Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2016 | Nov. 16, 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 | Oct. 31, 2016 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 116,434,333 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||
Income Statement [Abstract] | |||||
Net sales | $ 1,913.9 | $ 2,077.7 | $ 3,729.7 | $ 4,029.7 | |
Cost of products sold | 1,171 | 1,290.4 | 2,264.1 | 2,513.7 | |
Gross Profit | 742.9 | 787.3 | 1,465.6 | 1,516 | |
Selling, distribution, and administrative expenses | 363.1 | 389.8 | 719.1 | 777.4 | |
Amortization | 51.8 | 53 | 103.5 | 106 | |
Other special project costs | [1] | 26.6 | 30.6 | 48.8 | 53.5 |
Other operating (income) expense – net | (1.9) | 0.1 | (2.9) | (1.8) | |
Operating Income | 303.3 | 313.8 | 597.1 | 580.9 | |
Interest expense – net | (41) | (42.6) | (82.5) | (87) | |
Other income (expense) – net | 3.2 | (1.6) | 4.3 | (1.5) | |
Income Before Income Taxes | 265.5 | 269.6 | 518.9 | 492.4 | |
Income taxes | 88.2 | 93.6 | 171.6 | 180 | |
Net Income | $ 177.3 | $ 176 | $ 347.3 | $ 312.4 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 1.52 | $ 1.47 | $ 2.98 | $ 2.61 | |
Net Income - Assuming Dilution (in dollars per share) | 1.52 | 1.47 | 2.98 | 2.61 | |
Dividends Declared per Common Share (in dollars per share) | $ 0.75 | $ 0.67 | $ 1.50 | $ 1.34 | |
[1] | Other special project costs include merger and integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 177.3 | $ 176 | $ 347.3 | $ 312.4 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (11.2) | 2.6 | (26.2) | (22.9) |
Cash flow hedging derivative activity, net of tax | 0.1 | 0.1 | 0.2 | 0.2 |
Pension and other postretirement benefit plans activity, net of tax | 0.8 | (0.4) | 18 | 4.1 |
Available-for-sale securities activity, net of tax | 0.1 | (0.2) | 0.3 | (0.4) |
Total Other Comprehensive (Loss) Income | (10.2) | 2.1 | (7.7) | (19) |
Comprehensive Income | $ 167.1 | $ 178.1 | $ 339.6 | $ 293.4 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 | |
Current Assets | |||
Cash and cash equivalents | $ 121.8 | $ 109.8 | |
Trade receivables, less allowance for doubtful accounts | 517.8 | 450.1 | |
Inventories: | |||
Finished products | 669.9 | 560 | |
Raw materials | 358.5 | 339.4 | |
Total Inventory | 1,028.4 | 899.4 | |
Other current assets | 137.2 | 114.1 | |
Total Current Assets | 1,805.2 | 1,573.4 | |
Property, Plant, and Equipment | |||
Land and land improvements | 115.1 | 114.6 | |
Buildings and fixtures | 748.1 | 727.7 | |
Machinery and equipment | 1,931.3 | 1,870.7 | |
Construction in progress | 66.2 | 91.3 | |
Gross Property, Plant, and Equipment | 2,860.7 | 2,804.3 | |
Accumulated depreciation | (1,274) | (1,176.6) | |
Total Property, Plant, and Equipment | 1,586.7 | 1,627.7 | |
Other Noncurrent Assets | |||
Goodwill | 6,080 | 6,091.1 | |
Other intangible assets – net | 6,387.3 | 6,494.4 | |
Other noncurrent assets | 199 | 197.5 | |
Total Other Noncurrent Assets | 12,666.3 | 12,783 | |
Total Assets | 16,058.2 | 15,984.1 | |
Current Liabilities | |||
Accounts payable | 435.8 | 459.4 | |
Accrued trade marketing and merchandising | 180 | 112.3 | |
Short-term borrowings | 406 | 284 | |
Other current liabilities | 284.5 | 357.3 | |
Total Current Liabilities | 1,306.3 | 1,213 | |
Noncurrent Liabilities | |||
Long-term debt | [1] | 4,945.4 | 5,146 |
Deferred income taxes | 2,245 | 2,230.3 | |
Other noncurrent liabilities | 381.4 | 386.3 | |
Total Noncurrent Liabilities | 7,571.8 | 7,762.6 | |
Total Liabilities | 8,878.1 | 8,975.6 | |
Shareholders’ Equity | |||
Common shares | 29.1 | 29.1 | |
Additional capital | 5,873.7 | 5,860.1 | |
Retained income | 1,433.4 | 1,267.7 | |
Accumulated other comprehensive loss | (156.1) | (148.4) | |
Total Shareholders’ Equity | 7,180.1 | 7,008.5 | |
Total Liabilities and Shareholders’ Equity | $ 16,058.2 | $ 15,984.1 | |
[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 | 6 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
Operating Activities | ||
Net income | $ 347.3 | $ 312.4 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation | 107 | 110.4 |
Amortization | 103.5 | 106 |
Share-based compensation expense | 15.1 | 16.4 |
Loss on disposal of assets – net | 1 | 2.6 |
Other noncash adjustments | 0.4 | (2.4) |
Defined benefit pension contributions | (1.3) | (1.8) |
Changes in assets and liabilities, net of effect from businesses acquired: | ||
Trade receivables | (69.9) | (178.5) |
Inventories | (132.7) | 107.6 |
Other current assets | 4.8 | 36.1 |
Accounts payable | (5.5) | (39.7) |
Accrued liabilities | 23.3 | 37.1 |
Income and other taxes | (38.6) | 68.3 |
Other – net | 20.9 | 8 |
Net Cash Provided by Operating Activities | 375.3 | 582.5 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | 7.9 |
Additions to property, plant, and equipment | (84) | (117.4) |
Proceeds from Sale of Property, Plant, and Equipment | 0.4 | 0.2 |
Other – net | (12.7) | 13.3 |
Net Cash Used for Investing Activities | (96.3) | (96) |
Financing Activities | ||
Short-term borrowings – net | 122 | 144 |
Repayments of long-term debt | (200) | (450) |
Quarterly dividends paid | (164.9) | (156.5) |
Purchase of treasury shares | (18.8) | (7.4) |
Other – net | 0.6 | 0.5 |
Net Cash Used for Financing Activities | (261.1) | (469.4) |
Effect of exchange rate changes on cash | (5.9) | (3.7) |
Net increase in cash and cash equivalents | 12 | 13.4 |
Cash and cash equivalents at beginning of period | 109.8 | 125.6 |
Cash and Cash Equivalents at End of Period | $ 121.8 | $ 139 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 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 six months ended October 31, 2016 , are not necessarily indicative of the results that may be expected for the year ending April 30, 2017. 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, 2016 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Oct. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs rather than deferring such recognition until the asset is sold to an outside party. ASU 2016-16 is effective for us on May 1, 2018, with the option to early adopt on May 1, 2017. It will require adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact the application of ASU 2016-16 will have on our financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, which will make changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for us on May 1, 2018, with the option to early adopt at any time prior to the effective date. It will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the impact the application of ASU 2016-15 will have on our financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for us on May 1, 2017, but we have elected to early adopt, as permitted. Effective May 1, 2016, we reclassified the excess tax benefits in historical periods on the Condensed Statements of Consolidated Cash Flows from financing to operating activities. In addition, we have recorded the excess tax benefits or deficiencies within income taxes in the Condensed Statements of Consolidated Income on a prospective basis. The impact of adopting ASU 2016-09 on May 1, 2016, had an immaterial impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which will require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. ASU 2016-02 will be effective for us on May 1, 2019, with the option to early adopt at any time prior to the effective date, and will require a modified retrospective application 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 ASU 2016-02 will have on our financial statements and disclosures. 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. 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 of May 1, 2017. We have performed a preliminary review of the new guidance as compared to our current accounting policies, and a contract review is in process. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position. During 2017, we plan to finalize our review and determine our method of adoption. |
Acquisition
Acquisition | 6 Months Ended |
Oct. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition 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 the Company. The total consideration paid in connection with the acquisition was $5.9 billion , 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 and 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 8: Debt and Financing Arrangements. The final Big Heart purchase price was 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 allocation included total intangible assets of $3.8 billion . 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. We recognized a total of $3.0 billion of goodwill, representing the value we expect to achieve through the implementation of operational synergies and growth opportunities across our segments. Goodwill was allocated across all reportable segments based on the synergies anticipated to be achieved by each individual reporting unit as a result of the acquisition. Of the total goodwill, $63.5 is remaining as deductible for tax purposes at October 31, 2016. |
Integration and Restructuring C
Integration and Restructuring Costs Integration and Restructuring Costs | 6 Months Ended |
Oct. 31, 2016 | |
Restructuring and Related Activities [Abstract] | |
Integration and Restructuring Costs | Integration and Restructuring Costs Integration and restructuring costs primarily consist of employee-related costs, outside service and consulting costs, and other costs related to acquisition or restructuring activities, respectively. Employee-related costs include severance, retention bonuses, and relocation costs. Severance costs and retention bonuses are recognized over the estimated future service period of the affected employees and the remainder are expensed as incurred. Other costs include professional fees, information systems costs, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. These one-time costs are not allocated to segment profit and the majority of these costs are reported in other special project costs in the Condensed Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets. Integration Costs: Total one-time costs related to the Big Heart acquisition are anticipated to be approximately $275.0 , of which approximately $50.0 are expected to be noncash charges. Of the total anticipated one-time costs, we expect to incur approximately $120.0 , $100.0 , and $55.0 in employee-related costs, outside service and consulting costs, and other costs, respectively. These costs are anticipated to be incurred through 2018. We incurred costs of $22.6 and $33.7 during the three months ended October 31, 2016 and 2015, respectively, and $42.8 and $58.5 during the six months ended October 31, 2016 and 2015, respectively, related to the integration of Big Heart. During the three months ended October 31, 2016 , we incurred $6.3 , $12.3 , and $4.0 of employee-related costs, outside service and consulting costs, and other costs, respectively, including noncash charges of $1.4 . During the six months ended October 31, 2016 , we incurred $13.2 , $18.4 , and $11.2 of employee-related costs, outside service and consulting costs, and other costs, respectively, including noncash charges of $7.0 . Total one-time costs from the date of the acquisition were $224.0 as of October 31, 2016 , which include $79.0 , $90.5 , and $54.5 of employee-related costs, outside service and consulting costs, and other costs, respectively, including noncash charges of $31.6 , primarily consisting of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $6.3 and $13.4 at October 31, 2016 and April 30, 2016, respectively. Restructuring Costs: An organization optimization program was approved by the Board of Directors