Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2016 | Mar. 01, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | J M SMUCKER Co | |
Entity Central Index Key | 91,419 | |
Document Type | 10-Q | |
Document Period End Date | Jan. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,684,293 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Income Statement [Abstract] | |||||
Net sales | $ 1,973.9 | $ 1,440 | $ 6,003.6 | $ 4,245.6 | |
Cost of products sold | 1,210.1 | 917.1 | 3,723.8 | 2,707.5 | |
Gross Profit | 763.8 | 522.9 | 2,279.8 | 1,538.1 | |
Selling, distribution, and administrative expenses | 381.1 | 237.3 | 1,158.5 | 743.1 | |
Amortization | 52.2 | 25.2 | 158.2 | 75.3 | |
Other special project costs | [1] | 41.4 | 5.9 | 94.9 | 17.3 |
Other operating (income) expense – net | (29.2) | (0.6) | (31) | 0.9 | |
Operating Income | 318.3 | 255.1 | 899.2 | 701.5 | |
Interest expense – net | (43.6) | (16.8) | (130.6) | (50.4) | |
Other income (expense) – net | 0.6 | 0.1 | (0.9) | 1.7 | |
Income Before Income Taxes | 275.3 | 238.4 | 767.7 | 652.8 | |
Income taxes | 90 | 77.5 | 270 | 217.6 | |
Net Income | $ 185.3 | $ 160.9 | $ 497.7 | $ 435.2 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 1.55 | $ 1.58 | $ 4.16 | $ 4.28 | |
Net Income - Assuming Dilution (in dollars per share) | 1.55 | 1.58 | 4.16 | 4.28 | |
Dividends Declared per Common Share (in dollars per share) | $ 0.67 | $ 0.64 | $ 2.01 | $ 1.92 | |
[1] | Other special project costs includes restructuring and merger and integration costs. For more information on businesses acquired, see Note 3: Acquisitions. |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 185.3 | $ 160.9 | $ 497.7 | $ 435.2 |
Other comprehensive loss: | ||||
Foreign currency translation adjustments | (21.5) | (35.2) | (44.4) | (49.6) |
Cash flow hedging derivative activity, net of tax | 0.1 | (5.9) | 0.3 | (17.6) |
Pension and other postretirement benefit plans activity, net of tax | 3 | 5.5 | 7.1 | 8.4 |
Available-for-sale securities activity, net of tax | 0.4 | 0.3 | 0 | 0.9 |
Total Other Comprehensive Loss | (18) | (35.3) | (37) | (57.9) |
Comprehensive Income | $ 167.3 | $ 125.6 | $ 460.7 | $ 377.3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 | |
Current Assets | |||
Cash and cash equivalents | $ 140.5 | $ 125.6 | |
Trade receivables, less allowance for doubtful accounts | 503.8 | 430.1 | |
Inventories: | |||
Finished products | 622.2 | 815 | |
Raw materials | 319.8 | 348.6 | |
Total Inventory | 942 | 1,163.6 | |
Other current assets | 212.1 | 340.9 | |
Total Current Assets | 1,798.4 | 2,060.2 | |
Property, Plant, and Equipment | |||
Land and land improvements | 114.5 | 113.7 | |
Buildings and fixtures | 718.5 | 666.3 | |
Machinery and equipment | 1,850.6 | 1,783.8 | |
Construction in progress | 73.1 | 135.3 | |
Gross Property, Plant, and Equipment | 2,756.7 | 2,699.1 | |
Accumulated depreciation | (1,132.8) | (1,020.8) | |
Total Property, Plant, and Equipment | 1,623.9 | 1,678.3 | |
Other Noncurrent Assets | |||
Goodwill | 5,944.9 | 6,011.6 | |
Other intangible assets – net | 6,715 | 6,950.3 | |
Other noncurrent assets | 199.3 | 182.2 | |
Total Other Noncurrent Assets | 12,859.2 | 13,144.1 | |
Total Assets | 16,281.5 | 16,882.6 | |
Current Liabilities | |||
Accounts payable | 371 | 402.8 | |
Accrued trade marketing and merchandising | 145.3 | 104.9 | |
Short-term borrowings | 138 | 226 | |
Other current liabilities | 351.7 | 288.9 | |
Total Current Liabilities | 1,006 | 1,022.6 | |
Noncurrent Liabilities | |||
Long-term debt | [1] | 5,146.3 | 5,944.9 |
Deferred income taxes | 2,461.8 | 2,473.3 | |
Other noncurrent liabilities | 341.9 | 354.9 | |
Total Noncurrent Liabilities | 7,950 | 8,773.1 | |
Total Liabilities | 8,956 | 9,795.7 | |
Shareholders’ Equity | |||
Common shares | 29.9 | 29.9 | |
Additional capital | 6,027.4 | 6,007.7 | |
Retained income | 1,415 | 1,159.2 | |
Amount due from ESOP Trust | 0 | (0.1) | |
Accumulated other comprehensive loss | (146.8) | (109.8) | |
Total Shareholders’ Equity | 7,325.5 | 7,086.9 | |
Total Liabilities and Shareholders’ Equity | $ 16,281.5 | $ 16,882.6 | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Condensed Statements of Consol5
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
Operating Activities | ||
Net income | $ 497.7 | $ 435.2 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 165.5 | 114.1 |
Amortization | 158.2 | 75.3 |
Share-based compensation expense | 26.9 | 15.9 |
Gain on divestiture | (25.3) | 0 |
Loss on disposal of assets – net | 3.8 | 4.3 |
Other noncash adjustments | (1.5) | (0.6) |
Defined benefit pension contributions | (2.4) | (4.3) |
Changes in assets and liabilities, net of effect from businesses acquired: | ||
Trade receivables | (79) | (65.3) |
Inventories | 192.1 | (16.5) |
Other current assets | 27.7 | 43 |
Accounts payable | (14.8) | (68.9) |
Accrued liabilities | 108.1 | (60.5) |
Proceeds from settlement of interest rate swap | 0 | 53.5 |
Income and other taxes | 66.7 | 8.2 |
Other – net | (0.9) | (21.8) |
Net Cash Provided by Operating Activities | 1,122.8 | 511.6 |
Investing Activities | ||
Business acquired, net of cash acquired | 7.9 | (80.5) |
Equity investment in affiliate | (16) | 0 |
Additions to property, plant, and equipment | (160.8) | (162.1) |
Proceeds from divestiture | 193.7 | 0 |
Proceeds from disposal of property, plant, and equipment | 0.2 | 1.6 |
Other – net | 5.7 | (12) |
Net Cash Provided by (Used for) Investing Activities | 30.7 | (253) |
Financing Activities | ||
Short-term (repayments) borrowings - net | (88) | 15.6 |
Repayments of long-term debt | (800) | (100) |
Quarterly dividends paid | (236.5) | (189) |
Purchase of treasury shares | (7.8) | (15.3) |
Other – net | 2.6 | 10.3 |
Net Cash Used for Financing Activities | (1,129.7) | (278.4) |
Effect of exchange rate changes on cash | (8.9) | (22) |
Net increase (decrease) in cash and cash equivalents | 14.9 | (41.8) |
Cash and cash equivalents at beginning of period | 125.6 | 153.5 |
Cash and Cash Equivalents at End of Period | $ 140.5 | $ 111.7 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements of The J. M. Smucker Company (“Company,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. Operating results for the nine -month period ended January 31, 2016 , are not necessarily indicative of the results that may be expected for the year ending April 30, 2016. For further information, reference is made to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended April 30, 2015 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 will be effective for us on May 1, 2019, and will require a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented and exclude any leases that expired before the date of initial application. We are currently evaluating the impact the application of 2016-02 will have on our financial statements and disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . ASU 2015-17 requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet in order to simplify the presentation of deferred income taxes. Although ASU 2015-17 is not effective for us until May 1, 2017, we will elect early adoption, as permitted, and will classify all deferred tax liabilities and assets as noncurrent on the balance sheet as of April 30, 2016, in accordance with ASU 2015-17. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that adjustments identified during the measurement period be made to provisional amounts recognized in a business combination in the reporting period in which the acquirer determines the adjustments, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for us on May 1, 2016, but we have elected early adoption, as permitted. Based on early adoption of this ASU, effective with the reporting period beginning August 1, 2015, we will no longer revise prior period results for adjustments to provisional amounts. For additional information, see Note 3: Acquisitions. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820) Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . ASU 2015-07 requires that investments measured using the net asset value (“NAV”) per share, or its equivalent practical expedient, be disclosed as a reconciling item between the balance sheet amounts and the amounts reported in the fair value hierarchy. Although ASU 2015-07 is not effective for us until May 1, 2016, we will elect early adoption, as permitted, and will present impacted investments as of April 30, 2016, in accordance with ASU 2015-07. We will change our presentation of Level 3 assets valued using NAV in the pensions and other postretirement benefits disclosure as required. ASU 2015-07 will be applied retrospectively to all periods presented. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt. ASU 2015-03 is effective for us on May 1, 2016, but we have elected early adoption, as permitted. As of April 30, 2015 , we reclassified debt issuance costs associated with our long-term debt from other noncurrent assets to long-term debt to conform to ASU 2015-03. For additional information, see Note 7: Debt and Financing Arrangements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 requires either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. Under the original issuance, the standard would have been effective for us on May 1, 2017. However, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date which extends the standard effective date by one year . As a result of this issuance, the standard will be effective for us on May 1, 2018, with the option to early adopt at the original effective date. Although we are still evaluating the standard, we do not expect this guidance to have a material impact on our results of operations or financial position. |
Acquisitions
Acquisitions | 9 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On March 23, 2015, we completed the acquisition of Big Heart Pet Brands (“Big Heart”), a leading producer, distributor, and marketer of premium-quality, branded pet food and pet snacks in the U.S., through the acquisition of Blue Acquisition Group, Inc. (“BAG”), Big Heart’s parent company. As a result of the acquisition, the assets and liabilities of BAG are now held by a direct wholly-owned subsidiary of the Company. The total consideration paid in connection with the acquisition was $5.9 billion , as set forth below, which included the issuance of 17.9 million of our common shares to BAG’s shareholders, valued at $2.0 billion based on the average stock price of our common shares on March 23, 2015. After the closing of the transaction, we had approximately 120.0 million common shares outstanding. We assumed $2.6 billion in debt, including Big Heart’s senior secured term loan and senior notes, and we paid an additional $1.2 billion in cash, net of a working capital adjustment. As part of the transaction, new debt of $5.5 billion was borrowed, as discussed in Note 7: Debt and Financing Arrangements. The following table summarizes the purchase price of the Big Heart acquisition. Shares issued $ 2,035.5 Assumed debt from Big Heart 2,630.2 Cash consideration, net of cash acquired 1,232.1 Total purchase price $ 5,897.8 The transaction was accounted for under the acquisition method of accounting and, accordingly, the results of Big Heart’s operations, including $580.3 and $1.7 billion in revenue and $72.4 and $203.4 in operating income, are included in our condensed consolidated financial statements for the three and nine months ended January 31, 2016 , respectively. Total one-time costs related to the acquisition are anticipated to be approximately $225.0 ; however, the costs are trending higher than the original estimate for 2016 and we are in the process of evaluating the total expected one-time costs which will be updated as necessary by the end of 2016. The one-time costs are expected to primarily consist of employee-related costs, outside service and consulting costs, and other costs related to the acquisition, and are anticipated to be incurred primarily through 2018. We incurred costs of $44.4 and $102.9 during the three and nine months ended January 31, 2016 , respectively, resulting in total costs of $138.9 from the date of acquisition, that were related to the merger and integration of Big Heart. The majority of these charges were reported in other special project costs in the Condensed Statement of Consolidated Income. The employee-related costs are recognized over the estimated future service period of the affected employees and the remaining costs are expensed as incurred. In addition, we anticipate synergies related to the Big Heart acquisition to result in net realized savings of approximately $200.0 annually by the end of 2018. The Big Heart purchase price was preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We determined the estimated fair values based on independent appraisals, discounted cash flow analyses, quoted market prices, and estimates made by management. The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and, as such, the excess was allocated to goodwill. In accordance with ASU 2015-16, as discussed in Note 2: Recently Issued Accounting Standards, we will no longer revise prior period results for adjustments to preliminary amounts recognized as part of our business acquisition. Changes to these preliminary fair values during the second quarter of 2016 resulted in a net adjustment to goodwill of $1.1 , which is attributable to the finalization of certain liabilities and the related impact on deferred taxes. There were no adjustments to goodwill during the third quarter of 2016. During the first quarter of 2016, prior to our adoption of ASU 2015-16, changes to the preliminary fair values were retrospectively applied to the Condensed Consolidated Balance Sheet as of April 30, 2015 . The changes included a net adjustment to goodwill of $1.8 , which resulted from a favorable working capital adjustment and the finalization of the estimated fair value of an equity method investment. During the second quarter of 2016, the equity method investment was subsequently written off upon exiting the relationship with Natural Blend Vegetable Dehydration, LLC. The write off had an immaterial impact on the results of operations for the nine months ended January 31, 2016 . The following table summarizes the preliminary fair values at January 31, 2016 , of the assets acquired and liabilities assumed at the acquisition date. Assets acquired: Trade receivables $ 142.0 Inventories 254.5 Other current assets 196.8 Property, plant, and equipment 324.0 Other intangible assets - net 4,009.8 Goodwill 2,874.1 Other noncurrent assets 28.3 Total assets acquired $ 7,829.5 Liabilities assumed: Current liabilities $ 385.6 Deferred income taxes 1,464.0 Other noncurrent liabilities 82.1 Total liabilities assumed $ 1,931.7 Net assets acquired $ 5,897.8 As a result of the acquisition, we recognized a total of $2.9 billion of goodwill, of which $77.8 is remaining as deductible for tax purposes at January 31, 2016 . Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities across our segments. The final allocation of goodwill to our reporting units was not complete as of January 31, 2016 . In addition, certain estimated values for the acquisition, including goodwill, intangible assets, contingent liabilities, and income taxes, are not yet finalized. The purchase price was preliminarily allocated based on information available at the acquisition date and is subject to change as we complete our analysis of the fair values of the assets and liabilities assumed at the date of acquisition during the measurement period as defined under FASB Accounting Standards Codification (“ASC”) 805, Business Combinations, which ends on March 23, 2016. The purchase price was preliminarily allocated to the identifiable intangible assets acquired as follows: Intangible assets with finite lives: Customer relationships (25-year useful life) $ 2,289.8 Trademarks (15-year useful life) 257.0 Intangible assets with indefinite lives: Trademarks 1,463.0 Total intangible assets $ 4,009.8 Big Heart’s results of operations are included in our consolidated financial statements from the date of the transaction. Had the transaction occurred at the beginning of the full comparable prior year period, the unaudited pro forma consolidated results would have been as follows: Three Months Ended Nine Months Ended Net sales $ 2,029.9 $ 5,930.7 Net income 194.1 490.5 Net income per common share - assuming dilution 1.62 4.10 The unaudited pro forma consolidated results are based on our historical financial statements and those of Big Heart, and do not necessarily indicate the results of operations that would have resulted had the acquisition been completed at the beginning of the full comparable prior year period. The most significant pro forma adjustments relate to amortization of intangible assets, higher interest expense associated with the bank term loan and long-term notes, and the impact of additional common shares issued as a result of the acquisition. The unaudited pro forma consolidated results do not give effect to the synergies of the acquisition and are not indicative of the results of operations in future periods. In addition to the Big Heart acquisition, on September 2, 2014, we completed the acquisition of Sahale Snacks, Inc. (“Sahale”), a privately-held manufacturer and marketer of premium, branded nut and fruit snacks for $80.5 in cash, net of a working capital adjustment. As a result, Sahale became a wholly-owned subsidiary of the Company. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The purchase price allocation included total intangible assets of $30.4 . The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and, as a result, the excess was allocated to goodwill. Valuations resulted in Sahale goodwill of $46.9 , and the entire amount was assigned to the U.S. Retail Consumer Foods segment. The results of operations of Sahale are included in the condensed consolidated financial statements from the date of the transaction and did not have a material impact on the three and nine months ended January 31, 2016 . |
Divestiture
Divestiture | 9 Months Ended |
Jan. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture On November 2, 2015, we entered into a definitive agreement to sell our U.S. canned milk brands and operations to Eagle Family Foods Group LLC, a subsidiary of funds affiliated with Kelso & Company, and we closed the transaction on December 31, 2015. The transaction included canned milk products that were primarily sold in U.S. retail and foodservice channels under the Eagle Brand ® and Magnolia ® brands, along with other branded and private label trade names, with annual net sales of approximately $200.0 . Our manufacturing facilities in El Paso, Texas, and Seneca, Missouri, were included in the transaction, but our canned milk business in Canada was not included. The operating results for this business were primarily included in the U.S. Retail Consumer Foods segment prior to selling the business on December 31, 2015. We received proceeds from the divestiture of $193.7 , which were net of transaction costs and the working capital adjustment. Upon completion of the transaction, we recognized a pre-tax gain of $25.3 for the three and nine months ended January 31, 2016, which is included in other operating (income) expense - net within the Condensed Statements of Consolidated Income. |
Reportable Segments
Reportable Segments | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments We operate in one industry: the manufacturing and marketing of food products. Effective May 1, 2015, our reportable segments were modified to align with the way performance is currently evaluated by our segment management and chief operating decision maker, our Chief Executive Officer, and the way in which we currently report information internally. We now have three reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and U.S. Retail Pet Foods. Within our segment results, we also present International and Foodservice, which is a combination of the strategic business areas not included in the U.S. retail market segments. The U.S. Retail Consumer Foods segment is a combination of the former U.S. Retail Consumer Foods segment and the Natural Foods strategic business area, previously included in the former International, Foodservice, and Natural Foods segment. Prior year segment results have been modified to reflect the realignment of our segments. The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers ® and Dunkin’ Donuts ® branded coffee; the U.S. Retail Consumer Foods segment primarily includes domestic sales of Jif ® , Smucker’s ® , Pillsbury ® , and Crisco ® branded products; and the U.S. Retail Pet Foods segment primarily includes domestic sales of Meow Mix ® , Milk-Bone ® , Kibbles ’n Bits ® , Natural Balance ® , 9Lives ® , Pup-Peroni ® , Gravy Train ® , and Nature’s Recipe ® branded products. International and Foodservice is comprised of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., restaurants, lodging, schools and universities, health care operators). Segment profit represents net sales, less direct and allocable operating expenses, and is consistent with the way in which we manage our segments. However, we do not represent that the segments, if operated independently, would report operating profit equal to the segment profit set forth below, as segment profit excludes certain operating expenses such as corporate administrative expenses and unallocated gains and losses on commodity and foreign currency exchange derivative activities. Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net sales: U.S. Retail Coffee $ 575.5 $ 571.8 $ 1,726.6 $ 1,607.5 U.S. Retail Consumer Foods 569.8 600.8 1,796.0 1,847.6 U.S. Retail Pet Foods 570.9 — 1,687.5 — International and Foodservice 257.7 267.4 793.5 790.5 Total net sales $ 1,973.9 $ 1,440.0 $ 6,003.6 $ 4,245.6 Segment profit: U.S. Retail Coffee $ 175.9 $ 150.5 $ 492.7 $ 439.3 U.S. Retail Consumer Foods 128.0 120.7 370.9 364.4 U.S. Retail Pet Foods 97.2 — 275.4 — International and Foodservice 43.3 41.7 123.8 109.8 Total segment profit $ 444.4 $ 312.9 $ 1,262.8 $ 913.5 Interest expense – net (43.6 ) (16.8 ) (130.6 ) (50.4 ) Unallocated derivative gains (losses) 6.7 13.4 2.7 (0.4 ) Cost of products sold – special project costs (3.1 ) (0.4 ) (9.2 ) (1.1 ) Other special project costs (41.4 ) (5.9 ) (94.9 ) (17.3 ) Corporate administrative expenses (88.3 ) (64.9 ) (262.2 ) (193.2 ) Other income (expense) – net 0.6 0.1 (0.9 ) 1.7 Income before income taxes $ 275.3 $ 238.4 $ 767.7 $ 652.8 |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table sets forth the computation of net income per common share and net income per common share – assuming dilution under the two-class method. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net income $ 185.3 $ 160.9 $ 497.7 $ 435.2 Less: Net income allocated to participating securities 0.8 1.0 2.2 2.9 Net income allocated to common stockholders $ 184.5 $ 159.9 $ 495.5 $ 432.3 Weighted-average common shares outstanding 119,167,720 101,190,896 119,138,552 101,114,223 Add: Dilutive effect of stock options 52,585 675 25,356 4,132 Weighted-average common shares outstanding – assuming dilution 119,220,305 101,191,571 119,163,908 101,118,355 Net income per common share $ 1.55 $ 1.58 $ 4.16 $ 4.28 Net income per common share – assuming dilution $ 1.55 $ 1.58 $ 4.16 $ 4.28 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following: January 31, 2016 April 30, 2015 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 497.7 $ 500.0 $ 496.9 2.50% Senior Notes due March 15, 2020 500.0 495.2 500.0 494.3 3.50% Senior Notes due October 15, 2021 750.0 791.0 750.0 796.0 3.00% Senior Notes due March 15, 2022 400.0 395.8 400.0 395.3 3.50% Senior Notes due March 15, 2025 1,000.0 992.5 1,000.0 991.9 4.25% Senior Notes due March 15, 2035 650.0 642.1 650.0 641.8 4.38% Senior Notes due March 15, 2045 600.0 584.2 600.0 583.8 Term Loan Credit Agreement due March 23, 2020 750.0 747.8 1,550.0 1,544.9 Total long-term debt $ 5,150.0 $ 5,146.3 $ 5,950.0 $ 5,944.9 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. In March 2015, we entered into a senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) with a syndicate of banks and an available commitment amount of $1.8 billion . Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or London Interbank Offered Rate (“LIBOR”), based on our election, and is payable either on a quarterly basis or at the end of the borrowing term. The weighted-average interest rate on the Term Loan at January 31, 2016 , was 1.68 percent . The Term Loan requires quarterly amortization payments of 2.5 percent of the original principal amount starting in the third quarter of 2016. Voluntary prepayments are permitted without premium or penalty and are applied to the schedule of required quarterly minimum payment obligations in direct order of maturity. As of January 31, 2016 , we have prepaid $1.0 billion on the Term Loan to date, including $350.0 and $800.0 in the third quarter and first nine months of 2016, respectively, and therefore no additional payments are required until final maturity of the loan agreement on March 23, 2020. Also in March 2015, we completed an offering of $3.7 billion in Senior Notes due beginning March 15, 2018 through March 15, 2045. The proceeds from the offering, along with the Term Loan, were used to partially finance the Big Heart acquisition, pay off the debt assumed as part of the Big Heart acquisition, and prepay our privately placed Senior Notes. All of our Senior Notes outstanding at January 31, 2016 , are unsecured and interest is paid semiannually. There are no required scheduled principal payments on our Senior Notes. We may prepay at any time all or part of the Senior Notes at 100 percent of the principal amount thereof, together with the accrued and unpaid interest, and any applicable make-whole amount. During 2015, we entered into a series of forward-starting interest rate swaps that were designated as cash flow hedges. In conjunction with the pricing of the series of Senior Notes, we terminated the interest rate swaps prior to maturity, resulting in a net loss of $4.0 , which will be amortized over the life of the remaining debt. During 2014, we entered into an interest rate swap designated as a fair value hedge of the underlying debt obligation. Upon termination of the interest rate swap agreement in 2015, we received $58.1 in cash and recorded a deferred gain of $53.5 . At January 31, 2016 , the remaining benefit of $45.7 was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt. For additional information, see Note 9: Derivative Financial Instruments. We have available a $1.5 billion revolving credit facility with a group of 11 banks that matures in September 2018. Borrowings under the revolving credit facility bear interest based on the prevailing U.S. Prime Rate, Canadian Base Rate, LIBOR, or Canadian Dealer Offered Rate, based on our election. Interest is payable either on a quarterly basis or at the end of the borrowing term. At January 31, 2016 , we did not have a balance outstanding under the revolving credit facility. During 2015, we entered into a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $1.0 billion at any time. The commercial paper program is backed by our revolving credit facility and reduces what we can borrow under the revolving credit facility by the amount of commercial paper outstanding. Commercial paper will be used as a continuing source of short-term financing for general corporate purposes. As of January 31, 2016 , we had $138.0 of short-term borrowings outstanding, all of which were issued under our commercial paper program at a weighted-average interest rate of 0.65 percent . Interest paid totaled $4.2 and $18.0 for the three months ended January 31, 2016 and 2015 , respectively, and $89.8 and $54.9 for the nine months ended January 31, 2016 and 2015 , respectively. These amounts differ from interest expense due to the timing of payments, amortization of fair value swap adjustments, effect of the interest rate swap, amortization of debt issuance costs, and capitalized interest. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 9 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pensions and Other Postretirement Benefits | Pensions and Other Postretirement Benefits The components of our net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below. Three Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 4.4 $ 2.0 $ 0.6 $ 0.6 Interest cost 6.9 5.6 0.8 0.6 Expected return on plan assets (8.1 ) (6.2 ) — — Recognized net actuarial loss (gain) 2.8 2.5 (0.1 ) — Prior service cost (credit) 0.1 0.2 (0.4 ) (0.3 ) Curtailment gain (1.4 ) — — — Net periodic benefit cost $ 4.7 $ 4.1 $ 0.9 $ 0.9 Nine Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 13.5 $ 5.9 $ 1.7 $ 1.7 Interest cost 20.8 17.0 2.2 1.8 Expected return on plan assets (24.8 ) (18.7 ) — — Recognized net actuarial loss (gain) 8.2 7.5 (0.2 ) — Prior service cost (credit) 0.5 0.7 (0.9 ) (0.9 ) Curtailment gain (5.9 ) — (0.1 ) — Net periodic benefit cost $ 12.3 $ 12.4 $ 2.7 $ 2.6 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jan. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We are exposed to market risks, such as changes in commodity prices, foreign currency exchange rates, and interest rates. To manage the volatility related to these exposures, we enter into various derivative transactions. We have policies in place that define acceptable instrument types we may enter into and establish controls to limit our market risk exposure. Commodity Price Management: We enter into commodity futures and options contracts to manage the price volatility and reduce the variability of future cash flows related to anticipated inventory purchases of key raw materials, notably green coffee, corn, edible oils, soybean meal, and wheat. We also enter into commodity futures and options contracts to manage price risk for energy input costs, including diesel fuel and natural gas. The derivative instruments generally have maturities of less than one year . We do not qualify commodity derivatives for hedge accounting treatment and as a result the derivative gains and losses are immediately recognized in earnings. Although we do not perform the assessments required to achieve hedge accounting for derivative positions, we believe all of our commodity derivatives are economic hedges of our risk exposure. The commodities hedged have a high inverse correlation to price changes of the derivative commodity instrument. Thus, we would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by an increase or decrease in the estimated fair value of the underlying exposures. Foreign Currency Exchange Rate Hedging: We utilize foreign currency forwards and options contracts to manage the effect of foreign currency exchange fluctuations on future cash payments primarily related to purchases of certain raw materials and finished goods. The contracts generally have maturities of less than one year . We do not qualify instruments used to manage foreign currency exchange exposures for hedge accounting treatment. Interest Rate Hedging: We utilize derivative instruments to manage changes in the fair value of our debt. Interest rate swaps mitigate the risk associated with the underlying hedged item. At the inception of the contract, the instrument is evaluated and documented for hedge accounting treatment. If the contract is designated as a cash flow hedge, the mark-to-market gains and losses on the swap are deferred and included as a component of accumulated other comprehensive loss to the extent effective, and reclassified to interest expense in the period during which the hedged transaction affects earnings. If the contract is designated as a fair value hedge, the swap would be recognized at fair value on the balance sheet and changes in the fair value would be recognized in interest expense. Generally, changes in the fair value of the derivative are equal to changes in the fair value of the underlying debt and have no impact on earnings. During 2015, we entered into a series of forward-starting interest rate swaps to hedge a portion of the interest rate risk related to our anticipated issuance of Senior Notes. The notional hedged amount was $1.1 billion , with expected maturity tenors of 10 , 20 , and 30 years . The swap agreements were designated as cash flow hedges, where changes in fair value are recorded in other comprehensive income (loss). In March 2015, in conjunction with the pricing of the Senior Notes, we terminated the interest rate swaps prior to maturity. The termination resulted in a net loss of $4.0 , which will be amortized over the life of the remaining debt as an increase to interest expense and approximately $0.2 per year will be recognized beginning in 2026 through 2045. For additional information, see Note 7: Debt and Financing Arrangements. During 2014, we entered into an interest rate swap on the 3.50 percent Senior Notes due October 15, 2021, which was designated as a fair value hedge and used to hedge against the changes in the fair value of the debt. We received cash flows from the counterparty at a fixed rate and paid the counterparty variable rates based on LIBOR. In 2015, we terminated the interest rate swap on the 3.50 percent Senior Notes prior to maturity. As a result of the early termination, we received $58.1 in cash, which included $4.6 of accrued and prepaid interest. The gain on termination was deferred and will be recognized over the remaining life of the underlying debt as a reduction of future interest expense. We recognized $2.2 in 2015 and an additional $5.6 through January 31, 2016 . The remaining gain will be recognized as follows: $1.8 through the remainder of 2016, $7.6 in 2017, $7.8 in 2018, $8.0 in 2019, $8.1 in 2020, $8.4 in 2021, and $4.0 in 2022. For additional information, see Note 7: Debt and Financing Arrangements. The following tables set forth the gross fair value amounts of derivative instruments recognized in the Condensed Consolidated Balance Sheets January 31, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 11.4 $ 29.5 $ 1.0 $ 4.4 Foreign currency exchange contracts 9.5 0.1 0.6 — Total derivative instruments $ 20.9 $ 29.6 $ 1.6 $ 4.4 April 30, 2015 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 6.4 $ 23.9 $ 0.2 $ 3.8 Foreign currency exchange contracts 4.8 1.0 — — Total derivative instruments $ 11.2 $ 24.9 $ 0.2 $ 3.8 We have elected to not offset fair value amounts recognized for our exchange-traded commodity derivative instruments and our cash margin accounts executed with the same counterparty that are generally subject to enforceable netting agreements. We are required to maintain cash margin accounts in connection with funding the settlement of our open positions. At January 31, 2016 and April 30, 2015 , we maintained cash margin account balances of $32.4 and $38.2 , respectively, included in other current assets in the Condensed Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the Condensed Statements of Consolidated Cash Flows. In the event of default and immediate net settlement of all of our open positions with individual counterparties, all of our derivative liabilities would be fully offset by either our derivative asset positions or margin accounts based on the net asset or liability position with our individual counterparties. The following table presents information on pre-tax commodity contract net gains recognized on derivatives designated as cash flow hedges prior to May 1, 2014, and pre-tax losses related to the termination of prior interest rate swaps. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Gains reclassified from accumulated other comprehensive loss to cost of products sold (effective portion) $ — $ 9.6 $ — $ 28.4 Losses reclassified from accumulated other comprehensive loss to interest expense (effective portion) (0.1 ) (0.1 ) (0.4 ) (0.4 ) Change in accumulated other comprehensive loss $ 0.1 $ (9.5 ) $ 0.4 $ (28.0 ) Included as a component of accumulated other comprehensive loss at January 31, 2016 and April 30, 2015 , were deferred pre-tax losses of $7.7 and $8.2 , respectively, related to the termination of interest rate swaps. The related tax benefit recognized in accumulated other comprehensive loss was $2.8 and $2.9 at January 31, 2016 and April 30, 2015 , respectively. Approximately $0.6 of the pre-tax loss will be recognized over the next 12 months. The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as hedging instruments. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Losses on commodity contracts $ (23.3 ) $ (13.9 ) $ (50.2 ) $ (34.3 ) Gains on foreign currency exchange contracts 10.4 11.7 19.0 14.1 Total losses recognized in cost of products sold $ (12.9 ) $ (2.2 ) $ (31.2 ) $ (20.2 ) Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net losses on mark-to-market valuation of unallocated derivative positions $ (12.9 ) $ (2.2 ) $ (31.2 ) $ (20.2 ) Net losses on derivative positions reclassified to segment operating profit 19.6 15.6 33.9 19.8 Unallocated derivative gains (losses) $ 6.7 $ 13.4 $ 2.7 $ (0.4 ) The net cumulative unallocated derivative losses at January 31, 2016 , were $17.8 , of which $4.7 were realized and will be reclassified to segment operating profit when the related inventory is sold. The following table presents the gross contract notional value of outstanding derivative contracts. January 31, 2016 April 30, 2015 Commodity contracts $ 712.0 $ 640.6 Foreign currency exchange contracts 177.8 136.4 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 9 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments and Fair Value Measurements | Other Financial Instruments and Fair Value Measurements Financial instruments, other than derivatives, that potentially subject us to significant concentrations of credit risk consist principally of cash investments, short-term borrowings, and trade receivables. The carrying value of these financial instruments approximates fair value. Our other financial instruments, with the exception of long-term debt, are recognized at estimated fair value in the Condensed Consolidated Balance Sheets. The following table provides information on the carrying amounts and fair values of our financial instruments. January 31, 2016 April 30, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Other investments $ 48.3 $ 48.3 $ 48.4 $ 48.4 Derivative financial instruments – net (11.5 ) (11.5 ) (17.3 ) (17.3 ) Long-term debt (5,146.3 ) (5,187.0 ) (5,944.9 ) (6,011.3 ) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at January 31, 2016 Other investments: (A) Equity mutual funds $ 9.6 $ — $ — $ 9.6 Municipal obligations — 37.7 — 37.7 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net (7.8 ) (13.7 ) — (21.5 ) Foreign currency exchange contracts – net 0.8 9.2 — 10.0 Long-term debt (C) (4,436.0 ) (751.0 ) — (5,187.0 ) Total financial instruments measured at fair value $ (4,432.4 ) $ (717.8 ) $ — $ (5,150.2 ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at April 30, 2015 Other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.9 — 37.9 Money market funds 0.8 — — 0.8 Derivative financial instruments: (B) Commodity contracts – net (12.4 ) (8.7 ) — (21.1 ) Foreign currency exchange contracts – net (0.2 ) 4.0 — 3.8 Long-term debt (C) (4,459.0 ) (1,552.3 ) — (6,011.3 ) Total financial instruments measured at fair value $ (4,461.1 ) $ (1,519.1 ) $ — $ (5,980.2 ) (A) Other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs which are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less . Based on the short-term nature of these money market funds, carrying value approximates fair value. As of January 31, 2016 , our municipal obligations are scheduled to mature as follows: $0.4 in 2016, $1.0 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $32.3 in 2020 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three-month period ended January 31, 2016 , the effective tax rate varied from the U.S. statutory income tax rate primarily due to the domestic manufacturing deduction, offset by state income taxes. During the nine -month period ended January 31, 2016 , the effective tax rate varied from the U.S. statutory income tax rate primarily due to state income taxes, partially offset to some extent by the domestic manufacturing deduction. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $2.2 , primarily as a result of expiring statute of limitations periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, including the reclassification adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below. Foreign Currency Translation Adjustment Unrealized Loss on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain on Available- for-Sale Securities Accumulated Other Comprehensive Loss Balance at May 1, 2015 $ (2.3 ) $ (5.2 ) $ (105.6 ) $ 3.3 $ (109.8 ) Reclassification adjustments — 0.4 10.5 — 10.9 Current period (charge) credit (44.4 ) — 1.3 — (43.1 ) Income tax expense — (0.1 ) (4.7 ) — (4.8 ) Balance at January 31, 2016 $ (46.7 ) $ (4.9 ) $ (98.5 ) $ 3.3 $ (146.8 ) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain on Available- for-Sale Securities Accumulated Other Comprehensive Loss Balance at May 1, 2014 $ 31.7 $ 15.3 $ (102.0 ) $ 3.4 $ (51.6 ) Reclassification adjustments — (28.0 ) 10.6 — (17.4 ) Current period (charge) credit (49.6 ) — 1.7 1.4 (46.5 ) Income tax benefit (expense) — 10.4 (3.9 ) (0.5 ) 6.0 Balance at January 31, 2015 $ (17.9 ) $ (2.3 ) $ (93.6 ) $ 4.3 $ (109.5 ) (A) Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for both the three months ended January 31, 2016 and 2015 , and $0.4 of expense was reclassified for both the nine months ended January 31, 2016 and 2015 . Of the total gains and losses reclassified from accumulated other comprehensive loss, $9.6 and $28.4 of income was reclassified to cost of products sold related to commodity derivatives for the three and nine months ended January 31, 2015 , respectively. (B) Of the total amortization of net losses reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expense for the nine months ended January 31, 2016 and 2015 , $3.2 and $6.6 was reclassified for the three months ended January 31, 2016 and 2015 , respectively. |
Contingencies
Contingencies | 9 Months Ended |
Jan. 31, 2016 | |
Contingency [Abstract] | |
Contingencies | Contingencies We, like other food manufacturers, are from time to time subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. We are currently a defendant in a variety of such legal proceedings. We cannot predict with certainty the ultimate results of these proceedings or reasonably determine a range of potential loss. Our policy is to accrue costs for contingent liabilities when such liabilities are probable and amounts can be reasonably estimated. Based on the information known to date, and subject to the discussion below, we do not believe the final outcome of these proceedings will have a material adverse effect on our financial position, results of operations, or cash flows. On October 9, 2013, Big Heart entered into a Purchase Agreement with Del Monte Pacific Limited and its subsidiary, Del Monte Foods Consumer Products, Inc. (which changed its name to Del Monte Foods, Inc.) (“DMFI”). Big Heart sold to DMFI the interests of certain subsidiaries related to Big Heart’s consumer products business and generally all assets and liabilities primarily related to the consumer products business for a purchase price of $1.7 billion , subject to a post-closing working capital adjustment. In connection with the closing of the transaction, Big Heart received approximately $110.0 in incremental proceeds representing the preliminary working capital adjustment subject to a true-up in accordance with the terms of the Purchase Agreement. In May 2014, Big Heart made a claim of an additional $16.3 for the final working capital adjustment related to the sale of the consumer products business. In June 2014, Big Heart received a notice of disagreement from DMFI disputing the $16.3 final working capital adjustment, as well as the incremental preliminary working capital adjustment of approximately $110.0 paid by DMFI at closing. Although we believe the working capital adjustment presented to DMFI was appropriate and was in accordance with the terms of the Purchase Agreement, a mutually agreed upon independent certified public accounting firm ruled in favor of DMFI with respect to certain aspects of the methodology by which the working capital adjustment should be calculated. In connection with such ruling, we have resubmitted the original working capital adjustment, which is currently under review by DMFI. We cannot currently predict the ultimate outcome of this adjustment and have not recorded a receivable or liability in Big Heart’s opening balance sheet. We will continue to vigorously defend Big Heart’s position and to evaluate the facts of this dispute in existence at the acquisition date in estimating the fair value of the receivable or liability at that time, which may result in an adjustment to the opening balance sheet during the measurement period as defined by FASB ASC 805, Business Combinations . |
Common Shares
Common Shares | 9 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | Common Shares The following table sets forth common share information. January 31, 2016 April 30, 2015 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 119,685,003 119,577,333 Treasury shares 26,812,727 26,920,397 We did not repurchase any common shares in the first nine months of 2016 and, at January 31, 2016 , we had approximately 10.0 million common shares available for repurchase under the Board’s authorizations. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 9 Months Ended |
