Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2017 | Feb. 28, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | BROWN FORMAN CORP | |
Entity Central Index Key | 14,693 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Common stock, Class A, voting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 169,051,360 | |
Common stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 214,849,206 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Income Statement [Abstract] | ||||
Sales | $ 1,059 | $ 1,083 | $ 2,969 | $ 3,078 |
Excise taxes | 251 | 274 | 670 | 718 |
Net Sales | 808 | 809 | 2,299 | 2,360 |
Cost of sales | 272 | 254 | 758 | 729 |
Gross profit | 536 | 555 | 1,541 | 1,631 |
Advertising expenses | 102 | 107 | 291 | 317 |
Selling, general, and administrative expenses | 162 | 167 | 488 | 507 |
Other expense (income), net | (1) | 3 | (16) | 0 |
Operating income | 273 | 278 | 778 | 807 |
Interest income | 1 | 0 | 2 | 1 |
Interest expense | 16 | 12 | 44 | 34 |
Income before income taxes | 258 | 266 | 736 | 774 |
Income taxes | 76 | 76 | 212 | 229 |
Net income | $ 182 | $ 190 | $ 524 | $ 545 |
Earnings per share: | ||||
Basic (dollars per share) | $ 0.47 | $ 0.47 | $ 1.35 | $ 1.33 |
Diluted (dollars per share) | 0.47 | 0.47 | 1.34 | 1.33 |
Cash dividends per common share: | ||||
Declared (dollars per share) | 0.365 | 0.34 | 0.705 | 0.655 |
Paid (dollars per share) | $ 0.1825 | $ 0.17 | $ 0.5225 | $ 0.485 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 182 | $ 190 | $ 524 | $ 545 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | (25) | (30) | (110) | (58) |
Cash flow hedge adjustments | (7) | 8 | 14 | 20 |
Postretirement benefits adjustments | 6 | 5 | 13 | 15 |
Net other comprehensive income (loss) | (26) | (17) | (83) | (23) |
Comprehensive income | $ 156 | $ 173 | $ 441 | $ 522 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Assets | ||
Cash and cash equivalents | $ 197 | $ 263 |
Accounts receivable, less allowance for doubtful accounts of $9 and $9 at April 30 and January 31, respectively | 611 | 559 |
Inventories: | ||
Barreled whiskey | 858 | 666 |
Finished goods | 175 | 187 |
Work in process | 116 | 116 |
Raw materials and supplies | 89 | 85 |
Total inventories | 1,238 | 1,054 |
Other current assets | 331 | 357 |
Total current assets | 2,377 | 2,233 |
Property, plant, and equipment, net | 669 | 629 |
Goodwill | 746 | 590 |
Other intangible assets | 636 | 595 |
Deferred tax assets | 16 | 17 |
Other assets | 156 | 119 |
Total assets | 4,600 | 4,183 |
Liabilities | ||
Accounts payable and accrued expenses | 478 | 501 |
Dividends payable | 70 | 0 |
Accrued income taxes | 25 | 19 |
Short-term borrowings | 308 | 271 |
Current portion of long-term debt | 249 | 0 |
Total current liabilities | 1,130 | 791 |
Long-term debt | 1,669 | 1,230 |
Deferred tax liabilities | 150 | 101 |
Accrued pension and other postretirement benefits | 336 | 353 |
Other liabilities | 131 | 146 |
Total liabilities | 3,416 | 2,621 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Additional paid-in capital | 74 | 114 |
Retained earnings | 4,326 | 4,065 |
Accumulated other comprehensive income (loss), net of tax | (433) | (350) |
Treasury stock, at cost (59,143,000 and 70,749,000 shares at April 30 and January 31, respectively) | (2,851) | (2,301) |
Total stockholders' equity | 1,184 | 1,562 |
Total liabilities and stockholders' equity | 4,600 | 4,183 |
Common stock, Class A, voting [Member] | ||
Stockholders' Equity | ||
Common stock | 25 | 13 |
Common stock, Class B, nonvoting [Member] | ||
Stockholders' Equity | ||
Common stock | $ 43 | $ 21 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) shares in Thousands, $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Allowance for doubtful accounts | $ 9 | $ 9 |
Common stock, par value | $ 0.15 | |
Treasury stock, shares | 70,749 | 59,143 |
Common stock, Class A, voting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, Class B, nonvoting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2017 | Jan. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 524 | $ 545 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 42 | 40 |
Stock-based compensation expense | 10 | 12 |
Deferred income taxes | (11) | 12 |
Changes in assets and liabilities, excluding the effects of acquisition of business | (120) | (161) |
Cash provided by operating activities | 445 | 448 |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | (307) | 0 |
Additions to property, plant, and equipment | (71) | (88) |
Computer software expenditures | (2) | (2) |
Cash used for investing activities | (380) | (90) |
Cash flows from financing activities: | ||
Net change in short-term borrowings | (24) | 319 |
Repayment of long-term debt | 0 | (250) |
Proceeds from long-term debt | 717 | 490 |
Debt issuance costs | (5) | (5) |
Net payments related to exercise of stock-based awards | (5) | (8) |
Excess tax benefits from stock-based awards | 0 | 15 |
Acquisition of treasury stock | (561) | (762) |
Dividends paid | (203) | (199) |
Repayment of short-term obligation associated with acquisition of business (Note 14) | (30) | 0 |
Cash used for financing activities | (111) | (400) |
Effect of exchange rate changes on cash and cash equivalents | (20) | (11) |
Net decrease in cash and cash equivalents | (66) | (53) |
Cash and cash equivalents, beginning of period | 263 | 370 |
Cash and cash equivalents, end of period | $ 197 | $ 317 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 9 Months Ended |
Jan. 31, 2017 | |
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, 2016 (2016 Form 10-K). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments (unless otherwise indicated), 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 2016 Form 10-K, but made the following changes during fiscal 2017: • Effective beginning May 1, 2016, we changed our presentation of excise taxes from the gross method (included in sales and costs) to the net method (excluded from sales). As a result, the amounts presented as “net sales” in our financial statements now exclude excise taxes. We believe the change in presentation to the net method is preferable because it is more representative of the internal financial information reviewed by management in assessing our performance and more consistent with the presentation used by our major competitors in their external financial statements. Prior period financial statements have been recast to conform to the new presentation. • We adopted new guidance related to certain aspects of the accounting for stock-based compensation, including the income tax consequences. Under the new guidance, we recognize all tax benefits related to stock-based compensation as an income tax benefit in our statement of operations, and include all income tax cash flows within operating activities in our statement of cash flows. Under the previous accounting guidance, we recognized some of those tax benefits (excess tax benefits) as additional paid-in capital and classified that amount as a financing activity in our statement of cash flows. We adopted these provisions of the new guidance on a prospective basis as of May 1, 2016. As a result, our net income and operating cash flows for the nine months ended January 31, 2017, include excess tax benefits of $4 million . Prior period financial statements have not been adjusted. Also, under the new guidance, we recognize the excess tax benefits during the period in which the related awards vest or are exercised. Under the previous accounting guidance, we recognized those benefits during the period in which they reduced taxes payable. We adopted this provision of the new guidance on a modified retrospective basis with a cumulative-effect adjustment of $10 million to retained earnings as of May 