UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K/A ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended NOVEMBER 30, 1999 Commission file number 0-748 ----------------- ----- MCCORMICK & COMPANY, INCORPORATED --------------------------------- Maryland 52-0408290 (State of incorporation) (IRS Employer Identification 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: 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/ The aggregate market value of the voting stock held by non-affiliates of the registrant at January 31, 2000. $166,065,781 ------------ The aggregate market value of the non-voting stock held by non-affiliates of the registrant at January 31, 2000. $1,578,781,634 -------------- Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date. CLASS NUMBER OF SHARES OUTSTANDING DATE - ----- ---------------------------- ---- Common Stock 9,116,850 January 31, 2000 Common Stock Non-Voting 60,079,720 January 31, 2000
DOCUMENTS INCORPORATED BY REFERENCE DOCUMENT PART OF 10-K INTO WHICH INCORPORATED -------- ------------------------------------ Registrant's 1999 Annual Report to Stockholders Part I, Part II, Part IV Registrant's Proxy Statement dated February 15, 2000. Part III
UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 11-K Annual Report Pursuant to Section 15(d) of the Securities Exchange Act of 1934 (Fee Required) Commission File Number 0-748 For the fiscal year ended November 30, 1999
THE McCORMICK PROFIT SHARING PLAN McCORMICK & COMPANY, INCORPORATED 18 Loveton Circle Sparks, Maryland 21152 Items 1 through 3: Not required; see Item 4, below. Item 4. Financial Statements and Exhibits. a) i) Report of Independent Auditors ........................... 1 ii) Statements of Financial Condition ........................ 2 iii) Statements of Changes in Plan Equity ..................... 3 iv) Notes to Financial Statements ............................ 4 b) Exhibits: Independent Auditors' Consent Letter as to Incorporation of their Report on the Plan's Financial Statements. SIGNATURES The Plan pursuant to the requirements of the Securities Exchange Act of 1934, the trustees (or other persons who administer the Plan) have duly caused this annual report to be signed by the undersigned thereunto duly authorized. THE McCORMICK PROFIT SHARING PLAN DATE: 5/23/00 By: /s/ Karen D. Weatherholtz ------------------------------------------- Karen D. Weatherholtz Senior Vice President - Human Relations and Plan Administrator
AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES THE McCORMICK PROFIT SHARING PLAN YEARS ENDED NOVEMBER 30, 1999 AND 1998 WITH REPORT OF INDEPENDENT AUDITORS
THE McCORMICK PROFIT SHARING PLAN AUDITED FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES Years ended November 30, 1999 and 1998 CONTENTS Report of Independent Auditors ...............................................1 Audited Financial Statements Statements of Financial Condition.............................................2 Statements of Changes in Plan Equity .........................................3 Notes to Financial Statements.................................................4 Supplemental Schedules Line 27a--Schedule of Assets Held for Investment Purposes....................22 Line 27d--Schedule of Reportable Transactions................................23
REPORT OF INDEPENDENT AUDITORS To the Investment Committee McCormick & Company, Incorporated We have audited the accompanying statements of financial condition of the McCormick Profit Sharing Plan as of November 30, 1999 and 1998, and the related statements of changes in plan equity for each of the three years in the period ended November 30, 1999. These financial statements are the responsibility of the Plan's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial condition of the McCormick Profit Sharing Plan at November 30, 1999 and 1998, and the changes in plan equity for each of the three years in the period ended November 30, 1999, in conformity with accounting principles generally accepted in the United States. Our audits were made for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedules of assets held for investment purposes as of November 30, 1999, and reportable transactions for the year then ended, are presented for purposes of complying with the Department of Labor's Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974, and are not a required part of the financial statements. The supplemental schedules have been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, are fairly stated in all material respects in relation to the financial statements taken as a whole. April 28, 2000 1
