Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | May 31, 2020 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Apr. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-00123 | |
Entity Registrant Name | BROWN-FORMAN CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-0143150 | |
Entity Address, Address Line One | 850 Dixie Highway | |
Entity Address, City or Town | Louisville, | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40210 | |
City Area Code | 502 | |
Local Phone Number | 585-1100 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Public Float | $ 22,100 | |
Documents Incorporated by Reference | Portions of the Proxy Statement of Registrant for use in connection with the Annual Meeting of Stockholders to be held July 30, 2020, are incorporated by reference into Part III of this report. | |
Entity Central Index Key | 0000014693 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --04-30 | |
Common stock, Class A, voting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock (voting), $0.15 par value | |
Trading Symbol | BFA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 169,039,764 | |
Common Stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock (nonvoting), $0.15 par value | |
Trading Symbol | BFB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 309,196,858 | |
1.20% senior notes, due July 7, 2026 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.200% Notes due 2026 | |
Trading Symbol | BF26 | |
Security Exchange Name | NYSE | |
2.60% senior notes, due July 7, 2028 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.600% Notes due 2028 | |
Trading Symbol | BF28 | |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement [Abstract] | |||
Sales | $ 4,306 | $ 4,276 | $ 4,201 |
Excise taxes | 943 | 952 | 953 |
Net sales | 3,363 | 3,324 | 3,248 |
Cost of sales | 1,236 | 1,158 | 1,046 |
Gross profit | 2,127 | 2,166 | 2,202 |
Advertising expenses | 383 | 396 | 405 |
Selling, general, and administrative expenses | 642 | 641 | 765 |
Other expense (income), net | 11 | (15) | (16) |
Operating income | 1,091 | 1,144 | 1,048 |
Non-operating postretirement expense | 5 | 22 | 9 |
Interest income | (5) | (8) | (6) |
Interest expense | 82 | 88 | 68 |
Income before income taxes | 1,009 | 1,042 | 977 |
Income taxes | 182 | 207 | 260 |
Net income | $ 827 | $ 835 | $ 717 |
Earnings per share: | |||
Basic (dollars per share) | $ 1.73 | $ 1.74 | $ 1.49 |
Diluted (dollars per share) | $ 1.72 | $ 1.73 | $ 1.48 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 827 | $ 835 | $ 717 |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments | (94) | (27) | 24 |
Cash flow hedge adjustments | 30 | 48 | (28) |
Postretirement benefits adjustments | (77) | (6) | 16 |
Net other comprehensive income (loss) | (141) | 15 | 12 |
Comprehensive income | $ 686 | $ 850 | $ 729 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 675 | $ 307 |
Accounts receivable, net | 570 | 609 |
Inventories: | ||
Barreled whiskey | 1,092 | 1,004 |
Finished goods | 320 | 279 |
Work in process | 172 | 152 |
Raw materials and supplies | 101 | 85 |
Total inventories | 1,685 | 1,520 |
Other current assets | 335 | 283 |
Total current assets | 3,265 | 2,719 |
Property, plant, and equipment, net | 848 | 816 |
Goodwill | 756 | 753 |
Other intangible assets | 635 | 645 |
Deferred tax assets | 15 | 16 |
Other assets | 247 | 190 |
Total assets | 5,766 | 5,139 |
Liabilities | ||
Accounts payable and accrued expenses | 517 | 544 |
Accrued income taxes | 30 | 9 |
Short-term borrowings | 333 | 150 |
Total current liabilities | 880 | 703 |
Long-term debt | 2,269 | 2,290 |
Deferred tax liabilities | 177 | 145 |
Accrued pension and other postretirement benefits | 297 | 197 |
Other liabilities | 168 | 157 |
Total liabilities | 3,791 | 3,492 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Retained earnings | 2,708 | 2,238 |
Accumulated other comprehensive income (loss), net of tax | (547) | (363) |
Treasury stock, at cost (7,360,000 and 6,323,000 shares in 2019 and 2020, respectively) | (258) | (300) |
Total stockholders’ equity | 1,975 | 1,647 |
Total liabilities and stockholders’ equity | 5,766 | 5,139 |
Common stock, Class A, voting [Member] | ||
Stockholders’ Equity | ||
Common stock | 25 | 25 |
Common Stock, Class B, nonvoting [Member] | ||
Stockholders’ Equity | ||
Common stock | $ 47 | $ 47 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Apr. 30, 2020 | Apr. 30, 2019 |
Treasury stock, shares | 6,323,000 | 7,360,000 |
Common stock, Class A, voting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 170,000,000 | 170,000,000 |
Common Stock, Class B, nonvoting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 314,532,000 | 314,532,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 827 | $ 835 | $ 717 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Non-cash intangible asset write-down | 13 | 0 | 0 |
Depreciation and amortization | 74 | 72 | 64 |
Stock-based compensation expense | 11 | 14 | 19 |
Deferred income tax provision (benefit) | 39 | 38 | (69) |
U.S. Tax Act repatriation tax provision (benefit) | 0 | (4) | 91 |
Other, net | 15 | 8 | (8) |
Changes in assets and liabilities, excluding the effects of acquisition of business: | |||
Accounts receivable | 12 | 23 | (70) |
Inventories | (203) | (162) | (102) |
Other current assets | (27) | 30 | 29 |
Accounts payable and accrued expenses | (30) | (43) | 58 |
Accrued income taxes | 18 | (16) | 8 |
Other operating assets and liabilities | (25) | 5 | (84) |
Cash provided by operating activities | 724 | 800 | 653 |
Cash flows from investing activities: | |||
Acquisition of business, net of cash acquired | (22) | 0 | 0 |
Additions to property, plant, and equipment | (113) | (119) | (127) |
Payments for corporate-owned life insurance | 0 | (2) | (21) |
Proceeds from corporate-owned life insurance | 0 | 4 | 0 |
Computer software expenditures | (6) | (2) | (1) |
Cash used for investing activities | (141) | (119) | (149) |
Cash flows from financing activities: | |||
Net change in short-term borrowings | 178 | (71) | (3) |
Repayment of long-term debt | 0 | 0 | (250) |
Proceeds from long-term debt | 0 | 0 | 595 |
Debt issuance costs | 0 | 0 | (6) |
Payments of withholding taxes related to stock-based awards | 43 | 11 | 28 |
Acquisition of treasury stock | (1) | (207) | (1) |
Dividends paid | (325) | (310) | (773) |
Cash used for financing activities | (191) | (599) | (466) |
Effect of exchange rate changes on cash and cash equivalents | (24) | (14) | 19 |
Net increase in cash and cash equivalents | 368 | 68 | 57 |
Cash and cash equivalents, beginning of period | 307 | 239 | 182 |
Cash and cash equivalents, end of period | 675 | 307 | 239 |
Supplemental disclosure of cash paid for: | |||
Interest | 83 | 90 | 65 |
Income taxes | $ 143 | $ 201 | $ 200 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member]Common stock, Class A, voting [Member] | Common Stock [Member]Common Stock, Class B, nonvoting [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock, Common [Member] | |
Beginning Balance at Apr. 30, 2017 | $ 1,370 | $ 25 | $ 43 | $ 65 | $ 4,470 | $ (390) | $ (2,843) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Retirement of treasury stock (Note 8) | [1] | 0 | (10) | (8) | (2,684) | 2,702 | ||
Stock split (Note 8) | [2] | 0 | 14 | (14) | ||||
Net income | 717 | 717 | ||||||
Net other comprehensive income (loss) | 12 | 12 | ||||||
Cash dividends | (773) | (773) | ||||||
Acquisition of treasury stock | (1) | (1) | ||||||
Stock-based compensation expense | 19 | 19 | ||||||
Stock issued under compensation plans | 30 | 30 | ||||||
Loss on issuance of treasury stock issued under compensation plans | (58) | (58) | ||||||
Ending Balance at Apr. 30, 2018 | 1,316 | 25 | 47 | 4 | 1,730 | (378) | (112) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 835 | 835 | ||||||
Net other comprehensive income (loss) | 15 | 15 | ||||||
Cash dividends | (310) | (310) | ||||||
Acquisition of treasury stock | (207) | (207) | ||||||
Stock-based compensation expense | 14 | 14 | ||||||
Stock issued under compensation plans | 19 | 19 | ||||||
Loss on issuance of treasury stock issued under compensation plans | (30) | (18) | (12) | |||||
Other | (5) | (5) | ||||||
Ending Balance at Apr. 30, 2019 | 1,647 | 25 | 47 | 0 | 2,238 | (363) | (300) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 827 | 827 | ||||||
Net other comprehensive income (loss) | (141) | (141) | ||||||
Cash dividends | (325) | (325) | ||||||
Acquisition of treasury stock | (1) | (1) | ||||||
Stock-based compensation expense | 11 | 11 | ||||||
Stock issued under compensation plans | 43 | 43 | ||||||
Loss on issuance of treasury stock issued under compensation plans | (86) | (11) | (75) | |||||
Ending Balance at Apr. 30, 2020 | $ 1,975 | $ 25 | $ 47 | $ 0 | $ 2,708 | $ (547) | $ (258) | |
[1] | Retirement of 67 million shares of Class B common stock previously held as treasury shares. | |||||||
[2] | Stock split effected in the form of a stock dividend of one share of Class B common stock for every four shares of either Class A or Class B common stock. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (dollars per share) | $ 0.6806 | $ 0.648 | $ 1.608 |
Common Stock, Class B, nonvoting [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares, Retired | 67,000,000 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP). We also apply the following accounting policies when preparing our consolidated financial statements: Principles of consolidation. Our consolidated financial statements include the accounts of all subsidiaries in which we have a controlling financial interest. We eliminate all intercompany transactions. Estimates. To prepare financial statements that conform with GAAP, our management must make informed estimates that affect how we report revenues, expenses, assets, and liabilities, including contingent assets and liabilities. Actual results could differ from these estimates. Cash equivalents. Cash equivalents include bank demand deposits and all highly liquid investments with original maturities of three months or less. Allowance for doubtful accounts. We evaluate the collectability of accounts receivable based on a combination of factors. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off the uncollectable amount against the allowance when we have exhausted our collection efforts. The allowance for doubtful accounts was $7 and $11 at April 30, 2019 and 2020, respectively. Inventories. Inventories are valued at the lower of cost or net realizable value. Approximately 51% of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories. We value the remainder of our inventories primarily using the first-in, first-out (FIFO) cost method. FIFO cost approximates current replacement cost. If we had used the FIFO method for all inventories, they would have been $303 and $311 higher than reported at April 30, 2019 and 2020 , respectively. Because we age most of our whiskeys in barrels for 3 to 6 years , we bottle and sell only a portion of our whiskey inventory each year. Following industry practice, we classify all barreled whiskey as a current asset. We include warehousing, insurance, ad valorem taxes, and other carrying charges applicable to barreled whiskey in inventory costs. We classify bulk wine, agave inventories, tequila, and liquid in bottling tanks as work in process. Property, plant, and equipment. We state property, plant, and equipment at cost less accumulated depreciation. We calculate depreciation on a straight-line basis using our estimates of useful life, which are 20 – 40 years for buildings and improvements; 3 – 10 years for machinery, equipment, vehicles, furniture, and fixtures; and 3 – 7 years for capitalized software. We assess our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. When we do not expect to recover the carrying value of an asset (or asset group) through undiscounted future cash flows, we write it down to its estimated fair value. We determine fair value using discounted estimated future cash flows, considering market values for similar assets when available. When we retire or dispose of property, plant, and equipment, we remove its cost and accumulated depreciation from our balance sheet and reflect any gain or loss in operating income. We expense the costs of repairing and maintaining our property, plant, and equipment as we incur them. Goodwill and other intangible assets. We have obtained most of our brands by acquiring other companies. When we acquire another company, we first allocate the purchase price to identifiable assets and liabilities, including intangible brand names and trademarks (“brand names”), based on estimated fair value. We then record any remaining purchase price as goodwill. We do not amortize goodwill or other intangible assets with indefinite lives. We consider all of our brand names to have indefinite lives. We assess our goodwill and other indefinite-lived intangible assets for impairment at least annually, or more frequently if circumstances indicate the carrying amount may be impaired. Goodwill is impaired when the carrying amount of the related reporting unit exceeds its estimated fair value, in which case we write down the goodwill by the amount of the excess (limited to the carrying amount of the goodwill). We estimate the reporting unit’s fair value using discounted estimated future cash flows or market information. Similarly, a brand name is impaired when its carrying amount exceeds its estimated fair value, in which case we write down the brand name to its estimated fair value. We typically estimate the fair value of a brand name using either the “relief from royalty” or “excess earnings” method. We also consider market values for similar assets when available. Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about future cash flows, discount rates, and royalty rates. We have the option, before quantifying the fair value of a reporting unit or brand name, to evaluate qualitative factors to assess whether it is more likely than not that our goodwill or brand names are impaired. If we determine that is not the case, then we are not required to quantify the fair value. That assessment also takes considerable management judgment. Revenue recognition. Our net sales predominantly reflect global sales of beverage alcohol consumer products. We sell these products under contracts with different types of customers, depending on the market. The customer is most often a distributor, wholesaler, or retailer. Each contract typically includes a single performance obligation to transfer control of the products to the customer. Depending on the contract, control is transferred when the products are either shipped or delivered to the customer, at which point we recognize the transaction price for those products as net sales. The transaction price recognized at that point reflects our estimate of the consideration to be received in exchange for the products. The actual amount may ultimately differ due to the effect of various customer incentives and trade promotion activities. In making our estimates, we consider our historical experience and current expectations, as applicable. Subsequent adjustments recognized for changes in estimated transaction prices are typically not material. Net sales exclude taxes we collect from customers that are imposed by various governments on our sales, and are reduced by payments to customers unless made in exchange for distinct goods or services with fair values approximating the payments. Net sales include any amounts we bill customers for shipping and handling activities related to the products. We recognize the cost of those activities in cost of sales during the same period in which we recognize the related net sales. Sales returns, which are permitted only in limited situations, are not material. Customer payment terms generally range from 30 to 90 days. There are no significant amounts of contract assets or liabilities. Cost of sales. Cost of sales includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods sold during the period. Advertising costs. We expense the costs of advertising during the year when the advertisements first take place. Selling, general, and administrative expenses. Selling, general, and administrative expenses include the costs associated with our sales force, administrative staff and facilities, and other expenses related to our non-manufacturing functions. Stock-based compensation. We use stock-based awards as part of our incentive compensation for eligible employees and directors. We recognize the grant-date fair value of an award as compensation expense on a straight-line basis over the requisite service period, which typically corresponds to the vesting period for the award. Upon forfeiture of an award prior to vesting, we reverse any previously-recognized compensation expense related to that award. We classify stock-based compensation expense within selling, general, and administrative expenses. As we recognize compensation expense for a stock-based award, we concurrently recognize a related deferred tax asset. The subsequent vesting or exercise of the award will generally result in an actual tax benefit that differs from the deferred tax asset that had been recorded. The excess (deficiency) of the actual tax benefit over (under) the previously-recorded tax asset is recognized as income tax benefit (expense) on the date of vesting or exercise. Income taxes. We base our annual provision for income taxes on the pre-tax income reflected in our consolidated statement of operations. We establish deferred tax liabilities or assets for temporary differences between GAAP and tax reporting bases and later adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance as necessary to reduce a deferred tax asset to the amount that we believe is more likely than not to be realized. We do not provide deferred income taxes on undistributed earnings of foreign subsidiaries that we expect to permanently reinvest. We record a deferred tax charge in prepaid taxes for the difference between GAAP and tax reporting bases with respect to the elimination of intercompany profit in ending inventory. We assess our uncertain income tax positions in two steps. First, we evaluate whether the tax position will more likely than not, based on its technical merits, be sustained upon examination, including resolution of any related appeals or litigation. For a tax position that does not meet this first criterion, we recognize no tax benefit. For a tax position that does meet the first criterion, we recognize a tax benefit in an amount equal to the largest amount of benefit that we believe has more than a 50% likelihood of being realized upon ultimate resolution. We record interest and penalties on uncertain tax positions as income tax expense. Foreign currency transactions and translation. We report all gains and losses from foreign currency transactions (those denominated in a currency other than the entity’s functional currency) in current income. The U.S. dollar is the functional currency for most of our consolidated entities. The local currency is the functional currency for some of our consolidated foreign entities. We translate the financial statements of those foreign entities into U.S. dollars, using the exchange rate in effect at the balance sheet date to translate assets and liabilities, and using the average exchange rate for the reporting period to translate income and expenses. We record the resulting translation adjustments in other comprehensive income (loss). Adoption of updated accounting standards. Effective May 1, 2019, we adopted the following Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board: • ASU 2016-02 : Leases. This update, codified along with various amendments as Accounting Standards Codification Topic 842 (ASC 842), replaces previous lease accounting guidance. Under ASC 842, a lessee should recognize on its balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. We adopted ASC 842 using a modified retrospective transition approach for leases existing at the date of adoption. For the transition, we elected to use the package of practical expedients to not reassess (a) whether existing contracts are or contain leases, (b) the classification of existing leases, and (c) initial direct costs for existing leases. Upon adoption, we recorded lease liabilities and right-of-use assets of $54 . The adoption did not have a material impact on our results of operations, stockholders’ equity, or cash flows. See Note 15 for additional information about our leases. • ASU 2018-02 : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI). This new guidance allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted by the U.S. government in December 2017. We elected to make the reclassification, which increased retained earnings and decreased AOCI as of May 1, 2019, by $43 . There are no new accounting standards or updates to be adopted that we currently believe might have a significant impact on our consolidated financial statements. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Balance Sheet Information | Balance Sheet Information Supplemental information on our year-end balance sheets is as follows: April 30, 2019 2020 Other current assets: Prepaid taxes $ 191 $ 195 Other 92 140 $ 283 $ 335 Property, plant, and equipment: Land $ 82 $ 82 Buildings 617 652 Equipment 769 814 Construction in process 57 41 1,525 1,589 Less accumulated depreciation 709 741 $ 816 $ 848 Accounts payable and accrued expenses: Accounts payable, trade $ 150 $ 131 Accrued expenses: Advertising and promotion 160 135 Compensation and commissions 84 71 Excise and other non-income taxes 63 80 Other 87 100 394 386 $ 544 $ 517 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (207 ) $ (302 ) Cash flow hedge adjustments 31 60 Postretirement benefits adjustments (187 ) (305 ) $ (363 ) $ (547 ) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2020 | |
