FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended November 30, 1993
Commission file number 0-748
McCORMICK & COMPANY, INCORPORATED
(Exact name of registrant as specified in its charter)
Maryland 52-0408290
(State or other jurisdiction of (I.R.S. Employer Identification
incorporation or organization) No.)
18 Loveton Circle
Sparks, Maryland 21152
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (410) 771-7301
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Name of each exchange on which
registered
Not Applicable Not Applicable
Securities registered pursuant to Section 12(g) of the Act:
Common Stock, No Par Value Common Stock Non-Voting,
No Par Value
(Title of Class) (Title of Class)
Indicate by check mark whether the registrant (1) has filed
all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or
for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements
for the past 90 days. Yes X No
Indicate by check mark if disclosure of delinquent filers
pursuant to Item 405 of Regulation S-K is not contained herein, and
will not be contained, to the best of registrant's knowledge, in
definitive proxy or information statements incorporated by
reference in Part III of this Form 10-K or any amendment to this
Form 10-K [ X ]
Indicate the number of shares outstanding of each of the
registrant's classes of common stock, as of the latest practicable
date.
Aggregate market value of the voting stock held by
nonaffiliates of the registrant $202,359,567
The aggregate market value indicated above was calculated as
follows: The number of shares of voting stock held by nonaffiliates
of the registrant as of January 31, 1994 was 8,894,926. This number
excludes shares held by the McCormick Profit Sharing Plan and
PAYSOP and its Trustees, the McCormick Pension Plan and its
Trustees, and the directors and officers of the registrant, who may
or may not be affiliates. This number was then multiplied by the
closing price of the stock as of January 31, 1994, $22.75.
CLASS NUMBER OF SHARES DATE
OUTSTANDING
Common Stock 13,530,457 1/31/94
Common Stock Non-Voting 67,602,346 1/31/94
DOCUMENTS INCORPORATED BY REFERENCE
DOCUMENT PART OF FORM 10-K INTO
WHICH INCORPORATED
Registrant's 1993 Annual Report
to Stockholders Part I, Part II, Part IV
Registrant's Proxy Statement
dated 2/16/94 Part III, Part IV
PART I
As used herein, the Registrant means McCormick & Company,
Incorporated and its subsidiaries, unless the context otherwise
requires.
ITEM 1. BUSINESS
The Registrant, a diversified specialty food company, is
principally engaged in the manufacture of spices, seasonings,
flavorings and other specialty food products and sells such
products to the retail food market, the foodservice market and to
industrial food processors throughout the world. The Registrant
also, through subsidiary corporations, manufactures and markets
plastic packaging products for the food, cosmetic and health care
industries.
The Registrant's Annual Report to Stockholders for 1993, which
is enclosed as Exhibit 13, contains a description of the general
development, during the last fiscal year, of the business of the
Registrant, which was formed in 1915 under Maryland law as the
successor to a business established in 1889. Pages 7 through 20 of
that Report are incorporated by reference. The Registrant's net
sales increased 5.8% in 1993 to $1,556,566 due to both sales price
and volume changes.
The Registrant operates in one business segment and has
disclosed in Note 10 of the Notes to Consolidated Financial
Statements on page 33 of its Annual Report to Stockholders for
1993, which Note is incorporated by reference, the financial
information about the business segment required by this Item.
SPECIALTY FOOD BUSINESS
The Registrant's Annual Report to Stockholders for 1993 sets
forth a description of the business conducted by the Registrant on
pages 7 through 9. Those pages of the Registrant's Annual Report
are incorporated by reference.
PRINCIPAL PRODUCTS/MARKETING
Spices, seasonings, flavorings, and other specialty food
products are the Registrant's principal products. Spices,
seasonings, flavorings, and other specialty food products accounted
for approximately 90% of net sales on a consolidated basis during
the three fiscal years ended November 30, 1993. No other product
or class of similar products or services contributed as much as 10%
to consolidated net sales during the last three fiscal years. The
Registrant's efforts will continue to be directed primarily in the
area of spices, seasonings, flavorings, and other specialty food
products. The Registrant markets its consumer and foodservice
products through its own sales organization, food brokers and
distributors. In the industrial market, sales are made mostly
through the Registrant's own sales force.
PRODUCTS/INDUSTRY SEGMENTS
The Registrant has not announced or made public information
about a new product or industry segment that would require the
investment of a material amount of the assets of the Registrant or
that otherwise is material.