THE McCORMICK PROFIT SHARING PLAN STATEMENTS OF FINANCIAL CONDITION NOVEMBER 30 1999 1998 -------------------------------- ASSETS Investments: Securities--at market value: McCormick & Company, Incorporated - Common stock $ 78,507,473 $ 83,969,458 Unaffiliated issuers: Temporary investments 938,541 654,239 Mutual funds 170,474,671 142,658,319 Participant loans 4,536,238 4,034,839 -------------------------------- Total investments 254,456,923 231,316,855 Receivables: Accrued interest and dividends 103,055 97,631 Employer contributions 3,748,797 2,028,832 Due from funds for securities sold, net 374,401 - -------------------------------- Total receivables 4,226,253 2,126,463 Cash 288 1 -------------------------------- 258,683,464 233,443,319 -------------------------------- LIABILITIES Cash overdrafts 779 173 -------------------------------- Plan equity $ 258,682,685 $ 233,443,146 ================================ SEE ACCOMPANYING NOTES. 2
THE McCORMICK PROFIT SHARING PLAN STATEMENTS OF CHANGES IN PLAN EQUITY YEAR ENDED NOVEMBER 30 1999 1998 1997 -------------------------------------------------------- ADDITIONS Employer contributions $ 5,998,346 $ 4,128,276 $ 4,511,700 Employee contributions 11,841,578 10,495,721 8,981,750 Earnings from investments: Dividends: McCormick & Company, Incorporated 1,675,773 1,589,823 1,646,897 Mutual funds 10,493,875 8,012,978 4,387,254 Interest income 440,129 509,848 308,864 Transfers (out) in, net (63,109) 143,917 458,999 -------------------------------------------------------- 30,386,592 24,880,563 20,295,464 -------------------------------------------------------- DEDUCTIONS Participant withdrawals 14,370,337 14,258,480 12,867,963 Administrative expenses 265,790 294,609 295,958 -------------------------------------------------------- 14,636,127 14,553,089 13,163,921 -------------------------------------------------------- Net realized gain on investments 13,340,091 8,047,602 12,096,189 Net unrealized (depreciation) appreciation of investments (3,851,017) 22,625,690 8,175,110 -------------------------------------------------------- Net increase 25,239,539 41,000,766 27,402,842 Plan equity at beginning of year 233,443,146 192,442,380 165,039,538 -------------------------------------------------------- Plan equity at end of year $258,682,685 $233,443,146 $192,442,380 ======================================================== SEE ACCOMPANYING NOTES. 3
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS 1. SIGNIFICANT ACCOUNTING POLICIES The financial statements of The McCormick Profit Sharing Plan (the Plan) are prepared on the accrual basis of accounting. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires Plan management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts could differ from these estimates. VALUATION OF SECURITIES Investments are stated at aggregate current value. Securities traded on a national securities exchange or included on the NASDAQ National Market List are valued at the last reported sales price on the last business day of the plan year. Investments for which no sale was reported on that date are valued at the last reported bid price. The change in the difference between current value and the cost of investments is reflected in the statement of changes in plan equity as net unrealized appreciation or depreciation of investments. The net realized gain or loss on disposal of investments is the difference between the proceeds received and the average cost of investments sold. Expenses relating to the purchase or sale of investments are added to the cost or deducted from the proceeds. ADMINISTRATIVE EXPENSES McCormick & Company, Incorporated (the "Company") has deducted $239,517, $267,265 and $243,412 in 1999, 1998 and 1997, respectively, from the cash deposit of its contributions to the Plan to offset a portion of the administrative costs incurred on behalf of the Plan. These expenses are included in administrative expenses in the Statement of Changes in Plan Equity. Direct expenses are paid by the Plan. 4
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 1. SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) NEW ACCOUNTING PRONOUNCEMENTS The AICPA has recently issued Statement of Position 99-3 "Accounting for and Reporting of Certain Defined Contribution Benefit Plan Investments and Other Disclosure Matters." The Plan will be required to adopt the provisions of this statement during the year ended November 30, 2000. While the new standard will substantially alter certain disclosures and supplemental schedules, it is not expected to have a material impact on plan equity. 