Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | ||
Jan. 31, 2014 | Feb. 28, 2014 | Feb. 28, 2014 | |
Common stock, Class A, voting [Member] | Common stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ' | ' | ' |
Entity Registrant Name | 'BROWN FORMAN CORP | ' | ' |
Entity Central Index Key | '0000014693 | ' | ' |
Document Type | '10-Q | ' | ' |
Document Period End Date | 31-Jan-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'Q3 | ' | ' |
Current Fiscal Year End Date | '--04-30 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 84,462,242 | 128,823,272 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net sales | $1,078 | $1,027 | $3,053 | $2,919 |
Excise taxes | 296 | 280 | 751 | 730 |
Cost of sales | 250 | 240 | 717 | 694 |
Gross profit | 532 | 507 | 1,585 | 1,495 |
Advertising expenses | 116 | 111 | 329 | 309 |
Selling, general, and administrative expenses | 161 | 162 | 479 | 470 |
Other expense (income), net | 0 | -3 | -6 | -5 |
Operating income | 255 | 237 | 783 | 721 |
Interest income | 0 | 1 | 2 | 2 |
Interest expense | 6 | 9 | 20 | 19 |
Income before income taxes | 249 | 229 | 765 | 704 |
Income taxes | 72 | 72 | 239 | 226 |
Net income | $177 | $157 | $526 | $478 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.83 | $0.74 | $2.46 | $2.24 |
Diluted | $0.82 | $0.73 | $2.45 | $2.22 |
Cash dividends per common share: | ' | ' | ' | ' |
Declared | $0.58 | $4.51 | $1.09 | $4.98 |
Paid | $0.29 | $4.25 | $0.80 | $4.72 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $177 | $157 | $526 | $478 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Currency translation adjustments | -14 | 14 | -19 | 13 |
Cash flow hedge adjustments | 7 | -2 | 3 | -3 |
Postretirement benefits adjustments | 5 | 5 | 24 | 14 |
Net other comprehensive income (loss) | -2 | 17 | 8 | 24 |
Comprehensive income | $175 | $174 | $534 | $502 |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (Unaudited) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $287 | $204 |
Accounts receivable, less allowance for doubtful accounts of $9 and $9 at April 30 and January 31, respectively | 679 | 548 |
Inventories: | ' | ' |
Barreled whiskey | 489 | 456 |
Finished goods | 188 | 177 |
Work in process | 145 | 137 |
Raw materials and supplies | 51 | 57 |
Total inventories | 873 | 827 |
Current deferred tax assets | 56 | 29 |
Other current assets | 208 | 213 |
Total current assets | 2,103 | 1,821 |
Property, plant, and equipment, net | 497 | 450 |
Goodwill | 619 | 617 |
Other intangible assets | 670 | 668 |
Deferred tax assets | 16 | 14 |
Other assets | 88 | 56 |
Total assets | 3,993 | 3,626 |
Liabilities | ' | ' |
Accounts payable and accrued expenses | 452 | 451 |
Dividends payable | 62 | 0 |
Accrued income taxes | 74 | 10 |
Current deferred tax liabilities | 7 | 7 |
Short-term borrowings | 9 | 3 |
Current portion of long-term debt | 0 | 2 |
Total current liabilities | 604 | 473 |
Long-term debt | 997 | 997 |
Deferred tax liabilities | 97 | 180 |
Accrued pension and other postretirement benefits | 245 | 280 |
Other liabilities | 161 | 68 |
Total liabilities | 2,104 | 1,998 |
Commitments and contingencies | ' | ' |
Stockholders' Equity | ' | ' |
Additional paid-in capital | 80 | 71 |
Retained earnings | 2,777 | 2,500 |
Accumulated other comprehensive income (loss), net of tax | -203 | -211 |
Treasury stock, at cost (13,606,000 and 14,044,000 shares at April 30 and January 31, respectively) | -799 | -766 |
Total stockholders' equity | 1,889 | 1,628 |
Total liabilities and stockholders' equity | 3,993 | 3,626 |
Common stock, Class A, voting [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Common stock: | 13 | 13 |
Common stock, Class B, nonvoting [Member] | ' | ' |
Stockholders' Equity | ' | ' |
Common stock: | $21 | $21 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Allowance for doubtful accounts | $9 | $9 |
Treasury stock, shares | 14,044,000 | 13,606,000 |
Common stock, Class A, voting [Member] | ' | ' |
Common stock, shares authorized | 85,000,000 | 85,000,000 |
Common stock, shares issued | 85,000,000 | 85,000,000 |
Common stock, Class B, nonvoting [Member] | ' | ' |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 142,313,000 | 142,313,000 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $526 | $478 |
Adjustments to reconcile net income to net cash provided by operations: | ' | ' |
Depreciation and amortization | 36 | 36 |
Stock-based compensation expense | 9 | 7 |
Deferred income taxes | -22 | 29 |
Changes in assets and liabilities | -159 | -183 |
Cash provided by operating activities | 390 | 367 |
Cash flows from investing activities: | ' | ' |
Additions to property, plant, and equipment | -87 | -59 |
Computer software expenditures | -2 | 0 |
Cash used for investing activities | -89 | -59 |
Cash flows from financing activities: | ' | ' |
Net increase in short-term borrowings | 8 | 6 |
Repayment of long-term debt | -2 | -3 |
Proceeds from long-term debt | 0 | 748 |
Debt issuance costs | 0 | -7 |
Net payments related to exercise of stock-based awards | -9 | -15 |
Excess tax benefits from stock-based awards | 9 | 18 |
Acquisition of treasury stock | -49 | 0 |
Dividends paid | -171 | -1,008 |
Cash used for financing activities | -214 | -261 |
Effect of exchange rate changes on cash and cash equivalents | -4 | 2 |
Net increase (decrease) in cash and cash equivalents | 83 | 49 |
Cash and cash equivalents, beginning of period | 204 | 338 |
Cash and cash equivalents, end of period | $287 | $387 |
Condensed_Consolidated_Financi
Condensed Consolidated Financial Statements | 9 Months Ended |
Jan. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Condensed Consolidated Financial Statements | ' |
Condensed Consolidated Financial Statements | |
We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended April 30, 2013 (the 2013 Form 10-K). | |
In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial results for the periods covered by this report. | |
We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2013 Form 10-K, although during the first quarter of fiscal 2014 we adopted new guidance for disclosures about offsetting assets and liabilities and for reporting amounts reclassified out of accumulated other comprehensive income. Our adoption of the new guidance had no material impact on our financial statements. |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2014 | |
Inventory Disclosure [Abstract] | ' |
Inventories | ' |
Inventories | |