RAW MATERIALS
Many of the spices and herbs purchased by the Registrant are
imported into the United States from the country of origin,
although substantial quantities of particular materials, such as
paprika, dehydrated vegetables, onion and garlic, and substantially
all of the specialty food ingredients other than spices and herbs,
originate in the United States. Some of the imported materials are
purchased from dealers in the United States. The Registrant is a
direct importer of certain raw materials, mainly black pepper,
vanilla beans, cinnamon, herbs and seeds from the countries of
origin. The principal purpose of such purchases is to satisfy the
Registrant's own needs. The Registrant also sells imported raw
materials to other food processors.
The raw materials most important to the Registrant are onion,
garlic and capsicums (paprika and chili peppers), which are
produced in the United States, black pepper, most of which
originates in India, Indonesia, Malaysia and Brazil, and vanilla
beans, a large proportion of which the Registrant obtains from the
Malagasy Republic and Indonesia.
TRADEMARKS, LICENSES AND PATENTS
The Registrant owns a number of registered trademarks, which
in the aggregate may be material to the Registrant's business.
However, the loss of any one of those trademarks, with the
exception of the Registrant's McCormick and Schilling trademarks,
would not have a material adverse impact on the Registrant's
business. The McCormick and Schilling trademarks are extensively
used by the Registrant in connection with the sale of a substantial
number of the Registrant's products in the United States. The
McCormick and Schilling trademarks are registered and used in
various foreign countries as well. The terms of the trademark
registrations are as prescribed by law and the registrations will
be renewed for as long as the Registrant deems them to be
useful.
The Registrant has entered into a number of license agreements
authorizing the use of its trademarks by persons in foreign
countries. In the aggregate, the loss of those license agreements
would not have a material adverse impact on the Registrant's
business. The terms of the license agreements are generally 3 to
5 years or until such time as either party terminates the
agreement. Those agreements with specific terms are renewable upon
agreement of the parties.
The Registrant owns various patents, but they are not viewed
as material to the Registrant's business.
SEASONAL NATURE OF BUSINESS
Historically, the Registrant's sales and profits are lower in
the first two quarters of the fiscal year and increase in the third
and fourth quarters.
WORKING CAPITAL
In order to meet increased demand for its products during its
fourth quarter, the Registrant usually builds its inventories
during the second and third quarters. In common with other
companies, the Registrant generally finances working capital items
(inventory and receivables) through short-term borrowings, which
include the use of lines of credit and the issuance of commercial
paper.
CUSTOMERS
The Registrant has a large number of customers for its
products. No single customer accounted for as much as 10% of
consolidated net sales in 1993. In the same year, sales to the
five largest customers represented approximately 20% of
consolidated net sales.
BACKLOG ORDERS
The dollar amount of backlog orders of the Registrant's
specialty food business is not material to an understanding of the
Registrant's business, taken as a whole.
GOVERNMENT CONTRACTS
No material portion of the Registrant's business is subject to
renegotiation of profits or termination of contracts or
subcontracts at the election of the government.
COMPETITION
Although the Registrant is a leader in sales of certain spices
and seasoning and flavoring products, and is the largest producer
and distributor of dehydrated onions and garlic in the United
States, its business is highly competitive. For further
discussion, see pages 12 and 14 of the Registrant's Annual Report
to Stockholders for 1993, which pages are incorporated by
reference.
RESEARCH AND QUALITY CONTROL
The Registrant has emphasized quality and innovation in the
development, production and packaging of its products. Many of the
Registrant's products are prepared from confidential formulae
developed by its research laboratories and product development
departments. The long experience of the Registrant in its field
contributes substantially to the quality of the products offered
for sale. Quality specifications exist for the Registrant's
products, and continuing quality control inspections and testing
are performed. Total expenditures for these and other related
activities during fiscal years 1993, 1992 and 1991 were
approximately $38,226,000, $35,968,000 and $33,052,000,
respectively. Of these amounts, expenditures for research and
development amounted to $12,259,000 in 1993, $11,844,000 in 1992
and $11,438,000 in l991. The amount spent on customer-sponsored
research activities is not material.
ENVIRONMENTAL REGULATIONS
Compliance with Federal, State and local provisions related to
protection of the environment has had no material effect on the
Registrant's business. No material capital expenditures for
environmental control facilities are expected to be made during
this fiscal year or the next.
EMPLOYEES
The Registrant had on average approximately 8,600 employees
during fiscal year 1993.
FOREIGN OPERATIONS
International businesses have made significant contributions
to the Registrant's growth and profits. In common with other
companies with foreign operations, the Registrant is subject in
varying degrees to certain risks typically associated with doing
business abroad, such as local economic and market conditions,
exchange and price controls, restrictions on investment, royalties
and dividends and exchange rate fluctuations.
Note 10 of the Notes to Consolidated Financial Statements on
page 33 of the Registrant's Annual Report to Stockholders for 1993
contains the information required by subsection (d) of Item 101 of
Regulation S-K, which Note is incorporated by reference.
