McCORMICK & COMPANY 2007 ANNUAL REPORT
McCORMICK & COMPANY 2007 ANNUAL REPORT |
| NOTES TO CONSOLIDATED FINANCIAL STATEMENTS | ||||
| We measure segment performance based on operating income excluding restructuring charges from our restructuring programs as this activity is managed separately from the business segment. Although the segments are managed separately due to their distinct distribution channels and marketing strategies, manufacturing and warehousing are often integrated to maximize cost efficiencies. We do not segregate jointly utilized assets by individual segment for internal reporting, evaluating performance or allocating capital. Asset-related information has been disclosed in aggregate. | We have a customer in our industrial segment which is
10% of consolidated sales. Accounting policies for measuring segment operating income and assets are substantially consistent with those described in note 1, “Summary of Significant Accounting Policies.” Because of manufacturing integration for certain products within the segments, products are not sold from one segment to another but rather inventory is transferred at cost. Intersegment sales are not material. Corporate assets include cash, deferred taxes, certain investments and fixed assets. |
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A reconciliation of operating income excluding restructuring
charges (which we use to measure segment
profitability) to operating income is as follows:
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Geographic Areas |
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McCormick & Company 2007 Annual Report 58 |
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