Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2023 | Aug. 25, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jul. 31, 2023 | |
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 Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000014693 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --04-30 | |
Common stock, Class A, voting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock (voting), $0.15 par value | |
Trading Symbol | BFA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 169,254,084 | |
Common stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock (nonvoting), $0.15 par value | |
Trading Symbol | BFB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 310,135,517 | |
1.20% notes, due July 7, 2026 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.200% Notes due 2026 | |
Trading Symbol | BF26 | |
Security Exchange Name | NYSE | |
2.60% notes, due July 7, 2028 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.600% Notes due 2028 | |
Trading Symbol | BF28 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Income Statement [Abstract] | ||
Sales | $ 1,326 | $ 1,288 |
Excise taxes | 288 | 281 |
Net sales | 1,038 | 1,007 |
Cost of sales | 387 | 385 |
Gross profit | 651 | 622 |
Advertising expenses | 131 | 110 |
Selling, general, and administrative expenses | 200 | 175 |
Other expense (income), net | (7) | (6) |
Operating income | 327 | 343 |
Non-operating postretirement expense | 1 | 0 |
Interest income | (2) | (2) |
Interest expense | 29 | 19 |
Income before income taxes | 299 | 326 |
Income taxes | 68 | 77 |
Net income | $ 231 | $ 249 |
Earnings per share: | ||
Basic (dollars per share) | $ 0.48 | $ 0.52 |
Diluted (dollars per share) | $ 0.48 | $ 0.52 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 231 | $ 249 |
Other comprehensive income (loss), net of tax: | ||
Currency translation adjustments | 39 | (5) |
Cash flow hedge adjustments | (5) | 4 |
Postretirement benefits adjustments | 2 | 2 |
Net other comprehensive income (loss) | 36 | 1 |
Comprehensive income | $ 267 | $ 250 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Assets | ||
Cash and cash equivalents | $ 426 | $ 374 |
Accounts receivable, less allowance for doubtful accounts of $7 at April 30 and $7 at July 31 | 872 | 855 |
Inventories: | ||
Barreled whiskey | 1,308 | 1,262 |
Finished goods | 596 | 509 |
Work in process | 394 | 321 |
Raw materials and supplies | 204 | 191 |
Total inventories | 2,502 | 2,283 |
Assets held for sale | 135 | 0 |
Other current assets | 255 | 289 |
Total current assets | 4,190 | 3,801 |
Property, plant, and equipment, net | 1,050 | 1,031 |
Goodwill | 1,494 | 1,457 |
Other intangible assets | 1,014 | 1,164 |
Deferred tax assets | 67 | 66 |
Other assets | 271 | 258 |
Total assets | 8,086 | 7,777 |
Liabilities | ||
Accounts payable and accrued expenses | 761 | 827 |
Dividends payable | 98 | 0 |
Accrued income taxes | 47 | 22 |
Short-term borrowings | 389 | 235 |
Liabilities held for sale | 13 | 0 |
Total current liabilities | 1,308 | 1,084 |
Long-term debt | 2,687 | 2,678 |
Deferred tax liabilities | 324 | 323 |
Accrued pension and other postretirement benefits | 171 | 171 |
Other liabilities | 258 | 253 |
Total liabilities | 4,748 | 4,509 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Additional paid-in capital | 1 | 1 |
Retained earnings | 3,674 | 3,643 |
Accumulated other comprehensive income (loss), net of tax | (199) | (235) |
Treasury stock, at cost (5,215,000 and 5,150,000 shares at April 30 and July 31, respectively) | (210) | (213) |
Total stockholders' equity | 3,338 | 3,268 |
Total liabilities and stockholders' equity | 8,086 | 7,777 |
Common stock, Class A, voting [Member] | ||
Stockholders' Equity | ||
Common stock | 25 | 25 |
Common stock, Class B, nonvoting [Member] | ||
Stockholders' Equity | ||
Common stock | $ 47 | $ 47 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 7 | $ 7 |
Treasury Stock, Common, Shares | 5,150,000 | 5,215,000 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 170,000,000 | 170,000,000 |
Nonvoting Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value (dollars per share) | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 314,532,000 | 314,532,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 231 | $ 249 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 21 | 20 |
Stock-based compensation expense | 4 | 4 |
Deferred income tax provision | 12 | 3 |
Change in fair value of contingent consideration | (7) | 0 |
Other, net | (2) | 11 |
Changes in assets and liabilities, excluding the effects of business acquisitions: | ||
Accounts receivable | (15) | (31) |
Inventories | (227) | (101) |
Other current assets | 30 | 10 |
Accounts payable and accrued expenses | (53) | (49) |
Accrued income taxes | 28 | 45 |
Other operating assets and liabilities | 16 | 12 |
Cash provided by operating activities | 38 | 173 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (49) | (33) |
Other, net | 5 | (1) |
Cash used for investing activities | (44) | (34) |
Cash flows from financing activities: | ||
Net change in other short-term borrowings | 153 | 0 |
Payments of withholding taxes related to stock-based awards | (4) | (4) |
Dividends paid | (99) | (90) |
Cash provided by (used for) financing activities | 50 | (94) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 8 | (14) |
Net increase in cash, cash equivalents, and restricted cash | 52 | 31 |
Cash, cash equivalents, and restricted cash at beginning of period | 384 | 874 |
Cash, cash equivalents, and restricted cash at end of period | 436 | 905 |
Less: Restricted cash (included in other current assets) at end of period | (10) | (6) |
Cash and cash equivalents at end of period | $ 426 | $ 899 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 3 Months Ended |
Jul. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments (unless otherwise indicated), necessary for a fair statement of our financial results for the periods presented in these financial statements. The results for interim periods are not necessarily indicative of future or annual results. We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2023 (2023 Form 10-K). We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2023 Form 10-K. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Jul. 31, 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: Three Months Ended July 31, (Dollars in millions, except per share amounts) 2022 2023 Net income available to common stockholders $ 249 $ 231 Share data (in thousands): Basic average common shares outstanding 479,079 479,353 Dilutive effect of stock-based awards 1,365 1,030 Diluted average common shares outstanding 480,444 480,383 Basic earnings per share $ 0.52 $ 0.48 Diluted earnings per share $ 0.52 $ 0.48 We excluded common stock-based awards for approximately 913,000 shares and 1,285,000 shares from the calculation of diluted earnings per share for the three months ended July 31, 2022 and 2023, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method. |