PACKAGING OPERATIONS
The Registrant's Annual Report to Stockholders for 1993 sets
forth a description of the Registrant's packaging group on page 9,
which page is incorporated by reference. Setco, Inc. and Tubed
Products, Inc., which comprise Registrant's packaging group, are
wholly owned subsidiaries of the Registrant and are, respectively,
manufacturers of plastic bottles and plastic squeeze tubes.
Substantially all of the raw materials used in the packaging
business originate in the United States. The market for plastic
packaging is highly competitive. The Registrant is the largest
single customer of the packaging group. All intracompany sales have
been eliminated from the Registrant's consolidated financial
statements.
ITEM 2. PROPERTIES
The location and general character of the Registrant's
principal plants and other materially important physical properties
are as follows:
(a) CONSUMER PRODUCTS
A plant is located in Hunt Valley, Maryland on approximately
52 acres in the Hunt Valley Business Community. This plant
contains approximately 540,000 square feet and is owned in fee. A
plant of approximately 475,000 square feet located in Salinas,
California is owned in fee and a plant of approximately 108,000
square feet located in Commerce, California is leased. These plants
are used for processing, packaging and distributing spices and
other food products.
(b) INDUSTRIAL PRODUCTS
(i) A plant complex is located in Gilroy, California
consisting of connected and adjacent buildings owned in fee and
providing approximately 894,000 square feet of space for milling,
dehydrating, packaging, warehousing and distributing onion, garlic
and capsicums. Adjacent to this plant complex is a 4.3 acre
cogeneration facility which supplies steam to the dehydration
business as well as electricity to Pacific Gas & Electric Company.
The cogeneration facility was financed with an installment note
secured by the property and equipment. This note is non-recourse to
the Registrant.
(ii) The Registrant has two principal plants devoted to
industrial flavoring products in the United States. A plant of
102,000 square feet is located in Hunt Valley, Maryland and is
owned in fee. A plant of 102,400 square feet is located in Dallas,
Texas and is owned in fee.
(c) SPICE MILLING
Located adjacent to the consumer products plant in Hunt Valley
is a spice milling and cleaning plant which is owned in fee by the
Registrant and contains approximately 185,000 square feet. This
plant services all food product groups of the Registrant. Much of
the milling and grinding of raw materials for Registrant's
seasoning products is done in this facility.
(d) PACKAGING PRODUCTS
The Registrant has four principal plants which are devoted to
the production of plastic containers. The facilities are located in
California, Massachusetts, New York and New Jersey, and range in
size from 178,000 to 280,000 square feet. The plants in New York
and New Jersey are leased and part of the Massachusetts facility
was financed through an industrial revenue bond which is still
outstanding.
(e) INTERNATIONAL
The Registrant has a plant in London, Ontario which is devoted
to the processing, packaging an distribution of food products. This
facility is approximately 145,000 square feet and is owned in fee.
(f) RESEARCH AND DEVELOPMENT
The Registrant has a facility in Hunt Valley, Maryland which
houses the corporate research and development laboratories and
the technical capabilities of the industrial division. The facility
is approximately 200,000 square feet and is owned in fee.
ITEM 3. LEGAL PROCEEDINGS
There are no material pending legal proceedings to which the
Registrant or any of its subsidiaries is a party or to which any of
their property is subject.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matter was submitted during the fourth quarter of
Registrant's fiscal year 1993 to a vote of security holders.
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY AND RELATED
STOCKHOLDER MATTERS
The Registrant has disclosed at page 19 of its Annual Report
to Stockholders for 1993, which page is incorporated by reference,
the information relating to the market, market quotations, and
dividends paid on Registrant's common stocks required by this
Item.
The approximate number of holders of common stock of the
Registrant based on record ownership as of January 31, 1994 was as
follows:
Approximate Number
Title of Class of Record Holders
Common Stock, no par value 2,075
Common Stock Non-Voting, 10,892
no par value
ITEM 6. SELECTED FINANCIAL DATA
The Registrant has disclosed the information required by this
Item in the Historical Financial Summary of its Annual Report to
Stockholders for 1993 at page 20, which page is incorporated by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
The Registrant's Annual Report to Stockholders for 1993 at
pages 11 through 19 contains a discussion and analysis of the
Company's financial condition and results of operations for the
three fiscal years ended November 30, 1993. Said pages are
incorporated by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
The financial statements and supplementary data for McCormick
& Company, Incorporated are included on pages 21 through 34 of the
Annual Report to Stockholders for 1993, which pages are
incorporated by reference. The report of independent auditors from
Ernst & Young on such financial statements is included on page 35
of the Annual Report to Stockholders for 1993; supplemental
schedules for 1991, 1992 and 1993 are included on pages 14 through
19 of this Report on Form 10-K.
