McCORMICK
McCORMICK & COMPANY 2007 ANNUAL REPORT
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  NOTES TO CONSOLIDATED FINANCIAL STATEMENTS  
 
    Included in accumulated other comprehensive income at November 30, 2007 is $112.5 million ($74.3 million net of tax) related to net unrecognized actuarial losses and unrecognized prior service credit that have not yet been recognized in net periodic pension or postretirement benefit cost. We expect to recognize $6.2 million ($4.1 million net of tax) of net actuarial losses and prior service credit in net periodic pension and postretirement benefit cost during 2008.

Defined Benefit Pension Plans
A September 30 measurement date is used to value plan assets and obligations for all of our defined benefit pension plans.
     The significant assumptions used to determine benefit obligations are as follows:

    The expected long-term rate of return on assets assumption is based on weighted-average expected returns for each asset class. Expected returns reflect a combination of historical performance analysis and forward-looking views of the financial markets, and include input from actuaries, investment service firms and investment managers.		  

    Our pension expense was as follows:
    The $6.8 million expense for special termination benefits in 2006 was a result of the closing of our manufacturing facility in Salinas, California and our voluntary separation program.
    Rollforwards of the benefit obligation, fair value of plan assets and a reconciliation of the pension plans’ funded status at the measurement date, September 30, follow:

 

 

 

 
 
McCormick & Company 2007 Annual Report        51
  
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