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McCORMICK & COMPANY 2007 ANNUAL REPORT

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

    In 2008, we expect to contribute approximately $2.5 million to our U.S. pension plans, including no contributions to our qualified plan as we are currently overfunded and $2.5 million to our plan that has assets held in a Rabbi Trust. In addition, we expect to contribute approximately $13 million to our international pension plans in 2008.

401(k) Retirement Plans
For the U.S. McCormick 401(k) Retirement Plan, we match 100% of the participant’s contribution up to the first 3% of the participant’s salary, and 50% of the next 2% of a participant’s salary. Certain of our U.S. subsidiaries sponsor separate 401(k) retirement plans. Our contributions charged to expense under all 401(k) Retirement Plans were $5.7 million, $5.6 million and $5.7 million in 2007, 2006 and 2005, respectively.
     At the participant’s election, 401(k) Retirement Plans held 3.0 million shares, with a fair value of $113.3 million, of our stock at November 30, 2007. Dividends paid on these shares in 2007 were $2.5 million.

Postretirement Benefits Other Than Pensions
We currently provide postretirement medical and life insurance benefits to certain U.S. employees who were covered under the active employees’ plan and retire after age 55 with at least 10 years of service (earned after age 45). The benefits provided under these plans are based primarily on age at date of retirement. These benefits are not pre-funded but paid as incurred.
    Our other postretirement benefit expense follows:

    Rollforwards of the benefit obligation, fair value of plan assets and a reconciliation of the plans’ funded status at November 30, the measurement date, follow:

    Estimated future benefit payments (net of employee contributions) for the next 10 fiscal years are as follows:

    The assumed discount rate was 6.3% and 5.9% for 2007 and 2006, respectively.
     For 2008, the assumed annual rate of increase in the cost of covered health care benefits is 9.8% (8.0% last year). It is assumed to decrease gradually to 5.0% in the year 2014 (5.0% by 2011 last year) and remain at that level thereafter. Changing the assumed health care cost trend would have the following effect:

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