Document and Entity Information
Document and Entity Information | 6 Months Ended |
May 31, 2016shares | |
Document Information [Line Items] | |
Entity Registrant Name | MCCORMICK & CO INC |
Entity Central Index Key | 63,754 |
Current Fiscal Year End Date | --11-30 |
Entity Filer Category | Accelerated Filer |
Document Type | 10-Q |
Document Period End Date | May 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q2 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 11,606,355 |
Nonvoting Common Stock | |
Document Information [Line Items] | |
Entity Common Stock, Shares Outstanding | 115,044,381 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENT - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,063.3 | $ 1,024.1 | $ 2,093.5 | $ 2,034.5 |
Cost of goods sold | 630.5 | 620.1 | 1,255.7 | 1,240.8 |
Gross profit | 432.8 | 404 | 837.8 | 793.7 |
Selling, general and administrative expense | 303.9 | 281.2 | 578.2 | 548.8 |
Special Charges | 3.9 | 19 | 5.5 | 47.4 |
Operating income | 125 | 103.8 | 254.1 | 197.5 |
Interest expense | 13.7 | 13 | 27.6 | 25.9 |
Other income, net | 0.7 | 0.6 | 1.8 | 0.4 |
Income from consolidated operations before income taxes | 112 | 91.4 | 228.3 | 172 |
Income taxes | 25.9 | 14.5 | 57.2 | 34.5 |
Net income from consolidated operations | 86.1 | 76.9 | 171.1 | 137.5 |
Income from unconsolidated operations | 7.7 | 7.4 | 16.1 | 17.3 |
Net income | $ 93.8 | $ 84.3 | $ 187.2 | $ 154.8 |
Earnings per share - basic (usd per share) | $ 0.74 | $ 0.66 | $ 1.47 | $ 1.21 |
Average shares outstanding - basic (shares) | 126.9 | 127.9 | 127 | 128.1 |
Earnings per share - diluted (usd per share) | $ 0.73 | $ 0.65 | $ 1.46 | $ 1.20 |
Average shares outstanding - diluted (shares) | 128.3 | 129 | 128.3 | 129.2 |
Cash dividends paid per common share (usd per share) | $ 0.43 | $ 0.40 | $ 0.86 | $ 0.80 |
Common Stock, Dividends, Per Share, Declared | $ 0.43 | $ 0.40 | $ 0.43 | $ 0.40 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 93.8 | $ 84.3 | $ 187.2 | $ 154.8 |
Net Income (Loss) Attributable to Noncontrolling Interest | 0 | 1.2 | 0.7 | 2.4 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Tax | 1.8 | 6.2 | 9.5 | 15.8 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 38.2 | (13.4) | 13 | (150.6) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (3.2) | (0.7) | (1.6) | 0.5 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (0.8) | (1.9) | (2.5) | (4.4) |
Comprehensive Income | $ 129.8 | $ 75.7 | $ 206.3 | $ 18.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | May 31, 2016 | Nov. 30, 2015 | May 31, 2015 |
Current Assets | |||
Cash and cash equivalents | $ 131.5 | $ 112.6 | $ 89.5 |
Trade accounts receivables, net | 399.6 | 455.2 | 390.6 |
Inventories | |||
Finished products | 343.8 | 319.9 | 323.8 |
Raw materials and work-in-process | 395.8 | 390.9 | 414.7 |
Total inventory | 739.6 | 710.8 | 738.5 |
Prepaid expenses and other current assets | 131.5 | 127.9 | 140.3 |
Total current assets | 1,402.2 | 1,406.5 | 1,358.9 |
Property, plant and equipment | 1,589.8 | 1,531.3 | 1,486.2 |
Less: accumulated depreciation | (952.7) | (912.9) | (896.1) |
Property, plant and equipment, net | 637.1 | 618.4 | 590.1 |
Goodwill | 1,837.1 | 1,759.3 | 1,719.8 |
Intangible assets, net | 410.2 | 372.1 | 364.6 |
Investments and other assets | 357.7 | 351.5 | 345 |
Total assets | 4,644.3 | 4,507.8 | 4,378.4 |
Current Liabilities | |||
Short-term borrowings | 513.1 | 139.5 | 416.7 |
Current portion of long-term debt | 0.6 | 203.5 | 205.9 |
Trade accounts payable | 366.2 | 411.9 | 337.8 |
Other accrued liabilities | 390.8 | 485.3 | 378.4 |
Total current liabilities | 1,270.7 | 1,240.2 | 1,338.8 |
Long-term debt | 1,055.2 | 1,052.7 | 807.9 |
Other long-term liabilities | 544.9 | 528 | 496.4 |
Total liabilities | 2,870.8 | 2,820.9 | 2,643.1 |
Shareholders' Equity | |||
Retained earnings | 1,069.8 | 1,036.7 | 1,020.4 |
Accumulated other comprehensive loss | (387.7) | (406.1) | (324.7) |
Non-controlling interests | 17 | 16.7 | 20 |
Total shareholders' equity | 1,773.5 | 1,686.9 | 1,735.3 |
Total liabilities and shareholders' equity | 4,644.3 | 4,507.8 | 4,378.4 |
Common Stock | |||
Shareholders' Equity | |||
Common stock | 402.1 | 384.5 | 378 |
Nonvoting Common Stock | |||
Shareholders' Equity | |||
Common stock | $ 672.3 | $ 655.1 | $ 641.6 |
CONDENSED CONSOLIDATED CASH FLO
CONDENSED CONSOLIDATED CASH FLOW STATEMENT - USD ($) $ in Millions | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Cash flows from operating activities | ||
Net income | $ 187.2 | $ 154.8 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Depreciation and amortization | 53 | 52.5 |
Stock-based compensation | 15.8 | 13.9 |
Income from unconsolidated operations | (16.1) | (17.3) |
Changes in operating assets and liabilities | (43.7) | (35.2) |
Dividends from unconsolidated affiliates | 16.5 | 17.2 |
Net cash flow provided by operating activities | 212.7 | 185.9 |
Cash flows from investing activities | ||
Acquisition of businesses (net of cash acquired) | (118.1) | (111.5) |
Capital expenditures | (54.8) | (42.7) |
Proceeds from sale of property, plant and equipment | 1.5 | 0.1 |
Net cash flow used in investing activities | (171.4) | (154.1) |
Cash flows from financing activities | ||
Short-term borrowings, net | 373.8 | 148.2 |
Long-term debt repayments | (201.8) | (0.3) |
Proceeds from exercised stock options | 21.9 | 14.2 |
Common stock acquired by purchase | (100.8) | (69.9) |
Dividends paid | (109.3) | (102.5) |
Net cash flow (used in) provided by financing activities | (16.2) | (10.3) |
Effect of exchange rate changes on cash and cash equivalents | (6.2) | (9.3) |
Increase in cash and cash equivalents | 18.9 | 12.2 |
Cash and cash equivalents at beginning of period | 112.6 | 77.3 |
Cash and cash equivalents at end of period | $ 131.5 | $ 89.5 |
Accounting Policies
Accounting Policies | 6 Months Ended |
May 31, 2016 | |
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. The results of consolidated operations for the three and six month periods ended May 31, 2016 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 are lower in the first half of the fiscal year and increase in the second half. The typical increase in net sales, net income and cash flow from operations in the second half of the year is largely 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, 2015 . Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2018. Early adoption is permitted for all entities. We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases (Topic 842). This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2020. Early adoption is permitted for all entities. We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606). This guidance is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2019. Early adoption is permitted for all entities, but not before the original effective date for public business entities (i.e., annual reporting periods beginning after December 15, 2016 or our fiscal year ending November 30, 2018). We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. For other recently issued accounting pronouncements that we have not yet adopted, see note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended November 30, 2015. |
Acquisitions
Acquisitions | 6 Months Ended |
May 31, 2016 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS Acquisitions are part of our strategy to increase sales and profits. On April 19, 2016, we completed the purchase of 100% of the shares of Botanical Food Company, Pty Ltd, owner of the Gourmet Garden brand of packaged herbs (Gourmet Garden), a privately held company based in Australia. Gourmet Garden is a global market leader in chilled convenient packaged herbs. Gourmet Garden's closer-to-fresh products complement our existing branded herb portfolio with the addition of chilled convenient herbs located in the perimeter of the grocery store. We plan to drive sales of the Gourmet Garden brand by expanding global distribution and building awareness with increased brand investment. At the time of acquisition, annual sales of Gourmet Garden were approximately 70 million Australian dollars. The purchase price was $118.1 million , subject to certain closing adjustments, and was financed with a combination of cash and short-term borrowings. As of the acquisition date, a preliminary valuation of the acquired net assets of Gourmet Garden resulted in $20.4 million allocated to net tangible assets acquired, $20.3 million allocated to indefinite lived brand asset, $14.2 million allocated to definite lived intangible assets with a weighted-average life of 12.0 years and $63.2 million allocated to goodwill. Goodwill related to the Gourmet Garden acquisition, which is not deductible for tax purposes, 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 consumers for herbs, and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. The preliminary valuation, based on a comparison of acquisitions of similar consumer businesses, provided average percentages of purchase prices assigned to goodwill and other identifiable intangible assets, which we used to initially value the Gourmet Garden acquisition. We expect to finalize the determination of the fair value of the acquired net assets of Gourmet Garden in the first half of 2017. Gourmet Garden has been included in our consumer segment since its acquisition. While this business has an industrial component, the industrial component is not currently material to its overall business. During the three and six months ended May 31, 2016, we recorded $2.4 million and $3.0 million , respectively, in transaction-related expenses associated with this acquisition. Due to the estimated impact of financing, acquisition and integration costs, we do not expect operating income contribution of Gourmet Garden to be significant to our overall results for 2016. On August 20, 2015, we completed the purchase of 100% of the shares of One World Foods, Inc., owner of the Stubb's brand of barbeque products (Stubb's), a privately held company located in Austin, Texas. Stubb's is the leading premium barbeque sauce brand in the U.S. In addition to sauces, Stubb's products include marinades, rubs and skillet sauces. Its addition will expand the breadth of value-added products in our consumer segment. At the time of acquisition, annual sales of Stubb's were approximately $30 million . The purchase price for Stubb's was $99.4 million , subject to certain closing adjustments, and was financed with a combination of cash and short-term borrowings. As of the acquisition date, a preliminary valuation of the acquired net assets of Stubb's resulted in $5.4 million allocated to tangible assets acquired (less $12.4 million allocated to liabilities assumed), $13.3 million allocated to indefinite lived brand asset, $12.5 million allocated to definite lived intangible assets with a weighted-average life of 14.3 years and $80.6 million allocated to goodwill. Goodwill related to the Stubb's acquisition, which is not deductible for tax purposes, 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 consumers for unique and authentic barbeque and grilling flavors, and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. The preliminary valuation, based on a comparison of acquisitions of similar consumer