☒ | QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Ohio | 34-0538550 | |||||||||||||||||||||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||||||||||||||||||||
One Strawberry Lane | ||||||||||||||||||||||||||||||||
Orrville, | Ohio | 44667-0280 | ||||||||||||||||||||||||||||||
(Address of principal executive offices) | (Zip code) | |||||||||||||||||||||||||||||||
Registrant’s telephone number, including area code: | (330) | 682-3000 | ||||||||||||||||||||||||||||||
N/A | ||||||||||||||||||||||||||||||||
(Former name, former address and former fiscal year, if changed since last report) | ||||||||||||||||||||||||||||||||
Securities registered pursuant to Section 12(b) of the Act: | ||||||||||||||||||||||||||||||||
Title of each class | Trading symbol | Name of each exchange on which registered | ||||||||||||||||||||||||||||||
Common shares, no par value | SJM | New York Stock Exchange |
Large accelerated filer | ý | Accelerated filer | ☐ | ||||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||||||||||||||
Emerging growth company | ☐ |
Page No. | |||||||||||
Item 1. |
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
Three Months Ended July 31, | |||||||||||||||||||||||||||||
Dollars in millions, except per share data | 2020 | 2019 | |||||||||||||||||||||||||||
Net sales | $ | 1,971.8 | $ | 1,778.9 | |||||||||||||||||||||||||
Cost of products sold | 1,196.4 | 1,079.3 | |||||||||||||||||||||||||||
Gross Profit | 775.4 | 699.6 | |||||||||||||||||||||||||||
Selling, distribution, and administrative expenses | 357.5 | 380.5 | |||||||||||||||||||||||||||
Amortization | 59.6 | 58.8 | |||||||||||||||||||||||||||
Other special project costs (A) | — | 3.3 | |||||||||||||||||||||||||||
Other operating expense (income) – net | (2.8) | (0.6) | |||||||||||||||||||||||||||
Operating Income | 361.1 | 257.6 | |||||||||||||||||||||||||||
Interest expense – net | (46.1) | (49.4) | |||||||||||||||||||||||||||
Other income (expense) – net | (1.4) | (1.5) | |||||||||||||||||||||||||||
Income Before Income Taxes | 313.6 | 206.7 | |||||||||||||||||||||||||||
Income tax expense | 76.6 | 52.1 | |||||||||||||||||||||||||||
Net Income | $ | 237.0 | $ | 154.6 | |||||||||||||||||||||||||
Earnings per common share: | |||||||||||||||||||||||||||||
Net Income | $ | 2.08 | $ | 1.36 | |||||||||||||||||||||||||
Net Income – Assuming Dilution | $ | 2.08 | $ | 1.36 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
Dollars in millions, except per share data | 2019 | 2018 | 2019 | 2018 | |||||||||||
Net sales | $ | 1,957.8 | $ | 2,021.5 | $ | 3,736.7 | $ | 3,924.0 | |||||||
Cost of products sold | 1,203.8 | 1,250.2 | 2,283.1 | 2,474.5 | |||||||||||
Gross Profit | 754.0 | 771.3 | 1,453.6 | 1,449.5 | |||||||||||
Selling, distribution, and administrative expenses | 361.5 | 382.4 | 742.0 | 765.7 | |||||||||||
Amortization | 58.8 | 59.7 | 117.6 | 120.2 | |||||||||||
Other special project costs (A) | 3.3 | 25.4 | 6.6 | 33.1 | |||||||||||
Other operating expense (income) – net | 0.6 | (26.7 | ) | — | (26.9 | ) | |||||||||
Operating Income | 329.8 | 330.5 | 587.4 | 557.4 | |||||||||||
Interest expense – net | (49.1 | ) | (53.6 | ) | (98.5 | ) | (107.2 | ) | |||||||
Other income (expense) – net | (1.6 | ) | (7.5 | ) | (3.1 | ) | (7.7 | ) | |||||||
Income Before Income Taxes | 279.1 | 269.4 | 485.8 | 442.5 | |||||||||||
Income tax expense | 67.9 | 80.9 | 120.0 | 121.0 | |||||||||||
Net Income | $ | 211.2 | $ | 188.5 | $ | 365.8 | $ | 321.5 | |||||||
Earnings per common share: | |||||||||||||||
Net Income | $ | 1.85 | $ | 1.66 | $ | 3.21 | $ | 2.83 | |||||||
Net Income – Assuming Dilution | $ | 1.85 | $ | 1.66 | $ | 3.21 | $ | 2.83 |
Three Months Ended October 31, | Six Months Ended October 31, | Three Months Ended July 31, | ||||||||||||||||||||||||||||||||||||||||||
Dollars in millions | 2019 | 2018 | 2019 | 2018 | Dollars in millions | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||
Net income | $ | 211.2 | $ | 188.5 | $ | 365.8 | $ | 321.5 | Net income | $ | 237.0 | $ | 154.6 | |||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | |||||||||||||||||||||||||||||||||||||||||||
Foreign currency translation adjustments | 0.6 | (5.6 | ) | 5.1 | (11.7 | ) | Foreign currency translation adjustments | 12.9 | 4.5 | |||||||||||||||||||||||||||||||||||
Cash flow hedging derivative activity, net of tax | (33.8 | ) | 6.1 | (74.6 | ) | 8.2 | Cash flow hedging derivative activity, net of tax | 2.6 | (40.8) | |||||||||||||||||||||||||||||||||||
Pension and other postretirement benefit plans activity, net of tax | 1.4 | 1.6 | 2.5 | 3.2 | Pension and other postretirement benefit plans activity, net of tax | 1.7 | 1.1 | |||||||||||||||||||||||||||||||||||||
Available-for-sale securities activity, net of tax | 0.1 | 0.3 | 0.4 | 0.6 | Available-for-sale securities activity, net of tax | 0.9 | 0.3 | |||||||||||||||||||||||||||||||||||||
Total Other Comprehensive Income (Loss) | (31.7 | ) | 2.4 | (66.6 | ) | 0.3 | Total Other Comprehensive Income (Loss) | 18.1 | (34.9) | |||||||||||||||||||||||||||||||||||
Comprehensive Income | $ | 179.5 | $ | 190.9 | $ | 299.2 | $ | 321.8 | Comprehensive Income | $ | 255.1 | $ | 119.7 |
Dollars in millions | October 31, 2019 | April 30, 2019 | Dollars in millions | July 31, 2020 | April 30, 2020 | ||||||||||||||||||||||
ASSETS | ASSETS | ASSETS | |||||||||||||||||||||||||
Current Assets | Current Assets | ||||||||||||||||||||||||||
Cash and cash equivalents | $ | 48.8 | $ | 101.3 | Cash and cash equivalents | $ | 396.6 | $ | 391.1 | ||||||||||||||||||
Trade receivables, less allowance for doubtful accounts | 522.4 | 503.8 | |||||||||||||||||||||||||
Trade receivables – net | Trade receivables – net | 497.6 | 551.4 | ||||||||||||||||||||||||
Inventories: | Inventories: | ||||||||||||||||||||||||||
Finished products | 667.3 | 590.8 | Finished products | 615.8 | 563.5 | ||||||||||||||||||||||
Raw materials | 346.0 | 319.5 | Raw materials | 379.2 | 331.8 | ||||||||||||||||||||||
Total Inventory | 1,013.3 | 910.3 | Total Inventory | 995.0 | 895.3 | ||||||||||||||||||||||
Other current assets | 74.7 | 109.8 | Other current assets | 95.6 | 134.9 | ||||||||||||||||||||||
Total Current Assets | 1,659.2 | 1,625.2 | Total Current Assets | 1,984.8 | 1,972.7 | ||||||||||||||||||||||
Property, Plant, and Equipment | Property, Plant, and Equipment | ||||||||||||||||||||||||||
Land and land improvements | 123.4 | 122.1 | Land and land improvements | 130.9 | 129.5 | ||||||||||||||||||||||
Buildings and fixtures | 953.2 | 903.2 | Buildings and fixtures | 986.4 | 977.9 | ||||||||||||||||||||||
Machinery and equipment | 2,354.4 | 2,185.0 | Machinery and equipment | 2,434.6 | 2,398.3 | ||||||||||||||||||||||
Construction in progress | 171.6 | 321.8 | Construction in progress | 217.5 | 232.6 | ||||||||||||||||||||||
Gross Property, Plant, and Equipment | 3,602.6 | 3,532.1 | Gross Property, Plant, and Equipment | 3,769.4 | 3,738.3 | ||||||||||||||||||||||
Accumulated depreciation | (1,687.1 | ) | (1,619.7 | ) | Accumulated depreciation | (1,820.8) | (1,768.9) | ||||||||||||||||||||
Total Property, Plant, and Equipment | 1,915.5 | 1,912.4 | Total Property, Plant, and Equipment | 1,948.6 | 1,969.4 | ||||||||||||||||||||||
Other Noncurrent Assets | Other Noncurrent Assets | ||||||||||||||||||||||||||
Operating lease right-of-use assets | 153.2 | — | Operating lease right-of-use assets | 138.3 | 148.4 | ||||||||||||||||||||||
Goodwill | 6,313.6 | 6,310.9 | Goodwill | 6,310.7 | 6,304.5 | ||||||||||||||||||||||
Other intangible assets – net | 6,602.7 | 6,718.8 | Other intangible assets – net | 6,371.6 | 6,429.0 | ||||||||||||||||||||||
Other noncurrent assets | 146.8 | 144.0 | Other noncurrent assets | 148.3 | 146.4 | ||||||||||||||||||||||
Total Other Noncurrent Assets | 13,216.3 | 13,173.7 | Total Other Noncurrent Assets | 12,968.9 | 13,028.3 | ||||||||||||||||||||||
