through November 30, 2020, we have repaid in full the $1,500.0 million term loans issued in connection with our acquisition of RB Foods in August 2017, with a total of $1,275.0 million of those term loans repaid in advance of their scheduled maturities, which were in August 2020 and August 2022.

The following table outlines the activity in our share repurchase programs:

	2020		2019		2018
Number of shares of common stock	0.5		1.3		1.1
Dollar amount	$	47.3	$	95.1	$	62.3

As of November 30, 2020, $585 million remained of a $600 million share repurchase program that was authorized by our Board of Directors in November 2019. The timing and amount of any shares repurchased is determined by our management based on its evaluation of market conditions and other factors. As a result of the increased level of indebtedness related to the acquisition of RB Foods in August 2017, we curtailed our share repurchase activity since that time. Although we have curtailed our share repurchase activity, we repurchased shares in 2020, 2019 and 2018 to mitigate the effect of shares issued upon the exercise of stock options. As a result of the additional indebtedness associated with our acquisitions of Cholula and FONA, we expect to continue the curtailment of share repurchase activity in fiscal 2021 while also continuing to mitigate the effect of shares issued upon the exercise of stock options.

During 2020, 2019 and 2018, we received proceeds of $56.6 million, $90.9 million and $78.2 million, respectively, from exercised stock options. We repurchased $13.0 million, $12.7 million and $11.6 million of common stock during 2020, 2019 and 2018, respectively, in conjunction with employee tax withholding requirements associated with our stock compensation plans.

Our dividend history over the past three years is as follows:

	2020			2019			2018
Total dividends paid	$	330.1		$	302.2		$	273.4
Dividends paid per share	1.24			1.14			1.04
Percentage increase per share	8.8		%	9.6		%	10.6		%

In November 2020, the Board of Directors approved an 9.7% increase in the quarterly dividend from $0.31 to $0.34 per share.

The following table presents our leverage ratios for the years ended November 30, 2020, 2019 and 2018:

	2020	2019	2018
Leverage ratio (1)	3.6	3.4	4.0

(1)The leverage ratio covenant in our revolving credit facilities provides that Adjusted EBITDA under that covenant also include the pro forma impact of acquisitions, as applicable. As of November 30, 2020, our leverage ratio under the terms of those revolving credit facilities, including the pro forma impact of acquisitions, was 3.5.

Our leverage ratio was 3.6 as of November 30, 2020, as compared to the ratios of 3.4 and 4.0 as of November 30, 2019 and 2018, respectively. The increase in our leverage ratio from 3.4 as of November 30, 2019 to 3.6 as of November 30, 2020 is principally due to an increase in total debt associated with the funding of our acquisition of Cholula, which was partially offset by an increase in adjusted EBITDA.

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The decrease in the ratio from 4.0 as of November 30, 2018 to 3.4 as of November 30, 2019 is principally due to an increase in our adjusted EBITDA, which was driven by higher operating income in 2019 as compared to 2018. In addition, the ratio was favorably impacted by our lower level of net debt at November 30, 2019 as compared to the prior year-end.

In early fiscal 2021 following our acquisition of FONA, the levels specified in our revolving credit facilities under which we are required to maintain our leverage ratios were amended by the participating banks to increase the permitted maximum leverage ratios. As amended, the maximum permitted leverage ratios under the terms of those revolving credit facilities, including the pro form impact of acquisitions, is 4.5 as of the measurement date at the end of each fiscal quarter in the year ending November 30, 2021. That maximum ratio drops to 4.25 on February 28, 2022, and drops to 3.75 for each fiscal quarter for the remaining term of the facility. At the same time in early fiscal 2021, a similar amendment was made to our synthetic lease agreement for a to-be-constructed distribution center, which contains covenants consistent with our revolving credit facilities.

Most of our cash is in our subsidiaries outside of the U.S. We manage our worldwide cash requirements by considering available funds among the many subsidiaries through which we conduct our business and the cost effectiveness with which those funds can be accessed. Prior to the enactment of the U.S. Tax Act on December 22, 2017, the permanent repatriation of cash balances from certain of our non-U.S. subsidiaries could have had adverse tax consequences; however, those balances are generally available without legal restrictions to fund ordinary business operations, capital projects and future acquisitions. As of November 30, 2020, we have $1.3 billion of earnings from our non-U.S. subsidiaries and joint ventures that are considered indefinitely reinvested. While federal income tax expense has been recognized as a result of the U.S. Tax Act, we have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income taxes, or foreign exchange gains or losses. It is not practicable for us to determine the amount of unrecognized tax expense on these indefinitely reinvested foreign earnings.

At November 30, 2020, we temporarily used $100.0 million of cash from our non-U.S. subsidiaries to pay down short-term debt in the U.S. During the year, our short-term borrowings vary, but are lower at the end of a year or quarter. The average short-term borrowings outstanding for the years ended November 30, 2020 and 2019 were $518.1 million and $848.6 million, respectively. Those average short-term borrowings outstanding for the year ended November 30, 2020 included average commercial paper outstanding of $452.0 million. The total average debt outstanding for the years ended November 30, 2020 and 2019 was $4,327.4 million and $4,753.8 million, respectively.

See notes 6 and 8 of notes to our consolidated financial statements for further details of these transactions.

Credit and Capital Markets – The following summarizes the more significant impacts of credit and capital markets on our business:

CREDIT FACILITIES – Cash flows from operating activities are our primary source of liquidity for funding growth, share repurchases, dividends and capital expenditures. We also rely on our revolving credit facilities, or borrowings backed by these facilities, to fund seasonal working capital needs and other general corporate requirements.

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In August 2017, we entered into a five-year $1.0 billion revolving credit facility, which will expire in August 2022. The current pricing for the credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. In December 2020, we entered into a 364-day $1.0 billion revolving credit facility, which will expire in December 2021. The current pricing for that 364-day credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the 364-day credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. In early fiscal 2021, following our acquisition of FONA, the levels specified in our revolving credit facilities under which we are required to maintain our leverage ratios were amended by the participating banks to increase the permitted maximum leverage ratios. Our long-term target for our leverage ratio is 1.5 to 2.0. Our leverage ratio can be temporarily impacted by our acquisition activity.

We generally use these revolving credit facilities to support our issuance of commercial paper. If the commercial paper market is not available or viable, we could borrow directly under our revolving credit facilities. These facilities are made available by a syndicate of banks, with various commitments per bank. If any of the banks in this syndicate are unable to perform on their commitments, our liquidity could be impacted, which could reduce our ability to grow through funding of seasonal working capital. We engage in regular communication with all banks participating in our credit facilities. During these communications, none of the banks have indicated that they may be unable to perform on their commitments. In addition, we periodically review our banking and financing relationships, considering the stability of the institutions and other aspects of the relationships. Based on these communications and our monitoring activities, we believe our banks will perform on their commitments. In addition to our committed revolving credit facilities, we have uncommitted facilities of $316.6 million as of November 30, 2020 that can be withdrawn based upon the lenders' discretion. See note 6 of notes to our consolidated financial statements for more details on our financing arrangements.

We will continue to have cash requirements to support seasonal working capital needs and capital expenditures, to pay interest, to service debt, and to fund acquisitions. To meet those cash requirements, we intend to use our existing cash, cash equivalents and internally generated funds, to borrow under our existing credit facilities or under other short-term borrowing facilities, and depending on market conditions and upon the significance of the cost of a particular acquisition to our then-available sources of funds, to obtain additional short- and long-term financing. We believe that cash provided from these sources will be adequate to meet our cash requirements over the next twelve months. We recently funded the Cholula and FONA acquisitions with cash and short-term borrowings, principally under commercial paper. We will continue to monitor our liquidity and may seek to obtain additional long-term financing to further support our business.

PENSION ASSETS AND OTHER INVESTMENTS – We hold investments in equity and debt securities in both our qualified defined benefit pension plans and through a rabbi trust for our nonqualified defined benefit pension plan. Cash contributions to pension plans, including unfunded plans, were $11.9 million in 2020, $11.4 million in 2019, and $13.5 million in 2018. It is expected that the 2021 total pension plan contributions will be approximately $10.0 million. Future increases or decreases in pension liabilities and required cash contributions are highly dependent on changes in interest rates and the actual return on plan assets. We base our investment of plan assets, in part, on the duration of each plan’s liabilities. Across all of our qualified defined benefit pension plans, approximately 59% of assets are invested in equities, 31% in fixed income investments and 10% in other investments. Assets associated with our nonqualified defined benefit pension plan are primarily invested in corporate-owned life insurance, the value of which approximates an investment mix of 60% in equities and 40% in fixed income investments. See note 11 of notes to our consolidated financial statements, which provides details on our pension funding.

CUSTOMERS AND COUNTERPARTIES – See the subsequent section of this discussion under the heading "Market Risk Sensitivity–Credit Risk".

ACQUISITIONS

Acquisitions are part of our strategy to increase sales and profits.

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In early fiscal 2021, we purchased FONA. The purchase price was approximately $710 million, net of cash acquired, subject to certain customary purchase price adjustments. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets. Our acquisition of FONA on December 30, 2020 expands the breadth of our flavor solutions segment into attractive categories, as well as extends our technology platform and strengthens our capabilities. The acquisition was funded with cash and short-term borrowings.

On November 30, 2020, we purchased Cholula for approximately $803 million, net of cash acquired, subject to certain customary purchase price adjustments. The acquisition was funded with cash and short-term borrowings. Cholula, a premium Mexican hot sauce brand, is a strong addition to McCormick’s global branded flavor portfolio, which broadens the Company’s offering in the high growth hot sauce category to consumers and foodservice operators and accelerates our condiment growth opportunities with a complementary authentic Mexican flavor hot sauce. The results of Cholula’s operations have been included in our financial statements as a component of our consumer and flavor solutions segments from the date of acquisition.

We did not have any acquisitions in fiscal 2019.

In fiscal 2018, we purchased the remaining 10% minority ownership interest in our Shanghai subsidiary for a cash payment of $12.7 million.

See notes 2 and 19 of notes to our consolidated financial statements for further details regarding these acquisitions.

PERFORMANCE GRAPH — SHAREHOLDER RETURN

The following line graph compares the yearly change in McCormick’s cumulative total shareholder return (stock price appreciation plus reinvestment of dividends) on McCormick’s Non-Voting Common Stock with (1) the cumulative total return of the Standard & Poor’s 500 Stock Price Index, assuming reinvestment of dividends, and (2) the cumulative total return of the Standard & Poor’s Packaged Foods & Meats Index, assuming reinvestment of dividends.

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MARKET RISK SENSITIVITY

We utilize derivative financial instruments to enhance our ability to manage risk, including foreign exchange and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instrument. The use of derivative financial instruments is monitored through regular communication with senior management and the utilization of written guidelines. The information presented below should be read in conjunction with notes 6 and 8 of notes to our consolidated financial statements.

Foreign Exchange Risk – We are exposed to fluctuations in foreign currency in the following main areas: cash flows related to raw material purchases; the translation of foreign currency earnings to U.S. dollars; the effects of foreign currency on loans between subsidiaries and unconsolidated affiliates and on cash flows related to repatriation of earnings of unconsolidated affiliates. Primary exposures include the U.S. dollar versus the Euro, British pound sterling, Canadian dollar, Polish zloty, Australian dollar, Mexican peso, Swiss franc, Chinese renminbi, Indian rupee and Thai baht, as well as the Euro versus the British pound sterling and Australian dollar, and finally the Canadian dollar versus British pound sterling. We routinely enter into foreign currency exchange contracts to manage certain of these foreign currency risks.

During 2020, the foreign currency translation component in other comprehensive income was principally related to the impact of exchange rate fluctuations on our net investments in our subsidiaries with a functional currency of the British pound sterling, Euro, Polish zloty, Chinese yuan, Australian dollar, Canadian dollar and Mexican peso.

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We also utilize cross currency interest rate swap contracts, which are designated as net investment hedges, to manage the impact of exchange rate fluctuations on our net investments in subsidiaries with a functional currency of the British pound sterling and Euro. Gains and losses on these instruments are included in foreign currency translation adjustments in accumulated other comprehensive income (loss).

The following table summarizes the foreign currency exchange contracts held at November 30, 2020. All contracts are valued in U.S. dollars using year-end 2020 exchange rates and have been designated as hedges of foreign currency transactional exposures, firm commitments or anticipated transactions.

FOREIGN CURRENCY EXCHANGE CONTRACTS AT NOVEMBER 30, 2020

Currency sold	Currency received	Notional value		Average contractual exchange rate	Fair   value
British pound sterling	U.S. dollar	$	31.6	1.32	$	(0.4)
Euro	U.S. dollar	29.2		1.19	(0.3)
Canadian dollar	U.S. dollar	96.4		0.76	(1.4)
U.S. dollar	Australian dollar	14.0		0.68	1.2
Polish zloty	U.S. dollar	6.9		3.79	(0.1)
Canadian dollar	British pound sterling	30.0		1.74	(0.1)
British pound sterling	Euro	36.4		0.90	(0.1)
Australian dollar	Euro	45.1		1.67	(1.1)
Swiss franc	U.S. dollar	73.1		1.04	(4.6)

We had a number of smaller contracts at November 30, 2020 with an aggregate notional value of $21.1 million to purchase or sell other currencies, such as the Romanian leu, Russian ruble, and Singapore dollar. The aggregate fair value of these contracts was $0.1 million at November 30, 2020.

At November 30, 2019, we had foreign currency exchange contracts for the Euro, British pound sterling, Canadian dollar, Australian dollar, Polish zloty, Swiss franc and other currencies, with a notional value of $489.2 million. The aggregate fair value of these contracts was a loss of $0.3 million at November 30, 2019.

We also utilized cross currency interest rate swap contracts that are considered net investment hedges. As of November 30, 2020, we had cross currency interest rate swap contracts of (i) $250 million notional value to receive $250 million at three-month U.S. LIBOR plus 0.685% and pay £194.1 million at three-month GBP LIBOR plus 0.740% and (ii) £194.1 million notional value to receive £194.1 million at three-month GBP LIBOR plus 0.740% and pay €221.8 million at three-month Euro EURIBOR plus 0.808%. We entered into these cross-currency interest rate swap contracts, which expire in August 2027, in early fiscal 2019. For more information, refer to note 8 of notes to our consolidated financial statements.

Interest Rate Risk – Our policy is to manage interest rate risk by entering into both fixed and variable rate debt arrangements. We also use interest rate swaps to minimize worldwide financing costs and to achieve a desired mix of fixed and variable rate debt. The table that follows provides principal cash flows and related interest rates, excluding the effect of interest rate swaps and the amortization of any discounts or fees, by fiscal year of maturity at November 30, 2020. For foreign currency-denominated debt, the information is presented in U.S. dollar equivalents. Variable interest rates are based on the weighted-average rates of the portfolio at the end of the year presented.

YEARS OF MATURITY AT NOVEMBER 30, 2020

	2021			2022			2023			2024			Thereafter			Total		Fair value
Debt
Fixed rate	$	257.2		$	757.6		$	257.8		$	763.2		$	1,902.1		$	3,937.9	$	4,294.1
Average interest rate	3.89		%	2.71		%	3.50		%	3.50		%	2.68		%	—		—
Variable rate	$	893.4		$	7.4		$	7.4		$	28.7		$	12.7		$	949.6	$	949.7
Average interest rate	0.34		%	1.38		%	1.38		%	1.73		%	1.78		%	—		—

The table above displays the debt, including capital leases, by the terms of the original debt instrument without consideration of fair value, interest rate swaps and any loan discounts or origination fees. Interest rate swaps have the following effects:

•We issued $250 million of 3.90% notes due in 2021 in July 2011. Forward treasury lock agreements, settled upon the issuance of these notes in 2011, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 4.01%.

•We issued $250 million of 3.50% notes due in 2023 in August 2013. Forward treasury lock agreements settled upon issuance of these notes effectively set the interest rate on these notes at a weighted-average fixed rate of 3.30%.

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•We issued $250 million of 3.25% notes due in 2025 in November 2015. Forward treasury lock agreements settled upon issuance of these notes effectively set the interest rate on these notes at a weighted-average fixed rate of 3.45%. The fixed interest rate on $100 million of the 3.25% notes due in December 2025 was effectively converted to a variable rate by interest rate swaps through 2025. Net interest payments are based on 3-month LIBOR plus 1.22% during this period.

•We issued an aggregate amount of $2.5 billion of senior unsecured notes in August 2017. These notes are due as follows: $750 million due August 15, 2022, $700 million due August 15, 2024, $750 million due August 15, 2027 and $300 million due August 15, 2047 with stated fixed interest rates of 2.70%, 3.15%, 3.40% and 4.20%, respectively. Forward treasury lock agreements settled upon issuance of the $750 million notes due August 15, 2027 effectively set the interest rate on these $750 million notes at a weighted-average fixed rate of 3.44%. The fixed interest rate on $250 million of the 3.40% notes due in 2027 was effectively converted to a variable rate by interest rate swaps through 2027. Net interest payments are based on 3-month LIBOR plus 0.685% during this period.

Commodity Risk – We purchase certain raw materials which are subject to price volatility caused by weather, market conditions, growing and harvesting conditions, governmental actions and other factors beyond our control. In 2020, our most significant raw materials were dairy products, pepper, vanilla, capsicums (red peppers and paprika), garlic, onion, rice and wheat flour. While future movements of raw material costs are uncertain, we respond to this volatility in a number of ways, including strategic raw material purchases, purchases of raw material for future delivery and customer price adjustments. We generally have not used derivatives to manage the volatility related to this risk. To the extent that we have used derivatives for this purpose, it has not been material to our business.

Credit Risk – The customers of our consumer segment are predominantly food retailers and food wholesalers. Consolidations in these industries have created larger customers. In addition, competition has increased with the growth in alternative channels including mass merchandisers, dollar stores, warehouse clubs, discount chains and e-commerce. This has caused some customers to be less profitable and increased our exposure to credit risk. Some of our customers and counterparties are highly leveraged. We continue to closely monitor the credit worthiness of our customers and counterparties. We feel that the allowance for doubtful accounts properly recognizes trade receivables at realizable value. We consider nonperformance credit risk for other financial instruments to be insignificant.

CONTRACTUAL OBLIGATIONS AND COMMERCIAL COMMITMENTS

The following table reflects a summary of our contractual obligations and commercial commitments as of November 30, 2020:

CONTRACTUAL CASH OBLIGATIONS DUE BY YEAR

	Total		Less than 1 year		1–3   years		3–5   years		More than 5 years
Short-term borrowings	$	886.7	$	886.7	$	—	$	—	$	—
Long-term debt, including finance leases	4,000.8		263.9		1,030.2		1,063.3		1,643.4
Operating leases	164.1		40.5		56.7		35.1		31.8
Interest payments(a)	862.5		124.4		208.5		145.1		384.5
Raw material purchase obligations(b)	505.5		505.5		—		—		—
Pension and post-retirement benefit plans(c)	184.3		14.9		23.6		23.5		122.3
Other purchase obligations(d)	116.3		46.7		32.0		7.4		30.2
Total contractual cash obligations(e)	$	6,720.2	$	1,882.6	$	1,351.0	$	1,274.4	$	2,212.2

(a)Interest payments include interest payments on short-term borrowings and long-term debt. See notes 6 and 7 of notes to our consolidated financial statements for additional information.

(b)Raw material purchase obligations outstanding as of year-end may not be indicative of outstanding obligations throughout the year due to our response to varying raw material cycles.

(c)Represents the minimum pension contributions for our U.S. and international pension plans, which are generally determined for the next fiscal year, and our expected benefit payments under our post-retirement medical plan.

(d)Other purchase obligations consist of information technology and other service agreements, advertising media commitments and utility contracts.

(e)Contractual obligations do not include any potential future tax settlements. See note 13 of notes to our consolidated financial statements for additional information.

Pension and postretirement funding can vary significantly each year due to changes in legislation, our significant assumptions and investment return on plan assets. As a result, we have not presented pension and postretirement funding in the table above.

COMMERCIAL COMMITMENTS EXPIRATION BY YEAR

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	Total		Less than 1 year		1–3   years		3–5   years		More than 5 years
Guarantees(a)	$	0.7	$	0.7	$	—	$	—	$	—
Standby letters of credit	32.2		32.2		—		—		—
Total commercial commitments	$	32.9	$	32.9	$	—	$	—	$	—

(a)Guarantees do not include any amounts associated with a residual value guarantee that we provide under a lease arrangement, which is more fully described in note 7 of notes to our consolidated financial statements.

OFF-BALANCE SHEET ARRANGEMENTS

We had no off-balance sheet arrangements as of November 30, 2020 and 2019.

RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS

New accounting pronouncements are issued periodically that affect our current and future operations. See note 1 of notes to our consolidated financial statements for further details of these impacts.

CRITICAL ACCOUNTING ESTIMATES AND ASSUMPTIONS

In preparing the financial statements, we are required to make estimates and assumptions that have an impact on the assets, liabilities, revenue and expenses reported. These estimates can also affect supplemental information disclosed by us, including information about contingencies, risk and financial condition. We believe, given current facts and circumstances, our estimates and assumptions are reasonable, adhere to U.S. GAAP and are consistently applied. Inherent in the nature of an estimate or assumption is the fact that actual results may differ from estimates, and estimates may vary as new facts and circumstances arise. In preparing the financial statements, we make routine estimates and judgments in determining the net realizable value of accounts receivable, inventory, fixed assets and prepaid allowances. Our most critical accounting estimates and assumptions are in the following areas:

Customer Contracts

In several of our major geographic markets, the consumer segment sells our products by entering into annual or multi-year customer arrangements. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding these programs. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one-year or shorter duration. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized.

Goodwill and Intangible Asset Valuation

We review the carrying value of goodwill and non-amortizable intangible assets and conduct tests of impairment on an annual basis as described below. We also test for impairment if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is below its carrying amount. We test indefinite-lived intangible assets for impairment if events or changes in circumstances indicate that the asset might be impaired.

Determining the fair value of a reporting unit or an indefinite-lived purchased intangible asset is judgmental in nature and involves the use of significant estimates and assumptions. We base our fair value estimates on assumptions we believe to be reasonable but that are inherently uncertain. Actual future results may differ from those estimates.

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Goodwill Impairment
Our reporting units are the same as our operating segments. We estimate the fair value of a reporting unit by using a discounted cash flow model. Our discounted cash flow model calculates fair value by present valuing future expected cash flows of our reporting units using our internal cost of capital as the discount rate. We then compare this fair value to the carrying amount of the reporting unit, including intangible assets and goodwill. If the carrying amount of the reporting unit exceeds the estimated fair value, then we would determine the implied fair value of the reporting unit’s goodwill. An impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the implied fair value. As of November 30, 2020, we had $4,986.3 million of goodwill recorded in our balance sheet ($3,711.2 million in the consumer segment and $1,275.1 million in the flavor solutions segment). Included in those amounts are $410.5 million ($273.7 million in the consumer segment and $136.8 million in the flavor solutions segment) of goodwill related to our acquisition of Cholula that, as of November 30, 2020, was determined on a preliminary basis. The final valuation of the acquired net assets of Cholula, and the related goodwill balance by segment, will be completed in 2021.Our fiscal year 2020 impairment testing indicated that the estimated fair values of our reporting units were significantly in excess of their carrying values. Accordingly, we believe that only significant changes in the cash flow assumptions would result in an impairment of goodwill.

Indefinite-lived Intangible Asset Impairment

Our indefinite-lived intangible assets consist of brand names and trademarks. We estimate fair values primarily through the use of the relief-from-royalty method and then compare those fair values to the related carrying amounts of the indefinite-lived intangible asset. In the event that the fair value of any of the brand names or trademarks are less than their related carrying amounts, a non-cash impairment loss would be recognized in an amount equal to the difference.

The estimation of fair values of our brand names and trademarks requires us to make significant assumptions, including expectations with respect to sales and profits of the respective brands and trademarks, related royalty rates and appropriate discount rates, which are based, in part, upon current interest rates adjusted for our view of reasonable country- and brand-specific risks based upon the past and anticipated future performance of the related brand names and trademarks.

As of November 30, 2020, we had $3,030.0 million of brand name assets and trademarks recorded in our balance sheet, and none of the balances exceeded their estimated fair values at that date. Of the $3,030.0 million of brand names assets and trademarks as of November 30, 2020: (i) $2,320.0 million relates to the French’s, Frank’s RedHot and Cattlemen’s brand names and trademarks, recognized as part of our acquisition of RB Foods in August 2017, that we group for purposes of our impairment analysis; (ii) $380.0 million relates to the Cholula brand names and trademarks, recognized as part of the preliminary purchase price allocation associated with the acquisition of Cholula in November 2020, and (iii) the remaining $330.0 million represents a number of other brand name assets and trademarks with individual carrying values ranging from $0.2 million to $106.4 million. The percentage excess of estimated fair value over respective book values for each of our brand names and trademarks, including the $2,320.0 million related to our French’s, Frank's RedHot and Cattlemen’s brands was 20% or more as of November 30, 2020, except for: (i) the Cholula brand, whose preliminary fair value of $380.0 million was determined as of its November 30, 2020 acquisition date; and (ii) one additional brand with a carrying value of $7.4 million whose fair value modestly exceeds its carrying value as of year-end 2020.

The brand names and trademarks related to recent acquisitions, including our recent acquisitions of Cholula and, in early fiscal 2021, FONA, may be more susceptible to future impairment as their carrying values represent recently determined fair values. A change in assumptions with respect to recently acquired businesses, including those affected by rising interest rates or a deterioration in expectations of future sales, profitability or royalty rates as well as future economic and market conditions, or higher income tax rates, could result in non-cash impairment losses in the future.

Income Taxes

We estimate income taxes and file tax returns in each of the taxing jurisdictions in which we operate and are required to file a tax return. At the end of each year, an estimate for income taxes is recorded in the financial statements. Tax returns are generally filed in the third or fourth quarter of the subsequent year. A reconciliation of the estimate to the final tax return is done at that time, which will result in changes to the original estimate. We believe that our tax return positions are appropriately supported, but tax authorities may challenge certain positions. We evaluate our uncertain tax positions in accordance with the GAAP guidance for uncertainty in income taxes. We believe that our reserve for uncertain tax positions, including related interest, is adequate. The amounts ultimately paid upon resolution of audits could be materially different from the amounts previously included in our income tax expense and, therefore, could have a material impact on our tax provision, net income and cash flows. We have

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recorded valuation allowances to reduce our deferred tax assets to the amount that is more likely than not to be realized. In doing so, we have considered future taxable income and tax planning strategies in assessing the need for a valuation allowance. Both future taxable income and tax planning strategies include a number of estimates.

Pension and Postretirement Benefits

Pension and other postretirement plans’ costs require the use of assumptions for discount rates, investment returns, projected salary increases, mortality rates and health care cost trend rates. The actuarial assumptions used in our pension and postretirement benefit reporting are reviewed annually and compared with external benchmarks to ensure that they appropriately account for our future pension and postretirement benefit obligations. While we believe that the assumptions used are appropriate, differences between assumed and actual experience may affect our operating results. A 1% increase or decrease in the actuarial assumption for the discount rate would impact 2021 pension and postretirement benefit expense by approximately $1 million. A 1% increase or decrease in the expected return on plan assets would impact 2021 pension expense by approximately $10 million.

We will continue to evaluate the appropriateness of the assumptions used in the measurement of our pension and other postretirement benefit obligations. In addition, see note 11 of notes to our consolidated financial statements for a discussion of these assumptions and the effects on the financial statements.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

This information is set forth in the “Market Risk Sensitivity” section of “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in note 8 of our notes to consolidated financial statements.

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ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

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REPORT OF MANAGEMENT

We are responsible for the preparation and integrity of the consolidated financial statements appearing in our Annual Report. The consolidated financial statements were prepared in conformity with United States generally accepted accounting principles and include amounts based on our estimates and judgments. All other financial information in this report has been presented on a basis consistent with the information included in the financial statements.

We are also responsible for establishing and maintaining adequate internal control over financial reporting. We maintain a system of internal control that is designed to provide reasonable assurance as to the fair and reliable preparation and presentation of the consolidated financial statements, as well as to safeguard assets from unauthorized use or disposition.

Our control environment is the foundation for our system of internal control over financial reporting and is embodied in our Business Ethics Policy. It sets the tone of our organization and includes factors such as integrity and ethical values. Our internal control over financial reporting is supported by formal policies and procedures which are reviewed, modified and improved as changes occur in business conditions and operations.

The Audit Committee of the Board of Directors, which is composed solely of independent directors, meets periodically with members of management, the internal auditors and the independent registered public accounting firm to review and discuss internal control over financial reporting and accounting and financial reporting matters. The independent registered public accounting firm and internal auditors report to the Audit Committee and accordingly have full and free access to the Audit Committee at any time.

We conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework in Internal Control - Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework). This assessment included review of the documentation of controls, evaluation of the design effectiveness of controls, testing of the operating effectiveness of controls and a conclusion on this assessment. Although there are inherent limitations in the effectiveness of any system of internal control over financial reporting, based on our assessment, we have concluded with reasonable assurance that our internal control over financial reporting was effective as of November 30, 2020.

Our internal control over financial reporting as of November 30, 2020 has been audited by Ernst & Young LLP.

Lawrence E. Kurzius

Chairman, President &

Chief Executive Officer

Michael R. Smith

Executive Vice President &

Chief Financial Officer

Christina M. McMullen

Vice President & Controller

Chief Accounting Officer

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of McCormick & Company, Incorporated

Opinion on Internal Control over Financial Reporting

We have audited McCormick & Company, Incorporated’s internal control over financial reporting as of November 30, 2020, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, McCormick & Company, Incorporated (the Company) maintained, in all material respects, effective internal control over financial reporting as of November 30, 2020, based on the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of November 30, 2020 and 2019, the related consolidated income statements, statements of comprehensive income, cash flow statements and statements of shareholders’ equity for each of the three years in the period ended November 30, 2020, and the related notes and the financial statement schedule listed in the Index at item 15(2) and our report dated January 28, 2021 expressed an unqualified opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Report of Management. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Baltimore, Maryland

January 28, 2021

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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

To the Shareholders and the Board of Directors of McCormick & Company, Incorporated

Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of McCormick & Company, Incorporated (the Company) as of November 30, 2020 and 2019, the related consolidated income statements, statements of comprehensive income, cash flow statements and statements of shareholders’ equity for each of the three years in the period ended November 30, 2020, and the related notes and financial statement schedule listed in the Index at item 15(2) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at November 30, 2020 and 2019, and the results of its operations and its cash flows for each of the three years in the period ended November 30, 2020, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of November 30, 2020, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) and our report dated January 28, 2021 expressed an unqualified opinion thereon.

Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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	Valuation of Indefinite-lived Intangible Assets
Description of the Matter	At November 30, 2020, the Company's indefinite-lived intangible assets consist of brand names and trademarks with an aggregate carrying value of approximately $3.0 billion (of which $0.4 billion related to the Cholula brand name, which was acquired on November 30, 2020). As explained in Note 1 to the consolidated financial statements, these assets are assessed for impairment at least annually primarily using the relief-from-royalty methodology to determine their fair values. If the fair value of any of the brand names or trademarks is less than its carrying amount, an impairment loss is recognized in an amount equal to the difference. Auditing the Company's impairment assessments was complex due to the significant estimation required in determining the fair value of the brand names and trademarks. Significant management judgment is also involved in determining whether individual brand names and trademarks should be grouped for purposes of the fair value determination or must be evaluated individually. The Company's methodologies for estimating the fair value of these assets involve significant assumptions and inputs, including projected financial information for net sales and operating profit by brand, royalty rates, and discount rates, all of which are sensitive to and affected by economic, industry, and company-specific qualitative factors. These significant assumptions and inputs are forward-looking and could be affected by future economic and market conditions.
How We Addressed the Matter in Our Audit	We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over the Company’s indefinite-lived intangible asset review process, including controls over management’s review of its asset groupings and the significant assumptions described above. We tested controls over the review of methodologies used, significant assumptions and inputs, and completeness and accuracy of the data used in the measurements. To test the estimated fair value of the Company’s indefinite-lived intangible assets, we performed audit procedures that included, among others, evaluating the asset groupings used by the Company to perform its impairment assessment, assessing the methodologies and testing the significant assumptions discussed above and the underlying data used by the Company in its analyses. We compared the significant assumptions to current industry, market and economic trends, to the Company's historical results, to other guideline companies within the same industry, and to other relevant data. In addition, we evaluated management’s ability to estimate revenues by comparing the current year actual revenues for certain brand names or trademarks to the estimates made in the Company’s prior year impairment assessment. We also performed sensitivity analyses of the significant assumptions to evaluate the potential change in the fair values of the brand names and trademarks resulting from hypothetical changes in underlying assumptions. We involved an internal valuation specialist to assist in our evaluation of the methodologies used and significant assumptions and inputs used to determine the fair value of certain brand names and trademarks.
	Valuation of Acquired Intangible Assets
Description of the Matter	During 2020, the Company completed its acquisition of the parent company of Cholula Hot Sauce (“Cholula”) for net consideration of $803 million, and recognized identifiable intangible assets of $401 million, as disclosed in Note 2 to the consolidated financial statements. The transaction was accounted for as a business combination. Auditing the Company's purchase accounting for its acquisition of Cholula was complex due to the significant estimation required by management to determine the fair value of the acquired intangible assets, which principally consisted of brand names and trademarks. The estimation complexity was primarily due to the valuation models used to measure the fair value of the intangible assets and the sensitivity of the respective fair values to the significant underlying assumptions. The significant assumptions used to estimate the fair value of the intangible assets included discount rates, royalty rates and certain assumptions that form the basis of the forecasted results (e.g., revenue growth rates and operating profit margin). These significant assumptions are forward-looking and could be affected by future economic and market conditions.

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How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company's controls over its accounting for acquisitions. For example, we tested controls over the recognition and measurement of intangible assets, including the valuation models and underlying assumptions used to develop such estimates. We also tested management’s controls over the completeness and accuracy of the data used in the models.

To test the estimated fair value of the intangible assets, we performed audit procedures that included, among others, evaluating the Company's valuation models and testing the significant assumptions used in the models, as well as testing the completeness and accuracy of the underlying data. We compared the significant assumptions to current industry, market and economic trends, to the assumptions used to value similar assets in other acquisitions, and to the historical results of the acquired business. We also involved an internal valuation specialist to assist in our evaluation of the significant assumptions and those procedures included the completion of independent calculations of the fair value of the acquired intangible assets.

We have served as the Company’s auditor since 1982.

Baltimore, Maryland

January 28, 2021

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CONSOLIDATED INCOME STATEMENTS

for the year ended November 30 (millions except per share data)	2020		2019		2018
Net sales	$	5,601.3	$	5,347.4	$	5,302.8
Cost of goods sold	3,300.9		3,202.1		3,209.5
Gross profit	2,300.4		2,145.3		2,093.3
Selling, general and administrative expense	1,281.6		1,166.8		1,163.4
Transaction and integration expenses	12.4		—		22.5
Special charges	6.9		20.8		16.3
Operating income	999.5		957.7		891.1
Interest expense	135.6		165.2		174.6
Other income, net	17.6		26.7		24.8
Income from consolidated operations before income taxes	881.5		819.2		741.3
Income tax expense (benefit)	174.9		157.4		(157.3)
Net income from consolidated operations	706.6		661.8		898.6
Income from unconsolidated operations	40.8		40.9		34.8
Net income	$	747.4	$	702.7	$	933.4
Earnings per share–basic	$	2.80	$	2.65	$	3.55
Earnings per share–diluted	$	2.78	$	2.62	$	3.50

See Notes to Consolidated Financial Statements.

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 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

for the year ended November 30 (millions)	2020		2019		2018
Net income	$	747.4	$	702.7	$	933.4
Net income attributable to non-controlling interest	4.3		1.9		3.3
Other comprehensive income (loss):
Unrealized components of pension and other postretirement plans (including curtailment gains of $18.0 for 2018)	(80.4)		(149.8)		72.6
Currency translation adjustments	89.7		(25.5)		(119.8)
Change in derivative financial instruments	(0.9)		1.1		2.3
Deferred taxes	18.1		33.2		(17.2)
Total other comprehensive income (loss)	26.5		(141.0)		(62.1)
Comprehensive income	$	778.2	$	563.6	$	874.6

See Notes to Consolidated Financial Statements.

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CONSOLIDATED BALANCE SHEETS

at November 30 (millions)	2020		2019
Assets
Cash and cash equivalents	$	423.6	$	155.4
Trade accounts receivable, less allowances of $5.2 for 2020 and $5.6 for 2019	528.5		502.9
Inventories	1,032.6		801.2
Prepaid expenses and other current assets	98.9		90.7
Total current assets	2,083.6		1,550.2
Property, plant and equipment, net	1,028.4		952.6
Goodwill	4,986.3		4,505.2
Intangible assets, net	3,239.4		2,847.0
Other long-term assets	752.0		507.1
Total assets	$	12,089.7	$	10,362.1
Liabilities
Short-term borrowings	$	886.7	$	600.7
Current portion of long-term debt	263.9		97.7
Trade accounts payable	1,032.3		846.9
Other accrued liabilities	863.6		609.1
Total current liabilities	3,046.5		2,154.4
Long-term debt	3,753.8		3,625.8
Deferred taxes	727.2		697.6
Other long-term liabilities	622.2		427.6
Total liabilities	8,149.7		6,905.4
Shareholders’ equity
Common stock, no par value; authorized 320.0 shares; issued and outstanding: 2020–18.0 shares, 2019–18.6 shares	484.0		447.6
Common stock non-voting, no par value; authorized 320.0 shares; issued and outstanding: 2020–248.9 shares, 2019–247.2 shares	1,497.3		1,441.0
Retained earnings	2,415.6		2,055.8
Accumulated other comprehensive loss	(470.8)		(500.2)
Total McCormick shareholders’ equity	3,926.1		3,444.2
Non-controlling interests	13.9		12.5
Total shareholders’ equity	3,940.0		3,456.7
Total liabilities and shareholders’ equity	$	12,089.7	$	10,362.1

See Notes to Consolidated Financial Statements.

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CONSOLIDATED CASH FLOW STATEMENTS

for the year ended November 30 (millions)	2020		2019		2018
Operating activities
Net income	$	747.4	$	702.7	$	933.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	165.0		158.8		150.7
Stock-based compensation	46.0		37.2		25.6
Non-cash nonrecurring income tax benefit (related to enactment of the U.S. Tax Act)	—		—		(309.4)
Non-cash special charges	—		—		3.0
Loss (gain) on sale of assets	3.0		(1.6)		(5.4)
Deferred income tax (benefit) expense	(11.2)		20.9		40.1
Income from unconsolidated operations	(40.8)		(40.9)		(34.8)
Changes in operating assets and liabilities (net of effect of businesses acquired):
Trade accounts receivable	4.8		12.2		19.8
Inventories	(200.2)		(20.9)		(10.0)
Trade accounts payable	164.2		128.2		72.8
Other assets and liabilities	133.8		(81.5)		(91.8)
Dividends received from unconsolidated affiliates	29.3		31.7		27.2
Net cash provided by operating activities	1,041.3		946.8		821.2
Investing activities
Acquisitions of businesses (net of cash acquired)	(803.0)		—		(4.2)
Capital expenditures (including expenditures for capitalized software)	(225.3)		(173.7)		(169.1)
Other investing activities	2.7		2.7		14.8
Net cash used in investing activities	(1,025.6)		(171.0)		(158.5)
Financing activities
Short-term borrowings, net	286.5		41.0		305.5
Long-term debt borrowings	527.0		—		25.9
Payment of debt issuance costs	(1.1)		—		—
Long-term debt repayments	(257.7)		(447.7)		(797.9)
Proceeds from exercised stock options	56.6		90.9		78.2
Taxes withheld and paid on employee stock awards	(13.0)		(12.7)		(11.6)
Payment of contingent consideration	—		—		(2.5)
Purchase of minority interest	—		—		(13.0)
Common stock acquired by purchase	(47.3)		(95.1)		(62.3)
Dividends paid	(330.1)		(302.2)		(273.4)
Net cash provided by (used in) financing activities	220.9		(725.8)		(751.1)
Effect of exchange rate changes on cash and cash equivalents	31.6		8.8		(1.8)
Increase (decrease) in cash and cash equivalents	268.2		58.8		(90.2)
Cash and cash equivalents at beginning of year	155.4		96.6		186.8
Cash and cash equivalents at end of year	$	423.6	$	155.4	$	96.6

See Notes to Consolidated Financial Statements.

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CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

(millions)	Common Stock Shares	Common Stock Non-Voting Shares	Common Stock Amount		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Non-controlling Interests		Total Shareholders’ Equity
Balance, November 30, 2017	20.0	242.0	$	1,672.9	$	1,166.5	$	(279.5)	$	11.0	$	2,570.9
Net income			—		933.4		—		—		933.4
Net income attributable to non-controlling interest			—		—		—		3.3		3.3
Other comprehensive income (loss), net of tax			—		—		(59.5)		(2.6)		(62.1)
Dividends			—		(280.5)		—		—		(280.5)
Adoption of ASU 2018-02			—		20.9		(20.9)		—		—
Buyout of minority interest			—		(12.4)		—		(0.4)		(12.8)
Stock-based compensation			25.6		—		—		—		25.6
Shares purchased and retired	(0.6)	(0.8)	(16.8)		(67.7)		—		—		(84.5)
Shares issued	3.4	0.2	88.9		—		—		—		88.9
Equal exchange	(3.7)	3.7	—		—		—		—		—
Balance, November 30, 2018	19.1	245.1	$	1,770.6	$	1,760.2	$	(359.9)	$	11.3	$	3,182.2
Net income			—		702.7		—		—		702.7
Net income attributable to non-controlling interest			—		—		—		1.9		1.9
Other comprehensive loss, net of tax			—		—		(140.3)		(0.7)		(141.0)
Dividends			—		(309.3)		—		—		(309.3)
Stock-based compensation			37.2		—		—		—		37.2
Shares purchased and retired	(0.4)	(1.2)	(15.4)		(97.8)		—		—		(113.2)
Shares issued	3.0	0.2	96.2		—		—		—		96.2
Equal exchange	(3.1)	3.1	—		—		—		—		—
Balance, November 30, 2019	18.6	247.2	$	1,888.6	$	2,055.8	$	(500.2)	$	12.5	$	3,456.7
Net income			—		747.4		—		—		747.4
Net income attributable to non-controlling interest			—		—		—		4.3		4.3
Other comprehensive income (loss), net of tax			—		—		29.4		(2.9)		26.5
Dividends			—		(338.5)		—		—		(338.5)
Stock-based compensation			46.0		—		—		—		46.0
Shares purchased and retired	(0.3)	(0.2)	(13.6)		(49.1)		—		—		(62.7)
Shares issued	1.6	—	60.3		—		—		—		60.3
Equal exchange	(1.9)	1.9	—		—		—		—		—
Balance, November 30, 2020	18.0	248.9	$	1,981.3	$	2,415.6	$	(470.8)	$	13.9	$	3,940.0

See Notes to Consolidated Financial Statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.  SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

The financial statements include the accounts of our majority-owned or controlled subsidiaries and affiliates. Intercompany transactions have been eliminated. Investments in unconsolidated affiliates, over which we exercise significant influence, but not control, are accounted for by the equity method. Accordingly, our share of net income or loss of unconsolidated affiliates is included in net income.

Foreign Currency Translation

For majority-owned or controlled subsidiaries and affiliates, if located outside of the U.S., with functional currencies other than the U.S. dollar, asset and liability accounts are translated at the rates of exchange at the balance sheet date and the resultant translation adjustments are included in accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Income and expense items are translated at average monthly rates of exchange. Gains and losses from foreign currency transactions of these majority-owned or controlled subsidiaries and affiliates — that is, transactions denominated in other than their functional currency — other than intercompany transactions designated as long-term investments, are included in net earnings.

Our unconsolidated affiliates located outside the U.S. generally use their local currencies as their functional currencies. The asset and liability accounts of those unconsolidated affiliates are translated at the rates of exchange at the balance sheet date, with the resultant translation adjustments included in accumulated other comprehensive income (loss) of those affiliates. Income and expense items of those affiliates are translated at average monthly rates of exchange. We record our ownership share of the net assets and accumulated other comprehensive income (loss) of our unconsolidated affiliates in our consolidated balance sheet on the lines entitled “Other long-term assets” and “Accumulated other comprehensive loss,” respectively. We record our ownership share of the net income of our unconsolidated affiliates in our consolidated income statement on the line entitled “Income from unconsolidated operations.”

Use of Estimates

Preparation of financial statements that follow accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual amounts could differ from these estimates.

Cash and Cash Equivalents

All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined under the first-in, first-out costing method (FIFO), including the use of average costs which approximate FIFO.

Property, Plant and Equipment

Property, plant and equipment is stated at historical cost and depreciated over its estimated useful life using the straight-line method for financial reporting and both accelerated and straight-line methods for tax reporting. The estimated useful lives range from 20 to 50 years for buildings and 3 to 12 years for machinery, equipment and other assets. Assets leased under capital leases are depreciated over the shorter of the lease term or their useful lives unless it is reasonably certain that we will obtain ownership by the end of the lease term. Repairs and maintenance costs are expensed as incurred.

Computer Software

We capitalize costs of software developed or obtained for internal use. Capitalized software development costs include only (1) direct costs paid to others for materials and services to develop or buy the software, (2) payroll and payroll-related costs for employees who work directly on the software development project and (3) interest costs while developing the software. Capitalization of these costs stops when the project is substantially complete and ready for use.

The net book value of capitalized software totaled $116.0 million and $76.4 million at November 30, 2020 and 2019, respectively. Such amounts are recorded within "Other long-term assets" in the consolidated balance sheet. Software is amortized using the straight-line method over a range of 3 to 13 years, but not exceeding the expected life of the product. The net book value of capitalized software includes $86.7 million and $44.9 million at November

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30, 2020 and 2019, respectively, which had not yet been placed into service and relates to our future implementation of a global enterprise resource planning (ERP) system.

Goodwill and Other Intangible Assets

We review the carrying value of goodwill and indefinite-lived intangible assets and conduct tests of impairment on an annual basis as described below. We also test goodwill for impairment if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is below its carrying amount and test indefinite-lived intangible assets for impairment if events or changes in circumstances indicate that the asset might be impaired. Separable intangible assets that have finite useful lives are amortized over those lives.

Determining the fair value of a reporting unit or an indefinite-lived purchased intangible asset is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, assumed royalty rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from these estimates.

Goodwill Impairment

Our reporting units used to assess potential goodwill impairment are the same as our business segments. We calculate fair value of a reporting unit by using a discounted cash flow model and then compare that to the carrying amount of the reporting unit, including intangible assets and goodwill. If the carrying amount of the reporting unit exceeds the calculated fair value, we would determine the implied fair value of the reporting unit’s goodwill. An impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the implied fair value.

Indefinite-lived Intangible Asset Impairment

Our indefinite-lived intangible assets consist of acquired brand names and trademarks. We primarily determine fair value by using a relief-from-royalty method and then compare that to the carrying amount of the indefinite-lived intangible asset. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment charge would be recorded to the extent the recorded indefinite-lived intangible asset exceeds the fair value.

Long-lived Asset Impairment

Fixed assets and amortizable intangible assets are reviewed for impairment as events or changes in circumstances occur indicating that the carrying value of the asset may not be recoverable. Undiscounted cash flow analyses are used to determine if an impairment exists. If an impairment is determined to exist, the loss would be calculated based on the excess of the asset’s carrying value over its estimated fair value.

