QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Trading | |||||||||||
Title of each class | Symbol(s) | Name of each exchange on which registered | |||||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Shares Outstanding | |||||||||||
February 28, 2021 | |||||||||||
Common Stock | |||||||||||
Common Stock Non-Voting |
PART I – FINANCIAL INFORMATION | |||||||||||
ITEM 1 | |||||||||||
ITEM 2 | |||||||||||
ITEM 3 | |||||||||||
ITEM 4 | |||||||||||
ITEM 1 | |||||||||||
ITEM 1a | |||||||||||
ITEM 2 | |||||||||||
ITEM 3 | DEFAULTS UPON SENIOR SECURITIES | ||||||||||
ITEM 4 | |||||||||||
ITEM 5 | OTHER INFORMATION | ||||||||||
ITEM 6 |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net sales | $ | $ | |||||||||
Cost of goods sold | |||||||||||
Gross profit | |||||||||||
Selling, general and administrative expense | |||||||||||
Transaction and integration expenses | |||||||||||
Special charges | |||||||||||
Operating income | |||||||||||
Interest expense | |||||||||||
Other income, net | |||||||||||
Income from consolidated operations before income taxes | |||||||||||
Income tax expense | |||||||||||
Net income from consolidated operations | |||||||||||
Income from unconsolidated operations | |||||||||||
Net income | $ | $ | |||||||||
Earnings per share – basic | $ | $ | |||||||||
Earnings per share – diluted | $ | $ | |||||||||
Average shares outstanding – basic | |||||||||||
Average shares outstanding – diluted | |||||||||||
Cash dividends paid per share – voting and non-voting | $ | $ | |||||||||
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net income | $ | $ | |||||||||
Net income attributable to non-controlling interest | |||||||||||
Other comprehensive income (loss): | |||||||||||
Unrealized components of pension and postretirement plans | |||||||||||
Currency translation adjustments | ( | ||||||||||
Change in derivative financial instruments | ( | ( | |||||||||
Deferred taxes | ( | ||||||||||
Total other comprehensive income (loss) | ( | ||||||||||
Comprehensive income | $ | $ |
February 28, 2021 | November 30, 2020 | ||||||||||
(unaudited) | |||||||||||
ASSETS | |||||||||||
Current Assets | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Trade accounts receivable, net | |||||||||||
Inventories, net | |||||||||||
Finished products | |||||||||||
Raw materials and work-in-process | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||
Current Liabilities | |||||||||||
Short-term borrowings | $ | $ | |||||||||
Current portion of long-term debt | |||||||||||
Trade accounts payable | |||||||||||
Other accrued liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred taxes | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Shareholders’ Equity | |||||||||||
Common stock | |||||||||||
Common stock non-voting | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total McCormick shareholders' equity | |||||||||||
Non-controlling interests | |||||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Operating activities | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash flow provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Stock-based compensation | |||||||||||
Amortization of inventory fair value adjustments associated with acquisitions | |||||||||||
Income from unconsolidated operations | ( | ( | |||||||||
Changes in operating assets and liabilities | ( | ( | |||||||||
Dividends from unconsolidated affiliates | |||||||||||
Net cash flow (used in) provided by operating activities | ( | ||||||||||
Investing activities | |||||||||||
Acquisition of businesses (net of cash acquired) | ( | ||||||||||
Capital expenditures (including software) | ( | ( | |||||||||
Other investing activities | |||||||||||
Net cash flow used in investing activities | ( | ( | |||||||||
Financing activities | |||||||||||
Short-term borrowings, net | ( | ||||||||||
Long-term debt borrowings | |||||||||||
Payment of debt issuance costs | ( | — | |||||||||
Long-term debt repayments | ( | ( | |||||||||
Proceeds from exercised stock options | |||||||||||
Taxes withheld and paid on employee stock awards | ( | ( | |||||||||
Common stock acquired by purchase | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash flow provided by financing activities | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | |||||||||||
(Decrease) increase in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
(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 | ||||||||||||||||
Three months ended February 28, 2021 | |||||||||||||||||||||||
Balance, November 30, 2020 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | ||||||||||||||||||||
Other comprehensive income, net of tax | — | — | |||||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||
Shares purchased and retired | ( | ( | ( | — | — | ( | |||||||||||||||||
Shares issued | — | — | — | ||||||||||||||||||||
Equal exchange | ( | — | — | — | — | — | |||||||||||||||||
Balance, February 28, 2021 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Three months ended February 29, 2020 | |||||||||||||||||||||||
Balance, November 30, 2019 | $ | $ | $ | ( | $ | $ | |||||||||||||||||
Net income | — | — | — | ||||||||||||||||||||
Net income attributable to non-controlling interest | — | — | — | ||||||||||||||||||||
Other comprehensive loss, net of tax | — | — | ( | ( | ( | ||||||||||||||||||
Stock-based compensation | — | — | — | ||||||||||||||||||||
Shares purchased and retired | ( | ( | ( | — | — | ( | |||||||||||||||||
Shares issued | — | — | — | ||||||||||||||||||||
Equal exchange | ( | — | — | — | — | — | |||||||||||||||||
Balance, February 29, 2020 | $ | $ | $ | ( | $ | $ |
Trade accounts receivable | $ | ||||
Inventories | |||||
Goodwill | |||||
Intangible assets | |||||
Property, plant and equipment | |||||
Other assets | |||||
Trade accounts payable | ( | ||||
Other accrued liabilities | ( | ||||
Total | $ |
2021 | |||||
Transaction-related expenses included in cost of goods sold | $ | ||||
Other transaction expenses | |||||
Integration expenses | |||||
Total transaction and integration expenses | $ |
2021 | 2020 | ||||||||||
Employee severance and related benefits | $ | $ | |||||||||
Other costs | |||||||||||
Total | $ | $ |
2021 | 2020 | ||||||||||
Consumer segment | $ | $ | |||||||||
Flavor solutions segment | |||||||||||
Total special charges | $ | $ |
2021 | |||||||||||
Consumer | Flavor Solutions | ||||||||||
Beginning of the year | $ | $ | |||||||||
Increases in goodwill from acquisition | |||||||||||
Changes in preliminary purchase price allocation | |||||||||||
Foreign currency fluctuations | |||||||||||
Balance as of the end of period | $ | $ |
As of February 28, 2021 | Asset Derivatives | Liability 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 | $ | $ | Other accrued liabilities | $ | $ | |||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Other accrued liabilities | |||||||||||||||||||||||||||||||||
Cross currency contracts | Other current assets / Other long-term assets | Other long-term liabilities | |||||||||||||||||||||||||||||||||
Total | $ | $ | |||||||||||||||||||||||||||||||||
As of November 30, 2020 | Asset Derivatives | Liability 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 | $ | $ | Other accrued liabilities | $ | $ | |||||||||||||||||||||||||||||
Foreign exchange contracts | Other current assets | Other accrued liabilities | |||||||||||||||||||||||||||||||||
Cross currency contracts | Other current assets / Other long-term assets | Other long-term liabilities | |||||||||||||||||||||||||||||||||
Total | $ | $ |
Fair Value Hedges | |||||||||||||||||||||||
Derivative | Income statement location | Income (expense) | |||||||||||||||||||||
Three months ended February 28, 2021 | Three months ended February 29, 2020 | ||||||||||||||||||||||
Interest rate contracts | Interest expense | $ | $ |
Three months ended | Income statement location | Gain (loss) recognized in income | Income statement location | Gain (loss) recognized in income | |||||||||||||||||||
Derivative | February 28, 2021 | February 29, 2020 | Hedged item | February 28, 2021 | February 29, 2020 | ||||||||||||||||||
Foreign exchange contracts | Other income, net | $ | ( | $ | ( | Intercompany loans | Other income, net | $ | $ |
Cash Flow Hedges | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