during the fourth quarter of 2016 as part of our ongoing efforts to reduce costs, integrate, and optimize the combined organization. Total restructuring costs are expected to be approximately $40.0 , of which approximately half represents employee-related costs, and the remainder primarily consists of site preparation, equipment relocation, and production start-up costs. Included in the total restructuring costs are approximately $8.0 of noncash charges related to accelerated depreciation. In addition, we expect to invest approximately $15.0 to $17.0 in capital expenditures related to this program. As part of this program, we will discontinue the production of coffee at our Harahan, Louisiana, facility and consolidate all related roast and ground coffee production into one of our facilities in New Orleans, Louisiana, which we expect to complete by December 2017. Additionally, we will exit two leased facilities in Livermore, California, and consolidate all ancient grains and pasta production into our facility in Chico, California, which we expect to complete by January 2017. We anticipate the remainder of restructuring costs to be incurred through 2018, with the majority of the costs expected to be recognized by the end of 2017. Upon completion, the restructuring plan will result in a reduction of approximately 125 full-time positions. We incurred costs of $4.3 and $10.3 during the three and six months ended October 31, 2016 , respectively, related to restructuring activities. During the three months ended October 31, 2016 , we incurred $ 3.3 , $ 0.6 , and $ 0.4 of employee-related costs, outside service and consulting costs, and other costs, respectively. During the six months ended October 31, 2016 , we incurred $ 7.3 , $ 1.7 , and $ 1.3 of employee-related costs, outside service and consulting costs, and other costs, respectively. Total costs incurred to date related to this program were $ 11.6 as of October 31, 2016, which include $ 8.6 , $ 1.7 , and $ 1.3 of employee-related costs, outside service and consulting costs, and other costs, respectively, including non-cash charges of $ 1.0 . The obligation related to severance costs and retention bonuses was $ 3.6 and $ 1.3 at October 31, 2016 and April 30, 2016, respectively. |
Divestiture
Divestiture | 6 Months Ended |
Oct. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Divestiture On December 31, 2015, we sold our U.S. canned milk brands and operations to Eagle Family Foods Group LLC, a subsidiary of funds affiliated with Kelso & Company. 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 excluded from the divestiture. The operating results for this business were primarily included in the U.S. Retail Consumer Foods segment prior to the sale on December 31, 2015. We received proceeds from the divestiture of $ 193.7 , which were net of transaction costs and a working capital adjustment. Upon completion of the transaction, we recognized a pre-tax gain of $ 25.3 in 2016. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments We operate in one industry: the manufacturing and marketing of food and beverage products. We have three reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and U.S. Retail Pet Foods. Within our segment results, International and Foodservice represents a combination of the strategic business areas not included in the U.S. retail market segments. The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers ® , Dunkin’ Donuts ® , and Café Bustelo ® branded coffee; the U.S. Retail Consumer Foods segment primarily includes the domestic sales of Jif ® , Smucker’s ® , Crisco ® , and Pillsbury ® branded products; and the U.S. Retail Pet Foods segment primarily includes the domestic sales of Meow Mix ® , Milk-Bone ® , Natural Balance ® , Kibbles ’n Bits ® , 9Lives ® , Pup-Peroni ® , Nature’s Recipe ® , and Gravy Train ® 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 expenses such as corporate administrative expenses, unallocated gains and losses on commodity and foreign currency exchange derivative activities, and amortization expense related to intangible assets, including any related impairment charges ("amortization"). Effective May 1, 2016, the segment profit calculation was revised to exclude amortization expense related to intangible assets as we believe that excluding amortization expense related to intangible assets from segment operating results is more reflective of our operating performance and the way in which we manage our business. Consistent with prior periods, 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. Prior year segment results have been modified to conform to the revised segment profit presentation excluding amortization expense related to intangible assets. Three Months Ended October 31, Six Months Ended October 31, 2016 2015 2016 2015 Net sales: U.S. Retail Coffee $ 551.8 $ 586.1 $ 1,065.1 $ 1,151.1 U.S. Retail Consumer Foods 557.3 644.0 1,094.3 1,226.2 U.S. Retail Pet Foods 531.0 566.7 1,050.5 1,116.6 International and Foodservice 273.8 280.9 519.8 535.8 Total net sales $ 1,913.9 $ 2,077.7 $ 3,729.7 $ 4,029.7 Segment profit: U.S. Retail Coffee $ 186.5 $ 180.4 $ 360.3 $ 354.2 U.S. Retail Consumer Foods 118.9 127.3 230.3 246.7 U.S. Retail Pet Foods 114.5 115.0 236.7 231.8 International and Foodservice 51.7 55.6 91.2 91.7 Total segment profit $ 471.6 $ 478.3 $ 918.5 $ 924.4 Amortization (51.8 ) (53.0 ) (103.5 ) (106.0 ) Interest expense – net (41.0 ) (42.6 ) (82.5 ) (87.0 ) Unallocated derivative (losses) gains (14.2 ) 6.0 (6.5 ) (4.0 ) Cost of products sold – special project costs (A) (0.3 ) (3.0 ) (4.3 ) (6.1 ) Other special project costs (A) (26.6 ) (30.6 ) (48.8 ) (53.5 ) Corporate administrative expenses (75.4 ) (83.9 ) (158.3 ) (173.9 ) Other income (expense) – net 3.2 (1.6 ) 4.3 (1.5 ) Income before income taxes $ 265.5 $ 269.6 $ 518.9 $ 492.4 (A) Special project costs include merger and integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Oct. 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 October 31, Six Months Ended October 31, 2016 2015 2016 2015 Net income $ 177.3 $ 176.0 $ 347.3 $ 312.4 Less: Net income allocated to participating securities 0.8 0.8 1.6 1.4 Net income allocated to common stockholders $ 176.5 $ 175.2 $ 345.7 $ 311.0 Weighted-average common shares outstanding 115,885,448 119,159,257 115,845,261 119,124,508 Add: Dilutive effect of stock options 123,608 10,276 132,332 11,740 Weighted-average common shares outstanding – assuming dilution 116,009,056 119,169,533 115,977,593 119,136,248 Net income per common share $ 1.52 $ 1.47 $ 2.98 $ 2.61 Net income per common share – assuming dilution $ 1.52 $ 1.47 $ 2.98 $ 2.61 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Oct. 31, 2016 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following: October 31, 2016 April 30, 2016 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 498.5 $ 500.0 $ 498.0 2.50% Senior Notes due March 15, 2020 500.0 496.0 500.0 495.5 3.50% Senior Notes due October 15, 2021 750.0 786.0 750.0 789.4 3.00% Senior Notes due March 15, 2022 400.0 396.3 400.0 395.9 3.50% Senior Notes due March 15, 2025 1,000.0 993.1 1,000.0 992.7 4.25% Senior Notes due March 15, 2035 650.0 642.5 650.0 642.2 4.38% Senior Notes due March 15, 2045 600.0 584.6 600.0 584.4 Term Loan Credit Agreement due March 23, 2020 550.0 548.4 750.0 747.9 Total long-term debt $ 4,950.0 $ 4,945.4 $ 5,150.0 $ 5,146.0 (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 October 31, 2016 , was 1.78 percent . The Term Loan requires quarterly amortization payments of 2.50 percent of the original principal amount. 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 October 31, 2016 , we have prepaid $1.2 billion on the Term Loan to date, including $100.0 and $200.0 in the second quarter and first six months of 2017, 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 acquisition, and prepay our privately placed Senior Notes. All of our Senior Notes outstanding at October 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 2014, we entered into an interest rate swap designated as a fair value hedge of the 3.50 percent Senior Notes due October 15, 2021, which was subsequently terminated in 2015. At October 31, 2016 , the remaining benefit of $40.1 resulting from the termination 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 10: 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 October 31, 2016 and April 30, 2016, we did no t have a balance outstanding under the revolving credit facility. We participate in 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 October 31, 2016 and April 30, 2016, we had $406.0 and $284.0 of short-term borrowings outstanding, respectively, all of which were issued under our commercial paper program at a weighted-average interest rate of 0.65 percent . Interest paid totaled $77.7 and $78.4 for the three months ended October 31, 2016 and 2015 , respectively, and $81.3 and $85.6 for the six months ended October 31, 2016 and 2015 , respectively. This differs from interest expense due to the timing of payments, amortization of fair value swap adjustments, 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 | 6 Months Ended |
Oct. 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 October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 3.6 $ 4.4 $ 0.6 $ 0.5 Interest cost 6.2 6.9 0.6 0.7 Expected return on plan assets (7.3 ) (8.3 ) — — Recognized net actuarial loss (gain) 3.4 2.7 (0.1 ) (0.1 ) Prior service cost (credit) 0.3 0.2 (0.3 ) (0.2 ) Curtailment gain — (0.8 ) — (0.1 ) Net periodic benefit cost $ 6.2 $ 5.1 $ 0.8 $ 0.8 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 7.7 $ 9.1 $ 1.2 $ 1.1 Interest cost 12.9 13.9 1.3 1.4 Expected return on plan assets (14.6 ) (16.7 ) — — Recognized net actuarial loss (gain) 7.1 5.4 (0.1 ) (0.1 ) Prior service cost (credit) 0.6 0.4 (0.7 ) (0.5 ) Curtailment gain — (4.5 ) — (0.1 ) Settlement loss 0.1 — — — Net periodic benefit cost $ 13.8 $ 7.6 $ 1.7 $ 1.8 During the first quarter of 2017, we announced our plans to harmonize our retirement benefits and, as a result, will freeze our non-union U.S. defined benefit pension plans. The amendments resulted in an immaterial net settlement loss and a decrease in accumulated other comprehensive loss of $25.2 during the first quarter of 2017. We anticipate future savings to be realized as a result of the plan changes, which will be complete by December 31, 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 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 derivatives 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, wheat, and soybean meal. We also enter into commodity derivatives to manage price risk for energy input costs, including diesel fuel and natural gas. Our 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 over time 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 derivatives 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 or 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. In 2015, we terminated 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. 