Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2021 | May 31, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Apr. 30, 2021 | |
Current Fiscal Year End Date | --04-30 | |
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 | |
ICFR Auditor Attestation Flag | true | |
Entity Public Float | $ 23,400 | |
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 22, 2021, are incorporated by reference into Part III of this report. | |
Entity Central Index Key | 0000014693 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | FY | |
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 | 169,109,992 | |
Common Stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock (nonvoting), $0.15 par value | |
Trading Symbol | BFB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 309,648,089 | |
1.20% senior notes, due July 7, 2026 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.200% Notes due 2026 | |
Trading Symbol | BF26 | |
Security Exchange Name | NYSE | |
2.60% senior notes, due July 7, 2028 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.600% Notes due 2028 | |
Trading Symbol | BF28 | |
Security Exchange Name | NYSE |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Statement [Abstract] | |||
Sales | $ 4,526 | $ 4,306 | $ 4,276 |
Excise taxes | 1,065 | 943 | 952 |
Net sales | 3,461 | 3,363 | 3,324 |
Cost of sales | 1,367 | 1,236 | 1,158 |
Gross profit | 2,094 | 2,127 | 2,166 |
Advertising expenses | 399 | 383 | 396 |
Selling, general, and administrative expenses | 671 | 642 | 641 |
Gain on sale of business | (127) | 0 | 0 |
Other expense (income), net | (15) | 11 | (15) |
Operating income | 1,166 | 1,091 | 1,144 |
Non-operating postretirement expense | 6 | 5 | 22 |
Interest income | (2) | (5) | (8) |
Interest expense | 81 | 82 | 88 |
Income before income taxes | 1,081 | 1,009 | 1,042 |
Income taxes | 178 | 182 | 207 |
Net income | $ 903 | $ 827 | $ 835 |
Earnings per share: | |||
Basic (dollars per share) | $ 1.89 | $ 1.73 | $ 1.74 |
Diluted (dollars per share) | $ 1.88 | $ 1.72 | $ 1.73 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 903 | $ 827 | $ 835 |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments | 123 | (94) | (27) |
Cash flow hedge adjustments | (76) | 30 | 48 |
Postretirement benefits adjustments | 78 | (77) | (6) |
Net other comprehensive income (loss) | 125 | (141) | 15 |
Comprehensive income | $ 1,028 | $ 686 | $ 850 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
ASSETS | ||
Cash and cash equivalents | $ 1,150 | $ 675 |
Accounts receivable, net | 753 | 570 |
Inventories: | ||
Barreled whiskey | 1,101 | 1,092 |
Finished goods | 323 | 320 |
Work in process | 199 | 172 |
Raw materials and supplies | 128 | 101 |
Total inventories | 1,751 | 1,685 |
Other current assets | 263 | 335 |
Total current assets | 3,917 | 3,265 |
Property, plant, and equipment, net | 832 | 848 |
Goodwill | 779 | 756 |
Other intangible assets | 676 | 635 |
Deferred tax assets | 70 | 15 |
Other assets | 248 | 247 |
Total assets | 6,522 | 5,766 |
Liabilities | ||
Accounts payable and accrued expenses | 679 | 517 |
Accrued income taxes | 34 | 30 |
Short-term borrowings | 205 | 333 |
Total current liabilities | 918 | 880 |
Long-term debt | 2,354 | 2,269 |
Deferred tax liabilities | 169 | 177 |
Accrued pension and other postretirement benefits | 219 | 297 |
Other liabilities | 206 | 168 |
Total liabilities | 3,866 | 3,791 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Retained earnings | 3,243 | 2,708 |
Accumulated other comprehensive income (loss), net of tax | (422) | (547) |
Treasury stock, at cost (6,323,000 and 5,803,000 shares in 2020 and 2021, respectively) | (237) | (258) |
Total stockholders' equity | 2,656 | 1,975 |
Total liabilities and stockholders' equity | $ 6,522 | $ 5,766 |
Parenthetical Information [Abstract] | ||
Treasury stock, shares | 5,803,000 | 6,323,000 |
Common stock, Class A, voting [Member] | ||
Stockholders’ Equity | ||
Common stock | $ 25 | $ 25 |
Parenthetical Information [Abstract] | ||
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] | ||
Stockholders’ Equity | ||
Common stock | $ 47 | $ 47 |
Parenthetical Information [Abstract] | ||
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Cash flows from operating activities: | |||
Net income | $ 903 | $ 827 | $ 835 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Gain on sale of business | (127) | 0 | 0 |
Non-cash intangible asset write-down | 0 | 13 | 0 |
Depreciation and amortization | 77 | 74 | 72 |
Stock-based compensation expense | 12 | 11 | 14 |
Deferred income tax provision (benefit) | (53) | 39 | 38 |
U.S. Tax Act repatriation tax provision (benefit) | 0 | 0 | (4) |
Other, net | (23) | 15 | 8 |
Changes in assets and liabilities, net of business acquisitions and dispositions: | |||
Accounts receivable | (150) | 12 | 23 |
Inventories | (37) | (203) | (162) |
Other current assets | 31 | (27) | 30 |
Accounts payable and accrued expenses | 137 | (30) | (43) |
Accrued income taxes | 8 | 18 | (16) |
Other operating assets and liabilities | 39 | (25) | 5 |
Cash provided by operating activities | 817 | 724 | 800 |
Cash flows from investing activities: | |||
Proceeds from sale of business | 177 | 0 | 0 |
Acquisition of business, net of cash acquired | (14) | (22) | 0 |
Additions to property, plant, and equipment | (62) | (113) | (119) |
Payments for corporate-owned life insurance | 0 | 0 | (2) |
Proceeds from corporate-owned life insurance | 0 | 0 | 4 |
Computer software expenditures | (3) | (6) | (2) |
Cash provided by (used for) investing activities | 98 | (141) | (119) |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings, maturities greater than 90 days | 344 | 0 | 0 |
Repayments of short-term borrowings, maturities greater than 90 days | (516) | 0 | 0 |
Net change in short-term borrowings | 46 | 178 | (71) |
Payments of withholding taxes related to stock-based awards | (21) | (43) | (11) |
Acquisition of treasury stock | 0 | (1) | (207) |
Dividends paid | (338) | (325) | (310) |
Cash used for financing activities | (485) | (191) | (599) |
Effect of exchange rate changes on cash and cash equivalents | 45 | (24) | (14) |
Net increase in cash and cash equivalents | 475 | 368 | 68 |
Cash and cash equivalents, beginning of period | 675 | 307 | 239 |
Cash and cash equivalents, end of period | 1,150 | 675 | 307 |
Supplemental disclosure of cash paid for: | |||
Interest | 79 | 83 | 90 |
Income taxes | $ 204 | $ 143 | $ 201 |
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, 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] | ||||||||
Reclassification of tax effects | [1] | 43 | (43) | |||||
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) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 903 | 903 | ||||||
Net other comprehensive income (loss) | 125 | 125 | ||||||
Cash dividends | (338) | (338) | ||||||
Acquisition of treasury stock | 0 | 0 | ||||||
Stock-based compensation expense | 12 | 12 | ||||||
Stock issued under compensation plans | 21 | 21 | ||||||
Loss on issuance of treasury stock issued under compensation plans | (42) | (12) | (30) | |||||
Ending Balance at Apr. 30, 2021 | $ 2,656 | $ 25 | $ 47 | $ 0 | $ 3,243 | $ (422) | $ (237) | |
[1] | Reflects adoption of Accounting Standards Update No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI), effective May 1, 2019. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (dollars per share) | $ 0.7076 | $ 0.6806 | $ 0.648 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2021 | |
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. Accounts receivable. Accounts receivable are recorded net of an allowance for expected credit losses (allowance for doubtful accounts). We determine the allowance using information such as customer credit history and financial condition, historical loss experience, and macroeconomic factors. We write off account balances against the allowance when we have exhausted our collection efforts. The allowance for doubtful accounts was $11 and $7 at April 30, 2020 and 2021, 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 $311 and $353 higher than reported at April 30, 2020 and 2021, respectively. Because we age most of our whiskeys in barrels for three years or more, 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 agave inventories, bulk tequila, bulk wine, 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, net sales, 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 production costs of advertising when the advertisements first take place. We expense all other advertising costs during the year in which the costs are incurred. 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 indefinitely 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). |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Apr. 30, 2021 | |
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, 2020 2021 Other current assets: Prepaid taxes $ 195 $ 170 Other 140 93 $ 335 $ 263 Property, plant, and equipment: Land $ 82 $ 82 Buildings 652 659 Equipment 814 833 Construction in process 41 50 1,589 1,624 Less accumulated depreciation 741 792 $ 848 $ 832 Accounts payable and accrued expenses: Accounts payable, trade $ 131 $ 172 Accrued expenses: Advertising, promotion, and discounts 135 202 Compensation and commissions 71 96 Excise and other non-income taxes 80 70 Other 100 139 386 507 $ 517 $ 679 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (302) $ (179) Cash flow hedge adjustments 60 (16) Postretirement benefits adjustments (305) (227) $ (547) $ (422) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2021 | |
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: 2019 2020 2021 Net income available to common stockholders $ 835 $ 827 $ 903 Share data (in thousands): Basic average common shares outstanding 478,956 477,765 478,527 Dilutive effect of stock-based awards 3,111 2,644 2,150 Diluted average common shares outstanding 482,067 480,409 480,677 Basic earnings per share $ 1.74 $ 1.73 $ 1.89 Diluted earnings per share $ 1.73 $ 1.72 $ 1.88 We excluded common stock-based awards for approximately 447,000 shares, 301,000 shares, and 234,000 shares from the calculation of diluted earnings per share for 2019, 2020, and 2021, 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, 2021 | |
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, 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 Sale of business (Note 12) (4) (1) Acquisition of business (Note 12) 8 8 Foreign currency translation adjustment 19 34 Balance as of April 30, 2021 $ 779 $ 676 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. During 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 was 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 and 2021, the remaining carrying amount of the Chambord brand name was $104. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2021 | |
