Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2023 | Jun. 12, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Apr. 30, 2023 | |
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 Registrant’s Proxy Statement for use in connection with the Annual Meeting of Stockholders to be held July 27, 2023, are incorporated by reference into Part III of this report. | |
Entity Central Index Key | 0000014693 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
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 | 169,254,084 | |
Common Stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock (nonvoting), $0.15 par value | |
Trading Symbol | BFB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 310,110,423 | |
1.20% senior notes, due July 7, 2026 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.200% Notes due 2026 | |
Trading Symbol | BF26 | |
Security Exchange Name | NYSE | |
2.60% senior notes, due July 7, 2028 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.600% Notes due 2028 | |
Trading Symbol | BF28 | |
Security Exchange Name | NYSE |
Audit Information
Audit Information | 12 Months Ended |
Apr. 30, 2023 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Louisville, Kentucky |
Auditor Firm ID | 42 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Income Statement [Abstract] | |||
Sales | $ 5,372 | $ 5,081 | $ 4,526 |
Excise taxes | 1,144 | 1,148 | 1,065 |
Net sales | 4,228 | 3,933 | 3,461 |
Cost of sales | 1,734 | 1,542 | 1,367 |
Gross profit | 2,494 | 2,391 | 2,094 |
Advertising expenses | 506 | 438 | 399 |
Selling, general, and administrative expenses | 742 | 690 | 671 |
Gain on sale of business | 0 | 0 | (127) |
Other expense (income), net | 119 | 59 | (15) |
Operating income | 1,127 | 1,204 | 1,166 |
Non-operating postretirement expense | 29 | 13 | 6 |
Interest income | (9) | (5) | (2) |
Interest expense | 90 | 82 | 81 |
Income before income taxes | 1,017 | 1,114 | 1,081 |
Income taxes | 234 | 276 | 178 |
Net income | $ 783 | $ 838 | $ 903 |
Earnings per share: | |||
Basic (dollars per share) | $ 1.63 | $ 1.75 | $ 1.89 |
Diluted (dollars per share) | $ 1.63 | $ 1.74 | $ 1.88 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 783 | $ 838 | $ 903 |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments | 135 | (60) | 123 |
Cash flow hedge adjustments | (27) | 53 | (76) |
Postretirement benefits adjustments | 9 | 77 | 78 |
Net other comprehensive income (loss) | 117 | 70 | 125 |
Comprehensive income | $ 900 | $ 908 | $ 1,028 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 374 | $ 868 |
Accounts receivable, net | 855 | 813 |
Inventories: | ||
Barreled whiskey | 1,262 | 1,155 |
Finished goods | 509 | 312 |
Work in process | 321 | 225 |
Raw materials and supplies | 191 | 126 |
Total inventories | 2,283 | 1,818 |
Other current assets | 289 | 277 |
Total current assets | 3,801 | 3,776 |
Property, plant, and equipment, net | 1,031 | 875 |
Goodwill | 1,457 | 761 |
Other intangible assets | 1,164 | 586 |
Deferred tax assets | 66 | 74 |
Other assets | 258 | 301 |
Total assets | 7,777 | 6,373 |
Liabilities | ||
Accounts payable and accrued expenses | 827 | 703 |
Accrued income taxes | 22 | 81 |
Short-term borrowings | 235 | 0 |
Current portion of long-term debt | 0 | 250 |
Total current liabilities | 1,084 | 1,034 |
Long-term debt | 2,678 | 2,019 |
Deferred tax liabilities | 323 | 219 |
Accrued pension and other postretirement benefits | 171 | 183 |
Other liabilities | 253 | 181 |
Total liabilities | 4,509 | 3,636 |
Commitments and contingencies | ||
Stockholders’ Equity | ||
Additional paid-in capital | 1 | 0 |
Retained earnings | 3,643 | 3,242 |
Accumulated other comprehensive income (loss), net of tax | (235) | (352) |
Treasury stock, at cost (5,511,000 and 5,215,000 shares in 2022 and 2023, respectively) | (213) | (225) |
Total stockholders' equity | 3,268 | 2,737 |
Total liabilities and stockholders' equity | $ 7,777 | $ 6,373 |
Parenthetical Information [Abstract] | ||
Treasury stock, shares | 5,215,000 | 5,511,000 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 783 | $ 838 | $ 903 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Gain on sale of business | 0 | 0 | (127) |
Asset impairment charges | 96 | 61 | 0 |
Depreciation and amortization | 80 | 79 | 77 |
Stock-based compensation expense | 18 | 15 | 12 |
Deferred income tax provision (benefit) | (3) | (11) | (53) |
Other, net | 18 | 31 | (23) |
Changes in assets and liabilities, net of business acquisitions and dispositions: | |||
Accounts receivable | (21) | (77) | (150) |
Inventories | (403) | (93) | (37) |
Other current assets | 4 | 15 | 31 |
Accounts payable and accrued expenses | 77 | 37 | 137 |
Accrued income taxes | (57) | 47 | 8 |
Other operating assets and liabilities | 48 | (6) | 39 |
Cash provided by operating activities | 640 | 936 | 817 |
Cash flows from investing activities: | |||
Proceeds from sale of business | 0 | 0 | 177 |
Business acquisitions, net of cash acquired | (1,195) | 0 | (14) |
Additions to property, plant, and equipment | (183) | (138) | (62) |
Other, net | 23 | 11 | (3) |
Cash provided by (used for) investing activities | (1,355) | (127) | 98 |
Cash flows from financing activities: | |||
Proceeds from short-term borrowings, maturities greater than 90 days | 600 | 0 | 344 |
Repayments of short-term borrowings, maturities greater than 90 days | (600) | 0 | (516) |
Net change in other short-term borrowings | 234 | (196) | 46 |
Repayment of long-term debt | (250) | 0 | 0 |
Proceeds from long-term debt | 648 | 0 | 0 |
Dividends paid | (378) | (831) | (338) |
Other, net | (15) | (11) | (21) |
Cash provided by (used for) financing activities | 239 | (1,038) | (485) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (14) | (47) | 45 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (490) | (276) | 475 |
Cash, cash equivalents, and restricted cash at beginning of period | 874 | 1,150 | 675 |
Cash, cash equivalents, and restricted cash at end of period | 384 | 874 | 1,150 |
Less: Restricted cash (included in other current assets) at end of period | (10) | (6) | 0 |
Cash and cash equivalents at end of period | 374 | 868 | 1,150 |
Supplemental disclosure of cash paid for: | |||
Interest | 85 | 80 | 79 |
Income taxes | $ 278 | $ 226 | $ 204 |
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, 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) | |||||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 838 | 838 | |||||
Net other comprehensive income (loss) | 70 | 70 | |||||
Cash dividends | (831) | (831) | |||||
Stock-based compensation expense | 15 | 15 | |||||
Stock issued under compensation plans | 12 | 12 | |||||
Loss on issuance of treasury stock issued under compensation plans | (23) | (15) | (8) | ||||
Ending Balance at Apr. 30, 2022 | 2,737 | 25 | 47 | 0 | 3,242 | (352) | (225) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 783 | 783 | |||||
Net other comprehensive income (loss) | 117 | 117 | |||||
Cash dividends | (378) | (378) | |||||
Stock-based compensation expense | 18 | 18 | |||||
Stock issued under compensation plans | 12 | 12 | |||||
Loss on issuance of treasury stock issued under compensation plans | (21) | (17) | (4) | ||||
Ending Balance at Apr. 30, 2023 | $ 3,268 | $ 25 | $ 47 | $ 1 | $ 3,643 | $ (235) | $ (213) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (dollars per share) | $ 0.7880 | $ 1.7360 | $ 0.7076 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2023 | |
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 $13 and $7 at April 30, 2022 and 2023, respectively. Inventories. Inventories are valued at the lower of cost or net realizable value. Approximately 49% 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 $385 and $429 higher than reported at April 30, 2022 and 2023, 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. When we acquire a business, 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 estimate the fair value of a brand name using the relief-from-royalty 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, 2023 | |
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, 2022 2023 Other current assets: Prepaid taxes $ 155 $ 122 Other 122 167 $ 277 $ 289 Property, plant, and equipment: Land $ 86 $ 97 Buildings 660 717 Equipment 849 889 Construction in process 129 217 1,724 1,920 Less accumulated depreciation 849 889 $ 875 $ 1,031 Accounts payable and accrued expenses: Accounts payable, trade $ 218 $ 308 Accrued expenses: Advertising, promotion, and discounts 200 216 Compensation and commissions 99 106 Excise and other non-income taxes 74 76 Other 112 121 485 519 $ 703 $ 827 Other liabilities: Contingent consideration (Note 12) $ — $ 56 Other 181 197 $ 181 $ 253 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (239) $ (104) Cash flow hedge adjustments 37 10 Postretirement benefits adjustments (150) (141) $ (352) $ (235) |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2023 | |
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: 2021 2022 2023 Net income available to common stockholders $ 903 $ 838 $ 783 Share data (in thousands): Basic average common shares outstanding 478,527 478,879 479,155 Dilutive effect of stock-based awards 2,150 1,686 1,310 Diluted average common shares outstanding 480,677 480,565 480,465 Basic earnings per share $ 1.89 $ 1.75 $ 1.63 Diluted earnings per share $ 1.88 $ 1.74 $ 1.63 We excluded common stock-based awards for approximately 234,000 shares, 691,000 shares, and 1,107,000 shares from the calculation of diluted earnings per share for 2021, 2022, and 2023, 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, 2023 | |
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, 2021 $ 779 $ 676 Foreign currency translation adjustment (18) (38) Impairment — (52) Balance as of April 30, 2022 761 586 Acquisitions (Note 12) 652 619 Foreign currency translation adjustment 44 55 Impairment — (96) Balance as of April 30, 2023 $ 1,457 $ 1,164 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. During fiscal 2022, we recognized a non-cash impairment charge of $52 for the Finlandia brand name. The impairment reflected a decline in our long-term outlook for Finlandia due to our suspension of operations in Russia, a key market for the brand. During fiscal 2023, we recognized an additional non-cash impairment charge of $96 for the Finlandia brand name, largely reflecting the effects of higher discount rates and input costs on its valuation. The impairment charges are included in “other expense (income), net” in the accompanying consolidated statements of operations. As of April 30, 2023, the remaining carrying amount of the Finlandia brand name was $91. |
Contingencies
Contingencies | 12 Months Ended |
Apr. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesWe 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, 2023. |
Debt and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Apr. 30, 2023 | |
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, 2022 2023 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 250 $ — 3.50% senior notes, $300 principal amount, due April 15, 2025 298 299 1.20% senior notes, €300 principal amount, due July 7, 2026 315 330 2.60% senior notes, £300 principal amount, due July 7, 2028 374 375 4.75% senior notes, $650 principal amount, due April 15, 2033 — 642 4.00% senior notes, $300 principal amount, due April 15, 2038 295 295 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 489 489 2,269 2,678 Less current portion 250 — $ 2,019 $ 2,678 On January 3, 2023, we entered into a $600 senior unsecured 364-day term loan credit agreement with various U.S. and international banks. This credit agreement specified a variable interest rate reflecting the Secured Overnight Financing Rate applicable to the term of the particular borrowing plus a margin based on our credit ratings. The weighted-average interest rate on the term loan borrowings was 5.36% until it was repaid in full on March 23, 2023. On January 15, 2023, we repaid the $250 principal amount of 2.25% senior notes that matured on that date. On March 23, 2023, we issued senior unsecured notes with an aggregate principal amount of $650. Interest on these notes will accrue at a rate of 4.75% and be paid semi-annually. These notes will mature on April 15, 2033. The net proceeds from the issuance were used to repay $600 of outstanding indebtedness under the unsecured 364-day term loan agreement, dated January 3, 2023. Debt payments required over the next five fiscal years consist of $0 in 2024, $300 in 2025, $0 in 2026, $331 in 2027, $0 in 2028, and $2,077 after 2028. 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 were $235 as of April 30, 2023 under our commercial paper program. There were no borrowings under that program as of April 30, 2022. April 30, 2022 2023 Commercial paper $— $235 Average interest rate —% 5.17% Average remaining days to maturity 0 21 We had a committed revolving credit agreement with various U.S. and international banks for $800 that was scheduled to expire in November 2024. At April 30, 2023, there were no borrowings outstanding under this facility. On May 26, 2023, we entered into an amended and restated five-year credit agreement with various U.S. and international banks that provides for a $900 unsecured revolving credit commitment and expires on May 26, 2028. This agreement amended and restated our previous credit facility agreement. The new agreement contains no financial covenants. |
Common Stock
Common Stock | 12 Months Ended |
Apr. 30, 2023 | |
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, 2020 169,040 309,169 478,209 Stock issued under compensation plans 70 450 520 Balance at April 30, 2021 169,110 309,619 478,729 Stock issued under compensation plans 65 226 291 Balance at April 30, 2022 169,175 309,845 479,020 Stock issued under compensation plans 65 231 296 Balance at April 30, 2023 169,240 310,076 479,316 |