The unaudited quarterly data required by Item 302 of
Regulation S-K is included in Note 11 of the Notes to Consolidated
Financial Statements at page 34 of the Registrant's Annual Report
to Stockholders for 1993, which Note is incorporated by reference.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON
ACCOUNTING AND FINANCIAL DISCLOSURE
No response is required to this item.
PART III
ITEM 10. DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT
The Registrant has filed with the Commission a definitive copy
of its Proxy Statement dated February 16, 1994, which sets forth
the information required by this Item at pages 3 through 9, which
pages are incorporated by reference. In addition to the executive
officers and directors discussed in the Proxy Statement, J. Allan
Anderson and Donald A. Palumbo are also executive officers of the
Registrant.
Mr. Anderson is 47 years old and has had the following work
experience during the last five years: 1/92 to present - Vice
President and Controller; 3/91 to 1/92 - President and Chairman of
the Board - Golden West Foods, Inc. (a subsidiary of the Company);
4/89 to 3/91 - Vice President - Food Service & Industrial
Groups.
Mr. Palumbo is 51 years old and has been the Company's Vice
President and Treasurer since January 1988.
ITEM 11. EXECUTIVE COMPENSATION
The Registrant has filed with the Commission a definitive copy
of its Proxy Statement dated February 16, 1994, which sets forth
the information required by this Item at pages 9 through 17, which
pages are incorporated by reference.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND
MANAGEMENT
The Registrant has filed with the Commission a definitive copy
of its Proxy Statement dated February 16, 1994 which sets forth the
information required by this Item at pages 4 through 7, which pages
are incorporated by reference.
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS
The Registrant has filed with the Commission a definitive copy
of its Proxy Statement dated February 16, 1994 which sets forth the
information required by this Item at page 7, which page is
incorporated by reference.
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON
FORM 8-K
(a) The following documents are filed as a part of this
Form:
1. The consolidated financial statements for McCormick
& Company, Incorporated and subsidiaries which are
listed in the Table of Contents appearing on page
13 below.
2. The financial statement schedules required by Item
8 of this Form which are listed in the Table of
Contents appearing on page 13 below.
3. The exhibits which are filed as a part of this Form
and required by Item 601 of Regulation S-K are
listed on the accompanying Exhibit Index at pages
20 and 21 of this Report.
(b) The Registrant filed two reports during the last quarter
on Form 8-K dated September 9, 1993 and November 18, 1993
respectively, both of which reported the issuance of a press
release.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the
Securities Exchange Act of 1934, the Registrant has duly caused
this report on Form 10-K to be signed on its behalf by the
undersigned, thereunto duly authorized.
McCORMICK & COMPANY, INCORPORATED
By: /s/ Bailey A. Thomas
Bailey A. Thomas
Chairman of the Board &
Chief Executive Officer February 21, 1994
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons on
behalf of the Registrant and in the capacities and on the dates
indicated.
PRINCIPAL EXECUTIVE OFFICER:
/s/ Bailey A. Thomas Chairman of the Board &
Bailey A. Thomas Chief Executive Officer February 21,1994
PRINCIPAL FINANCIAL OFFICER:
/s/ James A. Hooker Vice President &
James A. Hooker Chief Financial
Officer February 21, 1994
PRINCIPAL ACCOUNTING OFFICER:
/s/ J. Allan Anderson Vice President &
J. Allan Anderson Controller February 21, 1994
Pursuant to the requirements of the Securities Exchange Act of
1934, this report has been signed below by the following persons,
being a majority of the Board of Directors of McCormick & Company,
Incorporated, on the date indicated:
THE BOARD OF DIRECTORS: DATE:
/s/ James J. Albrecht February 21, 1994
James J. Albrecht
/s/ H. Eugene Blattman February 21, 1994
H. Eugene Blattman
/s/ James S. Cook February 21, 1994
James S. Cook
/s/ Harold J. Handley February 21, 1994
Harold J. Handley
/s/ James A. Hooker February 21, 1994
James A. Hooker
/s/ George W. Koch February 21, 1994
George W. Koch
/s/ Charles P. McCormick, Jr. February 21, 1994
Charles P. McCormick, Jr.
/s/ George V. McGowan February 21, 1994
George V. McGowan
/s/ Carroll D. Nordhoff February 21, 1994
Carroll D. Nordhoff
/s/ Richard W. Single, Sr. February 21, 1994
Richard W. Single, Sr.
/s/ William E. Stevens February 21, 1994
William E. Stevens
/s/ Bailey A. Thomas February 21, 1994
Bailey A. Thomas
/s/ Karen D. Weatherholtz February 21, 1994
Karen D. Weatherholtz
CROSS REFERENCE SHEET
PART ITEM REFERENCED MATERIAL/PAGE(S)
PART I Item 1. Business Registrant's 1993 Annual
Report to Stockholders/
Pages 7-20 and 33.