Total Assets | $ | 16,791.0 | $ | 16,711.3 | Total Assets | $ | 16,902.3 | $ | 16,970.4 | ||||||||||||||||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||||||||||||||||||||
Current Liabilities | Current Liabilities | ||||||||||||||||||||||||||
Accounts payable | $ | 521.8 | $ | 591.0 | Accounts payable | $ | 780.6 | $ | 782.0 | ||||||||||||||||||
Accrued trade marketing and merchandising | 214.2 | 142.7 | Accrued trade marketing and merchandising | 188.3 | 167.5 | ||||||||||||||||||||||
Current portion of long-term debt | 799.5 | 798.5 | Current portion of long-term debt | 399.8 | — | ||||||||||||||||||||||
Short-term borrowings | 327.9 | 426.0 | Short-term borrowings | 296.0 | 248.0 | ||||||||||||||||||||||
Current operating lease liabilities | 44.4 | — | Current operating lease liabilities | 35.9 | 36.5 | ||||||||||||||||||||||
Other current liabilities | 402.3 | 383.3 | Other current liabilities | 372.5 | 353.1 | ||||||||||||||||||||||
Total Current Liabilities | 2,310.1 | 2,341.5 | Total Current Liabilities | 2,073.1 | 1,587.1 | ||||||||||||||||||||||
Noncurrent Liabilities | Noncurrent Liabilities | ||||||||||||||||||||||||||
Long-term debt, less current portion | 4,584.5 | 4,686.3 | Long-term debt, less current portion | 4,672.8 | 5,373.3 | ||||||||||||||||||||||
Deferred income taxes | 1,377.6 | 1,398.6 | Deferred income taxes | 1,353.9 | 1,351.6 | ||||||||||||||||||||||
Noncurrent operating lease liabilities | 116.2 | — | Noncurrent operating lease liabilities | 112.5 | 120.0 | ||||||||||||||||||||||
Other noncurrent liabilities | 307.3 | 314.4 | Other noncurrent liabilities | 344.8 | 347.5 | ||||||||||||||||||||||
Total Noncurrent Liabilities | 6,385.6 | 6,399.3 | Total Noncurrent Liabilities | 6,484.0 | 7,192.4 | ||||||||||||||||||||||
Total Liabilities | 8,695.7 | 8,740.8 | Total Liabilities | 8,557.1 | 8,779.5 | ||||||||||||||||||||||
Shareholders’ Equity | Shareholders’ Equity | ||||||||||||||||||||||||||
Common shares | 29.0 | 28.9 | Common shares | 28.5 | 29.0 | ||||||||||||||||||||||
Additional capital | 5,781.7 | 5,755.8 | Additional capital | 5,795.3 | 5,794.1 | ||||||||||||||||||||||
Retained income | 2,533.0 | 2,367.6 | Retained income | 2,882.3 | 2,746.8 | ||||||||||||||||||||||
Accumulated other comprehensive income (loss) | (248.4 | ) | (181.8 | ) | Accumulated other comprehensive income (loss) | (360.9) | (379.0) | ||||||||||||||||||||
Total Shareholders’ Equity | 8,095.3 | 7,970.5 | Total Shareholders’ Equity | 8,345.2 | 8,190.9 | ||||||||||||||||||||||
Total Liabilities and Shareholders’ Equity | $ | 16,791.0 | $ | 16,711.3 | Total Liabilities and Shareholders’ Equity | $ | 16,902.3 | $ | 16,970.4 |
Six Months Ended October 31, | Three Months Ended July 31, | |||||||||||||||||||||||
Dollars in millions | 2019 | 2018 | Dollars in millions | 2020 | 2019 | |||||||||||||||||||
Operating Activities | Operating Activities | |||||||||||||||||||||||
Net income | $ | 365.8 | $ | 321.5 | Net income | $ | 237.0 | $ | 154.6 | |||||||||||||||
Adjustments to reconcile net income to net cash provided by (used for) operations: | Adjustments to reconcile net income to net cash provided by (used for) operations: | |||||||||||||||||||||||
Depreciation | 103.4 | 102.9 | Depreciation | 54.1 | 50.8 | |||||||||||||||||||
Amortization | 117.6 | 120.2 | Amortization | 59.6 | 58.8 | |||||||||||||||||||
Share-based compensation expense | 13.7 | 10.5 | Share-based compensation expense | 5.9 | 6.2 | |||||||||||||||||||
Gain on divestiture | — | (26.6 | ) | |||||||||||||||||||||
Other noncash adjustments – net | 6.6 | 3.0 | Other noncash adjustments – net | 3.8 | 0.2 | |||||||||||||||||||
Changes in assets and liabilities, net of effect from acquisition and divestiture: | ||||||||||||||||||||||||
Changes in assets and liabilities: | Changes in assets and liabilities: | |||||||||||||||||||||||
Trade receivables | (18.2 | ) | (111.2 | ) | Trade receivables | 55.1 | 30.4 | |||||||||||||||||
Inventories | (102.0 | ) | (60.4 | ) | Inventories | (98.5) | (102.1) | |||||||||||||||||
Other current assets | 13.3 | 17.6 | Other current assets | 0.3 | 6.4 | |||||||||||||||||||
Accounts payable | (41.3 | ) | 15.2 | Accounts payable | 41.1 | (61.0) | ||||||||||||||||||
Accrued liabilities | 25.7 | 60.4 | Accrued liabilities | 7.1 | 63.6 | |||||||||||||||||||
Income and other taxes | (32.6 | ) | 18.5 | Income and other taxes | 43.4 | 21.8 | ||||||||||||||||||
Other – net | (6.5 | ) | (25.7 | ) | Other – net | 0.1 | (8.2) | |||||||||||||||||
Net Cash Provided by (Used for) Operating Activities | 445.5 | 445.9 | Net Cash Provided by (Used for) Operating Activities | 409.0 | 221.5 | |||||||||||||||||||
Investing Activities | Investing Activities | |||||||||||||||||||||||
Business acquired, net of cash acquired | — | (1,903.0 | ) | |||||||||||||||||||||
Additions to property, plant, and equipment | (136.4 | ) | (179.1 | ) | Additions to property, plant, and equipment | (76.6) | (73.0) | |||||||||||||||||
Proceeds from divestiture | — | 372.1 | ||||||||||||||||||||||
Other – net | 32.2 | (8.9 | ) | Other – net | 27.4 | 20.9 | ||||||||||||||||||
Net Cash Provided by (Used for) Investing Activities | (104.2 | ) | (1,718.9 | ) | Net Cash Provided by (Used for) Investing Activities | (49.2) | (52.1) | |||||||||||||||||
Financing Activities | Financing Activities | |||||||||||||||||||||||
Short-term borrowings (repayments) – net | (102.9 | ) | 246.0 | Short-term borrowings (repayments) – net | 47.8 | (130.0) | ||||||||||||||||||
Proceeds from long-term debt | — | 1,500.0 | ||||||||||||||||||||||
Repayments of long-term debt | (100.0 | ) | (300.0 | ) | Repayments of long-term debt | (300.0) | — | |||||||||||||||||
Quarterly dividends paid | (196.6 | ) | (184.9 | ) | Quarterly dividends paid | (100.1) | (96.5) | |||||||||||||||||
Purchase of treasury shares | (3.5 | ) | (5.0 | ) | Purchase of treasury shares | (4.6) | (2.9) | |||||||||||||||||
Proceeds from stock option exercises | 7.0 | — | Proceeds from stock option exercises | — | 7.0 | |||||||||||||||||||
Other – net | 0.8 | 0.1 | Other – net | (0.4) | (0.2) | |||||||||||||||||||
Net Cash Provided by (Used for) Financing Activities | (395.2 | ) | 1,256.2 | Net Cash Provided by (Used for) Financing Activities | (357.3) | (222.6) | ||||||||||||||||||
Effect of exchange rate changes on cash | 1.4 | (4.6 | ) | Effect of exchange rate changes on cash | 3.0 | 0.7 | ||||||||||||||||||
Net increase (decrease) in cash and cash equivalents | (52.5 | ) | (21.4 | ) | Net increase (decrease) in cash and cash equivalents | 5.5 | (52.5) | |||||||||||||||||
Cash and cash equivalents at beginning of period | 101.3 | 192.6 | Cash and cash equivalents at beginning of period | 391.1 | 101.3 | |||||||||||||||||||
Cash and Cash Equivalents at End of Period | $ | 48.8 | $ | 171.2 | Cash and Cash Equivalents at End of Period | $ | 396.6 | $ | 48.8 |
Three months ended July 31, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in millions | Common Shares Outstanding | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 1, 2020 | 114,072,726 | $ | 29.0 | $ | 5,794.1 | $ | 2,746.8 | $ | (379.0) | $ | 8,190.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 237.0 | 237.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 18.1 | 18.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 255.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | (42,194) | — | (5.5) | 0.9 | (4.6) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock plans | 56,910 | — | 6.2 | 6.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.90 per common share | (102.4) | (102.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | (0.5) | 0.5 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2020 | 114,087,442 | $ | 28.5 | $ | 5,795.3 | $ | 2,882.3 | $ | (360.9) | $ | 8,345.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in millions | Common Shares Outstanding | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||
Balance at May 1, 2019 | 113,742,296 | $ | 28.9 | $ | 5,755.8 | $ | 2,367.6 | $ | (181.8 | ) | $ | 7,970.5 | ||||||||||