Derivative | Gain (loss) recognized in OCI | Income statement location | Gain (loss) reclassified from AOCI | |||||||||||||||||||||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2021 | February 29, 2020 | |||||||||||||||||||||||||||||
Interest rate contracts | $ | $ | Interest expense | $ | $ | |||||||||||||||||||||||||||
Foreign exchange contracts | ( | Cost of goods sold | ||||||||||||||||||||||||||||||
Total | $ | ( | $ | $ | $ | |||||||||||||||||||||||||||
Net Investment Hedges | ||||||||||||||||||||||||||||||||
Three months ended | ||||||||||||||||||||||||||||||||
Derivative | Gain (loss) recognized in OCI | Income statement location | Gain (loss) excluded from the assessment of hedge effectiveness | |||||||||||||||||||||||||||||
February 28, 2021 | February 29, 2020 | February 28, 2021 | February 29, 2020 | |||||||||||||||||||||||||||||
Cross currency contracts | $ | ( | $ | Interest expense | $ | $ | ||||||||||||||||||||||||||
February 28, 2021 | ||||||||||||||||||||
Fair Value | Level 1 | Level 2 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Insurance contracts | ||||||||||||||||||||
Bonds and other long-term investments | ||||||||||||||||||||
Interest rate derivatives | ||||||||||||||||||||
Foreign currency derivatives | ||||||||||||||||||||
Cross currency contracts | — | |||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Liabilities | ||||||||||||||||||||
Foreign currency derivatives | $ | $ | $ | |||||||||||||||||
Cross currency contracts | ||||||||||||||||||||
Total | $ | $ | $ |
November 30, 2020 | ||||||||||||||||||||
Fair Value | Level 1 | Level 2 | ||||||||||||||||||
Assets | ||||||||||||||||||||
Cash and cash equivalents | $ | $ | $ | |||||||||||||||||
Insurance contracts | ||||||||||||||||||||
Bonds and other long-term investments | ||||||||||||||||||||
Interest rate derivatives | — | |||||||||||||||||||
Foreign currency derivatives | ||||||||||||||||||||
Total | $ | $ | $ | |||||||||||||||||
Liabilities | ||||||||||||||||||||
Foreign currency derivatives | $ | $ | $ | |||||||||||||||||
Cross currency contracts | — | |||||||||||||||||||
Total | $ | $ | $ |
February 28, 2021 | November 30, 2020 | ||||||||||
Carrying amount | $ | $ | |||||||||
Fair value | |||||||||||
Level 1 valuation techniques | $ | $ | |||||||||
Level 2 valuation techniques | |||||||||||
Total fair value | $ | $ |
United States | International | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Defined benefit plans | |||||||||||||||||||||||
Service cost | $ | $ | $ | $ | |||||||||||||||||||
Interest costs | |||||||||||||||||||||||
Expected return on plan assets | ( | ( | ( | ( | |||||||||||||||||||
Amortization of prior service costs | |||||||||||||||||||||||
Amortization of net actuarial losses | |||||||||||||||||||||||
Total pension expense (income) | $ | $ | $ | ( | $ | ( |
2021 | 2020 | |||||||||||||
Other postretirement benefits | ||||||||||||||
Service cost | $ | $ | ||||||||||||
Interest costs | ||||||||||||||
Amortization of prior service credits | ( | ( | ||||||||||||
Amortization of net actuarial gains | ( | |||||||||||||
Total other postretirement benefits expense (income) | $ | $ | ( |
2021 | 2020 | ||||||||||
Stock-based compensation expense | $ | $ |
2021 | 2020 | ||||||||||||||||||||||
(shares in millions) | Number of Shares | Weighted- Average Exercise Price | Number of Shares | Weighted- Average Exercise Price | |||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Exercised | ( | ( | |||||||||||||||||||||
Outstanding at end of the period | $ | $ | |||||||||||||||||||||
Exercisable at end of the period | $ | $ |
2021 | 2020 | ||||||||||||||||||||||
(shares in thousands) | Number of Shares | Weighted- Average Grant-Date Fair Value | Number of Shares | Weighted- Average Grant-Date Fair Value | |||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Outstanding at end of period | $ | $ |
(shares in thousands) | Number of Shares | Weighted- Average Grant-Date Fair Value | |||||||||
Outstanding at beginning of period | $ | ||||||||||
Granted | |||||||||||
Forfeited | ( | ||||||||||
Outstanding at end of period | $ |
2021 | 2020 | ||||||||||||||||||||||
(shares in thousands) | Number of Shares | Weighted- Average Grant-Date Fair Value | Number of Shares | Weighted- Average Grant-Date Fair Value | |||||||||||||||||||
Outstanding at beginning of period | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Vested | ( | ( | |||||||||||||||||||||
Forfeited | ( | ( | |||||||||||||||||||||
Outstanding at end of period | $ | $ |
2021 | 2020 | ||||||||||
Average shares outstanding – basic | |||||||||||
Effect of dilutive securities: | |||||||||||
Stock options/RSUs/LTPP | |||||||||||
Average shares outstanding – diluted |
2021 | 2020 | ||||||||||
Anti-dilutive securities |
2021 | 2020 | ||||||||||
Shares issued under stock options, RSUs, LTPP and employee stock purchase plans | |||||||||||
Shares repurchased under the stock repurchase program and shares withheld for taxes under stock options, RSUs, LTPP and employee stock purchase programs |
February 28, 2021 | November 30, 2020 | ||||||||||
Foreign currency translation adjustment (1) | $ | ( | $ | ( | |||||||
Unrealized gain (loss) on foreign currency exchange contracts | ( | ( | |||||||||
Unamortized value of settled interest rate swaps | ( | ||||||||||
Pension and other postretirement costs | ( | ( | |||||||||
Accumulated other comprehensive loss | $ | ( | $ | ( |
Affected Line Items in the Condensed Consolidated Income Statement | |||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) Components | 2021 | 2020 | |||||||||||||||||||||
(Gains)/losses on cash flow hedges: | |||||||||||||||||||||||
Interest rate derivatives | $ | ( | $ | ( | Interest expense | ||||||||||||||||||
Foreign exchange contracts | ( | ( | Cost of goods sold | ||||||||||||||||||||
Total before tax | ( | ( | |||||||||||||||||||||
Tax effect | Income taxes | ||||||||||||||||||||||
Net, after tax | $ | ( | $ | ( | |||||||||||||||||||
Amortization of pension and postretirement benefit adjustments: | |||||||||||||||||||||||
Amortization of prior service costs (credit) (1) | $ | $ | ( | Other income, net | |||||||||||||||||||
Amortization of net actuarial losses (1) | Other income, net | ||||||||||||||||||||||
Total before tax | |||||||||||||||||||||||
Tax effect | ( | ( | Income taxes | ||||||||||||||||||||
Net, after tax | $ | $ |
Consumer | Flavor Solutions | Total | |||||||||||||||
(in millions) | |||||||||||||||||
Three months ended February 28, 2021 | |||||||||||||||||
Net sales | $ | $ | $ | ||||||||||||||
Operating income excluding special charges and transaction and integration expenses | |||||||||||||||||
Income from unconsolidated operations | |||||||||||||||||
Three months ended February 29, 2020 | |||||||||||||||||
Net sales | $ | $ | $ | ||||||||||||||
Operating income excluding special charges | |||||||||||||||||
Income from unconsolidated operations | |||||||||||||||||
Consumer | Flavor Solutions | Total | |||||||||||||||
Three months ended February 28, 2021 | |||||||||||||||||
Operating income excluding special charges and transaction and integration expenses | $ | $ | $ | ||||||||||||||
Less: Special charges | |||||||||||||||||
Less: Transaction-related expenses included in cost of goods sold | |||||||||||||||||
Less: Other transaction and integration expenses | |||||||||||||||||
Operating income | $ | $ | $ | ||||||||||||||
Three months ended February 29, 2020 | |||||||||||||||||
Operating income excluding special charges | $ | $ | $ | ||||||||||||||
Less: Special charges | |||||||||||||||||
Operating income | $ | $ | $ | ||||||||||||||
Americas | EMEA | Asia/Pacific | Total | ||||||||||||||
Three months ended February 28, 2021 | $ | $ | $ | $ | |||||||||||||
Three months ended February 29, 2020 | |||||||||||||||||
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net sales | $ | 1,481.5 | $ | 1,212.0 | |||||||
Percent increase (decrease) | 22.2 | % | (1.6) | % | |||||||
Components of percent growth in net sales – increase (decrease): | |||||||||||
Volume and product mix | 15.2 | % | (2.5) | % | |||||||
Pricing actions | 0.8 | % | 1.1 | % | |||||||
Acquisitions | 4.0 | % | — | % | |||||||
Foreign exchange | 2.2 | % | (0.2) | % | |||||||
Gross profit | $ | 577.5 | $ | 469.9 | |||||||
Gross profit margin | 39.0 | % | 38.8 | % |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Selling, general & administrative expense (SG&A) | $ | 321.3 | $ | 274.7 | |||||||
