Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2018 | Jun. 12, 2018 | Oct. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | J M SMUCKER Co | ||
Entity Central Index Key | 91,419 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Common Stock, Shares Outstanding | 113,535,111 | ||
Entity Public Float | $ 11,386,975,264 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |||
Income Statement [Abstract] | |||||
Net sales | $ 7,357.1 | $ 7,392.3 | $ 7,811.2 | ||
Cost of products sold | 4,521 | 4,557 | 4,843.4 | ||
Gross Profit | 2,836.1 | 2,835.3 | 2,967.8 | ||
Selling, distribution, and administrative expenses | 1,370.8 | 1,390.7 | 1,510.3 | ||
Amortization | 206.8 | 207.3 | 208.4 | ||
Goodwill impairment charge | 145 | [1] | 0 | 0 | |
Other intangible assets impairment charges | 31.9 | 133.2 | 0 | ||
Other special project costs | [2],[3] | 45.4 | 76.9 | 135.9 | |
Other operating expense (income) – net | 0.1 | (4.3) | (32.1) | ||
Operating Income | 1,036.1 | 1,031.5 | 1,145.3 | ||
Interest expense – net | (174.1) | (163.1) | (171.1) | ||
Other income (expense) – net | (1) | 10 | 3.7 | ||
Income Before Income Taxes | 861 | 878.4 | 977.9 | ||
Income tax expense (benefit) | (477.6) | 286.1 | 289.2 | ||
Net Income | $ 1,338.6 | $ 592.3 | $ 688.7 | ||
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 11.79 | $ 5.11 | $ 5.77 | ||
Net Income - Assuming Dilution (in dollars per share) | 11.78 | 5.10 | 5.76 | ||
Dividends Declared per Common Share (in dollars per share) | $ 3.12 | $ 3 | $ 2.68 | ||
[1] | There have been no goodwill impairment charges recognized in prior periods. | ||||
[2] | Other special project costs includes integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. | ||||
[3] | Special project costs include integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 1,338.6 | $ 592.3 | $ 688.7 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 26.6 | (29.9) | (10.8) |
Cash flow hedging derivative activity, net of tax | 2 | 0.4 | 0.4 |
Pension and other postretirement benefit plans activity, net of tax | 14.3 | 34.1 | (28.5) |
Available-for-sale securities activity, net of tax | (1.2) | 0.4 | 0.3 |
Total Other Comprehensive Income (Loss) | 41.7 | 5 | (38.6) |
Comprehensive Income | $ 1,380.3 | $ 597.3 | $ 650.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 | |
Current Assets | |||
Cash and cash equivalents | $ 192.6 | $ 166.8 | |
Trade receivables, less allowance for doubtful accounts | 385.6 | 438.7 | |
Inventories: | |||
Finished products | 542.1 | 562.4 | |
Raw materials | 312.3 | 343.3 | |
Total Inventory | 854.4 | 905.7 | |
Other current assets | 122.4 | 130.6 | |
Total Current Assets | 1,555 | 1,641.8 | |
Property, Plant, and Equipment | |||
Land and land improvements | 120.1 | 115.6 | |
Buildings and fixtures | 812.6 | 766.2 | |
Machinery and equipment | 2,111.5 | 1,983 | |
Construction in progress | 212.1 | 116.9 | |
Gross Property, Plant, and Equipment | 3,256.3 | 2,981.7 | |
Accumulated depreciation | (1,527.2) | (1,364.2) | |
Total Property, Plant, and Equipment | 1,729.1 | 1,617.5 | |
Other Noncurrent Assets | |||
Goodwill | 5,942.2 | 6,077.1 | |
Other intangible assets – net | 5,916.5 | 6,149.9 | |
Other noncurrent assets | 158.4 | 153.4 | |
Total Other Noncurrent Assets | 12,017.1 | 12,380.4 | |
Total Assets | 15,301.2 | 15,639.7 | |
Current Liabilities | |||
Accounts payable | 512.1 | 477.2 | |
Accrued compensation | 79.8 | 88.2 | |
Accrued trade marketing and merchandising | 101.6 | 106 | |
Dividends payable | 88.6 | 85.1 | |
Current portion of long-term debt | [1] | 0 | 499 |
Short-term borrowings | 144 | 454 | |
Other current liabilities | 107.7 | 123.1 | |
Total Current Liabilities | 1,033.8 | 1,832.6 | |
Noncurrent Liabilities | |||
Long-term debt, less current portion | [1] | 4,688 | 4,445.5 |
Defined benefit pensions | 144.1 | 189.8 | |
Other postretirement benefits | 61.9 | 66.6 | |
Deferred income taxes | 1,377.2 | 2,167 | |
Other noncurrent liabilities | 105.1 | 88 | |
Total Noncurrent Liabilities | 6,376.3 | 6,956.9 | |
Total Liabilities | 7,410.1 | 8,789.5 | |
Shareholders’ Equity | |||
Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none | 0 | 0 | |
Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 113,572,840 at April 30, 2018, and 113,439,553 at April 30, 2017 (net of 32,924,890 and 33,058,177 treasury shares, respectively), at stated value | 28.9 | 28.4 | |
Additional capital | 5,739.7 | 5,724.7 | |
Retained income | 2,239.2 | 1,240.5 | |
Accumulated other comprehensive income (loss) | (116.7) | (143.4) | |
Total Shareholders’ Equity | 7,891.1 | 6,850.2 | |
Total Liabilities and Shareholders’ Equity | $ 15,301.2 | $ 15,639.7 | |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Apr. 30, 2018 | Apr. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Serial preferred shares, no par value, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Serial preferred shares, no par value, shares outstanding (in shares) | 0 | 0 |
Common shares, no par value, shares authorized (in shares) | 300,000,000 | 300,000,000 |
Common shares, no par value, shares outstanding (in shares) | 113,572,840 | 113,439,553 |
Treasury shares, shares outstanding (in shares) | 32,924,890 | 33,058,177 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Operating Activities | ||||
Net income | $ 1,338.6 | $ 592.3 | $ 688.7 | |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||||
Depreciation | 206.3 | 211.7 | 221.7 | |
Amortization | 206.8 | 207.3 | 208.4 | |
Goodwill impairment charge | 145 | [1] | 0 | 0 |
Other intangible assets impairment charges | 31.9 | 133.2 | 0 | |
Share-based compensation expense | 15.4 | 22 | 34.6 | |
Gain on divestiture | 0 | 0 | (25.3) | |
Deferred income tax expense (benefit) | (803.4) | (79.4) | (95.2) | |
Loss on disposal of assets - net | 6.6 | 4.4 | 5.6 | |
Other noncash adjustments – net | 3.7 | 0.4 | (2.2) | |
Defined benefit pension contributions | (39.6) | (28.7) | (8.6) | |
Changes in assets and liabilities, net of effect from businesses acquired: | ||||
Trade receivables | 54.7 | 8.9 | (21.9) | |
Inventories | 54 | (10.4) | 240.1 | |
Other current assets | (5.3) | 8.9 | 14.6 | |
Accounts payable | 19 | 2.1 | 46.1 | |
Accrued liabilities | 20.5 | (39.8) | 2.4 | |
Income and other taxes | (28.7) | 7.9 | 146.9 | |
Other – net | (7.5) | 18.2 | 5.1 | |
Net Cash Provided by (Used for) Operating Activities | 1,218 | 1,059 | 1,461 | |
Investing Activities | ||||
Businesses acquired, net of cash acquired | 0 | 0 | 7.9 | |
Equity investment in affiliate | 0 | 0 | (16) | |
Additions to property, plant, and equipment | (321.9) | (192.4) | (201.4) | |
Proceeds from divestiture | 0 | 0 | 193.7 | |
Proceeds from sale of investment | 0 | 40.6 | 0 | |
Proceeds from disposal of property, plant, and equipment | 13.4 | 0.5 | 4 | |
Other – net | 30.9 | (38.4) | 33.5 | |
Net Cash Provided by (Used for) Investing Activities | (277.6) | (189.7) | 21.7 | |
Financing Activities | ||||
Short-term borrowings (repayments) – net | (310) | 170 | 58 | |
Proceeds from long-term debt | 799.6 | 0 | 0 | |
Repayments of long-term debt | (1,050.3) | (200) | (800) | |
Quarterly dividends paid | (350.3) | (339.3) | (316.6) | |
Purchase of treasury shares | (7) | (437.6) | (441.1) | |
Other – net | (4) | 0.8 | 0.8 | |
Net Cash Provided by (Used for) Financing Activities | (922) | (806.1) | (1,498.9) | |
Effect of exchange rate changes on cash | 7.4 | (6.2) | 0.4 | |
Net increase (decrease) in cash and cash equivalents | 25.8 | 57 | (15.8) | |
Cash and cash equivalents at beginning of year | 166.8 | 109.8 | 125.6 | |
Cash and Cash Equivalents at End of Year | $ 192.6 | $ 166.8 | $ 109.8 | |
[1] | There have been no goodwill impairment charges recognized in prior periods. |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity - USD ($) $ in Millions | Total | Common Shares | Additional Capital | Retained Income | Amount Due from ESOP Trust | Accumulated Other Comprehensive Loss | ||
Balance at Apr. 30, 2015 | $ 7,086.9 | $ 29.9 | $ 6,007.7 | $ 1,159.2 | $ (0.1) | $ (109.8) | ||
Balance, shares at Apr. 30, 2015 | 119,577,333 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 688.7 | 688.7 | ||||||
Other comprehensive income (loss) | (38.6) | (38.6) | ||||||
Comprehensive Income | 650.1 | |||||||
Purchase of treasury shares | (441.1) | $ (0.9) | (177.9) | (262.3) | ||||
Purchase of treasury shares, shares | (3,451,591) | |||||||
Stock plans | 30.8 | $ 0.1 | 30.7 | |||||
Stock plans, shares | 181,152 | |||||||
Cash dividends declared | (317.9) | (317.9) | ||||||
Other | (0.3) | (0.4) | 0.1 | |||||
Balance at Apr. 30, 2016 | 7,008.5 | $ 29.1 | 5,860.1 | 1,267.7 | 0 | (148.4) | ||
Balance, shares at Apr. 30, 2016 | 116,306,894 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | 592.3 | 592.3 | ||||||
Other comprehensive income (loss) | 5 | 5 | ||||||
Comprehensive Income | 597.3 | |||||||
Purchase of treasury shares | (437.6) | $ (0.8) | (163.6) | (273.2) | ||||
Purchase of treasury shares, shares | (3,147,659) | |||||||
Stock plans | 28.2 | $ 0.1 | 28.1 | |||||
Stock plans, shares | 280,318 | |||||||
Cash dividends declared | (346.5) | (346.5) | ||||||
Other | 0.3 | 0.1 | 0.2 | |||||
Balance at Apr. 30, 2017 | $ 6,850.2 | $ 28.4 | 5,724.7 | 1,240.5 | 0 | (143.4) | ||
Balance, shares at Apr. 30, 2017 | 113,439,553 | 113,439,553 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net income | $ 1,338.6 | 1,338.6 | ||||||
Other comprehensive income (loss) | 41.7 | 41.7 | ||||||
Comprehensive Income | 1,380.3 | |||||||
Purchase of treasury shares | (7) | $ 0 | (5.8) | (1.2) | ||||
Purchase of treasury shares, shares | (54,535) | |||||||
Stock plans | 21.3 | $ 0 | 21.3 | |||||
Stock plans, shares | 187,822 | |||||||
Cash dividends declared | (353.7) | (353.7) | ||||||
Reclassification of stranded tax effects | [1] | 0 | 15 | (15) | [2] | |||
Other | 0 | $ 0.5 | (0.5) | |||||
Balance at Apr. 30, 2018 | $ 7,891.1 | $ 28.9 | $ 5,739.7 | $ 2,239.2 | $ 0 | $ (116.7) | ||
Balance, shares at Apr. 30, 2018 | 113,572,840 | 113,572,840 | ||||||
[1] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Recently Issued Accounting Standards in Note 1: Accounting Policies, and Note 13: Income Taxes. | |||||||
[2] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Note 13: Income Taxes. |
Statements of Consolidated Sha8
Statements of Consolidated Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Tax benefit of stock plans | $ 0 | $ 0 | $ 2.7 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Accounting Policies | NOTE 1 ACCOUNTING POLICIES Principles of Consolidation: The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and its majority-owned investments, if any. Intercompany transactions and accounts are eliminated in consolidation. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires that we make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates in these consolidated financial statements include: estimates of future cash flows associated with assets, potential asset impairments, useful lives and residual values of long-lived assets used in determining depreciation and amortization, net realizable value of inventories, accruals for trade marketing and merchandising programs, income taxes, and the determination of discount and other assumptions for defined benefit pension and other postretirement benefit expenses. Actual results could differ from these estimates. Cash and Cash Equivalents: We consider all short-term, highly-liquid investments with a maturity of three months or less when purchased to be cash equivalents. Revenue Recognition: We recognize revenue when all of the following criteria have been met: a valid customer order with a determinable price has been received; title and risk of loss have transferred to the customer; there is no further significant obligation to assist in the resale of the product; and collectibility is reasonably assured. Our products are shipped with FOB destination terms, with the exception of certain export customers and those customers who elect to pick up. Trade marketing and merchandising program costs are classified as a reduction of sales. A provision for estimated returns and allowances is recognized as a reduction of sales at the time revenue is recognized. Trade Marketing and Merchandising Programs: In order to support our products, various promotional activities are conducted through retail trade, distributors, or directly with consumers, including in-store display and product placement programs, feature price discounts, coupons, and other similar activities. We regularly review and revise, when we deem necessary, estimates of costs for these promotional programs based on estimates of what will be redeemed by retail trade, distributors, or consumers. These estimates are made using various techniques, including historical data on performance of similar promotional programs. Differences between estimated expenditures and actual performance are recognized as a change in estimate in a subsequent period. During 2018 , 2017 , and 2016 , subsequent period adjustments approximated less than 2 percent of both consolidated pre-tax income and cash provided by operating activities. Total promotional expenditures, including amounts classified as a reduction of sales, represented 35 percent, 33 percent, and 31 percent of net sales in 2018 , 2017 , and 2016 , respectively. The possibility exists that reported results could be different if factors such as the level and success of the promotional programs or other conditions differ from expectations. Shipping and Handling Costs: Transportation costs included in cost of products sold relate to the costs incurred to ship our products. Distribution costs are included in selling, distribution, and administrative (“SD&A”) expenses and relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $245.4 , $252.9 , and $236.1 in 2018 , 2017 , and 2016 , respectively. Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $194.2 , $169.8 , and $170.3 in 2018 , 2017 , and 2016 , respectively. Research and Development Costs: Research and development (“R&D”) costs are expensed as incurred and are included in SD&A in the Statements of Consolidated Income. R&D costs include expenditures for new product and manufacturing process innovation, which are comprised primarily of internal salaries and wages, consulting, and other supplies attributable to time spent on R&D activities. Other costs include the depreciation and maintenance of research facilities. Total R&D expense was $56.0 , $58.1 , and $58.8 in 2018 , 2017 , and 2016 , respectively. Share-Based Payments: Share-based compensation expense, excluding stock options, is recognized on a straight-line basis over the requisite service period, which includes a one -year performance period plus the defined forfeiture period, which is typically four years of service or the attainment of a defined age and years of service. Compensation expense related to stock options is recognized ratably over the service period for each vesting tranche from the grant date through the end of the requisite service period if it is probable that the performance criteria will be met. The stock options vest over a period of one to three years , dependent on continued service of the option holder, as well as the achievement of the performance objectives established on the grant date. The following table summarizes amounts related to share-based payments. Year Ended April 30, 2018 2017 2016 Share-based compensation expense included in SD&A $ 13.7 $ 22.3 $ 26.3 Share-based compensation expense (benefit) included in other special project costs 1.7 (0.3 ) (A) 8.3 Total share-based compensation expense $ 15.4 $ 22.0 $ 34.6 Related income tax benefit $ 4.6 $ 7.2 $ 10.2 (A) During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. For additional information, see Note 12: Share-Based Payments. As of April 30, 2018 , total unrecognized share-based compensation cost related to nonvested share-based awards was $42.6 . The weighted-average period over which this amount is expected to be recognized is 3.4 years . Prior to adoption of Accounting Standards Update (“ASU”) 2016-09, Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, realized excess tax benefits were presented in the Statements of Consolidated Cash Flows as a financing activity and were credited to additional capital in the Consolidated Balance Sheets. Realized shortfall tax benefits, amounts which are less than those previously recognized in earnings, were first offset against the cumulative balance of excess tax benefits, if any, and then charged directly to income tax expense. Upon adoption of ASU 2016-09, realized excess tax benefits are presented in the Statements of Consolidated Cash Flows as an operating activity and are recognized within income taxes in the Statements of Consolidated Income. For 2018 , 2017 , and 2016 , the excess tax benefits realized upon exercise or vesting of share-based compensation were $1.5 , $3.3 , and $2.7 , respectively. For further discussion on share-based compensation expense, see Note 12: Share-Based Payments. Defined Contribution Plans: We offer employee savings plans for domestic and Canadian employees. Our contributions under these plans are based on a specified percentage of employee contributions. Charges to operations for these plans in 2018 , 2017 , and 2016 were $36.3 , $31.9 , and $25.9 , respectively. For information on our defined benefit plans, see Note 9: Pensions and Other Postretirement Benefits. Income Taxes: We account for income taxes using the liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the applicable tax rate is recognized in income or expense in the period that the change is enacted. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. A tax benefit is recognized when it is more likely than not to be sustained. We account for the financial statement recognition and measurement criteria of a tax position taken or expected to be taken in a tax return under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes . ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. In accordance with the requirements of ASC 740, uncertain tax positions have been classified in the Consolidated Balance Sheets as noncurrent, except to the extent payment is expected within one year. We recognize net interest and penalties related to unrecognized tax benefits in income tax expense. On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Act”), which is commonly referred to as “The Tax Cuts and Jobs Act.” The Act provides for comprehensive tax legislation that reduces the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadens the U.S. federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred, and introduces new taxes on certain foreign-sourced earnings. The provisional effect of the rate reduction and other pronouncements of the Act on our deferred tax asset and liability, and current and noncurrent tax payable balances have been accounted for in our 2018 financial statements, in accordance with recently issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which allows a measurement period of up to one year after the enactment date to finalize our initial accounting for the impacts of the Act. For additional information, see Note 13: Income Taxes. Trade Receivables: In the normal course of business, we extend credit to customers. Trade receivables, less allowances, reflects the net realizable value of receivables and approximates fair value. We evaluate our trade receivables and establish an allowance for doubtful accounts based on a combination of factors. When aware that a specific customer has been impacted by circumstances such as bankruptcy filings or deterioration in the customer’s operating results or financial position, potentially making it unable to meet its financial obligations, we record a specific reserve for bad debt to reduce the related receivable to the amount we reasonably believe is collectible. We also record reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due, historical collection experience, and an evaluation of current and projected economic conditions at the balance sheet date. Trade receivables are charged off against the allowance after we determine that the potential for recovery is remote. At April 30, 2018 and 2017 , the allowance for doubtful accounts was $1.1 and $1.6 , respectively. We believe there is no concentration of risk with any single customer whose failure or nonperformance would materially affect results other than as discussed in Note 5: Reportable Segments. Inventories: Inventories are stated at the lower of cost or market, with market being defined as net realizable value, less costs to sell. Cost for all inventories is determined using the first-in, first-out method applied on a consistent basis. The cost of finished products and work-in-process inventory includes materials, direct labor, and overhead. Work-in-process is included in finished products in the Consolidated Balance Sheets and was $80.9 and $72.2 at April 30, 2018 and 2017 , respectively. Derivative Financial Instruments: We account for derivative instruments in accordance with FASB ASC 815, Derivatives and Hedging , which requires all derivative instruments to be recognized in the financial statements and measured at fair value, regardless of the purpose or intent for holding them. We do not qualify commodity derivatives or instruments used to manage foreign currency exchange exposures 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 derivatives are economic hedges of our risk exposure. The exposures hedged have a high inverse correlation to price changes of the derivative 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. We utilize derivative instruments to manage changes in the fair value and cash flows 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 net impact on earnings. Property, Plant, and Equipment: Property, plant, and equipment is recognized at cost and is depreciated on a straight-line basis over the estimated useful life of the asset ( 3 to 20 years for machinery and equipment, 1 to 7 years for capitalized software costs, and 5 to 40 years for buildings, fixtures, and improvements). We lease certain land, buildings, and equipment for varying periods of time, with renewal options. Rent expense in 2018 , 2017 , and 2016 totaled $95.2 , $101.0 , and $92.5 , respectively. As of April 30, 2018 , our minimum operating lease obligations were as follows: $42.8 in 2019 , $37.5 in 2020 , $33.3 in 2021 , $29.9 in 2022 , and $29.1 in 2023 . In accordance with FASB ASC 360, Property, Plant, and Equipment , long-lived assets, other than goodwill and other indefinite-lived intangible assets, are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows we estimate to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the assets exceeds their estimated fair value. Assets to be disposed of by sale are recognized as held for sale at the lower of carrying value or fair value less costs to sell. Goodwill and Other Intangible Assets: Goodwill is the excess of the purchase price paid over the estimated fair value of the net assets of a business acquired. In accordance with FASB ASC 350, Intangibles – Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are reviewed at least annually for impairment. We conduct our annual test for impairment of goodwill and other indefinite-lived intangible assets as of February 1 of each year. As of the current year annual impairment test date, we had seven reporting units. A discounted cash flow valuation technique was utilized to estimate the fair value of our reporting units and indefinite-lived intangible assets. We also used a market-based approach to estimate the fair value of our reporting units. The discount rates utilized in the cash flow analyses were developed using a weighted-average cost of capital methodology. In addition to the annual test, we test for impairment if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying amount. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which are evaluated on an annual basis. For additional information, see Note 7: Goodwill and Other Intangible Assets. Marketable Securities and Other Investments: We maintain funds for the payment of benefits associated with nonqualified retirement plans. These funds include investments considered to be available-for-sale marketable securities. At April 30, 2018 and 2017 , the fair value of these investments was $45.8 and $47.3 , respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2018 and 2017 , were unrealized pre-tax gains of $4.7 and $6.3 , respectively. Equity Method Investments: Investments in common stock of entities other than our consolidated subsidiaries are accounted for under the equity method in accordance with FASB ASC 323, Investments – Equity Method and Joint Ventures . Under the equity method, the initial investment is recorded at cost and the investment is subsequently adjusted for its proportionate share of earnings or losses, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. The difference between the carrying amount of the investment and the underlying equity in net assets is primarily attributable to goodwill and other intangible assets. During 2017, we sold our 25 percent equity interest in Guilin Seamild Biologic Technology Development Co., Ltd. (“Seamild”), a privately-owned manufacturer and marketer of oats products in China. We received proceeds from the sale of $40.6 , net of transaction costs, and recognized a pre-tax gain of $3.8 during 2017. The initial investment in Seamild was in 2012 for $35.9 and was included in other noncurrent assets in the Consolidated Balance Sheets. The investment in Seamild did not have a material impact on International and Away From Home or the consolidated financial statements for the year ended April 30, 2017 . Additionally, we have a 20 percent equity interest in Mountain Country Foods, LLC, and a 44 percent equity interest in Numi, Inc. The carrying amount of these investments is included in other noncurrent assets in the Consolidated Balance Sheets. The investments did not have a material impact on the consolidated financial statements or the respective reportable segment to which they relate for the years ended April 30, 2018 and 2017 . Foreign Currency Translation: Assets and liabilities of foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates, while income and expenses are translated using average rates throughout the periods. Translation adjustments are reported as a component of shareholders’ equity in accumulated other comprehensive income (loss). Included in accumulated other comprehensive income (loss) at April 30, 2018 and 2017 , were foreign currency losses of $16.4 and $43.0 , respectively. Recently Issued Accounting Standards: In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which amends FASB ASC 740 to add the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) 118 concerning the application of U.S. GAAP when preparing the initial accounting for the income tax effects of the Act, which was enacted on December 22, 2017. SAB 118 addresses the specific situation in which the initial accounting for certain income tax effects of the Act will not be complete at the time that financial statements are issued covering the reporting period that includes the enactment date, specifically allowing a measurement period of up to one year after the enactment date to finalize our initial accounting for the impacts of the Act. For additional information, see Note 13: Income Taxes. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification of the income tax effects of the enactment of the Act on items that are stranded in accumulated other comprehensive income to retained earnings. This standard also requires certain disclosures about stranded tax effects. This ASU, however, does not change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU 2018-02 is effective for us on May 1, 2019, but we have elected to early adopt as of February 1, 2018, as permitted, so that the tax effects of items within accumulated other comprehensive income are reflected at the appropriate tax rate. Early adoption of this ASU had an overall immaterial impact on our financial statements and disclosures. For additional information, see Note 13: Income Taxes. In August 2017, the FASB issued 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 financial statements and disclosures. For additional information, see Note 10: Derivative Financial Instruments. 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 will be eligible for capitaliza tion. ASU 2017-07 will be effective for us on May 1, 2018. 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 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 is effective for us on May 1, 2020, but we have elected to early adopt on a prospective basis during 2018, as permitted. 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 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 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 requires a modified retrospective application for leases existing at, or entered into after, the beginning of the earliest comparative period presented and may exclude any leases that expired before the date of initial application. However, the FASB has recently proposed guidance that would allow adoption of the standard as of the effective date without restating prior periods. We are currently compiling an inventory of our lease arrangements in order to determine the impact the new guidance will have on our financial statements and disclosures. We have selected new lease accounting software in preparation for the standard’s additional reporting requirements and will begin implementation during the first quarter of 2019. Based on our assessment to date, we expect that the adoption of ASU 2016-02 will result in a significant increase in lease-related assets and liabilities recognized 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 implementation of the standard is complete, with the exception of evaluating the newly acquired Ainsworth Pet Nutrition, LLC (“Ainsworth”) business. 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 will materially impact our financial statements, and therefore we intend to utilize the modified retrospective transition method. Risks and Uncertainties: The raw materials we use are primarily commodities, agricultural-based products, and packaging materials. The principal packaging materials we use are plastic, glass, metal cans, caps, carton board, and corrugate. Green coffee, peanuts, oils and fats, protein meals, sweeteners, grains, fruit, and other ingredients are obtained from various suppliers. The availability, quality, and cost of many of these commodities have fluctuated, and may continue to fluctuate over time. Green coffee is sourced solely from foreign countries, and its supply and price are subject to high volatility due to factors such as weather, global supply and demand, plant disease, investor speculation, and political and economic conditions in the source countries. Raw materials are generally available from numerous sources, although we have elected to source certain plastic packaging materials and finished goods, such as our Pup-Peroni ® dog snacks, from single sources of supply pursuant to long-term contracts. While availability may vary from year to year, we believe that we will continue to be able to obtain adequate supplies and that alternatives to single-sourced materials are available. We have not historically encountered significant shortages of key raw materials. We consider our relationships with key material suppliers to be in good standing. We have consolidated our production capacity for certain products, including substantially all of our coffee, Milk-Bone ® dog snacks, fruit spreads, toppings, syrups, and Uncrustables ® frozen sandwiches, into single manufacturing sites. Although steps are taken at all of our manufacturing sites to reduce the likelihood of a production disruption, an interruption at a single manufacturing site would result in a reduction or elimination of the availability of some of our products for a period of time. Of our total employees, 28 percent are covered by union contracts at 10 manufacturing locations. The contracts vary in term, with one contract expiring in 2019, representing less than 1 percent of our total employees. We insure our business and assets in each country against insurable risks, to the extent that we deem appropriate, based upon an analysis of the relative risks and costs. |
Acquisitions
Acquisitions | 12 Months Ended |
Apr. 30, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | NOTE 2 ACQUISITIONS During the fourth quarter of 2018, we announced a definitive agreement to acquire the stock of Ainsworth. On May 14, 2018, we completed the all-cash transaction, valued at $1.9 billion , which was funded with a new $1.5 billion bank term loan and $400.0 in borrowings under our commercial paper program. For additional information on the financing associated with this transaction, refer to Note 8: Debt and Financing Arrangements. Ainsworth is a leading producer, distributor, and marketer of premium pet food and pet snacks, predominantly within the U.S. Approximately two-thirds of Ainsworth’s sales are generated by the Rachael Ray ® Nutrish ® brand, which is driving significant growth in the premium pet food category. Ainsworth also sells pet food and pet snacks under several additional branded and private label trademarks. Ainsworth was a privately-held company headquartered in Meadville, Pennsylvania. In addition to its headquarters, the transaction includes two manufacturing facilities owned by Ainsworth, which are located in Meadville, Pennsylvania, and Frontenac, Kansas, and a leased distribution facility in Greenville, Pennsylvania. We expect to incur approximately $50.0 in one-time costs related to the acquisition, of which the majority are expected to be cash charges. The one-time costs will consist primarily of employee-related costs, outside service and consulting costs, and other costs directly related to the acquisition. Approximately two-thirds of these one-time costs are expected to be recognized by the end of 2019. The purchase price will be preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition and is subject to change as we complete our analysis of their fair values during the measurement period not to exceed one year as permitted under FASB ASC 805, Business Combinations . Due to the transaction closing subsequent to 2018, we will complete and disclose the preliminary purchase price allocation during the first quarter of 2019; however, we anticipate the majority of the purchase price will be allocated to goodwill and other intangible assets. The acquisition will be included within the U.S. Retail Pet Foods reportable segment and Pet Foods reporting unit. On March 5, 2018, the U.S. Federal Trade Commission announced an administrative complaint challenging the proposed transaction to acquire the Wesson ® oil brand from Conagra Brands, Inc. (“Conagra”). As a result, we mutually determined with Conagra to terminate the definitive agreement to acquire the Wesson brand. |
Integration and Restructuring C
Integration and Restructuring Costs | 12 Months Ended |
Apr. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Integration and Restructuring Costs | NOTE 3 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 Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Consolidated Balance Sheets. Integration Costs: As of April 30, 2018, all integration activities related to the acquisition of Big Heart Pet Brands (“Big Heart”) were considered complete. T he following table summarizes the one-time costs incurred in relation to the Big Heart acquisition. 2018 2017 2016 Total Costs Employee-related costs $ 8.5 $ 16.3 $ 52.4 $ 90.6 Outside service and consulting costs 11.6 33.9 56.0 117.6 Other costs 6.5 13.9 36.8 63.7 Total one-time costs $ 26.6 $ 64.1 $ 145.2 $ 271.9 Noncash charges of $2.6 , $3.2 , and $18.9 were included in the total one-time costs incurred in 2018 , 2017 , and 2016 , respectively. Noncash charges included in total one-time costs incurred to date were $30.4 , which primarily consisted of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.1 and $5.3 at April 30, 2018 and 2017 , respectively. Restructuring Costs: An organization optimization program was approved by the Board of Directors (the “Board”) during the fourth quarter of 2016. Under this program, we identified opportunities to reduce costs and optimize the organization. Related projects include an organizational redesign and the optimization of our manufacturing footprint. In addition, the program was recently expanded to include the restructuring of our geographic footprint, which includes the centralization of our pet food and pet snacks business, as well as certain International non-manufacturing functions, to our corporate headquarters in Orrville, Ohio, furthering collaboration and enhanced agility, while improving cost efficiency. As a result, we plan to close the San Francisco and Burbank, California, offices by the end of 2019, and our international offices in China and Mexico during the first half of 2019. The majority of these costs are expected to be incurred through the end of 2019. During 2017, we exited two leased facilities in Livermore, California, and consolidated all ancient grains and pasta production into our facility in Chico, California. During 2018, we consolidated all of our coffee produced at our Harahan, Louisiana, facility into one of our facilities in New Orleans, Louisiana, and this portion of the optimization program is nearly complete. To date, the organization optimization program has resulted in total headcount reductions of approximately 275 full-time positions. We do not anticipate significant headcount reductions associated with the expansion of the program. Upon completion of this program, total restructuring costs are expected to be approximately $75.0 , 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. T he following table summarizes our one-time costs incurred in relation to the organization optimization program. 2018 2017 2016 Total Costs Incurred to Date at April 30, 2018 Employee-related costs $ 10.1 $ 12.4 $ 1.3 $ 23.8 Outside service and consulting costs 0.4 1.8 — 2.2 Other costs 12.2 4.4 — 16.6 Total one-time costs $ 22.7 $ 18.6 $ 1.3 $ 42.6 Noncash charges of $9.8 and $2.1 were included in the one-time costs incurred during 2018 and 2017, respectively, and we did no t incur any noncash charges during 2016. Noncash charges included in total one-time costs incurred to date were $11.9 , and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.3 and $3.3 at April 30, 2018 and 2017, respectively. |
Divestiture
Divestiture | 12 Months Ended |
Apr. 30, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | NOTE 4 DIVESTITURE On December 31, 2015, we sold our U.S. canned milk brands and operations to Eagle Family Foods Group LLC, a subsidiary of funds affiliated with Kelso & Company. The transaction included canned milk products that were primarily sold in U.S. retail and foodservice channels under the Eagle Brand ® and Magnolia ® brands, along with other branded and private label trade names, with annual net sales of approximately $200.0 . Our manufacturing facilities in El Paso, Texas, and Seneca, Missouri, were included in the transaction, but our canned milk business in Canada was excluded from the divestiture. The operating results for this business were primarily included in the U.S. Retail Consumer Foods segment prior to the sale on December 31, 2015. We received proceeds from the divestiture of $193.7 , which were net of transaction costs and a working capital adjustment. Upon completion of the transaction, we recognized a pre-tax gain of $25.3 in 2016. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segments | NOTE 5 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, previously referred to as International and Foodservice. During 2018, we added International and Away From Home as a reportable segment because 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 and not individually significant. 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 domestic sales of Jif ® , Smucker’s ® , Crisco ® , and Pillsbury ® branded products; and the U.S. Retail Pet Foods segment primarily includes 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, unallocated gains and losses on commodity and foreign currency exchange derivative activities, as well as amortization expense and impairment charges related to intangible assets. Consistent with prior periods, commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures. Year Ended April 30, 2018 2017 2016 Net sales: U.S. Retail Coffee $ 2,092.2 $ 2,108.6 $ 2,239.2 U.S. Retail Consumer Foods 2,000.8 2,085.4 2,269.7 U.S. Retail Pet Foods 2,169.3 2,135.9 2,250.4 International and Away From Home 1,094.8 1,062.4 1,051.9 Total net sales $ 7,357.1 $ 7,392.3 $ 7,811.2 Segment profit: U.S. Retail Coffee $ 614.5 $ 682.4 $ 722.6 U.S. Retail Consumer Foods 477.2 458.2 467.5 U.S. Retail Pet Foods 441.3 481.0 493.9 International and Away From Home 194.2 185.1 179.0 Total segment profit $ 1,727.2 $ 1,806.7 $ 1,863.0 Amortization (206.8 ) (207.3 ) (208.4 ) Goodwill impairment charge (145.0 ) — — Other intangible assets impairment charges (31.9 ) (133.2 ) — Interest expense – net (174.1 ) (163.1 ) (171.1 ) Unallocated derivative gains (losses) 37.3 (27.2 ) 12.0 Cost of products sold – special project costs (A) (3.9 ) (5.7 ) (12.2 ) Other special project costs (A) (45.4 ) (76.9 ) (135.9 ) Corporate administrative expenses (295.4 ) (324.9 ) (373.2 ) Other income (expense) – net (1.0 ) 10.0 3.7 Income before income taxes $ 861.0 $ 878.4 $ 977.9 Assets: U.S. Retail Coffee $ 4,815.4 $ 4,909.9 $ 5,002.0 U.S. Retail Consumer Foods 3,217.5 3,157.2 3,288.5 U.S. Retail Pet Foods 5,932.3 6,232.9 6,321.6 International and Away From Home 1,043.9 1,053.4 1,168.6 Unallocated (B) 292.1 286.3 203.4 Total assets $ 15,301.2 $ 15,639.7 $ 15,984.1 Depreciation, amortization, and impairment charges: U.S. Retail Coffee $ 96.6 $ 95.7 $ 104.0 U.S. Retail Consumer Foods 80.2 73.2 60.7 U.S. Retail Pet Foods 314.8 280.8 164.9 International and Away From Home 57.8 61.9 66.2 Unallocated (C) 40.6 40.6 34.3 Total depreciation, amortization, and impairment charges $ 590.0 $ 552.2 $ 430.1 Additions to property, plant, and equipment: U.S. Retail Coffee $ 89.4 $ 40.9 $ 51.4 U.S. Retail Consumer Foods 168.9 49.7 90.3 U.S. Retail Pet Foods 34.3 70.5 11.9 International and Away From Home 29.3 31.3 47.8 Total additions to property, plant, and equipment $ 321.9 $ 192.4 $ 201.4 (A) Special project costs include integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. (B) Primarily represents unallocated cash and cash equivalents and corporate-held investments. (C) Primarily represents unallocated corporate administrative expense, mainly depreciation and software amortization. The following table presents certain geographical information. Year Ended April 30, 2018 2017 2016 Net sales: United States $ 6,786.5 $ 6,865.1 $ 7,300.8 International: Canada $ 431.8 $ 414.3 $ 416.0 All other international 138.8 112.9 94.4 Total international $ 570.6 $ 527.2 $ 510.4 Total net sales $ 7,357.1 $ 7,392.3 $ 7,811.2 Assets: United States $ 14,828.2 $ 15,214.3 $ 15,501.1 International: Canada $ 428.7 $ 380.9 $ 396.2 All other international 44.3 44.5 86.8 Total international $ 473.0 $ 425.4 $ 483.0 Total assets $ 15,301.2 $ 15,639.7 $ 15,984.1 Long-lived assets (excluding goodwill and other intangible assets): United States $ 1,869.8 $ 1,757.1 $ 1,773.9 International: Canada $ 17.4 $ 13.4 $ 10.7 All other international 0.3 0.4 40.6 Total international $ 17.7 $ 13.8 $ 51.3 Total long-lived assets (excluding goodwill and other intangible assets) $ 1,887.5 $ 1,770.9 $ 1,825.2 The following table presents product category sales as a percentage of consolidated net sales. Year Ended April 30, 2018 2017 2016 Coffee 34 % 34 % 34 % Dog food 11 10 10 Pet snacks 10 10 10 Peanut butter 10 10 9 Cat food 9 9 9 Fruit spreads 5 5 4 Shortening and oils 4 4 4 Baking mixes and frostings 3 3 3 Frozen handheld 3 3 3 Flour and baking ingredients 2 2 2 Juices and beverages 2 2 2 Portion control 2 2 2 Canned milk 1 1 3 Other 4 5 5 Total product sales 100 % 100 % 100 % Sales to Walmart Inc. and subsidiaries amounted to 31 percent of net sales in 2018, and 30 percent of net sales in both 2017 and 2016 . These sales are primarily included in our U.S. retail market segments. No other customer exceeded 10 percent of net sales for any year. Trade receivables at April 30, 2018 and 2017 , included amounts due from Walmart Inc. and subsidiaries of $123.1 and $138.2 , respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per Share | NOTE 6 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. Year Ended April 30, 2018 2017 2016 Net income $ 1,338.6 $ 592.3 $ 688.7 Less: Net income allocated to participating securities 6.8 2.8 3.0 Net income allocated to common stockholders $ 1,331.8 $ 589.5 $ 685.7 Weighted-average common shares outstanding 113.0 115.5 118.9 Add: Dilutive effect of stock options — 0.1 0.1 Weighted-average common shares outstanding – assuming dilution 113.0 115.6 119.0 Net income per common share $ 11.79 $ 5.11 $ 5.77 Net income per common share – assuming dilution $ 11.78 $ 5.10 $ 5.76 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | NOTE 7 GOODWILL AND OTHER INTANGIBLE ASSETS A summary of changes in goodwill by reportable segment is as follows: U.S. Retail Coffee U.S. Retail Consumer Foods U.S. Retail Pet Foods International and Away From Home Total Balance at May 1, 2016 $ 2,090.9 $ 1,600.9 $ 1,969.5 $ 429.8 $ 6,091.1 Other (A) — (1.9 ) — (12.1 ) (14.0 ) Balance at April 30, 2017 $ 2,090.9 $ 1,599.0 $ 1,969.5 $ 417.7 $ 6,077.1 Impairment charges (B) — — (145.0 ) — (145.0 ) Other (A) — 1.4 — 8.7 10.1 Balance at April 30, 2018 $ 2,090.9 $ 1,600.4 $ 1,824.5 $ 426.4 $ 5,942.2 (A) The amounts classified as other represent foreign currency exchange adjustments. (B) There have been no goodwill impairment charges recognized in prior periods. T he following table summarizes our other intangible assets and related accumulated amortization and impairment charges, including foreign currency exchange adjustments. April 30, 2018 April 30, 2017 Acquisition Cost Accumulated Amortization/ Impairment Charges/ Foreign Currency Exchange Net Acquisition Cost Accumulated Amortization/ Impairment Charges/ Foreign Currency Exchange Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 3,520.1 $ 959.3 $ 2,560.8 $ 3,520.1 $ 802.1 $ 2,718.0 Patents and technology 168.5 114.4 54.1 168.5 101.4 67.1 Trademarks 556.4 145.0 411.4 556.4 112.7 443.7 Total intangible assets subject to amortization $ 4,245.0 $ 1,218.7 $ 3,026.3 $ 4,245.0 $ 1,016.2 $ 3,228.8 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 3,078.1 $ 187.9 $ 2,890.2 $ 3,078.1 $ 157.0 $ 2,921.1 Total other intangible assets $ 7,323.1 $ 1,406.6 $ 5,916.5 $ 7,323.1 $ 1,173.2 $ 6,149.9 Amortization expense for finite-lived intangible assets was $204.8 , $205.9 , and $204.7 in 2018 , 2017 , and 2016 , respectively. The weighted-average useful lives of the customer and contractual relationships, patents and technology, and trademarks are 23 years, 14 years, and 16 years, respectively. The weighted-average useful life of total finite-lived intangible assets is 22 years. Based on the carrying amount of intangible assets subject to amortization at April 30, 2018 , the estimated amortization expense is $205.1 for 2019 , $200.4 for 2020 , $198.8 for 2021 , $193.4 for 2022 , and $186.0 for 2023 . During the third quarter of 2018, we completed our annual long-range planning process, which resulted in a decline in forecasted net sales for the U.S. Retail Pet Foods segment. As a result of the decreased projections, as well as the narrow differences between estimated fair value and carrying value, we performed an interim impairment analysis on the goodwill of the Pet Foods reporting unit and the indefinite-lived trademarks included within the U.S. Retail Pet Foods segment, which was prior to the annual impairment review performed as of February 1, 2018. We recognized total impairment charges of $176.9 , of which $145.0 and $31.9 related to the goodwill of the Pet Foods reporting unit and certain indefinite-lived trademarks within the U.S. Retail Pet Foods segment, respectively, to the extent the carrying values exceeded the estimated fair values. These charges were included as a noncash charge in our Statement of Consolidated Income. Furthermore, we early adopted ASU 2017-04, Intangibles – Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment, in connection with the interim impairment analysis. As a result, we did not perform Step 2 of the goodwill impairment test for the goodwill of the Pet Foods reporting unit and recorded the impairment charge based on the excess of the reporting unit’s carrying value over its fair value. For further details, refer to Note 1: Accounting Policies. As of February 1, 2018, we completed the annual impairment review, in which goodwill impairment was tested at the reporting unit level for our seven reporting units. As part of our annual evaluation, we did not recognize any other impairment charges related to our goodwill and indefinite-lived trademarks. The estimated fair value of each reporting unit and material indefinite-lived intangible asset was substantially in excess of its carrying value as of the annual test date, with the exception of the Pet Foods reporting unit and all indefinite-lived trademarks within the U.S. Retail Pet Foods segment. Additional sensitivity analyses were performed for the Pet Foods reporting unit, assuming a hypothetical 50-basis-point decrease in the expected long-term growth rate or a hypothetical 50-basis-point increase in the weighted-average cost of capital. Both scenarios independently yielded an estimated fair value for the Pet Foods reporting unit below carrying value. During 2017, we recognized total impairment charges of $133.2 primarily related to certain indefinite-lived trademarks within the U.S. Retail Pet Foods segment and did no t recognize any impairment charges related to goodwill. The goodwill and indefinite-lived trademarks within the U.S. Retail Pet Foods segment remain susceptible to future impairment charges, as the carrying values approximate estimated fair values at April 30, 2018. In addition, any meaningful adverse change to our near or long-term projections or macro-economic conditions could result in future impairment charges. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Apr. 30, 2018 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | NOTE 8 DEBT AND FINANCING ARRANGEMENTS Long-term debt consists of the following: April 30, 2018 April 30, 2017 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ — $ — $ 500.0 $ 499.0 2.20% Senior Notes due December 6, 2019 300.0 298.6 — — 2.50% Senior Notes due March 15, 2020 500.0 497.8 500.0 496.6 3.50% Senior Notes due October 15, 2021 750.0 775.6 750.0 782.6 3.00% Senior Notes due March 15, 2022 400.0 397.3 400.0 396.6 3.50% Senior Notes due March 15, 2025 1,000.0 994.4 1,000.0 993.6 3.38% Senior Notes due December 15, 2027 500.0 495.8 — — 4.25% Senior Notes due March 15, 2035 650.0 643.1 650.0 642.6 4.38% Senior Notes due March 15, 2045 600.0 585.4 600.0 584.9 Term Loan Credit Agreement due March 23, 2020 — — 550.0 548.6 Total long-term debt $ 4,700.0 $ 4,688.0 $ 4,950.0 $ 4,944.5 Current portion of long-term debt — — 500.0 499.0 Total long-term debt, less current portion $ 4,700.0 $ 4,688.0 $ 4,450.0 $ 4,445.5 (A) Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. On April 27, 2018, we entered into a senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) with a syndicate of banks and an available commitment amount of $1.5 billion . Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or London Interbank Offered Rate (“LIBOR”), based on our election, and is payable either on a quarterly basis or at the end of the borrowing term. The Term Loan does not require scheduled amortization payments. Voluntary prepayments are permitted without premium or penalty. As of April 30, 2018, no balance was drawn on the Term Loan. The full amount of the Term Loan was drawn on May 14, 2018, at an interest rate of 3.04 percent, to partially finance the Ainsworth acquisition, as discussed in Note 2: Acquisitions. The Term Loan matures on May 14, 2021. We have incurred total capitalized debt issuance costs of $2.8 , of which $0.8 was incurred during 2018, and will be amortized to interest expense over the time period for which the debt is outstanding. Prior to entering into the new Term Loan, we entered into a commitment letter for a $1.9 billion 364-day senior unsecured Bridge Term Loan Credit Facility that provided committed financing for the Ainsworth acquisition. This commitment letter was terminated upon entry into the Term Loan on April 27, 2018. Financing fees were included in interest expense – net on the Statement of Consolidated Income at April 30, 2018. In December 2017, we completed an offering of $800.0 in Senior Notes due December 6, 2019, and December 15, 2027. The Senior Notes included $6.1 of capitalized debt issuance costs and offering discounts to be amortized to interest expense over the time for which the debt is outstanding. The net proceeds from the offering were used to prepay the $500.0 in principal amount of the Senior Notes due March 15, 2018. In addition, we prepaid, in full, the remaining outstanding balance of the $1.8 billion term loan due March 23, 2020. As a result of prepaying both the Senior Notes due March 15, 2018, and the term loan due March 23, 2020, we recognized debt costs of $1.7 , which primarily consisted of the write-off of capitalized debt issuance costs, and were included in interest expense. Concurrent with the pricing of the Senior Notes due December 15, 2027, we terminated the treasury lock, entered into in June 2017, prior to maturity, resulting in a gain of $2.7 , which was deferred and included as a component of accumulated other comprehensive income (loss) and is being amortized as a reduction to interest expense over the life of the debt. For additional information on the treasury lock, see Note 10: Derivative Financial Instruments. All of our Senior Notes outstanding at April 30, 2018, 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. 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 included $4.1 of capitalized debt issuance costs, which are being amortized to interest expense over the time period for which the revolving credit facility is effective. Borrowings under the revolving credit facility bear interest on the prevailing U.S. Prime 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 both April 30, 2018 and 2017. 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 term loan due March 23, 2020, and all of our outstanding Senior Notes were released. For additional information, see Note 16: Guarantor and Non-Guarantor Financial Information. 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 April 30, 2018 and 2017, we had $144.0 and $454.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 2.20 percent and 1.15 percent, respectively. On May 14, 2018, we issued $400.0 of commercial paper at a weighted-average interest rate of 2.27 percent to partially finance the Ainsworth acquisition, as discussed in Note 2: Acquisitions. Interest paid totaled $158.9 , $162.2 , and $167.3 in 2018 , 2017 , and 2016 , respectively. This differs from interest expense due to the amortization of debt issuance costs and discounts, timing of interest payments, effect of interest rate contracts, other debt fees, and capitalized interest. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio, which was amended in connection with the execution of the new Term Loan, and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2018 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | NOTE 9 PENSIONS AND OTHER POSTRETIREMENT BENEFITS We have defined benefit pension plans covering certain U.S. and Canadian employees. Pension benefits are based on the employee’s years of service and compensation levels. Our plans are funded in conformity with the funding requirements of applicable government regulations. In addition to providing pension benefits, we sponsor several unfunded postretirement plans that provide health care and life insurance benefits to certain retired U.S. and Canadian employees. These plans are contributory, with retiree contributions adjusted periodically, and contain other cost-sharing features, such as deductibles and coinsurance. Covered employees generally are eligible for these benefits when they reach age 55 and have attained 10 years of credited service . The following table summarizes the components of net periodic benefit cost and the change in accumulated other comprehensive income (loss) related to the defined benefit pension and other postretirement plans. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2018 2017 2016 2018 2017 2016 Service cost $ 5.2 $ 12.7 $ 17.8 $ 2.0 $ 2.3 $ 2.3 Interest cost 21.6 25.3 27.7 2.1 2.6 2.8 Expected return on plan assets (28.8 ) (29.3 ) (32.9 ) — — — Amortization of prior service cost (credit) 0.9 1.1 0.7 (1.4 ) (1.5 ) (1.1 ) Amortization of net actuarial loss (gain) 11.5 13.8 10.9 (0.3 ) (0.2 ) (0.3 ) Curtailment loss (gain) — — (6.5 ) — — (0.3 ) Settlement loss (gain) 2.3 (0.7 ) — — — — Net periodic benefit cost $ 12.7 $ 22.9 $ 17.7 $ 2.4 $ 3.2 $ 3.4 Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive income (loss) before income taxes: Prior service credit (cost) arising during the year $ — $ 2.1 $ (5.3 ) $ (0.2 ) $ 3.0 $ — Net actuarial gain (loss) arising during the year 3.5 1.5 (43.3 ) 5.5 2.3 — Amortization of prior service cost (credit) 0.9 1.1 0.7 (1.4 ) (1.5 ) (1.1 ) Amortization of net actuarial loss (gain) 11.5 13.8 10.9 (0.3 ) (0.2 ) (0.3 ) Curtailment loss (gain) — 28.8 (6.5 ) — 0.1 (0.3 ) Settlement loss (gain) 2.3 (0.7 ) — — — — Foreign currency translation (1.8 ) 2.5 0.8 (0.1 ) — — Net change for year $ 16.4 $ 49.1 $ (42.7 ) $ 3.5 $ 3.7 $ (1.7 ) Weighted-average assumptions used in determining net periodic benefit costs: U.S. plans: Discount rate used to determine benefit obligation 3.95 % 3.85 % 4.06 % 3.86 % 3.80 % 4.04 % Discount rate used to determine service cost 4.20 3.85 4.06 4.06 3.80 4.04 Discount rate used to determine interest cost 3.38 3.85 4.06 3.24 3.80 4.04 Expected return on plan assets 6.27 6.27 6.58 — — — Rate of compensation increase 3.78 3.96 4.06 — — — Canadian plans: Discount rate used to determine benefit obligation 3.22 % 3.60 % 3.51 % 3.19 % 3.50 % 3.50 % Discount rate used to determine service cost 3.39 3.60 3.51 3.70 3.50 3.50 Discount rate used to determine interest cost 2.60 3.60 3.51 2.58 3.50 3.50 Expected return on plan assets 5.00 5.25 5.65 — — — Rate of compensation increase 3.00 3.00 3.00 — — — We amortize gains and losses for our postretirement plans over the average expected future period of vested service. For plans that consist of less than 5 percent of participants that are active, average life expectancy is used instead of the average expected useful service period. We use a measurement date of April 30 to determine defined benefit pension and other postretirement benefit plans’ assets and benefit obligations. The following table sets forth the combined status of the plans as recognized in the Consolidated Balance Sheets. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 677.3 $ 745.9 $ 70.7 $ 75.9 Service cost 5.2 12.7 2.0 2.3 Interest cost 21.6 25.3 2.1 2.6 Amendments — — 0.2 (3.0 ) Actuarial loss (gain) (10.8 ) 6.7 (5.5 ) (2.3 ) Benefits paid (36.0 ) (43.8 ) (4.3 ) (3.9 ) Foreign currency translation adjustments 5.8 (7.8 ) 0.7 (0.8 ) Curtailment — (30.9 ) — (0.1 ) Settlement (23.4 ) (30.8 ) — — Benefit obligation at end of year $ 639.7 $ 677.3 $ 65.9 $ 70.7 Change in plan assets: Fair value of plan assets at beginning of year $ 489.2 $ 505.6 $ — $ — Actual return on plan assets 21.5 37.4 — — Company contributions 39.6 28.7 4.3 3.9 Benefits paid (36.0 ) (43.8 ) (4.3 ) (3.9 ) Settlement (23.4 ) (30.8 ) — — Foreign currency translation adjustments 6.1 (7.9 ) — — Fair value of plan assets at end of year $ 497.0 $ 489.2 $ — $ — Funded status of the plans $ (142.7 ) $ (188.1 ) $ (65.9 ) $ (70.7 ) Defined benefit pensions $ (144.1 ) $ (189.8 ) $ — $ — Other noncurrent assets 9.5 5.7 — — Accrued compensation (8.1 ) (4.0 ) (4.0 ) (4.1 ) Other postretirement benefits — — (61.9 ) (66.6 ) Net benefit liability $ (142.7 ) $ (188.1 ) $ (65.9 ) $ (70.7 ) During 2018, we made additional contributions to the defined benefit pension plans of $20.0 , which was funded by the current year tax savings that resulted from the tax legislation that was enacted during the third quarter of 2018. For further details on the tax legislation changes, refer to Note 13: Income Taxes. The following table summarizes amounts recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, before income taxes. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 Net actuarial gain (loss) $ (150.9 ) $ (166.4 ) $ 13.6 $ 8.5 Prior service credit (cost) (4.7 ) (5.6 ) 9.1 10.7 Total recognized in accumulated other comprehensive income (loss) $ (155.6 ) $ (172.0 ) $ 22.7 $ 19.2 During 2019 , we expect to recognize amortization of net actuarial losses and prior service credit of $7.7 and $0.4 , respectively, in net periodic benefit cost. During 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 during 2017. As a result of the plan changes, we realized savings in 2018 and expect to realize additional savings in the future. 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, which resulted in a benefit of approximately $4.3 in 2018. The following table sets forth the weighted-average assumptions used in determining the benefit obligations. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 U.S. plans: Discount rate 4.17 % 3.95 % 4.13 % 3.86 % Rate of compensation increase 3.59 4.15 — — Canadian plans: Discount rate 3.57 % 3.22 % 3.55 % 3.16 % Rate of compensation increase 3.00 3.00 — — For 2019 , the assumed health care trend rates are 6.8 percent and 4.5 percent for the U.S. and Canadian plans, respectively. The rate for participants under age 65 is assumed to decrease to 5.0 percent in calendar 2026 for the U.S. plan and remain at 4.5 percent for the Canadian plan. The health care cost trend rate assumption impacts the amount of the other postretirement benefits obligation and periodic other postretirement benefits cost reported. A one percentage point annual change in the assumed health care cost trend rate would have the following effect as of April 30, 2018 : One Percentage Point Increase Decrease Effect on total service and interest cost components $ — $ 0.1 Effect on benefit obligation 1.0 1.1 The following table sets forth selective information pertaining to our Canadian pension and other postretirement benefit plans, which is included in the consolidated information presented on pages 68 and 69. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2018 2017 2018 2017 Benefit obligation at end of year $ 87.6 $ 89.8 $ 7.3 $ 9.4 Fair value of plan assets at end of year 96.4 94.8 — — Funded status of the plans $ 8.8 $ 5.0 $ (7.3 ) $ (9.4 ) Components of net periodic benefit cost: Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 2.4 3.2 0.3 0.3 Expected return on plan assets (5.0 ) (4.7 ) — — Amortization of net actuarial loss (gain) 0.8 1.1 — — Net periodic benefit cost (credit) $ (1.6 ) $ (0.1 ) $ 0.3 $ 0.3 Changes in plan assets: Company contributions $ 0.9 $ 3.1 $ 0.5 $ 0.5 Benefits paid (6.8 ) (6.6 ) (0.5 ) (0.5 ) Actual return on plan assets 1.5 10.2 — — Foreign currency translation 6.0 (7.9 ) — — The following table sets forth additional information related to our defined benefit pension plans. April 30, 2018 2017 Accumulated benefit obligation for all pension plans $ 627.9 $ 659.6 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 541.3 $ 570.6 Fair value of plan assets 400.6 394.4 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 552.9 $ 588.2 Fair value of plan assets 400.6 394.4 We employ a total return on investment approach for the defined benefit pension plans’ assets. A mix of equity, fixed-income, and alternative investments is used to maximize the long-term rate of return on assets for the level of risk. In determining the expected long-term rate of return on the defined benefit pension plans’ assets, we consider the historical rates of return, the nature of investments, the asset allocation, and expectations of future investment strategies. The actual rate of return was 5.4 percent and 8.3 percent for the years ended April 30, 2018 and 2017 , respectively, which excludes administrative and investment expenses. The following tables summarize the major asset classes for the U.S. and Canadian defined benefit pension plans and the levels within the fair value hierarchy for those assets measured at fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets at April 30, 2018 Cash and cash equivalents (A) $ 3.7 $ — $ — $ 3.7 Equity securities: U.S. (B) 94.8 1.9 — 96.7 International (C) 73.2 9.7 — 82.9 Fixed-income securities: Bonds (D) 231.8 — — 231.8 Fixed income (E) 53.0 — — 53.0 Other types of investments (F) — 16.8 3.2 20.0 Total financial assets measured at fair value $ 456.5 $ 28.4 $ 3.2 $ 488.1 Total financial assets measured at net asset value (G) 8.9 Total plan assets $ 497.0 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets at April 30, 2017 Cash and cash equivalents (A) $ 2.7 $ — $ — $ 2.7 Equity securities: U.S. (B) 128.9 1.9 — 130.8 International (C) 81.4 10.5 — 91.9 Fixed-income securities: Bonds (D) 168.5 — — 168.5 Fixed income (E) 71.9 — — 71.9 Other types of investments (F) 6.7 4.5 2.4 13.6 Total financial assets measured at fair value $ 460.1 $ 16.9 $ 2.4 $ 479.4 Total financial assets measured at net asset value (G) 9.8 Total plan assets $ 489.2 (A) This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. (B) This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. (C) This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. (D) This category is primarily comprised of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years . In 2018, this category is further comprised of various U.S. Treasury Separate Trading of Registered Interest and Principal (“STRIP”) holdings, with wide-ranging maturity dates. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (E) This category is comprised of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (F) This category is comprised of a real estate fund whereby the underlying investments are contained in the Canadian market and a private limited investment partnership in 2017, and in 2018, this category also included a common collective trust fund investing in direct commercial property funds. In 2017, the category included a dynamic asset allocation mutual fund, which was comprised of U.S. and global equities and fixed-income securities inclusive of derivatives within the asset mix. The dynamic asset allocation mutual fund was classified as a Level 1 asset, whereby the assets are valued using quoted market prices for identical securities in active markets. The real estate fund and the collective trust fund investing in direct commercial property are classified as a Level 2 asset, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. The private investment limited partnership is classified as a Level 3 asset. The investments in the partnership are valued at estimated fair value based on audited financial statements received from the general partner. The private investment limited partnership cannot be redeemed, and the return of principal is based on the liquidation of the underlying assets. (G) This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds. The fair value estimate of the private equity fund is based on the underlying funds’ net asset values further as a practical expedient equivalent to the Company’s defined benefit plan’s ownership interest in partners’ capital, whereby a proportionate share of the net assets is attributed and further corroborated by our review. The private equity fund is non-redeemable, and the return of principal is based on the liquidation of the underlying assets. In accordance with ASU 2015-07, the private equity fund is removed from the total financial assets measured at fair value and disclosed separately. The following table presents a rollforward of activity for Level 3 assets. 2018 2017 Balance at May 1, $ 2.4 $ 3.2 Actual return on plan assets still held at reporting date 0.8 (0.8 ) Balance at April 30, $ 3.2 $ 2.4 Our current investment policy is to invest 50 percent of assets in both equity securities and fixed-income securities. Included in equity securities were 317,552 of our common shares at April 30, 2018 . The total market value of these shares was $36.2 at April 30, 2018 . We paid dividends of $1.0 on these shares during 2018 . We expect to contribute approximately $20.0 to the defined benefit pension plans in 2019 . We expect the following payments to be made from the defined benefit pension and other postretirement benefit plans: $54.8 in 2019 , $48.0 in 2020 , $47.5 in 2021 , $47.4 in 2022 , $51.7 in 2023 , and $238.8 in 2024 through 2028 . Multi-Employer Pension Plan: We participate in one multi-employer pension plan, the Bakery and Confectionery Union and Industry International Pension Fund (“Bakery and Confectionery Union Fund”) (52-6118572), which provides defined benefits to certain union employees. During 2018 and 2017, a total of $2.0 and $1.9 was contributed to the plan, respectively, and we anticipate contributions of $2.2 in 2019. The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans. For instance, the assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers, and if a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to the withdrawing employer may be the responsibility of the remaining participating employers. Additionally, if we stop participating in the multi-employer pension plan, we may be required to pay the plan an amount based on our allocable share of the underfunded status of the plan, referred to as a withdrawal liability. The Pension Protection Act of 2006 ranks the funded status of multi-employer pension plans depending upon a plan’s current and projected funding. A plan is in the Red Zone (Critical) if it has a current funded percentage less than 65 percent. A plan is in the Yellow Zone (Endangered) if it has a current funded percentage of less than 80 percent or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80 percent and does not have a projected credit balance deficit within seven years. The zone status is based on the plan’s year-end, not our fiscal year-end. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. During calendar year 2017, the Bakery and Confectionery Union Fund was in Red Zone status, as the current funding status was 54.7 percent. A funding improvement plan, or rehabilitation plan, has been implemented. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Apr. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | NOTE 10 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. During 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 additional information, see Recently Issued Accounting Standards in Note 1: Accounting Policies. 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 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 derivative are equal to changes in the fair value of the underlying debt and have no impact on earnings. 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 was designated as a cash flow hedge. In December 2017, concurrent with the pricing of the Senior Notes due December 15, 2027, we terminated the treasury lock prior to maturity. The termination resulted in a gain of $2.7 , which was deferred and included as a component of accumulated other comprehensive income (loss) and is being amortized as a reduction to interest expense over the life of the debt. 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 recorded as an increase in the long-term debt balance and is being recognized over the remaining life of the underlying debt as a reduction of interest expense. To date, we have recognized $25.0 , of which $ 7.8 , $7.6 , and $7.4 were recognized in 2018, 2017, and 2016, respectively. The remaining gain will be recognized as follows: $8.0 in 2019 , $8.1 in 2020 , $8.4 in 2021 , and $4.0 in 2022 . The following tables set forth the gross fair value amounts of derivative instruments recognized in the Consolidated Balance Sheets. April 30, 2018 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 14.8 $ 6.8 $ 0.4 $ 0.2 Foreign currency exchange contracts 2.2 0.7 — — Total derivative instruments $ 17.0 $ 7.5 $ 0.4 $ 0.2 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 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 April 30, 2018 and 2017 , we maintained cash margin account balances of $10.9 and $41.8 , respectively, included in other current assets in the Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the 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. Interest expense – net, as presented in the Statements of Consolidated Income, was $174.1 , $163.1 , and $171.1 in 2018, 2017, and 2016, respectively. Within interest expense, we recognized $0.5 in net pre-tax losses related to terminated interest rate contracts during 2018 and $0.6 during both 2017 and 2016. Included as a component of accumulated other comprehensive income (loss) at April 30, 2018 and 2017, were deferred net pre-tax losses of $3.8 and $7.0 , respectively, related to the terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) was $0.9 and $2.6 at April 30, 2018 and 2017, respectively. Approximately $0.4 of the net pre-tax loss will be recognized over the next 12 months related to the terminated 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. Year Ended April 30, 2018 2017 2016 Gains (losses) on commodity contracts $ 6.5 $ (45.2 ) $ (31.6 ) Gains (losses) on foreign currency exchange contracts (5.9 ) 9.8 2.0 Total gains (losses) recognized in costs of products sold $ 0.6 $ (35.4 ) $ (29.6 ) 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. Year Ended April 30, 2018 2017 2016 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 0.6 $ (35.4 ) $ (29.6 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (36.7 ) (8.2 ) (41.6 ) Unallocated derivative gains (losses) $ 37.3 $ (27.2 ) $ 12.0 The net cumulative unallocated derivative gains and losses at April 30, 2018 and 2017, were gains of $1.7 and losses of $35.6 , respectively. The following table presents the gross contract notional value of outstanding derivative contracts. Year Ended April 30, 2018 2017 Commodity contracts $ 658.0 $ 704.9 Foreign currency exchange contracts 122.1 195.4 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 12 Months Ended |