2. DESCRIPTION OF THE PLAN The following description of the Plan provides only general information. Further information about the Plan agreement, eligible employees, the vesting provisions and investment alternatives are contained in the Summary Plan Description and in Registration Statement No. 33-33724 on Form S-8 filed with the Securities and Exchange Commission on March 2, 1990. Copies of these documents are available from McCormick Corporate Human Relations. The Plan is a defined contribution plan sponsored by McCormick & Company, Incorporated which incorporates a 401(k) savings and investment option. Participating employees can make elective pretax contributions to the Plan through regular payroll deductions. If an employee authorizes elective contributions, the contributions may not be less than 1% of his or her taxable cash compensation and may be up to a maximum of 15%. The Company and participating subsidiaries will make a matching contribution at a rate of $.20 for each $1.00 of the participant's elective contributions to the Plan regardless of the participant's investment election. The matching contribution is not made on elective contributions in excess of 10% of compensation. The Company and participating subsidiaries may also make additional contributions to the Plan for amounts authorized by the Board of Directors. Company contributions are allocated to each participant's account based upon the participant's compensation and length of service. Participants are immediately vested in their contributions and related earnings. Participants are also immediately vested in the Company contribution portion and related earnings of their accounts once these amounts have been deposited into their accounts. Company contributions other than matching contributions can not be withdrawn under the early withdrawl provisions until three years after they are deposited into a participant's account. 5
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 2. DESCRIPTION OF THE PLAN (CONTINUED) As of November 30, 1999, the following investment funds were available: McCORMICK STOCK FUND - This fund invests in the common stock of McCormick & Company, Inc., the Plan sponsor. BALANCED FUND - The balanced fund seeks conservation of capital, current income and long-term growth of capital and income by investing in stocks, bonds, and other fixed-income securities. This fund invests in the American Balanced Fund. SMALL CAP VALUE FUND - This fund seeks long-term growth of capital through investments in small companies which have low debt, strong growth prospects and are potentially undervalued. This fund invests in the T. Rowe Price Small Cap Value Fund. INTERNATIONAL GROWTH FUND - This international fund seeks long-term growth of capital by investing in companies based outside the United States. This fund invests in the American Europacific Growth Fund. THE BOND FUND - The bond fund seeks to provide as high a level of current income as is consistent with preservation of capital. This fund invests in the Bond Fund of America. GROWTH & INCOME PORTFOLIO FUND - This growth and income fund seeks high total return through a combination of current income and capital appreciation. The fund invests mainly in securities of companies that pay current dividends and offer potential growth of earnings. However, the fund may buy securities that are not currently paying dividends but offer prospects for either capital appreciation or future income. Securities may be of foreign and domestic issuers. The fund diversifies investments among a variety of industries. This fund invests in the Fidelity Growth & Income Portfolio Fund. MONEY MARKET FUND - As a money market fund, this fund is managed to maintain a stable $1 share price (although it is not guaranteed). The value of the fund's shares is neither insured nor guaranteed by the U.S. Government. This fund invests in the T. Rowe Price Prime Reserve Fund. 6
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 2. DESCRIPTION OF THE PLAN (CONTINUED) LONG-TERM CAPITAL APPRECIATION FUND - This long-term capital appreciation fund seeks capital appreciation by making a profit on invested capital over the long term. The fund invests in common stocks, and securities convertible to common stock, issued by companies operating in the U.S. and/or abroad. Investments are made in large corporations as well as smaller, lesser known companies. The fund also diversifies investments among a variety of industries and sectors within the market. This fund invests in the Fidelity Magellan Fund. Participants' elective contributions and the Company's contributions are invested in the Plan's investment funds as directed by the participant. In general, participant withdrawals are subject to a 10% excise tax for early withdrawals prior to the participant reaching retirement. Participants are permitted to take loans against their contributions to the Plan. The maximum of any loan cannot exceed one-half of the participant's contributed account balance or $50,000 less the highest outstanding unpaid loan balance during the prior twelve months, whichever is less. The Company's Investment Committee determines the interest rate for loans based on current market rates. Loan repayments, interest, plus maintenance fees are made by participants through payroll deductions over loan terms of up to five years. Longer loan terms are available for loans taken to purchase, construct, re-construct or substantially rehabilitate a primary home for the participant or the participant's immediate family. The Company intends to continue the Plan indefinitely. The Company reserves the right to terminate the Plan, or to reduce or cease contributions at any time, if its Board of Directors determines that business, financial or other good causes make it necessary to do so, or to amend the Plan at any time and in any respect provided, however, that any such action will not deprive any participant or beneficiary under the Plan of any vested right. 7