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 is being recognized over the remaining life of the underlying debt as a reduction of future interest expense. To date, we have recognized $13.4 of the deferred amount, of which $1.9 and $3.8 was recognized during the three and six months ended October 31, 2016 , respectively. The remaining gain will be recognized as follows: $3.8 through the remainder of 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 8: Debt and Financing Arrangements. The following tables set forth the gross fair value amounts of derivative instruments recognized in the Condensed Consolidated Balance Sheets. October 31, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 23.8 $ 26.7 $ 0.1 $ 0.1 Foreign currency exchange contracts 3.0 0.9 — — Total derivative instruments $ 26.8 $ 27.6 $ 0.1 $ 0.1 April 30, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 20.3 $ 14.1 $ 2.0 $ 1.2 Foreign currency exchange contracts 0.2 8.9 0.3 0.4 Total derivative instruments $ 20.5 $ 23.0 $ 2.3 $ 1.6 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 October 31, 2016 and April 30, 2016 , we maintained cash margin account balances of $16.1 and $3.4 , 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. During both of the three month periods ended October 31, 2016 and 2015 , we recognized $0.2 in pre-tax losses related to the termination of prior interest rate swaps. During both of the six month periods ended October 31, 2016 and 2015 , we recognized $0.3 in pre-tax losses related to the termination of prior interest rate swaps. Included as a component of accumulated other comprehensive loss at October 31, 2016 and April 30, 2016 , were deferred pre-tax losses of $7.3 and $7.6 , respectively, related to the termination of these interest rate swaps. The related tax benefit recognized in accumulated other comprehensive loss was $2.7 at both October 31, 2016 and April 30, 2016 . 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 Six Months Ended 2016 2015 2016 2015 Losses on commodity contracts $ (12.9 ) $ (7.9 ) $ (20.7 ) $ (26.9 ) Gains on foreign currency exchange contracts 2.7 0.3 8.5 8.6 Total losses recognized in cost of products sold $ (10.2 ) $ (7.6 ) $ (12.2 ) $ (18.3 ) 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 Six Months Ended 2016 2015 2016 2015 Net losses on mark-to-market valuation of unallocated derivative positions $ (10.2 ) $ (7.6 ) $ (12.2 ) $ (18.3 ) Net (gains) losses on derivative positions reclassified to segment operating profit (4.0 ) 13.6 5.7 14.3 Unallocated derivative (losses) gains $ (14.2 ) $ 6.0 $ (6.5 ) $ (4.0 ) The net cumulative unallocated derivative losses at October 31, 2016 and April 30, 2016, were $14.9 and $8.4 , respectively. As of October 31, 2016 , net realized losses of $7.9 were included in cumulative unallocated derivative losses 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. October 31, 2016 April 30, 2016 Commodity contracts $ 1,114.6 $ 545.7 Foreign currency exchange contracts 225.4 212.5 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 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. October 31, 2016 April 30, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 47.5 $ 47.5 $ 48.8 $ 48.8 Derivative financial instruments – net (0.8 ) (0.8 ) (1.8 ) (1.8 ) Long-term debt (4,945.4 ) (5,158.4 ) (5,146.0 ) (5,319.9 ) 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 October 31, 2016 Marketable securities and other investments: (A) Equity mutual funds $ 10.3 $ — $ — $ 10.3 Municipal obligations — 35.8 — 35.8 Money market funds 1.4 — — 1.4 Derivative financial instruments: (B) Commodity contracts – net 0.1 (3.0 ) — (2.9 ) Foreign currency exchange contracts – net 0.4 1.7 — 2.1 Long-term debt (C) (4,607.8 ) (550.6 ) — (5,158.4 ) Total financial instruments measured at fair value $ (4,595.6 ) $ (516.1 ) $ — $ (5,111.7 ) 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, 2016 Marketable securities and other investments: (A) Equity mutual funds $ 9.8 $ — $ — $ 9.8 Municipal obligations — 37.6 — 37.6 Money market funds 1.4 — — 1.4 Derivative financial instruments: (B) Commodity contracts – net 15.0 (8.0 ) — 7.0 Foreign currency exchange contracts – net (1.7 ) (7.1 ) — (8.8 ) Long-term debt (C) (4,569.0 ) (750.9 ) — (5,319.9 ) Total financial instruments measured at fair value $ (4,544.5 ) $ (728.4 ) $ — $ (5,272.9 ) (A) Marketable securities and 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 that 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 October 31, 2016 , our municipal obligations are scheduled to mature as follows: $0.5 in 2017, $1.0 in 2018, $2.3 in 2019, $2.2 in 2020, and the remaining $29.8 in 2021 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 8: Debt and Financing Arrangements. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes 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 elected early adoption as of April 30, 2016, and have classified all deferred tax liabilities and assets as noncurrent in our Condensed Consolidated Balance Sheets. During the three-month and six-month periods ended October 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. Additionally, the effective tax rate during the three-month and six-month periods ended October 31, 2015, was impacted by higher deferred state income tax expense, which was a result of state tax law changes. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $5.0 , primarily as a result of expiring statute of limitations periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Oct. 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, 2016 $ (13.1 ) $ (4.8 ) $ (134.1 ) $ 3.6 $ (148.4 ) Reclassification adjustments — 0.3 9.1 — 9.4 Current period (charge) credit (26.2 ) — 18.8 0.4 (7.0 ) Income tax expense — (0.1 ) (9.9 ) (0.1 ) (10.1 ) Balance at October 31, 2016 $ (39.3 ) $ (4.6 ) $ (116.1 ) $ 3.9 $ (156.1 ) 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 — 0.3 7.3 — 7.6 Current period charge (22.9 ) — (1.5 ) (0.6 ) (25.0 ) Income tax (expense) benefit — (0.1 ) (1.7 ) 0.2 (1.6 ) Balance at October 31, 2015 $ (25.2 ) $ (5.0 ) $ (101.5 ) $ 2.9 $ (128.8 ) (A) The reclassification from accumulated other comprehensive loss to interest expense was related to the termination of prior interest rate swaps. (B) Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Contingencies
Contingencies | 6 Months Ended |
Oct. 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, 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. |
Common Shares
Common Shares | 6 Months Ended |
Oct. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | Common Shares The following table sets forth common share information. October 31, 2016 April 30, 2016 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 116,435,507 116,306,894 Treasury shares 30,062,223 30,190,836 Share repurchases during the first six months of 2017 primarily consisted of shares repurchased from stock plan recipients in lieu of cash payments. We did no t repurchase any common shares during the first six months of 2017 under a Board authorized repurchase plan. At October 31, 2016 , we had approximately 6.6 million common shares available for repurchase pursuant to the Board’s authorizations. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 6 Months Ended |
Oct. 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 October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 527.9 $ 328.7 $ 2,714.3 $ (1,657.0 ) $ 1,913.9 Cost of products sold 380.8 302.7 2,158.4 (1,670.9 ) 1,171.0 Gross Profit 147.1 26.0 555.9 13.9 742.9 Selling, distribution, and administrative expenses and other special project costs 86.5 10.8 292.4 — 389.7 Amortization 2.6 — 49.2 — 51.8 Other operating expense (income) – net 0.1 (0.3 ) (1.7 ) — (1.9 ) Operating Income 57.9 15.5 216.0 13.9 303.3 Interest (expense) income – net (41.3 ) 0.3 — — (41.0 ) Other (expense) income – net (1.0 ) 2.6 1.6 — 3.2 Equity in net earnings of subsidiaries 171.5 37.9 18.1 (227.5 ) — Income Before Income Taxes 187.1 56.3 235.7 (213.6 ) 265.5 Income taxes 9.8 0.1 78.3 — 88.2 Net Income $ 177.3 $ 56.2 $ 157.4 $ (213.6 ) $ 177.3 Other comprehensive (loss) income, net of tax (10.2 ) 0.3 (10.1 ) 9.8 (10.2 ) Comprehensive Income $ 167.1 $ 56.5 $ 147.3 $ (203.8 ) $ 167.1 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 827.2 $ 341.7 $ 2,316.1 $ (1,407.3 ) $ 2,077.7 Cost of products sold 629.8 314.3 1,755.1 (1,408.8 ) 1,290.4 Gross Profit 197.4 27.4 561.0 1.5 787.3 Selling, distribution, and administrative expenses and other special project costs 62.7 10.2 347.5 — 420.4 Amortization 1.0 — 52.0 — 53.0 Other operating expense – net — — 0.1 — 0.1 Operating Income 133.7 17.2 161.4 1.5 313.8 Interest (expense) income – net (42.8 ) 0.3 (0.1 ) — (42.6 ) Other income (expense) – net 0.6 0.1 (2.3 ) — (1.6 ) Equity in net earnings of subsidiaries 116.8 32.0 17.3 (166.1 ) — Income Before Income Taxes 208.3 49.6 176.3 (164.6 ) 269.6 Income taxes 32.3 0.1 61.2 — 93.6 Net Income $ 176.0 $ 49.5 $ 115.1 $ (164.6 ) $ 176.0 Other comprehensive income (loss), net of tax 2.1 0.2 (0.9 ) 0.7 2.1 Comprehensive Income $ 178.1 $ 49.7 $ 114.2 $ (163.9 ) $ 178.1 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 1,503.9 $ 639.3 $ 5,314.2 $ (3,727.7 ) $ 3,729.7 Cost of products sold 1,187.4 582.6 4,220.5 (3,726.4 ) 2,264.1 Gross Profit 316.5 56.7 1,093.7 (1.3 ) 1,465.6 Selling, distribution, and administrative expenses and other special project costs 171.4 20.9 575.6 — 767.9 Amortization 5.1 — 98.4 — 103.5 Other operating expense (income) – net 0.3 (0.3 ) (2.9 ) — (2.9 ) Operating Income 139.7 36.1 422.6 (1.3 ) 597.1 Interest (expense) income – net (83.0 ) 0.6 (0.1 ) — (82.5 ) Other income – net 1.1 2.7 0.5 — 4.3 Equity in net earnings of subsidiaries 306.0 72.8 38.8 (417.6 ) — Income Before Income Taxes 363.8 112.2 461.8 (418.9 ) 518.9 Income taxes 16.5 0.2 154.9 — 171.6 Net Income $ 347.3 $ 112.0 $ 306.9 $ (418.9 ) $ 347.3 Other comprehensive (loss) income, net of tax (7.7 ) 0.6 (23.6 ) 23.0 (7.7 ) Comprehensive Income $ 339.6 $ 112.6 $ 283.3 $ (395.9 ) $ 339.6 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 1,588.0 $ 639.9 $ 4,550.1 $ (2,748.3 ) $ 4,029.7 Cost of products sold 1,239.7 586.5 3,436.9 (2,749.4 ) 2,513.7 Gross Profit 348.3 53.4 1,113.2 1.1 1,516.0 Selling, distribution, and administrative expenses and other special project costs 124.9 20.8 685.2 — 830.9 Amortization 2.1 — 103.9 — 106.0 Other operating (income) expense – net (0.1 ) 0.4 (2.1 ) — (1.8 ) Operating Income 221.4 32.2 326.2 1.1 580.9 Interest (expense) income – net (87.4 ) 0.6 (0.2 ) — (87.0 ) Other income (expense) – net 3.5 0.1 (5.1 ) — (1.5 ) Equity in net earnings of subsidiaries 223.2 65.2 32.3 (320.7 ) — Income Before Income Taxes 360.7 98.1 353.2 (319.6 ) 492.4 Income taxes 48.3 0.2 131.5 — 180.0 Net Income $ 312.4 $ 97.9 $ 221.7 $ (319.6 ) $ 312.4 Other comprehensive (loss) income, net of tax (19.0 ) 0.5 (23.2 ) 22.7 (19.0 ) Comprehensive Income $ 293.4 $ 98.4 $ 198.5 $ (296.9 ) $ 293.4 CONDENSED CONSOLIDATING BALANCE SHEETS October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 11.4 $ — $ 110.4 $ — $ 121.8 Inventories — 152.4 877.2 (1.2 ) 1,028.4 Other current assets 596.8 2.9 68.2 (12.9 ) 655.0 Total Current Assets 608.2 155.3 1,055.8 (14.1 ) 1,805.2 Property, Plant, and Equipment – Net 291.8 572.0 722.9 — 1,586.7 Investments in Subsidiaries 15,376.8 4,390.7 371.0 (20,138.5 ) — Intercompany Receivable — 475.0 1,728.5 (2,203.5 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,585.2 — 6,080.0 Other intangible assets – net 423.1 — 5,964.2 — 6,387.3 Other noncurrent assets 55.9 11.9 131.2 — 199.0 Total Other Noncurrent Assets 1,973.8 11.9 10,680.6 — 12,666.3 Total Assets $ 18,250.6 $ 5,604.9 $ 14,558.8 $ (22,356.1 ) $ 16,058.2 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 815.3 $ 102.2 $ 401.7 $ (12.9 ) $ 1,306.3 Noncurrent Liabilities Long-term debt 4,945.4 — — — 4,945.4 Deferred income taxes 69.9 — 2,175.1 — 2,245.0 Intercompany payable 4,904.9 — — (4,904.9 ) — Other noncurrent liabilities 335.0 17.9 28.5 — 381.4 Total Noncurrent Liabilities 10,255.2 17.9 2,203.6 (4,904.9 ) 7,571.8 Total Liabilities 11,070.5 120.1 2,605.3 (4,917.8 ) 8,878.1 Total Shareholders’ Equity 7,180.1 5,484.8 11,953.5 (17,438.3 ) 7,180.1 Total Liabilities and Shareholders’ Equity $ 