businesses, provided average percentages of purchase prices assigned to goodwill and other identifiable intangible assets, which we used to initially value the Stubb's acquisition. We expect to finalize the determination of the fair value of the acquired net assets of Stubb's during the third quarter 2016. Stubb's has been included in our consumer segment since its acquisition. On May 29, 2015, we completed the purchase of 100% of the shares of Drogheria & Alimentari (D&A), a privately held company based in Italy, and a leader of the spice and seasoning category in Italy that supplies both branded and private label products to consumers. The purchase price for D&A consisted of a cash payment of $49.0 million , net of cash acquired of $2.8 million , at the time of acquisition, subject to certain closing adjustments, and was financed with a combination of cash and short-term borrowings. In addition, the purchase agreement calls for a potential earn out payment in 2018 of up to €35 million , based upon the performance of the acquired business in 2017. This potential earn out payment had an acquisition-date fair value of $27.7 million (or approximately €25 million ), based on estimates of projected performance in 2017, payable in fiscal 2018, and discounted using a probability-weighted approach. At the time of the acquisition, annual sales of D&A were approximately €50 million . As of May 31, 2016, we completed the final valuation of the D&A acquisition, which resulted in $3.2 million allocated to tangible net assets, $12.6 million allocated to indefinite lived brand assets, $19.8 million allocated to definite lived intangible assets with a weighted-average life of 13.8 years and $41.1 million allocated to goodwill. Goodwill related to the D&A acquisition, which is not deductible for tax purposes, primarily represents the intangible assets that do not qualify for separate recognition, such as the value of leveraging our brand building expertise, our customer insights in demand from consumers for unique and authentic ethnic flavors and our supply chain capabilities, as well as expected synergies from the combined operations and assembled workforce. The completion of the final valuation did not result in material changes to our consolidated income statement or consolidated balance sheet from our preliminary purchase price allocation. D&A has been included in our consumer segment since its acquisition. On March 9, 2015, we acquired 100% of the shares of Brand Aromatics, a privately held company located in the U.S. Brand Aromatics is a supplier of natural savory flavors, marinades, and broth and stock concentrates to the packaged food industry. Its addition expands the breadth of value-added products in our industrial segment. The purchase price for Brand Aromatics was $62.4 million , net of post-closing adjustments and was financed with a combination of cash and short-term borrowings. At the time of acquisition, annual sales of Brand Aromatics were approximately $30 million . As of November 30, 2015, we completed the final valuation of the Brand Aromatics acquisition, which resulted in $5.2 million allocated to tangible net assets, $4.2 million allocated to a brand name indefinite lived intangible asset, $18.7 million allocated to definite lived intangible assets with a weighted average life of 11.9 years , and $34.3 million allocated to goodwill. Goodwill related to the Brand Aromatics acquisition, which will be deductible for tax purposes, primarily represents the intangible assets that do not qualify for separate recognition, such as the value of leveraging the customer intimacy and value-added flavor solutions we provide to our industrial customers to Brand Aromatics’ relationships with industrial customers of their stocks, marinades and other savory flavors, as well as from expected synergies from the combined operations and assembled workforces, and the future development initiatives of the assembled workforces. The completion of the final valuation did not result in material changes to our consolidated income statement or our consolidated balance sheet from our preliminary purchase price allocation. Brand Aromatics has been included in our industrial segment since its acquisition. For the second quarter of 2016, Gourmet Garden, Stubb's and D&A added $7.4 million , $9.4 million and $17.2 million , respectively, to our sales. Gourmet Garden, Stubb's and D&A added $7.4 million , $14.7 million and $31.8 million , respectively, to our sales in the six months ended May 31, 2016. Incremental sales of Brand Aromatics in the six months ended May 31, 2016 were $7.2 million , representing sales of the business in the first quarter of 2016. Due to financing, acquisition and integration costs, the aggregate incremental operating income contributed by Gourmet Garden, Stubb's, D&A and Brand Aromatics was not significant to our overall results for the three and six months ended May 31, 2016. Proforma financial information for these acquisitions has not been presented because the financial impact is not material. |
Special Charges
Special Charges | 6 Months Ended |
May 31, 2016 | |
Special Charges [Abstract] | |
Special Charges [Text Block] | SPECIAL CHARGES 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 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 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. During the three months ended May 31, 2016, we recorded $3.9 million of special charges, consisting of $2.0 million related to additional organization and streamlining actions associated with our consumer business in our Europe, Middle East and Africa (EMEA) region, $1.5 million for additional organization and streamlining actions associated with our North America effectiveness initiative and $0.4 million for other exit costs related to the discontinuance of Kohinoor's non-profitable bulk-packaged and broken basmati rice product lines, all of which were initiated in 2015 and are described more fully below. During the six months ended May 31, 2016, we recorded $5.5 million of special charges, consisting of $3.1 million related to other exit costs associated with actions undertaken to enhance organization efficiency and streamline processes in our EMEA region, $1.7 million for employee severance and related costs associated with our North America effectiveness initiative and $0.7 million for other exit costs related to the discontinuance of Kohinoor's non-profitable bulk-packaged and broken basmati rice product lines. During the three months ended May 31, 2015, we recorded $19.0 million of special charges, consisting of $1.9 million related to employee severance and related costs associated with our North American effectiveness initiative and $17.9 million consisting of severance and related costs and $1.1 million for non-cash fixed asset impairment associated with our EMEA reorganization initiated in 2015. During the six months ended May 31, 2015, we recorded $47.4 million of special charges, consisting of $26.4 million related to employee severance and related costs associated with our North American effectiveness initiative and $22.9 million consisting of severance and related costs associated with our EMEA reorganization initiated in 2015. During the three and six months ended May 31, 2015, we reversed $1.9 million of reserves previously accrued as part of the EMEA reorganization plan undertaken in 2013 and 2014, principally as a result of a decision by EMEA management that employee attrition, which occurred and was expected to continue, obviated the need for certain accrued employee severance and related benefits. The following is a breakdown of special charges by business segments for the three and six months ended May 31, 2016 and 2015 (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Consumer segment $ 3.5 $ 15.7 $ 4.8 $ 34.9 Industrial segment 0.4 3.3 0.7 12.5 Total special charges $ 3.9 $ 19.0 $ 5.5 $ 47.4 All balances associated with our special charges are included in other accrued liabilities in our consolidated balance sheet. In January 2015, we offered a voluntary retirement plan, which included enhanced separation benefits but did not include supplementary pension benefits, to certain U.S. employees aged 55 years or older with at least ten years of service to the Company. Upon our receipt of notification from participants that they accepted this plan, which closed early in 2015, we accrued special charges of $24.5 million during the first quarter of 2015 (and an additional $1.9 million in the second quarter of 2015), consisting primarily of employee severance and related costs that were largely paid in 2015 as substantially all of the affected employees left the company in 2015. The voluntary retirement plan is part of our North American effectiveness initiative. Our North American effectiveness initiative generated cost savings of approximately $15 million in 2015 and is expected to generate annual cost savings with a full year impact of approximately $27 million beginning in 2016. The following table outlines the major components of accrual balances and activity relating to the special charges associated with our North American effectiveness initiative for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 2.3 $ — $ 2.3 Special charges 1.6 0.1 1.7 Cash paid (2.4 ) (0.1 ) (2.5 ) Balance as of May 31, 2016 $ 1.5 $ — $ 1.5 Balance as of November 30, 2014 $ — $ — $ — Special charges 25.4 1.0 26.4 Cash paid (19.5 ) (0.7 ) (20.2 ) Balance as of May 31, 2015 $ 5.9 $ 0.3 $ 6.2 In the three and six months ended May 31, 2015, we recorded special charges of $19.0 million and $22.9 million , respectively, to undertake actions, principally consisting of severance and related costs, to change our organization structure to further reduce selling, general and administrative expenses throughout EMEA. For the second half of 2015, additional projects were identified in the EMEA region to further enhance organization efficiency and streamline processes in this region to support its competitiveness and long-term growth. These initiatives center on actions intended to reduce fixed costs and improve business processes, as well as continue to drive simplification across the business and supply chain. These actions include the transfer of certain additional activities to the recently established McCormick Shared Services Center in Lodz, Poland. Further actions were approved in the second quarter of 2016. In total, we recorded $24.4 million of special charges for fiscal year 2015 associated with our EMEA reorganization plans undertaken during that year. In addition to the $2.0 million and $3.1 million of special charges recorded for the three and six months ended May 31, 2016, we expect to record additional special charges in 2016 of approximately $3.7 million , for future actions approved under these EMEA reorganization and streamlining initiatives, which will be settled in cash and reflected in special charges upon recognition in 2016. Related annual cost savings are projected to be approximately $4 million in 2016 and $22 million by the end of 2017. The following table outlines the major components of accrual balances and activity relating to the special charges associated with the EMEA reorganization plans described