We use the last-in, first-out (LIFO) method to determine the cost of most of our inventories. If the LIFO method had not been used, inventories at current cost would have been $209 million higher than reported as of April 30, 2013, and $214 million higher than reported as of January 31, 2014. Changes in the LIFO valuation reserve for interim periods are based on a proportionate allocation of the estimated change for the entire fiscal year. |
Income_Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
Income Taxes | |
Our consolidated interim effective tax rate is based upon our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions in which we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. The effective tax rate of 31.2% for the nine months ended January 31, 2014, is based on an expected tax rate of 31.6% on ordinary income for the full fiscal year, as adjusted for the recognition of net tax expense related to discrete items arising during the period and interest on previously provided tax contingencies. Our expected tax rate includes current fiscal year additions for existing tax contingency items. | |
We believe there will be no material change in our gross unrecognized tax benefits in the next 12 months. | |
We file income tax returns in the United States, including several state and local jurisdictions, as well as in several other countries in which we conduct business. The major jurisdictions and their earliest fiscal years that are currently open for tax examinations are 2006 in the United States, 2012 in the United Kingdom, 2010 in Ireland and Italy, 2009 in Australia and Poland, 2008 in Finland, and 2002 in Mexico. The audit of our fiscal 2012 U.S. federal tax return was concluded during the current fiscal year. In addition, we are participating in the Internal Revenue Service’s Compliance Assurance Program for our fiscal 2013 and 2014 tax years. | |
During the quarter ended January 31, 2014, we deferred a tax benefit of $95 million that resulted primarily from the release of certain deferred tax liabilities in connection with an intercompany transfer of assets. The deferred benefit, which is included in "other liabilities" on the accompanying condensed consolidated balance sheet as of January 31, 2014, will be amortized to tax expense for financial reporting purposes under Accounting Standard Codification (“ASC”) 740-10-25-3(e) (Income Taxes) and ASC 810-45-8 (Consolidation) over approximately six years. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock-based compensation awards, including stock options, stock-settled stock appreciation rights, restricted stock units, deferred stock units, and shares of restricted stock. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP). | ||||||||||||||||
Some restricted shares have non-forfeitable rights to dividends declared on common stock. As a result, these restricted shares are considered participating securities in the calculation of earnings per share. | ||||||||||||||||
The following table presents information concerning basic and diluted earnings per share: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
(Dollars in millions, except per share amounts) | 2013 | 2014 | 2013 | 2014 | ||||||||||||
Net income available to common stockholders | $ | 157 | $ | 177 | $ | 478 | $ | 526 | ||||||||
Share data (in thousands): | ||||||||||||||||
Basic average common shares outstanding | 213,459 | 213,151 | 213,301 | 213,493 | ||||||||||||
Dilutive effect of stock-based awards | 1,592 | 1,641 | 1,612 | 1,623 | ||||||||||||
Diluted average common shares outstanding | 215,051 | 214,792 | 214,913 | 215,116 | ||||||||||||
Basic earnings per share | $ | 0.74 | $ | 0.83 | $ | 2.24 | $ | 2.46 | ||||||||
Diluted earnings per share | $ | 0.73 | $ | 0.82 | $ | 2.22 | $ | 2.45 | ||||||||
We excluded common stock-based awards for approximately 524,000 shares and 410,000 shares from the calculation of diluted earnings per share for the three months ended January 31, 2013 and 2014, respectively. We excluded common stock-based awards for approximately 531,000 shares and 411,000 shares from the calculation of diluted earnings per share for the nine months ended January 31, 2013 and 2014, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method. |
Contingencies
Contingencies | 9 Months Ended |
Jan. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Contingencies | ' |
Commitments and Contingencies | |
We operate in a litigious environment, and we are sued in the normal course of business. Sometimes plaintiffs seek substantial damages. Significant judgment is required in predicting the outcome of these suits and claims, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and we can make a reasonable estimate of the loss, and then adjust the accrual as appropriate to reflect changes in facts and circumstances. We do not believe these loss contingencies, individually or in the aggregate, would have a material adverse effect on our financial position, results of operations, or liquidity. No material accrued loss contingencies are recorded as of January 31, 2014. | |
We have guaranteed the repayment by a third-party importer of its obligation under a bank credit facility that it uses in connection with its importation of our products in a foreign market. If the importer were to default on that obligation, which we believe is unlikely, our maximum possible exposure under the existing terms of the guaranty would be approximately $43 million (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. | |
As of January 31, 2014, our actual exposure under the guaranty of the importer's obligation is approximately $12 million. We also have trade receivables from that importer of approximately $32 million at that date, which we expect to collect in full and according to agreed-upon terms. |
Pension_and_Other_Postretireme
Pension and Other Postretirement Benefits | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Pension and Other Postretirement Benefits | ' | |||||||||||||||
Pension and Other Postretirement Benefits | ||||||||||||||||
The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
(Dollars in millions) | 2013 | 2014 | 2013 | 2014 | ||||||||||||
Pension Benefits: | ||||||||||||||||
Service cost | $ | 5 | $ | 5 | $ | 15 | $ | 16 | ||||||||
Interest cost | 9 | 8 | 26 | 23 | ||||||||||||
Expected return on plan assets | (10 | ) | (10 | ) | (31 | ) | (30 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service cost | — | — | 1 | 1 | ||||||||||||
Net actuarial loss | 7 | 8 | 21 | 23 | ||||||||||||
Net cost | $ | 11 | $ | 11 | $ | 32 | $ | 33 | ||||||||
Other Postretirement Benefits: | ||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||
Interest cost | 1 | 1 | 2 | 3 | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||
Net cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | ||||||||