18,250.6 $ 5,604.9 $ 14,558.8 $ (22,356.1 ) $ 16,058.2 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.0 $ — $ 102.8 $ — $ 109.8 Inventories — 143.2 752.0 4.2 899.4 Other current assets 497.3 5.9 71.9 (10.9 ) 564.2 Total Current Assets 504.3 149.1 926.7 (6.7 ) 1,573.4 Property, Plant, and Equipment – Net 296.3 587.0 744.4 — 1,627.7 Investments in Subsidiaries 15,092.2 4,317.9 331.6 (19,741.7 ) — Intercompany Receivable — 404.7 1,543.9 (1,948.6 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,596.3 — 6,091.1 Other intangible assets – net 428.3 — 6,066.1 — 6,494.4 Other noncurrent assets 57.4 10.4 129.7 — 197.5 Total Other Noncurrent Assets 1,980.5 10.4 10,792.1 — 12,783.0 Total Assets $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 723.3 $ 78.9 $ 421.6 $ (10.8 ) $ 1,213.0 Noncurrent Liabilities Long-term debt 5,146.0 — — — 5,146.0 Deferred income taxes 60.7 — 2,169.6 — 2,230.3 Intercompany payable 4,644.7 — — (4,644.7 ) — Other noncurrent liabilities 290.1 17.9 78.3 — 386.3 Total Noncurrent Liabilities 10,141.5 17.9 2,247.9 (4,644.7 ) 7,762.6 Total Liabilities 10,864.8 96.8 2,669.5 (4,655.5 ) 8,975.6 Total Shareholders’ Equity 7,008.5 5,372.3 11,669.2 (17,041.5 ) 7,008.5 Total Liabilities and Shareholders’ Equity $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 22.4 $ 87.9 $ 265.0 $ — $ 375.3 Investing Activities Additions to property, plant, and equipment (17.0 ) (18.8 ) (48.2 ) — (84.0 ) Proceeds from disposal of property, plant, and equipment — — 0.4 — 0.4 (Disbursements of) repayments from intercompany loans — (70.3 ) (189.9 ) 260.2 — Other – net (0.1 ) 1.2 (13.8 ) — (12.7 ) Net Cash (Used for) Provided by Investing Activities (17.1 ) (87.9 ) (251.5 ) 260.2 (96.3 ) Financing Activities Short-term borrowings – net 122.0 — — — 122.0 Repayments of long-term debt (200.0 ) — — — (200.0 ) Quarterly dividends paid (164.9 ) — — — (164.9 ) Purchase of treasury shares (18.8 ) — — — (18.8 ) Intercompany payable 260.2 — — (260.2 ) — Other – net 0.6 — — — 0.6 Net Cash Used for Financing Activities (0.9 ) — — (260.2 ) (261.1 ) Effect of exchange rate changes on cash — — (5.9 ) — (5.9 ) Net increase in cash and cash equivalents 4.4 — 7.6 — 12.0 Cash and cash equivalents at beginning of period 7.0 — 102.8 — 109.8 Cash and Cash Equivalents at End of Period $ 11.4 $ — $ 110.4 $ — $ 121.8 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 104.3 $ 73.2 $ 405.0 $ — $ 582.5 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Additions to property, plant, and equipment (56.3 ) (20.3 ) (40.8 ) — (117.4 ) Proceeds from disposal of property, plant, and equipment — 0.1 0.1 — 0.2 (Disbursements of) repayments from intercompany loans — (53.3 ) (368.0 ) 421.3 — Other – net — 0.3 13.0 — 13.3 Net Cash (Used for) Provided by Investing Activities (56.3 ) (73.2 ) (387.8 ) 421.3 (96.0 ) Financing Activities Short-term borrowings – net 144.0 — — — 144.0 Repayments of long-term debt (450.0 ) — — — (450.0 ) Quarterly dividends paid (156.5 ) — — — (156.5 ) Purchase of treasury shares (7.4 ) — — — (7.4 ) Intercompany payable 421.3 — — (421.3 ) — Other – net 0.5 — — — 0.5 Net Cash Used for Financing Activities (48.1 ) — — (421.3 ) (469.4 ) Effect of exchange rate changes on cash — — (3.7 ) — (3.7 ) Net increase in cash and cash equivalents (0.1 ) — 13.5 — 13.4 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 7.0 $ — $ 132.0 $ — $ 139.0 |
Recently Issued Accounting St22
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Oct. 31, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In October 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-16, Income Taxes (Topic 740) Intra-Entity Transfers of Assets Other Than Inventory, which requires the recognition of the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs rather than deferring such recognition until the asset is sold to an outside party. ASU 2016-16 is effective for us on May 1, 2018, with the option to early adopt on May 1, 2017. It will require adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. We are currently evaluating the impact the application of ASU 2016-16 will have on our financial statements and disclosures. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230) Classification of Certain Cash Receipts and Cash Payments, which will make changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 will be effective for us on May 1, 2018, with the option to early adopt at any time prior to the effective date. It will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the impact the application of ASU 2016-15 will have on our financial statements and disclosures. In March 2016, the FASB issued ASU 2016-09, Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting. ASU 2016-09 includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for us on May 1, 2017, but we have elected to early adopt, as permitted. Effective May 1, 2016, we reclassified the excess tax benefits in historical periods on the Condensed Statements of Consolidated Cash Flows from financing to operating activities. In addition, we have recorded the excess tax benefits or deficiencies within income taxes in the Condensed Statements of Consolidated Income on a prospective basis. The impact of adopting ASU 2016-09 on May 1, 2016, had an immaterial impact on our condensed consolidated financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which will require lessees to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. ASU 2016-02 will be effective for us on May 1, 2019, with the option to early adopt at any time prior to the effective date, and will require a modified retrospective application 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 ASU 2016-02 will have on our financial statements and disclosures. 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. 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 of May 1, 2017. We have performed a preliminary review of the new guidance as compared to our current accounting policies, and a contract review is in process. Based on our findings to date, we do not expect the standard to have a material impact on our results of operations or financial position. During 2017, we plan to finalize our review and determine our method of adoption. |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Segment Reporting [Abstract] | |
Income and assets by segment | Three Months Ended October 31, Six Months Ended October 31, 2016 2015 2016 2015 Net sales: U.S. Retail Coffee $ 551.8 $ 586.1 $ 1,065.1 $ 1,151.1 U.S. Retail Consumer Foods 557.3 644.0 1,094.3 1,226.2 U.S. Retail Pet Foods 531.0 566.7 1,050.5 1,116.6 International and Foodservice 273.8 280.9 519.8 535.8 Total net sales $ 1,913.9 $ 2,077.7 $ 3,729.7 $ 4,029.7 Segment profit: U.S. Retail Coffee $ 186.5 $ 180.4 $ 360.3 $ 354.2 U.S. Retail Consumer Foods 118.9 127.3 230.3 246.7 U.S. Retail Pet Foods 114.5 115.0 236.7 231.8 International and Foodservice 51.7 55.6 91.2 91.7 Total segment profit $ 471.6 $ 478.3 $ 918.5 $ 924.4 Amortization (51.8 ) (53.0 ) (103.5 ) (106.0 ) Interest expense – net (41.0 ) (42.6 ) (82.5 ) (87.0 ) Unallocated derivative (losses) gains (14.2 ) 6.0 (6.5 ) (4.0 ) Cost of products sold – special project costs (A) (0.3 ) (3.0 ) (4.3 ) (6.1 ) Other special project costs (A) (26.6 ) (30.6 ) (48.8 ) (53.5 ) Corporate administrative expenses (75.4 ) (83.9 ) (158.3 ) (173.9 ) Other income (expense) – net 3.2 (1.6 ) 4.3 (1.5 ) Income before income taxes $ 265.5 $ 269.6 $ 518.9 $ 492.4 (A) Special project costs include merger and integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Oct. 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 October 31, Six Months Ended October 31, 2016 2015 2016 2015 Net income $ 177.3 $ 176.0 $ 347.3 $ 312.4 Less: Net income allocated to participating securities 0.8 0.8 1.6 1.4 Net income allocated to common stockholders $ 176.5 $ 175.2 $ 345.7 $ 311.0 Weighted-average common shares outstanding 115,885,448 119,159,257 115,845,261 119,124,508 Add: Dilutive effect of stock options 123,608 10,276 132,332 11,740 Weighted-average common shares outstanding – assuming dilution 116,009,056 119,169,533 115,977,593 119,136,248 Net income per common share $ 1.52 $ 1.47 $ 2.98 $ 2.61 Net income per common share – assuming dilution $ 1.52 $ 1.47 $ 2.98 $ 2.61 |
Debt and Financing Arrangemen25
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: October 31, 2016 April 30, 2016 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 498.5 $ 500.0 $ 498.0 2.50% Senior Notes due March 15, 2020 500.0 496.0 500.0 495.5 3.50% Senior Notes due October 15, 2021 750.0 786.0 750.0 789.4 3.00% Senior Notes due March 15, 2022 400.0 396.3 400.0 395.9 3.50% Senior Notes due March 15, 2025 1,000.0 993.1 1,000.0 992.7 4.25% Senior Notes due March 15, 2035 650.0 642.5 650.0 642.2 4.38% Senior Notes due March 15, 2045 600.0 584.6 600.0 584.4 Term Loan Credit Agreement due March 23, 2020 550.0 548.4 750.0 747.9 Total long-term debt $ 4,950.0 $ 4,945.4 $ 5,150.0 $ 5,146.0 (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) | 6 Months Ended |
Oct. 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 October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 3.6 $ 4.4 $ 0.6 $ 0.5 Interest cost 6.2 6.9 0.6 0.7 Expected return on plan assets (7.3 ) (8.3 ) — — Recognized net actuarial loss (gain) 3.4 2.7 (0.1 ) (0.1 ) Prior service cost (credit) 0.3 0.2 (0.3 ) (0.2 ) Curtailment gain — (0.8 ) — (0.1 ) Net periodic benefit cost $ 6.2 $ 5.1 $ 0.8 $ 0.8 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2016 2015 2016 2015 Service cost $ 7.7 $ 9.1 $ 1.2 $ 1.1 Interest cost 12.9 13.9 1.3 1.4 Expected return on plan assets (14.6 ) (16.7 ) — — Recognized net actuarial loss (gain) 7.1 5.4 (0.1 ) (0.1 ) Prior service cost (credit) 0.6 0.4 (0.7 ) (0.5 ) Curtailment gain — (4.5 ) — (0.1 ) Settlement loss 0.1 — — — Net periodic benefit cost $ 13.8 $ 7.6 $ 1.7 $ 1.8 |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 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. October 31, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 23.8 $ 26.7 $ 0.1 $ 0.1 Foreign currency exchange contracts 3.0 0.9 — — Total derivative instruments $ 26.8 $ 27.6 $ 0.1 $ 0.1 April 30, 2016 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 20.3 $ 14.1 $ 2.0 $ 1.2 Foreign currency exchange contracts 0.2 8.9 0.3 0.4 Total derivative instruments $ 20.5 $ 23.0 $ 2.3 $ 1.6 |
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 Six Months Ended 2016 2015 2016 2015 Losses on commodity contracts $ (12.9 ) $ (7.9 ) $ (20.7 ) $ (26.9 ) Gains on foreign currency exchange contracts 2.7 0.3 8.5 8.6 Total losses recognized in cost of products sold $ (10.2 ) $ (7.6 ) $ (12.2 ) $ (18.3 ) |
Schedule of unallocated derivative (losses) gains | The following table presents the activity in unallocated derivative gains and losses. Three Months Ended Six Months Ended 2016 2015 2016 2015 Net losses on mark-to-market valuation of unallocated derivative positions $ (10.2 ) $ (7.6 ) $ (12.2 ) $ (18.3 ) Net (gains) losses on derivative positions reclassified to segment operating profit (4.0 ) 13.6 5.7 14.3 Unallocated derivative (losses) gains $ (14.2 ) $ 6.0 $ (6.5 ) $ (4.0 ) |
Outstanding derivative contracts | The following table presents the gross contract notional value of outstanding derivative contracts. October 31, 2016 April 30, 2016 Commodity contracts $ 1,114.6 $ 545.7 Foreign currency exchange contracts 225.4 212.5 |
Other Financial Instruments a28
Other Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 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. October 31, 2016 April 30, 2016 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 47.5 $ 47.5 $ 48.8 $ 48.8 Derivative financial instruments – net (0.8 ) (0.8 ) (1.8 ) (1.8 ) Long-term debt (4,945.4 ) (5,158.4 ) (5,146.0 ) (5,319.9 ) |
