Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2017 | Nov. 15, 2017 | |
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, 2017 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 113,597,554 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Income Statement [Abstract] | |||||
Net sales | $ 1,923.6 | $ 1,913.9 | $ 3,672.5 | $ 3,729.7 | |
Cost of products sold | 1,168.6 | 1,171 | 2,255.4 | 2,264.1 | |
Gross Profit | 755 | 742.9 | 1,417.1 | 1,465.6 | |
Selling, distribution, and administrative expenses | 360.9 | 363.1 | 711.1 | 719.1 | |
Amortization | 51.6 | 51.8 | 103.1 | 103.5 | |
Other special project costs | [1],[2] | 9.7 | 26.6 | 36.8 | 48.8 |
Other operating expense (income) – net | 2.1 | (1.9) | 1.6 | (2.9) | |
Operating Income | 330.7 | 303.3 | 564.5 | 597.1 | |
Interest expense – net | (41.6) | (41) | (83.6) | (82.5) | |
Other income (expense) – net | 2.7 | 3.2 | (0.1) | 4.3 | |
Income Before Income Taxes | 291.8 | 265.5 | 480.8 | 518.9 | |
Income taxes | 97.2 | 88.2 | 159.4 | 171.6 | |
Net Income | $ 194.6 | $ 177.3 | $ 321.4 | $ 347.3 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 1.71 | $ 1.52 | $ 2.83 | $ 2.98 | |
Net Income - Assuming Dilution (in dollars per share) | 1.71 | 1.52 | 2.83 | 2.98 | |
Dividends Declared per Common Share (in dollars per share) | $ 0.78 | $ 0.75 | $ 1.56 | $ 1.50 | |
[1] | Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. | ||||
[2] | Special project costs includes 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, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 194.6 | $ 177.3 | $ 321.4 | $ 347.3 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (13.1) | (11.2) | 21.9 | (26.2) |
Cash flow hedging derivative activity, net of tax | 0.8 | 0.1 | 2.4 | 0.2 |
Pension and other postretirement benefit plans activity, net of tax | 5.9 | 0.8 | 5.7 | 18 |
Available-for-sale securities activity, net of tax | (0.6) | 0.1 | (0.3) | 0.3 |
Total Other Comprehensive Income (Loss) | (7) | (10.2) | 29.7 | (7.7) |
Comprehensive Income | $ 187.6 | $ 167.1 | $ 351.1 | $ 339.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 31, 2017 | Apr. 30, 2017 | |
Current Assets | |||
Cash and cash equivalents | $ 180.3 | $ 166.8 | |
Trade receivables, less allowance for doubtful accounts | 481.6 | 438.7 | |
Inventories: | |||
Finished products | 655.2 | 562.4 | |
Raw materials | 356.5 | 343.3 | |
Total Inventory | 1,011.7 | 905.7 | |
Other current assets | 112.2 | 130.6 | |
Total Current Assets | 1,785.8 | 1,641.8 | |
Property, Plant, and Equipment | |||
Land and land improvements | 121.3 | 115.6 | |
Buildings and fixtures | 805.7 | 766.2 | |
Machinery and equipment | 2,045.8 | 1,983 | |
Construction in progress | 104.9 | 116.9 | |
Gross Property, Plant, and Equipment | 3,077.7 | 2,981.7 | |
Accumulated depreciation | (1,462) | (1,364.2) | |
Total Property, Plant, and Equipment | 1,615.7 | 1,617.5 | |
Other Noncurrent Assets | |||
Goodwill | 6,086.5 | 6,077.1 | |
Other intangible assets – net | 6,051.1 | 6,149.9 | |
Other noncurrent assets | 162.9 | 153.4 | |
Total Other Noncurrent Assets | 12,300.5 | 12,380.4 | |
Total Assets | 15,702 | 15,639.7 | |
Current Liabilities | |||
Accounts payable | 507.4 | 477.2 | |
Accrued trade marketing and merchandising | 138.2 | 106 | |
Current portion of long-term debt | [1] | 499.6 | 499 |
Short-term borrowings | 463.9 | 454 | |
Other current liabilities | 245.4 | 296.4 | |
Total Current Liabilities | 1,854.5 | 1,832.6 | |
Noncurrent Liabilities | |||
Long-term debt, less current portion | [1] | 4,294.1 | 4,445.5 |
Deferred income taxes | 2,172.2 | 2,167 | |
Other noncurrent liabilities | 344.9 | 344.4 | |
Total Noncurrent Liabilities | 6,811.2 | 6,956.9 | |
Total Liabilities | 8,665.7 | 8,789.5 | |
Shareholders’ Equity | |||
Common shares | 28.4 | 28.4 | |
Additional capital | 5,737.8 | 5,724.7 | |
Retained income | 1,383.8 | 1,240.5 | |
Accumulated other comprehensive income (loss) | (113.7) | (143.4) | |
Total Shareholders’ Equity | 7,036.3 | 6,850.2 | |
Total Liabilities and Shareholders’ Equity | $ 15,702 | $ 15,639.7 | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated 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, 2017 | Oct. 31, 2016 | |
Operating Activities | ||
Net income | $ 321.4 | $ 347.3 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Depreciation | 105.1 | 107 |
Amortization | 103.1 | 103.5 |
Share-based compensation expense | 12.7 | 15.1 |
Other noncash adjustments | 2.3 | 1.4 |
Defined benefit pension contributions | (0.8) | (1.3) |
Changes in assets and liabilities, net of effect from businesses acquired: | ||
Trade receivables | (41.5) | (69.9) |
Inventories | (103.6) | (132.7) |
Other current assets | 19.4 | 4.8 |
Accounts payable | 54.7 | (5.5) |
Accrued liabilities | 3.3 | 23.3 |
Income and other taxes | (46.8) | (38.6) |
Other – net | 5.3 | 20.9 |
Net Cash Provided by (Used for) Operating Activities | 434.6 | 375.3 |
Investing Activities | ||
Additions to property, plant, and equipment | (130) | (84) |
Other – net | 23.7 | (12.3) |
Net Cash Provided by (Used for) Investing Activities | (106.3) | (96.3) |
Financing Activities | ||
Short-term borrowings (repayments) – net | 10 | 122 |
Repayments of long-term debt | (150) | (200) |
Quarterly dividends paid | (173.4) | (164.9) |
Purchase of treasury shares | (6.7) | (18.8) |
Other – net | (1.1) | 0.6 |
Net Cash Provided by (Used for) Financing Activities | (321.2) | (261.1) |
Effect of exchange rate changes on cash | 6.4 | (5.9) |
Net increase (decrease) in cash and cash equivalents | 13.5 | 12 |
Cash and cash equivalents at beginning of period | 166.8 | 109.8 |
Cash and Cash Equivalents at End of Period | $ 180.3 | $ 121.8 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2017 | |
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, 2017 , are not necessarily indicative of the results that may be expected for the year ending April 30, 2018. 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, 2017 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Oct. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities , which simplifies the application of hedge accounting and enables companies to better portray the economics of their risk management activities in their financial statements . ASU 2017-12 is effective for us on May 1, 2019, but we have elected to early adopt during the second quarter of 2018, as permitted. Early adoption of this ASU had an overall immaterial impact on our condensed consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the service cost component of the net periodic pension cost to be presented separately from the other components of the net periodic pension cost in the income statement. Additionally, only the service cost component of the net periodic pension cost is eligible for capitalization. ASU 2017-07 will be effective for us on May 1, 2019, with the option to early adopt at any time prior to the effective date. The change in presentation of service cost must be applied retrospectively, while the capitalization of service cost must be applied on a prospective basis. We do not anticipate that the adoption of this ASU will have a material impact on our consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test and requires an impairment charge to be recorded based on the excess of a reporting unit's carrying value over its fair value. ASU 2017-04 will be effective for us on May 1, 2020, with the option to early adopt for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and will require adoption on a prospective basis. In October 2016, the FASB issued 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, and 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 do not anticipate that the adoption of this ASU will have a material impact on our consolidated 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, and it will require adoption on a retrospective basis. We do not anticipate that the adoption of this ASU will have a material impact on the presentation of our consolidated financial statements and disclosures. 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. It will require a modified retrospective application for leases existing at, or entered into after, the beginning of the earliest comparative period presented and will exclude any leases that expired before the date of initial application . We are currently compiling an inventory of our lease arrangements in order to determine the impact the new guidance will have on our consolidated financial statements and disclosures. We are also in the process of evaluating lease accounting software as we prepare for the standard's additional reporting requirements. Based on our assessment to date, we expect the adoption of ASU 2016-02 will result in a significant increase in lease-related assets and liabilities in our Consolidated Balance Sheets, but we are unable to quantify the impact at this time. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of the new guidance is that an entity must recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It requires additional disclosures to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. ASU 2014-09 requires either full retrospective application to each prior reporting period presented or modified 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's effective date by one year . As a result of this issuance, the standard will be effective for us on May 1, 2018. Our plan to implement the standard is on track. With the involvement of a cross-functional team, we performed a detailed review of the new guidance as compared to our current policies to identify any potential accounting differences. We then reviewed contracts from each of our significant revenue streams to determine the validity of our initial conclusions. We have not identified any accounting changes that would materially impact our consolidated financial statements, and therefore we intend to utilize the modified retrospective transition method. |
