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, 2005

 

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 ý 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 ý

 

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 ý 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. ý

 

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 ý 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 ý

 

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, 2005: $333,132,269

 

The aggregate market value of the non-voting common equity held by non-affiliates at May 31, 2005: $4,004,841,587

 

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

 

14,435,607

 

December 31, 2005

Common Stock Non-Voting

 

118,176,901

 

December 31, 2005

 

DOCUMENTS INCORPORATED BY REFERENCE

 

Document

 

Part of 10-K into which incorporated

Annual Report to Stockholders
for Fiscal Year Ended November 30, 2005

 

Part I, Part II

 

 

 

Registrant’s Proxy Statement
dated February 17, 2006

 

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, 2005, 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, 2005 and 2004, the Zatarain’s Partnership L.P. 401(K) Retirement Plan for the years ended December 31, 2005 and 2004, and the Mojave Foods Corporation 401(K) Retirement Plan for the years ended November 30, 2005 and 2004. 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, 2005

 

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 26, 2006

 

By:

/s/ Karen D. Weatherholtz

 

 

Karen D. Weatherholtz

 

Senior Vice President - Human Relations

 

and Plan Administrator

 



 

THE MCCORMICK 401(K) RETIREMENT PLAN

 

Audited Financial Statements and Supplemental Schedule

 

Years ended November 30, 2005 and 2004 with Report of Independent Registered Public Accounting Firm

 



 

The McCormick 401(k) Retirement Plan

 

Audited Financial Statements and Supplemental Schedule

 

Years ended November 30, 2005 and 2004

 

Contents

 

Report of Independent Registered Public Accounting Firm

 

 

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

 

Statements of Changes in Net Assets Available for Benefits

 

 

Notes to Financial Statements

 

 

 

 

 

Supplemental Schedule

 

 

 

 

 

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

 

 

 



 

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, 2005 and 2004, and the related statements of changes in net assets available for benefits for the years ended November 30, 2005, 2004 and 2003. 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, 2005 and 2004, and the changes in its net assets available for benefits for the years ended November 30, 2005, 2004 and 2003, 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, 2005 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.

 

May 25, 2006

Baltimore, Maryland

 

1



 

The McCormick 401(k) Retirement Plan

 

Statements of Net Assets Available for Benefits

 

 

 

November 30

 

 

 

2005

 

2004

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities—at fair value:

 

 

 

 

 

McCormick & Company, Incorporated—common stock fund

 

$

121,296,236

 

$

145,045,917

 

Unaffiliated issuer — Pooled, common and collective funds

 

28,265,367

 

28,303,299

 

Unaffiliated issuer- Mutual funds

 

180,828,165

 

160,066,728

 

Participant loans

 

4,478,320

 

4,143,682

 

Total investments

 

334,868,088

 

337,559,626

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

 

141,906

 

Employees’ contributions

 

 

385,666

 

Accrued interest and dividends

 

60,819

 

1,918

 

Due from funds for securities sold, net

 

150,228

 

338,981

 

Total receivables

 

211,047

 

868,471

 

Total assets

 

335,079,135

 

338,428,097

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Cash overdrafts

 

2,341

 

 

Net assets available for benefits

 

$

335,076,794

 

$

338,428,097

 

 

See accompanying notes.

 

2



 

The McCormick 401(k) Retirement Plan

 

Statements of Changes in Net Assets Available for Benefits

 

 

 

Year ended November 30

 

 

 

2005

 

2004

 

2003

 

Additions

 

 

 

 

 

 

 

Employer contributions:

 

 

 

 

 

 

 

Employer match

 

$

5,639,202

 

$

5,684,049

 

$

6,630,495

 

Employee contributions

 

14,347,450

 

13,265,739

 

14,628,684

 

Earnings from investments:

 

 

 

 

 

 

 

Dividends:

 

 

 

 

 

 

 

McCormick & Company, Incorporated

 

2,469,721

 

2,382,701

 

1,908,973

 

Mutual funds

 

2,423,914

 

1,733,516

 

1,732,392

 

Other, net

 

552,731

 

490,437

 

530,705

 

 

 

25,433,018

 

23,556,442

 

25,431,249

 

 

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

 

 

Participant withdrawals

 