Net Sales
Net Sales | 12 Months Ended |
Apr. 30, 2023 | |
Net Sales [Abstract] | |
Net Sales | Net Sales The following table shows our net sales by geography: 2021 2022 2023 United States $ 1,748 $ 1,917 $ 1,968 Developed International 1 1,014 1,137 1,183 Emerging 2 578 714 842 Travel Retail 3 63 104 147 Non-branded and bulk 4 58 61 88 $ 3,461 $ 3,933 $ 4,228 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Japan. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil. 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, contract bottling services, and bulk whiskey and wine, regardless of customer location. The following table shows our net sales by product category: 2021 2022 2023 Whiskey 1 $ 2,410 $ 2,756 $ 2,915 Ready-to-Drink 2 406 431 509 Tequila 3 229 290 320 Wine 4 206 219 206 Vodka 5 90 109 99 Non-branded and bulk 6 58 61 88 Rest of portfolio 7 62 67 91 $ 3,461 $ 3,933 $ 4,228 1 Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft. 2 Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products. 3 Includes the Herradura family of brands, el Jimador, New Mix, and other tequilas. 4 Includes Korbel California Champagne and Sonoma-Cutrer wines. 5 Includes Finlandia. 6 Includes net sales of used barrels, contract bottling services, and bulk whiskey and wine. 7 Includes Chambord, Gin Mare, Korbel Brandy, Diplomático, and Fords Gin. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2023 | |
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 2022 2023 2022 2023 Obligation at beginning of year $ 1,012 $ 846 $ 49 $ 43 Service cost 26 20 1 1 Interest cost 22 32 1 1 Net actuarial loss (gain) 1 (132) (21) (5) (2) Retiree contributions — — 1 2 Benefits paid (82) (146) (4) (5) Obligation at end of year $ 846 $ 731 $ 43 $ 40 1 The net actuarial loss (gain) during each year was primarily attributable to changes in discount rates. 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 2024 $ 53 $ 4 2025 52 3 2026 54 3 2027 55 3 2028 56 3 2029 – 2033 287 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, 2023, our target asset allocation is a mix of 31% public equity investments, 58% fixed income investments, and 11% 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, 2022 Equity securities $ 78 $ — $ — $ 78 Limited partnership interest 1 — — 2 2 $ 78 $ — $ 2 80 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 218 Fixed income funds 318 Real estate fund 78 Short-term investments 6 Limited partnership interests 3 41 Total $ 741 April 30, 2023 Equity securities $ 35 $ — $ — $ 35 Cash and temporary investments 2 — — 2 Limited partnership interest 1 — — 1 1 $ 37 $ — $ 1 38 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 138 Fixed income funds 330 Real estate fund 59 Short-term investments 2 Limited partnership interests 3 39 Total $ 606 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 2023. 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, 2021 $ 2 Return on assets held at end of year — Balance as of April 30, 2022 2 Return on assets held at end of year (1) Balance as of April 30, 2023 $ 1 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 2022 2023 2022 2023 Assets at beginning of year $ 836 $ 741 $ — $ — Actual return on assets (25) (7) — — Retiree contributions — — 1 2 Company contributions 12 18 3 3 Benefits paid (82) (146) (4) (5) Assets at end of year $ 741 $ 606 $ — $ — We currently expect to contribute $14 to our pension plans and $4 to our postretirement medical and life insurance benefit plans during 2024. 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, 2022 2023 2022 2023 Assets $ 741 $ 606 $ — $ — Obligations (846) (731) (43) (40) Funded status $ (105) $ (125) $ (43) $ (40) The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life April 30, 2022 2023 2022 2023 Other assets $ 46 $ 17 $ — $ — Accounts payable and accrued expenses (8) (8) (3) (3) Accrued pension and other postretirement benefits (143) (134) (40) (37) Net liability $ (105) $ (125) $ (43) $ (40) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (201) $ (192) $ (3) $ (1) Prior service credit (cost) (4) (4) 2 2 $ (205) $ (196) $ (1) $ 1 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, 2022 2023 2022 2023 Plans with accumulated benefit obligation in excess of assets $ (135) $ (131) $ — $ — Plans with assets in excess of accumulated benefit obligation (623) (524) 741 606 Total $ (758) $ (655) $ 741 $ 606 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, 2022 2023 2022 2023 Plans with projected benefit obligation in excess of assets $ (150) $ (190) $ — $ 48 Plans with assets in excess of projected benefit obligation (696) (541) 741 558 Total $ (846) $ (731) $ 741 $ 606 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 2021 2022 2023 Service cost $ 26 $ 26 $ 20 Interest cost 25 22 32 Expected return on assets (46) (45) (43) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 27 23 9 Settlement charge — 12 29 Net cost $ 33 $ 39 $ 48 We determine the expected return on plan assets by applying our long-term rate of return assumption to the market-related value of plan assets, adjusted by earnings on contributions and benefit payments expected to be made during the year. We calculate the market-related value of plan assets by amortizing actual versus expected returns over five years. We amortize prior service costs and net actuarial gains or losses on straight-line basis over the average remaining service period of the employees expected to receive benefits under the plan. However, for net actuarial gains or losses, we use a corridor approach that amortizes them only to the extent the gain or loss exceeds 10% of the greater of the projected benefit obligation or market-related value of plan assets. The settlement charges recognized during 2022 and 2023 were triggered by fiscal year-to-date lump-sum payments under certain pension plans surpassing total annual service and interest cost for those plans. 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 2021 2022 2023 Service cost $ 1 $ 1 $ 1 Interest cost 1 1 1 Amortization of: Prior service cost (credit) (3) (2) — Net actuarial loss (gain) 1 1 — Net cost $ — $ 1 $ 2 We amortize prior service costs and net actuarial gains or losses on straight-line basis over the average remaining service period of the employees expected to receive benefits under the plan. 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 2021 2022 2023 2021 2022 2023 Net actuarial gain (loss) $ 69 $ 62 $ (29) $ 1 $ 5 $ 2 Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3) (2) — Net actuarial loss (gain) 27 35 38 1 1 — Net amount recognized in OCI $ 97 $ 98 $ 10 $ (1) $ 4 $ 2 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 2022 2023 2022 2023 Discount rate 4.36 % 4.91 % 4.33 % 4.86 % Rate of salary increase 4.00 % 4.00 % n/a n/a Interest crediting rate 3.06 % 3.69 % 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 2021 2022 2023 2021 2022 2023 Discount rate for service cost 3.49 % 3.36 % 4.52 % 3.59 % 3.49 % 4.50 % Discount rate for interest cost 2.56 % 2.34 % 4.12 % 2.47 % 2.27 % 3.96 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Interest crediting rate 3.07 % 3.06 % 3.06 % n/a n/a n/a Expected return on plan assets 6.50 % 6.25 % 6.25 % 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. The assumed health care cost trend rates as of the end of the last two years were as follows: Medical and Life 2022 2023 Health care cost trend rate assumed for next year 6.10 % 7.23 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2030 2032 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, $13, and $14 for matching contributions during 2021, 2022, and 2023, 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, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Brown-Forman 2022 Omnibus Compensation Plan (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 12,412,433 shares of common stock to eligible participants until July 28, 2032. As of April 30, 2023, awards for approximately 11,844,000 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, 2023, and for the year then ended. Number of Weighted- Weighted- Aggregate Outstanding at April 30, 2022 4,232 $ 47.54 Granted 387 73.61 Exercised (579) 34.58 Forfeited or expired (30) 70.63 Outstanding at April 30, 2023 4,010 $ 51.76 4.8 $ 60 Exercisable at April 30, 2023 2,758 $ 43.23 3.5 $ 60 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: 2021 2022 2023 Grant-date fair value $ 14.61 $ 16.61 $ 20.67 Valuation assumptions: Expected term (years) 7.0 7.0 7.0 Risk-free interest rate 0.4 % 1.0 % 2.7 % Expected volatility 23.3 % 24.1 % 24.8 % Expected dividend yield 1.0 % 1.0 % 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 by comparing the three-year cumulative total shareholder return of our Class B common stock to the three-year cumulative total shareholder return of the companies in the Standard & Poor's Consumer Staples Index, with specific payout levels ranging from 50% to 150%. At the end of the performance period, the number of PBRSUs is adjusted for performance, and then adjusted upward to account for dividends paid during the second and third years of the performance period. The resulting PBRSUs are then converted to common shares. The following table presents information about PBRSUs outstanding as of April 30, 2023, and for the year then ended. Number of Weighted- Outstanding at April 30, 2022 270 $ 67.02 Granted 110 $ 84.75 Adjusted for performance and dividends (14) $ 56.98 Converted to common shares (70) $ 56.98 Forfeited (7) $ 82.42 Outstanding at April 30, 2023 289 $ 76.33 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: 2021 2022 2023 Grant-date fair value $ 73.68 $ 70.11 $ 84.75 Valuation assumptions: Risk-free interest rate 0.1 % 0.3 % 2.8 % Expected volatility 29.9 % 29.1 % 29.8 % Expected dividend yield 1.1 % 1.0 % 1.0 % 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, 2023, there were approximately 185,000 outstanding DSUs, of which approximately 168,000 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: 2021 2022 2023 Grant-date fair value $ 63.01 $ 67.35 $ 72.10 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: 2021 2022 2023 Pre-tax compensation expense $ 12 $ 15 $ 18 Deferred tax benefit 2 2 3 As of April 30, 2023, there was $9 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 1.4 years. Further information related to our stock-based awards for the last three years is as follows: 2021 2022 2023 Intrinsic value of SSARs exercised $ 47 $ 23 $ 19 Fair value of shares vested 13 7 6 Excess tax benefit from exercise / vesting of awards 10 6 4 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2023 | |
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: 2021 2022 2023 United States $ 832 $ 954 $ 841 Foreign 249 160 176 $ 1,081 $ 1,114 $ 1,017 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, 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: 2021 2022 2023 Current: U.S. federal $ 146 $ 205 $ 157 Foreign 50 64 46 State and local 35 18 34 231 287 237 Deferred: U.S. federal (4) 1 (4) Foreign (47) (9) 6 State and local (2) (3) (5) (53) (11) (3) $ 178 $ 276 $ 234 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 2021 2022 2023 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 2.4 % 1.0 % 2.5 % Income taxed at other than U.S. federal statutory rate 0.3 % 1.3 % 3.0 % Prior intercompany sales taxed at higher than current U.S. federal statutory rate 0.2 % 2.0 % 1.0 % Tax benefit from foreign-derived sales (1.7 %) (1.8 %) (3.0) % Adjustments related to prior years (0.2 %) 0.7 % (0.5) % Excess tax benefits from stock-based awards (1.0 %) (0.5 %) (0.3) % Tax rate changes — % 0.4 % — % Intercompany transfer of assets (4.0 %) — % — % Valuation allowance — % — % (1.3) % Other, net (0.5 %) 0.7 % 0.6 % Effective rate 16.5 % 24.8 % 23.0 % Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2022 2023 Deferred tax assets: Postretirement and other benefits $ 69 $ 75 Accrued liabilities and other 36 35 Inventories 40 26 Lease liabilities 20 23 Loss and credit carryforwards 69 62 Total deferred tax assets 234 221 Valuation allowance (27) (14) Total deferred tax assets, net of valuation allowance 207 207 Deferred tax liabilities: Intangible assets (219) (323) Property, plant, and equipment (87) (98) Right-of-use assets (20) (23) Derivative instruments (11) (3) Other (15) (17) Total deferred tax liabilities (352) (464) Net deferred tax liability $ (145) $ (257) 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, 2022 April 30, 2023 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance U.S. $ 53 $ 19 $ (8) $ 111 $ 20 1 $ (6) Foreign 241 50 (19) 216 42 2 (8) $ 294 $ 69 $ (27) $ 327 $ 62 $ (14) 1 As of April 30, 2023, the deferred tax asset amount includes credit carryforwards of $10 that d o not expire and loss and credit carryforwards of $10 that expire in varying amounts from 2023 to 2039. 2 As of April 30, 2023, the deferred tax asset includes loss carryforwards of $19 that do no t expire and $23 that expire in va rying amounts over the next 10 years. As of April 30, 2023, we had approximately $1,617 of undistributed earnings from our foreign subsidiaries ($1,446 at April 30, 2022). These earnings have been previously subject to tax, primarily as a result of the 2017 Tax Cuts and Jobs Act. Historically, we have asserted that the undistributed earnings of our foreign subsidiaries are reinvested indefinitely outside the United States. We continue to maintain indefinite reinvestment assertions for most undistributed earnings of our foreign subsidiaries, and no deferred taxes have been provided on the earnings. For undistributed earnings not considered permanently reinvested, deferred tax liabilities have been provided for any applicable income taxes and withholding taxes payable in various countries, which are not significant. We have also asserted that other outside basis differences related to our foreign subsidiaries are reinvested indefinitely and that the determination of any unrecognized deferred tax liabilities is not practicable due to the complexities in the calculations. The other outside basis differences relate primarily 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, 2023. At April 30, 2023, we had $21 of gross unrecognized tax benefits, $17 of which would reduce our effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits follows: 2021 2022 2023 Unrecognized tax benefits at beginning of year $ 11 $ 12 $ 14 Additions for tax positions provided in prior periods 1 2 8 Additions for tax positions provided in current period 2 2 3 Settlements of tax positions in the current period (1) — — Lapse of statutes of limitations (1) (2) (4) Unrecognized tax benefits at end of year $ 12 $ 14 $ 21 We file federal income tax returns in the United States and also file tax returns in various state, local and foreign jurisdictions. The major jurisdictions where we are subject to examination by tax authorities include the United States, Australia, Brazil, Germany, Korea, Mexico, Netherlands, Poland and the United Kingdom. We have tax years open for examination from 2013 and forward. Various tax examinations are currently in progress in the United States, for both federal and states, and in certain foreign jurisdictions. In the United States, we are participating in the Internal Revenue Service's Compliance Assurance Program for our fiscal 2023 tax year. We believe there will be no material change in our gross unrecognized tax benefits in the next 12 months. |