Apr. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments and Fair Value Measurements | NOTE 11 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 Consolidated Balance Sheets. The following table provides information on the carrying amounts and fair values of our financial instruments. April 30, 2018 April 30, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 45.8 $ 45.8 $ 47.3 $ 47.3 Derivative financial instruments – net 9.7 9.7 (12.9 ) (12.9 ) Long-term debt (4,688.0 ) (4,579.8 ) (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 April 30, 2018 Marketable securities and other investments: (A) Equity mutual funds $ 9.3 $ — $ — $ 9.3 Municipal obligations — 36.1 — 36.1 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net 7.2 1.0 — 8.2 Foreign currency exchange contracts – net 0.1 1.4 — 1.5 Long-term debt (C) (4,579.8 ) — — (4,579.8 ) Total financial instruments measured at fair value $ (4,562.8 ) $ 38.5 $ — $ (4,524.3 ) 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 April 30, 2018 , our municipal obligations are scheduled to mature as follows: $1.4 in 2019 , $1.7 in 2020 , $4.9 in 2021 , $1.0 in 2022 , and the remaining $27.1 in 2023 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. (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. For additional information, see Note 10: Derivative Financial Instruments. (C) Long-term debt is comprised of public Senior Notes classified as Level 1. In 2017, the previous term loan that was due March 23, 2020 is 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 was based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. Furthermore, we recognized impairment charges of $176.9 during 2018, of which $145.0 and $31.9 related to the goodwill of the Pet Foods reporting unit and certain indefinite-lived trademarks within the U.S. Retail Pet Foods segment, respectively. During 2017, we recognized impairment charges of $133.2 , which was related to the impairment of certain indefinite-lived trademarks in the U.S. Retail Pet Foods segment. These adjustments were included as noncash charges in our Statements of Consolidated Income. We utilized Level 3 inputs based on management’s best estimates and assumptions to estimate the fair value of the reporting unit and indefinite-lived trademarks. For additional information, see Goodwill and Other Intangible Assets in Note 1: Accounting Policies, and Note 7: Goodwill and Other Intangible Assets. |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | NOTE 12 SHARE-BASED PAYMENTS We provide for equity-based incentives to be awarded to key employees and non-employee directors. Currently, these incentives consist of restricted shares, restricted stock units (which may also be referred to as deferred stock units), performance units, and stock options. These awards are administered primarily through the 2010 Equity and Incentive Compensation Plan initially approved by our shareholders in August 2010 and re-approved in August 2015. Awards under this plan may be in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units, incentive awards, and other share-based awards. Awards under this plan may be granted to our non-employee directors, consultants, officers, and other employees. Deferred stock units granted to non-employee directors vest immediately and, along with dividends credited on those deferred stock units, are paid out in the form of common shares upon termination of service as a non-employee director. At April 30, 2018 , there were 5,174,159 shares available for future issuance under this plan. Under the 2010 Equity and Incentive Compensation Plan, we have the option to settle share-based awards by issuing common shares from treasury, issuing new Company common shares, or issuing a combination of common shares from treasury and new Company common shares. Stock Options: Under the 2010 Equity and Incentive Compensation Plan, we granted no stock options during both 2018 and 2017, and 370,000 stock options during 2016. The options vest over a period of one to three years dependent on the continued service of the option holder, as well as the achievement of performance objectives established on the grant date. The exercise price of all stock options granted is equal to the market value of the shares on the date of grant. All stock options granted during 2016 have a contractual term of 10 years . The fair value of each stock option is estimated on the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions for stock options granted in 2016: 2016 Expected volatility (%) 20.7 % Dividend Yield (%) 2.3 % Risk-free interest rate (%) 1.9 % Expected life of stock option (years) 5.9 Expected volatility was calculated in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation , based on consideration of both historical and implied volatilities. The expected life of a stock option represents the period from the grant date through the expected exercise date of the option. This was calculated using a simplified method whereby the midpoint between the vesting date and the end of the contractual term is utilized to compute the expected term. The following table is a summary of our stock option activity. Number of Stock Options Weighted-Average Exercise Price Outstanding at May 1, 2017 915,000 $ 113.07 Exercised 35,002 111.86 Cancelled 56,666 111.86 Outstanding at April 30, 2018 823,332 $ 113.20 Exercisable at April 30, 2018 270,006 $ 113.22 The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the option. The total intrinsic value for stock options outstanding and exercisable at April 30, 2018 , was $1.6 and $0.5 , respectively, both with an average remaining contractual term of 7.0 years. The total intrinsic value of stock options exercised during 2018 and 2016 was $0.6 and $0.1 , respectively. During 2017, there were no stock options exercised. The closing market price of our common stock on the last trading day of 2018 was $114.08 per share. The stock options granted during 2016 have a weighted-average grant date fair value of $18.67 per option. For stock options granted, compensation cost will be recognized ratably over the service period for each vesting tranche from the grant date through the end of the requisite service period to the extent the performance objectives are likely to be achieved. During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. For the year ended April 30, 2017, the compensation net benefit for stock option awards totaled $1.0 , and compensation cost totaled $0.4 and $8.1 for the years ended April 30, 2018, and 2016, respectively, which was included in other special project costs in the Statements of Consolidated Income. The tax expense related to the stock option net benefit was $0.4 for 2017, and the tax benefit related to the stock option expense was $0.1 and $3.0 for 2018 and 2016, respectively. At April 30, 2018 , we had no unrecognized compensation cost related to stock options. Cash received from stock option exercises for the years ended April 30, 2018 and 2016 , was $3.9 and $0.1 , respectively. We received no cash from stock option exercises for the year ended April 30, 2017. Other Equity Awards: The following table is a summary of our restricted shares, deferred stock units, and performance units. Restricted Shares and Deferred Stock Units Weighted- Average Grant Date Fair Value Performance Units Weighted- Average Conversion Date Fair Value Outstanding at May 1, 2017 573,405 $ 115.88 73,701 $ 126.80 Granted 136,127 126.80 84,051 103.86 Converted 73,701 126.80 (73,701 ) 126.80 Vested (161,581 ) 106.04 — — Forfeited (79,294 ) 120.27 — — Outstanding at April 30, 2018 542,358 $ 122.39 84,051 $ 103.86 The weighted-average grant date fair value of equity awards other than stock options that vested in 2018 , 2017 , and 2016 was $17.1 , $24.6 , and $18.7 , respectively. The vesting date fair value of equity awards other than stock options that vested in 2018 , 2017 , and 2016 was $20.7 , $32.7 , and $24.4 , respectively. The weighted-average grant date fair value of restricted shares and deferred stock units is the average of the high and the low share price on the date of grant. The weighted-average conversion date fair value of performance units is the average of the high and the low share price on the date of conversion to restricted shares. The following table summarizes the weighted-average fair values of the equity awards granted. Year Ended April 30, Restricted Shares and Deferred Stock Units Weighted- Average Grant Date Fair Value Performance Units Weighted- Average Conversion Date Fair Value 2018 136,127 $ 126.80 84,051 $ 103.86 2017 180,997 133.92 73,701 126.80 2016 97,922 113.57 121,936 132.46 The performance units column represents the number of restricted shares received by certain executive officers, subsequent to year-end, upon conversion of the performance units earned during the year. Restricted shares and deferred stock units generally vest four years from the date of grant or upon the attainment of a defined age and years of service, subject to certain retention requirements. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | NOTE 13 INCOME TAXES Income before income taxes is as follows: Year Ended April 30, 2018 2017 2016 Domestic $ 828.6 $ 836.8 $ 959.3 Foreign 32.4 41.6 18.6 Income before income taxes $ 861.0 $ 878.4 $ 977.9 On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Act”), which is commonly referred to as “The Tax Cuts and Jobs Act.” The Act provides for comprehensive tax legislation that reduces the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadens the U.S. federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred (“transition tax”), and creates new taxes on certain foreign-sourced earnings as part of a new territorial tax regime. As we have an April 30 fiscal year-end, the lower corporate income tax rate is administratively phased in, resulting in a blended U.S. federal statutory tax rate of approximately 30.4 percent for our fiscal year ended April 30, 2018, and 21.0 percent for our fiscal years thereafter. In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which amends the FASB ASC 740, Income Taxes , to add the SEC guidance in SAB 118 concerning the application of U.S. GAAP when accounting for the income tax effects of the Act for the reporting period that includes the enactment date. ASU 2018-05 recognizes that a registrant’s review of certain income tax effects of the Act may be incomplete at the time financial statements are issued for the reporting period that includes the enactment date, including interim periods therein. Specifically, ASU 2018-05 allows a company to report provisional estimates in the reporting period that includes the enactment date if the company does not have the necessary information available, prepared, or fully analyzed for certain income tax effects of the Act. The provisional estimates would be adjusted during a measurement period not to exceed 12 months from the enactment date of the Act, at which time the accounting for the income tax effects of the Act is required to be completed. For additional information on ASU 2018-05, see Recently Issued Accounting Standards in Note 1: Accounting Policies. During the third quarter of 2018, we recorded a net provisional benefit of $765.8 , which included the revaluation of net deferred tax liabilities at the reduced federal income tax rate offset in part by the estimated impact of the one-time transition tax. In addition to the estimates further described below, we also used assumptions and estimates that may change as a result of future guidance and interpretation from the Internal Revenue Service (“IRS”), the SEC, the FASB, and various taxing jurisdictions. All of these potential legislative and interpretive actions could result in adjustment to our provisional estimates when the accounting for the income tax effects of the Act is completed. During the fourth quarter of 2018, there were no adjustments to the recorded provisional amount. Accordingly, our income tax provision as of April 30, 2018, reflects the current year impacts of the Act and the following provisional estimates of our adjustments resulting directly from the enactment of the Act based on information available, prepared, or analyzed to date in reasonable detail. (Provisional amounts recorded) Year Ended April 30, 2018 Net impact on U.S. deferred tax assets and liabilities $ (791.9 ) Transition tax 26.1 Net impact of adjustments $ (765.8 ) The provisional net benefit amount of $765.8 from the adjustments is included as a component of income tax expense (benefit) in the Statement of Consolidated Income. Deferred tax assets and liabilities: We remeasured our existing U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future. The provisional amount recorded related to the remeasurement of our deferred tax balance is a benefit of $791.9 . We determined that the calculation cannot be completed until all of the underlying timing differences are finalized. Furthermore, we are still analyzing certain aspects of the Act and refining our calculations, which could potentially affect the measurement of these balances or potentially give rise to new or additional deferred tax amounts. We anticipate completing the accounting for the reduced federal tax rate on our deferred tax balances, with any further adjustments to the provisional amount to be reported as a component of income tax expense (benefit). Foreign tax effects: The transition tax is based on our total post-1986 foreign earnings and profits, which were previously deferred from U.S. income taxes and the related available foreign tax credits. We recorded a provisional income tax expense of $26.1 for the transition tax for our foreign subsidiaries, and determined that the transition tax is provisional because numerous components of the computation are estimated as of April 30, 2018. Consistent with provisions allowed in the Act, the $26.1 estimated transition tax liability is expected to be paid over an eight-year period, which began in 2018. The remaining amount of the estimated transition tax liability is included in other noncurrent liabilities in the Consolidated Balance Sheet. We anticipate concluding the analysis of accumulated foreign earnings and profits and related foreign taxes paid on an entity-by-entity basis and completing the accounting for the transition tax in the third quarter of 2019, with any further adjustments to the provisional amount to be reported as a component of income tax expense (benefit). Deferred income taxes have not been provided on approximately $226.0 of temporary differences related to investments in foreign subsidiaries since these amounts are considered to be permanently reinvested. It is not practical to estimate the amount of additional taxes that might be payable on these basis differences because of the multiple methods by which these differences could reverse. While the Act generally transitions the U.S. tax system to a territorial regime, it also introduces a new requirement to tax certain income from foreign operations, known as Global Intangible Low Taxed Income (“GILTI”), effective for us beginning in 2019. Under U.S. GAAP, we are allowed to make an accounting policy election and record the taxes related to GILTI as either a period cost as incurred or consider such amounts into the measurement of deferred taxes. Due to the complexity of the new GILTI rules and limited guidance issued by the IRS, we are evaluating and have not yet computed a reasonable estimate of the impact of this provision, and therefore, have not made an accounting policy decision regarding this item. During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allowed us to reclassify $15.0 of stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. This reclassification consists of deferred taxes originally recorded in accumulated other comprehensive income (loss) at rates that exceed the newly enacted federal corporate tax rate. For additional information, see Recently Issued Accounting Standards in Note 1: Accounting Policies. The components of the provision for income taxes are as follows: Year Ended April 30, 2018 2017 2016 Current: Federal $ 277.9 $ 325.1 $ 342.5 Foreign 7.9 11.0 4.8 State and local 40.0 29.4 37.1 Deferred: Federal (802.3 ) (78.3 ) (32.1 ) Foreign 0.5 1.6 1.3 State and local (1.6 ) (2.7 ) (64.4 ) Total income tax expense (benefit) $ (477.6 ) $ 286.1 $ 289.2 A reconciliation of the statutory federal income tax rate and the effective income tax rate is as follows: Year Ended April 30, (Percent of Pre-tax Income) 2018 2017 2016 Statutory federal income tax rate 30.4 % 35.0 % 35.0 % Tax reform – net impact on U.S. deferred tax assets and liabilities (provisional) (92.0 ) — — Tax reform – transition tax (provisional) 3.0 — — Goodwill impairment 5.5 — — State and local income taxes 1.9 2.1 2.5 Domestic manufacturing deduction (3.0 ) (3.7 ) (3.5 ) Deferred tax benefit from integration — — (5.2 ) Other items – net (1.3 ) (0.8 ) 0.8 Effective income tax rate (55.5 )% 32.6 % 29.6 % Income taxes paid $ 336.8 $ 367.2 $ 290.5 The effective tax rate of 29.6 percent in 2016 includes the recognition in the fourth quarter of a $50.5 noncash deferred tax benefit related to the integration of Big Heart into the Company. We are a voluntary participant in the Compliance Assurance Process (“CAP”) program offered by the IRS and are currently under a CAP examination for the tax year ended April 30, 2018. Through the contemporaneous exchange of information with the IRS, this program is designed to identify and resolve tax positions with the IRS prior to the filing of a tax return, which allows us to remain current with our IRS examinations. The IRS has completed the CAP examinations for the tax years ended April 30, 2015, 2016, and 2017. The tax years prior to 2015 are no longer subject to U.S. federal tax examination. With limited exceptions, we are no longer subject to examination for state and local jurisdictions for the tax years prior to 2014 and for the tax years prior to 2011 for foreign jurisdictions. Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Significant components of our deferred tax assets and liabilities are as follows: April 30, 2018 2017 Deferred tax liabilities: Intangible assets $ 1,393.6 $ 2,248.0 Property, plant, and equipment 98.5 129.8 Other 14.2 16.5 Total deferred tax liabilities $ 1,506.3 $ 2,394.3 Deferred tax assets: Post-employment and other employee benefits $ 75.5 $ 146.3 Tax credit and loss carryforwards 0.2 1.8 Intangible assets 18.8 25.4 Inventory 5.9 10.5 Property, plant, and equipment 6.4 3.1 Other 25.2 43.8 Total deferred tax assets $ 132.0 $ 230.9 Valuation allowance (2.9 ) (3.6 ) Total deferred tax assets, less allowance $ 129.1 $ 227.3 Net deferred tax liability $ 1,377.2 $ 2,167.0 As described previously, our 2018 U.S. deferred assets and liabilities have been remeasured, on a provisional basis, for the reduced federal income tax rates of the Act. We evaluate the realizability of deferred tax assets for each of the jurisdictions in which we operate. The total valuation allowance decreased by a net amount of $0.7 during the year. Our unrecognized tax benefits were $32.3 , $40.4 , and $46.3 , of which $21.5 , $23.1 , and $32.6 would affect the effective tax rate, if recognized, as of April 30, 2018 , 2017 , and 2016 , respectively. Our accrual for tax-related net interest and penalties totaled $4.0 , $4.1 , and $3.8 as of April 30, 2018 , 2017 , and 2016 , respectively. Interest charged to earnings totaled $0.1 , $0.3 , and $0.6 during 2018, 2017 , and 2016 , respectively. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an estimated $9.5 , primarily as a result of the expiration of statute of limitation periods. A reconciliation of our unrecognized tax benefits is as follows: 2018 2017 2016 Balance at May 1, $ 40.4 $ 46.3 $ 45.0 Increases: Current year tax positions 1.1 0.7 3.3 Prior year tax positions 0.5 1.2 0.2 Acquired businesses — — 3.3 Decreases: Prior year tax positions — 0.9 0.9 Settlement with tax authorities 3.0 1.1 2.5 Expiration of statute of limitations periods 6.7 5.8 2.1 Balance at April 30, $ 32.3 $ 40.4 $ 46.3 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Apr. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | NOTE 14 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, 2015 $ (2.3 ) $ (5.2 ) $ (105.6 ) $ 3.3 $ (109.8 ) Reclassification adjustments — 0.6 10.2 — 10.8 Current period credit (charge) (10.8 ) — (54.6 ) 0.4 (65.0 ) Income tax benefit (expense) — (0.2 ) 15.9 (0.1 ) 15.6 Balance at April 30, 2016 $ (13.1 ) $ (4.8 ) $ (134.1 ) $ 3.6 $ (148.4 ) Reclassification adjustments — 0.6 13.2 — 13.8 Current period credit (charge) (29.9 ) — 39.6 0.6 10.3 Income tax benefit (expense) — (0.2 ) (18.7 ) (0.2 ) (19.1 ) Balance at April 30, 2017 $ (43.0 ) $ (4.4 ) $ (100.0 ) $ 4.0 $ (143.4 ) Reclassification adjustments — 0.5 10.7 — 11.2 Current period credit (charge) 26.6 2.7 9.2 (1.7 ) 36.8 Income tax benefit (expense) — (1.2 ) (5.6 ) 0.5 (6.3 ) Reclassification of stranded tax effects (C) — (0.5 ) (15.3 ) 0.8 (15.0 ) Balance at April 30, 2018 $ (16.4 ) $ (2.9 ) $ (101.0 ) $ 3.6 $ (116.7 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The 2018 credit relates to the gain on the interest rate contract terminated in December 2017. For additional information, see Note 10: Derivative Financial Instruments. (B) Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to SD&A. (C) During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Note 13: Income Taxes. |
Contingencies
Contingencies | 12 Months Ended |
Apr. 30, 2018 | |
Loss Contingency [Abstract] | |
Contingencies | NOTE 15 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, with the exception of the matter discussed below, we do not believe the final outcome of these proceedings could have a material adverse effect on our financial position, results of operations, or cash flows. On May 9, 2011, an organization named Council for Education and Research on Toxics (“Plaintiff”) filed a lawsuit in the Superior Court of the State of California, County of Los Angeles, against us and additional defendants who manufacture, package, distribute, or sell packaged coffee. The lawsuit is Council for Education and Research on Toxics v. Brad Barry LLC, et al., and was a tag along to a 2010 lawsuit against companies selling “ready-to-drink” coffee based on the same claims. Both cases have since been consolidated and now include nearly eighty defendants, which constitute the great majority of the coffee industry in California. The Plaintiff alleges that we and the other defendants failed to provide warnings for our coffee products of exposure to the chemical acrylamide as required under California Health and Safety Code Section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986, better known as “Proposition 65.” The Plaintiff seeks equitable relief, including providing warnings to consumers of coffee products, as well as civil penalties in the amount of the statutory maximum of $2,500.00 per day per violation of Proposition 65. The Plaintiff asserts that every consumed cup of coffee, absent a compliant warning, is equivalent to a violation under Proposition 65. As part of a joint defense group organized to defend against the lawsuit, we dispute the claims of the Plaintiff. Acrylamide is not added to coffee, but is present in all coffee in small amounts (measured in parts per billion) as a byproduct of the coffee bean roasting process. We have asserted multiple affirmative defenses. Trial of the first phase of the case commenced on September 8, 2014, and was limited to three affirmative defenses shared by all defendants. On September 1, 2015, the trial court issued a final ruling adverse to the defendants on all Phase 1 defenses. Trial of the second phase of the case commenced in the fall of calendar year 2017. On March 28, 2018, the trial court issued a proposed ruling adverse to the defendants on the Phase 2 defense, our last remaining defense to liability. The trial court finalized and affirmed its Phase 2 ruling on May 7, 2018 and, therefore, the trial will proceed to the third phase regarding remedies issues. At this stage of the proceedings, prior to a trial on remedies issues, we are unable to predict or reasonably estimate the potential loss or effect on our operations. Accordingly, no loss contingency has been recorded for this matter as of April 30, 2018, as the likelihood of loss is not considered probable or estimable. The trial court has discretion to impose zero penalties against us or to impose significant statutory penalties. Significant labeling or warning requirements that could potentially be imposed by the trial court may increase our costs and adversely affect sales of our coffee products, as well as involve substantial expense and operational disruption, which could have a material adverse impact on our financial position, results of operations, or cash flows. Furthermore, a future appellate court decision could reverse the trial court rulings. The outcome and the financial impact of settlement, or the trial or appellate court rulings of the case, if any, cannot be predicted at this time. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 12 Months Ended |