Inventories
Inventories | 3 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | InventoriesWe value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. If the LIFO method had not been used, inventories at current cost would have been $429 million higher than reported as of April 30, 2023, and $442 million higher than reported as of July 31, 2023. Changes in the LIFO valuation reserve for interim periods are based on an allocation of the projected change for the entire fiscal year, recognized proportionately over the remainder of the fiscal year. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Jul. 31, 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 includes no accumulated impairment losses) and other intangible assets during the three months ended July 31, 2023: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2023 $ 1,457 $ 1,164 Purchase accounting adjustment (Note 14) 40 (53) Reclassification to assets held for sale (Note 15) (10) (93) Foreign currency translation adjustment 7 (4) Balance at July 31, 2023 $ 1,494 $ 1,014 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. |
Contingencies
Contingencies | 3 Months Ended |
Jul. 31, 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 were recorded as of July 31, 2023. |
Debt
Debt | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our long-term debt (net of unamortized discount and issuance costs) consisted of: (Principal and carrying amounts in millions) April 30, 2023 July 31, 3.50% senior notes, $300 principal amount, due April 15, 2025 $ 299 $ 299 1.20% senior notes, €300 principal amount, due July 7, 2026 330 330 2.60% senior notes, £300 principal amount, due July 7, 2028 375 383 4.75% senior notes, $650 principal amount, due April 15, 2033 642 643 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 $ 2,678 $ 2,687 Our short-term borrowings consisted of borrowings under our commercial paper program, as follows: (Dollars in millions) April 30, 2023 July 31, Commercial paper (par amount) $235 $390 Average interest rate 5.17% 5.29% Average remaining days to maturity 21 14 |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Jul. 31, 2023 | |
Equity, Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table shows the changes in stockholders’ equity during the three months ended July 31, 2022: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2022 $ 25 $ 47 $ — $ 3,242 $ (352) $ (225) $ 2,737 Net income 249 249 Net other comprehensive income (loss) 1 1 Declaration of cash dividends (180) (180) Stock-based compensation expense 4 4 Stock issued under compensation plans 4 4 Loss on issuance of treasury stock issued under compensation plans (4) (4) (8) Balance at July 31, 2022 $ 25 $ 47 $ — $ 3,307 $ (351) $ (221) $ 2,807 The following table shows the changes in stockholders’ equity during the three months ended July 31, 2023: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2023 $ 25 $ 47 $ 1 $ 3,643 $ (235) $ (213) $ 3,268 Net income 231 231 Net other comprehensive income (loss) 36 36 Declaration of cash dividends (197) (197) Stock-based compensation expense 4 4 Stock issued under compensation plans 3 3 Loss on issuance of treasury stock issued under compensation plans (4) (3) (7) Balance at July 31, 2023 $ 25 $ 47 $ 1 $ 3,674 $ (199) $ (210) $ 3,338 The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended July 31, 2023: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2023 $ (104) $ 10 $ (141) $ (235) Net other comprehensive income (loss) 39 (5) 2 36 Balance at July 31, 2023 $ (65) $ 5 $ (139) $ (199) The following table shows the cash dividends declared per share on our Class A and Class B common stock during the three months ended July 31, 2023: Declaration Date Record Date Payable Date Amount per Share May 25, 2023 June 8, 2023 July 3, 2023 $0.2055 July 27, 2023 September 5, 2023 October 2, 2023 $0.2055 |
Net Sales
Net Sales | 3 Months Ended |
Jul. 31, 2023 | |
Net Sales [Abstract] | |
Net Sales | Net Sales The following table shows our net sales by geography: Three Months Ended July 31, (Dollars in millions) 2022 2023 United States $ 482 $ 442 Developed International 1 294 310 Emerging 2 176 223 Travel Retail 3 38 43 Non-branded and bulk 4 17 20 Total $ 1,007 $ 1,038 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 non-branded bulk whiskey and wine, regardless of customer location. The following table shows our net sales by product category: Three Months Ended July 31, (Dollars in millions) 2022 2023 Whiskey 1 $ 707 $ 697 Ready-to-Drink 2 126 138 Tequila 3 70 81 Wine 4 46 41 Vodka 5 23 26 Non-branded and bulk 6 17 20 Rest of portfolio 7 18 35 Total $ 1,007 $ 1,038 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, 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 non-branded bulk whiskey and wine. 7 Includes Chambord, Gin Mare, Korbel Brandy, Diplomático, and Fords Gin. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 3 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension Costs The following table shows the components of the net cost recognized for our U.S. pension plans. Similar information for other defined benefit plans is not presented due to immateriality. Three Months Ended July 31, (Dollars in millions) 2022 2023 Service cost $ 5 $ 5 Interest cost 8 8 Expected return on plan assets (11) (10) Amortization of net actuarial loss 3 2 Net cost $ 5 $ 5 |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our consolidated interim effective tax rate is based on our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions where we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the fiscal quarter in which the related event or a change in judgment occurs. The expected effective tax rate on ordinary income for the fiscal year is 21.5%, which is greater than the U.S. federal statutory rate of 21.0%, due to the effects of foreign operations and state taxes, partially offset by the impact of the foreign-derived intangible income deduction. The effective tax rate of 22.9% for the three months ended July 31, 2023, is higher than the expected tax rate of 21.5% on ordinary income for the full fiscal year, primarily due to the impact of tax rate changes, which is partially offset by increased contingent tax liabilities and the reversal of a valuation allowance in the current period. The effective tax rate of 22.9% for the three months ended July 31, 2023, was lower than the effective tax rate of 23.6% for the same period last year, primarily due to decreased impact of state taxes, less benefit for the reversal of valuation allowances in the current period, and the beneficial impact of the foreign-derived intangible income deduction, which was partially offset by the impact of tax rate changes. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Jul. 31, 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 rate 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 two years). We record all changes in the fair value of cash flow hedges in AOCI until the underlying hedged transaction occurs, at which time we reclassify that amount to 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 $747 million at April 30, 2023, and $692 million at July 31, 2023. The maximum term of outstanding derivative contracts was 24 months at both April 30, 2023 and July 31, 2023. We also use foreign currency-denominated debt instruments to help manage our foreign currency exchange rate 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 instruments designated as net investment hedges was $495 million at April 30, 2023, and $503 million at July 31, 2023. At inception, we expect each financial instrument designated as a hedge to be highly effective in offsetting the financial exposure it is designed to mitigate. We also assess their effectiveness continually. If determined to be no longer highly effective, we discontinue designating and accounting for the instrument 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. 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: Three Months Ended July 31, (Dollars in millions) Classification 2022 2023 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 14 $ (4) Net gain (loss) reclassified from AOCI into earnings Sales 8 3 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ 5 $ (2) Net gain (loss) recognized in earnings Other income (expense), net 1 7 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ 20 $ (8) Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 1,288 $ 1,326 Other income (expense), net 6 7 We expect to reclassify $2 million of deferred net gains on cash flow hedges recorded in AOCI as of July 31, 2023 to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur. The following table presents the fair values of our derivative instruments: April 30, 2023 July 31, 2023 (Dollars in millions) Classification Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Designated as cash flow hedges: Currency derivatives Other current assets $ 20 $ (11) $ 15 $ (11) Currency derivatives Other assets 5 (1) 2 (1) Currency derivatives Accrued expenses — (1) 2 (2) Currency derivatives Other liabilities — (1) — (1) Not designated as hedges: Currency derivatives Other current assets 3 — 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 investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that we monitor regularly, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments. 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 our derivatives with creditworthiness requirements that were in a net liability position was $1 million at April 30, 2023, and $1 million at July 31, 2023. 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: (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2023 Derivative assets $ 28 $ (12) $ 16 $ (1) $ 15 Derivative liabilities (14) 12 (2) 1 (1) July 31, 2023 Derivative assets 22 (14) 8 — 8 Derivative liabilities (15) 14 (1) — (1) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2023, or July 31, 2023. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Jul. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: April 30, 2023 July 31, 2023 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets Cash and cash equivalents $ 374 $ 374 $ 426 $ 426 Currency derivatives, net 16 16 8 8 Liabilities Currency derivatives, net 2 2 1 1 Short-term borrowings 235 235 389 389 Long-term debt 2,678 2,556 2,687 2,507 Contingent consideration (Note 14) 63 63 55 55 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 determine the fair value of our contingent consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, discount rates, and volatility rates. Changes in any of these Level 3 inputs could result in material changes to the fair value of the contingent consideration and could materially impact the amount of noncash expense (or income) recorded each reporting period. The following table shows the changes in our contingent consideration liability during the three months ended July 31, 2023: (Dollars in millions) Balance at April 30, 2023 $ 63 Purchase accounting adjustment (Note 14) (1) Change in fair value 1 (7) Balance at July 31, 2023 $ 55 1 Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations. See Note 14 for additional information about the contingent consideration liability. We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements. |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Jul. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following table shows the components of net other comprehensive income (loss): Three Months Ended Three Months Ended July 31, 2022 July 31, 2023 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ (1) $ (4) $ (5) $ 37 $ 2 $ 39 Reclassification to earnings — — — — — — Other comprehensive income (loss), net (1) (4) (5) 37 2 39 Cash flow hedge adjustments: Net gain (loss) on hedging instruments 14 (4) 10 (4) 1 (3) Reclassification to earnings 1 (8) 2 (6) (3) 1 (2) Other comprehensive income (loss), net 6 (2) 4 (7) 2 (5) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — — — — Reclassification to earnings 2 3 (1) 2 2 — 2 Other comprehensive income (loss), net 3 (1) 2 2 — 2 Total other comprehensive income (loss), net $ 8 $ (7) $ 1 $ 32 $ 4 $ 36 1 Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations. 