Acquisition
Acquisition | 6 Months Ended |
Oct. 31, 2017 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition On May 30, 2017, we announced a definitive agreement to acquire the Wesson ® oil brand from Conagra Brands, Inc. (“Conagra”). The all-cash transaction, which is expected to be funded primarily with debt, is valued at approximately $ 285.0 , subject to a post-closing working capital adjustment. We anticipate the addition of the Wesson brand will add annual net sales of approximately $ 230.0 . The transaction is subject to certain customary closing conditions, including the termination or expiration of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 (the “HSR Act”). On August 28, 2017, both parties received a request for additional information under the HSR Act (a “second request”) from the U.S. Federal Trade Commission (“FTC”) in connection with the FTC's review of the transaction. Issuance of the second request extends the waiting period under the HSR Act until 30 days after both parties have substantially complied with the request, or as the parties otherwise agree, unless the waiting period is terminated earlier by the FTC. The agreement to acquire the Wesson brand provides that, unless otherwise agreed upon by both parties, if the closing of the transaction has not occurred on or prior to March 31, 2018, because HSR approval has not been received as of such date, then either party may terminate the agreement. Following the close of the transaction, Conagra will continue to manufacture products sold under the Wesson brand and provide certain other transition services for up to one year. After the transition period, we expect to consolidate Wesson production into our existing oils manufacturing facility in Cincinnati, Ohio. |
Integration and Restructuring C
Integration and Restructuring Costs | 6 Months Ended |
Oct. 31, 2017 | |
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 certain acquisition or restructuring activities. 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 relocation costs 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 acquisition of Big Heart Pet Brands (“Big Heart”) are anticipated to be approximately $290.0 , and will be incurred through 2018. Of the total anticipated one-time costs, we expect to incur $100.0 , $120.0 , and $70.0 in employee-related costs, outside service and consulting costs, and other costs, respectively. The following table summarizes our one-time costs incurred related to the Big Heart acquisition. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2017 2017 2016 2017 2016 Employee-related costs $ 2.5 $ 6.3 $ 6.2 $ 13.2 $ 88.3 Outside service and consulting costs 1.7 12.3 7.5 18.4 113.5 Other costs 3.6 4.0 5.2 11.2 62.4 Total one-time costs $ 7.8 $ 22.6 $ 18.9 $ 42.8 $ 264.2 Noncash charges of $1.2 and $2.5 were included in the one-time costs incurred during the three and six months ended October 31, 2017 , respectively, and $1.4 and $7.0 during the three and six months ended October 31, 2016 , respectively. Noncash charges included in total one-time costs incurred to date were $30.3 , which primarily consisted of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.5 and $5.3 at October 31, 2017 and April 30, 2017, respectively. Restructuring Costs: An organization optimization program was approved by the Board of Directors during the fourth quarter of 2016. Under this program, we identified opportunities to reduce costs and optimize the organization, which we expect to achieve by the end of 2018. Related projects include an organizational redesign and the optimization of our manufacturing footprint. During 2017, we exited two leased facilities in Livermore, California, and consolidated all ancient grains and pasta production into our facility in Chico, California. The consolidation of all coffee production at our Harahan, Louisiana, facility into one of our facilities in New Orleans, Louisiana, was nearly complete at the end of the second quarter of 2018. Upon completion of these initiatives, the organization optimization program will result in total headcount reductions of approximately 275 full-time positions, of which approximately 90 percent were reduced as of October 31, 2017 . Upon completion of this program in 2018, total restructuring costs are expected to be approximately $45.0 , of which the majority represents employee-related costs, while the remainder primarily consists of site preparation, equipment relocation, and production start-up costs at the impacted facilities. The following table summarizes our one-time costs incurred related to the organization optimization program. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2017 2017 2016 2017 2016 Employee-related costs $ 1.2 $ 3.3 $ 11.6 $ 7.3 $ 25.3 Outside service and consulting costs 0.1 0.6 0.2 1.7 2.0 Other costs 1.5 0.4 7.7 1.3 12.1 Total one-time costs $ 2.8 $ 4.3 $ 19.5 $ 10.3 $ 39.4 Noncash charges of $0.8 and $ 6.9 were included in the one-time costs incurred during the three and six months ended October 31, 2017 , respectively, and $0.1 and $1.0 during the three and six months ended October 31, 2016 , respectively. Noncash charges included in total one-time costs incurred to date were $9.0 , and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $ 3.3 at both October 31, 2017 and April 30, 2017. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments We operate in one industry: the manufacturing and marketing of food and beverage products. We have four reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, U.S. Retail Pet Foods, and International and Away From Home. During the second quarter of 2018, we added the International and Away From Home reportable segment, as a single segment manager was named to oversee the entire operating segment. Prior year segment results have not been modified, as the new reportable segment represents the previously reported combination of the International and Away From Home strategic business areas, which were previously managed separately. 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 ® , and Nature’s Recipe ® branded products. The International and Away From Home segment 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, amortization expense and impairment charges related to intangible assets, integration and restructuring costs, as well as unallocated gains and losses on commodity and foreign currency exchange derivative activities. Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures. Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Net sales: U.S. Retail Coffee $ 552.7 $ 551.8 $ 1,033.5 $ 1,065.1 U.S. Retail Consumer Foods 531.5 557.3 1,023.9 1,094.3 U.S. Retail Pet Foods 552.1 531.0 1,073.8 1,050.5 International and Away From Home 287.3 273.8 541.3 519.8 Total net sales $ 1,923.6 $ 1,913.9 $ 3,672.5 $ 3,729.7 Segment profit: U.S. Retail Coffee $ 152.6 $ 186.5 $ 276.4 $ 360.3 U.S. Retail Consumer Foods 130.9 118.9 241.8 230.3 U.S. Retail Pet Foods 122.9 114.5 221.2 236.7 International and Away From Home 53.7 51.7 92.0 91.2 Total segment profit $ 460.1 $ 471.6 $ 831.4 $ 918.5 Amortization (51.6 ) (51.8 ) (103.1 ) (103.5 ) Interest expense – net (41.6 ) (41.0 ) (83.6 ) (82.5 ) Unallocated derivative gains (losses) 9.7 (14.2 ) 22.3 (6.5 ) Cost of products sold – special project costs (A) (0.9 ) (0.3 ) (1.6 ) (4.3 ) Other special project costs (A) (9.7 ) (26.6 ) (36.8 ) (48.8 ) Corporate administrative expenses (76.9 ) (75.4 ) (147.7 ) (158.3 ) Other income (expense) – net 2.7 3.2 (0.1 ) 4.3 Income before income taxes $ 291.8 $ 265.5 $ 480.8 $ 518.9 (A) Special project costs includes 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, 2017 | |