Apr. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Guarantor and Non-Guarantor Financial Information | NOTE 16 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 entered into in September 2017. As a result, the guarantees of the subsidiary guarantors, in respect to the obligations under the term loan due March 23, 2020, and all of our outstanding Senior Notes, were released in accordance with the terms of the amended term loan agreement for the term loan due March 23, 2020, and the indentures governing such notes, as applicable. As the Senior Notes were not guaranteed as of April 30, 2018, the condensed consolidating financial statements are not provided for the subsidiary guarantors. For additional information, see Note 8: Debt and Financing Arrangements. |
Common Shares
Common Shares | 12 Months Ended |
Apr. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | NOTE 17 COMMON SHARES Voting: The Amended Articles of Incorporation (“Articles”) provide that each holder of a common share outstanding is entitled to one vote on each matter submitted to a vote of the shareholders, except for the following specific matters: • any matter that relates to or would result in the dissolution or liquidation of the Company; • the adoption of any amendment to the Articles or Amended Regulations, or the adoption of amended Articles, other than the adoption of any amendment or amended Articles that increases the number of votes to which holders of our common shares are entitled or expands the matters to which time-phased voting applies; • any proposal or other action to be taken by our shareholders relating to the Rights Agreement, dated as of May 20, 2009, between the Company and Computershare Trust Company, N.A., or any successor plan; • any matter relating to any stock option plan, stock purchase plan, executive compensation plan, executive benefit plan, or other similar plan, arrangement, or agreement; • the adoption of any agreement or plan of or for the merger, consolidation, or majority share acquisition of us or any of our subsidiaries with or into any other person, whether domestic or foreign, corporate or noncorporate, or the authorization of the lease, sale, exchange, transfer, or other disposition of all, or substantially all, of our assets; • any matter submitted to our shareholders pursuant to Article Fifth (which relates to procedures applicable to certain business combinations) or Article Seventh (which relates to procedures applicable to certain proposed acquisitions of specified percentages of our outstanding common shares) of the Articles, as they may be further amended, or any issuance of our common shares for which shareholder approval is required by applicable stock exchange rules; and • any matter relating to the issuance of our common shares or the repurchase of our common shares that the Board determines is required or appropriate to be submitted to our shareholders under the Ohio Revised Code or applicable stock exchange rules. On the matters listed above, common shares are entitled to 10 votes per share if they meet the requirements set forth in the Articles. Common shares which would be entitled to 10 votes per share must meet one of the following criteria: • common shares for which there has not been a change in beneficial ownership in the past four years; or • common shares received through our various equity plans that have not been sold or otherwise transferred. In the event of a change in beneficial ownership, the new owner of that common share will be entitled to only one vote with respect to that share on all matters until four years pass without a further change in beneficial ownership of the share. Shareholders’ Rights Plan: Pursuant to a Shareholders’ Rights Plan adopted by the Board on May 20, 2009, one share purchase right is associated with each of our outstanding common shares. Under the plan, the rights will initially trade together with our common shares and will not be exercisable. In the absence of further action by the directors, the rights generally will become exercisable and allow the holder to acquire our common shares at a discounted price if a person or group acquires 10 percent or more of our outstanding common shares. Rights held by persons who exceed the applicable threshold will be void. Shares held by members of the Smucker family are not subject to the threshold. If exercisable, each right entitles the shareholder to buy one common share at a discounted price. Under certain circumstances, the rights will entitle the holder to buy shares in an acquiring entity at a discounted price. The plan also includes an exchange option. In general, if the rights become exercisable, the directors may, at their option, effect an exchange of part or all of the rights, other than rights that have become void, for common shares. Under this option, we would issue one common share for each right, in each case subject to adjustment in certain circumstances. The directors may, at their option, redeem all rights for $0.001 per right, generally at any time prior to the rights becoming exercisable. The rights will expire June 3, 2019, unless earlier redeemed, exchanged, or amended by the directors. In connection with the Big Heart acquisition, we and the rights agent entered into an amendment to the plan providing that neither the approval, execution, delivery, or performance of the merger agreement or the shareholders’ agreement entered into in connection with the transaction will in any way give rise to any provision of the plan becoming effective, and that none of Blue Holdings I, L.P., the controlling stockholder of Blue Acquisition Group, Inc., or any of its affiliates will be deemed to be an acquiring person for purposes of the plan. During 2017, we and the rights agent entered into another amendment to the plan to amend the definition of beneficial ownership to provide that, among other things and subject to certain exceptions, a person will not be deemed the beneficial owner of, or to beneficially own, the first 10 percent of then-outstanding common shares of the Company that would otherwise be deemed to be beneficially owned by such person, together with all its affiliates and associates, if such person is entitled to file, and files, a statement on Schedule 13G pursuant to Rule 13d-1(b) or Rule 14d-1(c) under the Securities and Exchange Act of 1934, as amended. Repurchase Programs : During 2018, we did no t repurchase any common shares under a repurchase plan authorized by the Board. On February 22, 2017, we entered into a 10b5-1 trading plan (the “Plan”) to facilitate the repurchase of up to 3.0 million common shares under the Board’s authorizations. Purchases under the Plan commenced on February 27, 2017, and concluded on March 27, 2017, and were transacted by a broker based upon the guidelines and parameters of the Plan. During 2017, we repurchased 3.0 million common shares under the Plan for $418.1 . At April 30, 2018 , approximately 3.6 million common shares were remaining available for repurchase pursuant to the Board’s authorizations. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and its majority-owned investments, if any. Intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires that we make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates in these consolidated financial statements include: estimates of future cash flows associated with assets, potential asset impairments, useful lives and residual values of long-lived assets used in determining depreciation and amortization, net realizable value of inventories, accruals for trade marketing and merchandising programs, income taxes, and the determination of discount and other assumptions for defined benefit pension and other postretirement benefit expenses. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We consider all short-term, highly-liquid investments with a maturity of three months or less when purchased to be cash equivalents. |
Revenue Recognition | Revenue Recognition: We recognize revenue when all of the following criteria have been met: a valid customer order with a determinable price has been received; title and risk of loss have transferred to the customer; there is no further significant obligation to assist in the resale of the product; and collectibility is reasonably assured. Our products are shipped with FOB destination terms, with the exception of certain export customers and those customers who elect to pick up. Trade marketing and merchandising program costs are classified as a reduction of sales. A provision for estimated returns and allowances is recognized as a reduction of sales at the time revenue is recognized. |
Trade Marketing and Merchandising Programs | Trade Marketing and Merchandising Programs: In order to support our products, various promotional activities are conducted through retail trade, distributors, or directly with consumers, including in-store display and product placement programs, feature price discounts, coupons, and other similar activities. We regularly review and revise, when we deem necessary, estimates of costs for these promotional programs based on estimates of what will be redeemed by retail trade, distributors, or consumers. These estimates are made using various techniques, including historical data on performance of similar promotional programs. Differences between estimated expenditures and actual performance are recognized as a change in estimate in a subsequent period. During 2018 , 2017 , and 2016 , subsequent period adjustments approximated less than 2 percent of both consolidated pre-tax income and cash provided by operating activities. Total promotional expenditures, including amounts classified as a reduction of sales, represented 35 percent, 33 percent, and 31 percent of net sales in 2018 , 2017 , and 2016 , respectively. The possibility exists that reported results could be different if factors such as the level and success of the promotional programs or other conditions differ from expectations. |
Shipping and Handling Costs | Shipping and Handling Costs: Transportation costs included in cost of products sold relate to the costs incurred to ship our products. Distribution costs are included in selling, distribution, and administrative (“SD&A”) expenses and relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $245.4 , $252.9 , and $236.1 in 2018 , 2017 , and 2016 , respectively. |
Advertising Expense | Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $194.2 , $169.8 , and $170.3 in 2018 , 2017 , and 2016 , respectively. |
Research and Development Costs | Research and Development Costs: Research and development (“R&D”) costs are expensed as incurred and are included in SD&A in the Statements of Consolidated Income. R&D costs include expenditures for new product and manufacturing process innovation, which are comprised primarily of internal salaries and wages, consulting, and other supplies attributable to time spent on R&D activities. Other costs include the depreciation and maintenance of research facilities. Total R&D expense was $56.0 , $58.1 , and $58.8 in 2018 , 2017 , and 2016 , respectively. |
Share-Based Payments | Share-Based Payments: Share-based compensation expense, excluding stock options, is recognized on a straight-line basis over the requisite service period, which includes a one -year performance period plus the defined forfeiture period, which is typically four years of service or the attainment of a defined age and years of service. Compensation expense related to stock options is recognized ratably over the service period for each vesting tranche from the grant date through the end of the requisite service period if it is probable that the performance criteria will be met. The stock options vest over a period of one to three years , dependent on continued service of the option holder, as well as the achievement of the performance objectives established on the grant date. The following table summarizes amounts related to share-based payments. Year Ended April 30, 2018 2017 2016 Share-based compensation expense included in SD&A $ 13.7 $ 22.3 $ 26.3 Share-based compensation expense (benefit) included in other special project costs 1.7 (0.3 ) (A) 8.3 Total share-based compensation expense $ 15.4 $ 22.0 $ 34.6 Related income tax benefit $ 4.6 $ 7.2 $ 10.2 (A) During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. For additional information, see Note 12: Share-Based Payments. As of April 30, 2018 , total unrecognized share-based compensation cost related to nonvested share-based awards was $42.6 . The weighted-average period over which this amount is expected to be recognized is 3.4 years . Prior to adoption of Accounting Standards Update (“ASU”) 2016-09, Stock Compensation (Topic 718) Improvements to Employee Share-Based Payment Accounting, realized excess tax benefits were presented in the Statements of Consolidated Cash Flows as a financing activity and were credited to additional capital in the Consolidated Balance Sheets. Realized shortfall tax benefits, amounts which are less than those previously recognized in earnings, were first offset against the cumulative balance of excess tax benefits, if any, and then charged directly to income tax expense. Upon adoption of ASU 2016-09, realized excess tax benefits are presented in the Statements of Consolidated Cash Flows as an operating activity and are recognized within income taxes in the Statements of Consolidated Income. For 2018 , 2017 , and 2016 , the excess tax benefits realized upon exercise or vesting of share-based compensation were $1.5 , $3.3 , and $2.7 , respectively. For further discussion on share-based compensation expense, see Note 12: Share-Based Payments. |
Defined Contribution Plans | Defined Contribution Plans: We offer employee savings plans for domestic and Canadian employees. Our contributions under these plans are based on a specified percentage of employee contributions. Charges to operations for these plans in 2018 , 2017 , and 2016 were $36.3 , $31.9 , and $25.9 , respectively. For information on our defined benefit plans, see Note 9: Pensions and Other Postretirement Benefits. |
Income Taxes | Income Taxes: We account for income taxes using the liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the applicable tax rate is recognized in income or expense in the period that the change is enacted. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. A tax benefit is recognized when it is more likely than not to be sustained. We account for the financial statement recognition and measurement criteria of a tax position taken or expected to be taken in a tax return under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 740, Income Taxes . ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. In accordance with the requirements of ASC 740, uncertain tax positions have been classified in the Consolidated Balance Sheets as noncurrent, except to the extent payment is expected within one year. We recognize net interest and penalties related to unrecognized tax benefits in income tax expense. On December 22, 2017, the U.S. government enacted “An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018” (the “Act”), which is commonly referred to as “The Tax Cuts and Jobs Act.” The Act provides for comprehensive tax legislation that reduces the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadens the U.S. federal income tax base, requires companies to pay a one-time repatriation tax on earnings of certain foreign subsidiaries that were previously tax deferred, and introduces new taxes on certain foreign-sourced earnings. The provisional effect of the rate reduction and other pronouncements of the Act on our deferred tax asset and liability, and current and noncurrent tax payable balances have been accounted for in our 2018 financial statements, in accordance with recently issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which allows a measurement period of up to one year after the enactment date to finalize our initial accounting for the impacts of the Act. For additional information, see Note 13: Income Taxes. |
Trade Receivables | Trade Receivables: In the normal course of business, we extend credit to customers. Trade receivables, less allowances, reflects the net realizable value of receivables and approximates fair value. We evaluate our trade receivables and establish an allowance for doubtful accounts based on a combination of factors. When aware that a specific customer has been impacted by circumstances such as bankruptcy filings or deterioration in the customer’s operating results or financial position, potentially making it unable to meet its financial obligations, we record a specific reserve for bad debt to reduce the related receivable to the amount we reasonably believe is collectible. We also record reserves for bad debt for all other customers based on a variety of factors, including the length of time the receivables are past due, historical collection experience, and an evaluation of current and projected economic conditions at the balance sheet date. Trade receivables are charged off against the allowance after we determine that the potential for recovery is remote. At April 30, 2018 and 2017 , the allowance for doubtful accounts was $1.1 and $1.6 , respectively. We believe there is no concentration of risk with any single customer whose failure or nonperformance would materially affect results other than as discussed in Note 5: Reportable Segments. |
Inventories | Inventories: Inventories are stated at the lower of cost or market, with market being defined as net realizable value, less costs to sell. Cost for all inventories is determined using the first-in, first-out method applied on a consistent basis. The cost of finished products and work-in-process inventory includes materials, direct labor, and overhead. Work-in-process is included in finished products in the Consolidated Balance Sheets and was $80.9 and $72.2 at April 30, 2018 and 2017 , respectively. |
Derivative Financial Instruments | Derivative Financial Instruments: We account for derivative instruments in accordance with FASB ASC 815, Derivatives and Hedging , which requires all derivative instruments to be recognized in the financial statements and measured at fair value, regardless of the purpose or intent for holding them. We do not qualify commodity derivatives or instruments used to manage foreign currency exchange exposures 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 derivatives are economic hedges of our risk exposure. The exposures hedged have a high inverse correlation to price changes of the derivative 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. We utilize derivative instruments to manage changes in the fair value and cash flows 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 net impact on earnings. |
Property, Plant, and Equipment | Property, Plant, and Equipment: Property, plant, and equipment is recognized at cost and is depreciated on a straight-line basis over the estimated useful life of the asset ( 3 to 20 years for machinery and equipment, 1 to 7 years for capitalized software costs, and 5 to 40 years for buildings, fixtures, and improvements). We lease certain land, buildings, and equipment for varying periods of time, with renewal options. Rent expense in 2018 , 2017 , and 2016 totaled $95.2 , $101.0 , and $92.5 , respectively. As of April 30, 2018 , our minimum operating lease obligations were as follows: $42.8 in 2019 , $37.5 in 2020 , $33.3 in 2021 , $29.9 in 2022 , and $29.1 in 2023 . In accordance with FASB ASC 360, Property, Plant, and Equipment , long-lived assets, other than goodwill and other indefinite-lived intangible assets, are reviewed for impairment when circumstances indicate the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows we estimate to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount of the assets exceeds their estimated fair value. Assets to be disposed of by sale are recognized as held for sale at the lower of carrying value or fair value less costs to sell. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is the excess of the purchase price paid over the estimated fair value of the net assets of a business acquired. In accordance with FASB ASC 350, Intangibles – Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are reviewed at least annually for impairment. We conduct our annual test for impairment of goodwill and other indefinite-lived intangible assets as of February 1 of each year. As of the current year annual impairment test date, we had seven reporting units. A discounted cash flow valuation technique was utilized to estimate the fair value of our reporting units and indefinite-lived intangible assets. We also used a market-based approach to estimate the fair value of our reporting units. The discount rates utilized in the cash flow analyses were developed using a weighted-average cost of capital methodology. In addition to the annual test, we test for impairment if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying amount. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which are evaluated on an annual basis. For additional information, see Note 7: Goodwill and Other Intangible Assets. |
Marketable Securities and Other Investments | Marketable Securities and Other Investments: We maintain funds for the payment of benefits associated with nonqualified retirement plans. These funds include investments considered to be available-for-sale marketable securities. At April 30, 2018 and 2017 , the fair value of these investments was $45.8 and $47.3 , respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2018 and 2017 , were unrealized pre-tax gains of $4.7 and $6.3 , respectively. |
Equity Method Investments | Equity Method Investments: Investments in common stock of entities other than our consolidated subsidiaries are accounted for under the equity method in accordance with FASB ASC 323, Investments – Equity Method and Joint Ventures . Under the equity method, the initial investment is recorded at cost and the investment is subsequently adjusted for its proportionate share of earnings or losses, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. The difference between the carrying amount of the investment and the underlying equity in net assets is primarily attributable to goodwill and other intangible assets. During 2017, we sold our 25 percent equity interest in Guilin Seamild Biologic Technology Development Co., Ltd. (“Seamild”), a privately-owned manufacturer and marketer of oats products in China. We received proceeds from the sale of $40.6 , net of transaction costs, and recognized a pre-tax gain of $3.8 during 2017. The initial investment in Seamild was in 2012 for $35.9 and was included in other noncurrent assets in the Consolidated Balance Sheets. The investment in Seamild did not have a material impact on International and Away From Home or the consolidated financial statements for the year ended April 30, 2017 . Additionally, we have a 20 percent equity interest in Mountain Country Foods, LLC, and a 44 percent equity interest in Numi, Inc. The carrying amount of these investments is included in other noncurrent assets in the Consolidated Balance Sheets. The investments did not have a material impact on the consolidated financial statements or the respective reportable segment to which they relate for the years ended April 30, 2018 and 2017 . |