2 Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations. |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | Acquisitions During the first quarter of fiscal 2024, we updated the preliminary purchase price allocations for our Gin Mare and Diplomático acquisitions, both of which we acquired during the third quarter of 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 $523 million, which consisted of $468 million in cash paid at the acquisition date plus contingent consideration of $55 million. The purchase price for the Gin Mare acquisition decreased by $1 million as a result of certain fair value adjustments to the contingent consideration made during the first quarter of fiscal 2024, which were primarily a result of changes in the discount rates used to calculate the fair value as of the acquisition date. We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: (Dollars in millions) Prior Allocation 1 Adjustments Updated Allocation Trademarks and brand names (indefinite-lived) $ 307 $ (24) $ 283 Goodwill 289 17 306 Total assets 596 (7) 589 Deferred tax liabilities 72 (6) 66 Net assets acquired $ 524 $ (1) $ 523 1 As reported in Note 12 to our consolidated financial statements in our 2023 Form 10-K. The adjustments to the Gin Mare purchase price allocation reflect revised valuations for the trademarks and brand names, which were driven by an increase in the discount rates used to calculate fair values as of the acquisition date, partially offset by higher projections of future cash flows. The contingent consideration of $55 million reflects the estimated fair value, at the acquisition date, of contingent future cash payments of up to €90 million 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 million (approximately $89 million 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 $723 million (net of a post-closing working capital adjustment of $4 million). We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: (Dollars in millions) Prior Allocation 1 Adjustments Updated Allocation Accounts receivable $ 11 $ — $ 11 Inventories 36 (2) 34 Other current assets 25 — 25 Property, plant, and equipment 38 — 38 Trademarks and brand names (indefinite-lived) 312 (29) 283 Goodwill 363 23 386 Other assets 2 — 2 Total assets 787 (8) 779 Accounts payable and accrued expenses 13 1 14 Deferred tax liabilities 45 (5) 40 Other liabilities 2 — 2 Total liabilities 60 (4) 56 Net assets acquired $ 727 $ (4) $ 723 1 As reported in Note 12 to our consolidated financial statements in our 2023 Form 10-K. The adjustments made to the Diplomático purchase price allocation reflect revised valuations for the trademarks and brand names, which were driven by an increase in the discount rates used to calculate fair values as of the acquisition date, partially offset by higher projections of future cash flows. The adjustments also reflect certain other immaterial net working capital adjustments. 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 further 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 $306 million to be deductible for tax purposes. For the Diplomático acquisition, we expect $108 million of the preliminary goodwill of $386 million to be deductible for tax purposes. |
Assets Held for Sale
Assets Held for Sale | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale During the quarter ended July 31, 2023, we reached an agreement to sell our Finlandia vodka business to Coca-Cola HBC AG (“CCH”) for $220 million in cash, subject to adjustments related to inventory and other working capital items. The net carrying amount of the related business assets and liabilities as of July 31, 2023, was $122 million and consisted of the following: (Dollars in millions) July 31, Accounts receivable $ 1 Inventories 28 Other current assets 1 Trademarks and brand names 93 Goodwill 10 Deferred tax assets 2 Total assets held for sale 135 Accounts payable and accrued expenses 12 Accrued income taxes 1 Total liabilities held for sale 13 Net assets held for sale $ 122 The total carrying amounts of the assets and liabilities held for sale are presented as separate line items in the condensed consolidated balance sheet as of July 31, 2023. The carrying amounts of inventory and other working capital items included in the amounts presented as held for sale are subject to change until the closing date of the sale to CCH, which is expected to occur by December 31, 2023. |
Inventories (Policies)
Inventories (Policies) | 3 Months Ended |
Jul. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy [Policy Text Block] | We value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Policies) | 3 Months Ended |
Jul. 31, 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 sheet |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Jul. 31, 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: Three Months Ended July 31, (Dollars in millions, except per share amounts) 2022 2023 Net income available to common stockholders $ 249 $ 231 Share data (in thousands): Basic average common shares outstanding 479,079 479,353 Dilutive effect of stock-based awards 1,365 1,030 Diluted average common shares outstanding 480,444 480,383 Basic earnings per share $ 0.52 $ 0.48 Diluted earnings per share $ 0.52 $ 0.48 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Jul. 31, 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 includes no accumulated impairment losses) and other intangible assets during the three months ended July 31, 2023: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2023 $ 1,457 $ 1,164 Purchase accounting adjustment (Note 14) 40 (53) Reclassification to assets held for sale (Note 15) (10) (93) Foreign currency translation adjustment 7 (4) Balance at July 31, 2023 $ 1,494 $ 1,014 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Our long-term debt (net of unamortized discount and issuance costs) consisted of: (Principal and carrying amounts in millions) April 30, 2023 July 31, 3.50% senior notes, $300 principal amount, due April 15, 2025 $ 299 $ 299 1.20% senior notes, €300 principal amount, due July 7, 2026 330 330 2.60% senior notes, £300 principal amount, due July 7, 2028 375 383 4.75% senior notes, $650 principal amount, due April 15, 2033 642 643 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 $ 2,678 $ 2,687 |
Schedule of Short-term Debt [Table Text Block] | Our short-term borrowings consisted of borrowings under our commercial paper program, as follows: (Dollars in millions) April 30, 2023 July 31, Commercial paper (par amount) $235 $390 Average interest rate 5.17% 5.29% Average remaining days to maturity 21 14 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Equity, Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | The following table shows the changes in stockholders’ equity during the three months ended July 31, 2022: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2022 $ 25 $ 47 $ — $ 3,242 $ (352) $ (225) $ 2,737 Net income 249 249 Net other comprehensive income (loss) 1 1 Declaration of cash dividends (180) (180) Stock-based compensation expense 4 4 Stock issued under compensation plans 4 4 Loss on issuance of treasury stock issued under compensation plans (4) (4) (8) Balance at July 31, 2022 $ 25 $ 47 $ — $ 3,307 $ (351) $ (221) $ 2,807 The following table shows the changes in stockholders’ equity during the three months ended July 31, 2023: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2023 $ 25 $ 47 $ 1 $ 3,643 $ (235) $ (213) $ 3,268 Net income 231 231 Net other comprehensive income (loss) 36 36 Declaration of cash dividends (197) (197) Stock-based compensation expense 4 4 Stock issued under compensation plans 3 3 Loss on issuance of treasury stock issued under compensation plans (4) (3) (7) Balance at July 31, 2023 $ 25 $ 47 $ 1 $ 3,674 $ (199) $ (210) $ 3,338 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended July 31, 2023: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2023 $ (104) $ 10 $ (141) $ (235) Net other comprehensive income (loss) 39 (5) 2 36 Balance at July 31, 2023 $ (65) $ 5 $ (139) $ (199) |