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, 2017 2016 2017 2016 Net income $ 194.6 $ 177.3 $ 321.4 $ 347.3 Less: Net income allocated to participating securities 1.1 0.8 1.7 1.6 Net income allocated to common stockholders $ 193.5 $ 176.5 $ 319.7 $ 345.7 Weighted-average common shares outstanding 113.0 115.9 113.0 115.9 Add: Dilutive effect of stock options — 0.1 — 0.1 Weighted-average common shares outstanding – assuming dilution 113.0 116.0 113.0 116.0 Net income per common share $ 1.71 $ 1.52 $ 2.83 $ 2.98 Net income per common share – assuming dilution $ 1.71 $ 1.52 $ 2.83 $ 2.98 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following: October 31, 2017 April 30, 2017 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 499.6 $ 500.0 $ 499.0 2.50% Senior Notes due March 15, 2020 500.0 497.2 500.0 496.6 3.50% Senior Notes due October 15, 2021 750.0 779.0 750.0 782.6 3.00% Senior Notes due March 15, 2022 400.0 397.0 400.0 396.6 3.50% Senior Notes due March 15, 2025 1,000.0 994.0 1,000.0 993.6 4.25% Senior Notes due March 15, 2035 650.0 642.9 650.0 642.6 4.38% Senior Notes due March 15, 2045 600.0 585.2 600.0 584.9 Term Loan Credit Agreement due March 23, 2020 400.0 398.8 550.0 548.6 Total long-term debt $ 4,800.0 $ 4,793.7 $ 4,950.0 $ 4,944.5 Current portion of long-term debt 500.0 499.6 500.0 499.0 Total long-term debt, less current portion $ 4,300.0 $ 4,294.1 $ 4,450.0 $ 4,445.5 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated interest rate swaps, offering discounts, and capitalized debt issuance costs. In September 2017, we entered into an unsecured revolving credit facility with a group of 11 banks, which provides for a revolving credit line of $1.8 billion and matures in September 2022. Additionally, we terminated the previous $1.5 billion credit facility. The new revolving credit facility includes $4.1 of capitalized debt issuance costs, which will be amortized to interest expense over the time for which the revolving credit facility is effective. Borrowings under the revolving credit facility bear interest on the prevailing U.S. Prime Rate, London Interbank Offered 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. We did no t have a balance outstanding under the current and previous revolving credit facilities at October 31, 2017 and April 30, 2017, respectively. As a result of the termination of the previous $1.5 billion credit facility, and because there are no subsidiary guarantors of the new $1.8 billion credit facility, the guarantees provided by the Company's subsidiaries, J. M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”), related to the obligations under the senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) and all of our outstanding Senior Notes were released. For additional information, see Note 15: Guarantor and Non-Guarantor Financial Information. In June 2017, we entered into a treasury lock, with a notional value of $300.0 , to manage our exposure to interest rate volatility associated with anticipated debt financing in 2018. This interest rate contract is designated as a cash flow hedge, and as a result, the mark-to-market gains or losses on the contract are deferred and included as a component of accumulated other comprehensive income (loss) and reclassified to interest expense in the period during which the hedged transaction affects earnings. At October 31, 2017 , an unrealized gain of $3.5 was deferred in accumulated other comprehensive income (loss) for this derivative instrument. For additional information, see Note 9: Derivative Financial Instruments. Furthermore, in the second quarter of 2018, we early adopted ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities , which did not have a material impact on our condensed consolidated financial statements and disclosures. For further details, refer to Note 2: Recently Issued Accounting Standards. In March 2015, we entered into the 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 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, 2017 , was 2.49 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, 2017 , we have prepaid $1.4 billion on the Term Loan to date, including $150.0 in the second quarter and first six months of 2018, and therefore no additional payments are required until final maturity of the loan agreement on March 23, 2020. As a result of entering into the unsecured revolving credit facility in September 2017, we also amended the Term Loan to make certain changes to the representations and warranties, as well as the financial covenants. 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 are unsecured, and interest is paid semiannually, with no required scheduled principal payments until maturity. We may prepay 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, 2017 , the remaining benefit of $32.4 was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt. For additional information, see Note 9: Derivative Financial Instruments. We participate in a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $1.8 billion at any time, which was increased from the previous limit of $1.0 billion in conjunction with entering into the new unsecured revolving credit facility in September 2017. 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, 2017 and April 30, 2017, we had $463.9 and $454.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 1.41 percent and 1.15 percent , respectively. Interest paid totaled $78.9 and $77.7 for the three months ended October 31, 2017 and 2016 , respectively, and $83.5 and $81.3 for the six months ended October 31, 2017 and 2016 , respectively. This differs from interest expense due to the timing of payments, effect of interest rate contracts, 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, 2017 | |
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 2017 2016 2017 2016 Service cost $ 1.7 $ 3.6 $ 0.5 $ 0.6 Interest cost 5.4 6.2 0.6 0.6 Expected return on plan assets (7.2 ) (7.3 ) — — Amortization of net actuarial loss (gain) 2.8 3.4 (0.1 ) (0.1 ) Amortization of prior service cost (credit) 0.3 0.3 (0.4 ) (0.3 ) Net periodic benefit cost $ 3.0 $ 6.2 $ 0.6 $ 0.8 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2017 2016 2017 2016 Service cost $ 3.4 $ 7.7 $ 1.0 $ 1.2 Interest cost 10.8 12.9 1.1 1.3 Expected return on plan assets (14.4 ) (14.6 ) — — Amortization of net actuarial loss (gain) 5.7 7.1 (0.2 ) (0.1 ) Amortization of prior service cost (credit) 0.5 0.6 (0.7 ) (0.7 ) Settlement loss — 0.1 — — Net periodic benefit cost $ 6.0 $ 13.8 $ 1.2 $ 1.7 As of April 30, 2017, we changed the approach utilized to estimate the service and interest cost components of net periodic benefit cost for our defined benefit pension and other postretirement benefit plans. Historically, we estimated the service and interest cost components using a single weighted-average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the period. As of April 30, 2017, we utilized a spot rate approach for the estimation of service and interest cost for our plans by applying specific spot rates along the yield curve to the relevant projected cash flows to provide a better estimate of service and interest costs. This approach does not affect the measurement of the total benefit obligations, and has been accounted for as a change in estimate that is effected by a change in accounting principle. As such, we accounted for this change in methodology on a prospective basis beginning May 1, 2017. Service and interest costs on the obligation are expected to be $4.3 lower in 2018, primarily related to the defined benefit pension plans, as a result of using the spot rate approach compared to the historical approach. During the first quarter of 2017, we announced our plans to harmonize our retirement benefits and freeze our non-union U.S. defined benefit pension plans by December 31, 2017. The amendments resulted in an immaterial net settlement loss and a decrease in accumulated other comprehensive income (loss) of $25.2 at July 31, 2016. As a result of the plan changes, we expect to realize additional future savings upon completion of these changes, which will be complete by the end of calendar year 2017. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 31, 2017 | |
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. In the second quarter of 2018, we early adopted ASU 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities , which did not have a material impact on our condensed consolidated financial statements and disclosures. For further details, refer to Note 2: Recently Issued Accounting Standards. 