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 October 31, 2016 Marketable securities and other investments: (A) Equity mutual funds $ 10.3 $ — $ — $ 10.3 Municipal obligations — 35.8 — 35.8 Money market funds 1.4 — — 1.4 Derivative financial instruments: (B) Commodity contracts – net 0.1 (3.0 ) — (2.9 ) Foreign currency exchange contracts – net 0.4 1.7 — 2.1 Long-term debt (C) (4,607.8 ) (550.6 ) — (5,158.4 ) Total financial instruments measured at fair value $ (4,595.6 ) $ (516.1 ) $ — $ (5,111.7 ) 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, 2016 Marketable securities and other investments: (A) Equity mutual funds $ 9.8 $ — $ — $ 9.8 Municipal obligations — 37.6 — 37.6 Money market funds 1.4 — — 1.4 Derivative financial instruments: (B) Commodity contracts – net 15.0 (8.0 ) — 7.0 Foreign currency exchange contracts – net (1.7 ) (7.1 ) — (8.8 ) Long-term debt (C) (4,569.0 ) (750.9 ) — (5,319.9 ) Total financial instruments measured at fair value $ (4,544.5 ) $ (728.4 ) $ — $ (5,272.9 ) (A) Marketable securities and 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 that 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 October 31, 2016 , our municipal obligations are scheduled to mature as follows: $0.5 in 2017, $1.0 in 2018, $2.3 in 2019, $2.2 in 2020, and the remaining $29.8 in 2021 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 8: Debt and Financing Arrangements. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Oct. 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, 2016 $ (13.1 ) $ (4.8 ) $ (134.1 ) $ 3.6 $ (148.4 ) Reclassification adjustments — 0.3 9.1 — 9.4 Current period (charge) credit (26.2 ) — 18.8 0.4 (7.0 ) Income tax expense — (0.1 ) (9.9 ) (0.1 ) (10.1 ) Balance at October 31, 2016 $ (39.3 ) $ (4.6 ) $ (116.1 ) $ 3.9 $ (156.1 ) 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 — 0.3 7.3 — 7.6 Current period charge (22.9 ) — (1.5 ) (0.6 ) (25.0 ) Income tax (expense) benefit — (0.1 ) (1.7 ) 0.2 (1.6 ) Balance at October 31, 2015 $ (25.2 ) $ (5.0 ) $ (101.5 ) $ 2.9 $ (128.8 ) (A) The reclassification from accumulated other comprehensive loss to interest expense was related to the termination of prior interest rate swaps. (B) Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Common Shares (Tables)
Common Shares (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. October 31, 2016 April 30, 2016 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 116,435,507 116,306,894 Treasury shares 30,062,223 30,190,836 |
Guarantor and Non-Guarantor F31
Guarantor and Non-Guarantor Financial Information (Tables) | 6 Months Ended |
Oct. 31, 2016 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 527.9 $ 328.7 $ 2,714.3 $ (1,657.0 ) $ 1,913.9 Cost of products sold 380.8 302.7 2,158.4 (1,670.9 ) 1,171.0 Gross Profit 147.1 26.0 555.9 13.9 742.9 Selling, distribution, and administrative expenses and other special project costs 86.5 10.8 292.4 — 389.7 Amortization 2.6 — 49.2 — 51.8 Other operating expense (income) – net 0.1 (0.3 ) (1.7 ) — (1.9 ) Operating Income 57.9 15.5 216.0 13.9 303.3 Interest (expense) income – net (41.3 ) 0.3 — — (41.0 ) Other (expense) income – net (1.0 ) 2.6 1.6 — 3.2 Equity in net earnings of subsidiaries 171.5 37.9 18.1 (227.5 ) — Income Before Income Taxes 187.1 56.3 235.7 (213.6 ) 265.5 Income taxes 9.8 0.1 78.3 — 88.2 Net Income $ 177.3 $ 56.2 $ 157.4 $ (213.6 ) $ 177.3 Other comprehensive (loss) income, net of tax (10.2 ) 0.3 (10.1 ) 9.8 (10.2 ) Comprehensive Income $ 167.1 $ 56.5 $ 147.3 $ (203.8 ) $ 167.1 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 827.2 $ 341.7 $ 2,316.1 $ (1,407.3 ) $ 2,077.7 Cost of products sold 629.8 314.3 1,755.1 (1,408.8 ) 1,290.4 Gross Profit 197.4 27.4 561.0 1.5 787.3 Selling, distribution, and administrative expenses and other special project costs 62.7 10.2 347.5 — 420.4 Amortization 1.0 — 52.0 — 53.0 Other operating expense – net — — 0.1 — 0.1 Operating Income 133.7 17.2 161.4 1.5 313.8 Interest (expense) income – net (42.8 ) 0.3 (0.1 ) — (42.6 ) Other income (expense) – net 0.6 0.1 (2.3 ) — (1.6 ) Equity in net earnings of subsidiaries 116.8 32.0 17.3 (166.1 ) — Income Before Income Taxes 208.3 49.6 176.3 (164.6 ) 269.6 Income taxes 32.3 0.1 61.2 — 93.6 Net Income $ 176.0 $ 49.5 $ 115.1 $ (164.6 ) $ 176.0 Other comprehensive income (loss), net of tax 2.1 0.2 (0.9 ) 0.7 2.1 Comprehensive Income $ 178.1 $ 49.7 $ 114.2 $ (163.9 ) $ 178.1 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 1,503.9 $ 639.3 $ 5,314.2 $ (3,727.7 ) $ 3,729.7 Cost of products sold 1,187.4 582.6 4,220.5 (3,726.4 ) 2,264.1 Gross Profit 316.5 56.7 1,093.7 (1.3 ) 1,465.6 Selling, distribution, and administrative expenses and other special project costs 171.4 20.9 575.6 — 767.9 Amortization 5.1 — 98.4 — 103.5 Other operating expense (income) – net 0.3 (0.3 ) (2.9 ) — (2.9 ) Operating Income 139.7 36.1 422.6 (1.3 ) 597.1 Interest (expense) income – net (83.0 ) 0.6 (0.1 ) — (82.5 ) Other income – net 1.1 2.7 0.5 — 4.3 Equity in net earnings of subsidiaries 306.0 72.8 38.8 (417.6 ) — Income Before Income Taxes 363.8 112.2 461.8 (418.9 ) 518.9 Income taxes 16.5 0.2 154.9 — 171.6 Net Income $ 347.3 $ 112.0 $ 306.9 $ (418.9 ) $ 347.3 Other comprehensive (loss) income, net of tax (7.7 ) 0.6 (23.6 ) 23.0 (7.7 ) Comprehensive Income $ 339.6 $ 112.6 $ 283.3 $ (395.9 ) $ 339.6 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Six Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net sales $ 1,588.0 $ 639.9 $ 4,550.1 $ (2,748.3 ) $ 4,029.7 Cost of products sold 1,239.7 586.5 3,436.9 (2,749.4 ) 2,513.7 Gross Profit 348.3 53.4 1,113.2 1.1 1,516.0 Selling, distribution, and administrative expenses and other special project costs 124.9 20.8 685.2 — 830.9 Amortization 2.1 — 103.9 — 106.0 Other operating (income) expense – net (0.1 ) 0.4 (2.1 ) — (1.8 ) Operating Income 221.4 32.2 326.2 1.1 580.9 Interest (expense) income – net (87.4 ) 0.6 (0.2 ) — (87.0 ) Other income (expense) – net 3.5 0.1 (5.1 ) — (1.5 ) Equity in net earnings of subsidiaries 223.2 65.2 32.3 (320.7 ) — Income Before Income Taxes 360.7 98.1 353.2 (319.6 ) 492.4 Income taxes 48.3 0.2 131.5 — 180.0 Net Income $ 312.4 $ 97.9 $ 221.7 $ (319.6 ) $ 312.4 Other comprehensive (loss) income, net of tax (19.0 ) 0.5 (23.2 ) 22.7 (19.0 ) Comprehensive Income $ 293.4 $ 98.4 $ 198.5 $ (296.9 ) $ 293.4 |
CONDENSED CONSOLIDATING BALANCE SHEETS | CONDENSED CONSOLIDATING BALANCE SHEETS October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 11.4 $ — $ 110.4 $ — $ 121.8 Inventories — 152.4 877.2 (1.2 ) 1,028.4 Other current assets 596.8 2.9 68.2 (12.9 ) 655.0 Total Current Assets 608.2 155.3 1,055.8 (14.1 ) 1,805.2 Property, Plant, and Equipment – Net 291.8 572.0 722.9 — 1,586.7 Investments in Subsidiaries 15,376.8 4,390.7 371.0 (20,138.5 ) — Intercompany Receivable — 475.0 1,728.5 (2,203.5 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,585.2 — 6,080.0 Other intangible assets – net 423.1 — 5,964.2 — 6,387.3 Other noncurrent assets 55.9 11.9 131.2 — 199.0 Total Other Noncurrent Assets 1,973.8 11.9 10,680.6 — 12,666.3 Total Assets $ 18,250.6 $ 5,604.9 $ 14,558.8 $ (22,356.1 ) $ 16,058.2 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 815.3 $ 102.2 $ 401.7 $ (12.9 ) $ 1,306.3 Noncurrent Liabilities Long-term debt 4,945.4 — — — 4,945.4 Deferred income taxes 69.9 — 2,175.1 — 2,245.0 Intercompany payable 4,904.9 — — (4,904.9 ) — Other noncurrent liabilities 335.0 17.9 28.5 — 381.4 Total Noncurrent Liabilities 10,255.2 17.9 2,203.6 (4,904.9 ) 7,571.8 Total Liabilities 11,070.5 120.1 2,605.3 (4,917.8 ) 8,878.1 Total Shareholders’ Equity 7,180.1 5,484.8 11,953.5 (17,438.3 ) 7,180.1 Total Liabilities and Shareholders’ Equity $ 18,250.6 $ 5,604.9 $ 14,558.8 $ (22,356.1 ) $ 16,058.2 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.0 $ — $ 102.8 $ — $ 109.8 Inventories — 143.2 752.0 4.2 899.4 Other current assets 497.3 5.9 71.9 (10.9 ) 564.2 Total Current Assets 504.3 149.1 926.7 (6.7 ) 1,573.4 Property, Plant, and Equipment – Net 296.3 587.0 744.4 — 1,627.7 Investments in Subsidiaries 15,092.2 4,317.9 331.6 (19,741.7 ) — Intercompany Receivable — 404.7 1,543.9 (1,948.6 ) — Other Noncurrent Assets Goodwill 1,494.8 — 4,596.3 — 6,091.1 Other intangible assets – net 428.3 — 6,066.1 — 6,494.4 Other noncurrent assets 57.4 10.4 129.7 — 197.5 Total Other Noncurrent Assets 1,980.5 10.4 10,792.1 — 12,783.0 Total Assets $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 723.3 $ 78.9 $ 421.6 $ (10.8 ) $ 1,213.0 Noncurrent Liabilities Long-term debt 5,146.0 — — — 5,146.0 Deferred income taxes 60.7 — 2,169.6 — 2,230.3 Intercompany payable 4,644.7 — — (4,644.7 ) — Other noncurrent liabilities 290.1 17.9 78.3 — 386.3 Total Noncurrent Liabilities 10,141.5 17.9 2,247.9 (4,644.7 ) 7,762.6 Total Liabilities 10,864.8 96.8 2,669.5 (4,655.5 ) 8,975.6 Total Shareholders’ Equity 7,008.5 5,372.3 11,669.2 (17,041.5 ) 7,008.5 Total Liabilities and Shareholders’ Equity $ 17,873.3 $ 5,469.1 $ 14,338.7 $ (21,697.0 ) $ 15,984.1 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended October 31, 2016 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 22.4 $ 87.9 $ 265.0 $ — $ 375.3 Investing Activities Additions to property, plant, and equipment (17.0 ) (18.8 ) (48.2 ) — (84.0 ) Proceeds from disposal of property, plant, and equipment — — 0.4 — 0.4 (Disbursements of) repayments from intercompany loans — (70.3 ) (189.9 ) 260.2 — Other – net (0.1 ) 1.2 (13.8 ) — (12.7 ) Net Cash (Used for) Provided by Investing Activities (17.1 ) (87.9 ) (251.5 ) 260.2 (96.3 ) Financing Activities Short-term borrowings – net 122.0 — — — 122.0 Repayments of long-term debt (200.0 ) — — — (200.0 ) Quarterly dividends paid (164.9 ) — — — (164.9 ) Purchase of treasury shares (18.8 ) — — — (18.8 ) Intercompany payable 260.2 — — (260.2 ) — Other – net 0.6 — — — 0.6 Net Cash Used for Financing Activities (0.9 ) — — (260.2 ) (261.1 ) Effect of exchange rate changes on cash — — (5.9 ) — (5.9 ) Net increase in cash and cash equivalents 4.4 — 7.6 — 12.0 Cash and cash equivalents at beginning of period 7.0 — 102.8 — 109.8 Cash and Cash Equivalents at End of Period $ 11.4 $ — $ 110.4 $ — $ 121.8 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Six Months Ended October 31, 2015 The J.M. Smucker Company (Parent) Subsidiary Guarantors Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by Operating Activities $ 104.3 $ 73.2 $ 405.0 $ — $ 582.5 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Additions to property, plant, and equipment (56.3 ) (20.3 ) (40.8 ) — (117.4 ) Proceeds from disposal of property, plant, and equipment — 0.1 0.1 — 0.2 (Disbursements of) repayments from intercompany loans — (53.3 ) (368.0 ) 421.3 — Other – net — 0.3 13.0 — 13.3 Net Cash (Used for) Provided by Investing Activities (56.3 ) (73.2 ) (387.8 ) 421.3 (96.0 ) Financing Activities Short-term borrowings – net 144.0 — — — 144.0 Repayments of long-term debt (450.0 ) — — — (450.0 ) Quarterly dividends paid (156.5 ) — — — (156.5 ) Purchase of treasury shares (7.4 ) — — — (7.4 ) Intercompany payable 421.3 — — (421.3 ) — Other – net 0.5 — — — 0.5 Net Cash Used for Financing Activities (48.1 ) — — (421.3 ) (469.4 ) Effect of exchange rate changes on cash — — (3.7 ) — (3.7 ) Net increase in cash and cash equivalents (0.1 ) — 13.5 — 13.4 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 7.0 $ — $ 132.0 $ — $ 139.0 |
Acquisition (Details Textual)
Acquisition (Details Textual) - USD ($) $ in Millions | Mar. 23, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Apr. 30, 2016 | |
Acquisitions (Textual) [Abstract] | |||||