above for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 16.2 $ 0.6 $ 16.8 Special charges 1.3 1.8 3.1 Cash paid (3.8 ) (1.9 ) (5.7 ) Impact of foreign exchange 0.6 — 0.6 Balance as of May 31, 2016 $ 14.3 $ 0.5 $ 14.8 Balance as of November 30, 2014 $ — $ — $ — Special charges 21.4 1.5 22.9 Cash paid (1.9 ) — (1.9 ) Impairment of fixed assets — (1.1 ) (1.1 ) Impact of foreign exchange (0.1 ) — (0.1 ) Balance as of May 31, 2015 $ 19.4 $ 0.4 $ 19.8 In the second half of 2015, we recorded special charges related to initiatives to improve the profitability of our Kohinoor consumer business in India. This action principally related to the discontinuance of Kohinoor’s non-profitable bulk-package and broken basmati rice product lines and other ancillary activities to enable the business to focus on both its existing consumer-packaged basmati product lines and the launch of consumer-packaged seasonings under the Kohinoor brand name. In addition to the special charges recognized in the second half of 2015, which are more fully described in Note 3 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended November 30, 2015, future actions approved with respect to Kohinoor’s plan to improve its profitability consisted of costs associated with exiting certain contractual arrangements and other costs directly related to the plan, of which $0.4 million and $0.7 million were recognized for the three and six months ended May 31, 2016, respectively. The estimated cost of future actions, which will be reflected in special charges upon recognition (expected later in 2016), range from approximately $0.7 million to $2.7 million . In late 2013, we announced a reorganization in parts of the EMEA region to further improve EMEA’s profitability and process standardization while supporting its competitiveness and long-term growth. These actions included the closure of our sales and distribution operations in the Netherlands, with the transition to a third-party distributor model to continue to sell the Silvo brand, as well as actions intended to reduce selling, general and administrative activities throughout EMEA, including the centralization of shared service activity across the region into Poland. In fiscal years 2013 and 2014, we recorded a total of $27.1 million of cash and non-cash charges related to this reorganization. The following table outlines the major components of accrual balances and activity relating to the special charges associated with the EMEA reorganization plan undertaken in 2013 and 2014 for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 2.3 $ — $ 2.3 Cash paid (1.2 ) — (1.2 ) Impact of foreign exchange 0.1 — 0.1 Balance as of May 31, 2016 $ 1.2 $ — $ 1.2 Balance as of November 30, 2014 $ 9.3 $ 0.7 $ 10.0 Cash paid (2.4 ) (0.6 ) (3.0 ) Impact of foreign exchange (1.6 ) (0.1 ) (1.7 ) Reversal into income (special charges) (1.9 ) — (1.9 ) Balance as of May 31, 2015 $ 3.4 $ — $ 3.4 |
Goodwill (Notes)
Goodwill (Notes) | 6 Months Ended |
May 31, 2016 | |
Goodwill Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | GOODWILL The changes in the carrying amount of goodwill by segment for the six months ended May 31, 2016 and 2015 were as follows (in millions): 2016 2015 Consumer Industrial Consumer Industrial Beginning of year $ 1,587.7 $ 171.6 $ 1,581.1 $ 141.1 Changes in preliminary purchase price allocation (4.2 ) — — — Increases in goodwill from acquisitions 63.2 — 45.2 37.9 Foreign currency fluctuations 20.3 (1.5 ) (83.5 ) (2.0 ) Balance as of end of May $ 1,667.0 $ 170.1 $ 1,542.8 $ 177.0 |
Financial Instruments
Financial Instruments | 6 Months Ended |
May 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCING ARRANGEMENTS AND FINANCIAL INSTRUMENTS We use derivative financial instruments to enhance our ability to manage risk, including foreign currency and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instruments. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines. As of May 31, 2016 , the maximum time frame for our foreign exchange forward contracts is 16 months. For all derivatives, the net amount of accumulated other comprehensive income expected to be reclassified in the next 12 months is $ 1.9 million as an increase to earnings. All derivatives are recognized at fair value in the balance sheet and recorded in either current or noncurrent other assets or other accrued liabilities or other long-term liabilities depending upon their nature and maturity. The following table discloses the fair values of derivative instruments on our balance sheet (in millions): As of May 31, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 100.0 $ 3.0 Foreign exchange contracts Other current assets 155.2 3.7 Other accrued liabilities $ 72.4 $ 1.5 Total $ 6.7 $ 1.5 As of May 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 150.0 $ 5.9 Foreign exchange contracts Other current assets 174.5 6.0 Other accrued liabilities $ 34.8 $ 2.1 Total $ 11.9 $ 2.1 As of November 30, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 100.0 $ 2.5 Other accrued liabilities $ 100.0 $ 0.6 Foreign exchange contracts Other current assets 179.5 3.4 Other accrued liabilities 85.0 0.7 Total $ 5.9 $ 1.3 The following tables disclose the impact of derivative instruments on our other comprehensive income (OCI), accumulated other comprehensive income (AOCI) and our income statement for the three and six month periods ended May 31, 2016 and 2015 (in millions): Fair Value Hedges Derivative Income statement location Income (expense) Three months ended May 31, 2016 Three months ended May 31, 2015 Six months ended May 31, 2016 Six months ended May 31, 2015 Interest rate contracts Interest expense $ 0.3 $ 1.3 $ 0.9 $ 2.5 Cash Flow Hedges – For the three months ended May 31, Derivative Gain or (Loss) recognized in OCI Income statement location Gain or (Loss) reclassified from AOCI 2016 2015 2016 2015 Interest rate contracts $ — $ 1.0 Interest expense $ — $ (0.1 ) Foreign exchange contracts (2.2 ) 0.1 Cost of goods sold 1.8 2.2 Total $ (2.2 ) $ 1.1 $ 1.8 $ 2.1 Cash Flow Hedges – For the six months ended May 31, Derivative Gain or (Loss) recognized in OCI Income statement location Gain or (Loss) reclassified from AOCI 2016 2015 2016 2015 Interest rate contracts $ — $ 1.0 Interest expense $ (0.1 ) $ (0.1 ) Foreign exchange contracts (0.1 ) 3.1 Cost of goods sold 3.1 3.3 Total $ (0.1 ) $ 4.1 $ 3.0 $ 3.2 The amount of gain or loss recognized in income on the ineffective portion of derivative instruments is not material. The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
May 31, 2016 | |
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. Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions): May 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 131.5 $ 131.5 $ — $ — Insurance contracts 103.4 — 103.4 — Bonds and other long-term investments 9.5 9.5 — — Interest rate derivatives 3.0 — 3.0 — Foreign currency derivatives 3.7 — 3.7 — Total $ 251.1 $ 141.0 $ 110.1 $ — Liabilities Foreign currency derivatives $ 1.5 $ — $ 1.5 $ — Contingent consideration related to D&A acquisition 29.6 — — 29.6 Total $ 31.1 $ — $ 1.5 $ 29.6 May 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 89.5 $ 89.5 $ — $ — Insurance contracts 107.1 — 107.1 — Bonds and other long-term investments 7.9 7.9 — — Interest rate derivatives 5.9 — 5.9 — Foreign currency derivatives 6.0 — 6.0 — Total $ 216.4 $ 97.4 $ 119.0 $ — Liabilities Foreign currency derivatives $ 2.1 $ — $ 2.1 $ — Contingent consideration related to D&A acquisition 26.0 — — 26.0 Total $ 28.1 $ — $ 2.1 $ 26.0 November 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 112.6 $ 112.6 $ — $ — Insurance contracts 104.1 — 104.1 — Bonds and other long-term investments 8.5 8.5 — — Interest rate derivatives 2.5 — 2.5 — Foreign currency derivatives 3.4 — 3.4 — Total $ 231.1 $ 121.1 $ 110.0 $ — Liabilities Foreign currency derivatives $ 0.7 $ — $ 0.7 $ — Interest rate derivatives 0.6 — 0.6 — Contingent consideration related to D&A acquisition 27.1 — — 27.1 Total $ 28.4 $ — $ 1.3 $ 27.1 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 and foreign currency derivatives are based on values for similar instruments using models with market based inputs. The following table sets forth the carrying amount and fair values of our long-term debt (including the current portion thereof) at May 31, 2016, May 31, 2015 and November 30, 2015 (in millions): May 31, 2016 May 31, 2015 November 30, 2015 Carrying amount $ 1,055.8 $ 1,013.8 $ 1,256.2 Fair value 1,142.5 1,095.7 1,325.6 The acquisition-date fair value of the liability for contingent consideration related to our acquisition of D&A was approximately $27.7 million (see note 2). The fair value of the liability as of November 30, 2015 was $27.1 million and was included in other long-term liabilities in our consolidated balance sheet. The fair value of the liability was estimated using a discounted cash flow technique with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in the FASB's Accounting Standards Codification (ASC) 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of expected future cash flows related to our acquisition of D&A during the earn-out period, adjusted for expectations of the amounts and ultimate resolution of likely disputes to be raised by the seller and by us as provided in the purchase agreement, discounted considering the uncertainties associated with the obligation, and calculated in accordance with the terms of the purchase agreement. Changes in the fair value of the liability for contingent consideration, excluding the impact of foreign currency, will be recognized in income on a quarterly basis until settlement in fiscal 2018. The change in fair value of our Level 3 liabilities for the six months ended May 31, 2016 is summarized as follows (in millions): Beginning of year Settlements Changes in fair value including accretion Impact of foreign currency Balance as of May 31, 2016 Contingent consideration related to D&A acquisition $ 27.1 $ — $ 1.0 $ 1.5 $ 29.6 |
Employee Benefit and Retirement
Employee Benefit and Retirement Plans | 6 Months Ended |
May 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
EMPLOYEE BENEFIT AND RETIREMENT PLANS | EMPLOYEE BENEFIT AND RETIREMENT PLANS The following table presents the components of our pension expense of the defined benefit plans for the three months ended May 31, 2016 and 2015 (in millions): United States International 2016 2015 2016 2015 Defined benefit plans Service cost $ 5.4 $ 5.9 $ 1.8 $ 2.0 Interest costs 8.3 7.9 2.9 3.0 Expected return on plan assets (10.2 ) (10.1 ) (4.2 ) (4.3 ) Amortization of prior service costs — — 0.1 0.1 Amortization of net actuarial losses 3.2 4.2 1.1 1.5 Total pension expense $ 6.7 $ 7.9 $ 1.7 $ 2.3 The following table presents the components of our pension expense of the defined benefit plans for the six months ended May 31, 2016 and 2015 (in millions): United States International 2016 2015 2016 2015 Defined benefit plans Service cost $ 10.8 $ 11.8 $ 3.5 $ 4.1 Interest costs 16.6 15.8 5.8 6.1 Expected return on plan assets (20.3 ) (20.1 ) (8.3 ) (8.7 ) Amortization of prior service costs — — 0.2 0.2 Recognized net actuarial loss 6.3 8.4 2.1 3.0 Total pension expense $ 13.4 $ 15.9 $ 3.3 $ 4.7 During the six months ended May 31, 2016 and 2015 , we contributed $ 9.6 million and $ 9.8 million , respectively, to our pension plans. Total contributions to our pension plans in fiscal year 2015 were $ 15.7 million . The following table presents the components of our other postretirement benefits expense (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Other postretirement benefits Service cost $ 0.6 $ 0.8 $ 1.4 $ 1.6 Interest costs 1.0 0.9 1.9 1.8 Amortization of losses 0.1 — — — Total other postretirement expense $ 1.7 $ 1.7 $ 3.3 $ 3.4 |
