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, 2006

 

Commission file number 001-14920

 

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:

Title of Each Class

 

Name of each exchange on which registered

 

 

 

Common Stock, No Par Value

 

New York Stock Exchange

Common Stock Non-Voting, No Par Value

 

New York Stock Exchange

 

Securities registered pursuant to Section 12(g) of the Act:  Not applicable.

Indicate By check mark if the registrant is a well-know seasoned issuer, as defined in Rule 405 of the Securities Act.  Yes x   No o

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.  Yes o   No x

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 o

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 by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer (as defined in Rule 12b-2 of the Act). (Check one)

Large Accelerated Filer x      Accelerated Filer o      Non-Accelerated Filer o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).  Yes o   No x

State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was last sold, or the average bid and asked price of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter.

The aggregate market value of the voting common equity held by non-affiliates at May 31, 2006: $285,001,059

The aggregate market value of the non-voting common equity held by non-affiliates at May 31, 2006: $4,039,740,055

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

 

13,359,983

 

December 29, 2006

Common Stock Non-Voting

 

116,826,715

 

December 29, 2006

 

DOCUMENTS INCORPORATED BY REFERENCE

Document

 

 

 

Part of 10-K into which incorporated

Annual Report to Stockholders
for Fiscal Year Ended November 30, 2006

 

 

 

Part I, Part II

 

 

 

 

 

Registrant’s Proxy Statement

 

 

 

 

dated February 16, 2007

 

 

 

Part III

 

 




Explanatory Note

McCormick & Company, Inc. is filing this amendment to Item 15 of its Annual Report on Form 10-K for the fiscal year ended November 30, 2006, to include the financial statements required by Form 11-K with respect to the McCormick 401(K) Retirement Plan for the years ended November 30, 2006 and 2005, the Zatarain’s Partnership L.P. 401(K) Retirement Plan for the years ended December 31, 2006 and 2005, and the Mojave Foods Corporation 401(K) Retirement Plan for the years ended November 30, 2006 and 2005.  This amendment does not affect the Company’s historical results of operations, financial condition or cash flows for any periods presented.




 

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

For the fiscal year ended November 30, 2006

 

Commission File Number 001-14920

THE McCORMICK 401(K) RETIREMENT PLAN

THE ZATARAIN’S PARTNERSHIP L.P. 401(K) RETIREMENT PLAN

THE MOJAVE FOODS CORPORATION 401(K) RETIREMENT PLAN

Full title of plans

McCORMICK & COMPANY, INCORPORATED

18 Loveton Circle

Sparks, Maryland 21152

Name of issuer of the securities held pursuant to the plan

and address of its principal office




Required Information

Items 1 through 3:  Not required; see Item 4 below.

Item 4.  Plan Financial Statements and Schedules Prepared in accordance with the financial reporting requirements of ERISA.

a)

 

i)

 

Report of Registered Public Accounting Firm

 

 

 

 

 

 

 

ii)

 

Statements of Net Assets Available For Benefits

 

 

 

 

 

 

 

iii)

 

Statements of Changes in Net Assets Available For Benefits

 

 

 

 

 

 

 

iv)

 

Notes to Financial Statements

 

 

 

 

 

 

 

 

 

b)   Exhibits:   Consent of Independent Registered Public Accounting Firm.

 

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 401(K) RETIREMENT PLAN

 

 

 

 

 

 

 

 

 

 

DATE:   May 25, 2007

 

By:

 

/s/ Cecile K. Perich

 

 

 

 

Cecile K. Perich

 

 

 

 

Vice President - Human Relations

 

 

 

 

and Plan Administrator

 




 

 

 

 

 

 

 

 

 

The McCormick 401(k) Retirement Plan

Audited Financial Statements and Supplemental Schedule

Years ended November 30, 2006 and 2005 with Report of Independent Registered Public Accounting Firm




 

The McCormick 401(k) Retirement Plan
Audited Financial Statements and Supplemental Schedule

Years ended November 30, 2006 and 2005

Contents

Report of Independent Registered Public Accounting Firm

 

1

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

2

Statements of Changes in Net Assets Available for Benefits

 

3

Notes to Financial Statements

 

4

 

 

 

Supplemental Schedule

 

 

 

 

 

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

 

9

 




 

Report of Independent Registered Public Accounting Firm

Investment Committee
McCormick & Company, Incorporated

We have audited the accompanying statements of net assets available for benefits of The McCormick 401(k) Retirement Plan as of November 30, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years ended November 30, 2006, 2005 and 2004. 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 the standards of the Public Company Accounting Oversight Board (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. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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 net assets available for benefits of the Plan at November 30, 2006 and 2005, and the changes in its net assets available for benefits for the years ended November 30, 2006, 2005 and 2004, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of November 30, 2006 is presented for purposes of additional analysis and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

May 22, 2007
Baltimore, Maryland

1




The McCormick 401(k) Retirement Plan

Statements of Net Assets Available for Benefits

 

 

November 30

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities — at fair value:

 

 

 

 

 

McCormick & Company, Incorporated — Common stock fund

 

$

129,624,307

 

$

121,296,236

 

Unaffiliated issuer — Pooled, common and collective funds

 

28,631,459

 

28,265,367

 

Unaffiliated issuer — Mutual funds

 

210,409,027

 

180,828,165

 

Participant loans

 

4,133,409

 

4,478,320

 

Total investments

 

372,798,202

 

334,868,088

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

(158

)

 

Employees’ contributions

 

30,468

 

 

Accrued interest and dividends

 

72,627

 

60,819

 

Due from funds for securities sold, net

 

21,697

 

150,228

 

Total receivables

 

124,634

 

211,047

 

Total assets

 

372,922,836

 

335,079,135

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Cash overdrafts

 

 

2,341

 

Net assets available for benefits

 

$

372,922,836

 

$

335,076,794

 

See accompanying notes.