20,283,914

 

24,194,944

 

37,121,818

 

Participant loan fees

 

17,949

 

15,100

 

19,100

 

 

 

20,301,863

 

24,210,044

 

37,140,918

 

 

 

 

 

 

 

 

 

Net realized gain/(loss) on investments

 

7,074,003

 

5,282,926

 

(1,245,746

)

Net unrealized (depreciation)/appreciation of investments

 

(15,556,461

)

41,233,692

 

37,413,888

 

Net (decrease)/increase

 

(3,351,303

)

45,863,016

 

24,458,473

 

 

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

338,428,097

 

292,565,081

 

268,106,608

 

Net assets available for benefits at end of year

 

$

335,076,794

 

$

338,428,097

 

$

292,565,081

 

 

See accompanying notes.

 

3



 

The McCormick 401(k) Retirement Plan

 

Notes to Financial Statements

 

November 30, 2005

 

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



 

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.

 

On August 12, 2003, the Company completed the sale of substantially all of the operating assets of its packaging segment (Packaging) to the Kerr Group, Inc. As a result of the sale transaction a substantial number of Packaging employees were terminated from employment with the Company and hired by the Kerr Group, Inc. Distributions from the Plan relating to the sale of Packaging have been included within participant withdrawals on the statement of changes in net assets in the year ended November 30, 2003.

 

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.

 

5



 

The change in the difference between fair value and the cost of investments is reflected in the statement 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.

 

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, 2005, 4,613,528 units were outstanding with a value of $26.29 per unit (5,336,037 units were outstanding with a value of $27.18 per unit at November 30, 2004).

 

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 (the IRS) 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

 

6



 

taxation. This determination letter covers all amendments to the Plan since its inception and original qualification. 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, the Plan 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 2005, 2004 and 2003, the Plan’s investments (including investments bought, sold, or held throughout the year) (depreciated)/appreciated in fair value by $(8,482,458), $46,516,618 and $36,168,142, respectively, as follows:

 

 

 

Net Appreciation (Depreciation)
in Fair Value During Year
Year ended November 30

 

 

 

2005

 

2004

 

2003

 

McCormick & Company, Incorporated—common stock

 

$

(20,732,458

)

$

31,507,826

 

$

21,208,553

 

Pooled, Common and Collective funds

 

1,094,776

 

1,012,478

 

1,231,489

 

Mutual funds

 

11,155,224

 

13,996,314

 

13,728,100

 

Total

 

$

(8,482,458

)

$

46,516,618

 

$

36,168,142

 

 

The Plan’s dividend income for the years ended November 30, 2005, 2004, and 2003 was $4,893,635, $4,116,217 and $3,641,365, respectively.

 

7



 

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

 

 

 

November 30

 

 

 

2005

 

2004

 

 

 

 

 

 

 

McCormick & Company, Incorporated—common stock fund

 

$

121,296,236

 

$

145,045,917

 

Pooled, Common and Collective Funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

28,265,367

 

28,303,299

 

Mutual Funds:

 

 

 

 

 

Fidelity Magellan Fund

 

39,593,269

 

41,513,791

 

Fidelity Growth & Income Portfolio Fund

 

38,772,837

 

40,233,185

 

American Funds EuroPacific Growth Fund

 

18,849,703

 

12,489,950

 

 

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 McCormick 401(k) Retirement Plan

 

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

 

EIN 52-0408290, PN 004
November 30, 2005

 

Description of
Investments

 

Shares Held

 

Cost**

 

Current Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated:

 

 

 

 

 

 

 

Common Stock Fund *

 

3,861,109

 

 

 

$

120,543,817

 

Money Market Fund:

 

 

 

 

 

 

 

Wells Fargo Short-term Investment Money Market Fund*

 

752,419

 

 

 

752,419

 

Pooled, Common and Collective Funds:

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund *

 

746,613

 

 

 

28,265,367

 

 

 

 

 

 

 

 

 

Mutual Funds Investments:

 

 

 

 

 

 

 

Fidelity Magellan Fund

 

366,570

 

 

 

39,593,269

 

Fidelity Growth & Income Portfolio Fund

 

1,024,381

 

 

 

38,772,837

 

American Funds EuroPacific Growth Fund

 