Foreign Currency Translation | Foreign Currency Translation: Assets and liabilities of foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates, while income and expenses are translated using average rates throughout the periods. Translation adjustments are reported as a component of shareholders’ equity in accumulated other comprehensive income (loss). Included in accumulated other comprehensive income (loss) at April 30, 2018 and 2017 , were foreign currency losses of $16.4 and $43.0 , respectively. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: In March 2018, the FASB issued ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which amends FASB ASC 740 to add the Securities and Exchange Commission’s (“SEC”) guidance in Staff Accounting Bulletin (“SAB”) 118 concerning the application of U.S. GAAP when preparing the initial accounting for the income tax effects of the Act, which was enacted on December 22, 2017. SAB 118 addresses the specific situation in which the initial accounting for certain income tax effects of the Act will not be complete at the time that financial statements are issued covering the reporting period that includes the enactment date, specifically allowing a measurement period of up to one year after the enactment date to finalize our initial accounting for the impacts of the Act. For additional information, see Note 13: Income Taxes. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allows a reclassification of the income tax effects of the enactment of the Act on items that are stranded in accumulated other comprehensive income to retained earnings. This standard also requires certain disclosures about stranded tax effects. This ASU, however, does not change the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations. ASU 2018-02 is effective for us on May 1, 2019, but we have elected to early adopt as of February 1, 2018, as permitted, so that the tax effects of items within accumulated other comprehensive income are reflected at the appropriate tax rate. Early adoption of this ASU had an overall immaterial impact on our financial statements and disclosures. For additional information, see Note 13: Income Taxes. In August 2017, the FASB issued 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 financial statements and disclosures. For additional information, see Note 10: Derivative Financial Instruments. 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 will be eligible for capitaliza tion. ASU 2017-07 will be effective for us on May 1, 2018. 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 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 is effective for us on May 1, 2020, but we have elected to early adopt on a prospective basis during 2018, as permitted. 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 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 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 requires a modified retrospective application for leases existing at, or entered into after, the beginning of the earliest comparative period presented and may exclude any leases that expired before the date of initial application. However, the FASB has recently proposed guidance that would allow adoption of the standard as of the effective date without restating prior periods. We are currently compiling an inventory of our lease arrangements in order to determine the impact the new guidance will have on our financial statements and disclosures. We have selected new lease accounting software in preparation for the standard’s additional reporting requirements and will begin implementation during the first quarter of 2019. Based on our assessment to date, we expect that the adoption of ASU 2016-02 will result in a significant increase in lease-related assets and liabilities recognized 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 implementation of the standard is complete, with the exception of evaluating the newly acquired Ainsworth Pet Nutrition, LLC (“Ainsworth”) business. 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 will materially impact our financial statements, and therefore we intend to utilize the modified retrospective transition method. |
Risks and Uncertainties | Risks and Uncertainties: The raw materials we use are primarily commodities, agricultural-based products, and packaging materials. The principal packaging materials we use are plastic, glass, metal cans, caps, carton board, and corrugate. Green coffee, peanuts, oils and fats, protein meals, sweeteners, grains, fruit, and other ingredients are obtained from various suppliers. The availability, quality, and cost of many of these commodities have fluctuated, and may continue to fluctuate over time. Green coffee is sourced solely from foreign countries, and its supply and price are subject to high volatility due to factors such as weather, global supply and demand, plant disease, investor speculation, and political and economic conditions in the source countries. Raw materials are generally available from numerous sources, although we have elected to source certain plastic packaging materials and finished goods, such as our Pup-Peroni ® dog snacks, from single sources of supply pursuant to long-term contracts. While availability may vary from year to year, we believe that we will continue to be able to obtain adequate supplies and that alternatives to single-sourced materials are available. We have not historically encountered significant shortages of key raw materials. We consider our relationships with key material suppliers to be in good standing. We have consolidated our production capacity for certain products, including substantially all of our coffee, Milk-Bone ® dog snacks, fruit spreads, toppings, syrups, and Uncrustables ® frozen sandwiches, into single manufacturing sites. Although steps are taken at all of our manufacturing sites to reduce the likelihood of a production disruption, an interruption at a single manufacturing site would result in a reduction or elimination of the availability of some of our products for a period of time. Of our total employees, 28 percent are covered by union contracts at 10 manufacturing locations. The contracts vary in term, with one contract expiring in 2019, representing less than 1 percent of our total employees. We insure our business and assets in each country against insurable risks, to the extent that we deem appropriate, based upon an analysis of the relative risks and costs. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Accounting Policies [Abstract] | |
Schedule of share-based payments | The following table summarizes amounts related to share-based payments. Year Ended April 30, 2018 2017 2016 Share-based compensation expense included in SD&A $ 13.7 $ 22.3 $ 26.3 Share-based compensation expense (benefit) included in other special project costs 1.7 (0.3 ) (A) 8.3 Total share-based compensation expense $ 15.4 $ 22.0 $ 34.6 Related income tax benefit $ 4.6 $ 7.2 $ 10.2 (A) During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. For additional information, see Note 12: Share-Based Payments. |
Integration and Restructuring28
Integration and Restructuring Costs (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Integration Costs [Table Text Block] | T he following table summarizes the one-time costs incurred in relation to the Big Heart acquisition. 2018 2017 2016 Total Costs Employee-related costs $ 8.5 $ 16.3 $ 52.4 $ 90.6 Outside service and consulting costs 11.6 33.9 56.0 117.6 Other costs 6.5 13.9 36.8 63.7 Total one-time costs $ 26.6 $ 64.1 $ 145.2 $ 271.9 |
Restructuring and Related Costs [Table Text Block] | T he following table summarizes our one-time costs incurred in relation to the organization optimization program. 2018 2017 2016 Total Costs Incurred to Date at April 30, 2018 Employee-related costs $ 10.1 $ 12.4 $ 1.3 $ 23.8 Outside service and consulting costs 0.4 1.8 — 2.2 Other costs 12.2 4.4 — 16.6 Total one-time costs $ 22.7 $ 18.6 $ 1.3 $ 42.6 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Segment Reporting [Abstract] | |
Segmental information related to depreciation, amortization, and impairment charges, and property, plant, and equipment additions | Year Ended April 30, 2018 2017 2016 Net sales: U.S. Retail Coffee $ 2,092.2 $ 2,108.6 $ 2,239.2 U.S. Retail Consumer Foods 2,000.8 2,085.4 2,269.7 U.S. Retail Pet Foods 2,169.3 2,135.9 2,250.4 International and Away From Home 1,094.8 1,062.4 1,051.9 Total net sales $ 7,357.1 $ 7,392.3 $ 7,811.2 Segment profit: U.S. Retail Coffee $ 614.5 $ 682.4 $ 722.6 U.S. Retail Consumer Foods 477.2 458.2 467.5 U.S. Retail Pet Foods 441.3 481.0 493.9 International and Away From Home 194.2 185.1 179.0 Total segment profit $ 1,727.2 $ 1,806.7 $ 1,863.0 Amortization (206.8 ) (207.3 ) (208.4 ) Goodwill impairment charge (145.0 ) — — Other intangible assets impairment charges (31.9 ) (133.2 ) — Interest expense – net (174.1 ) (163.1 ) (171.1 ) Unallocated derivative gains (losses) 37.3 (27.2 ) 12.0 Cost of products sold – special project costs (A) (3.9 ) (5.7 ) (12.2 ) Other special project costs (A) (45.4 ) (76.9 ) (135.9 ) Corporate administrative expenses (295.4 ) (324.9 ) (373.2 ) Other income (expense) – net (1.0 ) 10.0 3.7 Income before income taxes $ 861.0 $ 878.4 $ 977.9 Assets: U.S. Retail Coffee $ 4,815.4 $ 4,909.9 $ 5,002.0 U.S. Retail Consumer Foods 3,217.5 3,157.2 3,288.5 U.S. Retail Pet Foods 5,932.3 6,232.9 6,321.6 International and Away From Home 1,043.9 1,053.4 1,168.6 Unallocated (B) 292.1 286.3 203.4 Total assets $ 15,301.2 $ 15,639.7 $ 15,984.1 Depreciation, amortization, and impairment charges: U.S. Retail Coffee $ 96.6 $ 95.7 $ 104.0 U.S. Retail Consumer Foods 80.2 73.2 60.7 U.S. Retail Pet Foods 314.8 280.8 164.9 International and Away From Home 57.8 61.9 66.2 Unallocated (C) 40.6 40.6 34.3 Total depreciation, amortization, and impairment charges $ 590.0 $ 552.2 $ 430.1 Additions to property, plant, and equipment: U.S. Retail Coffee $ 89.4 $ 40.9 $ 51.4 U.S. Retail Consumer Foods 168.9 49.7 90.3 U.S. Retail Pet Foods 34.3 70.5 11.9 International and Away From Home 29.3 31.3 47.8 Total additions to property, plant, and equipment $ 321.9 $ 192.4 $ 201.4 (A) Special project costs include integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. (B) Primarily represents unallocated cash and cash equivalents and corporate-held investments. (C) Primarily represents unallocated corporate administrative expense, mainly depreciation and software amortization. |
Segment information related to net sales and long-lived assets | The following table presents certain geographical information. Year Ended April 30, 2018 2017 2016 Net sales: United States $ 6,786.5 $ 6,865.1 $ 7,300.8 International: Canada $ 431.8 $ 414.3 $ 416.0 All other international 138.8 112.9 94.4 Total international $ 570.6 $ 527.2 $ 510.4 Total net sales $ 7,357.1 $ 7,392.3 $ 7,811.2 Assets: United States $ 14,828.2 $ 15,214.3 $ 15,501.1 International: Canada $ 428.7 $ 380.9 $ 396.2 All other international 44.3 44.5 86.8 Total international $ 473.0 $ 425.4 $ 483.0 Total assets $ 15,301.2 $ 15,639.7 $ 15,984.1 Long-lived assets (excluding goodwill and other intangible assets): United States $ 1,869.8 $ 1,757.1 $ 1,773.9 International: Canada $ 17.4 $ 13.4 $ 10.7 All other international 0.3 0.4 40.6 Total international $ 17.7 $ 13.8 $ 51.3 Total long-lived assets (excluding goodwill and other intangible assets) $ 1,887.5 $ 1,770.9 $ 1,825.2 |
Product sales information | The following table presents product category sales as a percentage of consolidated net sales. Year Ended April 30, 2018 2017 2016 Coffee 34 % 34 % 34 % Dog food 11 10 10 Pet snacks 10 10 10 Peanut butter 10 10 9 Cat food 9 9 9 Fruit spreads 5 5 4 Shortening and oils 4 4 4 Baking mixes and frostings 3 3 3 Frozen handheld 3 3 3 Flour and baking ingredients 2 2 2 Juices and beverages 2 2 2 Portion control 2 2 2 Canned milk 1 1 3 Other 4 5 5 Total product sales 100 % 100 % 100 % |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
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. Year Ended April 30, 2018 2017 2016 Net income $ 1,338.6 $ 592.3 $ 688.7 Less: Net income allocated to participating securities 6.8 2.8 3.0 Net income allocated to common stockholders $ 1,331.8 $ 589.5 $ 685.7 Weighted-average common shares outstanding 113.0 115.5 118.9 Add: Dilutive effect of stock options — 0.1 0.1 Weighted-average common shares outstanding – assuming dilution 113.0 115.6 119.0 Net income per common share $ 11.79 $ 5.11 $ 5.77 Net income per common share – assuming dilution $ 11.78 $ 5.10 $ 5.76 |
Goodwill and Other Intangible31
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the company's goodwill | A summary of changes in goodwill by reportable segment is as follows: U.S. Retail Coffee U.S. Retail Consumer Foods U.S. Retail Pet Foods International and Away From Home Total Balance at May 1, 2016 $ 2,090.9 $ 1,600.9 $ 1,969.5 $ 429.8 $ 6,091.1 Other (A) — (1.9 ) — (12.1 ) (14.0 ) Balance at April 30, 2017 $ 2,090.9 $ 1,599.0 $ 1,969.5 $ 417.7 $ 6,077.1 Impairment charges (B) — — (145.0 ) — (145.0 ) Other (A) — 1.4 — 8.7 10.1 Balance at April 30, 2018 $ 2,090.9 $ 1,600.4 $ 1,824.5 $ 426.4 $ 5,942.2 (A) The amounts classified as other represent foreign currency exchange adjustments. (B) There have been no goodwill impairment charges recognized in prior periods. |
Other intangible assets and related accumulated amortization, impairment charges, and foreign currency exchange | T he following table summarizes our other intangible assets and related accumulated amortization and impairment charges, including foreign currency exchange adjustments. April 30, 2018 April 30, 2017 Acquisition Cost Accumulated Amortization/ Impairment Charges/ Foreign Currency Exchange Net Acquisition Cost Accumulated Amortization/ Impairment Charges/ Foreign Currency Exchange Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 3,520.1 $ 959.3 $ 2,560.8 $ 3,520.1 $ 802.1 $ 2,718.0 Patents and technology 168.5 114.4 54.1 168.5 101.4 67.1 Trademarks 556.4 145.0 411.4 556.4 112.7 443.7 Total intangible assets subject to amortization $ 4,245.0 $ 1,218.7 $ 3,026.3 $ 4,245.0 $ 1,016.2 $ 3,228.8 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 3,078.1 $ 187.9 $ 2,890.2 $ 3,078.1 $ 157.0 $ 2,921.1 Total other intangible assets $ 7,323.1 $ 1,406.6 $ 5,916.5 $ 7,323.1 $ 1,173.2 $ 6,149.9 |
Debt and Financing Arrangemen32
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: April 30, 2018 April 30, 2017 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 1.75% Senior Notes due March 15, 2018 $ — $ — $ 500.0 $ 499.0 2.20% Senior Notes due December 6, 2019 300.0 298.6 — — 2.50% Senior Notes due March 15, 2020 500.0 497.8 500.0 496.6 3.50% Senior Notes due October 15, 2021 750.0 775.6 750.0 782.6 3.00% Senior Notes due March 15, 2022 400.0 397.3 400.0 396.6 3.50% Senior Notes due March 15, 2025 1,000.0 994.4 1,000.0 993.6 3.38% Senior Notes due December 15, 2027 500.0 495.8 — — 4.25% Senior Notes due March 15, 2035 650.0 643.1 650.0 642.6 4.38% Senior Notes due March 15, 2045 600.0 585.4 600.0 584.9 Term Loan Credit Agreement due March 23, 2020 — — 550.0 548.6 Total long-term debt $ 4,700.0 $ 4,688.0 $ 4,950.0 $ 4,944.5 Current portion of long-term debt — — 500.0 499.0 Total long-term debt, less current portion $ 4,700.0 $ 4,688.0 $ 4,450.0 $ 4,445.5 (A) Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. |
Pensions and Other Postretire33
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Retirement Benefits [Abstract] | |
Net periodic benefit cost | The following table summarizes the components of net periodic benefit cost and the change in accumulated other comprehensive income (loss) related to the defined benefit pension and other postretirement plans. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2018 2017 2016 2018 2017 2016 Service cost $ 5.2 $ 12.7 $ 17.8 $ 2.0 $ 2.3 $ 2.3 Interest cost 21.6 25.3 27.7 2.1 2.6 2.8 Expected return on plan assets (28.8 ) (29.3 ) (32.9 ) — — — Amortization of prior service cost (credit) 0.9 1.1 0.7 (1.4 ) (1.5 ) (1.1 ) Amortization of net actuarial loss (gain) 11.5 13.8 10.9 (0.3 ) (0.2 ) (0.3 ) Curtailment loss (gain) — — (6.5 ) — — (0.3 ) Settlement loss (gain) 2.3 (0.7 ) — — — — Net periodic benefit cost $ 12.7 $ 22.9 $ 17.7 $ 2.4 $ 3.2 $ 3.4 |
Net change for the year in accumulated OCI before taxes | Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive income (loss) before income taxes: Prior service credit (cost) arising during the year $ — $ 2.1 $ (5.3 ) $ (0.2 ) $ 3.0 $ — Net actuarial gain (loss) arising during the year 3.5 1.5 (43.3 ) 5.5 2.3 — Amortization of prior service cost (credit) 0.9 1.1 0.7 (1.4 ) (1.5 ) (1.1 ) Amortization of net actuarial loss (gain) 11.5 13.8 10.9 (0.3 ) (0.2 ) (0.3 ) Curtailment loss (gain) — 28.8 (6.5 ) — 0.1 (0.3 ) Settlement loss (gain) 2.3 (0.7 ) — — — — Foreign currency translation (1.8 ) 2.5 0.8 (0.1 ) — — Net change for year $ 16.4 $ 49.1 $ (42.7 ) $ 3.5 $ 3.7 $ (1.7 ) |
Weighted-average assumptions used in determining net periodic benefit costs | Weighted-average assumptions used in determining net periodic benefit costs: U.S. plans: Discount rate used to determine benefit obligation 3.95 % 3.85 % 4.06 % 3.86 % 3.80 % 4.04 % Discount rate used to determine service cost 4.20 3.85 4.06 4.06 3.80 4.04 Discount rate used to determine interest cost 3.38 3.85 4.06 3.24 3.80 4.04 Expected return on plan assets 6.27 6.27 6.58 — — — Rate of compensation increase 3.78 3.96 4.06 — — — Canadian plans: Discount rate used to determine benefit obligation 3.22 % 3.60 % 3.51 % 3.19 % 3.50 % 3.50 % Discount rate used to determine service cost 3.39 3.60 3.51 3.70 3.50 3.50 Discount rate used to determine interest cost 2.60 3.60 3.51 2.58 3.50 3.50 Expected return on plan assets 5.00 5.25 5.65 — — — Rate of compensation increase 3.00 3.00 3.00 — — — |
Combined status of the plans | The following table sets forth the combined status of the plans as recognized in the Consolidated Balance Sheets. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 Change in benefit obligation: Benefit obligation at beginning of year $ 677.3 $ 745.9 $ 70.7 $ 75.9 Service cost 5.2 12.7 2.0 2.3 Interest cost 21.6 25.3 2.1 2.6 Amendments — — 0.2 (3.0 ) Actuarial loss (gain) (10.8 ) 6.7 (5.5 ) (2.3 ) Benefits paid (36.0 ) (43.8 ) (4.3 ) (3.9 ) Foreign currency translation adjustments 5.8 (7.8 ) 0.7 (0.8 ) Curtailment — (30.9 ) — (0.1 ) Settlement (23.4 ) (30.8 ) — — Benefit obligation at end of year $ 639.7 $ 677.3 $ 65.9 $ 70.7 Change in plan assets: Fair value of plan assets at beginning of year $ 489.2 $ 505.6 $ — $ — Actual return on plan assets 21.5 37.4 — — Company contributions 39.6 28.7 4.3 3.9 Benefits paid (36.0 ) (43.8 ) (4.3 ) (3.9 ) Settlement (23.4 ) (30.8 ) — — Foreign currency translation adjustments 6.1 (7.9 ) — — Fair value of plan assets at end of year $ 497.0 $ 489.2 $ — $ — Funded status of the plans $ (142.7 ) $ (188.1 ) $ (65.9 ) $ (70.7 ) Defined benefit pensions $ (144.1 ) $ (189.8 ) $ — $ — Other noncurrent assets 9.5 5.7 — — Accrued compensation (8.1 ) (4.0 ) (4.0 ) (4.1 ) Other postretirement benefits — — (61.9 ) (66.6 ) Net benefit liability $ (142.7 ) $ (188.1 ) $ (65.9 ) $ (70.7 ) |
Amounts recognized in accumulated other comprehensive income (loss) before taxes | The following table summarizes amounts recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, before income taxes. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 Net actuarial gain (loss) $ (150.9 ) $ (166.4 ) $ 13.6 $ 8.5 Prior service credit (cost) (4.7 ) (5.6 ) 9.1 10.7 Total recognized in accumulated other comprehensive income (loss) $ (155.6 ) $ (172.0 ) $ 22.7 $ 19.2 |
Assumptions used in determining the benefit obligations | The following table sets forth the weighted-average assumptions used in determining the benefit obligations. Defined Benefit Pension Plans Other Postretirement Benefits April 30, 2018 2017 2018 2017 U.S. plans: Discount rate 4.17 % 3.95 % 4.13 % 3.86 % Rate of compensation increase 3.59 4.15 — — Canadian plans: Discount rate 3.57 % 3.22 % 3.55 % 3.16 % Rate of compensation increase 3.00 3.00 — — |
One-percentage point annual change in the assumed health care cost | A one percentage point annual change in the assumed health care cost trend rate would have the following effect as of April 30, 2018 : One Percentage Point Increase Decrease Effect on total service and interest cost components $ — $ 0.1 Effect on benefit obligation 1.0 1.1 |
Company's Canadian pension and other postretirement benefit plans | The following table sets forth selective information pertaining to our Canadian pension and other postretirement benefit plans, which is included in the consolidated information presented on pages 68 and 69. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2018 2017 2018 2017 Benefit obligation at end of year $ 87.6 $ 89.8 $ 7.3 $ 9.4 Fair value of plan assets at end of year 96.4 94.8 — — Funded status of the plans $ 8.8 $ 5.0 $ (7.3 ) $ (9.4 ) Components of net periodic benefit cost: Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 2.4 3.2 0.3 0.3 Expected return on plan assets (5.0 ) (4.7 ) — — Amortization of net actuarial loss (gain) 0.8 1.1 — — Net periodic benefit cost (credit) $ (1.6 ) $ (0.1 ) $ 0.3 $ 0.3 Changes in plan assets: Company contributions $ 0.9 $ 3.1 $ 0.5 $ 0.5 Benefits paid (6.8 ) (6.6 ) (0.5 ) (0.5 ) Actual return on plan assets 1.5 10.2 — — Foreign currency translation 6.0 (7.9 ) — — |
Benefit obligations in excess of fair value of plan assets | The following table sets forth additional information related to our defined benefit pension plans. April 30, 2018 2017 Accumulated benefit obligation for all pension plans $ 627.9 $ 659.6 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 541.3 $ 570.6 Fair value of plan assets 400.6 394.4 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 552.9 $ 588.2 Fair value of plan assets 400.6 394.4 |
Major asset classes for the U.S. and Canadian defined benefit pension plans and fair value hierarchy levels | The following tables summarize the major asset classes for the U.S. and Canadian defined benefit pension plans and the levels within the fair value hierarchy for those assets measured at fair value. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets at April 30, 2018 Cash and cash equivalents (A) $ 3.7 $ — $ — $ 3.7 Equity securities: U.S. (B) 94.8 1.9 — 96.7 International (C) 73.2 9.7 — 82.9 Fixed-income securities: Bonds (D) 231.8 — — 231.8 Fixed income (E) 53.0 — — 53.0 Other types of investments (F) — 16.8 3.2 20.0 Total financial assets measured at fair value $ 456.5 $ 28.4 $ 3.2 $ 488.1 Total financial assets measured at net asset value (G) 8.9 Total plan assets $ 497.0 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Plan Assets at April 30, 2017 Cash and cash equivalents (A) $ 2.7 $ — $ — $ 2.7 Equity securities: U.S. (B) 128.9 1.9 — 130.8 International (C) 81.4 10.5 — 91.9 Fixed-income securities: Bonds (D) 168.5 — — 168.5 Fixed income (E) 71.9 — — 71.9 Other types of investments (F) 6.7 4.5 2.4 13.6 Total financial assets measured at fair value $ 460.1 $ 16.9 $ 2.4 $ 479.4 Total financial assets measured at net asset value (G) 9.8 Total plan assets $ 489.2 (A) This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. (B) This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. (C) This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. (D) This category is primarily comprised of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years . In 2018, this category is further comprised of various U.S. Treasury Separate Trading of Registered Interest and Principal (“STRIP”) holdings, with wide-ranging maturity dates. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (E) This category is comprised of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (F) This category is comprised of a real estate fund whereby the underlying investments are contained in the Canadian market and a private limited investment partnership in 2017, and in 2018, this category also included a common collective trust fund investing in direct commercial property funds. In 2017, the category included a dynamic asset allocation mutual fund, which was comprised of U.S. and global equities and fixed-income securities inclusive of derivatives within the asset mix. The dynamic asset allocation mutual fund was classified as a Level 1 asset, whereby the assets are valued using quoted market prices for identical securities in active markets. The real estate fund and the collective trust fund investing in direct commercial property are classified as a Level 2 asset, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. The private investment limited partnership is classified as a Level 3 asset. The investments in the partnership are valued at estimated fair value based on audited financial statements received from the general partner. The private investment limited partnership cannot be redeemed, and the return of principal is based on the liquidation of the underlying assets. (G) This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds. The fair value estimate of the private equity fund is based on the underlying funds’ net asset values further as a practical expedient equivalent to the Company’s defined benefit plan’s ownership interest in partners’ capital, whereby a proportionate share of the net assets is attributed and further corroborated by our review. The private equity fund is non-redeemable, and the return of principal is based on the liquidation of the underlying assets. In accordance with ASU 2015-07, the private equity fund is removed from the total financial assets measured at fair value and disclosed separately. |
