Document and Entity Information
Document and Entity Information | 9 Months Ended |
Aug. 31, 2020shares | |
Document Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Aug. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-14920 |
Entity Registrant Name | MCCORMICK & CO INC |
Entity Incorporation, State or Country Code | MD |
Entity Tax Identification Number | 52-0408290 |
Entity Address, Address Line One | 24 Schilling Road, Suite 1, |
Entity Address, City or Town | Hunt Valley, |
Entity Address, State or Province | MD |
Entity Address, Postal Zip Code | 21031 |
City Area Code | 410 |
Local Phone Number | 771-7301 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Small Business | false |
Entity Emerging Growth Company | false |
Entity Shell Company | false |
Entity Central Index Key | 0000063754 |
Current Fiscal Year End Date | --11-30 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q3 |
Amendment Flag | false |
Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock |
Trading Symbol | MKC-V |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 9,063,590 |
Nonvoting Common Stock | |
Document Information [Line Items] | |
Title of 12(b) Security | Common Stock Non-Voting |
Trading Symbol | MKC |
Security Exchange Name | NYSE |
Entity Common Stock, Shares Outstanding | 124,347,973 |
CONDENSED CONSOLIDATED INCOME S
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Net sales | $ 1,430.3 | $ 1,329.2 | $ 4,043.4 | $ 3,862.6 |
Cost of goods sold | 840 | 789.3 | 2,403.7 | 2,347.3 |
Gross profit | 590.3 | 539.9 | 1,639.7 | 1,515.3 |
Selling, general and administrative expense | 317.2 | 278.7 | 911.1 | 839.9 |
Special charges | 0.1 | 7.7 | 4 | 16.9 |
Operating income | 273 | 253.5 | 724.6 | 658.5 |
Interest expense | 33.5 | 41.3 | 103.2 | 126.7 |
Other income, net | 3.9 | 6.9 | 12.5 | 19.3 |
Income from consolidated operations before income taxes | 243.4 | 219.1 | 633.9 | 551.1 |
Income tax expense | 46.9 | 36.8 | 117.4 | 91 |
Net income from consolidated operations | 196.5 | 182.3 | 516.5 | 460.1 |
Income from unconsolidated operations | 9.6 | 9.6 | 30.2 | 29.2 |
Net income | $ 206.1 | $ 191.9 | $ 546.7 | $ 489.3 |
Earnings per share - basic (usd per share) | $ 1.55 | $ 1.45 | $ 4.11 | $ 3.69 |
Average shares outstanding - basic (shares) | 133.3 | 132.8 | 133.1 | 132.5 |
Earnings per share - diluted (usd per share) | $ 1.53 | $ 1.43 | $ 4.06 | $ 3.65 |
Average shares outstanding - diluted (shares) | 134.8 | 134.2 | 134.5 | 134 |
Common Stock | ||||
Cash dividends paid per common share (usd per share) | $ 0.62 | $ 0.57 | $ 1.86 | $ 1.71 |
Common Stock, Dividends, Per Share, Declared | $ 0.62 | $ 0.57 | $ 1.24 | $ 1.14 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract] | ||||
Net income | $ 206.1 | $ 191.9 | $ 546.7 | $ 489.3 |
Net income attributable to non-controlling interest | 1.6 | 0.3 | 3.1 | 1.5 |
Other comprehensive income (loss): | ||||
Unrealized components of pension and postretirement plans | (2.1) | (0.7) | 3.6 | (2.8) |
Currency translation adjustments | 146.7 | (44.9) | 65.8 | (66.8) |
Change in derivative financial instruments | (0.7) | (0.1) | 0.2 | (0.1) |
Deferred taxes | 3.2 | 0 | (1.6) | 0.4 |
Comprehensive income | 147.1 | (45.7) | 68 | (69.3) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 354.8 | $ 146.5 | $ 617.8 | $ 421.5 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEET - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Current Assets | |||
Cash and cash equivalents | $ 221 | $ 155.4 | $ 162.9 |
Trade accounts receivable, net | 496.5 | 502.9 | 494.6 |
Inventories, net | |||
Finished products | 437.5 | 413.3 | 442.5 |
Raw materials and work-in-process | 504.6 | 387.9 | 404.4 |
Total inventory | 942.1 | 801.2 | 846.9 |
Prepaid expenses and other current assets | 100 | 90.7 | 85 |
Total current assets | 1,759.6 | 1,550.2 | 1,589.4 |
Property, plant and equipment, net | 960.9 | 952.6 | 910 |
Goodwill | 4,574.4 | 4,505.2 | 4,496.5 |
Intangible assets, net | 2,843 | 2,847 | 2,850.3 |
Other long-term assets | 722.8 | 507.1 | 519.8 |
Total assets | 10,860.7 | 10,362.1 | 10,366 |
Current Liabilities | |||
Short-term borrowings | 167.8 | 600.7 | 683.6 |
Current portion of long-term debt | 263.7 | 97.7 | 119.3 |
Trade accounts payable | 902.8 | 846.9 | 783.1 |
Other accrued liabilities | 619.2 | 609.1 | 444.4 |
Total current liabilities | 1,953.5 | 2,154.4 | 2,030.4 |
Long-term debt | 3,737.5 | 3,625.8 | 3,843.1 |
Deferred taxes | 704.4 | 697.6 | 701.2 |
Other long-term liabilities | 519.3 | 427.6 | 310.7 |
Total liabilities | 6,914.7 | 6,905.4 | 6,885.4 |
Shareholders’ Equity | |||
Retained earnings | 2,391 | 2,055.8 | 2,019.8 |
Accumulated other comprehensive loss | (429.9) | (500.2) | (428.3) |
Non-controlling interests | 13.3 | 12.5 | 11.9 |
Total shareholders’ equity | 3,946 | 3,456.7 | 3,480.6 |
Total liabilities and shareholders’ equity | 10,860.7 | 10,362.1 | 10,366 |
Stockholders' Equity Attributable to Parent [Abstract] | |||
Stockholders' Equity Attributable to Parent | 3,932.7 | 3,444.2 | 3,468.7 |
Common Stock | |||
Shareholders’ Equity | |||
Common stock | 480.5 | 447.6 | 441.3 |
Nonvoting Common Stock | |||
Shareholders’ Equity | |||
Common stock | $ 1,491.1 | $ 1,441 | $ 1,435.9 |
CONDENSED CONSOLIDATED CASH FLO
CONDENSED CONSOLIDATED CASH FLOW STATEMENT (UNAUDITED) - USD ($) $ in Millions | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Operating activities | ||
Net income | $ 546.7 | $ 489.3 |
Adjustments to reconcile net income to net cash flow provided by operating activities: | ||
Depreciation and amortization | 123.9 | 118 |
Stock-based compensation | 37.8 | 30.6 |
Income from unconsolidated operations | (30.2) | (29.2) |
Changes in operating assets and liabilities | (74.9) | (139.8) |
Dividends from unconsolidated affiliates | 23.4 | 25.7 |
Net cash flow provided by operating activities | 626.7 | 494.6 |
Investing activities | ||
Capital expenditures (including software) | (145.6) | (107.1) |
Other investing activities | 2.3 | 2.6 |
Net cash flow used in investing activities | (143.3) | (104.5) |
Financing activities | ||
Short-term borrowings, net | (432) | 124.4 |
Long-term debt borrowings | 506.4 | 0 |
Payment of debt issuance costs | (1.1) | |
Long-term debt repayments | (256) | (214.6) |
Proceeds from exercised stock options | 54.1 | 84.6 |
Taxes withheld and paid on employee stock awards | (10.7) | (10.3) |
Common stock acquired by purchase | (46) | (76.9) |
Dividends paid | (247.4) | (226.4) |
Net cash flow used in financing activities | (432.7) | (319.2) |
Effect of exchange rate changes on cash and cash equivalents | 14.9 | (4.6) |
Increase in cash and cash equivalents | 65.6 | 66.3 |
Cash and cash equivalents at beginning of period | 155.4 | 96.6 |
Cash and cash equivalents at end of period | $ 221 | $ 162.9 |
Consolidated Statement Of Share
Consolidated Statement Of Shareholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Common Stock | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Income [Member] | Non-Controlling Interests [Member] | Nonvoting Common StockCommon Stock |
Balance, Shares at Nov. 30, 2018 | 9.6 | 122.5 | ||||
Balance, Value at Nov. 30, 2018 | $ 3,182.2 | $ 1,770.6 | $ 1,760.2 | $ (359.9) | $ 11.3 | |
Comprehensive income: | ||||||
Net income | 489.3 | 489.3 | ||||
Net income attributable to non-controlling interest | 1.5 | 1.5 | ||||
Other comprehensive income (loss), net of tax | (69.3) | (68.4) | (0.9) | |||
Currency translation adjustments | (66.8) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 30.6 | $ 30.6 | ||||
Shares purchased and retired, Shares | (0.2) | (0.4) | ||||
Shares purchased and retired, Value | (91.9) | $ (13.3) | (78.6) | |||
Equal exchange, shares | (1.5) | 1.5 | ||||
Balance, Shares at Aug. 31, 2019 | 9.3 | 123.6 | ||||
Balance, Value at Aug. 31, 2019 | 3,480.6 | $ 1,877.2 | 2,019.8 | (428.3) | 11.9 | |
Comprehensive income: | ||||||
Stock Issued During Period, Shares, New Issues | 1.4 | 0 | ||||
Stock Issued During Period, Value, New Issues | 89.3 | $ 89.3 | ||||
Dividends | (151.1) | (151.1) | ||||
Balance, Shares at May. 31, 2019 | 9.5 | 123 | ||||
Balance, Value at May. 31, 2019 | 3,382.6 | $ 1,835 | 1,918.6 | (382.7) | 11.7 | |
Comprehensive income: | ||||||
Net income | 191.9 | 191.9 | ||||
Net income attributable to non-controlling interest | 0.3 | 0.3 | ||||
Other comprehensive income (loss), net of tax | (45.7) | (45.6) | (0.1) | |||
Currency translation adjustments | (44.9) | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 7.8 | $ 7.8 | ||||
Shares purchased and retired, Shares | (0.1) | 0 | ||||
Shares purchased and retired, Value | (18.3) | $ (3.2) | (15.1) | |||
Equal exchange, shares | (0.6) | 0.6 | ||||
Balance, Shares at Aug. 31, 2019 | 9.3 | 123.6 | ||||
Balance, Value at Aug. 31, 2019 | 3,480.6 | $ 1,877.2 | 2,019.8 | (428.3) | 11.9 | |
Comprehensive income: | ||||||
Stock Issued During Period, Shares, New Issues | 0.5 | 0 | ||||
Stock Issued During Period, Value, New Issues | 37.6 | $ 37.6 | ||||
Dividends | (75.6) | (75.6) | ||||
Balance, Shares at Nov. 30, 2019 | 9.3 | 123.6 | ||||
Balance, Value at Nov. 30, 2019 | 3,456.7 | $ 1,888.6 | 2,055.8 | (500.2) | 12.5 | |
Comprehensive income: | ||||||
Net income | 546.7 | 546.7 | ||||
Net income attributable to non-controlling interest | 3.1 | 3.1 | ||||
Other comprehensive income (loss), net of tax | 68 | 70.3 | (2.3) | |||
Currency translation adjustments | 65.8 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 37.8 | $ 37.8 | ||||
Shares purchased and retired, Shares | (0.2) | (0.1) | ||||
Shares purchased and retired, Value | (59.1) | $ (12.6) | (46.5) | |||
Equal exchange, shares | (0.8) | 0.8 | ||||
Balance, Shares at Aug. 31, 2020 | 9.1 | 124.3 | ||||
Balance, Value at Aug. 31, 2020 | 3,946 | $ 1,971.6 | 2,391 | (429.9) | 13.3 | |
Comprehensive income: | ||||||
Stock Issued During Period, Shares, New Issues | 0.8 | 0 | ||||
Stock Issued During Period, Value, New Issues | 57.8 | $ 57.8 | ||||
Dividends | (165) | (165) | ||||
Balance, Shares at May. 31, 2020 | 9.3 | 123.9 | ||||
Balance, Value at May. 31, 2020 | 3,662.3 | $ 1,938.9 | 2,288.7 | (577.7) | 12.4 | |
Comprehensive income: | ||||||
Net income | 206.1 | 206.1 | ||||
Net income attributable to non-controlling interest | 1.6 | 1.6 | ||||
Other comprehensive income (loss), net of tax | 147.1 | 147.8 | (0.7) | |||
Currency translation adjustments | 146.7 | |||||
Adjustments to Additional Paid in Capital, Share-based Compensation, Requisite Service Period Recognition | 10.7 | $ 10.7 | ||||
Shares purchased and retired, Shares | (0.1) | 0 | ||||
Shares purchased and retired, Value | (28.6) | $ (7.4) | (21.2) | |||
Equal exchange, shares | (0.4) | 0.4 | ||||
Balance, Shares at Aug. 31, 2020 | 9.1 | 124.3 | ||||
Balance, Value at Aug. 31, 2020 | 3,946 | $ 1,971.6 | 2,391 | $ (429.9) | $ 13.3 | |
Comprehensive income: | ||||||
Stock Issued During Period, Shares, New Issues | 0.3 | 0 | ||||
Stock Issued During Period, Value, New Issues | 29.4 | $ 29.4 | ||||
Dividends | $ (82.6) | $ (82.6) |
Accounting Policies
Accounting Policies | 9 Months Ended |
Aug. 31, 2020 | |
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 consolidated balance sheet as of August 31, 2019 includes a reclassification of $59.8 million of capitalized software from property, plant and equipment, net, to other long-term assets to conform to our current presentation. The results of consolidated operations for the nine-month period ended August 31, 2020 are not necessarily indicative of the results to be expected for the full year. Historically, our net sales, net income and cash flow from operations have been lower in the first half of the fiscal year and higher in the second half. The historical increase in net sales, net income and cash flow from operations in the second half of the year has largely been due to the consumer business cycle in the U.S., where customers typically purchase more products in the fourth quarter due to the Thanksgiving and Christmas holiday seasons. For further information, refer to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended November 30, 2019. Impact of COVID-19 On March 11, 2020, the World Health Organization designated a new coronavirus (“COVID-19”) as a global pandemic. Governments around the world mandated orders to slow the transmission of the virus that included shelter-in-place orders, quarantines, and significant restrictions on travel, as well as work restrictions that prohibited many employees from going to work. The extent and nature of government actions have varied during the nine months ended August 31, 2020 based upon the then-current extent and severity of the COVID-19 pandemic within their respective countries and localities. Uncertainty with respect to the economic effects of the pandemic has introduced significant volatility in the financial markets. We are partnering with our customers to react to consumer demand changes associated with COVID-19. The effects of COVID-19 on consumer behavior have, on a net basis, favorably impacted the operating results of our consumer segment and unfavorably impacted the operating results of our flavor solutions segment in the three months and nine months ended August 31, 2020. The impact of COVID-19 on our consumer segment during those periods resulted in a significant increase in at-home consumption and related demand for our products. The unfavorable impact on our flavor solutions segment during the same periods was principally attributable to decreased demand from certain customers that were affected by government mandates related to COVID-19 in many of our markets. Those measures included closures of dine-in restaurants or restrictions on the operations of those restaurants to carry-out or delivery only as well as restrictions on the operations of quick service restaurants to drive-through pick-up or delivery. Those negative demand impacts in our flavor solutions segment were partially offset by increased at-home consumption from certain customers in our flavor solutions segment that use our products to flavor their own brands for at-home consumption. Accounting Pronouncements Adopted in 2020 As more fully described in note 1 of notes to consolidated financial statements included in our Form 10-K for the year ended November 30, 2019, we were required to adopt the new accounting standard for leases, Accounting Standards Codification Topic 842 Leases (ASC 842), as of December 1, 2019 and we elected to do so using a modified retrospective transition method. That modified retrospective transition method allowed us to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to retained earnings in the opening balance sheet in the period of adoption without restating prior periods. ASC 842 revised prior practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors and requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use ("ROU") assets. Under ASC 842, the lease liability is equal to the present value of lease payments, and the ROU asset is based on the lease liability, subject to adjustments, such as for deferred rent and initial direct costs. For income statement purposes, ASC 842 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 prior accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to prior accounting by lessees for capital leases under ASC 840). We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification. In addition, we made accounting policy elections to combine the lease and non-lease components for all asset categories other than real estate. We also made elections to exclude from balance sheet reporting those leases with initial terms of 12 months or less ("short-term leases"). Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of $136.5 million and $140.0 million, respectively, with the difference due to prepaid and deferred rents that were reclassified to the ROU asset value. No cumulative-effect adjustment to opening retained earnings was required as of December 1, 2019. The standard did not materially affect our consolidated net income or cash flows for the three- and nine-month periods ended August 31, 2020. See note 4 for further details. Recently Issued Accounting Pronouncements — Pending Adoption In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-04 Intangibles — Goodwill and Other Topics (Topic 350) — Simplifying the Test for Goodwill Impairment. This guidance eliminates the requirement to calculate the implied fair value of goodwill of a reporting unit to measure a goodwill impairment charge. Instead, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2021. Early adoption is permitted for all entities for annual and interim goodwill impairment testing dates after January 1, 2017. We currently do not expect this guidance to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Special Charges
Special Charges | 9 Months Ended |
Aug. 31, 2020 | |
Special Charges [Abstract] | |
Special Charges [Text Block] | SPECIAL CHARGES In our consolidated income statement, we include a separate line item captioned “Special charges” in arriving at our consolidated operating income. Special charges consist of expenses associated with certain actions undertaken by the Company to reduce fixed costs, simplify or improve processes, and improve our competitiveness and are of such significance in terms of both up-front costs and organizational/structural impact to require advance approval by our Management Committee, comprised of our senior management, including our Chairman, President and Chief Executive Officer. Upon presentation of any such proposed action (generally including details with respect to estimated costs, which typically consist principally of employee severance and related benefits, together with ancillary costs associated with the action that may include a non-cash component or a component which relates to inventory adjustments that are included in cost of goods sold; impacted employees or operations; expected timing; and expected savings) to the Management Committee and the Committee’s advance approval, expenses associated with the approved action are classified as special charges upon recognition and monitored on an on-going basis through completion. The following is a summary of special charges recognized in the three and nine months ended August 31, 2020 and 2019 (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Employee severance and related benefits $ — $ 1.1 $ 2.2 $ 5.1 Other costs 0.1 6.6 1.8 11.8 Total $ 0.1 $ 7.7 $ 4.0 $ 16.9 We continue to evaluate changes to our organization structure to enable us to reduce fixed costs, simplify or improve processes, and improve our competitiveness. In 2017, our Management Committee approved a multi-year initiative during which we expect to execute significant changes to our global processes, capabilities and operating model to provide a scalable platform for future growth. We expect this initiative to enable us to accelerate our ability to work globally and cross-functionally by aligning and simplifying processes throughout McCormick, in part building upon our current shared services foundation and expanding the end-to-end processes presently under that foundation. We expect this initiative, which we refer to as Global Enablement ("GE"), to enable this scalable platform for future growth while reducing costs, enabling faster decision making, increasing agility and creating capacity within our organization. We expect the cost of the GE initiative — to be recognized as “Special charges” in our consolidated income statement over its expected multi-year course — to range from approximately $60 million to $65 million. Of that $60 million to $65 million, we estimate that approximately sixty percent will be attributable to cash payments associated with the related costs of GE implementation and transition, including outside consulting and other costs, and approximately forty percent will be attributable to severance and related benefit payments, all directly related to the initiative. During the nine months ended August 31, 2020, we incurred special charges associated with our GE initiative of $1.1 million. Prior to this, through November 30, 2019, we have spent a cumulative total of $38.3 million on this initiative. During the three months ended August 31, 2020, we recorded $0.1 million of special charges consisting primarily of streamlining actions in our Europe, Middle East and Africa (EMEA) region. During the nine months ended August 31, 2020, we recorded $4.0 million of special charges consisting of $2.9 million of streamlining actions in EMEA and $1.1 million related to our GE initiative, including $0.5 million of third-party expenses, $0.3 million related to severance and related benefits, and $0.3 million related to other costs. During the three months ended August 31, 2019, we recorded $7.7 million of special charges, consisting primarily of (i) $6.0 million related to our GE initiative, including $5.5 million of third-party expenses, $0.3 million related to employee severance and related benefits, and $0.2 million related to other costs, and (ii) $1.3 million related to streamlining actions in our EMEA region. During the nine months ended August 31, 2019, we recorded $16.9 million of special charges, consisting primarily of (i) $12.2 million related to our GE initiative, including $8.9 million of third-party expenses, $2.0 million related to employee severance and related benefits, and $1.3 million related to other costs, (ii) $2.3 million of employee severance and related benefits associated with streamlining actions in the Americas region, and (iii) $1.9 million related to streamlining actions in our EMEA region. As of August 31, 2020, reserves associated with special charges, which are expected to be paid during the remainder of fiscal year 2020, are included in accounts payable and other accrued liabilities in our consolidated balance sheet. The following is a breakdown by business segments of special charges for the three and nine months ended August 31, 2020 and 2019 (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Consumer segment $ — $ 4.6 $ 3.1 $ 11.0 Flavor solutions segment 0.1 3.1 0.9 5.9 Total special charges $ 0.1 $ 7.7 $ 4.0 $ 16.9 |
Financial Instruments
Financial Instruments | 9 Months Ended |
Aug. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financing Arrangements and Financial Instruments | FINANCING ARRANGEMENTS AND FINANCIAL INSTRUMENTS In April 2020, we issued $500.0 million of 2.50% notes due April 15, 2030, with cash proceeds received of $495.0 million, net of discounts and underwriters' fees. Interest is payable semiannually in arrears in April and October of each year. The net proceeds from this issuance were used to pay down borrowings and for general corporate purposes. During the nine months ended August 31, 2020 and 2019, we repaid $250.0 million and $106.3 million, respectively, of the five-year term loan due August 17, 2022, which included $56.3 million of aggregate quarterly principal payments required in each nine-month period. During the nine months ended August 31, 2019, we also repaid $100.0 million of the three-year term loan due August 17, 2020. We use derivative financial instruments to enhance our ability to manage risk, including foreign currency, net investment and interest rate exposures, which exist as part of our ongoing business operations. We do not enter into contracts for trading purposes, nor are we a party to any leveraged derivative instrument, and all derivatives are designated as hedges. We are not a party to master netting arrangements, and we do not offset the fair value of derivative contracts with the same counterparty in our financial statement disclosures. The use of derivative financial instruments is monitored through regular communication with senior management and the use of written guidelines. Foreign currency exchange risk. We are potentially exposed to foreign currency fluctuations affecting net investments in subsidiaries, transactions (both third-party and intercompany) and earnings denominated in foreign currencies. Management assesses foreign currency risk based on transactional cash flows and translational volatility and may enter into forward contract and currency swaps to reduce fluctuations in the long or short currency positions. Forward contracts are generally less than 18 months duration. Currency swap agreements are established in conjunction with the terms of the underlying debt issues. At August 31, 2020, we had foreign currency exchange contracts to purchase or sell $363.4 million of foreign currencies as compared to $489.2 million at November 30, 2019. All of these contracts were designated as hedges of anticipated purchases denominated in a foreign currency or hedges of foreign currency denominated assets or liabilities. All foreign currency exchange contracts outstanding at August 31, 2020 have durations of less than 18 months, including $107.0 million of notional contracts that have durations of less than seven days and are used to hedge short-term cash flow funding . Contracts which are designated as hedges of anticipated purchases denominated in a foreign currency (generally purchases of raw materials in U.S. dollars by operating units outside the U.S.) are considered cash flow hedges. The gains and losses on these contracts are deferred in accumulated other comprehensive income until the hedged item is recognized in cost of goods sold, at which time the net amount deferred in accumulated other comprehensive income is also recognized in cost of goods sold. Gains and losses from contracts that are designated as hedges of assets, liabilities or firm commitments are recognized through income, offsetting the change in fair value of the hedged item. We also enter into fair value foreign currency exchange contracts to manage both exposure to currency fluctuations in certain intercompany loans between subsidiaries as well as currency exposure to third-party non-functional currency assets or liabilities. At August 31, 2020, the notional value of these contracts was $291.0 million. Any gains or losses recorded based on both the change in fair value of these contracts and the change in the currency component of the underlying loans are recognized in our consolidated income statement as other income, net. We also utilize cross currency interest rate swap contracts that are considered net investment hedges. As of August 31, 2020, we had cross currency interest rate swap contracts of (i) $250 million notional value to receive $250 million at three-month U.S. LIBOR plus 0.685% and pay £194.1 million at three-month GBP LIBOR plus 0.740% and (ii) £194.1 million notional value to receive £194.1 million at three-month GBP LIBOR plus 0.740% and pay €221.8 million at three-month Euro EURIBOR plus 0.808%. These cross currency interest rate swap contracts expire in August 2027. Any gains or losses on net investment hedges are included in foreign currency translation adjustments in accumulated other comprehensive loss. Interest rate risk. We finance a portion of our operations with both fixed and variable rate debt instruments, principally commercial paper, notes and bank loans. We utilize interest rate swap agreements to minimize worldwide financing costs and to achieve a desired mix of variable and fixed rate debt. As of August 31, 2020, we have outstanding interest rate swap contracts for a notional amount