Net income | 154.6 | 154.6 | ||||||||||||||||||||
Other comprehensive income (loss) | (34.9 | ) | (34.9 | ) | ||||||||||||||||||
Comprehensive income | 119.7 | |||||||||||||||||||||
Purchase of treasury shares | (22,793 | ) | — | (2.7 | ) | (0.2 | ) | (2.9 | ) | |||||||||||||
Stock plans | 330,289 | 0.1 | 20.4 | 20.5 | ||||||||||||||||||
Cash dividends declared, $0.88 per common share | (100.1 | ) | (100.1 | ) | ||||||||||||||||||
Other | — | — | ||||||||||||||||||||
Balance at July 31, 2019 | 114,049,792 | $ | 29.0 | $ | 5,773.5 | $ | 2,421.9 | $ | (216.7 | ) | $ | 8,007.7 | ||||||||||
Net income | 211.2 | 211.2 | ||||||||||||||||||||
Other comprehensive income (loss) | (31.7 | ) | (31.7 | ) | ||||||||||||||||||
Comprehensive income | 179.5 | |||||||||||||||||||||
Purchase of treasury shares | (4,930 | ) | — | (0.6 | ) | — | (0.6 | ) | ||||||||||||||
Stock plans | 14,882 | — | 8.8 | 8.8 | ||||||||||||||||||
Cash dividends declared, $0.88 per common share | (100.1 | ) | (100.1 | ) | ||||||||||||||||||
Other | — | — | ||||||||||||||||||||
Balance at October 31, 2019 | 114,059,744 | $ | 29.0 | $ | 5,781.7 | $ | 2,533.0 | $ | (248.4 | ) | $ | 8,095.3 |
Three months ended July 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars in millions | Common Shares Outstanding | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | Dollars in millions | Common Shares Outstanding | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) | Total Shareholders’ Equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 1, 2018 | 113,572,840 | $ | 28.9 | $ | 5,739.7 | $ | 2,239.2 | $ | (116.7 | ) | $ | 7,891.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at May 1, 2019 | Balance at May 1, 2019 | 113,742,296 | $ | 28.9 | $ | 5,755.8 | $ | 2,367.6 | $ | (181.8) | $ | 7,970.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 133.0 | 133.0 | Net income | 154.6 | 154.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | (2.1 | ) | (2.1 | ) | Other comprehensive income (loss) | (34.9) | (34.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 130.9 | Comprehensive income | 119.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | (43,913 | ) | — | (4.6 | ) | (0.1 | ) | (4.7 | ) | Purchase of treasury shares | (22,793) | — | (2.7) | (0.2) | (2.9) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock plans | 243,521 | — | 10.0 | 10.0 | Stock plans | 330,289 | 0.1 | 20.4 | 20.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.85 per common share | (96.5 | ) | (96.5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.88 per common share | Cash dividends declared, $0.88 per common share | (100.1) | (100.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | Other | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2018 | 113,772,448 | $ | 28.9 | $ | 5,745.1 | $ | 2,275.6 | $ | (118.8 | ) | $ | 7,930.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | 188.5 | 188.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | 2.4 | 2.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | 190.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury shares | (2,485 | ) | — | (0.3 | ) | — | (0.3 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock plans | (9,883 | ) | — | 5.1 | 5.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared, $0.85 per common share | (96.5 | ) | (96.5 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at October 31, 2018 | 113,760,080 | $ | 28.9 | $ | 5,749.9 | $ | 2,367.6 | $ | (116.4 | ) | $ | 8,030.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at July 31, 2019 | Balance at July 31, 2019 | 114,049,792 | $ | 29.0 | $ | 5,773.5 | $ | 2,421.9 | $ | (216.7) | $ | 8,007.7 |
Three Months Ended October 31, | Six Months Ended October 31, | Total Costs Incurred to Date at October 31, 2019 | |||||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||||||
Employee-related costs | $ | 0.6 | $ | 6.9 | $ | 1.4 | $ | 7.8 | $ | 16.9 | |||||||||
Other transition and termination costs | 2.7 | 7.3 | 5.2 | 8.4 | 21.8 | ||||||||||||||
Total integration costs | $ | 3.3 | $ | 14.2 | $ | 6.6 | $ | 16.2 | $ | 38.7 |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||
U.S. Retail Pet Foods | $ | 692.6 | $ | 669.9 | |||||||||||||||||||||||||
U.S. Retail Coffee | 570.9 | 465.7 | |||||||||||||||||||||||||||
U.S. Retail Consumer Foods | 489.2 | 402.2 | |||||||||||||||||||||||||||
International and Away From Home | 219.1 | 241.1 | |||||||||||||||||||||||||||
Total net sales | $ | 1,971.8 | $ | 1,778.9 | |||||||||||||||||||||||||
Segment profit: | |||||||||||||||||||||||||||||
U.S. Retail Pet Foods | $ | 125.3 | $ | 120.1 | |||||||||||||||||||||||||
U.S. Retail Coffee | 182.6 | 128.9 | |||||||||||||||||||||||||||
U.S. Retail Consumer Foods | 131.5 | 81.0 | |||||||||||||||||||||||||||
International and Away From Home | 30.9 | 32.3 | |||||||||||||||||||||||||||
Total segment profit | $ | 470.3 | $ | 362.3 | |||||||||||||||||||||||||
Amortization | (59.6) | (58.8) | |||||||||||||||||||||||||||
Interest expense – net | (46.1) | (49.4) | |||||||||||||||||||||||||||
Unallocated derivative gains (losses) | 16.2 | 29.0 | |||||||||||||||||||||||||||
Other special project costs (A) | — | (3.3) | |||||||||||||||||||||||||||
Corporate administrative expenses | (65.8) | (71.6) | |||||||||||||||||||||||||||
Other income (expense) – net | (1.4) | (1.5) | |||||||||||||||||||||||||||
Income before income taxes | $ | 313.6 | $ | 206.7 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net sales: | |||||||||||||||
U.S. Retail Pet Foods | $ | 709.9 | $ | 728.1 | $ | 1,379.8 | $ | 1,399.3 | |||||||
U.S. Retail Coffee | 543.4 | 544.9 | 1,009.1 | 1,034.4 | |||||||||||
U.S. Retail Consumer Foods | 426.1 | 461.9 | 828.3 | 945.2 | |||||||||||
International and Away From Home | 278.4 | 286.6 | 519.5 | 545.1 | |||||||||||
Total net sales | $ | 1,957.8 | $ | 2,021.5 | $ | 3,736.7 | $ | 3,924.0 | |||||||
Segment profit: | |||||||||||||||
U.S. Retail Pet Foods | $ | 137.0 | $ | 123.9 | $ | 257.1 | $ | 224.3 | |||||||
U.S. Retail Coffee | 182.5 | 174.3 | 311.4 | 322.1 | |||||||||||
U.S. Retail Consumer Foods | 91.4 | 134.3 | 172.4 | 231.6 | |||||||||||
International and Away From Home | 50.4 | 56.7 | 82.7 | 100.1 | |||||||||||
Total segment profit | $ | 461.3 | $ | 489.2 | $ | 823.6 | $ | 878.1 | |||||||
Amortization | (58.8 | ) | (59.7 | ) | (117.6 | ) | (120.2 | ) | |||||||
Interest expense – net | (49.1 | ) | (53.6 | ) | (98.5 | ) | (107.2 | ) | |||||||
Unallocated derivative gains (losses) | 0.9 | (0.1 | ) | 29.9 | (22.1 | ) | |||||||||
Other special project costs (A) | (3.3 | ) | (25.4 | ) | (6.6 | ) | (33.1 | ) | |||||||
Corporate administrative expenses | (70.3 | ) | (73.5 | ) | (141.9 | ) | (145.3 | ) | |||||||
Other income (expense) – net | (1.6 | ) | (7.5 | ) | (3.1 | ) | (7.7 | ) | |||||||
Income before income taxes | $ | 279.1 | $ | 269.4 | $ | 485.8 | $ | 442.5 |
Three Months Ended October 31, | Six Months Ended October 31, | Three Months Ended July 31, | ||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||
Net sales: | Net sales: | |||||||||||||||||||||||||||||||||||||||||||
United States | $ | 1,815.9 | $ | 1,873.2 | $ | 3,473.5 | $ | 3,645.5 | United States | $ | 1,829.7 | $ | 1,657.6 | |||||||||||||||||||||||||||||||
International: | International: | |||||||||||||||||||||||||||||||||||||||||||
Canada | $ | 113.4 | $ | 114.3 | $ | 210.2 | $ | 212.5 | Canada | $ | 108.2 | $ | 96.8 | |||||||||||||||||||||||||||||||
All other international | 28.5 | 34.0 | 53.0 | 66.0 | All other international | 33.9 | 24.5 | |||||||||||||||||||||||||||||||||||||
Total international | $ | 141.9 | $ | 148.3 | $ | 263.2 | $ | 278.5 | Total international | $ | 142.1 | $ | 121.3 | |||||||||||||||||||||||||||||||
Total net sales | $ | 1,957.8 | $ | 2,021.5 | $ | 3,736.7 | $ | 3,924.0 | Total net sales | $ | 1,971.8 | $ | 1,778.9 |
Three Months Ended July 31, | ||||||||||||||||||||||||||||||||||||||