1, 2016. Also, as discussed in Note 12, our Class A and Class B common shares were split on a two-for-one basis during August 2016. As a result, all share and per share amounts reported in the accompanying financial statements and related notes are presented on a split-adjusted basis. New accounting pronouncements to be adopted. The Financial Accounting Standards Board (FASB) has issued new accounting guidance on various topics that may impact our financial statements upon our adoption of the new guidance. The following table shows the date by which we must adopt the new guidance for each topic and the permitted method(s) of adoption: Topic Date Method(s) Revenue from contracts with customers May 1, 2018 Retrospective or modified retrospective Classification of certain cash receipts and cash payments on statement of cash flows May 1, 2018 Retrospective Income tax consequences of intra-entity transfers of assets other than inventory May 1, 2018 Modified retrospective Leases May 1, 2019 Modified retrospective Credit losses May 1, 2020 Modified retrospective We are currently evaluating the potential impact of the new guidance on our financial statements. While we have not yet determined our plans for adoption, we do not currently expect to adopt any of the new guidance prior to the required adoption date. |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2017 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are valued at the lower of cost or market. Some of our consolidated inventories are valued using the last-in, first-out (LIFO) method, which we use for the majority of our U.S. inventories. If the LIFO method had not been used, inventories at current cost would have been $248 million higher than reported as of April 30, 2016 , and $264 million higher than reported as of January 31, 2017 . 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, 2017 | |
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 28.7% for the nine months ended January 31, 2017 , is based on an expected tax rate of 31.0% on ordinary income for the full fiscal year, as adjusted for the recognition of a net tax benefit 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. As discussed in Note 1, we adopted new accounting guidance for stock-based compensation, including the income tax consequences. As a result, our effective tax rate for the nine months ended January 31, 2017, reflects the impact of $4 million of tax benefits related to stock-based compensation that we recognized as discrete items during the period. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jan. 31, 2017 | |
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. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP). 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) 2016 2017 2016 2017 Net income available to common stockholders $ 190 $ 182 $ 545 $ 524 Share data (in thousands): Basic average common shares outstanding 402,365 384,520 408,483 388,884 Dilutive effect of stock-based awards 2,416 2,646 2,668 2,812 Diluted average common shares outstanding 404,781 387,166 411,151 391,696 Basic earnings per share $ 0.47 $ 0.47 $ 1.33 $ 1.35 Diluted earnings per share $ 0.47 $ 0.47 $ 1.33 $ 1.34 We excluded common stock-based awards for approximately 750,000 shares and 2,231,000 shares from the calculation of diluted earnings per share for the three months ended January 31, 2016 and 2017 , respectively. We excluded common stock-based awards for approximately 956,000 shares and 1,780,000 shares from the calculation of diluted earnings per share for the nine months ended January 31, 2016 and 2017 , respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and 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 it is reasonably possible that these existing 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, 2017 . 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 Russia. 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 $23 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, 2017 , our actual exposure under the guaranty of the importer’s obligation is approximately $8 million . We also have accounts receivable from that importer of approximately $10 million at January 31, 2017 , which we expect to collect in full. Based on the financial support we provide to the importer, we believe it meets the definition of a variable interest entity. However, because we do not control this entity, it is not included in our consolidated financial statements. |
Debt
Debt | 9 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our long-term debt (net of unamortized discount and issuance costs) consists of: (Principal and carrying amounts in millions) April 30, January 31, 1.00% notes, $250 principal amount, due January 15, 2018 $ 249 $ 249 2.25% notes, $250 principal amount, due January 15, 2023 248 248 1.20% notes, €300 principal amount, due July 7, 2026 — 318 2.60% notes, £300 principal amount, due July 7, 2028 — 369 3.75% notes, $250 principal amount, due January 15, 2043 248 248 4.50% notes, $500 principal amount, due July 15, 2045 485 486 1,230 1,918 Less current portion — 249 $ 1,230 $ 1,669 We issued senior, unsecured notes with an aggregate principal amount of 300 million euros in July 2016. Interest on these notes will accrue at a rate of 1.20% and be paid annually. As of January 31, 2017, the carrying amount of these notes was $318 million ( $321 million principal, less unamortized discounts and issuance costs). These notes are due on July 7, 2026 . In addition, we issued senior, unsecured notes with an aggregate principal amount of 300 million British pounds in July 2016. Interest on these notes will accrue at a rate of 2.60% and be paid annually. As of January 31, 2017, the carrying amount of these notes was $369 million ( $375 million principal, less unamortized discounts and issuance costs). These notes are due on July 7, 2028 . As of April 30, 2016, our short-term borrowings of $271 million included $269 million of commercial paper, with an average interest rate of 0.53% and a remaining maturity of 26 days . As of January 31, 2017 , our short-term borrowings of $308 million included $307 million of commercial paper, with an average interest rate of 0.89% and a remaining maturity of 12 days . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Jan. 31, 2017 | |
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. Information about similar international plans is not presented due to immateriality. Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2016 2017 2016 2017 Pension Benefits : Service cost $ 6 $ 6 $ 19 $ 19 Interest cost 9 9 26 26 Expected return on plan assets (10 ) (10 ) (30 ) (31 ) Amortization of: Prior service cost (credit) — — 1 1 Net actuarial loss 7 6 21 19 Settlement loss $ — $ 1 $ — $ 1 Net cost $ 12 $ 12 $ 37 $ 35 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 2 2 Amortization of: Prior service cost (credit) (1 ) (1 ) (2 ) (2 ) Net actuarial loss — — 1 — Net cost $ — $ — $ 2 $ 1 |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jan. 31, 2017 | |
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 inactive markets; 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 or disclosed at fair value on a recurring basis: (Dollars in millions) Level 1 Level 2 Level 3 Total April 30, 2016: Assets: Currency derivatives $ — $ 19 $ — $ 19 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 271 — 271 Long-term debt — 1,293 — 1,293 January 31, 2017: Assets: Currency derivatives — 42 — 42 Liabilities: Currency derivatives — 11 — 11 Short-term borrowings — 308 — 308 Current portion of long-term debt — 249 — 249 Long-term debt — 1,686 — 1,686 We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable exchange rates, forward rates, and discount rates. The discount rates are based on the historical U.S. Treasury rates. The fair value of short-term borrowings approximates their 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 Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Jan. 31, 2017 | |