2




The McCormick 401(k) Retirement Plan

Statements of Changes in Net Assets Available for Benefits

 

 

Year ended November 30

 

 

 

2006

 

2005

 

2004

 

Additions

 

 

 

 

 

 

 

Employer contributions:

 

 

 

 

 

 

 

Employer match

 

$

5,575,025

 

$

5,639,202

 

$

5,684,049

 

Employee contributions

 

13,635,239

 

14,347,450

 

13,265,739

 

Earnings from investments:

 

 

 

 

 

 

 

Dividends:

 

 

 

 

 

 

 

McCormick & Company, Incorporated

 

3,103,304

 

2,469,721

 

2,382,701

 

Mutual funds

 

2,642,416

 

2,423,914

 

1,733,516

 

Other, net

 

(73,358

)

552,731

 

490,437

 

 

 

24,882,626

 

25,433,018

 

23,556,442

 

 

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

 

 

Participant withdrawals

 

37,211,669

 

20,283,914

 

24,194,944

 

Participant loan fees

 

12,804

 

17,949

 

15,100

 

 

 

37,224,473

 

20,301,863

 

24,210,044

 

 

 

 

 

 

 

 

 

Net realized gain on investments

 

21,113,660

 

7,074,003

 

5,282,926

 

Net unrealized appreciation/(depreciation) of investments

 

29,074,229

 

(15,556,461

)

41,233,692

 

Net increase/(decrease)

 

37,846,042

 

(3,351,303

)

45,863,016

 

 

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

335,076,794

 

338,428,097

 

292,565,081

 

Net assets available for benefits at end of year

 

$

372,922,836

 

$

335,076,794

 

$

338,428,097

 

See accompanying notes.

3




 

The McCormick 401(k) Retirement Plan

Notes to Financial Statements
November 30, 2006

1.              Description of the Plan

The McCormick 401(k) Retirement Plan (the Plan) is a defined contribution plan sponsored by McCormick & Company, Incorporated (the Company), which incorporates a 401(k) savings and investment option.

Effective March 22, 2002, the Plan was amended to provide that the McCormick & Company, Incorporated common stock fund investment option is designated as an employee stock ownership plan (ESOP). This designation allows participants investing in McCormick & Company, Incorporated common stock to elect to receive, in cash, dividends that are paid on McCormick stock held in their 401(k) Retirement Plan accounts. Dividends may also continue to be reinvested. The McCormick & Company, Incorporated common stock fund invests principally in common stock of the Plan Sponsor.

The following description of the Plan provides only general information. Further information about the Plan agreement, eligible employees, the vesting provisions, and investment alternatives is contained in the Plan Document.

Participating employees contribute to the Plan through payroll deductions in amounts ranging from 1% to 60% of their earnings, subject to certain limitations.

Effective December 1, 2000, the Company and participating subsidiaries provide a matching contribution of 100% of the first 3% of an employee’s contribution, and 50% on the next 2% of the employee’s contribution. An employee is required to have one year of service with the Company to be eligible for the matching contribution.

Participants are immediately vested in their contributions, the Company’s contributions including matching contributions, and all related earnings.

Participants’ elective contributions, as well as Company matching contributions, are invested in the Plan’s investment funds as directed by the participant.

Participants are permitted to take loans against their contributions to the Plan, subject to a $500 minimum. 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 12 months, whichever is less. The Company’s Investment Committee determines the interest rate for loans based on current market rates. Loan repayments, including interest, 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, reconstruct, or substantially rehabilitate a primary home for the participant or the participant’s immediate family.

4




1.              Description of the Plan (continued)

Upon termination of service, a participant with an account balance greater than $5,000 may elect to leave their account balance invested in the Plan, elect to rollover their entire balance to an Individual Retirement Account (IRA) or another qualified plan, elect to receive a lump-sum payment equal to their entire balance, or elect annual installments to extend from two to eight years. Upon termination of service, a participant with an account balance less than $5,000 may elect to rollover their entire balance to an IRA or another qualified plan or elect to receive a lump-sum payment equal to their entire balance. In the absence of instruction from a participant, balances less than $1,000 automatically will be paid directly to the participant and those greater than $1,000 will be rolled over to an IRA designated by the Administrator.

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.

2.              Significant Accounting Policies

The financial statements of the Plan are prepared on the accrual basis of accounting.

Valuation of Securities and Income Recognition

Investments are stated at aggregate fair 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. Pooled, common and collective funds are valued by the issuer of the funds based on the fund managers’ estimate of the individual closing price of the funds on the last day of the plan year as quoted by the applicable fund issuer.

The change in the difference between fair value and the cost of investments is reflected in the statements of changes in net assets available for benefits 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.

5




2.              Significant Accounting Policies (continued)

Valuation of Securities and Income Recognition (continued)

The McCormick Stock Fund (the Fund) is tracked on a unitized basis. The Fund consists of McCormick common stock and funds held in the Wells Fargo Short-Term Investment Money Market Fund sufficient to meet the Fund’s daily cash needs. Unitizing the Fund allows for daily trades. The value of a unit reflects the combined market value of McCormick common stock and the cash investments held by the Fund. At November 30, 2006, 5,024,915 units were outstanding with a value of $25.80 per unit (4,613,528 units were outstanding with a value of $26.29 per unit at November 30, 2005). At November 30, 2006, the Fund held 3,303,271 shares of McCormick & Company, Incorporated common stock with an aggregate value of $127,902,663 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $1,721,644. At November 30, 2005, the Fund held 3,861,109 shares of McCormick & Company, Incorporated common stock with an aggregate value of $120,543,817 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $752,419.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Administrative services are provided by the Company, which serves as the Plan Sponsor, without cost to the Plan; however, investment advisors’ fees are paid by the Plan.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts could differ from those estimates.

3.              Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service dated February 25, 2004, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended. 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, as amended, is qualified and the related trust is tax-exempt.