of $350 million. Those interest rate swap contracts include a $100 million notional value of interest rate swap contracts, where we receive interest at 3.25% and pay a variable rate of interest based on three-month LIBOR plus 1.22%, which expire in November 2025, and are designated as fair value hedges of the changes in fair value of $100 million of the $250 million 3.25% medium-term notes due 2025. We also have $250 million notional interest rate swap contracts where we receive interest at 3.40% and pay a variable rate of interest based on three-month LIBOR plus 0.685%, which expire in August 2027, and are designated as fair value hedges of the changes in fair value of $250 million of the $750 million 3.40% term notes due 2027. Any realized gain or loss on these swap contracts was offset by a corresponding increase or decrease of the value of the hedged debt. All derivatives are recognized at fair value in the balance sheet and recorded in either other current assets, other long-term assets, other accrued liabilities or other long-term liabilities, depending upon their nature and maturity. Hedge ineffectiveness was not material. The following table discloses the notional amount and fair values of derivative instruments on our balance sheet (in millions): As of August 31, 2020 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 45.6 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 156.5 18.1 Other accrued 206.9 21.3 Cross currency contracts Other current assets / Other long-term assets — — Other long-term liabilities 524.5 19.3 Total $ 63.7 $ 40.6 As of August 31, 2019 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 28.2 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 104.7 2.2 Other accrued 350.6 4.6 Cross currency contracts Other current 236.4 14.0 Other long-term liabilities 243.9 13.4 Total $ 44.4 $ 18.0 As of November 30, 2019 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 20.9 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 293.1 3.3 Other accrued 196.1 3.6 Cross currency contracts Other current 495.5 3.2 Other long-term liabilities — — Total $ 27.4 $ 3.6 The following tables disclose the impact of derivative instruments on our other comprehensive income ("OCI"), accumulated other comprehensive income ("AOCI") and our consolidated income statement for the three- and nine-month periods ended August 31, 2020 and 2019 (in millions): Fair Value Hedges Derivative Income statement Income (expense) Three months ended August 31, 2020 Three months ended August 31, 2019 Nine months ended August 31, 2020 Nine months ended August 31, 2019 Interest rate contracts Interest expense $ 1.8 $ — $ 3.2 $ (0.3) Three months ended August 31, Income statement location Gain (loss) recognized in income Income statement location Gain (loss) recognized in income Derivative 2020 2019 Hedged item 2020 2019 Foreign exchange contracts Other income, net $ (7.6) $ (5.3) Intercompany loans Other income, net $ 7.3 $ 5.2 Nine months ended August 31, Income statement location Gain (loss) recognized in income Income statement location Gain (loss) recognized in income Derivative 2020 2019 Hedged item 2020 2019 Foreign exchange contracts Other income, net $ (4.1) $ (2.6) Intercompany loans Other income, net $ 3.1 $ 2.0 The gains (losses) recognized on fair value hedges relating to currency exposure on third-party non-functional currency assets or liabilities were not material during the three- and nine-months ended August 31, 2020 and 2019. Cash Flow Hedges Three months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Interest rate contracts $ — $ — Interest $ 0.2 $ 0.2 Foreign exchange contracts (0.6) (0.3) Cost of goods sold 1.1 0.5 Total $ (0.6) $ (0.3) $ 1.3 $ 0.7 Nine months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Interest rate contracts $ — $ — Interest $ 0.4 $ 0.4 Foreign exchange contracts 2.3 0.3 Cost of goods 1.2 0.9 Total $ 2.3 $ 0.3 $ 1.6 $ 1.3 For all cash flow and settled interest rate fair value hedge derivatives, the net amount of accumulated other comprehensive income (loss) expected to be reclassified in the next 12 months is $1.3 million as an increase to earnings. Net Investment Hedges Three months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Cross currency contracts $ (17.4) $ 3.0 Interest $ 0.3 $ 1.7 Nine months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Cross currency contracts $ (20.7) $ 0.3 Interest $ 2.7 $ 3.8 For all net investment hedges, no amounts have been reclassified out of accumulated other comprehensive income (loss). The amounts noted in the tables above for OCI do not include any adjustments for the impact of deferred income taxes. |
Leases
Leases | 9 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Leases | LEASES Our lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date. As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants. The following table presents the components of our lease expense (in millions): Three months ended August 31, 2020 Nine months ended August 31, 2020 Operating lease cost $ 9.7 $ 30.3 Finance lease cost: Amortization of ROU assets 2.2 6.7 Interest on lease liabilities 1.1 3.4 Net lease cos t (1) $ 13.0 $ 40.4 (1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial. Supplemental balance sheet information related to leases as of August 31, 2020 were as follows (in millions): Leases Classification Assets Operating lease ROU assets Other long-term assets $ 121.3 Finance lease ROU assets Property, plant and equipment, net 124.3 Total leased assets $ 245.6 Liabilities Current Operating Other accrued liabilities $ 33.6 Finance Current portion of long-term debt 7.3 Non-current Operating Other long-term liabilities 91.4 Finance Long-term debt 127.3 Total lease liabilities $ 259.6 Information regarding our lease terms and discount rates as of August 31, 2020 were as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 5.7 2.1 % Finance leases 14.3 3.3 % The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions): Operating leases Finance leases Total 2020 (remainder of year) $ 9.6 $ 2.8 $ 12.4 2021 33.9 11.4 45.3 2022 25.5 11.4 36.9 2023 18.1 11.4 29.5 2024 11.3 11.5 22.8 Thereafter 34.1 125.9 160.0 Total lease payments 132.5 174.4 306.9 Less: Imputed interest 7.5 39.8 47.3 Total lease liabilities $ 125.0 $ 134.6 $ 259.6 Supplemental cash flow and other information related to leases for the nine months ended August 31, 2020 were as follows (in million): Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows used for operating leases $ 30.4 Operating cash flows used for finance leases 3.4 Financing cash flows used for finance leases 5.1 ROU assets obtained in exchange for lease liabilities Operating leases $ 8.7 |
Leases | LEASES Our lease portfolio primarily consists of (i) certain real estate, including those related to a number of administrative, distribution and manufacturing locations; (ii) certain machinery and equipment, including forklifts; and (iii) automobiles, delivery trucks and other vehicles, including an airplane. When our real estate lease arrangements include lease and non-lease components (for example, common area maintenance), we account for each component separately, based on their relative standalone prices. For all other asset categories, we combine lease components and non-lease components into a single lease commitment. We determine if an agreement is a lease or contains a lease at inception. Leases with an initial term of 12 months or less (short-term leases) are not recorded on the balance sheet. ROU assets represent our right to use an underlying asset for the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are based on the estimated present value of lease payments over the lease term and are recognized at the lease commencement date. As most of our leases do not provide an implicit borrowing rate, we use our estimated incremental borrowing rate in determining the present value of lease payments. The estimated incremental borrowing rate is derived from information available at the lease commencement date. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. A limited number of our lease agreements include rental payments that are adjusted periodically based on a market rate or index. Our lease agreements generally do not contain residual value guarantees or material restrictive covenants. The following table presents the components of our lease expense (in millions): Three months ended August 31, 2020 Nine months ended August 31, 2020 Operating lease cost $ 9.7 $ 30.3 Finance lease cost: Amortization of ROU assets 2.2 6.7 Interest on lease liabilities 1.1 3.4 Net lease cos t (1) $ 13.0 $ 40.4 (1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial. Supplemental balance sheet information related to leases as of August 31, 2020 were as follows (in millions): Leases Classification Assets Operating lease ROU assets Other long-term assets $ 121.3 Finance lease ROU assets Property, plant and equipment, net 124.3 Total leased assets $ 245.6 Liabilities Current Operating Other accrued liabilities $ 33.6 Finance Current portion of long-term debt 7.3 Non-current Operating Other long-term liabilities 91.4 Finance Long-term debt 127.3 Total lease liabilities $ 259.6 Information regarding our lease terms and discount rates as of August 31, 2020 were as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 5.7 2.1 % Finance leases 14.3 3.3 % The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions): Operating leases Finance leases Total 2020 (remainder of year) $ 9.6 $ 2.8 $ 12.4 2021 33.9 11.4 45.3 2022 25.5 11.4 36.9 2023 18.1 11.4 29.5 2024 11.3 11.5 22.8 Thereafter 34.1 125.9 160.0 Total lease payments 132.5 174.4 306.9 Less: Imputed interest 7.5 39.8 47.3 Total lease liabilities $ 125.0 $ 134.6 $ 259.6 Supplemental cash flow and other information related to leases for the nine months ended August 31, 2020 were as follows (in million): Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows used for operating leases $ 30.4 Operating cash flows used for finance leases 3.4 Financing cash flows used for finance leases 5.1 ROU assets obtained in exchange for lease liabilities Operating leases $ 8.7 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Fair value can be measured using valuation techniques, such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those three levels: • Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active. • Level 3: Unobservable inputs that reflect the reporting entity’s own assumptions. At August 31, 2020, August 31, 2019 and November 30, 2019, we had no financial assets or liabilities that were subject to a level 3 fair value measurement. Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions): August 31, 2020 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 221.0 $ 221.0 $ — Insurance contracts 120.8 — 120.8 Bonds and other long-term investments 5.6 5.6 — Interest rate derivatives 45.6 — 45.6 Foreign currency derivatives 18.1 — 18.1 Total $ 411.1 $ 226.6 $ 184.5 Liabilities Foreign currency derivatives $ 21.3 $ — $ 21.3 Cross currency contracts 19.3 — 19.3 Total $ 40.6 $ — $ 40.6 August 31, 2019 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 162.9 $ 162.9 $ — Insurance contracts 117.2 — 117.2 Bonds and other long-term investments 4.3 4.3 — Interest rate derivatives 28.2 — 28.2 Foreign currency derivatives 2.2 — 2.2 Cross currency contracts 14.0 — 14.0 Total $ 328.8 $ 167.2 $ 161.6 Liabilities Foreign currency derivatives $ 4.6 $ — $ 4.6 Cross currency contracts 13.4 — 13.4 Total $ 18.0 $ — $ 18.0 November 30, 2019 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 155.4 $ 155.4 $ — Insurance contracts 121.7 — 121.7 Bonds and other long-term investments 2.7 2.7 — Interest rate derivatives 20.9 — 20.9 Foreign currency derivatives 3.3 — 3.3 Cross currency contracts 3.2 — 3.2 Total $ 307.2 $ 158.1 $ 149.1 Liabilities Foreign currency derivatives $ 3.6 $ — $ 3.6 Total $ 3.6 $ — $ 3.6 Because of their short-term nature, the amounts reported in the balance sheet for cash and cash equivalents, receivables, short-term borrowings and trade accounts payable approximate fair value. The fair values of insurance contracts are based upon the underlying values of the securities in which they are invested and are from quoted market prices from various stock and bond exchanges for similar-type assets. The fair values of bonds and other long-term investments are based on quoted market prices from various stock and bond exchanges. The fair values for interest rate derivatives, foreign currency derivatives, and cross currency contracts are based on values for similar instruments using models with market-based inputs. The following table sets forth the carrying amounts and fair values of our long-term debt including the current portion thereof (in millions): August 31, 2020 August 31, 2019 November 30, 2019 Carrying amount $ 4,001.2 $ 3,962.4 $ 3,723.5 Fair value 4,339.3 4,153.7 3,859.0 Level 1 valuation techniques $ 4,162.9 $ 3,475.0 $ 3,437.5 Level 2 valuation techniques 176.4 678.7 421.5 Total fair value $ 4,339.3 $ 4,153.7 $ 3,859.0 |
Employee Benefit and Retirement