Revenue Recognition

We manufacture, market and distribute spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retailers, food manufacturers and foodservice businesses. We recognize sales as performance obligations are fulfilled when control passes to the customer. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates and returns, are estimated at the time of sale. Any taxes collected on behalf of government authorities are excluded from net sales. We account for product shipping and handling as fulfillment activities with costs for these activities recorded within cost of goods sold. Amounts billed and due from our customers are classified as accounts receivable on the balance sheet and require payment on a short-term basis. Our allowance for doubtful accounts represents our estimate of probable non-payments and credit losses in our existing receivables, as determined based on a review of past due balances and other specific account data.

The following table sets forth our net sales by the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) geographic regions:

(millions)	Americas		EMEA		APAC		Total
2020
Net sales	$	3,974.9	$	1,046.7	$	579.7	$	5,601.3
2019
Net sales	$	3,711.3	$	986.1	$	650.0	$	5,347.4
2018
Net sales	$	3,627.5	$	1,021.1	$	654.2	$	5,302.8

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Performance Obligations

Our revenues primarily result from contracts or purchase orders with customers, which generally are both short-term in nature and have a single performance obligation—the delivery of our products to customers. We assess the goods and services promised in our customers’ contracts or purchase orders and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised, whether explicitly stated or implied based on customary business practices.

Significant Judgments

Sales are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding these programs. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one-year or shorter duration. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. The adjustments recognized during the year ended November 30, 2020, 2019 and 2018 resulting from updated estimates of revenue for prior year product sales were not significant. The unsettled portion remaining in accrued liabilities for these activities was $183.3 million and $137.2 million at November 30, 2020 and 2019, respectively.

Practical Expedients

We have elected the following policy elections and practical expedients with respect to revenue recognition:

•Shipping and handling costs — We elected to account for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service.

•Measurement of transaction price — We elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer for sales, value added and other excise taxes.

•Incremental cost of obtaining a contract — We elected to expense any incremental costs of obtaining a contract when the contract is for a period of one year or less.

Shipping and Handling

Shipping and handling costs on our products sold to customers related to activities that occur before the customer has obtained control of a good are included in cost of goods sold in the consolidated income statement.

Brand Marketing Support

Total brand marketing support costs, which are included in our consolidated income statement in the line entitled "Selling, general and administrative expense", were $230.3 million, $214.6 million and $218.7 million for 2020, 2019 and 2018, respectively. Brand marketing support costs include advertising and promotions but exclude trade funds paid to customers for such activities. All trade funds paid to customers are reflected in the consolidated income statement as a reduction of net sales. Promotion costs include public relations, shopper marketing, social marketing activities, general consumer promotion activities and depreciation of assets used in these promotional activities. Advertising costs include the development, production and communication of advertisements through television, digital, print and radio. Development and production costs are expensed in the period in which the advertisement is first run. All other costs of advertising are expensed as incurred. Advertising expense was $174.8 million, $150.8 million and $147.2 million for 2020, 2019 and 2018, respectively.

Research and Development

Research and development costs are expensed as incurred and are included in our consolidated income statement in the line entitled "Selling, general and administrative expense". Research and development expense was $68.6 million, $67.3 million and $69.4 million for 2020, 2019 and 2018, respectively.

Income Taxes

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Income taxes are recognized in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

As more fully described in note 13, the U.S. Tax Act created a new requirement that certain income earned by foreign subsidiaries, referred to as Global Intangible Low-Taxed Income (GILTI), must be included in the gross income of the subsidiary’s U.S. shareholder; this provision of the U.S. Tax Act was effective for us beginning on December 1, 2018. Accounting principles generally accepted in the U.S. provide for an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current period expense when incurred. We have elected to treat GILTI as a current period expense when incurred.

In accordance with ASC 740, Income Taxes, we recognize a tax position in our financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. That position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.

Stock-Based Compensation

Stock-based compensation expense is recognized in accordance with ASC 718, Compensation – Stock Compensation. We recognize stock-based compensation expense associated with options and restricted stock units (RSUs), which contain provisions that such awards fully vest upon an employee’s retirement, ratably over the shorter of the vesting period or the employees’ retirement eligibility date. Accordingly, we recognize stock-based compensation associated with options and RSUs subject to immediate retirement eligible vesting provisions on the date of grant.

Compensation expense associated with our long-term performance plan (LTPP) is recorded in the income statement ratably over the three-year period of the program based on the number of shares ultimately expected to be awarded using our estimate of the most likely outcome of achieving the performance objectives. We estimate forfeitures at the time of grant based on historical experience and revises this estimate in subsequent periods if actual forfeitures differ.

We recognize stock-based compensation expense associated with price-vested stock options ratably over the vesting period as such options do not contain provisions that fully vest these awards upon an employee’s retirement.

Stock Split

On September 28, 2020, our Board of Directors approved a 2-for-1 stock split in the form of a stock dividend on all shares of the Company’s two classes of common stock, Common Stock and Common Stock Non-Voting. On November 30, 2020, one like share was issued for each share outstanding to shareholders of record as of November 20, 2020. Trading of the Company’s common stock began on a split-adjusted basis on December 1, 2020. All common stock and per-share data have been retroactively adjusted for the impact of the stock split.

Derivative Instruments

We record all derivatives on our balance sheet at fair value. The fair value of derivative instruments is recorded in our consolidated balance sheet on the lines entitled “Other current assets", "Other long-term assets", "Other accrued liabilities" or "Other long-term liabilities". Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in our consolidated income statement in the lines entitled "Other income (expense), net" or "Interest expense". In our consolidated cash flow statement, settlements of cash flow and fair value hedges are classified as operating activities; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instruments.

Cash flow hedges.  Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in our consolidated balance sheet on the line entitled “Accumulated other comprehensive income (loss)" until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from "Accumulated other comprehensive income (loss)" in our consolidated balance sheet to our consolidated income statement on the same line items as the underlying transactions.

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Fair value hedges.  Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item.

Net investment hedges.  Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments, a component of “Accumulated other comprehensive income (loss)" in our consolidated balance sheet.

Employee Benefit and Retirement Plans

We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees.

We recognize the overfunded or underfunded status of our defined benefit pension plans as an asset or a liability in our balance sheet, with changes in the funded status recorded through other comprehensive income in the year in which those changes occur.

The expected return on plan assets is determined using the expected rate of return and a calculated value of plan assets referred to as the market-related value of plan assets. Differences between assumed and actual returns are amortized to the market-related value of assets on a straight-line basis over five years.

We use the corridor approach in the valuation of defined benefit pension and postretirement benefit plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. Those unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining life expectancy of retired plan participants, for plans whose benefits have been frozen, or the average remaining service period to retirement date of active plan participants.

Accounting Pronouncements Adopted in 2020

We adopted the new accounting standard for leases, Accounting Standards Codification Topic 842 Leases (ASC 842), as of December 1, 2019 and we elected to do so using a modified retrospective transition method. That modified retrospective transition method allowed us to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to retained earnings in the opening balance sheet in the period of adoption without restating prior periods. ASC 842 revised prior practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors and requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use (ROU) assets. Under ASC 842, the lease liability is equal to the present value of lease payments, and the ROU asset is based on the lease liability, subject to adjustments, such as for deferred rent and initial direct costs. For income statement purposes, ASC 842 retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases result in straight-line expense (similar to prior accounting by lessees for operating leases under ASC 840) while finance leases result in a front-loaded expense pattern (similar to prior accounting by lessees for capital leases under ASC 840).

We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification. In addition, we made accounting policy elections to combine the lease and non-lease components for all asset categories other than real estate. We also made elections to exclude from balance sheet reporting those leases with initial terms of 12 months or less (short-term leases).

Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of $136.5 million and $140.0 million, respectively, with the difference due to prepaid and deferred rents that were reclassified to the ROU asset value. No cumulative-effect adjustment to opening retained earnings was required as of December 1, 2019. The standard did not materially affect our consolidated net income or cash flows for our fiscal year ended November 30, 2020. See note 7 for further details.

Recently Issued Accounting Pronouncements — Pending Adoption

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In January 2017, the FASB issued ASU No. 2017-04 Intangibles—Goodwill and Other Topics (Topic 350)—Simplifying the Test for Goodwill Impairment. This guidance eliminates the requirement to calculate the implied fair value of goodwill of a reporting unit to measure a goodwill impairment charge. Instead, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2021. We do not expect this guidance to have a material impact on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which institutes a new model for recognizing credit losses on financial instruments that are not measured at fair value. The new standard is effective for the first quarter of our fiscal year ending November 30, 2021, and it will primarily impact our credit losses recognized for trade accounts receivable. This guidance will not have a material impact on our consolidated financial statements. 

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes. The new guidance removes certain exceptions to the general principles for income taxes and also improves consistent application of accounting by clarifying or amending existing guidance. The new standard is effective for the first quarter of our fiscal year ending November 30, 2022, and interim periods within those years. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides optional expedients for a limited period of time for accounting for contracts, hedging relationship, and other transactions affected by the London Interbank Offered Rate (LIBOR) or other reference rate expected to be discontinued. These optional expedients can be applied from March 2020 through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

2.  ACQUISITIONS

Acquisitions are part of our strategy to increase sales and profits.

Acquisition of Cholula Hot Sauce

On November 30, 2020, we completed the acquisition of the parent company of Cholula Hot Sauce® (Cholula) from L Catterton. The purchase price was approximately $803.0 million, net of cash acquired, subject to certain customary purchase price adjustments. The acquisition was funded with cash and short-term borrowings. Cholula, a premium Mexican hot sauce brand, is a strong addition to McCormick’s global branded flavor portfolio, which we believe broadens our offering in the high growth hot sauce category to consumers and foodservice operators and accelerate our condiment growth opportunities with a complementary authentic Mexican flavor hot sauce. At the time of the acquisition, annual sales of Cholula were approximately $96 million. The results of Cholula’s operations have been included in our financial statements as a component of our consumer and flavor solutions segments from the date of acquisition.

The purchase price of Cholula was preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We estimated the fair values based on in-process independent valuations, discounted cash flow analyses, quoted market prices, and estimates made by management, a number of which are subject to finalization. The allocation of the purchase price will be finalized within the allowable measurement period. The preliminary allocation, net of cash acquired, of the fair value of the Cholula acquisition is summarized in the table below (in millions):

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Trade accounts receivable	$	15.2
Inventories	16.5
Goodwill	410.5
Intangible assets	401.0
Other assets	12.5
Trade accounts payable	(6.8)
Other accrued liabilities	(7.4)
Deferred taxes	(35.6)
Other long-term liabilities	(2.9)
Total	$	803.0

The preliminary fair value of intangible assets was determined using income methodologies. We valued the acquired brand names and trademarks using the relief from royalty method, an income approach. For customer relationships, we used the distributor method, a variation of the excess earnings method that uses distributor-based inputs for margins and contributory asset charges. Some of the more significant assumptions inherent in developing the preliminary valuations included the estimated annual net cash flows for each indefinite-lived or definite-lived intangible asset (including net sales, operating profit margin, and working capital/contributory asset charges), royalty rates, the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management plans, and market comparables.

We used carrying values to value trade receivables and payables, as well as certain other current and non-current assets and liabilities, as we determined that they represented the fair value of those items. We valued finished goods and work-in-process inventory using a net realizable value approach, which resulted in a step-up of $4.9 million that will be recognized in cost of goods sold in 2021 as the related inventory is sold. Raw materials and packaging inventory was valued using the replacement cost approach.

Deferred income tax assets and liabilities represent the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases.

The preliminary valuation of the acquired net assets of Cholula includes $380.0 million allocated to indefinite-lived brand assets and $21.0 million allocated to definite-lived intangible assets with a weighted-average life of 15 years. As a result of the acquisition, we recognized a total of $410.5 million of goodwill. That goodwill primarily represents the intangible assets that do not qualify for separate recognition, such as the value of leveraging our brand building expertise, our insights in demand from consumer and flavor solutions customers for value-added flavor solutions, and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. Our income tax basis in the acquired intangible assets and goodwill approximates $285 million. The final allocation of the fair value of the Cholula acquisition, including the allocation of goodwill to our reporting units, which are the consumer and flavor solutions segments, was not complete as of November 30, 2020, but will be finalized within the allowable measurement period.

We expect transaction and integration expenses related to our acquisition of Cholula to total approximately $35 million, of which $11.2 million of transaction expenses were incurred in 2020. We anticipate incurring the balance of those transaction and integration expenses in fiscal 2021. We incurred an additional $1.2 million of transaction and integration expenses in 2020 related to our acquisition of FONA International, LLC and certain of its affiliates. See footnote 19 for additional details.

The impact of Cholula on our 2020 consolidated income before taxes, was principally the effect of the previously noted transaction expenses, and an insignificant amount of interest expense.

Acquisition of RB Foods

On August 17, 2017, we completed the acquisition of Reckitt Benckiser's Food Division (RB Foods) from Reckitt Benckiser Group plc. The purchase price was approximately $4.21 billion. In December 2017, we paid $4.2 million associated with the final working capital adjustment.

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Total transaction and integration expenses related to the RB Foods acquisition totaled $22.5 million in 2018, of which $0.3 million and $22.2 million represented transaction expenses and integration expenses, respectively.

Other Acquisitions

On September 21, 2018, we purchased the remaining 10% ownership interest in our Shanghai subsidiary for a cash payment of $12.7 million. In conjunction with our purchase of this remaining 10% minority interest, we have eliminated the minority interest in that subsidiary and recorded an adjustment of $12.4 million to retained earnings in our consolidated balance sheet. The $12.7 million payment is reflected in the financing activities section of our consolidated cash flow statement for 2018.

3.  SPECIAL CHARGES

In our consolidated income statement, we include a separate line item captioned “Special charges” in arriving at our consolidated operating income. Special charges consist of expenses, including related impairment charges, associated with certain actions undertaken to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee, comprised of our senior management, including our Chairman, President and Chief Executive Officer. Upon presentation of any such proposed action (generally including details with respect to estimated costs, which typically consist principally of employee severance and related benefits, together with ancillary costs associated with the action that may include a non-cash component, such as an asset impairment, or a component which relates to inventory adjustments that are included in cost of goods sold; impacted employees or operations; expected timing; and expected savings) to the Management Committee and the Committee’s advance approval, expenses associated with the approved action are classified as special charges upon recognition and monitored on an on-going basis through completion. Certain ancillary expenses related to these actions approved by our Management Committee do not qualify for accrual upon approval but are included as special charges as incurred during the course of the actions. In 2018, we also included in special charges, as approved by our Management Committee, expense associated with a one-time payment, made to eligible U.S. hourly employees, to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act and as more fully described in note 13.

The following is a summary of special charges recognized for the years ended November 30 (in millions):

	2020		2019		2018
Employee severance and related benefits	$	4.1	$	6.2	$	2.0
Other costs (1)	2.8		14.6		14.3
Total special charges	$	6.9	$	20.8	$	16.3

(1)    Included in other costs for 2018 are non-cash fixed asset impairment charges of $3.0 million.

The following is a summary of special charges by business segments for the years ended November 30 (in millions):

	2020		2019		2018
Consumer segment	$	5.5	$	13.1	$	10.0
Flavor solutions segment	1.4		7.7		6.3
Total special charges	$	6.9	$	20.8	$	16.3

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We continue to evaluate changes to our organization structure to reduce fixed costs, simplify or improve processes, and improve our competitiveness.

During 2020, we recorded $6.9 million of special charges, consisting of (i) $5.3 million related to streamlining actions in our EMEA region, including $3.8 million related to severance and related benefits and $1.0 million of third party expenses and $0.5 million related to other costs; and (ii) $1.6 million related to our GE initiative. Of the $6.9 million in special charges recorded during 2020, approximately $4.8 million were paid in cash, with the remaining accrual expected to be paid in 2021. As of November 30, 2020, reserves associated with special charges are included in the line entitled "Trade accounts payable" and "Other accrued liabilities" in our consolidated balance sheet.

During 2019, we recorded $20.8 million of special charges, consisting primarily of (i) $14.1 million related to our GE initiative, including $10.6 million of third-party expenses, $2.1 million related to severance and related benefits, and $1.4 million related to other costs, (ii) $2.3 million of employee severance and related benefits associated with streamlining actions in the Americas and (iii) $3.9 million related to streamlining actions in our EMEA region. Of the $20.8 million in special charges recorded during 2019, approximately $16.8 million were paid in cash, with the remaining accrual paid in 2020.

During 2018, we recorded $16.3 million of special charges, consisting primarily of: (i) $11.5 million related to our global enablement initiative, as more fully described below; (ii) a one-time payment, in the aggregate amount of $2.2 million made to certain U.S. hourly employees to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act; (iii) $1.0 million related to employee severance benefits and other costs directly associated with the relocation of one of our Chinese manufacturing facilities; and (iv) $1.6 million related to employee severance benefits and other costs related to the transfer of certain manufacturing operations in our Asia/Pacific region to a new facility then under construction in Thailand. Of the $11.5 million in special charges recognized in 2018 related to our GE initiative, $7.5 million related to third party expenses, $3.0 million represented a non-cash asset impairment charge, and $1.0 million related to employee severance benefits. That non-cash asset impairment charge was related to the write-off of certain software assets that are incompatible with our future move, approved in 2018, to a new global ERP platform to facilitate planned actions under our GE initiative to align and simplify our end-to-end processes to support our future growth.

Of the $16.3 million in special charges recorded during 2018, approximately $12.3 million were paid in cash and $3.0 million represented a non-cash asset impairment, with the remaining accrual paid in 2019.

During 2017, our Management Committee approved a multi-year initiative during which we have executed and expect to continue to execute significant changes to our global processes, capabilities and operating model to provide a scalable platform for future growth. We expect this initiative to enable us to accelerate our ability to work globally and cross-functionally by aligning and simplifying processes throughout McCormick, in part building upon our current shared services foundation and expanding the end-to-end processes presently under that foundation. We expect this initiative, which we refer to as Global Enablement (GE), to enable this scalable platform for future growth while reducing costs, enabling faster decision making, increasing agility and creating capacity within our organization.

While we are continuing to fully develop the details of our GE operating model, we expect the cost of the GE initiative—to be recognized as “Special charges” in our consolidated income statement over its multi-year course—to range from approximately $60 million to $65 million. Of that $60 million to $65 million, we estimate that approximately sixty percent will be attributable to cash payments associated with related costs of GE implementation and transition, including outside consulting and other costs and approximately forty percent will be attributable to employee severance and related benefit payments both directly related to the initiative. Since its inception through November 30, 2020, we have recognized a total of $39.9 million of special charges associated with our GE initiative.

4.  GOODWILL AND INTANGIBLE ASSETS

The following table displays intangible assets as of November 30:

	2020				2019
(millions)	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Definite-lived intangible assets	$	336.8	$	127.4	$	308.3	$	104.3
Indefinite-lived intangible assets:
Goodwill	4,986.3		—		4,505.2		—
Brand names and trademarks	3,030.0		—		2,643.0		—
	8,016.3		—		7,148.2		—
Total goodwill and intangible assets	$	8,353.1	$	127.4	$	7,456.5	$	104.3

We acquired Cholula in November 2020 (see note 2). A preliminary valuation of the acquired net assets of Cholula resulted in the allocation of $410.5 million to goodwill, $380.0 million to indefinite-lived intangible assets associated with the acquired brand names and trademarks, and $21.0 million to definite-lived intangible assets. We expect to finalize the valuation of the acquired net assets of Cholula, including the related goodwill and intangible assets, within the one-year measurement period from the date of acquisition.

Intangible asset amortization expense was $20.2 million, $20.3 million and $20.6 million for 2020, 2019 and 2018, respectively. At November 30, 2020, definite-lived intangible assets had a weighted-average remaining life of approximately 10 years.

The changes in the carrying amount of goodwill by segment for the years ended November 30 were as follows:

	2020				2019
(millions)	Consumer		Flavor Solutions		Consumer		Flavor Solutions
Beginning of year	$	3,377.6	$	1,127.6	$	3,398.9	$	1,129.0
Increases from acquisitions	273.7		136.8		—		—
Foreign currency fluctuations	59.9		10.7		(21.3)		(1.4)
End of year	$	3,711.2	$	1,275.1	$	3,377.6	$	1,127.6

A preliminary valuation of the acquired net assets of Cholula resulted in the allocation of $273.7 million and $136.8 million of goodwill to the consumer segment and flavor solutions segment, respectively.

5.  INVESTMENTS IN AFFILIATES

Summarized annual and year-end information from the financial statements of unconsolidated affiliates representing 100% of the businesses follows:

(millions)	2020		2019		2018
Net sales	$	870.3	$	863.0	$	807.9
Gross profit	318.0		316.2		290.5
Net income	93.7		90.5		78.9
Current assets	$	421.7	$	426.3	$	342.1
Noncurrent assets	126.2		134.0		129.9
Current liabilities	192.3		223.8		172.1
Noncurrent liabilities	12.2		9.2		10.0

Royalty income from unconsolidated affiliates was $19.5 million, $19.0 million and $18.5 million for 2020, 2019 and 2018, respectively.

Our principal earnings from unconsolidated affiliates is from our 50% interest in McCormick de Mexico, S.A. de C.V. Profit from this joint venture represented 75% of income from unconsolidated operations in 2020, 72% in 2019 and 76% in 2018.

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6.  FINANCING ARRANGEMENTS

Our outstanding debt, including capital leases, was as follows at November 30:

(millions)	2020			2019
Short-term borrowings
Commercial paper	$	845.8		$	575.3
Other	40.9			25.4
	$	886.7		$	600.7
Weighted-average interest rate of short-term borrowings at year-end	0.3		%	2.5		%
Long-term debt
3.90% notes due 7/8/2021(1)	$	250.0		$	250.0
2.70% notes due 8/15/2022	750.0			750.0
Term loan due 8/17/2022(2)	—			250.0
3.50% notes due 8/19/2023(3)	250.0			250.0
3.15% notes due 8/15/2024	700.0			700.0
3.25% notes due 11/15/2025(4)	250.0			250.0
3.40% notes due 8/15/2027(5)	750.0			750.0
2.50% notes due 4/15/2030	500.0			—
4.20% notes due 8/15/2047	300.0			300.0
7.63%–8.12% notes due 2024	55.0			55.0
Other, including capital leases	195.8			171.6
Unamortized discounts, premiums, debt issuance costs and fair value adjustments(6)	16.9			(3.1)
	4,017.7			3,723.5
Less current portion	263.9			97.7
	$	3,753.8		$	3,625.8

(1)Interest rate swaps, settled upon the issuance of these notes in 2011, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 4.01%.

(2)The term loan was prepayable in whole or in part. Also, the term loan due in 2022 required quarterly principal payments of 2.5% of the initial principal amount.

(3)Interest rate swaps, settled upon the issuance of these notes in 2013, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.30%.

(4)Interest rate swaps, settled upon the issuance of these notes in 2015, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.45%. The fixed interest rate on $100 million of the 3.25% notes due in 2025 is effectively converted to a variable rate by interest rate swaps through 2025. Net interest payments are based on 3-month LIBOR plus 1.22% during this period (our effective rate as of November 30, 2020 was 1.44%).

(5)Interest rate swaps, settled upon the issuance of these notes in 2017, effectively set the interest rate on the $750 million notes at a weighted-average fixed rate of 3.44%. The fixed interest rate on $250 million of the 3.40% notes due in 2027 is effectively converted to a variable rate by interest rate swaps through 2027. Net interest payments are based on 3-month LIBOR plus 0.685% during this period (our effective rate as of November 30, 2020 was 0.91%).

(6)Includes unamortized discounts, premiums and debt issuance costs of $(24.4) million and $(23.6) million as of November 30, 2020 and 2019, respectively.  Includes fair value adjustment associated with interest rate swaps designated as fair value hedges of $41.3 million and $20.5 million as of November 30, 2020 and 2019, respectively.

Maturities of long-term debt, including capital leases, during the fiscal years subsequent to November 30, 2020 are as follows (in millions):

2021	$	263.9
2022	765.0
2023	265.2
2024	791.9
2025	271.4
Thereafter	1,643.4

In April 2020, we issued $500.0 million of 2.50% notes due April 15, 2030, with cash proceeds received of $495.0 million, net of discounts and underwriters' fees. Interest is payable semiannually in arrears in April and October of each year.

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In August 2017, we issued an aggregate amount of $2.5 billion of senior unsecured notes. These notes are due as follows: $750.0 million due August 15, 2022, $700.0 million due August 15, 2024, $750.0 million due August 15, 2027 and $300.0 million due August 15, 2047 with stated fixed interest rates of 2.70%, 3.15%, 3.40% and 4.20%, respectively. Interest is payable semiannually in arrears in August and February of each year. The net proceeds received from the issuance of these notes were $2,479.3 million and were used to partially fund our acquisition of RB Foods.

In connection with our acquisition of RB Foods, we entered into a Term Loan Agreement (Term Loan) in August 2017. The Term Loan provides for three-year and five-year senior unsecured term loans, each for $750 million. The net proceeds received from the issuance of the Term Loan was $1,498.3 million. The three-year loan was payable at maturity. The five-year loan was payable in equal quarterly installments in an amount of 2.5% of the initial principal amount, with the remaining unpaid balance due at maturity. The three-year and five-year loans were each prepayable in whole or in part. In 2019 and 2018, we repaid the three-year loan in the amounts of $130.0 million and $370.0 million, respectively. Prior to payoff, the three-year loan bore interest at LIBOR plus 1.125%. In 2020, 2019 and 2018, we repaid $250.0 million, $306.3 million and $175.0 million, respectively, of the five-year loan. Prior to payoff, the five-year loan bore interest at LIBOR plus 1.25%. The interest rates were based on our credit rating.

We have available credit facilities with domestic and foreign banks for various purposes. Some of these lines are committed lines and others are uncommitted lines and could be withdrawn at various times. We have a five-year $1.0 billion revolving credit facility, which will expire in August 2022. The current pricing for the credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. This credit facility supports our commercial paper program and, after $845.8 million was used to support issued commercial paper, we have $154.2 million of capacity at November 30, 2020. In December 2020, we entered into a 364-day $1.0 billion revolving credit facility which will expire in December 2021. The current pricing for that credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. The provisions of our revolving credit facilities restrict subsidiary indebtedness and require us to maintain certain minimum and maximum financial ratios for interest expense coverage and our leverage ratio. The applicable leverage ratio is reduced periodically. As of November 30, 2020, our capacity under the five-year $1.0 billion revolving credit facility was not affected by these covenants. We do not expect that these covenants would limit our access to our revolving credit facilities for the foreseeable future; however, the leverage ratio could restrict our ability to utilize this facility.

In addition, we have several uncommitted lines totaling $316.6 million, which have a total unused capacity at November 30, 2020 of $212.8 million. These lines, by their nature, can be withdrawn based on the lenders’ discretion. Committed credit facilities require a fee, and commitment fees were $1.3 million for both 2020 and 2019.

In 2018, we consolidated our Corporate staff and certain non-manufacturing U.S. employees into our new headquarters building in Hunt Valley, Maryland. The 15-year lease for that building requires monthly lease payments of approximately $0.9 million which began in April 2019. The $0.9 million monthly lease payment is subject to adjustment after an initial 60-month period and thereafter on an annual basis as specified in the lease agreement. Upon commencement of fit-out in the second quarter of 2018, we obtained access to the building, which resulted in the lease commencement date for accounting purposes. We have recognized this lease as a capital lease, with the leased asset of $116.1 million and $124.7 million included in property, plant and equipment, net, as of November 30, 2020 and 2019, respectively. As of November 30, 2020, the total lease obligation was $130.9 million, of which $7.1 million was included in the current portion of long-term debt and $123.8 million was included in long-term debt. As of November 30, 2019, the total lease obligation was $137.7 million, of which $6.8 million was included in the current portion of long-term debt and $130.9 million was included in long-term debt. During 2020, 2019 and 2018, respectively, we recognized amortization expense of $8.7 million, $8.7 million and $5.2 million related to the leased asset.

At November 30, 2020, we had guarantees outstanding of $0.7 million with terms of one year or less. As of both November 30, 2020 and 2019, we had outstanding letters of credit of $32.2 million. These letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions. The unused portion of our letter of credit facility was $13.8 million at November 30, 2020.

7. LEASES

Our lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements

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include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants, with the exception of the non-cancellable synthetic lease discussed below.

The following presents the components of our lease expense for the year ended November 30, 2020 (in millions):

Operating lease cost	$	41.2
Finance lease cost:
Amortization of ROU assets	9.0
Interest on lease liabilities	4.5
Net lease cost	$	54.7
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Rental expense under operating leases (primarily buildings and equipment) was $48.1 million in 2019 and $58.5 million in 2018.

Supplemental balance sheet information related to leases as of November 30, 2020 were as follows (in millions):

Leases	Classification
Assets:
Operating lease ROU assets	Other long-term assets	$	136.8
Finance lease ROU assets	Property, plant and equipment, net	120.7
Total leased assets		$	257.5
Liabilities:
Current
Operating	Other accrued liabilities	$	37.3
Finance	Current portion of long-term debt	7.3
Non-current
Operating	Other long-term liabilities	103.5
Finance	Long-term debt	125.5
Total lease liabilities		$	273.6

Information regarding our lease terms and discount rates as of November 30, 2020 were as follows:

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	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	5.6	1.9	%
Finance leases	13.9	3.3	%

The future maturity of our lease liabilities as of November 30, 2020 were as follows (in millions):

	Operating leases		Finance leases		Total
2021	$	39.4	$	11.4	$	50.8
2022	29.2		11.4		40.6
2023	22.3		11.4		33.7
2024	15.3		11.5		26.8
2025	12.6		11.7		24.3
Thereafter	28.8		114.0		142.8
Total lease payments	147.6		171.4		319.0
Less: Imputed interest	6.8		38.6		45.4
Total lease liabilities	$	140.8	$	132.8	$	273.6

Supplemental cash flow and other information related to leases for the year ended November 30, 2020 were as follows (in millions):

Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows used for operating leases	$	41.5
Operating cash flows used for finance leases	4.5
Financing cash flows used for finance leases	6.9
ROU assets obtained in exchange for lease liabilities
Operating leases	$	36.6

During October 2020, we entered into a non-cancellable synthetic lease for a distribution facility with an estimated construction cost of $315 million. The lease will commence upon completion of construction of the facility, for which we are the construction agent, which is expected to be in the later part of fiscal 2022. The term of the lease is five years after commencement. The lease contains options to negotiate a renewal of the lease or to purchase or sell the facility at the end of the lease term. Upon lease commencement, the ROU asset and lease liability will be determined and recorded. The lease arrangement also contains a residual value guarantee of approximately 75% of the total construction cost. The lease also contains covenants that are consistent with our revolving credit agreements as disclosed in Note 6.

8.  FINANCIAL INSTRUMENTS

We use derivative financial instruments to enhance our ability to manage risk, including foreign currency and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instrument and all derivatives are designated as hedges. We are not a party to master netting arrangements, and we do not offset the fair value of derivative contracts with the same counterparty in our financial statement disclosures. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

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Foreign Currency

We are potentially exposed to foreign currency fluctuations affecting net investments in subsidiaries, transactions (both third-party and intercompany) and earnings denominated in foreign currencies. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contract and currency swaps with highly-rated financial institutions to reduce fluctuations in the long or short currency positions. Forward contracts are generally less than 18 months duration. Currency swap agreements are established in conjunction with the terms of the underlying debt issues.

At November 30, 2020, we had foreign currency exchange contracts to purchase or sell $383.8 million of foreign currencies as compared to $489.2 million at November 30, 2019. All of these contracts were designated as hedges of anticipated purchases denominated in a foreign currency or hedges of foreign currency denominated assets or liabilities. Hedge ineffectiveness was not material. All foreign currency exchange contracts outstanding at November 30, 2020 have durations of less than 18 months.

Contracts which are designated as hedges of anticipated purchases denominated in a foreign currency (generally purchases of raw materials in U.S. dollars by operating units outside the U.S.) are considered cash flow hedges. The gains and losses on these contracts are deferred in accumulated other comprehensive income until the hedged item is recognized in cost of goods sold, at which time the net amount deferred in accumulated other comprehensive income is also recognized in cost of goods sold. Gains and losses from contracts that are designated as hedges of assets, liabilities or firm commitments are recognized through income, offsetting the change in fair value of the hedged item.

We also enter into fair value foreign currency exchange contracts to manage exposure to currency fluctuations in certain intercompany loans between subsidiaries as well as currency exposure to third-party non-functional currency assets or liabilities. The notional value of these contracts was $212.3 million and $357.5 million at November 30, 2020 and 2019, respectively. Any gains or losses recorded based on both the change in fair value of these contracts and the change in the currency component of the underlying loans are recognized in our consolidated income statement as other income, net.

Beginning in the first quarter of 2019, we also utilized cross currency interest rate swap contracts that are designated as net investment hedges. As of November 30, 2020, we had cross currency interest rate swap contracts of (i) $250 million notional value to receive $250 million at three-month U.S. LIBOR plus 0.685% and pay £194.1 million at three-month GBP LIBOR plus 0.740% and (ii) £194.1 million notional value to receive £194.1 million at three-month GBP LIBOR plus 0.740% and pay €221.8 million at three-month Euro EURIBOR plus 0.808%. These cross-currency interest rate swap contracts expire in August 2027.

Interest Rates

We finance a portion of our operations with both fixed and variable rate debt instruments, primarily commercial paper, notes and bank loans. We utilize interest rate swap agreements to minimize worldwide financing costs and to achieve a desired mix of variable and fixed rate debt.

As of November 30, 2020 and 2019, we have outstanding interest rate swap contracts for a notional amount of $350.0 million. Those interest rate swap contracts include a $100 million notional value of interest rate swap contracts where we receive interest at 3.25% and pay a variable rate of interest based on three-month LIBOR plus 1.22%. These swaps, which expire in November 2025, are designated as fair value hedges of the changes in fair value of $100 million of the $250 million 3.25% medium-term notes due 2025. We also have $250 million notional interest rate swap contracts where we receive interest at 3.40% and pay a variable rate of interest based on three-month LIBOR plus 0.685%, which expire in August 2027, and are designated as fair value hedges of the changes in fair value of $250 million of the $750 million 3.40% term notes due 2027.

Any unrealized gain or loss on these swaps was offset by a corresponding increase or decrease in the value of the hedged debt. Hedge ineffectiveness was not material.

All derivatives are recognized at fair value in our balance sheet and recorded in either other current assets, or other long-term assets, other accrued liabilities or other long-term liabilities depending upon their nature and maturity.

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The following tables disclose the notional amount and fair values of derivative instruments on our consolidated balance sheet:

As of November 30, 2020:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	43.1	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	27.5		1.4		Other accrued liabilities	356.3		8.2
Cross currency contracts	Other current assets/Other long-term assets	—		—		Other long-term liabilities	524.4		18.8
Total				$	44.5				$	27.0
As of November 30, 2019:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	20.9	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	293.1		3.3		Other accrued liabilities	196.1		3.6
Cross currency contracts	Other current assets/Other long-term assets	495.5		3.2		Other accrued liabilities	—		—
Total				$	27.4				$	3.6

The following tables disclose the impact of derivative instruments on other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our consolidated income statement for the years ended November 30, 2020, 2019 and 2018:

Fair value hedges (millions)
	Income statement location	Income (expense)
Derivative		2020		2019		2018
Interest rate contracts	Interest expense	$	5.2	$	—	$	(0.1)

	Income statement location	Gain (loss) recognized in income							Income statement location	Gain (loss) recognized in income
Derivative		2020		2019		2018		Hedged Item		2020		2019		2018
Foreign exchange contracts	Other income, net	$	(4.0)	$	0.2	$	(2.9)	Intercompany loans	Other income, net	$	3.0	$	(0.9)	$	2.7

Cash flow hedges (millions)
	Gain (loss) recognized in OCI						Income statement location	Gain (loss)   reclassified from AOCI
Derivative	2020		2019		2018			2020		2019		2018
Interest rate contracts	$	—	$	—	$	—	Interest expense	$	0.5	$	0.5	$	0.5
Foreign exchange contracts	1.9		(0.2)		2.6		Cost of goods sold	1.6		1.6		(3.3)
Total	$	1.9	$	(0.2)	$	2.6		$	2.1	$	2.1	$	(2.8)

The amount of gain or loss recognized in income on the ineffective portion of derivative instruments is not material. The net amount of accumulated other comprehensive income expected to be reclassified into income related to these contracts in the next twelve months is a $0.7 million increase to earnings.

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Net investment hedges (millions)
	Gain (loss) recognized in OCI				Income statement location	Gain (loss) excluded from the assessment of hedge effectiveness
Derivative	2020		2019			2020		2019
Cross currency contracts	$	(20.8)	$	1.1	Interest expense	$	3.1	$	5.4

For all net investment hedges, no amounts have been reclassified out of other comprehensive income (loss). The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes.

Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments as of November 30 were as follows:

	2020				2019
(millions)	Carrying amount		Fair value		Carrying amount		Fair value
Long-term investments	$	129.9	$	129.9	$	124.4	$	124.4
Long-term debt (including current portion)	4,017.7		4,357.1		3,723.5		3,859.0
Level 1 valuation techniques			4,161.3				3,437.5
Level 2 valuation techniques			195.8				421.5
Derivatives related to:
Interest rates (assets)	43.1		43.1		20.9		20.9
Foreign currency (assets)	1.4		1.4		3.3		3.3
Foreign currency (liabilities)	8.2		8.2		3.6		3.6
Cross currency (assets)	—		—		3.2		3.2
Cross currency (liabilities)	18.8		18.8		—		—

Because of their short-term nature, the amounts reported in the balance sheet for cash and cash equivalents, receivables, short-term borrowings and trade accounts payable approximate fair value. The fair value for Level 2 long-term debt is determined by using quoted prices for similar debt instruments. Investments in affiliates are not readily marketable, and it is not practicable to estimate their fair value. Long-term investments are comprised of fixed income and equity securities held on behalf of employees in certain employee benefit plans and are stated at fair value on the balance sheet.

Concentrations of Credit Risk

We are potentially exposed to concentrations of credit risk with trade accounts receivable and financial instruments. The customers of our consumer segment are predominantly food retailers and food wholesalers. Consolidations in these industries have created larger customers. In addition, competition has increased with the growth in alternative channels including mass merchandisers, dollar stores, warehouse clubs, discount chains and e-commerce. This has caused some customers to be less profitable and increased our exposure to credit risk. We generally have a large and diverse customer base which limits our concentration of credit risk. At November 30, 2020, we did not have amounts due from any single customer that exceed 10% of consolidated trade accounts receivable. Current credit markets are highly volatile and some of our customers and counterparties are highly leveraged. We continue to closely monitor the credit worthiness of our customers and counterparties and generally do not require collateral. We believe that the allowance for doubtful accounts properly recognized trade receivables at realizable value. We consider nonperformance credit risk for other financial instruments to be insignificant.

9.  FAIR VALUE MEASUREMENTS

Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•Level 1:   Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2:   Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3:   Unobservable inputs that reflect management’s own assumptions.

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Our population of assets and liabilities subject to fair value measurements on a recurring basis are as follows:

			Fair value measurements using fair value hierarchy as of  November 30, 2020
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	423.6	$	423.6	$	—
Insurance contracts	126.0		—		126.0
Bonds and other long-term investments	3.9		3.9		—
Interest rate derivatives	43.1		—		43.1
Foreign currency derivatives	1.4		—		1.4
Total	$	598.0	$	427.5	$	170.5
Liabilities:
Foreign currency derivatives	8.2		—		8.2
Cross currency contracts	18.8		—		18.8
Total	$	27.0	$	—	$	27.0

			Fair value measurements using fair value hierarchy as of  November 30, 2019
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	155.4	$	155.4	$	—
Insurance contracts	121.7		—		121.7
Bonds and other long-term investments	2.7		2.7		—
Interest rate derivatives	20.9		—		20.9
Foreign currency derivatives	3.3		—		3.3
Cross currency contracts	3.2		—		3.2
Total	$	307.2	$	158.1	$	149.1
Liabilities:
Foreign currency derivatives	3.6		—		3.6
Total	$	3.6	$	—	$	3.6

The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate and foreign currency derivatives are based on values for similar instruments using models with market-based inputs.

At November 30, 2020 and 2019, we had no financial assets or liabilities that were subject to a level 3 fair value measurement.

10.  ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table sets forth the components of accumulated other comprehensive loss, net of tax where applicable, as of November 30 (in millions):

	2020		2019
Accumulated other comprehensive loss, net of tax where applicable
Foreign currency translation adjustment (1)	$	(174.0)	$	(266.5)
Unrealized loss on foreign currency exchange contracts	(0.4)		—
Unamortized value of settled interest rate swaps	(0.1)		0.3
Pension and other postretirement costs	(296.3)		(234.0)
	$	(470.8)	$	(500.2)

(1)During the year ended November 30, 2020, the foreign currency translation adjustment of accumulated other comprehensive loss decreased by $92.5 million, including the impact of a $20.8 million increase associated with net investment hedges. During the year ended November 30, 2019, the foreign currency translation adjustment of accumulated other comprehensive loss increased by $24.9 million, of which $0.9 million was associated with net investment hedges. These net investment hedges are more fully described in Note 8.

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The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the years ended November 30:

(millions)							Affected line items in the consolidated income statement
Accumulated other comprehensive income (loss) components	2020		2019		2018
(Gains)/losses on cash flow hedges:
Interest rate derivatives	$	(0.5)	$	(0.5)	$	(0.5)	Interest expense
Foreign exchange contracts	(1.6)		(1.6)		3.3		Cost of goods sold
Total before taxes	(2.1)		(2.1)		2.8
Tax effect	0.5		0.4		(0.6)		Income taxes
Net, after tax	$	(1.6)	$	(1.7)	$	2.2
Amortization of pension and postretirement benefit adjustments:
Amortization of prior service (credits) costs (1)	$	(4.0)	$	(8.0)	$	(8.5)	Other income, net
Amortization of net actuarial losses (1)	11.0		2.6		12.6		Other income, net
Total before taxes	7.0		(5.4)		4.1
Tax effect	(1.6)		1.2		(1.0)		Income taxes
Net, after tax	$	5.4	$	(4.2)	$	3.1

(1) This accumulated other comprehensive income (loss) component is included in the computation of total pension expense and total other postretirement expense (refer to note 11 for additional details).

11.  EMPLOYEE BENEFIT AND RETIREMENT PLANS

We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees.

During fiscal year 2017, we made significant changes to certain of our employee benefit plans and retirements plans that froze the accrual of certain defined benefit pension plans in the U.S. and the United Kingdom. Also, on December 1, 2017, our Management Committee approved the freezing of benefits under our pension plans in Canada. The effective date of this freeze was November 30, 2019. Although those plans have been frozen, employees who are participants in the plans retained benefits accumulated up to the date of the freeze, based on credited service and eligible earnings, in accordance with the terms of the plans.

As a result of the change to our pension plans in Canada, we remeasured pension assets and benefit obligations as of the date of the approval indicated above and, in fiscal year 2018, we reduced the Canadian plan benefit obligations by $17.5 million. These remeasurements resulted in a non-cash, pre-tax net actuarial gain of $17.5 million in fiscal year 2018. These net actuarial gains consist principally of a curtailment gain of $18.0 million, which is included in our consolidated statement of comprehensive income for 2018 as a component of "Other comprehensive income (loss)" on the line entitled "Unrealized components of pension plans". Deferred taxes associated with this actuarial gain, together with other unrealized components of pension plans recognized during 2018, are also included in that statement as a component of "Other comprehensive income (loss)".

Included in our consolidated balance sheet as of November 30, 2020 on the line entitled "Accumulated other comprehensive loss" was $383.4 million ($296.3 million net of tax) related to net unrecognized actuarial losses that have not yet been recognized in net periodic pension or postretirement benefit cost. We expect to recognize $13.5 million ($9.7 million net of tax) in net periodic pension and postretirement benefit costs during 2021 related to the amortization of actuarial losses of $13.2 million and the amortization of prior service cost of $0.3 million.

Defined Benefit Pension Plans

The significant assumptions used to determine benefit obligations are as follows as of November 30:

	United States				International
	2020		2019		2020		2019
Discount rate—funded plans	2.8	%	3.4	%	1.9	%	2.2	%
Discount rate—unfunded plan	2.7	%	3.3	%	—		—
Salary scale	—		—		2.9	%	2.9	%

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The significant assumptions used to determine pension expense for the years ended November 30 are as follows:

	United States						International
	2020		2019		2018		2020		2019		2018
Discount rate—funded plans	3.4	%	4.7	%	4.0	%	2.2	%	3.3	%	2.9	%
Discount rate—unfunded plan	3.3	%	4.6	%	3.9	%	—		—		—
Salary scale	—	%	—	%	3.8	%	2.9	%	3.4	%	3.5	%
Expected return on plan assets	6.8	%	7.0	%	7.3	%	4.9	%	5.5	%	5.6	%

Annually, we undertake a process, with the assistance of our external investment consultants, to evaluate the appropriate projected rates of return to use for our pension plans’ assumptions. We engage our investment consultants' research teams to develop capital market assumptions for each asset category in our plans to project investment returns into the future. The specific methods used to develop expected return assumptions vary by asset category. We adjust the outcomes for the fact that plan assets are invested with actively managed funds and subject to tactical asset reallocation.

Our pension expense for the years ended November 30 was as follows:

	United States						International
(millions)	2020		2019		2018		2020		2019		2018
Service cost	$	3.2	$	2.1	$	17.0	$	1.3	$	3.6	$	4.3
Interest costs	29.3		34.4		31.6		7.5		9.5		9.2
Expected return on plan assets	(40.6)		(42.5)		(43.4)		(15.3)		(16.4)		(16.6)
Amortization of prior service costs	0.5		0.5		—		0.1		0.2		0.1
Amortization of net actuarial loss	7.8		2.3		9.9		2.0		1.2		2.8
Settlement/curtailment loss	—		—		—		1.3		—		0.5
	$	0.2	$	(3.2)	$	15.1	$	(3.1)	$	(1.9)	$	0.3

A rollforward of the benefit obligation, fair value of plan assets and a reconciliation of the pension plans’ funded status as of November 30, the measurement date, follows:

	United States				International
(millions)	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	884.8	$	752.6	$	345.6	$	292.9
Service cost	3.2		2.1		1.3		3.6
Interest costs	29.3		34.4		7.5		9.5
Employee contributions	—		—		—		0.6
Actuarial loss	82.1		134.6		19.1		51.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Expenses paid	—		—		(0.2)		(0.3)
Foreign currency impact	—		—		12.5		2.2
Benefit obligation at end of year	$	958.0	$	884.8	$	371.7	$	345.6
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	671.9	$	640.4	$	340.9	$	306.5
Actual return on plan assets	47.3		62.2		28.6		42.4
Employer contributions	10.4		8.2		1.5		3.2
Employee contributions	—		—		—		0.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Foreign currency impact	—		—		11.8		2.7
Fair value of plan assets at end of year	$	688.2	$	671.9	$	368.7	$	340.9
Funded status	$	(269.8)	$	(212.9)	$	(3.0)	$	(4.7)
Pension plans in which accumulated benefit obligation exceeded plan assets
Projected benefit obligation	$	958.0	$	884.8	$	110.4	$	103.9
Accumulated benefit obligation	945.1		874.8		106.5		100.4
Fair value of plan assets	688.2		671.9		87.7		83.6

Included in the U.S. in the preceding table is a benefit obligation of $110.5 million and $105.4 million for 2020 and 2019, respectively, related to our Supplemental Executive Retirement Plan (SERP). The assets related to this plan,

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which totaled $86.4 million and $85.5 million as of November 30, 2020 and 2019, respectively, are held in a rabbi trust and accordingly have not been included in the preceding table.