Acquisitions and Divestiture
Acquisitions and Divestiture | 12 Months Ended |
Apr. 30, 2023 | |
Acquisitions and Divestiture [Abstract] | |
Acquisitions and Divestitures | Acquisitions and Divestitures Acquisitions . As discussed below, we completed two acquisitions during fiscal 2023. Each acquisition was accounted for as a business combination. On November 3, 2022, we acquired the Gin Mare and Gin Mare Capri brands through our purchase of 100% of the equity interests of Gin Mare Brand, S.L.U., a Spanish company, and Mareliquid Vantguard, S.L.U., a Spanish company (the “Gin Mare acquisition”). The purchase price of the Gin Mare acquisition was $524, which consisted of $468 in cash paid at the acquisition date plus contingent consideration of $56. We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: Initial Allocation 1 Adjustments Updated Allocation Trademarks and brand names (indefinite-lived) $ 308 $ (1) $ 307 Goodwill 288 1 289 Total assets 596 — 596 Deferred tax liabilities 72 — 72 Net assets acquired $ 524 $ — $ 524 1 As reported in Note 14 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2023. The contingent consideration of $56 reflects the estimated fair value, at the acquisition date, of contingent future cash payments of up to €90 to the sellers under an “earn-out” provision of the acquisition agreement. We determined the estimated fair value of the contingent consideration using a Monte Carlo simulation, which requires the use of assumptions, such as projected future net sales, discount rates, and volatility rates. Any contingent consideration earned by the sellers will be payable in cash no earlier than July 2024 and no later than July 2027, depending on when the sellers choose to exercise the right to receive the payment. The amount payable will depend on the achievement of net sales targets for Gin Mare for the latest fiscal year completed prior to the date of exercise by the sellers. The possible payments range from zero to €90 (approximately $89 as of the acquisition date). At the acquisition date, we also entered into a supply agreement with the sellers for the production and supply of Gin Mare products to us, at market terms, for an initial period of 10 years (subject to subsequent renewal periods). On January 5, 2023, we acquired the Diplomático and Botucal rum brands through our purchase of (i) 100% of the equity interests of (a) International Rum and Spirits Distributors Unipessoal, Lda., a Portuguese company, (b) Diplomático Branding Unipessoal Lda., a Portuguese company, (c) International Bottling Services, S.A., a Panamanian corporation, and (d) International Rum & Spirits Marketing Solutions, S.L., a Spanish company; and (ii) certain assets of Destilerias Unidas Corp. (the “Diplomático acquisition”). The purchase price of the Diplomático acquisition consisted of cash of $727. We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: Initial Allocation 1 Adjustments Updated Allocation Accounts receivable $ 11 $ — $ 11 Inventories 33 3 36 Other current assets 25 — 25 Property, plant, and equipment 36 2 38 Trademarks and brand names (indefinite-lived) 312 — 312 Goodwill 365 (2) 363 Other assets — 2 2 Total assets 782 5 787 Accounts payable and accrued expenses 10 3 13 Deferred tax liabilities 45 — 45 Other liabilities — 2 2 Total liabilities 55 5 60 Net assets acquired $ 727 $ — $ 727 1 As reported in Note 14 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2023. At the acquisition date, we also entered into a supply agreement with the sellers for their production and supply of rum to us, at market terms, for an initial period of 10 years (subject to subsequent renewal periods). We allocated the purchase price for each acquisition based on preliminary estimates, which we may revise as asset valuations are finalized and we obtain further information on the fair value of liabilities. The primary matters to be finalized consist of the valuation of certain tangible assets and identifiable intangible assets, any related tax effects, and any resulting impact on residual goodwill. The amounts preliminarily allocated to trademarks and brand names for each acquisition were estimated using the relief-from-royalty method, which requires the use of significant assumptions, such as discount rates and projected future net sales. Goodwill is calculated as the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill recorded for each acquisition is primarily attributable to the value of leveraging our distribution network and brand-building expertise to grow sales of the acquired brands. For the Gin Mare acquisition, we expect none of the preliminary goodwill of $289 to be deductible for tax purposes. For the Diplomático acquisition, we expect $109 of the preliminary goodwill of $363 to be deductible for tax purposes. Results for Gin Mare and Diplomático have been included in our consolidated financial statements since their acquisition dates. Pro forma results are not presented as the aggregate impact is not material to our consolidated statements of operations. In connection with the acquisitions, we recognized transaction expenses of $55 during fiscal 2023. The following table shows the classification of the transaction expenses in the accompanying consolidated statement of operations. 2023 Selling, general, and administrative expenses $ 11 Other expense (income), net 44 Total transaction expenses $ 55 The transaction expenses largely reflect payments made to terminate certain distribution contracts related to the acquired brands. 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, 2023 | |
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, when we reclassify that amount into earnings. Some of our currency derivatives are not designated 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 $801 and $747 at April 30, 2022 and 2023, respectively. The maximum term of outstanding derivative contracts was 36 months and 24 months at April 30, 2022 and 2023, respectively. We also use foreign currency-denominated debt to help manage our foreign currency exchange risk. We designate a portion of those debt instruments as net investment hedges, which are intended to mitigate foreign currency 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. The amount of foreign currency-denominated debt designated as net investment hedges was $636 and $495 as of April 30, 2022 and 2023, respectively. 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, and we assess hedge-effectiveness continually. If we determine that an instrument is no longer highly effective, we stop designating and accounting for it as a hedge. 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. In the fourth quarter of fiscal 2023, we entered into $350 of interest rate derivative contracts (U.S. Treasury lock agreements) to manage the interest rate risk related to the anticipated issuance of fixed-rate senior unsecured notes. We designated the contracts as cash flow hedges of the future interest payments associated with the anticipated notes. Upon issuance of the 4.75% senior notes in March 2023 (see Note 6), we settled the contracts for a $1 loss. The loss was recorded to AOCI and will be amortized as an addition to interest expense over the life of the 4.75% senior notes. 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 2021 2022 2023 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (78) $ 76 $ 4 Net gain (loss) reclassified from AOCI into earnings Sales 21 5 37 Net gain (loss) reclassified from AOCI into earnings Other income (expense), net — 2 — Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — — (1) Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales (13) 12 (1) Net gain (loss) recognized in earnings Other income (expense), net 17 5 16 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a (73) 78 3 Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,526 5,081 5,372 Other income (expense), net 15 (59) (119) We expect to reclassify $6 of deferred net gains on cash flow hedges recorded in AOCI as of April 30, 2023, to earnings during fiscal 2024. 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, 2022 and 2023: Balance Sheet Classification Derivative Assets Derivative Liabilities April 30, 2022 Designated as cash flow hedges: Currency derivatives Other current assets $ 32 $ (3) Currency derivatives Other assets 20 (1) Not designated as hedges: Currency derivatives Accrued expenses — (1) April 30, 2023 Designated as cash flow hedges: Currency derivatives Other current assets 20 (11) Currency derivatives Other assets 5 (1) Currency derivatives Accrued expenses — (1) Currency derivatives Other liabilities — (1) Not designated as hedges: Currency derivatives Other current assets 3 — 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. Based on our most recent assessment. we consider our counterparty credit risk to be low. 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 $0 and $1 at April 30, 2022 and 2023, 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, 2022 Derivative assets $ 52 $ (4) $ 48 $ (1) $ 47 Derivative liabilities (5) 4 (1) 1 — April 30, 2023 Derivative assets 28 (12) 16 (1) 15 Derivative liabilities (14) 12 (2) 1 (1) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2022 or 2023. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | air Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: 2022 2023 April 30, Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 868 $ 868 $ 374 $ 374 Currency derivatives 48 48 16 16 Liabilities: Currency derivatives 1 1 2 2 Contingent consideration (Note 12) — — 56 56 Short-term borrowings — — 235 235 Long-term debt (including current portion) 2,269 2,239 2,678 2,556 Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based on the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, or other inputs that are observable or can be derived from or corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity. We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy. We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy. The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). During fiscal 2022, we recognized non-cash impairment charges of $9 on certain fixed assets. The impairment charges, which were based on our measurements of the estimated fair values of those assets, are categorized as Level 2 within the valuation hierarchy. The remaining carrying amount of those fixed assets is not significant. As discussed in Note 4, we recognized non-cash impairment charges of $ 52 96 |
Leases
Leases | 12 Months Ended |
Apr. 30, 2023 | |
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. 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 $ 74 $ 84 Lease liabilities: Current Accounts payable and accrued expenses $ 21 $ 22 Non-current Other liabilities 54 63 Total $ 75 $ 85 Weighted-average discount rate 1.8% 3.3% Weighted-average remaining term 5.0 years 5.1 years The following table shows information about the effects of leases during each of the last three years: 2021 2022 2023 Total lease cost 1 $ 41 $ 38 $ 38 Cash paid for amounts included in the measurement of lease liabilities 2 26 25 25 Right-of-use assets obtained in exchange for new lease liabilities 25 35 29 1 Consists primarily of operating lease cost. Other components of lease cost were not material. 2 Classified within operating activities in the accompanying consolidated statements of cash flows. The following table includes a maturity analysis of future (undiscounted) lease payments and a reconciliation of those payments to the lease liabilities recorded on our balance sheet as of April 30, 2023: April 30, 2024 $ 24 2025 19 2026 15 2027 13 2028 9 Thereafter 12 Total lease payments 92 Less: Present value discount (7) Lease liabilities $ 85 |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2023 | |