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 $10 in 2022, $4 in 2023, and $3 in 2024. 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, 2021, based on current market prices, obligations under these contracts total $38. 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, 2021. 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 cash representing 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., as well as additional compensation for the winding up of business conducted under the Agreement and for remitting the associated funds owed to us. From monthly settlements following the expiration of the Agreement, Bacardi withheld over £50 owed to us, effectively bypassing the dispute resolution process under the Agreement. This withheld amount is included in accounts receivable in the accompanying consolidated balance sheet as of April 30, 2021. In response to Bacardi's actions, we initiated a lawsuit on August 20, 2020, in the Commercial Court in the U.K. seeking reimbursement of the amounts wrongfully withheld (the Commercial Court Action). Shortly thereafter, Bacardi filed a demand for arbitration seeking a determination that it was entitled to compensation as a commercial agent and for additional compensation for the work completed following the expiration of the Agreement (the Arbitration). 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. The ruling for the Commercial Court Action was issued on May 19, 2021, in which the Court declined to order Bacardi to return the amounts withheld pending the outcome of the Arbitration. The Arbitration is scheduled to take place the week of July 12, 2021. Given the current stage of the Arbitration process, we are unable to estimate the range of reasonably possible loss, if any. 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, 2021, our actual exposure under the guaranty of the importer's obligation is approximately $5. We also have accounts receivable from that importer of approximately $7 at April 30, 2021, 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, 2021 | |
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, 2020 2021 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 249 3.50% senior notes, $300 principal amount, due April 15, 2025 297 298 1.20% senior notes, €300 principal amount, due July 7, 2026 324 362 2.60% senior notes, £300 principal amount, due July 7, 2028 369 415 4.00% senior notes, $300 principal amount, due April 15, 2038 294 294 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 488 488 $ 2,269 $ 2,354 Debt payments required over the next five fiscal years consist of $0 in 2022, $250 in 2023, $0 in 2024, $300 in 2025, $0 in 2026, and $1,832 after 2026. The senior notes contain terms, events of default, and covenants customary of these types of unsecured securities, including limitations on the amount of secured debt we can issue. Our short-term borrowings of $333 as of April 30, 2020, and $205 as of April 30, 2021, consisted primarily of borrowings under our commercial paper program: April 30, 2020 2021 Commercial paper $333 $195 Average interest rate 1.29% 0.16% Average remaining days to maturity 73 24 We have a committed revolving credit agreement with various U.S. and international banks for $800 that expires in November 2023. At April 30, 2021, there were no borrowings outstanding under this facility. |
Common Stock
Common Stock | 12 Months Ended |
Apr. 30, 2021 | |
Common Stock [Abstract] | |
Common Stock | Common Stock The following table shows the change in outstanding common shares during each of the last three years: (Shares in thousands) Class A Class B Total 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 Acquisition of treasury stock — — — Stock issued under compensation plans 70 450 520 Balance at April 30, 2021 169,110 309,619 478,729 |
Net Sales
Net Sales | 12 Months Ended |
Apr. 30, 2021 | |
Net Sales [Abstract] | |
Net Sales | Net Sales The following table shows our net sales by geography: 2019 2020 2021 United States $ 1,563 $ 1,690 $ 1,748 Developed International 1 917 901 1,014 Emerging 2 597 572 578 Travel Retail 3 140 125 63 Non-branded and bulk 4 107 75 58 $ 3,324 $ 3,363 $ 3,461 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 Australia, Germany, the United Kingdom, France, 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, Brazil, 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: 2019 2020 2021 Whiskey 1 $ 2,595 $ 2,671 $ 2,744 Tequila 2 263 275 299 Wine 3 187 186 206 Vodka 4 126 109 90 Rest of portfolio 46 47 64 Non-branded and bulk 5 107 75 58 $ 3,324 $ 3,363 $ 3,461 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, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers' Craft. Also includes the Early Times, Canadian Mist, and Collingwood brands, which we divested on July 31, 2020 (Note 12). 2 Includes el Jimador, the Herradura family of brands, 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, 2021 | |
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 2020 2021 2020 2021 Obligation at beginning of year $ 908 $ 1,005 $ 50 $ 51 Service cost 24 26 1 1 Interest cost 31 25 1 1 Net actuarial loss (gain) 108 9 2 (1) Retiree contributions — — 1 1 Benefits paid (66) (53) (4) (4) Obligation at end of year $ 1,005 $ 1,012 $ 51 $ 49 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 2022 $ 69 $ 3 2023 66 3 2024 65 3 2025 64 3 2026 66 3 2027 – 2031 327 15 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, 2021, 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, 2020 Equity securities $ 80 $ — $ — $ 80 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 April 30, 2021 Equity securities $ 103 $ — $ — $ 103 Limited partnership interest 1 — — 2 2 $ 103 $ — $ 2 105 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 266 Fixed income funds 357 Real estate funds 65 Short-term investments 8 Limited partnership interests 3 35 Total $ 836 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 2021, 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, 2019 $ 3 Sales and settlements (1) Balance as of April 30, 2020 2 Return on assets held at end of year 1 Sales and settlements (1) Balance as of April 30, 2021 $ 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 2020 2021 2020 2021 Assets at beginning of year $ 754 $ 749 $ — $ — Actual return on assets 39 124 — — Retiree contributions — — 1 1 Company contributions 22 16 3 3 Benefits paid (66) (53) (4) (4) Assets at end of year $ 749 $ 836 $ — $ — We currently expect to contribute $17 to our pension plans and $3 to our postretirement medical and life insurance benefit plans during 2022. 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 April 30, 2020 2021 2020 2021 Assets $ 749 $ 836 $ — $ — Obligations (1,005) (1,012) (51) (49) Funded status $ (256) $ (176) $ (51) $ (49) The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life April 30, 2020 2021 2020 2021 Other assets $ — $ 4 $ — $ — Accounts payable and accrued expenses (7) (7) (3) (3) Accrued postretirement benefits (249) (173) (48) (46) Net liability $ (256) $ (176) $ (51) $ (49) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (394) $ (298) $ (11) $ (9) Prior service credit (cost) (6) (5) 7 4 $ (400) $ (303) $ (4) $ (5) The following table compares our pension plans whose accumulated benefit obligations exceed their assets with our pension plans whose assets exceed their accumulated benefit obligations. Accumulated Plan Assets April 30, 2020 2021 2020 2021 Plans with accumulated benefit obligation in excess of assets $ (277) $ (155) $ 124 $ — Plans with assets in excess of accumulated benefit obligation (613) (748) 625 836 Total $ (890) $ (903) $ 749 $ 836 The following table compares our pension plans whose projected benefit obligations exceed their assets with our pension plans whose assets exceed their projected benefit obligations. Projected Plan Assets April 30, 2020 2021 2020 2021 Plans with projected benefit obligation in excess of assets $ (1,005) $ (941) $ 749 $ 761 Plans with assets in excess of projected benefit obligation — (71) — 75 Total $ (1,005) $ (1,012) $ 749 $ 836 As noted above, we have no assets set aside for the postretirement medical or life insurance benefit plans. 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 2019 2020 2021 Service cost $ 24 $ 24 $ 26 Interest cost 34 31 25 Expected return on assets (47) (46) (46) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 19 19 27 Settlement charge 15 1 — Net cost $ 46 $ 30 $ 33 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. 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 2019 2020 2021 Service cost $ 1 $ 1 $ 1 Interest cost 2 1 1 Amortization of: Prior service cost (credit) (3) (3) (3) Net actuarial loss (gain) 1 1 1 Net cost $ 1 $ — $ — 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 2019 2020 2021 2019 2020 2021 Net actuarial gain (loss) $ (41) $ (115) $ 69 $ — $ (2) $ 1 Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3) (3) (3) Net actuarial loss (gain) 34 20 27 1 1 1 Net amount recognized in OCI $ (6) $ (94) $ 97 $ (2) $ (4) $ (1) 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 2020 2021 2020 2021 Discount rate 3.28 % 3.16 % 3.17 % 3.08 % Rate of salary increase 4.00 % 4.00 % n/a n/a Interest crediting rate 3.07 % 3.06 % 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 2019 2020 2021 2019 2020 2021 Discount rate for service cost 4.30 % 4.17 % 3.49 % 4.34 % 4.24 % 3.59 % Discount rate for interest cost 3.93 % 3.57 % 2.56 % 3.90 % 3.53 % 2.47 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Interest crediting rate 3.18 % 3.07 % 3.07 % n/a n/a n/a Expected return on plan assets 6.50 % 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 assumed interest crediting is based on the greater of the average yield on 30-year Treasury bonds or the minimum rate specified in the applicable pension plan. 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 2020 2021 Health care cost trend rate assumed for next year 6.90 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 4.50 % Year that the rate reaches the ultimate trend rate 2025 2030 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 2019, 2020, and 2021, 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, 2021 | |
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, 2021, awards for approximately 12,961,000 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), performance-based restricted stock units (PBRSUs), 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, 2021, and for the year then ended. Number of Weighted- Weighted- Aggregate Outstanding at April 30, 2020 4,930 $ 38.19 Granted 448 69.21 Exercised (1,064) 29.53 Forfeited or expired (3) 53.40 Outstanding at April 30, 2021 4,311 $ 43.54 5.1 $ 141 Exercisable at April 30, 2021 2,805 $ 35.38 3.7 $ 115 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: 2019 2020 2021 Grant-date fair value $ 11.06 $ 11.13 $ 14.61 Valuation assumptions: Expected term (years) 7.0 7.0 7.0 Risk-free interest rate 2.9 % 1.9 % 0.4 % Expected volatility 17.1 % 19.3 % 23.3 % Expected dividend yield 1.4 % 1.2 % 1.0 % 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. PBRSUs. The PBRSUs 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 cumulative 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 PBRSUs are converted to common shares. The number of shares is determined by adjusting the PBRSUs 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 PBRSUs outstanding as of April 30, 2021, and for the year then ended. Number of Weighted- Outstanding at April 30, 2020 289 $ 52.44 Granted 82 $ 73.68 Converted to common shares (116) $ 46.94 Forfeited (1) $ 64.67 Outstanding at April 30, 2021 254 $ 61.76 We calculate the grant-date fair value of a PBRSU 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: 2019 2020 2021 Grant-date fair value $ 55.29 $ 56.99 $ 73.68 Valuation assumptions: Risk-free interest rate 2.7 % 1.8 % 0.1 % Expected volatility 20.8 % 21.8 % 29.9 % Expected dividend yield 1.2 % 1.2 % 1.1 % 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, 2021, there were approximately 241,000 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: 2019 2020 2021 Grant-date fair value $ 54.20 $ 53.34 $ 63.01 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: 2019 2020 2021 Pre-tax compensation expense $ 14 $ 11 $ 12 Deferred tax benefit 2 2 2 As of April 30, 2021, there was $8 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: 2019 2020 2021 Intrinsic value of SSARs exercised $ 31 $ 89 $ 47 Fair value of shares vested 1 20 14 13 Excess tax benefit from exercise / vesting of awards 7 20 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