Stock-based Compensation
Stock-based Compensation | 6 Months Ended |
May 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION We have three types of stock-based compensation awards: restricted stock units (RSUs), stock options and company stock awarded as part of our long-term performance plan (LTPP). The following table sets forth the stock-based compensation expense recorded in selling, general and administrative (SG&A) expense (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Stock-based compensation expense $ 12.8 $ 10.2 $ 15.8 $ 13.9 Our 2016 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2015 annual grant. The weighted-average grant-date fair value of an option granted in 2016 was $17.50 and in 2015 was $12.52 as calculated under a lattice pricing model. Substantially all of the options granted vest ratably over a three-year period or upon retirement. The fair values of option grants in the stated periods were computed using the following assumptions for our various stock compensation plans: 2016 2015 Risk-free interest rates 0.5 - 1.9% 0.1 - 2.0% Dividend yield 1.7% 2.1% Expected volatility 18.7% 18.8% Expected lives (in years) 7.6 7.7 The following is a summary of our stock option activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (shares in millions) Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding at beginning of period 4.8 $ 59.20 4.8 $ 54.17 Granted 0.7 99.92 0.8 76.32 Exercised (0.4 ) 48.90 (0.4 ) 42.46 Outstanding at end of the period 5.1 $ 65.85 5.2 $ 58.33 Exercisable at end of the period 3.5 $ 56.60 3.4 $ 50.97 As of May 31, 2016 , the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $161.6 million and for options currently exercisable was $141.4 million . The total intrinsic value of all options exercised during the six months ended May 31, 2016 and 2015 was $18.0 million and $11.0 million , respectively. The following is a summary of our RSU activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (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 270 $ 71.03 239 $ 67.60 Granted 104 96.59 134 76.04 Vested (94 ) 72.21 (84 ) 71.30 Forfeited (6 ) 78.64 (7 ) 72.28 Outstanding at end of period 274 $ 81.42 282 $ 70.39 The following is a summary of our LTPP activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (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 192 $ 70.94 231 $ 61.94 Granted 108 86.40 96 74.02 Vested (18 ) 64.74 (65 ) 48.78 Forfeited (1 ) 74.02 (14 ) 70.92 Outstanding at end of period 281 $ 77.28 248 $ 69.55 |
Income Taxes
Income Taxes | 6 Months Ended |
May 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income tax disclosure | INCOME TAXES Income taxes for the three months ended May 31, 2016 included $6.9 million of discrete tax benefits primarily consisting of the following: (i) a reversal of a valuation allowance on an international deferred tax asset of $6.4 million due to a change in facts that favorably impacted our assessment of the likely recoverability of that deferred tax asset; and (ii) the reversal of unrecognized tax benefits and related interest of $0.2 million associated with the expiration of a statute of limitation in an international jurisdiction. Income taxes for the six months ended May 31, 2016 included $10.7 million of discrete tax benefits, consisting of the following: (i) the valuation allowance reversal in the amount of $6.4 million described above; (ii) recognition of the tax year 2015 research tax credit of $2.4 million related to new legislation enacted in our first quarter; (iii) the reversal of unrecognized tax benefits and related interest of $0.9 million associated with the expiration of statute of limitations in various jurisdictions; and (iv) a $1.0 million revaluation of a deferred tax liability related to legislation enacted in our first quarter reducing the statutory tax rate for a non-US jurisdiction. Other than the discrete tax benefits mentioned previously and additions for current year tax positions, there were no significant changes to unrecognized tax benefits during the three and six months ended May 31, 2016. Income taxes for the three months ended May 31, 2015, included $13.4 million of discrete tax benefits, consisting principally of the following: (i) a reversal of a previously established valuation allowance on a foreign deferred tax asset in the amount of $8.6 million due to a change in facts that favorably impacted our assessment of the likely recoverability of that deferred tax asset; and (ii) the reversals of unrecognized tax benefits and related interest in the amount of $5.0 million associated with expirations of statutes of limitations in the U.S. and international jurisdictions. Income taxes for the six months ended May 31, 2015, included $17.2 million of discrete tax benefits, consisting of the amounts described above as well as an additional $3.8 million of discrete tax benefits of which $1.8 million related to the reversal of unrecognized tax benefits and interest associated with a statute of limitation expiration in an international jurisdiction and the remainder principally related to the recognition of a 2014 research tax credit. A new law was enacted in the first quarter 2015 that retroactively granted the credit for our 2014 tax year. Other than the reversals previously described and additions for current year tax positions, there were no significant changes to unrecognized tax benefits during the three months and six months ended May 31, 2015. As of May 31, 2016, we believe that the reasonably possible total amount of unrecognized tax benefits that could decrease in the next 12 months as a result of various statute expirations, audit closures, and/or tax settlement would not be material to our consolidated financial statements. |
Earnings Per Share and Stock Is
Earnings Per Share and Stock Issuances | 6 Months Ended |
May 31, 2016 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
EARNINGS PER SHARE AND STOCK ISSUANCES | EARNINGS PER SHARE AND STOCK ISSUANCE The following table sets forth the reconciliation of average shares outstanding (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Average shares outstanding – basic 126.9 127.9 127.0 128.1 Effect of dilutive securities: Stock options/RSUs/LTPP 1.4 1.1 1.3 1.1 Average shares outstanding – diluted 128.3 129.0 128.3 129.2 The following table sets forth the stock options and RSUs for the three and six months ended May 31, 2016 and 2015 which were not considered in our earnings per share calculation since they were anti-dilutive (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Anti-dilutive securities 0.5 0.9 0.3 0.6 The following table sets forth the common stock activity for the three and six months ended May 31, 2016 and 2015 under the Company’s stock option and employee stock purchase plans and the repurchases of common stock under its stock repurchase program (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Shares issued under stock option, employee stock purchase plans and RSUs 0.4 0.1 0.5 0.4 Shares repurchased in connection with the stock repurchase program 0.5 0.1 1.1 0.9 As of May 31, 2016 , $ 469 million remained of the $600 million share repurchase authorization that was authorized by the Board of Directors in March 2015. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
May 31, 2016 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
COMPREHENSIVE INCOME | 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): May 31, 2016 May 31, 2015 November 30, 2015 Foreign currency translation adjustment $ (193.7 ) $ (118.5 ) $ (206.6 ) Unrealized gain on foreign currency exchange contracts 0.4 2.5 1.5 Fair value of interest rate swaps (excluding settled interest rate swaps) — 0.6 — Unamortized value of settled interest rate swaps 1.9 2.8 2.1 Pension and other postretirement costs (196.3 ) (212.1 ) (203.1 ) Accumulated other comprehensive loss $ (387.7 ) $ (324.7 ) $ (406.1 ) The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the three and six months ended May 31, 2016 and 2015 (in millions): Three months ended May 31, Six months ended May 31, Affected Line Items in the Condensed Consolidated Income Statement Accumulated Other Comprehensive Income (Loss) Components 2016 2015 2016 2015 (Gains)/losses on cash flow hedges: Interest rate derivatives $ — $ 0.1 $ 0.1 $ 0.1 Interest expense Foreign exchange contracts (1.8 ) (2.2 ) (3.1 ) (3.3 ) Cost of goods sold Total before tax (1.8 ) (2.1 ) (3.0 ) (3.2 ) Tax effect 0.4 0.3 0.7 0.6 Income taxes Net, after tax $ (1.4 ) $ (1.8 ) $ (2.3 ) $ (2.6 ) Amortization of pension and postretirement benefit adjustments: Amortization of prior service costs (1) $ 0.1 $ 0.1 $ 0.2 $ 0.2 SG&A expense/ Cost of goods sold Amortization of net actuarial losses (1) 4.4 5.7 8.4 11.4 SG&A expense/ Cost of goods sold Total before tax 4.5 5.8 8.6 11.6 Tax effect (1.5 ) (2.0 ) (2.9 ) (4.0 ) Income taxes Net, after tax $ 3.0 $ 3.8 $ 5.7 $ 7.6 (1) This accumulated other comprehensive income component is included in the computation of total pension expense (refer to note 7 for additional details). |
Business Segments
Business Segments | 6 Months Ended |
May 31, 2016 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We operate in two business segments: consumer and industrial. The consumer and industrial segments manufacture, market and distribute spices, seasoning mixes, condiments and other flavorful products throughout the world. Our consumer segment sells to retail outlets, including grocery, mass merchandise, warehouse clubs, discount and drug stores under the “McCormick” brand and a variety of brands around the world, including “Lawry’s”, “Zatarain’s”, “Simply Asia”, “Thai Kitchen”, “Ducros”, “Vahine”, “Schwartz”, “Club House”, “Kamis”, “Kohinoor”, “DaQiao”, “Drogheria & Alimentari”, "Stubb's", and "Gourmet Garden". Our industrial segment sells to food manufacturers and the foodservice industry both directly and indirectly through distributors. 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 individual product lines. We measure segment performance based on operating income excluding special charges as this activity is managed separately from the business segments. 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. Consumer Industrial Total (in millions) Three months ended May 31, 2016 Net sales $ 641.8 $ 421.5 $ 1,063.3 Operating income excluding special charges 86.4 42.5 128.9 Income from unconsolidated operations 6.2 1.5 7.7 Three months ended May 31, 2015 Net sales $ 599.8 $ 424.3 $ 1,024.1 Operating income excluding special charges 80.8 42.0 122.8 Income from unconsolidated operations 7.6 (0.2 ) 7.4 Six months ended May 31, 2016 Net sales $ 1,275.6 $ 817.9 $ 2,093.5 Operating income excluding special charges 180.7 78.9 259.6 Income from unconsolidated operations 13.8 2.3 16.1 Six months ended May 31, 2015 Net sales $ 1,220.1 $ 814.4 $ 2,034.5 Operating income excluding special charges 172.3 72.6 244.9 Income from unconsolidated operations 17.7 (0.4 ) 17.3 A reconciliation of operating income excluding special charges (which we use to measure segment profitability) to operating income is as follows (in millions): Consumer Industrial Total Three months ended May 31, 2016 Operating income $ 82.9 $ 42.1 $ 125.0 Add: Special charges 3.5 0.4 3.9 Operating income excluding special charges $ 86.4 $ 42.5 $ 128.9 Three months ended May 31, 2015 Operating income $ 65.1 $ 38.7 $ 103.8 Add: Special charges 15.7 3.3 19.0 Operating income excluding special charges $ 80.8 $ 42.0 $ 122.8 Six months ended May 31, 2016 Operating income $ 175.9 $ 78.2 $ 254.1 Add: Special charges 4.8 0.7 5.5 Operating income excluding special charges $ 180.7 $ 78.9 $ 259.6 Six months ended May 31, 2015 Operating income $ 137.4 60.1 $ 197.5 Add: Special charges 34.9 12.5 47.4 Operating income excluding special charges $ 172.3 72.6 244.9 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 6 Months Ended |