Employee Benefit and Retirement Plans | 9 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT AND RETIREMENT PLANS | EMPLOYEE BENEFIT AND RETIREMENT PLANS We sponsor defined benefit pension plans in the U.S. and certain foreign locations. In addition, we sponsor defined contribution plans in the U.S. We also contribute to defined contribution plans in locations outside the U.S., including government-sponsored retirement plans. We also currently provide postretirement medical and life insurance benefits to certain U.S. employees and retirees. As more fully described in the notes to the consolidated financial statements included in our Annual Report on Form 10-K for the year ended November 30, 2019, during fiscal years 2018 and 2017, we made significant changes to our employee benefit and retirement plans that froze the accrual of future benefits under certain defined benefit pension plans in the U.S. and certain foreign locations. The following table presents the components of our pension expense (income) of the defined benefit plans for the three months ended August 31, 2020 and 2019 (in millions): United States International 2020 2019 2020 2019 Defined benefit plans Service cost $ 0.8 $ 0.5 $ 0.2 $ 0.9 Interest costs 7.3 8.6 1.9 2.3 Expected return on plan assets (10.2) (10.6) (3.7) (4.0) Amortization of prior service costs 0.2 0.1 0.1 — Amortization of net actuarial losses 2.0 0.6 0.5 0.3 Settlement loss — — 0.7 — Total pension expense (income) $ 0.1 $ (0.8) $ (0.3) $ (0.5) The following table presents the components of our pension expense (income) of the defined benefit plans for the nine months ended August 31, 2020 and 2019 (in millions): United States International 2020 2019 2020 2019 Defined benefit plans Service cost $ 2.4 $ 1.5 $ 0.7 $ 2.7 Interest costs 22.0 25.8 5.6 7.1 Expected return on plan assets (30.5) (31.8) (11.2) (12.3) Amortization of prior service costs 0.4 0.3 0.1 0.1 Amortization of net actuarial losses 5.9 1.8 1.5 0.9 Settlement loss — — 1.2 — Total pension expense (income) $ 0.2 $ (2.4) $ (2.1) $ (1.5) During the nine months ended August 31, 2020 and 2019, we contributed $9.3 million and $8.9 million, respectively, to our pension plans. Total contributions to our pension plans in fiscal year 2019 were $11.4 million. The following table presents the components of our other postretirement benefits expense (income) (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Other postretirement benefits Service cost $ 0.5 $ 0.5 $ 1.4 $ 1.5 Interest costs 0.5 0.7 1.5 2.0 Amortization of prior service credits (1.2) (2.2) (3.5) (6.5) Amortization of net actuarial gains — (0.1) (0.1) (0.5) Total other postretirement benefits (income) $ (0.2) $ (1.1) $ (0.7) $ (3.5) All of the amounts in the tables above for pension expense and other postretirement benefits expense, other than service cost, were included in the income statement caption "Other income, net" within our consolidated income statements. The aggregate amount of pension and other postretirement benefits (income) expenses, excluding service cost components, were $(1.9) million |
Stock-based Compensation
Stock-based Compensation | 9 Months Ended |
Aug. 31, 2020 | |
Share-based Payment Arrangement [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 August 31, Nine months ended August 31, 2020 2019 2020 2019 Stock-based compensation expense $ 10.7 $ 7.8 $ 37.8 $ 30.6 Our 2020 annual grant of stock options and RSUs occurred in the second quarter, similar to the 2019 annual grant. The weighted-average grant-date fair value of each stock option granted in 2020 was $26.53 and in 2019 was $27.51 as calculated under a lattice pricing model. Substantially all of the stock options and RSUs granted in 2020 vest ratably over a three-year period or, if earlier, upon the retirement eligibility date of the holder. The fair values of stock option grants in the stated periods were computed using the following range of assumptions for our various stock compensation plans: 2020 2019 Risk-free interest rates 0.0 - 0.6% 2.2 - 2.5% Dividend yield 1.8% 1.5% Expected volatility 22.8% 17.4% Expected lives (in years) 7.9 7.5 The following is a summary of our stock option activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in millions) Number Weighted- Number Weighted- Outstanding at beginning of period 2.6 $ 96.18 3.6 $ 82.60 Granted 0.4 138.62 0.3 147.39 Exercised (0.7) 81.88 (1.2) 70.78 Outstanding at end of the period 2.3 $ 106.88 2.7 $ 95.50 Exercisable at end of the period 1.6 $ 95.33 2.0 $ 86.08 As of August 31, 2020, the intrinsic value (the difference between the exercise price and the market price) for all options outstanding was $225.5 million and for options currently exercisable was $180.2 million. The total intrinsic value of all options exercised during the nine months ended August 31, 2020 and 2019 was $65.3 million and $102.8 million, respectively. The following is a summary of our RSU activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in thousands) Number Weighted- Number Weighted- Outstanding at beginning of period 381 $ 115.89 423 $ 103.05 Granted 148 134.06 129 143.15 Vested (137) 109.97 (134) 96.74 Forfeited (7) 124.30 (9) 112.10 Outstanding at end of period 385 $ 124.82 409 $ 117.51 The following is a summary of our LTPP activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in thousands) Number Weighted- Number Weighted- Outstanding at beginning of period 196 $ 115.96 218 $ 83.55 Granted 65 172.28 102 150.51 Vested (44) 89.96 (57) 86.40 Forfeited (3) 127.46 — — Outstanding at end of period 214 $ 138.26 263 $ 117.14 |
Income Taxes
Income Taxes | 9 Months Ended |
Aug. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income taxes for the three months ended August 31, 2020 included $13.2 million of discrete tax benefits consisting principally of the following: (i) $7.3 million of excess tax benefits associated with share-based compensation, (ii) $2.1 million of tax benefits related to the reversal of unrecognized tax benefits and related interest associated with the expiration of statutes of limitations, (iii) $2.0 million for an adjustment to a prior year tax accrual based on the final return filed, and (iv) $1.1 million related to the revaluation of deferred taxes resulting from enacted legislation. Income taxes for the nine months ended August 31, 2020 included $40.1 million of discrete tax benefits consisting principally of the following: (i) $13.0 million of excess tax benefits associated with share-based compensation, (ii) $9.9 million of tax benefits associated with an intra-entity asset transfer that occurred during the first quarter, (iii) $9.3 million of tax benefits associated with the release of a valuation allowance due to a change in judgment about realizability of deferred tax assets, (iv) $5.5 million of tax benefits related to the reversal of unrecognized tax benefits and related interest associated with the expiration of statutes of limitations in various jurisdictions, and (v) $2.0 million for an adjustment to a prior year tax accrual based on the final return filed. Income taxes for the three months ended August 31, 2019 included $15.5 million of discrete tax benefits consisting principally of the following: (i) $8.3 million of excess tax benefits associated with share-based compensation, (ii) $2.4 million related to the reversal of unrecognized tax benefits and related interest associated with the expiration of statutes of limitations, (iii) $2.5 million related to the revaluation of deferred tax liabilities resulting from enacted legislation and (iv) $2.3 million for an adjustment to a prior year tax accrual based on the final return filed, including $1.5 million associated with the U.S. Tax Act, described below. Income taxes for the nine months ended August 31, 2019 included $44.4 million of discrete tax benefits consisting principally of the following: (i) $21.2 million of excess tax benefits associated with share-based compensation, (ii) $16.2 million of tax benefits associated with an intra-entity asset transfer that occurred during the first quarter, (iii) $2.6 million related to the reversal of unrecognized tax benefits and related interest associated with the expiration of statutes of limitation in several jurisdictions, (iv) $2.1 million related to the revaluation of deferred tax liabilities resulting from enacted legislation and (v) $2.3 million for an adjustment to a prior year tax accrual based on the final return filed, including $1.5 million associated with the U.S. Tax Act, described below. In December 2017, President Trump signed into law H.R. 1, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018” (this legislation was formerly called the “Tax Cuts and Jobs Act” and is referred to herein as the “U.S. Tax Act”). The U.S. Tax Act provided for significant changes in the U.S. Internal Revenue Code of 1986, as amended. During the three and nine months ended August 31, 2019, we recorded a net income tax benefit of $1.5 million associated with a provision-to-return adjustment related to the U.S Tax Act. Other than additions for current year tax positions and the reversal of unrecognized tax benefits and related interest noted above, there were no significant changes to unrecognized tax benefits during the nine months ended August 31, 2020. |
Earnings Per Share and Stock Is
Earnings Per Share and Stock Issuances | 9 Months Ended |
Aug. 31, 2020 | |
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 Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Average shares outstanding – basic 133.3 132.8 133.1 132.5 Effect of dilutive securities: Stock options/RSUs/LTPP 1.5 1.4 1.4 1.5 Average shares outstanding – diluted 134.8 134.2 134.5 134.0 The following table sets forth the stock options and RSUs that were not considered in our earnings per share calculation since they were anti-dilutive (in millions): Three months ended Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Anti-dilutive securities — 0.2 0.1 0.1 The following table sets forth the common stock activity (in millions): Three months ended Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Shares issued under stock options, RSUs, LTPP and employee stock purchase plans 0.3 0.5 0.8 1.4 Shares repurchased under the stock repurchase program and shares withheld for taxes under stock options, RSUs, LTPP and employee stock purchase programs 0.1 0.1 0.3 0.6 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Aug. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The following table sets forth the components of accumulated other comprehensive income (loss), net of tax, where applicable (in millions): August 31, 2020 August 31, 2019 November 30, 2019 Foreign currency translation adjustment (1) $ (198.5) $ (308.2) $ (266.5) Unrealized gain (loss) on foreign currency exchange contracts 0.3 (0.8) — Unamortized value of settled interest rate swaps — 0.4 0.3 Pension and other postretirement costs (231.7) (119.7) (234.0) Accumulated other comprehensive loss $ (429.9) $ (428.3) $ (500.2) (1) The foreign currency translation adjustment of accumulated other comprehensive loss decreased on a net basis by $68.0 million during the nine months ended August 31, 2020, including the impact of a $20.7 million increase associated with net investment hedges as more fully described in note 3. The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income (in millions): Three months ended Nine months ended Affected Line Items in the Condensed Consolidated Income Statement Accumulated Other Comprehensive Income (Loss) Components August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 (Gains)/losses on cash flow hedges: Interest rate derivatives $ (0.2) $ (0.2) $ (0.4) $ (0.4) Interest expense Foreign exchange contracts (1.1) (0.5) (1.2) (0.9) Cost of goods sold Total before tax (1.3) (0.7) (1.6) (1.3) Tax effect 0.3 0.1 0.4 0.3 Income taxes Net, after tax $ (1.0) $ (0.6) $ (1.2) $ (1.0) Amortization of pension and postretirement benefit adjustments: Amortization of prior service costs (credit) (1) $ (0.9) $ (2.1) $ (3.0) $ (6.1) Other income, net Amortization of net actuarial losses (1) 3.2 0.8 8.5 2.2 Other income, net Total before tax 2.3 (1.3) 5.5 (3.9) Tax effect (0.6) 0.3 (1.3) 0.9 Income taxes Net, after tax $ 1.7 $ (1.0) $ 4.2 $ (3.0) (1) This accumulated other comprehensive income (loss) component, including settlement losses, is included in the computation of total pension expense and other postretirement benefits expense (refer to note 6 for additional details). |
Business Segments
Business Segments | 9 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