6




4.              Investments

The Plan’s investments are held in bank-administered trust funds. The custodial trustee of the Plan is Wells Fargo Bank Minnesota N.A. During 2006, 2005 and 2004, the Plan’s investments (including investments bought, sold, or held throughout the year) appreciated /(depreciated) in fair value by $50,187,889, $(8,482,458) and $46,516,618, respectively, as follows:

 

 

Net Appreciation (Depreciation)
in Fair Value During the

 

 

 

Year Ended November 30

 

 

 

2006

 

2005

 

2004

 

McCormick & Company, Incorporated—Common stock

 

$

25,980,305

 

$

(20,732,458

)

$

31,507,826

 

Pooled, common and collective funds

 

1,250,288

 

1,094,776

 

1,012,478

 

Mutual funds

 

22,957,296

 

11,155,224

 

13,996,314

 

Total

 

$

50,187,889

 

$

(8,482,458

)

$

46,516,618

 

 

The Plan’s dividend income for the years ended November 30, 2006, 2005, and 2004 was $5,745,720, $4,893,635 and $4,116,217, respectively.

The fair value of individual investments that represent 5% or more of the Plan’s net assets available for benefits are as follows:

 

 

November 30

 

 

 

2006

 

2005

 

McCormick & Company, Incorporated—common stock fund

 

$

129,624,307

 

$

121,296,236

 

Pooled, common and collective funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

28,631,459

 

28,265,367

 

Mutual funds:

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

45,688,232

 

 

Merrill Lynch Large Cap Core Fund

 

40,465,305

 

787,607

 

American Funds EuroPacific Growth Fund

 

24,276,261

 

18,849,703

 

Fidelity Magellan Fund

 

 

39,593,269

 

Fidelity Growth & Income Portfolio Fund

 

 

38,772,837

 

 

7




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. The Plan holds investments in common stock of McCormick & Company, Incorporated, the Plan Sponsor, and in funds managed by affiliates of Wells Fargo, the custodial trustee of the Plan. Dividends on McCormick & Company, Incorporated common stock and income on investments in Wells Fargo funds are at the same rates as non-affiliated holders of these securities.

6.              Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

8




 

Supplemental Schedule




The McCormick 401(k) Retirement Plan

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

EIN 52-0408290, PN 004
November 30, 2006

Description of Investments

 

 

 

Shares Held

 

Cost**

 

Current
Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated

 

 

 

 

 

 

 

Common Stock*

 

3,303,271

 

 

 

$

127,902,663

 

 

 

 

 

 

 

 

 

Money Market

 

 

 

 

 

 

 

Wells Fargo Short-Term Investment Money Market Fund*

 

1,721,644

 

 

 

1,721,644

 

 

 

 

 

 

 

 

 

Pooled, Common and Collective Funds

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund*

 

724,712

 

 

 

28,631,459

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

355,661

 

 

 

45,688,232

 

Merrill Lynch Large Cap Core Fund

 

2,813,999

 

 

 

40,465,305

 

American Funds EuroPacific Growth Fund

 

498,998

 

 

 

24,276,261

 

Fidelity US Bond Index Fund

 

1,362,003

 

 

 

14,954,795

 

Vanguard Windsor II Fund

 

229,561

 

 

 

14,531,238

 

UAM ICM Small Company Value

 

327,568

 

 

 

14,108,337

 

Vanguard Target Retirement Fund 2025

 

976,730

 

 

 

12,873,295

 

Managers Small Cap Fund

 

579,009

 

 

 

9,194,660

 

Vanguard Target Retirement Fund 2015

 

547,452

 

 

 

6,936,221

 

Harbor Capital Appreciation Fund

 

159,074

 

 

 

5,311,465

 

Vanguard Target Retirement Income Fund

 

453,825

 

 

 

4,914,921

 

Vanguard Total International Stock

 

273,942

 

 

 

4,802,208

 

Vanguard Mid-Cap Index Fund

 

51,809

 

 

 

4,723,977

 

Vanguard Target Retirement Fund 2035

 

270,234

 

 

 

3,769,767

 

Vanguard Index Tr Small Cap Stock Fund

 

84,658

 

 

 

2,794,550

 

Vanguard Target Retirement Fund 2045

 

73,926

 

 

 

1,063,795

 

 

 

 

 

 

 

 

 

Participant loans (5.25% — 9.75% annual int. rates)*

 

 

 

 

 

4,133,409

 

 

 

 

 

 

 

$

372,798,202

 


*                    Indicates parties-in-interest to the Plan.

**             Historical cost has been omitted, as all investments are participant directed.

9




Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of McCormick & Company, Inc. of our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2006, our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2006, and our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, L.P.  401(k) Savings Plan for the year ended December 31, 2006, all included in this Form 10-K/A of McCormick & Company, Inc.

Form

 

 

 

Registration
Number

 

Date Filed

 

 

 

 

 

S-8

 

333-142020

 

04/11/2007

S-8 POS

 

333-123808

 

04/04/2005

S-8

 

333-104084

 

03/23/2005

S-3

 

333-122366

 

01/28/2005

S-8

 

333-114094

 

03/31/2004

S-8

 

333-104084

 

03/28/2003

S-8

 

333-57590

 

03/26/2001

S-3/A

 

333-46490

 

01/23/2001

S-8

 

333-93231

 

12/21/1999

S-8

 

333-74963

 

03/24/1999

S-3

 

333-47611

 

03/09/1998

S-8

 

33-23727

 

03/21/1997

S-3

 

33-66614

 

07/27/1993

S-3

 

33-40920

 

05/29/1991

S-8

 

33-33724

 

03/02/1990

S-3

 

33-32712

 

12/21/1989

S-3

 

33-24660

 

03/16/1989

S-8

 

33-24658

 

09/15/1988

S-3

 

33-24659

 

09/15/1988

 

 

 

 

 

 

May 29, 2007
Baltimore, Maryland

10




Required Information

Items 1 through 3:  Not required; see Item 4 below.

