Business Segments

3 Months Ended

Feb. 28, 2026

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,” “Lawry’s,” “Zatarain’s,” “Simply Asia,” “Thai Kitchen,” “Ducros,” “Vahiné,” “Cholula,” “Schwartz,” “Club House,” “Kamis,” “DaQiao,” “La Drogheria,” “Stubb’s,” “OLD BAY,” and “Gourmet Garden.” Our Flavor Solutions segment sells to food manufacturers and the foodservice industry both directly and indirectly through distributors, with the exception of our business in China, where foodservice sales are managed by and reported in our Consumer segment.

Our CODM is our Chairman, President & Chief Executive Officer. Our CODM uses operating income excluding special charges and transaction and integration expenses related to our acquisitions to manage segment performance and allocate resources across segments and considers variances of actual performance to our annual budget and periodic forecasts as well as year over year performance when making decisions. Special charges and transaction and integration expenses are excluded from operating income in our internal reporting to the CODM as this activity is managed separately from the business segments. Activity related to special charges, including transaction and integration expenses, is described in Note 3. Transaction and integration expenses include the amortization of the acquisition-date fair value adjustment of inventories included in cost of goods sold, costs directly associated with that acquisition and costs associated with integrating the businesses. We also exclude the gain on remeasurement of previously held equity interest from operating income in our internal reporting to the CODM, which was recorded upon consolidation of McCormick de Mexico during the first quarter of 2026 and is described in more detail in Note 2.

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. As a result, jointly utilized assets, including fixed assets, and depreciation and amortization expense are not maintained by individual segment. Depreciation and amortization expense is allocated to the segments except for amounts that are recognized in interest. 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. Inter-segment transfers are not material.

	Consumer		Flavor Solutions		Total
			(in millions)
Three months ended February 28, 2026
Net sales	$	1,145.0	$	728.9	$	1,873.9
Cost of goods sold excluding special charges	638.8		511.2		1,150.0
SG&A expense	326.6		129.7		456.3
Operating income excluding special charges	179.6		88.0		267.6
Income from unconsolidated operations excluding gain on remeasurement of previously held equity interest	15.8		3.4		19.2
Three months ended February 28, 2025
Net sales	$	919.2	$	686.3	$	1,605.5
Cost of goods sold	513.8		487.7		1,001.5
SG&A expense	258.7		120.1		378.8
Operating income	146.7		78.5		225.2
Income from unconsolidated operations	15.9		2.6		18.5

A reconciliation of cost of goods sold excluding special charges, operating income excluding special charges and income from unconsolidated operations excluding gain on remeasurement of previously held equity interest to cost of goods sold, operating income, and income from unconsolidated operations or the three months ended February 28, 2026 is as follows (in millions):

	Consumer		Flavor Solutions		Total
Three months ended February 28, 2026
Cost of goods sold excluding special charges	$	638.8	$	511.2	$	1,150.0
Special charges	13.5		1.5		15.0
Cost of goods sold	$	652.3	$	512.7	$	1,165.0
Operating income excluding special charges	$	179.6	$	88.0	$	267.6
Less: Special charges	32.7		7.4		40.1
Operating income	$	146.9	$	80.6	$	227.5
Income from unconsolidated operations excluding gain on remeasurement of previously held equity interest	$	15.8	$	3.4	$	19.2
Gain on remeasurement of previously held equity interest	$	780.1	$	86.7	$	866.8
Income from unconsolidated operations	$	795.9	$	90.1	$	886.0

In the preceding table, special charges (including transaction and integration costs) for the three months ended February 28, 2026 include $15.0 million associated with the step-up of acquired inventory recognized in cost of goods sold. There were no special charges during the three months ended February 28, 2025.

Total segment operating income as disclosed in the preceding tables represents our consolidated operating income. The reconciliation of that operating income to income from consolidated operations before income taxes, which includes interest expense and other income, net is presented on the consolidated income statement.

The following table sets forth our net sales, by geographic area, for the three months ended February 28, 2026 and 2025 (in millions):

	Americas		EMEA		APAC		Total
Three months ended February 28, 2026	$	1,339.6	$	335.7	$	198.6	$	1,873.9
Three months ended February 28, 2025	1,118.3		299.5		187.7		1,605.5