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, 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 Year Ended April 30, 2022 Currency translation adjustments: Net gain (loss) on currency translation $ (42) $ (18) $ (60) Reclassification to earnings — — — Other comprehensive income (loss), net (42) (18) (60) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 76 (17) 59 Reclassification to earnings 1 (7) 1 (6) Other comprehensive income (loss), net 69 (16) 53 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 67 (16) 51 Reclassification to earnings 2 34 (8) 26 Other comprehensive income (loss), net 101 (24) 77 Total other comprehensive income (loss), net $ 128 $ (58) $ 70 Year Ended April 30, 2023 Currency translation adjustments: Net gain (loss) on currency translation $ 135 $ — $ 135 Reclassification to earnings — — — Other comprehensive income (loss), net 135 — 135 Cash flow hedge adjustments: Net gain (loss) on hedging instruments 3 (1) 2 Reclassification to earnings 1 (37) 8 (29) Other comprehensive income (loss), net (34) 7 (27) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (26) 6 (20) Reclassification to earnings 2 38 (9) 29 Other comprehensive income (loss), net 12 (3) 9 Total other comprehensive income (loss), net $ 113 $ 4 $ 117 1 For 2022, $(2) of the pre-tax amount of $(7) is classified in other income in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as sales. 2 For 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, 2023 | |
Segment Reporting [Abstract] | |
Supplemental Information | Supplemental Information The following table presents net sales by geography: 2021 2022 2023 Net sales: United States $ 1,748 $ 1,917 $ 1,968 Mexico 150 178 244 Germany 206 228 239 Australia 209 219 221 United Kingdom 205 218 207 Other 943 1,173 1,349 $ 3,461 $ 3,933 $ 4,228 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 19% and 13% of consolidated net sales in 2021; 14% and 12% of consolidated net sales in 2022; and 14% and 12% of consolidated net sales in 2023. The net book value of property, plant, and equipment located outside the United States was $116 and $204 as of April 30, 2022 and 2023, 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, 2023 | |
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, 2021, 2022, and 2023 (Expressed in millions) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Description Balance at Additions Additions Deductions Balance 2021 Allowance for doubtful accounts $ 11 $ — $ — $ 4 (1) $ 7 Deferred tax valuation allowance $ 22 $ 10 $ — $ 12 $ 20 2022 Allowance for doubtful accounts $ 7 $ 7 $ — $ 1 (1) $ 13 Deferred tax valuation allowance $ 20 $ 8 $ — $ 1 $ 27 2023 Allowance for doubtful accounts $ 13 $ — $ — $ 6 (1) $ 7 Deferred tax valuation allowance $ 27 $ 4 $ — $ 17 $ 14 (1) Doubtful accounts written off, net of recoveries. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2023 | |
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 $13 and $7 at April 30, 2022 and 2023, respectively. |
Inventories | Inventories. Inventories are valued at the lower of cost or net realizable value. Approximately 49% 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 $385 and $429 higher than reported at April 30, 2022 and 2023, 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. When we acquire a business, 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 estimate the fair value of a brand name using the relief-from-royalty 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, 2023 | |
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, 2023 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | 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, 2023 | |
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, 2022 2023 Other current assets: Prepaid taxes $ 155 $ 122 Other 122 167 $ 277 $ 289 Property, plant, and equipment: Land $ 86 $ 97 Buildings 660 717 Equipment 849 889 Construction in process 129 217 1,724 1,920 Less accumulated depreciation 849 889 $ 875 $ 1,031 Accounts payable and accrued expenses: Accounts payable, trade $ 218 $ 308 Accrued expenses: Advertising, promotion, and discounts 200 216 Compensation and commissions 99 106 Excise and other non-income taxes 74 76 Other 112 121 485 519 $ 703 $ 827 Other liabilities: Contingent consideration (Note 12) $ — $ 56 Other 181 197 $ 181 $ 253 Accumulated other comprehensive income (loss), net of tax: Currency translation adjustments $ (239) $ (104) Cash flow hedge adjustments 37 10 Postretirement benefits adjustments (150) (141) $ (352) $ (235) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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: 2021 2022 2023 Net income available to common stockholders $ 903 $ 838 $ 783 Share data (in thousands): Basic average common shares outstanding 478,527 478,879 479,155 Dilutive effect of stock-based awards 2,150 1,686 1,310 Diluted average common shares outstanding 480,677 480,565 480,465 Basic earnings per share $ 1.89 $ 1.75 $ 1.63 Diluted earnings per share $ 1.88 $ 1.74 $ 1.63 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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, 2021 $ 779 $ 676 Foreign currency translation adjustment (18) (38) Impairment — (52) Balance as of April 30, 2022 761 586 Acquisitions (Note 12) 652 619 Foreign currency translation adjustment 44 55 Impairment — (96) Balance as of April 30, 2023 $ 1,457 $ 1,164 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2022 2023 2.25% senior notes, $250 principal amount, due January 15, 2023 $ 250 $ — 3.50% senior notes, $300 principal amount, due April 15, 2025 298 299 1.20% senior notes, €300 principal amount, due July 7, 2026 315 330 2.60% senior notes, £300 principal amount, due July 7, 2028 374 375 4.75% senior notes, $650 principal amount, due April 15, 2033 — 642 4.00% senior notes, $300 principal amount, due April 15, 2038 295 295 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 489 489 2,269 2,678 Less current portion 250 — $ 2,019 $ 2,678 |
Schedule of short-term debt | April 30, 2022 2023 Commercial paper $— $235 Average interest rate —% 5.17% Average remaining days to maturity 0 21 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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, 2020 169,040 309,169 478,209 Stock issued under compensation plans 70 450 520 Balance at April 30, 2021 169,110 309,619 478,729 Stock issued under compensation plans 65 226 291 Balance at April 30, 2022 169,175 309,845 479,020 Stock issued under compensation plans 65 231 296 Balance at April 30, 2023 169,240 310,076 479,316 |
Net Sales (Tables)
Net Sales (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
Net Sales [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table shows our net sales by geography: 2021 2022 2023 United States $ 1,748 $ 1,917 $ 1,968 Developed International 1 1,014 1,137 1,183 Emerging 2 578 714 842 Travel Retail 3 63 104 147 Non-branded and bulk 4 58 61 88 $ 3,461 $ 3,933 $ 4,228 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Japan. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil. 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, contract bottling services, and bulk whiskey and wine, regardless of customer location. The following table shows our net sales by product category: 2021 2022 2023 Whiskey 1 $ 2,410 $ 2,756 $ 2,915 Ready-to-Drink 2 406 431 509 Tequila 3 229 290 320 Wine 4 206 219 206 Vodka 5 90 109 99 Non-branded and bulk 6 58 61 88 Rest of portfolio 7 62 67 91 $ 3,461 $ 3,933 $ 4,228 1 Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft. 2 Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products. 3 Includes the Herradura family of brands, el Jimador, New Mix, and other tequilas. 4 Includes Korbel California Champagne and Sonoma-Cutrer wines. 5 Includes Finlandia. 6 Includes net sales of used barrels, contract bottling services, and bulk whiskey and wine. 7 Includes Chambord, Gin Mare, Korbel Brandy, Diplomático, and Fords Gin. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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 2022 2023 2022 2023 Obligation at beginning of year $ 1,012 $ 846 $ 49 $ 43 Service cost 26 20 1 1 Interest cost 22 32 1 1 Net actuarial loss (gain) 1 (132) (21) (5) (2) Retiree contributions — — 1 2 Benefits paid (82) (146) (4) (5) Obligation at end of year $ 846 $ 731 $ 43 $ 40 1 The net actuarial loss (gain) during each year was primarily attributable to changes in discount rates. |
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 2024 $ 53 $ 4 2025 52 3 2026 54 3 2027 55 3 2028 56 3 2029 – 2033 287 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, 2022 Equity securities $ 78 $ — $ — $ 78 Limited partnership interest 1 — — 2 2 $ 78 $ — $ 2 80 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 218 Fixed income funds 318 Real estate fund 78 Short-term investments 6 Limited partnership interests 3 41 Total $ 741 April 30, 2023 Equity securities $ 35 $ — $ — $ 35 Cash and temporary investments 2 — — 2 Limited partnership interest 1 — — 1 1 $ 37 $ — $ 1 38 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 138 Fixed income funds 330 Real estate fund 59 Short-term investments 2 Limited partnership interests 3 39 Total $ 606 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 2023. 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, 2021 $ 2 Return on assets held at end of year — Balance as of April 30, 2022 2 Return on assets held at end of year (1) Balance as of April 30, 2023 $ 1 |
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 2022 2023 2022 2023 Assets at beginning of year $ 836 $ 741 $ — $ — Actual return on assets (25) (7) — — Retiree contributions — — 1 2 Company contributions 12 18 3 3 Benefits paid (82) (146) (4) (5) Assets at end of year $ 741 $ 606 $ — $ — |
Funded status of plans | The following table shows the funded status of our plans. Pension Benefits Medical and Life April 30, 2022 2023 2022 2023 Assets $ 741 $ 606 $ — $ — Obligations (846) (731) (43) (40) Funded status $ (105) $ (125) $ (43) $ (40) |
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, 2022 2023 2022 2023 Other assets $ 46 $ 17 $ — $ — Accounts payable and accrued expenses (8) (8) (3) (3) Accrued pension and other postretirement benefits (143) (134) (40) (37) Net liability $ (105) $ (125) $ (43) $ (40) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (201) $ (192) $ (3) $ (1) Prior service credit (cost) (4) (4) 2 2 $ (205) $ (196) $ (1) $ 1 |
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, 2022 2023 2022 2023 Plans with accumulated benefit obligation in excess of assets $ (135) $ (131) $ — $ — Plans with assets in excess of accumulated benefit obligation (623) (524) 741 606 Total $ (758) $ (655) $ 741 $ 606 |
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, 2022 2023 2022 2023 Plans with projected benefit obligation in excess of assets $ (150) $ (190) $ — $ 48 Plans with assets in excess of projected benefit obligation (696) (541) 741 558 Total $ (846) $ (731) $ 741 $ 606 |
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 2021 2022 2023 Service cost $ 26 $ 26 $ 20 Interest cost 25 22 32 Expected return on assets (46) (45) (43) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 27 23 9 Settlement charge — 12 29 Net cost $ 33 $ 39 $ 48 |
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 2021 2022 2023 Service cost $ 1 $ 1 $ 1 Interest cost 1 1 1 Amortization of: Prior service cost (credit) (3) (2) — Net actuarial loss (gain) 1 1 — Net cost $ — $ 1 $ 2 |
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 2021 2022 2023 2021 2022 2023 Net actuarial gain (loss) $ 69 $ 62 $ (29) $ 1 $ 5 $ 2 Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (3) (2) — Net actuarial loss (gain) 27 35 38 1 1 — Net amount recognized in OCI $ 97 $ 98 $ 10 $ (1) $ 4 $ 2 |
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 2022 2023 2022 2023 Discount rate 4.36 % 4.91 % 4.33 % 4.86 % Rate of salary increase 4.00 % 4.00 % n/a n/a Interest crediting rate 3.06 % 3.69 % 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 2021 2022 2023 2021 2022 2023 Discount rate for service cost 3.49 % 3.36 % 4.52 % 3.59 % 3.49 % 4.50 % Discount rate for interest cost 2.56 % 2.34 % 4.12 % 2.47 % 2.27 % 3.96 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Interest crediting rate 3.07 % 3.06 % 3.06 % n/a n/a n/a Expected return on plan assets 6.50 % 6.25 % 6.25 % 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 2022 2023 Health care cost trend rate assumed for next year 6.10 % 7.23 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 4.50 % 4.50 % Year that the rate reaches the ultimate trend rate 2030 2032 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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, 2023, and for the year then ended. Number of Weighted- Weighted- Aggregate Outstanding at April 30, 2022 4,232 $ 47.54 Granted 387 73.61 Exercised (579) 34.58 Forfeited or expired (30) 70.63 Outstanding at April 30, 2023 4,010 $ 51.76 4.8 $ 60 Exercisable at April 30, 2023 2,758 $ 43.23 3.5 $ 60 |
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: 2021 2022 2023 Grant-date fair value $ 14.61 $ 16.61 $ 20.67 Valuation assumptions: Expected term (years) 7.0 7.0 7.0 Risk-free interest rate 0.4 % 1.0 % 2.7 % Expected volatility 23.3 % 24.1 % 24.8 % Expected dividend yield 1.0 % 1.0 % 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, 2023, and for the year then ended. Number of Weighted- Outstanding at April 30, 2022 270 $ 67.02 Granted 110 $ 84.75 Adjusted for performance and dividends (14) $ 56.98 Converted to common shares (70) $ 56.98 Forfeited (7) $ 82.42 Outstanding at April 30, 2023 289 $ 76.33 |
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: 2021 2022 2023 Grant-date fair value $ 73.68 $ 70.11 $ 84.75 Valuation assumptions: Risk-free interest rate 0.1 % 0.3 % 2.8 % Expected volatility 29.9 % 29.1 % 29.8 % Expected dividend yield 1.1 % 1.0 % 1.0 % 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: 2021 2022 2023 Grant-date fair value $ 63.01 $ 67.35 $ 72.10 |
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: 2021 2022 2023 Pre-tax compensation expense $ 12 $ 15 $ 18 Deferred tax benefit 2 2 3 |