BUSINESS SEGMENTS | BUSINESS SEGMENTS We operate in two business segments: consumer and flavor solutions. The consumer and flavor solutions segments manufacture, market and distribute spices, herbs, seasoning mixes, condiments and other flavorful products throughout the world. Our consumer segment sells to retail channels, including grocery, mass merchandise, warehouse clubs, discount and drug stores, and e-commerce under the “McCormick” brand and a variety of brands around the world, including “French’s”, “Frank’s RedHot”, “OLD BAY”, “Lawry’s”, “Zatarain’s”, “Simply Asia”, “Thai Kitchen”, “Ducros”, “Vahine”, “Schwartz”, “Club House”, “Kamis”, “Kohinoor”, “DaQiao”, “La Drogheria”, “Stubb's”, and “Gourmet Garden”. Our flavor solutions segment sells to food manufacturers and the foodservice industry both directly and indirectly through distributors, with the exception of our businesses in China and India, where foodservice sales are managed by and reported in our consumer segment. In each of our segments, we produce and sell many individual products which are similar in composition and nature. With their primary attribute being flavor, we regard the products within each of our segments to be fairly homogenous. It is impracticable to segregate and identify sales and profits for each of these individual product lines. We measure segment performance based on operating income excluding special charges, as this activity is managed separately from the business segments. 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 Flavor Solutions Total (in millions) Three months ended August 31, 2020 Net sales $ 910.9 $ 519.4 $ 1,430.3 Operating income excluding special charges 209.0 64.1 273.1 Income from unconsolidated operations 8.5 1.1 9.6 Three months ended August 31, 2019 Net sales $ 794.2 $ 535.0 $ 1,329.2 Operating income excluding special charges 176.5 84.7 261.2 Income from unconsolidated operations 7.3 2.3 9.6 Nine months ended August 31, 2020 Net sales $ 2,573.0 $ 1,470.4 $ 4,043.4 Operating income excluding special charges 560.2 168.4 728.6 Income from unconsolidated operations 24.7 5.5 30.2 Nine months ended August 31, 2019 Net sales $ 2,303.2 $ 1,559.4 $ 3,862.6 Operating income excluding special charges 449.6 225.8 675.4 Income from unconsolidated operations 22.7 6.5 29.2 A reconciliation of operating income excluding special charges to operating income is as follows (in millions): Consumer Flavor Solutions Total Three months ended August 31, 2020 Operating income excluding special charges $ 209.0 $ 64.1 $ 273.1 Less: Special charges — 0.1 0.1 Operating income $ 209.0 $ 64.0 $ 273.0 Three months ended August 31, 2019 Operating income excluding special charges $ 176.5 $ 84.7 $ 261.2 Less: Special charges 4.6 3.1 7.7 Operating income $ 171.9 $ 81.6 $ 253.5 Nine months ended August 31, 2020 Operating income excluding special charges $ 560.2 $ 168.4 $ 728.6 Less: Special charges 3.1 0.9 4.0 Operating income $ 557.1 $ 167.5 $ 724.6 Nine months ended August 31, 2019 Operating income excluding special charges $ 449.6 $ 225.8 $ 675.4 Less: Special charges 11.0 5.9 16.9 Operating income $ 438.6 $ 219.9 $ 658.5 The following table sets forth our net sales, by geographic area, for the three and nine months ended August 31, 2020 and 2019 (in millions): Americas EMEA Asia/Pacific Total Three months ended August 31, 2020 $ 1,010.5 $ 262.7 $ 157.1 $ 1,430.3 Three months ended August 31, 2019 931.3 234.5 163.4 1,329.2 Nine months ended August 31, 2020 2,855.5 756.7 431.2 4,043.4 Nine months ended August 31, 2019 2,634.4 726.7 501.5 3,862.6 |
Subsequent Event
Subsequent Event | 9 Months Ended |
Aug. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | SUBSEQUENT EVENTOn September 28, 2020, our Board of Directors approved a 2-for-1 stock split of the Company’s voting and non-voting shares of common stock. On November 30, 2020, one like share will be issued for each share outstanding to shareholders of record as of November 20, 2020. Trading of the Company’s common stock will begin on a split-adjusted basis on December 1, 2020. Common stock and per-share data in this Quarterly Report on Form 10-Q have not been adjusted for the impact of the split. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Aug. 31, 2020 | |
Accounting Policies [Abstract] | |
Accounting and disclosure charges | Accounting Pronouncements Adopted in 2020 As more fully described in note 1 of notes to consolidated financial statements included in our Form 10-K for the year ended November 30, 2019, we were required to adopt the new accounting standard for leases, Accounting Standards Codification Topic 842 Leases (ASC 842), as of December 1, 2019 and we elected to do so using a modified retrospective transition method. That modified retrospective transition method allowed us to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to retained earnings in the opening balance sheet in the period of adoption without restating prior periods. ASC 842 revised prior practice related to accounting for leases under Accounting Standards Codification Topic 840 Leases (ASC 840) for both lessees and lessors and requires lessees to recognize most leases on their balance sheets as lease liabilities with corresponding right-of-use ("ROU") assets. Under ASC 842, the lease liability is equal to the present value of lease payments, and the ROU asset is based on the lease liability, subject to adjustments, such as for deferred rent and initial direct costs. For income statement purposes, ASC 842 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 prior accounting by lessees for operating leases under ASC 840) while finance leases will result in a front-loaded expense pattern (similar to prior accounting by lessees for capital leases under ASC 840). We elected the package of practical expedients permitted under the transition guidance, which, among other things, allows us to carry forward the historical lease classification. In addition, we made accounting policy elections to combine the lease and non-lease components for all asset categories other than real estate. We also made elections to exclude from balance sheet reporting those leases with initial terms of 12 months or less ("short-term leases"). Adoption of the new standard resulted in the recording of operating lease ROU assets and lease liabilities of $136.5 million and $140.0 million, respectively, with the difference due to prepaid and deferred rents that were reclassified to the ROU asset value. No cumulative-effect adjustment to opening retained earnings was required as of December 1, 2019. The standard did not materially affect our consolidated net income or cash flows for the three- and nine-month periods ended August 31, 2020. See note 4 for further details. Recently Issued Accounting Pronouncements — Pending Adoption In January 2017, the Financial Accounting Standards Board ("FASB") issued ASU No. 2017-04 Intangibles — Goodwill and Other Topics (Topic 350) — Simplifying the Test for Goodwill Impairment. This guidance eliminates the requirement to calculate the implied fair value of goodwill of a reporting unit to measure a goodwill impairment charge. Instead, a company will record an impairment charge based on the excess of a reporting unit's carrying amount over its fair value. The new standard will be effective for the first quarter of our fiscal year ending November 30, 2021. Early adoption is permitted for all entities for annual and interim goodwill impairment testing dates after January 1, 2017. We currently do not expect this guidance to have a material impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments |
Special Charges (Tables)
Special Charges (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Segment Reporting Information [Line Items] | |
Special Charges Summary [Table Text Block] | The following is a summary of special charges recognized in the three and nine months ended August 31, 2020 and 2019 (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Employee severance and related benefits $ — $ 1.1 $ 2.2 $ 5.1 Other costs 0.1 6.6 1.8 11.8 Total $ 0.1 $ 7.7 $ 4.0 $ 16.9 |
Special Charges Summary by Segment [Table Text Block] | The following is a breakdown by business segments of special charges for the three and nine months ended August 31, 2020 and 2019 (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Consumer segment $ — $ 4.6 $ 3.1 $ 11.0 Flavor solutions segment 0.1 3.1 0.9 5.9 Total special charges $ 0.1 $ 7.7 $ 4.0 $ 16.9 |
Financial Arrangements and Fina
Financial Arrangements and Financial Instruments (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Fair values of derivative instruments on balance sheet | The following table discloses the notional amount and fair values of derivative instruments on our balance sheet (in millions): As of August 31, 2020 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 45.6 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 156.5 18.1 Other accrued 206.9 21.3 Cross currency contracts Other current assets / Other long-term assets — — Other long-term liabilities 524.5 19.3 Total $ 63.7 $ 40.6 As of August 31, 2019 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 28.2 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 104.7 2.2 Other accrued 350.6 4.6 Cross currency contracts Other current 236.4 14.0 Other long-term liabilities 243.9 13.4 Total $ 44.4 $ 18.0 As of November 30, 2019 Asset Derivatives Liability Derivatives Balance sheet Notional Fair Balance sheet Notional Fair Interest rate contracts Other current $ 350.0 $ 20.9 Other accrued liabilities $ — $ — Foreign exchange contracts Other current 293.1 3.3 Other accrued 196.1 3.6 Cross currency contracts Other current 495.5 3.2 Other long-term liabilities — — Total $ 27.4 $ 3.6 |
Impact of fair value and cash flow hedges on other comprehensive income, accumulated other comprehensive income and income statement | The following tables disclose the impact of derivative instruments on our other comprehensive income ("OCI"), accumulated other comprehensive income ("AOCI") and our consolidated income statement for the three- and nine-month periods ended August 31, 2020 and 2019 (in millions): Fair Value Hedges Derivative Income statement Income (expense) Three months ended August 31, 2020 Three months ended August 31, 2019 Nine months ended August 31, 2020 Nine months ended August 31, 2019 Interest rate contracts Interest expense $ 1.8 $ — $ 3.2 $ (0.3) Three months ended August 31, Income statement location Gain (loss) recognized in income Income statement location Gain (loss) recognized in income Derivative 2020 2019 Hedged item 2020 2019 Foreign exchange contracts Other income, net $ (7.6) $ (5.3) Intercompany loans Other income, net $ 7.3 $ 5.2 Nine months ended August 31, Income statement location Gain (loss) recognized in income Income statement location Gain (loss) recognized in income Derivative 2020 2019 Hedged item 2020 2019 Foreign exchange contracts Other income, net $ (4.1) $ (2.6) Intercompany loans Other income, net $ 3.1 $ 2.0 Cash Flow Hedges Three months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Interest rate contracts $ — $ — Interest $ 0.2 $ 0.2 Foreign exchange contracts (0.6) (0.3) Cost of goods sold 1.1 0.5 Total $ (0.6) $ (0.3) $ 1.3 $ 0.7 Nine months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Interest rate contracts $ — $ — Interest $ 0.4 $ 0.4 Foreign exchange contracts 2.3 0.3 Cost of goods 1.2 0.9 Total $ 2.3 $ 0.3 $ 1.6 $ 1.3 Net Investment Hedges Three months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Cross currency contracts $ (17.4) $ 3.0 Interest $ 0.3 $ 1.7 Nine months ended August 31, Derivative Gain (loss) Income Gain (loss) 2020 2019 2020 2019 Cross currency contracts $ (20.7) $ 0.3 Interest $ 2.7 $ 3.8 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Leases [Abstract] | |
Lease Cost | The following table presents the components of our lease expense (in millions): Three months ended August 31, 2020 Nine months ended August 31, 2020 Operating lease cost $ 9.7 $ 30.3 Finance lease cost: Amortization of ROU assets 2.2 6.7 Interest on lease liabilities 1.1 3.4 Net lease cos t (1) $ 13.0 $ 40.4 (1) Net lease cost does not include short-term leases, variable lease costs or sublease income, all of which are immaterial. Cash paid for amounts included in the measurements of lease liabilities: Operating cash flows used for operating leases $ 30.4 Operating cash flows used for finance leases 3.4 Financing cash flows used for finance leases 5.1 ROU assets obtained in exchange for lease liabilities Operating leases $ 8.7 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases as of August 31, 2020 were as follows (in millions): Leases Classification Assets Operating lease ROU assets Other long-term assets $ 121.3 Finance lease ROU assets Property, plant and equipment, net 124.3 Total leased assets $ 245.6 Liabilities Current Operating Other accrued liabilities $ 33.6 Finance Current portion of long-term debt 7.3 Non-current Operating Other long-term liabilities 91.4 Finance Long-term debt 127.3 Total lease liabilities $ 259.6 Information regarding our lease terms and discount rates as of August 31, 2020 were as follows: Weighted-average remaining lease term (years) Weighted-average discount rate Operating leases 5.7 2.1 % Finance leases 14.3 3.3 % |
Lease Maturity | The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions): Operating leases Finance leases Total 2020 (remainder of year) $ 9.6 $ 2.8 $ 12.4 2021 33.9 11.4 45.3 2022 25.5 11.4 36.9 2023 18.1 11.4 29.5 2024 11.3 11.5 22.8 Thereafter 34.1 125.9 160.0 Total lease payments 132.5 174.4 306.9 Less: Imputed interest 7.5 39.8 47.3 Total lease liabilities $ 125.0 $ 134.6 $ 259.6 |
Lease Maturity | The future maturity of our lease liabilities as of August 31, 2020 were as follows (in millions): Operating leases Finance leases Total 2020 (remainder of year) $ 9.6 $ 2.8 $ 12.4 2021 33.9 11.4 45.3 2022 25.5 11.4 36.9 2023 18.1 11.4 29.5 2024 11.3 11.5 22.8 Thereafter 34.1 125.9 160.0 Total lease payments 132.5 174.4 306.9 Less: Imputed interest 7.5 39.8 47.3 Total lease liabilities $ 125.0 $ 134.6 $ 259.6 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and liabilities measured at fair value on recurring basis | Our population of financial assets and liabilities subject to fair value measurements on a recurring basis are as follows (in millions): August 31, 2020 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 221.0 $ 221.0 $ — Insurance contracts 120.8 — 120.8 Bonds and other long-term investments 5.6 5.6 — Interest rate derivatives 45.6 — 45.6 Foreign currency derivatives 18.1 — 18.1 Total $ 411.1 $ 226.6 $ 184.5 Liabilities Foreign currency derivatives $ 21.3 $ — $ 21.3 Cross currency contracts 19.3 — 19.3 Total $ 40.6 $ — $ 40.6 August 31, 2019 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 162.9 $ 162.9 $ — Insurance contracts 117.2 — 117.2 Bonds and other long-term investments 4.3 4.3 — Interest rate derivatives 28.2 — 28.2 Foreign currency derivatives 2.2 — 2.2 Cross currency contracts 14.0 — 14.0 Total $ 328.8 $ 167.2 $ 161.6 Liabilities Foreign currency derivatives $ 4.6 $ — $ 4.6 Cross currency contracts 13.4 — 13.4 Total $ 18.0 $ — $ 18.0 November 30, 2019 Fair Value Level 1 Level 2 Assets Cash and cash equivalents $ 155.4 $ 155.4 $ — Insurance contracts 121.7 — 121.7 Bonds and other long-term investments 2.7 2.7 — Interest rate derivatives 20.9 — 20.9 Foreign currency derivatives 3.3 — 3.3 Cross currency contracts 3.2 — 3.2 Total $ 307.2 $ 158.1 $ 149.1 Liabilities Foreign currency derivatives $ 3.6 $ — $ 3.6 Total $ 3.6 $ — $ 3.6 |