Amounts recorded in the balance sheet for all defined benefit pension plans as of November 30 consist of the following:

	United States				International
(millions)	2020		2019		2020		2019
Non-current pension asset	$	—	$	—	$	19.6	$	15.6
Accrued pension liability	269.8		212.9		22.6		20.3
Deferred income tax assets	74.0		58.5		14.3		13.3
Accumulated other comprehensive loss	235.5		183.9		63.7		60.1

The accumulated benefit obligation is the present value of pension benefits (whether vested or unvested) attributed to employee service rendered before the measurement date and based on employee service and compensation prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation or service levels. The accumulated benefit obligation for the U.S. pension plans was $945.1 million and $874.8 million as of November 30, 2020 and 2019, respectively. The accumulated benefit obligation for the international pension plans was $367.9 million and $342.2 million as of November 30, 2020 and 2019, respectively.

The investment objectives of the defined benefit pension plans are to provide assets to meet the current and future obligations of the plans at a reasonable cost to us. The goal is to optimize the long-term return across the portfolio of investments at a moderate level of risk. Higher-returning assets include mutual, co-mingled and other funds comprised of equity securities, utilizing both active and passive investment styles. These more volatile assets are balanced with less volatile assets, primarily mutual, co-mingled and other funds comprised of fixed income securities. Professional investment firms are engaged to provide advice on the selection and monitoring of investment funds, and to provide advice on the allocation of plan assets across the various fund managers. This advice is based in part on the duration of each plan’s liability. The investment return performances are evaluated quarterly against specific benchmark indices and against a peer group of funds of the same asset classification.

The allocations of U.S. pension plan assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	63.2	%	63.3	%	59.0	%
Fixed income securities	22.0	%	21.5	%	23.2	%
Other	14.8	%	15.2	%	17.8	%
Total	100.0	%	100.0	%	100.0	%

The allocations of the international pension plans’ assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	50.9	%	50.4	%	53.0	%
Fixed income securities	48.3	%	48.9	%	47.0	%
Other	0.8	%	0.7	%	—	%
Total	100.0	%	100.0	%	100.0	%

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The following tables set forth by level, within the fair value hierarchy as described in note 9, pension plan assets at their fair value as of November 30 for the United States and international plans:

As of November 30, 2020	United States
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	28.1	$	28.1	$	—
Equity securities:
U.S. equity securities(a)	271.1		138.2		132.9
International equity securities(b)	159.2		147.6		11.6
Fixed income securities:
U.S. government/corporate bonds(c)	57.1		54.9		2.2
High yield bonds(d)	37.3		—		37.3
International/government/corporate bonds(e)	29.1		29.1		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	24.5		20.6		3.9
Natural resources (h)	9.7		—		9.7
Total	$	617.2	$	418.5	$	198.7
Investments measured at net asset value(i)
Hedge funds(j)	39.5
Private equity funds(k)	4.8
Private debt funds(l)	26.7
Total investments	$	688.2

As of November 30, 2020	International
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	3.1	$	3.1	$	—
International equity securities(b)	187.6		—		187.6
Fixed income securities:
International/government/corporate bonds(e)	155.4		—		155.4
Insurance contracts(f)	22.6		—		22.6
Total investments	$	368.7	$	3.1	$	365.6

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As of November 30, 2019	United States
(millions)	Total  fair   value		Level 1		Level 2
Cash and cash equivalents	$	15.3	$	15.3	$	—
Equity securities:
U.S. equity securities(a)	276.5		148.5		128.0
International equity securities(b)	145.5		134.2		11.3
Fixed income securities:
U.S./government/ corporate bonds(c)	51.2		49.1		2.1
High yield bonds(d)	40.1		—		40.1
International/government/ corporate bonds(e)	26.8		26.8		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	25.9		22.0		3.9
Natural resources (h)	12.0		—		12.0
Total	$	594.4	$	395.9	$	198.5
Investments measured at net asset value(i)
Hedge funds(j)	49.3
Private equity funds(k)	3.2
Private debt funds(l)	25.0
Total investments	$	671.9

As of November 30, 2019			International
(millions)	Total  fair    value		Level 1		Level 2
Cash and cash equivalents	$	2.5	$	2.5	$	—
International equity securities(b)	171.6		—		171.6
Fixed income securities:
International/government/corporate bonds(e)	144.7		—		144.7
Insurance contracts(f)	22.1		—		22.1
Total investments	$	340.9	$	2.5	$	338.4

(a)This category comprises equity funds and collective equity trust funds that most closely track the S&P index and other equity indices.

(b)This category comprises international equity funds with varying benchmark indices.

(c)This category comprises funds consisting of U.S. government and U.S. corporate bonds and other fixed income securities. An appropriate benchmark is the Barclays Capital Aggregate Bond Index.

(d)This category comprises funds consisting of real estate related debt securities with an appropriate benchmark of the Barclays Investment Grade CMBS Index.

(e)This category comprises funds consisting of international government/corporate bonds and other fixed income securities with varying benchmark indices.

(f)This category comprises insurance contracts, the majority of which have a guaranteed investment return.

(g)This category comprises funds investing in real estate investment trusts (REIT). An appropriate benchmark is the MSCI U.S. REIT Index.

(h)This category comprises funds investing in natural resources. An appropriate benchmark is the Alerian master limited partnership (MLP) Index.

(i)Certain investments that are valued using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These are included to permit reconciliation of the fair value hierarchy to the aggregate pension plan assets.

(j)This category comprises hedge funds investing in strategies represented in various HFRI Fund Indices. The net asset value is generally based on the valuation of the underlying investment. Limitations exist on the timing from notice by the plan of its intent to redeem and actual redemptions of these funds and generally range from a minimum of one month to several months.

(k)This category comprises private equity, venture capital and limited partnerships. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

(l)This category comprises limited partnerships funds investing in senior loans, mezzanine and distressed debt. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

For the plans’ hedge funds, private equity funds and private debt funds, we engage an independent advisor to compare the funds’ returns to other funds with similar strategies. Each fund is required to have an annual audit by

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an independent accountant, which is provided to the independent advisor. This provides a basis of comparability relative to similar assets.

Equity securities in the U.S. pension plans included McCormick stock with a fair value of $50.6 million (0.6 million shares and 7.4% of total U.S. pension plan assets) and $64.4 million (0.8 million shares and 9.6% of total U.S. pension plan assets) at November 30, 2020 and 2019, respectively. Dividends paid on these shares were $0.9 million in both 2020 and 2019.

Pension benefit payments in our most significant plans are made from assets of the pension plans. It is anticipated that future benefit payments for the U.S. and international plans for the next 10 fiscal years will be as follows:

(millions)	United States		International
2021	$	43.7	$	12.0
2022	43.7		11.7
2023	44.7		12.8
2024	47.5		12.4
2025	48.7		12.8
2026-2030	252.8		66.0

U.S. Defined Contribution Retirement Plans

Effective December 1, 2018 for the U.S. defined contribution retirement plan, we match 100% of a participant’s contribution up to the first 3% of the participant’s salary, and 66.7% of the next 3% of the participant’s salary. In addition, we make contributions of 3% of the participant's salary for all U.S. employees who are employed on December 31 of each year. Prior to December 1, 2018 for the U.S. defined contribution retirement plan, we matched 100% of a participant’s contribution up to the first 3% of the participant’s salary, and 50% of the next 2% of the participant’s salary. In addition, we made contributions of 3% of the participant's salary for U.S. employees not covered by the defined benefit plan. Some of our smaller U.S. subsidiaries sponsor separate 401(k) retirement plans. We also sponsor a non-qualified defined contribution retirement plan. Our contributions charged to expense under all U.S. defined contribution retirement plans were $30.8 million, $28.2 million and $15.5 million in 2020, 2019 and 2018, respectively.

At the participant’s election, 401(k) retirement plans held 2.9 million shares of McCormick stock, with a fair value of $267.3 million, at November 30, 2020. Dividends paid on the shares held in the 401(k) retirement plans in 2020 and 2019 were $3.8 million and $3.9 million, respectively, in each year.

Postretirement Benefits Other Than Pensions

We currently provide postretirement medical and life insurance benefits to certain U.S. employees who were covered under the active employees’ plan and retire after age 55 with at least five years of service. The subsidy provided under these plans is based primarily on age at date of retirement. These benefits are not pre-funded but paid as incurred. Employees hired after December 31, 2008 are not eligible for a company subsidy. They are eligible for coverage on an access-only basis.

Our other postretirement benefit (income) expense for the years ended November 30 follows:

(millions)	2020		2019		2018
Service cost	$	1.9	$	1.8	$	2.0
Interest costs	2.0		2.7		2.4
Amortization of prior service credits	(4.6)		(8.7)		(8.6)
Amortization of actuarial gains	(0.1)		(0.9)		(0.1)
Postretirement benefit (income) expense	$	(0.8)	$	(5.1)	$	(4.3)

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Rollforwards of the benefit obligation, fair value of plan assets and a reconciliation of the plans’ funded status at November 30, the measurement date, follow:

(millions)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	67.2	$	62.9
Service cost	1.9		1.8
Interest costs	2.0		2.7
Participant contributions	2.1		0.3
Plan amendments	—		(0.4)
Actuarial loss	3.9		4.1
Benefits paid	(6.4)		(4.2)
Benefit obligation at end of year	$	70.7	$	67.2
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	—	$	—
Employer contributions	4.3		3.9
Participant contributions	2.1		0.3
Benefits paid	(6.4)		(4.2)
Fair value of plan assets at end of year	$	—	$	—
Other postretirement benefit liability	$	70.7	$	67.2

Estimated future benefit payments (net of employee contributions) for the next 10 fiscal years are as follows:

(millions)	Retiree medical		Retiree life insurance		Total
2021	$	3.6	$	1.5	$	5.1
2022	3.6		1.5		5.1
2023	3.7		1.4		5.1
2024	3.7		1.4		5.1
2025	3.7		1.4		5.1
2026-2030	17.5		6.5		24.0

The assumed discount rate in determining the benefit obligation was 2.3% and 3.1% for 2020 and 2019, respectively.

For 2020, the assumed annual rate of increase in the cost of covered health care benefits is 6.8% (6.5% last year). It is assumed to decrease gradually to 4.5% in the year 2032 (4.5% in 2030 last year) and remain at that level thereafter. A one percentage point increase or decrease in the assumed health care cost trend rate would have had an immaterial effect on the benefit obligation and the total of service and interest cost components for 2020.

12.  STOCK-BASED COMPENSATION

We have four types of stock-based compensation awards: restricted stock units (RSUs), stock options, company stock awarded as part of our long-term performance plan (LTPP), and beginning in 2020, price-vested stock options. Total stock-based compensation expense for 2020, 2019 and 2018 was $46.0 million, $37.2 million and $25.6 million, respectively. Total unrecognized stock-based compensation expense related to our RSUs and stock options at November 30, 2020 was $23.2 million and the weighted-average period over which this will be recognized is 1.3 years. Total unrecognized stock-based compensation expense related to our price-vested stock options at November 30, 2020 was $23.3 million and the weighted-average period over which this will be recognized is 3.0 years. Total unrecognized stock-based compensation expense related to our LTPP is variable in nature and is dependent on the company's execution against established performance metrics under performance cycles related to this plan. As of November 30, 2020, we have 6.6 million shares remaining available for future issuance under our RSUs, stock option and LTPP award programs.

For all awards, forfeiture rates are considered in the calculation of compensation expense.

The following summarizes the key terms and the methods of valuation and expense recognition for each of our stock-based compensation awards.

RSUs

RSUs are valued at the market price of the underlying stock, discounted by foregone dividends, on the date of grant. Substantially all of the RSUs granted vest over a three-year term or, if earlier, upon the retirement eligibility

date of the holder.

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A summary of our RSU activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	762	$	57.95	846	$	51.53	534	$	43.24
Granted	296	67.03		258	71.62		556	56.36
Vested	(325)	57.56		(318)	52.08		(226)	44.08
Forfeited	(19)	62.96		(24)	56.78		(18)	48.27
Outstanding—end of year	714	$	61.74	762	$	57.95	846	$	51.53

Stock Options (Other than Price-Vested Stock Options)

Stock options are granted with an exercise price equal to the market price of the stock on the date of grant. Substantially all of the options, with the exception of price-vested options detailed below, vest ratably over a three-year period or, if earlier, upon the retirement-eligibility dates of the holders and are exercisable over a 10-year period. Upon exercise of the option, shares are issued from our authorized and unissued shares.

The fair value of the options is estimated with a lattice option pricing model which uses the assumptions in the following table. We believe the lattice model provides an appropriate estimate of fair value of our options as it allows for a range of possible outcomes over an option term and can be adjusted for changes in certain assumptions over time. Expected volatilities are based primarily on the historical performance of our stock. We also use historical data to estimate the timing and amount of option exercises and forfeitures within the valuation model. The expected term of the options is an output of the option pricing model and estimates the period of time that options are expected to remain unexercised. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense is calculated based on the fair value of the options on the date of grant.

The per share weighted-average fair value for all options granted was $13.27, $13.76 and $10.15 in 2020, 2019 and 2018, respectively. These fair values were computed using the following range of assumptions for the years ended November 30:

	2020		2019		2018
Risk-free interest rates	0.0 - 0.6%		2.2 - 2.5%		1.7 - 2.9%
Dividend yield	1.8	%	1.5	%	2.0	%
Expected volatility	22.8	%	17.4%		18.4%
Expected lives	7.9 years		7.5 years		7.6 years

Under our stock option plans, we may issue shares on a net basis at the request of the option holder. This occurs by netting the option cost in shares from the shares exercised.

A summary of our stock option activity for the years ended November 30 follows:

(shares in millions)	2020			2019			2018
	Shares	Weighted-     average     exercise     price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Beginning of year	5.2	$	48.09	7.2	$	41.30	9.6	$	35.96
Granted	0.7	69.31		0.6	73.70		0.8	52.98
Exercised	(1.4)	41.01		(2.6)	35.54		(3.2)	27.64
Outstanding—end of year	4.5	53.56		5.2	48.09		7.2	41.30
Exercisable—end of year	3.2	$	47.76	3.8	$	43.31	5.6	$	38.27

As of November 30, 2020, the intrinsic value (the difference between the exercise price and the market price) for all options currently outstanding was $178.7 million and for options currently exercisable was $146.0 million. At November 30, 2020, the differences between options outstanding and options expected to vest and their related weighted-average exercise prices, aggregate intrinsic values and weighted-average remaining lives were not material. The total intrinsic value of all options exercised during the years ended November 30, 2020, 2019 and 2018 was $68.4 million, $111.0 million and $108.0 million, respectively. A summary of our stock options outstanding and exercisable at November 30, 2020 follows:

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(shares in millions)	Options outstanding				Options exercisable
Range of exercise price	Shares	Weighted- average remaining life (yrs.)	Weighted- average exercise price		Shares	Weighted- average remaining life (yrs.)	Weighted-   average   exercise   price
$23.00 - $37.50	0.5	2.8	$	33.99	0.5	2.8	$	33.99
$37.51 - $56.00	2.7	5.9	48.36		2.5	5.8	47.97
$56.01 - $74.50	1.3	8.9	71.27		0.2	8.3	73.64
	4.5	6.5	$	53.56	3.2	5.6	$	47.76

Price-Vested Stock Options

In November 2020, we granted approximately 2,482,000 price-vested stock options to certain employees. The price-vested stock options were granted with an exercise price of $93.49 which was equal to the market price of our stock on the date of grant. The price-vested options are not exercisable until a three year service condition is achieved, and will become exercisable after that time period only if the average closing price of our stock price equals or exceeds thresholds of 60%, 80% or 100% appreciation from the exercise price for 30 consecutive trading days within a five-year period from the date of grant. If the options become exercisable, they are exercisable up to 10 years from the date of grant. The options granted were divided equally between the three appreciation thresholds. Employees who are retirement eligible vest on a pro-rata basis over a three-year period if the market condition is met in the five-year period from the date of grant. If the market conditions are not met in the five-year period from the date of grant, the options do not become exercisable and will be forfeited.

The fair value of the price-vested options was estimated using a lattice model. The per share weighted-average fair value for the price-vested stock options granted was $11.88, $9.26, and $7.05, for the 60%, 80% and 100% appreciation thresholds, respectively. These fair values were computed using the following range of assumptions:

Risk-free interest rates	0.85	%
Dividend yield	1.5	%
Expected volatility	21.2	%
Expected lives	5.6 - 6.2 years

LTPP

Our LTPP grants in 2018 will deliver awards in a combination of cash and company stock. The stock compensation portion of the LTPP grants in 2018 awards shares of company stock if certain company performance objectives are met at the end of a three-year period. LTPP awards granted in 2020 and 2019 will be delivered entirely in company stock, with the target award calculated using a combination of a market-based total shareholder return and performance-based components. These awards are valued based on the fair value of the underlying stock on the date of grant.

A summary of the LTPP award activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	392	$	57.98	436	$	41.78	440	$	42.16
Granted	130	86.14		136	75.26		172	50.95
Vested	(88)	44.98		(114)	43.20		(120)	37.01
Performance adjustment	(44)	50.95		(66)	44.98		(52)	43.20
Forfeited	(8)	65.68		—	—		(4)	48.71
Outstanding—end of year	382	$	71.20	392	$	57.98	436	$	41.78

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13. INCOME TAXES

The provision for income taxes for the years ended November 30 consists of the following:

(millions)	2020		2019		2018
Income taxes
Current
Federal	$	98.3	$	52.3	$	92.9
State	14.8		10.7		11.0
International	73.0		73.5		78.7
	186.1		136.5		182.6
Deferred
Federal	4.6		26.4		(340.3)
State	0.5		3.6		1.5
International	(16.3)		(9.1)		(1.1)
	(11.2)		20.9		(339.9)
Total income tax expense (benefit)	$	174.9	$	157.4	$	(157.3)

In December 2017, President Trump signed into law Pub. L. 115-97, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (this legislation is referred to herein as the U.S. Tax Act). The U.S. Tax Act provides for significant changes in the U.S. Internal Revenue Code of 1986, as amended. Certain provisions of the U.S. Tax Act were effective during our fiscal year ended November 30, 2018 with all provisions of the U.S. Tax Act effective as of the beginning of our fiscal year beginning December 1, 2018. The U.S. Tax Act contains provisions with separate effective dates but is generally effective for taxable years beginning after December 31, 2017. The U.S. Tax Act creates a new requirement that certain income earned by foreign subsidiaries, known as Global Intangible Low-Taxed Income (GILTI), must be included in the gross income of the subsidiary’s U.S. shareholder. This provision of the U.S. Tax Act was effective for us for our fiscal year beginning December 1, 2018.

Beginning on January 1, 2018, the U.S. Tax Act lowered the U.S. corporate income tax rate from 35% to 21% on our U.S. earnings from that date and beyond. The revaluation of our U.S. deferred tax assets and liabilities to the 21% corporate tax rate has reduced our net U.S. deferred income tax liability by $380.0 million and is reflected as a reduction in our income tax expense in our results for the year ended November 30, 2018. The U.S. Tax Act imposed a one-time transition tax on post-1986 earnings of non-U.S. affiliates that have not been repatriated for purposes of U.S. federal income tax, with those earnings taxed at rates of 15.5% for earnings reflected by cash and cash equivalent items and 8% for other assets. This transition tax, based on our fiscal 2018 tax return filed in fiscal 2019, was $76.0 million (we estimated the transition tax to be $75.3 million in fiscal 2018). The cash tax effects of the transition tax, reduced by the utilization of $21.1 million of current and carried forward excess foreign tax credits, as well as other items of $7.7 million, resulted in a net tax liability of $47.2 million, which can be remitted in installments over an eight-year period as we are doing. As of November 30, 2020, our remaining unpaid transition tax is $39.7 million. In addition to the estimated transition tax of $75.3 million recognized in 2018, we incurred additional foreign withholding taxes, net of a U.S. foreign tax credit, of $7.9 million and a $4.7 million reduction in our fiscal 2018 income taxes as a consequence of the transition tax, both of which we recognized as a component of our income tax expense for the year ended November 30, 2018, for a net transition tax impact recognized in 2018 of $78.5 million.

The components of income from consolidated operations before income taxes for the years ended November 30 follow:

(millions)	2020		2019		2018
Pretax income
United States	$	624.3	$	569.0	$	492.2
International	257.2		250.2		249.1
	$	881.5	$	819.2	$	741.3

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A reconciliation of the U.S. federal statutory rate with the effective tax rate for the years ended November 30 follows:

	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	22.2	%
State income taxes, net of federal benefits	1.5		1.6		1.5
International tax at different effective rates	1.3		1.6		0.4
U.S. tax on remitted and unremitted earnings	0.8		0.5		0.6
Stock compensation expense	(1.5)		(2.8)		(2.9)
U.S. manufacturing deduction	—		—		(0.8)
Changes in prior year tax contingencies	(0.3)		(0.3)		(0.8)
Non-recurring benefit of U.S. Tax Act	—		(0.2)		(40.7)
Valuation allowance release	(1.4)		—		—
Intra-entity asset transfer	(1.1)		(1.8)		—
Other, net	(0.5)		(0.4)		(0.7)
Total	19.8	%	19.2	%	(21.2)	%

Deferred tax assets and liabilities are comprised of the following as of November 30:

(millions)	2020		2019
Deferred tax assets
Employee benefit liabilities	$	121.9	$	103.3
Other accrued liabilities	40.3		32.3
Inventory	10.6		7.5
Tax loss and credit carryforwards	59.7		46.8
Operating lease liabilities	33.0		—
Other	47.9		48.1
Valuation allowance	(31.5)		(32.4)
	281.9		205.6
Deferred tax liabilities
Depreciation	89.1		82.6
Intangible assets	815.1		770.5
Lease ROU assets	32.2		—
Other	4.5		5.5
	940.9		858.6
Net deferred tax liability	$	(659.0)	$	(653.0)

At November 30, 2020, we have tax loss carryforwards of $214.4 million. Of these carryforwards, $0.1 million expire in 2021, $9.6 million from 2022 through 2023, $77.9 million from 2024 through 2037 and $126.8 million may be carried forward indefinitely. In addition, one of our non-U.S. subsidiaries has a capital loss carryforward of $5.0 million which may be carried forward indefinitely. At November 30, 2020, we also have U.S. foreign tax credit carryforwards of $7.3 million which expire in 2030.

A valuation allowance has been provided to cover deferred tax assets that are not more likely than not realizable. The net decrease of $0.9 million in the valuation allowance from November 30, 2019 to November 30, 2020 resulted primarily from the net reversal of valuation allowances for net operating losses, capital losses and other tax attributes in certain non-US jurisdictions.

Prior to the U.S. Tax Act, we asserted that substantially all of the undistributed earnings of our international subsidiaries and joint ventures were considered indefinitely invested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to a one-time transition tax in 2018. The transition tax was recognized in 2018 and was based on cumulative earnings prior to the U.S. Tax Act. Our intent is to continue to reinvest undistributed earnings of our international subsidiaries and joint ventures indefinitely. As of November 30, 2020, we have $1.3 billion of earnings that are considered indefinitely reinvested. While federal income tax expense has been recognized as a result of the U.S. Tax Act, we have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss. It is not practicable for us to determine the amount of unrecognized tax expense on these reinvested international earnings.

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The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended November 30:

(millions)	2020		2019		2018
Balance at beginning of year	$	32.0	$	27.9	$	39.1
Additions for current year tax positions	7.8		6.6		6.5
Additions for prior year tax positions	2.5		0.6		0.3
Reductions for prior year tax positions	—		(0.3)		(6.9)
Settlements	—		—		—
Statute expirations	(4.2)		(2.5)		(9.1)
Foreign currency translation	1.2		(0.3)		(2.0)
Balance at November 30	$	39.3	$	32.0	$	27.9

As of November 30, 2020, November 30, 2019, and November 30, 2018, if recognized, $39.3 million, $32.0 million and $27.5 million, respectively, of the unrecognized tax benefits would affect the effective rate.

We record interest and penalties on income taxes in income tax expense. We recognized interest and penalty expense of $0.8 million, $2.1 million and $0.1 million in 2020, 2019 and 2018, respectively. As of November 30, 2020 and 2019, we had accrued $8.3 million and $7.1 million, respectively, of interest and penalties related to unrecognized tax benefits.

Tax settlements or statute of limitation expirations could result in a change to our uncertain tax positions. We believe that the reasonably possible total amount of unrecognized tax benefits as of November 30, 2020 that could decrease in the next 12 months as a result of various statute expirations, audit closures and/or tax settlements would not be material.

We file income tax returns in the U.S. federal jurisdiction and various state and non-U.S. jurisdictions. The open years subject to tax audits vary depending on the tax jurisdictions. In the U.S federal jurisdiction, we are no longer subject to income tax audits by taxing authorities for years before 2017. In other major jurisdictions, we are no longer subject to income tax audits by taxing authorities for years before 2014.

We are under normal recurring tax audits in the U.S. and in several jurisdictions outside the U.S. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our reserves for uncertain tax positions are adequate to cover existing risks and exposures.

14.  CAPITAL STOCK AND EARNINGS PER SHARE

Holders of Common Stock have full voting rights except that (1) the voting rights of persons who are deemed to own beneficially 10% or more of the outstanding shares of Common Stock are limited to 10% of the votes entitled to be cast by all holders of shares of Common Stock regardless of how many shares in excess of 10% are held by such person; (2) we have the right to redeem any or all shares of Common Stock owned by such person unless such person acquires more than 90% of the outstanding shares of each class of our common stock; and (3) at such time as such person controls more than 50% of the votes entitled to be cast by the holders of outstanding shares of Common Stock, automatically, on a share-for-share basis, all shares of Common Stock Non-Voting will convert into shares of Common Stock.

Holders of Common Stock Non-Voting will vote as a separate class on all matters on which they are entitled to vote. Holders of Common Stock Non-Voting are entitled to vote on reverse mergers and statutory share exchanges where our capital stock is converted into other securities or property, dissolution of the company and the sale of substantially all of our assets, as well as forward mergers and consolidation of the company or any amendment to our charter repealing the right of the Common Stock Non-Voting to vote on any such matters.

The reconciliation of shares outstanding used in the calculation of basic and diluted earnings per share for the years ended November 30 follows:

(millions)	2020	2019	2018
Average shares outstanding—basic	266.5	265.1	263.1
Effect of dilutive securities:
Stock options/RSUs/LTPP	2.6	3.0	3.4
Average shares outstanding—diluted	269.1	268.1	266.5

The following table sets forth the stock options and RSUs for the years ended November 30 which were not considered in our earnings per share calculation since they were antidilutive:

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(millions)	2020	2019	2018
Antidilutive securities	0.1	0.2	0.4

15.  COMMITMENTS AND CONTINGENCIES

During the normal course of our business, we are occasionally involved with various claims and litigation. Reserves are established in connection with such matters when a loss is probable and the amount of such loss can be reasonably estimated. At November 30, 2020 and 2019, no material reserves were recorded. The determination of probability and the estimation of the actual amount of any such loss are inherently unpredictable, and it is therefore possible that the eventual outcome of such claims and litigation could exceed the estimated reserves, if any. However, we do not expect the outcome of the matters currently pending will have a material adverse effect on our financial statements.

16.  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,” “Kohinoor,” "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 of Cholula, FONA and 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 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 12% of consolidated sales in 2020 and 11% of consolidated sales in 2019 and 2018. Sales to one of our flavor solutions segment customers, PepsiCo, Inc., accounted for approximately 11% of consolidated sales in 2020 and 10% of consolidated sales in both 2019 and 2018.

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.

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Business Segment Results

(millions)	Consumer		Flavor Solutions		Total segments		Corporate & other		Total
2020
Net sales	$	3,596.7	$	2,004.6	$	5,601.3	$	—	$	5,601.3
Operating income excluding special charges	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 and transaction and integration expenses	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

A reconciliation of operating income excluding special charges and, for 2020 and 2018, transaction and integration expenses, to operating income for 2020, 2019 and 2018 is as follows:

(millions)	Consumer		Flavor Solutions		Total
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
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

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Geographic Areas

We have net sales and long-lived assets in the following geographic areas:

(millions)	United States		EMEA		Other countries		Total
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
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

Long-lived assets include property, plant and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization.

17.  SUPPLEMENTAL FINANCIAL STATEMENT DATA

Supplemental consolidated information with respect to our income statement, balance sheet and cash flow follow:

For the year ended November 30 (millions)	2020		2019		2018
Other income, net
Pension and other postretirement benefit income	$	10.0	17.7		12.2
Interest income	7.8		10.1		7.1
Other	(0.2)		(1.1)		5.5
	$	17.6	$	26.7	$	24.8

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At November 30 (millions)	2020		2019
Inventories
Finished products	$	499.3	$	413.3
Raw materials and work-in-process	533.3		387.9
	$	1,032.6	$	801.2
Prepaid expenses	$	38.0	$	36.0
Other current assets	60.9		54.7
	$	98.9	$	90.7
Property, plant and equipment
Land and improvements	$	87.2	$	67.5
Buildings (including capital lease)	698.2		658.5
Machinery, equipment and other	1,102.9		1,007.8
Construction-in-progress	125.5		85.8
Accumulated depreciation	(985.4)		(867.0)
	$	1,028.4	$	952.6
Other long-term assets
Investments in affiliates	$	193.0	$	186.0
Long-term investments	129.9		124.4
Right of use asset	136.8		—
Software, net of accumulated amortization $281.8 for 2020 and $275.0 for 2019	116.0		76.4
Other	176.3		120.3
	$	752.0	$	507.1
Other accrued liabilities
Payroll and employee benefits	$	260.7	$	184.9
Sales allowances	183.3		137.2
Dividends payable	90.7		82.4
Other	328.9		204.6
	$	863.6	$	609.1
Other long-term liabilities
Pension	$	286.1	$	226.9
Postretirement benefits	66.2		62.7
Operating lease liability	103.5		—
Unrecognized tax benefits	46.0		37.6
Other	120.4		100.4
	$	622.2	$	427.6

For the year ended November 30 (millions)	2020		2019		2018
Depreciation	$	121.1	$	113.6	$	104.8
Software amortization	12.4		13.7		14.0
Interest paid	134.1		169.8		179.8
Income taxes paid	183.3		137.2		154.6

Dividends paid per share were $1.24 in 2020, $1.14 in 2019 and $1.04 in 2018. Dividends declared per share were $1.27 in 2020, $1.17 in 2019, and $1.07 in 2018.

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18.  SELECTED QUARTERLY DATA (UNAUDITED)

(millions except per share data)	First		Second		Third		Fourth
2020
Net sales	$	1,212.0	$	1,401.1	$	1,430.3	$	1,557.9
Gross profit	469.9		579.5		590.3		660.7
Operating income	194.2		257.4		273.0		274.9
Net income	144.7		195.9		206.1		200.7
Basic earnings per share	0.54		0.74		0.77		0.75
Diluted earnings per share	0.54		0.73		0.76		0.74
Dividends paid per share—
Common Stock and Common Stock Non-Voting	0.31		0.31		0.31		0.31
Dividends declared per share—
Common Stock and Common Stock Non-Voting	—		0.31		0.31		0.65
2019
Net sales	$	1,231.5	$	1,301.9	$	1,329.2	$	1,484.8
Gross profit	466.9		508.5		539.9		630.0
Operating income	196.9		208.1		253.5		299.2
Net income	148.0		149.4		191.9		213.4
Basic earnings per share	0.56		0.56		0.72		0.80
Diluted earnings per share	0.55		0.56		0.72		0.79
Dividends paid per share—
Common Stock and Common Stock Non-Voting	0.28		0.29		0.28		0.29
Dividends declared per share—
Common Stock and Common Stock Non-Voting	—		0.29		0.28		0.60

Operating income for the first quarter of 2020 included $1.0 million of special charges, with an after-tax impact of $0.7 million and no per share impact for both basic and diluted earnings per share. Operating income for the second quarter of 2020 included $2.9 million of special charges, with an after-tax impact of $2.0 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the third quarter of 2020 included $0.1 million of special charges, with an after-tax impact of $0.1 million and no per share impact for both basic and diluted earnings per share. Operating income for the fourth quarter of 2020 included $2.9 million of special charges, with an after-tax impact of $2.0 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the fourth quarter of 2020 included $12.4 million of transaction and integration expenses, with an after-tax impact of $10.5 million and a per share impact of $0.04 for both basic and diluted earnings per share.

Operating income for the first quarter of 2019 included $2.1 million of special charges, with an after-tax impact of $1.6 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the second quarter of 2019 included $7.1 million of special charges, with an after-tax impact of $5.4 million and a per share impact of $0.02 for both basic and diluted earnings per share. Operating income for the third quarter of 2019 included $7.7 million of special charges, with an after-tax impact of $6.1 million and a per share impact of $0.01 for both basic and diluted earnings per share. Net income for the third quarter of 2019 included $1.5 million of non-recurring income tax benefit related to enactment of the U.S. Tax Act, with no per share impact for both basic and diluted earnings per share. Operating income for the fourth quarter of 2019 included $3.9 million of special charges, with an after-tax impact of $3.0 million and a per share impact of $0.02 for both basic and diluted earnings per share.

See note 3 for details with respect to actions undertaken in connection with these special charges. See note 13 for details regarding the non-recurring income tax benefits related to enactment of the U.S. Tax Act.

Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not be equal to the full year earnings per share.

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19.  SUBSEQUENT EVENT (UNAUDITED)

On December 30, 2020, we purchased FONA International, LLC and certain of its affiliates (FONA), a privately held company, for a purchase price of approximately $710 million, net of cash acquired, subject to certain customary purchase price adjustments. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets. The acquisition of FONA in fiscal 2021 expands the breadth of our flavor solutions segment into attractive categories, as well as extends our technology platform and strengthens our capabilities. The acquisition was funded with cash and commercial paper.

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of our disclosure controls and procedures, as defined in Rule 13a-15(e) of the Securities Exchange Act of 1934, as of the end of the period covered by this report. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were effective.

Internal Control over Financial Reporting

Management’s report on our internal control over financial reporting and the report of our Independent Registered Public Accounting Firm on internal control over financial reporting are included in our 2020 financial statements in Item 8 of this Report under the captions entitled “Report of Management” and "Report of Independent Registered Public Accounting Firm.” No change occurred in our “internal control over financial reporting” (as defined in Rule 13a-15(f)) during our last fiscal quarter which has materially affected or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B.  OTHER INFORMATION

None.

PART III.

ITEM 10.  DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

Information responsive to this item is set forth in the sections titled “Corporate Governance” and “Election of Directors” in our 2021 Proxy Statement, incorporated by reference herein, to be filed within 120 days after the end of our fiscal year.

We have adopted a code of ethics that applies to all employees, including our principal executive officer, principal financial officer, principal accounting officer, and our Board of Directors. A copy of the code of ethics is available on our internet website at www.mccormickcorporation.com. We will satisfy the disclosure requirement under Item 5.05 of Form 8-K regarding any material amendment to our code of ethics, and any waiver from a provision of our code of ethics that applies to our principal executive officer, principal financial officer, principal accounting officer, or persons performing similar functions, by posting such information on our website at the internet website address set forth above.

ITEM 11.  EXECUTIVE COMPENSATION

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Information responsive to this item is incorporated herein by reference to the sections titled “Compensation of Directors,” “Compensation Discussion and Analysis,” “Compensation Committee Report,” “Summary Compensation Table,” “Grants of Plan-Based Awards,” “Narrative to the Summary Compensation Table,” “Outstanding Equity Awards at Fiscal Year-End,” “Option Exercises and Stock Vested in Last Fiscal Year,” “Retirement Benefits,” “Non-Qualified Deferred Compensation,” “Potential Payments Upon Termination or Change in Control,” “Compensation Committee Interlocks and Insider Participation” and “Equity Compensation Plan Information” in the 2021 Proxy Statement.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Information responsive to this item is incorporated herein by reference to the sections titled “Principal Stockholders,” “Election of Directors” and “Equity Compensation Plan Information” in the 2021 Proxy Statement.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Information responsive to this item is incorporated herein by reference to the section entitled “Corporate Governance” in the 2021 Proxy Statement.

ITEM 14.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Information responsive to this item is incorporated herein by reference to the section titled “Report of Audit Committee and Fees of Independent Registered Public Accounting Firm” in the 2021 Proxy Statement.

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PART IV.

ITEM 15.  EXHIBITS, FINANCIAL STATEMENT SCHEDULES

List of documents filed as part of this Report.

1.  Consolidated Financial Statements

The Consolidated Financial Statements for McCormick & Company, Incorporated and related notes, together with the Report of Management, and the Reports of Ernst & Young LLP dated January 28, 2021, are included herein in Part II, Item 8.

2. Consolidated Financial Statement Schedule

Supplemental Financial Schedule:

II–Valuation and Qualifying Accounts

Schedules other than that listed above are omitted because of the absence of the conditions under which they are required or because the information called for is included in the consolidated financial statements or notes thereto.

3.  Exhibits required to be filed by Item 601 of Regulation S-K

The information called for by this item is incorporated herein by reference from the Exhibit Index included in this Report.

EXHIBIT INDEX

The following exhibits are attached or incorporated herein by reference:

		Exhibit Number	Description
(3)	(i)	Articles of Incorporation and By-Laws
		Restatement of Charter of McCormick & Company, Incorporated dated April 16, 1990	Incorporated by reference from Exhibit 4 of Registration Form S-8, Registration No. 33-39582 as filed with the Securities and Exchange Commission on March 25, 1991.
		Articles of Amendment to Charter of McCormick & Company, Incorporated dated April 1, 1992	Incorporated by reference from Exhibit 4 of Registration Form S-8, Registration Statement No. 33-59842 as filed with the Securities and Exchange Commission on March 19, 1993.
		Articles of Amendment to Charter of McCormick & Company, Incorporated dated March 27, 2003	Incorporated by reference from Exhibit 4 of Registration Form S-8, Registration Statement No. 333-104084 as filed with the Securities and Exchange Commission on March 28, 2003.
	(ii)	By-Laws
		By-Laws of McCormick & Company, Incorporated Amended and Restated on November 26, 2019	Incorporated by reference from Exhibit 99.1 of McCormick's Form 8-K dated November 26 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on November 26, 2019.
(4)		Instruments defining the rights of security holders, including indentures
	(i)	See Exhibit 3 (Restatement of Charter and By-Laws)

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		Exhibit Number	Description
	(ii)	Summary of Certain Exchange Rights, incorporated by reference from Exhibit 4.1 of McCormick’s Form 10-Q for the quarter ended August 31, 2001, File No. 0-748, as filed with the Securities and Exchange Commission on October 12, 2001.
	(iii)	Indenture dated July 8, 2011 between McCormick and U.S. Bank National Association, incorporated by reference from Exhibit 4.1 of McCormick’s Form 8-K dated July 5, 2011, File No. 1-14920, as filed with the Securities and Exchange Commission on July 8, 2011.
	(iv)	Form of 3.90% notes due 2021, incorporated by reference from Exhibit 4.2 of McCormick’s Form 8-K dated July 5, 2011, File No. 1-14920, as filed with the Securities and Exchange Commission on July 8, 2011.
	(v)	Form of 2.70% notes due 2022, incorporated by reference from Exhibit 4.2 of McCormick’s Form 8-K dated August 7, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on August 11, 2017.
	(vi)	Form of 3.50% notes due 2023, incorporated by reference from Exhibit 4.2 of McCormick’s Form 8-K dated August 14, 2013, File No. 1-14920, as filed with the Securities and Exchange Commission on August 19, 2013.
	(vii)	Form of 3.15% notes due 2024, incorporated by reference from Exhibit 4.3 of McCormick’s Form 8-K dated August 7, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on August 11, 2017.
	(viii)	Form of 3.25% notes due 2025, incorporated by reference from Exhibit 4.2 of McCormick’s Form 8-K dated November 3, 2015, File No. 1-14920, as filed with the Securities and Exchange Commission on November 6, 2015.
	(ix)	Form of 3.40% notes due 2027, incorporated by reference from Exhibit 4.4 of McCormick’s Form 8-K dated August 7, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on August 11, 2017.
	(x)	Form of 4.20% notes due 2047, incorporated by reference from Exhibit 4.5 of McCormick’s Form 8-K dated August 7, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on August 11, 2017.
	(xi)	Form of 2.50% Notes due 2030, incorporated by reference from Exhibit 4.2 of McCormick’s Form 8-K dated April 13, 2020, File No. 1-14920, as filed with the Securities and Exchange Commission on April 16, 2020.
	(xii)	Description of Securities of McCormick & Company, Incorporated, incorporated by reference from Exhibit 4(xi) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
(10)		Material contracts
	(i)	Deferred Compensation Plan, as restated on January 1, 2000, and amended on August 29, 2000, September 5, 2000 and May 16, 2003, in which directors, officers and certain other management employees participate, a copy of which Plan document and amendments was attached as Exhibit 10(viii) of McCormick’s Form 10-Q for the quarter ended August 31, 2003, File No. 1-14920, as filed with the Securities and Exchange Commission on October 14, 2003, and incorporated by reference herein.*
	(ii)	Non-Qualified Retirement Savings Plan, with an effective date of February 1, 2017, in which directors, officers and certain other management employees participate, a copy of which Plan document was attached as Exhibit 10(v) of McCormick's Form 10-Q for the quarter ended February 28, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on March 28, 2017, and incorporated by reference herein.*

98

		Exhibit Number	Description
	(iii)	The 2007 Omnibus Incentive Plan, in which directors, officers and certain other management employees participate, is set forth in Exhibit A of McCormick’s definitive Proxy Statement dated February 20, 2008, File No. 1-14920, as filed with the Securities and Exchange Commission on February 20, 2008, and incorporated by reference herein, as amended by Amendment No. 1 thereto, which Amendment is incorporated by reference from Exhibit 10(xi) of McCormick’s 10-K for the fiscal year ended November 30, 2008, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2009.*
	(iv)	The Amended and Restated 2013 Omnibus Incentive Plan, in which directors, officers and certain other management employees participate, is incorporated by reference from Exhibit A of McCormick’s definitive Proxy Statement dated February 14, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on February 14, 2019.*
	(v)	Form of Long-Term Performance Plan Agreement, incorporated by reference from Exhibit 10(vi) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
	(vi)	Form of Restricted Stock Units Agreement, incorporated by reference from Exhibit 10(vii) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
	(vii)	Form of Restricted Stock Units Agreement for Directors, incorporated by reference from Exhibit 10(viii) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
	(viii)	Form of Non-Qualified Stock Option Agreement, incorporated by reference from Exhibit 10(ix) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
	(ix)	Form of Non-Qualified Stock Option Agreement for Directors, incorporated by reference from Exhibit 10(x) of McCormick’s Form 10-K for the fiscal year ended November 30, 2019, File No. 1-14920, as filed with the Securities and Exchange Commission on January 28, 2020.
	(x)	Form of Stock Option Agreement for the Value Creation Acceleration Program, incorporated by reference from Exhibit 99.1 of McCormick’s Form 8-K, File No. 1-14920, as filed with the Securities and Exchange Commission on December 3, 2020.
	(xi)	Form of Indemnification Agreement, incorporated by reference from Exhibit 10(xv) of McCormick’s Form 10-Q for the quarter ended February 28, 2014, File No. 1-14920, as filed with the Securities and Exchange Commission on March 26, 2014.
	(xii)	Employment Agreement between McCormick (UK) Limited and Malcolm Swift, incorporated by reference from Exhibit 10.1 of McCormick’s Form 8-K, File No. 1-14920, as filed with the Securities and Exchange Commission on January 29, 2015.*
	(xiii)	Severance Plan for Executives, incorporated by reference from Exhibit 10(xix) of McCormick’s Form 10-Q for the quarter ended February 28, 2015, File No. 1-14920, as filed with the Securities and Exchange Commission on March 31, 2015.*
	(xiv)	Term Loan Agreement, dated August 7, 2017, by among the Company, Bank of America, N.A., as administrative agent, and the lenders party thereto, incorporated by reference from Exhibit 10.1 of McCormick’s Form 8-K dated August 7, 2017, File No. 1-14920, as filed with the Securities and Exchange Commission on August 11, 2017.
(21)		Subsidiaries of McCormick	Filed herewith
(23)		Consents of experts and counsel	Filed herewith
(31)		Rule 13a-14(a)/15d-14(a) Certifications	Filed herewith
	(i)	Certification of Lawrence E. Kurzius, Chairman, President and Chief Executive Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

99

		Exhibit Number	Description
	(ii)	Certification of Michael R. Smith, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(a) or Rule 15d-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
(32)		Section 1350 Certifications	Filed herewith
	(i)	Certification of Lawrence E. Kurzius, Chairman, President and Chief Executive Officer, pursuant to Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
	(ii)	Certification of Michael R. Smith, Executive Vice President and Chief Financial Officer, pursuant to Rule 13a-14(b) or Rule 15d-14(b) under the Securities Exchange Act of 1934 and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
(101)		The following financial information from the Annual Report on Form 10-K of McCormick for the year ended November 30, 2020, filed electronically herewith, and formatted in Inline XBRL (Extensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Income Statements; (iii) Consolidated Statements of Comprehensive Income; (iv) Consolidated Statements of Shareholders’ Equity; (v) Consolidated Cash Flow Statements; and (vi) Notes to Consolidated Financial Statements.
(104)		Inline XBRL for the cover page of this Annual Report on Form 10-K of McCormick for the year ended November 30, 2020, filed electronically herewith, included in the Exhibit 101 Inline XBRL Document Set.
	*	Management contract or compensatory plan or arrangement.
		McCormick hereby undertakes to furnish to the Securities and Exchange Commission, upon its request, copies of additional instruments of McCormick with respect to long-term debt that involve an amount of securities that do not exceed 10% of the total assets of McCormick and its subsidiaries on a consolidated basis, pursuant to Regulation S-K, Item 601(b)(4)(iii)(A).

SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, McCormick has duly caused this report on Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized.

