Special Charges And Transaction And Integration Expenses

3 Months Ended

Feb. 28, 2025

Special Charges And Transaction And Integration Expenses

SPECIAL CHARGES

In our consolidated income statement, we include a separate line item captioned "Special charges" in arriving at our consolidated operating income. Special charges consist of expenses, including related impairment charges, associated with certain actions undertaken to reduce fixed costs, simplify or improve processes, and enhance our competitiveness. These charges 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 President and Chief Executive Officer. Expenses associated with any approved action are classified as special charges upon recognition and monitored on an ongoing basis through completion. Certain ancillary expenses related to these actions, approved by our Management Committee, do not qualify for accrual upon approval but are included as special charges as incurred during the course of the actions.

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

The following is a summary of special charges recognized in the three months ended February 28, 2025 and February 29, 2024 (in millions):


	Three months ended
	February 28, 2025		February 29, 2024
Employee severance and related benefits	$	—	$	2.1
Other cash costs	—		2.1


Total special charges	$	—	$	4.2

During the three months ended February 29, 2024, we recorded $4.2 million of special charges, consisting principally of (i) $2.8 million associated with our Global Operating Effectiveness (GOE) program, which includes $2.1 million in severance and related benefits costs and $0.7 million in third-party expenses and other costs, and (ii) $1.4 million in third-party expenses and other costs associated with the transition of a manufacturing facility in Europe, Middle East, and Africa (EMEA). Both our GOE program and the EMEA manufacturing facility transition are more fully described in Note 2 of the notes to the consolidated financial statements in our Annual Report on Form 10-K for the year ended November 30, 2024.

As of February 28, 2025 and November 30, 2024, reserves associated with special charges of $1.0 million and $2.7 million are included in "Other accrued liabilities" in our consolidated balance sheet.

The following is a breakdown by business segment of special charges for the three months ended February 28, 2025 and February 29, 2024 (in millions):


	Three months ended
	February 28, 2025		February 29, 2024
Consumer segment	$	—	$	1.8
Flavor solutions segment	—		2.4
Total special charges	$	—	$	4.2