Dividends Declared [Table Text Block] | The following table shows the cash dividends declared per share on our Class A and Class B common stock during the three months ended July 31, 2023: Declaration Date Record Date Payable Date Amount per Share May 25, 2023 June 8, 2023 July 3, 2023 $0.2055 July 27, 2023 September 5, 2023 October 2, 2023 $0.2055 |
Net Sales (Tables)
Net Sales (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Net Sales [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table shows our net sales by geography: Three Months Ended July 31, (Dollars in millions) 2022 2023 United States $ 482 $ 442 Developed International 1 294 310 Emerging 2 176 223 Travel Retail 3 38 43 Non-branded and bulk 4 17 20 Total $ 1,007 $ 1,038 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 non-branded bulk whiskey and wine, regardless of customer location. The following table shows our net sales by product category: Three Months Ended July 31, (Dollars in millions) 2022 2023 Whiskey 1 $ 707 $ 697 Ready-to-Drink 2 126 138 Tequila 3 70 81 Wine 4 46 41 Vodka 5 23 26 Non-branded and bulk 6 17 20 Rest of portfolio 7 18 35 Total $ 1,007 $ 1,038 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, 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 non-branded 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) | 3 Months Ended |
Jul. 31, 2023 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table shows the components of the net cost recognized for our U.S. pension plans. Similar information for other defined benefit plans is not presented due to immateriality. Three Months Ended July 31, (Dollars in millions) 2022 2023 Service cost $ 5 $ 5 Interest cost 8 8 Expected return on plan assets (11) (10) Amortization of net actuarial loss 3 2 Net cost $ 5 $ 5 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | 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: Three Months Ended July 31, (Dollars in millions) Classification 2022 2023 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 14 $ (4) Net gain (loss) reclassified from AOCI into earnings Sales 8 3 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ 5 $ (2) Net gain (loss) recognized in earnings Other income (expense), net 1 7 Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ 20 $ (8) Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 1,288 $ 1,326 Other income (expense), net 6 7 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the fair values of our derivative instruments: April 30, 2023 July 31, 2023 (Dollars in millions) Classification Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Designated as cash flow hedges: Currency derivatives Other current assets $ 20 $ (11) $ 15 $ (11) Currency derivatives Other assets 5 (1) 2 (1) Currency derivatives Accrued expenses — (1) 2 (2) Currency derivatives Other liabilities — (1) — (1) Not designated as hedges: Currency derivatives Other current assets 3 — 3 — |
Offsetting Derivative Assets and Liabilities [Table Text Block] | The following table summarizes the gross and net amounts of our derivative contracts: (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2023 Derivative assets $ 28 $ (12) $ 16 $ (1) $ 15 Derivative liabilities (14) 12 (2) 1 (1) July 31, 2023 Derivative assets 22 (14) 8 — 8 Derivative liabilities (15) 14 (1) — (1) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 31, 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: April 30, 2023 July 31, 2023 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets Cash and cash equivalents $ 374 $ 374 $ 426 $ 426 Currency derivatives, net 16 16 8 8 Liabilities Currency derivatives, net 2 2 1 1 Short-term borrowings 235 235 389 389 Long-term debt 2,678 2,556 2,687 2,507 Contingent consideration (Note 14) 63 63 55 55 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The following table shows the changes in our contingent consideration liability during the three months ended July 31, 2023: (Dollars in millions) Balance at April 30, 2023 $ 63 Purchase accounting adjustment (Note 14) (1) Change in fair value 1 (7) Balance at July 31, 2023 $ 55 1 Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations. |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | The following table shows the components of net other comprehensive income (loss): Three Months Ended Three Months Ended July 31, 2022 July 31, 2023 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ (1) $ (4) $ (5) $ 37 $ 2 $ 39 Reclassification to earnings — — — — — — Other comprehensive income (loss), net (1) (4) (5) 37 2 39 Cash flow hedge adjustments: Net gain (loss) on hedging instruments 14 (4) 10 (4) 1 (3) Reclassification to earnings 1 (8) 2 (6) (3) 1 (2) Other comprehensive income (loss), net 6 (2) 4 (7) 2 (5) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — — — — Reclassification to earnings 2 3 (1) 2 2 — 2 Other comprehensive income (loss), net 3 (1) 2 2 — 2 Total other comprehensive income (loss), net $ 8 $ (7) $ 1 $ 32 $ 4 $ 36 1 Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations. 2 Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Gin Mare | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: (Dollars in millions) Prior Allocation 1 Adjustments Updated Allocation Trademarks and brand names (indefinite-lived) $ 307 $ (24) $ 283 Goodwill 289 17 306 Total assets 596 (7) 589 Deferred tax liabilities 72 (6) 66 Net assets acquired $ 524 $ (1) $ 523 1 As reported in Note 12 to our consolidated financial statements in our 2023 Form 10-K. |
Diplomatico | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | We have preliminarily allocated the purchase price based on management’s estimates and independent valuations as follows: (Dollars in millions) Prior Allocation 1 Adjustments Updated Allocation Accounts receivable $ 11 $ — $ 11 Inventories 36 (2) 34 Other current assets 25 — 25 Property, plant, and equipment 38 — 38 Trademarks and brand names (indefinite-lived) 312 (29) 283 Goodwill 363 23 386 Other assets 2 — 2 Total assets 787 (8) 779 Accounts payable and accrued expenses 13 1 14 Deferred tax liabilities 45 (5) 40 Other liabilities 2 — 2 Total liabilities 60 (4) 56 Net assets acquired $ 727 $ (4) $ 723 1 As reported in Note 12 to our consolidated financial statements in our 2023 Form 10-K. |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 3 Months Ended |