Percent of net sales | 21.7 | % | 22.7 | % |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Total special charges | $ | 1.1 | $ | 1.0 |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Transaction expenses included in cost of goods sold | $ | 6.3 | $ | — | |||||||
Other transaction and integration expenses | 18.8 | — | |||||||||
Total transaction and integration expenses | $ | 25.1 | $ | — |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Interest expense | $ | 33.8 | $ | 35.3 | |||||||
Other income, net | 4.6 | 5.5 |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Income from consolidated operations before income taxes | $ | 207.1 | $ | 164.4 | |||||||
Income tax expense | 58.6 | 30.1 | |||||||||
Effective tax rate | 28.3 | % | 18.3 | % |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Income from unconsolidated operations | $ | 13.3 | $ | 10.4 | |||||||
Three months ended February 28, | |||||
2020 Earnings per share – diluted | $ | 0.54 | |||
Increase in operating income | 0.20 | ||||
Increase in transaction and integration expenses, including impact of net discrete tax item related to FONA acquisition | (0.12) | ||||
Increase in unconsolidated income | 0.01 | ||||
Decrease in interest expense | 0.01 | ||||
Impact of change in effective income tax rate, excluding taxes on special charges and transaction and integration expenses | (0.04) | ||||
2021 Earnings per share – diluted | $ | 0.60 |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
(in millions) | |||||||||||
Net sales | $ | 946.8 | $ | 699.5 | |||||||
Percent increase (decrease) | 35.4 | % | (6.1) | % | |||||||
Segment operating income | $ | 189.9 | $ | 119.6 | |||||||
Segment operating income margin | 20.1 | % | 17.1 | % |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net sales | $ | 534.7 | $ | 512.5 | |||||||
Percent increase | 4.3 | % | 5.3 | % | |||||||
Segment operating income | $ | 72.6 | $ | 75.6 | |||||||
Segment operating income margin | 13.6 | % | 14.8 | % |
February 28, 2021 | November 30, 2020 | ||||||||||
Forward foreign currency: | |||||||||||
Notional value | $ | 558.9 | $ | 383.8 | |||||||
Unrealized net loss | (10.5) | (6.8) | |||||||||
Cross currency swaps: | |||||||||||
Notional value | 538.6 | 524.4 | |||||||||
Unrealized net loss | (21.1) | (18.8) |
February 28, 2021 | November 30, 2020 | ||||||||||
Notional value | $ | 350.0 | $ | 350.0 | |||||||
Unrealized net gain | 31.2 | 43.1 |
For the year ended November 30, 2020 | For the three months ended | Estimated for the year ending November 30, 2021 | |||||||||||||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||||||||||||||
Gross profit | $ | 2,300.4 | $ | 577.5 | $ | 469.9 | |||||||||||||||||
Impact of transaction and integration expenses included in cost of goods sold (1) | — | 6.3 | — | ||||||||||||||||||||
Adjusted gross profit | $ | 2,300.4 | $ | 583.8 | $ | 469.9 | |||||||||||||||||
Adjusted gross profit margin (2) | 41.1 | % | 39.4 | % | 38.8 | % | |||||||||||||||||
Operating income | $ | 999.5 | $ | 236.3 | $ | 194.2 | |||||||||||||||||
Impact of transaction and integration expenses included in cost of goods sold (1) | — | 6.3 | — | ||||||||||||||||||||
Impact of other transaction and integration expenses (1) | 12.4 | 18.8 | — | ||||||||||||||||||||
Impact of special charges | 6.9 | 1.1 | 1.0 | ||||||||||||||||||||
Adjusted operating income | $ | 1,018.8 | $ | 262.5 | $ | 195.2 | |||||||||||||||||
Adjusted operating income margin (3) | 18.2 | % | 17.7 | % | 16.1 | % | |||||||||||||||||
Income tax expense | $ | 174.9 | $ | 58.6 | $ | 30.1 | |||||||||||||||||
Impact of transaction and integration expenses (1) | 1.9 | (5.9) | — | ||||||||||||||||||||
Impact of special charges | 2.1 | 0.3 | 0.3 | ||||||||||||||||||||
Adjusted income tax expense | $ | 178.9 | $ | 53.0 | $ | 30.4 | |||||||||||||||||
Adjusted income tax rate (4) | 19.9 | % | 22.7 | % | 18.4 | % | |||||||||||||||||
Net income | $ | 747.4 | $ | 161.8 | $ | 144.7 | |||||||||||||||||
Impact of transaction and integration expenses (1) | 10.5 | 31.0 | — | ||||||||||||||||||||
Impact of special charges | 4.8 | 0.8 | 0.7 | ||||||||||||||||||||
Adjusted net income | $ | 762.7 | $ | 193.6 | $ | 145.4 | |||||||||||||||||
Earnings per share – diluted | $ | 2.78 | $ | 0.60 | $ | 0.54 | $2.77 to $2.82 | ||||||||||||||||
Impact of transaction and integration expenses (1) | 0.04 | 0.12 | — | 0.18 | |||||||||||||||||||
Impact of special charges | 0.01 | — | — | 0.02 | |||||||||||||||||||
Adjusted earnings per share – diluted | $ | 2.83 | $ | 0.72 | $ | 0.54 | $2.97 to $3.02 |
(1) | Transaction and integration expenses include transaction and integration expenses associated with our acquisitions of Cholula and FONA. These expenses include 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 related to deferred State income tax expense, directly related to our December 2020 acquisition of FONA, of $11.4 million or $0.04 per diluted share. | ||||||||||||||||
(2) | Adjusted gross profit margin is calculated as adjusted gross profit as a percentage of net sales for each period presented. | ||||||||||||||||
(3) | Adjusted operating income margin is calculated as adjusted operating income as a percentage of net sales for each period presented. | ||||||||||||||||
(4) | Adjusted income tax rate is calculated as adjusted income tax expense as a percentage of income from consolidated operations before income taxes excluding transaction and integration expenses and special charges of $233.3 million for the three months ended February 28, 2021, $165.4 million for the three months ended February 29, 2020, and $900.8 million for the year ended November 30, 2020. | ||||||||||||||||
Three Months Ended February 28, 2021 | |||||||||||
Percentage Change as Reported | Impact of Foreign Currency Exchange | Percentage Change on Constant Currency Basis | |||||||||
Net sales: | |||||||||||
Consumer segment: | |||||||||||
Americas | 29.8 | % | 0.3 | % | 29.5 | % | |||||
EMEA | 34.6 | % | 8.4 | % | 26.2 | % | |||||
Asia/Pacific | 64.7 | % | 9.7 | % | 55.0 | % | |||||
Total Consumer | 35.4 | % | 3.2 | % | 32.2 | % | |||||
Flavor Solutions segment: | |||||||||||
Americas | 2.1 | % | (0.3) | % | 2.4 | % | |||||
EMEA | 1.4 | % | 1.3 | % | 0.1 | % | |||||
Asia/Pacific | 25.8 | % | 8.2 | % | 17.6 | % | |||||
Total Flavor Solutions | 4.3 | % | 0.9 | % | 3.4 | % | |||||
Total net sales | 22.2 | % | 2.2 | % | 20.0 | % | |||||
Adjusted operating income: | |||||||||||
Consumer segment | 58.8 | % | 4.6 | % | 54.2 | % | |||||
Flavor Solutions segment | (4.0) | % | 0.2 | % | (4.2) | % | |||||
Total adjusted operating income | 34.5 | % | 2.9 | % | 31.6 | % |
Projections for the Year Ending November 30, 2021 | |||||
Percentage change in net sales | 8% to 10% | ||||
Impact of favorable foreign currency exchange | 2 | % | |||
Percentage change in net sales in constant currency | 6% to 8% |
Percentage change in adjusted operating income | 9% to 11% | ||||
Impact of favorable foreign currency exchange | 2 | % | |||
Percentage change in adjusted operating income in constant currency | 7% to 9% |
Percentage change in adjusted earnings per share — diluted | 5% to 7% | ||||
Impact of favorable foreign currency exchange | 2 | % | |||
Percentage change in adjusted earnings per share — diluted in constant currency | 3% to 5% |
February 28, 2021 | November 30, 2020 | |||||||
Net income | $ | 764.5 | $ | 747.4 | ||||
Interest expense | 134.1 | 135.6 | ||||||
Income tax expense | 203.4 | 174.9 | ||||||
Depreciation and amortization | 171.2 | 165.0 | ||||||
EBITDA | $ | 1,273.2 | $ | 1,222.9 | ||||
Adjustments to EBITDA (1) | 142.9 | 89.5 | ||||||
Adjusted EBITDA | $ | 1,416.1 | $ | 1,312.4 | ||||
Net debt (2) | $ | 5,418.3 | $ | 4,555.8 | ||||
Leverage ratio (1) | 3.8 | 3.5 |
(1) | Adjustments to EBITDA are determined under the leverage ratio covenant in our previously described revolving credit facilities and synthetic lease agreement. Those Adjustments to EBITDA include special charges, stock-based compensation expense, interest income, transaction and integration expenses, and pro forma Adjusted EBITDA of businesses acquired by McCormick in the trailing twelve-month period. That pro forma Adjusted EBITDA of acquired businesses represents the pre-acquisition date Adjusted EBITDA of an acquired business for a period that, together with that acquired business’ Adjusted EBITDA subsequent to the acquisition included in McCormick’s consolidated results, comprises twelve months of Adjusted EBITDA of the acquired business for the trailing twelve-month period. Pro forma Adjusted EBITDA of acquired businesses included in Adjustments to EBITDA for the trailing twelve-month periods ended February 28, 2021 and November 30, 2020, were $51.9 million and $32.0 million, respectively. | |||||||