Income Taxes | 12 Months Ended |
Apr. 30, 2021 | |
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: 2019 2020 2021 United States $ 863 $ 849 $ 832 Foreign 179 160 249 $ 1,042 $ 1,009 $ 1,081 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 (tax on income that will be recognized on future tax returns) and deferred tax assets (tax 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: 2019 2020 2021 Current: U.S. federal $ 107 $ 95 $ 146 Foreign 34 29 50 State and local 28 19 35 169 143 231 Deferred: U.S. federal 37 34 (4) Foreign 4 7 (47) State and local (3) (2) (2) 38 39 (53) $ 207 $ 182 $ 178 We recognized a deferred tax benefit of $43 related to an intercompany transfer of assets during fiscal 2021. 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. 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%. 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, 2020 and April 30, 2021, the net impact of these provisions was approximately $11 and $9 of additional tax, respectively. As of April 30, 2021, we had approximately $1,542 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. We have not changed the indefinite reinvestment assertion on the undistributed earnings or other outside basis differences of any of our 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, 2021, 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, 2021. As of April 30, 2020, we had approximately $1,279 of undistributed earnings from our foreign subsidiaries. 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. 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 2019 2020 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 2.1 % 1.7 % 2.4 % Income taxed at other than U.S. federal statutory rate (0.1 %) — % 0.3 % Tax benefit from foreign-derived sales (1.7 %) (2.0 %) (1.7 %) Adjustments related to prior years (1.2 %) (1.1 %) (0.2 %) Excess tax benefits from stock-based awards (0.7 %) (2.0 %) (1.0 %) Impact of Tax Act (0.4 %) — % — % Intercompany transfer of assets — % — % (4.0 %) Other, net 0.8 % 0.4 % (0.3 %) Effective rate 19.8 % 18.0 % 16.5 % Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2020 2021 Deferred tax assets: Postretirement and other benefits $ 110 $ 90 Accrued liabilities and other 23 47 Inventories 26 30 Lease liabilities 14 17 Derivative instruments — 5 Loss and credit carryforwards 57 63 Valuation allowance (22) (20) Total deferred tax assets, net 208 232 Deferred tax liabilities: Intangible assets (233) (214) Property, plant, and equipment (90) (89) Right-of-use assets (13) (17) Derivative instruments (18) — Other (16) (11) Total deferred tax liabilities (370) (331) Net deferred tax liability $ (162) $ (99) 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, 2020 April 30, 2021 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance Expiration (as of April 30, 2021) Finland net operating losses $ 119 $ 24 $ — $ 113 $ 23 $ — 2024-2030 Brazil net operating losses 31 10 (10) 30 10 — None United Kingdom non-trading losses 26 5 (5) 29 5 (5) None State net operating losses and credits 63 9 — 91 13 (5) Various 1 Other 50 9 (7) 64 12 (10) Various 2 $ 289 $ 57 $ (22) $ 327 $ 63 $ (20) 1 As of April 30, 2021, the net deferred tax asset amount includes credit carryforwards of $5 that do not expire and loss and credit carryforwards of $8 that expire in varying amounts from 2023 to 2041. 2 As of April 30, 2021, the gross amount includes loss carryforwards of $29 that do not expire and $35 that expire in varying amounts over the next 18 years. At April 30, 2021, we had $12 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: 2019 2020 2021 Unrecognized tax benefits at beginning of year $ 11 $ 11 $ 11 Additions for tax positions provided in prior periods 1 2 1 Additions for tax positions provided in current period 1 — 2 Decreases for tax positions provided in prior years (2) (1) — Settlements of tax positions in the current period — (1) (1) Lapse of statutes of limitations — — (1) Unrecognized tax benefits at end of year $ 11 $ 11 $ 12 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 2016 for one state in the United States; 2019 in the United Kingdom; 2017 in Australia; 2016 in Finland, Germany, and Poland; 2015 in the Netherlands and Brazil; and 2013 in Mexico. We expect the audits of our fiscal 2018, fiscal 2019, and fiscal 2020 U.S. federal tax returns to be concluded in the first half of fiscal 2022. In addition, we are participating in the Internal Revenue Service's Compliance Assurance Program - Bridge Phase for our fiscal 2021 tax year. We believe there will be no material change in our gross unrecognized tax benefits in the next 12 months. Cash taxes for the year ended April 30, 2021 is $204 compared to $143 for the year ended April 30, 2020. The increase of $61 is primarily due to estimated taxes related to the gain on sale of the Early Times, Canadian Mist, and Collingwood brands and related assets, the absence of an overpayment of taxes for fiscal 2019 credited to fiscal 2020, additional transition tax payments made in fiscal 2021 and the deferral of U.S. tax payments from our fourth quarter of fiscal 2020 to our first quarter of fiscal 2021. |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Apr. 30, 2021 | |
Acquisitions and Divestiture [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions . 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. On December 1, 2020, we acquired 100% of the voting interests in Part Time Rangers Holdings Limited (Part Time Rangers) for $14 in cash (including repayment of debt). Part Time Rangers, which is based in New Zealand, produces spirits-based ready-to-drink products with all-natural fruit flavoring. The purchase price has been preliminarily allocated largely to the intangible assets of the acquired business, including goodwill of $8 and other intangible assets of $8, net of deferred tax liabilities of $2. The goodwill is primarily attributable to the value of leveraging our distribution network and brand-building expertise to grow sales of the Part Time Rangers brand. We do not expect the goodwill to be deductible for tax purposes. The 86 Company and Part Time Rangers have been included in our consolidated financial statements since the respective acquisition dates. Actual and pro forma results are not presented due to immateriality. Divestiture. On July 31, 2020, we sold the Early Times, Canadian Mist, and Collingwood brands for $177 in cash. The sale reflects the continued evolution of our portfolio strategy to focus on premium spirits brands. The total book value of the related business assets included in the sale was $50, consisting largely of inventories, the Canadian Mist production assets, and intellectual property. As a result of the sale, we recognized a pre-tax gain of $127 during fiscal 2021. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Apr. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We are subject to market risks, including the effect of fluctuations in foreign 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 foreign 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 $1,026 and $1,218 at April 30, 2020 and 2021, respectively. The maximum term of outstanding derivative contracts was approximately 36 months at both April 30, 2020 and 2021. 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 $613 and $680 as of April 30, 2020 and 2021, 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 take physical 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 2019 2020 2021 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 69 $ 61 $ (78) Net gain (loss) reclassified from AOCI into earnings Sales 6 23 21 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales 6 4 (13) Net gain (loss) recognized in earnings Other income (expense), net 6 (14) 17 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a 45 22 (73) Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,276 4,306 4,526 Other income (expense), net 15 (11) 15 We expect to reclassify $12 of deferred net losses on cash flow hedges recorded in AOCI as of April 30, 2021, to earnings during fiscal 2022. 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, 2020 and 2021: Balance Sheet Classification Derivative Assets Derivative Liabilities 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) April 30, 2021 Designated as cash flow hedges: Currency derivatives Other current assets 4 (2) Currency derivatives Other assets — — Currency derivatives Accrued expenses 4 (18) Currency derivatives Other liabilities 1 (18) Not designated as hedges: Currency derivatives Other current assets 1 — The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments 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 $2 and $30 at April 30, 2020 and 2021, 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, 2020 Derivative assets $ 79 $ (1) $ 78 $ — $ 78 Derivative liabilities (3) 1 (2) — (2) April 30, 2021 Derivative assets 10 (7) 3 (1) 2 Derivative liabilities (38) 7 (31) 1 (30) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2020 or 2021. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2021 | |
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: 2020 2021 April 30, Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 675 $ 675 $ 1,150 $ 1,150 Currency derivatives 78 78 3 3 Liabilities: Currency derivatives 2 2 31 31 Short-term borrowings 333 333 205 205 Long-term debt 2,269 2,486 2,354 2,663 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. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2021 | |
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 Accounting Standards Codification Topic 842 (ASC 842). Under the updated policy, 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 information about our leases as of the end of the last two years: Balance Sheet Classification April 30, April 30, Right-of-use assets Other assets $ 51 $ 67 Lease liabilities: Current Accounts payable and accrued expenses $ 16 $ 20 Non-current Other liabilities 37 49 Total $ 53 $ 69 Weighted-average discount rate 3.0% 1.9% Weighted-average remaining term 5.2 years 5.3 years The following table shows information about the effects of leases during 2020 and 2021: 2020 2021 Total lease cost 1 $ 29 $ 41 Cash paid for amounts included in the measurement of lease liabilities 2 21 26 Right-of-use assets obtained in exchange for new lease liabilities 35 25 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. Rent expense for operating leases in 2019 (under the lease accounting guidance in effect before we adopted ASC 842) was $28. 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, 2021: April 30, 2022 $ 21 2023 16 2024 12 2025 7 2026 5 Thereafter 12 Total lease payments 73 Less: Present value discount (4) Lease liabilities $ 69 . |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2021 | |
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, 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) Year Ended April 30, 2021 Currency translation adjustments: Net gain (loss) on currency translation $ 106 $ 17 $ 123 Reclassification to earnings — — — Other comprehensive income (loss), net 106 17 123 Cash flow hedge adjustments: Net gain (loss) on hedging instruments (78) 17 (61) Reclassification to earnings 1 (21) 6 (15) Other comprehensive income (loss), net (99) 23 (76) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 71 (16) 55 Reclassification to earnings 2 30 (7) 23 Other comprehensive income (loss), net 101 (23) 78 Total other comprehensive income (loss), net $ 108 $ 17 $ 125 1 Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. 2 For the year ended April 30, 2021, $4 of the pre-tax amount of $30 is classified in gain on sale of business in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as non-operating postretirement expense. |