May 31, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT In June 2016, we reached agreement with our joint venture partner in South Africa to exit the joint venture. The transfer agreement, which is subject to regulatory approval and customary closing conditions, is expected to close on or about October 1, 2016. No material gain or loss is expected in connection with execution of the transfer agreement. Sales of this consolidated joint venture, a component of our industrial segment, were $3.9 million and $7.5 million for the three and six months ended May 31, 2016, respectively, and $7.0 million and $12.7 million for the three and six months ended May 31, 2015. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
May 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of presentation | 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. The results of consolidated operations for the three and six month periods ended May 31, 2016 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 are lower in the first half of the fiscal year and increase in the second half. The typical increase in net sales, net income and cash flow from operations in the second half of the year is largely 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, 2015 . |
Accounting and disclosure charges | Recently Issued Accounting Pronouncements In March 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update No. 2016-09 Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The standard is intended to simplify several areas of accounting for share-based compensation arrangements, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2018. Early adoption is permitted for all entities. We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. In February 2016, the FASB issued Accounting Standards Update No. 2016-02 Leases (Topic 842). This guidance revises existing practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors. The new guidance in ASU 2016-02 requires lessees to recognize a right-of-use asset and a lease liability for virtually all of their leases (other than leases that meet the definition of a short-term lease). The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. For income statement purposes, the new standard retains a dual model similar to ASC 840, requiring leases to be classified as either operating or finance. For lessees, operating leases will result in straight-line expense (similar to current accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to current accounting by lessees for capital leases under ASC 840). While the new standard maintains similar accounting for lessors as under ASC 840, the new standard reflects updates to, among other things, align with certain changes to the lessee model. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2020. Early adoption is permitted for all entities. We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. In May 2014, the FASB issued Accounting Standards Update No. 2014-09 Revenue from Contracts with Customers (Topic 606). This guidance is intended to improve and converge with international standards the financial reporting requirements for revenue from contracts with customers. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2019. Early adoption is permitted for all entities, but not before the original effective date for public business entities (i.e., annual reporting periods beginning after December 15, 2016 or our fiscal year ending November 30, 2018). We have not yet determined the impact from adoption of this new accounting pronouncement on our financial statements. For other recently issued accounting pronouncements that we have not yet adopted, see note 1 to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended November 30, 2015. |
Special Charges (Tables)
Special Charges (Tables) | 6 Months Ended |
May 31, 2016 | |
Special Charges [Abstract] | |
Special charges rollforward [Table Text Block] | The following table outlines the major components of accrual balances and activity relating to the special charges associated with the EMEA reorganization plan undertaken in 2013 and 2014 for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 2.3 $ — $ 2.3 Cash paid (1.2 ) — (1.2 ) Impact of foreign exchange 0.1 — 0.1 Balance as of May 31, 2016 $ 1.2 $ — $ 1.2 Balance as of November 30, 2014 $ 9.3 $ 0.7 $ 10.0 Cash paid (2.4 ) (0.6 ) (3.0 ) Impact of foreign exchange (1.6 ) (0.1 ) (1.7 ) Reversal into income (special charges) (1.9 ) — (1.9 ) Balance as of May 31, 2015 $ 3.4 $ — $ 3.4 The following table outlines the major components of accrual balances and activity relating to the special charges associated with our North American effectiveness initiative for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 2.3 $ — $ 2.3 Special charges 1.6 0.1 1.7 Cash paid (2.4 ) (0.1 ) (2.5 ) Balance as of May 31, 2016 $ 1.5 $ — $ 1.5 Balance as of November 30, 2014 $ — $ — $ — Special charges 25.4 1.0 26.4 Cash paid (19.5 ) (0.7 ) (20.2 ) Balance as of May 31, 2015 $ 5.9 $ 0.3 $ 6.2 The following is a breakdown of special charges by business segments for the three and six months ended May 31, 2016 and 2015 (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Consumer segment $ 3.5 $ 15.7 $ 4.8 $ 34.9 Industrial segment 0.4 3.3 0.7 12.5 Total special charges $ 3.9 $ 19.0 $ 5.5 $ 47.4 The following table outlines the major components of accrual balances and activity relating to the special charges associated with the EMEA reorganization plans described above for the six months ended May 31, 2016 and 2015 (in millions): Employee severance and related benefits Other related costs Total Balance as of November 30, 2015 $ 16.2 $ 0.6 $ 16.8 Special charges 1.3 1.8 3.1 Cash paid (3.8 ) (1.9 ) (5.7 ) Impact of foreign exchange 0.6 — 0.6 Balance as of May 31, 2016 $ 14.3 $ 0.5 $ 14.8 Balance as of November 30, 2014 $ — $ — $ — Special charges 21.4 1.5 22.9 Cash paid (1.9 ) — (1.9 ) Impairment of fixed assets — (1.1 ) (1.1 ) Impact of foreign exchange (0.1 ) — (0.1 ) Balance as of May 31, 2015 $ 19.4 $ 0.4 $ 19.8 |
Goodwill (Tables)
Goodwill (Tables) | 6 Months Ended |
May 31, 2016 | |
Goodwill Disclosure [Abstract] | |
Schedule of Goodwill [Table Text Block] | The changes in the carrying amount of goodwill by segment for the six months ended May 31, 2016 and 2015 were as follows (in millions): 2016 2015 Consumer Industrial Consumer Industrial Beginning of year $ 1,587.7 $ 171.6 $ 1,581.1 $ 141.1 Changes in preliminary purchase price allocation (4.2 ) — — — Increases in goodwill from acquisitions 63.2 — 45.2 37.9 Foreign currency fluctuations 20.3 (1.5 ) (83.5 ) (2.0 ) Balance as of end of May $ 1,667.0 $ 170.1 $ 1,542.8 $ 177.0 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
May 31, 2016 | |
Fair values of derivative instruments on balance sheet | The following table discloses the fair values of derivative instruments on our balance sheet (in millions): As of May 31, 2016 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 100.0 $ 3.0 Foreign exchange contracts Other current assets 155.2 3.7 Other accrued liabilities $ 72.4 $ 1.5 Total $ 6.7 $ 1.5 As of May 31, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 150.0 $ 5.9 Foreign exchange contracts Other current assets 174.5 6.0 Other accrued liabilities $ 34.8 $ 2.1 Total $ 11.9 $ 2.1 As of November 30, 2015 Asset Derivatives Liability Derivatives Balance Sheet Location Notional Amount Fair Value Balance Sheet Location Notional Amount Fair Value Interest rate contracts Other current assets $ 100.0 $ 2.5 Other accrued liabilities $ 100.0 $ 0.6 Foreign exchange contracts Other current assets 179.5 3.4 Other accrued liabilities 85.0 0.7 Total $ 5.9 $ 1.3 |
Fair Value Hedging [Member] | |
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 income statement for the three and six month periods ended May 31, 2016 and 2015 (in millions): Fair Value Hedges Derivative Income statement location Income (expense) Three months ended May 31, 2016 Three months ended May 31, 2015 Six months ended May 31, 2016 Six months ended May 31, 2015 Interest rate contracts Interest expense $ 0.3 $ 1.3 $ 0.9 $ 2.5 |
Cash Flow Hedging [Member] | |
Impact of fair value and cash flow hedges on other comprehensive income, accumulated other comprehensive income and income statement | Cash Flow Hedges – For the three months ended May 31, Derivative Gain or (Loss) recognized in OCI Income statement location Gain or (Loss) reclassified from AOCI 2016 2015 2016 2015 Interest rate contracts $ — $ 1.0 Interest expense $ — $ (0.1 ) Foreign exchange contracts (2.2 ) 0.1 Cost of goods sold 1.8 2.2 Total $ (2.2 ) $ 1.1 $ 1.8 $ 2.1 Cash Flow Hedges – For the six months ended May 31, Derivative Gain or (Loss) recognized in OCI Income statement location Gain or (Loss) reclassified from AOCI 2016 2015 2016 2015 Interest rate contracts $ — $ 1.0 Interest expense $ (0.1 ) $ (0.1 ) Foreign exchange contracts (0.1 ) 3.1 Cost of goods sold 3.1 3.3 Total $ (0.1 ) $ 4.1 $ 3.0 $ 3.2 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
May 31, 2016 | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The change in fair value of our Level 3 liabilities for the six months ended May 31, 2016 is summarized as follows (in millions): Beginning of year Settlements Changes in fair value including accretion Impact of foreign currency Balance as of May 31, 2016 Contingent consideration related to D&A acquisition $ 27.1 $ — $ 1.0 $ 1.5 $ 29.6 |
Fair Value, by Balance Sheet Grouping [Table Text Block] | The following table sets forth the carrying amount and fair values of our long-term debt (including the current portion thereof) at May 31, 2016, May 31, 2015 and November 30, 2015 (in millions): May 31, 2016 May 31, 2015 November 30, 2015 Carrying amount $ 1,055.8 $ 1,013.8 $ 1,256.2 Fair value 1,142.5 1,095.7 1,325.6 |
