MCCORMICK & CO INCMKC
MCCORMICK & CO INC Segments Disclosure
BUSINESS SEGMENTS AND GEOGRAPHIC AREAS
Business Segments
We operate in two business segments: Consumer and Flavor Solutions. The Consumer and Flavor Solutions segments manufacture, market and distribute herbs, spices, seasoning mixes, condiments and other flavorful products throughout the world. Our Consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the “McCormick” brand and a variety of brands around the world, including “French's,” “Frank's RedHot,” “Lawry’s,” “Zatarain’s,” “Simply Asia,” “Thai Kitchen,” “Ducros,” “Vahiné,” "Cholula," “Schwartz,” “Club House,” “Kamis,” "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 businesses 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 2. 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
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.
We have a large number of customers for our products. Sales to one of our Consumer segment customers, Wal-Mart Stores, Inc., accounted for approximately 12% of consolidated sales in 2025, 2024, and 2023. Sales to one of our Flavor Solutions segment customers, PepsiCo, Inc., accounted for approximately 12%, 13%, and 13% of consolidated sales in 2025, 2024, and 2023, respectively.
Accounting policies for measuring segment operating income and assets are consistent with those described in Note 1. Because of integrated manufacturing for certain products within the segments, products are not sold from one segment to another but rather inventory is transferred at cost. Inter-segment transfers are not material. Corporate assets include cash, deferred taxes, investments, and certain fixed assets.
Business Segment Results
| (millions) | Consumer | Flavor Solutions | Total segments | Corporate & other | Total | ||||||||||||
| 2025 | |||||||||||||||||
| Net sales | $ | 3,950.3 | $ | 2,890.0 | $ | 6,840.3 | $ | — | $ | 6,840.3 | |||||||
| Cost of goods sold excluding special charges | 2,187.4 | 2,058.6 | 4,246.0 | — | 4,246.0 | ||||||||||||
| SG&A expense | 1,028.0 | 472.3 | 1,500.3 | — | 1,500.3 | ||||||||||||
| Operating income excluding special charges | 734.9 | 359.1 | 1,094.0 | — | 1,094.0 | ||||||||||||
| Income from unconsolidated operations | 68.7 | 3.5 | 72.2 | — | 72.2 | ||||||||||||
| Assets | — | — | 12,511.6 | 688.8 | 13,200.4 | ||||||||||||
| Capital expenditures | — | — | 176.4 | 45.4 | 221.8 | ||||||||||||
| Depreciation and amortization | — | — | 227.2 | 4.1 | 231.3 | ||||||||||||
| 2024 | |||||||||||||||||
| Net sales | $ | 3,848.5 | $ | 2,875.2 | $ | 6,723.7 | $ | — | $ | 6,723.7 | |||||||
| Cost of goods sold | 2,074.2 | 2,058.5 | 4,132.7 | — | 4,132.7 | ||||||||||||
| SG&A expense | 1,034.0 | 487.2 | 1,521.2 | — | 1,521.2 | ||||||||||||
| Operating income excluding special charges | 740.3 | 329.5 | 1,069.8 | — | 1,069.8 | ||||||||||||
| Income from unconsolidated operations | 71.2 | 3.0 | 74.2 | — | 74.2 | ||||||||||||
| Assets | — | — | 12,359.4 | 710.9 | 13,070.3 | ||||||||||||
| Capital expenditures | — | — | 234.1 | 40.8 | 274.9 | ||||||||||||
| Depreciation and amortization | — | — | 204.7 | 4.1 | 208.8 | ||||||||||||
| 2023 | |||||||||||||||||
| Net sales | $ | 3,807.3 | $ | 2,854.9 | $ | 6,662.2 | $ | — | $ | 6,662.2 | |||||||
| Cost of goods sold | 2,044.4 | 2,115.3 | 4,159.7 | — | 4,159.7 | ||||||||||||
| SG&A expense | 1,027.4 | 450.9 | 1,478.3 | — | 1,478.3 | ||||||||||||
| Operating income excluding special charges | 735.5 | 288.7 | 1,024.2 | — | 1,024.2 | ||||||||||||
| Income from unconsolidated operations | 54.7 | 1.7 | 56.4 | — | 56.4 | ||||||||||||
| Assets | — | — | 12,233.1 | 629.2 | 12,862.3 | ||||||||||||