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 3. INCOME TAX STATUS The Plan has received a determination letter from the Internal Revenue Service dated March 12, 1996 stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code and, therefore, the related trust is exempt from taxation. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax exempt. Under the Plan, participants are not subject to federal income tax on contributions or the income of the Plan until amounts are disbursed to them. 4. INVESTMENTS During 1999, 1998 and 1997, the Plan's investments (including investments bought, sold, or held throughout the year) appreciated in fair value by $9,489,074, $30,673,292 and $20,271,299, respectively, as follows: NET APPRECIATION/ FAIR VALUE (DEPRECIATION) AT END DURING YEAR OF YEAR ------------------------------------ Year ended November 30, 1999 Fair value as determined by quoted market prices: McCormick & Company, Incorporated-- Common stock $ (3,680,122) $ 78,507,473 Unaffiliated issuers: Temporary investments - 938,541 Mutual funds 13,169,196 170,474,671 Participant loans - 4,536,238 ------------------------------------ Total $ 9,489,074 $ 254,456,923 ==================================== 8
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 4. INVESTMENTS (CONTINUED) NET FAIR VALUE APPRECIATION AT END DURING YEAR OF YEAR ---------------------------------- Year ended November 30, 1998 Fair value as determined by quoted market prices: McCormick & Company, Incorporated-- Common stock $ 18,170,293 $ 83,969,458 Unaffiliated issuers: Temporary investments - 654,239 Mutual funds 12,502,999 142,658,319 Participant loans - 4,034,839 ---------------------------------- Total $ 30,673,292 $231,316,855 ================================== NET FAIR VALUE APPRECIATION AT END DURING YEAR OF YEAR ----------------------------------- Year ended November 30, 1997 Fair value as determined by quoted market prices: McCormick & Company, Incorporated-- Common stock $ 4,997,458 $ 68,129,676 Unaffiliated issuers: Temporary investments - 797,012 Mutual funds 15,273,841 117,594,801 Participant loans - 3,248,582 ----------------------------------- Total $ 20,271,299 $189,770,071 =================================== 9
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 4. INVESTMENTS (CONTINUED) The fair value of individual investments that represent 5% or more of the Plan's net assets are as follows: NOVEMBER 30 1999 1998 ---------------------------- McCormick & Company, Incorporated -- Common stock $78,507,473 $83,969,458 Fidelity Investments Mutual Funds: Long-Term Capital Appreciation Fund (Magellan Fund) 69,601,294 49,530,418 Growth & Income Portfolio Fund 61,236,920 59,694,313 5. TRANSACTIONS WITH PARTIES-IN-INTEREST Fees paid during the year for legal, accounting and other services rendered by parties-in-interest were based on customary and reasonable rates for such services. 6. RECONCILIATION OF FORM 5500 TO AUDITED FINANCIAL STATEMENTS The following represents a summary of the differences between the Form 5500 for the year ended November 30, 1999, and the accompanying financial statements: AMOUNT PER FORM 5500 ACCOMPANYING LINE AMOUNT PER FINANCIAL NUMBER DESCRIPTION FORM 5500 STATEMENTS DIFFERENCE - ----------------------------------------------------------------------------------------------------- 32b(1)(A) Interest--Interest bearing cash $ 53,010 $ 440,129 $ (387,119) 32b(1)(F) Interest--Other loans 382,081 - 382,081 N/A Dividends--Mutual funds - 10,493,875 (10,493,875) 32b(4)(C) Net gain on sale of assets (364,158) 13,340,091 (13,704,249) 32b(5) Unrealized appreciation (3,315,964) (3,851,017) 535,053 32b(10) Registered investment companies 23,668,109 - 23,668,109 ------------------------------------------------- $20,423,078 $20,423,078 $ - ================================================= 10
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 6. RECONCILIATION OF FORM 5500 TO AUDITED FINANCIAL STATEMENTS (CONTINUED) The differences result from the classification of investments and the cost basis used for determining realized and unrealized gains for financial statement purposes differing from those required in the Form 5500. 11