Jan. 31, 2016 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information Our Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”), which are 100 percent wholly-owned subsidiaries of the Company. A subsidiary guarantor will be released from its obligations under the indentures governing the notes (a) with respect to each series of notes, if we exercise our legal or covenant defeasance option with respect to such series of notes or if our obligations under an indenture are discharged in accordance with the terms of such indenture in respect of such series of notes; (b) with respect to all series of notes issued in March 2015, upon the issuance, sale, exchange, transfer, or other disposition (including through merger, consolidation, amalgamation, or otherwise) of the capital stock of the applicable subsidiary guarantor (including any issuance, sale, exchange, transfer, or other disposition following which the applicable subsidiary guarantor is no longer a subsidiary) if such issuance, sale, exchange, transfer, or other disposition is made in a manner not in violation of the indenture in respect of such series of notes; or (c) with respect to all series of notes, upon the substantially simultaneous release or discharge of the guarantee by such subsidiary guarantor of all of our primary senior indebtedness other than through discharges as a result of payment by such guarantor on such guarantees. Condensed consolidating financial statements for the Company, the subsidiary guarantors, and the other subsidiaries of the Company that are not guaranteeing the indebtedness under the Senior Notes (the “non-guarantor subsidiaries”) are provided below. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with our 100 percent wholly-owned subsidiary guarantors and non-guarantor subsidiaries. We have accounted for investments in subsidiaries using the equity method. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 784.7 $ 289.6 $ 2,190.5 $ (1,290.9 ) $ 1,973.9 Cost of products sold 591.4 264.3 1,651.9 (1,297.5 ) 1,210.1 Gross Profit 193.3 25.3 538.6 6.6 763.8 Selling, distribution, and administrative expenses and other special project costs 72.9 9.6 340.0 — 422.5 Amortization 0.3 — 51.9 — 52.2 Other operating income – net (24.6 ) — (4.6 ) — (29.2 ) Operating Income 144.7 15.7 151.3 6.6 318.3 Interest (expense) income – net (43.8 ) 0.3 (0.1 ) — (43.6 ) Other (expense) income – net (1.7 ) 0.1 2.2 — 0.6 Equity in net earnings of subsidiaries 119.2 36.5 15.8 (171.5 ) — Income Before Income Taxes 218.4 52.6 169.2 (164.9 ) 275.3 Income taxes 33.1 0.1 56.8 — 90.0 Net Income 185.3 52.5 112.4 (164.9 ) 185.3 Other comprehensive (loss) income, net of tax (18.0 ) 0.2 (19.8 ) 19.6 (18.0 ) Comprehensive Income $ 167.3 $ 52.7 $ 92.6 $ (145.3 ) $ 167.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 773.4 $ 281.9 $ 1,680.2 $ (1,295.5 ) $ 1,440.0 Cost of products sold 604.8 256.2 1,355.7 (1,299.6 ) 917.1 Gross Profit 168.6 25.7 324.5 4.1 522.9 Selling, distribution, and administrative expenses and other special project costs 53.2 12.8 177.2 — 243.2 Amortization 1.1 — 24.0 0.1 25.2 Other operating expense (income) – net 0.5 (1.2 ) 0.1 — (0.6 ) Operating Income 113.8 14.1 123.2 4.0 255.1 Interest (expense) income – net (17.0 ) 0.3 (0.1 ) — (16.8 ) Other income (expense) – net 0.2 0.1 (0.2 ) — 0.1 Equity in net earnings of subsidiaries 95.9 29.4 14.3 (139.6 ) — Income Before Income Taxes 192.9 43.9 137.2 (135.6 ) 238.4 Income taxes 32.0 0.1 45.4 — 77.5 Net Income 160.9 43.8 91.8 (135.6 ) 160.9 Other comprehensive (loss) income, net of tax (35.3 ) (5.0 ) (36.9 ) 41.9 (35.3 ) Comprehensive Income $ 125.6 $ 38.8 $ 54.9 $ (93.7 ) $ 125.6 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,372.7 $ 929.5 $ 6,740.6 $ (4,039.2 ) $ 6,003.6 Cost of products sold 1,831.1 850.8 5,088.8 (4,046.9 ) 3,723.8 Gross Profit 541.6 78.7 1,651.8 7.7 2,279.8 Selling, distribution, and administrative expenses and other special project costs 197.8 30.4 1,025.2 — 1,253.4 Amortization 2.4 — 155.8 — 158.2 Other operating (income) expense – net (24.7 ) 0.4 (6.7 ) — (31.0 ) Operating Income 366.1 47.9 477.5 7.7 899.2 Interest (expense) income – net (131.2 ) 0.9 (0.3 ) — (130.6 ) Other income (expense) – net 1.8 0.2 (2.9 ) — (0.9 ) Equity in net earnings of subsidiaries 342.4 101.7 48.1 (492.2 ) — Income Before Income Taxes 579.1 150.7 522.4 (484.5 ) 767.7 Income taxes 81.4 0.3 188.3 — 270.0 Net Income 497.7 150.4 334.1 (484.5 ) 497.7 Other comprehensive (loss) income, net of tax (37.0 ) 0.7 (43.0 ) 42.3 (37.0 ) Comprehensive Income $ 460.7 $ 151.1 $ 291.1 $ (442.2 ) $ 460.7 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,285.1 $ 918.7 $ 4,983.6 $ (3,941.8 ) $ 4,245.6 Cost of products sold 1,837.6 832.8 3,981.5 (3,944.4 ) 2,707.5 Gross Profit 447.5 85.9 1,002.1 2.6 1,538.1 Selling, distribution, and administrative expenses and other special project costs 156.5 39.0 564.9 — 760.4 Amortization 3.2 — 72.0 0.1 75.3 Other operating expense – net 0.2 0.7 — — 0.9 Operating Income 287.6 46.2 365.2 2.5 701.5 Interest (expense) income – net (51.0 ) 0.9 (0.3 ) — (50.4 ) Other income (expense) – net 1.7 0.1 (0.1 ) — 1.7 Equity in net earnings of subsidiaries 277.7 103.8 46.4 (427.9 ) — Income Before Income Taxes 516.0 151.0 411.2 (425.4 ) 652.8 Income taxes 80.8 0.3 136.5 — 217.6 Net Income 435.2 150.7 274.7 (425.4 ) 435.2 Other comprehensive (loss) income, net of tax (57.9 ) (15.8 ) (62.7 ) 78.5 (57.9 ) Comprehensive Income $ 377.3 $ 134.9 $ 212.0 $ (346.9 ) $ 377.3 CONDENSED CONSOLIDATING BALANCE SHEETS January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 3.9 $ — $ 136.6 $ — $ 140.5 Inventories — 144.7 789.6 7.7 942.0 Other current assets 443.9 11.8 268.4 (8.2 ) 715.9 Total Current Assets 447.8 156.5 1,194.6 (0.5 ) 1,798.4 Property, Plant, and Equipment – Net 297.5 576.2 750.2 — 1,623.9 Investments in Subsidiaries 14,894.7 4,281.5 321.3 (19,497.5 ) — Intercompany Receivable — 390.9 877.9 (1,268.8 ) — Other Noncurrent Assets Goodwill 1,033.0 — 4,911.9 — 5,944.9 Other intangible assets – net 430.3 — 6,284.7 — 6,715.0 Other noncurrent assets 57.5 10.1 131.7 — 199.3 Total Other Noncurrent Assets 1,520.8 10.1 11,328.3 — 12,859.2 Total Assets $ 17,160.8 $ 5,415.2 $ 14,472.3 $ (20,766.8 ) $ 16,281.5 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 493.6 $ 74.7 $ 445.9 $ (8.2 ) $ 1,006.0 Noncurrent Liabilities Long-term debt 5,146.3 — — — 5,146.3 Deferred income taxes 101.4 — 2,360.4 — 2,461.8 Intercompany payable 3,838.0 — — (3,838.0 ) — Other noncurrent liabilities 256.0 15.3 70.6 — 341.9 Total Noncurrent Liabilities 9,341.7 15.3 2,431.0 (3,838.0 ) 7,950.0 Total Liabilities 9,835.3 90.0 2,876.9 (3,846.2 ) 8,956.0 Total Shareholders’ Equity 7,325.5 5,325.2 11,595.4 (16,920.6 ) 7,325.5 Total Liabilities and Shareholders’ Equity $ 17,160.8 $ 5,415.2 $ 14,472.3 $ (20,766.8 ) $ 16,281.5 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.1 $ — $ 118.5 $ — $ 125.6 Inventories — 180.3 979.6 3.7 1,163.6 Other current assets 427.4 4.8 351.4 (12.6 ) 771.0 Total Current Assets 434.5 185.1 1,449.5 (8.9 ) 2,060.2 Property, Plant, and Equipment – Net 258.0 591.3 829.0 — 1,678.3 Investments in Subsidiaries 14,610.4 4,179.7 272.4 (19,062.5 ) — Intercompany Receivable — 305.2 133.1 (438.3 ) — Other Noncurrent Assets Goodwill 1,082.0 — 4,929.6 — 6,011.6 Other intangible assets – net 501.1 — 6,449.2 — 6,950.3 Other noncurrent assets 55.6 10.5 116.1 — 182.2 Total Other Noncurrent Assets 1,638.7 10.5 11,494.9 — 13,144.1 Total Assets $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7 ) $ 16,882.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 484.0 $ 82.6 $ 468.6 $ (12.6 ) $ 1,022.6 Noncurrent Liabilities Long-term debt 5,944.9 — — — 5,944.9 Deferred income taxes 106.9 — 2,366.4 — 2,473.3 Intercompany payable 3,080.2 — — (3,080.2 ) — Other noncurrent liabilities 238.7 15.2 101.0 — 354.9 Total Noncurrent Liabilities 9,370.7 15.2 2,467.4 (3,080.2 ) 8,773.1 Total Liabilities 9,854.7 97.8 2,936.0 (3,092.8 ) 9,795.7 Total Shareholders’ Equity 7,086.9 5,174.0 11,242.9 (16,416.9 ) 7,086.9 Total Liabilities and Shareholders’ Equity $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7 ) $ 16,882.6 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 245.8 $ 119.2 $ 757.8 $ — $ 1,122.8 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Equity investment in affiliate — — (16.0 ) — (16.0 ) Additions to property, plant, and equipment (70.8 ) (32.7 ) (57.3 ) — (160.8 ) Proceeds from divestiture 193.7 — — — 193.7 Proceeds from disposal of property, plant, and equipment — 0.1 0.1 — 0.2 (Disbursements of) repayments from intercompany loans — (85.6 ) (672.2 ) 757.8 — Other – net — (1.0 ) 6.7 — 5.7 Net Cash Provided by (Used for) Investing Activities 122.9 (119.2 ) (730.8 ) 757.8 30.7 Financing Activities Short-term repayments - net (88.0 ) — — — (88.0 ) Repayments of long-term debt (800.0 ) — — — (800.0 ) Quarterly dividends paid (236.5 ) — — — (236.5 ) Purchase of treasury shares (7.8 ) — — — (7.8 ) Intercompany payable 757.8 — — (757.8 ) — Other – net 2.6 — — — 2.6 Net Cash Used for Financing Activities (371.9 ) — — (757.8 ) (1,129.7 ) Effect of exchange rate changes on cash — — (8.9 ) — (8.9 ) Net (decrease) increase in cash and cash equivalents (3.2 ) — 18.1 — 14.9 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 3.9 $ — $ 136.6 $ — $ 140.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 162.7 $ 70.4 $ 278.5 $ — $ 511.6 Investing Activities Businesses acquired, net of cash acquired — — (80.5 ) — (80.5 ) Additions to property, plant, and equipment (36.0 ) (68.9 ) (57.2 ) — (162.1 ) Equity investments in subsidiaries (83.1 ) — — 83.1 — Proceeds from disposal of property, plant, and equipment — 1.1 0.5 — 1.6 Repayments from (Disbursements of) intercompany loans — 4.2 (244.5 ) 240.3 — Other – net — (6.8 ) (5.2 ) — (12.0 ) Net Cash (Used for) Provided by Investing Activities (119.1 ) (70.4 ) (386.9 ) 323.4 (253.0 ) Financing Activities Short-term borrowings - net 15.6 — — — 15.6 Repayments of long-term debt (100.0 ) — — — (100.0 ) Quarterly dividends paid (189.0 ) — — — (189.0 ) Purchase of treasury shares (15.3 ) — — — (15.3 ) Investments in subsidiaries — — 83.1 (83.1 ) — Intercompany payable 240.3 — — (240.3 ) — Other – net 10.3 — — — 10.3 Net Cash (Used for) Provided by Financing Activities (38.1 ) — 83.1 (323.4 ) (278.4 ) Effect of exchange rate changes on cash — — (22.0 ) — (22.0 ) Net increase (decrease) in cash and cash equivalents 5.5 — (47.3 ) — (41.8 ) Cash and cash equivalents at beginning of period 6.8 — 146.7 — 153.5 Cash and Cash Equivalents at End of Period $ 12.3 $ — $ 99.4 $ — $ 111.7 |
Recently Issued Accounting St21
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Jan. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842). ASU 2016-02 will be effective for us on May 1, 2019, and will require a modified retrospective approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented and exclude any leases that expired before the date of initial application. We are currently evaluating the impact the application of 2016-02 will have on our financial statements and disclosures. In November 2015, the FASB issued ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . ASU 2015-17 requires all deferred tax liabilities and assets to be classified as noncurrent on the balance sheet in order to simplify the presentation of deferred income taxes. Although ASU 2015-17 is not effective for us until May 1, 2017, we will elect early adoption, as permitted, and will classify all deferred tax liabilities and assets as noncurrent on the balance sheet as of April 30, 2016, in accordance with ASU 2015-17. In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805) Simplifying the Accounting for Measurement-Period Adjustments. ASU 2015-16 requires that adjustments identified during the measurement period be made to provisional amounts recognized in a business combination in the reporting period in which the acquirer determines the adjustments, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. ASU 2015-16 is effective for us on May 1, 2016, but we have elected early adoption, as permitted. Based on early adoption of this ASU, effective with the reporting period beginning August 1, 2015, we will no longer revise prior period results for adjustments to provisional amounts. For additional information, see Note 3: Acquisitions. In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820) Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) . ASU 2015-07 requires that investments measured using the net asset value (“NAV”) per share, or its equivalent practical expedient, be disclosed as a reconciling item between the balance sheet amounts and the amounts reported in the fair value hierarchy. Although ASU 2015-07 is not effective for us until May 1, 2016, we will elect early adoption, as permitted, and will present impacted investments as of April 30, 2016, in accordance with ASU 2015-07. We will change our presentation of Level 3 assets valued using NAV in the pensions and other postretirement benefits disclosure as required. ASU 2015-07 will be applied retrospectively to all periods presented. In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs . ASU 2015-03 requires debt issuance costs to be presented in the balance sheet as a direct deduction from the carrying amount of the related debt. ASU 2015-03 is effective for us on May 1, 2016, but we have elected early adoption, as permitted. As of April 30, 2015 , we reclassified debt issuance costs associated with our long-term debt from other noncurrent assets to long-term debt to conform to ASU 2015-03. For additional information, see Note 7: Debt and Financing Arrangements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU 2014-09 requires either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. Under the original issuance, the standard would have been effective for us on May 1, 2017. However, in August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date which extends the standard effective date by one year . As a result of this issuance, the standard will be effective for us on May 1, 2018, with the option to early adopt at the original effective date. Although we are still evaluating the standard, we do not expect this guidance to have a material impact on our results of operations or financial position. |
Acquisitions (Tables)
Acquisitions (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Business Combinations [Abstract] | |
Components of business acquisition purchase price | The following table summarizes the purchase price of the Big Heart acquisition. Shares issued $ 2,035.5 Assumed debt from Big Heart 2,630.2 Cash consideration, net of cash acquired 1,232.1 Total purchase price $ 5,897.8 |
Estimated fair values of the assets acquired and liabilities assumed | The following table summarizes the preliminary fair values at January 31, 2016 , of the assets acquired and liabilities assumed at the acquisition date. Assets acquired: Trade receivables $ 142.0 Inventories 254.5 Other current assets 196.8 Property, plant, and equipment 324.0 Other intangible assets - net 4,009.8 Goodwill 2,874.1 Other noncurrent assets 28.3 Total assets acquired $ 7,829.5 Liabilities assumed: Current liabilities $ 385.6 Deferred income taxes 1,464.0 Other noncurrent liabilities 82.1 Total liabilities assumed $ 1,931.7 Net assets acquired $ 5,897.8 |
The purchase price allocated to the identifiable intangible assets | The purchase price was preliminarily allocated to the identifiable intangible assets acquired as follows: Intangible assets with finite lives: Customer relationships (25-year useful life) $ 2,289.8 Trademarks (15-year useful life) 257.0 Intangible assets with indefinite lives: Trademarks 1,463.0 Total intangible assets $ 4,009.8 |