459,301

 

 

 

18,849,703

 

Fidelity US Bond Index Fund

 

1,522,493

 

 

 

16,519,050

 

UAM ICM Small Company Value

 

326,878

 

 

 

12,633,849

 

Vanguard Windsor II Fund

 

218,611

 

 

 

12,559,228

 

Vanguard S&P 500 Index Fund

 

92,371

 

 

 

10,582,899

 

Managers Small Cap Fund

 

575,204

 

 

 

7,805,515

 

Wells Fargo Advantage Growth Balanced Fund *

 

246,531

 

 

 

7,709,021

 

Harbor Capital Appreciation Fund

 

136,534

 

 

 

4,453,730

 

Wells Fargo Advantage Moderate Balanced Fund *

 

114,207

 

 

 

2,575,372

 

Wells Fargo Advantage Conservative Alloc. Fund *

 

96,245

 

 

 

1,912,382

 

Wells Fargo Advantage Aggressive Alloc. Fund *

 

88,414

 

 

 

1,313,827

 

Vanguard Target Retirement Fund 2015

 

77,788

 

 

 

902,340

 

Merrill Lynch Large Cap Core Fund

 

57,239

 

 

 

787,607

 

Vanguard Target Retirement Fund 2025

 

64,986

 

 

 

772,031

 

Vanguard Target Retirement Fund 2035

 

55,544

 

 

 

685,416

 

Vanguard Target Retirement Income Fund

 

61,211

 

 

 

643,938

 

Vanguard Index Tr Small Cap Stock Fund

 

19,909

 

 

 

573,771

 

Vanguard Mid-Cap Index Fund

 

31,602

 

 

 

555,566

 

Vanguard Total International Stock

 

40,109

 

 

 

555,505

 

Vanguard Target Retirement Fund 2045

 

5,650

 

 

 

71,309

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

4,478,320

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

334,868,088

 

 


*

 

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. and in the related Prospectus (if applicable)

 

 

 

Registration

 

 

 

Form

 

Number

 

Date Filed

 

 

 

 

 

 

 

S-8

 

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

 

 


* Includes amendment filed 6/18/91

 

 

 

 

 

 

of our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2005, our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2005, and our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, LP 401(k) Retirement Plan for the year ended December 31, 2005, all included under Item 4 Financial Statements and Exhibits on this Form 10-K/A, No.1.

 

 

/s/ Ernst & Young LLP

 

 

 

May 25, 2006

 

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

 

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

 

 

DATE:

May 26, 2006

 

By:

/s/ Regina Templet

 

 

Regina Templet

 

Director of Finance – Zatarain’s Brands

 

and Plan Administrator

 



 

THE ZATARAIN’S PARTNERSHIP, LP 401(K) RETIREMENT PLAN

 

Audited Financial Statements and Supplemental Schedule

 

Years ended December 31, 2005 and 2004 with Report of Independent Registered Public Accounting Firm

 



 

The Zatarain’s Partnership, LP 401(k) Retirement Plan

 

Audited Financial Statements and Supplemental Schedule

 

Years ended December 31, 2005 and 2004

 

Contents

 

Report of Independent Registered Public Accounting Firm

 

 

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

 

Statements of Changes in Net Assets Available for Benefits

 

 

Notes to Financial Statements

 

 

 

 

 

Supplemental Schedule

 

 

 

 

 

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

 

 

 



 

Report of Independent Registered Public Accounting Firm

 

Investment Committee

 

McCormick & Company, Incorporated (on behalf of the Zatarain’s Partnership, LP 401 (k) Retirement Plan)

 

We have audited the accompanying statements of net assets available for benefits of Zatarain’s Partnership, LP 401(k) Retirement Plan as of December 31, 2005 and 2004, 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, 2005 and 2004, 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, 2005 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.