McCORMICK & COMPANY, INCORPORATED

By:	/s/        LAWRENCE E. KURZIUS	Chairman, President &	January 28, 2021
	Lawrence E. Kurzius	Chief Executive Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of McCormick and in the capacities and on the dates indicated.
Principal Executive Officer:
By:	/s/        LAWRENCE E. KURZIUS	Chairman, President &	January 28, 2021
	Lawrence E. Kurzius	Chief Executive Officer
Principal Financial Officer:
By:	/s/        MICHAEL R. SMITH	Executive Vice President & Chief	January 28, 2021
	Michael R. Smith	Financial Officer
Principal Accounting Officer:
By:	/s/        CHRISTINA M. MCMULLEN	Vice President & Controller	January 28, 2021
	Christina M. McMullen	Chief Accounting Officer

100

101

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons, being a majority of the Board of Directors of McCormick & Company, Incorporated, on the date indicated:

THE BOARD OF DIRECTORS:	DATE:
/s/        ANNE L. BRAMMAN	January 28, 2021
Anne L. Bramman
/s/        MICHAEL A. CONWAY	January 28, 2021
Michael A. Conway
/s/        FREEMAN A. HRABOWSKI, III	January 28, 2021
Freeman A. Hrabowski, III
/s/        LAWRENCE E. KURZIUS	January 28, 2021
Lawrence E. Kurzius
/s/        PATRICIA LITTLE	January 28, 2021
Patricia Little
/s/        MICHAEL D. MANGAN	January 28, 2021
Michael D. Mangan
/s/        MARITZA G. MONTIEL	January 28, 2021
Maritza G. Montiel
/s/        MARGARET M.V. PRESTON	January 28, 2021
Margaret M.V. Preston
/s/        GARY M. RODKIN	January 28, 2021
Gary M. Rodkin
/s/        W. ANTHONY VERNON	January 28, 2021
W. Anthony Vernon
/s/        JACQUES TAPIERO	January 28, 2021
Jacques Tapiero

102

Supplemental Financial Schedule II Consolidated

McCORMICK & COMPANY, INCORPORATED

VALUATION AND QUALIFYING ACCOUNTS

(IN MILLIONS)

Column A	Column B		Column C Additions				Column D		Column E
Description	Balance at beginning of period		Charged to costs and expenses		Charged to other accounts		Deductions		Balance at end of period
Deducted from asset accounts:
Year ended November 30, 2020:
Allowance for doubtful receivables	$	5.6	$	0.8	$	(1.4)	$	0.2	$	5.2
Valuation allowance on net deferred tax assets	32.4		11.8		(0.1)		(12.6)		31.5
	$	38.0	$	12.6	$	(1.5)	$	(12.4)	$	36.7
Deducted from asset accounts:
Year ended November 30, 2019:
Allowance for doubtful receivables	$	6.4	$	1.1	$	(1.8)	$	(0.1)	$	5.6
Valuation allowance on net deferred tax assets	32.9		2.6		(0.5)		(2.6)		32.4
	$	39.3	$	3.7	$	(2.3)	$	(2.7)	$	38.0
Deducted from asset accounts:
Year ended November 30, 2018:
Allowance for doubtful receivables	$	6.6	$	1.1	$	(0.6)	$	(0.7)	$	6.4
Valuation allowance on net deferred tax assets	26.0		11.1		(2.2)		(2.0)		32.9
	$	32.6	$	12.2	$	(2.8)	$	(2.7)	$	39.3

103

EX-21

EXHIBIT 21

Subsidiaries of McCormick

The following is a listing of Subsidiaries of McCormick including the name under which they do business and their jurisdictions of incorporation. Certain subsidiaries are not listed since, considered in the aggregate as a single subsidiary, they would not constitute a significant subsidiary as of November 30, 2020.

Company Name	Jurisdiction of Incorporation
Billy Bee Honey Products Company	Canada
Botanical Food Company Pty. Ltd.	Australia
Botanical Food Company, Inc.	Delaware, U.S.
Brand Aromatics, Inc	New Jersey, U.S.
CFCFlavor Holdings SA DE C.V.	Mexico
The Cholula Food Company LLC	Delaware, U.S.
Drogheria E Alimentari SPA	Italy
Enrico Giotti SPA	Italy
The French's Food Company LLC	Delaware, U.S.
The French's Food Company, Inc.	Canada
Kohinoor Speciality Foods India Private Limited	India
La Cie McCormick Canada Co.	Canada
McCormick (Guangzhou) Food Company Limited	People’s Republic of China
McCormick (U.K.) Ltd.	Scotland
McCormick Cyprus Limited	Cyprus
McCormick de Centro America, S.A. de C.V.	El Salvador
McCormick Europe, Ltd.	United Kingdom
McCormick Foods Australia Pty. Ltd.	Australia
McCormick France Holdings S.A.S.	France
McCormick France, S.A.S.	France
McCormick Global Ingredients Limited	Cayman
McCormick Holding Company Inc.	Delaware, U.S.
McCormick Ingredients Southeast Asia Private Limited	Republic of Singapore
McCormick International Holdings Unlimited.	United Kingdom
McCormick Italy Holdings S.R.L.	Italy
McCormick Pesa, S.A. de C.V.	Mexico
McCormick Polska S.A.	Poland
McCormick South Africa Pty Limited	South Africa
McCormick Switzerland GmbH	Switzerland
McCormick (Wuhan) Food Company Limited	People’s Republic of China
Mojave Foods Corporation	Maryland, U.S.
Shanghai McCormick Foods Company Limited	People’s Republic of China
Simply Asia Foods LLC.	Delaware, U.S.
One World Foods, Inc.	Delaware, U.S.
Wooden Cap, Inc.	Delaware, U.S.
Zatarain’s Brands, Inc.	Delaware, U.S.

EX-23

EXHIBIT 23

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of McCormick & Company, Incorporated and in the related Prospectuses (if applicable):

Form	Registration Number	Date Filed
S-3ASR	333-249073	9/25/20
S-3ASR	333-237649	4/13/20
S-8	333-230556	3/28/19
S-8	333-220665	9/27/17
S-3ASR	333-220664	9/27/17
S-8	333-187703	4/3/13
S-8	333-186250	1/28/13
S-8	333-158573	4/14/09
S-8	333-155775	11/28/08
S-8	333-150043	4/2/08
S-8	333-142020	4/11/07
S-8	333-123808	4/4/05
S-8	333-114094	3/31/04
S-8	333-104084	3/28/03
S-8	333-93231	12/21/99
S-8	333-74963	3/24/99
S-8	333-23727	3/21/97
S-3	33-66614	7/27/93
S-3	33-40920	5/29/91
S-8	33-33724	3/2/90
S-3	33-32712	12/21/89
S-3	33-24660	3/16/89
S-3	33-24659	9/15/88
S-8	33-24658	9/15/88

of our reports dated January 28, 2021, with respect to the consolidated financial statements and schedule of McCormick & Company, Incorporated and the effectiveness of internal control over financial reporting of McCormick & Company, Incorporated, included in this Annual Report (Form 10-K) of McCormick & Company, Incorporated for the year ended November 30, 2020.

/s/     Ernst & Young LLP

Baltimore, Maryland

January 28, 2021

EX-31.1

EXHIBIT 31.1

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)

I, Lawrence E. Kurzius, certify that:

1. I have reviewed this report on Form 10-K of McCormick & Company, Incorporated (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 28, 2021	/s/    Lawrence E. Kurzius
	Lawrence E. Kurzius
	Chairman, President & Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION PURSUANT TO RULE 13a-14(a)/15d-14(a)

I, Michael R. Smith, certify that:

1. I have reviewed this report on Form 10-K of McCormick & Company, Incorporated (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: January 28, 2021	/s/    Michael R. Smith
	Michael R. Smith
	Executive Vice President & Chief Financial Officer

EX-32.1

EXHIBIT 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of McCormick & Company, Incorporated (the “Company”) on Form 10-K for the period ending November 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Lawrence E. Kurzius, President & Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/    Lawrence E. Kurzius
	Lawrence E. Kurzius
	Chairman, President & Chief Executive Officer
Date: January 28, 2021

EX-32.2

EXHIBIT 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report of McCormick & Company, Incorporated (the “Company”) on Form 10-K for the period ending November 30, 2020, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Michael R. Smith, Executive Vice President & Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. section 1350, as adopted pursuant to section 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

	/s/     Michael R. Smith
	Michael R. Smith
	Executive Vice President & Chief Financial Officer
Date: January 28, 2021

XML

Cover Page - USD ($)	12 Months Ended
	Nov. 30, 2020	Dec. 31, 2020	May 31, 2020
Document Type	10-K
Document Annual Report	true
Document Period End Date	Nov. 30, 2020
Document Transition Report	false
Entity File Number	001-14920
Entity Registrant Name	MCCORMICK & CO INC
Entity Incorporation, State or Country Code	MD
Entity Tax Identification Number	52-0408290
Entity Address, Address Line One	24 Schilling Road, Suite 1,
Entity Address, City or Town	Hunt Valley,
Entity Address, State or Province	MD
Entity Address, Postal Zip Code	21031
City Area Code	410
Local Phone Number	771-7301
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Public Float			$ 23,311,387,050
Entity Central Index Key	0000063754
Document Fiscal Year Focus	2020
Current Fiscal Year End Date	--11-30
Document Fiscal Period Focus	FY
Amendment Flag	false
ICFR Auditor Attestation Flag	true
Common Stock [Member]
Title of 12(b) Security	Common Stock, No Par Value
Trading Symbol	MKC-V
Security Exchange Name	NYSE
Entity Public Float			1,601,653,059
Entity Common Stock, Shares Outstanding		17,999,331
Common Stock Non-Voting [Member]
Title of 12(b) Security	Common Stock Non-Voting, No Par Value
Trading Symbol	MKC
Security Exchange Name	NYSE
Entity Public Float			$ 21,709,733,991
Entity Common Stock, Shares Outstanding		248,943,617

XML

Consolidated Income Statement - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Income Statement [Abstract]
Revenues	$ 5,601.3	$ 5,347.4	$ 5,302.8
Cost of Goods and Services Sold	3,300.9	3,202.1	3,209.5
Gross profit	2,300.4	2,145.3	2,093.3
Selling, general and administrative expense	1,281.6	1,166.8	1,163.4
Transaction and integration expenses	12.4	0.0	22.5
Special charges	6.9	20.8	16.3
Operating income	999.5	957.7	891.1
Interest expense	135.6	165.2	174.6
Other income, net	17.6	26.7	24.8
Income from consolidated operations before income taxes	881.5	819.2	741.3
Income tax expense (benefit)	174.9	157.4	(157.3)
Net income from consolidated operations	706.6	661.8	898.6
Income from unconsolidated operations	40.8	40.9	34.8
Net income	$ 747.4	$ 702.7	$ 933.4
Earnings per share–basic (usd per share)	$ 2.80	$ 2.65	$ 3.55
Earnings per share–diluted (usd per share)	$ 2.78	$ 2.62	$ 3.50

XML

Consolidated Statement of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract]
Net income	$ 747.4	$ 702.7	$ 933.4
Net income attributable to non-controlling interest	4.3	1.9	3.3
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, before Tax	(80.4)	(149.8)	72.6
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax	89.7	(25.5)	(119.8)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	(0.9)	1.1	2.3
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent	18.1	33.2	(17.2)
Other comprehensive loss, net of tax	26.5	(141.0)	(62.1)
Comprehensive income	$ 778.2	$ 563.6	$ 874.6

XML

Consolidated Balance Sheet - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Assets
Cash and cash equivalents	$ 423.6	$ 155.4
Trade accounts receivable, less allowances of $5.2 for 2020 and $5.6 for 2019	528.5	502.9
Inventories	1,032.6	801.2
Prepaid expenses and other current assets	98.9	90.7
Total current assets	2,083.6	1,550.2
Property, plant and equipment, net	1,028.4	952.6
Goodwill	4,986.3	4,505.2
Intangible assets, net	3,239.4	2,847.0
Other long-term assets	752.0	507.1
Total assets	12,089.7	10,362.1
Liabilities
Short-term borrowings	886.7	600.7
Current portion of long-term debt	263.9	97.7
Trade accounts payable	1,032.3	846.9
Other accrued liabilities	863.6	609.1
Total current liabilities	3,046.5	2,154.4
Long-term debt	3,753.8	3,625.8
Deferred taxes	727.2	697.6
Other long-term liabilities	622.2	427.6
Total liabilities	8,149.7	6,905.4
Shareholders’ equity
Retained earnings	2,415.6	2,055.8
Accumulated other comprehensive loss	(470.8)	(500.2)
Stockholders' Equity Attributable to Parent	3,926.1	3,444.2
Non-controlling interests	13.9	12.5
Total shareholders’ equity	3,940.0	3,456.7
Total liabilities and shareholders’ equity	12,089.7	10,362.1
Common Stock [Member]
Shareholders’ equity
Common stock	484.0	447.6
Common Stock Non-Voting [Member]
Shareholders’ equity
Common stock	$ 1,497.3	$ 1,441.0

XML

Consolidated Balance Sheet (Parenthetical) - USD ($) shares in Millions, $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Trade accounts receivable, allowances	$ 5.2	$ 5.6
Common Stock [Member]
Common stock, par value (usd per share)
Common stock, shares authorized	320.0	320.0
Common stock, shares issued	18.0	18.6
Common stock, shares outstanding	18.0	18.6
Common Stock Non-Voting [Member]
Common stock, par value (usd per share)
Common stock, shares authorized	320.0	320.0
Common stock, shares issued	248.9	247.2
Common stock, shares outstanding	248.9	247.2

XML

Consolidated Cash Flow Statement - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Operating activities
Net income	$ 747.4	$ 702.7	$ 933.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	165.0	158.8	150.7
Stock-based compensation	46.0	37.2	25.6
Non-cash nonrecurring income tax benefit (related to enactment of the U.S. Tax Act)	0.0	0.0	(309.4)
Non-cash special charges	0.0	0.0	3.0
Loss (gain) on sale of assets	3.0	(1.6)	(5.4)
Deferred income tax (benefit) expense	(11.2)	20.9	40.1
Income from unconsolidated operations	(40.8)	(40.9)	(34.8)
Changes in operating assets and liabilities (net of effect of businesses acquired):
Trade accounts receivable	4.8	12.2	19.8
Inventories	(200.2)	(20.9)	(10.0)
Trade accounts payable	164.2	128.2	72.8
Other assets and liabilities	133.8	(81.5)	(91.8)
Dividends received from unconsolidated affiliates	29.3	31.7	27.2
Net cash provided by operating activities	1,041.3	946.8	821.2
Investing activities
Acquisitions of businesses (net of cash acquired)	(803.0)	0.0	(4.2)
Capital expenditures (including expenditures for capitalized software)	(225.3)	(173.7)	(169.1)
Other investing activities	2.7	2.7	14.8
Net cash used in investing activities	(1,025.6)	(171.0)	(158.5)
Financing activities
Short-term borrowings, net	286.5	41.0	305.5
Long-term debt borrowings	527.0	0.0	25.9
Payment of debt issuance costs	(1.1)	0.0	0.0
Long-term debt repayments	(257.7)	(447.7)	(797.9)
Proceeds from exercised stock options	56.6	90.9	78.2
Taxes withheld and paid on employee stock awards	(13.0)	(12.7)	(11.6)
Payment of contingent consideration	0.0	0.0	(2.5)
Purchase of minority interest	0.0	0.0	(13.0)
Common stock acquired by purchase	(47.3)	(95.1)	(62.3)
Dividends paid	(330.1)	(302.2)	(273.4)
Net cash provided by (used in) financing activities	220.9	(725.8)	(751.1)
Effect of exchange rate changes on cash and cash equivalents	31.6	8.8	(1.8)
Increase (decrease) in cash and cash equivalents	268.2	58.8	(90.2)
Cash and cash equivalents at beginning of year	155.4	96.6	186.8
Cash and cash equivalents at end of year	$ 423.6	$ 155.4	$ 96.6

XML

Consolidated Statement Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions	Total	Common Stock [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive (Loss) Income [Member]	Non-Controlling Interests [Member]	Common Stock Non-Voting [Member] Common Stock [Member]
Balance, Shares at Nov. 30, 2017		20.0				242.0
Balance, Value at Nov. 30, 2017	$ 2,570.9	$ 1,672.9	$ 1,166.5	$ (279.5)	$ 11.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	933.4		933.4
Net income attributable to non-controlling interest	3.3				3.3
Other comprehensive loss, net of tax	(62.1)			(59.5)	(2.6)
Dividends	(280.5)		(280.5)
Adoption of ASU 2018-02			20.9	(20.9)
Buyout of minority interest			(12.4)
Stock-based compensation	25.6	$ 25.6
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders	(12.8)				(0.4)
Shares purchased and retired, Shares		(0.6)				(0.8)
Shares purchased and retired, Value	(84.5)	$ (16.8)	(67.7)
Shares issued, Shares		3.4				0.2
Shares issued, Value	88.9	$ 88.9
Equal exchange, shares		(3.7)				3.7
Equal exchange, amount	0.0
Balance, Shares at Nov. 30, 2018		19.1				245.1
Balance, Value at Nov. 30, 2018	3,182.2	$ 1,770.6	1,760.2	(359.9)	11.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	702.7		702.7
Net income attributable to non-controlling interest	1.9				1.9
Other comprehensive loss, net of tax	(141.0)			(140.3)	(0.7)
Dividends	(309.3)		(309.3)
Stock-based compensation	37.2	$ 37.2
Shares purchased and retired, Shares		(0.4)				(1.2)
Shares purchased and retired, Value	(113.2)	$ (15.4)	(97.8)
Stock Issued During Period, Shares, New Issues		3.0				0.2
Shares issued, Value	96.2	$ 96.2
Equal exchange, shares		(3.1)				3.1
Equal exchange, amount	0.0
Balance, Shares at Nov. 30, 2019		18.6				247.2
Balance, Value at Nov. 30, 2019	3,456.7	$ 1,888.6	2,055.8	(500.2)	12.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	747.4		747.4
Net income attributable to non-controlling interest	4.3				4.3
Other comprehensive loss, net of tax	26.5			29.4	(2.9)
Dividends	(338.5)		(338.5)
Stock-based compensation	46.0	$ 46.0
Shares purchased and retired, Shares		(0.3)				(0.2)
Shares purchased and retired, Value	(62.7)	$ (13.6)	(49.1)
Stock Issued During Period, Shares, New Issues		1.6				0.0
Shares issued, Value	60.3	$ 60.3
Equal exchange, shares		(1.9)				1.9
Equal exchange, amount	0.0
Balance, Shares at Nov. 30, 2020		18.0				248.9
Balance, Value at Nov. 30, 2020	$ 3,940.0	$ 1,981.3	$ 2,415.6	$ (470.8)	$ 13.9

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Summary Of Significant Accounting Policies

12 Months Ended

Nov. 30, 2020

Accounting Policies [Abstract]

Summary Of Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Consolidation

The financial statements include the accounts of our majority-owned or controlled subsidiaries and affiliates. Intercompany transactions have been eliminated. Investments in unconsolidated affiliates, over which we exercise significant influence, but not control, are accounted for by the equity method. Accordingly, our share of net income or loss of unconsolidated affiliates is included in net income.

Foreign Currency Translation

For majority-owned or controlled subsidiaries and affiliates, if located outside of the U.S., with functional currencies other than the U.S. dollar, asset and liability accounts are translated at the rates of exchange at the balance sheet date and the resultant translation adjustments are included in accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Income and expense items are translated at average monthly rates of exchange. Gains and losses from foreign currency transactions of these majority-owned or controlled subsidiaries and affiliates — that is, transactions denominated in other than their functional currency — other than intercompany transactions designated as long-term investments, are included in net earnings.

Our unconsolidated affiliates located outside the U.S. generally use their local currencies as their functional currencies. The asset and liability accounts of those unconsolidated affiliates are translated at the rates of exchange at the balance sheet date, with the resultant translation adjustments included in accumulated other comprehensive income (loss) of those affiliates. Income and expense items of those affiliates are translated at average monthly rates of exchange. We record our ownership share of the net assets and accumulated other comprehensive income (loss) of our unconsolidated affiliates in our consolidated balance sheet on the lines entitled “Other long-term assets” and “Accumulated other comprehensive loss,” respectively. We record our ownership share of the net income of our unconsolidated affiliates in our consolidated income statement on the line entitled “Income from unconsolidated operations.”

Use of Estimates

Preparation of financial statements that follow accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual amounts could differ from these estimates.

Cash and Cash Equivalents

All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents.

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined under the first-in, first-out costing method (FIFO), including the use of average costs which approximate FIFO.

Property, Plant and Equipment

Property, plant and equipment is stated at historical cost and depreciated over its estimated useful life using the straight-line method for financial reporting and both accelerated and straight-line methods for tax reporting. The estimated useful lives range from 20 to 50 years for buildings and 3 to 12 years for machinery, equipment and other assets. Assets leased under capital leases are depreciated over the shorter of the lease term or their useful lives unless it is reasonably certain that we will obtain ownership by the end of the lease term. Repairs and maintenance costs are expensed as incurred.

Computer Software

We capitalize costs of software developed or obtained for internal use. Capitalized software development costs include only (1) direct costs paid to others for materials and services to develop or buy the software, (2) payroll and payroll-related costs for employees who work directly on the software development project and (3) interest costs while developing the software. Capitalization of these costs stops when the project is substantially complete and ready for use.

The net book value of capitalized software totaled $116.0 million and $76.4 million at November 30, 2020 and 2019, respectively. Such amounts are recorded within "Other long-term assets" in the consolidated balance sheet. Software is amortized using the straight-line method over a range of 3 to 13 years, but not exceeding the expected life of the product. The net book value of capitalized software includes $86.7 million and $44.9 million at November

30, 2020 and 2019, respectively, which had not yet been placed into service and relates to our future implementation of a global enterprise resource planning (ERP) system.

Goodwill and Other Intangible Assets

We review the carrying value of goodwill and indefinite-lived intangible assets and conduct tests of impairment on an annual basis as described below. We also test goodwill for impairment if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is below its carrying amount and test indefinite-lived intangible assets for impairment if events or changes in circumstances indicate that the asset might be impaired. Separable intangible assets that have finite useful lives are amortized over those lives.

Determining the fair value of a reporting unit or an indefinite-lived purchased intangible asset is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, assumed royalty rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from these estimates.

Goodwill Impairment

Our reporting units used to assess potential goodwill impairment are the same as our business segments. We calculate fair value of a reporting unit by using a discounted cash flow model and then compare that to the carrying amount of the reporting unit, including intangible assets and goodwill. If the carrying amount of the reporting unit exceeds the calculated fair value, we would determine the implied fair value of the reporting unit’s goodwill. An impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the implied fair value.

Indefinite-lived Intangible Asset Impairment

Our indefinite-lived intangible assets consist of acquired brand names and trademarks. We primarily determine fair value by using a relief-from-royalty method and then compare that to the carrying amount of the indefinite-lived intangible asset. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment charge would be recorded to the extent the recorded indefinite-lived intangible asset exceeds the fair value.

Long-lived Asset Impairment

Fixed assets and amortizable intangible assets are reviewed for impairment as events or changes in circumstances occur indicating that the carrying value of the asset may not be recoverable. Undiscounted cash flow analyses are used to determine if an impairment exists. If an impairment is determined to exist, the loss would be calculated based on the excess of the asset’s carrying value over its estimated fair value.

Revenue Recognition

We manufacture, market and distribute spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retailers, food manufacturers and foodservice businesses. We recognize sales as performance obligations are fulfilled when control passes to the customer. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates and returns, are estimated at the time of sale. Any taxes collected on behalf of government authorities are excluded from net sales. We account for product shipping and handling as fulfillment activities with costs for these activities recorded within cost of goods sold. Amounts billed and due from our customers are classified as accounts receivable on the balance sheet and require payment on a short-term basis. Our allowance for doubtful accounts represents our estimate of probable non-payments and credit losses in our existing receivables, as determined based on a review of past due balances and other specific account data.

The following table sets forth our net sales by the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) geographic regions:

(millions)	Americas		EMEA		APAC		Total
2020
Net sales	$	3,974.9	$	1,046.7	$	579.7	$	5,601.3
2019
Net sales	$	3,711.3	$	986.1	$	650.0	$	5,347.4
2018
Net sales	$	3,627.5	$	1,021.1	$	654.2	$	5,302.8

Performance Obligations

Our revenues primarily result from contracts or purchase orders with customers, which generally are both short-term in nature and have a single performance obligation—the delivery of our products to customers. We assess the goods and services promised in our customers’ contracts or purchase orders and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised, whether explicitly stated or implied based on customary business practices.

Significant Judgments

Sales are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding these programs. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one-year or shorter duration. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. The adjustments recognized during the year ended November 30, 2020, 2019 and 2018 resulting from updated estimates of revenue for prior year product sales were not significant. The unsettled portion remaining in accrued liabilities for these activities was $183.3 million and $137.2 million at November 30, 2020 and 2019, respectively.

Practical Expedients

We have elected the following policy elections and practical expedients with respect to revenue recognition:

•Shipping and handling costs — We elected to account for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service.

•Measurement of transaction price — We elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer for sales, value added and other excise taxes.

•Incremental cost of obtaining a contract — We elected to expense any incremental costs of obtaining a contract when the contract is for a period of one year or less.

Shipping and Handling

Shipping and handling costs on our products sold to customers related to activities that occur before the customer has obtained control of a good are included in cost of goods sold in the consolidated income statement.

Brand Marketing Support

Total brand marketing support costs, which are included in our consolidated income statement in the line entitled "Selling, general and administrative expense", were $230.3 million, $214.6 million and $218.7 million for 2020, 2019 and 2018, respectively. Brand marketing support costs include advertising and promotions but exclude trade funds paid to customers for such activities. All trade funds paid to customers are reflected in the consolidated income statement as a reduction of net sales. Promotion costs include public relations, shopper marketing, social marketing activities, general consumer promotion activities and depreciation of assets used in these promotional activities. Advertising costs include the development, production and communication of advertisements through television, digital, print and radio. Development and production costs are expensed in the period in which the advertisement is first run. All other costs of advertising are expensed as incurred. Advertising expense was $174.8 million, $150.8 million and $147.2 million for 2020, 2019 and 2018, respectively.

Research and Development

Research and development costs are expensed as incurred and are included in our consolidated income statement in the line entitled "Selling, general and administrative expense". Research and development expense was $68.6 million, $67.3 million and $69.4 million for 2020, 2019 and 2018, respectively.

Income Taxes

Income taxes are recognized in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

As more fully described in note 13, the U.S. Tax Act created a new requirement that certain income earned by foreign subsidiaries, referred to as Global Intangible Low-Taxed Income (GILTI), must be included in the gross income of the subsidiary’s U.S. shareholder; this provision of the U.S. Tax Act was effective for us beginning on December 1, 2018. Accounting principles generally accepted in the U.S. provide for an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current period expense when incurred. We have elected to treat GILTI as a current period expense when incurred.

In accordance with ASC 740, Income Taxes, we recognize a tax position in our financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. That position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.

Stock-Based Compensation

Stock-based compensation expense is recognized in accordance with ASC 718, Compensation – Stock Compensation. We recognize stock-based compensation expense associated with options and restricted stock units (RSUs), which contain provisions that such awards fully vest upon an employee’s retirement, ratably over the shorter of the vesting period or the employees’ retirement eligibility date. Accordingly, we recognize stock-based compensation associated with options and RSUs subject to immediate retirement eligible vesting provisions on the date of grant.

Compensation expense associated with our long-term performance plan (LTPP) is recorded in the income statement ratably over the three-year period of the program based on the number of shares ultimately expected to be awarded using our estimate of the most likely outcome of achieving the performance objectives. We estimate forfeitures at the time of grant based on historical experience and revises this estimate in subsequent periods if actual forfeitures differ.

We recognize stock-based compensation expense associated with price-vested stock options ratably over the vesting period as such options do not contain provisions that fully vest these awards upon an employee’s retirement.

Stock Split

On September 28, 2020, our Board of Directors approved a 2-for-1 stock split in the form of a stock dividend on all shares of the Company’s two classes of common stock, Common Stock and Common Stock Non-Voting. On November 30, 2020, one like share was issued for each share outstanding to shareholders of record as of November 20, 2020. Trading of the Company’s common stock began on a split-adjusted basis on December 1, 2020. All common stock and per-share data have been retroactively adjusted for the impact of the stock split.

Derivative Instruments

We record all derivatives on our balance sheet at fair value. The fair value of derivative instruments is recorded in our consolidated balance sheet on the lines entitled “Other current assets", "Other long-term assets", "Other accrued liabilities" or "Other long-term liabilities". Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in our consolidated income statement in the lines entitled "Other income (expense), net" or "Interest expense". In our consolidated cash flow statement, settlements of cash flow and fair value hedges are classified as operating activities; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instruments.

Cash flow hedges.  Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in our consolidated balance sheet on the line entitled “Accumulated other comprehensive income (loss)" until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from "Accumulated other comprehensive income (loss)" in our consolidated balance sheet to our consolidated income statement on the same line items as the underlying transactions.

Fair value hedges.  Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item.

Net investment hedges.  Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments, a component of “Accumulated other comprehensive income (loss)" in our consolidated balance sheet.

Employee Benefit and Retirement Plans

We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees.

We recognize the overfunded or underfunded status of our defined benefit pension plans as an asset or a liability in our balance sheet, with changes in the funded status recorded through other comprehensive income in the year in which those changes occur.

The expected return on plan assets is determined using the expected rate of return and a calculated value of plan assets referred to as the market-related value of plan assets. Differences between assumed and actual returns are amortized to the market-related value of assets on a straight-line basis over five years.

We use the corridor approach in the valuation of defined benefit pension and postretirement benefit plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. Those unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining life expectancy of retired plan participants, for plans whose benefits have been frozen, or the average remaining service period to retirement date of active plan participants.

Accounting Pronouncements Adopted in 2020

We adopted the new accounting standard for leases, Accounting Standards Codification Topic 842 Leases (ASC 842), as of December 1, 2019 and we elected to do so using a modified retrospective transition method. That modified retrospective transition method allowed us to initially apply the standard at the adoption date and recognize a cumulative-effect adjustment to retained earnings in the opening balance sheet in the period of adoption without restating prior periods. ASC 842 revised prior practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors and requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use (ROU) assets. Under ASC 842, the lease liability is equal to the present value of lease payments, and the ROU asset is based on the lease liability, subject to adjustments, such as for deferred rent and initial direct costs. For income statement purposes, ASC 842 retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases result in straight-line expense (similar to prior accounting by lessees for operating leases under ASC 840) while finance leases result in a front-loaded expense pattern (similar to prior accounting by lessees for capital leases under ASC 840).

We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification. In addition, we made accounting policy elections to combine the lease and non-lease components for all asset categories other than real estate. We also made elections to exclude from balance sheet reporting those leases with initial terms of 12 months or less (short-term leases).

Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of $136.5 million and $140.0 million, respectively, with the difference due to prepaid and deferred rents that were reclassified to the ROU asset value. No cumulative-effect adjustment to opening retained earnings was required as of December 1, 2019. The standard did not materially affect our consolidated net income or cash flows for our fiscal year ended November 30, 2020. See note 7 for further details.

Recently Issued Accounting Pronouncements — Pending Adoption

In January 2017, the FASB issued ASU No. 2017-04 Intangibles—Goodwill and Other Topics (Topic 350)—Simplifying the Test for Goodwill Impairment. This guidance eliminates the requirement to calculate the implied fair value of goodwill of a reporting unit to measure a goodwill impairment charge. Instead, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2021. We do not expect this guidance to have a material impact on our financial statements.

In June 2016, the FASB issued ASU No. 2016-13 Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which institutes a new model for recognizing credit losses on financial instruments that are not measured at fair value. The new standard is effective for the first quarter of our fiscal year ending November 30, 2021, and it will primarily impact our credit losses recognized for trade accounts receivable. This guidance will not have a material impact on our consolidated financial statements. 

In December 2019, the FASB issued ASU No. 2019-12 Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes. The new guidance removes certain exceptions to the general principles for income taxes and also improves consistent application of accounting by clarifying or amending existing guidance. The new standard is effective for the first quarter of our fiscal year ending November 30, 2022, and interim periods within those years. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

In March 2020, the FASB issued ASU No. 2020-04 Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting that provides optional expedients for a limited period of time for accounting for contracts, hedging relationship, and other transactions affected by the London Interbank Offered Rate (LIBOR) or other reference rate expected to be discontinued. These optional expedients can be applied from March 2020 through December 31, 2022. We are currently evaluating the impact that the new guidance will have on our consolidated financial statements.

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Acquisitions

12 Months Ended

Nov. 30, 2020

Business Combinations [Abstract]

Acquisitions

ACQUISITIONS

Acquisitions are part of our strategy to increase sales and profits.

Acquisition of Cholula Hot Sauce

On November 30, 2020, we completed the acquisition of the parent company of Cholula Hot Sauce® (Cholula) from L Catterton. The purchase price was approximately $803.0 million, net of cash acquired, subject to certain customary purchase price adjustments. The acquisition was funded with cash and short-term borrowings. Cholula, a premium Mexican hot sauce brand, is a strong addition to McCormick’s global branded flavor portfolio, which we believe broadens our offering in the high growth hot sauce category to consumers and foodservice operators and accelerate our condiment growth opportunities with a complementary authentic Mexican flavor hot sauce. At the time of the acquisition, annual sales of Cholula were approximately $96 million. The results of Cholula’s operations have been included in our financial statements as a component of our consumer and flavor solutions segments from the date of acquisition.

The purchase price of Cholula was preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We estimated the fair values based on in-process independent valuations, discounted cash flow analyses, quoted market prices, and estimates made by management, a number of which are subject to finalization. The allocation of the purchase price will be finalized within the allowable measurement period. The preliminary allocation, net of cash acquired, of the fair value of the Cholula acquisition is summarized in the table below (in millions):

Trade accounts receivable	$	15.2
Inventories	16.5
Goodwill	410.5
Intangible assets	401.0
Other assets	12.5
Trade accounts payable	(6.8)
Other accrued liabilities	(7.4)
Deferred taxes	(35.6)
Other long-term liabilities	(2.9)
Total	$	803.0

The preliminary fair value of intangible assets was determined using income methodologies. We valued the acquired brand names and trademarks using the relief from royalty method, an income approach. For customer relationships, we used the distributor method, a variation of the excess earnings method that uses distributor-based inputs for margins and contributory asset charges. Some of the more significant assumptions inherent in developing the preliminary valuations included the estimated annual net cash flows for each indefinite-lived or definite-lived intangible asset (including net sales, operating profit margin, and working capital/contributory asset charges), royalty rates, the discount rate that appropriately reflects the risk inherent in each future cash flow stream, the assessment of each asset’s life cycle, and competitive trends, as well as other factors. We determined the assumptions used in the financial forecasts using historical data, supplemented by current and anticipated market conditions, estimated product category growth rates, management plans, and market comparables.

We used carrying values to value trade receivables and payables, as well as certain other current and non-current assets and liabilities, as we determined that they represented the fair value of those items. We valued finished goods and work-in-process inventory using a net realizable value approach, which resulted in a step-up of $4.9 million that will be recognized in cost of goods sold in 2021 as the related inventory is sold. Raw materials and packaging inventory was valued using the replacement cost approach.

Deferred income tax assets and liabilities represent the expected future tax consequences of temporary differences between the fair values of the assets acquired and liabilities assumed and their tax bases.

The preliminary valuation of the acquired net assets of Cholula includes $380.0 million allocated to indefinite-lived brand assets and $21.0 million allocated to definite-lived intangible assets with a weighted-average life of 15 years. As a result of the acquisition, we recognized a total of $410.5 million of goodwill. That goodwill primarily represents the intangible assets that do not qualify for separate recognition, such as the value of leveraging our brand building expertise, our insights in demand from consumer and flavor solutions customers for value-added flavor solutions, and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. Our income tax basis in the acquired intangible assets and goodwill approximates $285 million. The final allocation of the fair value of the Cholula acquisition, including the allocation of goodwill to our reporting units, which are the consumer and flavor solutions segments, was not complete as of November 30, 2020, but will be finalized within the allowable measurement period.

We expect transaction and integration expenses related to our acquisition of Cholula to total approximately $35 million, of which $11.2 million of transaction expenses were incurred in 2020. We anticipate incurring the balance of those transaction and integration expenses in fiscal 2021. We incurred an additional $1.2 million of transaction and integration expenses in 2020 related to our acquisition of FONA International, LLC and certain of its affiliates. See footnote 19 for additional details.

The impact of Cholula on our 2020 consolidated income before taxes, was principally the effect of the previously noted transaction expenses, and an insignificant amount of interest expense.

Acquisition of RB Foods

On August 17, 2017, we completed the acquisition of Reckitt Benckiser's Food Division (RB Foods) from Reckitt Benckiser Group plc. The purchase price was approximately $4.21 billion. In December 2017, we paid $4.2 million associated with the final working capital adjustment.

Total transaction and integration expenses related to the RB Foods acquisition totaled $22.5 million in 2018, of which $0.3 million and $22.2 million represented transaction expenses and integration expenses, respectively.

Other Acquisitions

On September 21, 2018, we purchased the remaining 10% ownership interest in our Shanghai subsidiary for a cash payment of $12.7 million. In conjunction with our purchase of this remaining 10% minority interest, we have eliminated the minority interest in that subsidiary and recorded an adjustment of $12.4 million to retained earnings in our consolidated balance sheet. The $12.7 million payment is reflected in the financing activities section of our consolidated cash flow statement for 2018.

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Special Charges

12 Months Ended

Nov. 30, 2020

Special Charges [Abstract]

Special Charges

SPECIAL CHARGES

In our consolidated income statement, we include a separate line item captioned “Special charges” in arriving at our consolidated operating income. Special charges consist of expenses, including related impairment charges, associated with certain actions undertaken to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee, comprised of our senior management, including our Chairman, President and Chief Executive Officer. Upon presentation of any such proposed action (generally including details with respect to estimated costs, which typically consist principally of employee severance and related benefits, together with ancillary costs associated with the action that may include a non-cash component, such as an asset impairment, or a component which relates to inventory adjustments that are included in cost of goods sold; impacted employees or operations; expected timing; and expected savings) to the Management Committee and the Committee’s advance approval, expenses associated with the approved action are classified as special charges upon recognition and monitored on an on-going basis through completion. Certain ancillary expenses related to these actions approved by our Management Committee do not qualify for accrual upon approval but are included as special charges as incurred during the course of the actions. In 2018, we also included in special charges, as approved by our Management Committee, expense associated with a one-time payment, made to eligible U.S. hourly employees, to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act and as more fully described in note 13.

The following is a summary of special charges recognized for the years ended November 30 (in millions):

	2020		2019		2018
Employee severance and related benefits	$	4.1	$	6.2	$	2.0
Other costs (1)	2.8		14.6		14.3
Total special charges	$	6.9	$	20.8	$	16.3

(1)    Included in other costs for 2018 are non-cash fixed asset impairment charges of $3.0 million.

The following is a summary of special charges by business segments for the years ended November 30 (in millions):

	2020		2019		2018
Consumer segment	$	5.5	$	13.1	$	10.0
Flavor solutions segment	1.4		7.7		6.3
Total special charges	$	6.9	$	20.8	$	16.3

We continue to evaluate changes to our organization structure to reduce fixed costs, simplify or improve processes, and improve our competitiveness.

During 2020, we recorded $6.9 million of special charges, consisting of (i) $5.3 million related to streamlining actions in our EMEA region, including $3.8 million related to severance and related benefits and $1.0 million of third party expenses and $0.5 million related to other costs; and (ii) $1.6 million related to our GE initiative. Of the $6.9 million in special charges recorded during 2020, approximately $4.8 million were paid in cash, with the remaining accrual expected to be paid in 2021. As of November 30, 2020, reserves associated with special charges are included in the line entitled "Trade accounts payable" and "Other accrued liabilities" in our consolidated balance sheet.

During 2019, we recorded $20.8 million of special charges, consisting primarily of (i) $14.1 million related to our GE initiative, including $10.6 million of third-party expenses, $2.1 million related to severance and related benefits, and $1.4 million related to other costs, (ii) $2.3 million of employee severance and related benefits associated with streamlining actions in the Americas and (iii) $3.9 million related to streamlining actions in our EMEA region. Of the $20.8 million in special charges recorded during 2019, approximately $16.8 million were paid in cash, with the remaining accrual paid in 2020.

During 2018, we recorded $16.3 million of special charges, consisting primarily of: (i) $11.5 million related to our global enablement initiative, as more fully described below; (ii) a one-time payment, in the aggregate amount of $2.2 million made to certain U.S. hourly employees to distribute a portion of the non-recurring net income tax benefit recognized in connection with the enactment of the U.S. Tax Act; (iii) $1.0 million related to employee severance benefits and other costs directly associated with the relocation of one of our Chinese manufacturing facilities; and (iv) $1.6 million related to employee severance benefits and other costs related to the transfer of certain manufacturing operations in our Asia/Pacific region to a new facility then under construction in Thailand. Of the $11.5 million in special charges recognized in 2018 related to our GE initiative, $7.5 million related to third party expenses, $3.0 million represented a non-cash asset impairment charge, and $1.0 million related to employee severance benefits. That non-cash asset impairment charge was related to the write-off of certain software assets that are incompatible with our future move, approved in 2018, to a new global ERP platform to facilitate planned actions under our GE initiative to align and simplify our end-to-end processes to support our future growth.

Of the $16.3 million in special charges recorded during 2018, approximately $12.3 million were paid in cash and $3.0 million represented a non-cash asset impairment, with the remaining accrual paid in 2019.

During 2017, our Management Committee approved a multi-year initiative during which we have executed and expect to continue to execute significant changes to our global processes, capabilities and operating model to provide a scalable platform for future growth. We expect this initiative to enable us to accelerate our ability to work globally and cross-functionally by aligning and simplifying processes throughout McCormick, in part building upon our current shared services foundation and expanding the end-to-end processes presently under that foundation. We expect this initiative, which we refer to as Global Enablement (GE), to enable this scalable platform for future growth while reducing costs, enabling faster decision making, increasing agility and creating capacity within our organization.

While we are continuing to fully develop the details of our GE operating model, we expect the cost of the GE initiative—to be recognized as “Special charges” in our consolidated income statement over its multi-year course—to range from approximately $60 million to $65 million. Of that $60 million to $65 million, we estimate that approximately sixty percent will be attributable to cash payments associated with related costs of GE implementation and transition, including outside consulting and other costs and approximately forty percent will be attributable to employee severance and related benefit payments both directly related to the initiative. Since its inception through November 30, 2020, we have recognized a total of $39.9 million of special charges associated with our GE initiative.

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Goodwill And Intangible Assets

12 Months Ended

Nov. 30, 2020

Goodwill And Intangible Assets [Abstract ]

Goodwill And Intangible Assets

GOODWILL AND INTANGIBLE ASSETS

The following table displays intangible assets as of November 30:

	2020				2019
(millions)	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Definite-lived intangible assets	$	336.8	$	127.4	$	308.3	$	104.3
Indefinite-lived intangible assets:
Goodwill	4,986.3		—		4,505.2		—
Brand names and trademarks	3,030.0		—		2,643.0		—
	8,016.3		—		7,148.2		—
Total goodwill and intangible assets	$	8,353.1	$	127.4	$	7,456.5	$	104.3

We acquired Cholula in November 2020 (see note 2). A preliminary valuation of the acquired net assets of Cholula resulted in the allocation of $410.5 million to goodwill, $380.0 million to indefinite-lived intangible assets associated with the acquired brand names and trademarks, and $21.0 million to definite-lived intangible assets. We expect to finalize the valuation of the acquired net assets of Cholula, including the related goodwill and intangible assets, within the one-year measurement period from the date of acquisition.

Intangible asset amortization expense was $20.2 million, $20.3 million and $20.6 million for 2020, 2019 and 2018, respectively. At November 30, 2020, definite-lived intangible assets had a weighted-average remaining life of approximately 10 years.

The changes in the carrying amount of goodwill by segment for the years ended November 30 were as follows:

	2020				2019
(millions)	Consumer		Flavor Solutions		Consumer		Flavor Solutions
Beginning of year	$	3,377.6	$	1,127.6	$	3,398.9	$	1,129.0
Increases from acquisitions	273.7		136.8		—		—
Foreign currency fluctuations	59.9		10.7		(21.3)		(1.4)
End of year	$	3,711.2	$	1,275.1	$	3,377.6	$	1,127.6

A preliminary valuation of the acquired net assets of Cholula resulted in the allocation of $273.7 million and $136.8 million of goodwill to the consumer segment and flavor solutions segment, respectively.

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Investments In Affiliates

12 Months Ended

Nov. 30, 2020

Investments In Affiliates [Abstract]

Investments In Affiliates

INVESTMENTS IN AFFILIATES

Summarized annual and year-end information from the financial statements of unconsolidated affiliates representing 100% of the businesses follows:

(millions)	2020		2019		2018
Net sales	$	870.3	$	863.0	$	807.9
Gross profit	318.0		316.2		290.5
Net income	93.7		90.5		78.9
Current assets	$	421.7	$	426.3	$	342.1
Noncurrent assets	126.2		134.0		129.9
Current liabilities	192.3		223.8		172.1
Noncurrent liabilities	12.2		9.2		10.0

Royalty income from unconsolidated affiliates was $19.5 million, $19.0 million and $18.5 million for 2020, 2019 and 2018, respectively.

Our principal earnings from unconsolidated affiliates is from our 50% interest in McCormick de Mexico, S.A. de C.V. Profit from this joint venture represented 75% of income from unconsolidated operations in 2020, 72% in 2019 and 76% in 2018.

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Financing Arrangements

12 Months Ended

Nov. 30, 2020

Financing Arrangements [Abstract]

Financing Arrangements

FINANCING ARRANGEMENTS

Our outstanding debt, including capital leases, was as follows at November 30:

(millions)	2020			2019
Short-term borrowings
Commercial paper	$	845.8		$	575.3
Other	40.9			25.4
	$	886.7		$	600.7
Weighted-average interest rate of short-term borrowings at year-end	0.3		%	2.5		%
Long-term debt
3.90% notes due 7/8/2021(1)	$	250.0		$	250.0
2.70% notes due 8/15/2022	750.0			750.0
Term loan due 8/17/2022(2)	—			250.0
3.50% notes due 8/19/2023(3)	250.0			250.0
3.15% notes due 8/15/2024	700.0			700.0
3.25% notes due 11/15/2025(4)	250.0			250.0
3.40% notes due 8/15/2027(5)	750.0			750.0
2.50% notes due 4/15/2030	500.0			—
4.20% notes due 8/15/2047	300.0			300.0
7.63%–8.12% notes due 2024	55.0			55.0
Other, including capital leases	195.8			171.6
Unamortized discounts, premiums, debt issuance costs and fair value adjustments(6)	16.9			(3.1)
	4,017.7			3,723.5
Less current portion	263.9			97.7
	$	3,753.8		$	3,625.8

(1)Interest rate swaps, settled upon the issuance of these notes in 2011, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 4.01%.

(2)The term loan was prepayable in whole or in part. Also, the term loan due in 2022 required quarterly principal payments of 2.5% of the initial principal amount.

(3)Interest rate swaps, settled upon the issuance of these notes in 2013, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.30%.

(4)Interest rate swaps, settled upon the issuance of these notes in 2015, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.45%. The fixed interest rate on $100 million of the 3.25% notes due in 2025 is effectively converted to a variable rate by interest rate swaps through 2025. Net interest payments are based on 3-month LIBOR plus 1.22% during this period (our effective rate as of November 30, 2020 was 1.44%).

(5)Interest rate swaps, settled upon the issuance of these notes in 2017, effectively set the interest rate on the $750 million notes at a weighted-average fixed rate of 3.44%. The fixed interest rate on $250 million of the 3.40% notes due in 2027 is effectively converted to a variable rate by interest rate swaps through 2027. Net interest payments are based on 3-month LIBOR plus 0.685% during this period (our effective rate as of November 30, 2020 was 0.91%).

(6)Includes unamortized discounts, premiums and debt issuance costs of $(24.4) million and $(23.6) million as of November 30, 2020 and 2019, respectively.  Includes fair value adjustment associated with interest rate swaps designated as fair value hedges of $41.3 million and $20.5 million as of November 30, 2020 and 2019, respectively.

Maturities of long-term debt, including capital leases, during the fiscal years subsequent to November 30, 2020 are as follows (in millions):

2021	$	263.9
2022	765.0
2023	265.2
2024	791.9
2025	271.4
Thereafter	1,643.4

In April 2020, we issued $500.0 million of 2.50% notes due April 15, 2030, with cash proceeds received of $495.0 million, net of discounts and underwriters' fees. Interest is payable semiannually in arrears in April and October of each year.