Item 4.  Plan Financial Statements and Schedules Prepared in accordance with the financial reporting requirements of ERISA.

a)

 

i)

 

Report of Registered Public Accounting Firm

 

 

 

 

 

 

 

v)

 

Statements of Net Assets Available For Benefits

 

 

 

 

 

 

 

vi)

 

Statements of Changes in Net Assets Available For Benefits

 

 

 

 

 

 

 

vii)

 

Notes to Financial Statements

 

b)            Exhibits: Consent of Independent Registered Public Accounting Firm.

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 ZATARAIN’S PARTNERSHIP L.P. 401(K) RETIREMENT PLAN

DATE:

 

May 25, 2007

 

By:

 

/s/ Regina Templet

 

 

 

 

Regina Templet

 

 

 

 

Director of Finance — Zatarain’s Brands

 

 

 

 

and Plan Administrator

 

11




 

 

 

 

 

The Zatarain’s Partnership, L.P. 401(k) Savings Plan

Audited Financial Statements and Supplemental Schedule

Years ended December 31, 2006 and 2005 with Report of Independent Registered Public Accounting Firm




 

The Zatarain’s Partnership, L.P. 401(k) Savings Plan
Audited Financial Statements and Supplemental Schedule

Years ended December 31, 2006 and 2005

 

Contents

 

Report of Independent Registered Public Accounting Firm

 

1

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

2

Statements of Changes in Net Assets Available for Benefits

 

3

Notes to Financial Statements

 

4

 

 

 

Supplemental Schedule

 

 

 

 

 

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

 

9

 




 

Report of Independent Registered Public Accounting Firm

Investment Committee
McCormick & Company, Incorporated (on behalf of
The Zatarain’s Partnership, L.P. 401(k) Savings Plan)

We have audited the accompanying statements of net assets available for benefits of The Zatarain’s Partnership, L.P. 401(k) Savings Plan as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. 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 the standards of the Public Company Accounting Oversight Board (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. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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 net assets available for benefits of the Plan at December 31, 2006 and 2005, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of December 31, 2006 is presented for purposes of additional analysis, and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

May 22, 2007
Baltimore, Maryland

1




The Zatarain’s Partnership, L.P. 401(k) Savings Plan

Statements of Net Assets Available for Benefits

 

 

December 31

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities — at fair value:

 

 

 

 

 

McCormick & Company, Incorporated — Common stock fund

 

$

34,476

 

$

24,762

 

Unaffiliated issuer — Pooled, common and collective fund

 

558,683

 

890,408

 

Unaffiliated issuer — Mutual funds

 

6,252,660

 

5,268,227

 

Participant loans

 

78,470

 

87,728

 

Total investments

 

6,924,289

 

6,271,125

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

315,912

 

346,672

 

Employees’ contributions

 

20,217

 

28,227

 

Accrued interest and dividends

 

410

 

411

 

Total receivables

 

336,539

 

375,310

 

Total assets

 

7,260,828

 

6,646,435

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Due to funds for securities purchased

 

 

7,414

 

Net assets available for benefits

 

$

7,260,828

 

$

6,639,021

 

See accompanying notes.

2




The Zatarain’s Partnership, L.P. 401(k) Savings Plan

Statements of Changes in Net Assets Available for Benefits

 

 

Year ended December 31

 

 

 

2006

 

2005

 

Additions

 

 

 

 

 

Employer contributions:

 

 

 

 

 

Employer contributions

 

$

391,674

 

$

432,317

 

Employee contributions

 

346,092

 

405,569

 

Earnings from investments:

 

 

 

 

 

Dividends:

 

 

 

 

 

McCormick & Company, Incorporated

 

753

 

765

 

Mutual funds

 

54,713

 

47,538

 

Other, net

 

6,249

 

26,093

 

 

 

799,481

 

912,282

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

Participant withdrawals

 

843,116

 

778,114

 

Participant loan fees

 

350

 

16,663

 

 

 

843,466

 

794,777

 

 

 

 

 

 

 

Net realized gain on investments

 

279,220

 

349,248

 

Net unrealized appreciation of investments

 

386,572

 

213,611

 

Net increase

 

621,807

 

680,364

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

6,639,021

 

5,958,657

 

Net assets available for benefits at end of year

 

$

7,260,828

 

$

6,639,021

 

See accompanying notes.

3




 

The Zatarain’s Partnership, L.P. 401(k) Savings Plan

Notes to Financial Statements
December 31, 2006

1.              Description of the Plan

The Zatarain’s Partnership, L.P. 401(k) Savings Plan (the Plan) is a defined contribution plan sponsored by Zatarain’s Partnership, L.P. (the Company), which incorporates a 401(k) savings and investment option. The Plan has been in existence since 1990. The investment option in common stock of McCormick & Company, Incorporated was added April 1, 2004. The Company is wholly owned by McCormick & Company, Incorporated. The Plan covers all full-time employees of Zatarain’s Partnership, L.P. who have completed one year of service.

The following description of the Plan provides only general information. Further information about the Plan agreement, eligible employees, vesting provisions, and investment alternatives is contained in the Plan Document.

Participating employees contribute to the Plan through payroll deductions in amounts ranging from 1% to 100% of their earnings, subject to certain limitations. The Company provides a matching contribution of 35% of an employee’s contribution on the first 6% of the employee’s eligible compensation. The Company may also contribute annually 3% of an employee’s eligible compensation as a profit-sharing contribution. An employee is required to have at least one year of service to be eligible for matching or profit-sharing contributions. During 2006 and 2005, the Company made profit-sharing contributions of $311,000 and $340,000, respectively.

Participants are immediately vested in their contributions, the profit-sharing contribution and all earnings on their vested balances. The Company’s matching contributions vest as follows: after 2 years of service — 20%; after 3 years of service — 40%; after 4 years of service — 60%; after 5 years of service — 100%.