Item 2. Properties None.
Item 3. Legal None.
Proceedings
Item 4. Submission of None.
Matters to a
Vote of Security
Holders.
PART II Item 5. Market for the Registrant's 1993 Annual
Registrant's Report to Stockholders/
Common Equity Page 19.
and Related
Stockholder Matters.
Item 6. Selected Financial Registrant's 1993
Data. Annual Report to
Stockholders/Page 20.
Item 7. Management's Registrant's 1993 Annual
Discussion and Report to Stockholders/
Analysis of Pages 11-19.
Financial Condition
and Results of
Operations.
Item 8. Financial Registrant's 1993 Annual
Statements and Report to Stockholders/
Supplementary Pages 21-35 and Pages
Data. 14-19 of this Report.
Item 9. Changes in and None.
Disagreements with
Accountants on
Accounting and
Financial Disclosure.
PART III Item 10. Directors and Registrant's Proxy
Executive Officers Statement dated February
of the Registrant. 16, 1994/Pages 3-9.
Item 11. Executive Registrant's Proxy
Compensation. Statement dated February
16, 1994/Pages 9-17.
Item 12. Security Ownership Registrant's Proxy
of Certain Statement dated
Beneficial February 16, 1994/Pages
Owners and 4-7.
Management.
Item 13. Certain Registrant's Proxy
Relationships Statement and Related
Transactions. dated February 16, 1994/
Page 7.
PART IV Item 14. Exhibits, See Exhibit Index pages 20
Financial and 21 and the Table of
Statement Contents at page 13 of this
Schedules and Report.
Reports on
Form 8-K.
McCORMICK & COMPANY, INCORPORATED
TABLE OF CONTENTS
AND RELATED INFORMATION
Included in the Company's 1993 Annual Report to Stockholders, the
following consolidated financial statements are incorporated by
reference in Item 8*:
Consolidated Balance Sheets, November 30, 1993 and 1992
Consolidated Statements of Income for the Years Ended
November 30, 1993, 1992 and 1991
Consolidated Statements of Shareholders Equity for the Years
Ended November 30, 1993, 1992 and 1991
Consolidated Statements of Cash Flows for the Years Ended
November 30, 1993, 1992 and 1991
Notes to Consolidated Financial Statements, November 30, 1993
Report of Independent Auditors
Included in Part IV of This Annual Report:
Supplemental Financial Schedules:
II - Amounts Receivable From Related Parties and Underwriters,
Promoters, and Employees Other Than Related Parties
V - Property, Plant and Equipment
VI - Accumulated Depreciation and Amortization of Property,
Plant and Equipment
VIII - Valuation and Qualifying Accounts
IX - Short-Term Borrowings
X - Supplementary Income Statement Information
Schedules other than those listed above are omitted because of the
absence of the conditions under which they are required or because
the information called for is included in the consolidated
financial statements or notes thereto.
*Pursuant to Rule 12b-23 issued by the Commission
under the Securities Exchange Act of 1934, as
amended, a copy of the 1993 Annual Report to
Stockholders of the Registrant for its fiscal year
ended November 30, 1993 accompanies this Annual
Report Form 10-K.
McCORMICK & COMPANY, INCORPORATED SUPPLEMENTAL FINANCIAL SCHEDULE II
AMOUNTS RECEIVABLE FROM RELATED PARTIES AND UNDERWRITERS, CONSOLIDATED
PROMOTERS, AND EMPLOYEES OTHER THAN RELATED PARTIES
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN D COLUMN E COLUMN E
BALANCE
BALANCE DEDUCTIONS DEDUCTIONS AT END OF PERIOD
AT (1) (2) (2)
BEGINNING AMOUNTS AMOUNTS (1) NOT
OF PERIOD ADDITIONS COLLECTED WRITTEN OFF CURRENT CURRENT
NAME OF DEBTOR
Year Ended November 30, 1993:
James E. Angelo
interest @ federal rate (AFR)
receivable, due on Sale of Prop. $220,000 -0- -0- -0- -0- $220,000
Bailey A. Thomas
interest @ Company's short-term
borrowing rate
receivable, due On Demand* -0- $150,000 $150,000 -0- -0- -0-
Year Ended November 30, 1992:
George E. Clausen
interest @ federal rate (AFR)
receivable, due On Demand $320,000 -0- $320,000 -0- -0- -0-
James E. Angelo
interest @ federal rate (AFR)
receivable, due on Sale of Prop. $220,000 -0- -0- -0- -0- $220,000
Robert J. Lawless
non-interest bearing receivable,
due on Sale of Property $180,000 -0- $180,000 -0- -0- -0-
James Merritt
non-interest bearing receivable,
due on Sale of Property -0- $105,000 $105,000 -0- -0- -0-
Year Ended November 30, 1991:
George E. Clausen
interest @ federal rate (AFR)
receivable, due On Demand $320,000 -0- -0- -0- -0- $320,000
James E. Angelo
interest @ federal rate (AFR)
receivable, due on Sale of Prop. $220,000 -0- -0- -0- -0- $220,000
Gilbert A. Wheeler
interest @ prime rate
receivable, due On Demand $110,000 -0- $110,000 -0- -0- -0-
Robert J. Lawless
non-interest bearing receivable,
due on Sale of Property -0- $180,000 -0- -0- $180,000 -0-
*The loan was repaid by Mr. Thomas within 5 days.
McCORMICK & COMPANY, INCORPORATED SUPPLEMENTAL FINANCIAL SCHEDULE V
PROPERTY, PLANT AND EQUIPMENT CONSOLIDATED
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
BALANCE AT OTHER BALANCE
BEGINNING ADDITIONS CHANGES- AT END
CLASSIFICATION OF YEAR AT COST RETIREMENTS ADD (DEDUCT) OF YEAR
YEAR ENDED NOVEMBER 30, 1993:
Land and improvements......... $ 27,199,000 $ 740,000 $ 375,000 $ 1,265,000 (A) $ 28,566,000
(247,000)(C)
(16,000)(D)
Buildings and improvements.... 166,362,000 29,590,000 1,196,000 4,965,000 (A) 199,621,000
192,000 (C)
(292,000)(D)
Machinery and equipment....... 433,040,000 56,463,000 7,817,000 14,677,000 (A) 494,143,000
56,000 (C)
(2,276,000)(D)
Construction in progress...... 43,370,000 (10,730,000) - (148,000)(D) 32,492,000
TOTAL................. $669,971,000 $76,063,000 $ 9,388,000 $18,176,000 $754,822,000
YEAR ENDED NOVEMBER 30, 1992:
Land and improvements......... $ 24,537,000 $ 301,000 $ 44,000 $ 2,500,000 (A) $ 27,199,000
(89,000)(D)
(6,000)(C)
Buildings and improvements.... 151,980,000 10,490,000 855,000 4,746,000 (A) 166,362,000
(122,000)(F)
120,000 (D)
3,000 (C)
Machinery and equipment....... 398,163,000 49,933,000 20,020,000 5,359,000 (A) 433,040,000
450,000 (C)
(553,000)(F)
(292,000)(D)
Construction in progress...... 30,627,000 18,639,000 (B) (5,896,000)(D) 43,370,000
TOTAL................. $605,307,000 $79,363,000 $20,919,000 $ 6,220,000 $669,971,000
YEAR ENDED NOVEMBER 30, 1991:
Land and improvements......... $ 21,489,000 $ 3,401,000 $ 133,000 $ 10,000 (D) $ 24,537,000
(230,000)(F)
Buildings and improvements.... 130,374,000 25,503,000 1,586,000 198,000 (C) 151,980,000
(312,000)(D)
(2,197,000)(F)
Machinery and equipment....... 373,939,000 44,653,000 12,084,000 2,410,000 (A) 398,163,000
198,000 (C)
(2,271,000)(D)
(8,682,000)(F)
Construction in progress...... 30,573,000 (96,000) (B) 150,000 (D) 30,627,000
TOTAL................. $556,375,000 $73,461,000 $13,803,000 $(10,726,000) $605,307,000
<FN>
Notes: (A) Assets of purchased businesses. (B) Net change in account. (C) Other adjustments.
(D) Effect of exchange rate changes on translating property, plant and equipment of foreign subsidiaries in
accordance with FASB Statement 52, "Foreign Currency Translation."
(E) Generally, asset lives for depreciation are 40 years for buildings, 2 to 12 years for machinery and equipment.
(F) Assets of business disposals.