 

May 25, 2006

Baltimore, Maryland

 

1



 

The Zatarain’s Partnership, LP 401(k) Retirement Plan

 

Statements of Net Assets Available for Benefits

 

 

 

December 31

 

 

 

2005

 

2004

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities—at fair value:

 

 

 

 

 

McCormick & Company, Incorporated—common stock fund

 

$

24,762

 

$

41,532

 

Unaffiliated issuer- Pooled, common/collective fund

 

890,408

 

727,279

 

Unaffiliated issuer- Mutual funds

 

5,268,227

 

4,804,063

 

Participant loans

 

87,728

 

13,054

 

Total investments

 

6,271,125

 

5,585,928

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

346,672

 

346,564

 

Employees’ contributions

 

28,227

 

26,001

 

Accrued interest and dividends

 

411

 

164

 

Total receivables

 

375,310

 

372,729

 

Total assets

 

6,646,435

 

5,958,657

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Due to funds for securities purchased

 

7,414

 

 

Net assets available for benefits

 

$

6,639,021

 

$

5,958,657

 

 

See accompanying notes.

 

2



 

The Zatarain’s Partnership, LP 401(k) Retirement Plan

 

Statements of Changes in Net Assets Available for Benefits

 

 

 

Year ended December 31

 

 

 

2005

 

2004

 

Additions

 

 

 

 

 

Employer contributions:

 

 

 

 

 

Employer contributions

 

$

432,317

 

$

435,442

 

Employee contributions

 

405,569

 

404,604

 

Earnings from investments:

 

 

 

 

 

Dividends:

 

 

 

 

 

McCormick & Company, Incorporated

 

765

 

460

 

Mutual funds

 

47,538

 

34,842

 

Other, net

 

26,093

 

19,353

 

 

 

912,282

 

894,701

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

Participant withdrawals

 

778,114

 

144,756

 

Participant loan fees

 

16,663

 

12,643

 

 

 

794,777

 

157,399

 

 

 

 

 

 

 

Net realized gain on investments

 

349,248

 

50,537

 

Net unrealized appreciation of investments

 

213,611

 

418,085

 

Net increase

 

680,364

 

1,205,924

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

5,958,657

 

4,752,733

 

Net assets available for benefits at end of year

 

$

6,639,021

 

$

5,958,657

 

 

See accompanying notes.

 

3



 

The Zatarain’s Partnership, LP 401(k) Retirement Plan

 

Notes to Financial Statements

 

December 31, 2005

 

1.     Description of the Plan.

 

The Zatarain’s Partnership, L.P. 401(k) Retirement 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, and 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 2005 and 2004, the Company made profit sharing contributions of $340,000 and $340,000, respectively.

 

Participants are immediately vested in their contributions and 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, 2005 and 2004 were $5,916 and $10,336, 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 determines the interest rate for loans based on current market rates.

 

4



 

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 $5,000 may elect to leave the account balance invested in the Plan, 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. Upon termination of service, a participant with an account balance less than $5,000 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. 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 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 statement of changes in net asset available for benefits as net unrealized appreciation or depreciation of investments.

 

5



 

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) 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, 2005, 2,472 units were outstanding with a value of approximately $10.02 per unit (4,496 units were outstanding with a value of approximately $9.24 per unit at December 31, 2004).

 

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 is a prototype plan. The underlying standardized prototype plan has received an opinion letter from the Internal Revenue Service dated August 30, 2001, stating that the written form of the underlying prototype document is qualified under Section 401(a) of the Internal Revenue Code (the “Code”), and that any employer adopting this form of the plan will be considered to have a plan qualified under Section 401(a) of the Code.

 

6



 

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.

 

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 2005 and 2004, the Plan’s investments (including investments bought, sold, or held throughout the year) (depreciated)/appreciated in fair value by $562,859 and $468,622 as follows:

 

 

 

Net Appreciation
(Depreciation)
in Fair Value During Year
Year ended December 31

 

 

 

2005

 

2004

 

 

 

 

 

 

 

McCormick & Company, Incorporated—common stock

 

$

(7,514

)

$

4,664

 

Pooled, Common and Collective funds

 

34,599

 

25,792

 

Mutual funds

 

535,814

 

438,166

 

Total

 

$

562,859

 

$

468,622

 

 

The Plan’s dividend income for the years ended December 31, 2005 and 2004 was $48,303 and $35,302, respectively.