Business acquisition pro forma information | Big Heart’s results of operations are included in our consolidated financial statements from the date of the transaction. Had the transaction occurred at the beginning of the full comparable prior year period, the unaudited pro forma consolidated results would have been as follows: Three Months Ended Nine Months Ended Net sales $ 2,029.9 $ 5,930.7 Net income 194.1 490.5 Net income per common share - assuming dilution 1.62 4.10 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Segment Reporting [Abstract] | |
Income and assets by segment | Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net sales: U.S. Retail Coffee $ 575.5 $ 571.8 $ 1,726.6 $ 1,607.5 U.S. Retail Consumer Foods 569.8 600.8 1,796.0 1,847.6 U.S. Retail Pet Foods 570.9 — 1,687.5 — International and Foodservice 257.7 267.4 793.5 790.5 Total net sales $ 1,973.9 $ 1,440.0 $ 6,003.6 $ 4,245.6 Segment profit: U.S. Retail Coffee $ 175.9 $ 150.5 $ 492.7 $ 439.3 U.S. Retail Consumer Foods 128.0 120.7 370.9 364.4 U.S. Retail Pet Foods 97.2 — 275.4 — International and Foodservice 43.3 41.7 123.8 109.8 Total segment profit $ 444.4 $ 312.9 $ 1,262.8 $ 913.5 Interest expense – net (43.6 ) (16.8 ) (130.6 ) (50.4 ) Unallocated derivative gains (losses) 6.7 13.4 2.7 (0.4 ) Cost of products sold – special project costs (3.1 ) (0.4 ) (9.2 ) (1.1 ) Other special project costs (41.4 ) (5.9 ) (94.9 ) (17.3 ) Corporate administrative expenses (88.3 ) (64.9 ) (262.2 ) (193.2 ) Other income (expense) – net 0.6 0.1 (0.9 ) 1.7 Income before income taxes $ 275.3 $ 238.4 $ 767.7 $ 652.8 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share, basic and diluted | The following table sets forth the computation of net income per common share and net income per common share – assuming dilution under the two-class method. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net income $ 185.3 $ 160.9 $ 497.7 $ 435.2 Less: Net income allocated to participating securities 0.8 1.0 2.2 2.9 Net income allocated to common stockholders $ 184.5 $ 159.9 $ 495.5 $ 432.3 Weighted-average common shares outstanding 119,167,720 101,190,896 119,138,552 101,114,223 Add: Dilutive effect of stock options 52,585 675 25,356 4,132 Weighted-average common shares outstanding – assuming dilution 119,220,305 101,191,571 119,163,908 101,118,355 Net income per common share $ 1.55 $ 1.58 $ 4.16 $ 4.28 Net income per common share – assuming dilution $ 1.55 $ 1.58 $ 4.16 $ 4.28 |
Debt and Financing Arrangemen25
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: January 31, 2016 April 30, 2015 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 497.7 $ 500.0 $ 496.9 2.50% Senior Notes due March 15, 2020 500.0 495.2 500.0 494.3 3.50% Senior Notes due October 15, 2021 750.0 791.0 750.0 796.0 3.00% Senior Notes due March 15, 2022 400.0 395.8 400.0 395.3 3.50% Senior Notes due March 15, 2025 1,000.0 992.5 1,000.0 991.9 4.25% Senior Notes due March 15, 2035 650.0 642.1 650.0 641.8 4.38% Senior Notes due March 15, 2045 600.0 584.2 600.0 583.8 Term Loan Credit Agreement due March 23, 2020 750.0 747.8 1,550.0 1,544.9 Total long-term debt $ 5,150.0 $ 5,146.3 $ 5,950.0 $ 5,944.9 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Pensions and Other Postretire26
Pensions and Other Postretirement Benefits (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Net periodic benefit cost | The components of our net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below. Three Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 4.4 $ 2.0 $ 0.6 $ 0.6 Interest cost 6.9 5.6 0.8 0.6 Expected return on plan assets (8.1 ) (6.2 ) — — Recognized net actuarial loss (gain) 2.8 2.5 (0.1 ) — Prior service cost (credit) 0.1 0.2 (0.4 ) (0.3 ) Curtailment gain (1.4 ) — — — Net periodic benefit cost $ 4.7 $ 4.1 $ 0.9 $ 0.9 Nine Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 13.5 $ 5.9 $ 1.7 $ 1.7 Interest cost 20.8 17.0 2.2 1.8 Expected return on plan assets (24.8 ) (18.7 ) — — Recognized net actuarial loss (gain) 8.2 7.5 (0.2 ) — Prior service cost (credit) 0.5 0.7 (0.9 ) (0.9 ) Curtailment gain (5.9 ) — (0.1 ) — Net periodic benefit cost $ 12.3 $ 12.4 $ 2.7 $ 2.6 |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Fair value of derivative instruments | The following tables set forth the gross fair value amounts of derivative instruments recognized in the Condensed Consolidated Balance Sheets January 31, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 11.4 $ 29.5 $ 1.0 $ 4.4 Foreign currency exchange contracts 9.5 0.1 0.6 — Total derivative instruments $ 20.9 $ 29.6 $ 1.6 $ 4.4 April 30, 2015 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 6.4 $ 23.9 $ 0.2 $ 3.8 Foreign currency exchange contracts 4.8 1.0 — — Total derivative instruments $ 11.2 $ 24.9 $ 0.2 $ 3.8 |
Schedule of derivative instruments, gains and losses recognized | The following table presents information on pre-tax commodity contract net gains recognized on derivatives designated as cash flow hedges prior to May 1, 2014, and pre-tax losses related to the termination of prior interest rate swaps. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Gains reclassified from accumulated other comprehensive loss to cost of products sold (effective portion) $ — $ 9.6 $ — $ 28.4 Losses reclassified from accumulated other comprehensive loss to interest expense (effective portion) (0.1 ) (0.1 ) (0.4 ) (0.4 ) Change in accumulated other comprehensive loss $ 0.1 $ (9.5 ) $ 0.4 $ (28.0 ) |
Net realized and unrealized gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as hedging instruments. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Losses on commodity contracts $ (23.3 ) $ (13.9 ) $ (50.2 ) $ (34.3 ) Gains on foreign currency exchange contracts 10.4 11.7 19.0 14.1 Total losses recognized in cost of products sold $ (12.9 ) $ (2.2 ) $ (31.2 ) $ (20.2 ) |
Schedule of unallocated derivative (losses) gains | The following table presents the activity in unallocated derivative gains and losses. Three Months Ended January 31, Nine Months Ended January 31, 2016 2015 2016 2015 Net losses on mark-to-market valuation of unallocated derivative positions $ (12.9 ) $ (2.2 ) $ (31.2 ) $ (20.2 ) Net losses on derivative positions reclassified to segment operating profit 19.6 15.6 33.9 19.8 Unallocated derivative gains (losses) $ 6.7 $ 13.4 $ 2.7 $ (0.4 ) |
Outstanding derivative contracts | The following table presents the gross contract notional value of outstanding derivative contracts. January 31, 2016 April 30, 2015 Commodity contracts $ 712.0 $ 640.6 Foreign currency exchange contracts 177.8 136.4 |
Other Financial Instruments a28
Other Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Carrying amount and fair value of financial instruments | The following table provides information on the carrying amounts and fair values of our financial instruments. January 31, 2016 April 30, 2015 Carrying Amount Fair Value Carrying Amount Fair Value Other investments $ 48.3 $ 48.3 $ 48.4 $ 48.4 Derivative financial instruments – net (11.5 ) (11.5 ) (17.3 ) (17.3 ) Long-term debt (5,146.3 ) (5,187.0 ) (5,944.9 ) (6,011.3 ) |
Financial assets (liabilities) measured at fair value on a recurring basis | The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at January 31, 2016 Other investments: (A) Equity mutual funds $ 9.6 $ — $ — $ 9.6 Municipal obligations — 37.7 — 37.7 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net (7.8 ) (13.7 ) — (21.5 ) Foreign currency exchange contracts – net 0.8 9.2 — 10.0 Long-term debt (C) (4,436.0 ) (751.0 ) — (5,187.0 ) Total financial instruments measured at fair value $ (4,432.4 ) $ (717.8 ) $ — $ (5,150.2 ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at April 30, 2015 Other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.9 — 37.9 Money market funds 0.8 — — 0.8 Derivative financial instruments: (B) Commodity contracts – net (12.4 ) (8.7 ) — (21.1 ) Foreign currency exchange contracts – net (0.2 ) 4.0 — 3.8 Long-term debt (C) (4,459.0 ) (1,552.3 ) — (6,011.3 ) Total financial instruments measured at fair value $ (4,461.1 ) $ (1,519.1 ) $ — $ (5,980.2 ) (A) Other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs which are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less . Based on the short-term nature of these money market funds, carrying value approximates fair value. As of January 31, 2016 , our municipal obligations are scheduled to mature as follows: $0.4 in 2016, $1.0 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $32.3 in 2020 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive loss, including the reclassification adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below. Foreign Currency Translation Adjustment Unrealized Loss on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain on Available- for-Sale Securities Accumulated Other Comprehensive Loss Balance at May 1, 2015 $ (2.3 ) $ (5.2 ) $ (105.6 ) $ 3.3 $ (109.8 ) Reclassification adjustments — 0.4 10.5 — 10.9 Current period (charge) credit (44.4 ) — 1.3 — (43.1 ) Income tax expense — (0.1 ) (4.7 ) — (4.8 ) Balance at January 31, 2016 $ (46.7 ) $ (4.9 ) $ (98.5 ) $ 3.3 $ (146.8 ) Foreign Currency Translation Adjustment Unrealized Gain (Loss) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain on Available- for-Sale Securities Accumulated Other Comprehensive Loss Balance at May 1, 2014 $ 31.7 $ 15.3 $ (102.0 ) $ 3.4 $ (51.6 ) Reclassification adjustments — (28.0 ) 10.6 — (17.4 ) Current period (charge) credit (49.6 ) — 1.7 1.4 (46.5 ) Income tax benefit (expense) — 10.4 (3.9 ) (0.5 ) 6.0 Balance at January 31, 2015 $ (17.9 ) $ (2.3 ) $ (93.6 ) $ 4.3 $ (109.5 ) (A) Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for both the three months ended January 31, 2016 and 2015 , and $0.4 of expense was reclassified for both the nine months ended January 31, 2016 and 2015 . Of the total gains and losses reclassified from accumulated other comprehensive loss, $9.6 and $28.4 of income was reclassified to cost of products sold related to commodity derivatives for the three and nine months ended January 31, 2015 , respectively. (B) Of the total amortization of net losses reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expense for the nine months ended January 31, 2016 and 2015 , $3.2 and $6.6 was reclassified for the three months ended January 31, 2016 and 2015 , respectively. |
Common Shares (Tables)
Common Shares (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. January 31, 2016 April 30, 2015 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 119,685,003 119,577,333 Treasury shares 26,812,727 26,920,397 |
Guarantor and Non-Guarantor F31
Guarantor and Non-Guarantor Financial Information (Tables) | 9 Months Ended |
Jan. 31, 2016 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 784.7 $ 289.6 $ 2,190.5 $ (1,290.9 ) $ 1,973.9 Cost of products sold 591.4 264.3 1,651.9 (1,297.5 ) 1,210.1 Gross Profit 193.3 25.3 538.6 6.6 763.8 Selling, distribution, and administrative expenses and other special project costs 72.9 9.6 340.0 — 422.5 Amortization 0.3 — 51.9 — 52.2 Other operating income – net (24.6 ) — (4.6 ) — (29.2 ) Operating Income 144.7 15.7 151.3 6.6 318.3 Interest (expense) income – net (43.8 ) 0.3 (0.1 ) — (43.6 ) Other (expense) income – net (1.7 ) 0.1 2.2 — 0.6 Equity in net earnings of subsidiaries 119.2 36.5 15.8 (171.5 ) — Income Before Income Taxes 218.4 52.6 169.2 (164.9 ) 275.3 Income taxes 33.1 0.1 56.8 — 90.0 Net Income 185.3 52.5 112.4 (164.9 ) 185.3 Other comprehensive (loss) income, net of tax (18.0 ) 0.2 (19.8 ) 19.6 (18.0 ) Comprehensive Income $ 167.3 $ 52.7 $ 92.6 $ (145.3 ) $ 167.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 773.4 $ 281.9 $ 1,680.2 $ (1,295.5 ) $ 1,440.0 Cost of products sold 604.8 256.2 1,355.7 (1,299.6 ) 917.1 Gross Profit 168.6 25.7 324.5 4.1 522.9 Selling, distribution, and administrative expenses and other special project costs 53.2 12.8 177.2 — 243.2 Amortization 1.1 — 24.0 0.1 25.2 Other operating expense (income) – net 0.5 (1.2 ) 0.1 — (0.6 ) Operating Income 113.8 14.1 123.2 4.0 255.1 Interest (expense) income – net (17.0 ) 0.3 (0.1 ) — (16.8 ) Other income (expense) – net 0.2 0.1 (0.2 ) — 0.1 Equity in net earnings of subsidiaries 95.9 29.4 14.3 (139.6 ) — Income Before Income Taxes 192.9 43.9 137.2 (135.6 ) 238.4 Income taxes 32.0 0.1 45.4 — 77.5 Net Income 160.9 43.8 91.8 (135.6 ) 160.9 Other comprehensive (loss) income, net of tax (35.3 ) (5.0 ) (36.9 ) 41.9 (35.3 ) Comprehensive Income $ 125.6 $ 38.8 $ 54.9 $ (93.7 ) $ 125.6 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,372.7 $ 929.5 $ 6,740.6 $ (4,039.2 ) $ 6,003.6 Cost of products sold 1,831.1 850.8 5,088.8 (4,046.9 ) 3,723.8 Gross Profit 541.6 78.7 1,651.8 7.7 2,279.8 Selling, distribution, and administrative expenses and other special project costs 197.8 30.4 1,025.2 — 1,253.4 Amortization 2.4 — 155.8 — 158.2 Other operating (income) expense – net (24.7 ) 0.4 (6.7 ) — (31.0 ) Operating Income 366.1 47.9 477.5 7.7 899.2 Interest (expense) income – net (131.2 ) 0.9 (0.3 ) — (130.6 ) Other income (expense) – net 1.8 0.2 (2.9 ) — (0.9 ) Equity in net earnings of subsidiaries 342.4 101.7 48.1 (492.2 ) — Income Before Income Taxes 579.1 150.7 522.4 (484.5 ) 767.7 Income taxes 81.4 0.3 188.3 — 270.0 Net Income 497.7 150.4 334.1 (484.5 ) 497.7 Other comprehensive (loss) income, net of tax (37.0 ) 0.7 (43.0 ) 42.3 (37.0 ) Comprehensive Income $ 460.7 $ 151.1 $ 291.1 $ (442.2 ) $ 460.7 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Nine Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 2,285.1 $ 918.7 $ 4,983.6 $ (3,941.8 ) $ 4,245.6 Cost of products sold 1,837.6 832.8 3,981.5 (3,944.4 ) 2,707.5 Gross Profit 447.5 85.9 1,002.1 2.6 1,538.1 Selling, distribution, and administrative expenses and other special project costs 156.5 39.0 564.9 — 760.4 Amortization 3.2 — 72.0 0.1 75.3 Other operating expense – net 0.2 0.7 — — 0.9 Operating Income 287.6 46.2 365.2 2.5 701.5 Interest (expense) income – net (51.0 ) 0.9 (0.3 ) — (50.4 ) Other income (expense) – net 1.7 0.1 (0.1 ) — 1.7 Equity in net earnings of subsidiaries 277.7 103.8 46.4 (427.9 ) — Income Before Income Taxes 516.0 151.0 411.2 (425.4 ) 652.8 Income taxes 80.8 0.3 136.5 — 217.6 Net Income 435.2 150.7 274.7 (425.4 ) 435.2 Other comprehensive (loss) income, net of tax (57.9 ) (15.8 ) (62.7 ) 78.5 (57.9 ) Comprehensive Income $ 377.3 $ 134.9 $ 212.0 $ (346.9 ) $ 377.3 |