2020 | 2019 | Primary Reportable Segment (A) | ||||||||||||||||||||||||||||||||||||
Coffee | $ | 635.7 | $ | 546.7 | U.S. Retail Coffee | |||||||||||||||||||||||||||||||||
Dog food | 277.7 | 295.6 | U.S. Retail Pet Foods | |||||||||||||||||||||||||||||||||||
Cat food | 220.0 | 195.9 | U.S. Retail Pet Foods | |||||||||||||||||||||||||||||||||||
Pet snacks | 212.8 | 193.2 | U.S. Retail Pet Foods | |||||||||||||||||||||||||||||||||||
Peanut butter | 199.9 | 177.9 | U.S. Retail Consumer Foods | |||||||||||||||||||||||||||||||||||
Fruit spreads | 104.3 | 89.2 | U.S. Retail Consumer Foods | |||||||||||||||||||||||||||||||||||
Frozen handheld | 95.5 | 71.5 | U.S. Retail Consumer Foods | |||||||||||||||||||||||||||||||||||
Shortening and oils | 77.3 | 51.5 | U.S. Retail Consumer Foods | |||||||||||||||||||||||||||||||||||
Juices and beverages | 33.6 | 31.2 | U.S. Retail Consumer Foods | |||||||||||||||||||||||||||||||||||
Portion control | 24.0 | 39.4 | Other (B) | |||||||||||||||||||||||||||||||||||
Baking mixes and ingredients | 23.2 | 13.7 | Other (B) | |||||||||||||||||||||||||||||||||||
Other | 67.8 | 73.1 | Other (B) | |||||||||||||||||||||||||||||||||||
Total net sales | $ | 1,971.8 | $ | 1,778.9 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||
2019 | 2018 | 2019 | 2018 | Primary Reportable Segment (A) | |||||||||||||
Coffee | $ | 627.1 | $ | 635.5 | $ | 1,173.8 | $ | 1,213.8 | U.S. Retail Coffee | ||||||||
Dog food | 302.6 | 334.9 | 598.2 | 643.4 | U.S. Retail Pet Foods | ||||||||||||
Cat food | 213.8 | 207.3 | 409.7 | 396.3 | U.S. Retail Pet Foods | ||||||||||||
Pet snacks | 210.0 | 201.9 | 403.2 | 389.7 | U.S. Retail Pet Foods | ||||||||||||
Peanut butter | 175.4 | 186.9 | 353.3 | 386.1 | U.S. Retail Consumer Foods | ||||||||||||
Fruit spreads | 86.5 | 83.0 | 175.7 | 168.6 | U.S. Retail Consumer Foods | ||||||||||||
Frozen handheld | 93.4 | 78.7 | 164.9 | 143.2 | U.S. Retail Consumer Foods | ||||||||||||
Shortening and oils | 71.8 | 79.3 | 123.3 | 132.2 | U.S. Retail Consumer Foods | ||||||||||||
Portion control | 42.5 | 41.6 | 81.9 | 82.5 | International and Away From Home | ||||||||||||
Juices and beverages | 32.4 | 33.9 | 63.6 | 66.1 | U.S. Retail Consumer Foods | ||||||||||||
Baking mixes and ingredients | 26.0 | 58.4 | 39.7 | 142.7 | International and Away From Home (B) | ||||||||||||
Other | 76.3 | 80.1 | 149.4 | 159.4 | International and Away From Home | ||||||||||||
Total net sales | $ | 1,957.8 | $ | 2,021.5 | $ | 3,736.7 | $ | 3,924.0 |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net income | $ | 237.0 | $ | 154.6 | |||||||||||||||||||||||||
Less: Net income allocated to participating securities | 1.1 | 0.8 | |||||||||||||||||||||||||||
Net income allocated to common stockholders | $ | 235.9 | $ | 153.8 | |||||||||||||||||||||||||
Weighted-average common shares outstanding | 113.5 | 113.2 | |||||||||||||||||||||||||||
Add: Dilutive effect of stock options | — | 0.1 | |||||||||||||||||||||||||||
Weighted-average common shares outstanding – assuming dilution | 113.5 | 113.3 | |||||||||||||||||||||||||||
Net income per common share | $ | 2.08 | $ | 1.36 | |||||||||||||||||||||||||
Net income per common share – assuming dilution | $ | 2.08 | $ | 1.36 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net income | $ | 211.2 | $ | 188.5 | $ | 365.8 | $ | 321.5 | |||||||
Less: Net income allocated to participating securities | 1.3 | 1.0 | 2.1 | 1.7 | |||||||||||
Net income allocated to common stockholders | $ | 209.9 | $ | 187.5 | $ | 363.7 | $ | 319.8 | |||||||
Weighted-average common shares outstanding | 113.4 | 113.2 | 113.3 | 113.1 | |||||||||||
Add: Dilutive effect of stock options | — | — | — | — | |||||||||||
Weighted-average common shares outstanding – assuming dilution | 113.4 | 113.2 | 113.3 | 113.1 | |||||||||||
Net income per common share | $ | 1.85 | $ | 1.66 | $ | 3.21 | $ | 2.83 | |||||||
Net income per common share – assuming dilution | $ | 1.85 | $ | 1.66 | $ | 3.21 | $ | 2.83 |
July 31, 2020 | April 30, 2020 | ||||||||||||||||||||||||||||||||||
Principal Outstanding | Carrying Amount (A) | Principal Outstanding | Carrying Amount (A) | ||||||||||||||||||||||||||||||||
3.50% Senior Notes due October 15, 2021 | $ | 750.0 | $ | 759.2 | $ | 750.0 | $ | 761.1 | |||||||||||||||||||||||||||
3.00% Senior Notes due March 15, 2022 | 400.0 | 398.9 | 400.0 | 398.7 | |||||||||||||||||||||||||||||||
3.50% Senior Notes due March 15, 2025 | 1,000.0 | 996.2 | 1,000.0 | 996.0 | |||||||||||||||||||||||||||||||
3.38% Senior Notes due December 15, 2027 | 500.0 | 496.8 | 500.0 | 496.7 | |||||||||||||||||||||||||||||||
2.38 % Senior Notes due March 15, 2030 | 500.0 | 495.3 | 500.0 | 495.2 | |||||||||||||||||||||||||||||||
4.25% Senior Notes due March 15, 2035 | 650.0 | 644.0 | 650.0 | 643.9 | |||||||||||||||||||||||||||||||
4.38% Senior Notes due March 15, 2045 | 600.0 | 586.7 | 600.0 | 586.5 | |||||||||||||||||||||||||||||||
3.55% Senior Notes due March 15, 2050 | 300.0 | 295.7 | 300.0 | 295.7 | |||||||||||||||||||||||||||||||
Term Loan Credit Agreement due May 14, 2021 | 400.0 | 399.8 | 700.0 | 699.5 | |||||||||||||||||||||||||||||||
Total long-term debt | $ | 5,100.0 | $ | 5,072.6 | $ | 5,400.0 | $ | 5,373.3 | |||||||||||||||||||||||||||
Current portion of long-term debt | 400.0 | 399.8 | — | — | |||||||||||||||||||||||||||||||
Total long-term debt, less current portion | $ | 4,700.0 | $ | 4,672.8 | $ | 5,400.0 | $ | 5,373.3 |
October 31, 2019 | April 30, 2019 | ||||||||||||||
Principal Outstanding | Carrying Amount (A) | Principal Outstanding | Carrying Amount (A) | ||||||||||||
2.20% Senior Notes due December 6, 2019 | $ | 300.0 | $ | 300.0 | $ | 300.0 | $ | 299.5 | |||||||
2.50% Senior Notes due March 15, 2020 | 500.0 | 499.5 | 500.0 | 499.0 | |||||||||||
3.50% Senior Notes due October 15, 2021 | 750.0 | 764.8 | 750.0 | 768.4 | |||||||||||
3.00% Senior Notes due March 15, 2022 | 400.0 | 398.3 | 400.0 | 398.0 | |||||||||||
3.50% Senior Notes due March 15, 2025 | 1,000.0 | 995.6 | 1,000.0 | 995.2 | |||||||||||
3.38% Senior Notes due December 15, 2027 | 500.0 | 496.5 | 500.0 | 496.2 | |||||||||||
4.25% Senior Notes due March 15, 2035 | 650.0 | 643.7 | 650.0 | 643.5 | |||||||||||
4.38% Senior Notes due March 15, 2045 | 600.0 | 586.3 | 600.0 | 586.0 | |||||||||||
Term Loan Credit Agreement due May 14, 2021 | 700.0 | 699.3 | 800.0 | 799.0 | |||||||||||
Total long-term debt | $ | 5,400.0 | $ | 5,384.0 | $ | 5,500.0 | $ | 5,484.8 | |||||||
Current portion of long-term debt | 800.0 | 799.5 | 800.0 | 798.5 | |||||||||||
Total long-term debt, less current portion | $ | 4,600.0 | $ | 4,584.5 | $ | 4,700.0 | $ | 4,686.3 |
Three Months Ended October 31, | |||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Service cost | $ | 0.4 | $ | 0.5 | $ | 0.4 | $ | 0.5 | |||||||
Interest cost | 5.3 | 5.8 | 0.6 | 0.6 | |||||||||||
Expected return on plan assets | (6.1 | ) | (6.7 | ) | — | — | |||||||||
Amortization of net actuarial loss (gain) | 2.0 | 2.1 | — | (0.2 | ) | ||||||||||
Amortization of prior service cost (credit) | 0.2 | 0.3 | (0.3 | ) | (0.3 | ) | |||||||||
Net periodic benefit cost | $ | 1.8 | $ | 2.0 | $ | 0.7 | $ | 0.6 |
Six Months Ended October 31, | Three Months Ended July 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Defined Benefit Pension Plans | Other Postretirement Benefits | Defined Benefit Pension Plans | Other Postretirement Benefits | |||||||||||||||||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||
Service cost | $ | 0.8 | $ | 1.1 | $ | 0.9 | $ | 0.9 | Service cost | $ | 0.5 | $ | 0.4 | $ | 0.5 | $ | 0.5 | |||||||||||||||||||||||||||||||||||||||
Interest cost | 10.5 | 11.7 | 1.2 | 1.2 | Interest cost | 4.6 | 5.2 | 0.4 | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||||
Expected return on plan assets | (12.1 | ) | (13.5 | ) | — | — | Expected return on plan assets | (6.1) | (6.0) | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of net actuarial loss (gain) | 4.0 | 4.1 | (0.1 | ) | (0.3 | ) | Amortization of net actuarial loss (gain) | 3.3 | 2.0 | — | (0.1) | |||||||||||||||||||||||||||||||||||||||||||||