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Measurements | ' | ||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based upon the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are: | |||||||||||||||||
• | Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
• | Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be derived from or corroborated by observable market data. | ||||||||||||||||
• | Level 3 – Unobservable inputs that are supported by little or no market activity. | ||||||||||||||||
The following table summarizes the assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
April 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Currency derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||
Liabilities: | |||||||||||||||||
Currency derivatives | — | 4 | — | 4 | |||||||||||||
Short-term borrowings | — | 3 | — | 3 | |||||||||||||
Current portion of long-term debt | — | 2 | — | 2 | |||||||||||||
Long-term debt | — | 1,011 | — | 1,011 | |||||||||||||
January 31, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Currency derivatives | — | 11 | — | 11 | |||||||||||||
Liabilities: | |||||||||||||||||
Currency derivatives | — | 2 | — | 2 | |||||||||||||
Short-term borrowings | — | 9 | — | 9 | |||||||||||||
Long-term debt | — | 952 | — | 952 | |||||||||||||
We determine the fair values of our currency derivatives (forwards and options) using standard valuation models. The significant inputs used in these models are readily available in public markets or can be derived from observable market transactions. Inputs used in these standard valuation models include the applicable exchange rate, forward rates and discount rates for the currency derivatives. The standard valuation model for foreign currency options also uses implied volatility as an additional input. The discount rates are based on the historical U.S. Treasury rates, and the implied volatility specific to individual foreign currency options is based on quoted rates from financial institutions. | |||||||||||||||||
The fair value of short-term borrowings approximates the carrying amount. We determine the fair value of long-term debt primarily based on the prices at which similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. | |||||||||||||||||
We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements. |
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | |||||||||||||||
Fair Value of Financial Instruments | ' | |||||||||||||||
Fair Value of Financial Instruments | ||||||||||||||||
The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of derivative financial instruments and long-term debt as discussed in Note 7. | ||||||||||||||||
Below is a comparison of the fair values and carrying amounts of these instruments: | ||||||||||||||||
30-Apr-13 | 31-Jan-14 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Dollars in millions) | Amount | Value | Amount | Value | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 204 | $ | 204 | $ | 287 | $ | 287 | ||||||||
Currency derivatives | 5 | 5 | 11 | 11 | ||||||||||||
Liabilities: | ||||||||||||||||
Currency derivatives | 4 | 4 | 2 | 2 | ||||||||||||
Short-term borrowings | 3 | 3 | 9 | 9 | ||||||||||||
Current portion of long-term debt | 2 | 2 | — | — | ||||||||||||
Long-term debt | 997 | 1,011 | 997 | 952 | ||||||||||||
Derivative_Financial_Instrumen
Derivative Financial Instruments | 9 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Derivative Financial Instruments | ' | |||||||||||||||||||
Derivative Financial Instruments | ||||||||||||||||||||
Our multinational business exposes us to global market risks, including the effect of fluctuations in currency exchange rates, commodity prices, and interest rates. We use derivatives to help manage financial exposures that occur in the normal course of business. We formally document the purpose of each derivative contract, which includes linking the contract to the financial exposure it is designed to mitigate. We do not hold or issue derivatives for trading or speculative purposes. | ||||||||||||||||||||
We use currency derivative contracts to limit our exposure to the currency exchange risk that we cannot mitigate internally by using netting strategies. We designate most of these contracts as cash flow hedges of forecasted transactions (expected to occur within three years). We record all changes in the fair value of cash flow hedges (except any ineffective portion) in accumulated other comprehensive income (AOCI) until the underlying hedged transaction occurs, at which time we reclassify that amount into earnings. We assess the effectiveness of these hedges based on changes in forward exchange rates. The ineffective portion of the changes in fair value of our hedges (recognized immediately in earnings) during the periods presented in this report was not material. | ||||||||||||||||||||
We do not designate some of our currency derivatives as hedges because we use them to at least partially offset the immediate earnings impact of changes in foreign exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings. | ||||||||||||||||||||
We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with total notional amounts totaling $686 million at April 30, 2013 and $1,042 million at January 31, 2014. | ||||||||||||||||||||
We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to physically take delivery of the corn underlying each contract and use it for production over a reasonable period of time. Accordingly, we account for these contracts as normal purchases rather than derivative instruments. | ||||||||||||||||||||
From time to time, we manage our interest rate risk with swap contracts. However, no such swaps were outstanding at | ||||||||||||||||||||
April 30, 2013 or January 31, 2014. | ||||||||||||||||||||
The following tables present the amounts affecting our consolidated statements of operations for the periods covered by this report: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
(Dollars in millions) | Classification | 2013 | 2014 | |||||||||||||||||
Currency derivatives designated as cash flow hedge: | ||||||||||||||||||||
Net gain (loss) recognized in AOCI | n/a | $ | (4 | ) | $ | 10 | ||||||||||||||
Net gain (loss) reclassified from AOCI into income | Net sales | (1 | ) | (1 | ) | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Net sales | (1 | ) | 5 | ||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Other income | 1 | 2 | |||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
(Dollars in millions) | Classification | 2013 | 2014 | |||||||||||||||||
Currency derivatives designated as cash flow hedge: | ||||||||||||||||||||
Net gain (loss) recognized in AOCI | n/a | $ | (6 | ) | $ | 5 | ||||||||||||||