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 currency derivatives and long-term debt as discussed in Note 8. Below is a comparison of the fair values and carrying amounts of these instruments: April 30, 2016 January 31, 2017 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets: Cash and cash equivalents $ 263 $ 263 $ 197 $ 197 Currency derivatives 19 19 42 42 Liabilities: Currency derivatives 10 10 11 11 Short-term borrowings 271 271 308 308 Current portion of long-term debt — — 249 249 Long-term debt 1,230 1,293 1,669 1,686 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities 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 had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts totaling $1,265 million at April 30, 2016 and $1,122 million at January 31, 2017 . During the nine months ended January 31, 2017, we used some currency derivative forward contracts and foreign currency-denominated long-term debt as after-tax net investment hedges of our investments in certain foreign subsidiaries. Any change in value of the designated portion of the hedging instruments is recorded in AOCI, offsetting the foreign currency translation adjustment of the related net investments that is also recorded in AOCI. As of January 31, 2017, $520 million of our foreign currency-denominated debt was designated as a net investment hedge. Our net investment hedges are intended to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. There was no ineffectiveness related to our net investment hedges during the periods presented in this report. We do not designate some of our currency derivatives and foreign currency-denominated debt 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 instruments in earnings. 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. During May 2015, we entered into interest rate derivative contracts (U.S. Treasury lock agreements) to manage the interest rate risk related to the anticipated issuance of fixed-rate senior, unsecured notes. We designated the contracts as cash flow hedges of the future interest payments associated with the anticipated notes. Upon issuance in June 2015 of an aggregate principal amount of $500 million of the 4.50% notes, due July 15, 2045 , we settled the contracts for a gain of $8 million . The entire gain was recorded to AOCI and will be amortized as a reduction of interest expense over the life of the notes. The following tables present the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings: Three Months Ended January 31, (Dollars in millions) Classification 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 29 $ 5 Net gain (loss) reclassified from AOCI into income Net sales 17 15 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — — Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in income Net sales 5 — Net gain (loss) recognized in income Other income (2 ) (5 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — (5 ) Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in income Other income — 4 Nine Months Ended January 31, (Dollars in millions) Classification 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 66 $ 57 Net gain (loss) reclassified from AOCI into income Net sales 46 34 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a 8 — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 8 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in income Net sales 9 3 Net gain (loss) recognized in income Other income 2 (13 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 19 Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in income Other income — 6 We expect to reclassify $23 million of deferred net gains on cash flow hedges recorded in AOCI as of January 31, 2017 , 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. As of January 31, 2017 , the maximum term of our outstanding derivative contracts was 36 months . The following table presents the fair values of our derivative instruments: (Dollars in millions) Classification Fair value of derivatives in a gain position Fair value of derivatives in a loss position April 30, 2016: Designated as cash flow hedges: Currency derivatives Other current assets $ 23 $ (2 ) Currency derivatives Other assets 3 (2 ) Currency derivatives Accrued expenses 4 (8 ) Currency derivatives Other liabilities 3 (9 ) Not designated as hedges: Currency derivatives Other current assets 1 (4 ) January 31, 2017: Designated as cash flow hedges: Currency derivatives Other current assets 30 (3 ) Currency derivatives Other assets 19 (4 ) Currency derivatives Accrued expenses 2 (6 ) Currency derivatives Other liabilities 1 (2 ) Not designated as hedges: Currency derivatives Accrued expenses — (6 ) 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 in our balance sheets on a net basis. In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items. 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 we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments. 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 $8 million at April 30, 2016 and $10 million at January 31, 2017 . 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, 2016: Derivative assets $ 34 $ (15 ) $ 19 $ (6 ) $ 13 Derivative liabilities (25 ) 15 (10 ) 6 (4 ) January 31, 2017: Derivative assets 52 (10 ) 42 (1 ) 41 Derivative liabilities (21 ) 10 (11 ) 1 (10 ) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2016 and January 31, 2017 . |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets The following table summarizes the changes in goodwill and other intangible assets during the nine months ended January 31, 2017: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2016 $ 590 $ 595 Acquisitions (Note 14) 182 65 Foreign currency translation adjustment (26 ) (24 ) Balance at January 31, 2017 $ 746 $ 636 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jan. 31, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Stockholders’ Equity The following table summarizes the changes in stockholders’ equity during the nine months ended January 31, 2017: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2016 $ 13 $ 21 $ 114 $ 4,065 $ (350 ) $ (2,301 ) $ 1,562 Cumulative effect of change in accounting principle (Note 1) 10 10 Net income 524 524 Net other comprehensive income (loss) (83 ) (83 ) Cash dividends (273 ) (273 ) Acquisition of treasury stock (561 ) (561 ) Stock-based compensation expense 10 10 Stock issued under compensation plans 11 11 Loss on issuance of treasury stock issued under compensation plans (16 ) (16 ) Stock split 12 22 (34 ) — Balance at January 31, 2017 $ 25 $ 43 $ 74 $ 4,326 $ (433 ) $ (2,851 ) $ 1,184 Stock split. On May 26, 2016, our Board of Directors approved a two-for-one stock split for our Class A and Class B common stock, subject to stockholder approval of an amendment to our Restated Certificate of Incorporation. The amendment, which was approved by stockholders on July 28, 2016, increased the number of authorized shares of Class A common stock from 85,000,000 to 170,000,000 . The amendment did not change the number of authorized Class B common shares, which remains at 400,000,000 . The stock split, which was effected as a stock dividend, resulted in the issuance of one new share of Class A common stock for each share of Class A common stock outstanding and one new share of Class B common stock for each share of Class B common stock outstanding. The stock split was also applied to our treasury shares. Thus, the stock split increased the number of Class A shares issued from 85,000,000 to 170,000,000 , and