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 7. ALLOCATION OF PLAN EQUITY TO INVESTMENT PROGRAMS NOVEMBER 30, 1999 SMALL CAP INTERNATIONAL McCORMICK BALANCED VALUE GROWTH TOTAL STOCK FUND FUND FUND FUND ---------------------------------------------------------------------------- ASSETS Investments: Securities--at market value: McCormick & Company, Incorporated Common stock $ 78,507,473 $ 78,507,473 $ - $ - $ - Unaffiliated issuers: Temporary investments 938,541 938,541 - - - Mutual funds 170,474,671 - 3,805,706 5,848,065 9,641,849 Participant loans 4,536,238 - - - - Employer contributions receivable 3,748,797 - - - - Accrued interest and dividends Receivable 103,055 4,457 - - - Due from (to) funds for securities sold, net 374,401 (159,994) 8,551 42,003 (32,258) Cash 288 - 35 2 - ---------------------------------------------------------------------------- 258,683,464 79,290,477 3,814,292 5,890,070 9,609,591 ---------------------------------------------------------------------------- LIABILITIES Cash overdrafts 779 - - - - ---------------------------------------------------------------------------- Plan equity $ 258,682,685 $ 79,290,477 $ 3,814,292 $ 5,890,070 $ 9,609,591 ============================================================================ 12
GROWTH & LONG-TERM INCOME MONEY CAPITAL PORTFOLIO MARKET APPRECIATION BOND FUND FUND FUND FUND LOANS UNALLOCATED ------------------------------------------------------------------------------------------- ASSETS Investments: Securities--at market value: McCormick & Company, Incorporated Common stock $ - $ - $ - $ - $ - $ - Unaffiliated issuers: Temporary investments - - - - - - Mutual funds 7,670,699 61,236,920 12,670,138 69,601,294 - - Participant loans - - - - 4,536,238 - Employer contributions receivable - - - - - 3,748,797 Accrued interest and dividends Receivable 45,607 - 52,991 - - - Due from (to) funds for securities sold, net (22,425) (19,026) (72,761) 630,311 - - Cash 24 227 - - - - ------------------------------------------------------------------------------------------- 7,693,905 61,218,121 12,650,368 70,231,605 4,536,238 3,748,797 ------------------------------------------------------------------------------------------- LIABILITIES Cash overdrafts - - 348 431 - - ------------------------------------------------------------------------------------------- Plan equity $ 7,693,905 $ 61,218,121 $ 12,650,020 $ 70,231,174 $ 4,536,238 $ 3,748,797 =========================================================================================== 13
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 7. ALLOCATION OF PLAN EQUITY TO INVESTMENT PROGRAMS (CONTINUED) NOVEMBER 30, 1998 SMALL CAP INTERNATIONAL McCORMICK BALANCED VALUE GROWTH TOTAL STOCK FUND FUND FUND FUND ------------------------------------------------------------------------ ASSETS Investments: Securities--at market value: McCormick & Company, Incorporated Common stock $ 83,969,458 $ 83,969,458 $ - $ - $ - Unaffiliated issuers: Temporary investments 654,239 654,239 - - - Mutual funds 142,658,319 - 3,630,206 7,911,035 3,902,475 Participant loans 4,034,839 - - - - Employer contributions receivable 2,028,832 - - - - Accrued interest and dividends receivable 97,631 4,071 - - - Cash 1 - - - 1 ------------------------------------------------------------------------ 233,443,319 84,627,768 3,630,206 7,911,035 3,902,476 ------------------------------------------------------------------------ LIABILITIES Cash overdrafts 173 - - - - ------------------------------------------------------------------------ Plan equity $233,443,146 $ 84,627,768 $ 3,630,206 $ 7,911,035 $ 3,902,476 ======================================================================== 14
GROWTH & LONG-TERM INCOME MONEY CAPITAL PORTFOLIO MARKET APPRECIATION BOND FUND FUND FUND FUND LOANS UNALLOCATED --------------------------------------------------------------------------------------- ASSETS Investments: Securities--at market value: McCormick & Company, Incorporated Common stock $ - $ - $ - $ - $ - $ - Unaffiliated issuers: Temporary investments - - - - - - Mutual funds 8,153,195 59,694,313 9,836,677 49,530,418 - - Participant loans - - - - 4,034,839 - Employer contributions receivable - - - - - 2,028,832 Accrued interest and dividends receivable 88,288 - 5,272 - - - Cash - - - - - - --------------------------------------------------------------------------------------- 8,241,483 59,694,313 9,841,949 49,530,418 4,034,839 2,028,832 --------------------------------------------------------------------------------------- LIABILITIES Cash overdrafts 39 - 103 - 31 - --------------------------------------------------------------------------------------- Plan equity $ 8,241,444 $ 59,694,313 $ 9,841,846 $ 49,530,418 $ 4,034,808 $ 2,028,832 ======================================================================================= 15