Participant’s contributions are invested in the Plan’s investment funds as directed by the participant. At each plan year end, the employer profit-sharing contribution was unallocated. Forfeitures of Company contributions are used to offset future Company contributions. Forfeitures during the years ended December 31, 2006 and 2005 were $4,165 and $5,916, respectively.

Participants are permitted to take loans against their contributions to the Plan, subject to a $1,000 minimum. 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 12 months, whichever is less. The Plan Sponsor (the Company) determines the interest rate for loans based on current market rates.

4




1.              Description of the Plan (continued)

Loan repayments, including interest, are made by participants through payroll deductions over loan terms of up to five years. Longer terms are available for loans taken to purchase, construct or substantially rehabilitate a primary home for the participant or the participant’s immediate family.

Upon termination of service, a participant with an account balance greater than $1,000 may elect to rollover the balance to an Individual Retirement Account or another qualified plan or elect to receive a lump-sum payment equal to their account balance. Balances less than $1,000 will automatically be paid directly to the participant.

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.

2.              Significant Accounting Policies

The financial statements of the Plan are prepared on the accrual basis of accounting.

Valuation of Securities and Income Recognition

Investments are stated at aggregate fair 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. Pooled, common and collective funds are valued by the issuer of the funds based on the fund managers’ estimate of the individual investments held by the fund. Mutual funds are valued at the closing price of the funds on the last day of the plan year as quoted by the applicable fund issuer.

The change in the difference between fair value and the cost of investments is reflected in the statements of changes in net asset available for benefits 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.

5




2.              Significant Accounting Policies (continued)

Valuation of Securities and Income Recognition (continued)

The McCormick Stock Fund (the Fund) became an investment option for participants in 2004. The Fund is tracked on a unitized basis. The Fund consists of McCormick common stock and funds held in the Wells Fargo Short-Term Investment Money Market Fund sufficient to meet the Fund’s daily cash needs. Unitizing the Fund allows for daily trades. The value of a unit reflects the combined market value of McCormick common stock and the cash investments held by the Fund. At December 31, 2006, 4,278 units were outstanding with a value of approximately $8.06 per unit (2,472 units were outstanding with a value of approximately $10.02 per unit at December 31, 2005). At December 31, 2006, the Fund held 804 shares of McCormick & Company, Incorporated common stock with an aggregate value of $31,002 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $3,474. At December 31, 2005, the Fund held 745 shares of McCormick & Company, Incorporated common stock with an aggregate value of $23,035 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $1,727.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Administrative services are provided by the Company which serves as the Plan Sponsor, and McCormick & Company, Incorporated without cost to the Plan; however, investment advisors’ fees are paid by the Plan.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts could differ from those estimates.

3.              Income Tax Status

The Plan has received a determination letter from the Internal Revenue Service dated January 20, 2006, stating that the Plan is qualified under Section 401(a) of the Internal Revenue Code (the Code) and, therefore, the related trust is exempt from taxation. Subsequent to this determination by the Internal Revenue Service, the Plan was amended. Once qualified, the Plan is required to operate in conformity with the Code to

6




3.              Income Tax Status (continued)

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, as amended, is qualified and the related trust is tax-exempt.

4.              Investments

The Plan’s investments are held in bank-administered trust funds. The custodial trustee of the Plan is Wells Fargo Bank Minnesota N.A. During 2006 and 2005, the Plan’s investments (including investments bought, sold, or held throughout the year) appreciated in fair value by $665,792 and $562,859 as follows:

 

 

Net Appreciation (Depreciation)
in Fair Value During the

 

 

 

Year Ended December 31

 

 

 

2006

 

2005

 

McCormick & Company, Incorporated—Common Stock

 

$

5,726

 

$

(7,514

)

Pooled, common and collective funds

 

33,855

 

34,559

 

Mutual funds

 

626,211

 

535,814

 

Total

 

$

665,792

 

$

562,859

 

 

The Plan’s dividend income for the years ended December 31, 2006 and 2005 was $55,466 and $48,303, respectively.

The fair value of individual investments that represent 5% or more of the Plan’s net assets are available for benefits as follows:

 

 

December 31

 

 

 

2006

 

2005

 

Pooled, common and collective funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

$

558,683

 

$

890,408

 

Mutual funds:

 

 

 

 

 

American Funds EuroPacific Growth Fund

 

1,667,799

 

1,248,923

 

Harbor Capital Appreciation Fund

 

1,555,972

 

1,538,248

 

Vanguard Target Retirement 2025 #304

 

1,231,624

 

31,765

 

Vanguard Institutional Index Fund

 

750,519

 

670,304

 

Wells Fargo Growth Balanced Fund

 

 

1,012,384

 

 

7




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. The Plan holds investments in common stock of McCormick & Company, Incorporated, the Parent of the Plan Sponsor, and in funds managed by affiliates of Wells Fargo, the custodial trustee of the Plan. Dividends on McCormick & Company, Incorporated common stock and income on investments in Wells Fargo funds are at the same rates as non-affiliated holders of these securities.

6.              Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

8




 

Supplemental Schedule




The Zatarain’s Partnership, L.P. 401(k) Savings Plan

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

EIN 52-0408290, PN 004
December 31, 2006

Description of Investments

 

 

 

Shares Held

 

Cost**

 

Current 
Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated

 

 

 

 

 

 

 

Common stock*

 

804

 

 

 

$

31,002

 

 

 

 

 

 

 

 

 

Money Market Fund

 

 

 

 

 

 

 

Wells Fargo Short-Term Investment Money Market Fund*

 

3,474

 

 

 

3,474

 

 

 

 

 

 

 

 

 

Pooled, Common and Collective Funds

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund*

 

14,086

 

 

 

558,683

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

 

 

 

 

 

American Funds EuroPacific Growth Fund

 

35,820

 

 

 

1,667,799

 

Harbor Capital Appreciation Fund

 

46,656

 

 

 

1,555,972

 

Vanguard Target Retirement 2025 #304

 

94,450

 

 

 

1,231,624

 