CONDENSED CONSOLIDATING BALANCE SHEETS | CONDENSED CONSOLIDATING BALANCE SHEETS January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 3.9 $ — $ 136.6 $ — $ 140.5 Inventories — 144.7 789.6 7.7 942.0 Other current assets 443.9 11.8 268.4 (8.2 ) 715.9 Total Current Assets 447.8 156.5 1,194.6 (0.5 ) 1,798.4 Property, Plant, and Equipment – Net 297.5 576.2 750.2 — 1,623.9 Investments in Subsidiaries 14,894.7 4,281.5 321.3 (19,497.5 ) — Intercompany Receivable — 390.9 877.9 (1,268.8 ) — Other Noncurrent Assets Goodwill 1,033.0 — 4,911.9 — 5,944.9 Other intangible assets – net 430.3 — 6,284.7 — 6,715.0 Other noncurrent assets 57.5 10.1 131.7 — 199.3 Total Other Noncurrent Assets 1,520.8 10.1 11,328.3 — 12,859.2 Total Assets $ 17,160.8 $ 5,415.2 $ 14,472.3 $ (20,766.8 ) $ 16,281.5 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 493.6 $ 74.7 $ 445.9 $ (8.2 ) $ 1,006.0 Noncurrent Liabilities Long-term debt 5,146.3 — — — 5,146.3 Deferred income taxes 101.4 — 2,360.4 — 2,461.8 Intercompany payable 3,838.0 — — (3,838.0 ) — Other noncurrent liabilities 256.0 15.3 70.6 — 341.9 Total Noncurrent Liabilities 9,341.7 15.3 2,431.0 (3,838.0 ) 7,950.0 Total Liabilities 9,835.3 90.0 2,876.9 (3,846.2 ) 8,956.0 Total Shareholders’ Equity 7,325.5 5,325.2 11,595.4 (16,920.6 ) 7,325.5 Total Liabilities and Shareholders’ Equity $ 17,160.8 $ 5,415.2 $ 14,472.3 $ (20,766.8 ) $ 16,281.5 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.1 $ — $ 118.5 $ — $ 125.6 Inventories — 180.3 979.6 3.7 1,163.6 Other current assets 427.4 4.8 351.4 (12.6 ) 771.0 Total Current Assets 434.5 185.1 1,449.5 (8.9 ) 2,060.2 Property, Plant, and Equipment – Net 258.0 591.3 829.0 — 1,678.3 Investments in Subsidiaries 14,610.4 4,179.7 272.4 (19,062.5 ) — Intercompany Receivable — 305.2 133.1 (438.3 ) — Other Noncurrent Assets Goodwill 1,082.0 — 4,929.6 — 6,011.6 Other intangible assets – net 501.1 — 6,449.2 — 6,950.3 Other noncurrent assets 55.6 10.5 116.1 — 182.2 Total Other Noncurrent Assets 1,638.7 10.5 11,494.9 — 13,144.1 Total Assets $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7 ) $ 16,882.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 484.0 $ 82.6 $ 468.6 $ (12.6 ) $ 1,022.6 Noncurrent Liabilities Long-term debt 5,944.9 — — — 5,944.9 Deferred income taxes 106.9 — 2,366.4 — 2,473.3 Intercompany payable 3,080.2 — — (3,080.2 ) — Other noncurrent liabilities 238.7 15.2 101.0 — 354.9 Total Noncurrent Liabilities 9,370.7 15.2 2,467.4 (3,080.2 ) 8,773.1 Total Liabilities 9,854.7 97.8 2,936.0 (3,092.8 ) 9,795.7 Total Shareholders’ Equity 7,086.9 5,174.0 11,242.9 (16,416.9 ) 7,086.9 Total Liabilities and Shareholders’ Equity $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7 ) $ 16,882.6 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 245.8 $ 119.2 $ 757.8 $ — $ 1,122.8 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Equity investment in affiliate — — (16.0 ) — (16.0 ) Additions to property, plant, and equipment (70.8 ) (32.7 ) (57.3 ) — (160.8 ) Proceeds from divestiture 193.7 — — — 193.7 Proceeds from disposal of property, plant, and equipment — 0.1 0.1 — 0.2 (Disbursements of) repayments from intercompany loans — (85.6 ) (672.2 ) 757.8 — Other – net — (1.0 ) 6.7 — 5.7 Net Cash Provided by (Used for) Investing Activities 122.9 (119.2 ) (730.8 ) 757.8 30.7 Financing Activities Short-term repayments - net (88.0 ) — — — (88.0 ) Repayments of long-term debt (800.0 ) — — — (800.0 ) Quarterly dividends paid (236.5 ) — — — (236.5 ) Purchase of treasury shares (7.8 ) — — — (7.8 ) Intercompany payable 757.8 — — (757.8 ) — Other – net 2.6 — — — 2.6 Net Cash Used for Financing Activities (371.9 ) — — (757.8 ) (1,129.7 ) Effect of exchange rate changes on cash — — (8.9 ) — (8.9 ) Net (decrease) increase in cash and cash equivalents (3.2 ) — 18.1 — 14.9 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 3.9 $ — $ 136.6 $ — $ 140.5 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Nine Months Ended January 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 162.7 $ 70.4 $ 278.5 $ — $ 511.6 Investing Activities Businesses acquired, net of cash acquired — — (80.5 ) — (80.5 ) Additions to property, plant, and equipment (36.0 ) (68.9 ) (57.2 ) — (162.1 ) Equity investments in subsidiaries (83.1 ) — — 83.1 — Proceeds from disposal of property, plant, and equipment — 1.1 0.5 — 1.6 Repayments from (Disbursements of) intercompany loans — 4.2 (244.5 ) 240.3 — Other – net — (6.8 ) (5.2 ) — (12.0 ) Net Cash (Used for) Provided by Investing Activities (119.1 ) (70.4 ) (386.9 ) 323.4 (253.0 ) Financing Activities Short-term borrowings - net 15.6 — — — 15.6 Repayments of long-term debt (100.0 ) — — — (100.0 ) Quarterly dividends paid (189.0 ) — — — (189.0 ) Purchase of treasury shares (15.3 ) — — — (15.3 ) Investments in subsidiaries — — 83.1 (83.1 ) — Intercompany payable 240.3 — — (240.3 ) — Other – net 10.3 — — — 10.3 Net Cash (Used for) Provided by Financing Activities (38.1 ) — 83.1 (323.4 ) (278.4 ) Effect of exchange rate changes on cash — — (22.0 ) — (22.0 ) Net increase (decrease) in cash and cash equivalents 5.5 — (47.3 ) — (41.8 ) Cash and cash equivalents at beginning of period 6.8 — 146.7 — 153.5 Cash and Cash Equivalents at End of Period $ 12.3 $ — $ 99.4 $ — $ 111.7 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | Mar. 23, 2015 | Jan. 31, 2016 | Jan. 31, 2015 |
Business Acquisition [Line Items] | |||
Cash consideration, net of cash acquired | $ (7.9) | $ 80.5 | |
Big Heart [Member] | |||
Business Acquisition [Line Items] | |||
Shares issued | $ 2,035.5 | ||
Assumed debt from Big Heart | 2,630.2 | ||
Cash consideration, net of cash acquired | 1,232.1 | ||
Total purchase price | $ 5,897.8 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 | Mar. 23, 2015 |
Assets acquired: | |||
Goodwill | $ 5,944.9 | $ 6,011.6 | |
Big Heart [Member] | |||
Assets acquired: | |||
Trade receivables | $ 142 | ||
Inventories | 254.5 | ||
Other current assets | 196.8 | ||
Property, plant, and equipment | 324 | ||
Other intangible assets - net | 4,009.8 | ||
Goodwill | 2,874.1 | ||
Other noncurrent assets | 28.3 | ||
Total assets acquired | 7,829.5 | ||
Liabilities assumed: | |||
Current liabilities | 385.6 | ||
Deferred income taxes | 1,464 | ||
Other noncurrent liabilities | 82.1 | ||
Total liabilities assumed | 1,931.7 | ||
Net assets acquired | $ 5,897.8 |
Acquisitions (Details 2)
Acquisitions (Details 2) - Big Heart [Member] - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2016 | Mar. 23, 2015 | |
The purchase price allocated to the identifiable intangible assets | ||
Other intangible assets - net | $ 4,009.8 | |
Customer Relationships [Member] | ||
The purchase price allocated to the identifiable intangible assets | ||
Intangible assets with finite lives | 2,289.8 | |
Useful life | 25 years | |
Trademarks [Member] | ||
The purchase price allocated to the identifiable intangible assets | ||
Intangible assets with finite lives | 257 | |
Intangible assets with indefinite lives | $ 1,463 | |
Useful life | 15 years |
Acquisitions (Details 3)
Acquisitions (Details 3) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Business acquisition pro-forma information | ||||
Net sales | $ 1,973.9 | $ 1,440 | $ 6,003.6 | $ 4,245.6 |
Net income | $ 185.3 | $ 160.9 | $ 497.7 | $ 435.2 |
Net income per common share - assuming dilution (in dollars per share) | $ 1.55 | $ 1.58 | $ 4.16 | $ 4.28 |
Big Heart [Member] | ||||
Business acquisition pro-forma information | ||||
Net sales | $ 580.3 | $ 2,029.9 | $ 1,700 | $ 5,930.7 |
Net income | $ 194.1 | $ 490.5 | ||
Net income per common share - assuming dilution (in dollars per share) | $ 1.62 | $ 4.10 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Millions | Mar. 23, 2015 | Sep. 02, 2014 | Jan. 31, 2016 | Oct. 31, 2015 | Jul. 31, 2015 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Apr. 30, 2015 | Apr. 30, 2018 | |
Acquisitions (Textual) [Abstract] | ||||||||||||
Common shares outstanding | 120,000,000 | 119,685,003 | 119,685,003 | 119,685,003 | 119,577,333 | |||||||
Cash payments for acquisitions | $ (7.9) | $ 80.5 | ||||||||||
Long-term debt | [1] | $ 5,146.3 | 5,146.3 | $ 5,146.3 | $ 5,944.9 | |||||||
Net sales | 1,973.9 | $ 1,440 | 6,003.6 | 4,245.6 | ||||||||
Operating income (loss) | 318.3 | 255.1 | 899.2 | 701.5 | ||||||||
Us Retail Consumer Foods Market [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Net sales | 569.8 | 600.8 | 1,796 | 1,847.6 | ||||||||
U. S. Retail Pet Foods Market [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Net sales | 570.9 | 0 | 1,687.5 | 0 | ||||||||
Big Heart [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Business acquisition consideration given | $ 5,897.8 | |||||||||||
Shares issued to shareholders of acquiree | 17,900,000 | |||||||||||
Value of shares issued to shareholders of acquiree | $ 2,035.5 | |||||||||||
Business acquisition debt assumed | 2,630.2 | |||||||||||
Cash payments for acquisitions | 1,232.1 | |||||||||||
Long-term debt | 5,500 | |||||||||||
Net sales | 580.3 | $ 2,029.9 | 1,700 | $ 5,930.7 | ||||||||
Operating income (loss) | 72.4 | 203.4 | ||||||||||
Business acquisition transaction costs | 225 | 225 | 225 | |||||||||
Costs directly related to merger and integration | 44.4 | 102.9 | ||||||||||
Business combination integration related costs incurred to date | 138.9 | |||||||||||
Goodwill purchase accounting adjustment | $ 1.1 | $ 1.8 | ||||||||||
Total intangible assets, excluding goodwill, from acquisitions | $ 4,009.8 | |||||||||||
Big Heart [Member] | U. S. Retail Pet Foods Market [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Goodwill, acquired during period | $ 2,900 | |||||||||||
Goodwill deductible for tax purposes | $ 77.8 | $ 77.8 | $ 77.8 | |||||||||
Sahale [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Cash payments for acquisitions | $ 80.5 | |||||||||||
Total intangible assets, excluding goodwill, from acquisitions | 30.4 | |||||||||||
Sahale [Member] | Us Retail Consumer Foods Market [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Goodwill, acquired during period | $ 46.9 | |||||||||||
Forecast [Member] | Big Heart [Member] | ||||||||||||
Acquisitions (Textual) [Abstract] | ||||||||||||
Expected synergy savings | $ 200 | |||||||||||
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Divestiture (Details)
Divestiture (Details) - Eagle, Magnolia And Other Branded And Other Private Label Trade Names [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2016 | Apr. 30, 2015 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, net annual sales | $ 200 | |||
Disposal group, net proceeds received | $ 193.7 | |||
Other Operating Income (Expense) [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal group, pre-tax gain recognized | $ 25.3 | $ 25.3 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | ||
Net sales: | |||||
Net sales | $ 1,973.9 | $ 1,440 | $ 6,003.6 | $ 4,245.6 | |
Segment profit: | |||||
Segment profit | 444.4 | 312.9 | 1,262.8 | 913.5 | |
Interest expense – net | (43.6) | (16.8) | (130.6) | (50.4) | |
Unallocated derivative gains (losses) | 6.7 | 13.4 | 2.7 | (0.4) | |
Cost of products sold – special project costs | (3.1) | (0.4) | (9.2) | (1.1) | |
Other special project costs | [1] | (41.4) | (5.9) | (94.9) | (17.3) |
Corporate administrative expenses | (88.3) | (64.9) | (262.2) | (193.2) | |
Other income (expense) – net | 0.6 | 0.1 | (0.9) | 1.7 | |
Income Before Income Taxes | 275.3 | 238.4 | 767.7 | 652.8 | |
U.S. Retail Coffee [Member] | |||||
Net sales: | |||||
Net sales | 575.5 | 571.8 | 1,726.6 | 1,607.5 | |
Segment profit: | |||||
Segment profit | 175.9 | 150.5 | 492.7 | 439.3 | |
U.S. Retail Consumer Foods [Member] | |||||
Net sales: | |||||
Net sales | 569.8 | 600.8 | 1,796 | 1,847.6 | |
Segment profit: | |||||
Segment profit | 128 | 120.7 | 370.9 | 364.4 | |
U.S. Retail Pet Foods [Member] | |||||
Net sales: | |||||
Net sales | 570.9 | 0 | 1,687.5 | 0 | |
Segment profit: | |||||
Segment profit | 97.2 | 0 | 275.4 | 0 | |
International and Foodservice [Member] | |||||
Net sales: | |||||
Net sales | 257.7 | 267.4 | 793.5 | 790.5 | |
Segment profit: | |||||
Segment profit | $ 43.3 | $ 41.7 | $ 123.8 | $ 109.8 | |
[1] | Other special project costs includes restructuring and merger and integration costs. For more information on businesses acquired, see Note 3: Acquisitions. |
Reportable Segments (Details Te
Reportable Segments (Details Textual) | 9 Months Ended |
Jan. 31, 2016IndustrySegment | |
Segment Reporting [Abstract] | |
Number of industries in which Company operates | Industry | 1 |
Number of reportable segments | Segment | 3 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 185.3 | $ 160.9 | $ 497.7 | $ 435.2 |
Less: Net income allocated to participating securities | 0.8 | 1 | 2.2 | 2.9 |
Net income allocated to common stockholders | $ 184.5 | $ 159.9 | $ 495.5 | $ 432.3 |
Weighted-average common shares outstanding (in shares) | 119,167,720 | 101,190,896 | 119,138,552 | 101,114,223 |
Add: Dilutive effect of stock options (in shares) | 52,585 | 675 | 25,356 | 4,132 |
Weighted-average common shares outstanding - assuming dilution (in shares) | 119,220,305 | 101,191,571 | 119,163,908 | 101,118,355 |
Net income per common share (in dollars per share) | $ 1.55 | $ 1.58 | $ 4.16 | $ 4.28 |
Net Income - Assuming Dilution (in dollars per share) | $ 1.55 | $ 1.58 | $ 4.16 | $ 4.28 |
Debt and Financing Arrangemen41
Debt and Financing Arrangements (Details) - USD ($) | Jan. 31, 2016 | Apr. 30, 2015 | Mar. 31, 2015 | |
Long-term debt | ||||
Debt instrument face amount | $ 5,150,000,000 | $ 5,950,000,000 | ||
Long-term debt | [1] | $ 5,146,300,000 | $ 5,944,900,000 | |
1.75% Senior Notes due March 15, 2018 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 1.75% | 1.75% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 497,700,000 | $ 496,900,000 | |
2.50% Senior Notes due March 15, 2020 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 2.50% | 2.50% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 495,200,000 | $ 494,300,000 | |
3.50% Senior Notes due October 15, 2021 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 3.50% | 3.50% | ||
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 791,000,000 | $ 796,000,000 | |
3.00% Senior Notes due March 15, 2022 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 3.00% | 3.00% | ||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 395,800,000 | $ 395,300,000 | |
3.50% Senior Notes due March 15, 2025 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 3.50% | 3.50% | ||
Debt instrument face amount | $ 1,000,000,000 | $ 1,000,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 992,500,000 | $ 991,900,000 | |
4.25% Senior Notes due March 15, 2035 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 4.25% | 4.25% | ||
Debt instrument face amount | $ 650,000,000 | $ 650,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 642,100,000 | $ 641,800,000 | |
4.38% Senior Notes due March 15, 2045 [Member] | ||||
Long-term debt | ||||
Interest rate on notes | 4.38% | 4.38% | ||
Debt instrument face amount | $ 600,000,000 | $ 600,000,000 | ||
Notes Payable, Noncurrent | [1] | 584,200,000 | 583,800,000 | |
Term Loan Credit Agreement due March 23, 2020 [Member] | ||||
Long-term debt | ||||
Debt instrument face amount | 750,000,000 | 1,550,000,000 | $ 1,800,000,000 | |
Term loan credit agreement carrying value | [1] | $ 747,800,000 | $ 1,544,900,000 | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Debt and Financing Arrangemen42
Debt and Financing Arrangements (Details Textual) | 3 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | |||
Jan. 31, 2016USD ($)Bank | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($)Bank | Jan. 31, 2015USD ($) | Jan. 31, 2016USD ($)Bank | Apr. 30, 2015USD ($) | Mar. 31, 2015USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 5,150,000,000 | $ 5,150,000,000 | $ 5,150,000,000 | $ 5,950,000,000 | |||
Repayments of long-term debt | $ 800,000,000 | $ 100,000,000 | |||||
Number of banks | Bank | 11 | 11 | 11 | ||||
Revolving credit facility maximum borrowing capacity | $ 1,500,000,000 | $ 1,500,000,000 | $ 1,500,000,000 | ||||
Percentage of the principal amount thereof which company can prepay | 100.00% | 100.00% | 100.00% | ||||
Interest paid | $ 4,200,000 | $ 18,000,000 | $ 89,800,000 | $ 54,900,000 | |||
Commercial paper, borrowing capacity | 1,000,000,000 | 1,000,000,000 | $ 1,000,000,000 | ||||
Short-term borrowings | 138,000,000 | 138,000,000 | 138,000,000 | 226,000,000 | |||