Stock-Based Awards, Other Information [Table Text Block] | Further information related to our stock-based awards for the last three years is as follows: 2021 2022 2023 Intrinsic value of SSARs exercised $ 47 $ 23 $ 19 Fair value of shares vested 13 7 6 Excess tax benefit from exercise / vesting of awards 10 6 4 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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: 2021 2022 2023 United States $ 832 $ 954 $ 841 Foreign 249 160 176 $ 1,081 $ 1,114 $ 1,017 |
Total income tax expense | Our total income tax expense for each of the last three years was as follows: 2021 2022 2023 Current: U.S. federal $ 146 $ 205 $ 157 Foreign 50 64 46 State and local 35 18 34 231 287 237 Deferred: U.S. federal (4) 1 (4) Foreign (47) (9) 6 State and local (2) (3) (5) (53) (11) (3) $ 178 $ 276 $ 234 |
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 2021 2022 2023 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State taxes, net of U.S. federal tax benefit 2.4 % 1.0 % 2.5 % Income taxed at other than U.S. federal statutory rate 0.3 % 1.3 % 3.0 % Prior intercompany sales taxed at higher than current U.S. federal statutory rate 0.2 % 2.0 % 1.0 % Tax benefit from foreign-derived sales (1.7 %) (1.8 %) (3.0) % Adjustments related to prior years (0.2 %) 0.7 % (0.5) % Excess tax benefits from stock-based awards (1.0 %) (0.5 %) (0.3) % Tax rate changes — % 0.4 % — % Intercompany transfer of assets (4.0 %) — % — % Valuation allowance — % — % (1.3) % Other, net (0.5 %) 0.7 % 0.6 % Effective rate 16.5 % 24.8 % 23.0 % |
Deferred tax assets and liabilities | Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2022 2023 Deferred tax assets: Postretirement and other benefits $ 69 $ 75 Accrued liabilities and other 36 35 Inventories 40 26 Lease liabilities 20 23 Loss and credit carryforwards 69 62 Total deferred tax assets 234 221 Valuation allowance (27) (14) Total deferred tax assets, net of valuation allowance 207 207 Deferred tax liabilities: Intangible assets (219) (323) Property, plant, and equipment (87) (98) Right-of-use assets (20) (23) Derivative instruments (11) (3) Other (15) (17) Total deferred tax liabilities (352) (464) Net deferred tax liability $ (145) $ (257) |
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, 2022 April 30, 2023 Gross Amount Deferred Tax Asset Valuation Allowance Gross Amount Deferred Tax Asset Valuation Allowance U.S. $ 53 $ 19 $ (8) $ 111 $ 20 1 $ (6) Foreign 241 50 (19) 216 42 2 (8) $ 294 $ 69 $ (27) $ 327 $ 62 $ (14) 1 As of April 30, 2023, the deferred tax asset amount includes credit carryforwards of $10 that d o not expire and loss and credit carryforwards of $10 that expire in varying amounts from 2023 to 2039. 2 As of April 30, 2023, the deferred tax asset includes loss carryforwards of $19 that do no t expire and $23 that expire in va rying amounts over the next 10 years. |
Reconciliation of ending and beginning unrecognized tax benefits | A reconciliation of the beginning and ending unrecognized tax benefits follows: 2021 2022 2023 Unrecognized tax benefits at beginning of year $ 11 $ 12 $ 14 Additions for tax positions provided in prior periods 1 2 8 Additions for tax positions provided in current period 2 2 3 Settlements of tax positions in the current period (1) — — Lapse of statutes of limitations (1) (2) (4) Unrecognized tax benefits at end of year $ 12 $ 14 $ 21 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
Business Acquisition [Line Items] | |
Business Combination, Separately Recognized Transactions [Table] | The following table shows the classification of the transaction expenses in the accompanying consolidated statement of operations. 2023 Selling, general, and administrative expenses $ 11 Other expense (income), net 44 Total transaction expenses $ 55 |
Gin Mare | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: Initial Allocation 1 Adjustments Updated Allocation Trademarks and brand names (indefinite-lived) $ 308 $ (1) $ 307 Goodwill 288 1 289 Total assets 596 — 596 Deferred tax liabilities 72 — 72 Net assets acquired $ 524 $ — $ 524 1 As reported in Note 14 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2023. |
Diplomatico | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: Initial Allocation 1 Adjustments Updated Allocation Accounts receivable $ 11 $ — $ 11 Inventories 33 3 36 Other current assets 25 — 25 Property, plant, and equipment 36 2 38 Trademarks and brand names (indefinite-lived) 312 — 312 Goodwill 365 (2) 363 Other assets — 2 2 Total assets 782 5 787 Accounts payable and accrued expenses 10 3 13 Deferred tax liabilities 45 — 45 Other liabilities — 2 2 Total liabilities 55 5 60 Net assets acquired $ 727 $ — $ 727 1 As reported in Note 14 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2023. |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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 2021 2022 2023 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (78) $ 76 $ 4 Net gain (loss) reclassified from AOCI into earnings Sales 21 5 37 Net gain (loss) reclassified from AOCI into earnings Other income (expense), net — 2 — Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — — (1) Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales (13) 12 (1) Net gain (loss) recognized in earnings Other income (expense), net 17 5 16 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a (73) 78 3 Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales 4,526 5,081 5,372 Other income (expense), net 15 (59) (119) |
Schedule of fair values of derivative instruments | The following table presents the fair values of our derivative instruments as of April 30, 2022 and 2023: Balance Sheet Classification Derivative Assets Derivative Liabilities April 30, 2022 Designated as cash flow hedges: Currency derivatives Other current assets $ 32 $ (3) Currency derivatives Other assets 20 (1) Not designated as hedges: Currency derivatives Accrued expenses — (1) April 30, 2023 Designated as cash flow hedges: Currency derivatives Other current assets 20 (11) Currency derivatives Other assets 5 (1) Currency derivatives Accrued expenses — (1) Currency derivatives Other liabilities — (1) Not designated as hedges: Currency derivatives Other current assets 3 — |
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, 2022 Derivative assets $ 52 $ (4) $ 48 $ (1) $ 47 Derivative liabilities (5) 4 (1) 1 — April 30, 2023 Derivative assets 28 (12) 16 (1) 15 Derivative liabilities (14) 12 (2) 1 (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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: 2022 2023 April 30, Carrying Fair Carrying Fair Assets: Cash and cash equivalents $ 868 $ 868 $ 374 $ 374 Currency derivatives 48 48 16 16 Liabilities: Currency derivatives 1 1 2 2 Contingent consideration (Note 12) — — 56 56 Short-term borrowings — — 235 235 Long-term debt (including current portion) 2,269 2,239 2,678 2,556 |
Leases Leases (Tables)
Leases Leases (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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 $ 74 $ 84 Lease liabilities: Current Accounts payable and accrued expenses $ 21 $ 22 Non-current Other liabilities 54 63 Total $ 75 $ 85 Weighted-average discount rate 1.8% 3.3% Weighted-average remaining term 5.0 years 5.1 years |
Lease Cost and Other Lease Information [Table Text Block] | The following table shows information about the effects of leases during each of the last three years: 2021 2022 2023 Total lease cost 1 $ 41 $ 38 $ 38 Cash paid for amounts included in the measurement of lease liabilities 2 26 25 25 Right-of-use assets obtained in exchange for new lease liabilities 25 35 29 1 Consists primarily of operating lease cost. Other components of lease cost were not material. 2 Classified within operating activities in the accompanying consolidated statements of cash flows. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table includes a maturity analysis of future (undiscounted) lease payments and a reconciliation of those payments to the lease liabilities recorded on our balance sheet as of April 30, 2023: April 30, 2024 $ 24 2025 19 2026 15 2027 13 2028 9 Thereafter 12 Total lease payments 92 Less: Present value discount (7) Lease liabilities $ 85 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2023 | |
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, 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 Year Ended April 30, 2022 Currency translation adjustments: Net gain (loss) on currency translation $ (42) $ (18) $ (60) Reclassification to earnings — — — Other comprehensive income (loss), net (42) (18) (60) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 76 (17) 59 Reclassification to earnings 1 (7) 1 (6) Other comprehensive income (loss), net 69 (16) 53 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 67 (16) 51 Reclassification to earnings 2 34 (8) 26 Other comprehensive income (loss), net 101 (24) 77 Total other comprehensive income (loss), net $ 128 $ (58) $ 70 Year Ended April 30, 2023 Currency translation adjustments: Net gain (loss) on currency translation $ 135 $ — $ 135 Reclassification to earnings — — — Other comprehensive income (loss), net 135 — 135 Cash flow hedge adjustments: Net gain (loss) on hedging instruments 3 (1) 2 Reclassification to earnings 1 (37) 8 (29) Other comprehensive income (loss), net (34) 7 (27) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (26) 6 (20) Reclassification to earnings 2 38 (9) 29 Other comprehensive income (loss), net 12 (3) 9 Total other comprehensive income (loss), net $ 113 $ 4 $ 117 1 For 2022, $(2) of the pre-tax amount of $(7) is classified in other income in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as sales. 2 For 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, 2023 | |
Segment Reporting [Abstract] | |
Net sales by geography | The following table presents net sales by geography: 2021 2022 2023 Net sales: United States $ 1,748 $ 1,917 $ 1,968 Mexico 150 178 244 Germany 206 228 239 Australia 209 219 221 United Kingdom 205 218 207 Other 943 1,173 1,349 $ 3,461 $ 3,933 $ 4,228 |
Accounting Policies Allowance f
Accounting Policies Allowance for Doubtful Accounts (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Allowance for Doubtful Accounts [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 7 | $ 13 |
Accounting Policies (Textual) (
Accounting Policies (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Accounting Policies (Textual) [Abstract] | ||
Inventories valued using LIFO method (percent) | 49% | |
FIFO method value of inventory in excess of reported | $ 429 | $ 385 |
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, 2023 | Apr. 30, 2022 | |
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, 2023 | Apr. 30, 2022 | |
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, 2023 | Apr. 30, 2022 |
Other current assets: | ||
Prepaid taxes | $ 122 | $ 155 |
Other | 167 | 122 |
Other current assets | 289 | 277 |
Property, plant, and equipment: | ||
Land | 97 | 86 |
Buildings | 717 | 660 |
Equipment | 889 | 849 |
Construction in process | 217 | 129 |
Property, plant and equipment, gross | 1,920 | 1,724 |
Less accumulated depreciation | 889 | 849 |
Property, plant, and equipment, net | 1,031 | 875 |
Accounts payable and accrued expenses: | ||
Accounts payable, trade | 308 | 218 |
Accrued expenses: | ||
Advertising, promotion, and discounts | 216 | 200 |
Compensation and commissions | 106 | 99 |
Excise and other non-income taxes | 76 | 74 |
Other | 121 | 112 |
Accrued expenses | 519 | 485 |
Accounts payable and accrued expenses | 827 | 703 |
Other liabilities: | ||
Contingent consideration (Note 12) | 56 | 0 |
Other | 197 | 181 |
Other liabilities | 253 | 181 |
Accumulated other comprehensive income (loss), net of tax: | ||
Currency translation adjustments | (104) | (239) |
Cash flow hedge adjustments | 10 | 37 |
Postretirement benefits adjustments | (141) | (150) |
Accumulated other comprehensive income (loss), net of tax: | $ (235) | $ (352) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 783 | $ 838 | $ 903 |
Share data (in thousands): | |||
Basic average common shares outstanding (shares) | 479,155 | 478,879 | 478,527 |
Dilutive effect of stock-based awards (shares) | 1,310 | 1,686 | 2,150 |
Diluted average common shares outstanding (shares) | 480,465 | 480,565 | 480,677 |
Basic earnings per share (dollars per share) | $ 1.63 | $ 1.75 | $ 1.89 |
Diluted earnings per share (dollars per share) | $ 1.63 | $ 1.74 | $ 1.88 |
Antidilutive common stock-based awards excluded from calculation of diluted earnings per share (shares) | 1,107 | 691 | 234 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 761 | $ 779 |
Acquisition of business (Note 12) | 652 | |
Foreign currency translation adjustment | 44 | (18) |
Impairment | 0 | 0 |
Ending balance | 1,457 | 761 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 586 | 676 |
Acquisition of business (Note 12) | 619 | |
Foreign currency translation adjustment | 55 | (38) |
Impairment | (96) | (52) |
Ending balance | $ 1,164 | $ 586 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Impairment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 96 | $ 52 | |
Intangible Assets, Net (Excluding Goodwill) | 1,164 | $ 586 | $ 676 |
Finlandia | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Intangible Assets, Net (Excluding Goodwill) | $ 91 |
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, 2023 USD ($) | Apr. 30, 2022 USD ($) | Apr. 30, 2023 EUR (€) | Apr. 30, 2023 GBP (£) | Mar. 23, 2023 USD ($) | Jan. 15, 2023 | Apr. 30, 2022 EUR (€) | Apr. 30, 2022 GBP (£) | |
Debt Instrument [Line Items] | ||||||||
Long-term debt, including current portion | $ 2,678 | $ 2,269 | ||||||
Current portion of long-term debt | 0 | 250 | ||||||
Long-term debt | 2,678 | 2,019 | ||||||
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% | 2.25% | |
Long-term debt, including current portion | $ 0 | $ 250 | ||||||
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% | ||