Vanguard Institutional Index Fund

 

5,791

 

 

 

750,519

 

Vanguard Windsor II Fund

 

5,737

 

 

 

353,921

 

Vanguard Target Retirement 2015

 

16,082

 

 

 

200,387

 

ICM Small Company Portfolio Fund

 

4,763

 

 

 

177,982

 

Managers Small-Cap Fund

 

4,522

 

 

 

71,499

 

Fidelity U.S. Bond Index

 

6,078

 

 

 

66,003

 

Vanguard Target Retirement 2035 #305

 

4,194

 

 

 

58,171

 

Vanguard Index Tr Small Cap Stock Fund

 

1,455

 

 

 

47,500

 

Vanguard Mid Cap Index Fund

 

415

 

 

 

37,197

 

Merrill Lynch Large Cap Core Fund

 

1,157

 

 

 

16,505

 

Vanguard Total International Stock

 

838

 

 

 

14,801

 

Vanguard Target retirement 2045 #306

 

121

 

 

 

1,736

 

Vanguard Target Retirement Fund #308

 

98

 

 

 

1,044

 

 

 

 

 

 

 

 

 

Participant loans (5.00%—9.25% annual interest rates)*

 

 

 

 

78,470

 

 

 

 

 

 

 

$

6,924,289

 


*                    Indicates parties-in-interest to the Plan.

**             Historical cost has been omitted, as all investments are participant directed.

9




Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of McCormick & Company, Inc. of our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2006, our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2006, and our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, L.P.  401(k) Savings Plan for the year ended December 31, 2006, all included in this Form 10-K/A of McCormick & Company, Inc.

 

Registration

 

 

Form

 

 

 

Number

 

Date Filed

S-8

 

333-142020

 

04/11/2007

S-8 POS

 

333-123808

 

04/04/2005

S-8

 

333-104084

 

03/23/2005

S-3

 

333-122366

 

01/28/2005

S-8

 

333-114094

 

03/31/2004

S-8

 

333-104084

 

03/28/2003

S-8

 

333-57590

 

03/26/2001

S-3/A

 

333-46490

 

01/23/2001

S-8

 

333-93231

 

12/21/1999

S-8

 

333-74963

 

03/24/1999

S-3

 

333-47611

 

03/09/1998

S-8

 

33-23727

 

03/21/1997

S-3

 

33-66614

 

07/27/1993

S-3

 

33-40920

 

05/29/1991

S-8

 

33-33724

 

03/02/1990

S-3

 

33-32712

 

12/21/1989

S-3

 

33-24660

 

03/16/1989

S-8

 

33-24658

 

09/15/1988

S-3

 

33-24659

 

09/15/1988

 

 

 

 

 

 

May 29, 2007
Baltimore, Maryland

10




Required Information

Items 1 through 3:  Not required; see Item 4 below.

Item 4.  Plan Financial Statements and Schedules Prepared in accordance with the financial reporting requirements of ERISA.

a)

 

i)

 

Report of Registered Public Accounting Firm

 

 

 

 

 

 

 

viii)

 

Statements of Net Assets Available For Benefits

 

 

 

 

 

 

 

ix)

 

Statements of Changes in Net Assets Available For Benefits

 

 

 

 

 

 

 

x)

 

Notes to Financial Statements

 

b)            Exhibits: Consent of Independent Registered Public Accounting Firm.

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 MOJAVE FOODS CORPORATION 401(K) RETIREMENT PLAN

DATE:

 

May 25, 2007

 

By:

 

/s/ Craig Berger

 

 

 

 

Craig Berger

 

 

 

 

Director of Finance — Mojave Foods Corporation

 

 

 

 

and Plan Administrator

 

11




 

 

 

 

 

The Mojave Foods Corporation 401(k) Retirement Plan

Audited Financial Statements and Supplemental Schedule

Years ended November 30, 2006 and 2005 with Report of Independent Registered Public Accounting Firm

 




 

The Mojave Foods Corporation 401(k) Retirement Plan
Audited Financial Statements and Supplemental Schedule

Years ended November 30, 2006 and 2005

 

Contents

Report of Independent Registered Public Accounting Firm

 

1

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

2

Statements of Changes in Net Assets Available for Benefits

 

3

Notes to Financial Statements

 

4

 

 

 

Supplemental Schedule

 

 

 

 

 

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

 

9

 




 

Report of Independent Registered Public Accounting Firm

Investment Committee
McCormick & Company, Incorporated (on behalf of
The Mojave Foods Corporation 401(k) Retirement Plan)

We have audited the accompanying statements of net assets available for benefits of The Mojave Foods Corporation 401(k) Retirement Plan as of November 30, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. 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 the standards of the Public Company Accounting Oversight Board (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. We were not engaged to perform an audit of the Plan’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and 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 net assets available for benefits of the Plan at November 30, 2006 and 2005, and the changes in its net assets available for benefits for the years then ended, in conformity with U.S. generally accepted accounting principles.

Our audits were performed for the purpose of forming an opinion on the financial statements taken as a whole. The accompanying supplemental schedule of assets (held at end of year) as of November 30, 2006 is presented for purposes of additional analysis, and is not a required part of the financial statements but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.

/s/ Ernst & Young LLP

May 22, 2007
Baltimore, Maryland

1




The Mojave Foods Corporation 401(k) Retirement Plan

Statements of Net Assets Available for Benefits

 

 

November 30

 

 

 

2006

 

2005

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities — at fair value:

 

 

 

 

 

McCormick & Company, Incorporated — Common stock fund

 

$

33,214

 

$

17,299

 

Unaffiliated issuer — Pooled, common and collective funds

 

59,573

 

35,826

 

Unaffiliated issuer — Mutual funds

 

392,802

 

235,509

 

Participant loans

 

6,529

 

2,213

 

Total investments

 

492,118

 

290,847

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

37,162

 

25,442

 

Employees’ contributions

 

 

2,166

 

Accrued interest and dividends

 

224

 

120

 

Total receivables

 

37,386

 

27,728

 

Total assets

 

529,504

 

318,575

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Due to funds for securities purchased

 

 

1,977

 

Net assets available for benefits

 

$

529,504

 

$

316,598

 

See accompanying notes.