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 8. ALLOCATION OF CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS YEAR ENDED NOVEMBER 30, 1999 SMALL CAP INTERNATIONAL McCORMICK BALANCED VALUE GROWTH TOTAL STOCK FUND FUND FUND FUND --------------------------------------------------------------------------------- ADDITIONS Employer contributions $ 5,998,346 $ 520,642 $ 46,365 $ 117,263 $ 59,818 Employee contributions 11,841,578 2,912,290 327,453 710,615 369,646 Earnings from investments: Dividends: McCormick & Company, Incorporated 1,675,773 1,675,773 - - - Mutual funds 10,493,875 - 373,131 578,238 171,086 Interest income 440,129 53,010 - - - Transfers out, net (63,109) - - - - --------------------------------------------------------------------------------- 30,386,592 5,161,715 746,949 1,406,116 600,550 --------------------------------------------------------------------------------- Interfund transfers - (2,238,792) (15,838) (2,548,849) 3,345,492 DEDUCTIONS Participant withdrawals 14,370,337 4,574,902 266,840 227,207 228,381 Administrative expenses 265,790 5,190 1,305 106 5 --------------------------------------------------------------------------------- 14,636,127 4,580,092 268,145 227,313 228,386 --------------------------------------------------------------------------------- Net realized gain (loss) on Investments 13,340,091 5,124,709 8,712 (651,627) 216,337 Net unrealized (depreciation) appreciation of investments (3,851,017) (8,804,831) (287,592) 708 1,773,122 --------------------------------------------------------------------------------- Net increase (decrease) 25,239,539 (5,337,291) 184,086 (2,020,965) 5,707,115 Plan equity at beginning of year 233,443,146 84,627,768 3,630,206 7,911,035 3,902,476 --------------------------------------------------------------------------------- Plan equity at end of year $ 258,682,685 $ 79,290,477 $ 3,814,292 $ 5,890,070 $ 9,609,591 ================================================================================= 16
GROWTH & LONG-TERM INCOME MONEY CAPITAL PORTFOLIO MARKET APPRECIATION BOND FUND FUND FUND FUND LOANS UNALLOCATED ----------------------------------------------------------------------------------------------- ADDITIONS Employer contributions $ 88,918 $ 541,875 $ 110,396 $ 524,755 $ - $ 3,988,314 Employee contributions 520,590 3,230,381 681,496 3,089,107 - - Earnings from investments: Dividends: McCormick & Company, Incorporated - - - - - - Mutual funds 638,888 4,417,423 516,699 3,798,410 - - Interest income (42,681) - 47,719 - 382,081 - Transfers out, net - - - - - (63,109) ----------------------------------------------------------------------------------------------- 1,205,715 8,189,679 1,356,310 7,412,272 382,081 3,925,205 ----------------------------------------------------------------------------------------------- Interfund transfers (689,146) (5,580,574) 2,897,767 6,461,978 333,685 (1,965,723) DEDUCTIONS Participant withdrawals 644,367 3,697,882 1,439,496 3,076,926 214,336 - Administrative expenses 4,085 6,754 6,407 2,421 - 239,517 ----------------------------------------------------------------------------------------------- 648,452 3,704,636 1,445,903 3,079,347 214,336 239,517 ----------------------------------------------------------------------------------------------- Net realized gain (loss) on Investments (63,659) 4,833,632 - 3,871,987 - - Net unrealized (depreciation) appreciation of investments (351,997) (2,214,293) - 6,033,866 - - ----------------------------------------------------------------------------------------------- Net increase (decrease) (547,539) 1,523,808 2,808,174 20,700,756 501,430 1,719,965 Plan equity at beginning of year 8,241,444 59,694,313 9,841,846 49,530,418 4,034,808 2,028,832 ----------------------------------------------------------------------------------------------- Plan equity at end of year $ 7,693,905 $ 61,218,121 $ 12,650,020 $ 70,231,174 $ 4,536,238 $ 3,748,797 =============================================================================================== 17
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 8. ALLOCATION OF CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS (CONTINUED) YEAR ENDED NOVEMBER 30, 1998 SMALL CAP INTERNATIONAL McCORMICK BALANCED VALUE GROWTH TOTAL STOCK FUND FUND FUND FUND --------------------------------------------------------------------------- ADDITIONS Employer contributions $ 4,128,276 $ 512,342 $ 37,700 $ 140,079 $ 52,394 Employee contributions 10,495,721 2,762,986 214,130 777,527 303,101 Earnings from investments: Dividends: McCormick & Company, Incorporated 1,589,823 1,589,823 - - - Mutual funds 8,012,978 - 339,616 652,616 241,531 Interest income 509,848 62,419 - - 31,734 Transfers in, net 143,917 - - - - --------------------------------------------------------------------------- 24,880,563 4,927,570 591,446 1,570,222 628,760 --------------------------------------------------------------------------- Interfund transfers - (1,800,463) 349,388 (1,469,501) (10,298) DEDUCTIONS Participant withdrawals 14,258,480 