Net gain (loss) reclassified from AOCI into income | Net sales | (1 | ) | — | ||||||||||||||||
Interest rate swaps designated as fair value hedges: | ||||||||||||||||||||
Net gain (loss) recognized in income | Interest expense | 1 | — | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Net sales | (2 | ) | 4 | ||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Other income | (1 | ) | 4 | ||||||||||||||||
Commodity derivatives – net gain (loss) recognized in income | Cost of sales | 4 | — | |||||||||||||||||
We expect to reclassify $4 million of deferred net gains recorded in AOCI as of January 31, 2014, to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur. The maximum term of our outstanding derivative contracts was 24 months at April 30, 2013 and 27 months at January 31, 2014. | ||||||||||||||||||||
The following table presents the fair values of our derivative instruments as of April 30, 2013 and January 31, 2014. | ||||||||||||||||||||
(Dollars in millions) | Classification | Fair value of derivatives in a gain position | Fair value of derivatives in a | |||||||||||||||||
loss position | ||||||||||||||||||||
April 30, 2013: | ||||||||||||||||||||
Designated as cash flow hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | $ | 6 | $ | (3 | ) | ||||||||||||||
Currency derivatives | Other assets | 2 | — | |||||||||||||||||
Currency derivatives | Accrued expenses | 2 | (4 | ) | ||||||||||||||||
Currency derivatives | Other liabilities | — | (1 | ) | ||||||||||||||||
Not designated as hedges: | ||||||||||||||||||||
Currency derivatives | Accrued expenses | — | (1 | ) | ||||||||||||||||
January 31, 2014: | ||||||||||||||||||||
Designated as cash flow hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | 11 | (3 | ) | ||||||||||||||||
Currency derivatives | Other assets | 3 | (1 | ) | ||||||||||||||||
Currency derivatives | Accrued expenses | 2 | (4 | ) | ||||||||||||||||
Currency derivatives | Other liabilities | 1 | (1 | ) | ||||||||||||||||
Not designated as hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | 1 | — | |||||||||||||||||
The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments that are subject to net settlement agreements are presented on a net basis in the accompanying consolidated balance sheets. | ||||||||||||||||||||
Credit risk. We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the contracts. To manage this risk, we contract only with major financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that are regularly monitored and that provide for reports to senior management according to prescribed guidelines, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe the risk of loss from counterparty default to be immaterial. | ||||||||||||||||||||
Some of our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of all derivatives with creditworthiness requirements that were in a net liability position was $2 million at April 30, 2013 and $2 million at January 31, 2014. | ||||||||||||||||||||
Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet. The following table summarizes the gross and net amounts of our derivative contracts. | ||||||||||||||||||||
(Dollars in millions) | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Balance Sheet | Net Amounts Presented in Balance Sheet | Gross Amounts Not Offset in Balance Sheet | Net Amounts | |||||||||||||||
April 30, 2013: | ||||||||||||||||||||
Derivative assets | $ | 10 | $ | (5 | ) | $ | 5 | $ | (2 | ) | $ | 3 | ||||||||
Derivative liabilities | (9 | ) | 5 | (4 | ) | 2 | (2 | ) | ||||||||||||
January 31, 2014: | ||||||||||||||||||||
Derivative assets | 17 | (6 | ) | 11 | — | 11 | ||||||||||||||
Derivative liabilities | (8 | ) | 6 | (2 | ) | — | (2 | ) | ||||||||||||
No cash collateral was received or pledged related to our derivative contracts as of April 30, 2013 and January 31, 2014. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ' | |||||||||||||||
Accumulated Other Comprehensive Income | ||||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (AOCI), net of tax, during the three months ended January 31, 2014: | ||||||||||||||||
(Dollars in millions) | Currency Translation Adjustments | Cash Flow Hedge Adjustments | Postretirement Benefits Adjustments | Total | ||||||||||||
Balance at October 31, 2013 | $ | 5 | $ | (4 | ) | $ | (202 | ) | $ | (201 | ) | |||||
Other comprehensive income (loss) before reclassifications1 | (14 | ) | 6 | — | (8 | ) | ||||||||||
Amounts reclassified from AOCI | — | 1 | 5 | 6 | ||||||||||||
Net other comprehensive income (loss) | (14 | ) | 7 | 5 | (2 | ) | ||||||||||
Balance at January 31, 2014 | $ | (9 | ) | $ | 3 | $ | (197 | ) | $ | (203 | ) | |||||
1Net of tax benefit (cost) of $2, $(4), and $0 related to currency translation, cash flow hedges, and postretirement benefits, respectively. | ||||||||||||||||
The following table summarizes the changes in AOCI, net of tax, during the nine months ended January 31, 2014: | ||||||||||||||||
(Dollars in millions) | Currency Translation Adjustments | Cash Flow Hedge Adjustments | Postretirement Benefits Adjustments | Total | ||||||||||||
Balance at April 30, 2013 | $ | 10 | $ | — | $ | (221 | ) | $ | (211 | ) | ||||||
Other comprehensive income (loss) before reclassifications1 | (19 | ) | 3 | 9 | (7 | ) | ||||||||||
Amounts reclassified from AOCI | — | — | 15 | 15 | ||||||||||||
Net other comprehensive income (loss) | (19 | ) | 3 | 24 | 8 | |||||||||||
Balance at January 31, 2014 | $ | (9 | ) | $ | 3 | $ | (197 | ) | $ | (203 | ) | |||||
1Net of tax benefit (cost) of $0, $(2), and $(5) related to currency translation, cash flow hedges, and postretirement benefits, respectively. | ||||||||||||||||
The following table presents further information about amounts reclassified from AOCI during the three months ended January 31, 2014: | ||||||||||||||||
Amount Reclassified from AOCI | Classification in Consolidated Statement of Operations | |||||||||||||||
Net gain (loss) on cash flow hedges: | ||||||||||||||||
Currency derivatives | $ | (1 | ) | Net sales | ||||||||||||
— | Tax benefit (expense) | |||||||||||||||
(1 | ) | Net of tax | ||||||||||||||
Amounts related to postretirement benefit plans: | ||||||||||||||||
Net actuarial gain (loss) | (8 | ) | 1 | |||||||||||||
Insignificant items | (1 | ) | ||||||||||||||
(9 | ) | Total before tax | ||||||||||||||
4 | Tax benefit (expense) | |||||||||||||||
(5 | ) | Net of tax | ||||||||||||||
Total reclassifications | $ | (6 | ) | Net of tax | ||||||||||||
1Amount is included in the net periodic benefit cost of pension and other postretirement benefits (as shown in Note 6). | ||||||||||||||||