Amortization of prior service cost (credit) | 0.4 | 0.5 | (0.6 | ) | (0.6 | ) | Amortization of prior service cost (credit) | 0.2 | 0.2 | (0.3) | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||
Net periodic benefit cost | $ | 3.6 | $ | 3.9 | $ | 1.4 | $ | 1.2 | Net periodic benefit cost | $ | 2.5 | $ | 1.8 | $ | 0.6 | $ | 0.7 |
July 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
October 31, 2019 | Other Current Assets | Other Current Liabilities | Other Noncurrent Assets | Other Noncurrent Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other Current Liabilities | Other Noncurrent Assets | Other Noncurrent Liabilities | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts | $ | — | $ | 146.2 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives designated as hedging instruments | $ | — | $ | 146.2 | $ | — | $ | — | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commodity contracts | $ | 5.6 | $ | 3.0 | $ | 0.5 | $ | 0.5 | Commodity contracts | $ | 20.4 | $ | 17.6 | $ | 0.1 | $ | — | |||||||||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | 0.2 | 0.3 | — | — | Foreign currency exchange contracts | 0.5 | 1.3 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Total derivatives not designated as hedging instruments | $ | 5.8 | $ | 3.3 | $ | 0.5 | $ | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 5.8 | $ | 149.5 | $ | 0.5 | $ | 0.5 | Total derivative instruments | $ | 20.9 | $ | 18.9 | $ | 0.1 | $ | — |
April 30, 2019 | |||||||||||||||
Other Current Assets | Other Current Liabilities | Other Noncurrent Assets | Other Noncurrent Liabilities | ||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||
Interest rate contracts | $ | — | $ | 49.1 | $ | — | $ | — | |||||||
Total derivatives designated as hedging instruments | $ | — | $ | 49.1 | $ | — | $ | — | |||||||
Derivatives not designated as hedging instruments: | |||||||||||||||
Commodity contracts | $ | 4.8 | $ | 25.8 | $ | — | $ | — | |||||||
Foreign currency exchange contracts | 1.4 | 0.2 | — | — | |||||||||||
Total derivatives not designated as hedging instruments | $ | 6.2 | $ | 26.0 | $ | — | $ | — | |||||||
Total derivative instruments | $ | 6.2 | $ | 75.1 | $ | — | $ | — |
April 30, 2020 | |||||||||||||||||||||||||||||||||||||||||
Other Current Assets | Other Current Liabilities | Other Noncurrent Assets | Other Noncurrent Liabilities | ||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||
Commodity contracts | $ | 14.7 | $ | 33.2 | $ | — | $ | — | |||||||||||||||||||||||||||||||||
Foreign currency exchange contracts | 2.4 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||
Total derivative instruments | $ | 17.1 | $ | 33.3 | $ | — | $ | — |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Gains (losses) recognized in other comprehensive income (loss) | $ | (44.1 | ) | $ | 7.9 | $ | (97.1 | ) | $ | 10.5 | |||||
Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense | (0.1 | ) | (0.1 | ) | (0.2 | ) | (0.2 | ) | |||||||
Change in accumulated other comprehensive income (loss) | $ | (44.0 | ) | $ | 8.0 | $ | (96.9 | ) | $ | 10.7 |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Gains (losses) recognized in other comprehensive income (loss) | $ | — | $ | (53.0) | |||||||||||||||||||||||||
Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense | (3.4) | (0.1) | |||||||||||||||||||||||||||
Change in accumulated other comprehensive income (loss) | $ | 3.4 | $ | (52.9) |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Gains (losses) on commodity contracts | $ | (10.1 | ) | $ | (3.2 | ) | $ | 2.5 | $ | (30.1 | ) | ||||
Gains (losses) on foreign currency exchange contracts | (0.1 | ) | 0.8 | (1.1 | ) | 1.5 | |||||||||
Total gains (losses) recognized in cost of products sold | $ | (10.2 | ) | $ | (2.4 | ) | $ | 1.4 | $ | (28.6 | ) |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Gains (losses) on commodity contracts | $ | 11.4 | $ | 12.6 | |||||||||||||||||||||||||
Gains (losses) on foreign currency exchange contracts | (2.3) | (1.0) | |||||||||||||||||||||||||||
Total gains (losses) recognized in cost of products sold | $ | 9.1 | $ | 11.6 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ | (10.2 | ) | $ | (2.4 | ) | $ | 1.4 | $ | (28.6 | ) | ||||
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (11.1 | ) | (2.3 | ) | (28.5 | ) | (6.5 | ) | |||||||
Unallocated derivative gains (losses) | $ | 0.9 | $ | (0.1 | ) | $ | 29.9 | $ | (22.1 | ) |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ | 9.1 | $ | 11.6 | |||||||||||||||||||||||||
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (7.1) | (17.4) | |||||||||||||||||||||||||||
Unallocated derivative gains (losses) | $ | 16.2 | $ | 29.0 |
July 31, 2020 | April 30, 2020 | ||||||||||
Commodity contracts | $ | 679.5 | $ | 890.1 | |||||||
Foreign currency exchange contracts | 74.3 | 65.6 | |||||||||
October 31, 2019 | April 30, 2019 | ||||||
Commodity contracts | $ | 432.8 | $ | 544.8 | |||
Foreign currency exchange contracts | 93.9 | 144.9 | |||||
Interest rate contracts | 800.0 | 800.0 |
October 31, 2019 | April 30, 2019 | ||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||
Marketable securities and other investments | $ | 40.5 | $ | 40.5 | $ | 40.9 | $ | 40.9 | |||||||
Derivative financial instruments – net | (143.7 | ) | (143.7 | ) | (68.9 | ) | (68.9 | ) | |||||||
Total long-term debt | (5,384.0 | ) | (5,640.7 | ) | (5,484.8 | ) | (5,504.0 | ) |
July 31, 2020 | April 30, 2020 | ||||||||||||||||||||||||||||||||||
Carrying Amount | Fair Value | Carrying Amount | Fair Value | ||||||||||||||||||||||||||||||||
Marketable securities and other investments | $ | 39.3 | $ | 39.3 | $ | 38.6 | $ | 38.6 | |||||||||||||||||||||||||||
Derivative financial instruments – net | 2.1 | 2.1 | (16.2) | (16.2) | |||||||||||||||||||||||||||||||
Total long-term debt | (5,072.6) | (5,659.7) | (5,373.3) | (5,740.6) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at October 31, 2019 | ||||||||||||
Marketable securities and other investments: (A) | |||||||||||||||
Equity mutual funds | $ | 8.8 | $ | — | $ | — | $ | 8.8 | |||||||
Municipal obligations | — | 31.3 | — | 31.3 | |||||||||||
Money market funds | 0.4 | — | — | 0.4 | |||||||||||
Derivative financial instruments: (B) | |||||||||||||||
Commodity contracts – net | 2.6 | — | — | 2.6 | |||||||||||
Foreign currency exchange contracts – net | (0.1 | ) | — | — | (0.1 | ) | |||||||||
Interest rate contracts | — | (146.2 | ) | — | (146.2 | ) | |||||||||
Total long-term debt (C) | (4,910.1 | ) | (730.6 | ) | — | (5,640.7 | ) | ||||||||
Total financial instruments measured at fair value | $ | (4,898.4 | ) | $ | (845.5 | ) | $ | — | $ | (5,743.9 | ) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at April 30, 2019 | ||||||||||||
Marketable securities and other investments: (A) | |||||||||||||||
Equity mutual funds | $ | 8.7 | $ | — | $ | — | $ | 8.7 | |||||||
Municipal obligations | — | 31.7 | — | 31.7 | |||||||||||
Money market funds | 0.5 | — | — | 0.5 | |||||||||||
Derivative financial instruments: (B) | |||||||||||||||
Commodity contracts – net | (20.7 | ) | (0.3 | ) | — | (21.0 | ) | ||||||||
Foreign currency exchange contracts – net | (0.1 | ) | 1.3 | — | 1.2 | ||||||||||
Interest rate contracts | — | (49.1 | ) | — | (49.1 | ) | |||||||||
Total long-term debt (C) | (4,646.6 | ) | (857.4 | ) | — | (5,504.0 | ) | ||||||||
Total financial instruments measured at fair value | $ | (4,658.2 | ) | $ | (873.8 | ) | $ | — | $ | (5,532.0 | ) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at July 31, 2020 | ||||||||||||||||||||
Marketable securities and other investments: (A) | |||||||||||||||||||||||
Equity mutual funds | $ | 9.3 | $ | — | $ | — | $ | 9.3 | |||||||||||||||
Municipal obligations | — | 24.6 | — | 24.6 | |||||||||||||||||||