Supplemental Information
Supplemental Information | 12 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Supplemental Information | Supplemental Information The following table presents net sales by geography: 2019 2020 2021 Net sales: United States $ 1,563 $ 1,690 $ 1,748 Australia 164 155 209 Germany 159 171 206 United Kingdom 199 180 205 Mexico 166 155 150 Other 1,073 1,012 943 $ 3,324 $ 3,363 $ 3,461 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, and approximately 19% and 13% of consolidated net sales in 2021. The net book value of property, plant, and equipment located outside the United States was $105 and $107 as of April 30, 2020 and 2021, respectively. Other long-lived assets located outside the United States are not significant. We have concluded that our business constitutes a single operating segment. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2021 | |
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, 2019, 2020, and 2021 (Expressed in millions) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Description Balance at Additions Additions Deductions Balance 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 2021 Allowance for doubtful accounts $ 11 $ — $ — $ 4 (1) $ 7 Deferred tax valuation allowance $ 22 $ 10 $ — $ 12 $ 20 (1) Doubtful accounts written off, net of recoveries. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
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. |
Accounts receivable | Accounts receivable. Accounts receivable are recorded net of an allowance for expected credit losses (allowance for doubtful accounts). We determine the allowance using information such as customer credit history and financial condition, historical loss experience, and macroeconomic factors. We write off account balances against the allowance when we have exhausted our collection efforts. The allowance for doubtful accounts was $11 and $7 at April 30, 2020 and 2021, 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 $311 and $353 higher than reported at April 30, 2020 and 2021, respectively. Because we age most of our whiskeys in barrels for three years or more, 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 agave inventories, bulk tequila, bulk wine, 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, net sales, 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 production costs of advertising when the advertisements first take place. We expense all other advertising costs during the year in which the costs are incurred. |
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 indefinitely 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). |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
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. 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. |
Leases Leases (Policies)
Leases Leases (Policies) | 12 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | Effective May 1, 2019, we updated our accounting policy for leases to reflect the adoption of Accounting Standards Codification Topic 842 (ASC 842). Under the updated policy, 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, 2021 | |
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, 2020 2021 Other current assets: Prepaid taxes $ 195 $ 170 Other 140 93 $ 335 $ 263 Property, plant, and equipment: Land $ 82 $ 82 Buildings 652 659 Equipment 814 833 Construction in process 41 50 1,589 1,624 Less accumulated depreciation 741 792 $ 848 $ 832 Accounts payable and accrued expenses: Accounts payable, trade $ 131 $ 172 Accrued expenses: Advertising, promotion, and discounts 135 202 Compensation and commissions 71 96 Excise and other non-income taxes 80 70 Other 100 139 386 507 $ 517 $ 679 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (302) $ (179) Cash flow hedge adjustments 60 (16) Postretirement benefits adjustments (305) (227) $ (547) $ (422) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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: 2019 2020 2021 Net income available to common stockholders $ 835 $ 827 $ 903 Share data (in thousands): Basic average common shares outstanding 478,956 477,765 478,527 Dilutive effect of stock-based awards 3,111 2,644 2,150 Diluted average common shares outstanding 482,067 480,409 480,677 Basic earnings per share $ 1.74 $ 1.73 $ 1.89 Diluted earnings per share $ 1.73 $ 1.72 $ 1.88 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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, 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 Sale of business (Note 12) (4) (1) Acquisition of business (Note 12) 8 8 Foreign currency translation adjustment 19 34 Balance as of April 30, 2021 $ 779 $ 676 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2020 2021 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 249 3.50% senior notes, $300 principal amount, due April 15, 2025 297 298 1.20% senior notes, €300 principal amount, due July 7, 2026 324 362 2.60% senior notes, £300 principal amount, due July 7, 2028 369 415 4.00% senior notes, $300 principal amount, due April 15, 2038 294 294 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 488 488 $ 2,269 $ 2,354 |
Schedule of short-term debt | April 30, 2020 2021 Commercial paper $333 $195 Average interest rate 1.29% 0.16% Average remaining days to maturity 73 24 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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 during each of the last three years: (Shares in thousands) Class A Class B Total 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 Acquisition of treasury stock — — — Stock issued under compensation plans 70 450 520 Balance at April 30, 2021 169,110 309,619 478,729 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Net Sales [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table shows our net sales by geography: 2019 2020 2021 United States $ 1,563 $ 1,690 $ 1,748 Developed International 1 917 901 1,014 Emerging 2 597 572 578 Travel Retail 3 140 125 63 Non-branded and bulk 4 107 75 58 $ 3,324 $ 3,363 $ 3,461 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 Australia, Germany, the United Kingdom, France, 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, Brazil, 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: 2019 2020 2021 Whiskey 1 $ 2,595 $ 2,671 $ 2,744 Tequila 2 263 275 299 Wine 3 187 186 206 Vodka 4 126 109 90 Rest of portfolio 46 47 64 Non-branded and bulk 5 107 75 58 $ 3,324 $ 3,363 $ 3,461 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, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers' Craft. Also includes the Early Times, Canadian Mist, and Collingwood brands, which we divested on July 31, 2020 (Note 12). 2 Includes el Jimador, the Herradura family of brands, 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, 2021 | |
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 2020 2021 2020 2021 Obligation at beginning of year $ 908 $ 1,005 $ 50 $ 51 Service cost 24 26 1 1 Interest cost 31 25 1 1 Net actuarial loss (gain) 108 9 2 (1) Retiree contributions — — 1 1 Benefits paid (66) (53) (4) (4) Obligation at end of year $ 1,005 $ 1,012 $ 51 $ 49 |
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 2022 $ 69 $ 3 2023 66 3 2024 65 3 2025 64 3 2026 66 3 2027 – 2031 327 15 |
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, 2020 Equity securities $ 80 $ — $ — $ 80 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 April 30, 2021 Equity securities $ 103 $ — $ — $ 103 Limited partnership interest 1 — — 2 2 $ 103 $ — $ 2 105 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 266 Fixed income funds 357 Real estate funds 65 Short-term investments 8 Limited partnership interests 3 35 Total $ 836 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 2021, 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, 2019 $ 3 Sales and settlements (1) Balance as of April 30, 2020 2 Return on assets held at end of year 1 Sales and settlements (1) Balance as of April 30, 2021 $ 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 2020 2021 2020 2021 Assets at beginning of year $ 754 $ 749 $ — $ — Actual return on assets 39 124 — — Retiree contributions — — 1 1 Company contributions 22 16 3 3 Benefits paid (66) (53) (4) (4) Assets at end of year $ 749 $ 836 $ — $ — |
Funded status of plans | The following table shows the funded status of our plans. Pension Benefits Medical and Life April 30, 2020 2021 2020 2021 Assets $ 749 $ 836 $ — $ — Obligations (1,005) (1,012) (51) (49) Funded status $ (256) $ (176) $ (51) $ (49) |
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 April 30, 2020 2021 2020 2021 Other assets $ — $ 4 $ — $ — Accounts payable and accrued expenses (7) (7) (3) (3) Accrued postretirement benefits (249) (173) (48) (46) Net liability $ (256) $ (176) $ (51) $ (49) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (394) $ (298) $ (11) $ (9) Prior service credit (cost) (6) (5) 7 4 $ (400) $ (303) $ (4) $ (5) |
Pension plans with accumulated benefit obligation in excess of plan assets | The following table compares our pension plans whose accumulated benefit obligations exceed their assets with our pension plans whose assets exceed their accumulated benefit obligations. Accumulated Plan Assets April 30, 2020 2021 2020 2021 Plans with accumulated benefit obligation in excess of assets $ (277) $ (155) $ 124 $ — Plans with assets in excess of accumulated benefit obligation (613) (748) 625 836 Total $ (890) $ (903) $ 749 $ 836 |
Pension plans with projected benefit obligation in excess of plan assets | The following table compares our pension plans whose projected benefit obligations exceed their assets with our pension plans whose assets exceed their projected benefit obligations. Projected Plan Assets April 30, 2020 2021 2020 2021 Plans with projected benefit obligation in excess of assets $ (1,005) $ (941) $ 749 $ 761 Plans with assets in excess of projected benefit obligation — (71) — 75 Total $ (1,005) $ (1,012) $ 749 $ 836 |
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 2019 2020 2021 Service cost $ 24 $ 24 $ 26 Interest cost 34 31 25 Expected return on assets (47) (46) (46) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 19 19 27 Settlement charge 15 1 — Net cost $ 46 $ 30 $ 33 |
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 2019 2020 2021 Service cost $ 1 $ 1 $ 1 Interest cost 2 1 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 2019 2020 2021 2019 2020 2021 Net actuarial gain (loss) $ (41) $ (115) $ 69 $ — $ (2) $ 1 Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3) (3) (3) Net actuarial loss (gain) 34 20 27 1 1 1 Net amount recognized in OCI $ (6) $ (94) $ 97 $ (2) $ (4) $ (1) |
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 2020 2021 2020 2021 Discount rate 3.28 % 3.16 % 3.17 % 3.08 % Rate of salary increase 4.00 % 4.00 % n/a n/a Interest crediting rate 3.07 % 3.06 % n/a n/a |
Assumptions used in computing benefit plan expense | 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 2019 2020 2021 2019 2020 2021 Discount rate for service cost 4.30 % 4.17 % 3.49 % 4.34 % 4.24 % 3.59 % Discount rate for interest cost 3.93 % 3.57 % 2.56 % 3.90 % 3.53 % 2.47 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Interest crediting rate 3.18 % 3.07 % 3.07 % n/a n/a n/a Expected return on plan assets 6.50 % 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 2020 2021 Health care cost trend rate assumed for next year 6.90 % 6.60 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 4.50 % Year that the rate reaches the ultimate trend rate 2025 2030 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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, 2021, and for the year then ended. Number of Weighted- Weighted- Aggregate Outstanding at April 30, 2020 4,930 $ 38.19 Granted 448 69.21 Exercised (1,064) 29.53 Forfeited or expired (3) 53.40 Outstanding at April 30, 2021 4,311 $ 43.54 5.1 $ 141 Exercisable at April 30, 2021 2,805 $ 35.38 3.7 $ 115 |