Fair Value, by Balance Sheet Grouping | The following table sets forth the carrying amounts and fair values of our long-term debt including the current portion thereof (in millions): August 31, 2020 August 31, 2019 November 30, 2019 Carrying amount $ 4,001.2 $ 3,962.4 $ 3,723.5 Fair value 4,339.3 4,153.7 3,859.0 Level 1 valuation techniques $ 4,162.9 $ 3,475.0 $ 3,437.5 Level 2 valuation techniques 176.4 678.7 421.5 Total fair value $ 4,339.3 $ 4,153.7 $ 3,859.0 |
Employee Benefit and Retireme_2
Employee Benefit and Retirement Plans (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of defined benefit plans disclosures | The following table presents the components of our pension expense (income) of the defined benefit plans for the three months ended August 31, 2020 and 2019 (in millions): United States International 2020 2019 2020 2019 Defined benefit plans Service cost $ 0.8 $ 0.5 $ 0.2 $ 0.9 Interest costs 7.3 8.6 1.9 2.3 Expected return on plan assets (10.2) (10.6) (3.7) (4.0) Amortization of prior service costs 0.2 0.1 0.1 — Amortization of net actuarial losses 2.0 0.6 0.5 0.3 Settlement loss — — 0.7 — Total pension expense (income) $ 0.1 $ (0.8) $ (0.3) $ (0.5) The following table presents the components of our pension expense (income) of the defined benefit plans for the nine months ended August 31, 2020 and 2019 (in millions): United States International 2020 2019 2020 2019 Defined benefit plans Service cost $ 2.4 $ 1.5 $ 0.7 $ 2.7 Interest costs 22.0 25.8 5.6 7.1 Expected return on plan assets (30.5) (31.8) (11.2) (12.3) Amortization of prior service costs 0.4 0.3 0.1 0.1 Amortization of net actuarial losses 5.9 1.8 1.5 0.9 Settlement loss — — 1.2 — Total pension expense (income) $ 0.2 $ (2.4) $ (2.1) $ (1.5) |
Schedule of costs of retirement plans | The following table presents the components of our other postretirement benefits expense (income) (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Other postretirement benefits Service cost $ 0.5 $ 0.5 $ 1.4 $ 1.5 Interest costs 0.5 0.7 1.5 2.0 Amortization of prior service credits (1.2) (2.2) (3.5) (6.5) Amortization of net actuarial gains — (0.1) (0.1) (0.5) Total other postretirement benefits (income) $ (0.2) $ (1.1) $ (0.7) $ (3.5) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Based Compensation in Selling, General and Administrative Expense | The following table sets forth the stock-based compensation expense recorded in selling, general and administrative ("SG&A") expense (in millions): Three months ended August 31, Nine months ended August 31, 2020 2019 2020 2019 Stock-based compensation expense $ 10.7 $ 7.8 $ 37.8 $ 30.6 |
Summary of Option Activity | The following is a summary of our stock option activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in millions) Number Weighted- Number Weighted- Outstanding at beginning of period 2.6 $ 96.18 3.6 $ 82.60 Granted 0.4 138.62 0.3 147.39 Exercised (0.7) 81.88 (1.2) 70.78 Outstanding at end of the period 2.3 $ 106.88 2.7 $ 95.50 Exercisable at end of the period 1.6 $ 95.33 2.0 $ 86.08 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 2020 2019 Risk-free interest rates 0.0 - 0.6% 2.2 - 2.5% Dividend yield 1.8% 1.5% Expected volatility 22.8% 17.4% Expected lives (in years) 7.9 7.5 |
Schedule of Share-based Compensation, Restricted Stock Units Award Activity | The following is a summary of our RSU activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in thousands) Number Weighted- Number Weighted- Outstanding at beginning of period 381 $ 115.89 423 $ 103.05 Granted 148 134.06 129 143.15 Vested (137) 109.97 (134) 96.74 Forfeited (7) 124.30 (9) 112.10 Outstanding at end of period 385 $ 124.82 409 $ 117.51 |
Schedule of Share Based Compensation, Performance Shares, Activity | The following is a summary of our LTPP activity for the nine months ended August 31, 2020 and 2019: 2020 2019 (shares in thousands) Number Weighted- Number Weighted- Outstanding at beginning of period 196 $ 115.96 218 $ 83.55 Granted 65 172.28 102 150.51 Vested (44) 89.96 (57) 86.40 Forfeited (3) 127.46 — — Outstanding at end of period 214 $ 138.26 263 $ 117.14 |
Earnings Per Share and Stock _2
Earnings Per Share and Stock Issuances (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
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 Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Average shares outstanding – basic 133.3 132.8 133.1 132.5 Effect of dilutive securities: Stock options/RSUs/LTPP 1.5 1.4 1.4 1.5 Average shares outstanding – diluted 134.8 134.2 134.5 134.0 |
Anti-dilutive securities not considered in earnings per share calculation | The following table sets forth the stock options and RSUs that were not considered in our earnings per share calculation since they were anti-dilutive (in millions): Three months ended Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Anti-dilutive securities — 0.2 0.1 0.1 |
Common stock activity | The following table sets forth the common stock activity (in millions): Three months ended Nine months ended August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 Shares issued under stock options, RSUs, LTPP and employee stock purchase plans 0.3 0.5 0.8 1.4 Shares repurchased under the stock repurchase program and shares withheld for taxes under stock options, RSUs, LTPP and employee stock purchase programs 0.1 0.1 0.3 0.6 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
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): August 31, 2020 August 31, 2019 November 30, 2019 Foreign currency translation adjustment (1) $ (198.5) $ (308.2) $ (266.5) Unrealized gain (loss) on foreign currency exchange contracts 0.3 (0.8) — Unamortized value of settled interest rate swaps — 0.4 0.3 Pension and other postretirement costs (231.7) (119.7) (234.0) Accumulated other comprehensive loss $ (429.9) $ (428.3) $ (500.2) |
Reclassification out of Accumulated Other Comprehensive Income | The following table sets forth the amounts reclassified from accumulated other comprehensive income (loss) and into consolidated net income (in millions): Three months ended Nine months ended Affected Line Items in the Condensed Consolidated Income Statement Accumulated Other Comprehensive Income (Loss) Components August 31, 2020 August 31, 2019 August 31, 2020 August 31, 2019 (Gains)/losses on cash flow hedges: Interest rate derivatives $ (0.2) $ (0.2) $ (0.4) $ (0.4) Interest expense Foreign exchange contracts (1.1) (0.5) (1.2) (0.9) Cost of goods sold Total before tax (1.3) (0.7) (1.6) (1.3) Tax effect 0.3 0.1 0.4 0.3 Income taxes Net, after tax $ (1.0) $ (0.6) $ (1.2) $ (1.0) Amortization of pension and postretirement benefit adjustments: Amortization of prior service costs (credit) (1) $ (0.9) $ (2.1) $ (3.0) $ (6.1) Other income, net Amortization of net actuarial losses (1) 3.2 0.8 8.5 2.2 Other income, net Total before tax 2.3 (1.3) 5.5 (3.9) Tax effect (0.6) 0.3 (1.3) 0.9 Income taxes Net, after tax $ 1.7 $ (1.0) $ 4.2 $ (3.0) (1) This accumulated other comprehensive income (loss) component, including settlement losses, is included in the computation of total pension expense and other postretirement benefits expense (refer to note 6 for additional details). |
Business Segments (Tables)
Business Segments (Tables) | 9 Months Ended |
Aug. 31, 2020 | |
Segment Reporting [Abstract] | |
Business segments | Consumer Flavor Solutions Total (in millions) Three months ended August 31, 2020 Net sales $ 910.9 $ 519.4 $ 1,430.3 Operating income excluding special charges 209.0 64.1 273.1 Income from unconsolidated operations 8.5 1.1 9.6 Three months ended August 31, 2019 Net sales $ 794.2 $ 535.0 $ 1,329.2 Operating income excluding special charges 176.5 84.7 261.2 Income from unconsolidated operations 7.3 2.3 9.6 Nine months ended August 31, 2020 Net sales $ 2,573.0 $ 1,470.4 $ 4,043.4 Operating income excluding special charges 560.2 168.4 728.6 Income from unconsolidated operations 24.7 5.5 30.2 Nine months ended August 31, 2019 Net sales $ 2,303.2 $ 1,559.4 $ 3,862.6 Operating income excluding special charges 449.6 225.8 675.4 Income from unconsolidated operations 22.7 6.5 29.2 |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated | A reconciliation of operating income excluding special charges to operating income is as follows (in millions): Consumer Flavor Solutions Total Three months ended August 31, 2020 Operating income excluding special charges $ 209.0 $ 64.1 $ 273.1 Less: Special charges — 0.1 0.1 Operating income $ 209.0 $ 64.0 $ 273.0 Three months ended August 31, 2019 Operating income excluding special charges $ 176.5 $ 84.7 $ 261.2 Less: Special charges 4.6 3.1 7.7 Operating income $ 171.9 $ 81.6 $ 253.5 Nine months ended August 31, 2020 Operating income excluding special charges $ 560.2 $ 168.4 $ 728.6 Less: Special charges 3.1 0.9 4.0 Operating income $ 557.1 $ 167.5 $ 724.6 Nine months ended August 31, 2019 Operating income excluding special charges $ 449.6 $ 225.8 $ 675.4 Less: Special charges 11.0 5.9 16.9 Operating income $ 438.6 $ 219.9 $ 658.5 |
Schedule of Disclosure on Geographic Areas | The following table sets forth our net sales, by geographic area, for the three and nine months ended August 31, 2020 and 2019 (in millions): Americas EMEA Asia/Pacific Total Three months ended August 31, 2020 $ 1,010.5 $ 262.7 $ 157.1 $ 1,430.3 Three months ended August 31, 2019 931.3 234.5 163.4 1,329.2 Nine months ended August 31, 2020 2,855.5 756.7 431.2 4,043.4 Nine months ended August 31, 2019 2,634.4 726.7 501.5 3,862.6 |
Accounting Policies - Additiona
Accounting Policies - Additional Information (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2019USD ($) | |
Accounting Policies [Abstract] | |
Capitalized Computer Software, Period Increase (Decrease) | $ 59.8 |
Accounting Policies - Adjustmen
Accounting Policies - Adjustments for Adoption in Accounting Policies (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Dec. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Finance lease ROU assets | $ 124.3 | |
Total lease liabilities | $ 134.6 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Finance lease ROU assets | $ 136.5 | |
Total lease liabilities | $ 140 |
Special Charges (Details)
Special Charges (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Special Charges [Line Items] | ||||
Special charges | $ 0.1 | $ 7.7 | $ 4 | $ 16.9 |
Consumer | ||||
Special Charges [Line Items] | ||||
Special charges | 0 | 4.6 | 3.1 | 11 |
Flavor Solutions | ||||
Special Charges [Line Items] | ||||
Special charges | 0.1 | 3.1 | 0.9 | 5.9 |
Employee Severance Charges [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 0 | 1.1 | 2.2 | 5.1 |
Other exit costs [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 0.1 | 6.6 | 1.8 | 11.8 |
GE_Project [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 6 | 1.1 | 12.2 | |
Severance Costs | 0.3 | 0.3 | 2 | |
Other Restructuring Costs | 0.2 | 0.3 | 1.3 | |
Business Exit Costs | 5.5 | 0.5 | 8.9 | |
Special Charges cash paid | 38.3 | |||
GE_Project [Member] | Minimum [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 60 | |||
GE_Project [Member] | Maximum [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 65 | |||
total special charges [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | 0.1 | 7.7 | 4 | 16.9 |
total special charges [Member] | Consumer | ||||
Special Charges [Line Items] | ||||
Special charges | 0 | 4.6 | 3.1 | 11 |
total special charges [Member] | Flavor Solutions | ||||
Special Charges [Line Items] | ||||
Special charges | $ 0.1 | 3.1 | 0.9 | 5.9 |
EMEA [Member] | ||||
Special Charges [Line Items] | ||||
Special charges | $ 2.9 | |||
Severance Costs | $ 1.3 | 1.9 | ||
Americas [Member] | ||||
Special Charges [Line Items] | ||||
Severance Costs | $ 2.3 |
Financial Arrangements and Fi_2
Financial Arrangements and Financial Instruments - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||||
Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2020GBP (£) | Aug. 31, 2020EUR (€) | Nov. 30, 2019USD ($) | |
Debt Instrument [Line Items] | |||||||
Investment Foreign Currency, Contract, Foreign Currency Amount | $ 363,400,000 | $ 363,400,000 | $ 489,200,000 | ||||
Total derivative assets, Fair Value | 63,700,000 | $ 44,400,000 | $ 63,700,000 | $ 44,400,000 | $ 27,400,000 | ||
Maximum time frame for foreign exchange contracts, months | 18 months | ||||||
Amount of accumulated other comprehensive income expected to be reclassified to earnings in next 12 months | 1,300,000 | $ 1,300,000 | |||||
Special charges | 100,000 | 7,700,000 | 4,000,000 | 16,900,000 | |||
Long-term debt borrowings | 506,400,000 | 0 | |||||
Short-term Contract with Customer [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Investment Foreign Currency, Contract, Foreign Currency Amount | 107,000,000 | 107,000,000 | |||||
Fair Value Hedging | Foreign exchange contracts | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | 291,000,000 | 291,000,000 | |||||
Net Investment Hedging | Cross currency contracts | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | 250,000,000 | 250,000,000 | |||||
Total derivative assets, Fair Value | 250,000,000 | 250,000,000 | |||||
Derivative, Collateral, Obligation to Return Cash | £ | £ 194,100,000 | ||||||
Net Investment Hedging | Cross currency contract II | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | £ | 194,100,000 | ||||||
Total derivative assets, Fair Value | £ | £ 194,100,000 | ||||||
Derivative, Collateral, Obligation to Return Cash | € | € 221,800,000 | ||||||