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: 2018 2019 2020 Net income available to common stockholders $ 717 $ 835 $ 827 Share data (in thousands): Basic average common shares outstanding 480,319 478,956 477,765 Dilutive effect of stock-based awards 3,929 3,111 2,644 Diluted average common shares outstanding 484,248 482,067 480,409 Basic earnings per share $ 1.49 $ 1.74 $ 1.73 Diluted earnings per share $ 1.48 $ 1.73 $ 1.72 We excluded common stock-based awards for approximately 805,000 shares, 447,000 shares, and 301,000 shares from the calculation of diluted earnings per share for 2018 , 2019 , and 2020 , respectively, because they were not dilutive for those periods under the treasury stock method. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The following table shows the changes in goodwill (which include no accumulated impairment losses) and other intangible assets over the past two years: Goodwill Other Intangible Assets Balance as of April 30, 2018 $ 763 $ 670 Foreign currency translation adjustment (10 ) (25 ) Balance as of April 30, 2019 753 645 Acquisition of business (Note 12) 11 12 Foreign currency translation adjustment (8 ) (9 ) Impairment — (13 ) Balance as of April 30, 2020 $ 756 $ 635 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. During the fourth quarter of fiscal 2020, we recognized a non-cash impairment charge for our Chambord brand name. The impairment reflects a decline in our long-term outlook for Chambord, which has a significant on-premise presence and is expected to be considerably affected by the closures and restrictions in this channel in response to the COVID-19 pandemic. The impairment charge of $13 is included in “other expense (income), net” in the accompanying consolidated statement of operations. As of April 30, 2020, the remaining carrying amount of the Chambord brand name was $104 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Commitments. We have contracted with various growers and wineries to supply some of our future grape and bulk wine requirements. Many of these contracts call for prices to be adjusted annually up or down, according to market conditions. Some contracts set a fixed purchase price that might be higher or lower than prevailing market prices. We have total purchase obligations related to both types of contracts of $11 in 2021 , $6 in 2022 , and $3 in 2023 . We also have contracts for the purchase of agave, which is used to produce tequila. These contracts provide for prices to be determined based on market conditions at the time of harvest, which, although not specified, is expected to occur over the next 10 years. As of April 30, 2020 , based on current market prices, obligations under these contracts total $29 . 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 April 30, 2020 . On May 30, 2019, we notified Bacardi Martini Ltd. (“Bacardi”) of our intention not to renew the terms of our United Kingdom (U.K.) Cost Sharing Agreement (the “Agreement”) whereby Bacardi provided certain services (e.g., warehousing and logistics, sales, reporting, treasury, tax and other services) and Brown-Forman and Bacardi split the associated overhead for those services. For purposes of conducting business, Brown-Forman and Bacardi established a U.K. trade name, “Bacardi Brown-Forman Brands,” through which our products and Bacardi’s products were sold in the U.K. On a monthly basis, Bacardi would remit to us the revenues from sales of our products, net of our agreed contributions for overhead costs under the Agreement. On April 30, 2020, the Agreement expired according to its terms. Following delivery of our notice and upon expiration of the Agreement, Bacardi alleged that it was entitled to approximately £49 under the principle of commercial agency in the U.K. For the first two monthly settlements following expiration of the Agreement, Bacardi withheld over £34 owed to us, effectively bypassing the dispute resolution process under the Agreement. Additionally, Bacardi informed us that it will continue to withhold amounts owed to us under future monthly settlements to conclude activity under the Agreement until its stated claim for £49 is satisfied. Since it was raised, we have disputed Bacardi’s claim of commercial agency compensation and issued a demand that Bacardi adhere to the dispute resolution process mandated by the Agreement and return the £34 that Bacardi wrongfully withheld from amounts owed to us. If the dispute resolution with Bacardi is unsuccessful then arbitration is required under the terms of the Agreement. We cannot estimate the range of reasonably possible loss because Bacardi has not initiated arbitration and fully pleaded the basis of its claim. Guaranty. 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 $9 (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. As of April 30, 2020 , our actual exposure under the guaranty of the importer’s obligation is approximately $5 . We also have accounts receivable from that importer of approximately $8 at April 30, 2020, 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 and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | Debt and Credit Facilities Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2019 2020 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 249 3.50% senior notes, $300 principal amount, due April 15, 2025 297 297 1.20% senior notes, €300 principal amount, due July 7, 2026 333 324 2.60% senior notes, £300 principal amount, due July 7, 2028 383 369 4.00% senior notes, $300 principal amount, due April 15, 2038 293 294 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 487 488 $ 2,290 $ 2,269 Debt payments required over the next five fiscal years consist of $0 in 2021 , $0 in 2022 , $250 in 2023 , $0 in 2024 , $300 in 2025 , and $1,749 after 2025 . The senior notes contain terms and covenants customary of these types of unsecured securities, including limitations on the amount of secured debt we can issue. Details of our short-term borrowings at April 30, 2019 and 2020, are presented below: April 30, 2019 2020 Commercial paper $150 $333 Average interest rate 2.60% 1.29% Average remaining days to maturity 18 73 We have a committed revolving credit agreement with various U.S. and international banks for $800 that expires in November 2023. At April 30, 2020 , there were no borrowings outstanding under this facility. |
Common Stock
Common Stock | 12 Months Ended |
Apr. 30, 2020 | |
Common Stock [Abstract] | |
Common Stock | Common Stock The following table shows the change in outstanding common shares (split-adjusted) during each of the last three years: (Shares in thousands) Class A Class B Total Balance at April 30, 2017 169,051 311,055 480,106 Acquisition of treasury stock (25 ) (6 ) (31 ) Stock issued under compensation plans 36 890 926 Balance at April 30, 2018 169,062 311,939 481,001 Acquisition of treasury stock (145 ) (4,212 ) (4,357 ) Stock issued under compensation plans 82 446 528 Balance at April 30, 2019 168,999 308,173 477,172 Acquisition of treasury stock (13 ) (3 ) (16 ) Stock issued under compensation plans 54 999 1,053 Balance at April 30, 2020 169,040 309,169 478,209 |
Net Sales
Net Sales | 12 Months Ended |
Apr. 30, 2020 | |
Net Sales [Abstract] | |
Net Sales | Net Sales The following table shows our net sales by geography: 2018 2019 2020 United States $ 1,529 $ 1,563 $ 1,690 Developed International 1 908 917 901 Emerging 2 575 597 572 Travel Retail 3 139 140 125 Non-branded and bulk 4 97 107 75 $ 3,248 $ 3,324 $ 3,363 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are the United Kingdom, Germany, Australia, France, Japan, and Canada. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, and Russia. 3 Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. 4 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. The following table shows our net sales by product category: 2018 2019 2020 Whiskey 1 $ 2,533 $ 2,595 $ 2,671 Tequila 2 247 263 275 Wine 3 187 187 186 Vodka 4 130 126 109 Rest of portfolio 54 46 47 Non-branded and bulk 5 97 107 75 $ 3,248 $ 3,324 $ 3,363 1 Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, and Coopers' Craft. 2 Includes el Jimador, Herradura, New Mix, Pepe Lopez, and Antiguo. 3 Includes Korbel Champagne and Sonoma-Cutrer wines. 4 Includes Finlandia. 5 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2020 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits We sponsor various defined benefit pension plans as well as postretirement plans providing retiree health care and retiree life insurance benefits. Below, we discuss our obligations related to these plans, the assets dedicated to meeting the obligations, and the amounts we recognized in our financial statements as a result of sponsoring these plans. Obligations. We provide eligible employees with pension and other postretirement benefits based on factors such as years of service and compensation level during employment. The pension obligation shown below (“projected benefit obligation”) consists of: (a) benefits earned by employees to date based on current salary levels (“accumulated benefit obligation”); and (b) benefits to be received by employees as a result of expected future salary increases. (The obligation for medical and life insurance benefits is not affected by future salary increases.) The following table shows how the present value of our projected benefit obligations changed during each of the last two years. Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Obligation at beginning of year $ 903 $ 908 $ 50 $ 50 Service cost 24 24 1 1 Interest cost 34 31 2 1 Net actuarial loss (gain) 28 108 — 2 Retiree contributions — — 1 1 Benefits paid (81 ) (66 ) (4 ) (4 ) Obligation at end of year $ 908 $ 1,005 $ 50 $ 51 Service cost represents the present value of the benefits attributed to service rendered by employees during the year. Interest cost is the increase in the present value of the obligation due to the passage of time. Net actuarial loss (gain) is the change in value of the obligation resulting from experience different from that assumed or from a change in an actuarial assumption. (We discuss actuarial assumptions used at the end of this note.) Plan amendments may also change the value of the obligation. As shown in the previous table, the change in the value of our pension and other postretirement benefit obligations also includes the effect of benefit payments and retiree contributions. Expected benefit payments (net of retiree contributions) over the next 10 years are as follows: Pension Benefits Medical and Life Insurance Benefits 2021 $ 62 $ 3 2022 62 3 2023 62 3 2024 63 3 2025 63 3 2026 – 2030 425 16 Assets. We invest in specific assets to fund our pension benefit obligations. Our investment goal is to earn a total return that, over time, will grow assets sufficiently to fund our plans’ liabilities, after providing appropriate levels of contributions and accepting prudent levels of investment risk. To achieve this goal, plan assets are invested primarily in funds or portfolios of funds managed by outside managers. Investment risk is managed by company policies that require diversification of asset classes, manager styles, and individual holdings. We measure and monitor investment risk through quarterly and annual performance reviews, and through periodic asset/liability studies. Asset allocation is the most important method for achieving our investment goals and is based on our assessment of the plans’ long-term return objectives and the appropriate balances needed for liquidity, stability, and diversification. As of April 30, 2020, our target asset allocation is a mix of 40% public equity investments, 47% fixed income investments, and 13% alternative investments. The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 14.) Level 1 Level 2 Level 3 Total April 30, 2019 Equity securities $ 79 $ — $ — $ 79 Cash and temporary investments 29 — — 29 Limited partnership interest 1 — — 3 3 $ 108 $ — $ 3 111 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 157 Fixed income funds 370 Real estate funds 66 Short-term investments 23 Limited partnership interests 3 27 Total $ 754 April 30, 2020 Equity securities $ 80 $ — $ — $ 80 Cash and temporary investments — — — — Limited partnership interest 1 — — 2 2 $ 80 $ — $ 2 82 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 193 Fixed income funds 370 Real estate funds 68 Short-term investments 4 Limited partnership interests 3 32 Total $ 749 1 This limited partnership interest was initially valued at cost and has been adjusted to fair value as determined in good faith by management of the partnership using various factors, and does not meet the requirements for reporting at the net asset value (NAV). The valuation requires significant judgment due to the absence of quoted market prices and the inherent lack of liquidity. This limited partnership has a term expiring in September 2020, although this period may be extended. 2 Commingled trust fund valuations are based on the NAV of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. Generally, for commingled trust funds other than real estate, redemptions are permitted daily with no notice period. The real estate fund is redeemable quarterly with 110 days’ notice. 3 These limited partnership interests were initially valued at cost and have been adjusted using NAV per audited financial statements. Investments are generally not eligible for immediate redemption and have original terms averaging 10 to 13 years, although those periods may be extended. The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels. Level 3 Balance as of April 30, 2018 $ 4 Sales and settlements (1 ) Balance as of April 30, 2019 3 Sales and settlements (1 ) Balance as of April 30, 2020 $ 2 The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Assets at beginning of year $ 780 $ 754 $ — $ — Actual return on assets 34 39 — — Retiree contributions — — 1 1 Company contributions 21 22 3 3 Benefits paid (81 ) (66 ) (4 ) (4 ) Assets at end of year $ 754 $ 749 $ — $ — We currently expect to contribute $22 to our pension plans and $3 to our postretirement medical and life insurance benefit plans during 2021 . Funded status. The funded status of a plan refers to the difference between its assets and its obligations. The following table shows the funded status of our plans. Pension Benefits Medical and Life Insurance Benefits April 30, 2019 2020 2019 2020 Assets $ 754 $ 749 $ — $ — Obligations (908 ) (1,005 ) (50 ) (51 ) Funded status $ (154 ) $ (256 ) $ (50 ) $ (51 ) The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life Insurance Benefits April 30, 2019 2020 2019 2020 Other assets $ 2 $ — $ — $ — Accounts payable and accrued expenses (6 ) (7 ) (3 ) (3 ) Accrued postretirement benefits (150 ) (249 ) (47 ) (48 ) Net liability $ (154 ) $ (256 ) $ (50 ) $ (51 ) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (298 ) $ (394 ) $ (10 ) $ (11 ) Prior service credit (cost) (8 ) (6 ) 10 7 $ (306 ) $ (400 ) $ — $ (4 ) The following table compares our pension plans whose assets exceed their accumulated benefit obligations with those whose obligations exceed their assets. (As noted above, we have no assets set aside for postretirement medical or life insurance benefits.) Plan Assets Accumulated Benefit Obligation Projected Benefit Obligation April 30, 2019 2020 2019 2020 2019 2020 Plans with assets in excess of accumulated benefit obligation $ 754 $ 625 $ 668 $ 613 $ 752 $ 698 Plans with accumulated benefit obligation in excess of assets — 124 136 277 156 307 Total $ 754 $ 749 $ 804 $ 890 $ 908 $ 1,005 Pension cost. The following table shows the components of the pension cost recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. Pension Benefits 2018 2019 2020 Service cost $ 24 $ 24 $ 24 Interest cost 29 34 31 Expected return on assets (41 ) (47 ) (46 ) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 21 19 19 Settlement charge — 15 1 Net cost $ 34 $ 46 $ 30 The prior service cost/credit, which represents the effect of plan amendments on benefit obligations, is amortized on a straight-line basis over the average remaining service period of the employees expected to receive the benefits. The net actuarial loss/gain results from experience different from that assumed or from a change in actuarial assumptions (including the difference between actual and expected return on plan assets), and is amortized over at least that same period. The estimated amount of prior service cost and net actuarial loss that will be amortized from accumulated other comprehensive loss into pension cost in 2021 is $1 and $27 , respectively. Other postretirement benefits cost. The following table shows the components of the postretirement medical and life insurance benefits cost that we recognized during each of the last three years. Medical and Life Insurance Benefits 2018 