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, edible oils, corn, 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 contracts 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 contract are deferred and included as a component of accumulated other comprehensive income (loss) 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 contract is recognized at fair value on the balance sheet and changes in the fair value are recognized in interest expense. Generally, changes in the fair value of the contract are equal to changes in the fair value of the underlying debt and have no impact on earnings. During the three and six months ended October 31, 2017 , interest expense - net, as presented in the Condensed Statements of Consolidated Income, was $41.6 and $83.6 , respectively. In June 2017, we entered into a treasury lock, with a notional value of $300.0 , to manage our exposure to interest rate volatility associated with anticipated debt financing in 2018. This interest rate contract is designated as a cash flow hedge, and as a result, an unrealized gain of $3.5 was deferred in accumulated other comprehensive income (loss) at October 31, 2017 . In 2015, we terminated the 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 interest expense. To date, we have recognized $21.1 , of which $2.0 and $3.9 was recognized during the three and six months ended October 31, 2017 , respectively. The remaining gain will be recognized as follows: $3.9 through the remainder of 2018, $8.0 in 2019, $8.1 in 2020, $8.4 in 2021, and $4.0 in 2022. For additional information, see Note 7: Debt and Financing Arrangements. The following tables set forth the gross fair value amounts of derivative instruments recognized in the Condensed Consolidated Balance Sheets. October 31, 2017 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives designated as hedging instruments: Interest rate contract $ 3.5 $ — $ — $ — Total derivatives designated as hedging instruments $ 3.5 $ — $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 6.9 $ 9.0 $ — $ — Foreign currency exchange contracts 1.2 1.8 0.5 0.1 Total derivatives not designated as hedging instruments $ 8.1 $ 10.8 $ 0.5 $ 0.1 Total derivative instruments $ 11.6 $ 10.8 $ 0.5 $ 0.1 April 30, 2017 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 5.2 $ 21.2 $ — $ — Foreign currency exchange contracts 3.2 0.1 — — Total derivative instruments $ 8.4 $ 21.3 $ — $ — 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, 2017 and April 30, 2017 , we maintained cash margin account balances of $18.1 and $41.8 , 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 the three and six months ended October 31, 2017 , unrealized gains of $1.0 and $3.5 , respectively, were deferred in accumulated other comprehensive income (loss) for the interest rate contract entered into in June 2017. During both of the three-month periods ended October 31, 2017 and 2016 , 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, 2017 and 2016 , 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 income (loss) at October 31, 2017 and April 30, 2017 , were deferred net pre-tax losses of $3.2 and $7.0 , respectively, related to the active and terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) was $1.2 and $2.6 at October 31, 2017 and April 30, 2017 , respectively. Approximately $0.3 of the net pre-tax loss will be recognized over the next 12 months related to the terminated and active interest rate contracts. 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 October 31, Six Months Ended October 31, 2017 2016 2017 2016 Gains (losses) on commodity contracts $ (13.9 ) $ (12.9 ) $ 2.5 $ (20.7 ) Gains (losses) on foreign currency exchange contracts 4.3 2.7 (5.2 ) 8.5 Total gains (losses) recognized in cost of products sold $ (9.6 ) $ (10.2 ) $ (2.7 ) $ (12.2 ) Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (9.6 ) $ (10.2 ) $ (2.7 ) $ (12.2 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (19.3 ) 4.0 (25.0 ) (5.7 ) Unallocated derivative gains (losses) $ 9.7 $ (14.2 ) $ 22.3 $ (6.5 ) The net cumulative unallocated derivative losses at October 31, 2017 and April 30, 2017, were $13.3 and $35.6 , respectively. The following table presents the gross contract notional value of outstanding derivative contracts. October 31, 2017 April 30, 2017 Commodity contracts $ 394.1 $ 704.9 Foreign currency exchange contracts 164.1 195.4 Interest rate contract 300.0 — |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 31, 2017 | |
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 remaining 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, 2017 April 30, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 47.6 $ 47.6 $ 47.3 $ 47.3 Derivative financial instruments – net 1.2 1.2 (12.9 ) (12.9 ) Long-term debt (4,793.7 ) (4,911.8 ) (4,944.5 ) (5,023.8 ) 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, 2017 Marketable securities and other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.5 — 37.5 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net (2.5 ) 0.4 — (2.1 ) Foreign currency exchange contracts – net (0.1 ) (0.1 ) — (0.2 ) Interest rate contract — 3.5 — 3.5 Long-term debt (C) (4,511.4 ) (400.4 ) — (4,911.8 ) Total financial instruments measured at fair value $ (4,503.9 ) $ (359.1 ) $ — $ (4,863.0 ) 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, 2017 Marketable securities and other investments: (A) Equity mutual funds $ 1.1 $ — $ — $ 1.1 Municipal obligations — 34.7 — 34.7 Money market funds 11.5 — — 11.5 Derivative financial instruments: (B) Commodity contracts – net (15.8 ) (0.2 ) — (16.0 ) Foreign currency exchange contracts – net 0.3 2.8 — 3.1 Long-term debt (C) (4,473.2 ) (550.6 ) — (5,023.8 ) Total financial instruments measured at fair value $ (4,476.1 ) $ (513.3 ) $ — $ (4,989.4 ) (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, 2017 , our municipal obligations are scheduled to mature as follows: $0.7 in 2018, $2.3 in 2019, $1.7 in 2020, $5.0 in 2021, and the remaining $27.8 in 2022 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. The Level 2 interest rate contract is valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract valuation are limited to prices that are observable for the asset or liability. For additional information, see Note 9: Derivative Financial Instruments. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes During the three-month and six-month periods ended October 31, 2017 and 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. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $6.7 , primarily as a result of expiring statute of limitations periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Oct. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2017 $ (43.0 ) $ (4.4 ) $ (100.0 ) $ 4.0 $ (143.4 ) Reclassification adjustments — 0.3 5.3 — 5.6 Current period credit (charge) 21.9 3.5 3.3 (0.5 ) 28.2 Income tax benefit (expense) — (1.4 ) (2.9 ) 0.2 (4.1 ) Balance at October 31, 2017 $ (21.1 ) $ (2.0 ) $ (94.3 ) $ 3.7 $ (113.7 ) Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (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 credit (charge) (26.2 ) — 18.8 0.4 (7.0 ) Income tax benefit (expense) — (0.1 ) (9.9 ) (0.1 ) (10.1 ) Balance at October 31, 2016 $ (39.3 ) $ (4.6 ) $ (116.1 ) $ 3.9 $ (156.1 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to the termination of prior interest rate swaps. The current period credit relates to the unrealized gain on the interest rate contract entered into in June 2017. For additional information, see Note 9: Derivative Financial Instruments. (B) Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to selling, distribution, and administrative expenses. |
Contingencies
Contingencies | 6 Months Ended |
Oct. 31, 2017 | |
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 losses 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, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | Common Shares The following table sets forth common share information. October 31, 2017 April 30, 2017 Common shares authorized 300.0 300.0 Common shares outstanding 113.6 113.4 Treasury shares 32.9 33.1 Share repurchases during the first six months of 2018 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 2018 under a repurchase plan authorized by the Board of Directors (“Board”). At October 31, 2017 , we had approximately 3.6 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, 2017 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Guarantor and Non-Guarantor Financial Information In September 2017, we terminated the revolving credit facility that was entered into in September 2013, and as a result, the guarantees provided by the subsidiary guarantors were released. In addition, the subsidiary guarantors are not guarantors under the new $1.8 billion revolving credit facility. As a result, the guarantees of the subsidiary guarantors, in respect to the obligations under the Term Loan and all of our outstanding Senior Notes, were released in accordance with the terms of the amended Term Loan agreement and the indentures governing such notes, as applicable. As the Senior Notes were not guaranteed as of October 31, 2017, the condensed consolidated financial statements are not provided for the subsidiary guarantors. For additional information, see Note 7: Debt and Financing Arrangements. |
Recently Issued Accounting St21
