MCCORMICK & COMPANY 2004 ANNUAL REPORT See Notes to Consolidated Financial Statements, pages 41-55. 40 consolidated statement of shareholders’ equity Common Accumulated Common Stock Common Other Total Stock Non-Voting Stock Retained Comprehensive Shareholders’ (millions) Shares Shares Amount Earnings Income (Loss) Equity Balance, November 30, 2001 15.8 122.7 $ 202.9 $ 344.1 $ (83.9) $463.1 Comprehensive income: Net income 179.8 179.8 Currency translation adjustments 56.9 56.9 Change in realized and unrealized gains  on derivative financial instruments, net of tax of $1.0 (1.5) (1.5) Minimum pension liability adjustment, net of tax of $40.1 (69.1) (69.1) Net change in unrealized gain on pension  assets, net of tax of $0.2 .3 .3 Comprehensive income 166.4 Dividends (58.6) (58.6) Shares purchased and retired (.3) (.1) (1.2) (5.6) (6.8) Shares issued, including tax benefit of $3.3 1.4 .5 29.0 (.8) 28.2 Equal exchange (1.3) 1.3 – Balance, November 30, 2002 15.6 124.4 $230.7 $458.9 $ (97.3) $592.3 Comprehensive income: Net income 210.8 210.8 Currency translation adjustments,  net of tax of $1.1 130.7 130.7 Change in realized and unrealized gains  on derivative financial instruments,  net of tax of $0.5 .2 .2 Minimum pension liability adjustment,  net of tax of $6.4 (14.4) (14.4) Net change in unrealized gain on pension assets, net of tax of $0.5 .8 .8 Comprehensive income 328.1 Dividends (83.3) (83.3) Shares purchased and retired (.1) (4.4) (6.8) (113.8) (120.6) Shares issued, including tax benefit of $6.4 1.1 .6 37.0 37.0 Stock based compensation 1.7 1.7 Equal exchange (1.3) 1.3 – Balance, November 30, 2003 15.3 121.9 $262.6 $472.6 $ 20.0 $755.2 Comprehensive income: Net income 214.5 214.5 Currency translation adjustments 92.9 92.9 Change in realized and unrealized gains  on derivative financial instruments,  net of tax of $0.8 1.5 1.5 Minimum pension liability adjustment,  net of tax of $2.8 4.4 4.4 Net change in unrealized gain on pension  assets, net of tax of $0.5 .8 .8 Comprehensive income 314.1 Dividends (79.2) (79.2) Shares purchased and retired (.8) (4.7) (13.0) (173.8) (186.8) Shares issued, including tax benefit of $20.6 2.8 1.0 86.4 86.4 Equal exchange (2.7) 2.7 – Balance, November 30, 2004 14.6 120.9 $ 336.0 $ 434.1 $ 119.6 $889.7