SUPPLEMENTAL FINANCIAL SCHEDULE VI
CONSOLIDATED
McCORMICK & COMPANY, INCORPORATED
ACCUMULATED DEPRECIATION AND AMORTIZATION OF PROPERTY, PLANT AND EQUIPMENT
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
BALANCE AT ADDITIONS OTHER BALANCE
BEGINNING CHARGED TO COSTS CHANGES- AT END
OF YEAR AND EXPENSES RETIREMENTS ADD (DEDUCT) OF YEAR
CLASSIFICATION
YEAR ENDED NOVEMBER 30, 1993:
Land and improvements......... $ 1,639,000 $ 195,000 $ 73,000 $ $ 1,761,000
Buildings and improvements.... 45,373,000 6,452,000 652,000 112,000 (A) 51,279,000
(6,000)(B)
Machinery and equipment...... 204,438,000 40,055,000 7,073,000 (1,252,000)(A) 236,172,000
4,000 (B)
TOTAL................. $251,450,000 $46,702,000 $7,798,000 $(1,142,000) $289,212,000
YEAR ENDED NOVEMBER 30, 1992:
Land and improvements......... $ 1,477,000 $ 197,000 $ 32,000 $ (3,000) (A) $ 1,639,000
Buildings and improvements.... 40,942,000 5,556,000 673,000 (398,000) (A) 45,373,000
(15,000) (B)
(39,000) (C)
Machinery and equipment....... 184,363,000 34,280,000 11,961,000 (2,054,000) (A) 204,438,000
29,000 (B)
(219,000) (C)
TOTAL................. $226,782,000 $40,033,000 $12,666,000 $(2,699,000) $251,450,000
YEAR ENDED NOVEMBER 30, 1991:
Land and improvements......... $ 1,444,000 $ 127,000 $ 15,000 $ 1,000 (A) $ 1,477,000
(80,000)(B)
Buildings and improvements.... 37,099,000 4,939,000 1,269,000 15,000 (A) 40,942,000
287,000 (B)
(129,000)(C)
Machinery and equipment....... 163,849,000 31,980,000 10,378,000 (316,000)(A) 184,363,000
2,253,000 (B)
(3,025,000)(C)
TOTAL................. $202,392,000 $37,046,000 $11,662,000 $ (994,000) $226,782,000
<FN>
Notes: (A) Effect of exchange rate changes on translating property, plant and equipment of foreign subsidiaries in
accordance with FASB Statement 52, "Foreign Currency Translation."
(B) Other adjustments.
(C) Assets of business disposals.
SUPPLEMENTAL FINANCIAL SCHEDULE VIII
CONSOLIDATED
McCORMICK & COMPANY, INCORPORATED
VALUATION AND QUALIFYING ACCOUNTS
COLUMN A COLUMN B COLUMN C COLUMN C COLUMN D COLUMN E
ADDITIONS ADDITIONS
BALANCE CHARGED CHARGED
AT TO COSTS TO BALANCE
BEGINNING AND OTHER AT END
OF YEAR EXPENSES ACCOUNTS DEDUCTIONS (A) OF YEAR
DESCRIPTION
YEAR ENDED NOVEMBER 30, 1993
Deducted from assets to which they apply:
Allowance for doubtful receivables....... $2,651,000 $ 355,000 $ $ 476,000 $2,530,000
YEAR ENDED NOVEMBER 30, 1992
Deducted from assets to which they apply:
Allowance for doubtful receivables....... $3,465,000 $ 364,000 $1,178,000 $2,651,000
YEAR ENDED NOVEMBER 30, 1991
Deducted from assets to which they apply:
Allowance for doubtful receivables....... $2,521,000 $1,682,000 $ 738,000 $3,465,000
<FN>
Notes:
(A) Accounts written off net of recoveries.
SUPPLEMENTAL FINANCIAL SCHEDULE IX
CONSOLIDATED
McCORMICK & COMPANY, INCORPORATED
SHORT-TERM BORROWINGS
COLUMN A COLUMN B COLUMN C COLUMN D COLUMN E COLUMN F
MAXIMUM AVERAGE WEIGHTED
CATEGORY OF AMOUNT AMOUNT AVERAGE
AGGREGATE BALANCE WEIGHTED OUTSTANDING OUTSTANDING INTEREST RATE
SHORT-TERM AT END OF AVERAGE DURING THE DURING THE DURING THE
BORROWINGS YEAR INTEREST RATE YEAR YEAR (A) YEAR (B)
YEAR ENDED NOVEMBER 30, 1993:
Commercial Paper (C)........ $ 70,000,000 3.29% $265,000,000 $177,916,000 3.38%
Bank Loans - Domestic (D)... 4,000,000 3.30 87,999,000 22,725,000 3.23
Bank Loans - Foreign (D)(E). 2,389,000 25.08 23,876,000 13,420,000 12.59
TOTAL..................... $ 76,389,000
YEAR ENDED NOVEMBER 30, 1992:
Commercial Paper (C)........ $ 95,000,000 3.73% $206,500,000 $140,750,000 4.25%
Bank Loans - Domestic (D)... 6,100,000 3.50 55,875,000 27,932,000 4.07
Bank Loans - Foreign (D).... 10,457,000 9.93 17,971,000 11,680,000 9.29
TOTAL..................... $111,557,000
YEAR ENDED NOVEMBER 30, 1991:
Commercial Paper (C)........ $ 20,000,000 5.31% $ 68,410,000 $ 42,686,000 6.41%
Bank Loans - Domestic (D)... 19,300,000 4.92 80,000,000 32,473,000 6.29
Bank Loans - Foreign (D).... 4,364,000 14.00 8,362,000 6,042,000 16.00
TOTAL..................... $ 43,664,000
<FN>
NOTES:
(A) The average amount outstanding during the period was computed by dividing the total of month-end outstanding principal
balances by 12.