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Oct. 31, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Recently Issued Accounting Standards In August 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2017-12, Derivatives and Hedging (Topic 815) Targeted Improvements to Accounting for Hedging Activities , which simplifies the application of hedge accounting and enables companies to better portray the economics of their risk management activities in their financial statements . ASU 2017-12 is effective for us on May 1, 2019, but we have elected to early adopt during the second quarter of 2018, as permitted. Early adoption of this ASU had an overall immaterial impact on our condensed consolidated financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the service cost component of the net periodic pension cost to be presented separately from the other components of the net periodic pension cost in the income statement. Additionally, only the service cost component of the net periodic pension cost is eligible for capitalization. ASU 2017-07 will be effective for us on May 1, 2019, with the option to early adopt at any time prior to the effective date. The change in presentation of service cost must be applied retrospectively, while the capitalization of service cost must be applied on a prospective basis. We do not anticipate that the adoption of this ASU will have a material impact on our consolidated financial statements and disclosures. In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment , which eliminates Step 2 from the goodwill impairment test and requires an impairment charge to be recorded based on the excess of a reporting unit's carrying value over its fair value. ASU 2017-04 will be effective for us on May 1, 2020, with the option to early adopt for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017, and will require adoption on a prospective basis. In October 2016, the FASB issued 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, and 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 do not anticipate that the adoption of this ASU will have a material impact on our consolidated 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, and it will require adoption on a retrospective basis. We do not anticipate that the adoption of this ASU will have a material impact on the presentation of our consolidated financial statements and disclosures. 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. It will require a modified retrospective application for leases existing at, or entered into after, the beginning of the earliest comparative period presented and will exclude any leases that expired before the date of initial application . We are currently compiling an inventory of our lease arrangements in order to determine the impact the new guidance will have on our consolidated financial statements and disclosures. We are also in the process of evaluating lease accounting software as we prepare for the standard's additional reporting requirements. Based on our assessment to date, we expect the adoption of ASU 2016-02 will result in a significant increase in lease-related assets and liabilities in our Consolidated Balance Sheets, but we are unable to quantify the impact at this time. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . The core principle of the new guidance is that an entity must recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It requires additional disclosures to enable users to understand the nature, amount, timing, and uncertainty of revenue and cash flows relating to customer contracts. ASU 2014-09 requires either full retrospective application to each prior reporting period presented or modified 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's effective date by one year . As a result of this issuance, the standard will be effective for us on May 1, 2018. Our plan to implement the standard is on track. With the involvement of a cross-functional team, we performed a detailed review of the new guidance as compared to our current policies to identify any potential accounting differences. We then reviewed contracts from each of our significant revenue streams to determine the validity of our initial conclusions. We have not identified any accounting changes that would materially impact our consolidated financial statements, and therefore we intend to utilize the modified retrospective transition method. |
Integration and Restructuring22
Integration and Restructuring Costs (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Integration Costs [Table Text Block] | The following table summarizes our one-time costs incurred related to the Big Heart acquisition. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2017 2017 2016 2017 2016 Employee-related costs $ 2.5 $ 6.3 $ 6.2 $ 13.2 $ 88.3 Outside service and consulting costs 1.7 12.3 7.5 18.4 113.5 Other costs 3.6 4.0 5.2 11.2 62.4 Total one-time costs $ 7.8 $ 22.6 $ 18.9 $ 42.8 $ 264.2 |
Restructuring and Related Costs [Table Text Block] | The following table summarizes our one-time costs incurred related to the organization optimization program. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2017 2017 2016 2017 2016 Employee-related costs $ 1.2 $ 3.3 $ 11.6 $ 7.3 $ 25.3 Outside service and consulting costs 0.1 0.6 0.2 1.7 2.0 Other costs 1.5 0.4 7.7 1.3 12.1 Total one-time costs $ 2.8 $ 4.3 $ 19.5 $ 10.3 $ 39.4 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Segment Reporting [Abstract] | |
Income by segment | Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Net sales: U.S. Retail Coffee $ 552.7 $ 551.8 $ 1,033.5 $ 1,065.1 U.S. Retail Consumer Foods 531.5 557.3 1,023.9 1,094.3 U.S. Retail Pet Foods 552.1 531.0 1,073.8 1,050.5 International and Away From Home 287.3 273.8 541.3 519.8 Total net sales $ 1,923.6 $ 1,913.9 $ 3,672.5 $ 3,729.7 Segment profit: U.S. Retail Coffee $ 152.6 $ 186.5 $ 276.4 $ 360.3 U.S. Retail Consumer Foods 130.9 118.9 241.8 230.3 U.S. Retail Pet Foods 122.9 114.5 221.2 236.7 International and Away From Home 53.7 51.7 92.0 91.2 Total segment profit $ 460.1 $ 471.6 $ 831.4 $ 918.5 Amortization (51.6 ) (51.8 ) (103.1 ) (103.5 ) Interest expense – net (41.6 ) (41.0 ) (83.6 ) (82.5 ) Unallocated derivative gains (losses) 9.7 (14.2 ) 22.3 (6.5 ) Cost of products sold – special project costs (A) (0.9 ) (0.3 ) (1.6 ) (4.3 ) Other special project costs (A) (9.7 ) (26.6 ) (36.8 ) (48.8 ) Corporate administrative expenses (76.9 ) (75.4 ) (147.7 ) (158.3 ) Other income (expense) – net 2.7 3.2 (0.1 ) 4.3 Income before income taxes $ 291.8 $ 265.5 $ 480.8 $ 518.9 (A) Special project costs includes 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, 2017 | |
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, 2017 2016 2017 2016 Net income $ 194.6 $ 177.3 $ 321.4 $ 347.3 Less: Net income allocated to participating securities 1.1 0.8 1.7 1.6 Net income allocated to common stockholders $ 193.5 $ 176.5 $ 319.7 $ 345.7 Weighted-average common shares outstanding 113.0 115.9 113.0 115.9 Add: Dilutive effect of stock options — 0.1 — 0.1 Weighted-average common shares outstanding – assuming dilution 113.0 116.0 113.0 116.0 Net income per common share $ 1.71 $ 1.52 $ 2.83 $ 2.98 Net income per common share – assuming dilution $ 1.71 $ 1.52 $ 2.83 $ 2.98 |
Debt and Financing Arrangemen25
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: October 31, 2017 April 30, 2017 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 499.6 $ 500.0 $ 499.0 2.50% Senior Notes due March 15, 2020 500.0 497.2 500.0 496.6 3.50% Senior Notes due October 15, 2021 750.0 779.0 750.0 782.6 3.00% Senior Notes due March 15, 2022 400.0 397.0 400.0 396.6 3.50% Senior Notes due March 15, 2025 1,000.0 994.0 1,000.0 993.6 4.25% Senior Notes due March 15, 2035 650.0 642.9 650.0 642.6 4.38% Senior Notes due March 15, 2045 600.0 585.2 600.0 584.9 Term Loan Credit Agreement due March 23, 2020 400.0 398.8 550.0 548.6 Total long-term debt $ 4,800.0 $ 4,793.7 $ 4,950.0 $ 4,944.5 Current portion of long-term debt 500.0 499.6 500.0 499.0 Total long-term debt, less current portion $ 4,300.0 $ 4,294.1 $ 4,450.0 $ 4,445.5 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated 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, 2017 | |
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 2017 2016 2017 2016 Service cost $ 1.7 $ 3.6 $ 0.5 $ 0.6 Interest cost 5.4 6.2 0.6 0.6 Expected return on plan assets (7.2 ) (7.3 ) — — Amortization of net actuarial loss (gain) 2.8 3.4 (0.1 ) (0.1 ) Amortization of prior service cost (credit) 0.3 0.3 (0.4 ) (0.3 ) Net periodic benefit cost $ 3.0 $ 6.2 $ 0.6 $ 0.8 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2017 2016 2017 2016 Service cost $ 3.4 $ 7.7 $ 1.0 $ 1.2 Interest cost 10.8 12.9 1.1 1.3 Expected return on plan assets (14.4 ) (14.6 ) — — Amortization of net actuarial loss (gain) 5.7 7.1 (0.2 ) (0.1 ) Amortization of prior service cost (credit) 0.5 0.6 (0.7 ) (0.7 ) Settlement loss — 0.1 — — Net periodic benefit cost $ 6.0 $ 13.8 $ 1.2 $ 1.7 |
Derivative Financial Instrume27
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
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, 2017 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives designated as hedging instruments: Interest rate contract $ 3.5 $ — $ — $ — Total derivatives designated as hedging instruments $ 3.5 $ — $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 6.9 $ 9.0 $ — $ — Foreign currency exchange contracts 1.2 1.8 0.5 0.1 Total derivatives not designated as hedging instruments $ 8.1 $ 10.8 $ 0.5 $ 0.1 Total derivative instruments $ 11.6 $ 10.8 $ 0.5 $ 0.1 April 30, 2017 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 5.2 $ 21.2 $ — $ — Foreign currency exchange contracts 3.2 0.1 — — Total derivative instruments $ 8.4 $ 21.3 $ — $ — |
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 October 31, Six Months Ended October 31, 2017 2016 2017 2016 Gains (losses) on commodity contracts $ (13.9 ) $ (12.9 ) $ 2.5 $ (20.7 ) Gains (losses) on foreign currency exchange contracts 4.3 2.7 (5.2 ) 8.5 Total gains (losses) recognized in cost of products sold $ (9.6 ) $ (10.2 ) $ (2.7 ) $ (12.2 ) |