(2) | The leverage ratio covenant in our previously described revolving credit facilities and synthetic lease agreement defines 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 exceeds $75.0 million. | |||||||
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net cash (used in) provided by operating activities | $ | (32.2) | $ | 44.8 | |||||||
Net cash used in investing activities | (755.2) | (38.3) | |||||||||
Net cash provided by financing activities | 612.7 | 7.1 |
Three months ended | |||||||||||
February 28, 2021 | February 29, 2020 | ||||||||||
Net (decrease) increase in short-term borrowings | $ | (292.4) | $ | 125.2 | |||||||
Proceeds from issuance of long-term debt, net of debt issuance costs | 999.3 | — | |||||||||
Repayments of long-term debt | (1.8) | (20.5) | |||||||||
Net cash provided from borrowing activities | $ | 705.1 | $ | 104.7 |
2021 | 2020 | ||||||||||
Number of shares of common stock repurchased | — | 0.24 | |||||||||
Dollar amount | $ | 0.1 | $ | 19.9 |
February 28, 2021 | November 30, 2020 | ||||||||||
Leverage ratio | 3.8 | 3.5 |
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 | |||||||||||||||||||
December 1, 2020 to December 31, 2020 | CS – 0 | $ | — | — | $585 million | ||||||||||||||||||
CSNV – 0 | $ | — | — | ||||||||||||||||||||
January 1, 2021 to January 31, 2021 | CS – 0 | $ | — | — | $585 million | ||||||||||||||||||
CSNV – 0 | $ | — | — | ||||||||||||||||||||
February 1, 2021 to February 28, 2021 | CS – 550 | $ | 90.27 | 550 | $585 million | ||||||||||||||||||
CSNV – 0 | $ | — | — | ||||||||||||||||||||
Total | CS – 550 | $ | 90.27 | 550 | $585 million | ||||||||||||||||||
CSNV – 0 | $ | — | — |
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. | |||||||||||||
(ii) | By-Laws | |||||||||||||
* | Management contract or compensatory plan or arrangement. |
McCORMICK & COMPANY, INCORPORATED | |||||||||||
March 30, 2021 | By: | /s/ Michael R. Smith | |||||||||
Michael R. Smith | |||||||||||
Executive Vice President & Chief Financial Officer | |||||||||||
March 30, 2021 | By: | /s/ Christina M. McMullen | |||||||||
Christina M. McMullen | |||||||||||
Vice President & Controller |
Date: March 30, 2021 | /s/ Lawrence E. Kurzius | ||||
Lawrence E. Kurzius | |||||
Chairman, President & Chief Executive Officer |
Date: March 30, 2021 | /s/ Michael R. Smith | ||||
Michael R. Smith | |||||
Executive Vice President & Chief Financial Officer |
Date: March 30, 2021 | /s/ Lawrence E. Kurzius | ||||
Lawrence E. Kurzius | |||||
Chairman, President & Chief Executive Officer | |||||
Date: March 30, 2021 | /s/ Michael R. Smith | ||||
Michael R. Smith | |||||
Executive Vice President & Chief Financial Officer | |||||
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) - USD ($) shares in Millions, $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Net sales | $ 1,481.5 | $ 1,212.0 |
Cost of goods sold | 904.0 | 742.1 |
Gross profit | 577.5 | 469.9 |
Selling, general and administrative expense | 321.3 | 274.7 |
Transaction and integration expenses | 18.8 | 0.0 |
Special charges | 1.1 | 1.0 |
Operating income | 236.3 | 194.2 |
Interest expense | 33.8 | 35.3 |
Other income, net | 4.6 | 5.5 |
Income from consolidated operations before income taxes | 207.1 | 164.4 |
Income tax expense | 58.6 | 30.1 |
Net income from consolidated operations | 148.5 | 134.3 |
Income from unconsolidated operations | 13.3 | 10.4 |
Net income | $ 161.8 | $ 144.7 |
Earnings per share - basic (usd per share) | $ 0.61 | $ 0.54 |
Average shares outstanding - basic (shares) | 267.1 | 266.0 |
Earnings per share - diluted (usd per share) | $ 0.60 | $ 0.54 |
Average shares outstanding - diluted (shares) | 269.9 | 268.7 |
Common Stock | ||
Cash dividends paid per common share (usd per share) | $ 0.34 | $ 0.31 |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract] | ||
Net income | $ 161.8 | $ 144.7 |
Net income attributable to non-controlling interest | 0.8 | 0.9 |
Other comprehensive income (loss): | ||
Unrealized components of pension and postretirement plans | 1.1 | 2.4 |
Currency translation adjustments | 45.7 | (20.0) |
Change in derivative financial instruments | (1.0) | (0.7) |
Deferred taxes | 3.0 | (1.7) |
Comprehensive income | 48.8 | (20.0) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 211.4 | $ 125.6 |
Accounting Policies |
3 Months Ended |
---|---|
Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | ACCOUNTING POLICIES Basis of Presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all the information and notes required by United States generally accepted accounting principles (U.S. GAAP) for complete financial statements. In our opinion, the accompanying condensed consolidated financial statements contain all adjustments, which are of a normal and recurring nature, necessary to present fairly the financial position and the results of operations for the interim periods presented. In September 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 stock, Common Stock and Common Stock Non-Voting. 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. The results of consolidated operations for the three-month period ended February 28, 2021 are not necessarily indicative of the results to be expected for the full year. Historically, our net sales, net income and cash flow from operations have been lower in the first half of the fiscal year and higher in the second half. The historical increase in net sales, net income and cash flow from operations in the second half of the year has largely been due to the consumer business cycle in the U.S., where customers typically purchase more products in the fourth quarter due to the Thanksgiving and Christmas holiday seasons. For further information, refer to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended November 30, 2020. Impact of COVID-19 On March 11, 2020, the World Health Organization designated a new coronavirus (“COVID-19”) as a global pandemic. Governments around the world either recommended or mandated actions to slow the transmission of the virus that included shelter-in-place orders, quarantines, limitation on crowd size, closures of dine-in restaurants and bars, and significant restrictions on travel, as well as work restrictions that prohibited many employees from going to work. Uncertainty with respect to the economic effects of the pandemic has significantly impacted not only our operating results but also the global economy. The extent and nature of government actions varied during the three months ended February 28, 2021 and February 29, 2020, based upon the then-current extent and severity of the COVID-19 pandemic within their respective countries and localities. We are partnering with our customers to react to consumer demand changes associated with COVID-19. 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 in the three months ended February 28, 2021. The impact of COVID-19 on our consumer segment during that period 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 period 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 impacting our flavor solutions customers included the following: (i) with respect to dine-in restaurants, closures, limitations on dine-in capacity, or restrictions on the operations of those restaurants to carry-out or delivery only; and (ii) with respect to quick service restaurants, limitations on operations to drive-through pick-up or delivery. Those negative 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 the global COVID-19 pandemic on our consolidated operating results during the three months ended February 29, 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. As the COVID-19 pandemic progresses, we expect the largest factor impacting our fiscal 2021 performance will be the relative balance of at-home versus away-from-home food demand. The pace and shape of the COVID-19 recovery as well as the impact and extent of potential resurgences is not presently known. Revenue Recognition The following supplements the description of our accounting policies with respect to revenue recognition contained in note 