increased the number of Class B shares issued from 142,313,000 to 284,626,000 . The new shares were distributed on August 18, 2016, to shareholders of record as of August 8, 2016. As a result of the stock split, we reclassified approximately $34 million from additional paid-in capital to common stock during the quarter ended July 31, 2016. The $34 million represents the $0.15 par value per share of the new shares issued in the stock split. All share and per share amounts reported in the accompanying financial statements and related notes are presented on a split-adjusted basis. Dividends. The following table summarizes the cash dividends declared per share on our Class A and Class B common stock during the nine months ended January 31, 2017: Declaration Date Record Date Payable Date Amount per Share May 26, 2016 June 6, 2016 July 1, 2016 $0.1700 July 28, 2016 September 1, 2016 October 3, 2016 $0.1700 November 17, 2016 December 2, 2016 January 3, 2017 $0.1825 January 24, 2017 March 6, 2017 April 3, 2017 $0.1825 Accumulated Other Comprehensive Income. The following table summarizes the changes in each component of AOCI, net of tax, during the nine months ended January 31, 2017: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2016 $ (131 ) $ 11 $ (230 ) $ (350 ) Net other comprehensive income (loss) (110 ) 14 13 (83 ) Balance at January 31, 2017 $ (241 ) $ 25 $ (217 ) $ (433 ) |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Jan. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Income The following tables present the components of net other comprehensive income (loss): Three Months Ended Three Months Ended January 31, 2016 January 31, 2017 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ (30 ) $ — $ (30 ) $ (27 ) $ 2 $ (25 ) Reclassification to earnings — — — — — — Other comprehensive income (loss), net (30 ) — (30 ) (27 ) 2 (25 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 29 (11 ) 18 5 (3 ) 2 Reclassification to earnings 1 (17 ) 7 (10 ) (15 ) 6 (9 ) Other comprehensive income (loss), net 12 (4 ) 8 (10 ) 3 (7 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — 2 (1 ) 1 Reclassification to earnings 2 7 (2 ) 5 7 (2 ) 5 Other comprehensive income (loss), net 7 (2 ) 5 9 (3 ) 6 Total other comprehensive income (loss), net $ (11 ) $ (6 ) $ (17 ) $ (28 ) $ 2 $ (26 ) Nine Months Ended Nine Months Ended January 31, 2016 January 31, 2017 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation (57 ) (1 ) (58 ) (99 ) (11 ) (110 ) Reclassification to earnings — — — — — — Other comprehensive income (loss), net (57 ) (1 ) (58 ) (99 ) (11 ) (110 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 74 (26 ) 48 57 (23 ) 34 Reclassification to earnings 1 (46 ) 18 (28 ) (34 ) 14 (20 ) Other comprehensive income (loss), net 28 (8 ) 20 23 (9 ) 14 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — 2 (1 ) 1 Reclassification to earnings 2 23 (8 ) 15 19 (7 ) 12 Other comprehensive income (loss), net 23 (8 ) 15 21 (8 ) 13 Total other comprehensive income (loss), net $ (6 ) $ (17 ) $ (23 ) $ (55 ) $ (28 ) $ (83 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality). |
Acquisition of Business
Acquisition of Business | 9 Months Ended |
Jan. 31, 2017 | |
Acquisition of Business [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition of Business On June 1, 2016, we acquired The BenRiach Distillery Company Limited (BenRiach) for aggregate consideration of $407 million , consisting of a purchase price of $341 million and $66 million in assumed debt and transaction-related obligations that we have since paid. The acquisition, which brought three single malt Scotch whisky brands into our portfolio, included brand trademarks, inventories, three malt distilleries, a bottling plant, and BenRiach’s headquarters in Edinburgh, Scotland. The purchase price of $341 million included cash of $307 million paid at the acquisition date for 90% of the voting interests in BenRiach and a liability of $34 million related to a put and call option agreement for the remaining 10% equity shares. Under that agreement, we could choose (or be required) to purchase the remaining 10% for 24 million British pounds ( $34 million at the exchange rate on June 1, 2016) during the one-year period ending November 14, 2017. The purchase price of $341 million was preliminarily allocated based on management’s estimates and independent appraisals as follows: (Dollars in millions) June 1, Accounts receivable $ 11 Inventories 159 Other current assets 1 Property, plant, and equipment 19 Goodwill 182 Trademarks and brand names 65 Total assets 437 Accounts payable and accrued expenses 12 Short-term borrowings 59 Deferred tax liabilities 25 Total liabilities 96 Net assets acquired $ 341 Goodwill is calculated as the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill resulting from this acquisition is primarily attributable to the following: (a) the value of leveraging our distribution network and brand-building expertise to grow global sales of the existing single malt Scotch whisky brands acquired, (b) the valuable opportunity provided by the combination of the rather scarce identifiable assets to develop new products and line extensions in the especially attractive premium Scotch whisky category, and (c) the accumulated knowledge and expertise of the organized workforce employed by the acquired business. None of the preliminary goodwill amount of $182 million is expected to be deductible for tax purposes. The initial allocation of the purchase price was based on preliminary estimates and may be revised as asset valuations are finalized and further information is obtained on the fair value of liabilities. BenRiach’s results of operations, which have been included in our financial statements since the acquisition date, were not material for the three-month or nine-month periods ended January 31, 2017. Pro forma results are not presented due to immateriality. On November 17, 2016, we purchased the remaining 10% interest in BenRiach for cash of 24 million British pounds ( $30 million at the exchange rate on that date) by exercising the call option described above. That cash payment is classified as a financing activity in the accompanying statement of cash flows. |
Condensed Consolidated Financ21
Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
Accounting Policies [Abstract] | |
Excise Taxes [Policy Text Block] | Effective beginning May 1, 2016, we changed our presentation of excise taxes from the gross method (included in sales and costs) to the net method (excluded from sales). As a result, the amounts presented as “net sales” in our financial statements now exclude excise taxes. We believe the change in presentation to the net method is preferable because it is more representative of the internal financial information reviewed by management in assessing our performance and more consistent with the presentation used by our major competitors in their external financial statements. Prior period financial statements have been recast to conform to the new presentation. |
Derivative Financial Instrume22
Derivative Financial Instruments and Hedging Activities (Policies) | 9 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block] | In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items. |
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, 2017 | |