Money market funds | 5.4 | — | — | 5.4 | |||||||||||||||||||
Derivative financial instruments: (B) | |||||||||||||||||||||||
Commodity contracts – net | 2.4 | 0.5 | — | 2.9 | |||||||||||||||||||
Foreign currency exchange contracts – net | (0.2) | (0.6) | — | (0.8) | |||||||||||||||||||
Total long-term debt (C) | (5,255.6) | (404.1) | — | (5,659.7) | |||||||||||||||||||
Total financial instruments measured at fair value | $ | (5,238.7) | $ | (379.6) | $ | — | $ | (5,618.3) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Fair Value at April 30, 2020 | ||||||||||||||||||||
Marketable securities and other investments: (A) | |||||||||||||||||||||||
Equity mutual funds | $ | 8.7 | $ | — | $ | — | $ | 8.7 | |||||||||||||||
Municipal obligations | — | 24.2 | — | 24.2 | |||||||||||||||||||
Money market funds | 5.7 | — | — | 5.7 | |||||||||||||||||||
Derivative financial instruments: (B) | |||||||||||||||||||||||
Commodity contracts – net | (18.3) | (0.2) | — | (18.5) | |||||||||||||||||||
Foreign currency exchange contracts – net | 0.2 | 2.1 | — | 2.3 | |||||||||||||||||||
Total long-term debt (C) | (5,032.0) | (708.6) | — | (5,740.6) | |||||||||||||||||||
Total financial instruments measured at fair value | $ | (5,035.7) | $ | (682.5) | $ | — | $ | (5,718.2) |
October 31, 2019 | |||
Operating lease right-of-use assets | $ | 153.2 | |
Operating lease liabilities: | |||
Current operating lease liabilities | $ | 44.4 | |
Noncurrent operating lease liabilities | 116.2 | ||
Total operating lease liabilities | $ | 160.6 | |
Finance lease right-of-use assets: | |||
Machinery and equipment | $ | 12.1 | |
Accumulated depreciation | (6.1 | ) | |
Total property, plant, and equipment | $ | 6.0 | |
Finance lease liabilities: | |||
Other current liabilities | $ | 2.4 | |
Other noncurrent liabilities | 3.7 | ||
Total finance lease liabilities | $ | 6.1 |
July 31, 2020 | April 30, 2020 | ||||||||||
Operating lease right-of-use assets | $ | 138.3 | $ | 148.4 | |||||||
Operating lease liabilities: | |||||||||||
Current operating lease liabilities | $ | 35.9 | $ | 36.5 | |||||||
Noncurrent operating lease liabilities | 112.5 | 120.0 | |||||||||
Total operating lease liabilities | $ | 148.4 | $ | 156.5 | |||||||
Finance lease right-of-use assets: | |||||||||||
Machinery and equipment | $ | 10.2 | $ | 11.6 | |||||||
Accumulated depreciation | (4.9) | (5.9) | |||||||||
Total property, plant, and equipment | $ | 5.3 | $ | 5.7 | |||||||
Finance lease liabilities: | |||||||||||
Other current liabilities | $ | 2.1 | $ | 2.2 | |||||||
Other noncurrent liabilities | 3.2 | 3.5 | |||||||||
Total finance lease liabilities | $ | 5.3 | $ | 5.7 |
Three Months Ended October 31, 2019 | Six Months Ended October 31, 2019 | ||||||
Operating lease cost | $ | 12.9 | $ | 25.3 | |||
Finance lease cost: | |||||||
Amortization of right-of-use assets | 0.8 | 1.6 | |||||
Interest on lease liabilities | — | 0.1 | |||||
Variable lease cost | 6.3 | 12.6 | |||||
Short-term lease cost | 9.7 | 17.4 | |||||
Sublease income | (1.5 | ) | (2.3 | ) | |||
Net lease cost | $ | 28.2 | $ | 54.7 |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Operating lease cost | $ | 11.3 | $ | 12.4 | |||||||||||||||||||||||||
Finance lease cost: | |||||||||||||||||||||||||||||
Amortization of right-of-use assets | 0.6 | 0.8 | |||||||||||||||||||||||||||
Interest on lease liabilities | 0.1 | 0.1 | |||||||||||||||||||||||||||
Variable lease cost | 5.6 | 6.3 | |||||||||||||||||||||||||||
Short-term lease cost | 9.0 | 7.7 | |||||||||||||||||||||||||||
Sublease income | (1.5) | (0.8) | |||||||||||||||||||||||||||
Net lease cost | $ | 25.1 | $ | 26.5 |
Three Months Ended July 31, | ||||||||||||||||||||||||||
Six Months Ended October 31, 2019 | 2020 | 2019 | ||||||||||||||||||||||||
Cash paid for amounts included in the measurement of lease liabilities: | Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||||||||||||||||
Operating cash flows from operating leases | $ | 25.3 | Operating cash flows from operating leases | $ | 10.4 | $ | 13.1 | |||||||||||||||||||
Operating cash flows from finance leases | 0.1 | Operating cash flows from finance leases | — | 0.1 | ||||||||||||||||||||||
Financing cash flows from finance leases | 1.5 | Financing cash flows from finance leases | 0.9 | 0.7 | ||||||||||||||||||||||
Right-of-use assets obtained in exchange for new lease liabilities: | Right-of-use assets obtained in exchange for new lease liabilities: | |||||||||||||||||||||||||
Operating leases | 16.2 | Operating leases | — | — | ||||||||||||||||||||||
Finance leases | 0.8 | Finance leases | 0.3 | 0.5 |
October 31, 2019 | |||||||
Operating Leases | Finance Leases | ||||||
2020 (remainder of the year) | $ | 26.0 | $ | 1.4 | |||
2021 | 43.1 | 2.1 | |||||
2022 | 36.4 | 1.5 | |||||
2023 | 30.2 | 0.7 | |||||
2024 | 17.2 | 0.4 | |||||
2025 and beyond | 19.8 | 0.3 | |||||
Total undiscounted minimum lease payments | $ | 172.7 | $ | 6.4 | |||
Less: Imputed interest | 12.1 | 0.3 | |||||
Lease liabilities | $ | 160.6 | $ | 6.1 |
July 31, 2020 | |||||||||||||||||
Operating Leases | Finance Leases | ||||||||||||||||
2021 (remainder of the year) | $ | 30.2 | $ | 1.8 | |||||||||||||
2022 | 37.1 | 1.7 | |||||||||||||||
2023 | 34.4 | 1.0 | |||||||||||||||
2024 | 22.8 | 0.7 | |||||||||||||||
2025 | 14.8 | 0.3 | |||||||||||||||
2026 and beyond | 20.1 | 0.1 | |||||||||||||||
Total undiscounted minimum lease payments | $ | 159.4 | $ | 5.6 | |||||||||||||
Less: Imputed interest | 11.0 | 0.3 | |||||||||||||||
Lease liabilities | $ | 148.4 | $ | 5.3 |
July 31, 2020 | April 30, 2020 | ||||||||||
Weighted average remaining lease term (in years): | |||||||||||
Operating leases | 4.6 | 4.7 | |||||||||
Finance leases | 3.2 | 3.4 | |||||||||
Weighted average discount rate: | |||||||||||
Operating leases | 3.1 | % | 3.1 | % | |||||||
Finance leases | 2.9 | % | 2.9 | % |
Foreign Currency Translation Adjustment | Net Gains (Losses) on Cash Flow Hedging Derivatives (A) | Pension and Other Postretirement Liabilities (B) | Unrealized Gain (Loss) on Available- for-Sale Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at May 1, 2019 | $ | (35.5 | ) | $ | (40.4 | ) | $ | (110.0 | ) | $ | 4.1 | $ | (181.8 | ) | |||||
Reclassification adjustments | — | 0.2 | 3.2 | — | 3.4 | ||||||||||||||
Current period credit (charge) | 5.1 | (97.1 | ) | — | 0.5 | (91.5 | ) | ||||||||||||
Income tax benefit (expense) | — | 22.3 | (0.7 | ) | (0.1 | ) | 21.5 | ||||||||||||
Balance at October 31, 2019 | $ | (30.4 | ) | $ | (115.0 | ) | $ | (107.5 | ) | $ | 4.5 | $ | (248.4 | ) |
Foreign Currency Translation Adjustment | Net Gains (Losses) on Cash Flow Hedging Derivatives (A) | Pension and Other Postretirement Liabilities (B) | Unrealized Gain (Loss) on Available- for-Sale Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||
Balance at May 1, 2018 | $ | (16.4 | ) | $ | (2.9 | ) | $ | (101.0 | ) | $ | 3.6 | $ | (116.7 | ) | |||||
Reclassification adjustments | — | 0.2 | 4.3 | — | 4.5 | ||||||||||||||
Current period credit (charge) | (11.7 | ) | 10.5 | — | 0.8 | (0.4 | ) | ||||||||||||
Income tax benefit (expense) | — | (2.5 | ) | (1.1 | ) | (0.2 | ) | (3.8 | ) | ||||||||||
Balance at October 31, 2018 | $ | (28.1 | ) | $ | 5.3 | $ | (97.8 | ) | $ | 4.2 | $ | (116.4 | ) |
Foreign Currency Translation Adjustment | Net Gains (Losses) on Cash Flow Hedging Derivatives (A) | Pension and Other Postretirement Liabilities (B) | Unrealized Gain (Loss) on Available- for-Sale Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance at May 1, 2020 | $ | (50.5) | $ | (185.6) | $ | (146.7) | $ | 3.8 | $ | (379.0) | |||||||||||||||||||
Reclassification adjustments | — | 3.4 | 2.2 | — | 5.6 | ||||||||||||||||||||||||
Current period credit (charge) | 12.9 | — | — | 1.1 | 14.0 | ||||||||||||||||||||||||
Income tax benefit (expense) | — | (0.8) | (0.5) | (0.2) | (1.5) | ||||||||||||||||||||||||
Balance at July 31, 2020 | $ | (37.6) | $ | (183.0) | $ | (145.0) | $ | 4.7 | $ | (360.9) |