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: 2019 2020 2021 Grant-date fair value $ 11.06 $ 11.13 $ 14.61 Valuation assumptions: Expected term (years) 7.0 7.0 7.0 Risk-free interest rate 2.9 % 1.9 % 0.4 % Expected volatility 17.1 % 19.3 % 23.3 % Expected dividend yield 1.4 % 1.2 % 1.0 % |
Share-based Payment Arrangement, Performance Based Restricted Stock Units, Activity [Table Text Block] | The following table presents information about PBRSUs outstanding as of April 30, 2021, and for the year then ended. Number of Weighted- Outstanding at April 30, 2020 289 $ 52.44 Granted 82 $ 73.68 Converted to common shares (116) $ 46.94 Forfeited (1) $ 64.67 Outstanding at April 30, 2021 254 $ 61.76 |
Schedule of Share-Based Payment Award, Performance Based 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: 2019 2020 2021 Grant-date fair value $ 55.29 $ 56.99 $ 73.68 Valuation assumptions: Risk-free interest rate 2.7 % 1.8 % 0.1 % Expected volatility 20.8 % 21.8 % 29.9 % Expected dividend yield 1.2 % 1.2 % 1.1 % 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: 2019 2020 2021 Grant-date fair value $ 54.20 $ 53.34 $ 63.01 |
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: 2019 2020 2021 Pre-tax compensation expense $ 14 $ 11 $ 12 Deferred tax benefit 2 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: 2019 2020 2021 Intrinsic value of SSARs exercised $ 31 $ 89 $ 47 Fair value of shares vested 1 20 14 13 Excess tax benefit from exercise / vesting of awards 7 20 10 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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: 2019 2020 2021 United States $ 863 $ 849 $ 832 Foreign 179 160 249 $ 1,042 $ 1,009 $ 1,081 |
Total income tax expense | Our total income tax expense for each of the last three years was as follows: 2019 2020 2021 Current: U.S. federal $ 107 $ 95 $ 146 Foreign 34 29 50 State and local 28 19 35 169 143 231 Deferred: U.S. federal 37 34 (4) Foreign 4 7 (47) State and local (3) (2) (2) 38 39 (53) $ 207 $ 182 $ 178 |
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 2019 2020 2021 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 2.1 % 1.7 % 2.4 % Income taxed at other than U.S. federal statutory rate (0.1 %) — % 0.3 % Tax benefit from foreign-derived sales (1.7 %) (2.0 %) (1.7 %) Adjustments related to prior years (1.2 %) (1.1 %) (0.2 %) Excess tax benefits from stock-based awards (0.7 %) (2.0 %) (1.0 %) Impact of Tax Act (0.4 %) — % — % Intercompany transfer of assets — % — % (4.0 %) Other, net 0.8 % 0.4 % (0.3 %) Effective rate 19.8 % 18.0 % 16.5 % |
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, 2020 2021 Deferred tax assets: Postretirement and other benefits $ 110 $ 90 Accrued liabilities and other 23 47 Inventories 26 30 Lease liabilities 14 17 Derivative instruments — 5 Loss and credit carryforwards 57 63 Valuation allowance (22) (20) Total deferred tax assets, net 208 232 Deferred tax liabilities: Intangible assets (233) (214) Property, plant, and equipment (90) (89) Right-of-use assets (13) (17) Derivative instruments (18) — Other (16) (11) Total deferred tax liabilities (370) (331) Net deferred tax liability $ (162) $ (99) |
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, 2020 April 30, 2021 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance Expiration (as of April 30, 2021) Finland net operating losses $ 119 $ 24 $ — $ 113 $ 23 $ — 2024-2030 Brazil net operating losses 31 10 (10) 30 10 — None United Kingdom non-trading losses 26 5 (5) 29 5 (5) None State net operating losses and credits 63 9 — 91 13 (5) Various 1 Other 50 9 (7) 64 12 (10) Various 2 $ 289 $ 57 $ (22) $ 327 $ 63 $ (20) 1 As of April 30, 2021, the net deferred tax asset amount includes credit carryforwards of $5 that do not expire and loss and credit carryforwards of $8 that expire in varying amounts from 2023 to 2041. |
Reconciliation of ending and beginning unrecognized tax benefits | A reconciliation of the beginning and ending unrecognized tax benefits follows: 2019 2020 2021 Unrecognized tax benefits at beginning of year $ 11 $ 11 $ 11 Additions for tax positions provided in prior periods 1 2 1 Additions for tax positions provided in current period 1 — 2 Decreases for tax positions provided in prior years (2) (1) — Settlements of tax positions in the current period — (1) (1) Lapse of statutes of limitations — — (1) Unrecognized tax benefits at end of year $ 11 $ 11 $ 12 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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 2019 2020 2021 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 69 $ 61 $ (78) Net gain (loss) reclassified from AOCI into earnings Sales 6 23 21 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales 6 4 (13) Net gain (loss) recognized in earnings Other income (expense), net 6 (14) 17 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a 45 22 (73) Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,276 4,306 4,526 Other income (expense), net 15 (11) 15 |
Schedule of fair values of derivative instruments | The following table presents the fair values of our derivative instruments as of April 30, 2020 and 2021: Balance Sheet Classification Derivative Assets Derivative Liabilities 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) April 30, 2021 Designated as cash flow hedges: Currency derivatives Other current assets 4 (2) Currency derivatives Other assets — — Currency derivatives Accrued expenses 4 (18) Currency derivatives Other liabilities 1 (18) Not designated as hedges: Currency derivatives Other current assets 1 — |
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, 2020 Derivative assets $ 79 $ (1) $ 78 $ — $ 78 Derivative liabilities (3) 1 (2) — (2) April 30, 2021 Derivative assets 10 (7) 3 (1) 2 Derivative liabilities (38) 7 (31) 1 (30) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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: 2020 2021 April 30, Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 675 $ 675 $ 1,150 $ 1,150 Currency derivatives 78 78 3 3 Liabilities: Currency derivatives 2 2 31 31 Short-term borrowings 333 333 205 205 Long-term debt 2,269 2,486 2,354 2,663 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Leases [Abstract] | |
ROU Assets and Lease Liabilities [Table Text Block] | The following table shows information about our leases as of the end of the last two years: Balance Sheet Classification April 30, April 30, Right-of-use assets Other assets $ 51 $ 67 Lease liabilities: Current Accounts payable and accrued expenses $ 16 $ 20 Non-current Other liabilities 37 49 Total $ 53 $ 69 Weighted-average discount rate 3.0% 1.9% Weighted-average remaining term 5.2 years 5.3 years |
Lease Cost and Other Lease Information [Table Text Block] | The following table shows information about the effects of leases during 2020 and 2021: 2020 2021 Total lease cost 1 $ 29 $ 41 Cash paid for amounts included in the measurement of lease liabilities 2 21 26 Right-of-use assets obtained in exchange for new lease liabilities 35 25 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, 2021: April 30, 2022 $ 21 2023 16 2024 12 2025 7 2026 5 Thereafter 12 Total lease payments 73 Less: Present value discount (4) Lease liabilities $ 69 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
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, 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) Year Ended April 30, 2021 Currency translation adjustments: Net gain (loss) on currency translation $ 106 $ 17 $ 123 Reclassification to earnings — — — Other comprehensive income (loss), net 106 17 123 Cash flow hedge adjustments: Net gain (loss) on hedging instruments (78) 17 (61) Reclassification to earnings 1 (21) 6 (15) Other comprehensive income (loss), net (99) 23 (76) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 71 (16) 55 Reclassification to earnings 2 30 (7) 23 Other comprehensive income (loss), net 101 (23) 78 Total other comprehensive income (loss), net $ 108 $ 17 $ 125 1 Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. 2 For the year ended April 30, 2021, $4 of the pre-tax amount of $30 is classified in gain on sale of business in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as non-operating postretirement expense. |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Apr. 30, 2021 | |
Segment Reporting [Abstract] | |
Net sales by geography | The following table presents net sales by geography: 2019 2020 2021 Net sales: United States $ 1,563 $ 1,690 $ 1,748 Australia 164 155 209 Germany 159 171 206 United Kingdom 199 180 205 Mexico 166 155 150 Other 1,073 1,012 943 $ 3,324 $ 3,363 $ 3,461 |
Accounting Policies Allowance f
Accounting Policies Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Allowance for Doubtful Accounts [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7 | $ 11 |
Accounting Policies (Textual) (
Accounting Policies (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Accounting Policies (Textual) [Abstract] | ||
Inventories valued using LIFO method (percent) | 51.00% | |
FIFO method value of inventory in excess of reported | $ 353 | $ 311 |
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] | 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, 2021 | Apr. 30, 2020 | |
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, 2021 | Apr. 30, 2020 | |
Revenue recognition policy [Abstract] | ||
Advertising Cost, Expense Method [Fixed List] | Expensed first time advertising takes place | Expensed first time advertising takes place |
Balance Sheet Information (Deta
Balance Sheet Information (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Other current assets: | ||
Prepaid taxes | $ 170 | $ 195 |
Other | 93 | 140 |
Other current assets | 263 | 335 |
Property, plant, and equipment: | ||
Land | 82 | 82 |
Buildings | 659 | 652 |
Equipment | 833 | 814 |
Construction in process | 50 | 41 |
Property, plant and equipment, gross | 1,624 | 1,589 |
Less accumulated depreciation | 792 | 741 |
Property, plant, and equipment, net | 832 | 848 |
Accounts payable and accrued expenses: | ||
Accounts payable, trade | 172 | 131 |
Accrued expenses: | ||
Advertising, promotion, and discounts | 202 | 135 |
Compensation and commissions | 96 | 71 |
Excise and other non-income taxes | 70 | 80 |
Other | 139 | 100 |
Accrued expenses | 507 | 386 |
Accounts payable and accrued expenses | 679 | 517 |
Accumulated other comprehensive income (loss), net of tax: | ||
Currency translation adjustments | (179) | (302) |
Cash flow hedge adjustments | (16) | 60 |
Postretirement benefits adjustments | (227) | (305) |
Accumulated other comprehensive income (loss), net of tax: | $ (422) | $ (547) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 903 | $ 827 | $ 835 |
Share data (in thousands): | |||
Basic average common shares outstanding (shares) | 478,527 | 477,765 | 478,956 |
Dilutive effect of stock-based awards (shares) | 2,150 | 2,644 | 3,111 |
Diluted average common shares outstanding (shares) | 480,677 | 480,409 | 482,067 |
Basic earnings per share (dollars per share) | $ 1.89 | $ 1.73 | $ 1.74 |
Diluted earnings per share (dollars per share) | $ 1.88 | $ 1.72 | $ 1.73 |