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) 2016 2017 2016 2017 Net income available to common stockholders $ 190 $ 182 $ 545 $ 524 Share data (in thousands): Basic average common shares outstanding 402,365 384,520 408,483 388,884 Dilutive effect of stock-based awards 2,416 2,646 2,668 2,812 Diluted average common shares outstanding 404,781 387,166 411,151 391,696 Basic earnings per share $ 0.47 $ 0.47 $ 1.33 $ 1.35 Diluted earnings per share $ 0.47 $ 0.47 $ 1.33 $ 1.34 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments | Our long-term debt (net of unamortized discount and issuance costs) consists of: (Principal and carrying amounts in millions) April 30, January 31, 1.00% notes, $250 principal amount, due January 15, 2018 $ 249 $ 249 2.25% notes, $250 principal amount, due January 15, 2023 248 248 1.20% notes, €300 principal amount, due July 7, 2026 — 318 2.60% notes, £300 principal amount, due July 7, 2028 — 369 3.75% notes, $250 principal amount, due January 15, 2043 248 248 4.50% notes, $500 principal amount, due July 15, 2045 485 486 1,230 1,918 Less current portion — 249 $ 1,230 $ 1,669 |
Pension and Other Postretirem25
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
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. Information about similar international plans is not presented due to immateriality. Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2016 2017 2016 2017 Pension Benefits : Service cost $ 6 $ 6 $ 19 $ 19 Interest cost 9 9 26 26 Expected return on plan assets (10 ) (10 ) (30 ) (31 ) Amortization of: Prior service cost (credit) — — 1 1 Net actuarial loss 7 6 21 19 Settlement loss $ — $ 1 $ — $ 1 Net cost $ 12 $ 12 $ 37 $ 35 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost 1 1 2 2 Amortization of: Prior service cost (credit) (1 ) (1 ) (2 ) (2 ) Net actuarial loss — — 1 — Net cost $ — $ — $ 2 $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
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 or disclosed at fair value on a recurring basis: (Dollars in millions) Level 1 Level 2 Level 3 Total April 30, 2016: Assets: Currency derivatives $ — $ 19 $ — $ 19 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 271 — 271 Long-term debt — 1,293 — 1,293 January 31, 2017: Assets: Currency derivatives — 42 — 42 Liabilities: Currency derivatives — 11 — 11 Short-term borrowings — 308 — 308 Current portion of long-term debt — 249 — 249 Long-term debt — 1,686 — 1,686 |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
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 currency derivatives and long-term debt as discussed in Note 8. Below is a comparison of the fair values and carrying amounts of these instruments: April 30, 2016 January 31, 2017 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets: Cash and cash equivalents $ 263 $ 263 $ 197 $ 197 Currency derivatives 19 19 42 42 Liabilities: Currency derivatives 10 10 11 11 Short-term borrowings 271 271 308 308 Current portion of long-term debt — — 249 249 Long-term debt 1,230 1,293 1,669 1,686 |
Derivative Financial Instrume28
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following tables present the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings: Three Months Ended January 31, (Dollars in millions) Classification 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 29 $ 5 Net gain (loss) reclassified from AOCI into income Net sales 17 15 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — — Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in income Net sales 5 — Net gain (loss) recognized in income Other income (2 ) (5 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — (5 ) Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in income Other income — 4 Nine Months Ended January 31, (Dollars in millions) Classification 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 66 $ 57 Net gain (loss) reclassified from AOCI into income Net sales 46 34 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a 8 — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 8 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in income Net sales 9 3 Net gain (loss) recognized in income Other income 2 (13 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 19 Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in income Other income — 6 |
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: (Dollars in millions) Classification Fair value of derivatives in a gain position Fair value of derivatives in a loss position April 30, 2016: Designated as cash flow hedges: Currency derivatives Other current assets $ 23 $ (2 ) Currency derivatives Other assets 3 (2 ) Currency derivatives Accrued expenses 4 (8 ) Currency derivatives Other liabilities 3 (9 ) Not designated as hedges: Currency derivatives Other current assets 1 (4 ) January 31, 2017: Designated as cash flow hedges: Currency derivatives Other current assets 30 (3 ) Currency derivatives Other assets 19 (4 ) Currency derivatives Accrued expenses 2 (6 ) Currency derivatives Other liabilities 1 (2 ) Not designated as hedges: Currency derivatives Accrued expenses — (6 ) |
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, 2016: Derivative assets $ 34 $ (15 ) $ 19 $ (6 ) $ 13 Derivative liabilities (25 ) 15 (10 ) 6 (4 ) January 31, 2017: Derivative assets 52 (10 ) 42 (1 ) 41 Derivative liabilities (21 ) 10 (11 ) 1 (10 ) |
Goodwill and Other Intangible29
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table summarizes the changes in goodwill and other intangible assets during the nine months ended January 31, 2017: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2016 $ 590 $ 595 Acquisitions (Note 14) 182 65 Foreign currency translation adjustment (26 ) (24 ) Balance at January 31, 2017 $ 746 $ 636 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | The following table summarizes the changes in stockholders’ equity during the nine months ended January 31, 2017: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2016 $ 13 $ 21 $ 114 $ 4,065 $ (350 ) $ (2,301 ) $ 1,562 Cumulative effect of change in accounting principle (Note 1) 10 10 Net income 524 524 Net other comprehensive income (loss) (83 ) (83 ) Cash dividends (273 ) (273 ) Acquisition of treasury stock (561 ) (561 ) Stock-based compensation expense 10 10 Stock issued under compensation plans 11 11 Loss on issuance of treasury stock issued under compensation plans (16 ) (16 ) Stock split 12 22 (34 ) — Balance at January 31, 2017 $ 25 $ 43 $ 74 $ 4,326 $ (433 ) $ (2,851 ) $ 1,184 |
Dividends Declared [Table Text Block] | The following table summarizes the cash dividends declared per share on our Class A and Class B common stock during the nine months ended January 31, 2017: Declaration Date Record Date Payable Date Amount per Share May 26, 2016 June 6, 2016 July 1, 2016 $0.1700 July 28, 2016 September 1, 2016 October 3, 2016 $0.1700 November 17, 2016 December 2, 2016 January 3, 2017 $0.1825 January 24, 2017 March 6, 2017 April 3, 2017 $0.1825 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in each component of AOCI, net of tax, during the nine months ended January 31, 2017: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2016 $ (131 ) $ 11 $ (230 ) $ (350 ) Net other comprehensive income (loss) (110 ) 14 13 (83 ) Balance at January 31, 2017 $ (241 ) $ 25 $ (217 ) $ (433 ) |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | The following tables present the components of net other comprehensive income (loss): Three Months Ended Three Months Ended January 31, 2016 January 31, 2017 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ (30 ) $ — $ (30 ) $ (27 ) $ 2 $ (25 ) Reclassification to earnings — — — — — — Other comprehensive income (loss), net (30 ) — (30 ) (27 ) 2 (25 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 29 (11 ) 18 5 (3 ) 2 Reclassification to earnings 1 (17 ) 7 (10 ) (15 ) 6 (9 ) Other comprehensive income (loss), net 12 (4 ) 8 (10 ) 3 (7 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — 2 (1 ) 1 Reclassification to earnings 2 7 (2 ) 5 7 (2 ) 5 Other comprehensive income (loss), net 7 (2 ) 5 9 (3 ) 6 Total other comprehensive income (loss), net $ (11 ) $ (6 ) $ (17 ) $ (28 ) $ 2 $ (26 ) Nine Months Ended Nine Months Ended January 31, 2016 January 31, 2017 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation (57 ) (1 ) (58 ) (99 ) (11 ) (110 ) Reclassification to earnings — — — — — — Other comprehensive income (loss), net (57 ) (1 ) (58 ) (99 ) (11 ) (110 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 74 (26 ) 48 57 (23 ) 34 Reclassification to earnings 1 (46 ) 18 (28 ) (34 ) 14 (20 ) Other comprehensive income (loss), net 28 (8 ) 20 23 (9 ) 14 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — 2 (1 ) 1 Reclassification to earnings 2 23 (8 ) 15 19 (7 ) 12 Other comprehensive income (loss), net 23 (8 ) 15 21 (8 ) 13 Total other comprehensive income (loss), net $ (6 ) $ (17 ) $ (23 ) $ (55 ) $ (28 ) $ (83 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality). |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 9 Months Ended |