Schedule of unallocated derivative gains (losses) | The following table presents the activity in unallocated derivative gains and losses. Three Months Ended October 31, Six Months Ended October 31, 2017 2016 2017 2016 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (9.6 ) $ (10.2 ) $ (2.7 ) $ (12.2 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (19.3 ) 4.0 (25.0 ) (5.7 ) Unallocated derivative gains (losses) $ 9.7 $ (14.2 ) $ 22.3 $ (6.5 ) |
Outstanding derivative contracts | The following table presents the gross contract notional value of outstanding derivative contracts. October 31, 2017 April 30, 2017 Commodity contracts $ 394.1 $ 704.9 Foreign currency exchange contracts 164.1 195.4 Interest rate contract 300.0 — |
Other Financial Instruments a28
Other Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
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, 2017 April 30, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 47.6 $ 47.6 $ 47.3 $ 47.3 Derivative financial instruments – net 1.2 1.2 (12.9 ) (12.9 ) Long-term debt (4,793.7 ) (4,911.8 ) (4,944.5 ) (5,023.8 ) |
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, 2017 Marketable securities and other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.5 — 37.5 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net (2.5 ) 0.4 — (2.1 ) Foreign currency exchange contracts – net (0.1 ) (0.1 ) — (0.2 ) Interest rate contract — 3.5 — 3.5 Long-term debt (C) (4,511.4 ) (400.4 ) — (4,911.8 ) Total financial instruments measured at fair value $ (4,503.9 ) $ (359.1 ) $ — $ (4,863.0 ) 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, 2017 Marketable securities and other investments: (A) Equity mutual funds $ 1.1 $ — $ — $ 1.1 Municipal obligations — 34.7 — 34.7 Money market funds 11.5 — — 11.5 Derivative financial instruments: (B) Commodity contracts – net (15.8 ) (0.2 ) — (16.0 ) Foreign currency exchange contracts – net 0.3 2.8 — 3.1 Long-term debt (C) (4,473.2 ) (550.6 ) — (5,023.8 ) Total financial instruments measured at fair value $ (4,476.1 ) $ (513.3 ) $ — $ (4,989.4 ) (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, 2017 , our municipal obligations are scheduled to mature as follows: $0.7 in 2018, $2.3 in 2019, $1.7 in 2020, $5.0 in 2021, and the remaining $27.8 in 2022 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. The Level 2 interest rate contract is valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract valuation are limited to prices that are observable for the asset or liability. For additional information, see Note 9: Derivative Financial Instruments. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. |
Accumulated Other Comprehensi29
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2017 $ (43.0 ) $ (4.4 ) $ (100.0 ) $ 4.0 $ (143.4 ) Reclassification adjustments — 0.3 5.3 — 5.6 Current period credit (charge) 21.9 3.5 3.3 (0.5 ) 28.2 Income tax benefit (expense) — (1.4 ) (2.9 ) 0.2 (4.1 ) Balance at October 31, 2017 $ (21.1 ) $ (2.0 ) $ (94.3 ) $ 3.7 $ (113.7 ) Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (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 credit (charge) (26.2 ) — 18.8 0.4 (7.0 ) Income tax benefit (expense) — (0.1 ) (9.9 ) (0.1 ) (10.1 ) Balance at October 31, 2016 $ (39.3 ) $ (4.6 ) $ (116.1 ) $ 3.9 $ (156.1 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to the termination of prior interest rate swaps. The current period credit relates to the unrealized gain on the interest rate contract entered into in June 2017. For additional information, see Note 9: Derivative Financial Instruments. (B) Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to selling, distribution, and administrative expenses. |
Common Shares (Tables)
Common Shares (Tables) | 6 Months Ended |
Oct. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. October 31, 2017 April 30, 2017 Common shares authorized 300.0 300.0 Common shares outstanding 113.6 113.4 Treasury shares 32.9 33.1 |
Acquisition (Details Textual)
Acquisition (Details Textual) - Pending Acquisition [Member] $ in Millions | May 30, 2017USD ($) |
Business Acquisition [Line Items] | |
Anticipated Payments To Acquire Business Gross | $ 285 |
Expected Annual Sales Revenue Goods Net | $ 230 |
Integration and Restructuring32
Integration and Restructuring Costs (Details) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2017USD ($) | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($)Position | Oct. 31, 2016USD ($) | Apr. 30, 2017USD ($)lease | |
Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 290 | $ 290 | |||
Restructuring and Related Cost, Incurred Cost | 7.8 | $ 22.6 | 18.9 | $ 42.8 | |
Restructuring and Related Cost, Incurred Noncash Charge | 1.2 | 1.4 | 2.5 | 7 | |
Restructuring and Related Cost, Cost Incurred to Date | 264.2 | 264.2 | |||
Restructuring and Related Cost, Noncash Charge Incurred to Date | 30.3 | 30.3 | |||
Employee Severance [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 100 | 100 | |||
Restructuring and Related Cost, Incurred Cost | 2.5 | 6.3 | 6.2 | 13.2 | |
Restructuring and Related Cost, Cost Incurred to Date | 88.3 | 88.3 | |||
Restructuring Reserve | 0.5 | 0.5 | $ 5.3 | ||
Outside Services and Consulting [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 120 | 120 | |||
Restructuring and Related Cost, Incurred Cost | 1.7 | 12.3 | 7.5 | 18.4 | |
Restructuring and Related Cost, Cost Incurred to Date | 113.5 | 113.5 | |||
Other Restructuring [Member] | Big Heart [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 70 | 70 | |||
Restructuring and Related Cost, Incurred Cost | 3.6 | 4 | 5.2 | 11.2 | |
Restructuring and Related Cost, Cost Incurred to Date | 62.4 | 62.4 | |||
Organization Optimization Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 45 | 45 | |||
Restructuring and Related Cost, Incurred Cost | 2.8 | 4.3 | 19.5 | 10.3 | |
Restructuring and Related Cost, Incurred Noncash Charge | 0.8 | 0.1 | 6.9 | 1 | |
Restructuring and Related Cost, Cost Incurred to Date | 39.4 | 39.4 | |||
Restructuring and Related Cost, Noncash Charge Incurred to Date | $ 9 | $ 9 | |||
Restructuring and Related Costs, Number of Leases Exited | lease | 2 | ||||
Restructuring and Related Cost, Expected Number of Positions Eliminated | Position | 275 | ||||
Restructuring and Related Cost, Number of Positions Eliminated, Inception to Date Percent | 90.00% | 90.00% | |||
Organization Optimization Program [Member] | Employee Severance [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | $ 1.2 | 3.3 | $ 11.6 | 7.3 | |
Restructuring and Related Cost, Cost Incurred to Date | 25.3 | 25.3 | |||
Restructuring Reserve | 3.3 | 3.3 | $ 3.3 | ||
Organization Optimization Program [Member] | Outside Services and Consulting [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 0.1 | 0.6 | 0.2 | 1.7 | |
Restructuring and Related Cost, Cost Incurred to Date | 2 | 2 | |||
Organization Optimization Program [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 1.5 | $ 0.4 | 7.7 | $ 1.3 | |
Restructuring and Related Cost, Cost Incurred to Date | $ 12.1 | $ 12.1 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Net sales: | |||||
Net sales | $ 1,923.6 | $ 1,913.9 | $ 3,672.5 | $ 3,729.7 | |
Segment profit: | |||||
Segment profit | 460.1 | 471.6 | 831.4 | 918.5 | |
Amortization | (51.6) | (51.8) | (103.1) | (103.5) | |
Interest expense – net | (41.6) | (41) | (83.6) | (82.5) | |
Unallocated derivative gains (losses) | 9.7 | (14.2) | 22.3 | (6.5) | |
Cost of products sold – special project costs (A) | [1] | (0.9) | (0.3) | (1.6) | (4.3) |
Other special project costs (A) | [1],[2] | (9.7) | (26.6) | (36.8) | (48.8) |
Corporate administrative expenses | (76.9) | (75.4) | (147.7) | (158.3) | |
Other income (expense) – net | 2.7 | 3.2 | (0.1) | 4.3 | |
Income Before Income Taxes | 291.8 | 265.5 | 480.8 | 518.9 | |
U.S. Retail Coffee [Member] | |||||
Net sales: | |||||
Net sales | 552.7 | 551.8 | 1,033.5 | 1,065.1 | |
Segment profit: | |||||
Segment profit | 152.6 | 186.5 | 276.4 | 360.3 | |
U.S. Retail Consumer Foods [Member] | |||||
Net sales: | |||||
Net sales | 531.5 | 557.3 | 1,023.9 | 1,094.3 | |
Segment profit: | |||||
Segment profit | 130.9 | 118.9 | 241.8 | 230.3 | |
U.S. Retail Pet Foods [Member] | |||||
Net sales: | |||||
Net sales | 552.1 | 531 | 1,073.8 | 1,050.5 | |
Segment profit: | |||||
Segment profit | 122.9 | 114.5 | 221.2 | 236.7 | |
International and Away From Home [Member] | |||||
Net sales: | |||||
Net sales | 287.3 | 273.8 | 541.3 | 519.8 | |
Segment profit: | |||||
Segment profit | $ 53.7 | $ 51.7 | $ 92 | $ 91.2 | |
[1] | Special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. | ||||
[2] | Other special project costs includes 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, 2017IndustrySegment | |
Segment Reporting Information [Line Items] | |
Number of industries in which Company operates | Industry | 1 |
Number of reportable segments | Segment | 4 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 194.6 | $ 177.3 | $ 321.4 | $ 347.3 |