In August 2017, we issued an aggregate amount of $2.5 billion of senior unsecured notes. These notes are due as follows: $750.0 million due August 15, 2022, $700.0 million due August 15, 2024, $750.0 million due August 15, 2027 and $300.0 million due August 15, 2047 with stated fixed interest rates of 2.70%, 3.15%, 3.40% and 4.20%, respectively. Interest is payable semiannually in arrears in August and February of each year. The net proceeds received from the issuance of these notes were $2,479.3 million and were used to partially fund our acquisition of RB Foods.

In connection with our acquisition of RB Foods, we entered into a Term Loan Agreement (Term Loan) in August 2017. The Term Loan provides for three-year and five-year senior unsecured term loans, each for $750 million. The net proceeds received from the issuance of the Term Loan was $1,498.3 million. The three-year loan was payable at maturity. The five-year loan was payable in equal quarterly installments in an amount of 2.5% of the initial principal amount, with the remaining unpaid balance due at maturity. The three-year and five-year loans were each prepayable in whole or in part. In 2019 and 2018, we repaid the three-year loan in the amounts of $130.0 million and $370.0 million, respectively. Prior to payoff, the three-year loan bore interest at LIBOR plus 1.125%. In 2020, 2019 and 2018, we repaid $250.0 million, $306.3 million and $175.0 million, respectively, of the five-year loan. Prior to payoff, the five-year loan bore interest at LIBOR plus 1.25%. The interest rates were based on our credit rating.

We have available credit facilities with domestic and foreign banks for various purposes. Some of these lines are committed lines and others are uncommitted lines and could be withdrawn at various times. We have a five-year $1.0 billion revolving credit facility, which will expire in August 2022. The current pricing for the credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. This credit facility supports our commercial paper program and, after $845.8 million was used to support issued commercial paper, we have $154.2 million of capacity at November 30, 2020. In December 2020, we entered into a 364-day $1.0 billion revolving credit facility which will expire in December 2021. The current pricing for that credit facility, on a fully drawn basis, is LIBOR plus 1.25%. The pricing of the credit facility is based on a credit rating grid that contains a fully drawn maximum pricing of the credit facility equal to LIBOR plus 1.75%. The provisions of our revolving credit facilities restrict subsidiary indebtedness and require us to maintain certain minimum and maximum financial ratios for interest expense coverage and our leverage ratio. The applicable leverage ratio is reduced periodically. As of November 30, 2020, our capacity under the five-year $1.0 billion revolving credit facility was not affected by these covenants. We do not expect that these covenants would limit our access to our revolving credit facilities for the foreseeable future; however, the leverage ratio could restrict our ability to utilize this facility.

In addition, we have several uncommitted lines totaling $316.6 million, which have a total unused capacity at November 30, 2020 of $212.8 million. These lines, by their nature, can be withdrawn based on the lenders’ discretion. Committed credit facilities require a fee, and commitment fees were $1.3 million for both 2020 and 2019.

In 2018, we consolidated our Corporate staff and certain non-manufacturing U.S. employees into our new headquarters building in Hunt Valley, Maryland. The 15-year lease for that building requires monthly lease payments of approximately $0.9 million which began in April 2019. The $0.9 million monthly lease payment is subject to adjustment after an initial 60-month period and thereafter on an annual basis as specified in the lease agreement. Upon commencement of fit-out in the second quarter of 2018, we obtained access to the building, which resulted in the lease commencement date for accounting purposes. We have recognized this lease as a capital lease, with the leased asset of $116.1 million and $124.7 million included in property, plant and equipment, net, as of November 30, 2020 and 2019, respectively. As of November 30, 2020, the total lease obligation was $130.9 million, of which $7.1 million was included in the current portion of long-term debt and $123.8 million was included in long-term debt. As of November 30, 2019, the total lease obligation was $137.7 million, of which $6.8 million was included in the current portion of long-term debt and $130.9 million was included in long-term debt. During 2020, 2019 and 2018, respectively, we recognized amortization expense of $8.7 million, $8.7 million and $5.2 million related to the leased asset.

At November 30, 2020, we had guarantees outstanding of $0.7 million with terms of one year or less. As of both November 30, 2020 and 2019, we had outstanding letters of credit of $32.2 million. These letters of credit typically act as a guarantee of payment to certain third parties in accordance with specified terms and conditions. The unused portion of our letter of credit facility was $13.8 million at November 30, 2020.

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Leases

12 Months Ended

Nov. 30, 2020

Leases [Abstract]

Leases

LEASESOur lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements

include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants, with the exception of the non-cancellable synthetic lease discussed below.

The following presents the components of our lease expense for the year ended November 30, 2020 (in millions):

Operating lease cost	$	41.2
Finance lease cost:
Amortization of ROU assets	9.0
Interest on lease liabilities	4.5
Net lease cost	$	54.7
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Rental expense under operating leases (primarily buildings and equipment) was $48.1 million in 2019 and $58.5 million in 2018.

Supplemental balance sheet information related to leases as of November 30, 2020 were as follows (in millions):

Leases	Classification
Assets:
Operating lease ROU assets	Other long-term assets	$	136.8
Finance lease ROU assets	Property, plant and equipment, net	120.7
Total leased assets		$	257.5
Liabilities:
Current
Operating	Other accrued liabilities	$	37.3
Finance	Current portion of long-term debt	7.3
Non-current
Operating	Other long-term liabilities	103.5
Finance	Long-term debt	125.5
Total lease liabilities		$	273.6

Information regarding our lease terms and discount rates as of November 30, 2020 were as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	5.6	1.9	%
Finance leases	13.9	3.3	%

The future maturity of our lease liabilities as of November 30, 2020 were as follows (in millions):

	Operating leases		Finance leases		Total
2021	$	39.4	$	11.4	$	50.8
2022	29.2		11.4		40.6
2023	22.3		11.4		33.7
2024	15.3		11.5		26.8
2025	12.6		11.7		24.3
Thereafter	28.8		114.0		142.8
Total lease payments	147.6		171.4		319.0
Less: Imputed interest	6.8		38.6		45.4
Total lease liabilities	$	140.8	$	132.8	$	273.6

Supplemental cash flow and other information related to leases for the year ended November 30, 2020 were as follows (in millions):

Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows used for operating leases	$	41.5
Operating cash flows used for finance leases	4.5
Financing cash flows used for finance leases	6.9
ROU assets obtained in exchange for lease liabilities
Operating leases	$	36.6

During October 2020, we entered into a non-cancellable synthetic lease for a distribution facility with an estimated construction cost of $315 million. The lease will commence upon completion of construction of the facility, for which we are the construction agent, which is expected to be in the later part of fiscal 2022. The term of the lease is five years after commencement. The lease contains options to negotiate a renewal of the lease or to purchase or sell the facility at the end of the lease term. Upon lease commencement, the ROU asset and lease liability will be determined and recorded. The lease arrangement also contains a residual value guarantee of approximately 75% of the total construction cost. The lease also contains covenants that are consistent with our revolving credit agreements as disclosed in Note 6.

Leases

LEASESOur lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements

include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet.

ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date.

As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date.

Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants, with the exception of the non-cancellable synthetic lease discussed below.

The following presents the components of our lease expense for the year ended November 30, 2020 (in millions):

Operating lease cost	$	41.2
Finance lease cost:
Amortization of ROU assets	9.0
Interest on lease liabilities	4.5
Net lease cost	$	54.7
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Rental expense under operating leases (primarily buildings and equipment) was $48.1 million in 2019 and $58.5 million in 2018.

Supplemental balance sheet information related to leases as of November 30, 2020 were as follows (in millions):

Leases	Classification
Assets:
Operating lease ROU assets	Other long-term assets	$	136.8
Finance lease ROU assets	Property, plant and equipment, net	120.7
Total leased assets		$	257.5
Liabilities:
Current
Operating	Other accrued liabilities	$	37.3
Finance	Current portion of long-term debt	7.3
Non-current
Operating	Other long-term liabilities	103.5
Finance	Long-term debt	125.5
Total lease liabilities		$	273.6

Information regarding our lease terms and discount rates as of November 30, 2020 were as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	5.6	1.9	%
Finance leases	13.9	3.3	%

The future maturity of our lease liabilities as of November 30, 2020 were as follows (in millions):

	Operating leases		Finance leases		Total
2021	$	39.4	$	11.4	$	50.8
2022	29.2		11.4		40.6
2023	22.3		11.4		33.7
2024	15.3		11.5		26.8
2025	12.6		11.7		24.3
Thereafter	28.8		114.0		142.8
Total lease payments	147.6		171.4		319.0
Less: Imputed interest	6.8		38.6		45.4
Total lease liabilities	$	140.8	$	132.8	$	273.6

Supplemental cash flow and other information related to leases for the year ended November 30, 2020 were as follows (in millions):

Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows used for operating leases	$	41.5
Operating cash flows used for finance leases	4.5
Financing cash flows used for finance leases	6.9
ROU assets obtained in exchange for lease liabilities
Operating leases	$	36.6

During October 2020, we entered into a non-cancellable synthetic lease for a distribution facility with an estimated construction cost of $315 million. The lease will commence upon completion of construction of the facility, for which we are the construction agent, which is expected to be in the later part of fiscal 2022. The term of the lease is five years after commencement. The lease contains options to negotiate a renewal of the lease or to purchase or sell the facility at the end of the lease term. Upon lease commencement, the ROU asset and lease liability will be determined and recorded. The lease arrangement also contains a residual value guarantee of approximately 75% of the total construction cost. The lease also contains covenants that are consistent with our revolving credit agreements as disclosed in Note 6.

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Financial Instruments

12 Months Ended

Nov. 30, 2020

Derivative Instrument Detail [Abstract]

Financial Instruments

FINANCIAL INSTRUMENTSWe use derivative financial instruments to enhance our ability to manage risk, including foreign currency and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instrument and all derivatives are designated as hedges. We are not a party to master netting arrangements, and we do not offset the fair value of derivative contracts with the same counterparty in our financial statement disclosures. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines.

Foreign Currency

We are potentially exposed to foreign currency fluctuations affecting net investments in subsidiaries, transactions (both third-party and intercompany) and earnings denominated in foreign currencies. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contract and currency swaps with highly-rated financial institutions to reduce fluctuations in the long or short currency positions. Forward contracts are generally less than 18 months duration. Currency swap agreements are established in conjunction with the terms of the underlying debt issues.

At November 30, 2020, we had foreign currency exchange contracts to purchase or sell $383.8 million of foreign currencies as compared to $489.2 million at November 30, 2019. All of these contracts were designated as hedges of anticipated purchases denominated in a foreign currency or hedges of foreign currency denominated assets or liabilities. Hedge ineffectiveness was not material. All foreign currency exchange contracts outstanding at November 30, 2020 have durations of less than 18 months.

Contracts which are designated as hedges of anticipated purchases denominated in a foreign currency (generally purchases of raw materials in U.S. dollars by operating units outside the U.S.) are considered cash flow hedges. The gains and losses on these contracts are deferred in accumulated other comprehensive income until the hedged item is recognized in cost of goods sold, at which time the net amount deferred in accumulated other comprehensive income is also recognized in cost of goods sold. Gains and losses from contracts that are designated as hedges of assets, liabilities or firm commitments are recognized through income, offsetting the change in fair value of the hedged item.

We also enter into fair value foreign currency exchange contracts to manage exposure to currency fluctuations in certain intercompany loans between subsidiaries as well as currency exposure to third-party non-functional currency assets or liabilities. The notional value of these contracts was $212.3 million and $357.5 million at November 30, 2020 and 2019, respectively. Any gains or losses recorded based on both the change in fair value of these contracts and the change in the currency component of the underlying loans are recognized in our consolidated income statement as other income, net.

Beginning in the first quarter of 2019, we also utilized cross currency interest rate swap contracts that are designated as net investment hedges. As of November 30, 2020, we had cross currency interest rate swap contracts of (i) $250 million notional value to receive $250 million at three-month U.S. LIBOR plus 0.685% and pay £194.1 million at three-month GBP LIBOR plus 0.740% and (ii) £194.1 million notional value to receive £194.1 million at three-month GBP LIBOR plus 0.740% and pay €221.8 million at three-month Euro EURIBOR plus 0.808%. These cross-currency interest rate swap contracts expire in August 2027.

Interest Rates

We finance a portion of our operations with both fixed and variable rate debt instruments, primarily commercial paper, notes and bank loans. We utilize interest rate swap agreements to minimize worldwide financing costs and to achieve a desired mix of variable and fixed rate debt.

As of November 30, 2020 and 2019, we have outstanding interest rate swap contracts for a notional amount of $350.0 million. Those interest rate swap contracts include a $100 million notional value of interest rate swap contracts where we receive interest at 3.25% and pay a variable rate of interest based on three-month LIBOR plus 1.22%. These swaps, which expire in November 2025, are designated as fair value hedges of the changes in fair value of $100 million of the $250 million 3.25% medium-term notes due 2025. We also have $250 million notional interest rate swap contracts where we receive interest at 3.40% and pay a variable rate of interest based on three-month LIBOR plus 0.685%, which expire in August 2027, and are designated as fair value hedges of the changes in fair value of $250 million of the $750 million 3.40% term notes due 2027.

Any unrealized gain or loss on these swaps was offset by a corresponding increase or decrease in the value of the hedged debt. Hedge ineffectiveness was not material.

All derivatives are recognized at fair value in our balance sheet and recorded in either other current assets, or other long-term assets, other accrued liabilities or other long-term liabilities depending upon their nature and maturity.

The following tables disclose the notional amount and fair values of derivative instruments on our consolidated balance sheet:

As of November 30, 2020:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	43.1	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	27.5		1.4		Other accrued liabilities	356.3		8.2
Cross currency contracts	Other current assets/Other long-term assets	—		—		Other long-term liabilities	524.4		18.8
Total				$	44.5				$	27.0
As of November 30, 2019:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	20.9	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	293.1		3.3		Other accrued liabilities	196.1		3.6
Cross currency contracts	Other current assets/Other long-term assets	495.5		3.2		Other accrued liabilities	—		—
Total				$	27.4				$	3.6

The following tables disclose the impact of derivative instruments on other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our consolidated income statement for the years ended November 30, 2020, 2019 and 2018:

Fair value hedges (millions)
	Income statement location	Income (expense)
Derivative		2020		2019		2018
Interest rate contracts	Interest expense	$	5.2	$	—	$	(0.1)

	Income statement location	Gain (loss) recognized in income							Income statement location	Gain (loss) recognized in income
Derivative		2020		2019		2018		Hedged Item		2020		2019		2018
Foreign exchange contracts	Other income, net	$	(4.0)	$	0.2	$	(2.9)	Intercompany loans	Other income, net	$	3.0	$	(0.9)	$	2.7

Cash flow hedges (millions)
	Gain (loss) recognized in OCI						Income statement location	Gain (loss)   reclassified from AOCI
Derivative	2020		2019		2018			2020		2019		2018
Interest rate contracts	$	—	$	—	$	—	Interest expense	$	0.5	$	0.5	$	0.5
Foreign exchange contracts	1.9		(0.2)		2.6		Cost of goods sold	1.6		1.6		(3.3)
Total	$	1.9	$	(0.2)	$	2.6		$	2.1	$	2.1	$	(2.8)

The amount of gain or loss recognized in income on the ineffective portion of derivative instruments is not material. The net amount of accumulated other comprehensive income expected to be reclassified into income related to these contracts in the next twelve months is a $0.7 million increase to earnings.

Net investment hedges (millions)
	Gain (loss) recognized in OCI				Income statement location	Gain (loss) excluded from the assessment of hedge effectiveness
Derivative	2020		2019			2020		2019
Cross currency contracts	$	(20.8)	$	1.1	Interest expense	$	3.1	$	5.4

For all net investment hedges, no amounts have been reclassified out of other comprehensive income (loss). The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes.

Fair Value of Financial Instruments

The carrying amount and fair value of financial instruments as of November 30 were as follows:

	2020				2019
(millions)	Carrying amount		Fair value		Carrying amount		Fair value
Long-term investments	$	129.9	$	129.9	$	124.4	$	124.4
Long-term debt (including current portion)	4,017.7		4,357.1		3,723.5		3,859.0
Level 1 valuation techniques			4,161.3				3,437.5
Level 2 valuation techniques			195.8				421.5
Derivatives related to:
Interest rates (assets)	43.1		43.1		20.9		20.9
Foreign currency (assets)	1.4		1.4		3.3		3.3
Foreign currency (liabilities)	8.2		8.2		3.6		3.6
Cross currency (assets)	—		—		3.2		3.2
Cross currency (liabilities)	18.8		18.8		—		—

Because of their short-term nature, the amounts reported in the balance sheet for cash and cash equivalents, receivables, short-term borrowings and trade accounts payable approximate fair value. The fair value for Level 2 long-term debt is determined by using quoted prices for similar debt instruments. Investments in affiliates are not readily marketable, and it is not practicable to estimate their fair value. Long-term investments are comprised of fixed income and equity securities held on behalf of employees in certain employee benefit plans and are stated at fair value on the balance sheet.

Concentrations of Credit Risk

We are potentially exposed to concentrations of credit risk with trade accounts receivable and financial instruments. The customers of our consumer segment are predominantly food retailers and food wholesalers. Consolidations in these industries have created larger customers. In addition, competition has increased with the growth in alternative channels including mass merchandisers, dollar stores, warehouse clubs, discount chains and e-commerce. This has caused some customers to be less profitable and increased our exposure to credit risk. We generally have a large and diverse customer base which limits our concentration of credit risk. At November 30, 2020, we did not have amounts due from any single customer that exceed 10% of consolidated trade accounts receivable. Current credit markets are highly volatile and some of our customers and counterparties are highly leveraged. We continue to closely monitor the credit worthiness of our customers and counterparties and generally do not require collateral. We believe that the allowance for doubtful accounts properly recognized trade receivables at realizable value. We consider nonperformance credit risk for other financial instruments to be insignificant.

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Fair Value Measurements

12 Months Ended

Nov. 30, 2020

Fair Value Disclosures [Abstract]

Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block]

FAIR VALUE MEASUREMENTS

Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow) and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels:

•Level 1:   Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2:   Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active.

•Level 3:   Unobservable inputs that reflect management’s own assumptions.

Our population of assets and liabilities subject to fair value measurements on a recurring basis are as follows:

			Fair value measurements using fair value hierarchy as of  November 30, 2020
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	423.6	$	423.6	$	—
Insurance contracts	126.0		—		126.0
Bonds and other long-term investments	3.9		3.9		—
Interest rate derivatives	43.1		—		43.1
Foreign currency derivatives	1.4		—		1.4
Total	$	598.0	$	427.5	$	170.5
Liabilities:
Foreign currency derivatives	8.2		—		8.2
Cross currency contracts	18.8		—		18.8
Total	$	27.0	$	—	$	27.0

			Fair value measurements using fair value hierarchy as of  November 30, 2019
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	155.4	$	155.4	$	—
Insurance contracts	121.7		—		121.7
Bonds and other long-term investments	2.7		2.7		—
Interest rate derivatives	20.9		—		20.9
Foreign currency derivatives	3.3		—		3.3
Cross currency contracts	3.2		—		3.2
Total	$	307.2	$	158.1	$	149.1
Liabilities:
Foreign currency derivatives	3.6		—		3.6
Total	$	3.6	$	—	$	3.6

The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate and foreign currency derivatives are based on values for similar instruments using models with market-based inputs.

At November 30, 2020 and 2019, we had no financial assets or liabilities that were subject to a level 3 fair value measurement.

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Accumulated Other Comprehensive Income

12 Months Ended

Nov. 30, 2020

Other Comprehensive Income (Loss), Net of Tax [Abstract]

COMPREHENSIVE INCOME

.  ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table sets forth the components of accumulated other comprehensive loss, net of tax where applicable, as of November 30 (in millions):

	2020		2019
Accumulated other comprehensive loss, net of tax where applicable
Foreign currency translation adjustment (1)	$	(174.0)	$	(266.5)
Unrealized loss on foreign currency exchange contracts	(0.4)		—
Unamortized value of settled interest rate swaps	(0.1)		0.3
Pension and other postretirement costs	(296.3)		(234.0)
	$	(470.8)	$	(500.2)

(1)During the year ended November 30, 2020, the foreign currency translation adjustment of accumulated other comprehensive loss decreased by $92.5 million, including the impact of a $20.8 million increase associated with net investment hedges. During the year ended November 30, 2019, the foreign currency translation adjustment of accumulated other comprehensive loss increased by $24.9 million, of which $0.9 million was associated with net investment hedges. These net investment hedges are more fully described in Note 8.

The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the years ended November 30:

(millions)							Affected line items in the consolidated income statement
Accumulated other comprehensive income (loss) components	2020		2019		2018
(Gains)/losses on cash flow hedges:
Interest rate derivatives	$	(0.5)	$	(0.5)	$	(0.5)	Interest expense
Foreign exchange contracts	(1.6)		(1.6)		3.3		Cost of goods sold
Total before taxes	(2.1)		(2.1)		2.8
Tax effect	0.5		0.4		(0.6)		Income taxes
Net, after tax	$	(1.6)	$	(1.7)	$	2.2
Amortization of pension and postretirement benefit adjustments:
Amortization of prior service (credits) costs (1)	$	(4.0)	$	(8.0)	$	(8.5)	Other income, net
Amortization of net actuarial losses (1)	11.0		2.6		12.6		Other income, net
Total before taxes	7.0		(5.4)		4.1
Tax effect	(1.6)		1.2		(1.0)		Income taxes
Net, after tax	$	5.4	$	(4.2)	$	3.1

(1) This accumulated other comprehensive income (loss) component is included in the computation of total pension expense and total other postretirement expense (refer to note 11 for additional details).

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Employee Benefit And Retirement Plans

12 Months Ended

Nov. 30, 2020

Retirement Benefits, Description [Abstract]

Employee Benefit And Retirement Plans

EMPLOYEE BENEFIT AND RETIREMENT PLANS

We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees.

During fiscal year 2017, we made significant changes to certain of our employee benefit plans and retirements plans that froze the accrual of certain defined benefit pension plans in the U.S. and the United Kingdom. Also, on December 1, 2017, our Management Committee approved the freezing of benefits under our pension plans in Canada. The effective date of this freeze was November 30, 2019. Although those plans have been frozen, employees who are participants in the plans retained benefits accumulated up to the date of the freeze, based on credited service and eligible earnings, in accordance with the terms of the plans.

As a result of the change to our pension plans in Canada, we remeasured pension assets and benefit obligations as of the date of the approval indicated above and, in fiscal year 2018, we reduced the Canadian plan benefit obligations by $17.5 million. These remeasurements resulted in a non-cash, pre-tax net actuarial gain of $17.5 million in fiscal year 2018. These net actuarial gains consist principally of a curtailment gain of $18.0 million, which is included in our consolidated statement of comprehensive income for 2018 as a component of "Other comprehensive income (loss)" on the line entitled "Unrealized components of pension plans". Deferred taxes associated with this actuarial gain, together with other unrealized components of pension plans recognized during 2018, are also included in that statement as a component of "Other comprehensive income (loss)".

Included in our consolidated balance sheet as of November 30, 2020 on the line entitled "Accumulated other comprehensive loss" was $383.4 million ($296.3 million net of tax) related to net unrecognized actuarial losses that have not yet been recognized in net periodic pension or postretirement benefit cost. We expect to recognize $13.5 million ($9.7 million net of tax) in net periodic pension and postretirement benefit costs during 2021 related to the amortization of actuarial losses of $13.2 million and the amortization of prior service cost of $0.3 million.

Defined Benefit Pension Plans

The significant assumptions used to determine benefit obligations are as follows as of November 30:

	United States				International
	2020		2019		2020		2019
Discount rate—funded plans	2.8	%	3.4	%	1.9	%	2.2	%
Discount rate—unfunded plan	2.7	%	3.3	%	—		—
Salary scale	—		—		2.9	%	2.9	%

The significant assumptions used to determine pension expense for the years ended November 30 are as follows:

	United States						International
	2020		2019		2018		2020		2019		2018
Discount rate—funded plans	3.4	%	4.7	%	4.0	%	2.2	%	3.3	%	2.9	%
Discount rate—unfunded plan	3.3	%	4.6	%	3.9	%	—		—		—
Salary scale	—	%	—	%	3.8	%	2.9	%	3.4	%	3.5	%
Expected return on plan assets	6.8	%	7.0	%	7.3	%	4.9	%	5.5	%	5.6	%

Annually, we undertake a process, with the assistance of our external investment consultants, to evaluate the appropriate projected rates of return to use for our pension plans’ assumptions. We engage our investment consultants' research teams to develop capital market assumptions for each asset category in our plans to project investment returns into the future. The specific methods used to develop expected return assumptions vary by asset category. We adjust the outcomes for the fact that plan assets are invested with actively managed funds and subject to tactical asset reallocation.

Our pension expense for the years ended November 30 was as follows:

	United States						International
(millions)	2020		2019		2018		2020		2019		2018
Service cost	$	3.2	$	2.1	$	17.0	$	1.3	$	3.6	$	4.3
Interest costs	29.3		34.4		31.6		7.5		9.5		9.2
Expected return on plan assets	(40.6)		(42.5)		(43.4)		(15.3)		(16.4)		(16.6)
Amortization of prior service costs	0.5		0.5		—		0.1		0.2		0.1
Amortization of net actuarial loss	7.8		2.3		9.9		2.0		1.2		2.8
Settlement/curtailment loss	—		—		—		1.3		—		0.5
	$	0.2	$	(3.2)	$	15.1	$	(3.1)	$	(1.9)	$	0.3

A rollforward of the benefit obligation, fair value of plan assets and a reconciliation of the pension plans’ funded status as of November 30, the measurement date, follows:

	United States				International
(millions)	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	884.8	$	752.6	$	345.6	$	292.9
Service cost	3.2		2.1		1.3		3.6
Interest costs	29.3		34.4		7.5		9.5
Employee contributions	—		—		—		0.6
Actuarial loss	82.1		134.6		19.1		51.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Expenses paid	—		—		(0.2)		(0.3)
Foreign currency impact	—		—		12.5		2.2
Benefit obligation at end of year	$	958.0	$	884.8	$	371.7	$	345.6
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	671.9	$	640.4	$	340.9	$	306.5
Actual return on plan assets	47.3		62.2		28.6		42.4
Employer contributions	10.4		8.2		1.5		3.2
Employee contributions	—		—		—		0.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Foreign currency impact	—		—		11.8		2.7
Fair value of plan assets at end of year	$	688.2	$	671.9	$	368.7	$	340.9
Funded status	$	(269.8)	$	(212.9)	$	(3.0)	$	(4.7)
Pension plans in which accumulated benefit obligation exceeded plan assets
Projected benefit obligation	$	958.0	$	884.8	$	110.4	$	103.9
Accumulated benefit obligation	945.1		874.8		106.5		100.4
Fair value of plan assets	688.2		671.9		87.7		83.6

Included in the U.S. in the preceding table is a benefit obligation of $110.5 million and $105.4 million for 2020 and 2019, respectively, related to our Supplemental Executive Retirement Plan (SERP). The assets related to this plan,

which totaled $86.4 million and $85.5 million as of November 30, 2020 and 2019, respectively, are held in a rabbi trust and accordingly have not been included in the preceding table.

Amounts recorded in the balance sheet for all defined benefit pension plans as of November 30 consist of the following:

	United States				International
(millions)	2020		2019		2020		2019
Non-current pension asset	$	—	$	—	$	19.6	$	15.6
Accrued pension liability	269.8		212.9		22.6		20.3
Deferred income tax assets	74.0		58.5		14.3		13.3
Accumulated other comprehensive loss	235.5		183.9		63.7		60.1

The accumulated benefit obligation is the present value of pension benefits (whether vested or unvested) attributed to employee service rendered before the measurement date and based on employee service and compensation prior to that date. The accumulated benefit obligation differs from the projected benefit obligation in that it includes no assumption about future compensation or service levels. The accumulated benefit obligation for the U.S. pension plans was $945.1 million and $874.8 million as of November 30, 2020 and 2019, respectively. The accumulated benefit obligation for the international pension plans was $367.9 million and $342.2 million as of November 30, 2020 and 2019, respectively.

The investment objectives of the defined benefit pension plans are to provide assets to meet the current and future obligations of the plans at a reasonable cost to us. The goal is to optimize the long-term return across the portfolio of investments at a moderate level of risk. Higher-returning assets include mutual, co-mingled and other funds comprised of equity securities, utilizing both active and passive investment styles. These more volatile assets are balanced with less volatile assets, primarily mutual, co-mingled and other funds comprised of fixed income securities. Professional investment firms are engaged to provide advice on the selection and monitoring of investment funds, and to provide advice on the allocation of plan assets across the various fund managers. This advice is based in part on the duration of each plan’s liability. The investment return performances are evaluated quarterly against specific benchmark indices and against a peer group of funds of the same asset classification.

The allocations of U.S. pension plan assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	63.2	%	63.3	%	59.0	%
Fixed income securities	22.0	%	21.5	%	23.2	%
Other	14.8	%	15.2	%	17.8	%
Total	100.0	%	100.0	%	100.0	%

The allocations of the international pension plans’ assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	50.9	%	50.4	%	53.0	%
Fixed income securities	48.3	%	48.9	%	47.0	%
Other	0.8	%	0.7	%	—	%
Total	100.0	%	100.0	%	100.0	%

The following tables set forth by level, within the fair value hierarchy as described in note 9, pension plan assets at their fair value as of November 30 for the United States and international plans:

As of November 30, 2020	United States
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	28.1	$	28.1	$	—
Equity securities:
U.S. equity securities(a)	271.1		138.2		132.9
International equity securities(b)	159.2		147.6		11.6
Fixed income securities:
U.S. government/corporate bonds(c)	57.1		54.9		2.2
High yield bonds(d)	37.3		—		37.3
International/government/corporate bonds(e)	29.1		29.1		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	24.5		20.6		3.9
Natural resources (h)	9.7		—		9.7
Total	$	617.2	$	418.5	$	198.7
Investments measured at net asset value(i)
Hedge funds(j)	39.5
Private equity funds(k)	4.8
Private debt funds(l)	26.7
Total investments	$	688.2

As of November 30, 2020	International
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	3.1	$	3.1	$	—
International equity securities(b)	187.6		—		187.6
Fixed income securities:
International/government/corporate bonds(e)	155.4		—		155.4
Insurance contracts(f)	22.6		—		22.6
Total investments	$	368.7	$	3.1	$	365.6

As of November 30, 2019	United States
(millions)	Total  fair   value		Level 1		Level 2
Cash and cash equivalents	$	15.3	$	15.3	$	—
Equity securities:
U.S. equity securities(a)	276.5		148.5		128.0
International equity securities(b)	145.5		134.2		11.3
Fixed income securities:
U.S./government/ corporate bonds(c)	51.2		49.1		2.1
High yield bonds(d)	40.1		—		40.1
International/government/ corporate bonds(e)	26.8		26.8		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	25.9		22.0		3.9
Natural resources (h)	12.0		—		12.0
Total	$	594.4	$	395.9	$	198.5
Investments measured at net asset value(i)
Hedge funds(j)	49.3
Private equity funds(k)	3.2
Private debt funds(l)	25.0
Total investments	$	671.9

As of November 30, 2019			International
(millions)	Total  fair    value		Level 1		Level 2
Cash and cash equivalents	$	2.5	$	2.5	$	—
International equity securities(b)	171.6		—		171.6
Fixed income securities:
International/government/corporate bonds(e)	144.7		—		144.7
Insurance contracts(f)	22.1		—		22.1
Total investments	$	340.9	$	2.5	$	338.4

(a)This category comprises equity funds and collective equity trust funds that most closely track the S&P index and other equity indices.

(b)This category comprises international equity funds with varying benchmark indices.

(c)This category comprises funds consisting of U.S. government and U.S. corporate bonds and other fixed income securities. An appropriate benchmark is the Barclays Capital Aggregate Bond Index.

(d)This category comprises funds consisting of real estate related debt securities with an appropriate benchmark of the Barclays Investment Grade CMBS Index.

(e)This category comprises funds consisting of international government/corporate bonds and other fixed income securities with varying benchmark indices.

(f)This category comprises insurance contracts, the majority of which have a guaranteed investment return.

(g)This category comprises funds investing in real estate investment trusts (REIT). An appropriate benchmark is the MSCI U.S. REIT Index.

(h)This category comprises funds investing in natural resources. An appropriate benchmark is the Alerian master limited partnership (MLP) Index.

(i)Certain investments that are valued using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These are included to permit reconciliation of the fair value hierarchy to the aggregate pension plan assets.

(j)This category comprises hedge funds investing in strategies represented in various HFRI Fund Indices. The net asset value is generally based on the valuation of the underlying investment. Limitations exist on the timing from notice by the plan of its intent to redeem and actual redemptions of these funds and generally range from a minimum of one month to several months.

(k)This category comprises private equity, venture capital and limited partnerships. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

(l)This category comprises limited partnerships funds investing in senior loans, mezzanine and distressed debt. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

For the plans’ hedge funds, private equity funds and private debt funds, we engage an independent advisor to compare the funds’ returns to other funds with similar strategies. Each fund is required to have an annual audit by

an independent accountant, which is provided to the independent advisor. This provides a basis of comparability relative to similar assets.

Equity securities in the U.S. pension plans included McCormick stock with a fair value of $50.6 million (0.6 million shares and 7.4% of total U.S. pension plan assets) and $64.4 million (0.8 million shares and 9.6% of total U.S. pension plan assets) at November 30, 2020 and 2019, respectively. Dividends paid on these shares were $0.9 million in both 2020 and 2019.

Pension benefit payments in our most significant plans are made from assets of the pension plans. It is anticipated that future benefit payments for the U.S. and international plans for the next 10 fiscal years will be as follows:

(millions)	United States		International
2021	$	43.7	$	12.0
2022	43.7		11.7
2023	44.7		12.8
2024	47.5		12.4
2025	48.7		12.8
2026-2030	252.8		66.0

U.S. Defined Contribution Retirement Plans

Effective December 1, 2018 for the U.S. defined contribution retirement plan, we match 100% of a participant’s contribution up to the first 3% of the participant’s salary, and 66.7% of the next 3% of the participant’s salary. In addition, we make contributions of 3% of the participant's salary for all U.S. employees who are employed on December 31 of each year. Prior to December 1, 2018 for the U.S. defined contribution retirement plan, we matched 100% of a participant’s contribution up to the first 3% of the participant’s salary, and 50% of the next 2% of the participant’s salary. In addition, we made contributions of 3% of the participant's salary for U.S. employees not covered by the defined benefit plan. Some of our smaller U.S. subsidiaries sponsor separate 401(k) retirement plans. We also sponsor a non-qualified defined contribution retirement plan. Our contributions charged to expense under all U.S. defined contribution retirement plans were $30.8 million, $28.2 million and $15.5 million in 2020, 2019 and 2018, respectively.

At the participant’s election, 401(k) retirement plans held 2.9 million shares of McCormick stock, with a fair value of $267.3 million, at November 30, 2020. Dividends paid on the shares held in the 401(k) retirement plans in 2020 and 2019 were $3.8 million and $3.9 million, respectively, in each year.

Postretirement Benefits Other Than Pensions

We currently provide postretirement medical and life insurance benefits to certain U.S. employees who were covered under the active employees’ plan and retire after age 55 with at least five years of service. The subsidy provided under these plans is based primarily on age at date of retirement. These benefits are not pre-funded but paid as incurred. Employees hired after December 31, 2008 are not eligible for a company subsidy. They are eligible for coverage on an access-only basis.

Our other postretirement benefit (income) expense for the years ended November 30 follows:

(millions)	2020		2019		2018
Service cost	$	1.9	$	1.8	$	2.0
Interest costs	2.0		2.7		2.4
Amortization of prior service credits	(4.6)		(8.7)		(8.6)
Amortization of actuarial gains	(0.1)		(0.9)		(0.1)
Postretirement benefit (income) expense	$	(0.8)	$	(5.1)	$	(4.3)

Rollforwards of the benefit obligation, fair value of plan assets and a reconciliation of the plans’ funded status at November 30, the measurement date, follow:

(millions)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	67.2	$	62.9
Service cost	1.9		1.8
Interest costs	2.0		2.7
Participant contributions	2.1		0.3
Plan amendments	—		(0.4)
Actuarial loss	3.9		4.1
Benefits paid	(6.4)		(4.2)
Benefit obligation at end of year	$	70.7	$	67.2
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	—	$	—
Employer contributions	4.3		3.9
Participant contributions	2.1		0.3
Benefits paid	(6.4)		(4.2)
Fair value of plan assets at end of year	$	—	$	—
Other postretirement benefit liability	$	70.7	$	67.2

Estimated future benefit payments (net of employee contributions) for the next 10 fiscal years are as follows:

(millions)	Retiree medical		Retiree life insurance		Total
2021	$	3.6	$	1.5	$	5.1
2022	3.6		1.5		5.1
2023	3.7		1.4		5.1
2024	3.7		1.4		5.1
2025	3.7		1.4		5.1
2026-2030	17.5		6.5		24.0

The assumed discount rate in determining the benefit obligation was 2.3% and 3.1% for 2020 and 2019, respectively.

For 2020, the assumed annual rate of increase in the cost of covered health care benefits is 6.8% (6.5% last year). It is assumed to decrease gradually to 4.5% in the year 2032 (4.5% in 2030 last year) and remain at that level thereafter. A one percentage point increase or decrease in the assumed health care cost trend rate would have had an immaterial effect on the benefit obligation and the total of service and interest cost components for 2020.

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Stock-Based Compensation

12 Months Ended

Nov. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

We have four types of stock-based compensation awards: restricted stock units (RSUs), stock options, company stock awarded as part of our long-term performance plan (LTPP), and beginning in 2020, price-vested stock options. Total stock-based compensation expense for 2020, 2019 and 2018 was $46.0 million, $37.2 million and $25.6 million, respectively. Total unrecognized stock-based compensation expense related to our RSUs and stock options at November 30, 2020 was $23.2 million and the weighted-average period over which this will be recognized is 1.3 years. Total unrecognized stock-based compensation expense related to our price-vested stock options at November 30, 2020 was $23.3 million and the weighted-average period over which this will be recognized is 3.0 years. Total unrecognized stock-based compensation expense related to our LTPP is variable in nature and is dependent on the company's execution against established performance metrics under performance cycles related to this plan. As of November 30, 2020, we have 6.6 million shares remaining available for future issuance under our RSUs, stock option and LTPP award programs.

For all awards, forfeiture rates are considered in the calculation of compensation expense.

The following summarizes the key terms and the methods of valuation and expense recognition for each of our stock-based compensation awards.

RSUs

RSUs are valued at the market price of the underlying stock, discounted by foregone dividends, on the date of grant. Substantially all of the RSUs granted vest over a three-year term or, if earlier, upon the retirement eligibility

date of the holder.

A summary of our RSU activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	762	$	57.95	846	$	51.53	534	$	43.24
Granted	296	67.03		258	71.62		556	56.36
Vested	(325)	57.56		(318)	52.08		(226)	44.08
Forfeited	(19)	62.96		(24)	56.78		(18)	48.27
Outstanding—end of year	714	$	61.74	762	$	57.95	846	$	51.53

Stock Options (Other than Price-Vested Stock Options)

Stock options are granted with an exercise price equal to the market price of the stock on the date of grant. Substantially all of the options, with the exception of price-vested options detailed below, vest ratably over a three-year period or, if earlier, upon the retirement-eligibility dates of the holders and are exercisable over a 10-year period. Upon exercise of the option, shares are issued from our authorized and unissued shares.

The fair value of the options is estimated with a lattice option pricing model which uses the assumptions in the following table. We believe the lattice model provides an appropriate estimate of fair value of our options as it allows for a range of possible outcomes over an option term and can be adjusted for changes in certain assumptions over time. Expected volatilities are based primarily on the historical performance of our stock. We also use historical data to estimate the timing and amount of option exercises and forfeitures within the valuation model. The expected term of the options is an output of the option pricing model and estimates the period of time that options are expected to remain unexercised. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant. Compensation expense is calculated based on the fair value of the options on the date of grant.

The per share weighted-average fair value for all options granted was $13.27, $13.76 and $10.15 in 2020, 2019 and 2018, respectively. These fair values were computed using the following range of assumptions for the years ended November 30:

	2020		2019		2018
Risk-free interest rates	0.0 - 0.6%		2.2 - 2.5%		1.7 - 2.9%
Dividend yield	1.8	%	1.5	%	2.0	%
Expected volatility	22.8	%	17.4%		18.4%
Expected lives	7.9 years		7.5 years		7.6 years

Under our stock option plans, we may issue shares on a net basis at the request of the option holder. This occurs by netting the option cost in shares from the shares exercised.

A summary of our stock option activity for the years ended November 30 follows:

(shares in millions)	2020			2019			2018
	Shares	Weighted-     average     exercise     price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Beginning of year	5.2	$	48.09	7.2	$	41.30	9.6	$	35.96
Granted	0.7	69.31		0.6	73.70		0.8	52.98
Exercised	(1.4)	41.01		(2.6)	35.54		(3.2)	27.64
Outstanding—end of year	4.5	53.56		5.2	48.09		7.2	41.30
Exercisable—end of year	3.2	$	47.76	3.8	$	43.31	5.6	$	38.27

As of November 30, 2020, the intrinsic value (the difference between the exercise price and the market price) for all options currently outstanding was $178.7 million and for options currently exercisable was $146.0 million. At November 30, 2020, the differences between options outstanding and options expected to vest and their related weighted-average exercise prices, aggregate intrinsic values and weighted-average remaining lives were not material. The total intrinsic value of all options exercised during the years ended November 30, 2020, 2019 and 2018 was $68.4 million, $111.0 million and $108.0 million, respectively. A summary of our stock options outstanding and exercisable at November 30, 2020 follows:

(shares in millions)	Options outstanding				Options exercisable
Range of exercise price	Shares	Weighted- average remaining life (yrs.)	Weighted- average exercise price		Shares	Weighted- average remaining life (yrs.)	Weighted-   average   exercise   price
$23.00 - $37.50	0.5	2.8	$	33.99	0.5	2.8	$	33.99
$37.51 - $56.00	2.7	5.9	48.36		2.5	5.8	47.97
$56.01 - $74.50	1.3	8.9	71.27		0.2	8.3	73.64
	4.5	6.5	$	53.56	3.2	5.6	$	47.76

Price-Vested Stock Options

In November 2020, we granted approximately 2,482,000 price-vested stock options to certain employees. The price-vested stock options were granted with an exercise price of $93.49 which was equal to the market price of our stock on the date of grant. The price-vested options are not exercisable until a three year service condition is achieved, and will become exercisable after that time period only if the average closing price of our stock price equals or exceeds thresholds of 60%, 80% or 100% appreciation from the exercise price for 30 consecutive trading days within a five-year period from the date of grant. If the options become exercisable, they are exercisable up to 10 years from the date of grant. The options granted were divided equally between the three appreciation thresholds. Employees who are retirement eligible vest on a pro-rata basis over a three-year period if the market condition is met in the five-year period from the date of grant. If the market conditions are not met in the five-year period from the date of grant, the options do not become exercisable and will be forfeited.

The fair value of the price-vested options was estimated using a lattice model. The per share weighted-average fair value for the price-vested stock options granted was $11.88, $9.26, and $7.05, for the 60%, 80% and 100% appreciation thresholds, respectively. These fair values were computed using the following range of assumptions:

Risk-free interest rates	0.85	%
Dividend yield	1.5	%
Expected volatility	21.2	%
Expected lives	5.6 - 6.2 years

LTPP

Our LTPP grants in 2018 will deliver awards in a combination of cash and company stock. The stock compensation portion of the LTPP grants in 2018 awards shares of company stock if certain company performance objectives are met at the end of a three-year period. LTPP awards granted in 2020 and 2019 will be delivered entirely in company stock, with the target award calculated using a combination of a market-based total shareholder return and performance-based components. These awards are valued based on the fair value of the underlying stock on the date of grant.

A summary of the LTPP award activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	392	$	57.98	436	$	41.78	440	$	42.16
Granted	130	86.14		136	75.26		172	50.95
Vested	(88)	44.98		(114)	43.20		(120)	37.01
Performance adjustment	(44)	50.95		(66)	44.98		(52)	43.20
Forfeited	(8)	65.68		—	—		(4)	48.71
Outstanding—end of year	382	$	71.20	392	$	57.98	436	$	41.78

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Income Taxes

12 Months Ended

Nov. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The provision for income taxes for the years ended November 30 consists of the following:

(millions)	2020		2019		2018
Income taxes
Current
Federal	$	98.3	$	52.3	$	92.9
State	14.8		10.7		11.0
International	73.0		73.5		78.7
	186.1		136.5		182.6
Deferred
Federal	4.6		26.4		(340.3)
State	0.5		3.6		1.5
International	(16.3)		(9.1)		(1.1)
	(11.2)		20.9		(339.9)
Total income tax expense (benefit)	$	174.9	$	157.4	$	(157.3)

In December 2017, President Trump signed into law Pub. L. 115-97, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (this legislation is referred to herein as the U.S. Tax Act). The U.S. Tax Act provides for significant changes in the U.S. Internal Revenue Code of 1986, as amended. Certain provisions of the U.S. Tax Act were effective during our fiscal year ended November 30, 2018 with all provisions of the U.S. Tax Act effective as of the beginning of our fiscal year beginning December 1, 2018. The U.S. Tax Act contains provisions with separate effective dates but is generally effective for taxable years beginning after December 31, 2017. The U.S. Tax Act creates a new requirement that certain income earned by foreign subsidiaries, known as Global Intangible Low-Taxed Income (GILTI), must be included in the gross income of the subsidiary’s U.S. shareholder. This provision of the U.S. Tax Act was effective for us for our fiscal year beginning December 1, 2018.

Beginning on January 1, 2018, the U.S. Tax Act lowered the U.S. corporate income tax rate from 35% to 21% on our U.S. earnings from that date and beyond. The revaluation of our U.S. deferred tax assets and liabilities to the 21% corporate tax rate has reduced our net U.S. deferred income tax liability by $380.0 million and is reflected as a reduction in our income tax expense in our results for the year ended November 30, 2018. The U.S. Tax Act imposed a one-time transition tax on post-1986 earnings of non-U.S. affiliates that have not been repatriated for purposes of U.S. federal income tax, with those earnings taxed at rates of 15.5% for earnings reflected by cash and cash equivalent items and 8% for other assets. This transition tax, based on our fiscal 2018 tax return filed in fiscal 2019, was $76.0 million (we estimated the transition tax to be $75.3 million in fiscal 2018). The cash tax effects of the transition tax, reduced by the utilization of $21.1 million of current and carried forward excess foreign tax credits, as well as other items of $7.7 million, resulted in a net tax liability of $47.2 million, which can be remitted in installments over an eight-year period as we are doing. As of November 30, 2020, our remaining unpaid transition tax is $39.7 million. In addition to the estimated transition tax of $75.3 million recognized in 2018, we incurred additional foreign withholding taxes, net of a U.S. foreign tax credit, of $7.9 million and a $4.7 million reduction in our fiscal 2018 income taxes as a consequence of the transition tax, both of which we recognized as a component of our income tax expense for the year ended November 30, 2018, for a net transition tax impact recognized in 2018 of $78.5 million.

