How do you interpret consumer — business combination integration related costs?

High integration costs may signal complex organizational changes, but are expected to lead to future operational efficiencies.

How does consumer — business combination integration related costs compare across companies?

Widely reported by companies in the consumer goods sector; peers often break these out to show 'underlying' operating performance.

McCormick & Company, Incorporated MKC Consumer — Business Combination Integration Related Costs

Discontinued — last reported Q3 '17

Similar metrics at other companies

TSNCorporate And Other — Business Combination Integration Related Costs

$1M-90.0%

FISOperating Segments — Business Combination Integration Related Costs

1,600,000,000%-600,000,000pp

WCCCorporate Segment — Business Combination, Integration Related Costs

$10M-34.2%

DOWCorporate Segment — Business Combination, Integration Related Costs

$65M-34.3%

FISCorporate and other — Business Combination, Integration Related Costs

$140M-36.7%

MTZ

MTZCorporate Segment — Business combination, integration related costs

$3.8M—

Other financials

Income statement

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Revenue$1.9B+16.7%

Gross profit$708.9M+17.4%

Operating income$227.5M+1.0%

Net income$1.0B+526%

EPS (diluted)$3.77+528%

Balance sheet

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Cash & equivalents$177.7M+72.9%

Total debt$4.9B+38.3%

Total equity$7.0B+28.7%

Total assets$16.3B+26.7%

Cash flow

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Operating cash flow$50.9M-55.9%

CapEx$32.5M-12.4%

Free cash flow$18.4M-76.5%

Valuation

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Market cap$12.54B-13.9%

Enterprise value$17.28B-7.0%

P/E7.6×-10.9×

P/S1.8×-0.4×

Profitability

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Gross margin37.9%-0.6pp

Operating margin15.1%-0.5pp

Net margin23.1%+11.4pp

FCF margin9.6%0.0pp

Returns & leverage

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Return on equity26.5%+11.8pp

Debt / equity0.7×0.0×

Current ratio0.8×+0.1×

Where this comes from

Reported directly by McCormick & Company, Incorporated in its filing.

Tagged under the XBRL concept us-gaap:BusinessCombinationIntegrationRelatedCosts.

The official record: McCormick & Company, Incorporated’s 10-Q, filed September 28, 2017, on SEC EDGAR. View the filing →

Questions, answered.

What does consumer — business combination integration related costs mean?: Costs spent on merging an acquired company's operations with the existing business.
How do you interpret consumer — business combination integration related costs?: High integration costs may signal complex organizational changes, but are expected to lead to future operational efficiencies.
How does consumer — business combination integration related costs compare across companies?: Widely reported by companies in the consumer goods sector; peers often break these out to show 'underlying' operating performance.