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): May 31, 2016 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 131.5 $ 131.5 $ — $ — Insurance contracts 103.4 — 103.4 — Bonds and other long-term investments 9.5 9.5 — — Interest rate derivatives 3.0 — 3.0 — Foreign currency derivatives 3.7 — 3.7 — Total $ 251.1 $ 141.0 $ 110.1 $ — Liabilities Foreign currency derivatives $ 1.5 $ — $ 1.5 $ — Contingent consideration related to D&A acquisition 29.6 — — 29.6 Total $ 31.1 $ — $ 1.5 $ 29.6 May 31, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 89.5 $ 89.5 $ — $ — Insurance contracts 107.1 — 107.1 — Bonds and other long-term investments 7.9 7.9 — — Interest rate derivatives 5.9 — 5.9 — Foreign currency derivatives 6.0 — 6.0 — Total $ 216.4 $ 97.4 $ 119.0 $ — Liabilities Foreign currency derivatives $ 2.1 $ — $ 2.1 $ — Contingent consideration related to D&A acquisition 26.0 — — 26.0 Total $ 28.1 $ — $ 2.1 $ 26.0 November 30, 2015 Fair Value Level 1 Level 2 Level 3 Assets Cash and cash equivalents $ 112.6 $ 112.6 $ — $ — Insurance contracts 104.1 — 104.1 — Bonds and other long-term investments 8.5 8.5 — — Interest rate derivatives 2.5 — 2.5 — Foreign currency derivatives 3.4 — 3.4 — Total $ 231.1 $ 121.1 $ 110.0 $ — Liabilities Foreign currency derivatives $ 0.7 $ — $ 0.7 $ — Interest rate derivatives 0.6 — 0.6 — Contingent consideration related to D&A acquisition 27.1 — — 27.1 Total $ 28.4 $ — $ 1.3 $ 27.1 |
Employee Benefit and Retireme24
Employee Benefit and Retirement Plans (Tables) | 6 Months Ended |
May 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of defined benefit plans disclosures | The following table presents the components of our pension expense of the defined benefit plans for the three months ended May 31, 2016 and 2015 (in millions): United States International 2016 2015 2016 2015 Defined benefit plans Service cost $ 5.4 $ 5.9 $ 1.8 $ 2.0 Interest costs 8.3 7.9 2.9 3.0 Expected return on plan assets (10.2 ) (10.1 ) (4.2 ) (4.3 ) Amortization of prior service costs — — 0.1 0.1 Amortization of net actuarial losses 3.2 4.2 1.1 1.5 Total pension expense $ 6.7 $ 7.9 $ 1.7 $ 2.3 The following table presents the components of our pension expense of the defined benefit plans for the six months ended May 31, 2016 and 2015 (in millions): United States International 2016 2015 2016 2015 Defined benefit plans Service cost $ 10.8 $ 11.8 $ 3.5 $ 4.1 Interest costs 16.6 15.8 5.8 6.1 Expected return on plan assets (20.3 ) (20.1 ) (8.3 ) (8.7 ) Amortization of prior service costs — — 0.2 0.2 Recognized net actuarial loss 6.3 8.4 2.1 3.0 Total pension expense $ 13.4 $ 15.9 $ 3.3 $ 4.7 |
Schedule of costs of retirement plans | The following table presents the components of our other postretirement benefits expense (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Other postretirement benefits Service cost $ 0.6 $ 0.8 $ 1.4 $ 1.6 Interest costs 1.0 0.9 1.9 1.8 Amortization of losses 0.1 — — — Total other postretirement expense $ 1.7 $ 1.7 $ 3.3 $ 3.4 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
May 31, 2016 | |
Share-based Compensation [Abstract] | |
Schedule of Assumptions Used [Table Text Block] | 2016 2015 Risk-free interest rates 0.5 - 1.9% 0.1 - 2.0% Dividend yield 1.7% 2.1% Expected volatility 18.7% 18.8% Expected lives (in years) 7.6 7.7 |
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 (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Stock-based compensation expense $ 12.8 $ 10.2 $ 15.8 $ 13.9 |
Summary of Option Activity | The following is a summary of our stock option activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (shares in millions) Number of Shares Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price Outstanding at beginning of period 4.8 $ 59.20 4.8 $ 54.17 Granted 0.7 99.92 0.8 76.32 Exercised (0.4 ) 48.90 (0.4 ) 42.46 Outstanding at end of the period 5.1 $ 65.85 5.2 $ 58.33 Exercisable at end of the period 3.5 $ 56.60 3.4 $ 50.97 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | The following is a summary of our RSU activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (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 270 $ 71.03 239 $ 67.60 Granted 104 96.59 134 76.04 Vested (94 ) 72.21 (84 ) 71.30 Forfeited (6 ) 78.64 (7 ) 72.28 Outstanding at end of period 274 $ 81.42 282 $ 70.39 |
Schedule of Share Based Compensation, Performance Shares, Activity [Table Text Block] | The following is a summary of our LTPP activity for the six months ended May 31, 2016 and 2015 : 2016 2015 (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 192 $ 70.94 231 $ 61.94 Granted 108 86.40 96 74.02 Vested (18 ) 64.74 (65 ) 48.78 Forfeited (1 ) 74.02 (14 ) 70.92 Outstanding at end of period 281 $ 77.28 248 $ 69.55 |
Earnings Per Share and Stock 26
Earnings Per Share and Stock Issuances (Tables) | 6 Months Ended |
May 31, 2016 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Reconciliation of average shares outstanding | The following table sets forth the reconciliation of average shares outstanding (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Average shares outstanding – basic 126.9 127.9 127.0 128.1 Effect of dilutive securities: Stock options/RSUs/LTPP 1.4 1.1 1.3 1.1 Average shares outstanding – diluted 128.3 129.0 128.3 129.2 |
Anti-dilutive securities not considered in earnings per share calculation | The following table sets forth the stock options and RSUs for the three and six months ended May 31, 2016 and 2015 which were not considered in our earnings per share calculation since they were anti-dilutive (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Anti-dilutive securities 0.5 0.9 0.3 0.6 |
Common stock activity | The following table sets forth the common stock activity for the three and six months ended May 31, 2016 and 2015 under the Company’s stock option and employee stock purchase plans and the repurchases of common stock under its stock repurchase program (in millions): Three months ended May 31, Six months ended May 31, 2016 2015 2016 2015 Shares issued under stock option, employee stock purchase plans and RSUs 0.4 0.1 0.5 0.4 Shares repurchased in connection with the stock repurchase program 0.5 0.1 1.1 0.9 |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
May 31, 2016 | |
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): May 31, 2016 May 31, 2015 November 30, 2015 Foreign currency translation adjustment $ (193.7 ) $ (118.5 ) $ (206.6 ) Unrealized gain on foreign currency exchange contracts 0.4 2.5 1.5 Fair value of interest rate swaps (excluding settled interest rate swaps) — 0.6 — Unamortized value of settled interest rate swaps 1.9 2.8 2.1 Pension and other postretirement costs (196.3 ) (212.1 ) (203.1 ) Accumulated other comprehensive loss $ (387.7 ) $ (324.7 ) $ (406.1 ) |
Comprehensive Income (Loss) Note [Text Block] | The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income for the three and six months ended May 31, 2016 and 2015 (in millions): Three months ended May 31, Six months ended May 31, Affected Line Items in the Condensed Consolidated Income Statement Accumulated Other Comprehensive Income (Loss) Components 2016 2015 2016 2015 (Gains)/losses on cash flow hedges: Interest rate derivatives $ — $ 0.1 $ 0.1 $ 0.1 Interest expense Foreign exchange contracts (1.8 ) (2.2 ) (3.1 ) (3.3 ) Cost of goods sold Total before tax (1.8 ) (2.1 ) (3.0 ) (3.2 ) Tax effect 0.4 0.3 0.7 0.6 Income taxes Net, after tax $ (1.4 ) $ (1.8 ) $ (2.3 ) $ (2.6 ) Amortization of pension and postretirement benefit adjustments: Amortization of prior service costs (1) $ 0.1 $ 0.1 $ 0.2 $ 0.2 SG&A expense/ Cost of goods sold Amortization of net actuarial losses (1) 4.4 5.7 8.4 11.4 SG&A expense/ Cost of goods sold Total before tax 4.5 5.8 8.6 11.6 Tax effect (1.5 ) (2.0 ) (2.9 ) (4.0 ) Income taxes Net, after tax $ 3.0 $ 3.8 $ 5.7 $ 7.6 (1) This accumulated other comprehensive income component is included in the computation of total pension expense (refer to note 7 for additional details). |
Business Segments (Tables)
Business Segments (Tables) | 6 Months Ended |
May 31, 2016 | |
Segment Reporting, Revenue Reconciling Item [Line Items] | |
Reconciliation of Revenue from Segments to Consolidated [Table Text Block] | A reconciliation of operating income excluding special charges (which we use to measure segment profitability) to operating income is as follows (in millions): Consumer Industrial Total Three months ended May 31, 2016 Operating income $ 82.9 $ 42.1 $ 125.0 Add: Special charges 3.5 0.4 3.9 Operating income excluding special charges $ 86.4 $ 42.5 $ 128.9 Three months ended May 31, 2015 Operating income $ 65.1 $ 38.7 $ 103.8 Add: Special charges 15.7 3.3 19.0 Operating income excluding special charges $ 80.8 $ 42.0 $ 122.8 Six months ended May 31, 2016 Operating income $ 175.9 $ 78.2 $ 254.1 Add: Special charges 4.8 0.7 5.5 Operating income excluding special charges $ 180.7 $ 78.9 $ 259.6 Six months ended May 31, 2015 Operating income $ 137.4 60.1 $ 197.5 Add: Special charges 34.9 12.5 47.4 Operating income excluding special charges $ 172.3 72.6 244.9 |
Business segments | Consumer Industrial Total (in millions) Three months ended May 31, 2016 Net sales $ 641.8 $ 421.5 $ 1,063.3 Operating income excluding special charges 86.4 42.5 128.9 Income from unconsolidated operations 6.2 1.5 7.7 Three months ended May 31, 2015 Net sales $ 599.8 $ 424.3 $ 1,024.1 Operating income excluding special charges 80.8 42.0 122.8 Income from unconsolidated operations 7.6 (0.2 ) 7.4 Six months ended May 31, 2016 Net sales $ 1,275.6 $ 817.9 $ 2,093.5 Operating income excluding special charges 180.7 78.9 259.6 Income from unconsolidated operations 13.8 2.3 16.1 Six months ended May 31, 2015 Net sales $ 1,220.1 $ 814.4 $ 2,034.5 Operating income excluding special charges 172.3 72.6 244.9 Income from unconsolidated operations 17.7 (0.4 ) 17.3 |
Acquisition - Additional Inform
Acquisition - Additional Information (Detail) € in Millions, AUD in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||
May 31, 2016USD ($) | Feb. 29, 2016USD ($) | May 31, 2016USD ($) | May 31, 2015USD ($) | Aug. 31, 2015USD ($) | Nov. 30, 2015USD ($) | Feb. 28, 2015AUD | Feb. 28, 2015EUR (€) | Feb. 28, 2015USD ($) | May 31, 2015EUR (€) | May 31, 2015USD ($) | |
Business Acquisition [Line Items] | |||||||||||
Business acquisition valuation of assets allocated to goodwill | $ 1,837.1 | $ 1,837.1 | $ 1,759.3 | $ 1,719.8 | |||||||
Contingent consideration related to acquisition | 29.6 | 29.6 | 27.1 | 27.7 | |||||||
Gourmet Garden [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | 118.1 | ||||||||||
Business Acquisition, Pro Forma Revenue | AUD | AUD 70 | ||||||||||
Business acquisition valuation of assets allocated to goodwill | 63.2 | 63.2 | |||||||||
Business Combination, Acquisition Related Costs | 2.4 | 3 | |||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 7.4 | 7.4 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Total | 20.4 | 20.4 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 20.3 | 20.3 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14.2 | $ 14.2 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 12 years | ||||||||||
Brand Aromatics [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 62.4 | ||||||||||
Business Acquisition, Pro Forma Revenue | $ 30 | ||||||||||
Business acquisition valuation of assets allocated to goodwill | 34.3 | ||||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | $ 7.2 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Total | 5.2 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 4.2 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 18.7 | ||||||||||