| Capital expenditures | — | — | 234.9 | 29.0 | 263.9 | ||||||||||||
| Depreciation and amortization | — | — | 194.8 | 4.5 | 199.3 | ||||||||||||
A reconciliation of cost of goods sold excluding special charges and operating income excluding special charges to cost of goods sold and operating income for 2025, 2024, and 2023 is as follows:
| (millions) | Consumer | Flavor Solutions | Total | ||||||||||||||
| 2025 | |||||||||||||||||
| Cost of goods sold excluding special charges | $ | 2,187.4 | $ | 2,058.6 | $ | 4,246.0 | |||||||||||
| Special charges | 1.3 | 0.8 | 2.1 | ||||||||||||||
| Cost of goods sold | $ | 2,188.7 | $ | 2,059.4 | $ | 4,248.1 | |||||||||||
| Operating income excluding special charges | $ | 734.9 | $ | 359.1 | $ | 1,094.0 | |||||||||||
| Less: Special charges | 13.6 | 9.6 | 23.2 | ||||||||||||||
| Operating income | $ | 721.3 | $ | 349.5 | $ | 1,070.8 | |||||||||||
| 2024 | |||||||||||||||||
| Operating income excluding special charges | $ | 740.3 | $ | 329.5 | $ | 1,069.8 | |||||||||||
| Less: Special charges | 3.4 | 6.1 | 9.5 | ||||||||||||||
| Operating income | $ | 736.9 | $ | 323.4 | $ | 1,060.3 | |||||||||||
| 2023 | |||||||||||||||||
| Operating income excluding special charges expenses | $ | 735.5 | $ | 288.7 | $ | 1,024.2 | |||||||||||
| Less: Special charges | 35.8 | 25.4 | 61.2 | ||||||||||||||
| Operating income | $ | 699.7 | $ | 263.3 | $ | 963.0 | |||||||||||
Total segment operating income as disclosed in the preceding table represents our consolidated operating income. The reconciliation of that operating income to income from consolidated operations before income taxes, which includes interest expense and other income, net is presented on the consolidated income statement.
Geographic Areas
We have net sales and long-lived assets in the following geographic areas:
| (millions) | United States | EMEA | Other countries | Total | ||||||||||
| 2025 | ||||||||||||||
| Net sales | $ | 4,168.3 | $ | 1,268.5 | $ | 1,403.5 | $ | 6,840.3 | ||||||
| Long-lived assets | 8,016.0 | 1,196.2 | 831.0 | 10,043.2 | ||||||||||
| 2024 | ||||||||||||||
| Net sales | $ | 4,103.9 | $ | 1,239.3 | $ | 1,380.5 | $ | 6,723.7 | ||||||
| Long-lived assets | 8,017.9 | 1,117.0 | 824.5 | 9,959.4 | ||||||||||
| 2023 | ||||||||||||||
| Net sales | $ | 4,083.8 | $ | 1,212.8 | $ | 1,365.6 | $ | 6,662.2 | ||||||
| Long-lived assets | 7,946.1 | 1,138.6 | 856.8 | 9,941.5 | ||||||||||
Long-lived assets include property, plant and equipment, goodwill and intangible assets, net of accumulated depreciation and amortization.
Product Categories
Our net sales by product categories consist of the following:
| For the year ended November 30 (millions) | 2025 | 2024 | 2023 | ||||||||
| Consumer segment: | |||||||||||
| Spices & seasoning | $ | 1,707.6 | $ | 1,651.0 | $ | 1,578.3 | |||||
| Recipe mixes | 439.1 | 437.7 | 430.5 | ||||||||
| Condiments & sauces | 950.9 | 936.6 | 921.0 | ||||||||
| Regional leaders | 852.7 | 823.2 | 877.5 | ||||||||
| Flavor Solutions segment: | |||||||||||
| Flavors | 1,619.9 | 1,618.6 | 1,585.7 | ||||||||
| Branded foodservice | 614.1 | 615.1 | 598.4 | ||||||||
| Custom condiments | 329.3 | 336.8 | 317.1 | ||||||||
| Coatings, bulk spices & herbs | 326.7 | 304.7 | 353.7 | ||||||||
| Total net sales | $ | 6,840.3 | $ | 6,723.7 | $ | 6,662.2 | |||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Jan 22, 2026 | Showing above |
| 2024 | Jan 23, 2025 | |
| 2023 | Jan 25, 2024 | |
| 2022 | Jan 26, 2023 | |
| 2021 | Jan 27, 2022 | |
| 2020 | Jan 28, 2021 | |
| 2019 | Jan 28, 2020 | |
| 2018 | Jan 25, 2019 | |
| 2017 | Jan 25, 2018 | |
| 2016 | Jan 25, 2017 | |
| 2015 | Jan 28, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.