Jul. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale [Table Text Block] | The net carrying amount of the related business assets and liabilities as of July 31, 2023, was $122 million and consisted of the following: (Dollars in millions) July 31, Accounts receivable $ 1 Inventories 28 Other current assets 1 Trademarks and brand names 93 Goodwill 10 Deferred tax assets 2 Total assets held for sale 135 Accounts payable and accrued expenses 12 Accrued income taxes 1 Total liabilities held for sale 13 Net assets held for sale $ 122 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Earnings Per Share [Abstract] | ||
Net income available to common stockholders, basic | $ 231 | $ 249 |
Net income available to common stockholders, diluted | $ 231 | $ 249 |
Share data (in thousands): | ||
Basic average common shares outstanding | 479,353 | 479,079 |
Dilutive effect of stock-based awards | 1,030 | 1,365 |
Diluted average common shares outstanding | 480,383 | 480,444 |
Basic earnings per share (dollars per share) | $ 0.48 | $ 0.52 |
Diluted earnings per share (dollars per share) | $ 0.48 | $ 0.52 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Earnings Per Share (Textual) [Abstract] | ||
Common stock-based awards excluded from the calculation of diluted earnings per share | 1,285 | 913 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Inventories (Textual) [Abstract] | ||
Excess of current costs over stated LIFO value | $ 442 | $ 429 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) $ in Millions | 3 Months Ended |
Jul. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at April 30, 2023 | $ 1,457 |
Purchase accounting adjustment (Note 14) | 40 |
Reclassification to assets held for sale (Note 15) | (10) |
Foreign currency translation adjustment | 7 |
Balance at July 31, 2023 | 1,494 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance at April 30, 2023 | 1,164 |
Purchase accounting adjustment (Note 14) | (53) |
Reclassification to assets held for sale (Note 15) | (93) |
Foreign currency translation adjustment | (4) |
Balance at July 31, 2023 | $ 1,014 |
Debt (Details)
Debt (Details) € in Millions, £ in Millions, $ in Millions | 3 Months Ended | |||||
Jul. 31, 2023 USD ($) | Jul. 31, 2023 EUR (€) | Jul. 31, 2023 GBP (£) | Apr. 30, 2023 USD ($) | Apr. 30, 2023 EUR (€) | Apr. 30, 2023 GBP (£) | |
Debt Instrument [Line Items] | ||||||
Long-term debt, including current portion | $ 2,687 | $ 2,678 | ||||
Long-term debt | 2,687 | 2,678 | ||||
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 | |||||
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 | $ 299 | ||||
1.20% notes, due July 7, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | € | € 300 | € 300 | ||||
Debt Instrument, Maturity Date | 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 | $ 330 | ||||
2.60% notes, due July 7, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | £ | £ 300 | £ 300 | ||||
Debt Instrument, Maturity Date | 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 | $ 383 | $ 375 | ||||
4.75% senior notes, due April 15, 2033 {Member} | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 650 | $ 650 | ||||
Debt Instrument, Maturity Date | Apr. 15, 2033 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% | 4.75% |
Long-term debt, including current portion | $ 643 | $ 642 | ||||
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 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4% | 4% | 4% | 4% | 4% | 4% |
Long-term debt, including current portion | $ 295 | $ 295 | ||||
3.75% notes, due January 15, 2043 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | ||||
Debt Instrument, Maturity Date | Jan. 15, 2043 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% |
Long-term debt, including current portion | $ 248 | $ 248 | ||||
4.50% notes, due July 15, 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 500 | $ 500 | ||||
Debt Instrument, Maturity Date | 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 Short-term Borrowings (Det
Debt Short-term Borrowings (Details) - Commercial Paper - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Short-Term Debt [Line Items] | ||
Commercial paper (par amount) | $ 390 | $ 235 |
Average interest rate | 5.29% | 5.17% |
Average remaining days to maturity | 14 days | 21 days |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Beginning balance | $ 3,268 | $ 2,737 |
Net income | 231 | 249 |
Net other comprehensive income (loss) | 36 | 1 |
Declaration of cash dividends | (197) | (180) |
Stock-based compensation expense | 4 | 4 |
Stock issued under compensation plans | 3 | 4 |
Loss on issuance of treasury stock issued under compensation plans | (7) | (8) |
Ending balance | 3,338 | 2,807 |
Additional Paid-in Capital [Member] | ||
Beginning balance | 1 | 0 |
Stock-based compensation expense | 4 | 4 |
Loss on issuance of treasury stock issued under compensation plans | (4) | (4) |
Ending balance | 1 | 0 |
Retained Earnings [Member] | ||
Beginning balance | 3,643 | 3,242 |
Net income | 231 | 249 |
Declaration of cash dividends | (197) | (180) |
Loss on issuance of treasury stock issued under compensation plans | (3) | (4) |
Ending balance | 3,674 | 3,307 |
AOCI Attributable to Parent [Member] | ||
Beginning balance | (235) | (352) |
Net other comprehensive income (loss) | 36 | 1 |
Ending balance | (199) | (351) |
Treasury Stock, Common [Member] | ||
Beginning balance | (213) | (225) |
Stock issued under compensation plans | 3 | 4 |
Ending balance | (210) | (221) |
Common stock, Class A, voting [Member] | Common Stock [Member] | ||
Beginning balance | 25 | 25 |
Ending balance | 25 | 25 |
Common stock, Class B, nonvoting [Member] | Common Stock [Member] | ||
Beginning balance | 47 | 47 |
Ending balance | $ 47 | $ 47 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | $ (235) | |
Net other comprehensive income (loss) | 36 | $ 1 |
Ending balance | (199) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (104) | |
Net other comprehensive income (loss) | 39 | (5) |
Ending balance | (65) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | 10 | |
Net other comprehensive income (loss) | (5) | 4 |
Ending balance | 5 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Beginning balance | (141) | |
Net other comprehensive income (loss) | 2 | 2 |
Ending balance | (139) | |
AOCI Attributable to Parent [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net other comprehensive income (loss) | $ 36 | $ 1 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) | 3 Months Ended |