Other Income | Fair Value Hedging | Foreign exchange contracts | |||||||
Debt Instrument [Line Items] | |||||||
Foreign Currency Transaction Gain (Loss), Realized | (7,600,000) | (5,300,000) | (4,100,000) | (2,600,000) | |||
Other Income | Fair Value Hedging | Loans Payable | |||||||
Debt Instrument [Line Items] | |||||||
Foreign Currency Transaction Gain (Loss), Realized | 7,300,000 | 5,200,000 | 3,100,000 | 2,000,000 | |||
Interest Rate Swap | Treasury Lock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | 350,000,000 | 350,000,000 | |||||
Term Loan Due Two Thousand Twenty Two [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Periodic Payment, Principal | 56,300,000 | 56,300,000 | |||||
Debt Instrument, Annual Principal Payment | $ 250 | 106,300,000 | $ 250 | 106,300,000 | |||
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated Note interest rate | 3.25% | 3.25% | 3.25% | 3.25% | |||
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | Interest Rate Swap | Treasury Lock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 100,000,000 | $ 100,000,000 | |||||
Derivative, Fixed Interest Rate | 3.25% | 3.25% | 3.25% | 3.25% | |||
Derivative, Basis Spread on Variable Rate | 1.22% | 1.22% | 1.22% | 1.22% | |||
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | Interest Rate Swap 3.25% | Treasury Lock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 100,000,000 | $ 100,000,000 | |||||
Notes Payable | $ 250,000,000 | $ 250,000,000 | |||||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated Note interest rate | 3.40% | 3.40% | 3.40% | 3.40% | |||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | Interest Rate Swap | Treasury Lock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 250,000,000 | $ 250,000,000 | |||||
Notes Payable | 750,000,000 | 750,000,000 | |||||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | Interest Rate Swap 3.40% | Treasury Lock [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Notional Amount | $ 250,000,000 | $ 250,000,000 | |||||
Derivative, Fixed Interest Rate | 3.40% | 3.40% | 3.40% | 3.40% | |||
Derivative, Basis Spread on Variable Rate | 0.685% | 0.685% | 0.685% | 0.685% | |||
Term Loan Due 2020 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Annual Principal Payment | $ 100,000,000 | $ 100,000,000 | |||||
2.5% Notes due April 2030 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Notes Payable | $ 500,000,000 | $ 500,000,000 | |||||
Long-term debt borrowings | $ 495,000,000 | ||||||
United States LIBOR | Net Investment Hedging | Cross currency contracts | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Variable Interest Rate | 0.685% | 0.685% | 0.685% | 0.685% | |||
Great Britain LIBOR | Net Investment Hedging | Cross currency contracts | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Variable Interest Rate | 0.74% | 0.74% | 0.74% | 0.74% | |||
Great Britain LIBOR | Net Investment Hedging | Cross currency contract II | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Variable Interest Rate | 0.74% | 0.74% | 0.74% | 0.74% | |||
EURIBOR | Net Investment Hedging | Cross currency contract II | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, Variable Interest Rate | 0.808% | 0.808% | 0.808% | 0.808% |
Financial Arrangements and Fi_3
Financial Arrangements and Financial Instruments - Fair Value of Derivative Instruments on Balance Sheet (Detail) - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total derivative assets, Fair Value | $ 63.7 | $ 27.4 | $ 44.4 |
Total derivative liabilities, Fair Value | 40.6 | 3.6 | 18 |
Interest rate contracts | Other current assets / Other long-term assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 28.2 | ||
Derivative Asset, Notional Amount | 350 | 350 | |
Interest rate contracts | Other accrued liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 0 | ||
Notes subject to interest rate hedge | 0 | 0 | 0 |
Interest rate contracts | Other Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 20.9 | ||
Derivative Asset, Notional Amount | 350 | ||
Foreign exchange contracts | Other current assets / Other long-term assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Asset, Notional Amount | 156.5 | 293.1 | 104.7 |
Foreign exchange contracts | Other accrued liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes subject to interest rate hedge | 206.9 | 196.1 | 350.6 |
Cross currency contracts | Other accrued liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes subject to interest rate hedge | 524.5 | 0 | 243.9 |
Cross currency contracts | Other Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative Asset, Notional Amount | $ 0 | 495.5 | 236.4 |
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated Note interest rate | 3.25% | ||
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | Interest Rate Swap | Treasury Lock [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative, Basis Spread on Variable Rate | 1.22% | ||
Derivative, Fixed Interest Rate | 3.25% | ||
Three Point Two Five Zero Notes Due On Two Thousand Twenty Five [Member] | Interest Rate Swap 3.25% | Treasury Lock [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable | $ 250 | ||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Stated Note interest rate | 3.40% | ||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | Interest Rate Swap | Treasury Lock [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Notes Payable | $ 750 | ||
Three Point Four Zero Notes Due Two Thousand Twenty Seven [Member] | Interest Rate Swap 3.40% | Treasury Lock [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Derivative, Basis Spread on Variable Rate | 0.685% | ||
Derivative, Fixed Interest Rate | 3.40% | ||
Fair Value, Measurements, Recurring [Member] | Interest rate contracts | Other accrued liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Interest rate contracts | Other Long-term Investments [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest rate contracts, Fair Value | $ 45.6 | ||
Fair Value, Measurements, Recurring [Member] | Foreign exchange contracts | Other current assets / Other long-term assets | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 18.1 | 3.3 | 2.2 |
Fair Value, Measurements, Recurring [Member] | Foreign exchange contracts | Other accrued liabilities | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 21.3 | 3.6 | 4.6 |
Fair Value, Measurements, Recurring [Member] | Cross currency contracts | Liability [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 0 | 13.4 | |
Cross currency contracts | 19.3 | 13.4 | |
Fair Value, Measurements, Recurring [Member] | Cross currency contracts | Assets [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cross currency contracts | $ 0 | $ 3.2 | $ 14 |
Financial Arrangements and Fi_4
Financial Arrangements and Financial Instruments - Impact of Fair Value Hedges on Other Comprehensive Income, Accumulated Other Comprehensive Income and Income Statement (Details) - Fair Value Hedging - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Interest Expense | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Interest income (expense) | $ 1.8 | $ 0 | $ 3.2 | $ (0.3) |
Other Income | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign Currency Transaction Gain (Loss), Realized | (7.6) | (5.3) | (4.1) | (2.6) |
Other Income | Loans Payable | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Foreign Currency Transaction Gain (Loss), Realized | $ 7.3 | $ 5.2 | $ 3.1 | $ 2 |
Financial Arrangements and Fi_5
Financial Arrangements and Financial Instruments - Impact of Cash Flow Hedges on Other Comprehensive Income, Accumulated Other Comprehensive Income and Income Statement (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | $ (0.6) | $ (0.3) | $ 2.3 | $ 0.3 |
Gain or (Loss) reclassified from AOCI | 1.3 | 0.7 | 1.6 | 1.3 |
Cash Flow Hedging | Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | 0 | 0 | 0 | 0 |
Cash Flow Hedging | Interest rate contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) reclassified from AOCI | 0.2 | 0.2 | 0.4 | 0.4 |
Cash Flow Hedging | Foreign exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | (0.6) | (0.3) | 2.3 | 0.3 |
Cash Flow Hedging | Foreign exchange contracts | Cost of Sales | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) reclassified from AOCI | 1.1 | 0.5 | 1.2 | 0.9 |
Net Investment Hedging | Cross currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) recognized in OCI | (17.4) | 3 | (20.7) | 0.3 |
Net Investment Hedging | Cross currency contracts | Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain or (Loss) reclassified from AOCI | $ 0.3 | $ 1.7 | $ 2.7 | $ 3.8 |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended |
Aug. 31, 2020 | Aug. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 9.7 | $ 30.3 |
Amortization of ROU assets | 2.2 | 6.7 |
Interest on lease liabilities | 1.1 | 3.4 |
Net lease cost | $ 13 | $ 40.4 |
Leases - Supplemental Informati
Leases - Supplemental Information - (Details) $ in Millions | Aug. 31, 2020USD ($) |
Leases [Abstract] | |
Operating lease ROU assets | $ 121.3 |
Finance lease ROU assets | 124.3 |
Total leased assets | 245.6 |
Current operating lease liabilities | 33.6 |
Current finance lease liabilities | 7.3 |
Noncurrent operating lease liabilities | 91.4 |
Noncurrent finance lease liabilities | 127.3 |
Total lease liabilities | $ 259.6 |
Operating leases, weighted-average remaining lease term (years) | 5 years 8 months 12 days |
Operating leases, weighted-average discount rate (percent) | 2.10% |
Finance leases, weighted-average remaining lease term (years) | 14 years 3 months 18 days |
Finance leases, weighted-average discount rate (percent) | 3.30% |
Leases - Maturities (Details)
Leases - Maturities (Details) $ in Millions | Aug. 31, 2020USD ($) |
Leases, Operating [Abstract] | |
2020 (remainder of year) | $ 9.6 |
2021 | 33.9 |
2021 | 25.5 |
2023 | 18.1 |
2024 | 11.3 |
Thereafter | 34.1 |
Total lease payments | 132.5 |
Less: Imputed interest | 7.5 |
Total lease liabilities | 125 |
Lessee, Finance Lease, Description [Abstract] | |
2020 (remainder of year) | 2.8 |
2021 | 11.4 |
2022 | 11.4 |
2023 | 11.4 |
2024 | 11.5 |
Thereafter | 125.9 |
Total lease payments | 174.4 |
Less: Imputed interest | 39.8 |
Total lease liabilities | 134.6 |
2020 (remainder of year) | 12.4 |
2021 | 45.3 |
2022 | 36.9 |
2023 | 29.5 |
2024 | 22.8 |
Thereafter | 160 |
Total lease payments | 306.9 |
Less: Imputed interest | 47.3 |
Total lease liabilities | $ 259.6 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Millions | 9 Months Ended |
Aug. 31, 2020USD ($) | |
Leases [Abstract] | |
Operating cash flows used for operating leases | $ 30.4 |
Operating cash flows used for finance leases | 3.4 |
Financing cash flows used for finance leases | 5.1 |
ROU assets obtained in exchange for lease liabilities | $ 8.7 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Aug. 31, 2020 | Nov. 30, 2019 | Aug. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents at fair value | $ 221 | $ 155.4 | $ 162.9 |
Long-term debt | 4,001.2 | 3,723.5 | 3,962.4 |
Long-term debt, fair value | 4,339.3 | 3,859 | 4,153.7 |
Level 1 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 4,162.9 | 3,437.5 | 3,475 |
Level 2 | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt, fair value | 176.4 | 421.5 | 678.7 |
Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Cash and cash equivalents | 155.4 | 162.9 | |
Insurance contracts | 120.8 | 121.7 | 117.2 |
Bonds and other long-term investments | 5.6 | 2.7 | 4.3 |
Assets, Fair Value Disclosure | 411.1 | 307.2 | 328.8 |
Liabilities [Abstract] | |||
Total | 40.6 | 3.6 | 18 |
Fair Value, Measurements, Recurring [Member] | Level 1 | |||
Assets [Abstract] | |||
Cash and cash equivalents | 221 | 155.4 | 162.9 |
Insurance contracts | 0 | 0 | 0 |
Bonds and other long-term investments | 5.6 | 2.7 | 4.3 |
Interest Rate Derivative Assets, at Fair Value | 0 | ||
Foreign currency derivatives | 0 | 0 | 0 |
Assets, Fair Value Disclosure | 226.6 | 158.1 | 167.2 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 0 | 0 | 0 |
Interest rate derivatives | 0 | ||
Total | 0 | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 | |||
Assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | 0 |
Insurance contracts | 120.8 | 121.7 | 117.2 |
Bonds and other long-term investments | 0 | 0 | 0 |
Interest Rate Derivative Assets, at Fair Value | 45.6 | 20.9 | 28.2 |
Foreign currency derivatives | 18.1 | 3.3 | 2.2 |
Assets, Fair Value Disclosure | 184.5 | 149.1 | 161.6 |
Liabilities [Abstract] | |||
Foreign currency derivatives | 21.3 | 3.6 | 4.6 |
Cross currency contracts | 19.3 | 13.4 | |
Total | 40.6 | 3.6 | 18 |
Assets [Member] | Fair Value, Measurements, Recurring [Member] | Level 2 | |||
Liabilities [Abstract] | |||
Cross currency contracts | 3.2 | 14 | |
Interest rate contracts | Other current assets / Other long-term assets | |||
Assets [Abstract] | |||
Interest rate contracts, Fair Value | 28.2 | ||
Interest rate contracts | Other accrued liabilities | |||
Assets [Abstract] | |||
Interest rate contracts, Fair Value | 0 | ||
Interest rate contracts | Other accrued liabilities | Fair Value, Measurements, Recurring [Member] | |||
Assets [Abstract] | |||
Interest rate contracts, Fair Value | 0 | 0 | |
Foreign exchange contracts | Other current assets / Other long-term assets | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 18.1 | 3.3 | 2.2 |
Foreign exchange contracts | Other accrued liabilities | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | 21.3 | 3.6 | 4.6 |
Cross currency contracts | Assets [Member] | Fair Value, Measurements, Recurring [Member] | |||
Liabilities [Abstract] | |||
Cross currency contracts | 0 | 3.2 | 14 |