5,594,315 163,597 177,645 52,608 Administrative expenses 294,609 5,696 1,037 185 22 --------------------------------------------------------------------------- 14,553,089 5,600,011 164,634 177,830 52,630 --------------------------------------------------------------------------- Net realized gain (loss) on investments 8,047,602 4,228,110 18,384 47,898 (36,602) Net unrealized appreciation (depreciation) of investments 22,625,690 13,942,183 (6,932) (2,045,747) 125,180 --------------------------------------------------------------------------- Net increase (decrease) 41,000,766 15,697,389 787,652 (2,074,958) 654,410 Plan equity at beginning of year 192,442,380 68,930,379 2,842,554 9,985,993 3,248,066 --------------------------------------------------------------------------- Plan equity at end of year $233,443,146 $ 84,627,768 $ 3,630,206 $ 7,911,035 $ 3,902,476 =========================================================================== 18
GROWTH & LONG-TERM INCOME MONEY CAPITAL PORTFOLIO MARKET APPRECIATION BOND FUND FUND FUND FUND LOANS UNALLOCATED ---------------------------------------------------------------------------------------- ADDITIONS Employer contributions $ 91,119 $ 513,755 $ 94,664 $ 463,942 $ - $ 2,222,281 Employee contributions 500,385 2,880,323 487,264 2,570,005 - - Earnings from investments: Dividends: McCormick & Company, Incorporated - - - - - - Mutual funds 605,850 2,885,859 367,554 2,919,952 - - Interest income 88,288 - 5,272 - 322,135 - Transfers in, net - - - - - 143,917 ---------------------------------------------------------------------------------------- 1,285,642 6,279,937 954,754 5,953,899 322,135 2,366,198 ---------------------------------------------------------------------------------------- Interfund transfers 63,099 973,487 3,286,639 391,943 837,300 (2,621,594) DEDUCTIONS Participant withdrawals 783,071 3,043,436 1,031,596 3,039,161 373,051 - Administrative expenses 3,309 7,096 6,708 3,191 100 267,265 ---------------------------------------------------------------------------------------- 786,380 3,050,532 1,038,304 3,042,352 373,151 267,265 ---------------------------------------------------------------------------------------- Net realized gain (loss) on investments (2,879) 2,426,057 - 1,366,634 - - Net unrealized appreciation (depreciation) of investments (176,615) 5,942,815 - 4,844,806 - - ---------------------------------------------------------------------------------------- Net increase (decrease) 382,867 12,571,764 3,203,089 9,514,930 786,284 (522,661) Plan equity at beginning of year 7,858,577 47,122,549 6,638,757 40,015,488 3,248,524 2,551,493 ---------------------------------------------------------------------------------------- Plan equity at end of year $ 8,241,444 $ 59,694,313 $ 9,841,846 $ 49,530,418 $ 4,034,808 $ 2,028,832 ======================================================================================== 19
THE McCORMICK PROFIT SHARING PLAN NOTES TO FINANCIAL STATEMENTS (CONTINUED) 8. ALLOCATION OF CHANGES IN PLAN EQUITY TO INVESTMENT PROGRAMS (CONTINUED) YEAR ENDED NOVEMBER 30, 1997 SMALL CAP INTERNATIONAL McCORMICK BALANCED VALUE GROWTH TOTAL STOCK FUND FUND FUND FUND ------------------------------------------------------------------------- ADDITIONS Employer contributions $ 4,511,700 $ 449,193 $ 19,092 $ 72,521 $ 32,520 Employee contributions 8,981,750 2,540,813 115,459 439,533 200,087 Earnings from investments: Dividends: McCormick & Company, Incorporated 1,646,897 1,646,897 - - - Mutual funds 4,387,254 - 146,604 159,501 132,501 Interest income 308,864 25,316 66 193 97 Transfers in, net 458,999 - - - - ------------------------------------------------------------------------- 20,295,464 4,662,219 281,221 671,748 365,205 ------------------------------------------------------------------------- Interfund transfers - (7,631,045) 1,281,433 6,191,855 1,971,271 DEDUCTIONS Participant withdrawals 12,867,963 5,983,418 70,313 144,718 73,626 Administrative expenses 295,958 8,970 723 93 - ------------------------------------------------------------------------- 13,163,921 5,992,388 71,036 144,811 73,626 ------------------------------------------------------------------------- Net realized gain on investments 12,096,189 8,928,753 42,152 162,106 38,439 Net unrealized appreciation (depreciation) of investments 8,175,110 (3,931,295) 164,108 1,332,019 (12,913) ------------------------------------------------------------------------- Net increase (decrease) 27,402,842 (3,963,756) 1,697,878 8,212,917 2,288,376 Plan equity at beginning of year 165,039,538 72,894,135 1,144,676 1,773,076 959,690 ------------------------------------------------------------------------- Plan equity at end of year $192,442,380 $ 68,930,379 $ 2,842,554 $ 9,985,993 $ 3,248,066 ========================================================================= 20
