McCormick & Company, Incorporated
Q3 2021 Earnings Call Transcript

Published:

  • Disclaimer*:
    This transcript is designed to be used alongside the freely available audio recording on this page. Timestamps within the transcript are designed to help you navigate the audio should the corresponding text be unclear. The machine-assisted output provided is partly edited and is designed as a guide.
  • Operator:
    00
  • Lawrence Kurzius:
    01
  • Mike Smith:
    21
  • Lawrence Kurzius:
    35
  • Operator:
    36
  • Andrew Lazar:
    36
  • Lawrence Kurzius:
    36
  • Mike Smith:
    36
  • Andrew Lazar:
    36
  • Lawrence Kurzius:
    37
  • Andrew Lazar:
    41
  • Lawrence Kurzius:
    41
  • Mike Smith:
    43
  • Andrew Lazar:
    43
  • Operator:
    43
  • Ken Goldman:
    43
  • Lawrence Kurzius:
    44
  • Mike Smith:
    45
  • Ken Goldman:
    45
  • Operator:
    45
  • Robert Moskow:
    45
  • Lawrence Kurzius:
    46
  • Robert Moskow:
    47
  • Lawrence Kurzius:
    48
  • Robert Moskow:
    48
  • Lawrence Kurzius:
    48
  • Robert Moskow:
    48
  • Operator:
    48
  • Adam Samuelson:
    48
  • Lawrence Kurzius:
    48
  • Mike Smith:
    48
  • Adam Samuelson:
    48
  • Mike Smith:
    Hey, Adam, this is Mike. I'll take this first and Lawrence may add few comments. I mean, like we said on the call today, you're right, it's -- eighty percent to ninety percent of this is really logistics, transportation, packaging, things like that. So we have a really good line of sight to our commodity costs in the fourth quarter, obviously. 49
  • Lawrence Kurzius:
    And I'll just add to that, the cost increase that we're talking about are -- these are not things that are unique to McCormick at all. The biggest increases has been on packaged materials and on transportation costs followed by raw material and labor. And I'd say that we look lot like everybody else in that regard.
  • Adam Samuelson:
    51
  • Lawrence Kurzius:
    52
  • Mike Smith:
    53
  • Lawrence Kurzius:
    53
  • Adam Samuelson:
    54
  • Operator:
    54
  • Chris Growe:
    54
  • Lawrence Kurzius:
    54
  • Chris Growe:
    54
  • Lawrence Kurzius:
    54
  • Chris Growe:
    55
  • Lawrence Kurzius:
    55
  • Mike Smith:
  • w:
  • Mike Smith:
    56
  • Chris Growe:
    56
  • Lawrence Kurzius:
    56
  • Chris Growe:
    58
  • Operator:
    58
  • Steve Powers:
    59
  • Mike Smith:
    59
  • Steve Powers:
    60
  • Lawrence Kurzius:
    Yes, it's a great question. And obviously, we talk about this actually at our 10-Q disclosure. Now we talk about kind of a underlying rate of twenty four percent to twenty five percent based on country mix, the underlying tax rates that we have and our expectations for the year. And generally what happens and what happened this quarter, there are discrete either programs or tax team runs, there are acquisitions in the past that we clean up some of the assumptions or estimates or there's statute to limitations that drop off where we’ve tended to realize some discrete tax benefits. So it’s exactly what happened this quarter, but under the current tax regime, with Guilty and Citi and all these things globally, it's twenty four percent to twenty five percent. Obviously, we're all waiting to see what happens in Washington to see what future rates are. And I’d say our cash taxes are pretty close to that too.
  • Steve Powers:
    61
  • Operator:
    61
  • Rob Dickerson:
    61
  • Lawrence Kurzius:
    62
  • Rob Dickerson:
    63
  • Lawrence Kurzius:
    64
  • Rob Dickerson:
    65
  • Operator:
    65
  • Robert Moskow:
    65
  • Lawrence Kurzius:
    66
  • Robert Moskow:
    66
  • Operator:
    66
  • Lawrence Kurzius:
    66
  • Operator:
    67

Other McCormick & Company, Incorporated earnings call transcripts: