McCormick offered 3,300 employees lumpsum payment on pension in September

The vested benefit obligation associated with these former employees is approximately $125M, equivalent to about 20% of the company's benefit obligation for this U.S. plan. Eligible participants have until early August to make their election. If the percentage of benefits distributed through the lump sum option exceeds approximately 40% of the benefit obligation associated with these former employees, McCormick anticipates recognizing a one-time, non-cash settlement charge of approximately $25M-$45M in the fourth quarter of 2013. The company has not included this potential charge in its earnings outlook for 2013. The lump sum payments will be funded from existing pension plan assets.