The following table presents further information about amounts reclassified from AOCI during the nine months ended January 31, 2014: | ||||||||||||||||
Amount Reclassified from AOCI | Classification in Consolidated Statement of Operations | |||||||||||||||
Amounts related to postretirement benefit plans: | ||||||||||||||||
Prior service cost | (1 | ) | 1 | |||||||||||||
Net actuarial gain (loss) | (23 | ) | 1 | |||||||||||||
Insignificant items | (1 | ) | ||||||||||||||
(25 | ) | Total before tax | ||||||||||||||
10 | Tax benefit (expense) | |||||||||||||||
(15 | ) | Net of tax | ||||||||||||||
Total reclassifications | $ | (15 | ) | Net of tax | ||||||||||||
1Amount is included in the net periodic benefit cost of pension and other postretirement benefits (as shown in Note 6). |
Cash_Dividends
Cash Dividends | 9 Months Ended |
Jan. 31, 2014 | |
Cash Dividends [Abstract] | ' |
Cash Dividends Disclosure [Text Block] | ' |
Cash Dividends | |
Cash dividends declared and paid on Class A and Class B common stock during the nine months ended January 31, 2013, included a special cash dividend of $4.00 per share in addition to regular quarterly cash dividends. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Policies) | 9 Months Ended |
Jan. 31, 2014 | |
Derivative Financial Instruments [Abstract] | ' |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | ' |
Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | |||||||||||||||
The following table presents information concerning basic and diluted earnings per share: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
(Dollars in millions, except per share amounts) | 2013 | 2014 | 2013 | 2014 | ||||||||||||
Net income available to common stockholders | $ | 157 | $ | 177 | $ | 478 | $ | 526 | ||||||||
Share data (in thousands): | ||||||||||||||||
Basic average common shares outstanding | 213,459 | 213,151 | 213,301 | 213,493 | ||||||||||||
Dilutive effect of stock-based awards | 1,592 | 1,641 | 1,612 | 1,623 | ||||||||||||
Diluted average common shares outstanding | 215,051 | 214,792 | 214,913 | 215,116 | ||||||||||||
Basic earnings per share | $ | 0.74 | $ | 0.83 | $ | 2.24 | $ | 2.46 | ||||||||
Diluted earnings per share | $ | 0.73 | $ | 0.82 | $ | 2.22 | $ | 2.45 | ||||||||
Pension_and_Other_Postretireme1
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | ' | |||||||||||||||
The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality. | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
January 31, | January 31, | |||||||||||||||
(Dollars in millions) | 2013 | 2014 | 2013 | 2014 | ||||||||||||
Pension Benefits: | ||||||||||||||||
Service cost | $ | 5 | $ | 5 | $ | 15 | $ | 16 | ||||||||
Interest cost | 9 | 8 | 26 | 23 | ||||||||||||
Expected return on plan assets | (10 | ) | (10 | ) | (31 | ) | (30 | ) | ||||||||
Amortization of: | ||||||||||||||||
Prior service cost | — | — | 1 | 1 | ||||||||||||
Net actuarial loss | 7 | 8 | 21 | 23 | ||||||||||||
Net cost | $ | 11 | $ | 11 | $ | 32 | $ | 33 | ||||||||
Other Postretirement Benefits: | ||||||||||||||||
Service cost | $ | — | $ | — | $ | 1 | $ | 1 | ||||||||
Interest cost | 1 | 1 | 2 | 3 | ||||||||||||
Amortization of prior service cost | — | — | 1 | — | ||||||||||||
Net cost | $ | 1 | $ | 1 | $ | 4 | $ | 4 | ||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Jan. 31, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | ' | ||||||||||||||||
The following table summarizes the assets and liabilities measured at fair value on a recurring basis: | |||||||||||||||||
(Dollars in millions) | Level 1 | Level 2 | Level 3 | Total | |||||||||||||
April 30, 2013: | |||||||||||||||||
Assets: | |||||||||||||||||
Currency derivatives | $ | — | $ | 5 | $ | — | $ | 5 | |||||||||
Liabilities: | |||||||||||||||||
Currency derivatives | — | 4 | — | 4 | |||||||||||||
Short-term borrowings | — | 3 | — | 3 | |||||||||||||
Current portion of long-term debt | — | 2 | — | 2 | |||||||||||||
Long-term debt | — | 1,011 | — | 1,011 | |||||||||||||
January 31, 2014: | |||||||||||||||||
Assets: | |||||||||||||||||
Currency derivatives | — | 11 | — | 11 | |||||||||||||
Liabilities: | |||||||||||||||||
Currency derivatives | — | 2 | — | 2 | |||||||||||||
Short-term borrowings | — | 9 | — | 9 | |||||||||||||
Long-term debt | — | 952 | — | 952 | |||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Fair Value of Financial Instruments [Abstract] | ' | |||||||||||||||
Comparison of the fair values and carrying amounts of financial instrument | ' | |||||||||||||||
The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of derivative financial instruments and long-term debt as discussed in Note 7. | ||||||||||||||||
Below is a comparison of the fair values and carrying amounts of these instruments: | ||||||||||||||||
30-Apr-13 | 31-Jan-14 | |||||||||||||||
Carrying | Fair | Carrying | Fair | |||||||||||||
(Dollars in millions) | Amount | Value | Amount | Value | ||||||||||||
Assets: | ||||||||||||||||
Cash and cash equivalents | $ | 204 | $ | 204 | $ | 287 | $ | 287 | ||||||||
Currency derivatives | 5 | 5 | 11 | 11 | ||||||||||||
Liabilities: | ||||||||||||||||
Currency derivatives | 4 | 4 | 2 | 2 | ||||||||||||
Short-term borrowings | 3 | 3 | 9 | 9 | ||||||||||||
Current portion of long-term debt | 2 | 2 | — | — | ||||||||||||
Long-term debt | 997 | 1,011 | 997 | 952 | ||||||||||||
Derivative_Financial_Instrumen2
Derivative Financial Instruments (Tables) | 9 Months Ended | |||||||||||||||||||
Jan. 31, 2014 | ||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | |||||||||||||||||||
Derivative Instruments, Gain (Loss) [Table Text Block] | ' | |||||||||||||||||||
The following tables present the amounts affecting our consolidated statements of operations for the periods covered by this report: | ||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
(Dollars in millions) | Classification | 2013 | 2014 | |||||||||||||||||
Currency derivatives designated as cash flow hedge: | ||||||||||||||||||||
Net gain (loss) recognized in AOCI | n/a | $ | (4 | ) | $ | 10 | ||||||||||||||
Net gain (loss) reclassified from AOCI into income | Net sales | (1 | ) | (1 | ) | |||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Net sales | (1 | ) | 5 | ||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Other income | 1 | 2 | |||||||||||||||||
Nine Months Ended | ||||||||||||||||||||
January 31, | ||||||||||||||||||||
(Dollars in millions) | Classification | 2013 | 2014 | |||||||||||||||||
Currency derivatives designated as cash flow hedge: | ||||||||||||||||||||
Net gain (loss) recognized in AOCI | n/a | $ | (6 | ) | $ | 5 | ||||||||||||||
Net gain (loss) reclassified from AOCI into income | Net sales | (1 | ) | — | ||||||||||||||||
Interest rate swaps designated as fair value hedges: | ||||||||||||||||||||
Net gain (loss) recognized in income | Interest expense | 1 | — | |||||||||||||||||
Derivatives not designated as hedging instruments: | ||||||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Net sales | (2 | ) | 4 | ||||||||||||||||
Currency derivatives – net gain (loss) recognized in income | Other income | (1 | ) | 4 | ||||||||||||||||
Commodity derivatives – net gain (loss) recognized in income | Cost of sales | 4 | — | |||||||||||||||||
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | ' | |||||||||||||||||||
The following table presents the fair values of our derivative instruments as of April 30, 2013 and January 31, 2014. | ||||||||||||||||||||
(Dollars in millions) | Classification | Fair value of derivatives in a gain position | Fair value of derivatives in a | |||||||||||||||||
loss position | ||||||||||||||||||||
April 30, 2013: | ||||||||||||||||||||
Designated as cash flow hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | $ | 6 | $ | (3 | ) | ||||||||||||||
Currency derivatives | Other assets | 2 | — | |||||||||||||||||
Currency derivatives | Accrued expenses | 2 | (4 | ) | ||||||||||||||||
Currency derivatives | Other liabilities | — | (1 | ) | ||||||||||||||||
Not designated as hedges: | ||||||||||||||||||||
Currency derivatives | Accrued expenses | — | (1 | ) | ||||||||||||||||
January 31, 2014: | ||||||||||||||||||||
Designated as cash flow hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | 11 | (3 | ) | ||||||||||||||||
Currency derivatives | Other assets | 3 | (1 | ) | ||||||||||||||||
Currency derivatives | Accrued expenses | 2 | (4 | ) | ||||||||||||||||
Currency derivatives | Other liabilities | 1 | (1 | ) | ||||||||||||||||
Not designated as hedges: | ||||||||||||||||||||
Currency derivatives | Other current assets | 1 | — | |||||||||||||||||
Offsetting Derivative Assets and Liabilities [Table Text Block] | ' | |||||||||||||||||||
The following table summarizes the gross and net amounts of our derivative contracts. | ||||||||||||||||||||
(Dollars in millions) | Gross Amounts of Recognized Assets (Liabilities) | Gross Amounts Offset in Balance Sheet | Net Amounts Presented in Balance Sheet | Gross Amounts Not Offset in Balance Sheet | Net Amounts | |||||||||||||||
April 30, 2013: | ||||||||||||||||||||
Derivative assets | $ | 10 | $ | (5 | ) | $ | 5 | $ | (2 | ) | $ | 3 | ||||||||
Derivative liabilities | (9 | ) | 5 | (4 | ) | 2 | (2 | ) | ||||||||||||
January 31, 2014: | ||||||||||||||||||||
Derivative assets | 17 | (6 | ) | 11 | — | 11 | ||||||||||||||
Derivative liabilities | (8 | ) | 6 | (2 | ) | — | (2 | ) | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | |||||||||||||||
Jan. 31, 2014 | ||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ' | |||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | ' | |||||||||||||||
The following table summarizes the changes in accumulated other comprehensive income (AOCI), net of tax, during the three months ended January 31, 2014: | ||||||||||||||||
(Dollars in millions) | Currency Translation Adjustments | Cash Flow Hedge Adjustments | Postretirement Benefits Adjustments | Total | ||||||||||||
Balance at October 31, 2013 | $ | 5 | $ | (4 | ) | $ | (202 | ) | $ | (201 | ) | |||||
Other comprehensive income (loss) before reclassifications1 | (14 | ) | 6 | — | (8 | ) | ||||||||||
Amounts reclassified from AOCI | — | 1 | 5 | 6 | ||||||||||||
Net other comprehensive income (loss) | (14 | ) | 7 | 5 | (2 | ) | ||||||||||
Balance at January 31, 2014 | $ | (9 | ) | $ | 3 | $ | (197 | ) | $ | (203 | ) | |||||
1Net of tax benefit (cost) of $2, $(4), and $0 related to currency translation, cash flow hedges, and postretirement benefits, respectively. | ||||||||||||||||
The following table summarizes the changes in AOCI, net of tax, during the nine months ended January 31, 2014: | ||||||||||||||||
(Dollars in millions) | Currency Translation Adjustments | Cash Flow Hedge Adjustments | Postretirement Benefits Adjustments | Total | ||||||||||||
Balance at April 30, 2013 | $ | 10 | $ | — | $ | (221 | ) | $ | (211 | ) | ||||||
Other comprehensive income (loss) before reclassifications1 | (19 | ) | 3 | 9 | (7 | ) | ||||||||||
Amounts reclassified from AOCI | — | — | 15 | 15 | ||||||||||||
Net other comprehensive income (loss) | (19 | ) | 3 | 24 | 8 | |||||||||||
Balance at January 31, 2014 | $ | (9 | ) | $ | 3 | $ | (197 | ) | $ | (203 | ) | |||||
1Net of tax benefit (cost) of $0, $(2), and $(5) related to currency translation, cash flow hedges, and postretirement benefits, respectively. | ||||||||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ' | |||||||||||||||
The following table presents further information about amounts reclassified from AOCI during the three months ended January 31, 2014: | ||||||||||||||||
Amount Reclassified from AOCI | Classification in Consolidated Statement of Operations | |||||||||||||||
Net gain (loss) on cash flow hedges: | ||||||||||||||||
Currency derivatives | $ | (1 | ) | Net sales | ||||||||||||
— | Tax benefit (expense) | |||||||||||||||
(1 | ) | Net of tax | ||||||||||||||
Amounts related to postretirement benefit plans: | ||||||||||||||||
Net actuarial gain (loss) | (8 | ) | 1 | |||||||||||||
Insignificant items | (1 | ) | ||||||||||||||
(9 | ) | Total before tax | ||||||||||||||
4 | Tax benefit (expense) | |||||||||||||||
(5 | ) | Net of tax | ||||||||||||||
Total reclassifications | $ | (6 | ) | Net of tax | ||||||||||||
1Amount is included in the net periodic benefit cost of pension and other postretirement benefits (as shown in Note 6). | ||||||||||||||||
The following table presents further information about amounts reclassified from AOCI during the nine months ended January 31, 2014: | ||||||||||||||||
Amount Reclassified from AOCI | Classification in Consolidated Statement of Operations | |||||||||||||||
Amounts related to postretirement benefit plans: | ||||||||||||||||
Prior service cost | (1 | ) | 1 | |||||||||||||
Net actuarial gain (loss) | (23 | ) | 1 | |||||||||||||
Insignificant items | (1 | ) | ||||||||||||||
(25 | ) | Total before tax | ||||||||||||||
10 | Tax benefit (expense) | |||||||||||||||
(15 | ) | Net of tax | ||||||||||||||
Total reclassifications | $ | (15 | ) | Net of tax | ||||||||||||
1Amount is included in the net periodic benefit cost of pension and other postretirement benefits (as shown in Note 6). |
Inventories_Details
Inventories (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Inventories (Textual) [Abstract] | ' | ' |
Excess of current costs over stated LIFO value | $214 | $209 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Income Taxes (Textual) [Abstract] | ' |