Jan. 31, 2017 | |
Acquisition of Business [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price of $341 million was preliminarily allocated based on management’s estimates and independent appraisals as follows: (Dollars in millions) June 1, Accounts receivable $ 11 Inventories 159 Other current assets 1 Property, plant, and equipment 19 Goodwill 182 Trademarks and brand names 65 Total assets 437 Accounts payable and accrued expenses 12 Short-term borrowings 59 Deferred tax liabilities 25 Total liabilities 96 Net assets acquired $ 341 |
Condensed Consolidated Financ33
Condensed Consolidated Financial Statements (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2017 | May 01, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Excess Tax Benefits from Stock Based Compensation | $ 4 | |
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 10 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 10 |
Condensed Consolidated Financ34
Condensed Consolidated Financial Statements (Details 1) | Aug. 18, 2016 |
Stock split [Abstract] | |
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Inventories (Textual) [Abstract] | ||
Excess of current costs over stated LIFO value | $ 264 | $ 248 |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Jan. 31, 2017USD ($) | |
Income Taxes (Textual) [Abstract] | |
Effective tax rate | 28.70% |
Expected tax rate | 31.00% |
Excess Tax Benefits from Stock Based Compensation | $ 4 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Basic and diluted earnings per share | ||||
Net income available to common stockholders | $ 182 | $ 190 | $ 524 | $ 545 |
Share data (in thousands): | ||||
Basic average common shares outstanding | 384,520 | 402,365 | 388,884 | 408,483 |
Dilutive effect of stock-based awards | 2,646 | 2,416 | 2,812 | 2,668 |
Diluted average common shares outstanding | 387,166 | 404,781 | 391,696 | 411,151 |
Basic earnings per share (dollars per share) | $ 0.47 | $ 0.47 | $ 1.35 | $ 1.33 |
Diluted earnings per share (dollars per share) | $ 0.47 | $ 0.47 | $ 1.34 | $ 1.33 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Earnings Per Share (Textual) [Abstract] | ||||
Common stock-based awards excluded from the calculation of diluted earnings per share | 2,231 | 750 | 1,780 | 956 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Concentration Risk [Line Items] | ||
Accounts receivable | $ 611 | $ 559 |
Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Guaranty exposure, maximum | 23 | |
Guaranty exposure, current | 8 | |
Accounts receivable | $ 10 |
Debt (Details)
Debt (Details) € in Millions, £ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | |||||
Jan. 31, 2017EUR (€) | Apr. 30, 2016EUR (€) | Jan. 31, 2017GBP (£) | Jan. 31, 2017USD ($) | Apr. 30, 2016GBP (£) | Apr. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt, including current portion | $ 1,918 | $ 1,230 | |||||
Current portion of long-term debt | 249 | 0 | |||||
Long-term debt | 1,669 | 1,230 | |||||
1.00% notes, due January 15, 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2018 | Jan. 15, 2018 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |
Long-term debt, including current portion | $ 249 | $ 249 | |||||
2.25% notes, due January 15, 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2023 | Jan. 15, 2023 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% | |
Long-term debt, including current portion | $ 248 | $ 248 | |||||
1.20% notes, due July 7, 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | € 300 | € 0 | $ 321 | ||||
Debt Instrument, Maturity Date | Jul. 7, 2026 | Jul. 7, 2026 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | |
Long-term debt, including current portion | $ 318 | $ 0 | |||||
2.60% notes, due July 7, 2028 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | £ 300 | $ 375 | £ 0 | ||||
Debt Instrument, Maturity Date | Jul. 7, 2028 | Jul. 7, 2028 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | |
Long-term debt, including current portion | $ 369 | $ 0 | |||||
3.75% notes, due January 15, 2043 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2043 | Jan. 15, 2043 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | |
Long-term debt, including current portion | $ 248 | $ 248 | |||||
4.50% notes, due July 15, 2045 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 500 | $ 500 | $ 500 | ||||
Debt Instrument, Maturity Date | Jul. 15, 2045 | Jul. 15, 2045 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% |
Long-term debt, including current portion | $ 486 | $ 485 |
Debt (Details Textual)
Debt (Details Textual) € in Millions, £ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2017EUR (€) | Apr. 30, 2016EUR (€) | Jan. 31, 2017GBP (£) | Jan. 31, 2017USD ($) | Apr. 30, 2016GBP (£) | Apr. 30, 2016USD ($) | |
Debt Issuances and Repayments [Abstract] | ||||||
Long-term Debt | $ 1,918 | $ 1,230 | ||||
1.20% notes, due July 7, 2026 [Member] | ||||||
Debt Issuances and Repayments [Abstract] | ||||||
Debt Instrument, Face Amount | € 300 | € 0 | $ 321 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
Debt Instrument, Maturity Date | Jul. 7, 2026 | Jul. 7, 2026 | ||||
Long-term Debt | $ 318 | $ 0 | ||||
2.60% notes, due July 7, 2028 [Member] | ||||||
Debt Issuances and Repayments [Abstract] | ||||||
Debt Instrument, Face Amount | £ 300 | $ 375 | £ 0 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% |
Debt Instrument, Maturity Date | Jul. 7, 2028 | Jul. 7, 2028 | ||||
Long-term Debt | $ 369 | $ 0 |
Debt (Details Textual 2)
Debt (Details Textual 2) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jan. 31, 2017 | Apr. 30, 2016 | |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 308 | $ 271 |
Commercial Paper | $ 307 | $ 269 |
Commercial Paper Borrowings, Weighted Average Interest Rate | 0.89% | 0.53% |
Commercial Paper Borrowings, Average Remaining Maturity | 12 days | 26 days |
Pension and Other Postretirem43
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 6 | $ 6 | $ 19 | $ 19 |
Interest cost | 9 | 9 | 26 | 26 |
Expected return on plan assets | (10) | (10) | (31) | (30) |
Amortization of: | ||||
Prior service cost (credit) | 0 | 0 | 1 | 1 |
Net actuarial loss | 6 | 7 | 19 | 21 |
Settlement loss | 1 | 0 | 1 | 0 |
Net cost | 12 | 12 | 35 | 37 |
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 | 2 | 2 |
Amortization of: | ||||
Prior service cost (credit) | (1) | (1) | (2) | (2) |
Net actuarial loss | 0 | 0 | 0 | 1 |
Net cost | $ 0 | $ 0 | $ 1 | $ 2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | $ 308 | $ 271 |
Long-term debt | 1,686 | 1,293 |
Currency derivatives [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 11 | 10 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 308 | 271 |
Current portion of long-term debt | 249 | |
Long-term debt | 1,686 | 1,293 |
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 42 | 19 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 11 | 10 |