Long-term debt, including current portion | $ 299 | $ 298 | ||||||
1.20% senior notes, due July 7, 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | € | € 300 | € 300 | ||||||
Debt Instrument, Maturity Date | Jul. 07, 2026 | Jul. 07, 2026 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | ||
Long-term debt, including current portion | $ 330 | $ 315 | ||||||
2.60% senior notes, due July 7, 2028 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | £ | £ 300 | £ 300 | ||||||
Debt Instrument, Maturity Date | Jul. 07, 2028 | Jul. 07, 2028 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | ||
Long-term debt, including current portion | $ 375 | $ 374 | ||||||
4.75% senior notes, due April 15, 2033 {Member} | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 650 | $ 650 | $ 650 | |||||
Debt Instrument, Maturity Date | Apr. 15, 2033 | Apr. 15, 2033 | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | |
Long-term debt, including current portion | $ 642 | $ 0 | ||||||
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% | 4% | 4% | 4% | 4% | 4% | ||
Long-term debt, including current portion | $ 295 | $ 295 | ||||||
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% | ||
Long-term debt, including current portion | $ 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% | ||
Long-term debt, including current portion | $ 489 | $ 489 |
Debt and Credit Facilities (Tex
Debt and Credit Facilities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Mar. 23, 2023 | Jan. 15, 2023 | Apr. 30, 2023 | Jan. 03, 2023 | Apr. 30, 2022 | |
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
2024 | $ 0 | ||||
2025 | 300 | ||||
2026 | 0 | ||||
2027 | 331 | ||||
2028 | 0 | ||||
After 2028 | $ 2,077 | ||||
364-Day Term Loan Credit Agreement | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Maximum Borrowing Capacity | $ 600 | ||||
Short-Term Debt, Weighted Average Interest Rate, over Time | 5.36% | ||||
Repayments of Debt | $ 600 | ||||
2.25% senior notes, due January 15, 2023 [Member] | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | 2.25% | ||
Repayments of Debt | $ 250 | ||||
4.75% senior notes, due April 15, 2033 {Member} | |||||
Long-term Debt, Fiscal Year Maturity [Abstract] | |||||
Debt Instrument, Face Amount | $ 650 | $ 650 | $ 650 | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% |
Debt and Credit Facilities Shor
Debt and Credit Facilities Short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Short-Term Debt [Abstract] | ||
Short-term borrowings | $ 235 | $ 0 |
Commercial Paper | $ 235 | $ 0 |
Commercial Paper, Weighted Average Interest Rate, at Point in Time | 5.17% | 0% |
Commercial Paper Borrowings, Average Remaining Maturity | 21 days | 0 days |
Debt and Credit Facilities Cred
Debt and Credit Facilities Credit Facilities (Details) - USD ($) | May 26, 2023 | Apr. 30, 2023 |
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 | |
Nine Hundred Million Credit Facility Expiring May 2028 | Subsequent Event [Member] | ||
Line of Credit Facility [Line Items] | ||
Line of Credit Facility, Current Borrowing Capacity | $ 900,000,000 |
Common Stock Rollforward of Out
Common Stock Rollforward of Outstanding Shares (Details) - shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Class of Stock [Line Items] | |||
Beginning balance | 479,020 | 478,729 | 478,209 |
Stock issued under compensation plans | 296 | 291 | 520 |
Ending balance | 479,316 | 479,020 | 478,729 |
Common stock, Class A, voting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 169,175 | 169,110 | 169,040 |
Stock issued under compensation plans | 65 | 65 | 70 |
Ending balance | 169,240 | 169,175 | 169,110 |
Common Stock, Class B, nonvoting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 309,845 | 309,619 | 309,169 |
Stock issued under compensation plans | 231 | 226 | 450 |
Ending balance | 310,076 | 309,845 | 309,619 |
Net Sales by Geography (Details
Net Sales by Geography (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,228 | $ 3,933 | $ 3,461 | |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | 1,968 | 1,917 | 1,748 | |
Developed International [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 1,183 | 1,137 | 1,014 |
Emerging [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 842 | 714 | 578 |
Travel Retail [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 147 | 104 | 63 |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | $ 88 | $ 61 | $ 58 |
[1]Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our top developed international markets are Germany, Australia, the United Kingdom, France, Canada, and Japan.[2]Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our top emerging markets are Mexico, Poland, and Brazil.[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, contract bottling services, and bulk whiskey and wine, regardless of customer location. |
Net Sales by Product Category (
Net Sales by Product Category (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Net sales | $ 4,228 | $ 3,933 | $ 3,461 | |
Whiskey [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [1] | 2,915 | 2,756 | 2,410 |
Ready-to-Drink [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [2] | 509 | 431 | 406 |
Tequila [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [3] | 320 | 290 | 229 |
Wine [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [4] | 206 | 219 | 206 |
Vodka [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [5] | 99 | 109 | 90 |
Non-branded and bulk [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [6] | 88 | 61 | 58 |
Rest of portfolio [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Net sales | [7] | $ 91 | $ 67 | $ 62 |
[1]Includes all whiskey spirits and whiskey-based flavored liqueurs. The brands included in this category are the Jack Daniel’s family of brands (excluding the “ready-to-drink” products outlined below), the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft.[2]Includes the Jack Daniel’s ready-to-drink (RTD) and ready-to-pour (RTP) products, New Mix, and other RTD/RTP products.[3]Includes the Herradura family of brands, el Jimador, New Mix, and other tequilas.[4]Includes Korbel California Champagne and Sonoma-Cutrer wines.[5]Includes Finlandia.[6]Includes net sales of used barrels, contract bottling services, and bulk whiskey and wine.[7]Includes Chambord, Gin Mare, Korbel Brandy, Diplomático, and Fords Gin. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Pension Benefits [Member] | ||||
Changes in present value of pension and other postretirement benefits | ||||
Obligation at beginning of year | $ 846 | $ 1,012 | ||
Service cost | 20 | 26 | $ 26 | |
Interest cost | 32 | 22 | 25 | |
Net actuarial loss (gain)1 | [1] | (21) | (132) | |
Retiree contributions | 0 | 0 | ||
Benefits paid | (146) | (82) | ||
Obligation at end of year | 731 | 846 | 1,012 | |
Medical and Life Insurance Benefits [Member] | ||||
Changes in present value of pension and other postretirement benefits | ||||
Obligation at beginning of year | 43 | 49 | ||
Service cost | 1 | 1 | 1 | |
Interest cost | 1 | 1 | 1 | |
Net actuarial loss (gain)1 | [1] | (2) | (5) | |
Retiree contributions | 2 | 1 | ||
Benefits paid | (5) | (4) | ||
Obligation at end of year | $ 40 | $ 43 | $ 49 | |
[1]The net actuarial loss (gain) during each year was primarily attributable to changes in discount rates |
Pension and Other Postretirem_4
Pension and Other Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Apr. 30, 2023 USD ($) |
Pension Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2024 | $ 53 |
2025 | 52 |
2026 | 54 |
2027 | 55 |
2028 | 56 |
2029 – 2033 | 287 |
Medical and Life Insurance Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2024 | 4 |
2025 | 3 |
2026 | 3 |
2027 | 3 |
2028 | 3 |
2029 – 2033 | $ 15 |
Pension and Other Postretirem_5
Pension and Other Postretirement Benefits Target asset allocation (Details) | Apr. 30, 2023 |
Public Equity Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 31% |
Fixed Income Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 58% |
Alternative Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Plan Assets, Target Allocation, Percentage | 11% |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | $ 606 | $ 741 | ||
Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 37 | 78 | ||
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 | 1 | 2 | $ 2 | |
Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 38 | 80 | ||
Equity Securities [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 35 | 78 | ||
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 | 35 | 78 | ||
Cash And Temporary Investments [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 2 | |||
Cash And Temporary Investments [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | |||
Cash And Temporary Investments [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | |||
Cash And Temporary Investments [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 2 | |||
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] | 1 | 2 | |
Limited Partnership Interests [Member] | Fair Value, Inputs, Level 1, 2 and 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 1 | 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] | 39 | 41 | |
Equity Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 138 | 218 | |
Fixed Income Funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 330 | 318 | |
Real Estate funds [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 59 | 78 | |
Short-term Investments [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | $ 2 | $ 6 | |
[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 2023.[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, 2023 | Apr. 30, 2022 | |
Change in fair value of Level 3 Assets | ||
Beginning balance | $ 741 | |
Ending balance | 606 | $ 741 |
Level 3 [Member] | ||
Change in fair value of Level 3 Assets | ||
Beginning balance | 2 | 2 |
Return on assets held at end of year | (1) | 0 |
Ending balance | $ 1 | $ 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, 2023 | Apr. 30, 2022 | |
Change in fair value of pension plan Assets | ||
Beginning balance | $ 741 | |
Ending balance | 606 | $ 741 |
Pension Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 741 | 836 |
Actual return on assets | (7) | (25) |
Retiree contributions | 0 | 0 |
Company contributions | 18 | 12 |
Benefits paid | (146) | (82) |
Ending balance | 606 | 741 |
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 | 2 | 1 |
Company contributions | 3 | 3 |
Benefits paid | (5) | (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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 |
Funded Status of Plans | |||
Assets | $ 606 | $ 741 | |
Pension Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 606 | 741 | $ 836 |
Obligations | (731) | (846) | (1,012) |
Funded status | (125) | (105) | |
Medical and Life Insurance Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 0 | 0 | 0 |
Obligations | (40) | (43) | $ (49) |
Funded status | $ (40) | $ (43) |
Pension and Other Postretire_10
Pension and Other Postretirement Benefits (Funded Status Recorded on Accompanying Balance Sheets) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accrued pension and other postretirement benefits | $ (171) | $ (183) |
Pension Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Other assets | 17 | 46 |
Accounts payable and accrued expenses | (8) | (8) |
Accrued pension and other postretirement benefits | (134) | (143) |
Net liability | (125) | (105) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (192) | (201) |
Prior service credit (cost) | (4) | (4) |
Total | (196) | (205) |
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 pension and other postretirement benefits | (37) | (40) |
Net liability | (40) | (43) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (1) | (3) |
Prior service credit (cost) | 2 | 2 |
Total | $ 1 | $ (1) |
Pension and Other Postretire_11
Pension and Other Postretirement Benefits (Plans with ABO in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total, Plan Assets | $ 606 | $ 741 | |
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 | (131) | (135) | |
Defined Benefit Plan Pension Plans With Assets In Excess Of Accumulated Benefit Obligation Aggregate Accumulated Benefit Obligation | (524) | (623) | |
Defined Benefit Plan, Accumulated Benefit Obligation | (655) | (758) | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 0 | 0 | |
Defined Benefit Plan Pension Plans With Assets In Excess Of Accumulated Benefit Obligation Aggregate Fair Value Of Plan Assets | 606 | 741 | |
Total, Plan Assets | $ 606 | $ 741 | $ 836 |
Pension and Other Postretire_12
Pension and Other Postretirement Benefits (Plans with PBO in Excess of Plan Assets) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Total, Plan Assets | $ 606 | $ 741 | |
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 | (190) | (150) | |
Defined Benefit Plan, Pension Plan with Plan Assets in Excess of Projected Benefit Obligation, Projected Benefit Obligation | (541) | (696) | |
Defined Benefit Plan, Benefit Obligation | (731) | (846) | $ (1,012) |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | 48 | 0 | |
Defined Benefit Plan, Pension Plan with Plan Assets in Excess of Projected Benefit Obligation, Plan Assets | 558 | 741 | |
Total, Plan Assets | $ 606 | $ 741 | $ 836 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Pension Expense | |||
Service cost | $ 20 | $ 26 | $ 26 |
Interest cost | 32 | 22 | 25 |
Expected return on assets | (43) | (45) | (46) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Amortization of net actuarial loss (gain) | 9 | 23 | 27 |
Settlement charge | 29 | 12 | 0 |
Net cost | $ 48 | $ 39 | $ 33 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Postretirement medical and life insurance benefit expense | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 1 | 1 | 1 |