Common shares outstanding | 120,000,000 | 116,435,507 | 116,306,894 | ||
Cash payments for acquisitions | $ 0 | $ (7.9) | |||
Long-term debt | [1] | 4,945.4 | $ 5,146 | ||
Goodwill | 6,080 | $ 6,091.1 | |||
Big Heart [Member] | |||||
Acquisitions (Textual) [Abstract] | |||||
Business acquisition consideration given | $ 5,900 | ||||
Shares issued to shareholders of acquiree | 17,900,000 | ||||
Value of shares issued to shareholders of acquiree | $ 2,000 | ||||
Business acquisition debt assumed | 2,600 | ||||
Cash payments for acquisitions | 1,200 | ||||
Long-term debt | 5,500 | ||||
Goodwill deductible for tax purposes | $ 63.5 | ||||
Total intangible assets, excluding goodwill, from acquisitions | 3,800 | ||||
Goodwill | $ 3,000 | ||||
[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. |
Integration and Restructuring33
Integration and Restructuring Costs Integration and Restructuring Costs (Details Textual) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016USD ($) | Oct. 31, 2015USD ($) | Oct. 31, 2016USD ($)leasePosition | Oct. 31, 2015USD ($) | Apr. 30, 2016USD ($) | |
Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 275 | $ 275 | |||
Restructuring and Related Cost, Expected Noncash Charge | 50 | 50 | |||
Restructuring and Related Cost, Incurred Cost | 22.6 | $ 33.7 | 42.8 | $ 58.5 | |
Restructuring and Related Cost, Incurred Noncash Charge | 1.4 | 7 | |||
Restructuring and Related Cost, Cost Incurred to Date | 224 | 224 | |||
Restructuring and Related Cost, Noncash Charge Incurred to Date | 31.6 | 31.6 | |||
Employee Severance [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 120 | 120 | |||
Restructuring and Related Cost, Incurred Cost | 6.3 | 13.2 | |||
Restructuring and Related Cost, Cost Incurred to Date | 79 | 79 | |||
Restructuring Reserve | 6.3 | 6.3 | $ 13.4 | ||
Outside Services and Consulting [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 100 | 100 | |||
Restructuring and Related Cost, Incurred Cost | 12.3 | 18.4 | |||
Restructuring and Related Cost, Cost Incurred to Date | 90.5 | 90.5 | |||
Other Restructuring [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 55 | 55 | |||
Restructuring and Related Cost, Incurred Cost | 4 | 11.2 | |||
Restructuring and Related Cost, Cost Incurred to Date | 54.5 | 54.5 | |||
Organization Optimization Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 40 | 40 | |||
Restructuring and Related Cost, Expected Noncash Charge | 8 | 8 | |||
Restructuring and Related Cost, Incurred Cost | 4.3 | 10.3 | |||
Restructuring and Related Cost, Cost Incurred to Date | 11.6 | 11.6 | |||
Restructuring and Related Cost, Noncash Charge Incurred to Date | 1 | $ 1 | |||
Restructuring and Related Costs, Number of Leases Exited | lease | 2 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Position | 125 | ||||
Organization Optimization Program [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 3.3 | $ 7.3 | |||
Restructuring and Related Cost, Cost Incurred to Date | 8.6 | 8.6 | |||
Restructuring Reserve | 3.6 | 3.6 | $ 1.3 | ||
Organization Optimization Program [Member] | Outside Services and Consulting [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 0.6 | 1.7 | |||
Restructuring and Related Cost, Cost Incurred to Date | 1.7 | 1.7 | |||
Organization Optimization Program [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 0.4 | 1.3 | |||
Restructuring and Related Cost, Cost Incurred to Date | 1.3 | 1.3 | |||
Minimum [Member] | Organization Optimization Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost Remaining | 15 | 15 | |||
Maximum [Member] | Organization Optimization Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost Remaining | $ 17 | $ 17 |
Divestiture Divestiture (Detail
Divestiture Divestiture (Details Textual) - U.S. Canned Milk Business [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 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 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | ||||
Net sales: | |||||||
Net sales | $ 1,913.9 | $ 2,077.7 | $ 3,729.7 | $ 4,029.7 | |||
Segment profit: | |||||||
Segment profit | 471.6 | 478.3 | 918.5 | 924.4 | |||
Amortization | (51.8) | (53) | (103.5) | (106) | |||
Interest expense – net | (41) | (42.6) | (82.5) | (87) | |||
Unallocated derivative (losses) gains | (14.2) | 6 | (6.5) | (4) | |||
Cost of products sold – special project costs (A) | (0.3) | [1] | (3) | [1] | (4.3) | (6.1) | |
Other special project costs (A) | [2] | (26.6) | (30.6) | (48.8) | (53.5) | ||
Corporate administrative expenses | (75.4) | (83.9) | (158.3) | (173.9) | |||
Other income (expense) – net | 3.2 | (1.6) | 4.3 | (1.5) | |||
Income Before Income Taxes | 265.5 | 269.6 | 518.9 | 492.4 | |||
U.S. Retail Coffee [Member] | |||||||
Net sales: | |||||||
Net sales | 551.8 | 586.1 | 1,065.1 | 1,151.1 | |||
Segment profit: | |||||||
Segment profit | 186.5 | 180.4 | 360.3 | 354.2 | |||
U.S. Retail Consumer Foods [Member] | |||||||
Net sales: | |||||||
Net sales | 557.3 | 644 | 1,094.3 | 1,226.2 | |||
Segment profit: | |||||||
Segment profit | 118.9 | 127.3 | 230.3 | 246.7 | |||
U.S. Retail Pet Foods [Member] | |||||||
Net sales: | |||||||
Net sales | 531 | 566.7 | 1,050.5 | 1,116.6 | |||
Segment profit: | |||||||
Segment profit | 114.5 | 115 | 236.7 | 231.8 | |||
International and Foodservice [Member] | |||||||
Net sales: | |||||||
Net sales | 273.8 | 280.9 | 519.8 | 535.8 | |||
Segment profit: | |||||||
Segment profit | $ 51.7 | $ 55.6 | $ 91.2 | $ 91.7 | |||
[1] | Special project costs include merger and integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. | ||||||
[2] | Other special project costs include merger and integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. |
Reportable Segments (Details Te
Reportable Segments (Details Textual) | 6 Months Ended |
Oct. 31, 2016IndustrySegment | |
Segment Reporting Information [Line Items] | |
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 | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 177.3 | $ 176 | $ 347.3 | $ 312.4 |
Less: Net income allocated to participating securities | 0.8 | 0.8 | 1.6 | 1.4 |
Net income allocated to common stockholders | $ 176.5 | $ 175.2 | $ 345.7 | $ 311 |
Weighted-average common shares outstanding (in shares) | 115,885,448 | 119,159,257 | 115,845,261 | 119,124,508 |
Add: Dilutive effect of stock options (in shares) | 123,608 | 10,276 | 132,332 | 11,740 |
Weighted-average common shares outstanding - assuming dilution (in shares) | 116,009,056 | 119,169,533 | 115,977,593 | 119,136,248 |
Net income per common share (in dollars per share) | $ 1.52 | $ 1.47 | $ 2.98 | $ 2.61 |
Net Income - Assuming Dilution (in dollars per share) | $ 1.52 | $ 1.47 | $ 2.98 | $ 2.61 |
Debt and Financing Arrangemen38
Debt and Financing Arrangements (Details) - USD ($) | Oct. 31, 2016 | Apr. 30, 2016 | Mar. 31, 2015 | |
Long-term debt | ||||
Debt instrument face amount | $ 4,950,000,000 | $ 5,150,000,000 | ||
Long-term debt | [1] | $ 4,945,400,000 | $ 5,146,000,000 | |
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] | $ 498,500,000 | $ 498,000,000 | |
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] | $ 496,000,000 | $ 495,500,000 | |
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] | $ 786,000,000 | $ 789,400,000 | |
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] | $ 396,300,000 | $ 395,900,000 | |
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] | $ 993,100,000 | $ 992,700,000 | |
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] | $ 642,500,000 | $ 642,200,000 | |
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] | 584,600,000 | 584,400,000 | |
Term Loan Credit Agreement due March 23, 2020 [Member] | ||||
Long-term debt | ||||
Debt instrument face amount | 550,000,000 | 750,000,000 | $ 1,800,000,000 | |
Term loan credit agreement carrying value | [1] | $ 548,400,000 | $ 747,900,000 | |
[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 Arrangemen39
Debt and Financing Arrangements (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 19 Months Ended | ||||
Oct. 31, 2016USD ($)Bank | Oct. 31, 2015USD ($) | Oct. 31, 2016USD ($)Bank | Oct. 31, 2015USD ($) | Apr. 30, 2015USD ($) | Oct. 31, 2016USD ($)Bank | Apr. 30, 2016USD ($) | Mar. 31, 2015USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | ||||||||
Debt instrument face amount | $ 4,950,000,000 | $ 4,950,000,000 | $ 4,950,000,000 | $ 5,150,000,000 | ||||
Repayments of long-term debt | $ 200,000,000 | $ 450,000,000 | ||||||
Number of banks | Bank | 11 | 11 | 11 | |||||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | $ 0 | 0 | ||||
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 | $ 77,700,000 | $ 78,400,000 | $ 81,300,000 | $ 85,600,000 | ||||
Short-term borrowings | 406,000,000 | 406,000,000 | $ 406,000,000 | 284,000,000 | ||||
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 | $ 550,000,000 | $ 550,000,000 | $ 550,000,000 | $ 750,000,000 | $ 1,800,000,000 | |||
Weighted average interest rate on long-term debt | 1.78% | 1.78% | 1.78% | |||||
Repayments of long-term debt | $ 100,000,000 | $ 200,000,000 | $ 1,200,000,000 | |||||
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 | $ 40,100,000 | |||||||
Commercial Paper [Member] | ||||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||||
Commercial paper weighted-average interest rate | 0.65% | 0.65% | 0.65% | 0.65% | ||||
Commercial paper, borrowing capacity | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | |||||
Short-term borrowings | $ 406,000,000 | $ 406,000,000 | $ 406,000,000 | $ 284,000,000 | ||||
Fair Value Hedging [Member] | ||||||||
Outstanding derivative contracts | ||||||||
Gain (loss) on early termination agreement | $ 58,100,000 |
Pensions and Other Postretire40
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2016 | Jul. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Components of net periodic benefit cost | |||||
Plan amendment change in AOCI | $ (25.2) | ||||
Defined Benefit Pension Plans [Member] | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 3.6 | $ 4.4 | $ 7.7 | $ 9.1 | |
Interest cost | 6.2 | 6.9 | 12.9 | 13.9 | |
Expected return on plan assets | (7.3) | (8.3) | (14.6) | (16.7) | |
Recognized net actuarial loss (gain) | 3.4 | 2.7 | 7.1 | 5.4 | |
Prior service cost (credit) | 0.3 | 0.2 | 0.6 | 0.4 | |
Curtailment gain | 0 | (0.8) | 0 | (4.5) | |
Settlement Loss | 0.1 | 0 | |||
Net periodic benefit cost | 6.2 | 5.1 | 13.8 | 7.6 | |
Other Postretirement Benefits [Member] | |||||
Components of net periodic benefit cost | |||||
Service cost | 0.6 | 0.5 | 1.2 | 1.1 | |
Interest cost | 0.6 | 0.7 | 1.3 | 1.4 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Recognized net actuarial loss (gain) | (0.1) | (0.1) | (0.1) | (0.1) | |
Prior service cost (credit) | (0.3) | (0.2) | (0.7) | (0.5) | |
Curtailment gain | 0 | (0.1) | 0 | (0.1) | |
Settlement Loss | 0 | 0 | |||
Net periodic benefit cost | $ 0.8 | $ 0.8 | $ 1.7 | $ 1.8 |
Derivative Financial Instrume41
Derivative Financial Instruments (Details) - Not designated as hedging instruments [Member] - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 26.8 | $ 20.5 |
Other Current Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 23.8 | 20.3 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 3 | 0.2 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 27.6 | 23 |
Other Current Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 26.7 | 14.1 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.9 | 8.9 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.1 | 2.3 |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.1 | 2 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0.3 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.1 | 1.6 |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.1 | 1.2 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0.4 |