Antidilutive common stock-based awards excluded from calculation of diluted earnings per share (shares) | 234 | 301 | 447 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 756 | $ 753 |
Sale of business | (4) | |
Acquisition of business | 8 | 11 |
Foreign currency translation adjustment | 19 | (8) |
Impairment | 0 | |
Ending balance | 779 | 756 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 635 | 645 |
Sale of business | (1) | |
Acquisition of business | 8 | 12 |
Foreign currency translation adjustment | 34 | (9) |
Impairment | (13) | |
Ending balance | $ 676 | $ 635 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2020 | Apr. 30, 2021 | Apr. 30, 2019 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 13 | ||
Intangible Assets, Net (Excluding Goodwill) | 635 | $ 676 | $ 645 |
Chambord [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 104 | $ 104 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |
Total purchase obligation, 2022 | $ 10 |
Total purchase obligation, 2023 | 4 |
Total purchase obligation, 2024 | $ 3 |
Agave [Member] | |
Commitments (Textual) [Abstract] | |
Agave purchase contract, period (years) | 10 years |
Total obligations | $ 38 |
Commitments and Contingencies_2
Commitments and Contingencies Contingencies (Details) £ in Millions | Apr. 30, 2021GBP (£) |
Loss Contingencies [Line Items] | |
Loss Contingency, Amount Sought by Counterparty | £ 49 |
Loss Contingency, Amount Withheld by Counterparty | £ 50 |
Commitments and Contingencies G
Commitments and Contingencies Guaranty (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Concentration Risk [Line Items] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 753 | $ 570 |
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 | $ 7 |
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, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2021EUR (€) | Apr. 30, 2021GBP (£) | Apr. 30, 2020EUR (€) | Apr. 30, 2020GBP (£) | |
Debt Instrument [Line Items] | ||||||
Total long term debt | $ 2,354 | $ 2,269 | ||||
Total Long term debt excluding current portion | 2,354 | 2,269 | ||||
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 | $ 298 | $ 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 | $ 362 | $ 324 | ||||
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 | $ 415 | $ 369 | ||||
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 | $ 294 | ||||
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 | $ 488 |
Debt and Credit Facilities (Tex
Debt and Credit Facilities (Textual) (Details) $ in Millions | Apr. 30, 2021USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2022 | $ 0 |
2023 | 250 |
2024 | 0 |
2025 | 300 |
2026 | 0 |
After 2026 | $ 1,832 |
Debt and Credit Facilities Shor
Debt and Credit Facilities Short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 205 | $ 333 |
Commercial Paper | $ 195 | $ 333 |
Commercial Paper, Weighted Average Interest Rate, at Point in Time | 0.16% | 1.29% |
Commercial Paper Borrowings, Average Remaining Maturity | 24 days | 73 days |
Debt and Credit Facilities Cred
Debt and Credit Facilities Credit Facilities (Details) | Apr. 30, 2021USD ($) |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Class of Stock [Line Items] | |||
Beginning balance | 478,209 | 477,172 | 481,001 |
Acquisition of treasury stock | 0 | (16) | (4,357) |
Stock issued under compensation plans | 520 | 1,053 | 528 |
Ending balance | 478,729 | 478,209 | 477,172 |
Common stock, Class A, voting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 169,040 | 168,999 | 169,062 |
Acquisition of treasury stock | 0 | (13) | (145) |
Stock issued under compensation plans | 70 | 54 | 82 |
Ending balance | 169,110 | 169,040 | 168,999 |
Common Stock, Class B, nonvoting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 309,169 | 308,173 | 311,939 |
Acquisition of treasury stock | 0 | (3) | (4,212) |
Stock issued under compensation plans | 450 | 999 | 446 |
Ending balance | 309,619 | 309,169 | 308,173 |
Net Sales by Geography (Details
Net Sales by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,461 | $ 3,363 | $ 3,324 | |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,748 | 1,690 | 1,563 | |
Developed International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 1,014 | 901 | 917 |
Emerging [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 578 | 572 | 597 |
Travel Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 63 | 125 | 140 |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | $ 58 | $ 75 | $ 107 |
[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 Australia, Germany, the United Kingdom, France, 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, Brazil, 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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 3,461 | $ 3,363 | $ 3,324 | |
Whiskey [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 2,744 | 2,671 | 2,595 |
Tequila [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 299 | 275 | 263 |
Wine [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 206 | 186 | 187 |
Vodka [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | 90 | 109 | 126 |
Rest of portfolio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 64 | 47 | 46 | |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [5] | $ 58 | $ 75 | $ 107 |
[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, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers' Craft. Also includes the Early Times, Canadian Mist, and Collingwood brands, which we divested on July 31, 2020 (Note 12). | |||
[2] | Includes el Jimador, the Herradura family of brands, 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_3
Pension and Other Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Pension Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | $ 1,005 | $ 908 | |
Service cost | 26 | 24 | $ 24 |
Interest cost | 25 | 31 | 34 |
Net actuarial loss (gain) | 9 | 108 | |
Retiree contributions | 0 | 0 | |
Benefits paid | (53) | (66) | |
Obligation at end of year | 1,012 | 1,005 | 908 |
Medical and Life Insurance Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | 51 | 50 | |
Service cost | 1 | 1 | 1 |
Interest cost | 1 | 1 | 2 |
Net actuarial loss (gain) | (1) | 2 | |
Retiree contributions | 1 | 1 | |
Benefits paid | (4) | (4) | |
Obligation at end of year | $ 49 | $ 51 | $ 50 |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Apr. 30, 2021USD ($) |
Pension Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2022 | $ 69 |
2023 | 66 |
2024 | 65 |
2025 | 64 |
2026 | 66 |
2027 – 2031 | 327 |
Medical and Life Insurance Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2022 | 3 |
2023 | 3 |
2024 | 3 |
2025 | 3 |
2026 | 3 |
2027 – 2031 | $ 15 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits Target asset allocation (Details) | Apr. 30, 2021 |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | $ 836 | $ 749 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 103 | 80 | ||
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 | 2 | $ 3 | |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 105 | 82 | ||
Equity Securities [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 103 | 80 | ||
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 | 103 | 80 | ||
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 | 2 | |
Limited Partnership Interests [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 2 | 2 | |
Limited Partnership Interests [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [2] | 35 | 32 | |
Equity Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 266 | 193 | |
Fixed Income Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 357 | 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] | 65 | 68 | |
Short-term Investments [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | $ 8 | $ 4 | |
[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 2021, 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, 2021 | Apr. 30, 2020 | |
Change in fair value of Level 3 Assets | ||
Beginning balance | $ 749 | |
Ending balance | 836 | $ 749 |
Level 3 [Member] | ||
Change in fair value of Level 3 Assets | ||
Beginning balance | 2 | 3 |
Return on assets held at end of year | 1 | |
Sales and settlements | (1) | (1) |
Ending balance | $ 2 | $ 2 |
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, 2021 | Apr. 30, 2020 | |
Change in fair value of pension plan Assets | ||
Beginning balance | $ 749 | |
Ending balance | 836 | $ 749 |
Pension Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 749 | 754 |
Actual return on assets | 124 | 39 |
Retiree contributions | 0 | 0 |
Company contributions | 16 | 22 |
Benefits paid | (53) | (66) |
Ending balance | 836 | 749 |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Funded Status of Plans | |||
Assets | $ 836 | $ 749 | |
Pension Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 836 | 749 | $ 754 |
Obligations | (1,012) | (1,005) | (908) |
Funded status | (176) | (256) | |
Medical and Life Insurance Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 0 | 0 | 0 |
Obligations | (49) | (51) | $ (50) |
Funded status | $ (49) | $ (51) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits (Funded Status Recorded on Accompanying Balance Sheets) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accrued postretirement benefits | $ (219) | $ (297) |
Pension Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Other assets | 4 | 0 |
Accounts payable and accrued expenses | (7) | (7) |
Accrued postretirement benefits | (173) | (249) |
Net liability | (176) | (256) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (298) | (394) |
Prior service credit (cost) | (5) | (6) |
Total | (303) | (400) |
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 | (46) | (48) |
Net liability | (49) | (51) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (9) | (11) |
Prior service credit (cost) | 4 | 7 |
Total | $ (5) | $ (4) |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits (Plans with ABO in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total, Plan Assets | $ 836 | $ 749 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | (155) | (277) | |
Defined Benefit Plan Pension Plans With Assets In Excess Of Accumulated Benefit Obligation Aggregate Accumulated Benefit Obligation | (748) | (613) | |
Defined Benefit Plan, Accumulated Benefit Obligation | (903) | (890) | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 0 | 124 | |
Defined Benefit Plan Pension Plans With Assets In Excess Of Accumulated Benefit Obligation Aggregate Fair Value Of Plan Assets | 836 | 625 | |
Total, Plan Assets | $ 836 | $ 749 | $ 754 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits (Plans with PBO in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total, Plan Assets | $ 836 | $ 749 | |
Pension Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Projected Benefit Obligation | (941) | (1,005) | |
Defined Benefit Plan, Pension Plan with Plan Assets in Excess of Projected Benefit Obligation, Projected Benefit Obligation | (71) | 0 | |
Defined Benefit Plan, Benefit Obligation | (1,012) | (1,005) | $ (908) |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 761 | 749 | |
Defined Benefit Plan, Pension Plan with Plan Assets in Excess of Projected Benefit Obligation, Plan Assets | 75 | 0 | |
Total, Plan Assets | $ 836 | $ 749 | $ 754 |
Pension and Other Postretire_13
Pension and Other Postretirement Benefits (Schedule of Components of Pension Expense) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Pension Expense | |||
Service cost | $ 26 | $ 24 | $ 24 |
Interest cost | 25 | 31 | 34 |
Expected return on assets | (46) | (46) | (47) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Amortization of net actuarial loss (gain) | 27 | 19 | 19 |