1 of notes to consolidated financial statements included in our Form 10-K for the year ended November 30, 2020: Our revenue arrangements generally include a single performance obligation relating to the fulfillment of a customer order, which in some cases are governed by a master sales agreement, for the purchase of our products. We recognize revenue at a point in time when control of the ordered products passes to the customer, which principally occurs either upon shipment or delivery to the customer or upon pick-up by the customer, depending upon terms included in the particular customer arrangement. Accounting Pronouncements Adopted in 2021 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. This new standard was adopted effective December 1, 2020 and will be applied upon recognition of any future goodwill impairment charge. We do not expect this ASU 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 instituted a new model for recognizing credit losses on financial instruments that are not measured at fair value. This standard was adopted by the Company on December 1, 2020. As this ASU did not have a material impact on our consolidated financial statements upon adoption, a cumulative-effect adjustment to retained earnings was not necessary. Recently Issued Accounting Pronouncements — Pending Adoption 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 rates 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.
|
Business Combinations |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 offerings 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. 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 as further described in note 2 of the financial statements in our 2020 Annual Report on Form 10-K for the year ended November 30, 2020. 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 was recognized in cost of goods sold during the three months ended February 28, 2021, as the related inventory was sold. During the first quarter of 2021, we adjusted our preliminary purchase accounting associated with the acquired assets and liabilities which increased goodwill by $1.2 million. Independent valuations of the fair value of acquired assets and liabilities of Cholula, including identified intangible assets and goodwill, remain in process as of February 28, 2021, but will be finalized within the allowable measurement period. Acquisition of FONA International, LLC 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 $706.6 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. At the time of the acquisition, annual sales of FONA were approximately $114 million. The results of FONA’s operations have been included in our financial statements as a component of our flavor solutions segments from the date of acquisition. The purchase price of FONA 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 preliminary allocation, net of cash acquired, of the fair value of the FONA acquisition is summarized in the table below (in millions):
We determined the preliminary fair value of intangible assets using the following methodologies. We valued the acquired brand names and trademarks and intellectual property using the relief from royalty method, an income approach. We valued the acquired customer relationships using the excess earnings method, an income approach. 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 $1.4 million that was recognized in cost of goods sold during the three months ended February 28, 2021, as the related inventory was sold. Raw materials and packaging inventory was valued using the replacement cost approach. The preliminary valuation of the acquired net assets of FONA includes $49.0 million allocated to indefinite-lived brand assets, $173.0 million allocated to customer relationships with a weighted-average life of 15 years and $44.0 million allocated to intellectual property with a weighted-average life of 12 years. As a result of the acquisition, we recognized a total of $389.6 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 customers for value-added flavor solutions, and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. Our aggregate income tax basis in the acquired intangible assets and goodwill approximates their aggregate book value at the acquisition date. The final allocation of the fair value of the acquired net assets of FONA, including the residual amount of goodwill, was not complete as of February 28, 2021, but will be finalized within the allowable measurement period. Transaction and Integration Expenses Associated with the Cholula and FONA Acquisitions We expect transaction and integration expenses related to our acquisitions of Cholula and FONA to total approximately $35 million and $30 million, respectively. Of those total transaction and integration expenses, transaction expenses of $12.4 million were incurred in 2020. We incurred an additional $25.1 million of transaction and integration costs related to Cholula and FONA during the three months ended February 28, 2021. We anticipate incurring the remainder of those transaction and integration expenses in the balance of fiscal 2021. The following are the transaction and integration expenses recognized during the three months ended February 28, 2021 relating to the Cholula and FONA acquisitions (in millions):
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Special Charges |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Charges [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Charges [Text Block] | 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 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, 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 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. The following is a summary of special charges recognized in the three months ended February 28, 2021 and February 29, 2020 (in millions):
We continue to evaluate changes to our organization structure to enable us to reduce fixed costs, simplify or improve processes, and improve our competitiveness. In 2017, our Management Committee approved a multi-year initiative during which we expect 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. We expect the cost of the GE initiative—to be recognized as “Special charges” in our consolidated income statement over its expected 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 the related costs of GE implementation and transition, including outside consulting and other costs, and approximately forty percent will be attributable to severance and related benefit payments, all directly related to the initiative. While no special charges were incurred relating to our GE initiative during the three months ended February 28, 2021, we have spent a cumulative total of $39.9 million on this initiative through that date. During the three months ended February 28, 2021, we recorded $1.1 million of special charges consisting of $0.6 million of streamlining actions in EMEA and $0.5 million of streamlining actions in the Americas. During the three months ended February 29, 2020, we recorded $1.0 million of special charges, all of which related to our GE initiative, including $0.5 million of third-party expenses, $0.3 million related to employee severance and related benefits, and $0.2 million related to other costs. As of February 28, 2021, reserves associated with special charges, which are expected to be paid during the remainder of fiscal year 2021, are included in accounts payable and other accrued liabilities in our consolidated balance sheet. The following is a breakdown by business segments of special charges for the three months ended February 28, 2021 and February 29, 2020 (in millions):
|
Goodwill |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill Disclosure | GOODWILL The changes in the carrying amount of goodwill by business segment for the three months ended February 28, 2021 are as follows (in millions):
During the three months ended February 28, 2021, a preliminary valuation of the net assets of FONA acquired in December 2020, resulted in the assignment of $389.6 million of goodwill to the flavor solutions segment. During the three months ended February 28, 2021, we have made changes in the preliminary allocation of the purchase price of Cholula which resulted in an increase in goodwill of $0.8 million to the consumer segment and $0.4 million to the flavor solutions segment.