Senior Notes [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 3,700,000,000 | ||||||
3.50% Senior Notes due October 15, 2021 [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | 750,000,000 | 750,000,000 | 750,000,000 | 750,000,000 | |||
Term Loan Credit Agreement due March 23, 2020 [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | 1,550,000,000 | $ 1,800,000,000 | ||
Weighted average interest rate on long-term debt | 1.68% | 1.68% | 1.68% | ||||
Repayments of long-term debt | $ 350,000,000 | $ 800,000,000 | $ 1,000,000,000 | ||||
Percent of original principal to be paid quarterly | 2.50% | ||||||
Long-term Debt [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Increase to long term-debt related to termination of interest rate swap | $ 45,700,000 | ||||||
Commercial Paper [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Commercial paper weighted-average interest rate | 0.65% | 0.65% | 0.65% | ||||
Cash Flow Hedging [Member] | |||||||
Outstanding derivative contracts | |||||||
Gain (loss) on early termination agreement | (4,000,000) | ||||||
Fair Value Hedging [Member] | |||||||
Outstanding derivative contracts | |||||||
Gain (loss) on early termination agreement | 58,100,000 | ||||||
Deferred gain on sale | $ 53,500,000 |
Pensions and Other Postretire43
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Defined Benefit Pension Plans [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 4.4 | $ 2 | $ 13.5 | $ 5.9 |
Interest cost | 6.9 | 5.6 | 20.8 | 17 |
Expected return on plan assets | (8.1) | (6.2) | (24.8) | (18.7) |
Recognized net actuarial loss (gain) | 2.8 | 2.5 | 8.2 | 7.5 |
Prior service cost (credit) | 0.1 | 0.2 | 0.5 | 0.7 |
Curtailment gain | (1.4) | 0 | (5.9) | 0 |
Net periodic benefit cost | 4.7 | 4.1 | 12.3 | 12.4 |
Other Postretirement Benefits [Member] | ||||
Components of net periodic benefit cost | ||||
Service cost | 0.6 | 0.6 | 1.7 | 1.7 |
Interest cost | 0.8 | 0.6 | 2.2 | 1.8 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Recognized net actuarial loss (gain) | (0.1) | 0 | (0.2) | 0 |
Prior service cost (credit) | (0.4) | (0.3) | (0.9) | (0.9) |
Curtailment gain | 0 | 0 | (0.1) | 0 |
Net periodic benefit cost | $ 0.9 | $ 0.9 | $ 2.7 | $ 2.6 |
Derivative Financial Instrume44
Derivative Financial Instruments (Details) - Not designated as hedging instruments [Member] - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 20.9 | $ 11.2 |
Other Current Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 11.4 | 6.4 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 9.5 | 4.8 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 29.6 | 24.9 |
Other Current Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 29.5 | 23.9 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.1 | 1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.6 | 0.2 |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1 | 0.2 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.6 | 0 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 4.4 | 3.8 |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 4.4 | 3.8 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume45
Derivative Financial Instruments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Cash flow hedging derivative instruments gain loss | ||||
Change in accumulated other comprehensive loss | $ 0.1 | $ (9.5) | $ 0.4 | $ (28) |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Cost of Products Sold [Member] | ||||
Cash flow hedging derivative instruments gain loss | ||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | 0 | 9.6 | 0 | 28.4 |
Cash Flow Hedging [Member] | Interest rate contract [Member] | Interest Expense [Member] | ||||
Cash flow hedging derivative instruments gain loss | ||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | $ (0.1) | $ (0.1) | $ (0.4) | $ (0.4) |
Derivative Financial Instrume46
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total (losses) gains recognized in cost of products sold | $ (12.9) | $ (2.2) | $ (31.2) | $ (20.2) |
Commodity contracts [Member] | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total (losses) gains recognized in cost of products sold | (23.3) | (13.9) | (50.2) | (34.3) |
Foreign currency exchange contracts [Member] | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total (losses) gains recognized in cost of products sold | $ 10.4 | $ 11.7 | $ 19 | $ 14.1 |
Derivative Financial Instrume47
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
Price Risk Derivatives [Abstract] | ||||
Net losses on mark-to-market valuation of unallocated derivative positions | $ (12.9) | $ (2.2) | $ (31.2) | $ (20.2) |
Net losses on derivative positions reclassified to segment operating profit | 19.6 | 15.6 | 33.9 | 19.8 |
Unallocated derivative gains (losses) | $ 6.7 | $ 13.4 | $ 2.7 | $ (0.4) |
Derivative Financial Instrume48
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 |
Commodity contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 712 | $ 640.6 |
Foreign currency exchange contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 177.8 | $ 136.4 |
Derivative Financial Instrume49
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jan. 31, 2016 | Apr. 30, 2015 | |
Derivative Financial Instruments (Additional Textual) [Abstract] | ||
Cash margin accounts related to derivative instruments recognized | $ 32.4 | $ 38.2 |
Cumulative realized net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | (4.7) | |
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | (17.8) | |
Amortization of loss on contract termination to be recognized in interest expense in years 2026 through 2045 | $ 0.2 | |
Cash Flow Hedging [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Gain (loss) on early termination agreement | (4) | |
Fair Value Hedging [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Gain (loss) on early termination agreement | $ 58.1 | |
Minimum [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 10 years | |
Mid Range [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 20 years | |
Maximum [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 30 years | |
3.50% Senior Notes due October 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on notes | 3.50% | 3.50% |
Foreign currency exchange contracts [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Derivative instrument maturity | 1 year | |
Gross contract notional amount | $ 177.8 | $ 136.4 |
Interest rate contract [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (7.7) | (8.2) |
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 2.8 | 2.9 |
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | $ 0.6 | |
Interest receivable | 4.6 | |
Gross contract notional amount | 1,100 | |
Commodity contracts [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Derivative instrument maturity | 1 year | |
Gross contract notional amount | $ 712 | 640.6 |
2015 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | $ 2.2 | |
2016 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 1.8 | |
2017 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 7.6 | |
2018 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 7.8 | |
2019 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8 | |
2020 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8.1 | |
2021 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8.4 | |
2022 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 4 | |
Through 2016 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | $ 5.6 |
Other Financial Instruments a50
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 |
Carrying Amount [Member] | ||
Carrying amount and fair value of financial instruments | ||
Other investments | $ 48.3 | $ 48.4 |
Derivative financial instruments – net | (11.5) | (17.3) |
Long-term debt | (5,146.3) | (5,944.9) |
Fair Value [Member] | ||
Carrying amount and fair value of financial instruments | ||
Other investments | 48.3 | 48.4 |
Derivative financial instruments – net | (11.5) | (17.3) |
Long-term debt | $ (5,187) | $ (6,011.3) |
Other Financial Instruments a51
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (5,187) | $ (6,011.3) |
Total financial instruments measured at fair value | (5,150.2) | (5,980.2) | |
Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.6 | 9.7 |
Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.7 | 37.9 |
Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 1 | 0.8 |
Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (21.5) | (21.1) |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 10 | 3.8 |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (4,436) | (4,459) |
Total financial instruments measured at fair value | (4,432.4) | (4,461.1) | |
Fair Value, Inputs, Level 1 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.6 | 9.7 |
Fair Value, Inputs, Level 1 [Member] | Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 1 | 0.8 |
Fair Value, Inputs, Level 1 [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (7.8) | (12.4) |
Fair Value, Inputs, Level 1 [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0.8 | (0.2) |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (751) | (1,552.3) |
Total financial instruments measured at fair value | (717.8) | (1,519.1) | |
Fair Value, Inputs, Level 2 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.7 | 37.9 |
Fair Value, Inputs, Level 2 [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (13.7) | (8.7) |
Fair Value, Inputs, Level 2 [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 9.2 | 4 |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | 0 | 0 |
Total financial instruments measured at fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | $ 0 | $ 0 |
[1] | Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. | ||
[2] | Other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs which are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of January 31, 2016, our municipal obligations are scheduled to mature as follows: $0.4 in 2016, $1.0 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $32.3 in 2020 and beyond. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. |
Other Financial Instruments a52
Other Financial Instruments and Fair Value Measurements (Details Textual) $ in Millions | 9 Months Ended |
Jan. 31, 2016USD ($) | |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2016 | $ 0.4 |
Company's Municipal bond mature in 2017 | 1 |
Company's Municipal bond mature in 2018 | 1.1 |
Company's Municipal bond mature in 2019 | 2.9 |
Company's Municipal bond mature in 2020 and beyond | $ 32.3 |
Money market funds maturity period | three months or less |
Income Taxes (Details)
Income Taxes (Details) $ in Millions | 9 Months Ended |
Jan. 31, 2016USD ($) | |
Income Taxes (Textual) [Abstract] | |
Time period over which it is reasonably possible that the Company could increase or decrease its unrecognized tax benefits | 12 months |
Amount unrecognized tax benefit could decrease in next 12 months | $ 2.2 |
Accumulated Other Comprehensi54
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (109.8) | $ (51.6) | |||||
Reclassification adjustments | 10.9 | (17.4) | |||||
Current period (charge) credit | (43.1) | (46.5) | |||||
Income tax benefit (expense) | (4.8) | 6 | |||||
Accumulated Other Comprehensive Loss, Ending Balance | $ (146.8) | $ (109.5) | (146.8) | (109.5) | |||
Cost of Products Sold [Member] | Commodity contracts [Member] | Cash Flow Hedging [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | 0 | 9.6 | 0 | 28.4 | |||
Interest Expense [Member] | Interest rate contract [Member] | Cash Flow Hedging [Member] | |||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | (0.1) | (0.1) | (0.4) | (0.4) | |||
Foreign Currency Translation Adjustment [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | (2.3) | 31.7 | |||||
Reclassification adjustments | 0 | 0 | |||||
Current period (charge) credit | (44.4) | (49.6) | |||||
Income tax benefit (expense) | 0 | 0 | |||||
Accumulated Other Comprehensive Loss, Ending Balance | (46.7) | (17.9) | (46.7) | (17.9) | |||
Unrealized (Loss) Gain on Cash Flow Hedging Derivatives [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | [1] | (5.2) | 15.3 | ||||
Reclassification adjustments | [1] | 0.4 | (28) | ||||
Current period (charge) credit | [1] | 0 | 0 | ||||
Income tax benefit (expense) | [1] | (0.1) | 10.4 | ||||
Accumulated Other Comprehensive Loss, Ending Balance | [1] | (4.9) | (2.3) | (4.9) | (2.3) | ||
Pension and Other Postretirement Liabilities [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | [2] | (105.6) | (102) | ||||
Reclassification adjustments | (3.2) | (6.6) | 10.5 | [2] | 10.6 | [2] | |
Current period (charge) credit | [2] | 1.3 | 1.7 | ||||
Income tax benefit (expense) | [2] | (4.7) | (3.9) | ||||
Accumulated Other Comprehensive Loss, Ending Balance | [2] | (98.5) | (93.6) | (98.5) | (93.6) | ||
Unrealized Gain on Available-for-Sale Securities [Member] | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Accumulated Other Comprehensive Loss, Beginning Balance | 3.3 | 3.4 | |||||
Reclassification adjustments | 0 | 0 | |||||
Current period (charge) credit | 0 | 1.4 | |||||
Income tax benefit (expense) | 0 | (0.5) | |||||
Accumulated Other Comprehensive Loss, Ending Balance | $ 3.3 | $ 4.3 | $ 3.3 | $ 4.3 | |||
[1] | Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for both the three months ended January 31, 2016 and 2015, and $0.4 of expense was reclassified for both the nine months ended January 31, 2016 and 2015. Of the total gains and losses reclassified from accumulated other comprehensive loss, $9.6 and $28.4 of income was reclassified to cost of products sold related to commodity derivatives for the three and nine months ended January 31, 2015, respectively. | ||||||
[2] | Of the total amortization of net losses reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expense for the nine months ended January 31, 2016 and 2015, $3.2 and $6.6 was reclassified for the three months ended January 31, 2016 and 2015, respectively. |
Contingencies (Details Textual)
Contingencies (Details Textual) - Pending Litigation [Member] - Big Heart [Member] - USD ($) $ in Millions | May. 31, 2014 | Oct. 09, 2013 |
Contingencies [Line Items] | ||
Divestiture proceeds received associated with assumed contingency | $ 1,700 | |
Initial working capital adjustment received currently in dispute | $ 110 | |
Subsequent working capital adjustment claimed in dispute | $ 16.3 |
Common Shares (Details)
Common Shares (Details) - shares | Jan. 31, 2016 | Apr. 30, 2015 | Mar. 23, 2015 |
Common Shares Information | |||
Common shares authorized | 300,000,000 | 300,000,000 | |
Common shares outstanding | 119,685,003 | 119,577,333 | 120,000,000 |
Treasury shares | 26,812,727 | 26,920,397 | |
Common Shares (Additional Textual) [Abstract] | |||
Shares remaining for repurchase | 10,000,000 |
Guarantor and Non-Guarantor F57
Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2016 | Jan. 31, 2015 | Jan. 31, 2016 | Jan. 31, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | $ 1,973.9 | $ 1,440 | $ 6,003.6 | $ 4,245.6 |
Cost of products sold | 1,210.1 | 917.1 | 3,723.8 | 2,707.5 |
Gross Profit | 763.8 | 522.9 | 2,279.8 | 1,538.1 |
Selling, distribution, and administrative expenses and other special project costs | 422.5 | 243.2 | 1,253.4 | 760.4 |
Amortization | 52.2 | 25.2 | 158.2 | 75.3 |
Other operating (income) expense – net | (29.2) | (0.6) | (31) | 0.9 |
Operating Income | 318.3 | 255.1 | 899.2 | 701.5 |
