MCCORMICK & COMPANY 2004 ANNUAL REPORT notes to consolidated financial statements As of November 30, 2004 and 2003, the Company tested for impairment of goodwill and non-amortizable intangibles using discounted cash flow models. As a result of these tests, the Company was not required to recognize any impairment.  The following table displays the intangible assets that continue to be subject to amortization and intangible assets not subject to amortization as of November 30, 2004 and 2003: 2004 2003 Gross Gross carrying Accumulated carrying Accumulated (millions) amount amortization amount amortization Amortizable intangible assets $ .6 $ .3 $ .4 $ .2 Unamortizable intangible assets: Brand name 106.4 – – – Goodwill 793.7 80.8 784.0 75.3 Trademark 9.7 1.2 9.1 1.1 909.8 82.0 793.1 76.4 Total goodwill and intangible  assets $910.4 $ 82.3 $ 793.5 $ 76.6 The changes in the carrying amount of goodwill by segment for the years ended November 30, 2004 and 2003 are  as follows: 2004 2003 (millions) Consumer Industrial Consumer Industrial Beginning of year $664.9 $ 43.8 $ 458.2 $ 40.5 Goodwill acquired 59.4 –  176.2  –  Goodwill disposed – – (.4) – Goodwill transferred (106.4) – –  – Purchase price adjustment – – (50.0) –  Foreign currency fluctuations 47.0 4.2 80.9 3.3 End of year $664.9 $ 48.0 $ 664.9 $ 43.8 The Zatarain’s brand was transferred from goodwill to other intangibles in 2004 when the purchase price allocation was completed. The excess of the purchase price over net tangi- ble assets recorded as part of the Silvo acquisition in 2004 above is still subject to finalization of purchase price allocation. The table above excludes $0.7 million of goodwill that was disposed of in connection with the sale of Packaging in 2003.  6. INVESTMENTS IN AFFILIATES Summarized year-end information from the financial state- ments of unconsolidated affiliates representing 100% of the businesses follows: (millions) 2004 2003 2002 Net sales $428.3 $403.0 $422.1 Gross profit 157.3 159.6 187.2 Net income 28.8 32.6 44.9 Current assets $189.2 $168.2 $165.4 Noncurrent assets 94.1 101.7 106.5 Current liabilities 97.4 100.7 83.0 Noncurrent liabilities 23.4 25.5 39.4 The Company’s share of undistributed earnings of the affil- iates was $50.3 million at November 30, 2004. Royalty income from unconsolidated affiliates was $9.7 million, $9.3 million and $10.0 million for 2004, 2003, and 2002, respectively. 7. FINANCING ARRANGEMENTS The Company’s outstanding debt is as follows: (millions) 2004 2003 Short-term borrowings Commercial paper  (1) $134.4 $139.6 Other 5.8 14.7 $140.2 $154.3 Weighted-average interest rate  of short-term borrowings at year-end 2.12% 1.51% Long-term debt  5.78% - 7.77% medium-term notes  due 2004 to 2006 $ 79.0 $ 95.0 6.40% - 6.80% medium-term notes due 2006 to 2008  (2) (3) 298.4 298.5 3.35% medium-term notes due 2009  (4) 48.6 – 7.63% - 8.12% medium-term notes due 2024 55.0 55.0 Other 17.0 16.8 498.0 465.3  Less current portion 33.0 16.7 $465.0 $448.6 Maturities of long-term debt during the years subsequent to November 30, 2005 are as follows (in millions): 2006 – $196.1 2008 – $149.9 2007 – $0.3 2009 – $49.0 Thereafter – $69.7 On April 1, 2004, the Company issued $50 million of medium-term notes under its existing $375 million shelf regis- tration statement filed with the Securities and Exchange Commission in January 2001. The $50 million of medium-term notes mature on April 15, 2009 and pay interest semi-annu- ally at a rate of 3.35%. The proceeds from the new issuance were used to pay off commercial paper debt.  The Company has available credit facilities with domestic and foreign banks for various purposes. The amount of unused credit facilities at November 30, 2004 was $466.1 million, of (1) The variable interest rate on $75 million of commercial paper is hedged by interest rate swaps through 2011. Net interest payments are fixed at 6.35% during this period. (2) Interest rate swaps, settled upon the issuance of the medium-term notes, effectively fixed the interest rate on $294 million of the notes at a weighted average fixed rate of 7.62%. (3) The fixed interest rate on $100 million of 6.40% medium-term notes due  in 2006 is effectively converted to a variable rate by interest rate swaps through 2006. Net interest payments are based on LIBOR plus 3.595% during this period. (4) The fixed interest rate on $50 million of 3.35% medium-term notes due  in 2009 is effectively converted to a variable rate by interest rate swaps through 2009. Net interest payments are based on LIBOR minus .21%  during this period. 46