 

7



 

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

 

 

 

December 31

 

 

 

2005

 

2004

 

Pooled, Common and Collective Funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

$

890,408

 

$

727,279

 

Mutual Funds:

 

 

 

 

 

Harbor Capital Appreciation Fund

 

1,538,248

 

1,437,128

 

American Funds EuroPacific Growth Fund

 

1,248,923

 

1,154,085

 

Wells Fargo Growth Balanced Fund

 

1,012,384

 

956,248

 

Vanguard S&P 500 Index Fund

 

670,304

 

735,313

 

 

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. 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, LP 401(k) Retirement Plan

 

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

 

EIN 52-0408290, PN 004
December 31, 2005

 

Description of Investments

 

Shares Held

 

Cost**

 

Current
Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated:

 

 

 

 

 

 

 

Common stock*

 

745

 

 

 

$

23,035

 

 

 

 

 

 

 

 

 

Money Market Fund:

 

 

 

 

 

 

 

Wells Fargo Short-term Investment Money Market Fund*

 

1,727

 

 

 

1,727

 

 

 

 

 

 

 

 

 

Pooled, Common and Collective Funds:

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund*

 

23,432

 

 

 

890,408

 

 

 

 

 

 

 

 

 

Mutual Funds Investments:

 

 

 

 

 

 

 

Harbor Capital Appreciation Fund

 

47,099

 

 

 

1,538,248

 

American Funds EuroPacific Growth Fund

 

30,387

 

 

 

1,248,923

 

Wells Fargo Growth Balanced Fund*

 

34,754

 

 

 

1,012,384

 

Vanguard S&P 500 Index Fund

 

5,879

 

 

 

670,304

 

Vanguard Windsor II Fund

 

5,033

 

 

 

279,939

 

ICM Small Company Portfolio Fund

 

4,334

 

 

 

157,026

 

Wells Fargo Moderate Balanced Fund*

 

7,131

 

 

 

149,742

 

Managers Small-Cap Fund

 

5,607

 

 

 

76,532

 

Fidelity U.S. Bond Index

 

4,998

 

 

 

54,477

 

Vanguard Target Retirement

 

2,772

 

 

 

31,765

 

Fidelity Magellan Fund

 

197

 

 

 

20,966

 

Wells Fargo Aggressive Allocation Fund*

 

1,036

 

 

 

14,840

 

Merrell Lynch Large Cap Core Fund

 

252

 

 

 

3,325

 

Vanguard Index Tr Small Cap Stock Fund

 

117

 

 

 

3,325

 

Vanguard Total International Stock

 

233

 

 

 

3,325

 

Fidelity Growth & Income Portfolio Fund

 

76

 

 

 

2,618

 

Wells Fargo Conservative Allocation Fund*

 

26

 

 

 

488

 

Participant loans (5.00% – 8.00% annual interest rates)*

 

 

 

 

87,728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

6,271,125

 

 


*

 

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. and in the related Prospectus (if applicable)

 

 

 

Registration

 

 

 

Form

 

Number

 

Date Filed

 

 

 

 

 

 

 

S-8

 

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

 

 


* Includes amendment filed 6/18/91

 

 

 

 

 

 

of our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2005, our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2005, and our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, LP 401(k) Retirement Plan for the year ended December 31, 2005, all included under Item 4 Financial Statements and Exhibits on this Form 10-K/A, No.1.

 

 

/s/ Ernst & Young LLP

 

 

 

May 25, 2006

 

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 MOJAVE FOODS CORPORATION 401(K) RETIREMENT PLAN

 

 

 

 

DATE:

May 26, 2006

 

By:

/s/ Craig Berger

 

 

Craig Berger

 

Director of Finance – Mojave Foods Corporation

 

and Plan Administrator

 



 

THE MOJAVE FOODS CORPORATION 401(K) RETIREMENT PLAN

 

Audited Financial Statements and Supplemental Schedule

 

Years ended November 30, 2005 and 2004 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, 2005 and 2004

 

Contents

 

Report of Independent Registered Public Accounting Firm

 

 

 

 

 

Audited Financial Statements

 

 

 

 

 

Statements of Net Assets Available for Benefits

 

 

Statements of Changes in Net Assets Available for Benefits

 

 

Notes to Financial Statements

 

 

 

 

 

Supplemental Schedule

 

 

 

 

 

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

 

 

 



 

Report of Independent Registered Public Accounting Firm

 

Investment Committee
Mojave Foods, Incorporated

 

We have audited the accompanying statements of net assets available for benefits of The Mojave Foods Corp. 401(k) Retirement Plan as of November 30, 2005 and 2004, 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, 2005 and 2004, and the changes in its net assets available for benefits for 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, 2005 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.

 

May 25, 2006

Baltimore, Maryland

 

 

1



 

The Mojave Foods Corporation 401(k) Retirement Plan

 

Statements of Net Assets Available for Benefits

 

 

 

November 30

 

 

 

2005

 

2004

 

Assets

 

 

 

 

 

Investments:

 

 

 

 

 

Securities—at fair value:

 

 

 

 

 

McCormick & Company, Incorporated — common stock fund

 

$

17,299

 

$

7,947

 

Unaffiliated issuer — Pooled, common and collective funds

 

35,826

 

15,823

 

Unaffiliated issuer- Mutual funds

 

235,509

 

110,997

 

Participant loans

 

2,213

 

 

Total investments

 

290,847

 

134,767

 

 

 

 

 

 

 

Receivables:

 

 

 

 

 

Employer’s contribution

 

25,442

 

7,955

 

Employees’ contributions

 

2,166

 

2,040

 

Accrued interest and dividends

 

120

 

1

 

Total receivables

 

27,728

 

9,996

 

Total assets

 

318,575

 

144,763

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Due to funds for securities purchased

 

1,977

 

 

Net assets available for benefits

 

$

316,598

 

$

144,763

 

 

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

 

 

 

2005

 

2004

 

Additions

 

 

 

 

 

Contributions:

 

 

 

 

 

Employer contributions

 

$

25,442

 

$

7,955

 

Employee contributions

 

141,101

 

90,108

 

Employee rollover contributions

 

 

40,682

 

Earnings from investments:

 

 

 

 

 

Dividends:

 

 

 

 

 

McCormick & Company, Incorporated

 

266

 

35

 

Mutual funds

 

2,125

 

278

 

Other, net

 

567

 

 

 

 

169,501

 

139,058

 

 

 

 

 

 

 

Deductions

 

 

 

 

 

Participant withdrawals

 

7,618

 

615

 

Participant Loan Fees

 

150

 

 

 

 

7,768

 

615

 

 

 

 

 

 

 

Net realized gain on investments

 

3,686

 

47

 

Net unrealized appreciation of investments

 

6,416

 

6,273

 

Net increase

 

171,835

 

144,763

 

 

 

 

 

 

 

Net assets available for benefits at beginning of year

 

144,763

 

 

Net assets available for benefits at end of year

 

$

316,598

 

$

144,763

 

 

See accompanying notes.

 

3



 

The Mojave Foods Corporation 401(k) Retirement Plan

 

Notes to Financial Statements

 

November 30, 2005

 

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. Participants are immediately vested in Company contributions for which they are eligible on the last day of the plan year. During the period December 1, 2004 through November 30, 2005, the Company made a discretionary matching contribution of 20% of eligible employee pre-tax contributions. During the period April 1, 2004 (inception) through November 30, 2004, the Company made a discretionary matching contribution of 10% of eligible employee pre-tax contributions. Participants are immediately vested in their contributions, in earnings on their 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 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



 

Upon termination of service, a participant with an account balance greater than $5,000 may elect to leave the account balance invested in the Plan, 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. Upon termination of service, a participant with an account balance less than $5,000 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. 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 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 statement 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



 

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, 2005, 2,068 units were outstanding with a value of approximately $8.37 per unit (822 units were outstanding with a value of $9.67 per unit at November 30, 2004).

 

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 is a prototype plan. The underlying standardized prototype plan has received an opinion letter from the Internal Revenue Service dated August 30, 2001, stating that the written form of the underlying prototype document is qualified under Section 401(a) of the Internal Revenue Code (the “Code”), and that any employer adopting this form of the plan will be considered to have a plan qualified under Section 401(a) of the Code. 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.