Derivative Financial Instrume42
Derivative Financial Instruments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 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 | $ (10.2) | $ (7.6) | $ (12.2) | $ (18.3) |
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 | (12.9) | (7.9) | (20.7) | (26.9) |
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 | $ 2.7 | $ 0.3 | $ 8.5 | $ 8.6 |
Derivative Financial Instrume43
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
Price Risk Derivatives [Abstract] | ||||
Net losses on mark-to-market valuation of unallocated derivative positions | $ (10.2) | $ (7.6) | $ (12.2) | $ (18.3) |
Net (gains) losses on derivative positions reclassified to segment operating profit | (4) | 13.6 | 5.7 | 14.3 |
Unallocated derivative (losses) gains | $ (14.2) | $ 6 | $ (6.5) | $ (4) |
Derivative Financial Instrume44
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 |
Commodity contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 1,114.6 | $ 545.7 |
Foreign currency exchange contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 225.4 | $ 212.5 |
Derivative Financial Instrume45
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | Apr. 30, 2016 | Apr. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | $ 1.9 | $ 3.8 | ||||
Derivative Financial Instruments (Additional Textual) [Abstract] | ||||||
Cash margin accounts related to derivative instruments recognized | 16.1 | 16.1 | $ 3.4 | |||
Cumulative realized net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ (7.9) | |||||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | (14.9) | (8.4) | ||||
Fair Value Hedging [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Gain (loss) on early termination agreement | $ 58.1 | |||||
Commodity contracts [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Derivative instrument maturity | 1 year | |||||
Gross contract notional amount | 1,114.6 | $ 1,114.6 | 545.7 | |||
Foreign currency exchange contracts [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Derivative instrument maturity | 1 year | |||||
Gross contract notional amount | 225.4 | $ 225.4 | 212.5 | |||
Interest rate contract [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (7.3) | (7.3) | (7.6) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 2.7 | 2.7 | $ 2.7 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | $ 0.6 | |||||
Gain (loss) on early termination agreement | $ 4.6 | |||||
Total Through Q2 2017 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 13.4 | |||||
2017 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 3.8 | |||||
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 | |||||
3.50% Senior Notes due October 15, 2021 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on notes | 3.50% | 3.50% | 3.50% | |||
Interest Expense [Member] | Interest rate contract [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | $ (0.2) | $ (0.2) | $ (0.3) | $ (0.3) |
Other Financial Instruments a46
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 |
Carrying Amount [Member] | ||
Carrying amount and fair value of financial instruments | ||
Marketable securities and other investments | $ 47.5 | $ 48.8 |
Derivative financial instruments – net | (0.8) | (1.8) |
Long-term debt | (4,945.4) | (5,146) |
Fair Value [Member] | ||
Carrying amount and fair value of financial instruments | ||
Marketable securities and other investments | 47.5 | 48.8 |
Derivative financial instruments – net | (0.8) | (1.8) |
Long-term debt | $ (5,158.4) | $ (5,319.9) |
Other Financial Instruments a47
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (5,158.4) | $ (5,319.9) |
Total financial instruments measured at fair value | (5,111.7) | (5,272.9) | |
Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 10.3 | 9.8 |
Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 35.8 | 37.6 |
Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 1.4 | 1.4 |
Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (2.9) | 7 |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 2.1 | (8.8) |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (4,607.8) | (4,569) |
Total financial instruments measured at fair value | (4,595.6) | (4,544.5) | |
Fair Value, Inputs, Level 1 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 10.3 | 9.8 |
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] | 1.4 | 1.4 |
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] | 0.1 | 15 |
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] | 0.4 | (1.7) |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (550.6) | (750.9) |
Total financial instruments measured at fair value | (516.1) | (728.4) | |
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] | 35.8 | 37.6 |
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] | (3) | (8) |
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] | 1.7 | (7.1) |
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 8: Debt and Financing Arrangements. | ||
[2] | Marketable securities and 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 that 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 October 31, 2016, our municipal obligations are scheduled to mature as follows: $0.5 in 2017, $1.0 in 2018, $2.3 in 2019, $2.2 in 2020, and the remaining $29.8 in 2021 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 a48
Other Financial Instruments and Fair Value Measurements (Details Textual) $ in Millions | 6 Months Ended |
Oct. 31, 2016USD ($) | |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2017 | $ 0.5 |
Company's Municipal bond mature in 2018 | 1 |
Company's Municipal bond mature in 2019 | 2.3 |
Company's Municipal bond mature in 2020 | 2.2 |
Company's Municipal bond mature in 2021 and beyond | $ 29.8 |
Money market funds maturity period | three months or less |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | 6 Months Ended |
Oct. 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 | $ 5 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (148.4) | $ (109.8) | |
Reclassification adjustments | 9.4 | 7.6 | |
Current period (charge) credit | (7) | (25) | |
Income tax benefit (expense) | (10.1) | (1.6) | |
Accumulated Other Comprehensive Loss, Ending Balance | (156.1) | (128.8) | |
Foreign Currency Translation Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | (13.1) | (2.3) | |
Reclassification adjustments | 0 | 0 | |
Current period (charge) credit | (26.2) | (22.9) | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Loss, Ending Balance | (39.3) | (25.2) | |
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] | (4.8) | (5.2) |
Reclassification adjustments | [1] | 0.3 | 0.3 |
Current period (charge) credit | [1] | 0 | 0 |
Income tax benefit (expense) | [1] | (0.1) | (0.1) |
Accumulated Other Comprehensive Loss, Ending Balance | [1] | (4.6) | (5) |
Pension and Other Postretirement Liabilities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | [2] | (134.1) | (105.6) |
Reclassification adjustments | [2] | 9.1 | 7.3 |
Current period (charge) credit | [2] | 18.8 | (1.5) |
Income tax benefit (expense) | [2] | (9.9) | (1.7) |
Accumulated Other Comprehensive Loss, Ending Balance | [2] | (116.1) | (101.5) |
Unrealized Gain on Available-for-Sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | 3.6 | 3.3 | |
Reclassification adjustments | 0 | 0 | |
Current period (charge) credit | 0.4 | (0.6) | |
Income tax benefit (expense) | (0.1) | 0.2 | |
Accumulated Other Comprehensive Loss, Ending Balance | $ 3.9 | $ 2.9 | |
[1] | The reclassification from accumulated other comprehensive loss to interest expense was related to the termination of prior interest rate swaps. | ||
[2] | Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Common Shares (Details)
Common Shares (Details) - shares | 6 Months Ended | ||
Oct. 31, 2016 | Apr. 30, 2016 | Mar. 23, 2015 | |
Stockholders' Equity Note [Abstract] | |||
Stock Repurchased During Period, Shares | 0 | ||
Common Shares Information | |||
Common shares authorized | 300,000,000 | 300,000,000 | |
Common shares outstanding | 116,435,507 | 116,306,894 | 120,000,000 |
Treasury shares | 30,062,223 | 30,190,836 | |
Common Shares (Additional Textual) [Abstract] | |||
Shares remaining for repurchase | 6,600,000 |
Guarantor and Non-Guarantor F52
Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2016 | Oct. 31, 2015 | Oct. 31, 2016 | Oct. 31, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | $ 1,913.9 | $ 2,077.7 | $ 3,729.7 | $ 4,029.7 |
Cost of products sold | 1,171 | 1,290.4 | 2,264.1 | 2,513.7 |
Gross Profit | 742.9 | 787.3 | 1,465.6 | 1,516 |
Selling, distribution, and administrative expenses and other special project costs | 389.7 | 420.4 | 767.9 | 830.9 |
Amortization | 51.8 | 53 | 103.5 | 106 |
Other operating (income) expense – net | (1.9) | 0.1 | (2.9) | (1.8) |
Operating Income | 303.3 | 313.8 | 597.1 | 580.9 |
Interest (expense) income - net | (41) | (42.6) | (82.5) | (87) |
Other income (expense) – net | 3.2 | (1.6) | 4.3 | (1.5) |
Equity in net earnings of subsidiaries | 0 | 0 | 0 | 0 |
Income Before Income Taxes | 265.5 | 269.6 | 518.9 | 492.4 |
Income taxes | 88.2 | 93.6 | 171.6 | 180 |
Net Income | 177.3 | 176 | 347.3 | 312.4 |
Other comprehensive (loss) income, net of tax | (10.2) | 2.1 | (7.7) | (19) |
Comprehensive Income (Loss) | 167.1 | 178.1 | 339.6 | 293.4 |
Eliminations [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | (1,657) | (1,407.3) | (3,727.7) | (2,748.3) |
Cost of products sold | (1,670.9) | (1,408.8) | (3,726.4) | (2,749.4) |
Gross Profit | 13.9 | 1.5 | (1.3) | 1.1 |
Selling, distribution, and administrative expenses and other special project costs | 0 | 0 | 0 | 0 |
Amortization | 0 | 0 | 0 | 0 |
Other operating (income) expense – net | 0 | 0 | 0 | 0 |
Operating Income | 13.9 | 1.5 | (1.3) | 1.1 |
Interest (expense) income - net | 0 | 0 | 0 | 0 |
Other income (expense) – net | 0 | 0 | 0 | 0 |
Equity in net earnings of subsidiaries | (227.5) | (166.1) | (417.6) | (320.7) |
Income Before Income Taxes | (213.6) | (164.6) | (418.9) | (319.6) |
Income taxes | 0 | 0 | 0 | 0 |
Net Income | (213.6) | (164.6) | (418.9) | (319.6) |
Other comprehensive (loss) income, net of tax | 9.8 | 0.7 | 23 | 22.7 |
Comprehensive Income (Loss) | (203.8) | (163.9) | (395.9) | (296.9) |
The J.M. Smucker Company (Parent) [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 527.9 | 827.2 | 1,503.9 | 1,588 |
Cost of products sold | 380.8 | 629.8 | 1,187.4 | 1,239.7 |
Gross Profit | 147.1 | 197.4 | 316.5 | 348.3 |
Selling, distribution, and administrative expenses and other special project costs | 86.5 | 62.7 | 171.4 | 124.9 |
Amortization | 2.6 | 1 | 5.1 | 2.1 |
Other operating (income) expense – net | 0.1 | 0 | 0.3 | (0.1) |
Operating Income | 57.9 | 133.7 | 139.7 | 221.4 |
Interest (expense) income - net | (41.3) | (42.8) | (83) | (87.4) |
Other income (expense) – net | (1) | 0.6 | 1.1 | 3.5 |
Equity in net earnings of subsidiaries | 171.5 | 116.8 | 306 | 223.2 |
Income Before Income Taxes | 187.1 | 208.3 | 363.8 | 360.7 |
Income taxes | 9.8 | 32.3 | 16.5 | 48.3 |
Net Income | 177.3 | 176 | 347.3 | 312.4 |
Other comprehensive (loss) income, net of tax | (10.2) | 2.1 | (7.7) | (19) |
Comprehensive Income (Loss) | 167.1 | 178.1 | 339.6 | 293.4 |
Subsidiary Guarantors [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 328.7 | 341.7 | 639.3 | 639.9 |
Cost of products sold | 302.7 | 314.3 | 582.6 | 586.5 |
Gross Profit | 26 | 27.4 | 56.7 | 53.4 |
Selling, distribution, and administrative expenses and other special project costs | 10.8 | 10.2 | 20.9 | 20.8 |
Amortization | 0 | 0 | 0 | 0 |