Jul. 31, 2023 $ / shares | |
July 2023 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | May 25, 2023 |
Dividends Payable, Date of Record | Jun. 08, 2023 |
Dividends Payable, Date to be Paid | Jul. 03, 2023 |
Common Stock, Dividends, Per Share, Declared | $ 0.2055 |
October 2023 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | Jul. 27, 2023 |
Dividends Payable, Date of Record | Sep. 05, 2023 |
Dividends Payable, Date to be Paid | Oct. 02, 2023 |
Common Stock, Dividends, Per Share, Declared | $ 0.2055 |
Net Sales by Geography (Details
Net Sales by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,038 | $ 1,007 | |
United States [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | 442 | 482 | |
Developed International [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 310 | 294 |
Emerging [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 223 | 176 |
Travel Retail [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [3] | 43 | 38 |
Non-branded and bulk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [4] | $ 20 | $ 17 |
[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 non-branded bulk whiskey and wine, regardless of customer location. |
Net Sales by Product Category (
Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | ||
Disaggregation of Revenue [Line Items] | |||
Net sales | $ 1,038 | $ 1,007 | |
Whiskey [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [1] | 697 | 707 |
Ready-to-Drink | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [2] | 138 | 126 |
Tequila [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [3] | 81 | 70 |
Wine [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [4] | 41 | 46 |
Vodka [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [5] | 26 | 23 |
Non-branded and bulk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [6] | 20 | 17 |
Rest of portfolio [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Net sales | [7] | $ 35 | $ 18 |
[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, 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 non-branded 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 (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Defined Benefit Plan, Sponsor Location [Extensible List] | ||
Service cost | $ 5 | $ 5 |
Interest cost | 8 | 8 |
Expected return on plan assets | (10) | (11) |
Amortization of net actuarial loss (gain) | 2 | 3 |
Net cost | $ 5 | $ 5 |
Income Taxes (Details)
Income Taxes (Details) | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Expected Tax Rate on Ordinary Income | 21.50% | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | |
Effective Income Tax Rate Reconciliation, Percent | 22.90% | 23.60% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 | Jul. 31, 2022 | |
Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract] | ||
Sales | $ 1,326 | $ 1,288 |
Other income (expense), net | 7 | 6 |
Foreign Currency Denominated Debt [Member] | ||
Foreign currency-denominated debt designated as net investment hedge: [Abstract] | ||
Net gain (loss) recognized in AOCI | (8) | 20 |
Currency derivatives [Member] | ||
Currency derivatives designated as cash flow hedges: [Abstract] | ||
Net gain (loss) recognized in AOCI | (4) | 14 |
Currency derivatives [Member] | Sales [Member] | ||
Currency derivatives designated as cash flow hedges: [Abstract] | ||
Net gain (loss) reclassified from AOCI into earnings | 3 | 8 |
Currency derivatives not designated as hedging instruments: [Abstract] | ||
Net gain (loss) recognized in earnings | (2) | 5 |
Currency derivatives [Member] | Other Income [Member] | ||
Currency derivatives not designated as hedging instruments: [Abstract] | ||
Net gain (loss) recognized in earnings | $ 7 | $ 1 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Details 1) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | $ 22 | $ 28 |
Derivative Liability, Fair Value, Gross Liability | 15 | 14 |
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 | 15 | 20 |
Derivative Liability, Fair Value, Gross Liability | (11) | (11) |
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 | 2 | 5 |
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 | 2 | 0 |
Derivative Liability, Fair Value, Gross Liability | (2) | (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 | 0 |
Derivative Liability, Fair Value, Gross Liability | (1) | (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 | 3 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2023 | Apr. 30, 2023 | |
Derivative Financial Instruments (Textual) [Abstract] | ||
Maximum term of outstanding derivative contracts | 24 months | 24 months |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 2 | |
Derivative, Net Liability Position, Aggregate Fair Value | 1 | $ 1 |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Debt Instrument, Face Amount | 503 | 495 |
Foreign Exchange Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Notional Amount | $ 692 | $ 747 |
Offsetting Derivative Assets an
Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 22 | $ 28 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (14) | (12) |
Net Amount of Derivative Assets Presented in Balance Sheet | 8 | 16 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | 0 | (1) |
Net Amount of Derivative Assets | 8 | 15 |
Gross Amount of Derivative Liabilities | (15) | (14) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 14 | 12 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | 1 | 2 |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 0 | 1 |
Net Amount of Derivative Liabilities | $ 1 | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 | Jul. 31, 2022 |
Assets: | |||
Cash and cash equivalents | $ 426 | $ 374 | $ 899 |
Cash and cash equivalents, Fair Value | 426 | 374 | |
Liabilities: | |||
Short-term borrowings, Carrying Amount | 389 | 235 | |
Short-term borrowings, Fair Value | 389 | 235 | |
Long-term debt, Carrying Amount | 2,687 | 2,678 | |
Contingent consideration, Carrying Amount | 55 | 63 | |
Fair Value, Inputs, Level 2 [Member] | |||
Assets: | |||
Currency derivatives, net, Fair Value | 8 | 16 | |
Liabilities: | |||
Currency derivatives, net, Fair Value | 1 | 2 | |
Long-term debt, Fair Value | 2,507 | 2,556 | |
Fair Value, Inputs, Level 3 [Member] | |||
Liabilities: | |||
Contingent consideration, Fair Value | 55 | 63 | |
Foreign Exchange Contract [Member] | |||
Assets: | |||
Currency derivatives, net, Carrying Amount | 8 | 16 | |
Liabilities: | |||
Currency derivatives, net, Carrying Amount | $ 1 | $ 2 |
Rollforward of Contingent Consi
Rollforward of Contingent Consideration (Details) $ in Millions | 3 Months Ended | |
Jul. 31, 2023 USD ($) | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | ||