2019 2020 Service cost $ 1 $ 1 $ 1 Interest cost 1 2 1 Amortization of: Prior service cost (credit) (3 ) (3 ) (3 ) Net actuarial loss (gain) 1 1 1 Net cost $ — $ 1 $ — The estimated amount of prior service credit and net actuarial loss that will be amortized from accumulated other comprehensive loss into postretirement medical and life insurance benefits cost in 2021 is $3 and $1 , respectively. Other comprehensive income (loss). Prior service cost/credit and net actuarial loss/gain are recognized in other comprehensive income or loss (OCI) during the period in which they arise. These amounts are later amortized from accumulated OCI into pension and other postretirement benefit cost over future periods as described above. The following table shows the pre-tax effect of these amounts on OCI during each of the last three years. Pension Benefits Medical and Life Insurance Benefits 2018 2019 2020 2018 2019 2020 Prior service credit (cost) $ (6 ) $ — $ — $ — $ — $ — Net actuarial gain (loss) 10 (41 ) (115 ) 1 — (2 ) Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3 ) (3 ) (3 ) Net actuarial loss (gain) 21 34 20 1 1 1 Net amount recognized in OCI $ 26 $ (6 ) $ (94 ) $ (1 ) $ (2 ) $ (4 ) Assumptions and sensitivity. We use various assumptions to determine the obligations and cost related to our pension and other postretirement benefit plans. The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows: Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Discount rate 4.04 % 3.28 % 3.98 % 3.17 % Rate of salary increase 4.00 % 4.00 % n/a n/a The weighted-average assumptions used in computing benefit plan cost during each of the last three years were as follows: Pension Benefits Medical and Life Insurance Benefits 2018 2019 2020 2018 2019 2020 Discount rate for service cost 4.29 % 4.30 % 4.17 % 4.39 % 4.34 % 4.24 % Discount rate for interest cost 3.40 % 3.93 % 3.57 % 3.35 % 3.90 % 3.53 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Expected return on plan assets 6.75 % 6.50 % 6.50 % n/a n/a n/a The assumed discount rates are determined using a yield curve based on the interest rates of high-quality debt securities with maturities corresponding to the expected timing of our benefit payments. The service cost and interest cost components are measured by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period. The assumed rate of salary increase reflects the expected average annual increase in salaries as a result of inflation, merit increases, and promotions over the service period of the plan participants. The expected return on plan assets represents the long-term rate of return that we assume will be earned over the life of the pension assets. The assumption reflects expected capital market returns for each asset class, which are based on historical returns, adjusted for the expected effects of diversification and active management (net of fees). The assumed health care cost trend rates as of the end of the last two years were as follows: Medical and Life Insurance Benefits 2019 2020 Health care cost trend rate assumed for next year 7.30 % 6.90 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2025 A one percentage point change in the assumed health care cost trend rate would not have significantly changed the accumulated postretirement benefit obligation as of April 30, 2020 , or the aggregate service and interest costs for 2020 . Savings plans. We also sponsor various defined contribution benefit plans that together cover substantially all U.S. employees. Employees can make voluntary contributions in accordance with their respective plans, which include a 401(k) tax deferral option. We match a percentage of each employee’s contributions in accordance with plan terms. We expensed $12 , $12 , and $12 for matching contributions during 2018 , 2019 , and 2020 , respectively. International plans. The information presented above for defined benefit plans and defined contribution benefit plans reflects amounts for U.S. plans only. Information about similar international plans is not presented due to immateriality. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Brown-Forman 2013 Omnibus Compensation Plan is our incentive compensation plan, designed to reward participants (including eligible officers, employees, and non-employee directors) for company performance. Under the Plan, we can grant stock-based incentive awards for up to 20,750,000 shares of common stock to eligible participants until July 28, 2023. As of April 30, 2020, awards for approximately 13,514,000 shares remain available for issuance under the Plan. We try to limit the source of shares delivered to participants under the Plan to treasury shares that we purchase from time to time on the open market (in connection with a publicly announced share repurchase program), in private transactions, or otherwise. Awards granted under the Plan include stock-settled stock appreciation rights (SSARs), restricted stock units (RSUs), and deferred stock units (DSUs). SSARs. We grant SSARs at an exercise price equal to the closing market price of the underlying stock on the grant date. SSARs become exercisable after three years from the first day of the fiscal year of grant and generally are exercisable for seven years after that date. The following table presents information about SSARs outstanding as of April 30, 2020, and for the year then ended. Number of SSARs (in thousands) Weighted- Average Exercise Price per SSAR Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at April 30, 2019 6,852 $ 33.25 Granted 522 54.64 Exercised (2,434 ) 27.77 Forfeited or expired (10 ) 49.70 Outstanding at April 30, 2020 4,930 $ 38.19 5.1 $ 118 Exercisable at April 30, 2020 2,932 $ 31.86 3.7 $ 89 We use the Black-Scholes pricing model to calculate the grant-date fair value of a SSAR. The weighted-average grant-date fair values and related valuation assumptions for the SSARS granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 6.79 $ 11.06 $ 11.13 Valuation assumptions: Expected term (years) 7.00 7.00 7.00 Risk-free interest rate 2.2 % 2.9 % 1.9 % Expected volatility 15.6 % 17.1 % 19.3 % Expected dividend yield 1.5 % 1.4 % 1.2 % The expected term is based on past exercise experience for similar awards. The risk-free interest rate is based on zero-coupon U.S. Treasury rates as of the date of grant. Expected volatility and dividend yield are based on historical data, with consideration of other factors when applicable. RSUs. RSUs consist predominantly of performance-based RSUs that vest at the end of a three-year performance period that begins on the first day of the fiscal year of grant. Performance is measured based on the relative ranking of the total shareholder return of our Class B common stock during the three-year performance period compared to that of the companies within the Standard & Poor’s Consumer Staples Index at the end of the performance period, with specific payout levels ranging from 50% to 150%. At the end of the performance period, the RSUs are converted to common shares that are subject to an additional one-year holding requirement. The number of shares is determined by adjusting the RSUs by the performance multiplier and adjusting upward to account for dividends paid on our common stock during the second and third years of the performance period. The following table presents information about RSUs outstanding as of April 30, 2020, and for the year then ended. Number of RSUs (in thousands) Weighted- Average Fair Value at Grant Date Outstanding at April 30, 2019 382 $ 44.91 Granted 88 $ 56.99 Converted to common shares (179 ) $ 38.56 Forfeited (2 ) $ 55.27 Outstanding at April 30, 2020 289 $ 52.44 We calculate the grant-date fair value of a performance based RSU using a Monte Carlo simulation technique. The weighted average grant-date fair values and related valuation assumptions for these awards granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 46.93 $ 55.29 $ 56.99 Valuation assumptions: Risk-free interest rate 1.5 % 2.7 % 1.8 % Expected volatility 18.9 % 20.8 % 21.8 % Expected dividend yield 1.4 % 1.2 % 1.2 % Remaining performance period (years) as of grant date 2.8 2.8 2.8 DSUs. DSUs are granted to our non-employee directors. Each DSU represents the right to receive one share of common stock based on the closing price of the shares on the date of grant. Outstanding DSUs are credited with dividend-equivalent DSUs when dividends are paid on our common stock. Each annual grant vests after one year. DSUs are paid out in shares after the completion of a director’s tenure on the board plus a six-month waiting period. The director may elect to receive the distribution either in a single lump sum or in ten equal annual installments. As of April 30, 2020, there were approximately 246,000 outstanding DSUs, of which approximately 215,000 were vested. The grant-date fair value of a DSU is the closing market price of the underlying stock on the grant date. The weighted average grant-date fair values for these awards granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 41.81 $ 54.20 $ 53.34 Additional information. The pre-tax stock-based compensation expense and related deferred income tax benefits recognized during the last three fiscal years were as follows: 2018 2019 2020 Pre-tax compensation expense $ 19 $ 14 $ 11 Deferred tax benefit 6 2 2 As of April 30, 2020, there was $7 of total unrecognized compensation cost related to non-vested stock-based awards. That cost is expected to be recognized over a weighted-average period of 1.6 years . Further information related to our stock-based awards for the last three years is as follows: 2018 2019 2020 Intrinsic value of SSARs exercised $ 73 $ 31 $ 89 Fair value of shares vested 1 6 20 14 Excess tax benefit from exercise / vesting of awards 18 7 20 1 The fair value of shares vested in fiscal 2019 includes $10 related to a one-time performance-based special grant of restricted stock issued in fiscal 2014 to our Chief Executive Officer (who retired in fiscal 2019). During the performance period, dividends accrued and the award was adjusted for all applicable stock splits during the vesting period, subject to the same performance measures as the initial grant. The resulting shares vested on June 1, 2018. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes We incur income taxes on the earnings of our U.S. and foreign operations. The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes: 2018 2019 2020 United States $ 747 $ 863 $ 849 Foreign 230 179 160 $ 977 $ 1,042 $ 1,009 The income shown above was determined according to GAAP. Because those standards sometimes differ from the tax rules used to calculate taxable income, there are differences between: (a) the amount of taxable income and pretax financial income for a year and (b) the tax bases of assets or liabilities and their amounts as recorded in our financial statements. As a result, we recognize a current tax liability for the estimated income tax payable on the current tax return, and deferred tax liabilities (income tax payable on income that will be recognized on future tax returns) and deferred tax assets (income tax refunds from deductions that will be recognized on future tax returns) for the estimated effects of the differences mentioned above. Total income tax expense for a year includes the tax associated with the current tax return (current tax expense) and the change in the net deferred tax asset or liability (deferred tax expense). Our total income tax expense for each of the last three years was as follows: 2018 2019 2020 Current: U.S. federal $ 265 $ 107 $ 95 Foreign 47 34 29 State and local 17 28 19 329 169 143 Deferred: U.S. federal (48 ) 37 34 Foreign (13 ) 4 7 State and local (8 ) (3 ) (2 ) (69 ) 38 39 $ 260 $ 207 $ 182 On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (Tax Act). The Tax Act significantly revised the future, ongoing U.S. corporate income tax by, among other things, lowering U.S. corporate income tax rates and implementing a territorial tax system. Because we have an April 30 fiscal year-end, the lower corporate income tax rate was phased in, resulting in a U.S. statutory federal rate of 30.4% for our fiscal year ended April 30, 2018, and 21% for fiscal 2019 and subsequent fiscal years. For the year ended April 30, 2019, the reduction of the U.S. statutory federal rate from 35% (the pre-Tax Act rate) to 21% resulted in a tax benefit of $115 . There were also certain transitional impacts of the Tax Act. As part of the transition to the new territorial tax system, the Tax Act imposed a one-time repatriation tax on deemed repatriation of historical earnings of foreign subsidiaries. In addition, we adjusted our U.S. deferred tax assets and liabilities to the lower federal base rate of 21% . These transitional impacts resulted in a provisional net charge of $43 for the year ended April 30, 2018, composed of a provisional repatriation U.S. tax charge of $91 and a provisional net deferred tax benefit of $48 . In the fiscal year ended April 30, 2019, we recorded a benefit of $4 as an adjustment to the provisional repatriation tax. The changes included in the Tax Act are broad and complex. The U.S. Securities and Exchange Commission issued rules that allowed for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. As of April 30, 2019, the amounts recorded for the Tax Act for the one-time repatriation tax and the adjustment to our U.S. deferred tax assets and liabilities were finalized and no longer deemed to be provisional. The Tax Act also established new tax provisions that impact our financial statements beginning in fiscal 2019. These new provisions include (a) Global Intangible Low-Tax Income (GILTI), a new inclusion rule affecting non-routine income earned by foreign subsidiaries; (b) Base Erosion Anti-Abuse Tax (BEAT), a new minimum tax; (c) Foreign-Derived Intangible Income (FDII), a new preferential tax rate for domestic income earned from serving foreign markets; (d) repeal of the domestic production activity deduction; and (e) limitations on the deductibility of certain executive compensation. For the fiscal year ended April 30, 2019 and April 30, 2020, the net impact of these provisions was approximately $12 and $11 of additional tax, respectively. The Coronavirus Aid, Relief, and Economic Security Act (CARES Act) was enacted on March 27, 2020. It included certain provisions for additional net operating loss utilization, immediate refund for AMT Credit Carryforwards, and increased income limitation under IRC section 163(j) for 2019 and 2020. The CARES Act also retroactively clarified the immediate write-off of qualified improvement property beginning in 2018 and increased the charitable contribution deduction. As of April 30, 2020, we had approximately $1,279 of undistributed earnings from our foreign subsidiaries. Most of these earnings have been previously subject to tax, primarily as a result of the one-time repatriation tax on foreign earnings required by the Tax Act. Historically, we have asserted that the undistributed earnings of our foreign subsidiaries are reinvested indefinitely outside the United States. During fiscal 2020, we changed our indefinite reinvestment assertion with respect to current year earnings and prior year undistributed earnings for one of our foreign subsidiaries (but not for its other outside basis differences) and repatriated $15 of cash to the United States. No incremental taxes were due on this distribution of cash beyond the repatriation tax recorded in fiscal year 2018. However, we incurred withholding tax of $1 related to the distribution. We have not changed the indefinite reinvestment assertion on the undistributed earnings or other outside basis differences of any of our other remaining foreign subsidiaries, and no deferred taxes have been provided. A determination of the unrecognized deferred tax liabilities on the other outside basis differences and earnings reinvested indefinitely at April 30, 2020, is not practicable due to the complexities in the calculations. The other outside basis differences are primarily related to differences between U.S. GAAP and tax basis that arose through purchase accounting. These basis differences could reverse through sales of foreign subsidiaries or other transactions, none of which are considered probable as of April 30, 2020. As of April 30, 2019, we had approximately $1,266 of undistributed earnings from our foreign subsidiaries. During fiscal 2019, we changed our indefinite reinvestment assertion with respect to current year earnings and prior year undistributed earnings for one of our foreign subsidiaries (but not for its other outside basis differences) and repatriated $120 of cash to the United States. Our consolidated effective tax rate usually differs from current statutory rates due to the recognition of amounts for events or transactions with no tax consequences. The following table reconciles our effective tax rate to the federal statutory tax rate in the United States: Percent of Income Before Taxes 2018 2019 2020 U.S. federal statutory rate 30.4 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 0.8 % 2.1 % 1.7 % Income taxed at other than U.S. federal statutory rate (3.4 %) (0.1 %) — % Tax benefit from foreign-derived sales — % (1.7 %) (2.0 %) Adjustments related to prior years (0.9 %) (1.2 %) (1.1 %) Tax benefit from U.S. manufacturing (2.5 %) — % — % Amortization of deferred tax benefit from intercompany transactions (1.6 %) — % — % Excess tax benefits from stock-based awards (1.8 %) (0.7 %) (2.0 %) Impact of Tax Act 2.5 % (0.4 %) — % Other, net 3.1 % 0.8 % 0.4 % Effective rate 26.6 % 19.8 % 18.0 % Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2019 2020 Deferred tax assets: Postretirement and other benefits $ 87 $ 110 Accrued liabilities and other 23 23 Inventories 34 26 Lease liabilities — 14 Loss and credit carryforwards 55 57 Valuation allowance (25 ) (22 ) Total deferred tax assets, net 174 208 Deferred tax liabilities: Intangible assets (218 ) (233 ) Property, plant, and equipment (73 ) (90 ) Right-of-use assets — (13 ) Derivative instruments (9 ) (18 ) Other (3 ) (16 ) Total deferred tax liabilities (303 ) (370 ) Net deferred tax liability $ (129 ) $ (162 ) Details of the loss and credit carryforwards and related valuation allowances as of the end of each of the last two years are as follows: April 30, 2019 April 30, 2020 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance Expiration (as of April 30, 2020) Finland net operating losses $ 105 $ 21 $ — $119 $24 $ — 2024-2030 Brazil net operating losses 42 14 (14 ) 31 10 (10 ) None United Kingdom non-trading losses 27 5 (5 ) 26 5 (5 ) None Various state net operating losses and credits 68 6 — 63 9 — Various 1 Other 54 9 (6 ) 50 9 (7 ) Various 2 $ 296 $ 55 $ (25 ) $ 289 $ 57 $ (22 ) 1 As of April 30, 2020, the net deferred tax asset amount includes credit carryforwards of $3 that do not expire and loss and credit carryforwards of $6 that expire in varying amounts from 2023 to 2040. 2 As of April 30, 2020, the gross amount includes loss carryforwards of $24 that do not expire and $26 that expire in varying amounts over the next 20 years. Although the losses in Brazil can be carried forward indefinitely, it is uncertain whether we will realize sufficient taxable income to allow us to use these losses. The non-trading losses in the United Kingdom can also be carried forward indefinitely. However, we know of no significant transactions that will let us use them. At April 30, 2020, we had $11 of gross unrecognized tax benefits, $9 of which would reduce our effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits follows: 2018 2019 2020 Unrecognized tax benefits at beginning of year $ 9 $ 11 $ 11 Additions for tax positions provided in prior periods 5 1 2 Additions for tax positions provided in current period 1 1 — Decreases for tax positions provided in prior years (4 ) (2 ) (1 ) Settlements of tax positions in the current period — — (1 ) Unrecognized tax benefits at end of year $ 11 $ 11 $ 11 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 2014 for one state in the United States; 2018 in the United Kingdom; 2016 in Australia; 2015 in Finland, Germany, and Poland; 2014 in the Netherlands and Brazil; and 2013 in Mexico. We expect the audits of our fiscal 2018 and fiscal 2019 U.S. federal tax returns to be concluded in the first half of fiscal 2021. In addition, we are participating in the Internal Revenue Service’s Compliance Assurance Program for our fiscal 2020 tax year. We believe there will be no material change in our gross unrecognized tax benefits in the next 12 months. |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Apr. 30, 2020 | |