Settlement charge | 0 | 1 | 15 |
Net cost | $ 33 | $ 30 | $ 46 |
Pension and Other Postretire_14
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Postretirement medical and life insurance benefit expense | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 1 | 1 | 2 |
Amortization of prior service cost (credit) | (3) | (3) | (3) |
Amortization of net actuarial loss (gain) | 1 | 1 | 1 |
Net cost | $ 0 | $ 0 | $ 1 |
Pension and Other Postretire_15
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Pension Benefits [Member] | |||
Amounts recognized in OCI | |||
Net actuarial gain (loss) | $ 69 | $ (115) | $ (41) |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | 1 | 1 | 1 |
Net actuarial loss (gain) | 27 | 20 | 34 |
Net amount recognized in OCI | 97 | (94) | (6) |
Medical and Life Insurance Benefits [Member] | |||
Amounts recognized in OCI | |||
Net actuarial gain (loss) | 1 | (2) | 0 |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | (3) | (3) | (3) |
Net actuarial loss (gain) | 1 | 1 | 1 |
Net amount recognized in OCI | $ (1) | $ (4) | $ (2) |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits (Assumptions and SensItivity) (Details) | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Pension Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 3.16% | 3.28% | |
Rate of salary increase (percent) | 4.00% | 4.00% | |
Interest crediting rate (percent) | 3.06% | 3.07% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 3.49% | 4.17% | 4.30% |
Discount rate for interest cost (percent) | 2.56% | 3.57% | 3.93% |
Rate of salary increase (percent) | 4.00% | 4.00% | 4.00% |
Interest crediting rate (percent) | 3.07% | 3.07% | 3.18% |
Expected return on plan assets (percent) | 6.50% | 6.50% | 6.50% |
Medical and Life Insurance Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 3.08% | 3.17% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 3.59% | 4.24% | 4.34% |
Discount rate for interest cost (percent) | 2.47% | 3.53% | 3.90% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next year (percent) | 6.60% | 6.90% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (percent) | 4.50% | 5.00% |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits Sponsor Location (Details) | Apr. 30, 2021 | Apr. 30, 2020 |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Sponsor Location [Extensible List] | United States | United States |
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] | United States | United States |
Pension and Other Postretire_18
Pension and Other Postretirement Benefits (Textual) (Details) $ in Millions | Apr. 30, 2021USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2022 | $ 17 |
Medical and Life Insurance Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2022 | $ 3 |
Pension and Other Postretire_19
Pension and Other Postretirement Benefits (Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Retirement Benefits [Abstract] | |||
Expense for matching contributions | $ 12 | $ 12 | $ 12 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) shares in Thousands | Apr. 30, 2021shares |
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) | 12,961 |
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, 2021USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding, beginning balance (shares) | shares | 4,930 |
SSARs granted (shares) | shares | 448 |
SSARs exercised (shares) | shares | (1,064) |
SSARs forfeited or expired (shares) | shares | (3) |
Outstanding, ending balance (shares) | shares | 4,311 |
SSARs exercisable (shares) | shares | 2,805 |
Weighted Average Exercise Price [Roll Forward] | |
Weighted average exercise price, beginning (dollars per share) | $ / shares | $ 38.19 |
Weighted average exercise price, grants in period (dollars per share) | $ / shares | 69.21 |
Weighted average exercise price, exercises in period (dollars per share) | $ / shares | 29.53 |
Weighted average exercise price, forfeitures and expirations in period (dollars per share) | $ / shares | 53.40 |
Weighted average exercise price, ending (dollars per share) | $ / shares | 43.54 |
Weighted average exercise price, exercisable (dollars per share) | $ / shares | $ 35.38 |
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 | $ | $ 141 |
SSARs exercisable, Aggregate Intrinsic Value | $ | $ 115 |
Stock-Based Compensation SSAR_2
Stock-Based Compensation SSARs Fair Value Assumptions (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gran-date fair value (dollars per share) | $ 14.61 | $ 11.13 | $ 11.06 |
Expected term (years) | 7 years | 7 years | 7 years |
Risk-free interest rate (percent) | 0.40% | 1.90% | 2.90% |
Expected volatility (percent) | 23.30% | 19.30% | 17.10% |
Expected dividend yield (percent) | 1.00% | 1.20% | 1.40% |
Stock-Based Compensation PBRSUs
Stock-Based Compensation PBRSUs (Details) - Performance Based Restricted Stock Units (PBRSUs) [Member] - $ / shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Number of PBRSUs [Roll Forward] | |||
Outstanding, beginning balance (shares) | 289 | ||
PBRSUs granted (shares) | 82 | ||
PBRSUs converted to common shares (shares) | (116) | ||
PBRSUs forfeited (shares) | (1) | ||
Outstanding, ending balance (shares) | 254 | 289 | |
Weighted Average Fair Value at Grant Date [Roll Forward] | |||
Weighted Average Fair Value at Grant Date, Outstanding, Beginning (dollars per share) | $ 52.44 | ||
Weighted Average Fair Value at Grant Date, Granted (dollars per share) | 73.68 | $ 56.99 | $ 55.29 |
Weighted Average Fair Value at Grant Date, Converted to Common Shares (dollars per share) | 46.94 | ||
Weighted Average Fair Value at Grant Date, Forfeited (dollars per share) | 64.67 | ||
Weighted Average Fair Value at Grant Date, Outstanding, Ending (dollars per share) | $ 61.76 | $ 52.44 |
Stock-Based Compensation PBRS_2
Stock-Based Compensation PBRSUs Fair Value Assumptions (Details) - Performance Based Restricted Stock Units (PBRSUs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gran-date fair value (dollars per share) | $ 73.68 | $ 56.99 | $ 55.29 |
Risk-free interest rate (percent) | 0.10% | 1.80% | 2.70% |
Expected volatility (percent) | 29.90% | 21.80% | 20.80% |
Expected dividend yield (percent) | 1.10% | 1.20% | 1.20% |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
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 | 241,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 215,000 | ||
Gran-date fair value (dollars per share) | $ 63.01 | $ 53.34 | $ 54.20 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Pre-tax compensation expense | $ 12 | $ 11 | $ 14 | |
Deferred tax benefit | 2 | 2 | 2 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 8 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 7 months 6 days | |||
Intrinsic value of SSARs exercised | $ 47 | 89 | 31 | |
Fair value of shares vested | [1] | 13 | 14 | 20 |
Excess tax benefit from exercise / vesting of awards | $ 10 | $ 20 | 7 | |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Domestic and Foreign components of our Income before Income taxes | |||
United States | $ 832 | $ 849 | $ 863 |
Foreign | 249 | 160 | 179 |
Income before income taxes | $ 1,081 | $ 1,009 | $ 1,042 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Current: | |||
U.S. federal | $ 146 | $ 95 | $ 107 |
Foreign | 50 | 29 | 34 |
State and local | 35 | 19 | 28 |
Current income tax expense | 231 | 143 | 169 |
Deferred: | |||
U.S. federal | (4) | 34 | 37 |
Foreign | (47) | 7 | 4 |
State and local | (2) | (2) | (3) |
Deferred income taxes expense | (53) | 39 | 38 |
Total income tax expense | $ 178 | $ 182 | $ 207 |
Income Taxes (Intercompany Tran
Income Taxes (Intercompany Transfer of Assets) (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2021USD ($) | |
Income Tax Disclosure [Abstract] | |
Effective Income Tax Rate Reconciliation, Disposition of Asset, Amount | $ 43 |
Income Taxes (Tax Act) (Details
Income Taxes (Tax Act) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2017 | |
Tax Act [Abstract] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 35.00% |
Income Tax Benefit from Reduction in Federal Statutory Income Tax Rate | $ 115 | |||
Tax Cuts and Jobs Act, Measurement Period Adjustment, Income Tax Expense (Benefit) | $ 4 | |||
Effective Income Tax Rate Reconciliation, Tax Cuts and Jobs Act, Amount | $ 9 | $ 11 |
Income Taxes (Earnings of Forei
Income Taxes (Earnings of Foreign Subsidiaries) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2020 | Apr. 30, 2021 | |
Income Tax Disclosure [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 1,279 | $ 1,542 |
Foreign Earnings Repatriated | 15 | |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | 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% | 21.00% | 35.00% |
State taxes, net of U.S. federal tax benefit | 2.40% | 1.70% | 2.10% | |
Income taxed at other than U.S. federal statutory rate | 0.30% | 0.00% | (0.10%) | |
Tax benefit from foreign-derived sales | (1.70%) | (2.00%) | (1.70%) | |
Adjustments related to prior years | (0.20%) | (1.10%) | (1.20%) | |
Excess tax benefits from stock-based awards | (1.00%) | (2.00%) | (0.70%) | |
Impact of Tax Act | 0.00% | 0.00% | (0.40%) | |
Intercompany transfer of assets | (4.00%) | 0.00% | 0.00% | |
Other, net | (0.30%) | 0.40% | 0.80% | |
Effective rate | 16.50% | 18.00% | 19.80% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Deferred tax assets: | ||
Postretirement and other benefits | $ 90 | $ 110 |
Accrued liabilities and other | 47 | 23 |
Inventories | 30 | 26 |
Lease liabilities | 17 | 14 |
Derivative instruments | 5 | 0 |
Loss and credit carryforwards | 63 | 57 |
Valuation allowance | (20) | (22) |
Total deferred tax assets, net | 232 | 208 |
Deferred tax liabilities: | ||
Intangible assets | (214) | (233) |
Property, plant, and equipment | (89) | (90) |
Right-of-use assets | (17) | (13) |
Derivative instruments | 0 | (18) |
Other | (11) | (16) |
Total deferred tax liabilities | (331) | (370) |
Net deferred tax liability | $ (99) | $ (162) |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 | ||
Operating Loss Carryforwards [Line Items] | ||||
Loss Carryforwards, Other | $ 64 | [1] | $ 50 | |
Deferred Tax Assets, Other Loss Carryforwards | 12 | 9 | ||
Other Loss Carryforwards, Valuation Allowance | (10) | (7) | ||
Loss Carryforwards | 327 | 289 | ||
Deferred Tax Assets, Loss and Credit Carryforwards | 63 | 57 | ||
Valuation Allowance | (20) | (22) | ||
State [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss and Credit Carryforwards | 91 | 63 | ||
Deferred Tax Assets, Operating Loss and Credit Carryforwards | 13 | [2] | 9 | |
Operating Loss and Credit Carryforwards, Valuation Allowance | 5 | 0 | ||
Not Subject to Expiration [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Deferred Tax Assets, Operating Loss and Credit Carryforwards | [2] | 5 | ||
Loss Carryforwards, Other | 29 | |||
Not Subject to Expiration [Member] | Foreign Tax Authority [Member] | Brazil [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 30 | 31 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 10 | 10 | ||
Operating Loss Carryforwards, Valuation Allowance | 0 | (10) | ||
Not Subject to Expiration [Member] | Foreign Tax Authority [Member] | United Kingdom | ||||
Operating Loss Carryforwards [Line Items] | ||||
Non-trading Loss Carryforwards | 29 | 26 | ||
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] | 8 | ||
Loss Carryforwards, Other | 35 | |||
Subject to Expiration [Member] | Foreign Tax Authority [Member] | FINLAND | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating Loss Carryforwards | 113 | 119 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 23 | 24 | ||