The components of income from consolidated operations before income taxes for the years ended November 30 follow:

(millions)	2020		2019		2018
Pretax income
United States	$	624.3	$	569.0	$	492.2
International	257.2		250.2		249.1
	$	881.5	$	819.2	$	741.3

A reconciliation of the U.S. federal statutory rate with the effective tax rate for the years ended November 30 follows:

	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	22.2	%
State income taxes, net of federal benefits	1.5		1.6		1.5
International tax at different effective rates	1.3		1.6		0.4
U.S. tax on remitted and unremitted earnings	0.8		0.5		0.6
Stock compensation expense	(1.5)		(2.8)		(2.9)
U.S. manufacturing deduction	—		—		(0.8)
Changes in prior year tax contingencies	(0.3)		(0.3)		(0.8)
Non-recurring benefit of U.S. Tax Act	—		(0.2)		(40.7)
Valuation allowance release	(1.4)		—		—
Intra-entity asset transfer	(1.1)		(1.8)		—
Other, net	(0.5)		(0.4)		(0.7)
Total	19.8	%	19.2	%	(21.2)	%

Deferred tax assets and liabilities are comprised of the following as of November 30:

(millions)	2020		2019
Deferred tax assets
Employee benefit liabilities	$	121.9	$	103.3
Other accrued liabilities	40.3		32.3
Inventory	10.6		7.5
Tax loss and credit carryforwards	59.7		46.8
Operating lease liabilities	33.0		—
Other	47.9		48.1
Valuation allowance	(31.5)		(32.4)
	281.9		205.6
Deferred tax liabilities
Depreciation	89.1		82.6
Intangible assets	815.1		770.5
Lease ROU assets	32.2		—
Other	4.5		5.5
	940.9		858.6
Net deferred tax liability	$	(659.0)	$	(653.0)

At November 30, 2020, we have tax loss carryforwards of $214.4 million. Of these carryforwards, $0.1 million expire in 2021, $9.6 million from 2022 through 2023, $77.9 million from 2024 through 2037 and $126.8 million may be carried forward indefinitely. In addition, one of our non-U.S. subsidiaries has a capital loss carryforward of $5.0 million which may be carried forward indefinitely. At November 30, 2020, we also have U.S. foreign tax credit carryforwards of $7.3 million which expire in 2030.

A valuation allowance has been provided to cover deferred tax assets that are not more likely than not realizable. The net decrease of $0.9 million in the valuation allowance from November 30, 2019 to November 30, 2020 resulted primarily from the net reversal of valuation allowances for net operating losses, capital losses and other tax attributes in certain non-US jurisdictions.

Prior to the U.S. Tax Act, we asserted that substantially all of the undistributed earnings of our international subsidiaries and joint ventures were considered indefinitely invested and accordingly, no deferred taxes were provided. Pursuant to the provisions of the U.S. Tax Act, these earnings were subjected to a one-time transition tax in 2018. The transition tax was recognized in 2018 and was based on cumulative earnings prior to the U.S. Tax Act. Our intent is to continue to reinvest undistributed earnings of our international subsidiaries and joint ventures indefinitely. As of November 30, 2020, we have $1.3 billion of earnings that are considered indefinitely reinvested. While federal income tax expense has been recognized as a result of the U.S. Tax Act, we have not provided any additional deferred taxes with respect to items such as foreign withholding taxes, state income tax or foreign exchange gain or loss. It is not practicable for us to determine the amount of unrecognized tax expense on these reinvested international earnings.

The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended November 30:

(millions)	2020		2019		2018
Balance at beginning of year	$	32.0	$	27.9	$	39.1
Additions for current year tax positions	7.8		6.6		6.5
Additions for prior year tax positions	2.5		0.6		0.3
Reductions for prior year tax positions	—		(0.3)		(6.9)
Settlements	—		—		—
Statute expirations	(4.2)		(2.5)		(9.1)
Foreign currency translation	1.2		(0.3)		(2.0)
Balance at November 30	$	39.3	$	32.0	$	27.9

As of November 30, 2020, November 30, 2019, and November 30, 2018, if recognized, $39.3 million, $32.0 million and $27.5 million, respectively, of the unrecognized tax benefits would affect the effective rate.

We record interest and penalties on income taxes in income tax expense. We recognized interest and penalty expense of $0.8 million, $2.1 million and $0.1 million in 2020, 2019 and 2018, respectively. As of November 30, 2020 and 2019, we had accrued $8.3 million and $7.1 million, respectively, of interest and penalties related to unrecognized tax benefits.

Tax settlements or statute of limitation expirations could result in a change to our uncertain tax positions. We believe that the reasonably possible total amount of unrecognized tax benefits as of November 30, 2020 that could decrease in the next 12 months as a result of various statute expirations, audit closures and/or tax settlements would not be material.

We file income tax returns in the U.S. federal jurisdiction and various state and non-U.S. jurisdictions. The open years subject to tax audits vary depending on the tax jurisdictions. In the U.S federal jurisdiction, we are no longer subject to income tax audits by taxing authorities for years before 2017. In other major jurisdictions, we are no longer subject to income tax audits by taxing authorities for years before 2014.

We are under normal recurring tax audits in the U.S. and in several jurisdictions outside the U.S. While it is often difficult to predict the final outcome or the timing of resolution of any particular uncertain tax position, we believe that our reserves for uncertain tax positions are adequate to cover existing risks and exposures.

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Capital Stock, Earnings Per Share And Stock Issuance

12 Months Ended

Nov. 30, 2020

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Holders of Common Stock have full voting rights except that (1) the voting rights of persons who are deemed to own beneficially 10% or more of the outstanding shares of Common Stock are limited to 10% of the votes entitled to be cast by all holders of shares of Common Stock regardless of how many shares in excess of 10% are held by such person; (2) we have the right to redeem any or all shares of Common Stock owned by such person unless such person acquires more than 90% of the outstanding shares of each class of our common stock; and (3) at such time as such person controls more than 50% of the votes entitled to be cast by the holders of outstanding shares of Common Stock, automatically, on a share-for-share basis, all shares of Common Stock Non-Voting will convert into shares of Common Stock.

Holders of Common Stock Non-Voting will vote as a separate class on all matters on which they are entitled to vote. Holders of Common Stock Non-Voting are entitled to vote on reverse mergers and statutory share exchanges where our capital stock is converted into other securities or property, dissolution of the company and the sale of substantially all of our assets, as well as forward mergers and consolidation of the company or any amendment to our charter repealing the right of the Common Stock Non-Voting to vote on any such matters.

The reconciliation of shares outstanding used in the calculation of basic and diluted earnings per share for the years ended November 30 follows:

(millions)	2020	2019	2018
Average shares outstanding—basic	266.5	265.1	263.1
Effect of dilutive securities:
Stock options/RSUs/LTPP	2.6	3.0	3.4
Average shares outstanding—diluted	269.1	268.1	266.5

The following table sets forth the stock options and RSUs for the years ended November 30 which were not considered in our earnings per share calculation since they were antidilutive:

(millions)	2020	2019	2018
Antidilutive securities	0.1	0.2	0.4

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Commitments And Contingencies	12 Months Ended
	Nov. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments And Contingencies	COMMITMENTS AND CONTINGENCIESDuring the normal course of our business, we are occasionally involved with various claims and litigation. Reserves are established in connection with such matters when a loss is probable and the amount of such loss can be reasonably estimated. At November 30, 2020 and 2019, no material reserves were recorded. The determination of probability and the estimation of the actual amount of any such loss are inherently unpredictable, and it is therefore possible that the eventual outcome of such claims and litigation could exceed the estimated reserves, if any. However, we do not expect the outcome of the matters currently pending will have a material adverse effect on our financial statements.

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Business Segments And Geographic Areas

12 Months Ended

Nov. 30, 2020

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,” “Kohinoor,” "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 of Cholula, FONA and 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 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 12% of consolidated sales in 2020 and 11% of consolidated sales in 2019 and 2018. Sales to one of our flavor solutions segment customers, PepsiCo, Inc., accounted for approximately 11% of consolidated sales in 2020 and 10% of consolidated sales in both 2019 and 2018.

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
2020
Net sales	$	3,596.7	$	2,004.6	$	5,601.3	$	—	$	5,601.3
Operating income excluding special charges	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 and transaction and integration expenses	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

A reconciliation of operating income excluding special charges and, for 2020 and 2018, transaction and integration expenses, to operating income for 2020, 2019 and 2018 is as follows:

(millions)	Consumer		Flavor Solutions		Total
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
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

Geographic Areas

We have net sales and long-lived assets in the following geographic areas:

(millions)	United States		EMEA		Other countries		Total
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
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

Long-lived assets include property, plant and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization.

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Supplemental Financial Statement Data

12 Months Ended

Nov. 30, 2020

Supplemental Financial Statement Data [Abstract]

Supplemental Financial Statement Data

SUPPLEMENTAL FINANCIAL STATEMENT DATA

Supplemental consolidated information with respect to our income statement, balance sheet and cash flow follow:

For the year ended November 30 (millions)	2020		2019		2018
Other income, net
Pension and other postretirement benefit income	$	10.0	17.7		12.2
Interest income	7.8		10.1		7.1
Other	(0.2)		(1.1)		5.5
	$	17.6	$	26.7	$	24.8

At November 30 (millions)	2020		2019
Inventories
Finished products	$	499.3	$	413.3
Raw materials and work-in-process	533.3		387.9
	$	1,032.6	$	801.2
Prepaid expenses	$	38.0	$	36.0
Other current assets	60.9		54.7
	$	98.9	$	90.7
Property, plant and equipment
Land and improvements	$	87.2	$	67.5
Buildings (including capital lease)	698.2		658.5
Machinery, equipment and other	1,102.9		1,007.8
Construction-in-progress	125.5		85.8
Accumulated depreciation	(985.4)		(867.0)
	$	1,028.4	$	952.6
Other long-term assets
Investments in affiliates	$	193.0	$	186.0
Long-term investments	129.9		124.4
Right of use asset	136.8		—
Software, net of accumulated amortization $281.8 for 2020 and $275.0 for 2019	116.0		76.4
Other	176.3		120.3
	$	752.0	$	507.1
Other accrued liabilities
Payroll and employee benefits	$	260.7	$	184.9
Sales allowances	183.3		137.2
Dividends payable	90.7		82.4
Other	328.9		204.6
	$	863.6	$	609.1
Other long-term liabilities
Pension	$	286.1	$	226.9
Postretirement benefits	66.2		62.7
Operating lease liability	103.5		—
Unrecognized tax benefits	46.0		37.6
Other	120.4		100.4
	$	622.2	$	427.6

For the year ended November 30 (millions)	2020		2019		2018
Depreciation	$	121.1	$	113.6	$	104.8
Software amortization	12.4		13.7		14.0
Interest paid	134.1		169.8		179.8
Income taxes paid	183.3		137.2		154.6

Dividends paid per share were $1.24 in 2020, $1.14 in 2019 and $1.04 in 2018. Dividends declared per share were $1.27 in 2020, $1.17 in 2019, and $1.07 in 2018.

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Selected Quarterly Data

12 Months Ended

Nov. 30, 2020

Quarterly Financial Information Disclosure [Abstract]

Selected Quarterly Data

SELECTED QUARTERLY DATA (UNAUDITED)

(millions except per share data)	First		Second		Third		Fourth
2020
Net sales	$	1,212.0	$	1,401.1	$	1,430.3	$	1,557.9
Gross profit	469.9		579.5		590.3		660.7
Operating income	194.2		257.4		273.0		274.9
Net income	144.7		195.9		206.1		200.7
Basic earnings per share	0.54		0.74		0.77		0.75
Diluted earnings per share	0.54		0.73		0.76		0.74
Dividends paid per share—
Common Stock and Common Stock Non-Voting	0.31		0.31		0.31		0.31
Dividends declared per share—
Common Stock and Common Stock Non-Voting	—		0.31		0.31		0.65
2019
Net sales	$	1,231.5	$	1,301.9	$	1,329.2	$	1,484.8
Gross profit	466.9		508.5		539.9		630.0
Operating income	196.9		208.1		253.5		299.2
Net income	148.0		149.4		191.9		213.4
Basic earnings per share	0.56		0.56		0.72		0.80
Diluted earnings per share	0.55		0.56		0.72		0.79
Dividends paid per share—
Common Stock and Common Stock Non-Voting	0.28		0.29		0.28		0.29
Dividends declared per share—
Common Stock and Common Stock Non-Voting	—		0.29		0.28		0.60

Operating income for the first quarter of 2020 included $1.0 million of special charges, with an after-tax impact of $0.7 million and no per share impact for both basic and diluted earnings per share. Operating income for the second quarter of 2020 included $2.9 million of special charges, with an after-tax impact of $2.0 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the third quarter of 2020 included $0.1 million of special charges, with an after-tax impact of $0.1 million and no per share impact for both basic and diluted earnings per share. Operating income for the fourth quarter of 2020 included $2.9 million of special charges, with an after-tax impact of $2.0 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the fourth quarter of 2020 included $12.4 million of transaction and integration expenses, with an after-tax impact of $10.5 million and a per share impact of $0.04 for both basic and diluted earnings per share.

Operating income for the first quarter of 2019 included $2.1 million of special charges, with an after-tax impact of $1.6 million and a per share impact of $0.01 for both basic and diluted earnings per share. Operating income for the second quarter of 2019 included $7.1 million of special charges, with an after-tax impact of $5.4 million and a per share impact of $0.02 for both basic and diluted earnings per share. Operating income for the third quarter of 2019 included $7.7 million of special charges, with an after-tax impact of $6.1 million and a per share impact of $0.01 for both basic and diluted earnings per share. Net income for the third quarter of 2019 included $1.5 million of non-recurring income tax benefit related to enactment of the U.S. Tax Act, with no per share impact for both basic and diluted earnings per share. Operating income for the fourth quarter of 2019 included $3.9 million of special charges, with an after-tax impact of $3.0 million and a per share impact of $0.02 for both basic and diluted earnings per share.

See note 3 for details with respect to actions undertaken in connection with these special charges. See note 13 for details regarding the non-recurring income tax benefits related to enactment of the U.S. Tax Act.

Earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarters may not be equal to the full year earnings per share.

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Subsequent Events	12 Months Ended
	Nov. 30, 2020
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENT (UNAUDITED)On December 30, 2020, we purchased FONA International, LLC and certain of its affiliates (FONA), a privately held company, for a purchase price of approximately $710 million, net of cash acquired, subject to certain customary purchase price adjustments. FONA is a leading manufacturer of clean and natural flavors providing solutions for a diverse customer base across various applications for the food, beverage and nutritional markets. The acquisition of FONA in fiscal 2021 expands the breadth of our flavor solutions segment into attractive categories, as well as extends our technology platform and strengthens our capabilities. The acquisition was funded with cash and commercial paper.

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Valuation And Qualifying Accounts

12 Months Ended

Nov. 30, 2020

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Valuation And Qualifying Accounts

Supplemental Financial Schedule II Consolidated

McCORMICK & COMPANY, INCORPORATED

VALUATION AND QUALIFYING ACCOUNTS

(IN MILLIONS)

Column A	Column B		Column C Additions				Column D		Column E
Description	Balance at beginning of period		Charged to costs and expenses		Charged to other accounts		Deductions		Balance at end of period
Deducted from asset accounts:
Year ended November 30, 2020:
Allowance for doubtful receivables	$	5.6	$	0.8	$	(1.4)	$	0.2	$	5.2
Valuation allowance on net deferred tax assets	32.4		11.8		(0.1)		(12.6)		31.5
	$	38.0	$	12.6	$	(1.5)	$	(12.4)	$	36.7
Deducted from asset accounts:
Year ended November 30, 2019:
Allowance for doubtful receivables	$	6.4	$	1.1	$	(1.8)	$	(0.1)	$	5.6
Valuation allowance on net deferred tax assets	32.9		2.6		(0.5)		(2.6)		32.4
	$	39.3	$	3.7	$	(2.3)	$	(2.7)	$	38.0
Deducted from asset accounts:
Year ended November 30, 2018:
Allowance for doubtful receivables	$	6.6	$	1.1	$	(0.6)	$	(0.7)	$	6.4
Valuation allowance on net deferred tax assets	26.0		11.1		(2.2)		(2.0)		32.9
	$	32.6	$	12.2	$	(2.8)	$	(2.7)	$	39.3

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Summary Of Significant Accounting Policies (Policy)

12 Months Ended

Nov. 30, 2020

Accounting Policies [Abstract]

Consolidation

Consolidation

The financial statements include the accounts of our majority-owned or controlled subsidiaries and affiliates. Intercompany transactions have been eliminated. Investments in unconsolidated affiliates, over which we exercise significant influence, but not control, are accounted for by the equity method. Accordingly, our share of net income or loss of unconsolidated affiliates is included in net income.

Foreign Currency Transactions and Translations Policy

Foreign Currency Translation

For majority-owned or controlled subsidiaries and affiliates, if located outside of the U.S., with functional currencies other than the U.S. dollar, asset and liability accounts are translated at the rates of exchange at the balance sheet date and the resultant translation adjustments are included in accumulated other comprehensive income (loss), a separate component of shareholders’ equity. Income and expense items are translated at average monthly rates of exchange. Gains and losses from foreign currency transactions of these majority-owned or controlled subsidiaries and affiliates — that is, transactions denominated in other than their functional currency — other than intercompany transactions designated as long-term investments, are included in net earnings.

Our unconsolidated affiliates located outside the U.S. generally use their local currencies as their functional currencies. The asset and liability accounts of those unconsolidated affiliates are translated at the rates of exchange at the balance sheet date, with the resultant translation adjustments included in accumulated other comprehensive income (loss) of those affiliates. Income and expense items of those affiliates are translated at average monthly rates of exchange. We record our ownership share of the net assets and accumulated other comprehensive income (loss) of our unconsolidated affiliates in our consolidated balance sheet on the lines entitled “Other long-term assets” and “Accumulated other comprehensive loss,” respectively. We record our ownership share of the net income of our unconsolidated affiliates in our consolidated income statement on the line entitled “Income from unconsolidated operations.”

Use Of Estimates

Use of Estimates

Preparation of financial statements that follow accounting principles generally accepted in the U.S. requires us to make estimates and assumptions that affect the amounts reported in the financial statements and notes. Actual amounts could differ from these estimates.

Cash And Cash Equivalents

Cash and Cash Equivalents

All highly liquid investments purchased with an original maturity of three months or less are classified as cash equivalents.

Inventories

Inventories

Inventories are stated at the lower of cost or net realizable value. Cost is determined under the first-in, first-out costing method (FIFO), including the use of average costs which approximate FIFO.

Property, Plant And Equipment

Property, Plant and Equipment

Property, plant and equipment is stated at historical cost and depreciated over its estimated useful life using the straight-line method for financial reporting and both accelerated and straight-line methods for tax reporting. The estimated useful lives range from 20 to 50 years for buildings and 3 to 12 years for machinery, equipment and other assets. Assets leased under capital leases are depreciated over the shorter of the lease term or their useful lives unless it is reasonably certain that we will obtain ownership by the end of the lease term. Repairs and maintenance costs are expensed as incurred.

Computer Software

We capitalize costs of software developed or obtained for internal use. Capitalized software development costs include only (1) direct costs paid to others for materials and services to develop or buy the software, (2) payroll and payroll-related costs for employees who work directly on the software development project and (3) interest costs while developing the software. Capitalization of these costs stops when the project is substantially complete and ready for use.

The net book value of capitalized software totaled $116.0 million and $76.4 million at November 30, 2020 and 2019, respectively. Such amounts are recorded within "Other long-term assets" in the consolidated balance sheet. Software is amortized using the straight-line method over a range of 3 to 13 years, but not exceeding the expected life of the product. The net book value of capitalized software includes $86.7 million and $44.9 million at November

30, 2020 and 2019, respectively, which had not yet been placed into service and relates to our future implementation of a global enterprise resource planning (ERP) system.

Goodwill And Other Intangible Assets

Goodwill and Other Intangible Assets

We review the carrying value of goodwill and indefinite-lived intangible assets and conduct tests of impairment on an annual basis as described below. We also test goodwill for impairment if events or circumstances indicate it is more likely than not that the fair value of a reporting unit is below its carrying amount and test indefinite-lived intangible assets for impairment if events or changes in circumstances indicate that the asset might be impaired. Separable intangible assets that have finite useful lives are amortized over those lives.

Determining the fair value of a reporting unit or an indefinite-lived purchased intangible asset is judgmental in nature and involves the use of significant estimates and assumptions. These estimates and assumptions include revenue growth rates and operating margins used to calculate projected future cash flows, risk-adjusted discount rates, assumed royalty rates, future economic and market conditions and determination of appropriate market comparables. We base our fair value estimates on assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from these estimates.

Goodwill Impairment

Our reporting units used to assess potential goodwill impairment are the same as our business segments. We calculate fair value of a reporting unit by using a discounted cash flow model and then compare that to the carrying amount of the reporting unit, including intangible assets and goodwill. If the carrying amount of the reporting unit exceeds the calculated fair value, we would determine the implied fair value of the reporting unit’s goodwill. An impairment charge would be recognized to the extent the carrying amount of goodwill exceeds the implied fair value.

Indefinite-lived Intangible Asset Impairment

Our indefinite-lived intangible assets consist of acquired brand names and trademarks. We primarily determine fair value by using a relief-from-royalty method and then compare that to the carrying amount of the indefinite-lived intangible asset. If the carrying amount of the indefinite-lived intangible asset exceeds its fair value, an impairment charge would be recorded to the extent the recorded indefinite-lived intangible asset exceeds the fair value.

Long-lived Asset Impairment

Fixed assets and amortizable intangible assets are reviewed for impairment as events or changes in circumstances occur indicating that the carrying value of the asset may not be recoverable. Undiscounted cash flow analyses are used to determine if an impairment exists. If an impairment is determined to exist, the loss would be calculated based on the excess of the asset’s carrying value over its estimated fair value.

Revenue Recognition

Revenue Recognition

We manufacture, market and distribute spices, seasoning mixes, condiments and other flavorful products to the entire food industry—retailers, food manufacturers and foodservice businesses. We recognize sales as performance obligations are fulfilled when control passes to the customer. Revenues are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates and returns, are estimated at the time of sale. Any taxes collected on behalf of government authorities are excluded from net sales. We account for product shipping and handling as fulfillment activities with costs for these activities recorded within cost of goods sold. Amounts billed and due from our customers are classified as accounts receivable on the balance sheet and require payment on a short-term basis. Our allowance for doubtful accounts represents our estimate of probable non-payments and credit losses in our existing receivables, as determined based on a review of past due balances and other specific account data.

The following table sets forth our net sales by the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) geographic regions:

(millions)	Americas		EMEA		APAC		Total
2020
Net sales	$	3,974.9	$	1,046.7	$	579.7	$	5,601.3
2019
Net sales	$	3,711.3	$	986.1	$	650.0	$	5,347.4
2018
Net sales	$	3,627.5	$	1,021.1	$	654.2	$	5,302.8

Performance Obligations

Our revenues primarily result from contracts or purchase orders with customers, which generally are both short-term in nature and have a single performance obligation—the delivery of our products to customers. We assess the goods and services promised in our customers’ contracts or purchase orders and identify a performance obligation for each promise to transfer a good or service (or bundle of goods or services) that is distinct. To identify the performance obligations, we consider all the goods or services promised, whether explicitly stated or implied based on customary business practices.

Significant Judgments

Sales are recorded net of trade and sales incentives and estimated product returns. Known or expected pricing or revenue adjustments, such as trade discounts, rebates or returns, are estimated at the time of sale. Where applicable, future reimbursements are estimated based on a combination of historical patterns and future expectations regarding these programs. Key sales terms, such as pricing and quantities ordered, are established on a frequent basis such that most customer arrangements and related incentives have a one-year or shorter duration. Estimates that affect revenue, such as trade incentives and product returns, are monitored and adjusted each period until the incentives or product returns are realized. The adjustments recognized during the year ended November 30, 2020, 2019 and 2018 resulting from updated estimates of revenue for prior year product sales were not significant. The unsettled portion remaining in accrued liabilities for these activities was $183.3 million and $137.2 million at November 30, 2020 and 2019, respectively.

Practical Expedients

We have elected the following policy elections and practical expedients with respect to revenue recognition:

•Shipping and handling costs — We elected to account for shipping and handling activities that occur before the customer has obtained control of a good as fulfillment activities (i.e., an expense) rather than as a promised service.

•Measurement of transaction price — We elected to exclude from the measurement of transaction price all taxes assessed by a governmental authority that are both imposed on and concurrent with a specific revenue-producing transaction and collected by us from a customer for sales, value added and other excise taxes.

•Incremental cost of obtaining a contract — We elected to expense any incremental costs of obtaining a contract when the contract is for a period of one year or less.

Revenue from External Customers by Geographic Areas [Table Text Block]

The following table sets forth our net sales by the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) geographic regions:

(millions)	Americas		EMEA		APAC		Total
2020
Net sales	$	3,974.9	$	1,046.7	$	579.7	$	5,601.3
2019
Net sales	$	3,711.3	$	986.1	$	650.0	$	5,347.4
2018
Net sales	$	3,627.5	$	1,021.1	$	654.2	$	5,302.8

Shipping And Handling

Shipping and Handling

Shipping and handling costs on our products sold to customers related to activities that occur before the customer has obtained control of a good are included in cost of goods sold in the consolidated income statement.

Research And Development

Research and Development

Research and development costs are expensed as incurred and are included in our consolidated income statement in the line entitled "Selling, general and administrative expense". Research and development expense was $68.6 million, $67.3 million and $69.4 million for 2020, 2019 and 2018, respectively.

Brand Marketing Support

Brand Marketing Support

Total brand marketing support costs, which are included in our consolidated income statement in the line entitled "Selling, general and administrative expense", were $230.3 million, $214.6 million and $218.7 million for 2020, 2019 and 2018, respectively. Brand marketing support costs include advertising and promotions but exclude trade funds paid to customers for such activities. All trade funds paid to customers are reflected in the consolidated income statement as a reduction of net sales. Promotion costs include public relations, shopper marketing, social marketing activities, general consumer promotion activities and depreciation of assets used in these promotional activities. Advertising costs include the development, production and communication of advertisements through television, digital, print and radio. Development and production costs are expensed in the period in which the advertisement is first run. All other costs of advertising are expensed as incurred. Advertising expense was $174.8 million, $150.8 million and $147.2 million for 2020, 2019 and 2018, respectively.

Pension and Other Postretirement Plans, Policy

Employee Benefit and Retirement Plans

We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees.

We recognize the overfunded or underfunded status of our defined benefit pension plans as an asset or a liability in our balance sheet, with changes in the funded status recorded through other comprehensive income in the year in which those changes occur.

The expected return on plan assets is determined using the expected rate of return and a calculated value of plan assets referred to as the market-related value of plan assets. Differences between assumed and actual returns are amortized to the market-related value of assets on a straight-line basis over five years.

We use the corridor approach in the valuation of defined benefit pension and postretirement benefit plans. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. Those unrecognized gains and losses are amortized when the net gains and losses exceed 10% of the greater of the market-related value of plan assets or the projected benefit obligation at the beginning of the year. The amount in excess of the corridor is amortized over the average remaining life expectancy of retired plan participants, for plans whose benefits have been frozen, or the average remaining service period to retirement date of active plan participants.

Income Tax, Policy

Income Taxes

Income taxes are recognized in accordance with the liability method of accounting. Deferred taxes are recognized for the estimated taxes ultimately payable or recoverable based on enacted tax law. Changes in enacted tax rates are reflected in the tax provision as they occur.

As more fully described in note 13, the U.S. Tax Act created a new requirement that certain income earned by foreign subsidiaries, referred to as Global Intangible Low-Taxed Income (GILTI), must be included in the gross income of the subsidiary’s U.S. shareholder; this provision of the U.S. Tax Act was effective for us beginning on December 1, 2018. Accounting principles generally accepted in the U.S. provide for an accounting policy election of either recognizing deferred taxes for temporary differences expected to reverse as GILTI in future years or recognizing such taxes as a current period expense when incurred. We have elected to treat GILTI as a current period expense when incurred.

In accordance with ASC 740, Income Taxes, we recognize a tax position in our financial statements when it is more likely than not that the position will be sustained upon examination based on the technical merits of the position. That position is then measured at the largest amount of benefit that is greater than 50 percent likely of being realized upon ultimate settlement.

Share-based Payment Arrangement

Stock-Based Compensation

Stock-based compensation expense is recognized in accordance with ASC 718, Compensation – Stock Compensation. We recognize stock-based compensation expense associated with options and restricted stock units (RSUs), which contain provisions that such awards fully vest upon an employee’s retirement, ratably over the shorter of the vesting period or the employees’ retirement eligibility date. Accordingly, we recognize stock-based compensation associated with options and RSUs subject to immediate retirement eligible vesting provisions on the date of grant.

Compensation expense associated with our long-term performance plan (LTPP) is recorded in the income statement ratably over the three-year period of the program based on the number of shares ultimately expected to be awarded using our estimate of the most likely outcome of achieving the performance objectives. We estimate forfeitures at the time of grant based on historical experience and revises this estimate in subsequent periods if actual forfeitures differ.

We recognize stock-based compensation expense associated with price-vested stock options ratably over the vesting period as such options do not contain provisions that fully vest these awards upon an employee’s retirement.

Derivatives, Policy

Derivative Instruments

We record all derivatives on our balance sheet at fair value. The fair value of derivative instruments is recorded in our consolidated balance sheet on the lines entitled “Other current assets", "Other long-term assets", "Other accrued liabilities" or "Other long-term liabilities". Gains and losses representing either hedge ineffectiveness, hedge components excluded from the assessment of effectiveness, or hedges of translational exposure are recorded in our consolidated income statement in the lines entitled "Other income (expense), net" or "Interest expense". In our consolidated cash flow statement, settlements of cash flow and fair value hedges are classified as operating activities; settlements of all other derivative instruments, including instruments for which hedge accounting has been discontinued, are classified consistent with the nature of the instruments.

Cash flow hedges.  Qualifying derivatives are accounted for as cash flow hedges when the hedged item is a forecasted transaction. Gains and losses on these instruments are recorded in our consolidated balance sheet on the line entitled “Accumulated other comprehensive income (loss)" until the underlying transaction is recorded in earnings. When the hedged item is realized, gains or losses are reclassified from "Accumulated other comprehensive income (loss)" in our consolidated balance sheet to our consolidated income statement on the same line items as the underlying transactions.

Fair value hedges.  Qualifying derivatives are accounted for as fair value hedges when the hedged item is a recognized asset, liability, or firm commitment. Gains and losses on these instruments are recorded in earnings, offsetting gains and losses on the hedged item.

Net investment hedges.  Qualifying derivative and nonderivative financial instruments are accounted for as net investment hedges when the hedged item is a nonfunctional currency investment in a subsidiary. Gains and losses on these instruments are included in foreign currency translation adjustments, a component of “Accumulated other comprehensive income (loss)" in our consolidated balance sheet.

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Summary Of Significant Accounting Policies (Tables)

12 Months Ended

Nov. 30, 2020

Accounting Policies [Abstract]

Revenue from External Customers by Geographic Areas [Table Text Block]

The following table sets forth our net sales by the Americas, Europe, Middle East and Africa (EMEA) and Asia Pacific (APAC) geographic regions:

(millions)	Americas		EMEA		APAC		Total
2020
Net sales	$	3,974.9	$	1,046.7	$	579.7	$	5,601.3
2019
Net sales	$	3,711.3	$	986.1	$	650.0	$	5,347.4
2018
Net sales	$	3,627.5	$	1,021.1	$	654.2	$	5,302.8

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Acquisitions (Tables)

12 Months Ended

Nov. 30, 2020

Business Combinations [Abstract]

Schedule of Business Acquisitions, by Acquisition

The preliminary allocation, net of cash acquired, of the fair value of the Cholula acquisition is summarized in the table below (in millions):

Trade accounts receivable	$	15.2
Inventories	16.5
Goodwill	410.5
Intangible assets	401.0
Other assets	12.5
Trade accounts payable	(6.8)
Other accrued liabilities	(7.4)
Deferred taxes	(35.6)
Other long-term liabilities	(2.9)
Total	$	803.0

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Special Charges (Tables)

12 Months Ended

Nov. 30, 2020

Special Charges [Abstract]

Special Charges Summary

The following is a summary of special charges recognized for the years ended November 30 (in millions):

	2020		2019		2018
Employee severance and related benefits	$	4.1	$	6.2	$	2.0
Other costs (1)	2.8		14.6		14.3
Total special charges	$	6.9	$	20.8	$	16.3

(1)    Included in other costs for 2018 are non-cash fixed asset impairment charges of $3.0 million.

Special Charges Summary by Segment

The following is a summary of special charges by business segments for the years ended November 30 (in millions):

	2020		2019		2018
Consumer segment	$	5.5	$	13.1	$	10.0
Flavor solutions segment	1.4		7.7		6.3
Total special charges	$	6.9	$	20.8	$	16.3

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Goodwill And Intangible Assets (Tables)

12 Months Ended

Nov. 30, 2020

Goodwill And Intangible Assets [Abstract ]

Schedule Of Amortized And Non-Amortized Intangible Assets

The following table displays intangible assets as of November 30:

	2020				2019
(millions)	Gross carrying amount		Accumulated amortization		Gross carrying amount		Accumulated amortization
Definite-lived intangible assets	$	336.8	$	127.4	$	308.3	$	104.3
Indefinite-lived intangible assets:
Goodwill	4,986.3		—		4,505.2		—
Brand names and trademarks	3,030.0		—		2,643.0		—
	8,016.3		—		7,148.2		—
Total goodwill and intangible assets	$	8,353.1	$	127.4	$	7,456.5	$	104.3

Changes In The Carrying Amount Of Goodwill

The changes in the carrying amount of goodwill by segment for the years ended November 30 were as follows:

	2020				2019
(millions)	Consumer		Flavor Solutions		Consumer		Flavor Solutions
Beginning of year	$	3,377.6	$	1,127.6	$	3,398.9	$	1,129.0
Increases from acquisitions	273.7		136.8		—		—
Foreign currency fluctuations	59.9		10.7		(21.3)		(1.4)
End of year	$	3,711.2	$	1,275.1	$	3,377.6	$	1,127.6

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Investments In Affiliates (Tables)

12 Months Ended

Nov. 30, 2020

Investments In Affiliates [Abstract]

Summarized Annual And Year-End Information Of Unconsolidated Affiliates

Summarized annual and year-end information from the financial statements of unconsolidated affiliates representing 100% of the businesses follows:

(millions)	2020		2019		2018
Net sales	$	870.3	$	863.0	$	807.9
Gross profit	318.0		316.2		290.5
Net income	93.7		90.5		78.9
Current assets	$	421.7	$	426.3	$	342.1
Noncurrent assets	126.2		134.0		129.9
Current liabilities	192.3		223.8		172.1
Noncurrent liabilities	12.2		9.2		10.0

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Financing Arrangements (Tables)

12 Months Ended

Nov. 30, 2020

Financing Arrangements [Abstract]

Components Of Outstanding Debt

Our outstanding debt, including capital leases, was as follows at November 30:

(millions)	2020			2019
Short-term borrowings
Commercial paper	$	845.8		$	575.3
Other	40.9			25.4
	$	886.7		$	600.7
Weighted-average interest rate of short-term borrowings at year-end	0.3		%	2.5		%
Long-term debt
3.90% notes due 7/8/2021(1)	$	250.0		$	250.0
2.70% notes due 8/15/2022	750.0			750.0
Term loan due 8/17/2022(2)	—			250.0
3.50% notes due 8/19/2023(3)	250.0			250.0
3.15% notes due 8/15/2024	700.0			700.0
3.25% notes due 11/15/2025(4)	250.0			250.0
3.40% notes due 8/15/2027(5)	750.0			750.0
2.50% notes due 4/15/2030	500.0			—
4.20% notes due 8/15/2047	300.0			300.0
7.63%–8.12% notes due 2024	55.0			55.0
Other, including capital leases	195.8			171.6
Unamortized discounts, premiums, debt issuance costs and fair value adjustments(6)	16.9			(3.1)
	4,017.7			3,723.5
Less current portion	263.9			97.7
	$	3,753.8		$	3,625.8

(1)Interest rate swaps, settled upon the issuance of these notes in 2011, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 4.01%.

(2)The term loan was prepayable in whole or in part. Also, the term loan due in 2022 required quarterly principal payments of 2.5% of the initial principal amount.

(3)Interest rate swaps, settled upon the issuance of these notes in 2013, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.30%.

(4)Interest rate swaps, settled upon the issuance of these notes in 2015, effectively set the interest rate on the $250 million notes at a weighted-average fixed rate of 3.45%. The fixed interest rate on $100 million of the 3.25% notes due in 2025 is effectively converted to a variable rate by interest rate swaps through 2025. Net interest payments are based on 3-month LIBOR plus 1.22% during this period (our effective rate as of November 30, 2020 was 1.44%).

(5)Interest rate swaps, settled upon the issuance of these notes in 2017, effectively set the interest rate on the $750 million notes at a weighted-average fixed rate of 3.44%. The fixed interest rate on $250 million of the 3.40% notes due in 2027 is effectively converted to a variable rate by interest rate swaps through 2027. Net interest payments are based on 3-month LIBOR plus 0.685% during this period (our effective rate as of November 30, 2020 was 0.91%).

(6)Includes unamortized discounts, premiums and debt issuance costs of $(24.4) million and $(23.6) million as of November 30, 2020 and 2019, respectively.  Includes fair value adjustment associated with interest rate swaps designated as fair value hedges of $41.3 million and $20.5 million as of November 30, 2020 and 2019, respectively.

Maturities Of Long-Term Debt

Maturities of long-term debt, including capital leases, during the fiscal years subsequent to November 30, 2020 are as follows (in millions):

2021	$	263.9
2022	765.0
2023	265.2
2024	791.9
2025	271.4
Thereafter	1,643.4

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Leases (Tables)

12 Months Ended

Nov. 30, 2020

Leases [Abstract]

Lease Cost

The following presents the components of our lease expense for the year ended November 30, 2020 (in millions):

Operating lease cost	$	41.2
Finance lease cost:
Amortization of ROU assets	9.0
Interest on lease liabilities	4.5
Net lease cost	$	54.7
(1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial.

Supplemental cash flow and other information related to leases for the year ended November 30, 2020 were as follows (in millions):

Cash paid for amounts included in the measurements of lease liabilities:
Operating cash flows used for operating leases	$	41.5
Operating cash flows used for finance leases	4.5
Financing cash flows used for finance leases	6.9
ROU assets obtained in exchange for lease liabilities
Operating leases	$	36.6

Supplemental Balance Sheet Information

Supplemental balance sheet information related to leases as of November 30, 2020 were as follows (in millions):

Leases	Classification
Assets:
Operating lease ROU assets	Other long-term assets	$	136.8
Finance lease ROU assets	Property, plant and equipment, net	120.7
Total leased assets		$	257.5
Liabilities:
Current
Operating	Other accrued liabilities	$	37.3
Finance	Current portion of long-term debt	7.3
Non-current
Operating	Other long-term liabilities	103.5
Finance	Long-term debt	125.5
Total lease liabilities		$	273.6

Information regarding our lease terms and discount rates as of November 30, 2020 were as follows:

	Weighted-average remaining lease term (years)	Weighted-average discount rate
Operating leases	5.6	1.9	%
Finance leases	13.9	3.3	%

Lease Maturity

The future maturity of our lease liabilities as of November 30, 2020 were as follows (in millions):

	Operating leases		Finance leases		Total
2021	$	39.4	$	11.4	$	50.8
2022	29.2		11.4		40.6
2023	22.3		11.4		33.7
2024	15.3		11.5		26.8
2025	12.6		11.7		24.3
Thereafter	28.8		114.0		142.8
Total lease payments	147.6		171.4		319.0
Less: Imputed interest	6.8		38.6		45.4
Total lease liabilities	$	140.8	$	132.8	$	273.6

Lease Maturity

The future maturity of our lease liabilities as of November 30, 2020 were as follows (in millions):

	Operating leases		Finance leases		Total
2021	$	39.4	$	11.4	$	50.8
2022	29.2		11.4		40.6
2023	22.3		11.4		33.7
2024	15.3		11.5		26.8
2025	12.6		11.7		24.3
Thereafter	28.8		114.0		142.8
Total lease payments	147.6		171.4		319.0
Less: Imputed interest	6.8		38.6		45.4
Total lease liabilities	$	140.8	$	132.8	$	273.6

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Financial Instruments (Tables)

12 Months Ended

Nov. 30, 2020

Derivative [Line Items]

Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) [Table Text Block]

Net investment hedges (millions)
	Gain (loss) recognized in OCI				Income statement location	Gain (loss) excluded from the assessment of hedge effectiveness
Derivative	2020		2019			2020		2019
Cross currency contracts	$	(20.8)	$	1.1	Interest expense	$	3.1	$	5.4

Fair Values Of Derivative Instruments

The following tables disclose the notional amount and fair values of derivative instruments on our consolidated balance sheet:

As of November 30, 2020:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	43.1	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	27.5		1.4		Other accrued liabilities	356.3		8.2
Cross currency contracts	Other current assets/Other long-term assets	—		—		Other long-term liabilities	524.4		18.8
Total				$	44.5				$	27.0
As of November 30, 2019:
(millions)	Asset Derivatives					Liability Derivatives
Derivatives	Balance sheet location	Notional amount		Fair value		Balance sheet location	Notional amount		Fair value
Interest rate contracts	Other current  assets/Other long-term assets	$	350.0	$	20.9	Other accrued liabilities	$	—	$	—
Foreign exchange contracts	Other current assets	293.1		3.3		Other accrued liabilities	196.1		3.6
Cross currency contracts	Other current assets/Other long-term assets	495.5		3.2		Other accrued liabilities	—		—
Total				$	27.4				$	3.6

Impact Of Derivative Instruments

The following tables disclose the impact of derivative instruments on other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our consolidated income statement for the years ended November 30, 2020, 2019 and 2018:

Fair value hedges (millions)
	Income statement location	Income (expense)
Derivative		2020		2019		2018
Interest rate contracts	Interest expense	$	5.2	$	—	$	(0.1)

	Income statement location	Gain (loss) recognized in income							Income statement location	Gain (loss) recognized in income
Derivative		2020		2019		2018		Hedged Item		2020		2019		2018
Foreign exchange contracts	Other income, net	$	(4.0)	$	0.2	$	(2.9)	Intercompany loans	Other income, net	$	3.0	$	(0.9)	$	2.7

Cash flow hedges (millions)
	Gain (loss) recognized in OCI						Income statement location	Gain (loss)   reclassified from AOCI
Derivative	2020		2019		2018			2020		2019		2018
Interest rate contracts	$	—	$	—	$	—	Interest expense	$	0.5	$	0.5	$	0.5
Foreign exchange contracts	1.9		(0.2)		2.6		Cost of goods sold	1.6		1.6		(3.3)
Total	$	1.9	$	(0.2)	$	2.6		$	2.1	$	2.1	$	(2.8)

Carrying Amount And Fair Value Of Financial Instruments

The carrying amount and fair value of financial instruments as of November 30 were as follows:

	2020				2019
(millions)	Carrying amount		Fair value		Carrying amount		Fair value
Long-term investments	$	129.9	$	129.9	$	124.4	$	124.4
Long-term debt (including current portion)	4,017.7		4,357.1		3,723.5		3,859.0
Level 1 valuation techniques			4,161.3				3,437.5
Level 2 valuation techniques			195.8				421.5
Derivatives related to:
Interest rates (assets)	43.1		43.1		20.9		20.9
Foreign currency (assets)	1.4		1.4		3.3		3.3
Foreign currency (liabilities)	8.2		8.2		3.6		3.6
Cross currency (assets)	—		—		3.2		3.2
Cross currency (liabilities)	18.8		18.8		—		—

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Fair Value Measurements (Tables)

12 Months Ended

Nov. 30, 2020

Fair Value Disclosures [Abstract]

Assets And Liabilities Measured At Fair Value On Recurring Basis

Our population of assets and liabilities subject to fair value measurements on a recurring basis are as follows:

			Fair value measurements using fair value hierarchy as of  November 30, 2020
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	423.6	$	423.6	$	—
Insurance contracts	126.0		—		126.0
Bonds and other long-term investments	3.9		3.9		—
Interest rate derivatives	43.1		—		43.1
Foreign currency derivatives	1.4		—		1.4
Total	$	598.0	$	427.5	$	170.5
Liabilities:
Foreign currency derivatives	8.2		—		8.2
Cross currency contracts	18.8		—		18.8
Total	$	27.0	$	—	$	27.0

			Fair value measurements using fair value hierarchy as of  November 30, 2019
(millions)	Fair value		Level 1		Level 2
Assets:
Cash and cash equivalents	$	155.4	$	155.4	$	—
Insurance contracts	121.7		—		121.7
Bonds and other long-term investments	2.7		2.7		—
Interest rate derivatives	20.9		—		20.9
Foreign currency derivatives	3.3		—		3.3
Cross currency contracts	3.2		—		3.2
Total	$	307.2	$	158.1	$	149.1
Liabilities:
Foreign currency derivatives	3.6		—		3.6
Total	$	3.6	$	—	$	3.6

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Accumulated Other Comprehensive Income (Tables)

12 Months Ended

Nov. 30, 2020

Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of accumulated other comprehensive income (loss)

ACCUMULATED OTHER COMPREHENSIVE LOSS

The following table sets forth the components of accumulated other comprehensive loss, net of tax where applicable, as of November 30 (in millions):

	2020		2019
Accumulated other comprehensive loss, net of tax where applicable
Foreign currency translation adjustment (1)	$	(174.0)	$	(266.5)
Unrealized loss on foreign currency exchange contracts	(0.4)		—
Unamortized value of settled interest rate swaps	(0.1)		0.3
Pension and other postretirement costs	(296.3)		(234.0)
	$	(470.8)	$	(500.2)

(1)During the year ended November 30, 2020, the foreign currency translation adjustment of accumulated other comprehensive loss decreased by $92.5 million, including the impact of a $20.8 million increase associated with net investment hedges. During the year ended November 30, 2019, the foreign currency translation adjustment of accumulated other comprehensive loss increased by $24.9 million, of which $0.9 million was associated with net investment hedges. These net investment hedges are more fully described in Note 8.

The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the years ended November 30:

(millions)							Affected line items in the consolidated income statement
Accumulated other comprehensive income (loss) components	2020		2019		2018
(Gains)/losses on cash flow hedges:
Interest rate derivatives	$	(0.5)	$	(0.5)	$	(0.5)	Interest expense
Foreign exchange contracts	(1.6)		(1.6)		3.3		Cost of goods sold
Total before taxes	(2.1)		(2.1)		2.8
Tax effect	0.5		0.4		(0.6)		Income taxes
Net, after tax	$	(1.6)	$	(1.7)	$	2.2
Amortization of pension and postretirement benefit adjustments:
Amortization of prior service (credits) costs (1)	$	(4.0)	$	(8.0)	$	(8.5)	Other income, net
Amortization of net actuarial losses (1)	11.0		2.6		12.6		Other income, net
Total before taxes	7.0		(5.4)		4.1
Tax effect	(1.6)		1.2		(1.0)		Income taxes
Net, after tax	$	5.4	$	(4.2)	$	3.1

(1) This accumulated other comprehensive income (loss) component is included in the computation of total pension expense and total other postretirement expense (refer to note 11 for additional details).