Acquisition of Business [Abstract] | |
Acquisition of Business | Acquisition of Business On July 3, 2019, we acquired 100% of the voting interests in The 86 Company, which owns Fords Gin, for $22 in cash. The purchase price was allocated largely to the intangible assets that were acquired, including goodwill of $11 and other indefinite-lived intangibles of $12 , net of deferred tax liabilities of $1 . The goodwill is primarily attributable to the value of leveraging our distribution network and brand-building expertise to grow global sales of the Fords Gin brand and to the knowledge and expertise of the organized workforce employed by the acquired business. We do not expect the goodwill to be deductible for tax purposes. The 86 Company has been included in our consolidated financial statements since the acquisition date. Actual and pro forma results are not presented due to immateriality. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Apr. 30, 2020 | |
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 in accumulated other comprehensive income (AOCI) until the underlying hedged transaction occurs, at which time we reclassify that amount into earnings. We do not designate some of our currency derivatives as hedges because we use them to partially offset the immediate earnings impact of changes in foreign currency 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 notional amounts for all hedged currencies totaling $1,241 and $1,026 at April 30, 2019 and 2020 , respectively. The maximum term of outstanding derivative contracts was 36 months at both April 30, 2019 and 2020 . We also use foreign currency-denominated debt to help manage our foreign currency exchange risk. The amount of foreign currency-denominated debt designated as net investment hedges was $635 and $613 as of April 30, 2019 and 2020 , respectively. These net investment hedges are intended to mitigate foreign currency exchange exposure related to non-U.S. dollar net 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. At inception, we expect each financial instrument designated as a hedge to be highly effective in offsetting the financial exposure it is designed to mitigate. We also assess the effectiveness on an ongoing basis. If determined to no longer be highly effective, designation and accounting for the instrument as a hedge would be discontinued. 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 as derivative instruments. The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings during each of the last three years: Classification in Statement of Operations 2018 2019 2020 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (54 ) $ 69 $ 61 Net gain (loss) reclassified from AOCI into earnings Sales (11 ) 6 23 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales (5 ) 6 4 Net gain (loss) recognized in earnings Other income (expense), net 9 6 (14 ) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a (41 ) 45 22 Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,201 4,276 4,306 Other income (expense), net 16 15 (11 ) We expect to reclassify $47 of deferred net gains on cash flow hedges recorded in AOCI as of April 30, 2020 , to earnings during fiscal 2021 . 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 following table presents the fair values of our derivative instruments as of April 30, 2019 and 2020 : Balance Sheet Classification Derivative Assets Derivative Liabilities April 30, 2019 Designated as cash flow hedges: Currency derivatives Other current assets $ 21 $ (2 ) Currency derivatives Other assets 22 (1 ) Currency derivatives Accrued expenses — (5 ) Currency derivatives Other liabilities — (1 ) Not designated as hedges: Currency derivatives Accrued expenses — — April 30, 2020 Designated as cash flow hedges: Currency derivatives Other current assets 49 (1 ) Currency derivatives Other assets 30 — Currency derivatives Accrued expenses — — Currency derivatives Other liabilities — — Not designated as hedges: Currency derivatives Accrued expenses — (2 ) 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 subject to net settlement agreements are presented on a net basis in our balance sheets. In our statements 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 we monitor regularly, 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 $6 and $2 at April 30, 2019 and 2020 , respectively. 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 (that is, those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheets. The following table summarizes the gross and net amounts of our derivative contracts: 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, 2019 Derivative assets $ 43 $ (3 ) $ 40 $ — $ 40 Derivative liabilities (9 ) 3 (6 ) — (6 ) April 30, 2020 Derivative assets 79 (1 ) 78 — 78 Derivative liabilities (3 ) 1 (2 ) — (2 ) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2019 or 2020 . |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: 2019 2020 April 30, Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 307 $ 307 $ 675 $ 675 Currency derivatives 40 40 78 78 Liabilities: Currency derivatives 6 6 2 2 Short-term borrowings 150 150 333 333 Long-term debt 2,290 2,399 2,269 2,486 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 on 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 supported by little or no market activity. 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 spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy. We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy. The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. 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). As discussed in Note 4, we recognized a non-cash impairment charge during the fourth quarter of fiscal 2020 related to our Chambord brand name. The impairment charge was based on the estimated fair value of the brand name, which we determined using the relief from royalty method, and which is categorized as Level 3 within the valuation hierarchy. No other material nonrecurring fair value measurements were required during the periods presented in these financial statements. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases We enter into lease arrangements, which we use primarily for office space, vehicles, and land. Substantially all of our leases are operating leases. Our finance leases are not material. Effective May 1, 2019, we updated our accounting policy for leases to reflect the adoption of ASC 842. Under ASC 842, we record lease liabilities and right-of-use (ROU) assets on our balance sheet for leases with terms exceeding 12 months. We do not record lease liabilities or ROU assets for short-term leases. The amounts recorded for lease liabilities and ROU assets are based on the estimated present value, as of the lease commencement date, of the future payments to be made over the lease term. We calculate the present value using our incremental borrowing rate that corresponds to the term of the lease. We include the effect of an option to renew or terminate a lease in the lease term when it is reasonably certain that we will exercise the option. Some of our leases contain non-lease components (e.g., maintenance or other services) in addition to lease components. We have elected the practical expedient not to separate the non-lease components from the lease components. The following table shows the amounts and classification of ROU assets and lease liabilities on our balance sheet as of April 30, 2020: Classification April 30, Right-of-use assets Other assets $ 51 Lease liabilities: Current Accounts payable and accrued expenses $ 16 Non-current Other liabilities 37 Total $ 53 The following table shows information about the effects of leases during 2020: 2020 Total lease cost 1 $ 29 Cash paid for amounts included in the measurement of lease liabilities 2 21 Right-of-use assets obtained in exchange for new lease liabilities 35 1 Consists primarily of operating lease cost. Other components of lease cost were not material. 2 Classified within operating activities in the accompanying consolidated statement of cash flows. The following table includes a maturity analysis of future (undiscounted) operating lease payments and a reconciliation of those payments to the lease liabilities recorded on our balance sheet as of April 30, 2020: April 30, 2021 $ 17 2022 13 2023 9 2024 6 2025 3 Thereafter 9 Total lease payments 57 Less: Present value discount (4 ) Lease liabilities $ 53 Weighted-average discount rate 3.0% Weighted-average remaining term 5.2 years Future operating lease payments, under the prior accounting standard (ASC 840), were as follows as of April 30, 2019: April 30, 2020 $ 23 2021 16 2022 10 2023 5 2024 3 Thereafter 2 Total lease payments $ 59 Rent expense for operating leases (under ASC 840) was $26 in 2018 and $28 in 2019. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following table presents the components of net other comprehensive income (loss) during each of the last three years: Pre-Tax Tax Net Year Ended April 30, 2018 Currency translation adjustments: Net gain (loss) on currency translation $ 12 $ 12 $ 24 Reclassification to earnings — — — Other comprehensive income (loss), net 12 12 24 Cash flow hedge adjustments: Net gain (loss) on hedging instruments (54 ) 18 (36 ) Reclassification to earnings 1 11 (3 ) 8 Other comprehensive income (loss), net (43 ) 15 (28 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 5 (2 ) 3 Reclassification to earnings 2 20 (7 ) 13 Other comprehensive income (loss), net 25 (9 ) 16 Total other comprehensive income (loss), net $ (6 ) $ 18 $ 12 Year Ended April 30, 2019 Currency translation adjustments: Net gain (loss) on currency translation $ (16 ) $ (11 ) $ (27 ) Reclassification to earnings — — — Other comprehensive income (loss), net (16 ) (11 ) (27 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 69 (16 ) 53 Reclassification to earnings 1 (6 ) 1 (5 ) Other comprehensive income (loss), net 63 (15 ) 48 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (41 ) 10 (31 ) Reclassification to earnings 2 33 (8 ) 25 Other comprehensive income (loss), net (8 ) 2 (6 ) Total other comprehensive income (loss), net $ 39 $ (24 ) $ 15 Year Ended April 30, 2020 Currency translation adjustments: Net gain (loss) on currency translation $ (88 ) $ (6 ) $ (94 ) Reclassification to earnings — — — Other comprehensive income (loss), net (88 ) (6 ) (94 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 61 (14 ) 47 Reclassification to earnings 1 (23 ) 6 (17 ) Other comprehensive income (loss), net 38 (8 ) 30 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (119 ) 28 (91 ) Reclassification to earnings 2 18 (4 ) 14 Other comprehensive income (loss), net (101 ) 24 (77 ) Total other comprehensive income (loss), net $ (151 ) $ 10 $ (141 ) 1 Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is classified as non-operating postretirement expense in the accompanying consolidated statements of operations. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Supplemental Information | Supplemental Information The following table presents net sales by geography: 2018 2019 2020 Net sales: United States $ 1,529 $ 1,563 $ 1,690 United Kingdom 206 199 180 Germany 146 159 171 Australia 163 164 155 Mexico 162 166 155 Other 1,042 1,073 1,012 $ 3,248 $ 3,324 $ 3,363 Net sales are attributed to countries based on where customers are located. See Note 8 for additional information about net sales, including net sales by product category. Our two largest customers accounted for approximately 18% and 13% of consolidated net sales in 2020. The net book value of property, plant, and equipment located outside the United States was $107 and $105 as of April 30, 2019 and 2020 , respectively. Other long-lived assets located outside the United States are not significant. We have concluded that our business constitutes a single operating segment. |
Subsequent Event
Subsequent Event | 12 Months Ended |
Apr. 30, 2020 | |
Subsequent Event [Abstract] | |
Subsequent Event | Subsequent Event On June 12, 2020, we entered into an agreement to sell assets related to the Early Times, Canadian Mist, and Collingwood brands (including intellectual property, inventories, and the Canadian Mist production assets) to Sazerac Company. The sale reflects the continued evolution of our portfolio strategy to focus on premium brands. We expect to recognize a gain on the sale at closing, which is currently expected to occur by October 31, 2020. The total carrying amount of the assets to be included in the sale is approximately 1% of our consolidated total assets. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts For the Years Ended April 30, 2018 , 2019 , and 2020 (Expressed in millions) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Description Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Charged to Other Accounts Deductions Balance at End of Period 2018 Allowance for doubtful accounts $ 7 $ — $ — $ — $ 7 Deferred tax valuation allowance $ 30 $ 3 $ 1 $ 5 $ 29 2019 Allowance for doubtful accounts $ 7 $ 1 $ — $ 1 (1) $ 7 Deferred tax valuation allowance $ 29 $ 1 $ 1 $ 6 $ 25 2020 Allowance for doubtful accounts $ 7 $ 4 $ — $ — $ 11 Deferred tax valuation allowance $ 25 $ 2 $ — $ 5 $ 22 (1) Doubtful accounts written off, net of recoveries. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. Our consolidated financial statements include the accounts of all subsidiaries in which we have a controlling financial interest. We eliminate all intercompany transactions. |
Estimates | Estimates. To prepare financial statements that conform with GAAP, our management must make informed estimates that affect how we report revenues, expenses, assets, and liabilities, including contingent assets and liabilities. Actual results could differ from these estimates. |
Cash equivalents | Cash equivalents. Cash equivalents include bank demand deposits and all highly liquid investments with original maturities of three months or less. |
Allowance for doubtful accounts | Allowance for doubtful accounts. We evaluate the collectability of accounts receivable based on a combination of factors. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off the uncollectable amount against the allowance when we have exhausted our collection efforts. The allowance for doubtful accounts was $7 and $11 at April 30, 2019 and 2020, respectively. |
Inventories | Inventories. Inventories are valued at the lower of cost or net realizable value. Approximately 51% of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories. We value the remainder of our inventories primarily using the first-in, first-out (FIFO) cost method. FIFO cost approximates current replacement cost. If we had used the FIFO method for all inventories, they would have been $303 and $311 higher than reported at April 30, 2019 and 2020 , respectively. Because we age most of our whiskeys in barrels for 3 to 6 years , we bottle and sell only a portion of our whiskey inventory each year. Following industry practice, we classify all barreled whiskey as a current asset. We include warehousing, insurance, ad valorem taxes, and other carrying charges applicable to barreled whiskey in inventory costs. We classify bulk wine, agave inventories, tequila, and liquid in bottling tanks as work in process. |
Property, plant, and equipment | Property, plant, and equipment. We state property, plant, and equipment at cost less accumulated depreciation. We calculate depreciation on a straight-line basis using our estimates of useful life, which are 20 – 40 years for buildings and improvements; 3 – 10 years for machinery, equipment, vehicles, furniture, and fixtures; and 3 – 7 years for capitalized software. We assess our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. When we do not expect to recover the carrying value of an asset (or asset group) through undiscounted future cash flows, we write it down to its estimated fair value. We determine fair value using discounted estimated future cash flows, considering market values for similar assets when available. When we retire or dispose of property, plant, and equipment, we remove its cost and accumulated depreciation from our balance sheet and reflect any gain or loss in operating income. We expense the costs of repairing and maintaining our property, plant, and equipment as we incur them. |
Goodwill and other intangible assets | Goodwill and other intangible assets. We have obtained most of our brands by acquiring other companies. When we acquire another company, we first allocate the purchase price to identifiable assets and liabilities, including intangible brand names and trademarks (“brand names”), based on estimated fair value. We then record any remaining purchase price as goodwill. We do not amortize goodwill or other intangible assets with indefinite lives. We consider all of our brand names to have indefinite lives. We assess our goodwill and other indefinite-lived intangible assets for impairment at least annually, or more frequently if circumstances indicate the carrying amount may be impaired. Goodwill is impaired when the carrying amount of the related reporting unit exceeds its estimated fair value, in which case we write down the goodwill by the amount of the excess (limited to the carrying amount of the goodwill). We estimate the reporting unit’s fair value using discounted estimated future cash flows or market information. Similarly, a brand name is impaired when its carrying amount exceeds its estimated fair value, in which case we write down the brand name to its estimated fair value. We typically estimate the fair value of a brand name using either the “relief from royalty” or “excess earnings” method. We also consider market values for similar assets when available. Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about future cash flows, discount rates, and royalty rates. We have the option, before quantifying the fair value of a reporting unit or brand name, to evaluate qualitative factors to assess whether it is more likely than not that our goodwill or brand names are impaired. If we determine that is not the case, then we are not required to quantify the fair value. That assessment also takes considerable management judgment. |