Roll Forward of activity for Level 3 assets | The following table presents a rollforward of activity for Level 3 assets. 2018 2017 Balance at May 1, $ 2.4 $ 3.2 Actual return on plan assets still held at reporting date 0.8 (0.8 ) Balance at April 30, $ 3.2 $ 2.4 |
Derivative Financial Instrume34
Derivative Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
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 Consolidated Balance Sheets. April 30, 2018 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives not designated as hedging instruments: Commodity contracts $ 14.8 $ 6.8 $ 0.4 $ 0.2 Foreign currency exchange contracts 2.2 0.7 — — Total derivative instruments $ 17.0 $ 7.5 $ 0.4 $ 0.2 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 of 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. Year Ended April 30, 2018 2017 2016 Gains (losses) on commodity contracts $ 6.5 $ (45.2 ) $ (31.6 ) Gains (losses) on foreign currency exchange contracts (5.9 ) 9.8 2.0 Total gains (losses) recognized in costs of products sold $ 0.6 $ (35.4 ) $ (29.6 ) |
Schedule of unallocated derivative (losses) gains | The following table presents the activity in unallocated derivative gains and losses. Year Ended April 30, 2018 2017 2016 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 0.6 $ (35.4 ) $ (29.6 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (36.7 ) (8.2 ) (41.6 ) Unallocated derivative gains (losses) $ 37.3 $ (27.2 ) $ 12.0 |
Outstanding derivative contracts | The following table presents the gross contract notional value of outstanding derivative contracts. Year Ended April 30, 2018 2017 Commodity contracts $ 658.0 $ 704.9 Foreign currency exchange contracts 122.1 195.4 |
Other Financial Instruments a35
Other Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
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. April 30, 2018 April 30, 2017 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 45.8 $ 45.8 $ 47.3 $ 47.3 Derivative financial instruments – net 9.7 9.7 (12.9 ) (12.9 ) Long-term debt (4,688.0 ) (4,579.8 ) (4,944.5 ) (5,023.8 ) |
Financial assets 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 April 30, 2018 Marketable securities and other investments: (A) Equity mutual funds $ 9.3 $ — $ — $ 9.3 Municipal obligations — 36.1 — 36.1 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net 7.2 1.0 — 8.2 Foreign currency exchange contracts – net 0.1 1.4 — 1.5 Long-term debt (C) (4,579.8 ) — — (4,579.8 ) Total financial instruments measured at fair value $ (4,562.8 ) $ 38.5 $ — $ (4,524.3 ) 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 April 30, 2018 , our municipal obligations are scheduled to mature as follows: $1.4 in 2019 , $1.7 in 2020 , $4.9 in 2021 , $1.0 in 2022 , and the remaining $27.1 in 2023 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. (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. For additional information, see Note 10: Derivative Financial Instruments. (C) Long-term debt is comprised of public Senior Notes classified as Level 1. In 2017, the previous term loan that was due March 23, 2020 is 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 was based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average Black-Scholes assumptions for stock options granted | The fair value of each stock option is estimated on the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions for stock options granted in 2016: 2016 Expected volatility (%) 20.7 % Dividend Yield (%) 2.3 % Risk-free interest rate (%) 1.9 % Expected life of stock option (years) 5.9 |
Summary of the Company's stock option activity and related information | The following table is a summary of our stock option activity. Number of Stock Options Weighted-Average Exercise Price Outstanding at May 1, 2017 915,000 $ 113.07 Exercised 35,002 111.86 Cancelled 56,666 111.86 Outstanding at April 30, 2018 823,332 $ 113.20 Exercisable at April 30, 2018 270,006 $ 113.22 |
Summary of restricted shares, deferred shares, deferred stock units, and performance units | The following table is a summary of our restricted shares, deferred stock units, and performance units. Restricted Shares and Deferred Stock Units Weighted- Average Grant Date Fair Value Performance Units Weighted- Average Conversion Date Fair Value Outstanding at May 1, 2017 573,405 $ 115.88 73,701 $ 126.80 Granted 136,127 126.80 84,051 103.86 Converted 73,701 126.80 (73,701 ) 126.80 Vested (161,581 ) 106.04 — — Forfeited (79,294 ) 120.27 — — Outstanding at April 30, 2018 542,358 $ 122.39 84,051 $ 103.86 |
Weighted-average grant date fair values of the equity awards | The following table summarizes the weighted-average fair values of the equity awards granted. Year Ended April 30, Restricted Shares and Deferred Stock Units Weighted- Average Grant Date Fair Value Performance Units Weighted- Average Conversion Date Fair Value 2018 136,127 $ 126.80 84,051 $ 103.86 2017 180,997 133.92 73,701 126.80 2016 97,922 113.57 121,936 132.46 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income (loss) before income taxes | Income before income taxes is as follows: Year Ended April 30, 2018 2017 2016 Domestic $ 828.6 $ 836.8 $ 959.3 Foreign 32.4 41.6 18.6 Income before income taxes $ 861.0 $ 878.4 $ 977.9 |
Components of the provision for income taxes resulting from the enactment of the Act | Accordingly, our income tax provision as of April 30, 2018, reflects the current year impacts of the Act and the following provisional estimates of our adjustments resulting directly from the enactment of the Act based on information available, prepared, or analyzed to date in reasonable detail. (Provisional amounts recorded) Year Ended April 30, 2018 Net impact on U.S. deferred tax assets and liabilities $ (791.9 ) Transition tax 26.1 Net impact of adjustments $ (765.8 ) |
Components of the provision for income taxes | The components of the provision for income taxes are as follows: Year Ended April 30, 2018 2017 2016 Current: Federal $ 277.9 $ 325.1 $ 342.5 Foreign 7.9 11.0 4.8 State and local 40.0 29.4 37.1 Deferred: Federal (802.3 ) (78.3 ) (32.1 ) Foreign 0.5 1.6 1.3 State and local (1.6 ) (2.7 ) (64.4 ) Total income tax expense (benefit) $ (477.6 ) $ 286.1 $ 289.2 |
Reconciliation of the statutory federal income tax rate and the effective income tax rate | A reconciliation of the statutory federal income tax rate and the effective income tax rate is as follows: Year Ended April 30, (Percent of Pre-tax Income) 2018 2017 2016 Statutory federal income tax rate 30.4 % 35.0 % 35.0 % Tax reform – net impact on U.S. deferred tax assets and liabilities (provisional) (92.0 ) — — Tax reform – transition tax (provisional) 3.0 — — Goodwill impairment 5.5 — — State and local income taxes 1.9 2.1 2.5 Domestic manufacturing deduction (3.0 ) (3.7 ) (3.5 ) Deferred tax benefit from integration — — (5.2 ) Other items – net (1.3 ) (0.8 ) 0.8 Effective income tax rate (55.5 )% 32.6 % 29.6 % Income taxes paid $ 336.8 $ 367.2 $ 290.5 |
Deferred tax assets and liabilities | Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Significant components of our deferred tax assets and liabilities are as follows: April 30, 2018 2017 Deferred tax liabilities: Intangible assets $ 1,393.6 $ 2,248.0 Property, plant, and equipment 98.5 129.8 Other 14.2 16.5 Total deferred tax liabilities $ 1,506.3 $ 2,394.3 Deferred tax assets: Post-employment and other employee benefits $ 75.5 $ 146.3 Tax credit and loss carryforwards 0.2 1.8 Intangible assets 18.8 25.4 Inventory 5.9 10.5 Property, plant, and equipment 6.4 3.1 Other 25.2 43.8 Total deferred tax assets $ 132.0 $ 230.9 Valuation allowance (2.9 ) (3.6 ) Total deferred tax assets, less allowance $ 129.1 $ 227.3 Net deferred tax liability $ 1,377.2 $ 2,167.0 |
Reconciliation of unrecognized tax benefits | A reconciliation of our unrecognized tax benefits is as follows: 2018 2017 2016 Balance at May 1, $ 40.4 $ 46.3 $ 45.0 Increases: Current year tax positions 1.1 0.7 3.3 Prior year tax positions 0.5 1.2 0.2 Acquired businesses — — 3.3 Decreases: Prior year tax positions — 0.9 0.9 Settlement with tax authorities 3.0 1.1 2.5 Expiration of statute of limitations periods 6.7 5.8 2.1 Balance at April 30, $ 32.3 $ 40.4 $ 46.3 |
Accumulated Other Comprehensi38
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Apr. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive (loss) income | 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, 2015 $ (2.3 ) $ (5.2 ) $ (105.6 ) $ 3.3 $ (109.8 ) Reclassification adjustments — 0.6 10.2 — 10.8 Current period credit (charge) (10.8 ) — (54.6 ) 0.4 (65.0 ) Income tax benefit (expense) — (0.2 ) 15.9 (0.1 ) 15.6 Balance at April 30, 2016 $ (13.1 ) $ (4.8 ) $ (134.1 ) $ 3.6 $ (148.4 ) Reclassification adjustments — 0.6 13.2 — 13.8 Current period credit (charge) (29.9 ) — 39.6 0.6 10.3 Income tax benefit (expense) — (0.2 ) (18.7 ) (0.2 ) (19.1 ) Balance at April 30, 2017 $ (43.0 ) $ (4.4 ) $ (100.0 ) $ 4.0 $ (143.4 ) Reclassification adjustments — 0.5 10.7 — 11.2 Current period credit (charge) 26.6 2.7 9.2 (1.7 ) 36.8 Income tax benefit (expense) — (1.2 ) (5.6 ) 0.5 (6.3 ) Reclassification of stranded tax effects (C) — (0.5 ) (15.3 ) 0.8 (15.0 ) Balance at April 30, 2018 $ (16.4 ) $ (2.9 ) $ (101.0 ) $ 3.6 $ (116.7 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The 2018 credit relates to the gain on the interest rate contract terminated in December 2017. For additional information, see Note 10: Derivative Financial Instruments. (B) Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to SD&A. (C) During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income , which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Note 13: Income Taxes. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 15.4 | $ 22 | $ 34.6 | |
Related income tax benefit | 4.6 | 7.2 | 10.2 | |
Selling, Distribution And Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 13.7 | 22.3 | 26.3 | |
Other Special Project Costs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 1.7 | $ (0.3) | [1] | $ 8.3 |
[1] | During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. For additional information, see Note 12: Share-Based Payments. |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) $ in Millions | Feb. 01, 2018reporting_unit | Apr. 30, 2018USD ($) | Dec. 31, 2017 | Apr. 30, 2018USD ($)FacilityContract | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) |
Accounting Policies (Additional Textual) [Abstract] | ||||||
Company's total subsequent period adjustments included in consolidated pretax income and cash provided by operating activities | 2.00% | 2.00% | 2.00% | |||
Company's total promotional expenditures, including amounts classified as a reduction of net sales, represented approximately in percentage of net sales | 35.00% | 33.00% | 31.00% | |||
Advertising expense | $ 194.2 | $ 169.8 | $ 170.3 | |||
Excess tax benefits realized upon exercise or vesting of share-based compensation | 1.5 | 3.3 | 2.7 | |||
Charges for defined contribution plans | 36.3 | 31.9 | 25.9 | |||
Allowance for doubtful accounts | $ 1.1 | 1.1 | 1.6 | |||
Rent expense | 95.2 | 101 | $ 92.5 | |||
Minimum operating lease obligations in 2019 | 42.8 | 42.8 | ||||
Minimum operating lease obligations in 2020 | 37.5 | 37.5 | ||||
Minimum operating lease obligations in 2021 | 33.3 | 33.3 | ||||
Minimum operating lease obligations in 2022 | 29.9 | 29.9 | ||||
Minimum operating lease obligations in 2023 | $ 29.1 | 29.1 | ||||
Number of reporting units | reporting_unit | 7 | |||||
Unrealized pre-tax gains included in accumulated other comprehensive loss on available-for-sale securities | $ 4.7 | $ 6.3 | ||||
Number of union contracts expiring in 2019 | Contract | 1 | |||||
Facilities covered by union contracts | Facility | 10 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 30.40% | 35.00% | 35.00% | |
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of investment | $ 0 | $ 40.6 | $ 0 | |||
Gain on sale of investment | 3.8 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Requisite service period for share-based payments | 1 year | |||||
Forfeiture period for share-based payments | 4 years | |||||
Compensation cost related to nonvested share-based awards not yet recognized | $ 42.6 | $ 42.6 | ||||
Weighted-average period of recognition | 3 years 4 months 24 days | |||||
Foreign currency loss | (116.7) | $ (116.7) | (143.4) | |||
Selling, Distribution And Administrative Expense [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Research and development costs | 56 | 58.1 | 58.8 | |||
Shipping and handling costs | 245.4 | 252.9 | $ 236.1 | |||
Foreign Currency Translation Adjustment [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Foreign currency loss | $ (16.4) | $ (16.4) | $ (43) | |||
Machinery and equipment [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 20 years | |||||
Machinery and equipment [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 3 years | |||||
Capitalized software costs [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 7 years | |||||
Capitalized software costs [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 1 year | |||||
Buildings, fixtures, and improvements [Member] | Maximum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 40 years | |||||
Buildings, fixtures, and improvements [Member] | Minimum [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 5 years | |||||
Seamild [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest acquired | 25.00% | |||||
Mountain Country Foods [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest acquired | 20.00% | 20.00% | ||||
Numi, Inc. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest acquired | 44.00% | 44.00% | ||||
Unionized Employees [Member] | Number of Employees, Total [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of concentration risk | 28.00% | |||||
Unionized Employees Subject to Union Contracts Expiring within One Year | Number of Employees, Total [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of concentration risk | 1.00% | |||||
Work In Process Inventory [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Work-in-process inventory | $ 80.9 | $ 80.9 | $ 72.2 | |||
Other Noncurrent Assets [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Fair value of funds for the payment of benefits associated with nonqualified retirement plans included in other noncurrent assets | $ 45.8 | $ 45.8 | 47.3 | |||
Other Noncurrent Assets [Member] | Seamild [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment | $ 35.9 | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Forfeiture period for share-based payments | 10 years | |||||
Employee Stock Option [Member] | Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for share-based payments | 3 years | |||||
Employee Stock Option [Member] | Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for share-based payments | 1 year |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) $ in Millions | May 14, 2018USD ($)Facility | Apr. 30, 2018USD ($)shares | Apr. 30, 2017USD ($)shares | Apr. 30, 2016USD ($) | |
Acquisitions (Textual) [Abstract] | |||||
Common shares outstanding | shares | 113,572,840 | 113,439,553 | |||
Cash payments for acquisitions | $ 0 | $ 0 | $ (7.9) | ||
Long-term debt, less current portion | [1] | 4,688 | 4,445.5 | ||
Goodwill | 5,942.2 | 6,077.1 | $ 6,091.1 | ||
Debt Instrument, Face Amount | 4,700 | $ 4,950 | |||
Subsequent Event [Member] | Ainsworth [Member] | |||||
Acquisitions (Textual) [Abstract] | |||||
Cash payments for acquisitions | $ 1,900 | ||||
Commercial Paper | $ 400 | ||||
Number of facilities acquired | Facility | 2 | ||||
Business Combination, Integration Related Costs, Expected | $ 50 | ||||
Term Loan Credit Agreement [Member] | |||||
Acquisitions (Textual) [Abstract] | |||||
Debt Instrument, Face Amount | $ 0 | ||||
Term Loan Credit Agreement [Member] | Subsequent Event [Member] | Ainsworth [Member] | |||||
Acquisitions (Textual) [Abstract] | |||||
Debt Instrument, Face Amount | $ 1,500 | ||||
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. |
Integration and Restructuring42
Integration and Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Organization Optimization Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 22.7 | $ 18.6 | $ 1.3 |
Restructuring and Related Cost, Cost Incurred to Date | 42.6 | ||
Organization Optimization Program [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 10.1 | 12.4 | 1.3 |
Restructuring and Related Cost, Cost Incurred to Date | 23.8 | ||
Organization Optimization Program [Member] | Outside Services and Consulting [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 0.4 | 1.8 | 0 |
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 | 12.2 | 4.4 | 0 |
Restructuring and Related Cost, Cost Incurred to Date | 16.6 | ||
Big Heart [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 26.6 | 64.1 | 145.2 |
Restructuring and Related Cost, Cost Incurred to Date | 271.9 | ||
Big Heart [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 8.5 | 16.3 | 52.4 |
Restructuring and Related Cost, Cost Incurred to Date | 90.6 | ||
Big Heart [Member] | Outside Services and Consulting [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 11.6 | 33.9 | 56 |
Restructuring and Related Cost, Cost Incurred to Date | 117.6 | ||
Big Heart [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 6.5 | $ 13.9 | $ 36.8 |
Restructuring and Related Cost, Cost Incurred to Date | $ 63.7 |
Integration and Restructuring43
Integration and Restructuring Costs - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018USD ($)leasePosition | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | |
Organization Optimization Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 75 | ||
Restructuring and related cost, incurred cost | 22.7 | $ 18.6 | $ 1.3 |
Restructuring and related cost, noncash charge incurred to date | 11.9 | ||
Restructuring and related cost, incurred noncash charge | $ 9.8 | 2.1 | 0 |
Reduction in positions due to restructuring | Position | 275 | ||
Restructuring and related costs, number of leases exited | lease | 2 | ||
Organization Optimization Program [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 10.1 | 12.4 | 1.3 |
Restructuring and related cost obligations | 0.3 | 3.3 | |
Organization Optimization Program [Member] | Outside Services and Consulting [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 0.4 | 1.8 | 0 |
Organization Optimization Program [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 12.2 | 4.4 | 0 |
Big Heart [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 26.6 | 64.1 | 145.2 |
Restructuring and related cost, noncash charge incurred to date | 30.4 | ||
Restructuring and related cost, incurred noncash charge | 2.6 | 3.2 | 18.9 |
Big Heart [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 8.5 | 16.3 | 52.4 |
Restructuring and related cost obligations | 0.1 | 5.3 | |
Big Heart [Member] | Outside Services and Consulting [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 11.6 | 33.9 | 56 |
Big Heart [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 6.5 | $ 13.9 | $ 36.8 |
Divestiture (Details)
Divestiture (Details) - U.S. Canned Milk Business [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2016 | Dec. 31, 2015 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, net annual sales | $ 200 | |
Disposal group, net proceeds received | $ 193.7 | |
Other Operating Income (Expense) [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal group, pre-tax gain recognized | $ 25.3 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |||
Segment Reporting Information [Line Items] | |||||
Net sales | $ 7,357.1 | $ 7,392.3 | $ 7,811.2 | ||
Amortization | (206.8) | (207.3) | (208.4) | ||
Goodwill impairment charge | (145) | [1] | 0 | 0 | |
Other intangible assets impairment charges | (31.9) | (133.2) | 0 | ||
Interest expense – net | (174.1) | (163.1) | (171.1) | ||
Unallocated derivative gains (losses) | 37.3 | (27.2) | 12 | ||
Cost of products sold – special project costs (A) | [2] | (3.9) | (5.7) | (12.2) | |
Other special project costs (A) | [2],[3] | (45.4) | (76.9) | (135.9) | |
Corporate administrative expenses | (295.4) | (324.9) | (373.2) | ||
Other income (expense) – net | (1) | 10 | 3.7 | ||
Income Before Income Taxes | 861 | 878.4 | 977.9 | ||
Assets | 15,301.2 | 15,639.7 | 15,984.1 | ||
Depreciation, amortization, and impairment charges | 590 | 552.2 | 430.1 | ||
Additions to property, plant, and equipment | 321.9 | 192.4 | 201.4 | ||
U.S. Retail Coffee [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment charge | [1] | 0 | |||
U.S. Retail Consumer Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment charge | [1] | 0 | |||
U.S. Retail Pet Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment charge | [1] | (145) | |||
International and Away From Home [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Goodwill impairment charge | [1] | 0 | |||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 7,357.1 | 7,392.3 | 7,811.2 | ||
Segment profit | 1,727.2 | 1,806.7 | 1,863 | ||
Operating Segments [Member] | U.S. Retail Coffee [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,092.2 | 2,108.6 | 2,239.2 | ||
Segment profit | 614.5 | 682.4 | 722.6 | ||
Assets | 4,815.4 | 4,909.9 | 5,002 | ||
Depreciation, amortization, and impairment charges | 96.6 | 95.7 | 104 | ||
Additions to property, plant, and equipment | 89.4 | 40.9 | 51.4 | ||
Operating Segments [Member] | U.S. Retail Consumer Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,000.8 | 2,085.4 | 2,269.7 | ||
Segment profit | 477.2 | 458.2 | 467.5 | ||
Assets | 3,217.5 | 3,157.2 | 3,288.5 | ||
Depreciation, amortization, and impairment charges | 80.2 | 73.2 | 60.7 | ||
Additions to property, plant, and equipment | 168.9 | 49.7 | 90.3 | ||
Operating Segments [Member] | U.S. Retail Pet Foods [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 2,169.3 | 2,135.9 | 2,250.4 | ||
Segment profit | 441.3 | 481 | 493.9 | ||
Assets | 5,932.3 | 6,232.9 | 6,321.6 | ||
Depreciation, amortization, and impairment charges | 314.8 | 280.8 | 164.9 | ||
Additions to property, plant, and equipment | 34.3 | 70.5 | 11.9 | ||
Operating Segments [Member] | International and Away From Home [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales | 1,094.8 | 1,062.4 | 1,051.9 | ||
Segment profit | 194.2 | 185.1 | 179 | ||
Assets | 1,043.9 | 1,053.4 | 1,168.6 | ||
Depreciation, amortization, and impairment charges | 57.8 | 61.9 | 66.2 | ||
Additions to property, plant, and equipment | 29.3 | 31.3 | 47.8 | ||
Unallocated [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Assets | [4] | 292.1 | 286.3 | 203.4 | |
Depreciation, amortization, and impairment charges | [5] | $ 40.6 | $ 40.6 | $ 34.3 | |
[1] | There have been no goodwill impairment charges recognized in prior periods. | ||||
[2] | Special project costs include integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. | ||||
[3] | Other special project costs includes integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. | ||||
[4] | Primarily represents unallocated cash and cash equivalents and corporate-held investments. | ||||
[5] | Primarily represents unallocated corporate administrative expense, mainly depreciation and software amortization. |
Reportable Segments (Details 1)
Reportable Segments (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | $ 7,357.1 | $ 7,392.3 | $ 7,811.2 |
Assets | 15,301.2 | 15,639.7 | 15,984.1 |
Total long-lived assets (excluding goodwill and other intangible assets) | 1,887.5 | 1,770.9 | 1,825.2 |
United States [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 6,786.5 | 6,865.1 | 7,300.8 |
Assets | 14,828.2 | 15,214.3 | 15,501.1 |
Long-lived assets | 1,869.8 | 1,757.1 | 1,773.9 |