Foreign Currency Translation Adjustment | Net Gains (Losses) on Cash Flow Hedging Derivatives (A) | Pension and Other Postretirement Liabilities (B) | Unrealized Gain (Loss) on Available- for-Sale Securities | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Balance at May 1, 2019 | $ | (35.5) | $ | (40.4) | $ | (110.0) | $ | 4.1 | $ | (181.8) | |||||||||||||||||||
Reclassification adjustments | — | 0.1 | 1.4 | — | 1.5 | ||||||||||||||||||||||||
Current period credit (charge) | 4.5 | (53.0) | — | 0.4 | (48.1) | ||||||||||||||||||||||||
Income tax benefit (expense) | — | 12.1 | (0.3) | (0.1) | 11.7 | ||||||||||||||||||||||||
Balance at July 31, 2019 | $ | (31.0) | $ | (81.2) | $ | (108.9) | $ | 4.4 | $ | (216.7) |
October 31, 2019 | April 30, 2019 | ||||
Common shares authorized | 300.0 | 300.0 | |||
Common shares outstanding | 114.1 | 113.7 | |||
Treasury shares | 32.4 | 32.8 |
July 31, 2020 | April 30, 2020 | ||||||||||
Common shares authorized | 300.0 | 300.0 | |||||||||
Common shares outstanding | 114.1 | 114.1 | |||||||||
Treasury shares | 32.4 | 32.4 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||
2019 | 2018 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | ||||||||||||||||
Net sales | $ | 1,957.8 | $ | 2,021.5 | (3 | )% | $ | 3,736.7 | $ | 3,924.0 | (5 | )% | |||||||||
Gross profit | $ | 754.0 | $ | 771.3 | (2 | ) | $ | 1,453.6 | $ | 1,449.5 | — | ||||||||||
% of net sales | 38.5 | % | 38.2 | % | 38.9 | % | 36.9 | % | |||||||||||||
Operating income | $ | 329.8 | $ | 330.5 | — | $ | 587.4 | $ | 557.4 | 5 | |||||||||||
% of net sales | 16.8 | % | 16.3 | % | 15.7 | % | 14.2 | % | |||||||||||||
Net income: | |||||||||||||||||||||
Net income | $ | 211.2 | $ | 188.5 | 12 | $ | 365.8 | $ | 321.5 | 14 | |||||||||||
Net income per common share – assuming dilution | $ | 1.85 | $ | 1.66 | 11 | $ | 3.21 | $ | 2.83 | 13 | |||||||||||
Adjusted gross profit (A) | $ | 753.1 | $ | 771.4 | (2 | ) | $ | 1,423.7 | $ | 1,471.6 | (3 | ) | |||||||||
% of net sales | 38.5 | % | 38.2 | % | 38.1 | % | 37.5 | % | |||||||||||||
Adjusted operating income (A) | $ | 391.0 | $ | 415.7 | (6 | ) | $ | 681.7 | $ | 732.8 | (7 | ) | |||||||||
% of net sales | 20.0 | % | 20.6 | % | 18.2 | % | 18.7 | % | |||||||||||||
Adjusted income: (A) | |||||||||||||||||||||
Income | $ | 257.5 | $ | 246.5 | 4 | $ | 437.2 | $ | 448.9 | (3 | ) | ||||||||||
Earnings per share – assuming dilution | $ | 2.26 | $ | 2.17 | 4 | $ | 3.84 | $ | 3.95 | (3 | ) |
Three Months Ended July 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||||||||||
Net sales | $ | 1,971.8 | $ | 1,778.9 | 11 | % | |||||||||||||||||||||||||||||||||||||||||
Gross profit | $ | 775.4 | $ | 699.6 | 11 | ||||||||||||||||||||||||||||||||||||||||||
% of net sales | 39.3 | % | 39.3 | % | |||||||||||||||||||||||||||||||||||||||||||
Operating income | $ | 361.1 | $ | 257.6 | 40 | ||||||||||||||||||||||||||||||||||||||||||
% of net sales | 18.3 | % | 14.5 | % | |||||||||||||||||||||||||||||||||||||||||||
Net income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | $ | 237.0 | $ | 154.6 | 53 | ||||||||||||||||||||||||||||||||||||||||||
Net income per common share – assuming dilution | $ | 2.08 | $ | 1.36 | 53 | ||||||||||||||||||||||||||||||||||||||||||
Adjusted gross profit (A) | $ | 759.2 | $ | 670.6 | 13 | ||||||||||||||||||||||||||||||||||||||||||
% of net sales | 38.5 | % | 37.7 | % | |||||||||||||||||||||||||||||||||||||||||||
Adjusted operating income (A) | $ | 404.5 | $ | 290.7 | 39 | ||||||||||||||||||||||||||||||||||||||||||
% of net sales | 20.5 | % | 16.3 | % | |||||||||||||||||||||||||||||||||||||||||||
Adjusted income: (A) | |||||||||||||||||||||||||||||||||||||||||||||||
Income | $ | 270.0 | $ | 179.7 | 50 | ||||||||||||||||||||||||||||||||||||||||||
Earnings per share – assuming dilution | $ | 2.37 | $ | 1.58 | 50 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||||||||||
2019 | 2018 | Increase (Decrease) | % | 2019 | 2018 | Increase (Decrease) | % | ||||||||||||||||||||||
Net sales | $ | 1,957.8 | $ | 2,021.5 | $ | (63.7 | ) | (3 | )% | $ | 3,736.7 | $ | 3,924.0 | $ | (187.3 | ) | (5 | )% | |||||||||||
Ainsworth acquisition | — | — | — | — | (25.4 | ) | — | (25.4 | ) | (1 | ) | ||||||||||||||||||
Baking divestiture | — | (32.8 | ) | 32.8 | 2 | — | (105.9 | ) | 105.9 | 3 | |||||||||||||||||||
Foreign currency exchange | 1.8 | — | 1.8 | — | 3.6 | — | 3.6 | — | |||||||||||||||||||||
Net sales excluding acquisition, divestiture, and foreign currency exchange (A) | $ | 1,959.6 | $ | 1,988.7 | $ | (29.1 | ) | (1 | )% | $ | 3,714.9 | $ | 3,818.1 | $ | (103.2 | ) | (3 | )% |
Three Months Ended October 31, | Six Months Ended October 31, | Three Months Ended July 31, | ||||||||||||||||||||||||||||||||||||||
2019 | 2018 | 2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||||||||||||||||
Gross profit | 38.5 | % | 38.2 | % | 38.9 | % | 36.9 | % | Gross profit | 39.3 | % | 39.3 | % | |||||||||||||||||||||||||||
Selling, distribution, and administrative expenses: | Selling, distribution, and administrative expenses: | |||||||||||||||||||||||||||||||||||||||
Marketing | 6.3 | % | 6.8 | % | 6.9 | % | 7.1 | % | Marketing | 6.2 | % | 7.5 | % | |||||||||||||||||||||||||||
Selling | 3.2 | 3.3 | 3.5 | 3.4 | Selling | 3.3 | 3.9 | |||||||||||||||||||||||||||||||||
Distribution | 3.6 | 3.3 | 3.6 | 3.4 | Distribution | 3.5 | 3.6 | |||||||||||||||||||||||||||||||||
General and administrative | 5.4 | 5.6 | 5.9 | 5.7 | General and administrative | 5.1 | 6.5 | |||||||||||||||||||||||||||||||||
Total selling, distribution, and administrative expenses | 18.5 | % | 18.9 | % | 19.9 | % | 19.5 | % | Total selling, distribution, and administrative expenses | 18.1 | % | 21.4 | % | |||||||||||||||||||||||||||
Amortization | 3.0 | 3.0 | 3.1 | 3.1 | Amortization | 3.0 | 3.3 | |||||||||||||||||||||||||||||||||
Other special project costs | 0.2 | 1.3 | 0.2 | 0.8 | Other special project costs | — | 0.2 | |||||||||||||||||||||||||||||||||
Other operating expense (income) – net | — | (1.3 | ) | — | (0.7 | ) | Other operating expense (income) – net | (0.1) | — | |||||||||||||||||||||||||||||||
Operating income | 16.8 | % | 16.3 | % | 15.7 | % | 14.2 | % | Operating income | 18.3 | % | 14.5 | % |
Three Months Ended July 31, | |||||||||||||||||||||||||||||||||||||||||||||||
2020 | 2019 | % Increase (Decrease) | |||||||||||||||||||||||||||||||||||||||||||||
Net sales: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Pet Foods | $ | 692.6 | $ | 669.9 | 3 | % | |||||||||||||||||||||||||||||||||||||||||
U.S. Retail Coffee | 570.9 | 465.7 | 23 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Consumer Foods | 489.2 | 402.2 | 22 | ||||||||||||||||||||||||||||||||||||||||||||
International and Away From Home | 219.1 | 241.1 | (9) | ||||||||||||||||||||||||||||||||||||||||||||
Segment profit: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Pet Foods | $ | 125.3 | $ | 120.1 | 4 | % | |||||||||||||||||||||||||||||||||||||||||
U.S. Retail Coffee | 182.6 | 128.9 | 42 | ||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Consumer Foods | 131.5 | 81.0 | 62 | ||||||||||||||||||||||||||||||||||||||||||||
International and Away From Home | 30.9 | 32.3 | (4) | ||||||||||||||||||||||||||||||||||||||||||||
Segment profit margin: | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Pet Foods | 18.1 | % | 17.9 | % | |||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Coffee | 32.0 | 27.7 | |||||||||||||||||||||||||||||||||||||||||||||
U.S. Retail Consumer Foods | 26.9 | 20.1 | |||||||||||||||||||||||||||||||||||||||||||||
International and Away From Home | 14.1 | 13.4 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||||||||
2019 | 2018 | % Increase (Decrease) | 2019 | 2018 | % Increase (Decrease) | ||||||||||||||||
Net sales: | |||||||||||||||||||||
U.S. Retail Pet Foods | $ | 709.9 | $ | 728.1 | (2 | )% | $ | 1,379.8 | $ | 1,399.3 | (1 | )% | |||||||||
U.S. Retail Coffee | 543.4 | 544.9 | — | 1,009.1 | 1,034.4 | (2 | ) | ||||||||||||||