Revenue recognition | Revenue recognition. Our net sales predominantly reflect global sales of beverage alcohol consumer products. We sell these products under contracts with different types of customers, depending on the market. The customer is most often a distributor, wholesaler, or retailer. Each contract typically includes a single performance obligation to transfer control of the products to the customer. Depending on the contract, control is transferred when the products are either shipped or delivered to the customer, at which point we recognize the transaction price for those products as net sales. The transaction price recognized at that point reflects our estimate of the consideration to be received in exchange for the products. The actual amount may ultimately differ due to the effect of various customer incentives and trade promotion activities. In making our estimates, we consider our historical experience and current expectations, as applicable. Subsequent adjustments recognized for changes in estimated transaction prices are typically not material. Net sales exclude taxes we collect from customers that are imposed by various governments on our sales, and are reduced by payments to customers unless made in exchange for distinct goods or services with fair values approximating the payments. Net sales include any amounts we bill customers for shipping and handling activities related to the products. We recognize the cost of those activities in cost of sales during the same period in which we recognize the related net sales. Sales returns, which are permitted only in limited situations, are not material. Customer payment terms generally range from 30 to 90 days. There are no significant amounts of contract assets or liabilities. |
Cost of sales | Cost of sales. Cost of sales includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods sold during the period. |
Advertising costs | Advertising costs. We expense the costs of advertising during the year when the advertisements first take place. |
Selling, general, and administrative expenses | Selling, general, and administrative expenses. Selling, general, and administrative expenses include the costs associated with our sales force, administrative staff and facilities, and other expenses related to our non-manufacturing functions. |
Stock-based compensation | Stock-based compensation. We use stock-based awards as part of our incentive compensation for eligible employees and directors. We recognize the grant-date fair value of an award as compensation expense on a straight-line basis over the requisite service period, which typically corresponds to the vesting period for the award. Upon forfeiture of an award prior to vesting, we reverse any previously-recognized compensation expense related to that award. We classify stock-based compensation expense within selling, general, and administrative expenses. As we recognize compensation expense for a stock-based award, we concurrently recognize a related deferred tax asset. The subsequent vesting or exercise of the award will generally result in an actual tax benefit that differs from the deferred tax asset that had been recorded. The excess (deficiency) of the actual tax benefit over (under) the previously-recorded tax asset is recognized as income tax benefit (expense) on the date of vesting or exercise. |
Income taxes | Income taxes. We base our annual provision for income taxes on the pre-tax income reflected in our consolidated statement of operations. We establish deferred tax liabilities or assets for temporary differences between GAAP and tax reporting bases and later adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance as necessary to reduce a deferred tax asset to the amount that we believe is more likely than not to be realized. We do not provide deferred income taxes on undistributed earnings of foreign subsidiaries that we expect to permanently reinvest. We record a deferred tax charge in prepaid taxes for the difference between GAAP and tax reporting bases with respect to the elimination of intercompany profit in ending inventory. We assess our uncertain income tax positions in two steps. First, we evaluate whether the tax position will more likely than not, based on its technical merits, be sustained upon examination, including resolution of any related appeals or litigation. For a tax position that does not meet this first criterion, we recognize no tax benefit. For a tax position that does meet the first criterion, we recognize a tax benefit in an amount equal to the largest amount of benefit that we believe has more than a 50% likelihood of being realized upon ultimate resolution. We record interest and penalties on uncertain tax positions as income tax expense. |
Foreign currency transactions and translation | Foreign currency transactions and translation. We report all gains and losses from foreign currency transactions (those denominated in a currency other than the entity’s functional currency) in current income. The U.S. dollar is the functional currency for most of our consolidated entities. The local currency is the functional currency for some of our consolidated foreign entities. We translate the financial statements of those foreign entities into U.S. dollars, using the exchange rate in effect at the balance sheet date to translate assets and liabilities, and using the average exchange rate for the reporting period to translate income and expenses. We record the resulting translation adjustments in other comprehensive income (loss). |
Adoption of updated accounting standards | Adoption of updated accounting standards. Effective May 1, 2019, we adopted the following Accounting Standards Updates (ASUs) issued by the Financial Accounting Standards Board: • ASU 2016-02 : Leases. This update, codified along with various amendments as Accounting Standards Codification Topic 842 (ASC 842), replaces previous lease accounting guidance. Under ASC 842, a lessee should recognize on its balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. We adopted ASC 842 using a modified retrospective transition approach for leases existing at the date of adoption. For the transition, we elected to use the package of practical expedients to not reassess (a) whether existing contracts are or contain leases, (b) the classification of existing leases, and (c) initial direct costs for existing leases. Upon adoption, we recorded lease liabilities and right-of-use assets of $54 . The adoption did not have a material impact on our results of operations, stockholders’ equity, or cash flows. See Note 15 for additional information about our leases. • ASU 2018-02 : Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI). This new guidance allows a reclassification from AOCI to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act enacted by the U.S. government in December 2017. We elected to make the reclassification, which increased retained earnings and decreased AOCI as of May 1, 2019, by $43 . There are no new accounting standards or updates to be adopted that we currently believe might have a significant impact on our consolidated financial statements. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block] | In our statements 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. |
Leases Leases (Policies)
Leases Leases (Policies) | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | Effective May 1, 2019, we updated our accounting policy for leases to reflect the adoption of ASC 842. Under ASC 842, we record lease liabilities and right-of-use (ROU) assets on our balance sheet for leases with terms exceeding 12 months. We do not record lease liabilities or ROU assets for short-term leases. The amounts recorded for lease liabilities and ROU assets are based on the estimated present value, as of the lease commencement date, of the future payments to be made over the lease term. We calculate the present value using our incremental borrowing rate that corresponds to the term of the lease. We include the effect of an option to renew or terminate a lease in the lease term when it is reasonably certain that we will exercise the option. Some of our leases contain non-lease components (e.g., maintenance or other services) in addition to lease components. We have elected the practical expedient not to separate the non-lease components from the lease components. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental information on year end balance sheets | Supplemental information on our year-end balance sheets is as follows: April 30, 2019 2020 Other current assets: Prepaid taxes $ 191 $ 195 Other 92 140 $ 283 $ 335 Property, plant, and equipment: Land $ 82 $ 82 Buildings 617 652 Equipment 769 814 Construction in process 57 41 1,525 1,589 Less accumulated depreciation 709 741 $ 816 $ 848 Accounts payable and accrued expenses: Accounts payable, trade $ 150 $ 131 Accrued expenses: Advertising and promotion 160 135 Compensation and commissions 84 71 Excise and other non-income taxes 63 80 Other 87 100 394 386 $ 544 $ 517 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (207 ) $ (302 ) Cash flow hedge adjustments 31 60 Postretirement benefits adjustments (187 ) (305 ) $ (363 ) $ (547 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
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: 2018 2019 2020 Net income available to common stockholders $ 717 $ 835 $ 827 Share data (in thousands): Basic average common shares outstanding 480,319 478,956 477,765 Dilutive effect of stock-based awards 3,929 3,111 2,644 Diluted average common shares outstanding 484,248 482,067 480,409 Basic earnings per share $ 1.49 $ 1.74 $ 1.73 Diluted earnings per share $ 1.48 $ 1.73 $ 1.72 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table shows the changes in goodwill (which include no accumulated impairment losses) and other intangible assets over the past two years: Goodwill Other Intangible Assets Balance as of April 30, 2018 $ 763 $ 670 Foreign currency translation adjustment (10 ) (25 ) Balance as of April 30, 2019 753 645 Acquisition of business (Note 12) 11 12 Foreign currency translation adjustment (8 ) (9 ) Impairment — (13 ) Balance as of April 30, 2020 $ 756 $ 635 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2019 2020 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 249 3.50% senior notes, $300 principal amount, due April 15, 2025 297 297 1.20% senior notes, €300 principal amount, due July 7, 2026 333 324 2.60% senior notes, £300 principal amount, due July 7, 2028 383 369 4.00% senior notes, $300 principal amount, due April 15, 2038 293 294 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 487 488 $ 2,290 $ 2,269 |
Schedule of short-term debt | Details of our short-term borrowings at April 30, 2019 and 2020, are presented below: April 30, 2019 2020 Commercial paper $150 $333 Average interest rate 2.60% 1.29% Average remaining days to maturity 18 73 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Class of Stock [Line Items] | |
Schedule of Common Stock Outstanding Roll Forward [Table Text Block] | The following table shows the change in outstanding common shares (split-adjusted) during each of the last three years: (Shares in thousands) Class A Class B Total Balance at April 30, 2017 169,051 311,055 480,106 Acquisition of treasury stock (25 ) (6 ) (31 ) Stock issued under compensation plans 36 890 926 Balance at April 30, 2018 169,062 311,939 481,001 Acquisition of treasury stock (145 ) (4,212 ) (4,357 ) Stock issued under compensation plans 82 446 528 Balance at April 30, 2019 168,999 308,173 477,172 Acquisition of treasury stock (13 ) (3 ) (16 ) Stock issued under compensation plans 54 999 1,053 Balance at April 30, 2020 169,040 309,169 478,209 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Net Sales [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table shows our net sales by geography: 2018 2019 2020 United States $ 1,529 $ 1,563 $ 1,690 Developed International 1 908 917 901 Emerging 2 575 597 572 Travel Retail 3 139 140 125 Non-branded and bulk 4 97 107 75 $ 3,248 $ 3,324 $ 3,363 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are the United Kingdom, Germany, Australia, France, Japan, and Canada. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, and Russia. 3 Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. 4 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. The following table shows our net sales by product category: 2018 2019 2020 Whiskey 1 $ 2,533 $ 2,595 $ 2,671 Tequila 2 247 263 275 Wine 3 187 187 186 Vodka 4 130 126 109 Rest of portfolio 54 46 47 Non-branded and bulk 5 97 107 75 $ 3,248 $ 3,324 $ 3,363 1 Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, and Coopers' Craft. 2 Includes el Jimador, Herradura, New Mix, Pepe Lopez, and Antiguo. 3 Includes Korbel Champagne and Sonoma-Cutrer wines. 4 Includes Finlandia. 5 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Retirement Benefits [Abstract] | |
Change in present value of pension and other postretirement benefit obligation | The following table shows how the present value of our projected benefit obligations changed during each of the last two years. Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Obligation at beginning of year $ 903 $ 908 $ 50 $ 50 Service cost 24 24 1 1 Interest cost 34 31 2 1 Net actuarial loss (gain) 28 108 — 2 Retiree contributions — — 1 1 Benefits paid (81 ) (66 ) (4 ) (4 ) Obligation at end of year $ 908 $ 1,005 $ 50 $ 51 |
Expected benefit payments over the next 10 years | Expected benefit payments (net of retiree contributions) over the next 10 years are as follows: Pension Benefits Medical and Life Insurance Benefits 2021 $ 62 $ 3 2022 62 3 2023 62 3 2024 63 3 2025 63 3 2026 – 2030 425 16 |
Fair value of pension plan assets by category, as well as the actual and target allocations | The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 14.) Level 1 Level 2 Level 3 Total April 30, 2019 Equity securities $ 79 $ — $ — $ 79 Cash and temporary investments 29 — — 29 Limited partnership interest 1 — — 3 3 $ 108 $ — $ 3 111 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 157 Fixed income funds 370 Real estate funds 66 Short-term investments 23 Limited partnership interests 3 27 Total $ 754 April 30, 2020 Equity securities $ 80 $ — $ — $ 80 Cash and temporary investments — — — — Limited partnership interest 1 — — 2 2 $ 80 $ — $ 2 82 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 193 Fixed income funds 370 Real estate funds 68 Short-term investments 4 Limited partnership interests 3 32 Total $ 749 1 This limited partnership interest was initially valued at cost and has been adjusted to fair value as determined in good faith by management of the partnership using various factors, and does not meet the requirements for reporting at the net asset value (NAV). The valuation requires significant judgment due to the absence of quoted market prices and the inherent lack of liquidity. This limited partnership has a term expiring in September 2020, although this period may be extended. 2 Commingled trust fund valuations are based on the NAV of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. Generally, for commingled trust funds other than real estate, redemptions are permitted daily with no notice period. The real estate fund is redeemable quarterly with 110 days’ notice. 3 These limited partnership interests were initially valued at cost and have been adjusted using NAV per audited financial statements. Investments are generally not eligible for immediate redemption and have original terms averaging 10 to 13 years, although those periods may be extended. |
Change in fair value of Level 3 assets | The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels. Level 3 Balance as of April 30, 2018 $ 4 Sales and settlements (1 ) Balance as of April 30, 2019 3 Sales and settlements (1 ) Balance as of April 30, 2020 $ 2 |
Change in fair value of pension plan Assets | The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Assets at beginning of year $ 780 $ 754 $ — $ — Actual return on assets 34 39 — — Retiree contributions — — 1 1 Company contributions 21 22 3 3 Benefits paid (81 ) (66 ) (4 ) (4 ) Assets at end of year $ 754 $ 749 $ — $ — |
Funded status of plans | The following table shows the funded status of our plans. Pension Benefits Medical and Life Insurance Benefits April 30, 2019 2020 2019 2020 Assets $ 754 $ 749 $ — $ — Obligations (908 ) (1,005 ) (50 ) (51 ) Funded status $ (154 ) $ (256 ) $ (50 ) $ (51 ) |
Funded status is recorded on the accompanying consolidated balance sheets | The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life Insurance Benefits April 30, 2019 2020 2019 2020 Other assets $ 2 $ — $ — $ — Accounts payable and accrued expenses (6 ) (7 ) (3 ) (3 ) Accrued postretirement benefits (150 ) (249 ) (47 ) (48 ) Net liability $ (154 ) $ (256 ) $ (50 ) $ (51 ) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (298 ) $ (394 ) $ (10 ) $ (11 ) Prior service credit (cost) (8 ) (6 ) 10 7 $ (306 ) $ (400 ) $ — $ (4 ) |
Pension plans that have assets in excess of their accumulated benefit obligations with those whose assets are less than their obligations | The following table compares our pension plans whose assets exceed their accumulated benefit obligations with those whose obligations exceed their assets. (As noted above, we have no assets set aside for postretirement medical or life insurance benefits.) Plan Assets Accumulated Benefit Obligation Projected Benefit Obligation April 30, 2019 2020 2019 2020 2019 2020 Plans with assets in excess of accumulated benefit obligation $ 754 $ 625 $ 668 $ 613 $ 752 $ 698 Plans with accumulated benefit obligation in excess of assets — 124 136 277 156 307 Total $ 754 $ 749 $ 804 $ 890 $ 908 $ 1,005 |
Pension expense | The following table shows the components of the pension cost recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. Pension Benefits 2018 2019 2020 Service cost $ 24 $ 24 $ 24 Interest cost 29 34 31 Expected return on assets (41 ) (47 ) (46 ) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 21 19 19 Settlement charge — 15 1 Net cost $ 34 $ 46 $ 30 |
Postretirement medical and life insurance benefit expense | The following table shows the components of the postretirement medical and life insurance benefits cost that we recognized during each of the last three years. Medical and Life Insurance Benefits 2018 2019 2020 Service cost $ 1 $ 1 $ 1 Interest cost 1 2 1 Amortization of: Prior service cost (credit) (3 ) (3 ) (3 ) Net actuarial loss (gain) 1 1 1 Net cost $ — $ 1 $ — |
Amounts recognized in other comprehensive income | The following table shows the pre-tax effect of these amounts on OCI during each of the last three years. Pension Benefits Medical and Life Insurance Benefits 2018 2019 2020 2018 2019 2020 Prior service credit (cost) $ (6 ) $ — $ — $ — $ — $ — Net actuarial gain (loss) 10 (41 ) (115 ) 1 — (2 ) Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3 ) (3 ) (3 ) Net actuarial loss (gain) 21 34 20 1 1 1 Net amount recognized in OCI $ 26 $ (6 ) $ (94 ) $ (1 ) $ (2 ) $ (4 ) |
Assumptions used in computing benefit plan obligations | The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows: Pension Benefits Medical and Life Insurance Benefits 2019 2020 2019 2020 Discount rate 4.04 % 3.28 % 3.98 % 3.17 % Rate of salary increase 4.00 % 4.00 % n/a n/a |