Effective tax rate | 31.20% |
Expected tax rate | 31.60% |
Change in gross unrecognized tax benefits expected in next twelve months | $0 |
Deferred income, tax benefit of intercompany transfer of assets | $95 |
Earnings_Per_Share_Details
Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Share data in Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Basic and diluted earnings per share | ' | ' | ' | ' |
Net income | $177 | $157 | $526 | $478 |
Net income available to common stockholders | $177 | $157 | $526 | $478 |
Share data (in thousands): | ' | ' | ' | ' |
Basic average common shares outstanding | 213,151 | 213,459 | 213,493 | 213,301 |
Dilutive effect of stock-based awards | 1,641 | 1,592 | 1,623 | 1,612 |
Diluted average common shares outstanding | 214,792 | 215,051 | 215,116 | 214,913 |
Basic earnings per share | $0.83 | $0.74 | $2.46 | $2.24 |
Diluted earnings per share | $0.82 | $0.73 | $2.45 | $2.22 |
Earnings_Per_Share_Details_Tex
Earnings Per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Earnings Per Share (Textual) [Abstract] | ' | ' | ' | ' |
Common stock-based awards excluded from the calculation of diluted earnings per share | 410 | 524 | 411 | 531 |
Guarantee_Details
Guarantee (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Concentration Risk [Line Items] | ' | ' |
Accounts receivable | $679 | $548 |
Credit Concentration Risk [Member] | ' | ' |
Concentration Risk [Line Items] | ' | ' |
Guaranty exposure, maximum | 43 | ' |
Guaranty exposure, current | 12 | ' |
Accounts receivable | $32 | ' |
Pension_and_Other_Postretireme2
Pension and Other Postretirement Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Pension Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | $5 | $5 | $16 | $15 |
Interest cost | 8 | 9 | 23 | 26 |
Expected return on plan assets | -10 | -10 | -30 | -31 |
Amortization of: | ' | ' | ' | ' |
Prior service cost | 0 | 0 | 1 | 1 |
Net actuarial loss | 8 | 7 | 23 | 21 |
Net cost | 11 | 11 | 33 | 32 |
Other Postretirement Benefits [Member] | ' | ' | ' | ' |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ' | ' | ' | ' |
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 1 | 1 | 3 | 2 |
Amortization of: | ' | ' | ' | ' |
Prior service cost | 0 | 0 | 0 | 1 |
Net cost | $1 | $1 | $4 | $4 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Short-term borrowings | $9 | $3 |
Long-term debt | 952 | 1,011 |
Currency derivatives [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 2 | 4 |
Fair Value, Measurements, Recurring [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Short-term borrowings | 9 | 3 |
Current portion of long-term debt | ' | 2 |
Long-term debt | 952 | 1,011 |
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 11 | 5 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 2 | 4 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Short-term borrowings | 0 | 0 |
Current portion of long-term debt | ' | 0 |
Long-term debt | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Currency derivatives [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 0 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Short-term borrowings | 9 | 3 |
Current portion of long-term debt | ' | 2 |
Long-term debt | 952 | 1,011 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 11 | 5 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 2 | 4 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ' | ' |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Short-term borrowings | 0 | 0 |
Current portion of long-term debt | ' | 0 |
Long-term debt | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Currency derivatives [Member] | ' | ' |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | 0 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ' | ' |
Currency derivatives | $0 | $0 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 | Jan. 31, 2013 | Apr. 30, 2012 |
In Millions, unless otherwise specified | ||||
Assets: | ' | ' | ' | ' |
Cash and cash equivalents, Carrying Amount | $287 | $204 | $387 | $338 |
Cash and cash equivalents, Fair Value | 287 | 204 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Short-term borrowings, Carrying Amount | 9 | 3 | ' | ' |
Short-term borrowings, Fair Value | 9 | 3 | ' | ' |
Current portion of long-term debt, Carrying Amount | 0 | 2 | ' | ' |
Current portion of long-term debt, Fair Value | 0 | 2 | ' | ' |
Long-term debt, Carrying Amount | 997 | 997 | ' | ' |
Long-term debt, Fair Value | 952 | 1,011 | ' | ' |
Currency derivatives [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Currency derivatives, Fair Value | 11 | 5 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Currency derivatives, Fair Value | 2 | 4 | ' | ' |
Carrying Amount [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Cash and cash equivalents, Carrying Amount | 287 | 204 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Short-term borrowings, Carrying Amount | 9 | 3 | ' | ' |
Current portion of long-term debt, Carrying Amount | 0 | 2 | ' | ' |
Long-term debt, Carrying Amount | 997 | 997 | ' | ' |
Carrying Amount [Member] | Currency derivatives [Member] | ' | ' | ' | ' |
Assets: | ' | ' | ' | ' |
Currency derivatives, Carrying Amount | 11 | 5 | ' | ' |
Liabilities: | ' | ' | ' | ' |
Currency derivatives, Carrying Amount | $2 | $4 | ' | ' |
Derivative_Financial_Instrumen3
Derivative Financial Instruments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 |
Cash Flow Hedging [Member] | Currency derivatives [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Net gain (loss) recognized in AOCI | $10 | ($4) | $5 | ($6) |
Net Sales [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Net gain (loss) reclassified from AOCI into income | -1 | -1 | 0 | -1 |
Net Sales [Member] | Not designated as hedges [Member] | Currency derivatives [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Gain (loss) on derivative instruments recognized in income | 5 | -1 | 4 | -2 |
Interest Expense [Member] | Fair Value Hedging [Member] | Interest rate swaps [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Gain (loss) on derivative instruments recognized in income | ' | ' | 0 | 1 |
Other Income [Member] | Not designated as hedges [Member] | Currency derivatives [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Gain (loss) on derivative instruments recognized in income | 2 | 1 | 4 | -1 |
Cost of Sales [Member] | Not designated as hedges [Member] | Commodity derivatives [Member] | ' | ' | ' | ' |
Derivative instrument gains and losses affecting statements of operations | ' | ' | ' | ' |
Gain (loss) on derivative instruments recognized in income | ' | ' | $0 | $4 |