U.S. Retail Consumer Foods | 426.1 | 461.9 | (8 | ) | 828.3 | 945.2 | (12 | ) | |||||||||||||
International and Away From Home | 278.4 | 286.6 | (3 | ) | 519.5 | 545.1 | (5 | ) | |||||||||||||
Segment profit: | |||||||||||||||||||||
U.S. Retail Pet Foods | $ | 137.0 | $ | 123.9 | 11 | % | $ | 257.1 | $ | 224.3 | 15 | % | |||||||||
U.S. Retail Coffee | 182.5 | 174.3 | 5 | 311.4 | 322.1 | (3 | ) | ||||||||||||||
U.S. Retail Consumer Foods | 91.4 | 134.3 | (32 | ) | 172.4 | 231.6 | (26 | ) | |||||||||||||
International and Away From Home | 50.4 | 56.7 | (11 | ) | 82.7 | 100.1 | (17 | ) | |||||||||||||
Segment profit margin: | |||||||||||||||||||||
U.S. Retail Pet Foods | 19.3 | % | 17.0 | % | 18.6 | % | 16.0 | % | |||||||||||||
U.S. Retail Coffee | 33.6 | 32.0 | 30.9 | 31.1 | |||||||||||||||||
U.S. Retail Consumer Foods | 21.5 | 29.1 | 20.8 | 24.5 | |||||||||||||||||
International and Away From Home | 18.1 | 19.8 | 15.9 | 18.4 |
Six Months Ended October 31, | Three Months Ended July 31, | |||||||||||||||||||||||
2019 | 2018 | 2020 | 2019 | |||||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 445.5 | $ | 445.9 | Net cash provided by (used for) operating activities | $ | 409.0 | $ | 221.5 | |||||||||||||||
Net cash provided by (used for) investing activities | (104.2 | ) | (1,718.9 | ) | Net cash provided by (used for) investing activities | (49.2) | (52.1) | |||||||||||||||||
Net cash provided by (used for) financing activities | (395.2 | ) | 1,256.2 | Net cash provided by (used for) financing activities | (357.3) | (222.6) | ||||||||||||||||||
Net cash provided by (used for) operating activities | $ | 445.5 | $ | 445.9 | Net cash provided by (used for) operating activities | $ | 409.0 | $ | 221.5 | |||||||||||||||
Additions to property, plant, and equipment | (136.4 | ) | (179.1 | ) | Additions to property, plant, and equipment | (76.6) | (73.0) | |||||||||||||||||
Free cash flow (A) | $ | 309.1 | $ | 266.8 | Free cash flow (A) | $ | 332.4 | $ | 148.5 |
(A)Free cash flow is a non-GAAP financial measure used by management to evaluate the amount of cash available for debt repayment, dividend distribution, acquisition opportunities, share repurchases, and other corporate purposes. The $187.5 increase in cash |
October 31, 2019 | April 30, 2019 | ||||||
Current portion of long-term debt | $ | 799.5 | $ | 798.5 | |||
Short-term borrowings | 327.9 | 426.0 | |||||
Long-term debt, less current portion | 4,584.5 | 4,686.3 | |||||
Total debt | $ | 5,711.9 | $ | 5,910.8 | |||
Shareholders’ equity | 8,095.3 | 7,970.5 | |||||
Total capital | $ | 13,807.2 | $ | 13,881.3 |
July 31, 2020 | April 30, 2020 | ||||||||||
Current portion of long-term debt | $ | 399.8 | $ | — | |||||||
Short-term borrowings | 296.0 | 248.0 | |||||||||
Long-term debt, less current portion | 4,672.8 | 5,373.3 | |||||||||
Total debt | $ | 5,368.6 | $ | 5,621.3 | |||||||
Shareholders’ equity | 8,345.2 | 8,190.9 | |||||||||
Total capital | $ | 13,713.8 | $ | 13,812.2 |
Three Months Ended July 31, | |||||||||||||||||||||||||||||
2020 | 2019 | ||||||||||||||||||||||||||||
Gross profit reconciliation: | |||||||||||||||||||||||||||||
Gross profit | $ | 775.4 | $ | 699.6 | |||||||||||||||||||||||||
Unallocated derivative losses (gains) | (16.2) | (29.0) | |||||||||||||||||||||||||||
Adjusted gross profit | $ | 759.2 | $ | 670.6 | |||||||||||||||||||||||||
Operating income reconciliation: | |||||||||||||||||||||||||||||
Operating income | $ | 361.1 | $ | 257.6 | |||||||||||||||||||||||||
Amortization | 59.6 | 58.8 | |||||||||||||||||||||||||||
Unallocated derivative losses (gains) | (16.2) | (29.0) | |||||||||||||||||||||||||||
Other special project costs | — | 3.3 | |||||||||||||||||||||||||||
Adjusted operating income | $ | 404.5 | $ | 290.7 | |||||||||||||||||||||||||
Net income reconciliation: | |||||||||||||||||||||||||||||
Net income | $ | 237.0 | $ | 154.6 | |||||||||||||||||||||||||
Income tax expense | 76.6 | 52.1 | |||||||||||||||||||||||||||
Amortization | 59.6 | 58.8 | |||||||||||||||||||||||||||
Unallocated derivative losses (gains) | (16.2) | (29.0) | |||||||||||||||||||||||||||
Other special project costs | — | 3.3 | |||||||||||||||||||||||||||
Adjusted income before income taxes | $ | 357.0 | $ | 239.8 | |||||||||||||||||||||||||
Income taxes, as adjusted | 87.0 | 60.1 | |||||||||||||||||||||||||||
Adjusted income | $ | 270.0 | $ | 179.7 | |||||||||||||||||||||||||
Weighted-average shares – assuming dilution | 114.1 | 113.9 | |||||||||||||||||||||||||||
Adjusted earnings per share – assuming dilution | $ | 2.37 | $ | 1.58 |
Three Months Ended October 31, | Six Months Ended October 31, | ||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Gross profit reconciliation: | |||||||||||||||
Gross profit | $ | 754.0 | $ | 771.3 | $ | 1,453.6 | $ | 1,449.5 | |||||||
Unallocated derivative losses (gains) | (0.9 | ) | 0.1 | (29.9 | ) | 22.1 | |||||||||
Adjusted gross profit | $ | 753.1 | $ | 771.4 | $ | 1,423.7 | $ | 1,471.6 | |||||||
Operating income reconciliation: | |||||||||||||||
Operating income | $ | 329.8 | $ | 330.5 | $ | 587.4 | $ | 557.4 | |||||||
Amortization | 58.8 | 59.7 | 117.6 | 120.2 | |||||||||||
Unallocated derivative losses (gains) | (0.9 | ) | 0.1 | (29.9 | ) | 22.1 | |||||||||
Other special project costs | 3.3 | 25.4 | 6.6 | 33.1 | |||||||||||
Adjusted operating income | $ | 391.0 | $ | 415.7 | $ | 681.7 | $ | 732.8 | |||||||
Net income reconciliation: | |||||||||||||||
Net income | $ | 211.2 | $ | 188.5 | $ | 365.8 | $ | 321.5 | |||||||
Income tax expense | 67.9 | 80.9 | 120.0 | 121.0 | |||||||||||
Amortization | 58.8 | 59.7 | 117.6 | 120.2 | |||||||||||
Unallocated derivative losses (gains) | (0.9 | ) | 0.1 | (29.9 | ) | 22.1 | |||||||||
Other special project costs | 3.3 | 25.4 | 6.6 | 33.1 | |||||||||||
Adjusted income before income taxes | $ | 340.3 | $ | 354.6 | $ | 580.1 | $ | 617.9 | |||||||
Income taxes, as adjusted | 82.8 | 108.1 | 142.9 | 169.0 | |||||||||||
Adjusted income | $ | 257.5 | $ | 246.5 | $ | 437.2 | $ | 448.9 | |||||||
Weighted-average shares – assuming dilution | 114.1 | 113.7 | 114.0 | 113.7 | |||||||||||
Adjusted earnings per share – assuming dilution | $ | 2.26 | $ | 2.17 | $ | 3.84 | $ | 3.95 |
October 31, 2019 | April 30, 2019 | July 31, 2020 | April 30, 2020 | |||||||||||||||
High | $ | 43.7 | $ | 51.6 | High | $ | 37.6 | $ | 37.8 | |||||||||
Low | 13.3 | 25.3 | Low | 13.6 | 14.5 | |||||||||||||
Average | 28.4 | 37.0 | Average | 25.7 | 26.9 |
(a) | (b) | (c) | (d) | ||||||||||
Period | Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||
August 1, 2019 - August 31, 2019 | 404 | $ | 114.02 | — | 3,586,598 | ||||||||
September 1, 2019 - September 30, 2019 | 3,306 | 106.31 | — | 3,586,598 | |||||||||
October 1, 2019 - October 31, 2019 | 1,220 | 107.72 | — | 3,586,598 | |||||||||
Total | 4,930 | $ | 107.29 | — | 3,586,598 |
Period | (a) | (b) | (c) | (d) | ||||||||||||||||||||||
Total Number of Shares Purchased | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs | |||||||||||||||||||||||
May 1, 2020 - May 31, 2020 | 245 | $ | 108.40 | — | 3,586,598 | |||||||||||||||||||||
June 1, 2020 - June 30, 2020 | 39,451 | 108.32 | — | 3,586,598 | ||||||||||||||||||||||
July 1, 2020 - July 31, 2020 | 15,812 | 108.37 | — | 3,586,598 | ||||||||||||||||||||||
Total | 55,508 | $ | 108.33 | — | 3,586,598 |
August 25, 2020 | THE J. M. SMUCKER COMPANY | ||||
/s/ Mark T. Smucker | |||||
By: MARK T. SMUCKER | |||||
President and Chief Executive Officer | |||||
/s/ | |||||
By: | |||||
Exhibit Number | Exhibit Description | ||||
101.INS | XBRL Instance Document - The instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document | ||||
101.SCH | XBRL Taxonomy Extension Schema Document | ||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | ||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | ||||
104 | The cover page of this Quarterly Report on Form 10-Q for the quarter ended |