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Financial Instruments |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financing Arrangements and Financial Instruments | FINANCING ARRANGEMENTS AND FINANCIAL INSTRUMENTS In February 2021, we issued $500.0 million of 0.90% notes due February 15, 2026, with cash proceeds received of $495.7 million, net of discounts and underwriters' fees. Also in February 2021, we issued $500.0 million of 1.85% notes due February 15, 2031, with cash proceeds received of $492.8 million, net of discounts and underwriters' fees. Interest is payable semiannually on both of these notes in arrears in February and August of each year. The net proceeds from these issuances were used to pay down short-term borrowings, including a portion of the $1,443.0 million of commercial paper issued to finance our acquisitions of Cholula and FONA, and for general corporate purposes. We use derivative financial instruments to enhance our ability to manage risk, including foreign currency, net investment 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 exchange risk. 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 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 February 28, 2021, we had foreign currency exchange contracts to purchase or sell $558.9 million of foreign currencies as compared to $383.8 million at November 30, 2020. 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. All foreign currency exchange contracts outstanding at February 28, 2021 have durations of less than 18 months, including $170.3 million of notional contracts that have durations of less than seven days and are used to hedge short-term cash flow funding. 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 both exposure to currency fluctuations in certain intercompany loans between subsidiaries as well as currency exposure to third-party non-functional currency assets or liabilities. At February 28, 2021, the notional value of these contracts was $423.0 million. 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. We also utilize cross currency interest rate swap contracts that are designated as net investment hedges. As of February 28, 2021, 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. Any gains or losses on net investment hedges are included in foreign currency translation adjustments in accumulated other comprehensive loss. Interest rate risk. We finance a portion of our operations with both fixed and variable rate debt instruments, principally 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 February 28, 2021, we have outstanding interest rate swap contracts for a notional amount of $350 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%, which expire in November 2025, and 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 realized gain or loss on these swap contracts was offset by a corresponding increase or decrease of the value of the hedged debt. All derivatives are recognized at fair value in the balance sheet and recorded in either other current assets, other long-term assets, other accrued liabilities or other long-term liabilities, depending upon their nature and maturity. Hedge ineffectiveness was not material. The following table discloses the notional amount and fair values of derivative instruments on our balance sheet (in millions):
The following tables disclose the impact of derivative instruments on our other comprehensive income ("OCI"), accumulated other comprehensive income ("AOCI") and our consolidated income statement for the three-month periods ended February 28, 2021 and February 29, 2020 (in millions):
The gains (losses) recognized on fair value hedges relating to currency exposure on third-party non-functional currency assets or liabilities were not material during the three-months ended February 28, 2021 and February 29, 2020.
For all cash flow and settled interest rate fair value hedge derivatives, the net amount of accumulated other comprehensive income (loss) expected to be reclassified in the next 12 months is $1.1 million as a decrease to earnings.
For all net investment hedges, no amounts have been reclassified out of accumulated 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.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | 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 the reporting entity’s own assumptions. At February 28, 2021 and November 30, 2020, we had no financial assets or liabilities that were subject to a level 3 fair value measurement. Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions):
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 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 derivatives, foreign currency derivatives, and cross currency contracts are based on values for similar instruments using models with market-based inputs. The following table sets forth the carrying amounts and fair values of our long-term debt including the current portion thereof (in millions):
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Employee Benefit and Retirement Plans |
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Retirement Benefits [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 also 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 years 2018 and 2017, we made significant changes to our employee benefit and retirement plans that froze the accrual of future benefits under certain defined benefit pension plans in the U.S. and certain foreign locations. Although our defined benefit plans in the U.S., United Kingdom and Canada 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. The following table presents the components of our pension expense (income) of the defined benefit plans for the three months ended February 28, 2021 and February 29, 2020 (in millions):
During the three months ended February 28, 2021 and February 29, 2020, we contributed $2.3 million and $1.9 million, respectively, to our pension plans. Total contributions to our pension plans in fiscal year 2020 were $11.9 million. The following table presents the components of our other postretirement benefits expense (income) for the three months ended February 28, 2021 and February 29, 2020 (in millions):
All of the amounts in the tables above for pension expense and other postretirement benefits expense, other than service cost, were included in the income statement caption "Other income, net" within our consolidated income statements. The aggregate amount of pension and other postretirement benefits (income) expenses, excluding service cost components, were $(1.8) million and $(2.8) million for the three months ended February 28, 2021 and February 29, 2020, respectively.
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Stock-based Compensation |
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Share-based Payment Arrangement [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 the fourth quarter of 2020, price-vested stock options. The following table sets forth the stock-based compensation expense recorded in selling, general and administrative ("SG&A") expense for the three months ended February 28, 2021 and February 29, 2020 (in millions):
Our 2021 annual grant of stock options and RSUs is expected to occur in the second quarter, similar to the 2020 annual grant. The following is a summary of our stock option activity for the three months ended February 28, 2021 and February 29, 2020:
As of February 28, 2021, the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $135.2 million and for options currently exercisable was $115.0 million. The total intrinsic value of all options exercised during the three months ended February 28, 2021 and February 29, 2020 was $2.2 million and $8.6 million, respectively. The following is a summary of our RSU activity for the three months ended February 28, 2021 and February 29, 2020:
The following is a summary of our Price-Vested Stock Options activity for the three months ended February 28, 2021:
The following is a summary of our LTPP activity for the three months ended February 28, 2021 and February 29, 2020:
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Income Taxes |
3 Months Ended |
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Feb. 28, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes for the three months ended February 28, 2021 included $5.3 million of net discrete tax expense consisting principally of the following: (i) $11.4 million of deferred state tax expense directly related to our December 2020 acquisition of FONA, (ii) $4.5 million of tax benefits associated with the release of a valuation allowance due to a change in judgment about realizability of deferred tax assets, and (iii) $1.2 million of tax benefits from the reversal of certain reserves for unrecognized tax benefits associated with the resolution of tax uncertainties. Income taxes for the three months ended February 29, 2020 included $10.4 million of net discrete tax benefits consisting principally of the following: (i) $9.9 million of tax benefits associated with an intra-entity asset transfer that occurred during the first quarter, (ii) $1.8 million of excess tax benefits associated with share-based compensation, and (iii) $1.4 million of expense related to the revaluation of deferred tax liabilities resulting from enacted legislation in certain non-U.S. jurisdictions. Other than additions for current year tax positions and the reversal of unrecognized tax benefits noted above, there were no significant changes to unrecognized tax benefits during the three months ended February 28, 2021. As of February 28, 2021, we believe the reasonably possible total amount of unrecognized tax benefits that could increase or decrease in the next 12 months as a result of various statute expirations, audit closures, and/or tax settlements would not be material to our consolidated financial statements.
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Earnings Per Share and Stock Issuances |
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Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE AND STOCK ISSUANCES | EARNINGS PER SHARE The following table sets forth the reconciliation of average shares outstanding for the three months ended February 28, 2021 and February 29, 2020 (in millions):
The following table sets forth the stock options and RSUs for the three months ended February 28, 2021 and February 29, 2020 that were not considered in our earnings per share calculation since they were anti-dilutive (in millions):
The following table sets forth the common stock activity for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Accumulated Other Comprehensive Income (Loss) |
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Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSSThe following table sets forth the components of accumulated other comprehensive income (loss), net of tax, where applicable (in millions):
(1)During the three months ended February 28, 2021, the foreign currency translation adjustment of accumulated other comprehensive loss decreased on a net basis by $49.1 million, including the impact of a $2.0 million increase associated with net investment hedges. These net investment hedges are more fully described in note 5. The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the three months ended February 28, 2021 and February 29, 2020 (in millions):
(1) This accumulated other comprehensive income (loss) component, including settlement losses, is included in the computation of total pension expense and other postretirement benefits expense (refer to note 7 for additional details).