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 | 308 | 271 |
Current portion of long-term debt | 249 | |
Long-term debt | 1,686 | 1,293 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 42 | 19 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 11 | 10 |
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 Instr45
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 | Jan. 31, 2016 | Apr. 30, 2015 |
Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 197 | $ 263 | $ 317 | $ 370 |
Cash and cash equivalents, Fair Value | 197 | 263 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 308 | 271 | ||
Short-term borrowings, Fair Value | 308 | 271 | ||
Current portion of long-term debt, Carrying Amount | 249 | 0 | ||
Current portion of long-term debt, Fair Value | 249 | 0 | ||
Long-term debt, Carrying Amount | 1,669 | 1,230 | ||
Long-term debt, Fair Value | 1,686 | 1,293 | ||
Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Fair Value | 42 | 19 | ||
Liabilities: | ||||
Currency derivatives, Fair Value | 11 | 10 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and cash equivalents, Carrying Amount | 197 | 263 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 308 | 271 | ||
Current portion of long-term debt, Carrying Amount | 249 | 0 | ||
Long-term debt, Carrying Amount | 1,669 | 1,230 | ||
Reported Value Measurement [Member] | Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Carrying Amount | 42 | 19 | ||
Liabilities: | ||||
Currency derivatives, Carrying Amount | $ 11 | $ 10 |
Derivative Financial Instrume46
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ||||
Derivative Instruments [Abstract] | ||||
Net gain (loss) recognized in AOCI | $ 5 | $ 29 | $ 57 | $ 66 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Treasury Lock [Member] | ||||
Derivative Instruments [Abstract] | ||||
Net gain (loss) recognized in AOCI | 0 | 0 | 0 | 8 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Currency derivatives [Member] | ||||
Derivative Instruments [Abstract] | ||||
Net gain (loss) recognized in AOCI | 0 | 0 | 8 | 0 |
Net Sales [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ||||
Derivative Instruments [Abstract] | ||||
Net gain (loss) reclassified from AOCI into income | 15 | 17 | 34 | 46 |
Net Sales [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||||
Derivative Instruments [Abstract] | ||||
Gain (loss) on derivative instruments recognized in income | 0 | 5 | 3 | 9 |
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||||
Derivative Instruments [Abstract] | ||||
Gain (loss) on derivative instruments recognized in income | (5) | (2) | (13) | 2 |
Foreign Currency Denominated Debt [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||
Non-Derivative Hedging Instruments [Abstract] | ||||
Net gain (loss) recognized in AOCI | (5) | 0 | 19 | 0 |
Foreign Currency Denominated Debt [Member] | Other Income [Member] | Not Designated as Hedging Instrument [Member] | ||||
Non-Derivative Hedging Instruments [Abstract] | ||||
Net gain (loss) recognized in income | $ 4 | $ 0 | $ 6 | $ 0 |
Derivative Financial Instrume47
Derivative Financial Instruments and Hedging Activities (Details 1) - Currency derivatives [Member] - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
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 gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 30 | 23 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 19 | 3 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 2 | 4 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 1 | 3 |
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 | (4) | |
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 | (6) | |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (3) | (2) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (4) | (2) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (6) | (8) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | $ (2) | $ (9) |
Derivative Financial Instrume48
Derivative Financial Instruments and Hedging Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | Apr. 30, 2016 | Jun. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 23 | $ 23 | ||||
Maximum term of outstanding derivative contracts | 36 months | |||||
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position | 10 | $ 10 | $ 8 | |||
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Debt Instrument, Face Amount | 520 | 520 | ||||
Foreign Exchange Contract [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative, Notional Amount | 1,122 | 1,122 | 1,265 | |||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | $ 0 | 8 | $ 0 | ||
Foreign Exchange Contract [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 5 | 29 | 57 | 66 | ||
Treasury Lock [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | $ 0 | 0 | $ 8 | ||
4.50% notes, due July 15, 2045 [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500 | $ 500 | $ 500 | $ 500 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | 4.50% | ||
Debt Instrument, Maturity Date | Jul. 15, 2045 | Jul. 15, 2045 |
Derivative Financial Instrume49
Derivative Financial Instruments and Hedging Activities Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2017 | Apr. 30, 2016 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 52 | $ 34 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (10) | (15) |
Net Amount of Derivative Assets Presented in Balance Sheet | 42 | 19 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | (1) | (6) |
Net Amount of Derivative Assets | 41 | 13 |
Gross Amount of Derivative Liabilities | (21) | (25) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 10 | 15 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | 11 | 10 |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 1 | 6 |
Net Amount of Derivative Liabilities | $ 10 | $ 4 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended |
Jan. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at April 30, 2016 | $ 590 |
Acquisitions (Note 14) | 182 |
Foreign currency translation adjustment | (26) |
Balance at January 31, 2017 | 746 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance at April 30, 2016 | 595 |
Acquisitions (Note 14) | 65 |
Foreign currency translation adjustment | (24) |
Balance at January 31, 2017 | $ 636 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2017 | Jul. 31, 2016 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | May 01, 2016 | |
Balance at April 30, 2016 | $ 1,562 | $ 1,562 | ||||
Cumulative effect of change in accounting principle (Note 1) | $ 10 | |||||
Net income | $ 182 | $ 190 | 524 | $ 545 | ||
Net other comprehensive income (loss) | (26) | $ (17) | (83) | $ (23) | ||
Cash dividends | (273) | |||||
Acquisition of treasury stock | (561) | |||||
Stock-based compensation expense | 10 | |||||
Stock issued under compensation plans | 11 | |||||
Loss on issuance of treasury stock issued under compensation plans | (16) | |||||
Stock split | 0 | |||||
Balance at January 31, 2017 | 1,184 | 1,184 | ||||
Additional Paid-in Capital [Member] | ||||||
Balance at April 30, 2016 | 114 | 114 | ||||
Stock-based compensation expense | 10 | |||||
Loss on issuance of treasury stock issued under compensation plans | (16) | |||||
Stock split | (34) | (34) | ||||
Balance at January 31, 2017 | 74 | 74 | ||||
Retained Earnings [Member] | ||||||
Balance at April 30, 2016 | 4,065 | 4,065 | ||||
Cumulative effect of change in accounting principle (Note 1) | $ 10 | |||||
Net income | 524 | |||||
Cash dividends | (273) | |||||
Balance at January 31, 2017 | 4,326 | 4,326 | ||||
AOCI Attributable to Parent [Member] | ||||||
Balance at April 30, 2016 | (350) | (350) | ||||
Net other comprehensive income (loss) | (83) | |||||
Balance at January 31, 2017 | (433) | (433) | ||||
Treasury Stock, Common [Member] | ||||||