Interest (expense) income - net | (43.6) | (16.8) | (130.6) | (50.4) |
Other income (expense) – net | 0.6 | 0.1 | (0.9) | 1.7 |
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Income Before Income Taxes | 275.3 | 238.4 | 767.7 | 652.8 |
Income taxes | 90 | 77.5 | 270 | 217.6 |
Net Income | 185.3 | 160.9 | 497.7 | 435.2 |
Other comprehensive (loss) income, net of tax | (18) | (35.3) | (37) | (57.9) |
Comprehensive Income | 167.3 | 125.6 | 460.7 | 377.3 |
Eliminations [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | (1,290.9) | (1,295.5) | (4,039.2) | (3,941.8) |
Cost of products sold | (1,297.5) | (1,299.6) | (4,046.9) | (3,944.4) |
Gross Profit | 6.6 | 4.1 | 7.7 | 2.6 |
Selling, distribution, and administrative expenses and other special project costs | 0 | 0 | 0 | 0 |
Amortization | 0 | 0.1 | 0 | 0.1 |
Other operating (income) expense – net | 0 | 0 | 0 | 0 |
Operating Income | 6.6 | 4 | 7.7 | 2.5 |
Interest (expense) income - net | 0 | 0 | 0 | 0 |
Other income (expense) – net | 0 | 0 | 0 | 0 |
Equity in net earnings of subsidiaries | (171.5) | (139.6) | (492.2) | (427.9) |
Income Before Income Taxes | (164.9) | (135.6) | (484.5) | (425.4) |
Income taxes | 0 | 0 | 0 | 0 |
Net Income | (164.9) | (135.6) | (484.5) | (425.4) |
Other comprehensive (loss) income, net of tax | 19.6 | 41.9 | 42.3 | 78.5 |
Comprehensive Income | (145.3) | (93.7) | (442.2) | (346.9) |
The J.M. Smucker Company (Parent) [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 784.7 | 773.4 | 2,372.7 | 2,285.1 |
Cost of products sold | 591.4 | 604.8 | 1,831.1 | 1,837.6 |
Gross Profit | 193.3 | 168.6 | 541.6 | 447.5 |
Selling, distribution, and administrative expenses and other special project costs | 72.9 | 53.2 | 197.8 | 156.5 |
Amortization | 0.3 | 1.1 | 2.4 | 3.2 |
Other operating (income) expense – net | (24.6) | 0.5 | (24.7) | 0.2 |
Operating Income | 144.7 | 113.8 | 366.1 | 287.6 |
Interest (expense) income - net | (43.8) | (17) | (131.2) | (51) |
Other income (expense) – net | (1.7) | 0.2 | 1.8 | 1.7 |
Equity in net earnings of subsidiaries | 119.2 | 95.9 | 342.4 | 277.7 |
Income Before Income Taxes | 218.4 | 192.9 | 579.1 | 516 |
Income taxes | 33.1 | 32 | 81.4 | 80.8 |
Net Income | 185.3 | 160.9 | 497.7 | 435.2 |
Other comprehensive (loss) income, net of tax | (18) | (35.3) | (37) | (57.9) |
Comprehensive Income | 167.3 | 125.6 | 460.7 | 377.3 |
Subsidiary Guarantors [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 289.6 | 281.9 | 929.5 | 918.7 |
Cost of products sold | 264.3 | 256.2 | 850.8 | 832.8 |
Gross Profit | 25.3 | 25.7 | 78.7 | 85.9 |
Selling, distribution, and administrative expenses and other special project costs | 9.6 | 12.8 | 30.4 | 39 |
Amortization | 0 | 0 | 0 | 0 |
Other operating (income) expense – net | 0 | (1.2) | 0.4 | 0.7 |
Operating Income | 15.7 | 14.1 | 47.9 | 46.2 |
Interest (expense) income - net | 0.3 | 0.3 | 0.9 | 0.9 |
Other income (expense) – net | 0.1 | 0.1 | 0.2 | 0.1 |
Equity in net earnings of subsidiaries | 36.5 | 29.4 | 101.7 | 103.8 |
Income Before Income Taxes | 52.6 | 43.9 | 150.7 | 151 |
Income taxes | 0.1 | 0.1 | 0.3 | 0.3 |
Net Income | 52.5 | 43.8 | 150.4 | 150.7 |
Other comprehensive (loss) income, net of tax | 0.2 | (5) | 0.7 | (15.8) |
Comprehensive Income | 52.7 | 38.8 | 151.1 | 134.9 |
Non-Guarantor Subsidiaries [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 2,190.5 | 1,680.2 | 6,740.6 | 4,983.6 |
Cost of products sold | 1,651.9 | 1,355.7 | 5,088.8 | 3,981.5 |
Gross Profit | 538.6 | 324.5 | 1,651.8 | 1,002.1 |
Selling, distribution, and administrative expenses and other special project costs | 340 | 177.2 | 1,025.2 | 564.9 |
Amortization | 51.9 | 24 | 155.8 | 72 |
Other operating (income) expense – net | (4.6) | 0.1 | (6.7) | 0 |
Operating Income | 151.3 | 123.2 | 477.5 | 365.2 |
Interest (expense) income - net | (0.1) | (0.1) | (0.3) | (0.3) |
Other income (expense) – net | 2.2 | (0.2) | (2.9) | (0.1) |
Equity in net earnings of subsidiaries | 15.8 | 14.3 | 48.1 | 46.4 |
Income Before Income Taxes | 169.2 | 137.2 | 522.4 | 411.2 |
Income taxes | 56.8 | 45.4 | 188.3 | 136.5 |
Net Income | 112.4 | 91.8 | 334.1 | 274.7 |
Other comprehensive (loss) income, net of tax | (19.8) | (36.9) | (43) | (62.7) |
Comprehensive Income | $ 92.6 | $ 54.9 | $ 291.1 | $ 212 |
Guarantor and Non-Guarantor F58
Guarantor and Non-Guarantor Financial Information (Details 1) - USD ($) $ in Millions | Jan. 31, 2016 | Apr. 30, 2015 | Jan. 31, 2015 | Apr. 30, 2014 | |
Current Assets | |||||
Cash and cash equivalents | $ 140.5 | $ 125.6 | $ 111.7 | $ 153.5 | |
Inventories | 942 | 1,163.6 | |||
Other current assets | 715.9 | 771 | |||
Total Current Assets | 1,798.4 | 2,060.2 | |||
Property, Plant, and Equipment - Net | 1,623.9 | 1,678.3 | |||
Investments in Subsidiaries | 0 | 0 | |||
Intercompany Receivable | 0 | 0 | |||
Other Noncurrent Assets | |||||
Goodwill | 5,944.9 | 6,011.6 | |||
Other intangible assets – net | 6,715 | 6,950.3 | |||
Other noncurrent assets | 199.3 | 182.2 | |||
Total Other Noncurrent Assets | 12,859.2 | 13,144.1 | |||
Total Assets | 16,281.5 | 16,882.6 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 1,006 | 1,022.6 | |||
Noncurrent Liabilities | |||||
Long-term debt | [1] | 5,146.3 | 5,944.9 | ||
Deferred income taxes | 2,461.8 | 2,473.3 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 341.9 | 354.9 | |||
Total Noncurrent Liabilities | 7,950 | 8,773.1 | |||
Total Liabilities | 8,956 | 9,795.7 | |||
Total Shareholders’ Equity | 7,325.5 | 7,086.9 | |||
Total Liabilities and Shareholders’ Equity | 16,281.5 | 16,882.6 | |||
Eliminations [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Inventories | 7.7 | 3.7 | |||
Other current assets | (8.2) | (12.6) | |||
Total Current Assets | (0.5) | (8.9) | |||
Property, Plant, and Equipment - Net | 0 | 0 | |||
Investments in Subsidiaries | (19,497.5) | (19,062.5) | |||
Intercompany Receivable | (1,268.8) | (438.3) | |||
Other Noncurrent Assets | |||||
Goodwill | 0 | 0 | |||
Other intangible assets – net | 0 | 0 | |||
Other noncurrent assets | 0 | 0 | |||
Total Other Noncurrent Assets | 0 | 0 | |||
Total Assets | (20,766.8) | (19,509.7) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | (8.2) | (12.6) | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Intercompany payable | (3,838) | (3,080.2) | |||
Other noncurrent liabilities | 0 | 0 | |||
Total Noncurrent Liabilities | (3,838) | (3,080.2) | |||
Total Liabilities | (3,846.2) | (3,092.8) | |||
Total Shareholders’ Equity | (16,920.6) | (16,416.9) | |||
Total Liabilities and Shareholders’ Equity | (20,766.8) | (19,509.7) | |||
The J.M. Smucker Company (Parent) [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 3.9 | 7.1 | 12.3 | 6.8 | |
Inventories | 0 | 0 | |||
Other current assets | 443.9 | 427.4 | |||
Total Current Assets | 447.8 | 434.5 | |||
Property, Plant, and Equipment - Net | 297.5 | 258 | |||
Investments in Subsidiaries | 14,894.7 | 14,610.4 | |||
Intercompany Receivable | 0 | 0 | |||
Other Noncurrent Assets | |||||
Goodwill | 1,033 | 1,082 | |||
Other intangible assets – net | 430.3 | 501.1 | |||
Other noncurrent assets | 57.5 | 55.6 | |||
Total Other Noncurrent Assets | 1,520.8 | 1,638.7 | |||
Total Assets | 17,160.8 | 16,941.6 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 493.6 | 484 | |||
Noncurrent Liabilities | |||||
Long-term debt | 5,146.3 | 5,944.9 | |||
Deferred income taxes | 101.4 | 106.9 | |||
Intercompany payable | 3,838 | 3,080.2 | |||
Other noncurrent liabilities | 256 | 238.7 | |||
Total Noncurrent Liabilities | 9,341.7 | 9,370.7 | |||
Total Liabilities | 9,835.3 | 9,854.7 | |||
Total Shareholders’ Equity | 7,325.5 | 7,086.9 | |||
Total Liabilities and Shareholders’ Equity | 17,160.8 | 16,941.6 | |||
Subsidiary Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Inventories | 144.7 | 180.3 | |||
Other current assets | 11.8 | 4.8 | |||
Total Current Assets | 156.5 | 185.1 | |||
Property, Plant, and Equipment - Net | 576.2 | 591.3 | |||
Investments in Subsidiaries | 4,281.5 | 4,179.7 | |||
Intercompany Receivable | 390.9 | 305.2 | |||
Other Noncurrent Assets | |||||
Goodwill | 0 | 0 | |||
Other intangible assets – net | 0 | 0 | |||
Other noncurrent assets | 10.1 | 10.5 | |||
Total Other Noncurrent Assets | 10.1 | 10.5 | |||
Total Assets | 5,415.2 | 5,271.8 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 74.7 | 82.6 | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 15.3 | 15.2 | |||
Total Noncurrent Liabilities | 15.3 | 15.2 | |||
Total Liabilities | 90 | 97.8 | |||
Total Shareholders’ Equity | 5,325.2 | 5,174 | |||
Total Liabilities and Shareholders’ Equity | 5,415.2 | 5,271.8 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 136.6 | 118.5 | $ 99.4 | $ 146.7 | |
Inventories | 789.6 | 979.6 | |||
Other current assets | 268.4 | 351.4 | |||
Total Current Assets | 1,194.6 | 1,449.5 | |||
Property, Plant, and Equipment - Net | 750.2 | 829 | |||
Investments in Subsidiaries | 321.3 | 272.4 | |||
Intercompany Receivable | 877.9 | 133.1 | |||
Other Noncurrent Assets | |||||
Goodwill | 4,911.9 | 4,929.6 | |||
Other intangible assets – net | 6,284.7 | 6,449.2 | |||
Other noncurrent assets | 131.7 | 116.1 | |||
Total Other Noncurrent Assets | 11,328.3 | 11,494.9 | |||
Total Assets | 14,472.3 | 14,178.9 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 445.9 | 468.6 | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 2,360.4 | 2,366.4 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 70.6 | 101 | |||
Total Noncurrent Liabilities | 2,431 | 2,467.4 | |||
Total Liabilities | 2,876.9 | 2,936 | |||
Total Shareholders’ Equity | 11,595.4 | 11,242.9 | |||
Total Liabilities and Shareholders’ Equity | $ 14,472.3 | $ 14,178.9 | |||
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Guarantor and Non-Guarantor F59
Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2016 | Jan. 31, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by (Used for) Operating Activities | $ 1,122.8 | $ 511.6 |
Investing Activities | ||
Business acquired, net of cash acquired | 7.9 | (80.5) |
Equity investment in affiliate | (16) | 0 |
Additions to property, plant, and equipment | (160.8) | (162.1) |
Proceeds from divestiture | 193.7 | 0 |
Equity investments in subsidiaries | 0 | |
Proceeds from disposal of property, plant, and equipment | 0.2 | 1.6 |
(Disbursements of) repayments from intercompany loans | 0 | 0 |
Other – net | 5.7 | (12) |
Net Cash Provided by (Used for) Investing Activities | 30.7 | (253) |
Financing Activities | ||
Short-term (repayments) borrowings - net | (88) | 15.6 |
Repayments of long-term debt | (800) | (100) |
Quarterly dividends paid | (236.5) | (189) |
Purchase of treasury shares | (7.8) | (15.3) |
Investments in subsidiaries | 0 | |
Intercompany payable | 0 | 0 |
Other – net | 2.6 | 10.3 |
Net Cash Used for Financing Activities | (1,129.7) | (278.4) |
Effect of exchange rate changes on cash | (8.9) | (22) |
Net increase (decrease) in cash and cash equivalents | 14.9 | (41.8) |
Cash and cash equivalents at beginning of period | 125.6 | 153.5 |
Cash and Cash Equivalents at End of Period | 140.5 | 111.7 |
Eliminations [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | 0 |
Equity investment in affiliate | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Proceeds from divestiture | 0 | |
Equity investments in subsidiaries | 83.1 | |
Proceeds from disposal of property, plant, and equipment | 0 | 0 |
(Disbursements of) repayments from intercompany loans | 757.8 | 240.3 |
Other – net | 0 | 0 |
Net Cash Provided by (Used for) Investing Activities | 757.8 | 323.4 |
Financing Activities | ||
Short-term (repayments) borrowings - net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 0 |
Investments in subsidiaries | (83.1) | |
Intercompany payable | (757.8) | (240.3) |
Other – net | 0 | 0 |
Net Cash Used for Financing Activities | (757.8) | (323.4) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 |
The J.M. Smucker Company (Parent) [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by (Used for) Operating Activities | 245.8 | 162.7 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | 0 |
Equity investment in affiliate | 0 | |
Additions to property, plant, and equipment | (70.8) | (36) |
Proceeds from divestiture | 193.7 | |
Equity investments in subsidiaries | (83.1) | |
Proceeds from disposal of property, plant, and equipment | 0 | 0 |
(Disbursements of) repayments from intercompany loans | 0 | 0 |
Other – net | 0 | 0 |
Net Cash Provided by (Used for) Investing Activities | 122.9 | (119.1) |
Financing Activities | ||
Short-term (repayments) borrowings - net | (88) | 15.6 |
Repayments of long-term debt | (800) | (100) |
Quarterly dividends paid | (236.5) | (189) |
Purchase of treasury shares | (7.8) | (15.3) |
Investments in subsidiaries | 0 | |
Intercompany payable | 757.8 | 240.3 |
Other – net | 2.6 | 10.3 |
Net Cash Used for Financing Activities | (371.9) | (38.1) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | (3.2) | 5.5 |
Cash and cash equivalents at beginning of period | 7.1 | 6.8 |
Cash and Cash Equivalents at End of Period | 3.9 | 12.3 |
Subsidiary Guarantors [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by (Used for) Operating Activities | 119.2 | 70.4 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | 0 |
Equity investment in affiliate | 0 | |
Additions to property, plant, and equipment | (32.7) | (68.9) |
Proceeds from divestiture | 0 | |
Equity investments in subsidiaries | 0 | |
Proceeds from disposal of property, plant, and equipment | 0.1 | 1.1 |
(Disbursements of) repayments from intercompany loans | (85.6) | 4.2 |
Other – net | (1) | (6.8) |
Net Cash Provided by (Used for) Investing Activities | (119.2) | (70.4) |
Financing Activities | ||
Short-term (repayments) borrowings - net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 0 |
Investments in subsidiaries | 0 | |
Intercompany payable | 0 | 0 |
Other – net | 0 | 0 |
Net Cash Used for Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 0 | 0 |
Cash and cash equivalents at beginning of period | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by (Used for) Operating Activities | 757.8 | 278.5 |
Investing Activities | ||
Business acquired, net of cash acquired | 7.9 | (80.5) |
Equity investment in affiliate | (16) | |
Additions to property, plant, and equipment | (57.3) | (57.2) |
Proceeds from divestiture | 0 | |
Equity investments in subsidiaries | 0 | |
Proceeds from disposal of property, plant, and equipment | 0.1 | 0.5 |
(Disbursements of) repayments from intercompany loans | (672.2) | (244.5) |
Other – net | 6.7 | (5.2) |
Net Cash Provided by (Used for) Investing Activities | (730.8) | (386.9) |
Financing Activities | ||
Short-term (repayments) borrowings - net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 0 |
Investments in subsidiaries | 83.1 | |
Intercompany payable | 0 | 0 |
Other – net | 0 | 0 |
Net Cash Used for Financing Activities | 0 | 83.1 |
Effect of exchange rate changes on cash | (8.9) | (22) |
Net increase (decrease) in cash and cash equivalents | 18.1 | (47.3) |
Cash and cash equivalents at beginning of period | 118.5 | 146.7 |
Cash and Cash Equivalents at End of Period | $ 136.6 | $ 99.4 |
Guarantor and Non-Guarantor F60
Guarantor and Non-Guarantor Financial Information (Details Textual) | Jan. 31, 2016 |
Guarantor and Non Guarantor Financial Information (Textual) [Abstract] | |
Percentage ownership of wholly-owned subsidiaries | 100.00% |