2




The Mojave Foods Corporation 401(k) Retirement Plan

Statements of Changes in Net Assets Available for Benefits

 

 

Year ended November 30

 

 

 

2006

 

2005

 

Additions

 

 

 

 

 

Contributions:

 

 

 

 

 

Employer contributions

 

$

37,162

 

$

25,442

 

Employee contributions

 

149,927

 

141,101

 

Earnings from investments:

 

 

 

 

 

Dividends:

 

 

 

 

 

McCormick & Company, Incorporated

 

566

 

266

 

Mutual funds

 

4,691

 

2,125

 

Other, net

 

2,156

 

567

 

 

 

194,502

 

169,501

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

Participant withdrawals

 

22,761

 

7,618

 

Participant loan fees

 

300

 

150

 

 

 

23,061

 

7,768

 

 

 

 

 

 

 

Net realized gain on investments

 

10,450

 

3,686

 

Net unrealized appreciation of investments

 

31,015

 

6,416

 

Net increase

 

212,906

 

171,835

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

316,598

 

144,763

 

Net assets available for benefits at end of year

 

$

529,504

 

$

316,598

 

See accompanying notes.

3




 

The Mojave Foods Corporation 401(k) Retirement Plan

Notes to Financial Statements
November 30, 2006

1.              Description of the Plan

The Mojave Foods Corporation 401(k) Retirement Plan (the Plan) is a defined contribution plan sponsored by Mojave Foods Corporation (the Company), which incorporates a 401(k) savings and investment option. The Company is a wholly owned subsidiary of McCormick & Company, Incorporated. The Plan covers substantially all full-time employees of Mojave Foods Corporation who have completed six months of service. Employees classified as “leased employees” of the Company are not eligible for participation.

The Plan began April 1, 2004. The following description of the Plan provides only general information. Further information about the Plan agreement, eligible employees, vesting provisions, and investment alternatives is contained in the Plan Document.

Participating employees contribute to the Plan through payroll deductions in amounts ranging from 1% to 60% of their earnings, subject to certain limitations. The Plan allows but does not require the Company to make matching contributions or other contributions at its discretion. Only participants employed by the Company on the last day of a plan year are eligible to receive any Company contributions made for such plan year. During the period December 1, 2005 through November 30, 2006, the Company made a discretionary matching contribution of 25% of eligible employee pretax contributions. During the period December 1, 2004 through November 30, 2005, the Company made a discretionary matching contribution of 20% of eligible employee pretax contributions. Participants are immediately vested in their contributions, in earnings on their contributions, in matching Company contributions, and in earnings on vested Company contributions.

Participant contributions are invested in the Plan’s investment funds as directed by the participant.

Participants are permitted to take loans against their contributions to the Plan, subject to a $500 minimum. 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 12 months, whichever is less. The Plan Sponsor (the Company) determines the interest rate for loans based on current market rates. Loan repayments, including interest, are made by participants through payroll deductions over loan terms of up to five years. Longer terms are available for loans taken to purchase, construct or substantially rehabilitate a primary home for the participant or the participant’s immediate family.

4




1.              Description of the Plan (continued)

Upon termination of service, a participant with an account balance greater than $1,000 may elect to rollover the balance to an Individual Retirement Account or another qualified plan or elect to receive a lump-sum payment equal to their account balance. Balances less than $1,000 will automatically be paid directly to the participant.

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.

2.              Significant Accounting Policies

The financial statements of the Plan are prepared on the accrual basis of accounting.

Valuation of Securities and Income Recognition

Investments are stated at aggregate fair 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. Pooled, common and collective funds are valued by the issuer of the funds based on the fund managers’ estimate of the individual investments held by the fund. Mutual funds are valued at the closing price of the funds on the last day of the plan year as quoted by the applicable fund issuer.

The change in the difference between fair value and the cost of investments is reflected in the statements of changes in net asset available for benefits 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.

The McCormick Stock Fund (the Fund) is tracked on a unitized basis. The Fund consists of McCormick common stock and funds held in the Wells Fargo Short-Term Investment Money Market Fund sufficient to meet the Fund’s daily cash needs. Unitizing the Fund allows for daily trades. The value of a unit reflects the combined market value of

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2.              Significant Accounting Policies (continued)

Valuation of Securities and Income Recognition (continued)

McCormick common stock and the cash investments held by the Fund. At November 30, 2006, 4,056 units were outstanding with a value of approximately $8.19 per unit (2,068 units were outstanding with a value of $8.37 per unit at November 30, 2005). At November 30, 2006, the Fund held 773 shares of McCormick & Company, Incorporated common stock with an aggregate value of $29,931 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $3,283. At November 30, 2005, the Fund held 504 shares of McCormick & Company, Incorporated common stock with an aggregate value of $15,735 and a balance in the Wells Fargo Short-Term Investment Money Market Fund of $1,564.

Purchases and sales of securities are recorded on a trade-date basis. Interest income is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.

Administrative services are provided by the Company which serves as the Plan Sponsor, and McCormick & Company, Incorporated, without cost to the Plan; however, investment advisors’ fees are paid by the Plan.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual amounts could differ from those estimates.

3.              Income Tax Status

The underlying non-standardized prototype plan has received an opinion letter from the Internal Revenue Service (IRS) dated August 30, 2001 stating that the form of the plan is qualified under Section 401 of the Internal Revenue Code, and therefore, the related trust is tax-exempt. In accordance with Revenue Procedure 2006-6 and Announcement 2001-77, the Plan Sponsor has determined that it is eligible to and has chosen to rely on the current IRS prototype plan opinion letter. 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.