Operating Loss Carryforwards, Valuation Allowance | $ 0 | $ 0 | ||
[1] | As of April 30, 2021, the gross amount includes loss carryforwards of $29 that do not expire and $35 that expire in varying amounts over the next 18 years. | |||
[2] | As of April 30, 2021, the net deferred tax asset amount includes credit carryforwards of $5 that do not expire and loss and credit carryforwards of $8 that expire in varying amounts from 2023 to 2041. |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 11 | $ 11 | $ 11 |
Additions for tax positions provided in prior periods | 1 | 2 | 1 |
Additions for tax positions provided in current period | 2 | 0 | 1 |
Decreases for tax positions provided in prior years | 0 | (1) | (2) |
Settlements of tax positions in the current period | (1) | (1) | 0 |
Lapse of statutes of limitations | (1) | 0 | 0 |
Unrecognized tax benefits at end of year | 12 | $ 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 |
Income Taxes (Cash Paid for Tax
Income Taxes (Cash Paid for Taxes) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income Taxes Paid, Net | $ 204 | $ 143 | $ 201 |
Increase in cash paid for income taxes | $ 61 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Dec. 01, 2020 | Jul. 03, 2019 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 779 | $ 756 | $ 753 | ||
The 86 Company [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
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 | ||||
Part Time Rangers Holdings Limited | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | ||||
Payments to Acquire Businesses, Gross | $ 14 | ||||
Goodwill | 8 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Indefinite-Lived Intangible Assets | 8 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 2 |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Jul. 31, 2020 | |
Acquisitions and Divestiture [Abstract] | ||||
Proceeds from Divestiture of Businesses | $ 177 | $ 0 | $ 0 | |
Disposal Group, Including Discontinued Operation, Assets | $ 50 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 127 | $ 0 | $ 0 |
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, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract] | |||
Sales | $ 4,526 | $ 4,306 | $ 4,276 |
Other income (expense), net | 15 | (11) | 15 |
Foreign Currency Denominated Debt [Member] | |||
Foreign currency-denominated debt designated as net investment hedge: [Abstract] | |||
Net gain (loss) recognized in AOCI | (73) | 22 | 45 |
Currency derivatives [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) recognized in AOCI | (78) | 61 | 69 |
Currency derivatives [Member] | Sales [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) reclassified from AOCI into earnings | 21 | 23 | 6 |
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | (13) | 4 | 6 |
Currency derivatives [Member] | Other Income (Expense), Net [Member] | |||
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | $ 17 | $ (14) | $ 6 |
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, 2021 | Apr. 30, 2020 |
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | $ 10 | $ 79 |
Derivative Liability, Fair Value, Gross Liability | (38) | (3) |
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 | 4 | 49 |
Derivative Liability, Fair Value, Gross Liability | (2) | (1) |
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 | 0 | 30 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
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 | 4 | 0 |
Derivative Liability, Fair Value, Gross Liability | (18) | 0 |
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 | 1 | 0 |
Derivative Liability, Fair Value, Gross Liability | (18) | 0 |
Currency derivatives [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 1 | |
Derivative Liability, Fair Value, Gross Liability | $ 0 | |
Currency derivatives [Member] | Not designated as hedges [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Gross Liability | $ (2) |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
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 | $ (12) | |
Derivative, Net Liability Position, Aggregate Fair Value | 30 | $ 2 |
Foreign Exchange Contract [Member] | ||
Derivative Instruments and Hedging Activities [Line Items] | ||
Derivative, Notional Amount | 1,218 | 1,026 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments and Hedging Activities [Line Items] | ||
Debt Instrument, Face Amount | $ 680 | $ 613 |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 10 | $ 79 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (7) | (1) |
Net Amount of Derivative Assets Presented in Balance Sheet | 3 | 78 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | (1) | 0 |
Net Amount of Derivative Assets | 2 | 78 |
Gross Amount of Derivative Liabilities | (38) | (3) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 7 | 1 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | (31) | (2) |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 1 | 0 |
Net Amount of Derivative Liabilities | $ (30) | $ (2) |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | Apr. 30, 2018 |
Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 1,150 | $ 675 | $ 307 | $ 239 |
Cash and cash equivalents, Fair Value | 1,150 | 675 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 205 | 333 | ||
Short-term borrowings, Fair Value | 205 | 333 | ||
Long-term debt, Carrying Amount | 2,354 | 2,269 | ||
Fair Value, Inputs, Level 2 [Member] | ||||
Assets: | ||||
Currency derivatives, Fair Value | 3 | 78 | ||
Liabilities: | ||||
Currency derivatives, Fair Value | 31 | 2 | ||
Long-term debt, Fair Value | 2,663 | 2,486 | ||
Foreign Exchange Contract [Member] | ||||
Assets: | ||||
Currency derivatives, Carrying Amount | 3 | 78 | ||
Liabilities: | ||||
Currency derivatives, Carrying Amount | $ 31 | $ 2 |
Leases ROU Assets and Liabiliti
Leases ROU Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Leases [Abstract] | ||
Right-of-use assets | $ 67 | $ 51 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | us-gaap:OtherAssetsNoncurrent |
Lease Liabilities: | ||
Current | $ 20 | $ 16 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent | us-gaap:AccountsPayableAndOtherAccruedLiabilitiesCurrent |
Non-current | $ 49 | $ 37 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | us-gaap:OtherLiabilitiesNoncurrent |
Total | $ 69 | $ 53 |
Weighted-average discount rate | 1.90% | 3.00% |
Weighted-average remaining term | 5 years 3 months 18 days | 5 years 2 months 12 days |
Leases Lease Cost and Other Inf
Leases Lease Cost and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | ||
Leases [Abstract] | |||
Total lease cost | [1] | $ 41 | $ 29 |
Cash paid for amounts included in the measurement of lease liabilities | [2] | 26 | 21 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 25 | $ 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 Rent Expense for Operati
Leases Rent Expense for Operating Leases Under ASC 840 (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating Leases, Rent Expense | $ 28 |
Leases Future Operating Lease P
Leases Future Operating Lease Payments (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Leases [Abstract] | ||
2022 | $ 21 | |
2023 | 16 | |
2024 | 12 | |
2025 | 7 | |
2026 | 5 | |
Thereafter | 12 | |
Total lease payments | 73 | |
Less: Present value discount | (4) | |
Lease liabilities | $ 69 | $ 53 |
Other Comprehensive Income Sche
Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | ||
Before Tax: | ||||
Net other comprehensive income (loss) | $ 108 | $ (151) | $ 39 | |
Tax Effect: | ||||
Net other comprehensive income (loss) | 17 | 10 | (24) | |
Net of Tax: | ||||
Net other comprehensive income (loss) | 125 | (141) | 15 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 106 | (88) | (16) | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 106 | (88) | (16) | |
Tax Effect: | ||||
Net gain (loss) | 17 | (6) | (11) | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 17 | (6) | (11) | |
Net of Tax: | ||||
Net gain (loss) | 123 | (94) | (27) | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 123 | (94) | (27) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | (78) | 61 | 69 | |
Reclassification to earnings | [1] | (21) | (23) | (6) |
Net other comprehensive income (loss) | (99) | 38 | 63 | |
Tax Effect: | ||||
Net gain (loss) | 17 | (14) | (16) | |
Reclassification to earnings | 6 | 6 | 1 | |
Net other comprehensive income (loss) | 23 | (8) | (15) | |
Net of Tax: | ||||
Net gain (loss) | (61) | 47 | 53 | |
Reclassification to earnings | (15) | (17) | (5) | |
Net other comprehensive income (loss) | (76) | 30 | 48 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 71 | (119) | (41) | |
Reclassification to earnings | [2] | 30 | 18 | 33 |
Net other comprehensive income (loss) | 101 | (101) | (8) | |
Tax Effect: | ||||
Net gain (loss) | (16) | 28 | 10 | |
Reclassification to earnings | (7) | (4) | (8) | |
Net other comprehensive income (loss) | (23) | 24 | 2 | |
Net of Tax: | ||||
Net gain (loss) | 55 | (91) | (31) | |
Reclassification to earnings | 23 | 14 | 25 | |
Net other comprehensive income (loss) | 78 | $ (77) | $ (6) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Gain on sale of business | ||||
Before Tax: | ||||
Reclassification to earnings | $ 4 | |||
[1] | Pre-tax amount is classified as sales in the accompanying consolidated statements of operations. | |||
[2] | For the year ended April 30, 2021, $4 of the pre-tax amount of $30 is classified in gain on sale of business in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as non-operating postretirement expense. |
Supplemental Information (Net S
Supplemental Information (Net Sales by Geography) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 3,461 | $ 3,363 | $ 3,324 |
United States | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 1,748 | 1,690 | 1,563 |
Australia | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 209 | 155 | 164 |
Germany | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 206 | 171 | 159 |
United Kingdom | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 205 | 180 | 199 |
Mexico | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 150 | 155 | 166 |
Other Countries | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 943 | $ 1,012 | $ 1,073 |
Supplemental Information Major
Supplemental Information Major Customers (Details) - Revenue from Contract with Customer, Product and Service Benchmark [Member] | 12 Months Ended | |
Apr. 30, 2021 | Apr. 30, 2020 | |
Largest Customer [Member] | ||
Percentage of Net Sales from Major Customers [Abstract] | ||
Concentration Risk, Percentage | 19.00% | 18.00% |
Second Largest Customer [Member] | ||
Percentage of Net Sales from Major Customers [Abstract] | ||
Concentration Risk, Percentage | 13.00% | 13.00% |
Supplemental Information (PP&E)
Supplemental Information (PP&E) (Details) - USD ($) $ in Millions | Apr. 30, 2021 | Apr. 30, 2020 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 832 | $ 848 |
Non-US [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 107 | $ 105 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |||
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 | $ 11 | $ 7 | $ 7 | ||
Additions Charged to Costs and Expenses | 0 | 4 | 1 | ||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 4 | [1] | 0 | 1 | [1] |
Balance at End of Period | 7 | 11 | 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 | 22 | 25 | 29 | ||
Additions Charged to Costs and Expenses | 10 | 2 | 1 | ||
Additions Charged to Other Accounts | 0 | 0 | 1 | ||
Deductions | 12 | 5 | 6 | ||
Balance at End of Period | $ 20 | $ 22 | $ 25 | ||
[1] | Doubtful accounts written off, net of recoveries. |