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Business Segments |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENTS | BUSINESS SEGMENTS We operate in two business segments: consumer and flavor solutions. The consumer and flavor solutions segments manufacture, market and distribute spices, herbs, seasoning mixes, condiments and other flavorful products throughout the world. Our consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the “McCormick” brand and a variety of brands around the world, including “French’s”, “Frank’s RedHot”, “OLD BAY”, “Lawry’s”, “Zatarain’s”, “Simply Asia”, “Thai Kitchen”, “Ducros”, “Vahine”, “Cholula”, “Schwartz”, “Club House”, “Kamis”, “Kohinoor”, “DaQiao”, “La Drogheria”, “Stubb's”, and “Gourmet Garden”. Our flavor solutions segment sells to food manufacturers and the foodservice industry both directly and indirectly through distributors, with the exception of our businesses in China and India, where foodservice sales are managed by and reported in our consumer segment. In each of our segments, we produce and sell many individual products which are similar in composition and nature. With their primary attribute being flavor, we regard the products within each of our segments to be fairly homogenous. It is impracticable to segregate and identify sales and profits for each of these individual product lines. We measure segment performance based on operating income excluding special charges, as this activity is managed separately from the business segments. We also exclude transaction and integration expenses related to our acquisitions of Cholula and FONA from our measure of segment performance as these expenses are similarly managed separately from the business segments. These transaction and integration expenses excluded from our segment performance measure include the amortization of the acquisition-date fair value adjustment of inventories that is included in Cost of goods sold, costs directly associated with that acquisition and costs associated with integrating the businesses. Although the segments are managed separately due to their distinct distribution channels and marketing strategies, manufacturing and warehousing are often integrated to maximize cost efficiencies. We do not segregate jointly utilized assets by individual segment for internal reporting, evaluating performance or allocating capital. Because of manufacturing integration for certain products within the segments, products are not sold from one segment to another but rather inventory is transferred at cost. Intersegment sales are not material.
A reconciliation of operating income excluding special charges and, for 2021, transaction and integration expenses, to operating income is as follows (in millions):
The following table sets forth our net sales, by geographic area, for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Accounting Policies (Policies) |
3 Months Ended |
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Feb. 28, 2021 | |
Accounting Policies [Abstract] | |
Accounting and disclosure charges | Revenue Recognition The following supplements the description of our accounting policies with respect to revenue recognition contained in note 1 of notes to consolidated financial statements included in our Form 10-K for the year ended November 30, 2020: Our revenue arrangements generally include a single performance obligation relating to the fulfillment of a customer order, which in some cases are governed by a master sales agreement, for the purchase of our products. We recognize revenue at a point in time when control of the ordered products passes to the customer, which principally occurs either upon shipment or delivery to the customer or upon pick-up by the customer, depending upon terms included in the particular customer arrangement. Accounting Pronouncements Adopted in 2021 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. This new standard was adopted effective December 1, 2020 and will be applied upon recognition of any future goodwill impairment charge. We do not expect this ASU 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 instituted a new model for recognizing credit losses on financial instruments that are not measured at fair value. This standard was adopted by the Company on December 1, 2020. As this ASU did not have a material impact on our consolidated financial statements upon adoption, a cumulative-effect adjustment to retained earnings was not necessary. Recently Issued Accounting Pronouncements — Pending Adoption 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 rates 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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Business Combinations (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The preliminary allocation, net of cash acquired, of the fair value of the FONA acquisition is summarized in the table below (in millions):
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Business Combination, Separately Recognized Transactions | The following are the transaction and integration expenses recognized during the three months ended February 28, 2021 relating to the Cholula and FONA acquisitions (in millions):
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Special Charges (Tables) |
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Segment Reporting Information [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Special Charges Summary [Table Text Block] | The following is a summary of special charges recognized in the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Special Charges Summary by Segment [Table Text Block] | The following is a breakdown by business segments of special charges for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Goodwill (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by business segment for the three months ended February 28, 2021 are as follows (in millions):
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Financial Arrangements and Financial Instruments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair values of derivative instruments on balance sheet | The following table discloses the notional amount and fair values of derivative instruments on our balance sheet (in millions):
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Impact of fair value and cash flow hedges on other comprehensive income, accumulated other comprehensive income and income statement | The following tables disclose the impact of derivative instruments on our other comprehensive income ("OCI"), accumulated other comprehensive income ("AOCI") and our consolidated income statement for the three-month periods ended February 28, 2021 and February 29, 2020 (in millions):
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Fair Value Measurements (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and liabilities measured at fair value on recurring basis | Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions):
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Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying amounts and fair values of our long-term debt including the current portion thereof (in millions):
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Employee Benefit and Retirement Plans (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of defined benefit plans disclosures | The following table presents the components of our pension expense (income) of the defined benefit plans for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Schedule of costs of retirement plans | The following table presents the components of our other postretirement benefits expense (income) for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Stock-Based Compensation (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation in Selling, General and Administrative Expense | The following table sets forth the stock-based compensation expense recorded in selling, general and administrative ("SG&A") expense for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Summary of Option Activity | The following is a summary of our stock option activity for the three months ended February 28, 2021 and February 29, 2020:
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Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following is a summary of our RSU activity for the three months ended February 28, 2021 and February 29, 2020:
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Schedule of Share Based Compensation, Performance Shares, Activity | The following is a summary of our LTPP activity for the three months ended February 28, 2021 and February 29, 2020:
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Price Vested Stock Options | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement, Activity | The following is a summary of our Price-Vested Stock Options activity for the three months ended February 28, 2021:
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Earnings Per Share and Stock Issuances (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of average shares outstanding | The following table sets forth the reconciliation of average shares outstanding for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Anti-dilutive securities not considered in earnings per share calculation | The following table sets forth the stock options and RSUs for the three months ended February 28, 2021 and February 29, 2020 that were not considered in our earnings per share calculation since they were anti-dilutive (in millions):
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Common stock activity | The following table sets forth the common stock activity for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Accumulated Other Comprehensive Income (Loss) (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Feb. 28, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accumulated other comprehensive income (loss) | The following table sets forth the components of accumulated other comprehensive income (loss), net of tax, where applicable (in millions):
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Reclassification out of Accumulated Other Comprehensive Income | The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the three months ended February 28, 2021 and February 29, 2020 (in millions):
(1) This accumulated other comprehensive income (loss) component, including settlement losses, is included in the computation of total pension expense and other postretirement benefits expense (refer to note 7 for additional details).
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Business Segments (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business segments |
