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

High integration costs are expected following acquisitions, but sustained high levels may suggest difficulties in achieving projected operational synergies.

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

Comparable to post-merger integration or restructuring charges reported by competitors in the food manufacturing sector.

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

Discontinued — last reported Q3 '17

Similar metrics at other companies

SWKIndustrial — Business Combination Integration Related Costs

$5M—

IES

IESCCommercial Industrial Member Domain — Business Combination Integration Related Costs

-$25K—

SWKSecurities Industry — Business Combination Integration Related Costs

$9.5M—

DDIndustrial Intermediates And Infrastructure — Business Combination Integration And Separation Related Costs Including Adjustments

$0—

TSNCorporate And Other — Business Combination Integration Related Costs

$1M-90.0%

DOWIndustrial Intermediates & Infrastructure — Business Combination, Integration Related Costs

$0—

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 industrial — business combination integration related costs mean?: Costs incurred to merge and align newly acquired businesses with existing Industrial operations.
How do you interpret industrial — business combination integration related costs?: High integration costs are expected following acquisitions, but sustained high levels may suggest difficulties in achieving projected operational synergies.
How does industrial — business combination integration related costs compare across companies?: Comparable to post-merger integration or restructuring charges reported by competitors in the food manufacturing sector.