 

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 2005 and 2004, the Plan’s investments (including investments bought, sold, or held throughout the year) (depreciated)/appreciated in fair value by $10,102 and $6,320, respectively, as follows:

 

 

 

Net Appreciation
(Depreciation)
in Fair Value During Year
Year ended November 30

 

 

 

2005

 

2004

 

 

 

 

 

 

 

McCormick & Company, Incorporated—common stock

 

$

(2,080

)

$

339

 

Pooled, Common and Collective funds

 

1,003

 

188

 

Mutual funds

 

11,179

 

5,793

 

Total

 

$

10,102

 

$

6,320

 

 

The Plan’s dividend income for the years ended November 30, 2005 and 2004 was $2,391 and $313, respectively.

 

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

 

 

 

November 30

 

 

 

2005

 

2004

 

McCormick & Company, Incorporated—common stock fund

 

$

17,299

 

$

7,947

 

Pooled, Common and Collective Funds:

 

 

 

 

 

Wells Fargo Stable Return Fund

 

35,826

 

15,823

 

Mutual Funds:

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

42,064

 

15,830

 

ICM Small Company Portfolio Fund

 

36,629

 

21,924

 

Fidelity US Bond Index Fund

 

33,295

 

12,853

 

Fidelity Growth & Income Portfolio Fund

 

23,792

 

16,025

 

Wells Fargo Strategic Growth Allocation Fund

 

23,438

 

16,376

 

Vanguard Windsor II Fund Inc.

 

21,431

 

8,040

 

 

7



 

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.

 

8



 

Supplemental Schedule

 



 

The Mojave 401(k) Retirement Plan

 

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

 

EIN 52-0408290, PN 004
November 30, 2005

 

Description of Investments

 

Shares Held

 

Cost**

 

Current
Value

 

 

 

 

 

 

 

 

 

McCormick & Company, Incorporated:

 

 

 

 

 

 

 

Common stock *

 

504

 

 

 

$

15,735

 

 

 

 

 

 

 

 

 

Money Market Fund:

 

 

 

 

 

 

 

Wells Fargo Short-term Investment Money Market Fund *

 

1,564

 

 

 

1,564

 

 

 

 

 

 

 

 

 

Pooled, Common and Collective Funds:

 

 

 

 

 

 

 

Wells Fargo Stable Return Fund *

 

946

 

 

 

35,826

 

 

 

 

 

 

 

 

 

Mutual Funds Investments:

 

 

 

 

 

 

 

Vanguard S&P 500 Index Fund

 

367

 

 

 

42,064

 

ICM Small Company Portfolio Fund

 

948

 

 

 

36,629

 

Fidelity US Bond Index Fund

 

3,069

 

 

 

33,295

 

Fidelity Growth & Income Portfolio Fund

 

629

 

 

 

23,792

 

Wells Fargo Strategic Growth Allocation Fund *

 

1,577

 

 

 

23,438

 

Vanguard Windsor II Fund Inc.

 

373

 

 

 

21,431

 

Wells Fargo Growth Balanced Fund *

 

414

 

 

 

12,941

 

Wells Fargo Strategic Income Fund *

 

567

 

 

 

11,271

 

American Funds EuroPacific Growth Fund

 

211

 

 

 

8,661

 

Harbor Capital Appreciation Fund

 

235

 

 

 

7,659

 

Wells Fargo Moderate Balanced Fund *

 

318

 

 

 

7,167

 

Fidelity Magellan Fund

 

66

 

 

 

7,161

 

 

 

 

 

 

 

 

 

Participant loans (7.00% – 7.25% annual interest rates) *

 

 

 

 

 

2,213

 

 

 

 

 

 

 

$

290,847

 

 


*

 

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. and in the related Prospectus (if applicable)

 

 

 

Registration

 

 

 

Form

 

Number

 

Date Filed

 

 

 

 

 

 

 

S-8

 

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

 

 


* Includes amendment filed 6/18/91

 

 

 

 

 

 

of our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the McCormick 401(k) Retirement Plan for the year ended November 30, 2005, our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Mojave Foods Corporation 401(k) Retirement Plan for the year ended November 30, 2005, and our report dated May 25, 2006, with respect to the financial statements and supplemental schedule of the Zatarain’s Partnership, LP 401(k) Retirement Plan for the year ended December 31, 2005, all included under Item 4 Financial Statements and Exhibits on this Form 10-K/A, No.1.

 

 

/s/ Ernst & Young LLP

 

 

 

May 25, 2006

 

Baltimore, Maryland

 

 

 

10