Amortization of prior service cost (credit) | 0 | (2) | (3) |
Amortization of net actuarial loss (gain) | 0 | 1 | 1 |
Net cost | $ 2 | $ 1 | $ 0 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Pension Benefits [Member] | |||
Amounts recognized in OCI | |||
Net actuarial gain (loss) | $ (29) | $ 62 | $ 69 |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | 1 | 1 | 1 |
Net actuarial loss (gain) | 38 | 35 | 27 |
Net amount recognized in OCI | 10 | 98 | 97 |
Medical and Life Insurance Benefits [Member] | |||
Amounts recognized in OCI | |||
Net actuarial gain (loss) | 2 | 5 | 1 |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | 0 | (2) | (3) |
Net actuarial loss (gain) | 0 | 1 | 1 |
Net amount recognized in OCI | $ 2 | $ 4 | $ (1) |
Pension and Other Postretire_16
Pension and Other Postretirement Benefits (Assumptions and SensItivity) (Details) | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Pension Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 4.91% | 4.36% | |
Rate of salary increase (percent) | 4% | 4% | |
Interest crediting rate (percent) | 3.69% | 3.06% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 4.52% | 3.36% | 3.49% |
Discount rate for interest cost (percent) | 4.12% | 2.34% | 2.56% |
Rate of salary increase (percent) | 4% | 4% | 4% |
Interest crediting rate (percent) | 3.06% | 3.06% | 3.07% |
Expected return on plan assets (percent) | 6.25% | 6.25% | 6.50% |
Medical and Life Insurance Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 4.86% | 4.33% | |
Assumptions used in computing benefit plan expense | |||
Discount rate for service cost (percent) | 4.50% | 3.49% | 3.59% |
Discount rate for interest cost (percent) | 3.96% | 2.27% | 2.47% |
Assumed health care cost trend rates | |||
Health care cost trend rate assumed for next year (percent) | 7.23% | 6.10% | |
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) (percent) | 4.50% | 4.50% |
Pension and Other Postretire_17
Pension and Other Postretirement Benefits Sponsor Location (Details) | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Pension Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Sponsor Location [Extensible List] | Domestic Plan [Member] | Domestic Plan [Member] |
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] | Domestic Plan [Member] | Domestic Plan [Member] |
Pension and Other Postretire_18
Pension and Other Postretirement Benefits (Textual) (Details) $ in Millions | Apr. 30, 2023 USD ($) |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2023 | $ 14 |
Medical and Life Insurance Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2023 | $ 4 |
Pension and Other Postretire_19
Pension and Other Postretirement Benefits (Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Retirement Benefits [Abstract] | |||
Expense for matching contributions | $ 14 | $ 13 | $ 12 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | Apr. 30, 2023 shares |
Share-Based Payment Arrangement [Abstract] | |
Shares authorized under 2022 Omnibus Compensation Plan (shares) | 12,412,433 |
Share remaining available for issuance under 2022 Omnibus Compensation Plan (shares) | 11,844,000 |
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, 2023 USD ($) $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |
Outstanding, beginning balance (shares) | shares | 4,232 |
SSARs granted (shares) | shares | 387 |
SSARs exercised (shares) | shares | (579) |
SSARs forfeited or expired (shares) | shares | (30) |
Outstanding, ending balance (shares) | shares | 4,010 |
SSARs exercisable (shares) | shares | 2,758 |
Weighted Average Exercise Price [Roll Forward] | |
Weighted average exercise price, beginning (dollars per share) | $ / shares | $ 47.54 |
Weighted average exercise price, grants in period (dollars per share) | $ / shares | 73.61 |
Weighted average exercise price, exercises in period (dollars per share) | $ / shares | 34.58 |
Weighted average exercise price, forfeitures and expirations in period (dollars per share) | $ / shares | 70.63 |
Weighted average exercise price, ending (dollars per share) | $ / shares | 51.76 |
Weighted average exercise price, exercisable (dollars per share) | $ / shares | $ 43.23 |
SSARs outstanding, Weighted Average Remaining Contractual Term (years) | 4 years 9 months 18 days |
SSARs exercisable, Weighted Average Remaining Contractual Term (years) | 3 years 6 months |
SSARs outstanding, Aggregate Intrinsic Value | $ | $ 60 |
SSARs exercisable, Aggregate Intrinsic Value | $ | $ 60 |
Stock-Based Compensation SSAR_2
Stock-Based Compensation SSARs Fair Value Assumptions (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gran-date fair value (dollars per share) | $ 20.67 | $ 16.61 | $ 14.61 |
Expected term (years) | 7 years | 7 years | 7 years |
Risk-free interest rate (percent) | 2.70% | 1% | 0.40% |
Expected volatility (percent) | 24.80% | 24.10% | 23.30% |
Expected dividend yield (percent) | 1% | 1% | 1% |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Number of PBRSUs [Roll Forward] | |||
Outstanding, beginning balance (shares) | 270 | ||
PBRSUs granted (shares) | 110 | ||
PBRSUs adjusted for performance and dividends | (14) | ||
PBRSUs converted to common shares (shares) | (70) | ||
PBRSUs forfeited (shares) | (7) | ||
Outstanding, ending balance (shares) | 289 | 270 | |
Weighted Average Fair Value at Grant Date [Roll Forward] | |||
Weighted Average Fair Value at Grant Date, Outstanding, Beginning (dollars per share) | $ 67.02 | ||
Weighted Average Fair Value at Grant Date, Granted (dollars per share) | 84.75 | $ 70.11 | $ 73.68 |
Weighted Average Fair Value at Grant Date, Adjusted for Performance and Dividends (dollars per share) | 56.98 | ||
Weighted Average Fair Value at Grant Date, Converted to Common Shares (dollars per share) | 56.98 | ||
Weighted Average Fair Value at Grant Date, Forfeited (dollars per share) | 82.42 | ||
Weighted Average Fair Value at Grant Date, Outstanding, Ending (dollars per share) | $ 76.33 | $ 67.02 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Gran-date fair value (dollars per share) | $ 84.75 | $ 70.11 | $ 73.68 |
Risk-free interest rate (percent) | 2.80% | 0.30% | 0.10% |
Expected volatility (percent) | 29.80% | 29.10% | 29.90% |
Expected dividend yield (percent) | 1% | 1% | 1.10% |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
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 | 185,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 168,000 | ||
Gran-date fair value (dollars per share) | $ 72.10 | $ 67.35 | $ 63.01 |
Stock-Based Compensation Additi
Stock-Based Compensation Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Pre-tax compensation expense | $ 18 | $ 15 | $ 12 |
Deferred tax benefit | 3 | 2 | 2 |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 9 | ||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 1 year 4 months 24 days | ||
Intrinsic value of SSARs exercised | $ 19 | 23 | 47 |
Fair value of shares vested | 6 | 7 | 13 |
Excess tax benefit from exercise / vesting of awards | $ 4 | $ 6 | $ 10 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Domestic and Foreign components of our Income before Income taxes | |||
United States | $ 841 | $ 954 | $ 832 |
Foreign | 176 | 160 | 249 |
Income before income taxes | $ 1,017 | $ 1,114 | $ 1,081 |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Current: | |||
U.S. federal | $ 157 | $ 205 | $ 146 |
Foreign | 46 | 64 | 50 |
State and local | 34 | 18 | 35 |
Current income tax expense | 237 | 287 | 231 |
Deferred: | |||
U.S. federal | (4) | 1 | (4) |
Foreign | 6 | (9) | (47) |
State and local | (5) | (3) | (2) |
Deferred income taxes expense | (3) | (11) | (53) |
Total income tax expense | $ 234 | $ 276 | $ 178 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Reconciles our effective tax rate to the federal statutory tax rate in the United States | |||
U.S. federal statutory rate | 21% | 21% | 21% |
State taxes, net of U.S. federal tax benefit | 2.50% | 1% | 2.40% |
Income taxed at other than U.S. federal statutory rate | 3% | 1.30% | 0.30% |
Prior intercompany sales taxed at higher than current U.S. federal statutory rate | 1% | 2% | 0.20% |
Tax benefit from foreign-derived sales | (3.00%) | (1.80%) | (1.70%) |
Adjustments related to prior years | (0.50%) | 0.70% | (0.20%) |
Excess tax benefits from stock-based awards | (0.30%) | (0.50%) | (1.00%) |
Tax rate changes | 0% | 0.40% | 0% |
Intercompany transfer of assets | 0% | 0% | (4.00%) |
Valuation allowance | (1.30%) | 0% | 0% |
Other, net | 0.60% | 0.70% | (0.50%) |
Effective rate | 23% | 24.80% | 16.50% |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Deferred tax assets: | ||
Postretirement and other benefits | $ 75 | $ 69 |
Accrued liabilities and other | 35 | 36 |
Inventories | 26 | 40 |
Lease liabilities | 23 | 20 |
Loss and credit carryforwards | 62 | 69 |
Total deferred tax assets | 221 | 234 |
Valuation allowance | (14) | (27) |
Total deferred tax assets, net of valuation allowance | 207 | 207 |
Deferred tax liabilities: | ||
Intangible assets | (323) | (219) |
Property, plant, and equipment | (98) | (87) |
Right-of-use assets | (23) | (20) |
Derivative instruments | (3) | (11) |
Other | (17) | (15) |
Total deferred tax liabilities | (464) | (352) |
Net deferred tax liability | $ (257) | $ (145) |
Income Taxes (Loss Carryforward
Income Taxes (Loss Carryforwards) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 | |
Operating Loss Carryforwards [Line Items] | |||
Loss and Credit Carryforwards | $ 327 | $ 294 | |
Deferred Tax Assets, Loss and Credit Carryforwards | 62 | 69 | |
Loss and Credit Carryforwards, Valuation Allowance | (14) | (27) | |
Domestic Tax Authority | |||
Operating Loss Carryforwards [Line Items] | |||
Loss and Credit Carryforwards | 111 | 53 | |
Deferred Tax Assets, Loss and Credit Carryforwards | 20 | [1] | 19 |
Loss and Credit Carryforwards, Valuation Allowance | (6) | (8) | |
Domestic Tax Authority | Not Subject to Expiration [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Loss and Credit Carryforwards | 10 | ||
Domestic Tax Authority | Subject to Expiration [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Loss and Credit Carryforwards | 10 | ||
Foreign Tax Authority [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Loss and Credit Carryforwards | 216 | 241 | |
Deferred Tax Assets, Loss and Credit Carryforwards | 42 | [2] | 50 |
Loss and Credit Carryforwards, Valuation Allowance | (8) | $ (19) | |
Foreign Tax Authority [Member] | Not Subject to Expiration [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Loss and Credit Carryforwards | 19 | ||
Foreign Tax Authority [Member] | Subject to Expiration [Member] | |||
Operating Loss Carryforwards [Line Items] | |||
Deferred Tax Assets, Loss and Credit Carryforwards | $ 23 | ||
[1] As of April 30, 2023, the deferred tax asset amount includes credit carryforwards of $10 that d o not expire and loss and credit carryforwards of $10 that expire in varying amounts from 2023 to 2039. As of April 30, 2023, the deferred tax asset includes loss carryforwards of $19 that do no t expire and $23 that expire in va rying amounts over the next 10 years. |
Income Taxes (Earnings of Forei
Income Taxes (Earnings of Foreign Subsidiaries) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Undistributed Earnings of Foreign Subsidiaries | $ 1,617 | $ 1,446 |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 14 | $ 12 | $ 11 |
Additions for tax positions provided in prior periods | 8 | 2 | 1 |
Additions for tax positions provided in current period | 3 | 2 | 2 |
Settlements of tax positions in the current period | 0 | 0 | (1) |
Lapse of statutes of limitations | (4) | (2) | (1) |
Unrecognized tax benefits at end of year | 21 | $ 14 | $ 12 |
Unrecognized Tax Benefits [Abstract] | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 17 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0 |
Acquisitions (Details)
Acquisitions (Details) € in Millions | 12 Months Ended | ||||||
Jan. 05, 2023 USD ($) | Nov. 03, 2022 USD ($) | Apr. 30, 2023 USD ($) | Nov. 03, 2022 EUR (€) | Apr. 30, 2022 USD ($) | Apr. 30, 2021 USD ($) | ||
Business Acquisition [Line Items] | |||||||
Business Combination, Contingent Consideration, Liability | $ 56,000,000 | $ 0 | |||||
Goodwill | 1,457,000,000 | $ 761,000,000 | $ 779,000,000 | ||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 55,000,000 | ||||||
Selling, General and Administrative Expenses | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | 11,000,000 | ||||||
Other expense (income), net | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Separately Recognized Transactions, Additional Disclosures, Acquisition Cost Expensed | $ 44,000,000 | ||||||
Gin Mare | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | 100% | |||||
Business Combination, Consideration Transferred | $ 524,000,000 | ||||||
Payments to Acquire Businesses, Gross | 468,000,000 | ||||||
Business Combination, Contingent Consideration, Liability | 56,000,000 | ||||||
Trademarks and brand names (indefinite-lived) | 307,000,000 | ||||||
Goodwill | 289,000,000 | ||||||
Total assets | 596,000,000 | ||||||
Deferred tax liabilities | 72,000,000 | ||||||
Net assets acquired | 524,000,000 | ||||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 89,000,000 | € 90 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | ||||||
Gin Mare | Initial Allocation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Trademarks and brand names (indefinite-lived) | [1] | 308,000,000 | |||||
Goodwill | [1] | 288,000,000 | |||||
Total assets | [1] | 596,000,000 | |||||
Deferred tax liabilities | [1] | 72,000,000 | |||||
Net assets acquired | [1] | 524,000,000 | |||||
Gin Mare | Adjustments {Member] | |||||||
Business Acquisition [Line Items] | |||||||
Trademarks and brand names (indefinite-lived) | (1,000,000) | ||||||
Goodwill | 1,000,000 | ||||||
Total assets | 0 | ||||||
Deferred tax liabilities | 0 | ||||||