Comprehensive Income (Loss) Note [Text Block]

The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the years ended November 30:

(millions)							Affected line items in the consolidated income statement
Accumulated other comprehensive income (loss) components	2020		2019		2018
(Gains)/losses on cash flow hedges:
Interest rate derivatives	$	(0.5)	$	(0.5)	$	(0.5)	Interest expense
Foreign exchange contracts	(1.6)		(1.6)		3.3		Cost of goods sold
Total before taxes	(2.1)		(2.1)		2.8
Tax effect	0.5		0.4		(0.6)		Income taxes
Net, after tax	$	(1.6)	$	(1.7)	$	2.2
Amortization of pension and postretirement benefit adjustments:
Amortization of prior service (credits) costs (1)	$	(4.0)	$	(8.0)	$	(8.5)	Other income, net
Amortization of net actuarial losses (1)	11.0		2.6		12.6		Other income, net
Total before taxes	7.0		(5.4)		4.1
Tax effect	(1.6)		1.2		(1.0)		Income taxes
Net, after tax	$	5.4	$	(4.2)	$	3.1

(1) This accumulated other comprehensive income (loss) component is included in the computation of total pension expense and total other postretirement expense (refer to note 11 for additional details).

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Employee Benefit And Retirement Plans (Tables)

12 Months Ended

Nov. 30, 2020

Retirement Benefits, Description [Abstract]

Significant Assumptions Used To Determine Benefit Obligations

The significant assumptions used to determine benefit obligations are as follows as of November 30:

	United States				International
	2020		2019		2020		2019
Discount rate—funded plans	2.8	%	3.4	%	1.9	%	2.2	%
Discount rate—unfunded plan	2.7	%	3.3	%	—		—
Salary scale	—		—		2.9	%	2.9	%

The significant assumptions used to determine pension expense for the years ended November 30 are as follows:

	United States						International
	2020		2019		2018		2020		2019		2018
Discount rate—funded plans	3.4	%	4.7	%	4.0	%	2.2	%	3.3	%	2.9	%
Discount rate—unfunded plan	3.3	%	4.6	%	3.9	%	—		—		—
Salary scale	—	%	—	%	3.8	%	2.9	%	3.4	%	3.5	%
Expected return on plan assets	6.8	%	7.0	%	7.3	%	4.9	%	5.5	%	5.6	%

Components Of Defined Benefit Plans

Our pension expense for the years ended November 30 was as follows:

	United States						International
(millions)	2020		2019		2018		2020		2019		2018
Service cost	$	3.2	$	2.1	$	17.0	$	1.3	$	3.6	$	4.3
Interest costs	29.3		34.4		31.6		7.5		9.5		9.2
Expected return on plan assets	(40.6)		(42.5)		(43.4)		(15.3)		(16.4)		(16.6)
Amortization of prior service costs	0.5		0.5		—		0.1		0.2		0.1
Amortization of net actuarial loss	7.8		2.3		9.9		2.0		1.2		2.8
Settlement/curtailment loss	—		—		—		1.3		—		0.5
	$	0.2	$	(3.2)	$	15.1	$	(3.1)	$	(1.9)	$	0.3

Our other postretirement benefit (income) expense for the years ended November 30 follows:

(millions)	2020		2019		2018
Service cost	$	1.9	$	1.8	$	2.0
Interest costs	2.0		2.7		2.4
Amortization of prior service credits	(4.6)		(8.7)		(8.6)
Amortization of actuarial gains	(0.1)		(0.9)		(0.1)
Postretirement benefit (income) expense	$	(0.8)	$	(5.1)	$	(4.3)

Benefit Obligation, Fair Value Of Plan Assets And Reconciliation Of Defined Benefit Plans

A rollforward of the benefit obligation, fair value of plan assets and a reconciliation of the pension plans’ funded status as of November 30, the measurement date, follows:

	United States				International
(millions)	2020		2019		2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	884.8	$	752.6	$	345.6	$	292.9
Service cost	3.2		2.1		1.3		3.6
Interest costs	29.3		34.4		7.5		9.5
Employee contributions	—		—		—		0.6
Actuarial loss	82.1		134.6		19.1		51.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Expenses paid	—		—		(0.2)		(0.3)
Foreign currency impact	—		—		12.5		2.2
Benefit obligation at end of year	$	958.0	$	884.8	$	371.7	$	345.6
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	671.9	$	640.4	$	340.9	$	306.5
Actual return on plan assets	47.3		62.2		28.6		42.4
Employer contributions	10.4		8.2		1.5		3.2
Employee contributions	—		—		—		0.8
Benefits paid	(41.4)		(38.9)		(14.1)		(14.7)
Foreign currency impact	—		—		11.8		2.7
Fair value of plan assets at end of year	$	688.2	$	671.9	$	368.7	$	340.9
Funded status	$	(269.8)	$	(212.9)	$	(3.0)	$	(4.7)
Pension plans in which accumulated benefit obligation exceeded plan assets
Projected benefit obligation	$	958.0	$	884.8	$	110.4	$	103.9
Accumulated benefit obligation	945.1		874.8		106.5		100.4
Fair value of plan assets	688.2		671.9		87.7		83.6

Rollforwards of the benefit obligation, fair value of plan assets and a reconciliation of the plans’ funded status at November 30, the measurement date, follow:

(millions)	2020		2019
Change in benefit obligation:
Benefit obligation at beginning of year	$	67.2	$	62.9
Service cost	1.9		1.8
Interest costs	2.0		2.7
Participant contributions	2.1		0.3
Plan amendments	—		(0.4)
Actuarial loss	3.9		4.1
Benefits paid	(6.4)		(4.2)
Benefit obligation at end of year	$	70.7	$	67.2
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	—	$	—
Employer contributions	4.3		3.9
Participant contributions	2.1		0.3
Benefits paid	(6.4)		(4.2)
Fair value of plan assets at end of year	$	—	$	—
Other postretirement benefit liability	$	70.7	$	67.2

Amounts Recorded In Balance Sheet, Defined Benefit Pension Plans

Amounts recorded in the balance sheet for all defined benefit pension plans as of November 30 consist of the following:

	United States				International
(millions)	2020		2019		2020		2019
Non-current pension asset	$	—	$	—	$	19.6	$	15.6
Accrued pension liability	269.8		212.9		22.6		20.3
Deferred income tax assets	74.0		58.5		14.3		13.3
Accumulated other comprehensive loss	235.5		183.9		63.7		60.1

Allocations Of Pension Plan Assets

The allocations of U.S. pension plan assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	63.2	%	63.3	%	59.0	%
Fixed income securities	22.0	%	21.5	%	23.2	%
Other	14.8	%	15.2	%	17.8	%
Total	100.0	%	100.0	%	100.0	%

The allocations of the international pension plans’ assets as of November 30, by asset category, were as follows:

	Actual				2020
Asset Category	2020		2019		Target
Equity securities	50.9	%	50.4	%	53.0	%
Fixed income securities	48.3	%	48.9	%	47.0	%
Other	0.8	%	0.7	%	—	%
Total	100.0	%	100.0	%	100.0	%

Fair Value Of Pension Plan Assets

The following tables set forth by level, within the fair value hierarchy as described in note 9, pension plan assets at their fair value as of November 30 for the United States and international plans:

As of November 30, 2020	United States
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	28.1	$	28.1	$	—
Equity securities:
U.S. equity securities(a)	271.1		138.2		132.9
International equity securities(b)	159.2		147.6		11.6
Fixed income securities:
U.S. government/corporate bonds(c)	57.1		54.9		2.2
High yield bonds(d)	37.3		—		37.3
International/government/corporate bonds(e)	29.1		29.1		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	24.5		20.6		3.9
Natural resources (h)	9.7		—		9.7
Total	$	617.2	$	418.5	$	198.7
Investments measured at net asset value(i)
Hedge funds(j)	39.5
Private equity funds(k)	4.8
Private debt funds(l)	26.7
Total investments	$	688.2

As of November 30, 2020	International
(millions)	Total fair value		Level 1		Level 2
Cash and cash equivalents	$	3.1	$	3.1	$	—
International equity securities(b)	187.6		—		187.6
Fixed income securities:
International/government/corporate bonds(e)	155.4		—		155.4
Insurance contracts(f)	22.6		—		22.6
Total investments	$	368.7	$	3.1	$	365.6

As of November 30, 2019	United States
(millions)	Total  fair   value		Level 1		Level 2
Cash and cash equivalents	$	15.3	$	15.3	$	—
Equity securities:
U.S. equity securities(a)	276.5		148.5		128.0
International equity securities(b)	145.5		134.2		11.3
Fixed income securities:
U.S./government/ corporate bonds(c)	51.2		49.1		2.1
High yield bonds(d)	40.1		—		40.1
International/government/ corporate bonds(e)	26.8		26.8		—
Insurance contracts(f)	1.1		—		1.1
Other types of investments:
Real estate (g)	25.9		22.0		3.9
Natural resources (h)	12.0		—		12.0
Total	$	594.4	$	395.9	$	198.5
Investments measured at net asset value(i)
Hedge funds(j)	49.3
Private equity funds(k)	3.2
Private debt funds(l)	25.0
Total investments	$	671.9

As of November 30, 2019			International
(millions)	Total  fair    value		Level 1		Level 2
Cash and cash equivalents	$	2.5	$	2.5	$	—
International equity securities(b)	171.6		—		171.6
Fixed income securities:
International/government/corporate bonds(e)	144.7		—		144.7
Insurance contracts(f)	22.1		—		22.1
Total investments	$	340.9	$	2.5	$	338.4

(a)This category comprises equity funds and collective equity trust funds that most closely track the S&P index and other equity indices.

(b)This category comprises international equity funds with varying benchmark indices.

(c)This category comprises funds consisting of U.S. government and U.S. corporate bonds and other fixed income securities. An appropriate benchmark is the Barclays Capital Aggregate Bond Index.

(d)This category comprises funds consisting of real estate related debt securities with an appropriate benchmark of the Barclays Investment Grade CMBS Index.

(e)This category comprises funds consisting of international government/corporate bonds and other fixed income securities with varying benchmark indices.

(f)This category comprises insurance contracts, the majority of which have a guaranteed investment return.

(g)This category comprises funds investing in real estate investment trusts (REIT). An appropriate benchmark is the MSCI U.S. REIT Index.

(h)This category comprises funds investing in natural resources. An appropriate benchmark is the Alerian master limited partnership (MLP) Index.

(i)Certain investments that are valued using the net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. These are included to permit reconciliation of the fair value hierarchy to the aggregate pension plan assets.

(j)This category comprises hedge funds investing in strategies represented in various HFRI Fund Indices. The net asset value is generally based on the valuation of the underlying investment. Limitations exist on the timing from notice by the plan of its intent to redeem and actual redemptions of these funds and generally range from a minimum of one month to several months.

(k)This category comprises private equity, venture capital and limited partnerships. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

(l)This category comprises limited partnerships funds investing in senior loans, mezzanine and distressed debt. The net asset is based on valuation models of the underlying securities as determined by the general partner or general partner's designee. These valuation models include unobservable inputs that cannot be corroborated using verifiable observable market data. These funds typically have redemption periods of approximately 10 years.

Schedule of Expected Benefit Payments

Pension benefit payments in our most significant plans are made from assets of the pension plans. It is anticipated that future benefit payments for the U.S. and international plans for the next 10 fiscal years will be as follows:

(millions)	United States		International
2021	$	43.7	$	12.0
2022	43.7		11.7
2023	44.7		12.8
2024	47.5		12.4
2025	48.7		12.8
2026-2030	252.8		66.0

Estimated future benefit payments (net of employee contributions) for the next 10 fiscal years are as follows:

(millions)	Retiree medical		Retiree life insurance		Total
2021	$	3.6	$	1.5	$	5.1
2022	3.6		1.5		5.1
2023	3.7		1.4		5.1
2024	3.7		1.4		5.1
2025	3.7		1.4		5.1
2026-2030	17.5		6.5		24.0

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Stock-Based Compensation (Tables)

12 Months Ended

Nov. 30, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Summary Of RSU Activity

A summary of our RSU activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	762	$	57.95	846	$	51.53	534	$	43.24
Granted	296	67.03		258	71.62		556	56.36
Vested	(325)	57.56		(318)	52.08		(226)	44.08
Forfeited	(19)	62.96		(24)	56.78		(18)	48.27
Outstanding—end of year	714	$	61.74	762	$	57.95	846	$	51.53

Assumptions Of Stock Compensation Plans

These fair values were computed using the following range of assumptions for the years ended November 30:

	2020		2019		2018
Risk-free interest rates	0.0 - 0.6%		2.2 - 2.5%		1.7 - 2.9%
Dividend yield	1.8	%	1.5	%	2.0	%
Expected volatility	22.8	%	17.4%		18.4%
Expected lives	7.9 years		7.5 years		7.6 years

These fair values were computed using the following range of assumptions:

Risk-free interest rates	0.85	%
Dividend yield	1.5	%
Expected volatility	21.2	%
Expected lives	5.6 - 6.2 years

Summary Of Stock Option Activity

A summary of our stock option activity for the years ended November 30 follows:

(shares in millions)	2020			2019			2018
	Shares	Weighted-     average     exercise     price		Shares	Weighted- average exercise price		Shares	Weighted- average exercise price
Beginning of year	5.2	$	48.09	7.2	$	41.30	9.6	$	35.96
Granted	0.7	69.31		0.6	73.70		0.8	52.98
Exercised	(1.4)	41.01		(2.6)	35.54		(3.2)	27.64
Outstanding—end of year	4.5	53.56		5.2	48.09		7.2	41.30
Exercisable—end of year	3.2	$	47.76	3.8	$	43.31	5.6	$	38.27

Summary Of Our Stock Options Outstanding And Exercisable

A summary of our stock options outstanding and exercisable at November 30, 2020 follows:

(shares in millions)	Options outstanding				Options exercisable
Range of exercise price	Shares	Weighted- average remaining life (yrs.)	Weighted- average exercise price		Shares	Weighted- average remaining life (yrs.)	Weighted-   average   exercise   price
$23.00 - $37.50	0.5	2.8	$	33.99	0.5	2.8	$	33.99
$37.51 - $56.00	2.7	5.9	48.36		2.5	5.8	47.97
$56.01 - $74.50	1.3	8.9	71.27		0.2	8.3	73.64
	4.5	6.5	$	53.56	3.2	5.6	$	47.76

Schedule of Long-term Performance Plan Activity

A summary of the LTPP award activity for the years ended November 30 follows:

(shares in thousands)	2020			2019			2018
	Shares	Weighted-     average     price		Shares	Weighted- average price		Shares	Weighted- average price
Beginning of year	392	$	57.98	436	$	41.78	440	$	42.16
Granted	130	86.14		136	75.26		172	50.95
Vested	(88)	44.98		(114)	43.20		(120)	37.01
Performance adjustment	(44)	50.95		(66)	44.98		(52)	43.20
Forfeited	(8)	65.68		—	—		(4)	48.71
Outstanding—end of year	382	$	71.20	392	$	57.98	436	$	41.78

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Income Taxes (Tables)

12 Months Ended

Nov. 30, 2020

Income Tax Disclosure [Abstract]

Provision For Income Taxes

The provision for income taxes for the years ended November 30 consists of the following:

(millions)	2020		2019		2018
Income taxes
Current
Federal	$	98.3	$	52.3	$	92.9
State	14.8		10.7		11.0
International	73.0		73.5		78.7
	186.1		136.5		182.6
Deferred
Federal	4.6		26.4		(340.3)
State	0.5		3.6		1.5
International	(16.3)		(9.1)		(1.1)
	(11.2)		20.9		(339.9)
Total income tax expense (benefit)	$	174.9	$	157.4	$	(157.3)

Components Of Income From Consolidated Operations Before Income Taxes

The components of income from consolidated operations before income taxes for the years ended November 30 follow:

(millions)	2020		2019		2018
Pretax income
United States	$	624.3	$	569.0	$	492.2
International	257.2		250.2		249.1
	$	881.5	$	819.2	$	741.3

Reconciliation Of The U.S. Federal Statutory Rate With The Effective Tax Rate

A reconciliation of the U.S. federal statutory rate with the effective tax rate for the years ended November 30 follows:

	2020		2019		2018
Federal statutory tax rate	21.0	%	21.0	%	22.2	%
State income taxes, net of federal benefits	1.5		1.6		1.5
International tax at different effective rates	1.3		1.6		0.4
U.S. tax on remitted and unremitted earnings	0.8		0.5		0.6
Stock compensation expense	(1.5)		(2.8)		(2.9)
U.S. manufacturing deduction	—		—		(0.8)
Changes in prior year tax contingencies	(0.3)		(0.3)		(0.8)
Non-recurring benefit of U.S. Tax Act	—		(0.2)		(40.7)
Valuation allowance release	(1.4)		—		—
Intra-entity asset transfer	(1.1)		(1.8)		—
Other, net	(0.5)		(0.4)		(0.7)
Total	19.8	%	19.2	%	(21.2)	%

Schedule Of Deferred Tax Assets And Liabilities

Deferred tax assets and liabilities are comprised of the following as of November 30:

(millions)	2020		2019
Deferred tax assets
Employee benefit liabilities	$	121.9	$	103.3
Other accrued liabilities	40.3		32.3
Inventory	10.6		7.5
Tax loss and credit carryforwards	59.7		46.8
Operating lease liabilities	33.0		—
Other	47.9		48.1
Valuation allowance	(31.5)		(32.4)
	281.9		205.6
Deferred tax liabilities
Depreciation	89.1		82.6
Intangible assets	815.1		770.5
Lease ROU assets	32.2		—
Other	4.5		5.5
	940.9		858.6
Net deferred tax liability	$	(659.0)	$	(653.0)

Activity Related To Our Gross Unrecognized Tax Benefits

The following table summarizes the activity related to our gross unrecognized tax benefits for the years ended November 30:

(millions)	2020		2019		2018
Balance at beginning of year	$	32.0	$	27.9	$	39.1
Additions for current year tax positions	7.8		6.6		6.5
Additions for prior year tax positions	2.5		0.6		0.3
Reductions for prior year tax positions	—		(0.3)		(6.9)
Settlements	—		—		—
Statute expirations	(4.2)		(2.5)		(9.1)
Foreign currency translation	1.2		(0.3)		(2.0)
Balance at November 30	$	39.3	$	32.0	$	27.9

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Capital Stock, Earnings Per Share And Stock Issuance (Tables)

12 Months Ended

Nov. 30, 2020

Earnings Per Share [Abstract]

Reconciliation Of Average Shares Outstanding

The reconciliation of shares outstanding used in the calculation of basic and diluted earnings per share for the years ended November 30 follows:

(millions)	2020	2019	2018
Average shares outstanding—basic	266.5	265.1	263.1
Effect of dilutive securities:
Stock options/RSUs/LTPP	2.6	3.0	3.4
Average shares outstanding—diluted	269.1	268.1	266.5

Schedule Of Antidilutive Securities

The following table sets forth the stock options and RSUs for the years ended November 30 which were not considered in our earnings per share calculation since they were antidilutive:

(millions)	2020	2019	2018
Antidilutive securities	0.1	0.2	0.4

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Business Segments And Geographic Areas (Tables)

12 Months Ended

Nov. 30, 2020

Segment Reporting Information, Profit (Loss) [Abstract]

Schedule Of Segment Reporting Information

(millions)	Consumer		Flavor Solutions		Total segments		Corporate & other		Total
2020
Net sales	$	3,596.7	$	2,004.6	$	5,601.3	$	—	$	5,601.3
Operating income excluding special charges	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 and transaction and integration expenses	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

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

A reconciliation of operating income excluding special charges and, for 2020 and 2018, transaction and integration expenses, to operating income for 2020, 2019 and 2018 is as follows:

(millions)	Consumer		Flavor Solutions		Total
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
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

Net Sales And Long-Lived Assets Geographic Areas

We have net sales and long-lived assets in the following geographic areas:

(millions)	United States		EMEA		Other countries		Total
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
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

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Supplemental Financial Statement Data (Tables)

12 Months Ended

Nov. 30, 2020

Supplemental Financial Statement Data [Abstract]

Supplemental Income Statement, Balance Sheet And Cash Flow Information

Supplemental consolidated information with respect to our income statement, balance sheet and cash flow follow:

For the year ended November 30 (millions)	2020		2019		2018
Other income, net
Pension and other postretirement benefit income	$	10.0	17.7		12.2
Interest income	7.8		10.1		7.1
Other	(0.2)		(1.1)		5.5
	$	17.6	$	26.7	$	24.8

At November 30 (millions)	2020		2019
Inventories
Finished products	$	499.3	$	413.3
Raw materials and work-in-process	533.3		387.9
	$	1,032.6	$	801.2
Prepaid expenses	$	38.0	$	36.0
Other current assets	60.9		54.7
	$	98.9	$	90.7
Property, plant and equipment
Land and improvements	$	87.2	$	67.5
Buildings (including capital lease)	698.2		658.5
Machinery, equipment and other	1,102.9		1,007.8
Construction-in-progress	125.5		85.8
Accumulated depreciation	(985.4)		(867.0)
	$	1,028.4	$	952.6
Other long-term assets
Investments in affiliates	$	193.0	$	186.0
Long-term investments	129.9		124.4
Right of use asset	136.8		—
Software, net of accumulated amortization $281.8 for 2020 and $275.0 for 2019	116.0		76.4
Other	176.3		120.3
	$	752.0	$	507.1
Other accrued liabilities
Payroll and employee benefits	$	260.7	$	184.9
Sales allowances	183.3		137.2
Dividends payable	90.7		82.4
Other	328.9		204.6
	$	863.6	$	609.1
Other long-term liabilities
Pension	$	286.1	$	226.9
Postretirement benefits	66.2		62.7
Operating lease liability	103.5		—
Unrecognized tax benefits	46.0		37.6
Other	120.4		100.4
	$	622.2	$	427.6

For the year ended November 30 (millions)	2020		2019		2018
Depreciation	$	121.1	$	113.6	$	104.8
Software amortization	12.4		13.7		14.0
Interest paid	134.1		169.8		179.8
Income taxes paid	183.3		137.2		154.6

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Summary Of Significant Accounting Policies (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Dec. 01, 2019
Summary Of Significant Accounting Policies [Line Items]
Sales allowances	$ 183.3				$ 137.2				$ 183.3	$ 137.2
Operating Lease, Right-of-Use Asset	136.8								$ 136.8
Useful life									10 years
Capitalized software	116.0				76.4				$ 116.0	76.4
Research and development expense									68.6	67.3	$ 69.4
Marketing and Advertising Expense									230.3	214.6	218.7
Advertising expense									174.8	150.8	147.2
Revenues	1,557.9	$ 1,430.3	$ 1,401.1	$ 1,212.0	1,484.8	$ 1,329.2	$ 1,301.9	$ 1,231.5	5,601.3	5,347.4	5,302.8
Cost of Goods and Services Sold									3,300.9	3,202.1	3,209.5
Selling, general and administrative expense									1,281.6	1,166.8	1,163.4
Operating income	274.9	273.0	257.4	194.2	299.2	253.5	208.1	196.9	999.5	957.7	891.1
Other income, net									17.6	26.7	24.8
Operating Lease, Liability	140.8								140.8
Gross profit	660.7	$ 590.3	$ 579.5	$ 469.9	630.0	$ 539.9	$ 508.5	$ 466.9	$ 2,300.4	2,145.3	2,093.3
Minimum [Member] | Headquarters building [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)									20 years
Minimum [Member] | Machinery, Equipment And Computer Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)									3 years
Minimum [Member] | Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful life									3 years
Maximum [Member] | Headquarters building [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)									50 years
Maximum [Member] | Machinery, Equipment And Computer Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Estimated useful lives (in years)									12 years
Maximum [Member] | Software [Member]
Summary Of Significant Accounting Policies [Line Items]
Useful life									13 years
Accounting Standards Update 2017-07 [Member]
Summary Of Significant Accounting Policies [Line Items]
Other income, net									$ 10.0	17.7	12.2
Accounting Standards Update 2016-02 [Member]
Summary Of Significant Accounting Policies [Line Items]
Operating Lease, Right-of-Use Asset												$ 136.5
Operating Lease, Liability												$ 140.0
Construction in Progress [Member]
Summary Of Significant Accounting Policies [Line Items]
Capitalized software	$ 86.7				$ 44.9				86.7	44.9
Americas [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenues									3,974.9	3,711.3	3,627.5
EMEA [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenues									1,046.7	986.1	1,021.1
Asia Pacific [Member]
Summary Of Significant Accounting Policies [Line Items]
Revenues									$ 579.7	$ 650.0	$ 654.2

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Acquisitions Acquisitions (Narrative) (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Business Acquisition [Line Items]
Useful life	10 years
Goodwill	$ 4,986,300,000	$ 4,505,200,000
Intangible asset amortization expense	20,200,000	20,300,000	$ 20,600,000
Payments of contingent consideration	0	0	2,500,000
Reckitt Benckiser's Food Division [Member]
Business Acquisition [Line Items]
Working capital adjustments		4,200,000
Business Combination, Integration Related Costs			22,200,000
Payments to acquire businesses, net of cash acquired		$ 4,210,000,000
Business Acquisition, Transaction Costs			300,000
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed			$ 22,500,000
Shanghai [Member]
Business Acquisition [Line Items]
Ownership interest			10.00%
Purchase of minority interest			$ 12,700,000
Buyout of minority interest			$ 12,400,000
Cholula [Member]
Business Acquisition [Line Items]
Net sales	$ 96,000,000
Useful life	15 years
Payments to acquire businesses, net of cash acquired	$ 803,000,000.0
Goodwill, Acquired During Period	410,500,000
Indefinite-lived Intangible Assets Acquired	380,000,000.0
Finite-lived Intangible Assets Acquired	21,000,000.0
Business Acquisition, Goodwill, Expected Tax Deductible Amount	285,000,000
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Inventory	4,900,000
Business Acquisition, Transaction Costs	11,200,000
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed	35,000,000
FONA [Member]
Business Acquisition [Line Items]
Payments to acquire businesses, net of cash acquired	710,000,000
Business Acquisition, Transaction Costs	$ 1,200,000

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Acquisitions (Fair Value of Acquisition and Costs Incurred) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2018	Nov. 30, 2020	Nov. 30, 2019
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract]
Goodwill		$ 4,986.3	$ 4,505.2
Reckitt Benckiser's Food Division [Member]
Business Combination, Separately Recognized Transactions [Abstract]
Business Combination, Integration Related Costs	$ 22.2

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Acquisitions (Details) - Cholula [Member]	12 Months Ended
	Nov. 30, 2020 USD ($)
Business Acquisition [Line Items]
Goodwill, Acquired During Period	$ 410,500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill	401,000,000.0
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets	12,500,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable	(6,800,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other	(7,400,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities	(35,600,000)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other	(2,900,000)
Business Combination, Acquired Receivables, Gross Contractual Amount	15,200,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory	16,500,000
Payments to acquire businesses, net of cash acquired	$ 803,000,000.0

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Special Charges (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended			36 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2020
Special Charges [Line Items]
Special charges	$ 2.9	$ 0.1	$ 2.9	$ 1.0	$ 3.9	$ 7.7	$ 7.1	$ 2.1	$ 6.9	$ 20.8	$ 16.3
Special charges impairment											(3.0)
Special charges cash paid											(12.3)
Americas [Member]
Special Charges [Line Items]
Special charges										2.3
Employee Severance Charges [Member]
Special Charges [Line Items]
Special charges									4.1	6.2	2.0
Other exit costs [Member]
Special Charges [Line Items]
Special charges									2.8	14.6	14.3
total special charges [Member]
Special Charges [Line Items]
Special charges									6.9	20.8	16.3
Special charges cash paid									(4.8)	(16.8)
GE_Project [Member]
Special Charges [Line Items]
Business Exit Costs									1.0	10.6	7.5
GE Employee Severance Special Charges									3.8	2.1	1.0
Other Restructuring Costs									0.5	1.4
EMEA [Member]
Special Charges [Line Items]
Special charges										3.9
Consumer [Member]
Special Charges [Line Items]
Special charges									5.5	13.1	10.0
Consumer [Member] | total special charges [Member]
Special Charges [Line Items]
Special charges									5.5	13.1	10.0
Flavor Solutions [Member]
Special Charges [Line Items]
Special charges									1.4	7.7	6.3
Flavor Solutions [Member] | total special charges [Member]
Special Charges [Line Items]
Special charges									1.4	7.7	6.3
EMEA [Member] | GE_Project [Member]
Special Charges [Line Items]
Special charges									5.3
Asia Pacific [Member]
Special Charges [Line Items]
Special charges											1.6
Global [Member] | Other exit costs [Member]
Special Charges [Line Items]
Special charges impairment											(3.0)
Global [Member] | GE_Project [Member]
Special Charges [Line Items]
Special charges									1.6	14.1	11.5	$ 39.9
United States
Special Charges [Line Items]
Special charges											2.2
CHINA
Special Charges [Line Items]
Special charges											$ 1.0
Minimum [Member] | GE_Project [Member]
Special Charges [Line Items]
Special charges									60.0
Maximum [Member] | GE_Project [Member]
Special Charges [Line Items]
Special charges									65.0
Brand Names [Member]
Special Charges [Line Items]
Indefinite-lived intangible assets	$ 3,030.0				$ 2,643.0				$ 3,030.0	$ 2,643.0		$ 3,030.0

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Goodwill And Intangible Assets (Narrative) (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Goodwill [Line Items]
Goodwill	$ 4,986,300,000	$ 4,505,200,000
Intangible asset amortization expense	$ 20,200,000	20,300,000	$ 20,600,000
Amortizable intangible assets average remaining life, in years	10 years
Consumer Segment [Member]
Goodwill [Line Items]
Goodwill	$ 3,711,200,000	3,377,600,000	3,398,900,000
Goodwill, Acquired During Period	273,700,000
Flavor Solutions Segment [Member]
Goodwill [Line Items]
Goodwill	1,275,100,000	1,127,600,000	$ 1,129,000,000.0
Goodwill, Acquired During Period	136,800,000
Reckitt Benckiser's Food Division [Member]
Goodwill [Line Items]
Payments to acquire businesses, net of cash acquired		$ 4,210,000,000
Cholula [Member]
Goodwill [Line Items]
Goodwill, Acquired During Period	410,500,000
Payments to acquire businesses, net of cash acquired	803,000,000.0
Indefinite-lived Intangible Assets Acquired	380,000,000.0
Finite-lived Intangible Assets Acquired	$ 21,000,000.0
Amortizable intangible assets average remaining life, in years	15 years

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Goodwill And Intangible Assets (Schedule Of Amortized And Non-Amortized Intangible Assets) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Finite-lived intangible assets, Gross carrying amount	$ 336.8	$ 308.3
Finite-lived intangible assets, Accumulated amortization	127.4	104.3
Goodwill	4,986.3	4,505.2
Indefinite-lived intangible assets, total	8,016.3	7,148.2
Total goodwill and intangible assets, Gross carrying amount	8,353.1	7,456.5
Total goodwill and intangible assets, Accumulated amortization	127.4	104.3
Goodwill [Member]
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Goodwill	4,986.3	4,505.2
Brand Names [Member]
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	3,030.0	2,643.0
Consumer Segment [Member]
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Goodwill	3,711.2	3,377.6	$ 3,398.9
Flavor Solutions Segment [Member]
Finite Lived and Indefinite Lived Intangible Assets [Line Items]
Goodwill	$ 1,275.1	$ 1,127.6	$ 1,129.0

XML

Goodwill And Intangible Assets (Changes In The Carrying Amount Of Goodwill) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019
Goodwill [Roll Forward]
Beginning of year	$ 4,505.2
End of year	4,986.3	$ 4,505.2
Consumer Segment [Member]
Goodwill [Roll Forward]
Beginning of year	3,377.6	3,398.9
Goodwill, Acquired During Period	273.7
Foreign currency fluctuations	59.9	(21.3)
End of year	3,711.2	3,377.6
Flavor Solutions Segment [Member]
Goodwill [Roll Forward]
Beginning of year	1,127.6	1,129.0
Goodwill, Acquired During Period	136.8
Foreign currency fluctuations	10.7	(1.4)
End of year	$ 1,275.1	$ 1,127.6

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Investments In Affiliates (Narrative) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Investments in and Advances to Affiliates [Line Items]
Results of unconsolidated affiliates, percentage	100.00%
Unconsolidated Affiliates [Member]
Investments in and Advances to Affiliates [Line Items]
Royalty Income, Nonoperating	$ 19.5	$ 19.0	$ 18.5
Percent of income from unconsolidated operations from joint ventures	75.00%	72.00%	76.00%
McCormick de Mexico, S.A. de C.V. [Member]
Investments in and Advances to Affiliates [Line Items]
Percentage ownership interest in unconsolidated affiliates businesses	50.00%
Equity Method Investment, Ownership Percentage	50.00%

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Investments In Affiliates (Summarized Annual And Year-End Information Of Unconsolidated Affiliates) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Investments in and Advances to Affiliates [Line Items]
Revenues	$ 1,557.9	$ 1,430.3	$ 1,401.1	$ 1,212.0	$ 1,484.8	$ 1,329.2	$ 1,301.9	$ 1,231.5	$ 5,601.3	$ 5,347.4	$ 5,302.8
Gross profit	660.7	$ 590.3	$ 579.5	$ 469.9	630.0	$ 539.9	$ 508.5	$ 466.9	2,300.4	2,145.3	2,093.3
Assets, Current	2,083.6				1,550.2				2,083.6	1,550.2
Liabilities, Current	3,046.5				2,154.4				3,046.5	2,154.4
Unconsolidated Affiliates [Member]
Investments in and Advances to Affiliates [Line Items]
Revenues									870.3	863.0	807.9
Gross profit									318.0	316.2	290.5
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest									93.7	90.5	78.9
Assets, Current	421.7				426.3				421.7	426.3	342.1
Assets, Noncurrent	126.2				134.0				126.2	134.0	129.9
Liabilities, Current	192.3				223.8				192.3	223.8	172.1
Liabilities, Noncurrent	$ 12.2				$ 9.2				$ 12.2	$ 9.2	$ 10.0

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Financing Arrangements (Components Of Outstanding Debt) (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Aug. 17, 2017
Schedule of Short Term and Long Term Debt [Line Items]
Commercial paper	$ 845,800,000	$ 575,300,000
Other	40,900,000	25,400,000
Short-term borrowings, total	$ 886,700,000	$ 600,700,000
Weighted-average interest rate of short-term borrowings at year-end	0.30%	2.50%
Other	$ 195,800,000	$ 171,600,000
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net	16,900,000	(3,100,000)
Long-term debt	4,017,700,000	3,723,500,000
Less current portion	(263,900,000)	(97,700,000)
Long-term debt, excluding current maturities	3,753,800,000	3,625,800,000
Debt Instrument, Unamortized Discount	24,400,000	23,600,000
Interest Rate Derivatives, at Fair Value, Net	41,300,000	20,500,000
Letter Of Credit [Member]
Schedule of Short Term and Long Term Debt [Line Items]
Letters of Credit Outstanding, Amount	32,200,000	32,200,000
Notes Payable, Other Payables | 3.90% notes due 7/8/2021(1)
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000.0	250,000,000.0
Stated Note interest rate	3.90%
Notes Payable, Other Payables | 2.70% notes due 8/15/2022
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 750,000,000.0	750,000,000.0
Stated Note interest rate	2.70%
Notes Payable, Other Payables | 3.50% notes due 8/19/2023(3)
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000.0	250,000,000.0
Stated Note interest rate	3.50%
Notes Payable, Other Payables | 3.15% notes due 8/15/2024
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 700,000,000.0	700,000,000.0
Stated Note interest rate	3.15%
Notes Payable, Other Payables | 3.25% notes due 11/15/2025(4)
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000.0	250,000,000.0
Weighted average fixed rate	3.45%
Stated Note interest rate	3.25%
Debt Instrument Basis Spread Increase On Variable Rate	1.22%
Debt Instrument, effective interest rate	1.44%
Notes Payable, Other Payables | 3.40% notes due 8/15/2027(5)
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 750,000,000.0	750,000,000.0
Weighted average fixed rate	3.44%
Stated Note interest rate	3.40%
Debt Instrument Basis Spread Increase On Variable Rate	0.685%
Debt Instrument, effective interest rate	0.91%
Notes Payable, Other Payables | 2.50% notes due 4/15/2030
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 500,000,000.0
Notes Payable, Other Payables | 4.20% notes due 8/15/2047
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 300,000,000.0	300,000,000.0
Stated Note interest rate	4.20%
Notes Payable, Other Payables | 7.63%–8.12% notes due 2024
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 55,000,000.0	55,000,000.0
Notes Payable, Other Payables | Notes Issued In July 2011
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000
Weighted average fixed rate	4.01%
Notes Payable, Other Payables | August 2013
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000
Weighted average fixed rate	3.30%
Notes Payable, Other Payables | Interest Rate Swap [Member] | 3.40% notes due 8/15/2027(5)
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 250,000,000
Notes Payable, Other Payables | Interest Rate Swap [Member] | 5.20% Notes Due 2015
Schedule of Short Term and Long Term Debt [Line Items]
Notes outstanding	$ 100,000,000
Bridge Loan
Schedule of Short Term and Long Term Debt [Line Items]
Quarterly installment payments, percentage	2.50%
Bridge Loan | Term loan due 8/17/2022(2)
Schedule of Short Term and Long Term Debt [Line Items]
Long-term debt	$ 0	$ 250,000,000.0	$ 750,000,000.0
Stated Note interest rate			2.70%
Twenty Seventeen Term Loan One
Schedule of Short Term and Long Term Debt [Line Items]
Notes Payable	$ 750.0
Minimum [Member] | Notes Payable, Other Payables | 7.63%–8.12% notes due 2024
Schedule of Short Term and Long Term Debt [Line Items]
Stated Note interest rate	7.63%
Maximum [Member] | Notes Payable, Other Payables | 7.63%–8.12% notes due 2024
Schedule of Short Term and Long Term Debt [Line Items]
Stated Note interest rate	8.12%

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Financing Arrangements (Narrative) (Details) - USD ($)		12 Months Ended
	Aug. 17, 2017	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Debt Instrument [Line Items]
Long-term debt		$ 4,017,700,000	$ 3,723,500,000
Proceeds from issuance of senior long-term debt				$ 2,479,300,000
Net proceeds from issuance of notes		527,000,000.0	0	25,900,000
Guarantees outstanding		700,000
Operating leases, rent expense			48,100,000	58,500,000
headquarters building [Member]
Debt Instrument [Line Items]
Capital leases, balance sheet, assets by major class, net		116,100,000	124,700,000
Amortization		130,900,000	137,700,000
Capital Lease Obligations, Current		7,100,000	6,800,000
Capital Leases, Income Statement, Amortization Expense		8,700,000	8,700,000	5,200,000
Operating leases, rent expense				900,000
Capital Lease Obligations, Noncurrent		123,800,000	130,900,000
headquarters building [Member]
Debt Instrument [Line Items]
Operating leases, rent expense				900,000
Letter Of Credit [Member]
Debt Instrument [Line Items]
Total unused capacity		13,800,000
Letters of Credit Outstanding, Amount		$ 32,200,000	32,200,000
Notes Payable, Other Payables | 3.25% notes due 11/15/2025(4)
Debt Instrument [Line Items]
Debt Instrument, effective interest rate		1.44%
Notes outstanding		$ 250,000,000.0	250,000,000.0
Stated Note interest rate		3.25%
Weighted average fixed rate		3.45%
Notes Payable, Other Payables | August 2013
Debt Instrument [Line Items]
Notes outstanding		$ 250,000,000
Weighted average fixed rate		3.30%
Line of Credit [Member]
Debt Instrument [Line Items]
Credit facility		$ 154,200,000
Maximum borrowing capacity		316,600,000
Total unused capacity		212,800,000
Committed credit facilities, fee		$ 1,300,000
Bridge Loan
Debt Instrument [Line Items]
Quarterly installment payments, percentage		2.50%
Bridge Loan | Term Loan Due Two Thousand Forty Seven [Member]
Debt Instrument [Line Items]
Long-term debt	$ 300,000,000.0
Stated Note interest rate	4.20%
Bridge Loan | Term loan due 8/17/2022(2)
Debt Instrument [Line Items]
Long-term debt	$ 750,000,000.0	$ 0	250,000,000.0
Stated Note interest rate	2.70%
Debt instrument, term	5 years
Bridge Loan | Term Loan Due Two Thousand Twenty Four [Member]
Debt Instrument [Line Items]
Long-term debt	$ 700,000,000.0
Stated Note interest rate	3.15%
Bridge Loan | Term Loan Due Two Thousand Twenty Seven [Member]
Debt Instrument [Line Items]
Long-term debt	$ 750,000,000.0
Stated Note interest rate	3.40%
Bridge Loan | Term Loan Due Two Thousand Twenty [Member]
Debt Instrument [Line Items]
Debt instrument, term	3 years
Senior Notes [Member]
Debt Instrument [Line Items]
Notes outstanding	$ 2,500,000,000
2.5% Notes due April 2030 [Member]
Debt Instrument [Line Items]
Net proceeds from issuance of notes		495,000,000.0
Notes Payable		$ 500,000,000.0
Twenty Seventeen Term Loan Two [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		1.25%
Quarterly installment payments, percentage		2.50%
Notes Payable		$ 750,000,000
Repayments of Debt		250,000,000.0	306,300,000	175,000,000.0
RB Foods Term Loans [Member]
Debt Instrument [Line Items]
Net proceeds from issuance of notes		$ 1,498,300,000
Twenty Seventeen Term Loan One
Debt Instrument [Line Items]
Basis spread on variable rate		1.125%
Notes Payable		$ 750.0
Repayments of Debt			$ 130,000,000.0	$ 370,000,000.0
Interest Rate Swap [Member] | Notes Payable, Other Payables | 5.20% Notes Due 2015
Debt Instrument [Line Items]
Notes outstanding		100,000,000
Revolving Credit Facility [Member] | Credit Facility Expiring August 2022 [Member]
Debt Instrument [Line Items]
Credit facility		$ 1,000,000,000.0
Basis spread on variable rate		1.25%
Debt instrument, term		5 years
Revolving Credit Facility [Member] | Credit Facility Expiring December 2021 [Member]
Debt Instrument [Line Items]
Credit facility		$ 1,000,000,000.0
Basis spread on variable rate		1.25%
Revolving Credit Facility [Member] | Maximum [Member] | Credit Facility Expiring August 2022 [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		1.75%
Revolving Credit Facility [Member] | Maximum [Member] | Credit Facility Expiring December 2021 [Member]
Debt Instrument [Line Items]
Basis spread on variable rate		1.75%

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Financing Arrangements (Maturities Of Long-Term Debt) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Financing Arrangements [Abstract]
2020	$ 263.9	$ 97.7
2021	765.0
2022	265.2
2023	791.9
2024	271.4
Thereafter	$ 1,643.4

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Leases - Components of Lease Expense (Details) $ in Millions	3 Months Ended
	Nov. 30, 2020 USD ($)
Leases [Abstract]
Operating lease cost	$ 41.2
Amortization of ROU assets	9.0
Interest on lease liabilities	4.5
Net lease cost	$ 54.7

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Leases - Narrative (Details) - USD ($)	12 Months Ended
	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2020
Lessee, Lease, Description [Line Items]
Operating leases, rent expense	$ 48,100,000	$ 58,500,000
Distribution Facility
Lessee, Lease, Description [Line Items]
Capital leases, balance sheet, assets by major class, net			$ 315,000,000
Residual value of leased asset			$ 0.75

XML

Leases - Supplemental Information - (Details) $ in Millions	Nov. 30, 2020 USD ($)
Leases [Abstract]
Operating Lease, Right-of-Use Asset	$ 136.8
Finance lease ROU assets	120.7
Total leased assets	257.5
Current operating lease liabilities	37.3
Current finance lease liabilities	7.3
Noncurrent operating lease liabilities	103.5
Noncurrent finance lease liabilities	125.5
Total lease liabilities	$ 273.6
Operating leases, weighted-average remaining lease term (years)	5 years 7 months 6 days
Operating leases, weighted-average discount rate (percent)	1.90%
Finance leases, weighted-average remaining lease term (years)	13 years 10 months 24 days
Finance leases, weighted-average discount rate (percent)	3.30%
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	us-gaap:OtherAssetsNoncurrent
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:OtherAccruedLiabilitiesCurrentAndNoncurrent
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	us-gaap:LongTermDebtCurrent
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List]	us-gaap:OtherLiabilitiesNoncurrent

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Leases - Maturities (Details) $ in Millions	Nov. 30, 2020 USD ($)
Leases, Operating [Abstract]
2021	$ 39.4
2022	29.2
2023	22.3
2024	15.3
2025	12.6
Thereafter	28.8
Total lease payments	147.6
Less: Imputed interest	6.8
Operating Lease, Liability	140.8
Lessee, Finance Lease, Description [Abstract]
2021	11.4
2022	11.4
2023	11.4
2024	11.5
2025	11.7
Thereafter	114.0
Total lease payments	171.4
Less: Imputed interest	38.6
Total lease liabilities	132.8
2021	50.8
2022	40.6
2023	33.7
2024	26.8
2025	24.3
Thereafter	142.8
Total lease payments	319.0
Less: Imputed interest	45.4
Total lease liabilities	$ 273.6

XML

Leases - Supplemental Cash Flow Information (Details) $ in Millions	12 Months Ended
	Nov. 30, 2020 USD ($)
Leases [Abstract]
Operating cash flows used for operating leases	$ 41.5
Operating cash flows used for finance leases	4.5
Financing cash flows used for finance leases	6.9
ROU assets obtained in exchange for lease liabilities	$ 36.6

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Financial Instruments (Narrative) (Details)	12 Months Ended	36 Months Ended
	Nov. 30, 2019 USD ($)	Nov. 30, 2020 USD ($)	Nov. 30, 2020 GBP (£)	Nov. 30, 2020 EUR (€)	Nov. 30, 2018	Nov. 30, 2017 USD ($)
Derivative [Line Items]
Long-term debt	$ 3,723,500,000	$ 4,017,700,000
Other comprehensive income (loss) expected to be reclassified in income in next 12 months		700,000
Fair Value, Concentration of Risk, Accounts Receivable		0.10
Derivative Asset, Fair Value, Gross Asset	27,400,000	44,500,000
Foreign Exchange Contracts [Member]
Derivative [Line Items]
Investment Owned, Foreign Currency Contract, Current Value	489,200,000	383,800,000
Foreign Exchange Contracts [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	293,100,000	$ 27,500,000
Interest Rate Swap [Member]
Derivative [Line Items]
Interest on interest rate swap contracts					3.25%	3.25%
Derivative Instrument Basis Spread Increase On Variable Rate		1.22%
Derivative, Notional Amount						$ 100,000,000
Interest Rate Contracts [Member] | Other Current Assets [Member]
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 350,000,000.0	$ 350,000,000.0
Maximum [Member]
Derivative [Line Items]
Maturity period for remaining foreign currency contracts (in months)	18 months
Minimum [Member]
Derivative [Line Items]
Maturity period for remaining foreign currency contracts (in months)	1 month
3.25% notes due 11/15/2025(4)
Derivative [Line Items]
Medium-term notes due						$ 250,000,000
3.40% notes due 8/15/2027(5)
Derivative [Line Items]
Stated Note interest rate		3.40%	3.40%	3.40%
3.40% notes due 8/15/2027(5) | Interest Rate Swap II [Member] | Treasury Lock [Member]
Derivative [Line Items]
Interest on interest rate swap contracts		3.40%	3.40%	3.40%
Derivative, Basis Spread on Variable Rate		0.685%	0.685%	0.685%
Derivative, Notional Amount		$ 250,000,000
3.40% notes due 8/15/2027(5) | Interest Rate Swap [Member] | Treasury Lock [Member]
Derivative [Line Items]
Notes Payable		750,000,000
Derivative, Notional Amount		$ 250,000,000
Notes Payable, Other Payables | 3.25% notes due 11/15/2025(4)
Derivative [Line Items]
Stated Note interest rate		3.25%	3.25%	3.25%
Fair Value Hedges [Member] | Foreign Exchange Contracts [Member]
Derivative [Line Items]
Investment Owned, Foreign Currency Contract, Current Value	$ 357,500,000	$ 212,300,000
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract I [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset		250,000,000
Derivative, Collateral, Obligation to Return Cash | £			£ 194,100,000
Derivative, Notional Amount		$ 250,000,000
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract II [Member]
Derivative [Line Items]
Derivative Asset, Fair Value, Gross Asset | £			194,100,000
Derivative, Collateral, Obligation to Return Cash | €				€ 221,800,000
Derivative, Notional Amount | £			£ 194,100,000
United States LIBOR [Member] | Net Investment Hedging [Member] | Cross Currency Interest Rate Contract I [Member]
Derivative [Line Items]
Derivative, Variable Interest Rate		0.685%	0.685%	0.685%
Great Britain LIBOR [Member] | Net Investment Hedging [Member] | Cross Currency Interest Rate Contract I [Member]
Derivative [Line Items]
Derivative, Variable Interest Rate		0.74%	0.74%	0.74%
Great Britain LIBOR [Member] | Net Investment Hedging [Member] | Cross Currency Interest Rate Contract II [Member]
Derivative [Line Items]
Derivative, Variable Interest Rate		0.74%	0.74%	0.74%
EURIBOR [Member] | Net Investment Hedging [Member] | Cross Currency Interest Rate Contract II [Member]
Derivative [Line Items]
Derivative, Variable Interest Rate		0.808%	0.808%	0.808%