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Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of operating income excluding special charges and, for 2021, transaction and integration expenses, to operating income is as follows (in millions):
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Schedule of Disclosure on Geographic Areas | The following table sets forth our net sales, by geographic area, for the three months ended February 28, 2021 and February 29, 2020 (in millions):
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Business Combinations - Transaction and Integration Expenses (Details) |
3 Months Ended |
---|---|
Feb. 28, 2021
USD ($)
| |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Acquisition, Transaction Costs | $ 13,800,000 |
Business Combination, Integration Related Costs | 5,000,000.0 |
Total transaction and integration costs | 25,100,000 |
Cost of Sales | |
Business Combination, Separately Recognized Transactions [Line Items] | |
Business Acquisition, Transaction Costs | $ 6,300,000 |
Goodwill - Segment Goodwill Rollforward (Details) $ in Millions |
3 Months Ended |
---|---|
Feb. 28, 2021
USD ($)
| |
Goodwill [Line Items] | |
Beginning of year | $ 4,986.3 |
Ending of year | 5,397.0 |
Consumer | |
Goodwill [Line Items] | |
Beginning of year | 3,711.2 |
Increases in goodwill from acquisitions | 0.0 |
Changes in preliminary purchase price allocation | 0.8 |
Foreign currency fluctuations | 15.6 |
Ending of year | 3,727.6 |
Flavor Solutions Segment | |
Goodwill [Line Items] | |
Beginning of year | 1,275.1 |
Increases in goodwill from acquisitions | 389.6 |
Changes in preliminary purchase price allocation | 0.4 |
Foreign currency fluctuations | 4.3 |
Ending of year | $ 1,669.4 |
Goodwill - Additional Disclosures (Details) $ in Millions |
3 Months Ended |
---|---|
Feb. 28, 2021
USD ($)
| |
Flavor Solutions Segment | |
Goodwill [Line Items] | |
Increases in goodwill from acquisitions | $ 389.6 |
Changes in preliminary purchase price allocation | 0.4 |
Consumer | |
Goodwill [Line Items] | |
Increases in goodwill from acquisitions | 0.0 |
Changes in preliminary purchase price allocation | $ 0.8 |
Financial Arrangements and Financial Instruments - Impact of Fair Value Hedges on Other Comprehensive Income, Accumulated Other Comprehensive Income and Income Statement (Details) - Fair Value Hedging - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Interest Expense | Interest rate contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Interest income (expense) | $ 2.0 | $ 0.5 |
Other Income | Foreign exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), Realized | (2.1) | (2.2) |
Other Income | Loans Payable | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Foreign Currency Transaction Gain (Loss), Realized | $ 2.4 | $ 2.0 |
Employee Benefit And Retirement Plans - Additional Information (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
Nov. 30, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | |||
Other income, net | $ 4.6 | $ 5.5 | |
Payment for Pension Benefits | 2.3 | 1.9 | $ 11.9 |
Pension and other postretirement costs | 295.9 | $ 296.3 | |
Accounting Standards Update 2017-07 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Other income, net | $ (1.8) | $ (2.8) |
Employee Benefit And Retirement Plans - Components of Pension Expense of Defined benefit plans (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Defined Benefit Plan Disclosure [Line Items] | ||
Other income, net | $ 4.6 | $ 5.5 |
Domestic Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.9 | 0.8 |
Interest costs | 6.5 | 7.3 |
Expected return on plan assets | (10.3) | (10.1) |
Amortization of prior service costs | 0.1 | 0.1 |
Recognized net actuarial loss | 2.8 | 2.0 |
Total pension expense | 0.0 | 0.1 |
Foreign Plan [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0.3 | 0.2 |
Interest costs | 1.7 | 1.9 |
Expected return on plan assets | (3.5) | (3.8) |
Amortization of prior service costs | 0.0 | 0.0 |
Recognized net actuarial loss | 0.6 | 0.5 |
Total pension expense | (0.9) | (1.2) |
Accounting Standards Update 2017-07 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Other income, net | $ (1.8) | $ (2.8) |
Employee Benefit and Retirement Plans - Components of Other Postretirement Benefit Expenses (Details) - Other Postretirement Benefit Plan - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 0.5 | $ 0.5 |
Interest costs | 0.4 | 0.5 |
Amortization of prior service costs | (0.1) | (1.1) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0.0 | 0.1 |
Total other postretirement expense | $ 0.8 | $ (0.2) |
Stock-Based Compensation - Additional Information (Detail) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021
USD ($)
award_type
|
Feb. 29, 2020
USD ($)
|
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of stock-based compensation award types | award_type | 4 | |
Intrinsic value for all options outstanding | $ 135.2 | |
Intrinsic value for exercisable options | 115.0 | |
Total Intrinsic Value of all options exercised | $ 2.2 | $ 8.6 |
Stock-Based Compensation - Selling, General and Administrative Expense (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||
Total stock-based compensation expense | $ 14.2 | $ 6.4 |
Stock-Based Compensation - Range of Assumptions for Various Stock Compensation Plans (Details) |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.00% | 0.00% |
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options - $ / shares shares in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period, Number of Shares | 4.5 | 5.2 |
Exercised, Number of Shares | 0.1 | 0.2 |
Outstanding at end of period, Number of Shares | 4.4 | 5.0 |
Excercisable at end of the period, Number of Shares | 3.2 | 3.6 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Outstanding at beginning of period, Weighted-Average Exercise Price | $ 53.56 | $ 48.09 |
Exercised, Weighted-Average Exercise Price | 39.30 | 35.19 |
Outstanding at end of period, Weighted-Average Exercise Price | 53.62 | 48.47 |
Exercisable at end of the period, Weighted-Average Exercise Price | $ 47.95 | $ 43.73 |
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Income Tax Examination [Line Items] | ||
Effective income tax rate reconciliation, tax credit, amount | $ (10.4) | |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | $ 4.5 | |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 1.4 | |
Effective Income Tax Rate Reconciliation, Disposition of Asset, Amount | 9.9 | |
Effective Income Tax Rate Reconciliation, Tax Settlement, Amount | 1.2 | |
Unrecognized Tax Benefits, Decrease Resulting from Acquisition | 11.4 | |
Effective Income Tax Rate Reconciliation, Tax Expense (Benefit), Share-based Payment Arrangement, Amount | $ 1.8 | |
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Amount | $ 5.3 |
Earnings Per Share and Stock Issuances - Additional Information (Details) - November 2019 [Member] $ in Millions |
Feb. 28, 2021
USD ($)
|
---|---|
Class of Stock [Line Items] | |
Stock repurchase program, remaining authorized repurchase amount | $ 584.6 |
Stock repurchase program, authorized amount | $ 600.0 |
Earnings Per Share and Stock Issuances - Reconciliation of Average Shares Outstanding (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Earnings Per Share, Basic and Diluted [Abstract] | ||
Average shares outstanding - basic (shares) | 267.1 | 266.0 |
Effect of dilutive securities: [Abstract] | ||
Stock options/Restricted Stock Units (RSUs)/MTIP | 2.8 | 2.7 |
Average shares outstanding-diluted | 269.9 | 268.7 |
Earnings Per Share and Stock Issuances - Antidilutive Securities not Considered in Earnings Per Share Calculation (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Earnings Per Share, Basic and Diluted [Abstract] | ||
Anti-dilutive securities | 0.0 | 0.2 |
Earnings Per Share and Stock Issuances - Common Stock Activity (Details) - shares shares in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Stock Options And Restricted Stock Units | ||
Employee Stock Purchase Plan [Line Items] | ||
Shares issued under stock options, RSUs, LTPP and employee stock purchase plans | 0.2 | 0.2 |
Share Repurchase Program | ||
Employee Stock Purchase Plan [Line Items] | ||
Shares repurchased under the stock repurchase program and shares withheld for taxes under stock options, RSUs, LTPP and employee stock purchase programs | 0.1 | 0.2 |
Business Segments - Additional Information (Detail) $ in Millions |
3 Months Ended | |
---|---|---|
Feb. 28, 2021
USD ($)
segment
|
Feb. 29, 2020
USD ($)
|
|
Revenues | $ 1,481.5 | $ 1,212.0 |
Number of operating segments | segment | 2 | |
Europe Middle East And Africa [Member] | ||
Revenues | $ 302.4 | 250.3 |
Asia Pacific [Member] | ||
Revenues | 214.3 | 142.1 |
Americas [Member] | ||
Revenues | $ 964.8 | $ 819.6 |
Business Segments (Detail) - USD ($) |
3 Months Ended | |
---|---|---|
Feb. 28, 2021 |
Feb. 29, 2020 |
|
Segment Reporting Information [Line Items] | ||
Revenues | $ 1,481,500,000 | $ 1,212,000,000.0 |
Operating income | 236,300,000 | 194,200,000 |
Less: Special charges | 1,100,000 | 1,000,000.0 |
Operating income excluding special charges | 262,500,000 | 195,200,000 |
Income from unconsolidated operations | 13,300,000 | 10,400,000 |
Business Acquisition, Transaction Costs | 13,800,000 | |
Transaction and integration expenses | 18,800,000 | 0 |
Cost of Sales | ||
Segment Reporting Information [Line Items] | ||
Business Acquisition, Transaction Costs | 6,300,000 | |
Consumer | ||
Segment Reporting Information [Line Items] | ||
Revenues | 946,800,000 | 699,500,000 |
Operating income | 180,900,000 | 119,000,000.0 |
Less: Special charges | 800,000 | 600,000 |
Operating income excluding special charges | 189,900,000 | 119,600,000 |
Income from unconsolidated operations | 10,800,000 | 7,800,000 |
Business Acquisition, Transaction Costs | 4,000,000.0 | |
Transaction and integration expenses | 4,200,000 | |
Flavor Solutions | ||
Segment Reporting Information [Line Items] | ||
Revenues | 534,700,000 | 512,500,000 |
Operating income | 55,400,000 | 75,200,000 |
Less: Special charges | 300,000 | 400,000 |
Operating income excluding special charges | 72,600,000 | 75,600,000 |
Income from unconsolidated operations | 2,500,000 | 2,600,000 |
Business Acquisition, Transaction Costs | 2,300,000 | |
Transaction and integration expenses | 14,600,000 | |
Americas [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 964,800,000 | 819,600,000 |
Europe Middle East And Africa [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | 302,400,000 | 250,300,000 |
Asia Pacific [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenues | $ 214,300,000 | $ 142,100,000 |
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