Derivative_Financial_Instrumen4
Derivative Financial Instruments (Details 1) (Currency derivatives [Member], USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair value of derivatives in a gain position [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | $11 | $6 |
Fair value of derivatives in a gain position [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | 3 | 2 |
Fair value of derivatives in a gain position [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | 2 | 2 |
Fair value of derivatives in a gain position [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | 1 | 0 |
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | 1 | ' |
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | ' | 0 |
Fair value of derivatives in a loss position [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | -3 | -3 |
Fair value of derivatives in a loss position [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | -1 | 0 |
Fair value of derivatives in a loss position [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | -4 | -4 |
Fair value of derivatives in a loss position [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | -1 | -1 |
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | 0 | ' |
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member] | ' | ' |
Fair values of derivative instruments | ' | ' |
Fair value of derivatives in a gain (loss) position | ' | ($1) |
Derivative_Financial_Instrumen5
Derivative Financial Instruments (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 | Apr. 30, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ' |
Derivative, Notional Amount | $1,042 | $686 |
Derivative Financial Instruments (Textual) [Abstract] | ' | ' |
Net losses recorded in AOCI expected to reclassify to earnings during the next 12 months | -4 | ' |
Maximum term of outstanding derivative contracts | '27 months | '24 months |
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position | $2 | $2 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments Offsetting Derivative Assets and Liabilities (Details) (USD $) | Jan. 31, 2014 | Apr. 30, 2013 |
In Millions, unless otherwise specified | ||
Offsetting Assets and Liabilities [Line Items] | ' | ' |
Gross Amount of Derivative Assets | $17 | $10 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | -6 | -5 |
Net Amount of Derivative Assets Presented in Balance Sheet | 11 | 5 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | 0 | -2 |
Net Amount of Derivative Assets | 11 | 3 |
Gross Amount of Derivative Liabilities | -8 | -9 |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 6 | 5 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | 2 | 4 |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 0 | 2 |
Net Amount of Derivative Liabilities | $2 | $2 |
Changes_in_Accumulated_Other_C
Changes in Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2013 | Jan. 31, 2014 | Jan. 31, 2013 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | ($201) | ' | ($211) | ' | ||
Other comprehensive income (loss) before reclassifications1 | -8 | [1] | ' | -7 | [2] | ' |
Amounts reclassified from AOCI | 6 | ' | 15 | ' | ||
Net other comprehensive income (loss) | -14 | 14 | -19 | 13 | ||
Net other comprehensive income (loss) | 7 | -2 | 3 | -3 | ||
Net other comprehensive income (loss) | 5 | 5 | 24 | 14 | ||
Net other comprehensive income (loss) | -2 | 17 | 8 | 24 | ||
Ending balance | -203 | ' | -203 | ' | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | -4 | ' | 0 | ' | ||
Other comprehensive income (loss) before reclassifications1 | 6 | [1] | ' | 3 | [2] | ' |
Amounts reclassified from AOCI | 1 | ' | 0 | ' | ||
Net other comprehensive income (loss) | 7 | ' | 3 | ' | ||
Ending balance | 3 | ' | 3 | ' | ||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | -4 | ' | -2 | ' | ||
Accumulated Translation Adjustment [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | 5 | ' | 10 | ' | ||
Other comprehensive income (loss) before reclassifications1 | -14 | [1] | ' | -19 | [2] | ' |
Amounts reclassified from AOCI | 0 | ' | 0 | ' | ||
Net other comprehensive income (loss) | -14 | ' | -19 | ' | ||
Ending balance | -9 | ' | -9 | ' | ||
Other Comprehensive Income (Loss), Foreign Currency Translation Gain (Loss) Arising During Period, Tax | 2 | ' | 0 | ' | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ' | ' | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | ||
Beginning balance | -202 | ' | -221 | ' | ||
Other comprehensive income (loss) before reclassifications1 | 0 | [1] | ' | 9 | [2] | ' |
Amounts reclassified from AOCI | 5 | ' | 15 | ' | ||
Net other comprehensive income (loss) | 5 | ' | 24 | ' | ||
Ending balance | -197 | ' | -197 | ' | ||
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) Arising During Period, Tax | $0 | ' | ($5) | ' | ||
[1] | 1Net of tax benefit (cost) of $2, $(4), and $0 related to currency translation, cash flow hedges, and postretirement benefits, respectively. | |||||
[2] | 1Net of tax benefit (cost) of $0, $(2), and $(5) related to currency translation, cash flow hedges, and postretirement benefits, respectively. |
Reclassifications_Out_of_AOCI_
Reclassifications Out of AOCI (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Jan. 31, 2014 | Jan. 31, 2014 | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | ($6) | ($15) | ||
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | 0 | ' | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | -1 | 0 | ||
Accumulated Defined Benefit Plans Adjustment [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Other Comprehensive (Income) Loss, Amortization Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Prior Service Cost (Credit), before Tax | ' | -1 | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss), before Tax | -8 | [1] | -23 | [1] |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Insignificant Items, before Tax | -1 | -1 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, before Tax | -9 | -25 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Tax | 4 | 10 | ||
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, Net of Tax | -5 | -15 | ||
Net Sales [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ' | ' | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ||
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | ($1) | ' | ||
[1] | 1Amount is included in the net periodic benefit cost of pension and other postretirement benefits (as shown in Note 6). |
Cash_Dividends_Details
Cash Dividends (Details) (USD $) | 9 Months Ended |
Jan. 31, 2013 | |
Cash Dividends [Abstract] | ' |
Common Stock, Special Dividends, Per Share, Declared | $4 |