Balance at April 30, 2016 | (2,301) | (2,301) | ||||
Acquisition of treasury stock | (561) | |||||
Stock issued under compensation plans | 11 | |||||
Balance at January 31, 2017 | (2,851) | (2,851) | ||||
Common stock, Class A, voting [Member] | Common Stock [Member] | ||||||
Balance at April 30, 2016 | 13 | 13 | ||||
Stock split | 12 | |||||
Balance at January 31, 2017 | 25 | 25 | ||||
Common stock, Class B, nonvoting [Member] | Common Stock [Member] | ||||||
Balance at April 30, 2016 | $ 21 | 21 | ||||
Stock split | 22 | |||||
Balance at January 31, 2017 | $ 43 | $ 43 |
Stockholders' Equity Stock Spli
Stockholders' Equity Stock Split (Details) $ / shares in Units, $ in Millions | Aug. 18, 2016 | Jul. 31, 2016USD ($) | Jan. 31, 2017USD ($)$ / sharesshares | Apr. 30, 2016$ / sharesshares |
Class of Stock [Line Items] | ||||
Stockholders' Equity Note, Stock Split, Conversion Ratio | 2 | |||
Adjustments to Additional Paid in Capital, Stock Split | $ | $ 0 | |||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.15 | |||
Common stock, Class A, voting [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 170,000,000 | 85,000,000 | ||
Common Stock, Shares, Issued | 170,000,000 | 85,000,000 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.15 | $ 0.15 | ||
Common stock, Class B, nonvoting [Member] | ||||
Class of Stock [Line Items] | ||||
Common Stock, Shares Authorized | 400,000,000 | 400,000,000 | ||
Common Stock, Shares, Issued | 284,626,000 | 142,313,000 | ||
Common Stock, Par or Stated Value Per Share | $ / shares | $ 0.15 | $ 0.15 | ||
Additional Paid-in Capital [Member] | ||||
Class of Stock [Line Items] | ||||
Adjustments to Additional Paid in Capital, Stock Split | $ | $ 34 | $ 34 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Class of Stock [Line Items] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.365 | $ 0.34 | $ 0.705 | $ 0.655 |
July 2016 dividend payment [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends Payable, Date Declared, Month and Year | May 26, 2016 | |||
Dividends Payable, Date of Record | Jun. 6, 2016 | |||
Dividends Payable, Date to be Paid | Jul. 1, 2016 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.17 | |||
October 2016 dividend payment [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends Payable, Date Declared, Month and Year | Jul. 28, 2016 | |||
Dividends Payable, Date of Record | Sep. 1, 2016 | |||
Dividends Payable, Date to be Paid | Oct. 3, 2016 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.17 | |||
January 2017 dividend payment [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends Payable, Date Declared, Month and Year | Nov. 17, 2016 | |||
Dividends Payable, Date of Record | Dec. 2, 2016 | |||
Dividends Payable, Date to be Paid | Jan. 3, 2017 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.1825 | |||
April 2017 dividend payment [Member] | ||||
Class of Stock [Line Items] | ||||
Dividends Payable, Date Declared, Month and Year | Jan. 24, 2017 | |||
Dividends Payable, Date of Record | Mar. 6, 2017 | |||
Dividends Payable, Date to be Paid | Apr. 3, 2017 | |||
Common Stock, Dividends, Per Share, Declared | $ 0.1825 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (350) | |||
Net other comprehensive income (loss) | $ (26) | $ (17) | (83) | $ (23) |
Ending balance | (433) | (433) | ||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (131) | |||
Net other comprehensive income (loss) | (25) | (30) | (110) | (58) |
Ending balance | (241) | (241) | ||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 11 | |||
Net other comprehensive income (loss) | (7) | 8 | 14 | 20 |
Ending balance | 25 | 25 | ||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (230) | |||
Net other comprehensive income (loss) | 6 | $ 5 | 13 | $ 15 |
Ending balance | $ (217) | $ (217) |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2017 | Jan. 31, 2016 | Jan. 31, 2017 | Jan. 31, 2016 | ||
Before Tax: | |||||
Net other comprehensive income (loss) | $ (28) | $ (11) | $ (55) | $ (6) | |
Tax Effect: | |||||
Net other comprehensive income (loss) | 2 | (6) | (28) | (17) | |
Net of Tax: | |||||
Net other comprehensive income (loss) | (26) | (17) | (83) | (23) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||
Before Tax: | |||||
Net gain (loss) | (27) | (30) | (99) | (57) | |
Reclassification to earnings | 0 | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (27) | (30) | (99) | (57) | |
Tax Effect: | |||||
Net gain (loss) | 2 | 0 | (11) | (1) | |
Reclassification to earnings | 0 | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 2 | 0 | (11) | (1) | |
Net of Tax: | |||||
Net gain (loss) | (25) | (30) | (110) | (58) | |
Reclassification to earnings | 0 | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (25) | (30) | (110) | (58) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Before Tax: | |||||
Net gain (loss) | 5 | 29 | 57 | 74 | |
Reclassification to earnings | [1] | (15) | (17) | (34) | (46) |
Net other comprehensive income (loss) | (10) | 12 | 23 | 28 | |
Tax Effect: | |||||
Net gain (loss) | (3) | (11) | (23) | (26) | |
Reclassification to earnings | [1] | 6 | 7 | 14 | 18 |
Net other comprehensive income (loss) | 3 | (4) | (9) | (8) | |
Net of Tax: | |||||
Net gain (loss) | 2 | 18 | 34 | 48 | |
Reclassification to earnings | [1] | (9) | (10) | (20) | (28) |
Net other comprehensive income (loss) | (7) | 8 | 14 | 20 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||
Before Tax: | |||||
Net gain (loss) | 2 | 0 | 2 | 0 | |
Reclassification to earnings | [2] | 7 | 7 | 19 | 23 |
Net other comprehensive income (loss) | 9 | 7 | 21 | 23 | |
Tax Effect: | |||||
Net gain (loss) | (1) | 0 | (1) | 0 | |
Reclassification to earnings | [2] | (2) | (2) | (7) | (8) |
Net other comprehensive income (loss) | (3) | (2) | (8) | (8) | |
Net of Tax: | |||||
Net gain (loss) | 1 | 0 | 1 | 0 | |
Reclassification to earnings | [2] | 5 | 5 | 12 | 15 |
Net other comprehensive income (loss) | $ 6 | $ 5 | $ 13 | $ 15 | |
[1] | Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. | ||||
[2] | Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality). |
Acquisition of Business (Detail
Acquisition of Business (Details) - BenRiach [Member] £ in Millions, $ in Millions | Nov. 17, 2016GBP (£) | Nov. 17, 2016USD ($) | Jun. 01, 2016GBP (£) | Jun. 01, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred and Assumed Debt and Transaction Related Obligations | $ 407 | |||
Business Combination, Consideration Transferred | 341 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Debt and Transaction Related Obligations | 66 | |||
Payments to Acquire Businesses, Gross | $ 307 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | 10.00% | 90.00% | |
Business Combination, Consideration Transferred, Liabilities Incurred | £ 24 | $ 34 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | |||
Payments to Noncontrolling Interests | £ 24 | $ 30 |
Acquisition of Business Purchas
Acquisition of Business Purchase Price Allocation (Details) £ in Millions, $ in Millions | Nov. 17, 2016GBP (£) | Nov. 17, 2016USD ($) | Jun. 01, 2016USD ($) | Jan. 31, 2017USD ($) | Apr. 30, 2016USD ($) |
Business Acquisition [Line Items] | |||||
Goodwill | $ 746 | $ 590 | |||
BenRiach [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Noncontrolling Interests | £ 24 | $ 30 | |||
Business Combination, Consideration Transferred | $ 341 | ||||
Accounts receivable | 11 | ||||
Inventories | 159 | ||||
Other current assets | 1 | ||||
Property, plant, and equipment | 19 | ||||
Goodwill | 182 | ||||
Trademarks and brand names | 65 | ||||
Total assets | 437 | ||||
Accounts payable and accrued expenses | 12 | ||||
Short-term borrowings | 59 | ||||
Deferred tax liabilities | 25 | ||||
Total liabilities | 96 | ||||
Net assets acquired | $ 341 |