Balance at April 30, 2023 | $ 63 | |
Purchase accounting adjustment (Note 14) | (1) | |
Change in fair value | (7) | [1] |
Balance at July 31, 2023 | $ 55 | |
[1]Classified as “other expense (income), net” in the accompanying condensed consolidated statement of operations. |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2023 | Jul. 31, 2022 | ||
Before Tax: | |||
Net other comprehensive income (loss) | $ 32 | $ 8 | |
Tax Effect: | |||
Net other comprehensive income (loss) | 4 | (7) | |
Net of Tax: | |||
Net other comprehensive income (loss) | 36 | 1 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Before Tax: | |||
Net gain (loss) | 37 | (1) | |
Reclassification to earnings | 0 | 0 | |
Net other comprehensive income (loss) | 37 | (1) | |
Tax Effect: | |||
Net gain (loss) | 2 | (4) | |
Reclassification to earnings | 0 | 0 | |
Net other comprehensive income (loss) | 2 | (4) | |
Net of Tax: | |||
Net gain (loss) | 39 | (5) | |
Reclassification to earnings | 0 | 0 | |
Net other comprehensive income (loss) | 39 | (5) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Before Tax: | |||
Net gain (loss) | (4) | 14 | |
Reclassification to earnings | [1] | (3) | (8) |
Net other comprehensive income (loss) | (7) | 6 | |
Tax Effect: | |||
Net gain (loss) | 1 | (4) | |
Reclassification to earnings | [1] | 1 | 2 |
Net other comprehensive income (loss) | 2 | (2) | |
Net of Tax: | |||
Net gain (loss) | (3) | 10 | |
Reclassification to earnings | [1] | (2) | (6) |
Net other comprehensive income (loss) | (5) | 4 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Before Tax: | |||
Net gain (loss) | 0 | 0 | |
Reclassification to earnings | [2] | 2 | 3 |
Net other comprehensive income (loss) | 2 | 3 | |
Tax Effect: | |||
Net gain (loss) | 0 | 0 | |
Reclassification to earnings | [2] | 0 | (1) |
Net other comprehensive income (loss) | 0 | (1) | |
Net of Tax: | |||
Net gain (loss) | 0 | 0 | |
Reclassification to earnings | [2] | 2 | 2 |
Net other comprehensive income (loss) | $ 2 | $ 2 | |
[1]Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations.[2]Pre-tax amount for each period is classified as non-operating postretirement expense in the accompanying condensed consolidated statements of operations. |
Acquisitions (Details)
Acquisitions (Details) € in Millions | Jan. 05, 2023 USD ($) | Nov. 03, 2022 USD ($) | Jul. 31, 2023 USD ($) | Apr. 30, 2023 USD ($) | Nov. 03, 2022 EUR (€) | |
Business Acquisition [Line Items] | ||||||
Business Combination, Contingent Consideration, Liability | $ 55,000,000 | $ 63,000,000 | ||||
Goodwill | $ 1,494,000,000 | $ 1,457,000,000 | ||||
Gin Mare | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | 100% | ||||
Business Combination, Consideration Transferred | $ 523,000,000 | |||||
Payments to Acquire Businesses, Gross | 468,000,000 | |||||
Business Combination, Contingent Consideration, Liability | 55,000,000 | |||||
Trademarks and brand names (indefinite-lived) | 283,000,000 | |||||
Goodwill | 306,000,000 | |||||
Total assets | 589,000,000 | |||||
Deferred tax liabilities | 66,000,000 | |||||
Net assets acquired | 523,000,000 | |||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | 89,000,000 | € 90 | ||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 0 | |||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Consideration Transferred | 1,000,000 | |||||
Gin Mare | Prior Allocation | ||||||
Business Acquisition [Line Items] | ||||||
Trademarks and brand names (indefinite-lived) | [1] | 307,000,000 | ||||
Goodwill | [1] | 289,000,000 | ||||
Total assets | [1] | 596,000,000 | ||||
Deferred tax liabilities | [1] | 72,000,000 | ||||
Net assets acquired | [1] | 524,000,000 | ||||
Gin Mare | Adjustments | ||||||
Business Acquisition [Line Items] | ||||||
Trademarks and brand names (indefinite-lived) | (24,000,000) | |||||
Goodwill | 17,000,000 | |||||
Total assets | (7,000,000) | |||||
Deferred tax liabilities | (6,000,000) | |||||
Net assets acquired | $ (1,000,000) | |||||
Diplomatico | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |||||
Payments to Acquire Businesses, Gross | $ 723,000,000 | |||||
Accounts receivable | 11,000,000 | |||||
Inventories | 34,000,000 | |||||
Other current assets | 25,000,000 | |||||
Property, plant, and equipment | 38,000,000 | |||||
Trademarks and brand names (indefinite-lived) | 283,000,000 | |||||
Goodwill | 386,000,000 | |||||
Other assets | 2,000,000 | |||||
Total assets | 779,000,000 | |||||
Accounts payable and accrued expenses | 14,000,000 | |||||
Deferred tax liabilities | 40,000,000 | |||||
Other liabilities | 2,000,000 | |||||
Total liabilities | 56,000,000 | |||||
Net assets acquired | 723,000,000 | |||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 108,000,000 | |||||
Diplomatico | Prior Allocation | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | [1] | 11,000,000 | ||||
Inventories | [1] | 36,000,000 | ||||
Other current assets | [1] | 25,000,000 | ||||
Property, plant, and equipment | [1] | 38,000,000 | ||||
Trademarks and brand names (indefinite-lived) | [1] | 312,000,000 | ||||
Goodwill | [1] | 363,000,000 | ||||
Other assets | [1] | 2,000,000 | ||||
Total assets | [1] | 787,000,000 | ||||
Accounts payable and accrued expenses | [1] | 13,000,000 | ||||
Deferred tax liabilities | [1] | 45,000,000 | ||||
Other liabilities | [1] | 2,000,000 | ||||
Total liabilities | [1] | 60,000,000 | ||||
Net assets acquired | [1] | 727,000,000 | ||||
Diplomatico | Adjustments | ||||||
Business Acquisition [Line Items] | ||||||
Accounts receivable | 0 | |||||
Inventories | (2,000,000) | |||||
Other current assets | 0 | |||||
Property, plant, and equipment | 0 | |||||
Trademarks and brand names (indefinite-lived) | (29,000,000) | |||||
Goodwill | 23,000,000 | |||||
Other assets | 0 | |||||
Total assets | (8,000,000) | |||||
Accounts payable and accrued expenses | 1,000,000 | |||||
Deferred tax liabilities | (5,000,000) | |||||
Other liabilities | 0 | |||||
Total liabilities | (4,000,000) | |||||
Net assets acquired | $ (4,000,000) | |||||
[1]As reported in Note 12 to our consolidated financial statements in our 2023 Form 10-K. |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - USD ($) $ in Millions | Jul. 31, 2023 | Apr. 30, 2023 |
Discontinued Operations and Disposal Groups [Abstract] | ||
Accounts receivable | $ 1 | |
Inventories | 28 | |
Other current assets | 1 | |
Trademarks and brand names | 93 | |
Goodwill | 10 | |
Deferred tax assets | 2 | |
Assets held for sale | 135 | $ 0 |
Accounts payable and accrued expenses | 12 | |
Accrued income taxes | 1 | |
Liabilities held for sale | 13 | $ 0 |
Net assets held for sale | 122 | |
Disposal Group, Estimated Sales Price | $ 220 |