Less: Net income allocated to participating securities | 1.1 | 0.8 | 1.7 | 1.6 |
Net income allocated to common stockholders | $ 193.5 | $ 176.5 | $ 319.7 | $ 345.7 |
Weighted-average common shares outstanding (in shares) | 113 | 115.9 | 113 | 115.9 |
Add: Dilutive effect of stock options (in shares) | 0 | 0.1 | 0 | 0.1 |
Weighted-average common shares outstanding - assuming dilution (in shares) | 113 | 116 | 113 | 116 |
Net income per common share (in dollars per share) | $ 1.71 | $ 1.52 | $ 2.83 | $ 2.98 |
Net Income - Assuming Dilution (in dollars per share) | $ 1.71 | $ 1.52 | $ 2.83 | $ 2.98 |
Debt and Financing Arrangemen36
Debt and Financing Arrangements (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2017 | Apr. 30, 2017 | Mar. 31, 2015 | ||
Debt Instrument [Line Items] | |||||
Payments of Debt Issuance Costs | $ 4,100,000 | $ 4,100,000 | |||
Long-term debt | |||||
Debt instrument face amount | 4,800,000,000 | 4,800,000,000 | $ 4,950,000,000 | ||
Current portion of long-term debt | [1] | 499,600,000 | 499,600,000 | 499,000,000 | |
Long-term debt | [1] | 4,793,700,000 | 4,793,700,000 | 4,944,500,000 | |
Long-term debt, less current portion | [1] | $ 4,294,100,000 | $ 4,294,100,000 | $ 4,445,500,000 | |
1.75% Senior Notes due March 15, 2018 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 1.75% | 1.75% | 1.75% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 499,600,000 | $ 499,600,000 | $ 499,000,000 | |
2.50% Senior Notes due March 15, 2020 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 2.50% | 2.50% | 2.50% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | $ 500,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 497,200,000 | $ 497,200,000 | $ 496,600,000 | |
3.50% Senior Notes due October 15, 2021 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 3.50% | 3.50% | 3.50% | ||
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 779,000,000 | $ 779,000,000 | $ 782,600,000 | |
3.00% Senior Notes due March 15, 2022 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 3.00% | 3.00% | 3.00% | ||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 397,000,000 | $ 397,000,000 | $ 396,600,000 | |
3.50% Senior Notes due March 15, 2025 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 3.50% | 3.50% | 3.50% | ||
Debt instrument face amount | $ 1,000,000,000 | $ 1,000,000,000 | $ 1,000,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 994,000,000 | $ 994,000,000 | $ 993,600,000 | |
4.25% Senior Notes due March 15, 2035 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 4.25% | 4.25% | 4.25% | ||
Debt instrument face amount | $ 650,000,000 | $ 650,000,000 | $ 650,000,000 | ||
Notes Payable, Noncurrent | [1] | $ 642,900,000 | $ 642,900,000 | $ 642,600,000 | |
4.38% Senior Notes due March 15, 2045 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 4.38% | 4.38% | 4.38% | ||
Debt instrument face amount | $ 600,000,000 | $ 600,000,000 | $ 600,000,000 | ||
Notes Payable, Noncurrent | [1] | 585,200,000 | 585,200,000 | 584,900,000 | |
Term Loan Credit Agreement due March 23, 2020 [Member] | |||||
Long-term debt | |||||
Debt instrument face amount | 400,000,000 | 400,000,000 | 550,000,000 | $ 1,800,000,000 | |
Term loan credit agreement carrying value | [1] | 398,800,000 | 398,800,000 | 548,600,000 | |
Current portion of long-term debt | |||||
Long-term debt | |||||
Debt instrument face amount | 500,000,000 | 500,000,000 | 500,000,000 | ||
Total long-term debt, less current portion | |||||
Long-term debt | |||||
Debt instrument face amount | $ 4,300,000,000 | $ 4,300,000,000 | $ 4,450,000,000 | ||
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Debt and Financing Arrangemen37
Debt and Financing Arrangements (Details Textual) | 3 Months Ended | 6 Months Ended | 12 Months Ended | 31 Months Ended | |||||
Oct. 31, 2017USD ($)Bank | Oct. 31, 2016USD ($) | Oct. 31, 2017USD ($)Bank | Oct. 31, 2016USD ($) | Apr. 30, 2015USD ($) | Oct. 31, 2017USD ($)Bank | Aug. 31, 2017USD ($) | Apr. 30, 2017USD ($) | Mar. 31, 2015USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument face amount | $ 4,800,000,000 | $ 4,800,000,000 | $ 4,800,000,000 | $ 4,950,000,000 | |||||
Repayments of long-term debt | $ 150,000,000 | $ 200,000,000 | |||||||
Number of banks | Bank | 11 | 11 | 11 | ||||||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | $ 0 | 0 | |||||
Revolving credit facility maximum borrowing capacity | 1,800,000,000 | 1,800,000,000 | $ 1,800,000,000 | $ 1,500,000,000 | |||||
Payments of Debt Issuance Costs | $ 4,100,000 | $ 4,100,000 | |||||||
Percentage of the principal amount thereof which company can prepay | 100.00% | 100.00% | 100.00% | ||||||
Interest paid | $ 78,900,000 | $ 77,700,000 | $ 83,500,000 | $ 81,300,000 | |||||
Short-term borrowings | 463,900,000 | 463,900,000 | $ 463,900,000 | 454,000,000 | |||||
Senior Notes [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument face amount | $ 3,700,000,000 | ||||||||
Term Loan Credit Agreement due March 23, 2020 [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | $ 400,000,000 | $ 550,000,000 | $ 1,800,000,000 | ||||
Weighted average interest rate on long-term debt | 2.49% | 2.49% | 2.49% | ||||||
Percent of original principal to be paid quarterly | 2.50% | ||||||||
Repayments of long-term debt | $ 150,000,000 | $ 150,000,000 | $ 1,400,000,000 | ||||||
Long-term Debt [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Increase to long term-debt related to termination of interest rate swap | $ 32,400,000 | ||||||||
Fair Value Hedging [Member] | |||||||||
Outstanding derivative contracts | |||||||||
Gain (loss) on early termination agreement | $ 58,100,000 | ||||||||
Commercial Paper [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Commercial paper weighted-average interest rate | 1.41% | 1.41% | 1.41% | 1.15% | |||||
Commercial paper, borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,000,000,000 | |||||
Short-term borrowings | 463,900,000 | 463,900,000 | 463,900,000 | $ 454,000,000 | |||||
Treasury Lock [Member] | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Derivative, Notional Amount | 300,000,000 | 300,000,000 | $ 300,000,000 | $ 0 | |||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 1,000,000 | $ 3,500,000 |
Pensions and Other Postretire38
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Components of net periodic benefit cost | |||||
Decrease in expected service and interest cost during fiscal year due to change in discount rate methodology | $ 4.3 | ||||
Plan amendment change in AOCI | $ (25.2) | ||||
Defined Benefit Pension Plans [Member] | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 1.7 | $ 3.6 | 3.4 | $ 7.7 | |
Interest cost | 5.4 | 6.2 | 10.8 | 12.9 | |
Expected return on plan assets | (7.2) | (7.3) | (14.4) | (14.6) | |
Amortization of net actuarial loss (gain) | 2.8 | 3.4 | 5.7 | 7.1 | |
Amortization of prior service cost (credit) | 0.3 | 0.3 | 0.5 | 0.6 | |
Settlement loss | 0 | 0.1 | |||
Net periodic benefit cost | 3 | 6.2 | 6 | 13.8 | |
Other Postretirement Benefits [Member] | |||||
Components of net periodic benefit cost | |||||
Service cost | 0.5 | 0.6 | 1 | 1.2 | |
Interest cost | 0.6 | 0.6 | 1.1 | 1.3 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net actuarial loss (gain) | (0.1) | (0.1) | (0.2) | (0.1) | |
Amortization of prior service cost (credit) | (0.4) | (0.3) | (0.7) | (0.7) | |
Settlement loss | 0 | 0 | |||
Net periodic benefit cost | $ 0.6 | $ 0.8 | $ 1.2 | $ 1.7 |
Derivative Financial Instrume39
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Apr. 30, 2017 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 11.6 | |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 3.5 | |
Other Current Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 8.1 | $ 8.4 |
Other Current Assets [Member] | Treasury Lock [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 3.5 | |
Other Current Assets [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 6.9 | 5.2 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.2 | 3.2 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 10.8 | |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Current Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 10.8 | 21.3 |
Other Current Liabilities [Member] | Treasury Lock [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Current Liabilities [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 9 | 21.2 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 1.8 | 0.1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Noncurrent Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0 |
Other Noncurrent Assets [Member] | Treasury Lock [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.1 | |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Noncurrent Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.1 | 0 |
Other Noncurrent Liabilities [Member] | Treasury Lock [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0.1 | $ 0 |
Derivative Financial Instrume40
Derivative Financial Instruments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | $ (9.6) | $ (10.2) | $ (2.7) | $ (12.2) |