Assumptions used in computing benefit plan expense | assumptions used in computing benefit plan cost during each of the last three years were as follows: Pension Benefits Medical and Life Insurance Benefits 2018 2019 2020 2018 2019 2020 Discount rate for service cost 4.29 % 4.30 % 4.17 % 4.39 % 4.34 % 4.24 % Discount rate for interest cost 3.40 % 3.93 % 3.57 % 3.35 % 3.90 % 3.53 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Expected return on plan assets 6.75 % 6.50 % 6.50 % n/a n/a n/a |
Assumed health care cost trend rates | The assumed health care cost trend rates as of the end of the last two years were as follows: Medical and Life Insurance Benefits 2019 2020 Health care cost trend rate assumed for next year 7.30 % 6.90 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2025 2025 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Stock Appreciation Right, Activity [Table Text Block] | The following table presents information about SSARs outstanding as of April 30, 2020, and for the year then ended. Number of SSARs (in thousands) Weighted- Average Exercise Price per SSAR Weighted- Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at April 30, 2019 6,852 $ 33.25 Granted 522 54.64 Exercised (2,434 ) 27.77 Forfeited or expired (10 ) 49.70 Outstanding at April 30, 2020 4,930 $ 38.19 5.1 $ 118 Exercisable at April 30, 2020 2,932 $ 31.86 3.7 $ 89 |
Schedule of Share-Based Payment Award, Stock Appreciation Rights, Valuation Assumptions [Table Text Block] | The weighted-average grant-date fair values and related valuation assumptions for the SSARS granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 6.79 $ 11.06 $ 11.13 Valuation assumptions: Expected term (years) 7.00 7.00 7.00 Risk-free interest rate 2.2 % 2.9 % 1.9 % Expected volatility 15.6 % 17.1 % 19.3 % Expected dividend yield 1.5 % 1.4 % 1.2 % |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | The following table presents information about RSUs outstanding as of April 30, 2020, and for the year then ended. Number of RSUs (in thousands) Weighted- Average Fair Value at Grant Date Outstanding at April 30, 2019 382 $ 44.91 Granted 88 $ 56.99 Converted to common shares (179 ) $ 38.56 Forfeited (2 ) $ 55.27 Outstanding at April 30, 2020 289 $ 52.44 |
Schedule of Share-Based Payment Award, Restricted Stock Units, Valuation Assumptions [Table Text Block] | The weighted average grant-date fair values and related valuation assumptions for these awards granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 46.93 $ 55.29 $ 56.99 Valuation assumptions: Risk-free interest rate 1.5 % 2.7 % 1.8 % Expected volatility 18.9 % 20.8 % 21.8 % Expected dividend yield 1.4 % 1.2 % 1.2 % Remaining performance period (years) as of grant date 2.8 2.8 2.8 |
Grant Date Fair Values of DSUs [Table Text Block] | The weighted average grant-date fair values for these awards granted during each of the last three years were as follows: 2018 2019 2020 Grant-date fair value $ 41.81 $ 54.20 $ 53.34 |
Share-based Payment Arrangement, Cost by Plan [Table Text Block] | The pre-tax stock-based compensation expense and related deferred income tax benefits recognized during the last three fiscal years were as follows: 2018 2019 2020 Pre-tax compensation expense $ 19 $ 14 $ 11 Deferred tax benefit 6 2 2 |
Stock-Based Awards, Other Information [Table Text Block] | Further information related to our stock-based awards for the last three years is as follows: 2018 2019 2020 Intrinsic value of SSARs exercised $ 73 $ 31 $ 89 Fair value of shares vested 1 6 20 14 Excess tax benefit from exercise / vesting of awards 18 7 20 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign income before Income taxes | The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes: 2018 2019 2020 United States $ 747 $ 863 $ 849 Foreign 230 179 160 $ 977 $ 1,042 $ 1,009 |
Total income tax expense | Our total income tax expense for each of the last three years was as follows: 2018 2019 2020 Current: U.S. federal $ 265 $ 107 $ 95 Foreign 47 34 29 State and local 17 28 19 329 169 143 Deferred: U.S. federal (48 ) 37 34 Foreign (13 ) 4 7 State and local (8 ) (3 ) (2 ) (69 ) 38 39 $ 260 $ 207 $ 182 |
Reconciles our effective tax rate to the federal statutory tax rate in the United States | The following table reconciles our effective tax rate to the federal statutory tax rate in the United States: Percent of Income Before Taxes 2018 2019 2020 U.S. federal statutory rate 30.4 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 0.8 % 2.1 % 1.7 % Income taxed at other than U.S. federal statutory rate (3.4 %) (0.1 %) — % Tax benefit from foreign-derived sales — % (1.7 %) (2.0 %) Adjustments related to prior years (0.9 %) (1.2 %) (1.1 %) Tax benefit from U.S. manufacturing (2.5 %) — % — % Amortization of deferred tax benefit from intercompany transactions (1.6 %) — % — % Excess tax benefits from stock-based awards (1.8 %) (0.7 %) (2.0 %) Impact of Tax Act 2.5 % (0.4 %) — % Other, net 3.1 % 0.8 % 0.4 % Effective rate 26.6 % 19.8 % 18.0 % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2019 2020 Deferred tax assets: Postretirement and other benefits $ 87 $ 110 Accrued liabilities and other 23 23 Inventories 34 26 Lease liabilities — 14 Loss and credit carryforwards 55 57 Valuation allowance (25 ) (22 ) Total deferred tax assets, net 174 208 Deferred tax liabilities: Intangible assets (218 ) (233 ) Property, plant, and equipment (73 ) (90 ) Right-of-use assets — (13 ) Derivative instruments (9 ) (18 ) Other (3 ) (16 ) Total deferred tax liabilities (303 ) (370 ) Net deferred tax liability $ (129 ) $ (162 ) |
Loss carryforwards and valuation allowances | Details of the loss and credit carryforwards and related valuation allowances as of the end of each of the last two years are as follows: April 30, 2019 April 30, 2020 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance Expiration (as of April 30, 2020) Finland net operating losses $ 105 $ 21 $ — $119 $24 $ — 2024-2030 Brazil net operating losses 42 14 (14 ) 31 10 (10 ) None United Kingdom non-trading losses 27 5 (5 ) 26 5 (5 ) None Various state net operating losses and credits 68 6 — 63 9 — Various 1 Other 54 9 (6 ) 50 9 (7 ) Various 2 $ 296 $ 55 $ (25 ) $ 289 $ 57 $ (22 ) 1 As of April 30, 2020, the net deferred tax asset amount includes credit carryforwards of $3 that do not expire and loss and credit carryforwards of $6 that expire in varying amounts from 2023 to 2040. |
Reconciliation of ending and beginning unrecognized tax benefits | A reconciliation of the beginning and ending unrecognized tax benefits follows: 2018 2019 2020 Unrecognized tax benefits at beginning of year $ 9 $ 11 $ 11 Additions for tax positions provided in prior periods 5 1 2 Additions for tax positions provided in current period 1 1 — Decreases for tax positions provided in prior years (4 ) (2 ) (1 ) Settlements of tax positions in the current period — — (1 ) Unrecognized tax benefits at end of year $ 11 $ 11 $ 11 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments affecting statements of operations | The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings during each of the last three years: Classification in Statement of Operations 2018 2019 2020 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (54 ) $ 69 $ 61 Net gain (loss) reclassified from AOCI into earnings Sales (11 ) 6 23 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales (5 ) 6 4 Net gain (loss) recognized in earnings Other income (expense), net 9 6 (14 ) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a (41 ) 45 22 Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,201 4,276 4,306 Other income (expense), net 16 15 (11 ) |
Schedule of fair values of derivative instruments | The following table presents the fair values of our derivative instruments as of April 30, 2019 and 2020 : Balance Sheet Classification Derivative Assets Derivative Liabilities April 30, 2019 Designated as cash flow hedges: Currency derivatives Other current assets $ 21 $ (2 ) Currency derivatives Other assets 22 (1 ) Currency derivatives Accrued expenses — (5 ) Currency derivatives Other liabilities — (1 ) Not designated as hedges: Currency derivatives Accrued expenses — — April 30, 2020 Designated as cash flow hedges: Currency derivatives Other current assets 49 (1 ) Currency derivatives Other assets 30 — Currency derivatives Accrued expenses — — Currency derivatives Other liabilities — — Not designated as hedges: Currency derivatives Accrued expenses — (2 ) |
Offsetting Assets and Liabilities [Table Text Block] | The following table summarizes the gross and net amounts of our derivative contracts: 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, 2019 Derivative assets $ 43 $ (3 ) $ 40 $ — $ 40 Derivative liabilities (9 ) 3 (6 ) — (6 ) April 30, 2020 Derivative assets 79 (1 ) 78 — 78 Derivative liabilities (3 ) 1 (2 ) — (2 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
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: 2019 2020 April 30, Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 307 $ 307 $ 675 $ 675 Currency derivatives 40 40 78 78 Liabilities: Currency derivatives 6 6 2 2 Short-term borrowings 150 150 333 333 Long-term debt 2,290 2,399 2,269 2,486 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Leases [Abstract] | |
ROU Assets and Lease Liabilities [Table Text Block] | The following table shows the amounts and classification of ROU assets and lease liabilities on our balance sheet as of April 30, 2020: Classification April 30, Right-of-use assets Other assets $ 51 Lease liabilities: Current Accounts payable and accrued expenses $ 16 Non-current Other liabilities 37 Total $ 53 |
Lease Cost and Other Lease Information [Table Text Block] | The following table shows information about the effects of leases during 2020: 2020 Total lease cost 1 $ 29 Cash paid for amounts included in the measurement of lease liabilities 2 21 Right-of-use assets obtained in exchange for new lease liabilities 35 1 Consists primarily of operating lease cost. Other components of lease cost were not material. 2 Classified within operating activities in the accompanying consolidated statement of cash flows. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table includes a maturity analysis of future (undiscounted) operating lease payments and a reconciliation of those payments to the lease liabilities recorded on our balance sheet as of April 30, 2020: April 30, 2021 $ 17 2022 13 2023 9 2024 6 2025 3 Thereafter 9 Total lease payments 57 Less: Present value discount (4 ) Lease liabilities $ 53 Weighted-average discount rate 3.0% Weighted-average remaining term 5.2 years |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | April 30, 2021 $ 17 2022 13 2023 9 2024 6 2025 3 Thereafter 9 Total lease payments 57 Less: Present value discount (4 ) Lease liabilities $ 53 Weighted-average discount rate 3.0% Weighted-average remaining term 5.2 years Future operating lease payments, under the prior accounting standard (ASC 840), were as follows as of April 30, 2019: April 30, 2020 $ 23 2021 16 2022 10 2023 5 2024 3 Thereafter 2 Total lease payments $ 59 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | The following table presents the components of net other comprehensive income (loss) during each of the last three years: Pre-Tax Tax Net Year Ended April 30, 2018 Currency translation adjustments: Net gain (loss) on currency translation $ 12 $ 12 $ 24 Reclassification to earnings — — — Other comprehensive income (loss), net 12 12 24 Cash flow hedge adjustments: Net gain (loss) on hedging instruments (54 ) 18 (36 ) Reclassification to earnings 1 11 (3 ) 8 Other comprehensive income (loss), net (43 ) 15 (28 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 5 (2 ) 3 Reclassification to earnings 2 20 (7 ) 13 Other comprehensive income (loss), net 25 (9 ) 16 Total other comprehensive income (loss), net $ (6 ) $ 18 $ 12 Year Ended April 30, 2019 Currency translation adjustments: Net gain (loss) on currency translation $ (16 ) $ (11 ) $ (27 ) Reclassification to earnings — — — Other comprehensive income (loss), net (16 ) (11 ) (27 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 69 (16 ) 53 Reclassification to earnings 1 (6 ) 1 (5 ) Other comprehensive income (loss), net 63 (15 ) 48 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (41 ) 10 (31 ) Reclassification to earnings 2 33 (8 ) 25 Other comprehensive income (loss), net (8 ) 2 (6 ) Total other comprehensive income (loss), net $ 39 $ (24 ) $ 15 Year Ended April 30, 2020 Currency translation adjustments: Net gain (loss) on currency translation $ (88 ) $ (6 ) $ (94 ) Reclassification to earnings — — — Other comprehensive income (loss), net (88 ) (6 ) (94 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 61 (14 ) 47 Reclassification to earnings 1 (23 ) 6 (17 ) Other comprehensive income (loss), net 38 (8 ) 30 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (119 ) 28 (91 ) Reclassification to earnings 2 18 (4 ) 14 Other comprehensive income (loss), net (101 ) 24 (77 ) Total other comprehensive income (loss), net $ (151 ) $ 10 $ (141 ) 1 Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is classified as non-operating postretirement expense in the accompanying consolidated statements of operations. |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Apr. 30, 2020 | |
Segment Reporting [Abstract] | |
Net sales by geography | The following table presents net sales by geography: 2018 2019 2020 Net sales: United States $ 1,529 $ 1,563 $ 1,690 United Kingdom 206 199 180 Germany 146 159 171 Australia 163 164 155 Mexico 162 166 155 Other 1,042 1,073 1,012 $ 3,248 $ 3,324 $ 3,363 |
Allowance for Doubtful Accounts
Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Allowance for Doubtful Accounts [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 11 | $ 7 |
Accounting Policies (Textual) (
Accounting Policies (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Accounting Policies (Textual) [Abstract] | ||
Inventories valued using LIFO method (percent) | 51.00% | |
FIFO method value of inventory in excess of reported | $ 311 | $ 303 |
Minimum [Member] | ||
Accounting Policies (Textual) [Abstract] | ||
Whiskey aging period (years) | 3 years | |
Minimum [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 20 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 3 years | |
Minimum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 3 years | |
Maximum [Member] | ||
Accounting Policies (Textual) [Abstract] | ||
Whiskey aging period (years) | 6 years | |
Maximum [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 10 years | |
Maximum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 7 years |
Accounting Policies Revenue rec
Accounting Policies Revenue recognition policy (Details) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue recognition policy [Abstract] | ||
Revenue, Transaction Price Measurement, Tax Exclusion [true false] | true | true |
Accounting Policies Advertising
Accounting Policies Advertising expense policy (Details) | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Revenue recognition policy [Abstract] | ||
Advertising Cost, Expense Method [Fixed List] | Expensed first time advertising takes place | Expensed first time advertising takes place |
Accounting Policies Adoption of
Accounting Policies Adoption of updated accounting standards (Details) - USD ($) $ in Millions | May 01, 2019 | Apr. 30, 2020 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability | $ 53 | |
Operating Lease, Right-of-Use Asset | $ 51 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease, Liability | $ 54 | |
Operating Lease, Right-of-Use Asset | 54 | |
Accounting Standards Update 2018-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | $ 43 |
Balance Sheet Information (Deta
Balance Sheet Information (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Other current assets: | ||
Prepaid taxes | $ 195 | $ 191 |
Other | 140 | 92 |
Other current assets | 335 | 283 |
Property, plant, and equipment: | ||
Land | 82 | 82 |
Buildings | 652 | 617 |
Equipment | 814 | 769 |
Construction in process | 41 | 57 |
Property, plant and equipment, gross | 1,589 | 1,525 |
Less accumulated depreciation | 741 | 709 |
Property, plant, and equipment, net | 848 | 816 |
Accounts payable and accrued expenses: | ||
Accounts payable, trade | 131 | 150 |
Accrued expenses: | ||
Advertising and promotion | 135 | 160 |
Compensation and commissions | 71 | 84 |
Excise and other non-income taxes | 80 | 63 |
Other | 100 | 87 |
Accrued expenses | 386 | 394 |
Accounts payable and accrued expenses | 517 | 544 |
Accumulated other comprehensive income (loss), net of tax: | ||
Currency translation adjustments | (302) | (207) |
Cash flow hedge adjustments | 60 | 31 |
Postretirement benefits adjustments | (305) | (187) |
Accumulated other comprehensive income (loss), net of tax: | $ (547) | $ (363) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 827 | $ 835 | $ 717 |
Share data (in thousands): | |||
Basic average common shares outstanding (shares) | 477,765 | 478,956 | 480,319 |
Dilutive effect of stock-based awards (shares) | 2,644 | 3,111 | 3,929 |
Diluted average common shares outstanding (shares) | 480,409 | 482,067 | 484,248 |
Basic earnings per share (dollars per share) | $ 1.73 | $ 1.74 | $ 1.49 |
Diluted earnings per share (dollars per share) | $ 1.72 | $ 1.73 | $ 1.48 |
Antidilutive common stock-based awards excluded from calculation of diluted earnings per share (shares) | 301 | 447 | 805 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 753 | $ 763 |
Acquisition of business | 11 | |
Foreign currency translation adjustment | (8) | (10) |
Impairment | 0 | |
Ending balance | 756 | 753 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 645 | 670 |
Acquisition of business | 12 | |
Foreign currency translation adjustment | (9) | (25) |
Impairment | (13) | |
Ending balance | $ 635 | $ 645 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 13 | ||
Intangible Assets, Net (Excluding Goodwill) | 635 | $ 645 | $ 670 |
Chambord [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 104 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2020USD ($) | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Total purchase obligation, 2021 | $ 11 |
Total purchase obligation, 2022 | 6 |
Total purchase obligation, 2023 | $ 3 |
Agave [Member] | |
Commitments (Textual) [Abstract] | |
Agave purchase contract, period (years) | 10 years |
Total obligations | $ 29 |
Commitments and Contingencies_2
Commitments and Contingencies Contingencies (Details) £ in Millions | 12 Months Ended |
Apr. 30, 2020GBP (£) | |
Loss Contingencies [Line Items] | |
Loss Contingency, Amount Sought by Counterparty | £ 49 |
Loss Contingency, Amount Withheld by Counterparty | £ 34 |
Commitments and Contingencies G
Commitments and Contingencies Guaranty (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Concentration Risk [Line Items] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 570 | $ 609 |
Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 9 | |
Guarantee Obligations Current Exposure | 5 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 8 |
Debt and Credit Facilities (Sch
Debt and Credit Facilities (Schedule of Long-Term Debt) (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Apr. 30, 2020EUR (€) | Apr. 30, 2019EUR (€) | Apr. 30, 2020GBP (£) | Apr. 30, 2020USD ($) | Apr. 30, 2019GBP (£) | Apr. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||