Cross currency contracts | Liability [Member] | Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Foreign Currency Fair Value Hedge Derivative at Fair Value, Net | $ 0 | 13.4 | |
Liabilities [Abstract] | |||
Cross currency contracts | $ 19.3 | $ 13.4 |
Employee Benefit And Retireme_3
Employee Benefit And Retirement Plans - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Other income, net | $ 3.9 | $ 6.9 | $ 12.5 | $ 19.3 | |
Payment for Pension Benefits | 9.3 | 8.9 | $ 11.4 | ||
Pension and other postretirement costs | 231.7 | 119.7 | 231.7 | 119.7 | $ 234 |
Accounting Standards Update 2017-07 [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other income, net | $ (1.9) | $ (4.3) | $ (7.1) | $ (13.1) |
Employee Benefit And Retireme_4
Employee Benefit And Retirement Plans - Components of Pension Expense of Defined benefit plans (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Other income, net | $ 3.9 | $ 6.9 | $ 12.5 | $ 19.3 |
Domestic Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.8 | 0.5 | 2.4 | 1.5 |
Interest costs | 7.3 | 8.6 | 22 | 25.8 |
Expected return on plan assets | (10.2) | (10.6) | (30.5) | (31.8) |
Amortization of prior service costs | 0.2 | 0.1 | 0.4 | 0.3 |
Recognized net actuarial loss | 2 | 0.6 | 5.9 | 1.8 |
Total pension expense | 0.1 | (0.8) | 0.2 | (2.4) |
Foreign Plan [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.2 | 0.9 | 0.7 | 2.7 |
Interest costs | 1.9 | 2.3 | 5.6 | 7.1 |
Expected return on plan assets | (3.7) | (4) | (11.2) | (12.3) |
Amortization of prior service costs | 0.1 | 0 | 0.1 | 0.1 |
Recognized net actuarial loss | 0.5 | 0.3 | 1.5 | 0.9 |
Total pension expense | (0.3) | (0.5) | (2.1) | (1.5) |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | 0.7 | 1.2 | ||
Accounting Standards Update 2017-07 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Other income, net | $ (1.9) | $ (4.3) | $ (7.1) | $ (13.1) |
Employee Benefit and Retireme_5
Employee Benefit and Retirement Plans - Components of Other Postretirement Benefit Expenses (Details) - Other Postretirement Benefit Plan - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 0.5 | $ 0.5 | $ 1.4 | $ 1.5 |
Interest costs | 0.5 | 0.7 | 1.5 | 2 |
Amortization of prior service costs | (1.2) | (2.2) | (3.5) | (6.5) |
Defined Benefit Plan, Amortization of Gain (Loss) | 0 | 0.1 | 0.1 | 0.5 |
Total other postretirement expense | $ (0.2) | $ (1.1) | $ (0.7) | $ (3.5) |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) $ / shares in Units, $ in Millions | 9 Months Ended | |
Aug. 31, 2020USD ($)award_type$ / shares | Aug. 31, 2019USD ($)$ / shares | |
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 | $ 225.5 | |
Intrinsic value for exercisable options | 180.2 | |
Total Intrinsic Value of all options exercised | $ 65.3 | $ 102.8 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value | $ / shares | $ 26.53 | $ 27.51 |
Stock-Based Compensation - Sell
Stock-Based Compensation - Selling, General and Administrative Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||||
Total stock-based compensation expense | $ 10.7 | $ 7.8 | $ 37.8 | $ 30.6 |
Stock-Based Compensation - Rang
Stock-Based Compensation - Range of Assumptions for Various Stock Compensation Plans (Details) | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 0.00% | 2.20% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 0.60% | 2.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.80% | 1.50% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 22.80% | 17.40% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 7 years 10 months 24 days | 7 years 6 months |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - Stock Options - $ / shares shares in Millions | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding at beginning of period, Number of Shares | 2.6 | 3.6 |
Exercised, Number of Shares | 0.7 | 1.2 |
Outstanding at end of period, Number of Shares | 2.3 | 2.7 |
Excercisable at end of the period, Number of Shares | 1.6 | 2 |
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 | $ 96.18 | $ 82.60 |
Exercised, Weighted-Average Exercise Price | 81.88 | 70.78 |
Outstanding at end of period, Weighted-Average Exercise Price | 106.88 | 95.50 |
Exercisable at end of the period, Weighted-Average Exercise Price | 95.33 | 86.08 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 138.62 | $ 147.39 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 0.4 | 0.3 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) - $ / shares shares in Thousands | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
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 | 381 | 423 |
Granted, Number of Shares | 148 | 129 |
Vested, Number of Shares | (137) | (134) |
Forfeited, Number of Shares | (7) | (9) |
Outstanding at end of period, Number of Shares | 385 | 409 |
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 | $ 115.89 | $ 103.05 |
Granted, Weighted-Average Grant-Date Fair Value | 134.06 | 143.15 |
Vested, Weighted-Average Grant-Date Fair Value | 109.97 | 96.74 |
Forfeited, Weighted-Average Grant-Date Fair Value | 124.30 | 112.10 |
Outstanding at end of period, Weighted-Average Grant-Date Fair Value | $ 124.82 | $ 117.51 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of LTPP awards (Details) - Performance Shares - $ / shares shares in Thousands | 9 Months Ended | |
Aug. 31, 2020 | Aug. 31, 2019 | |
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 | 196 | 218 |
Granted, Number of Shares | 65 | 102 |
Vested, Number of Shares | (44) | (57) |
Forfeited, Number of Shares | (3) | 0 |
Outstanding at end of period, Number of Shares | 214 | 263 |
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 | $ 115.96 | $ 83.55 |
Granted, Weighted-Average Grant-Date Fair Value | 172.28 | 150.51 |
Vested, Weighted-Average Grant-Date Fair Value | 89.96 | 86.40 |
Forfeited, Weighted-Average Grant-Date Fair Value | 127.46 | 0 |
Outstanding at end of period, Weighted-Average Grant-Date Fair Value | $ 138.26 | $ 117.14 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Income Tax Examination [Line Items] | ||||
Effective income tax rate reconciliation, tax credit, amount | $ 13.2 | $ 15.5 | $ 40.1 | $ 44.4 |
Effective income tax rate reconciliation, change in deferred tax assets valuation allowance, amount | 9.3 | |||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 2.1 | 2.4 | 5.5 | 2.6 |
Effective Income Tax Rate Reconciliation, Disposition of Asset, Amount | 9.9 | 16.2 | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Amount | 2.5 | 1.1 | 2.1 | |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 2 | 2.3 | 2 | 2.3 |
Tax Cuts and Jobs Act, Income Tax Expense (Benefit) | 1.5 | 1.5 | ||
Domestic Tax Authority | ||||
Income Tax Examination [Line Items] | ||||
Shares issued, tax benefit | $ 7.3 | $ 8.3 | $ 13 | $ 21.2 |
Earnings Per Share and Stock _3
Earnings Per Share and Stock Issuances - Additional Information (Details) - November 2019 [Member] $ in Millions | Aug. 31, 2020USD ($) |
Class of Stock [Line Items] | |
Stock repurchase program, remaining authorized repurchase amount | $ 586 |
Stock repurchase program, authorized amount | $ 600 |
Earnings Per Share and Stock _4
Earnings Per Share and Stock Issuances - Reconciliation of Average Shares Outstanding (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Average shares outstanding - basic (shares) | 133.3 | 132.8 | 133.1 | 132.5 |
Effect of dilutive securities: [Abstract] | ||||
Stock options/Restricted Stock Units (RSUs)/MTIP | 1.5 | 1.4 | 1.4 | 1.5 |
Average shares outstanding-diluted | 134.8 | 134.2 | 134.5 | 134 |
Earnings Per Share and Stock _5
Earnings Per Share and Stock Issuances - Antidilutive Securities not Considered in Earnings Per Share Calculation (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||||
Anti-dilutive securities | 0 | 0.2 | 0.1 | 0.1 |
Earnings Per Share and Stock _6
Earnings Per Share and Stock Issuances - Common Stock Activity (Details) - shares shares in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Stock Options And Restricted Stock Units | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Shares issued under stock options, RSUs, LTPP and employee stock purchase plans | 0.3 | 0.5 | 0.8 | 1.4 |
Share Repurchase Program | ||||
Employee Stock Purchase Plan [Line Items] | ||||
Shares repurchased under the stock repurchase program and shares withheld for taxes under stock options, RSUs, LTPP and employee stock purchase programs | 0.1 | 0.1 | 0.3 | 0.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Income, Net of Tax (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | Nov. 30, 2019 | ||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Foreign currency translation adjustment (1) | $ (198,500,000) | $ (308,200,000) | $ (198,500,000) | $ (308,200,000) | $ (266,500,000) | |
Unrealized gain (loss) on foreign currency exchange contracts | 300,000 | (800,000) | 300,000 | (800,000) | 0 | |
Unamortized value of settled interest rate swaps | 0 | 400,000 | 0 | 400,000 | 300,000 | |
Pension and other postretirement costs | (231,700,000) | (119,700,000) | (231,700,000) | (119,700,000) | (234,000,000) | |
Accumulated other comprehensive loss | (429,900,000) | (428,300,000) | (429,900,000) | (428,300,000) | (500,200,000) | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Reclassification adjustment from AOCI on derivatives, before tax | (1,300,000) | (700,000) | (1,600,000) | (1,300,000) | ||
Reclassification adjustment from AOCI on derivatives, tax | 300,000 | 100,000 | 400,000 | 300,000 | ||
Reclassification adjustment from AOCI on derivatives, net of tax | (1,000,000) | (600,000) | (1,200,000) | (1,000,000) | ||
Amortization adjustment from AOCI, pension and other postretirement benefit plans, for net prior service cost (credit), before tax | [1] | (900,000) | (2,100,000) | (3,000,000) | (6,100,000) | |
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, for net gain (loss), before tax | [1] | 3,200,000 | 800,000 | 8,500,000 | 2,200,000 | |
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, before tax | 2,300,000 | (1,300,000) | 5,500,000 | (3,900,000) | ||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, for net (gain) loss, tax | (600,000) | 300,000 | (1,300,000) | 900,000 | ||
Reclassification adjustment from AOCI, pension and other postretirement benefit plans, for net (gain) loss, net of tax | 1,700,000 | (1,000,000) | 4,200,000 | (3,000,000) | ||
Other Comprehensive Income, Other, Net of Tax | 68,000,000 | |||||
Foreign currency translation adjustment (1) | (198,500,000) | (308,200,000) | (198,500,000) | (308,200,000) | $ (266,500,000) | |
Interest rate contracts | Cash Flow Hedging | Interest Expense | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Reclassification adjustment from AOCI on derivatives, before tax | (200,000) | (200,000) | (400,000) | (400,000) | ||
Foreign exchange contracts | Cash Flow Hedging | Cost of Sales | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Reclassification adjustment from AOCI on derivatives, before tax | (1,100,000) | $ (500,000) | (1,200,000) | $ (900,000) | ||
Cross currency contracts | ||||||
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||||||
Foreign currency translation adjustment (1) | 20,700,000 | 20,700,000 | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income on Derivatives [Line Items] | ||||||
Foreign currency translation adjustment (1) | $ 20,700,000 | $ 20,700,000 | ||||
[1] | This accumulated other comprehensive income (loss) component, including settlement losses, is included in the computation of total pension expense and other postretirement benefits expense (refer to note 6 for additional details). |
Business Segments - Additional
Business Segments - Additional Information (Detail) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020USD ($) | Aug. 31, 2019USD ($) | Aug. 31, 2020USD ($)segment | Aug. 31, 2019USD ($) | |
Revenues | $ 1,430.3 | $ 1,329.2 | $ 4,043.4 | $ 3,862.6 |
Number of operating segments | segment | 2 | |||
Europe Middle East And Africa [Member] | ||||
Revenues | 262.7 | 234.5 | $ 756.7 | 726.7 |
Asia Pacific [Member] | ||||
Revenues | 157.1 | 163.4 | 431.2 | 501.5 |
Americas [Member] | ||||
Revenues | $ 1,010.5 | $ 931.3 | $ 2,855.5 | $ 2,634.4 |
Business Segments (Detail)
Business Segments (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Aug. 31, 2020 | Aug. 31, 2019 | Aug. 31, 2020 | Aug. 31, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenues | $ 1,430.3 | $ 1,329.2 | $ 4,043.4 | $ 3,862.6 |
Operating income | 273 | 253.5 | 724.6 | 658.5 |
Less: Special charges | 0.1 | 7.7 | 4 | 16.9 |
Operating income excluding special charges | 273.1 | 261.2 | 728.6 | 675.4 |
Income from unconsolidated operations | 9.6 | 9.6 | 30.2 | 29.2 |
Consumer | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 910.9 | 794.2 | 2,573 | 2,303.2 |
Operating income | 209 | 171.9 | 557.1 | 438.6 |
Less: Special charges | 0 | 4.6 | 3.1 | 11 |
Operating income excluding special charges | 209 | 176.5 | 560.2 | 449.6 |
Income from unconsolidated operations | 8.5 | 7.3 | 24.7 | 22.7 |
Flavor Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 519.4 | 535 | 1,470.4 | 1,559.4 |
Operating income | 64 | 81.6 | 167.5 | 219.9 |
Less: Special charges | 0.1 | 3.1 | 0.9 | 5.9 |
Operating income excluding special charges | 64.1 | 84.7 | 168.4 | 225.8 |
Income from unconsolidated operations | 1.1 | 2.3 | 5.5 | 6.5 |
Americas [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 1,010.5 | 931.3 | 2,855.5 | 2,634.4 |
Europe Middle East And Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 262.7 | 234.5 | 756.7 | 726.7 |
Asia Pacific [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | $ 157.1 | $ 163.4 | $ 431.2 | $ 501.5 |