Other operating (income) expense – net | (0.3) | 0 | (0.3) | 0.4 |
Operating Income | 15.5 | 17.2 | 36.1 | 32.2 |
Interest (expense) income - net | 0.3 | 0.3 | 0.6 | 0.6 |
Other income (expense) – net | 2.6 | 0.1 | 2.7 | 0.1 |
Equity in net earnings of subsidiaries | 37.9 | 32 | 72.8 | 65.2 |
Income Before Income Taxes | 56.3 | 49.6 | 112.2 | 98.1 |
Income taxes | 0.1 | 0.1 | 0.2 | 0.2 |
Net Income | 56.2 | 49.5 | 112 | 97.9 |
Other comprehensive (loss) income, net of tax | 0.3 | 0.2 | 0.6 | 0.5 |
Comprehensive Income (Loss) | 56.5 | 49.7 | 112.6 | 98.4 |
Non-Guarantor Subsidiaries [Member] | ||||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | 2,714.3 | 2,316.1 | 5,314.2 | 4,550.1 |
Cost of products sold | 2,158.4 | 1,755.1 | 4,220.5 | 3,436.9 |
Gross Profit | 555.9 | 561 | 1,093.7 | 1,113.2 |
Selling, distribution, and administrative expenses and other special project costs | 292.4 | 347.5 | 575.6 | 685.2 |
Amortization | 49.2 | 52 | 98.4 | 103.9 |
Other operating (income) expense – net | (1.7) | 0.1 | (2.9) | (2.1) |
Operating Income | 216 | 161.4 | 422.6 | 326.2 |
Interest (expense) income - net | 0 | (0.1) | (0.1) | (0.2) |
Other income (expense) – net | 1.6 | (2.3) | 0.5 | (5.1) |
Equity in net earnings of subsidiaries | 18.1 | 17.3 | 38.8 | 32.3 |
Income Before Income Taxes | 235.7 | 176.3 | 461.8 | 353.2 |
Income taxes | 78.3 | 61.2 | 154.9 | 131.5 |
Net Income | 157.4 | 115.1 | 306.9 | 221.7 |
Other comprehensive (loss) income, net of tax | (10.1) | (0.9) | (23.6) | (23.2) |
Comprehensive Income (Loss) | $ 147.3 | $ 114.2 | $ 283.3 | $ 198.5 |
Guarantor and Non-Guarantor F53
Guarantor and Non-Guarantor Financial Information (Details 1) - USD ($) $ in Millions | Oct. 31, 2016 | Apr. 30, 2016 | Oct. 31, 2015 | Apr. 30, 2015 | |
Current Assets | |||||
Cash and cash equivalents | $ 121.8 | $ 109.8 | $ 139 | $ 125.6 | |
Inventories | 1,028.4 | 899.4 | |||
Other current assets | 655 | 564.2 | |||
Total Current Assets | 1,805.2 | 1,573.4 | |||
Property, Plant, and Equipment - Net | 1,586.7 | 1,627.7 | |||
Investments in Subsidiaries | 0 | 0 | |||
Intercompany Receivable | 0 | 0 | |||
Other Noncurrent Assets | |||||
Goodwill | 6,080 | 6,091.1 | |||
Other intangible assets – net | 6,387.3 | 6,494.4 | |||
Other noncurrent assets | 199 | 197.5 | |||
Total Other Noncurrent Assets | 12,666.3 | 12,783 | |||
Total Assets | 16,058.2 | 15,984.1 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 1,306.3 | 1,213 | |||
Noncurrent Liabilities | |||||
Long-term debt | [1] | 4,945.4 | 5,146 | ||
Deferred income taxes | 2,245 | 2,230.3 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 381.4 | 386.3 | |||
Total Noncurrent Liabilities | 7,571.8 | 7,762.6 | |||
Total Liabilities | 8,878.1 | 8,975.6 | |||
Total Shareholders’ Equity | 7,180.1 | 7,008.5 | |||
Total Liabilities and Shareholders’ Equity | 16,058.2 | 15,984.1 | |||
Eliminations [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Inventories | (1.2) | 4.2 | |||
Other current assets | (12.9) | (10.9) | |||
Total Current Assets | (14.1) | (6.7) | |||
Property, Plant, and Equipment - Net | 0 | 0 | |||
Investments in Subsidiaries | (20,138.5) | (19,741.7) | |||
Intercompany Receivable | (2,203.5) | (1,948.6) | |||
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 | (22,356.1) | (21,697) | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | (12.9) | (10.8) | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Intercompany payable | (4,904.9) | (4,644.7) | |||
Other noncurrent liabilities | 0 | 0 | |||
Total Noncurrent Liabilities | (4,904.9) | (4,644.7) | |||
Total Liabilities | (4,917.8) | (4,655.5) | |||
Total Shareholders’ Equity | (17,438.3) | (17,041.5) | |||
Total Liabilities and Shareholders’ Equity | (22,356.1) | (21,697) | |||
The J.M. Smucker Company (Parent) [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 11.4 | 7 | 7 | 7.1 | |
Inventories | 0 | 0 | |||
Other current assets | 596.8 | 497.3 | |||
Total Current Assets | 608.2 | 504.3 | |||
Property, Plant, and Equipment - Net | 291.8 | 296.3 | |||
Investments in Subsidiaries | 15,376.8 | 15,092.2 | |||
Intercompany Receivable | 0 | 0 | |||
Other Noncurrent Assets | |||||
Goodwill | 1,494.8 | 1,494.8 | |||
Other intangible assets – net | 423.1 | 428.3 | |||
Other noncurrent assets | 55.9 | 57.4 | |||
Total Other Noncurrent Assets | 1,973.8 | 1,980.5 | |||
Total Assets | 18,250.6 | 17,873.3 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 815.3 | 723.3 | |||
Noncurrent Liabilities | |||||
Long-term debt | 4,945.4 | 5,146 | |||
Deferred income taxes | 69.9 | 60.7 | |||
Intercompany payable | 4,904.9 | 4,644.7 | |||
Other noncurrent liabilities | 335 | 290.1 | |||
Total Noncurrent Liabilities | 10,255.2 | 10,141.5 | |||
Total Liabilities | 11,070.5 | 10,864.8 | |||
Total Shareholders’ Equity | 7,180.1 | 7,008.5 | |||
Total Liabilities and Shareholders’ Equity | 18,250.6 | 17,873.3 | |||
Subsidiary Guarantors [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 0 | 0 | 0 | 0 | |
Inventories | 152.4 | 143.2 | |||
Other current assets | 2.9 | 5.9 | |||
Total Current Assets | 155.3 | 149.1 | |||
Property, Plant, and Equipment - Net | 572 | 587 | |||
Investments in Subsidiaries | 4,390.7 | 4,317.9 | |||
Intercompany Receivable | 475 | 404.7 | |||
Other Noncurrent Assets | |||||
Goodwill | 0 | 0 | |||
Other intangible assets – net | 0 | 0 | |||
Other noncurrent assets | 11.9 | 10.4 | |||
Total Other Noncurrent Assets | 11.9 | 10.4 | |||
Total Assets | 5,604.9 | 5,469.1 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 102.2 | 78.9 | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 0 | 0 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 17.9 | 17.9 | |||
Total Noncurrent Liabilities | 17.9 | 17.9 | |||
Total Liabilities | 120.1 | 96.8 | |||
Total Shareholders’ Equity | 5,484.8 | 5,372.3 | |||
Total Liabilities and Shareholders’ Equity | 5,604.9 | 5,469.1 | |||
Non-Guarantor Subsidiaries [Member] | |||||
Current Assets | |||||
Cash and cash equivalents | 110.4 | 102.8 | $ 132 | $ 118.5 | |
Inventories | 877.2 | 752 | |||
Other current assets | 68.2 | 71.9 | |||
Total Current Assets | 1,055.8 | 926.7 | |||
Property, Plant, and Equipment - Net | 722.9 | 744.4 | |||
Investments in Subsidiaries | 371 | 331.6 | |||
Intercompany Receivable | 1,728.5 | 1,543.9 | |||
Other Noncurrent Assets | |||||
Goodwill | 4,585.2 | 4,596.3 | |||
Other intangible assets – net | 5,964.2 | 6,066.1 | |||
Other noncurrent assets | 131.2 | 129.7 | |||
Total Other Noncurrent Assets | 10,680.6 | 10,792.1 | |||
Total Assets | 14,558.8 | 14,338.7 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||
Current Liabilities | 401.7 | 421.6 | |||
Noncurrent Liabilities | |||||
Long-term debt | 0 | 0 | |||
Deferred income taxes | 2,175.1 | 2,169.6 | |||
Intercompany payable | 0 | 0 | |||
Other noncurrent liabilities | 28.5 | 78.3 | |||
Total Noncurrent Liabilities | 2,203.6 | 2,247.9 | |||
Total Liabilities | 2,605.3 | 2,669.5 | |||
Total Shareholders’ Equity | 11,953.5 | 11,669.2 | |||
Total Liabilities and Shareholders’ Equity | $ 14,558.8 | $ 14,338.7 | |||
[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 F54
Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 31, 2016 | Oct. 31, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by Operating Activities | $ 375.3 | $ 582.5 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | 7.9 |
Additions to property, plant, and equipment | (84) | (117.4) |
Proceeds from disposal of property, plant, and equipment | 0.4 | 0.2 |
(Disbursements of) repayments from intercompany loans | 0 | 0 |
Other – net | (12.7) | 13.3 |
Net Cash Used for Investing Activities | (96.3) | (96) |
Financing Activities | ||
Short-term borrowings – net | 122 | 144 |
Repayments of long-term debt | (200) | (450) |
Quarterly dividends paid | (164.9) | (156.5) |
Purchase of treasury shares | (18.8) | (7.4) |
Intercompany payable | 0 | 0 |
Other – net | 0.6 | 0.5 |
Net Cash Used for Financing Activities | (261.1) | (469.4) |
Effect of exchange rate changes on cash | (5.9) | (3.7) |
Net increase (decrease) in cash and cash equivalents | 12 | 13.4 |
Cash and cash equivalents at beginning of period | 109.8 | 125.6 |
Cash and Cash Equivalents at End of Period | 121.8 | 139 |
Eliminations [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by Operating Activities | 0 | 0 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | |
Additions to property, plant, and equipment | 0 | 0 |
Proceeds from disposal of property, plant, and equipment | 0 | 0 |
(Disbursements of) repayments from intercompany loans | 260.2 | 421.3 |
Other – net | 0 | 0 |
Net Cash Used for Investing Activities | 260.2 | 421.3 |
Financing Activities | ||
Short-term borrowings – net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 0 |
Intercompany payable | (260.2) | (421.3) |
Other – net | 0 | 0 |
Net Cash Used for Financing Activities | (260.2) | (421.3) |
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 Operating Activities | 22.4 | 104.3 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | |
Additions to property, plant, and equipment | (17) | (56.3) |
Proceeds from disposal of property, plant, and equipment | 0 | 0 |
(Disbursements of) repayments from intercompany loans | 0 | 0 |
Other – net | (0.1) | 0 |
Net Cash Used for Investing Activities | (17.1) | (56.3) |
Financing Activities | ||
Short-term borrowings – net | 122 | 144 |
Repayments of long-term debt | (200) | (450) |
Quarterly dividends paid | (164.9) | (156.5) |
Purchase of treasury shares | (18.8) | (7.4) |
Intercompany payable | 260.2 | 421.3 |
Other – net | 0.6 | 0.5 |
Net Cash Used for Financing Activities | (0.9) | (48.1) |
Effect of exchange rate changes on cash | 0 | 0 |
Net increase (decrease) in cash and cash equivalents | 4.4 | (0.1) |
Cash and cash equivalents at beginning of period | 7 | 7.1 |
Cash and Cash Equivalents at End of Period | 11.4 | 7 |
Subsidiary Guarantors [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | ||
Net Cash Provided by Operating Activities | 87.9 | 73.2 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | |
Additions to property, plant, and equipment | (18.8) | (20.3) |
Proceeds from disposal of property, plant, and equipment | 0 | 0.1 |
(Disbursements of) repayments from intercompany loans | (70.3) | (53.3) |
Other – net | 1.2 | 0.3 |
Net Cash Used for Investing Activities | (87.9) | (73.2) |
Financing Activities | ||
Short-term borrowings – net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 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 Operating Activities | 265 | 405 |
Investing Activities | ||
Business acquired, net of cash acquired | 7.9 | |
Additions to property, plant, and equipment | (48.2) | (40.8) |
Proceeds from disposal of property, plant, and equipment | 0.4 | 0.1 |
(Disbursements of) repayments from intercompany loans | (189.9) | (368) |
Other – net | (13.8) | 13 |
Net Cash Used for Investing Activities | (251.5) | (387.8) |
Financing Activities | ||
Short-term borrowings – net | 0 | 0 |
Repayments of long-term debt | 0 | 0 |
Quarterly dividends paid | 0 | 0 |
Purchase of treasury shares | 0 | 0 |
Intercompany payable | 0 | 0 |
Other – net | 0 | 0 |
Net Cash Used for Financing Activities | 0 | 0 |
Effect of exchange rate changes on cash | (5.9) | (3.7) |
Net increase (decrease) in cash and cash equivalents | 7.6 | 13.5 |
Cash and cash equivalents at beginning of period | 102.8 | 118.5 |
Cash and Cash Equivalents at End of Period | $ 110.4 | $ 132 |
Guarantor and Non-Guarantor F55
Guarantor and Non-Guarantor Financial Information (Details Textual) | Oct. 31, 2016 |
Guarantor and Non Guarantor Financial Information (Textual) [Abstract] | |
Percentage ownership of wholly-owned subsidiaries | 100.00% |