(B) Weighted average interest rate was calculated by dividing interest expense by the average amount outstanding during
the period.
(C) Commercial paper maturity dates range generally sixty days or less from the date of issue with no provision for the
extension of maturity.
(D) See Note 3 to Financial Statements for general terms of aggregate short-term borrowings.
(E) Approximately 55% of the end of year balance was from Venezuelan loans bearing interest rates ranging from 7.6%-64.0%.
Approximately 6% of the average amount outstanding was from Venezuelan loans.
SUPPLEMENTAL FINANCIAL SCHEDULE X
CONSOLIDATED
McCORMICK & COMPANY, INCORPORATED
SUPPLEMENTARY INCOME STATEMENT INFORMATION
FOR THE THREE YEARS ENDED NOVEMBER 30, 1993
COLUMN A COLUMN B
ITEM CHARGED TO COSTS AND EXPENSES
1993 1992 1991
Maintenance and repairs.......... $25,232,000 $23,822,000 $21,254,000
<FN>
NOTE:
Amounts for advertising, depreciation and amortization of intangible assets, royalties and taxes other than payroll and
income taxes are not presented as such amounts are less than 1% of total sales.
EXHIBIT INDEX
ITEM 601
EXHIBIT NUMBER REFERENCE OR PAGE
(2) Plan of acquisition, reorganization,
arrangement, liquidation or succession Not applicable.
(3) Articles of Incorporation and By-Laws
Restatement of Charter of McCormick Incorporated by
& Company Incorporated - Restated and reference from
Amended as of September 21, 1987. Registrant's Report on
Form 10-K for the
fiscal year of 1990
as filed with the
Securities and
Exchange Commission on
February 18, 1991.
By-laws of McCormick & Company Incorporated by
Incorporated - Restated and Amended reference from
as of September 21, 1987. Registrant's
Report on Form 10-K
for the fiscal year of
1989 as filed with the
Securities and
Exchange Commission on
February 20, 1990.
(4) Instruments defining the rights of With respect to rights
security holders, including of holders of equity
indentures securities, see
Exhibit 3 (Restatement
of Charter). No
instrument of
Registrant with
respect to long-term
debt involves an
amount of authorized
securities which
exceeds 10 percent
of the total assets of
the Registrant and its
subsidiaries on a
consolidated basis.
Registrant agrees to
furnish a copy of any
such instrument upon
request of the
Commission.
(9) Voting trust agreement Not applicable.
(10) Material contracts Registrant's
supplemental pension
plan for certain
senior officers is
described in the
McCormick Supplemental
Executive Retirement
Plan, a copy of which
was attached as
Exhibit 10.1 to the
Registrant's Report on
Form 10-K for the
fiscal year 1992 as
filed with the
Securities and
Exchange Commission on
February 17, 1993,
which report is
incorporated by
reference. Stock
option plans, in which
directors, officers
and certain other
management employees
participate, are
described in the
Registrant's S-8
Registration
Statements Nos.
2-96166, 33-33725 and
33-39582 filed with
the Securities and
Exchange Commission on
March 1, 1985, March
2, 1990 and March 25,
1991, respectively,
which statements are
incorporated by
reference.
(11) Statement re computation of per- Page 22 of this Report
share earnings on Form 10-K.
(12) Statements re computation of ratios Pages 14-18 of Exhibit
13.
(13) Annual Report to Security Holders
McCormick & Company, Incorporated Bound separately with
Annual Report to Stockholders for separately numbered
1993. pages.
(16) Letter re change in certifying Not applicable.
accountant
(18) Letter re change in accounting Not applicable.
principles
(21) Subsidiaries of the Registrant Page 38 of Exhibit
13.
(22) Published report regarding matters Not applicable.
submitted to vote of securities holders
(23) Consent of independent auditors Page 23 of this Report
on Form 10-K.
(24) Power of attorney Not applicable.
(27) Financial Data Schedule Not applicable.
(28) Information from reports furnished Not applicable.
to state insurance regulatory authorities
(99) Additional exhibits Registrant's
definitive Proxy
Statement dated
February 16, l994.
Information furnished
pursuant to Rule
15d-21 on Form 10-K/A,
to be filed not later
than May 28, l994.