Commodity contracts [Member] | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | (13.9) | (12.9) | 2.5 | (20.7) |
Foreign currency exchange contracts [Member] | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | $ 4.3 | $ 2.7 | $ (5.2) | $ 8.5 |
Derivative Financial Instrume41
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | |
Price Risk Derivatives [Abstract] | ||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ (9.6) | $ (10.2) | $ (2.7) | $ (12.2) |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (19.3) | 4 | (25) | (5.7) |
Unallocated derivative gains (losses) | $ 9.7 | $ (14.2) | $ 22.3 | $ (6.5) |
Derivative Financial Instrume42
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | Oct. 31, 2017 | Apr. 30, 2017 |
Commodity contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 394.1 | $ 704.9 |
Foreign currency exchange contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | 164.1 | 195.4 |
Treasury Lock [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 300 | $ 0 |
Derivative Financial Instrume43
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2017 | Oct. 31, 2016 | Oct. 31, 2017 | Oct. 31, 2016 | Apr. 30, 2017 | Apr. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Interest expense – net | $ (41.6) | $ (41) | $ (83.6) | $ (82.5) | ||
Amortization of deferred gain on early termination agreement | 2 | 3.9 | ||||
Derivative Financial Instruments (Additional Textual) [Abstract] | ||||||
Cash margin accounts related to derivative instruments recognized | 18.1 | 18.1 | $ 41.8 | |||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ (13.3) | (35.6) | ||||
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 | 394.1 | $ 394.1 | 704.9 | |||
Foreign currency exchange contracts [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Derivative instrument maturity | 1 year | |||||
Gross contract notional amount | 164.1 | $ 164.1 | 195.4 | |||
Treasury Lock [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 1 | 3.5 | ||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Gross contract notional amount | 300 | 300 | 0 | |||
Interest rate contract [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (3.2) | (3.2) | (7) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | $ 1.2 | 1.2 | $ 2.6 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (0.3) | |||||
Gain (loss) on early termination agreement | $ 4.6 | |||||
Total Through Q2 2018 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 21.1 | |||||
2018 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 3.9 | |||||
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 a44
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 31, 2017 | Apr. 30, 2017 | |
Carrying amount and fair value of financial instruments | |||
Long-term debt | [1] | $ (4,793.7) | $ (4,944.5) |
Carrying Amount [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 47.6 | 47.3 | |
Derivative financial instruments – net | 1.2 | (12.9) | |
Long-term debt | (4,793.7) | (4,944.5) | |
Fair Value [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 47.6 | 47.3 | |
Derivative financial instruments – net | 1.2 | (12.9) | |
Long-term debt | $ (4,911.8) | $ (5,023.8) | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Other Financial Instruments a45
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Oct. 31, 2017 | Apr. 30, 2017 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (4,911.8) | $ (5,023.8) |
Total financial instruments measured at fair value | (4,863) | (4,989.4) | |
Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.7 | 1.1 |
Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.5 | 34.7 |
Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.4 | 11.5 |
Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (2.1) | (16) |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (0.2) | 3.1 |
Treasury Lock [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 3.5 | |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (4,511.4) | (4,473.2) |
Total financial instruments measured at fair value | (4,503.9) | (4,476.1) | |
Fair Value, Inputs, Level 1 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.7 | 1.1 |
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] | 0.4 | 11.5 |
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] | (2.5) | (15.8) |
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] | (0.1) | 0.3 |
Fair Value, Inputs, Level 1 [Member] | Treasury Lock [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (400.4) | (550.6) |
Total financial instruments measured at fair value | (359.1) | (513.3) | |
Fair Value, Inputs, Level 2 [Member] | Equity Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Municipal Bonds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.5 | 34.7 |
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] | 0.4 | (0.2) |
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] | (0.1) | 2.8 |
Fair Value, Inputs, Level 2 [Member] | Treasury Lock [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 3.5 | |
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 |
Fair Value, Inputs, Level 3 [Member] | Treasury Lock [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | $ 0 | |
[1] | Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 7: Debt and Financing Arrangements. | ||
[2] | 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, 2017, our municipal obligations are scheduled to mature as follows: $0.7 in 2018, $2.3 in 2019, $1.7 in 2020, $5.0 in 2021, and the remaining $27.8 in 2022 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. The Level 2 interest rate contract is valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract valuation are limited to prices that are observable for the asset or liability. For additional information, see Note 9: Derivative Financial Instruments. |
Other Financial Instruments a46
Other Financial Instruments and Fair Value Measurements (Details Textual) $ in Millions | 6 Months Ended |
Oct. 31, 2017USD ($) | |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2018 | $ 0.7 |
Company's Municipal bond mature in 2019 | 2.3 |
Company's Municipal bond mature in 2020 | 1.7 |
Company's Municipal bond mature in 2021 | 5 |
Company's Municipal bond mature in 2022 and beyond | $ 27.8 |
Money market funds maturity period | three months or less |
Income Taxes (Details Textual)
Income Taxes (Details Textual) $ in Millions | 6 Months Ended |
Oct. 31, 2017USD ($) | |
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 | $ 6.7 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 31, 2017 | Oct. 31, 2016 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ (143.4) | $ (148.4) | |
Reclassification adjustments | 5.6 | 9.4 | |
Current period credit (charge) | 28.2 | (7) | |
Income tax benefit (expense) | (4.1) | (10.1) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (113.7) | (156.1) | |
Foreign Currency Translation Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (43) | (13.1) | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | 21.9 | (26.2) | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (21.1) | (39.3) | |
Net Gains (Losses) on Cash Flow Hedging Derivatives [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [1] | (4.4) | (4.8) |
Reclassification adjustments | [1] | 0.3 | 0.3 |
Current period credit (charge) | [1] | 3.5 | 0 |
Income tax benefit (expense) | [1] | (1.4) | (0.1) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [1] | (2) | (4.6) |
Pension and Other Postretirement Liabilities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [2] | (100) | (134.1) |
Reclassification adjustments | [2] | 5.3 | 9.1 |
Current period credit (charge) | [2] | 3.3 | 18.8 |
Income tax benefit (expense) | [2] | (2.9) | (9.9) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [2] | (94.3) | (116.1) |
Unrealized Gain on Available-for-Sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 4 | 3.6 | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | (0.5) | 0.4 | |
Income tax benefit (expense) | 0.2 | (0.1) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ 3.7 | $ 3.9 | |
[1] | The reclassification from accumulated other comprehensive income (loss) to interest expense was related to the termination of prior interest rate swaps. The current period credit relates to the unrealized gain on the interest rate contract entered into in June 2017. For additional information, see Note 9: Derivative Financial Instruments. | ||
[2] | Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to selling, distribution, and administrative expenses. |
Common Shares (Details)
Common Shares (Details) - shares | 6 Months Ended | |
Oct. 31, 2017 | Apr. 30, 2017 | |
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 | 113,600,000 | 113,400,000 |
Treasury shares | 32,900,000 | 33,100,000 |
Common Shares (Additional Textual) [Abstract] | ||
Shares remaining for repurchase | 3,600,000 |
Guarantor and Non-Guarantor F50
Guarantor and Non-Guarantor Financial Information (Details Textual) - USD ($) | Oct. 31, 2017 | Aug. 31, 2017 |
Guarantor and Non Guarantor Financial Information (Textual) [Abstract] | ||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,500,000,000 |