Total long term debt | $ 2,269 | $ 2,290 | ||||
Total Long term debt excluding current portion | 2,269 | 2,290 | ||||
2.25% senior 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% |
Total long term debt | $ 249 | $ 249 | ||||
3.50% senior notes, due April 15, 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | $ 300 | ||||
Debt Instrument, Maturity Date | Apr. 15, 2025 | Apr. 15, 2025 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
Total long term debt | $ 297 | $ 297 | ||||
1.20% senior notes, due July 7, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | € | € 300 | € 300 | ||||
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% |
Total long term debt | $ 324 | $ 333 | ||||
2.60% senior notes, due July 7, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | £ | £ 300 | £ 300 | ||||
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% |
Total long term debt | $ 369 | $ 383 | ||||
4.00% senior notes, due April 15, 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | $ 300 | ||||
Debt Instrument, Maturity Date | Apr. 15, 2038 | Apr. 15, 2038 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
Total long term debt | $ 294 | $ 293 | ||||
3.75% senior 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% |
Total long term debt | $ 248 | $ 248 | ||||
4.50% senior notes, due July 15, 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 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% |
Total long term debt | $ 488 | $ 487 |
Debt and Credit Facilities (Tex
Debt and Credit Facilities (Textual) (Details) $ in Millions | Apr. 30, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 0 |
2022 | 0 |
2023 | 250 |
2024 | 0 |
2025 | 300 |
After 2025 | $ 1,749 |
Debt and Credit Facilities Shor
Debt and Credit Facilities Short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Short-term Debt [Abstract] | ||
Commercial Paper | $ 333 | $ 150 |
Commercial Paper, Weighted Average Interest Rate, at Point in Time | 1.29% | 2.60% |
Commercial Paper Borrowings, Average Remaining Maturity | 73 days | 18 days |
Debt and Credit Facilities Cred
Debt and Credit Facilities Credit Facilities (Details) | Apr. 30, 2020USD ($) |
Eight Hundred Million Credit Facility Expiring November 2022 [Member] | |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 800,000,000 |
Common Stock Rollforward of Out
Common Stock Rollforward of Outstanding Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Class of Stock [Line Items] | |||
Beginning balance | 477,172 | 481,001 | 480,106 |
Acquisition of treasury stock | (16) | (4,357) | (31) |
Stock issued under compensation plans | 1,053 | 528 | 926 |
Ending balance | 478,209 | 477,172 | 481,001 |
Common stock, Class A, voting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 168,999 | 169,062 | 169,051 |
Acquisition of treasury stock | (13) | (145) | (25) |
Stock issued under compensation plans | 54 | 82 | 36 |
Ending balance | 169,040 | 168,999 | 169,062 |
Common Stock, Class B, nonvoting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 308,173 | 311,939 | 311,055 |
Acquisition of treasury stock | (3) | (4,212) | (6) |
Stock issued under compensation plans | 999 | 446 | 890 |
Ending balance | 309,169 | 308,173 | 311,939 |
Net Sales by Geography (Details
Net Sales by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,363 | $ 3,324 | $ 3,248 | |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,690 | 1,563 | 1,529 | |
Developed International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 901 | 917 | 908 |
Emerging [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 572 | 597 | 575 |
Travel Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 125 | 140 | 139 |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | $ 75 | $ 107 | $ 97 |
[1] | Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are the United Kingdom, Germany, Australia, France, Japan, and Canada. | |||
[2] | Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, and Russia. | |||
[3] | Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. | |||
[4] | Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. |
Net Sales by Product Category (
Net Sales by Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,363 | $ 3,324 | $ 3,248 | |
Whiskey [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 2,671 | 2,595 | 2,533 |
Tequila [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 275 | 263 | 247 |
Vodka [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 186 | 187 | 187 |
Wine [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | 109 | 126 | 130 |
Rest of portfolio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 47 | 46 | 54 | |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [5] | $ 75 | $ 107 | $ 97 |
[1] | Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, Woodford Reserve, Canadian Mist, GlenDronach, BenRiach, Glenglassaugh, Old Forester, Early Times, Slane Irish Whiskey, and Coopers' Craft. | |||
[2] | Includes el Jimador, Herradura, New Mix, Pepe Lopez, and Antiguo. | |||
[3] | Includes Finlandia. | |||
[4] | Includes Korbel Champagne and Sonoma-Cutrer wines. | |||
[5] | Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Pension Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | $ 908 | $ 903 | |
Service cost | 24 | 24 | $ 24 |
Interest cost | 31 | 34 | 29 |
Net actuarial loss (gain) | 108 | 28 | |
Retiree contributions | 0 | 0 | |
Benefits paid | (66) | (81) | |
Obligation at end of year | 1,005 | 908 | 903 |
Medical and Life Insurance Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | 50 | 50 | |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 2 | 1 |
Net actuarial loss (gain) | 2 | 0 | |
Retiree contributions | 1 | 1 | |
Benefits paid | (4) | (4) | |
Obligation at end of year | $ 51 | $ 50 | $ 50 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Apr. 30, 2020USD ($) |
Pension Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2021 | $ 62 |
2022 | 62 |
2023 | 62 |
2024 | 63 |
2025 | 63 |
2026 – 2030 | 425 |
Medical and Life Insurance Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2021 | 3 |
2022 | 3 |
2023 | 3 |
2024 | 3 |
2025 | 3 |
2026 – 2030 | $ 16 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits Target asset allocation (Details) | Apr. 30, 2020 |
Public Equity Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 40.00% |
Fixed Income Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 47.00% |
Alternative Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 13.00% |
Pension and Other Postretirem_6
Pension and Other Postretirement Benefits (Fair Value of Pension Plan Assets and Asset Allocations) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | $ 749 | $ 754 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 80 | 108 | ||
Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 2 | 3 | $ 4 | |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 82 | 111 | ||
Equity Securities [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 80 | 79 | ||
Equity Securities [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Equity Securities [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Equity Securities [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 80 | 79 | ||
Cash And Temporary Investments [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 29 | ||
Cash And Temporary Investments [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Cash And Temporary Investments [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Cash And Temporary Investments [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 29 | ||
Limited Partnership Interests [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 0 | 0 | |
Limited Partnership Interests [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 0 | 0 | |
Limited Partnership Interests [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 2 | 3 | |
Limited Partnership Interests [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 2 | 3 | |
Limited Partnership Interests [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [2] | 32 | 27 | |
Equity Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 193 | 157 | |
Fixed Income Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 370 | 370 | |
Real Estate funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 68 | 66 | |
Short-term Investments [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | $ 4 | $ 23 | |
[1] | This limited partnership interest was initially valued at cost and has been adjusted to fair value as determined in good faith by management of the partnership using various factors, and does not meet the requirements for reporting at the net asset value (NAV). The valuation requires significant judgment due to the absence of quoted market prices and the inherent lack of liquidity. This limited partnership has a term expiring in September 2020, although this period may be extended. | |||
[2] | These limited partnership interests were initially valued at cost and have been adjusted using NAV per audited financial statements. Investments are generally not eligible for immediate redemption and have original terms averaging 10 to 13 years, although those periods may be extended. | |||
[3] | Commingled trust fund valuations are based on the NAV of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. Generally, for commingled trust funds other than real estate, redemptions are permitted daily with no notice period. The real estate fund is redeemable quarterly with 110 days’ notice. |
Pension and Other Postretirem_7
Pension and Other Postretirement Benefits (Change in Fair Value of Level 3 Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Change in fair value of Level 3 Assets | ||
Beginning balance | $ 754 | |
Ending balance | 749 | $ 754 |
Level 3 [Member] | ||
Change in fair value of Level 3 Assets | ||
Beginning balance | 3 | 4 |
Sales and settlements | (1) | (1) |
Ending balance | $ 2 | $ 3 |
Pension and Other Postretirem_8
Pension and Other Postretirement Benefits (Change in Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Change in fair value of pension plan Assets | ||
Beginning balance | $ 754 | |
Ending balance | 749 | $ 754 |
Pension Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 754 | 780 |
Actual return on assets | 39 | 34 |
Retiree contributions | 0 | 0 |
Company contributions | 22 | 21 |
Benefits paid | (66) | (81) |
Ending balance | 749 | 754 |
Medical and Life Insurance Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 0 | 0 |
Actual return on assets | 0 | 0 |
Retiree contributions | 1 | 1 |
Company contributions | 3 | 3 |
Benefits paid | (4) | (4) |
Ending balance | $ 0 | $ 0 |
Pension and Other Postretirem_9
Pension and Other Postretirement Benefits (Funded Status of Plans) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Funded Status of Plans | |||
Assets | $ 749 | $ 754 | |
Pension Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 749 | 754 | $ 780 |
Obligations | (1,005) | (908) | (903) |
Funded status | (256) | (154) | |
Medical and Life Insurance Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 0 | 0 | 0 |
Obligations | (51) | (50) | $ (50) |
Funded status | $ (51) | $ (50) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits (Funded Status Recorded on Accompanying Balance Sheets) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accrued postretirement benefits | $ (297) | $ (197) |
Pension Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Other assets | 0 | 2 |
Accounts payable and accrued expenses | (7) | (6) |
Accrued postretirement benefits | (249) | (150) |
Net liability | (256) | (154) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (394) | (298) |
Prior service credit (cost) | (6) | (8) |
Total | (400) | (306) |
Medical and Life Insurance Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Other assets | 0 | 0 |
Accounts payable and accrued expenses | (3) | (3) |
Accrued postretirement benefits | (48) | (47) |
Net liability | (51) | (50) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (11) | (10) |
Prior service credit (cost) | 7 | 10 |
Total | $ (4) | $ 0 |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits Pension plans whose assets (obligations) exceed obligations (assets) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total, Plan Assets | $ 749 | $ 754 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plans with assets in excess of accumulated benefit obligation, Plan Assets | 625 | 754 | |
Plans with accumulated benefit obligation in excess of assets, Plan Assets | 124 | 0 | |
Total, Plan Assets | 749 | 754 | $ 780 |
Plans with assets in excess of accumulated benefit obligation, Accumulated Benefit Obligation | 613 | 668 | |
Plans with accumulated benefit obligation in excess of assets, Accumulated Benefit Obligation | 277 | 136 | |
Total, Accumulated Benefit Obligation | 890 | 804 | |
Plans with assets in excess of accumulated benefit obligation, Projected Benefit Obligation | 698 | 752 | |
Plans with accumulated benefit obligation in excess of assets, Projected Benefit Obligation | 307 | 156 | |
Total, Projected Benefit Obligation | $ 1,005 | $ 908 | $ 903 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits (Schedule of Components of Pension Expense) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Pension Expense | |||
Service cost | $ 24 | $ 24 | $ 24 |
Interest cost | 31 | 34 | 29 |
Expected return on assets | (46) | (47) | (41) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Amortization of net actuarial loss (gain) | 19 | 19 | 21 |
Settlement charge | 1 | 15 | 0 |
Net cost | $ 30 | $ 46 | $ 34 |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits (Schedule of Components of Other Postretirement Benefit Expense) (Details) - Medical and Life Insurance Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Postretirement medical and life insurance benefit expense | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 1 | 2 | 1 |
Amortization of prior service cost (credit) | (3) | (3) | (3) |
Amortization of net actuarial loss (gain) | 1 | 1 | 1 |
Net cost | $ 0 | $ 1 | $ 0 |
Pension and Other Postretire_14
Pension and Other Postretirement Benefits (Changes in Funded Status of Benefit Plans Recognized in Other Comprehensive (Income) Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Pension Benefits [Member] | |||
Amounts recognized in OCI | |||
Prior service credit (cost) | $ 0 | $ 0 | $ (6) |
Net actuarial gain (loss) | (115) | (41) | 10 |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | 1 | 1 | 1 |
Net actuarial loss (gain) | 20 | 34 | 21 |
Net amount recognized in OCI | (94) | (6) | 26 |
Medical and Life Insurance Benefits [Member] | |||
Amounts recognized in OCI | |||
Prior service credit (cost) | 0 | 0 | 0 |
Net actuarial gain (loss) | (2) | 0 | 1 |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | (3) | (3) | (3) |
Net actuarial loss (gain) | 1 | 1 | 1 |
Net amount recognized in OCI | $ (4) | $ (2) | $ (1) |
Pension and Other Postretire_15
Pension and Other Postretirement Benefits (Assumptions and SensItivity) (Details) | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Pension Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 3.28% | 4.04% | |
Rate of salary increase (percent) | 4.00% | 4.00% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 4.17% | 4.30% | 4.29% |
Discount rate for interest cost (percent) | 3.57% | 3.93% | 3.40% |
Rate of salary increase (percent) | 4.00% | 4.00% | 4.00% |
Expected return on plan assets (percent) | 6.50% | 6.50% | 6.75% |
Medical and Life Insurance Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 3.17% | 3.98% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 4.24% | 4.34% | 4.39% |
Discount rate for interest cost (percent) | 3.53% | 3.90% | 3.35% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next year (percent) | 6.90% | 7.30% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (percent) | 5.00% | 5.00% |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits Sponsor Location (Details) | Apr. 30, 2020 | Apr. 30, 2019 |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Sponsor Location [Extensible List] | country:US | country:US |
Other Postretirement Benefits Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Sponsor Location [Extensible List] | country:US | country:US |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits (Textual) (Details) $ in Millions | Apr. 30, 2020USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2021 | $ 22 |
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive loss into pension expense in 2021 | (1) |
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive loss into pension expense in 2021 | 27 |
Medical and Life Insurance Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2021 | 3 |
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive loss into pension expense in 2021 | 3 |
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive loss into pension expense in 2021 | $ 1 |
Pension and Other Postretire_18
Pension and Other Postretirement Benefits (Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Retirement Benefits [Abstract] | |||
Expense for matching contributions | $ 12 | $ 12 | $ 12 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) shares in Thousands | Apr. 30, 2020shares |
Share-based Payment Arrangement [Abstract] | |
Shares authorized under 2013 Omnibus Compensation Plan (shares) | 20,750 |
Share remaining available for issuance under 2013 Omnibus Compensation Plan (shares) | 13,514 |
Stock-Based Compensation SSARs
Stock-Based Compensation SSARs (Details) - Stock Appreciation Rights (SARs) [Member] $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Apr. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SSARs outstanding, beginning balance (shares) | shares | 6,852 |
SSARs granted (shares) | shares | 522 |
SSARs exercised (shares) | shares | (2,434) |
SSARs forfeited or expired (shares) | shares | (10) |
SSARs outstanding, ending balance (shares) | shares | 4,930 |
SSARs exercisable (shares) | shares | 2,932 |
Weighted Average Fair Value at Grant Date [Roll Forward] | |
Weighted average exercise price, beginning (dollars per share) | $ / shares | $ 33.25 |
Weighted average exercise price, grants in period (dollars per share) | $ / shares | 54.64 |
Weighted average exercise price, exercises in period (dollars per share) | $ / shares | 27.77 |
Weighted average exercise price, forfeitures and expirations in period (dollars per share) | $ / shares | 49.70 |
Weighted average exercise price, ending (dollars per share) | $ / shares | 38.19 |
Weighted average exercise price, exercisable (dollars per share) | $ / shares | $ 31.86 |
SSARs outstanding, Weighted Average Remaining Contractual Term (years) | 5 years 1 month 6 days |
SSARs exercisable, Weighted Average Remaining Contractual Term (years) | 3 years 8 months 12 days |
SSARs outstanding, Aggregate Intrinsic Value | $ | $ 118 |
SSARs exercisable, Aggregate Intrinsic Value | $ | $ 89 |
Stock-Based Compensation SSAR_2
Stock-Based Compensation SSARs Fair Value Assumptions (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Grant-date fair value | $ 11.13 | $ 11.06 | $ 6.79 |
Expected term (years) | 7 years | 7 years | 7 years |
Risk-free interest rate | 1.90% | 2.90% | 2.20% |
Expected volatility | 19.30% | 17.10% | 15.60% |
Expected dividend yield | 1.20% | 1.40% | 1.50% |
Stock-Based Compensation RSUs (