Net assets acquired | $ 0 | ||||||
Diplomatico | |||||||
Business Acquisition [Line Items] | |||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | ||||||
Payments to Acquire Businesses, Gross | $ 727,000,000 | ||||||
Accounts receivable | 11,000,000 | ||||||
Inventories | 36,000,000 | ||||||
Other current assets | 25,000,000 | ||||||
Property, plant, and equipment | 38,000,000 | ||||||
Trademarks and brand names (indefinite-lived) | 312,000,000 | ||||||
Goodwill | 363,000,000 | ||||||
Other assets | 2,000,000 | ||||||
Total assets | 787,000,000 | ||||||
Accounts payable and accrued expenses | 13,000,000 | ||||||
Deferred tax liabilities | 45,000,000 | ||||||
Other liabilities | 2,000,000 | ||||||
Total liabilities | 60,000,000 | ||||||
Net assets acquired | 727,000,000 | ||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 109,000,000 | ||||||
Diplomatico | Initial Allocation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | [1] | 11,000,000 | |||||
Inventories | [1] | 33,000,000 | |||||
Other current assets | [1] | 25,000,000 | |||||
Property, plant, and equipment | [1] | 36,000,000 | |||||
Trademarks and brand names (indefinite-lived) | [1] | 312,000,000 | |||||
Goodwill | [1] | 365,000,000 | |||||
Other assets | [1] | 0 | |||||
Total assets | [1] | 782,000,000 | |||||
Accounts payable and accrued expenses | [1] | 10,000,000 | |||||
Deferred tax liabilities | [1] | 45,000,000 | |||||
Other liabilities | [1] | 0 | |||||
Total liabilities | [1] | 55,000,000 | |||||
Net assets acquired | [1] | 727,000,000 | |||||
Diplomatico | Adjustments {Member] | |||||||
Business Acquisition [Line Items] | |||||||
Accounts receivable | 0 | ||||||
Inventories | 3,000,000 | ||||||
Other current assets | 0 | ||||||
Property, plant, and equipment | 2,000,000 | ||||||
Trademarks and brand names (indefinite-lived) | 0 | ||||||
Goodwill | (2,000,000) | ||||||
Other assets | 2,000,000 | ||||||
Total assets | 5,000,000 | ||||||
Accounts payable and accrued expenses | 3,000,000 | ||||||
Deferred tax liabilities | 0 | ||||||
Other liabilities | 2,000,000 | ||||||
Total liabilities | 5,000,000 | ||||||
Net assets acquired | $ 0 | ||||||
[1]As reported in Note 14 to our condensed consolidated financial statements in our Quarterly Report on Form 10-Q for the quarter ended January 31, 2023. |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | Jul. 31, 2022 | |
Acquisitions and Divestiture [Abstract] | ||||
Proceeds from Divestiture of Businesses | $ 0 | $ 0 | $ 177 | |
Disposal Group, Including Discontinued Operation, Assets | $ 50 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 0 | $ 0 | $ 127 |
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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract] | |||
Sales | $ 5,372 | $ 5,081 | $ 4,526 |
Other income (expense), net | (119) | (59) | 15 |
Foreign Currency Denominated Debt [Member] | |||
Foreign currency-denominated debt designated as net investment hedge: [Abstract] | |||
Net gain (loss) recognized in AOCI | 3 | 78 | (73) |
Currency derivatives [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) recognized in AOCI | 4 | 76 | (78) |
Currency derivatives [Member] | Sales [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) reclassified from AOCI into earnings | 37 | 5 | 21 |
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | (1) | 12 | (13) |
Currency derivatives [Member] | Other Income (Expense), Net [Member] | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) reclassified from AOCI into earnings | 0 | 2 | 0 |
Currency derivatives not designated as hedging instruments: [Abstract] | |||
Net gain (loss) recognized in earnings | 16 | 5 | 17 |
Interest Rate Contract | |||
Currency derivatives designated as cash flow hedges: [Abstract] | |||
Net gain (loss) recognized in AOCI | $ (1) | $ 0 | $ 0 |
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, 2023 | Apr. 30, 2022 |
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | $ 28 | $ 52 |
Derivative Liability, Fair Value, Gross Liability | (14) | (5) |
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 | 20 | 32 |
Derivative Liability, Fair Value, Gross Liability | (11) | (3) |
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 | 5 | 20 |
Derivative Liability, Fair Value, Gross Liability | (1) | (1) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Gross Liability | (1) | |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | |
Derivative Liability, Fair Value, Gross Liability | (1) | |
Currency derivatives [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 3 | |
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 | $ (1) |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | Mar. 23, 2023 | |
Derivative Instruments and Hedging Activities [Line Items] | ||||
Maximum Remaining Maturity of Foreign Currency Derivatives | 24 months | 36 months | ||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 6 | |||
Derivative, Net Liability Position, Aggregate Fair Value | 1 | $ 0 | ||
Foreign Exchange Contract [Member] | ||||
Derivative Instruments and Hedging Activities [Line Items] | ||||
Derivative, Notional Amount | 747 | 801 | ||
Net gain (loss) recognized in AOCI | 4 | 76 | $ (78) | |
Interest Rate Contract | ||||
Derivative Instruments and Hedging Activities [Line Items] | ||||
Derivative, Notional Amount | $ 350 | |||
Net gain (loss) recognized in AOCI | (1) | 0 | $ 0 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||||
Derivative Instruments and Hedging Activities [Line Items] | ||||
Debt Instrument, Face Amount | 495 | 636 | ||
4.75% senior notes, due April 15, 2033 {Member} | ||||
Derivative Instruments and Hedging Activities [Line Items] | ||||
Debt Instrument, Face Amount | $ 650 | $ 650 | $ 650 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% |
Derivative Financial Instrume_7
Derivative Financial Instruments and Hedging Activities Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 28 | $ 52 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (12) | (4) |
Net Amount of Derivative Assets Presented in Balance Sheet | 16 | 48 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | (1) | (1) |
Net Amount of Derivative Assets | 15 | 47 |
Gross Amount of Derivative Liabilities | (14) | (5) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 12 | 4 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | (2) | (1) |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 1 | 1 |
Net Amount of Derivative Liabilities | $ (1) | $ 0 |
DerivativeAssetStatementOfFinancialPositionExtensibleEnumerationNotDisclosedFlag | true |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 |
Assets: | |||
Cash and cash equivalents, Carrying Amount | $ 374 | $ 868 | $ 1,150 |
Cash and cash equivalents, Fair Value | 374 | 868 | |
Liabilities: | |||
Contingent consideration, Carrying Amount | 56 | 0 | |
Short-term borrowings, Carrying Amount | 235 | 0 | |
Short-term borrowings, Fair Value | 235 | 0 | |
Long-term debt (including current portion), Carrying Amount | 2,678 | 2,269 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Currency derivatives, Fair Value | 16 | 48 | |
Liabilities: | |||
Currency derivatives, Fair Value | 2 | 1 | |
Long-term debt (including current portion), Fair Value | 2,556 | 2,239 | |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities: | |||
Contingent consideration, Fair Value | 56 | 0 | |
Foreign Exchange Contract [Member] | |||
Assets: | |||
Currency derivatives, Carrying Amount | 16 | 48 | |
Liabilities: | |||
Currency derivatives, Carrying Amount | $ 2 | $ 1 |
Impairment Charges (Details)
Impairment Charges (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2023 | Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | ||
Tangible Asset Impairment Charges | $ 9 | |
Impairment of Intangible Assets, Indefinite-lived (Excluding Goodwill) | $ 96 | $ 52 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment, Intangible Asset, Indefinite-Lived (Excluding Goodwill), Statement of Income or Comprehensive Income [Extensible Enumeration] | Other income (expense), net | Other income (expense), net |
Leases ROU Assets and Liabiliti
Leases ROU Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Leases [Abstract] | ||
Right-of-use assets | $ 84 | $ 74 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | ||
Lease Liabilities: | ||
Current | $ 22 | $ 21 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | ||
Non-current | $ 63 | $ 54 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | ||
Total | $ 85 | $ 75 |
Weighted-average discount rate | 3.30% | 1.80% |
Weighted-average remaining term | 5 years 1 month 6 days | 5 years |
Leases Lease Cost and Other Inf
Leases Lease Cost and Other Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Leases [Abstract] | ||||
Total lease cost | [1] | $ 38 | $ 38 | $ 41 |
Cash paid for amounts included in the measurement of lease liabilities | [2] | 25 | 25 | 26 |
Right-of-use assets obtained in exchange for new lease liabilities | $ 29 | $ 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 statements of cash flows. |
Leases Future Operating Lease P
Leases Future Operating Lease Payments (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Leases [Abstract] | ||
2024 | $ 24 | |
2025 | 19 | |
2026 | 15 | |
2027 | 13 | |
2028 | 9 | |
Thereafter | 12 | |
Total lease payments | 92 | |
Less: Present value discount | (7) | |
Lease liabilities | $ 85 | $ 75 |
Other Comprehensive Income Sche
Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | ||
Before Tax: | ||||
Net other comprehensive income (loss) | $ 113 | $ 128 | $ 108 | |
Tax Effect: | ||||
Net other comprehensive income (loss) | 4 | (58) | 17 | |
Net of Tax: | ||||
Net other comprehensive income (loss) | 117 | 70 | 125 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 135 | (42) | 106 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 135 | (42) | 106 | |
Tax Effect: | ||||
Net gain (loss) | 0 | (18) | 17 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 0 | (18) | 17 | |
Net of Tax: | ||||
Net gain (loss) | 135 | (60) | 123 | |
Reclassification to earnings | 0 | 0 | 0 | |
Net other comprehensive income (loss) | 135 | (60) | 123 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 3 | 76 | (78) | |
Reclassification to earnings | [1] | (37) | (7) | (21) |
Net other comprehensive income (loss) | (34) | 69 | (99) | |
Tax Effect: | ||||
Net gain (loss) | (1) | (17) | 17 | |
Reclassification to earnings | 8 | 1 | 6 | |
Net other comprehensive income (loss) | 7 | (16) | 23 | |
Net of Tax: | ||||
Net gain (loss) | 2 | 59 | (61) | |
Reclassification to earnings | (29) | (6) | (15) | |
Net other comprehensive income (loss) | (27) | 53 | (76) | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | (26) | 67 | 71 | |
Reclassification to earnings | [2] | 38 | 34 | 30 |
Net other comprehensive income (loss) | 12 | 101 | 101 | |
Tax Effect: | ||||
Net gain (loss) | 6 | (16) | (16) | |
Reclassification to earnings | (9) | (8) | (7) | |
Net other comprehensive income (loss) | (3) | (24) | (23) | |
Net of Tax: | ||||
Net gain (loss) | (20) | 51 | 55 | |
Reclassification to earnings | 29 | 26 | 23 | |
Net other comprehensive income (loss) | 9 | 77 | $ 78 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Gain on sale of business | ||||
Before Tax: | ||||
Reclassification to earnings | $ 4 | |||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Other Income [Member] | ||||
Before Tax: | ||||
Reclassification to earnings | $ (2) | |||
[1]For 2022, $(2) of the pre-tax amount of $(7) is classified in other income in the accompanying consolidated statements of operations. Otherwise, the pre-tax amount for each year is classified as sales.[2]For 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, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 4,228 | $ 3,933 | $ 3,461 |
United States | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 1,968 | 1,917 | 1,748 |
Mexico | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 244 | 178 | 150 |
Germany | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 239 | 228 | 206 |
Australia | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 221 | 219 | 209 |
United Kingdom | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | 207 | 218 | 205 |
Other Countries | |||
Geographic Areas, Revenues from External Customers [Abstract] | |||
Net sales | $ 1,349 | $ 1,173 | $ 943 |
Supplemental Information Major
Supplemental Information Major Customers (Details) - Revenue from Contract with Customer, Product and Service Benchmark [Member] - Customer Concentration Risk | 12 Months Ended | ||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |
Largest Customer [Member] | |||
Percentage of Net Sales from Major Customers [Abstract] | |||
Concentration Risk, Percentage | 14% | 14% | 19% |
Second Largest Customer [Member] | |||
Percentage of Net Sales from Major Customers [Abstract] | |||
Concentration Risk, Percentage | 12% | 12% | 13% |
Supplemental Information (PP&E)
Supplemental Information (PP&E) (Details) - USD ($) $ in Millions | Apr. 30, 2023 | Apr. 30, 2022 |
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 1,031 | $ 875 |
Non-US [Member] | ||
Property, Plant and Equipment [Abstract] | ||
Property, Plant and Equipment, Net | $ 204 | $ 116 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2023 | Apr. 30, 2022 | Apr. 30, 2021 | |||
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 | $ 13 | $ 7 | $ 11 | ||
Additions Charged to Costs and Expenses | 0 | 7 | 0 | ||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 6 | [1] | 1 | 4 | [1] |
Balance at End of Period | 7 | 13 | 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 | 27 | 20 | 22 | ||
Additions Charged to Costs and Expenses | 4 | 8 | 10 | ||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 17 | 1 | 12 | ||
Balance at End of Period | $ 14 | $ 27 | $ 20 | ||
[1]Doubtful accounts written off, net of recoveries. |