GROWTH & LONG-TERM INCOME MONEY CAPITAL PORTFOLIO MARKET APPRECIATION BOND FUND FUND FUND FUND LOANS UNALLOCATED ------------------------------------------------------------------------------------------ ADDITIONS Employer contributions $ 84,914 $ 397,414 $ 73,587 $ 402,402 $ - $ 2,980,057 Employee contributions 483,941 2,402,311 408,593 2,391,013 - - Earnings from investments: Dividends: McCormick & Company, Incorporated - - - - - - Mutual funds 505,645 1,990,406 312,116 1,140,481 - - Interest income 1,327 1,837 2,228 56 277,744 - Transfers in, net (36,091) 109,784 (22,436) 21,253 236,629 149,860 ------------------------------------------------------------------------------------------ 1,039,736 4,901,752 774,088 3,955,205 514,373 3,129,917 ------------------------------------------------------------------------------------------ Interfund transfers 105,749 2,102,562 813,652 (3,788,908) 538,465 (1,585,034) DEDUCTIONS Participant withdrawals 465,954 2,622,694 735,109 2,251,127 521,004 - Administrative expenses 8,739 14,240 11,622 8,159 - 243,412 ------------------------------------------------------------------------------------------ 474,693 2,636,934 746,731 2,259,286 521,004 243,412 ------------------------------------------------------------------------------------------ Net realized gain on investments 6,750 1,781,832 - 1,136,157 - - Net unrealized appreciation (depreciation) of investments 37,754 5,575,573 - 5,009,864 - - ------------------------------------------------------------------------------------------ Net increase (decrease) 715,296 11,724,785 841,009 4,053,032 531,834 1,301,471 Plan equity at beginning of year 7,143,281 35,397,764 5,797,748 35,962,456 2,716,690 1,250,022 ------------------------------------------------------------------------------------------ Plan equity at end of year $ 7,858,577 $ 47,122,549 $ 6,638,757 $ 40,015,488 $ 3,248,524 $ 2,551,493 ========================================================================================== 21
SUPPLEMENTAL SCHEDULES
THE McCORMICK PROFIT SHARING PLAN LINE 27A--SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES NOVEMBER 30, 1999 SHARES COST MARKET DESCRIPTION HELD VALUE VALUE - ----------------------------------------------------------------------------------------------------------------- Temporary investments: Norwest Short Term Investment Fund 938,541 $ 938,541 $ 938,541 McCormick & Company, Incorporated: Common stock 2,448,576 41,573,927 78,507,473 Mutual Funds Investments: American Balanced Fund 244,897 3,911,788 3,805,706 T. Rowe Price Small Cap Value Fund 313,569 6,523,972 5,848,065 American EuroPacific International Fund 246,154 7,740,977 9,641,849 Bond Fund of America 590,963 8,080,411 7,670,699 Fidelity Growth & Income Fund 1,339,097 43,597,256 61,236,920 T. Rowe Price Prime Reserve - Money Market Fund 12,670,137 12,670,136 12,670,138 Fidelity Long-Term Capital Appreciation Fund (Magellan Fund) 527,283 49,805,534 69,601,294 Participant loans (average interest rate of 9%) - 4,536,238 ---------------------------------------------- $ 174,842,542 $ 254,456,923 ============================================== 22
THE McCORMICK PROFIT SHARING PLAN LINE 27D--SCHEDULE OF REPORTABLE TRANSACTIONS YEAR ENDED NOVEMBER 30, 1999 C. D. F. G. H. I. PURCHASE SELLING EXPENSES COST OF CURRENT NET GAIN B. DESCRIPTION OF SECURITY PRICE PRICE INCURRED SECURITY VALUE OR (LOSS) - -------------------------------------------------------------------------------------------------------------------------- Category (iii) Series of transactions in excess of 5% of plan assets Norwest Short-Term Investment Fund $22,161,608 $21,877,308 $ - $21,877,308 $44,038,916 $ - Fidelity Magellan Fund Inc 20,825,989 9,708,825 - 6,950,848 30,534,814 2,757,977 Fidelity Growth & Income Portfolio 13,235,996 14,432,686 - 9,599,048 27,668,682 4,833,638 T. Rowe Price Prime Reserve Fund 14,926,924 11,877,080 - 11,877,080 26,804,004 - There were no category (i), (ii) or (iv) reportable transaction during the year ended November 30, 1999. 23
CONSENT OF INDEPENDENT AUDITORS We consent to the incorporation by reference in the following Registration Statements of McCormick & Company, Incorporated and subsidiaries and in the related Prospectuses (if applicable) of our report dated April 28, 2000, with respect to the financial statements and supplemental schedules of the McCormick Profit Sharing Plan for the year ended November 30, 1999 included under Item 14., EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K in this Form 10-K/A, No.1. FORM REGISTRATION NUMBER DATE FILED -------- ------------------- ---------- S-8 333-93231 12/21/99 S-8 333-74963 3/24/99 S-3 333-47611 3/9/98 S-8 33-23727 3/21/97 S-8 33-58197 3/23/95 S-3 33-66614 7/27/93 S-3 33-40920 5/29/91 ** S-8 33-33724 3/02/90 S-3 33-32712 12/21/89 S-3 33-24660 3/16/89 S-8 33-24658 9/15/88 S-3 33-24659 9/15/88 ** Includes amendment filed 6/18/91. Baltimore, Maryland May 30, 2000