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4.              Investments

The Plan’s investments are held in bank-administered trust funds. The custodial trustee of the Plan is Wells Fargo Bank Minnesota N.A. During 2006 and 2005, the Plan’s investments (including investments bought, sold, or held throughout the year) appreciated in fair value by $41,465 and $10,102, respectively, as follows:

 

 

Net Appreciation (Depreciation)
in Fair Value During the

 

 

 

Year Ended November 30

 

 

 

2006

 

2005

 

 

 

 

 

 

 

McCormick & Company, Incorporated — Common stock

 

$

5,078

 

$

(2,080

)

Pooled, common and collective funds

 

2,100

 

1,003

 

Mutual funds

 

34,287

 

11,179

 

Total

 

$

41,465

 

$

10,102

 

 

The Plan’s dividend income for the years ended November 30, 2006 and 2005 was $5,257 and $2,391, respectively.

The fair value of individual investments that represent 5% or more of the Plan’s net assets available for benefits are as follows:

 

 

November 30

 

 

 

2006

 

2005

 

McCormick & Company, Incorporated — Common stock fund

 

$

33,214

 

$

17,299

 

Pooled, common and collective funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

59,573

 

35,826

 

Mutual funds:

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

113,503

 

42,064

 

Fidelity US Bond Index Fund

 

55,248

 

33,295

 

ICM Small Company Portfolio Fund

 

53,281

 

36,629

 

Vanguard Windsor II Fund Inc.

 

34,867

 

21,431

 

Vanguard Target Retirement 2035 #305

 

34,436

 

 

Fidelity Growth & Income Portfolio Fund

 

 

23,792

 

Wells Fargo Strategic Growth Allocation Fund

 

 

23,438

 

 

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5.              Transactions with Parties-in-Interest

Fees paid during the period for legal, accounting and other services rendered by parties-in-interest were based on customary and reasonable rates for such services. The Plan holds investments in common stock of McCormick & Company, Incorporated, the Parent of the Plan Sponsor, and in funds managed by affiliates of Wells Fargo, the custodial trustee of the Plan. Dividends on McCormick & Company, Incorporated common stock and income on investments in Wells Fargo funds are at the same rates as non-affiliated holders of these securities.

6.              Risks and Uncertainties

The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.

 

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Supplemental Schedule




 

The Mojave Foods Corporation 401(k) Retirement Plan

Schedule H, Line 4i—Schedule of Assets (Held at End of Year)

EIN 52-0408290, PN 004
November 30, 2006

Description of Investments

 

 

 

Shares Held

 

Cost**

 

Current Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated

 

 

 

 

 

 

 

Common stock*

 

773

 

 

 

$

29,931

 

 

 

 

 

 

 

 

 

Money Market Fund

 

 

 

 

 

 

 

Wells Fargo Short-Term Investment Money Market Fund*

 

3,283

 

 

 

3,283

 

 

 

 

 

 

 

 

 

Pooled, Common and Collective Funds

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund*

 

1,508

 

 

 

59,573

 

 

 

 

 

 

 

 

 

Mutual Funds

 

 

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

884

 

 

 

113,503

 

ICM Small Company Portfolio Fund

 

1,237

 

 

 

53,281

 

Fidelity US Bond Index Fund

 

5,032

 

 

 

55,248

 

Vanguard Target Retirement 2035 #305

 

2,468

 

 

 

34,436

 

Vanguard Target Retirement Fund #308

 

1,837

 

 

 

19,890

 

Vanguard Windsor II Fund Inc.

 

551

 

 

 

34,867

 

Blackrock Large Cap Core Fund Class 1

 

1,224

 

 

 

17,603

 

Vanguard Target Retirement 2015 #303

 

1,150

 

 

 

14,576

 

American Funds EuroPacific Growth Fund

 

387

 

 

 

18,831

 

Harbor Capital Appreciation Fund

 

422

 

 

 

14,090

 

Vanguard Target Retirement 2025 #304

 

1,068

 

 

 

14,078

 

Vanguard Total International Stock Index

 

106

 

 

 

1,854

 

Vanguard Small Cap Index Fund #548

 

7

 

 

 

240

 

Managers Small Cap fund #416

 

4

 

 

 

64

 

Vanguard Mid Cap Index Fund

 

3

 

 

 

241

 

 

 

 

 

 

 

 

 

Participant loans (7.25%—9.25% annual interest rates)*

 

 

 

 

 

6,529

 

 

 

 

 

 

 

$

492,118

 


*                    Indicates parties-in-interest to the Plan.

**             Historical cost has been omitted, as all investments are participant directed.

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Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the following Registration Statements of McCormick & Company, Inc. of our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2006, our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2006, and our report dated May 22, 2007, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, L.P.  401(k) Savings Plan for the year ended December 31, 2006, all included in this Form 10-K/A of McCormick & Company, Inc.

 

Registration

 

 

Form

 

 

 

Number

 

Date Filed

 S-8

 

333-142020

 

04/11/2007

S-8 POS

 

333-123808

 

04/04/2005

S-8

 

333-104084

 

03/23/2005

S-3

 

333-122366

 

01/28/2005

S-8

 

333-114094

 

03/31/2004

S-8

 

333-104084

 

03/28/2003

S-8

 

333-57590

 

03/26/2001

S-3/A

 

333-46490

 

01/23/2001

S-8

 

333-93231

 

12/21/1999

S-8

 

333-74963

 

03/24/1999

S-3

 

333-47611

 

03/09/1998

S-8

 

33-23727

 

03/21/1997

S-3

 

33-66614

 

07/27/1993

S-3

 

33-40920

 

05/29/1991

S-8

 

33-33724

 

03/02/1990

S-3

 

33-32712

 

12/21/1989

S-3

 

33-24660

 

03/16/1989

S-8

 

33-24658

 

09/15/1988

S-3

 

33-24659

 

09/15/1988

 

 

 

 

 

 

May 29, 2007
Baltimore, Maryland

 

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