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Financial Instruments (Fair Values Of Derivative Instruments) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2017
Derivatives, Fair Value [Line Items]
Fair Value of Interest rate contracts	$ 41.3	$ 20.5
Fair Value of Asset Derivatives	44.5	27.4
Fair Value of Liability Derivatives	27.0	3.6
Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Derivative, Fixed Interest Rate			3.25%	3.25%
Foreign Exchange Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	27.5	293.1
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		3.3
Foreign Exchange Contracts [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	1.4
Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total notional amount of interest rate swap contracts	356.3	196.1
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		3.6
Foreign Exchange Contracts [Member] | Other Accrued Liabilities [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	8.2
Cross Currency Interest Rate Contract [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total notional amount of interest rate swap contracts	524.4	0.0
Cross Currency Interest Rate Contract [Member] | Other Long-term Investments [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	0.0	495.5
Cross Currency Interest Rate Contract [Member] | Assets [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	0.0	3.2
Cross Currency Interest Rate Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	18.8	0.0
Interest Rate Contracts [Member] | Other Current Assets [Member]
Derivatives, Fair Value [Line Items]
Derivative Asset, Notional Amount	350.0	350.0
Fair Value of Interest rate contracts		20.9
Interest Rate Contracts [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member]
Derivatives, Fair Value [Line Items]
Fair Value of Interest rate contracts	43.1	20.9
Interest Rate Contracts [Member] | Other Accrued Liabilities [Member]
Derivatives, Fair Value [Line Items]
Total notional amount of interest rate swap contracts	0.0	0.0
Interest rate derivatives	$ 0.0	$ 0.0

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Financial Instruments (Fair Value Hedges) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Derivative Instruments, Gain (Loss) [Line Items]
Other income, net	$ 17.6	$ 26.7	$ 24.8
Net Investment Hedging [Member] | Cross Currency Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax	(20.8)	1.1
Net Investment Hedging [Member] | Interest Expense [Member] | Cross Currency Interest Rate Contract [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from AOCI	3.1	5.4
Fair Value Hedges [Member] | Interest Expense [Member] | Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest expense	5.2	0.0	(0.1)
Fair Value Hedges [Member] | Other Income [Member] | Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other income, net	(4.0)	0.2	(2.9)
Fair Value Hedges [Member] | Other Income [Member] | Loans Payable [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Other income, net	$ 3.0	$ (0.9)	$ 2.7

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Financial Instruments (Cash Flow Hedges) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	$ 1.9	$ (0.2)	$ 2.6
Gain (loss) reclassified from AOCI	2.1	2.1	(2.8)
Cash Flow Hedging [Member] | Interest Rate Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	0.0	0.0	0.0
Cash Flow Hedging [Member] | Interest Rate Contracts [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from AOCI	0.5	0.5	0.5
Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) recognized in OCI	1.9	(0.2)	2.6
Cash Flow Hedging [Member] | Foreign Exchange Contracts [Member] | Cost Of Goods Sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) reclassified from AOCI	$ 1.6	1.6	$ (3.3)
Other Accrued Liabilities [Member] | Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		3.6
Other Current Assets [Member] | Foreign Exchange Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		$ 3.3

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Financial Instruments (Carrying Amount And Fair Value Of Financial Instruments) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Derivative [Line Items]
Long-term investments, Carrying amount	$ 129.9	$ 124.4
Long-term investments, Fair value	129.9	124.4
Long-term debt, Carrying amount	4,017.7	3,723.5
Long-term debt, Fair value	4,357.1	3,859.0
Interest Rate Derivatives, at Fair Value, Net	41.3	20.5
Other Current Assets [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Interest Rate Derivatives, at Fair Value, Net		20.9
Other Current Assets [Member] | Foreign Exchange Contracts [Member]
Derivative [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		3.3
Other Accrued Liabilities [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Interest rate derivatives	0.0	0.0
Other Accrued Liabilities [Member] | Foreign Exchange Contracts [Member]
Derivative [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net		3.6
Fair Value, Inputs, Level 1 [Member]
Derivative [Line Items]
Long-term debt, Fair value	4,161.3	3,437.5
Fair Value, Inputs, Level 2 [Member]
Derivative [Line Items]
Long-term debt, Fair value	195.8	421.5
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | Interest Rate Contracts [Member]
Derivative [Line Items]
Interest Rate Derivatives, at Fair Value, Net	43.1	$ 20.9
Fair Value, Measurements, Recurring [Member] | Other Current Assets [Member] | Foreign Exchange Contracts [Member]
Derivative [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	1.4
Fair Value, Measurements, Recurring [Member] | Other Accrued Liabilities [Member] | Foreign Exchange Contracts [Member]
Derivative [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	$ 8.2

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Fair Value Measurements (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2017
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	$ 423.6	$ 155.4	$ 96.6	$ 186.8
Interest Rate Derivatives, at Fair Value, Net	41.3	20.5
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents		155.4
Insurance contracts	126.0	121.7
Bonds and other long-term investments	3.9	2.7
Foreign currency derivatives		3.3
Total	598.0	307.2
Foreign currency derivatives		3.6
Total	27.0	3.6
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	423.6	155.4
Insurance contracts	0.0	0.0
Bonds and other long-term investments	3.9	2.7
Interest Rate Derivative Assets, at Fair Value	0.0
Foreign currency derivatives	0.0
Total	427.5	158.1
Foreign currency derivatives	0.0
Total	0.0	0.0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents	0.0	0.0
Insurance contracts	126.0	121.7
Bonds and other long-term investments	0.0	0.0
Interest Rate Derivative Assets, at Fair Value	43.1	20.9
Foreign currency derivatives	1.4	3.3
Total	170.5	149.1
Foreign currency derivatives	8.2	3.6
Total	27.0	3.6
Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cross Currency Contracts, Fair Value		3.2
Cross Currency Interest Rate Contract [Member] | Liability [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	18.8	0.0
Cross Currency Interest Rate Contract [Member] | Assets [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net	0.0	3.2
Interest Rate Contracts [Member] | Other Current Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Derivatives, at Fair Value, Net		20.9
Interest Rate Contracts [Member] | Other Current Assets [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest Rate Derivatives, at Fair Value, Net	$ 43.1	$ 20.9

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Accumulated Other Comprehensive Income-Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income, Other, Net of Tax	$ 92.5	$ 24.9
Foreign currency translation adjustment	(174.0)	(266.5)
Unamoritzed value of settled interest rate swaps	(0.1)	0.3
Pension and other postretirement costs	(296.3)	(234.0)
Accumulated other comprehensive loss, net of tax	(470.8)	(500.2)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	(2.1)	(2.1)	$ 2.8
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax	0.5	0.4	(0.6)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax	(1.6)	(1.7)	2.2
Other Comprehensive (Income) Loss, Defined Benefit Plan, Prior Service Cost (Credit), Reclassification Adjustment from AOCI, before Tax	(4.0)	(8.0)	(8.5)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, before Tax	11.0	2.6	12.6
Other Comprehensive (Income) Loss, Defined Benefit Plan, Reclassification Adjustment from AOCI, before Tax	7.0	(5.4)	4.1
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax	(1.6)	1.2	(1.0)
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax	5.4	(4.2)	3.1
Cross Currency Interest Rate Contract [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Foreign currency translation adjustment	20.8	0.9
Foreign Exchange Contracts [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	(0.4)	0.0
Foreign Exchange Contracts [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	(1.6)	(1.6)	3.3
Interest Rate Contracts [Member] | Cash Flow Hedging [Member] | Interest Expense [Member]
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax	$ (0.5)	$ (0.5)	$ (0.5)

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Employee Benefit And Retirement Plans (Narrative) (Details) - USD ($) shares in Millions, $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Feb. 28, 2019
Employee Benefit And Retirement Plans [Line Items]
Unrecognized actuarial losses and unrecognized prior service credit, before tax	$ 383.4
Unrecognized actuarial losses and unrecognized prior service credit, net of tax	296.3	$ 234.0
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax				$ 18.0
Expected actuarial losses, net of prior service credit, before tax	13.5
Expected actuarial losses, net of prior service credit, net of tax	9.7
Amortization of net actuarial loss	13.2
Amortization of prior service costs credits	0.3
Fair value of plan assets at beginning of year	0.0	0.0	$ 0.0
Dividends paid	$ 330.1	$ 302.2	273.4
Assumed annual increase in cost of health care benefits	6.80%	6.50%
Ultimate health care cost trend rate	4.50%	4.50%
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment			17.5
Defined Contribution Retirement Plans [Member]
Employee Benefit And Retirement Plans [Line Items]
Percentage of participant contribution considered for first condition of plan	100.00%
Percentage of participant salary under first condition of plan	3.00%
Percentage of participant contribution considered for second condition of plan	66.70%
Percentage of participant salary under second condition of plan	3.00%
Defined Contribution Plan, Employers Matching Contribution, Annual Vesting Percentage	3.00%
Defined Contribution Plan, Cost	$ 30.8	$ 28.2	15.5
Dividends paid	3.8	3.9
Supplemental Employee Retirement Plan [Member]
Employee Benefit And Retirement Plans [Line Items]
Benefit obligation	110.5	105.4
Non-current pension asset	86.4	85.5
Other Postretirement Benefits [Member]
Employee Benefit And Retirement Plans [Line Items]
Benefit obligation	$ 70.7	$ 67.2	62.9
Age after which employees retire	55 years
Minimum number of years in service	5 years
Assumed discount rate	2.30%	3.10%
Employer contributions	$ 4.3	$ 3.9
U.S. Equity Securities [Member]
Employee Benefit And Retirement Plans [Line Items]
Fair value of McCormick stock held in plan assets	$ 50.6	$ 64.4
Number of shares of McCormick stock held in plan assets	0.6	0.8
Percentage of pension plan assets in equity securities	7.40%	9.60%
Defined Benefit Plan, Equity Securities, US [Member]
Employee Benefit And Retirement Plans [Line Items]
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held	$ 0.9	$ 0.9
Defined Benefit Plan, Equity Securities [Member] | Defined Contribution Retirement Plans [Member]
Employee Benefit And Retirement Plans [Line Items]
Fair value of McCormick stock held in plan assets	$ 267.3
Number of shares of McCormick stock held in plan assets	2.9
United States
Employee Benefit And Retirement Plans [Line Items]
Unrecognized actuarial losses and unrecognized prior service credit, net of tax	$ 235.5	183.9
Benefit obligation	958.0	884.8	752.6
Fair value of plan assets at beginning of year	688.2	671.9	640.4
Accrued liability related to the plan	269.8	212.9
Non-current pension asset	0.0	0.0
Funded status	(269.8)	(212.9)
Accumulated benefit obligation	$ 945.1	$ 874.8
Percentage of pension plan assets in equity securities	100.00%	100.00%
Employer contributions	$ 10.4	$ 8.2
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	40.6	42.5	43.4
Foreign Plan [Member]
Employee Benefit And Retirement Plans [Line Items]
Unrecognized actuarial losses and unrecognized prior service credit, net of tax	63.7	60.1
Benefit obligation	371.7	345.6	292.9
Fair value of plan assets at beginning of year	368.7	340.9	306.5
Accrued liability related to the plan	22.6	20.3
Non-current pension asset	19.6	15.6
Funded status	(3.0)	(4.7)
Accumulated benefit obligation	$ 367.9	$ 342.2
Percentage of pension plan assets in equity securities	100.00%	100.00%
Defined Benefit Plan, Accumulated Benefit Obligation, (Increase) Decrease for Settlement and Curtailment			17.5
Employer contributions	$ 1.5	$ 3.2
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	$ 15.3	$ 16.4	$ 16.6

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Employee Benefit And Retirement Plans (Significant Assumptions Used To Determine Benefit Obligations) (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
United States
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	0.00%	0.00%	3.80%
Expected return on plan assets	6.80%	7.00%	7.30%
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase	2.90%	3.40%	3.50%
Expected return on plan assets	4.90%	5.50%	5.60%
Foreign Plan [Member] | Minimum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	0.00%	2.90%
Foreign Plan [Member] | Maximum [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	0.00%	2.90%
Funded Plan [Member] | United States
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.80%	3.40%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.40%	4.70%	4.00%
Funded Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	1.90%	2.20%
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase	2.90%	2.90%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	2.20%	3.30%	2.90%
Unfunded Plan [Member] | United States
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	2.70%	3.30%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	3.30%	4.60%	3.90%
Unfunded Plan [Member] | Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate	0.00%	0.00%
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate	0.00%	0.00%	0.00%

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Employee Benefit And Retirement Plans (Components Of Defined Benefit Plans) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 1.9	$ 1.8	$ 2.0
Interest costs	2.0	2.7	2.4
Amortization of prior service costs	(4.6)	(8.7)	(8.6)
Amortization of net actuarial loss	(0.1)	(0.9)	(0.1)
Total expense	(0.8)	(5.1)	(4.3)
United States
Defined Benefit Plan Disclosure [Line Items]
Service cost	3.2	2.1	17.0
Interest costs	29.3	34.4	31.6
Expected return on plan assets	(40.6)	(42.5)	(43.4)
Amortization of prior service costs	0.5	0.5	0.0
Amortization of net actuarial loss	7.8	2.3	9.9
Settlement/curtailment loss	0.0	0.0	0.0
Total expense	0.2	(3.2)	15.1
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	1.3	3.6	4.3
Interest costs	7.5	9.5	9.2
Expected return on plan assets	(15.3)	(16.4)	(16.6)
Amortization of prior service costs	0.1	0.2	0.1
Amortization of net actuarial loss	2.0	1.2	2.8
Settlement/curtailment loss	1.3	0.0	0.5
Total expense	$ (3.1)	$ (1.9)	$ 0.3

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Employee Benefit And Retirement Plans (Benefit Obligation, Fair Value Of Plan Assets And Reconciliation Of Defined Benefit Plans) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$ 0.0	$ 0.0
Employee contributions	2.1	0.3
Fair value of plan assets at end of year	0.0	0.0	$ 0.0
Other Postretirement Benefits [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	67.2	62.9
Service cost	1.9	1.8	2.0
Interest costs	2.0	2.7	2.4
Plan amendments	0.0	(0.4)
Actuarial loss	3.9	4.1
Benefits paid	(6.4)	(4.2)
Benefit obligation at end of year	70.7	67.2	62.9
Change in fair value of plan assets:
Employer contributions	4.3	3.9
Employee contributions	2.1	0.3
Other postretirement benefit liability	70.7	67.2
United States
Change in benefit obligation:
Benefit obligation at beginning of year	884.8	752.6
Service cost	3.2	2.1	17.0
Interest costs	29.3	34.4	31.6
Actuarial loss	82.1	134.6
Benefits paid	(41.4)	(38.9)
Benefit obligation at end of year	958.0	884.8	752.6
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	671.9	640.4
Actual return on plan assets	47.3	62.2
Employer contributions	10.4	8.2
Fair value of plan assets at end of year	688.2	671.9	640.4
Funded status	(269.8)	(212.9)
Projected benefit obligation	958.0	884.8
Accumulated benefit obligation	945.1	874.8
Fair value of plan assets	688.2	671.9
Foreign Plan [Member]
Change in benefit obligation:
Benefit obligation at beginning of year	345.6	292.9
Service cost	1.3	3.6	4.3
Interest costs	7.5	9.5	9.2
Employee contributions	0.0	0.6
Actuarial loss	19.1	51.8
Benefits paid	(14.1)	(14.7)
Expenses paid	(0.2)	(0.3)
Foreign currency impact	12.5	2.2
Benefit obligation at end of year	371.7	345.6	292.9
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	340.9	306.5
Actual return on plan assets	28.6	42.4
Employer contributions	1.5	3.2
Employee contributions	0.0	0.8
Foreign currency impact	11.8	2.7
Fair value of plan assets at end of year	368.7	340.9	$ 306.5
Funded status	(3.0)	(4.7)
Projected benefit obligation	110.4	103.9
Accumulated benefit obligation	106.5	100.4
Fair value of plan assets	$ 87.7	$ 83.6

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Employee Benefit And Retirement Plans (Amounts Recorded In Balance Sheet, Defined Benefit Pension Plans) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Defined Benefit Plan Disclosure [Line Items]
Accumulated other comprehensive loss	$ 296.3	$ 234.0
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Non-current pension asset	19.6	15.6
Accrued pension liability	22.6	20.3
Deferred income tax assets	14.3	13.3
Accumulated other comprehensive loss	63.7	60.1
United States
Defined Benefit Plan Disclosure [Line Items]
Non-current pension asset	0.0	0.0
Accrued pension liability	269.8	212.9
Deferred income tax assets	74.0	58.5
Accumulated other comprehensive loss	$ 235.5	$ 183.9

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Employee Benefit And Retirement Plans (Allocations Of Pension Plan Assets) (Details)	Nov. 30, 2020	Nov. 30, 2019
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	100.00%	100.00%
Equity securities, Target	100.00%
Foreign Plan [Member] | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	50.90%	50.40%
Equity securities, Target	53.00%
Foreign Plan [Member] | Fixed Income Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	48.30%	48.90%
Equity securities, Target	47.00%
Foreign Plan [Member] | Other Plan Asset Categories [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	0.80%	0.70%
Equity securities, Target	0.00%
United States
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	100.00%	100.00%
Equity securities, Target	100.00%
United States | Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	63.20%	63.30%
Equity securities, Target	59.00%
United States | Fixed Income Funds [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	22.00%	21.50%
Equity securities, Target	23.20%
United States | Other Plan Asset Categories [Member]
Defined Benefit Plan Disclosure [Line Items]
Equity securities, Actual	14.80%	15.20%
Equity securities, Target	17.80%

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Employee Benefit And Retirement Plans (Fair Value Of Pension Plan Assets) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	$ 0.0	$ 0.0	$ 0.0
United States
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	688.2	671.9	640.4
United States | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	418.5	395.9
United States | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	198.7	198.5
United States | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	617.2	594.4
United States | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	28.1	15.3
United States | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	28.1	15.3
United States | U.S. Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	138.2	148.5
United States | U.S. Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	132.9	128.0
United States | U.S. Equity Securities [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	271.1	276.5
United States | International Equity Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	147.6	134.2
United States | International Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	11.6	11.3
United States | International Equity Securities [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	159.2	145.5
United States | U.S./Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	54.9	49.1
United States | U.S./Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	2.2	2.1
United States | U.S./Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	57.1	51.2
United States | High Yield Bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	37.3	40.1
United States | High Yield Bonds [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	37.3	40.1
United States | International/Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	29.1	26.8
United States | International/Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	29.1	26.8
United States | Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	1.1	1.1
United States | Insurance Contracts [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	1.1	1.1
United States | Real Estate Funds [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	20.6	22.0
United States | Real Estate Funds [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	3.9	3.9
United States | Real Estate Funds [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	24.5	25.9
United States | Other Nonrenewable Natural Resources [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	9.7	12.0
United States | Other Nonrenewable Natural Resources [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	9.7	12.0
United States | Hedge Fund Of Funds [Member] | Fair Value Measured at Net Asset Value Per Share
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	39.5	49.3
United States | Private Equity Funds [Member] | Fair Value Measured at Net Asset Value Per Share
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	4.8	3.2
United States | Private Placement [Member] | Fair Value Measured at Net Asset Value Per Share
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	26.7	25.0
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	368.7	340.9	$ 306.5
Foreign Plan [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	3.1	2.5
Foreign Plan [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	365.6	338.4
Foreign Plan [Member] | Cash and Cash Equivalents [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	3.1	2.5
Foreign Plan [Member] | Cash and Cash Equivalents [Member] | Fair Value, Inputs, Level 1 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	3.1	2.5
Foreign Plan [Member] | International Equity Securities [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	187.6	171.6
Foreign Plan [Member] | International Equity Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	187.6	171.6
Foreign Plan [Member] | U.S./Government/Corporate Bonds [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	155.4	144.7
Foreign Plan [Member] | U.S./Government/Corporate Bonds [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	155.4	144.7
Foreign Plan [Member] | Insurance Contracts [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	22.6	22.1
Foreign Plan [Member] | Insurance Contracts [Member] | Fair Value, Inputs, Level 2 [Member]
Defined Benefit Plan Disclosure [Line Items]
Fair value of pension plan assets	$ 22.6	$ 22.1

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Employee Benefit And Retirement Plans (Estimated Future Benefit Payments) (Details) $ in Millions	Nov. 30, 2020 USD ($)
Other Postretirement Benefits [Member]
Defined Benefit Plan Disclosure [Line Items]
2020	$ 5.1
2021	5.1
2022	5.1
2023	5.1
2024	5.1
2025-2029	24.0
Retiree Medical [Member]
Defined Benefit Plan Disclosure [Line Items]
2020	3.6
2021	3.6
2022	3.7
2023	3.7
2024	3.7
2025-2029	17.5
Retiree Life Insurance [Member]
Defined Benefit Plan Disclosure [Line Items]
2020	1.5
2021	1.5
2022	1.4
2023	1.4
2024	1.4
2025-2029	6.5
United States
Defined Benefit Plan Disclosure [Line Items]
2020	43.7
2021	43.7
2022	44.7
2023	47.5
2024	48.7
2025-2029	252.8
Foreign Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
2020	12.0
2021	11.7
2022	12.8
2023	12.4
2024	12.8
2025-2029	$ 66.0

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Stock-Based Compensation (Narrative) (Details) $ / shares in Units, $ in Millions	12 Months Ended
	Nov. 30, 2020 USD ($) award_type $ / shares shares	Nov. 30, 2019 USD ($) $ / shares shares	Nov. 30, 2018 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of Stock-based Compensation Award Types | award_type	4
Total stock-based compensation expense	$ 46.0	$ 37.2	$ 25.6
Unrecognized stock-based compensation expense	$ 23.2
Weighted average period for unrecognized stock-based compensation to be recognized	1 year 3 months 18 days
Common Stock, Capital Shares Reserved for Future Issuance | shares	6,600,000
Intrinsic value of options outstanding	$ 178.7
Intrinsic value for exercisable options	146.0
Total intrinsic value for all options exercised	$ 68.4	$ 111.0	$ 108.0
Dividend yield	1.80%	1.50%	2.00%
Expected lives	7 years 10 months 24 days	7 years 6 months	7 years 7 months 6 days
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Granted, Shares | shares	296,000	258,000	556,000
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period	3 years
Exercisable period	10 years
Weighted-average grant-date fair value of an option granted (usd per share) | $ / shares	$ 13.27	$ 13.76	$ 10.15
Long-term Performance Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average period for unrecognized stock-based compensation to be recognized	3 years
Granted, Shares | shares	130,000	136,000	172,000
Price Vested Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense	$ 23.3
Weighted average period for unrecognized stock-based compensation to be recognized	3 years
Exercisable period	10 years
Weighted-average grant-date fair value of an option granted (usd per share) | $ / shares	$ 93.49
Granted, Shares | shares	2,482,000
Risk free interest rate, maximum	0.85%
Dividend yield	1.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate	21.20%
Price Vested Stock Options [Member] | Share-based Payment Arrangement, Tranche One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of an option granted (usd per share) | $ / shares	$ 11.88
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	60.00%
Price Vested Stock Options [Member] | Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of an option granted (usd per share) | $ / shares	$ 9.26
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	80.00%
Price Vested Stock Options [Member] | Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average grant-date fair value of an option granted (usd per share) | $ / shares	$ 7.05
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent	100.00%
Price Vested Stock Options [Member] | Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives	5 years 7 months 6 days
Price Vested Stock Options [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected lives	6 years 2 months 12 days

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Stock-Based Compensation (Summary Of RSU Activity) (Details) - $ / shares shares in Thousands	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other	(44)	(66)	(52)
Share-based Compensation Arrangements by Share-based Payment Award, Options, Other Share Increase (Decrease) in Period, Weighted Average Exercise Price	$ 50.95	$ 44.98	$ 43.20
Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year, Shares	762	846	534
Granted, Shares	296	258	556
Vested, Shares	(325)	(318)	(226)
Forfeited, Shares	(19)	(24)	(18)
Outstanding at end of year, Shares	714	762	846
Outstanding at beginning of year, Weighted-average price (usd per share)	$ 57.95	$ 51.53	$ 43.24
Granted, Weighted-average price (usd per share)	67.03	71.62	56.36
Vested, Weighted-average price (usd per share)	57.56	52.08	44.08
Forfeited, Weighted-average price (usd per share)	62.96	56.78	48.27
Outstanding at end of year, Weighted-average price (usd per share)	$ 61.74	$ 57.95	$ 51.53
Long-term Performance Program [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding at beginning of year, Shares	392	436	440
Granted, Shares	130	136	172
Vested, Shares	(88)	(114)	(120)
Forfeited, Shares	(8)	0	(4)
Outstanding at end of year, Shares	382	392	436
Outstanding at beginning of year, Weighted-average price (usd per share)	$ 57.98	$ 41.78	$ 42.16
Granted, Weighted-average price (usd per share)	86.14	75.26	50.95
Vested, Weighted-average price (usd per share)	44.98	43.20	37.01
Forfeited, Weighted-average price (usd per share)	65.68	0	48.71
Outstanding at end of year, Weighted-average price (usd per share)	$ 71.20	$ 57.98	$ 41.78

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Stock-Based Compensation (Assumptions Of Stock Compensation Plans) (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Share-based Payment Arrangement, Noncash Expense [Abstract]
Risk free interest rate, minimum	0.00%	2.20%	1.70%
Risk free interest rate, maximum	0.60%	2.50%	2.90%
Dividend yield	1.80%	1.50%	2.00%
Expected volatility rate, minimum	22.80%	17.40%	18.40%
Expected volatility rate, maximum	22.80%	17.40%	18.40%
Expected lives	7 years 10 months 24 days	7 years 6 months	7 years 7 months 6 days

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Stock-Based Compensation (Summary Of Stock Option Activity) (Details) - Stock Options [Member] - $ / shares shares in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding at Beginning of year, Shares	5.2	7.2	9.6
Granted, Shares	0.7	0.6	0.8
Exercised, Shares	(1.4)	(2.6)	(3.2)
Outstanding at End of year, Shares	4.5	5.2	7.2
Exercisable at end of year, Number of Shares	3.2	3.8	5.6
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward]
Outstanding at beginning of year, Weighted-average exercise price (usd per share)	$ 48.09	$ 41.30	$ 35.96
Granted, Weighted-average exercise price (usd per share)	69.31	73.70	52.98
Exercised, Weighted-average exercise price (usd per share)	41.01	35.54	27.64
Outstanding at end of year, Weighted-average exercise price (usd per share)	53.56	48.09	41.30
Exercisable at end of year, Weighted-average exercise price (usd per share)	$ 47.76	$ 43.31	$ 38.27

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Stock-Based Compensation (Summary Of Our Stock Options Outstanding And Exercisable) (Details) shares in Millions	12 Months Ended
	Nov. 30, 2020 $ / shares shares
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Options outstanding, Shares | shares	4.5
Options outstanding, Weighted-average remaining life (yrs)	6 years 6 months
Options outstanding, Weighted-average exercise price (usd per share)	$ 53.56
Options exercisable, Shares | shares	3.2
Options exercisable, Weighted-average remaining life (yrs)	5 years 7 months 6 days
Options exercisable, Weighted-average exercise price (usd per share)	$ 47.76
$23.00-$37.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	23.00
Range of exercise price, upper limit	$ 37.50
Options outstanding, Shares | shares	0.5
Options outstanding, Weighted-average remaining life (yrs)	2 years 9 months 18 days
Options outstanding, Weighted-average exercise price (usd per share)	$ 33.99
Options exercisable, Shares | shares	0.5
Options exercisable, Weighted-average remaining life (yrs)	2 years 9 months 18 days
Options exercisable, Weighted-average exercise price (usd per share)	$ 33.99
$37.51-$56.00 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	37.51
Range of exercise price, upper limit	$ 56.00
Options outstanding, Shares | shares	2.7
Options outstanding, Weighted-average remaining life (yrs)	5 years 10 months 24 days
Options outstanding, Weighted-average exercise price (usd per share)	$ 48.36
Options exercisable, Shares | shares	2.5
Options exercisable, Weighted-average remaining life (yrs)	5 years 9 months 18 days
Options exercisable, Weighted-average exercise price (usd per share)	$ 47.97
$56.01-$74.50 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Range of exercise price, lower limit	56.01
Range of exercise price, upper limit	$ 74.50
Options outstanding, Shares | shares	1.3
Options outstanding, Weighted-average remaining life (yrs)	8 years 10 months 24 days
Options outstanding, Weighted-average exercise price (usd per share)	$ 71.27
Options exercisable, Shares | shares	0.2
Options exercisable, Weighted-average remaining life (yrs)	8 years 3 months 18 days
Options exercisable, Weighted-average exercise price (usd per share)	$ 73.64

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Income Taxes (Narrative) (Details) - USD ($)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	22.20%	35.00%
Current, Federal	$ 98,300,000	$ 52,300,000	$ 92,900,000
Non-U.S. subsidiaries tax loss carryforwards	214,400,000
Tax loss carryforwards expiring through 2019	100,000
Tax loss carryforwards expiring from 2020 through 2021	9,600,000
Tax Loss Carryforwards expiring from 2022 Through 2035	77,900,000
Deferred Tax Assets, Capital Loss Carryforwards	5,000,000.0
Tax credit carryforwards	59,700,000	46,800,000
Net increase in the valuation allowance	900,000
Unrecognized tax benefits	39,300,000	32,000,000.0	27,900,000	$ 39,100,000
Statute expirations	4,200,000	2,500,000	9,100,000
Interest and penalty (income) / expense	800,000	2,100,000	100,000
Interest and penalties accrued	8,300,000	7,100,000
Tax benefits that would impact effective tax rate	39,300,000	32,000,000.0	27,500,000
Deferred, Federal	(4,600,000)	(26,400,000)	$ 340,300,000
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability	$ 380,000,000.0
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Percent	15.50%
U.S. Tax Act, Incomplete Accounting, Transition Tax	$ 76,000,000.0	75,300,000
U.S. Tax Act, Incomplete Accounting, Withholding Tax on Repatriation Earnings	7,900,000
U.S. Tax Act, Incomplete Accounting, Changes in Transition Tax	4,700,000
U.S. Tax Act, Incomplete Accounting, Repatriation and Withholding Tax Impact		78,500,000
Effective Income Tax Rate Reconciliation, Tax Credit, Foreign, Amount		$ 21,100,000
Effective Income Tax Rate Reconciliation, Tax Credit, Other, Amount	7,700,000
U.S. Tax Act, Incomplete Accounting, Transition Tax, remitted over 8 years	47,200,000
U.S. Tax Act, Incomplete Accounting, Remaining Unpaid Transition Tax	39,700,000
Deferred Tax Assets, Operating Loss Carryforwards, Not Subject to Expiration	126,800,000
Tax Credit Carryforward, Amount	7,300,000
Undistributed Earnings of Foreign Subsidiaries	$ 1,300,000,000

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Income Taxes (Provision For Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Income Tax Disclosure [Abstract]
Current, Federal	$ 98.3	$ 52.3	$ 92.9
Current, State	14.8	10.7	11.0
Current, International	73.0	73.5	78.7
Current Income Taxes, Total	186.1	136.5	182.6
Deferred, Federal	4.6	26.4	(340.3)
Deferred, State	0.5	3.6	1.5
Deferred, International	(16.3)	(9.1)	(1.1)
Deferred Income Taxes, Total	(11.2)	20.9	(339.9)
Total income taxes	$ 174.9	$ 157.4	$ (157.3)

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Income Taxes (Components Of Income From Consolidated Operations Before Income Taxes) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Income Tax Disclosure [Abstract]
United States	$ 624.3	$ 569.0	$ 492.2
International	257.2	250.2	249.1
Income from consolidated operations before income taxes	$ 881.5	$ 819.2	$ 741.3

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Income Taxes (Reconciliation Of The U.S. Federal Statutory Rate With The Effective Tax Rate) (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018	Nov. 30, 2017
Income Tax Disclosure [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	22.20%	35.00%
State income taxes, net of federal benefits	1.50%	1.60%	1.50%
International tax at different effective rates	1.30%	1.60%	0.40%
U.S. tax on remitted and unremitted earnings	0.80%	0.50%	0.60%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-based Compensation Cost, Percent	(1.50%)	(2.80%)	(2.90%)
U.S. manufacturing deduction	0.00%	0.00%	(0.80%)
Changes in prior year tax contingencies	(0.30%)	(0.30%)	(0.80%)
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent	0.00%	(0.20%)	(40.70%)
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent	(1.40%)
Effective Income Tax Rate Reconciliation, Disposition of Asset, Percent	(1.10%)	(1.80%)
Other, net	(0.50%)	(0.40%)	(0.70%)
Total	19.80%	19.20%	(21.20%)

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Income Taxes (Schedule Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Millions	Nov. 30, 2020	Nov. 30, 2019
Income Tax Disclosure [Abstract]
Deferred tax assets, Employee benefit liabilities	$ 121.9	$ 103.3
Deferred tax assets, Other accrued liabilities	40.3	32.3
Deferred tax assets, Inventory	10.6	7.5
Tax credit carryforwards	59.7	46.8
Deferred Tax Liabilities, Leasing Arrangements	33.0	0.0
Deferred tax assets, Other	47.9	48.1
Deferred tax assets, Valuation allowance	(31.5)	(32.4)
Deferred tax assets, total	281.9	205.6
Deferred tax liabilities, Depreciation	89.1	82.6
Deferred tax liabilities, Intangible assets	815.1	770.5
Deferred Tax Liabilities, Leasing Arrangements	32.2
Deferred tax liabilities, Other	4.5	5.5
Deferred Tax Liabilities, Gross	940.9	858.6
Deferred tax liabilities, total	$ (659.0)	$ (653.0)

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Income Taxes (Activity Related To Our Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at beginning of year	$ 32.0	$ 27.9	$ 39.1
Additions for current year tax positions	7.8	6.6	6.5
Additions for prior year tax positions	2.5	0.6	0.3
Reductions for prior year tax positions	0.0	(0.3)	(6.9)
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities	0.0	0.0	0.0
Statute expirations	(4.2)	(2.5)	(9.1)
Foreign currency translation	1.2	(0.3)	(2.0)
Balance at end of year	$ 39.3	$ 32.0	$ 27.9

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Capital Stock, Earnings Per Share And Stock Issuance Capital Stock, Earnings Per Share And Stock Issuance (Details)	12 Months Ended
	Nov. 30, 2020
Class of Stock [Line Items]
Maximum percentage of votes a holder of shares of Common Stock may cast out of the votes entitled to be cast by all holders of shares of Common Stock	10.00%
Minimum [Member]
Class of Stock [Line Items]
Minimum percentage a holder must acquire of each class of common stock not to be subject to our redemption rights	90.00%
Minimum percentage of votes a holder must control out of the votes entitled to be cast by all holders of shares of Common Stock to trigger the automatic conversion, on a share-for-share basis, of all shares of Common Stock Non-Voting into shares of Common Stock	50.00%

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Capital Stock, Earnings Per Share And Stock Issuance (Reconciliation Of Average Shares Outstanding) (Details) - shares shares in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Earnings Per Share [Abstract]
Average shares outstanding-basic	266.5	265.1	263.1
Stock options/RSUs	2.6	3.0	3.4
Average shares outstanding-diluted	269.1	268.1	266.5

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Capital Stock, Earnings Per Share And Stock Issuance (Schedule Of Antidilutive Securities) (Details) - shares shares in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Earnings Per Share [Abstract]
Antidilutive securities	0.1	0.2	0.4

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Business Segments And Geographic Areas (Narrative) (Details)	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Flavor Solutions [Member] | PepsiCo, Inc. [Member]
Segment Reporting Information [Line Items]
Percentage of consolidated sales	11.00%	10.00%	10.00%
Consumer [Member] | Wal-Mart Stores, Inc. [Member]
Segment Reporting Information [Line Items]
Percentage of consolidated sales	12.00%	11.00%	11.00%

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Business Segments And Geographic Areas (Schedule Of Segment Reporting Information) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Segment Reporting Information [Line Items]
Revenues	$ 1,557.9	$ 1,430.3	$ 1,401.1	$ 1,212.0	$ 1,484.8	$ 1,329.2	$ 1,301.9	$ 1,231.5	$ 5,601.3	$ 5,347.4	$ 5,302.8
Operating income excluding special charges									1,018.8	978.5	929.9
Income from unconsolidated operations									40.8	40.9	34.8
Assets	12,089.7				10,362.1				12,089.7	10,362.1	10,256.4
Capital expenditures									225.3	173.7	169.1
Depreciation and amortization									165.0	158.8	150.7
Special charges	2.9	0.1	2.9	1.0	3.9	7.7	7.1	2.1	6.9	20.8	16.3
Other transaction and integration expenses									12.4		22.5
Operating income	274.9	$ 273.0	$ 257.4	$ 194.2	299.2	$ 253.5	$ 208.1	$ 196.9	999.5	957.7	891.1
Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues									5,601.3	5,347.4	5,302.8
Operating income excluding special charges									1,018.8	978.5	929.9
Income from unconsolidated operations									40.8	40.9	34.8
Assets	11,339.2				9,950.3				11,339.2	9,950.3	10,015.8
Capital expenditures									150.1	121.8	126.3
Depreciation and amortization									123.9	118.0	115.0
Corporate And Reconciling Items [Member]
Segment Reporting Information [Line Items]
Assets	$ 750.5				$ 411.8				750.5	411.8	240.6
Capital expenditures									75.2	51.9	42.8
Depreciation and amortization									41.1	40.8	35.7
Consumer [Member]
Segment Reporting Information [Line Items]
Operating income excluding special charges									780.9	676.3	637.1
Special charges									5.5	13.1	10.0
Other transaction and integration expenses									7.5		15.0
Operating income									767.9	663.2	612.1
Consumer [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues									3,596.7	3,269.8	3,247.0
Operating income excluding special charges									780.9	676.3	637.1
Income from unconsolidated operations									34.1	31.8	29.5
Flavor Solutions [Member]
Segment Reporting Information [Line Items]
Operating income excluding special charges									237.9	302.2	292.8
Special charges									1.4	7.7	6.3
Other transaction and integration expenses									4.9		7.5
Operating income									231.6	294.5	279.0
Flavor Solutions [Member] | Operating Segments [Member]
Segment Reporting Information [Line Items]
Revenues									2,004.6	2,077.6	2,055.8
Operating income excluding special charges									237.9	302.2	292.8
Income from unconsolidated operations									$ 6.7	$ 9.1	$ 5.3

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Business Segments And Geographic Areas (Net Sales And Long-Lived Assets Geographic Areas) (Details) - USD ($) $ in Millions	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Segment Reporting Information [Line Items]
Revenues	$ 1,557.9	$ 1,430.3	$ 1,401.1	$ 1,212.0	$ 1,484.8	$ 1,329.2	$ 1,301.9	$ 1,231.5	$ 5,601.3	$ 5,347.4	$ 5,302.8
Long-lived assets	9,254.1				8,304.8				9,254.1	8,304.8	8,342.7
United States
Segment Reporting Information [Line Items]
Revenues									3,445.9	3,226.3	3,145.0
Long-lived assets	7,202.0				6,397.0				7,202.0	6,397.0	6,411.0
EMEA [Member]
Segment Reporting Information [Line Items]
Revenues									1,046.7	986.1	1,021.1
Long-lived assets	1,135.6				1,032.4				1,135.6	1,032.4	1,057.1
Other Countries [Member]
Segment Reporting Information [Line Items]
Revenues									1,108.7	1,135.0	1,136.7
Long-lived assets	$ 916.5				$ 875.4				$ 916.5	$ 875.4	$ 874.6

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Supplemental Financial Statement Data (Supplemental Income Statement, Balance Sheet And Cash Flow Information) (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Condensed Financial Statements, Captions [Line Items]
Other income, net	$ 17.6	$ 26.7	$ 24.8
Interest Income, Other	7.8	10.1	7.1
Other Income	(0.2)	(1.1)	5.5
Inventories
Finished products	499.3	413.3
Raw materials and work-in-process	533.3	387.9
Total inventories	1,032.6	801.2
Prepaid expenses	38.0	36.0
Other current assets	60.9	54.7
Total prepaid and other current asset	98.9	90.7
Property, Plant and Equipment, Net [Abstract]
Land and improvements	87.2	67.5
Buildings (including capital lease)	698.2	658.5
Machinery, equipment and other	1,102.9	1,007.8
Construction-in-progress	125.5	85.8
Accumulated depreciation	(985.4)	(867.0)
Property, plant and equipment, total	1,028.4	952.6
Other long-term assets
Investments in affiliates	193.0	186.0
Long-term investments	129.9	124.4
Operating Lease, Right-of-Use Asset	136.8
Capitalized Computer Software, Net	116.0	76.4
Software Accumulated Amortization	275.0	281.5
Other Assets	176.3	120.3
Investments and other assets, total	752.0	507.1
Other accrued liabilities
Payroll and employee benefits	260.7	184.9
Sales allowances	183.3	137.2
Dividends Payable	90.7	82.4
Other	328.9	204.6
Other accrued liabilities, total	863.6	609.1
Other Long-term Debt [Abstract]
Pension	286.1	226.9
Postretirement benefits	66.2	62.7
Noncurrent operating lease liabilities	103.5
Unrecognized tax benefits	46.0	37.6
Other	120.4	100.4
Other long-term liabilities, total	622.2	427.6
Depreciation	121.1	113.6	104.8
Software amortization	12.4	13.7	14.0
Interest paid	134.1	169.8	179.8
Income taxes paid	183.3	137.2	154.6
Accounting Standards Update 2017-07 [Member]
Condensed Financial Statements, Captions [Line Items]
Other income, net	$ 10.0	$ 17.7	$ 12.2

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Supplemental Financial Statement Data (Narrative) (Details) - $ / shares	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Supplemental Financial Statement Data [Abstract]
Dividends paid per share (usd per share)	$ 0.31	$ 0.31	$ 0.31	$ 0.31	$ 0.29	$ 0.28	$ 0.29	$ 0.28	$ 1.24	$ 1.14	$ 1.04
Common Stock, Dividends, Per Share, Declared	$ 0.65	$ 0.31	$ 0.31	$ 0	$ 0.60	$ 0.28	$ 0.29	$ 0	$ 1.27	$ 1.17	$ 1.07

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Selected Quarterly Data (Scheduled Of Quarterly Financial Information) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended								12 Months Ended
	Nov. 30, 2020	Aug. 31, 2020	May 31, 2020	Feb. 29, 2020	Nov. 30, 2019	Aug. 31, 2019	May 31, 2019	Feb. 28, 2019	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
Class of Stock [Line Items]
After tax impact transaction and integration expenses	$ 10.5
EPS Impact of Transaction and Integration Expenses - Diluted	$ 0.04
Non-cash nonrecurring income tax benefit (related to enactment of the U.S. Tax Act)						$ 1.5			$ 0.0	$ 0.0	$ (309.4)
Revenues	$ 1,557.9	$ 1,430.3	$ 1,401.1	$ 1,212.0	$ 1,484.8	1,329.2	$ 1,301.9	$ 1,231.5	5,601.3	5,347.4	5,302.8
Gross profit	660.7	590.3	579.5	469.9	630.0	539.9	508.5	466.9	2,300.4	2,145.3	2,093.3
Operating income	274.9	273.0	257.4	194.2	299.2	253.5	208.1	196.9	999.5	957.7	891.1
Net income	$ 200.7	$ 206.1	$ 195.9	$ 144.7	$ 213.4	$ 191.9	$ 149.4	$ 148.0	$ 747.4	$ 702.7	$ 933.4
Basic earnings per share	$ 0.75	$ 0.77	$ 0.74	$ 0.54	$ 0.80	$ 0.72	$ 0.56	$ 0.56	$ 2.80	$ 2.65	$ 3.55
Diluted earnings per share	0.74	0.76	0.73	0.54	0.79	0.72	0.56	0.55	2.78	2.62	3.50
Dividends paid per share (usd per share)	0.31	0.31	0.31	0.31	0.29	0.28	0.29	0.28	1.24	1.14	1.04
Common Stock, Dividends, Per Share, Declared	$ 0.65	$ 0.31	$ 0.31	$ 0	$ 0.60	$ 0.28	$ 0.29	$ 0	$ 1.27	$ 1.17	$ 1.07
Special charges	$ 2.9	$ 0.1	$ 2.9	$ 1.0	$ 3.9	$ 7.7	$ 7.1	$ 2.1	$ 6.9	$ 20.8	$ 16.3
After tax impact of special charges	$ 2.0	$ 0.1	$ 2.0	$ 0.7	$ 3.0	$ 6.1	$ 5.4	$ 1.6
EPS impact of Special charges - Diluted	$ 0.01		$ 0.01		$ 0.02	$ 0.01	$ 0.02	$ 0.01
Transaction and integration expenses	$ 12.4								$ 12.4	$ 0.0	$ 22.5

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Valuation And Qualifying Accounts (Details) - USD ($) $ in Millions	12 Months Ended
	Nov. 30, 2020	Nov. 30, 2019	Nov. 30, 2018
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	$ 38.0	$ 39.3	$ 32.6
Charged to Costs and Expenses	12.6	3.7	12.2
Charged to Other Accounts	(1.5)	(2.3)	(2.8)
Deductions	12.4	2.7	2.7
Balance at End of Period	36.7	38.0	39.3
Allowance For Doubtful Receivables [Member]
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	5.6	6.4	6.6
Charged to Costs and Expenses	0.8	1.1	1.1
Charged to Other Accounts	(1.4)	(1.8)	(0.6)
Deductions	0.2	0.1	0.7
Balance at End of Period	5.2	5.6	6.4
Valuation Allowance On Net Deferred Tax Assets [Member]
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Balance at Beginning of Period	32.4	32.9	26.0
Charged to Costs and Expenses	11.8	2.6	11.1
Charged to Other Accounts	(0.1)	(0.5)	(2.2)
Deductions	12.6	2.6	2.0
Balance at End of Period	$ 31.5	$ 32.4	$ 32.9