Finite-Lived Intangible Asset, Useful Life | 11 years 11 months | ||||||||||
D&A [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Cash Acquired from Acquisition | 2.8 | ||||||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | € | € 35 | ||||||||||
Business Acquisition, Pro Forma Revenue | € | € 50 | ||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 49 | ||||||||||
Business acquisition valuation of assets allocated to goodwill | 41.1 | $ 41.1 | |||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 17.2 | 31.8 | |||||||||
Contingent consideration related to acquisition | € 25 | $ 27.7 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Total | 3.2 | 3.2 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 12.6 | 12.6 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 19.8 | $ 19.8 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 13 years 10 months | ||||||||||
Stubbs [Member] | |||||||||||
Business Acquisition [Line Items] | |||||||||||
Business Combination, Consideration Transferred | $ 99.4 | ||||||||||
Business Acquisition, Pro Forma Revenue | $ 30 | ||||||||||
Business acquisition valuation of assets allocated to goodwill | 80.6 | $ 80.6 | |||||||||
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 9.4 | 14.7 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Tangible Assets, Total | 5.4 | 5.4 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | 12.4 | 12.4 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 13.3 | 13.3 | |||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 12.5 | $ 12.5 | |||||||||
Finite-Lived Intangible Asset, Useful Life | 14 years 4 months |
Special Charges (Details)
Special Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | 24 Months Ended | |||
May 31, 2016 | May 31, 2015 | Feb. 28, 2015 | May 31, 2016 | May 31, 2015 | Nov. 30, 2015 | Nov. 30, 2014 | |
Special Charges [Line Items] | |||||||
Special Charges | $ 3.9 | $ 19 | $ 5.5 | $ 47.4 | |||
Special charges reversal into income | (1.9) | ||||||
Consumer [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 3.5 | 15.7 | 4.8 | 34.9 | |||
Industrial [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 0.4 | 3.3 | 0.7 | 12.5 | |||
INDIA | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 0.4 | 0.7 | |||||
North America [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 1.5 | 1.9 | $ 24.5 | 1.7 | 26.4 | ||
Expected cost savings special charges | 15 | ||||||
Special charges liability | 1.5 | 6.2 | 1.5 | 6.2 | $ 2.3 | $ 0 | |
Special charges cash paid | 2.5 | 20.2 | |||||
EMEA [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 2 | 19 | 3.1 | 22.9 | 24.4 | ||
Special charges impairment | 1.1 | (1.1) | |||||
Special charges foreign exchange impact | (0.6) | 0.1 | |||||
Special charges liability | 14.8 | 19.8 | 14.8 | 19.8 | 16.8 | 0 | |
Special charges cash paid | 5.7 | 1.9 | |||||
EMEA 2013 [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 27.1 | ||||||
Special charges foreign exchange impact | 0.1 | (1.7) | |||||
Special charges cash paid | 1.2 | 3 | |||||
Total plan expenses [Member] | INDIA | Minimum [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 0.7 | ||||||
Total plan expenses [Member] | INDIA | Maximum [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 2.7 | ||||||
Total plan expenses [Member] | EMEA [Member] | Maximum [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 4 | ||||||
Total plan expenses [Member] | EMEA 2013 [Member] | |||||||
Special Charges [Line Items] | |||||||
Special charges liability | 1.2 | 3.4 | 1.2 | 3.4 | 2.3 | 10 | |
Employee Severance Charges [Member] | North America [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 1.6 | 25.4 | |||||
Special charges liability | 1.5 | 5.9 | 1.5 | 5.9 | 2.3 | 0 | |
Special charges cash paid | 2.4 | 19.5 | |||||
Employee Severance Charges [Member] | EMEA [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 17.9 | 1.3 | 21.4 | ||||
Special charges foreign exchange impact | 0.6 | (0.1) | |||||
Special charges liability | 14.3 | 19.4 | 14.3 | 19.4 | 16.2 | 0 | |
Special charges cash paid | 3.8 | 1.9 | |||||
Employee Severance Charges [Member] | EMEA 2013 [Member] | |||||||
Special Charges [Line Items] | |||||||
Special charges foreign exchange impact | (0.1) | 1.6 | |||||
Special charges liability | 1.2 | 3.4 | 1.2 | 3.4 | 2.3 | 9.3 | |
Special charges cash paid | 1.2 | 2.4 | |||||
Other exit costs [Member] | North America [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | (0.1) | 1 | |||||
Special charges liability | 0 | 0.3 | 0 | 0.3 | 0 | 0 | |
Special charges cash paid | (0.1) | (0.7) | |||||
Other exit costs [Member] | EMEA [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | 1.8 | 1.5 | |||||
Special charges impairment | (1.1) | ||||||
Special charges foreign exchange impact | 0 | 0 | |||||
Special charges liability | 0.5 | 0.4 | 0.5 | 0.4 | 0.6 | 0 | |
Special charges cash paid | 1.9 | 0 | |||||
Other exit costs [Member] | EMEA 2013 [Member] | |||||||
Special Charges [Line Items] | |||||||
Special charges foreign exchange impact | 0 | 0.1 | |||||
Special charges liability | 0 | 0 | 0 | 0 | $ 0 | $ 0.7 | |
Special charges cash paid | 0 | 0.6 | |||||
Annual Cost Savings [Member] | North America [Member] | |||||||
Special Charges [Line Items] | |||||||
Expected cost savings special charges | 27 | ||||||
Annual Cost Savings [Member] | EMEA [Member] | |||||||
Special Charges [Line Items] | |||||||
Expected cost savings special charges | 22 | ||||||
2016 Annual Cost Savings [Member] | EMEA [Member] | |||||||
Special Charges [Line Items] | |||||||
Expected cost savings special charges | 4 | ||||||
total special charges [Member] | |||||||
Special Charges [Line Items] | |||||||
Special Charges | $ 3.9 | $ 19 | $ 5.5 | $ 47.4 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Millions | 6 Months Ended | |||
May 31, 2016 | May 31, 2015 | Nov. 30, 2015 | Nov. 30, 2014 | |
Goodwill [Line Items] | ||||
Goodwill | $ 1,837.1 | $ 1,719.8 | $ 1,759.3 | |
Consumer Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 63.2 | 45.2 | ||
Goodwill | 1,667 | 1,542.8 | 1,587.7 | $ 1,581.1 |
Goodwill, Purchase Accounting Adjustments | (4.2) | 0 | ||
Goodwill, Translation Adjustments | 20.3 | (83.5) | ||
Industrial Segment [Member] | ||||
Goodwill [Line Items] | ||||
Goodwill, Acquired During Period | 0 | 37.9 | ||
Goodwill | 170.1 | 177 | $ 171.6 | $ 141.1 |
Goodwill, Purchase Accounting Adjustments | 0 | 0 | ||
Goodwill, Translation Adjustments | $ (1.5) | $ (2) |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) $ in Millions | 6 Months Ended |
May 31, 2016USD ($) | |
Debt Instrument [Line Items] | |
Maximum time frame for foreign exchange contracts, months | 16 months |
Amount of accumulated other comprehensive income expected to be reclassified to earnings in next 12 months | $ 1.9 |
Financial Instruments - Fair Va
Financial Instruments - Fair Value of Derivative Instruments on Balance Sheet (Detail) - USD ($) $ in Millions | May 31, 2016 | Nov. 30, 2015 | May 31, 2015 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total derivative assets, Fair Value | $ 6.7 | $ 5.9 | $ 11.9 |
Total derivative liabilities, Fair Value | 1.5 | 1.3 | 2.1 |
Interest Rate Contract [Member] | Other Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 3 | 2.5 | 5.9 |
Derivative Asset, Notional Amount | 100 | 100 | 150 |
Interest Rate Contract [Member] | Other Current Liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 0.6 | ||
Derivative Asset, Notional Amount | 100 | ||
Foreign Exchange Contract [Member] | Other Current Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Asset, Notional Amount | 155.2 | 179.5 | 174.5 |
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 3.7 | 3.4 | 6 |
Foreign Exchange Contract [Member] | Other accrued liabilities [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 1.5 | 0.7 | 2.1 |
Derivative Liability, Notional Amount | $ 72.4 | $ 85 | $ 34.8 |
Financial Instruments - Impact
Financial Instruments - Impact of Fair Value Hedges on Other Comprehensive Income, Accumulated Other Comprehensive Income and Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | $ 13.7 | $ 13 | $ 27.6 | $ 25.9 |
Interest Expense [Member] | Fair Value Hedging [Member] | Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest expense | $ 0.3 | $ 1.3 | $ 0.9 | $ 2.5 |
Financial Instruments-Impact of
Financial Instruments-Impact of Cash Flow Hedges on Other Comprehensive Income, Accumulated Other Comprehensive Income and Income Statement (Details) - Cash Flow Hedging [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | $ (2.2) | $ 1.1 | $ (0.1) | $ 4.1 |
Gain or (Loss) reclassified from AOCI | 1.8 | 2.1 | 3 | 3.2 |
Interest Rate Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | 0 | 1 | 0 | 1 |
Interest Rate Contract [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) reclassified from AOCI | 0 | (0.1) | (0.1) | (0.1) |
Foreign Exchange Contract [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | (2.2) | 0.1 | (0.1) | 3.1 |
Foreign Exchange Contract [Member] | Cost of Sales [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) reclassified from AOCI | $ 1.8 | $ 2.2 | $ 3.1 | $ 3.3 |
Fair Value Measurements-Assets
Fair Value Measurements-Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | May 31, 2016 | Nov. 30, 2015 | May 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term Debt | $ 1,055.8 | $ 1,256.2 | $ 1,013.8 |
Long-term Debt, Fair Value | 1,142.5 | 1,325.6 | 1,095.7 |
Liabilities [Abstract] | |||
Contingent consideration related to acquisition | 29.6 | 27.1 | 27.7 |
Recurring [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 131.5 | 112.6 | 89.5 |
Insurance contracts | 103.4 | 104.1 | 107.1 |
Bonds and other long-term investments | 9.5 | 8.5 | 7.9 |
Interest rate derivatives | 3 | 2.5 | 5.9 |
Foreign currency derivatives | 3.7 | 3.4 | 6 |
Total assets | 251.1 | 231.1 | 216.4 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 1.5 | 0.7 | 2.1 |
Interest rate derivatives | 0.6 | ||
Contingent consideration related to acquisition | 29.6 | 27.1 | 26 |
Total liabilities | 31.1 | 28.4 | 28.1 |
Recurring [Member] | Level 1 [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 131.5 | 112.6 | 89.5 |
Insurance contracts | 0 | 0 | 0 |
Bonds and other long-term investments | 9.5 | 8.5 | 7.9 |
Interest rate derivatives | 0 | 0 | 0 |
Foreign currency derivatives | 0 | 0 | 0 |
Total assets | 141 | 121.1 | 97.4 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 0 | 0 | 0 |
Total liabilities | 0 | 0 | |
Recurring [Member] | Level 2 [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Insurance contracts | 103.4 | 104.1 | 107.1 |
Bonds and other long-term investments | 0 | 0 | 0 |
Interest rate derivatives | 3 | 2.5 | 5.9 |
Foreign currency derivatives | 3.7 | 3.4 | 6 |
Total assets | 110.1 | 110 | 119 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 1.5 | 0.7 | 2.1 |
Interest rate derivatives | 0.6 | ||
Total liabilities | 1.5 | 1.3 | 2.1 |
Recurring [Member] | Level 3 [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Insurance contracts | 0 | 0 | 0 |
Bonds and other long-term investments | 0 | 0 | 0 |
Interest rate derivatives | 0 | 0 | 0 |
Foreign currency derivatives | 0 | 0 | 0 |
Total assets | 0 | 0 | 0 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 0 | 0 | 0 |