Stock-Based Compensation RSUs (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Grant Date Fair Value | $ 52.44 | $ 44.91 | |
Number of Underlying Shares [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 289 | 382 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Granted | 88 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Other | (179) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Conversion to Common Shares, Weighted Average Grant Date Fair Value | $ 38.56 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures and Expirations | (2) | ||
Weighted Average Fair Value at Grant Date [Roll Forward] | |||
Weighted Average Fair Value at Grant Date, Granted (dollars per share) | $ 56.99 | $ 55.29 | $ 46.93 |
Weighted Average Fair Value at Grant Date, Forfeited (dollars per share) | $ 55.27 |
Stock-Based Compensation Weight
Stock-Based Compensation Weighted-Average Grant-Date Fair Values by Year (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted Average Fair Value at Grant Date, Granted (dollars per share) | $ 56.99 | $ 55.29 | $ 46.93 |
Risk-free interest rate | 1.80% | 2.70% | 1.50% |
Expected volatility | 21.80% | 20.80% | 18.90% |
Expected dividend yield | 1.20% | 1.20% | 1.40% |
Remaining performance period (years) as of grant date | 2 years 9 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
Stock-Based Compensation DSUs (
Stock-Based Compensation DSUs (Details) - Deferred Stock Units (DSUs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 246,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 215,000 | ||
Grant-date fair value | $ 53.34 | $ 54.20 | $ 41.81 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 11 | $ 14 | $ 19 | |
Deferred tax benefit | 2 | 2 | 6 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 7 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |||
Intrinsic value of SSARs exercised | $ 89 | 31 | 73 | |
Fair value of shares vested | [1] | 14 | 20 | 6 |
Excess tax benefit from exercise / vesting of awards | 20 | $ 7 | $ 18 | |
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Fair value of shares vested | $ 10 | |||
[1] | The fair value of shares vested in fiscal 2019 includes $10 related to a one-time performance-based special grant of restricted stock issued in fiscal 2014 to our Chief Executive Officer (who retired in fiscal 2019). During the performance period, dividends accrued and the award was adjusted for all applicable stock splits during the vesting period, subject to the same performance measures as the initial grant. The resulting shares vested on June 1, 2018. |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income from U.S. and Foreign Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Domestic and Foreign components of our Income before Income taxes | |||
United States | $ 849 | $ 863 | $ 747 |
Foreign | 160 | 179 | 230 |
Income before income taxes | $ 1,009 | $ 1,042 | $ 977 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Current: | |||
U.S. federal | $ 95 | $ 107 | $ 265 |
Foreign | 29 | 34 | 47 |
State and local | 19 | 28 | 17 |
Current income tax expense | 143 | 169 | 329 |
Deferred: | |||
U.S. federal | 34 | 37 | (48) |
Foreign | 7 | 4 | (13) |
State and local | (2) | (3) | (8) |
Deferred income taxes expense | 39 | 38 | (69) |
Total income tax expense | $ 182 | $ 207 | $ 260 |
Income Taxes (Tax Act) (Details
Income Taxes (Tax Act) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Tax Act [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 30.40% | 35.00% |
Income Tax Benefit from Reduction in Federal Statutory Income Tax Rate | $ 115 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Provisional Income Tax Expense (Benefit) | $ 43 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Transition Tax for Accumulated Foreign Earnings, Provisional Income Tax Expense | 91 | |||
Tax Cuts and Jobs Act, Incomplete Accounting, Change in Tax Rate, Provisional Income Tax Expense (Benefit) | $ (48) | |||
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | 4 | |||
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | $ 11 | $ 12 |
Income Taxes (Earnings of Forei
Income Taxes (Earnings of Foreign Subsidiaries) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 1,279 | $ 1,266 |
Foreign Earnings Repatriated | 15 | $ 120 |
Effective Income Tax Rate Reconciliation, Repatriation of Foreign Earnings, Amount | $ 1 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Reconciles our effective tax rate to the federal statutory tax rate in the United States | ||||
U.S. federal statutory rate | 21.00% | 21.00% | 30.40% | 35.00% |
State taxes, net of U.S. federal tax benefit | 1.70% | 2.10% | 0.80% | |
Income taxed at other than U.S. federal statutory rate | 0.00% | (0.10%) | (3.40%) | |
Tax benefit from foreign-derived sales | (2.00%) | (1.70%) | 0.00% | |
Adjustments related to prior years | (1.10%) | (1.20%) | (0.90%) | |
Tax benefit from U.S. manufacturing | 0.00% | 0.00% | (2.50%) | |
Amortization of deferred tax benefit from intercompany transactions | 0.00% | 0.00% | (1.60%) | |
Excess tax benefits from stock-based awards | (2.00%) | (0.70%) | (1.80%) | |
Impact of Tax Act | 0.00% | (0.40%) | 2.50% | |
Other, net | 0.40% | 0.80% | 3.10% | |
Effective rate | 18.00% | 19.80% | 26.60% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Deferred tax assets: | ||
Postretirement and other benefits | $ 110 | $ 87 |
Accrued liabilities and other | 23 | 23 |
Inventories | 26 | 34 |
Lease liabilities | 14 | 0 |
Loss and credit carryforwards | 57 | 55 |
Valuation allowance | (22) | (25) |
Total deferred tax assets, net | 208 | 174 |
Deferred tax liabilities: | ||
Intangible assets | (233) | (218) |
Property, plant, and equipment | (90) | (73) |
Right-of-use assets | (13) | 0 |
Derivative instruments | (18) | (9) |
Other | (16) | (3) |
Total deferred tax liabilities | (370) | (303) |
Net deferred tax liability | $ (162) | $ (129) |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 | ||
Operating Loss Carryforwards [Line Items] | ||||
Loss Carryforwards, Other | $ 50 | [1] | $ 54 | |
Deferred Tax Assets, Other Loss Carryforwards | 9 | 9 | ||
Other Loss Carryforwards, Valuation Allowance | (7) | (6) | ||
Loss Carryforwards | 289 | 296 | ||
Deferred Tax Assets, Loss and Credit Carryforwards | 57 | 55 | ||
Valuation Allowance | (22) | (25) | ||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss and Credit Carryforwards | 63 | 68 | ||
Deferred Tax Assets, Operating Loss and Credit Carryforwards | 9 | [2] | 6 | |
Operating Loss and Credit Carryforwards, Valuation Allowance | 0 | 0 | ||
Not Subject to Expiration [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss and Credit Carryforwards | [2] | 3 | ||
Loss Carryforwards, Other | 24 | |||
Not Subject to Expiration [Member] | Foreign Tax Authority [Member] | Brazil [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 31 | 42 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 10 | 14 | ||
Operating Loss Carryforwards, Valuation Allowance | (10) | (14) | ||
Not Subject to Expiration [Member] | Foreign Tax Authority [Member] | United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Non-trading Loss Carryforwards | 26 | 27 | ||
Deferred Tax Assets, Non-Trading Loss Carryforwards | 5 | 5 | ||
Non-trading Loss Carryforwards, Valuation Allowance | (5) | (5) | ||
Subject to Expiration [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss and Credit Carryforwards | [2] | 6 | ||
Loss Carryforwards, Other | 26 | |||
Subject to Expiration [Member] | Foreign Tax Authority [Member] | FINLAND | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 119 | 105 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 24 | 21 | ||
Operating Loss Carryforwards, Valuation Allowance | $ 0 | $ 0 | ||
[1] | As of April 30, 2020, the gross amount includes loss carryforwards of $24 that do not expire and $26 that expire in varying amounts over the next 20 years. | |||
[2] | As of April 30, 2020, the net deferred tax asset amount includes credit carryforwards of $3 that do not expire and loss and credit carryforwards of $6 that expire in varying amounts from 2023 to 2040. |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 11 | $ 11 | $ 9 |
Additions for tax positions provided in prior periods | 2 | 1 | 5 |
Additions for tax positions provided in current period | 0 | 1 | 1 |
Decreases for tax positions provided in prior years | (1) | (2) | (4) |
Settlements of tax positions in the current period | (1) | 0 | 0 |
Unrecognized tax benefits at end of year | 11 | $ 11 | $ 11 |
Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 9 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0 |
Acquisition of Business (Detail
Acquisition of Business (Details) - USD ($) $ in Millions | Jul. 03, 2019 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Business Acquisition [Line Items] | ||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | |||
Goodwill | $ 756 | $ 753 | $ 763 | |
The 86 Company [Member] | ||||
Business Acquisition [Line Items] | ||||
Payments to Acquire Businesses, Gross | $ 22 | |||
Goodwill | 11 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 12 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 1 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Gain (Loss) on Derivatives Recognized in Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract] | |||
Sales | $ 4,306 | $ 4,276 | $ 4,201 |
Other income (expense), net | (11) | 15 | 16 |
Foreign Currency Denominated Debt [Member] | |||
Foreign currency-denominated debt designated as net investment hedge: [Abstract] | |||
Net gain (loss) recognized in AOCI | 22 | 45 | (41) |
Currency derivatives [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) recognized in AOCI | 61 | 69 | (54) |
Currency derivatives [Member] | Sales [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) reclassified from AOCI into earnings | 23 | 6 | (11) |
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | 4 | 6 | (5) |
Currency derivatives [Member] | Other Income (Expense), Net [Member] | |||
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | $ (14) | $ 6 | $ 9 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Fair Value of Derivatives in a Gain (Loss) Position) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | $ 79 | $ 43 |
Derivative Liability, Fair Value, Gross Liability | (3) | (9) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 49 | 21 |
Derivative Liability, Fair Value, Gross Liability | (1) | (2) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 30 | 22 |
Derivative Liability, Fair Value, Gross Liability | 0 | (1) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | (5) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | (1) |
Currency derivatives [Member] | Not designated as hedges [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $ (2) | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2019 | |
Derivative Instruments and Hedging Activities [Line Items] | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 36 months | 36 months |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 47 | |
Derivative, Net Liability Position, Aggregate Fair Value | 2 | $ 6 |
Foreign Exchange Contract [Member] | ||
Derivative Instruments and Hedging Activities [Line Items] | ||
Derivative, Notional Amount | 1,026 | 1,241 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments and Hedging Activities [Line Items] | ||
Debt Instrument, Face Amount | $ 613 | $ 635 |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 79 | $ 43 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (1) | (3) |
Net Amount of Derivative Assets Presented in Balance Sheet | 78 | 40 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | 0 | 0 |
Net Amount of Derivative Assets | 78 | 40 |
Gross Amount of Derivative Liabilities | (3) | (9) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 1 | 3 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | (2) | (6) |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 0 | 0 |
Net Amount of Derivative Liabilities | $ (2) | $ (6) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 |
Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 675 | $ 307 | $ 239 | $ 182 |
Cash and cash equivalents, Fair Value | 675 | 307 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 333 | 150 | ||
Short-term borrowings, Fair Value | 333 | 150 | ||
Long-term debt, Carrying Amount | 2,269 | 2,290 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Currency derivatives, Fair Value | 78 | 40 | ||
Liabilities: | ||||
Currency derivatives, Fair Value | 2 | 6 | ||
Long-term debt, Fair Value | 2,486 | 2,399 | ||
Foreign Exchange Contract [Member] | ||||
Assets: | ||||
Currency derivatives, Carrying Amount | 78 | 40 | ||
Liabilities: | ||||
Currency derivatives, Carrying Amount | $ 2 | $ 6 |
Leases ROU Assets and Liabiliti
Leases ROU Assets and Liabilities (Details) $ in Millions | Apr. 30, 2020USD ($) |
Leases [Abstract] | |
Right-of-use assets | $ 51 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Lease Liabilities: | |
Current | $ 16 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent |
Non-current | $ 37 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Total | $ 53 |
Leases Lease Cost and Other Inf
Leases Lease Cost and Other Information (Details) $ in Millions | 12 Months Ended | |
Apr. 30, 2020USD ($) | ||
Leases [Abstract] | ||
Total lease cost | $ 29 | [1] |
Cash paid for amounts included in the measurement of lease liabilities | 21 | [2] |
Right-of-use assets obtained in exchange for new lease liabilities | $ 35 | |
[1] | Consists primarily of operating lease cost. Other components of lease cost were not material. | |
[2] | Classified within operating activities in the accompanying consolidated statement of cash flows. |
Leases Future Operating Lease P
Leases Future Operating Lease Payments (Details) $ in Millions | Apr. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 17 |
2022 | 13 |
2023 | 9 |
2024 | 6 |
2025 | 3 |
Thereafter | 9 |
Total lease payments | 57 |
Less: Present value discount | (4) |
Lease liabilities | $ 53 |
Weighted-average discount rate | 3.00% |
Weighted-average remaining term | 5 years 2 months 12 days |
Leases Future Operating Lease_2
Leases Future Operating Lease Payments Under ASC 840 (Details) $ in Millions | Apr. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 23 |
2021 | 16 |
2022 | 10 |
2023 | 5 |
2024 | 3 |
Thereafter | 2 |
Total lease payments | $ 59 |
Leases Rent Expense for Operati
Leases Rent Expense for Operating Leases Under ASC 840 (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Leases [Abstract] | ||
Operating Leases, Rent Expense | $ 28 | $ 26 |
Other Comprehensive Income Sche
Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
Before Tax: | ||||
Net other comprehensive income (loss) | $ (151) | $ 39 | $ (6) | |
Tax Effect: | ||||
Net other comprehensive income (loss) | 10 | (24) | 18 | |
Net of Tax: | ||||
Net other comprehensive income (loss) | (141) | 15 | 12 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | (88) | (16) | 12 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (88) | (16) | 12 | |
Tax Effect: | ||||
Net gain (loss) | (6) | (11) | 12 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (6) | (11) | 12 | |
Net of Tax: | ||||
Net gain (loss) | (94) | (27) | 24 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | (94) | (27) | 24 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 61 | 69 | (54) | |
Reclassification to earnings | [1] | (23) | (6) | 11 |
Net other comprehensive income (loss) | 38 | 63 | (43) | |
Tax Effect: | ||||
Net gain (loss) | (14) | (16) | 18 | |
Reclassification to earnings | [1] | 6 | 1 | (3) |
Net other comprehensive income (loss) | (8) | (15) | 15 | |
Net of Tax: | ||||
Net gain (loss) | 47 | 53 | (36) | |
Reclassification to earnings | [1] | (17) | (5) | 8 |
Net other comprehensive income (loss) | 30 | 48 | (28) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | (119) | (41) | 5 | |
Reclassification to earnings | [2] | 18 | 33 | 20 |
Net other comprehensive income (loss) | (101) | (8) | 25 | |
Tax Effect: | ||||
Net gain (loss) | 28 | 10 | (2) | |
Reclassification to earnings | [2] | (4) | (8) | (7) |
Net other comprehensive income (loss) | 24 | 2 | (9) | |
Net of Tax: | ||||
Net gain (loss) | (91) | (31) | 3 | |
Reclassification to earnings | [2] | 14 | 25 | 13 |
Net other comprehensive income (loss) | $ (77) | $ (6) | $ 16 | |
[1] | Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. | |||
[2] | Pre-tax amount is classified as non-operating postretirement expense in the accompanying consolidated statements of operations. |
Supplemental Information (Net S
Supplemental Information (Net Sales by Geography) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | |
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 3,363 | $ 3,324 | $ 3,248 |
United States | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 1,690 | 1,563 | 1,529 |
United Kingdom | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 180 | 199 | 206 |
Germany | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 171 | 159 | 146 |
Australia | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 155 | 164 | 163 |
Mexico | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 155 | 166 | 162 |
Other Countries | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 1,012 | $ 1,073 | $ 1,042 |
Supplemental Information Major
Supplemental Information Major Customers (Details) - Revenue from Contract with Customer, Product and Service Benchmark [Member] | 12 Months Ended |
Apr. 30, 2020 | |
Largest Customer [Member] | |
Percentage of Net Sales from Major Customers [Abstract] | |
Concentration Risk, Percentage | 18.00% |
Second Largest Customer [Member] | |
Percentage of Net Sales from Major Customers [Abstract] | |
Concentration Risk, Percentage | 13.00% |
Supplemental Information (PP&E)
Supplemental Information (PP&E) (Details) - USD ($) $ in Millions | Apr. 30, 2020 | Apr. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 848 | $ 816 |
Non-US [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 105 | $ 107 |
Subsequent Event Subsequent Eve
Subsequent Event Subsequent Event (Details) | Jun. 12, 2020 |
Subsequent Event [Member] | |
Subsequent Event [Line Items] | |
Assets Expected To Be Sold, As a Percentage of Total Assets | 1.00% |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 | ||
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | $ 7 | $ 7 | $ 7 | |
Additions Charged to Costs and Expenses | 4 | 1 | 0 | |
Additions Charged to Other Accounts | 0 | 0 | 0 | |
Deductions | 0 | 1 | [1] | 0 |
Balance at End of Period | 11 | 7 | 7 | |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | ||||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Balance at Beginning of Period | 25 | 29 | 30 | |
Additions Charged to Costs and Expenses | 2 | 1 | 3 | |
Additions Charged to Other Accounts | 0 | 1 | 1 | |
Deductions | 5 | 6 | 5 | |
Balance at End of Period | $ 22 | $ 25 | $ 29 | |
[1] | Doubtful accounts written off, net of recoveries. |
Uncategorized Items - bfb-20204
Label | Element | Value |
AOCI Attributable to Parent [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | us-gaap_TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ (43,000,000) |
Retained Earnings [Member] | ||
Tax Cuts and Jobs Act, Reclassification from AOCI to Retained Earnings, Tax Effect | us-gaap_TaxCutsAndJobsActOf2017ReclassificationFromAociToRetainedEarningsTaxEffect | $ 43,000,000 |