Contingent consideration related to acquisition | 29.6 | 27.1 | 26 |
Total liabilities | $ 29.6 | $ 27.1 | $ 26 |
Fair Value Measurements Changes
Fair Value Measurements Changes in Level 3 Liabilities (Details) $ in Millions | 6 Months Ended |
May 31, 2016USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | |
Contingent consideration related to acquisition, beginning balance | $ 27.1 |
Post acquisition | 1 |
Impact of foreign currency | 1.5 |
Contingent consideration related to acquisition, ending balance | $ 29.6 |
Employee Benefit And Retireme38
Employee Benefit And Retirement Plans-Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended | |
May 31, 2016 | May 31, 2015 | Nov. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Pension Contributions | $ 9.6 | $ 9.8 | $ 15.7 |
Employee Benefit And Retireme39
Employee Benefit And Retirement Plans - Components of Pension Expense of Defined benefit plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
United States [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 5.4 | $ 5.9 | $ 10.8 | $ 11.8 |
Interest costs | 8.3 | 7.9 | 16.6 | 15.8 |
Expected return on plan assets | (10.2) | (10.1) | (20.3) | (20.1) |
Amortization of prior service costs | 0 | 0 | 0 | 0 |
Recognized net actuarial loss | 3.2 | 4.2 | 6.3 | 8.4 |
Total pension expense | 6.7 | 7.9 | 13.4 | 15.9 |
International [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 1.8 | 2 | 3.5 | 4.1 |
Interest costs | 2.9 | 3 | 5.8 | 6.1 |
Expected return on plan assets | (4.2) | (4.3) | (8.3) | (8.7) |
Amortization of prior service costs | 0.1 | 0.1 | 0.2 | 0.2 |
Recognized net actuarial loss | 1.1 | 1.5 | 2.1 | 3 |
Total pension expense | $ 1.7 | $ 2.3 | $ 3.3 | $ 4.7 |
Employee Benefit and Retireme40
Employee Benefit and Retirement Plans-Components of Other Postretirement Benefit Expenses (Details) - Other postretirement benefits [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0.6 | $ 0.8 | $ 1.4 | $ 1.6 |
Interest costs | 1 | 0.9 | 1.9 | 1.8 |
Defined Benefit Plan, Amortization of Gains (Losses) | (0.1) | 0 | 0 | 0 |
Total other postretirement expense | $ 1.7 | $ 1.7 | $ 3.3 | $ 3.4 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ in Millions | 6 Months Ended | |
May 31, 2016USD ($)award_type | May 31, 2015USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Stock-based Compensation Award Types | award_type | 3 | |
Intrinsic value for all options outstanding | $ 161.6 | |
Intrinsic value for exercisable options | 141.4 | |
Total Intrinsic Value of all options exercised | $ 18 | $ 11 |
Stock-Based Compensation-Sellin
Stock-Based Compensation-Selling, General and Administrative Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Share-based Compensation [Abstract] | ||||
Total stock-based compensation expense | $ 12.8 | $ 10.2 | $ 15.8 | $ 13.9 |
Stock-Based Compensation-Range
Stock-Based Compensation-Range of Assumptions for Various Stock Compensation Plans (Details) | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.70% | 2.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 7 months | 7 years 256 days |
Risk-free interest rate, minimum | 0.50% | 0.10% |
Risk-free interest rate, maximum | 1.90% | 2.00% |
Expected volatility, minimum | 18.70% | 18.80% |
Expected volatility, maximum | 18.70% | 18.80% |
Stock-Based Compensation-Summar
Stock-Based Compensation-Summary of Stock Option Activity (Details) - $ / shares shares in Millions | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at end of period, Number of Shares | 5.1 | 5.2 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0.7 | 0.8 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 99.92 | $ 76.32 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period, Number of Shares | 4.8 | 4.8 |
Exercised, Number of Shares | 0.4 | 0.4 |
Excercisable at end of the period, Number of Shares | 3.5 | 3.4 |
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 | $ 59.20 | $ 54.17 |
Exercised, Weighted-Average Exercise Price | 48.90 | 42.46 |
Outstanding at end of period, Weighted-Average Exercise Price | 65.85 | 58.33 |
Exercisable at end of the period, Weighted-Average Exercise Price | $ 56.60 | $ 50.97 |
Stock-Based Compensation-Summ45
Stock-Based Compensation-Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period, Number of Shares | 270 | 239 |
Granted, Number of Shares | 104 | 134 |
Vested, Number of Shares | 94 | 84 |
Forfeited, Number of Shares | 6 | 7 |
Outstanding at end of period, Number of Shares | 274 | 282 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Outstanding at beginning of period, Weighted-Average Grant-Date Fair Value | $ 71.03 | $ 67.60 |
Granted, Weighted-Average Grant-Date Fair Value | 96.59 | 76.04 |
Vested, Weighted-Average Grant-Date Fair Value | 72.21 | 71.30 |
Forfeited, Weighted-Average Grant-Date Fair Value | 78.64 | 72.28 |
Outstanding at end of period, Weighted-Average Grant-Date Fair Value | $ 81.42 | $ 70.39 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of LTPP awards (Details) - Performance Shares [Member] - $ / shares shares in Thousands | 6 Months Ended | |
May 31, 2016 | May 31, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Outstanding at beginning of period, Number of Shares | 192 | 231 |
Granted, Number of Shares | 108 | 96 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | (18) | (65) |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (1) | (14) |
Outstanding at end of period, Number of Shares | 281 | 248 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ||
Outstanding at beginning of period, Weighted-Average Grant-Date Fair Value | $ 70.94 | $ 61.94 |
Granted, Weighted-Average Grant-Date Fair Value | 86.40 | 74.02 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 64.74 | 48.78 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | 74.02 | 70.92 |
Outstanding at end of period, Weighted-Average Grant-Date Fair Value | $ 77.28 | $ 69.55 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Income Tax Examination [Line Items] | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 5 | $ 0.9 | ||
Foreign Tax Authority [Member] | ||||
Income Tax Examination [Line Items] | ||||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | $ 0.2 | $ 1.8 | ||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Amount | 6.4 | 8.6 | 6.4 | |
Change in enacted tax rate | 1 | |||
Domestic Tax Authority [Member] | ||||
Income Tax Examination [Line Items] | ||||
Effective Income Tax Rate Reconciliation, Tax Credit, Amount | $ 6.9 | $ 13.4 | 10.7 | 17.2 |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | $ 2.4 | $ 3.8 |
Earnings Per Share and Stock 48
Earnings Per Share and Stock Issuances-Reconciliation of Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Average shares outstanding - basic (shares) | 126.9 | 127.9 | 127 | 128.1 |
Effect of dilutive securities: [Abstract] | ||||
Stock options/Restricted Stock Units (RSUs)/MTIP | 1.4 | 1.1 | 1.3 | 1.1 |
Average shares outstanding-diluted | 128.3 | 129 | 128.3 | 129.2 |
Earnings Per Share and Stock 49
Earnings Per Share and Stock Issuances-Antidilutive Securities not Considered in Earnings Per Share Calculation (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Anti-dilutive securities | 0.5 | 0.9 | 0.3 | 0.6 |
Earnings Per Share and Stock 50
Earnings Per Share and Stock Issuances-Common Stock Activity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Employee Stock Purchase Plan [Line Items] | ||||
Stock Repurchase Program, Authorized Amount | $ 600 | $ 600 | ||
Stock Options And Restricted Stock Units [Member] | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Shares issued under stock option, employee stock purchase plans and RSUs | 0.4 | 0.1 | 0.5 | 0.4 |
Share Repurchase Program [Member] | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Stock Repurchased During Period, Shares | 0.5 | 0.1 | 1.1 | 0.9 |
Earnings Per Share and Stock 51
Earnings Per Share and Stock Issuances-Additional Information (Details) $ in Millions | May 31, 2016USD ($) |
Earnings Per Share, Basic and Diluted [Abstract] | |
Stock repurchase program, remaining authorized repurchase amount | $ 469 |
Stock Repurchase Program, Authorized Amount | $ 600 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income-Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | Nov. 30, 2015 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ (1.8) | $ (2.1) | $ (3) | $ (3.2) | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0.4 | 0.3 | 0.7 | 0.6 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | (1.4) | (1.8) | (2.3) | (2.6) | ||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | [1] | 0.1 | 0.1 | 0.2 | 0.2 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | [1] | 4.4 | 5.7 | 8.4 | 11.4 | |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | 4.5 | 5.8 | 8.6 | 11.6 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Tax | (1.5) | (2) | (2.9) | (4) | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss, Net of Tax | 3 | 3.8 | 5.7 | 7.6 | ||
Foreign currency translation adjustment | (193.7) | (118.5) | (193.7) | (118.5) | $ (206.6) | |
Unrealized gain (loss) on foreign currency exchange contracts | 0.4 | 2.5 | 0.4 | 2.5 | 1.5 | |
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 0 | 0.6 | 0 | 0.6 | ||
Unamoritzed value of settled interest rate swaps | 1.9 | 2.8 | 1.9 | 2.8 | 2.1 | |
Pension and other postretirement costs | (196.3) | (212.1) | (196.3) | (212.1) | (203.1) | |
Accumulated other comprehensive income | (387.7) | (324.7) | (387.7) | (324.7) | $ (406.1) | |
Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | (1.8) | (2.2) | (3.1) | (3.3) | ||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | $ 0 | $ 0.1 | $ 0.1 | $ 0.1 | ||
[1] | This accumulated other comprehensive income component is included in the computation of total pension expense (refer to note 7 for additional details). |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 6 Months Ended |
May 31, 2016segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Business Segments (Detail)
Business Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | $ 125 | $ 103.8 | $ 254.1 | $ 197.5 |
Special Charges | 3.9 | 19 | 5.5 | 47.4 |
Net sales | 1,063.3 | 1,024.1 | 2,093.5 | 2,034.5 |
Income from unconsolidated operations | 7.7 | 7.4 | 16.1 | 17.3 |
Operating income excluding special charges | 128.9 | 122.8 | 259.6 | 244.9 |
Consumer [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 82.9 | 65.1 | 175.9 | 137.4 |
Special Charges | 3.5 | 15.7 | 4.8 | 34.9 |
Net sales | 641.8 | 599.8 | 1,275.6 | 1,220.1 |
Income from unconsolidated operations | 6.2 | 7.6 | 13.8 | 17.7 |
Operating income excluding special charges | 86.4 | 80.8 | 180.7 | 172.3 |
Industrial [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Operating Income (Loss) | 42.1 | 38.7 | 78.2 | 60.1 |
Special Charges | 0.4 | 3.3 | 0.7 | 12.5 |
Net sales | 421.5 | 424.3 | 817.9 | 814.4 |
Income from unconsolidated operations | 1.5 | (0.2) | 2.3 | (0.4) |
Operating income excluding special charges | $ 42.5 | $ 42 | $ 78.9 | $ 72.6 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
May 31, 2016 | May 31, 2015 | May 31, 2016 | May 31, 2015 | |
Industrial Segment [Member] | Majority-Owned Subsidiary, Unconsolidated [Member] | ||||
Subsequent Event [Line Items] | ||||
Revenues | $ 3.9 | $ 7 | $ 7.5 | $ 12.7 |