Total international [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 570.6 | 527.2 | 510.4 |
Assets | 473 | 425.4 | 483 |
Long-lived assets | 17.7 | 13.8 | 51.3 |
Canada [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 431.8 | 414.3 | 416 |
Assets | 428.7 | 380.9 | 396.2 |
Long-lived assets | 17.4 | 13.4 | 10.7 |
All other international [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 138.8 | 112.9 | 94.4 |
Assets | 44.3 | 44.5 | 86.8 |
Long-lived assets | $ 0.3 | $ 0.4 | $ 40.6 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Revenue from External Customer [Line Items] | |||
Total product sales | 100.00% | 100.00% | 100.00% |
Coffee [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 34.00% | 34.00% | 34.00% |
Dog Food [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 11.00% | 10.00% | 10.00% |
Pet snacks [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 10.00% | 10.00% | 10.00% |
Peanut butter [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 10.00% | 10.00% | 9.00% |
Cat Food [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 9.00% | 9.00% | 9.00% |
Fruit spreads [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 5.00% | 5.00% | 4.00% |
Shortening and oils [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 4.00% | 4.00% | 4.00% |
Baking mixes and frostings [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 3.00% | 3.00% | 3.00% |
Frozen handheld [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 3.00% | 3.00% | 3.00% |
Flour and baking ingredients [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 2.00% | 2.00% | 2.00% |
Juices and beverages [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 2.00% | 2.00% | 2.00% |
Portion control [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 2.00% | 2.00% | 2.00% |
Canned milk [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 1.00% | 1.00% | 3.00% |
Other [Member] | |||
Revenue from External Customer [Line Items] | |||
Total product sales | 4.00% | 5.00% | 5.00% |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018USD ($)SegmentIndustry | Apr. 30, 2017USD ($) | Apr. 30, 2016 | |
Concentration Risk [Line Items] | |||
Number of industries in which Company operates | Industry | 1 | ||
Number of reportable segments | Segment | 4 | ||
Trade receivables, less allowance for doubtful accounts | $ 385.6 | $ 438.7 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | |||
Concentration Risk [Line Items] | |||
Trade receivables, less allowance for doubtful accounts | $ 123.1 | $ 138.2 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | Sales [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 31.00% | 30.00% | 30.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Earnings Per Share [Abstract] | |||
Net income | $ 1,338.6 | $ 592.3 | $ 688.7 |
Net income allocated to participating securities | 6.8 | 2.8 | 3 |
Net income allocated to common stockholders | $ 1,331.8 | $ 589.5 | $ 685.7 |
Weighted-average common shares outstanding (in shares) | 113 | 115.5 | 118.9 |
Dilutive effect of stock options (in shares) | 0 | 0.1 | 0.1 |
Weighted-average common shares outstanding - assuming dilution (in shares) | 113 | 115.6 | 119 |
Net income per common share (in dollars per share) | $ 11.79 | $ 5.11 | $ 5.77 |
Net income per common share - assuming dilution (in dollars per share) | $ 11.78 | $ 5.10 | $ 5.76 |
Goodwill and Other Intangible50
Goodwill and Other Intangible Assets (Details) - USD ($) | 12 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |||
Goodwill [Line Items] | |||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 145,000,000 | $ 0 | |||
Summary of changes in the company's goodwill | |||||
Goodwill, Beginning Balance | 6,077,100,000 | 6,091,100,000 | |||
Impairment charge | (145,000,000) | [1] | 0 | $ 0 | |
Other | [2] | 10,100,000 | (14,000,000) | ||
Goodwill, Ending Balance | 5,942,200,000 | 6,077,100,000 | 6,091,100,000 | ||
U.S. Retail Coffee [Member] | |||||
Summary of changes in the company's goodwill | |||||
Goodwill, Beginning Balance | 2,090,900,000 | 2,090,900,000 | |||
Impairment charge | [1] | 0 | |||
Other | [2] | 0 | 0 | ||
Goodwill, Ending Balance | 2,090,900,000 | 2,090,900,000 | 2,090,900,000 | ||
U.S. Retail Consumer Foods [Member] | |||||
Summary of changes in the company's goodwill | |||||
Goodwill, Beginning Balance | 1,599,000,000 | 1,600,900,000 | |||
Impairment charge | [1] | 0 | |||
Other | [2] | 1,400,000 | (1,900,000) | ||
Goodwill, Ending Balance | 1,600,400,000 | 1,599,000,000 | 1,600,900,000 | ||
U.S. Retail Pet Foods [Member] | |||||
Summary of changes in the company's goodwill | |||||
Goodwill, Beginning Balance | 1,969,500,000 | 1,969,500,000 | |||
Impairment charge | [1] | (145,000,000) | |||
Other | [2] | 0 | 0 | ||
Goodwill, Ending Balance | 1,824,500,000 | 1,969,500,000 | 1,969,500,000 | ||
International and Away From Home [Member] | |||||
Summary of changes in the company's goodwill | |||||
Goodwill, Beginning Balance | 417,700,000 | 429,800,000 | |||
Impairment charge | [1] | 0 | |||
Other | [2] | 8,700,000 | (12,100,000) | ||
Goodwill, Ending Balance | $ 426,400,000 | $ 417,700,000 | $ 429,800,000 | ||
[1] | There have been no goodwill impairment charges recognized in prior periods. | ||||
[2] | The amounts classified as other represent foreign currency exchange adjustments. |
Goodwill and Other Intangible51
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 |
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | $ 4,245 | $ 4,245 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 1,218.7 | 1,016.2 |
Finite-lived intangible assets subject to amortization, Net | 3,026.3 | 3,228.8 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Assets, Acquisition Cost | 7,323.1 | 7,323.1 |
Total Other Intangible Assets Accumulated Amortization Impairment Charges Foreign Currency Exchange | 1,406.6 | 1,173.2 |
Intangible Assets, Net (Excluding Goodwill) | 5,916.5 | 6,149.9 |
Trademarks [Member] | ||
Indefinite-lived intangible assets not subject to amortization: | ||
Indefinite-lived intangible assets not subject to amortization, Acquisition Costs | 3,078.1 | 3,078.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Indefinite Lived Assets | 187.9 | 157 |
Indefinite-lived intangible assets not subject to amortization, Net | 2,890.2 | 2,921.1 |
Customer and contractual relationships [Member] | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | 3,520.1 | 3,520.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 959.3 | 802.1 |
Finite-lived intangible assets subject to amortization, Net | 2,560.8 | 2,718 |
Patents and technology [Member] | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | 168.5 | 168.5 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 114.4 | 101.4 |
Finite-lived intangible assets subject to amortization, Net | 54.1 | 67.1 |
Trademarks [Member] | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | 556.4 | 556.4 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 145 | 112.7 |
Finite-lived intangible assets subject to amortization, Net | $ 411.4 | $ 443.7 |
Goodwill and Other Intangible52
Goodwill and Other Intangible Assets - Narrative (Details) | Feb. 01, 2018reporting_unit | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | ||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 145,000,000 | $ 0 | ||||
Amortization expense for finite-lived intangible assets | $ 204,800,000 | 205,900,000 | $ 204,700,000 | |||
Weighted-average useful life of the finite-lived intangible assets | 22 years | |||||
Estimated amortization expense for 2019 | $ 205,100,000 | |||||
Estimated amortization expense for 2020 | 200,400,000 | |||||
Estimated amortization expense for 2021 | 198,800,000 | |||||
Estimated amortization expense for 2022 | 193,400,000 | |||||
Estimated amortization expense for 2023 | 186,000,000 | |||||
Number of reporting units | reporting_unit | 7 | |||||
Impairment charges | 176,900,000 | |||||
Goodwill impairment charge | 145,000,000 | [1] | 0 | 0 | ||
Other intangible assets impairment charges | $ 31,900,000 | $ 133,200,000 | $ 0 | |||
Customer and Contractual Relationships [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Weighted-average useful life of the finite-lived intangible assets | 23 years | |||||
Patents And Technology [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Weighted-average useful life of the finite-lived intangible assets | 14 years | |||||
Trademarks [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Weighted-average useful life of the finite-lived intangible assets | 16 years | |||||
U.S. Retail Pet Foods [Member] | ||||||
Goodwill and Intangible Assets [Line Items] | ||||||
Goodwill impairment charge | [1] | $ 145,000,000 | ||||
[1] | There have been no goodwill impairment charges recognized in prior periods. |
Debt and Financing Arrangemen53
Debt and Financing Arrangements (Details) - USD ($) | Apr. 30, 2018 | Apr. 30, 2017 | |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 4,700,000,000 | $ 4,950,000,000 | |
Long-term debt | [1] | 4,688,000,000 | 4,944,500,000 |
Current portion of long-term debt | [1] | 0 | 499,000,000 |
Long-term debt, less current portion | [1] | 4,688,000,000 | 4,445,500,000 |
Current Portion Of Long Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 0 | 500,000,000 | |
Total Long Term Debt Less Current Portion [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 4,700,000,000 | 4,450,000,000 | |
Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 800,000,000 | ||
1.75% Senior Notes due March 15, 2018 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 1.75% | ||
Debt instrument face amount | $ 0 | 500,000,000 | |
Company issued Senior Notes | [1] | $ 0 | 499,000,000 |
2.20% Senior Notes due December 6, 2019 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 2.20% | ||
Debt instrument face amount | $ 300,000,000 | 0 | |
Company issued Senior Notes | [1] | $ 298,600,000 | 0 |
2.50% Senior Notes due March 15, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 2.50% | ||
Debt instrument face amount | $ 500,000,000 | 500,000,000 | |
Company issued Senior Notes | [1] | $ 497,800,000 | $ 496,600,000 |
3.50% Senior Notes due October 15, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 3.50% | 3.50% | |
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | |
Company issued Senior Notes | [1] | $ 775,600,000 | 782,600,000 |
3.00% Senior Notes due March 15, 2022 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 3.00% | ||
Debt instrument face amount | $ 400,000,000 | 400,000,000 | |
Company issued Senior Notes | [1] | $ 397,300,000 | 396,600,000 |
3.50% Senior Notes due March 15, 2025 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 3.50% | ||
Debt instrument face amount | $ 1,000,000,000 | 1,000,000,000 | |
Company issued Senior Notes | [1] | $ 994,400,000 | 993,600,000 |
3.38% Senior Notes due December 15, 2027 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 3.38% | ||
Debt instrument face amount | $ 500,000,000 | 0 | |
Company issued Senior Notes | [1] | $ 495,800,000 | 0 |
4.25% Senior Notes due March 15, 2035 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 4.25% | ||
Debt instrument face amount | $ 650,000,000 | 650,000,000 | |
Company issued Senior Notes | [1] | $ 643,100,000 | 642,600,000 |
4.38% Senior Notes due March 15, 2045 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 4.38% | ||
Debt instrument face amount | $ 600,000,000 | 600,000,000 | |
Company issued Senior Notes | [1] | 585,400,000 | 584,900,000 |
Term Loan Credit Agreement due March 23, 2020 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 0 | 550,000,000 | |
Term loan credit agreement carrying value | [1] | 0 | 548,600,000 |
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Long-term Line of Credit | $ 0 | $ 0 | |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. |
Debt and Financing Arrangemen54
Debt and Financing Arrangements (Details Textual) | 12 Months Ended | 37 Months Ended | ||||||
Apr. 30, 2018USD ($)Bank | Apr. 30, 2017USD ($) | Apr. 30, 2016USD ($) | Apr. 30, 2015USD ($) | Apr. 30, 2018USD ($)Bank | May 14, 2018USD ($) | Apr. 27, 2018USD ($) | Aug. 31, 2017USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 4,700,000,000 | $ 4,950,000,000 | $ 4,700,000,000 | |||||
Write off of Deferred Debt Issuance Cost | 1,700,000 | |||||||
Termination of Short-Term Term Loan Commitment Letter | $ 1,900,000,000 | |||||||
Repayment of long-term debt | $ 1,050,300,000 | 200,000,000 | $ 800,000,000 | |||||
Percentage of the principal amount thereof which company can prepay | 100.00% | 100.00% | ||||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | ||||||
Interest paid | 158,900,000 | 162,200,000 | $ 167,300,000 | |||||
Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 1,500,000,000 | |||||||
Debt instrument face amount | 0 | 0 | ||||||
Payments of Debt Issuance Costs | 800,000 | |||||||
Senior Notes [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | 800,000,000 | $ 800,000,000 | ||||||
Payments of Debt Issuance Costs | $ 6,100,000 | |||||||
1.75% Senior Notes due March 15, 2018 [Member] | ||||||||
Outstanding derivative contracts | ||||||||
Interest rate on notes | 1.75% | 1.75% | ||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 0 | 500,000,000 | $ 0 | |||||
Repayment of long-term debt | 500,000,000 | |||||||
Term Loan Credit Agreement due March 23, 2020 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 0 | $ 550,000,000 | 0 | |||||
Repayment of long-term debt | $ 1,800,000,000 | |||||||
3.50% Senior Notes due October 15, 2021 [Member] | ||||||||
Outstanding derivative contracts | ||||||||
Interest rate on notes | 3.50% | 3.50% | 3.50% | |||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | $ 750,000,000 | |||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Payments of Debt Issuance Costs | 4,100,000 | |||||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,500,000,000 | |||||
Number of banks | Bank | 11 | 11 | ||||||
Long-term Line of Credit | $ 0 | 0 | $ 0 | |||||
Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, borrowing capacity | 1,800,000,000 | 1,800,000,000 | $ 1,000,000,000 | |||||
Commercial paper, amount outstanding | $ 144,000,000 | $ 454,000,000 | $ 144,000,000 | |||||
Commercial paper weighted-average interest rate | 2.20% | 1.15% | 2.20% | |||||
Fair Value Hedging [Member] | ||||||||
Outstanding derivative contracts | ||||||||
Gain (Loss) on Contract Termination | $ (58,100,000) | |||||||
Treasury Lock [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 2,700,000 | |||||||
Ainsworth [Member] | Subsequent Event [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, amount outstanding | $ 400,000,000 | |||||||
Ainsworth [Member] | Subsequent Event [Member] | Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 1,500,000,000 | |||||||
Weighted average interest rate on long-term debt | 3.04% | |||||||
Payments of Debt Issuance Costs, Incurred to Date | $ 2,800,000 | |||||||
Ainsworth [Member] | Subsequent Event [Member] | Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper weighted-average interest rate | 2.27% |
Pensions and Other Postretire55
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Defined Benefit Pension Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | $ 5.2 | $ 12.7 | $ 17.8 |
Interest cost | 21.6 | 25.3 | 27.7 |
Expected return on plan assets | (28.8) | (29.3) | (32.9) |
Amortization of prior service cost (credit) | 0.9 | 1.1 | 0.7 |
Amortization of net actuarial loss (gain) | 11.5 | 13.8 | 10.9 |
Curtailment loss (gain) | 0 | 0 | (6.5) |
Settlement loss (gain) | 2.3 | (0.7) | 0 |
Net periodic benefit cost | 12.7 | 22.9 | 17.7 |
Other Postretirement Benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 2 | 2.3 | 2.3 |
Interest cost | 2.1 | 2.6 | 2.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (1.4) | (1.5) | (1.1) |
Amortization of net actuarial loss (gain) | (0.3) | (0.2) | (0.3) |
Curtailment loss (gain) | 0 | 0 | (0.3) |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost | $ 2.4 | $ 3.2 | $ 3.4 |
Pensions and Other Postretire56
Pensions and Other Postretirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Defined Benefit Pension Plans [Member] | |||
Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive loss before income taxes: | |||
Prior service credit (cost) arising during the year | $ 0 | $ 2.1 | $ (5.3) |
Net actuarial gain (loss) arising during the year | 3.5 | 1.5 | (43.3) |
Amortization of prior service cost (credit) | 0.9 | 1.1 | 0.7 |
Amortization of net actuarial loss (gain) | 11.5 | 13.8 | 10.9 |
Curtailment loss (gain) | 0 | 28.8 | (6.5) |
Settlement loss (gain) | 2.3 | (0.7) | 0 |
Foreign currency translation | (1.8) | 2.5 | 0.8 |
Net change for year | 16.4 | 49.1 | (42.7) |
Other Postretirement Benefits [Member] | |||
Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive loss before income taxes: | |||
Prior service credit (cost) arising during the year | (0.2) | 3 | 0 |
Net actuarial gain (loss) arising during the year | 5.5 | 2.3 | 0 |
Amortization of prior service cost (credit) | (1.4) | (1.5) | (1.1) |
Amortization of net actuarial loss (gain) | (0.3) | (0.2) | (0.3) |
Curtailment loss (gain) | 0 | 0.1 | (0.3) |
Settlement loss (gain) | 0 | 0 | 0 |
Foreign currency translation | (0.1) | 0 | 0 |
Net change for year | $ 3.5 | $ 3.7 | $ (1.7) |
Pensions and Other Postretire57
Pensions and Other Postretirement Benefits (Details 2) | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.95% | 3.85% | 4.06% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 4.20% | 3.85% | 4.06% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.38% | 3.85% | 4.06% |
Expected return on plan assets | 6.27% | 6.27% | 6.58% |
Rate of compensation increase | 3.78% | 3.96% | 4.06% |
Domestic Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.86% | 3.80% | 4.04% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 4.06% | 3.80% | 4.04% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.24% | 3.80% | 4.04% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.22% | 3.60% | 3.51% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 3.39% | 3.60% | 3.51% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 2.60% | 3.60% | 3.51% |
Expected return on plan assets | 5.00% | 5.25% | 5.65% |
Rate of compensation increase | 3.00% | 3.00% | 3.00% |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.19% | 3.50% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 3.70% | 3.50% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 2.58% | 3.50% | 3.50% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pensions and Other Postretire58
Pensions and Other Postretirement Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Change in plan assets: | |||
Company contributions | $ 39.6 | $ 28.7 | $ 8.6 |
Defined benefit pensions | (144.1) | (189.8) | |
Other postretirement benefits | (61.9) | (66.6) | |
Defined Benefit Pension Plans [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 677.3 | 745.9 | |
Service cost | 5.2 | 12.7 | 17.8 |
Interest cost | 21.6 | 25.3 | 27.7 |
Amendments | 0 | 0 | |
Actuarial loss (gain) | (10.8) | 6.7 | |
Benefits paid | 36 | 43.8 | |
Foreign currency translation adjustments | 5.8 | (7.8) | |
Curtailment | 0 | (30.9) | |
Settlement | (23.4) | (30.8) | |
Benefit obligation at end of year | 639.7 | 677.3 | 745.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 489.2 | 505.6 | |
Actual return on plan assets | 21.5 | 37.4 | |
Company contributions | 39.6 | 28.7 | |
Benefits paid | (36) | (43.8) | |
Settlement | (23.4) | (30.8) | |
Foreign currency translation adjustments | 6.1 | (7.9) | |
Fair value of plan assets at end of year | 497 | 489.2 | 505.6 |
Funded status of the plans | (142.7) | (188.1) | |
Defined benefit pensions | (144.1) | (189.8) | |
Other noncurrent assets | 9.5 | 5.7 | |
Accrued compensation | (8.1) | (4) | |
Other postretirement benefits | 0 | 0 | |
Net benefit liability | (142.7) | (188.1) | |
Other Postretirement Benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 70.7 | 75.9 | |
Service cost | 2 | 2.3 | 2.3 |
Interest cost | 2.1 | 2.6 | 2.8 |
Amendments | 0.2 | (3) | |
Actuarial loss (gain) | (5.5) | (2.3) | |
Benefits paid | 4.3 | 3.9 | |
Foreign currency translation adjustments | 0.7 | (0.8) | |
Curtailment | 0 | (0.1) | |
Settlement | 0 | 0 | |
Benefit obligation at end of year | 65.9 | 70.7 | 75.9 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 4.3 | 3.9 | |
Benefits paid | (4.3) | (3.9) | |
Settlement | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
Funded status of the plans | (65.9) | (70.7) | |
Defined benefit pensions | 0 | 0 | |
Other noncurrent assets | 0 | 0 | |
Accrued compensation | (4) | (4.1) | |
Other postretirement benefits | (61.9) | (66.6) | |
Net benefit liability | $ (65.9) | $ (70.7) |
Pensions and Other Postretire59
Pensions and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Defined Benefit Pension Plans [Member] | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | $ (150.9) | $ (166.4) |
Prior service credit (cost) | (4.7) | (5.6) |
Total recognized in accumulated other comprehensive income (loss) | (155.6) | (172) |
Other Postretirement Benefits [Member] | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | 13.6 | 8.5 |
Prior service credit (cost) | 9.1 | 10.7 |
Total recognized in accumulated other comprehensive income (loss) | 22.7 | $ 19.2 |
One-percentage point annual change in the assumed health care cost trend rate | ||
Effect on total service and interest cost components, increase | 0 | |
Effect on total service and interest cost components, decrease | 0.1 | |
Effect on benefit obligation, increase | 1 | |
Effect on benefit obligation, decrease | $ 1.1 | |
Domestic Plan [Member] | Defined Benefit Pension Plans [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 4.17% | 3.95% |
Rate of compensation increase | 3.59% | 4.15% |
Domestic Plan [Member] | Other Postretirement Benefits [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 4.13% | 3.86% |
Rate of compensation increase | 0.00% | 0.00% |
Foreign Plan [Member] | Defined Benefit Pension Plans [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 3.57% | 3.22% |
Rate of compensation increase | 3.00% | 3.00% |
Foreign Plan [Member] | Other Postretirement Benefits [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 3.55% | 3.16% |
Rate of compensation increase | 0.00% | 0.00% |
Pensions and Other Postretire60
Pensions and Other Postretirement Benefits (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Change in plan assets: | |||
Company contributions | $ 39.6 | $ 28.7 | $ 8.6 |
Pension Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 639.7 | 677.3 | 745.9 |
Fair value of plan assets at end of year | 497 | 489.2 | 505.6 |
Funded status of the plans | (142.7) | (188.1) | |
Components of net periodic benefit cost: | |||
Service cost | 5.2 | 12.7 | 17.8 |
Interest cost | 21.6 | 25.3 | 27.7 |
Expected return on plan assets | (28.8) | (29.3) | (32.9) |
Amortization of net actuarial loss (gain) | 11.5 | 13.8 | 10.9 |
Net periodic benefit cost (credit) | 12.7 | 22.9 | 17.7 |
Change in plan assets: | |||
Company contributions | 39.6 | 28.7 | |
Benefits paid | (36) | (43.8) | |
Actual return on plan assets | 21.5 | 37.4 | |
Foreign currency translation adjustments | 6.1 | (7.9) | |
Other Postretirement Benefits Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 65.9 | 70.7 | 75.9 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status of the plans | (65.9) | (70.7) | |
Components of net periodic benefit cost: | |||
Service cost | 2 | 2.3 | 2.3 |
Interest cost | 2.1 | 2.6 | 2.8 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | (0.3) | (0.2) | (0.3) |
Net periodic benefit cost (credit) | 2.4 | 3.2 | $ 3.4 |
Change in plan assets: | |||
Company contributions | 4.3 | 3.9 | |
Benefits paid | (4.3) | (3.9) | |
Actual return on plan assets | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
Foreign Plan [Member] | Pension Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 87.6 | 89.8 | |
Fair value of plan assets at end of year | 96.4 | 94.8 | |
Funded status of the plans | 8.8 | 5 | |
Components of net periodic benefit cost: | |||
Service cost | 0.2 | 0.3 | |
Interest cost | 2.4 | 3.2 | |
Expected return on plan assets | (5) | (4.7) | |
Amortization of net actuarial loss (gain) | 0.8 | 1.1 | |
Net periodic benefit cost (credit) | (1.6) | (0.1) | |
Change in plan assets: | |||
Company contributions | 0.9 | 3.1 | |
Benefits paid | (6.8) | (6.6) | |
Actual return on plan assets | 1.5 | 10.2 | |
Foreign currency translation adjustments | 6 | (7.9) | |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 7.3 | 9.4 | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status of the plans | (7.3) | (9.4) | |
Components of net periodic benefit cost: | |||
Service cost | 0 | 0 | |
Interest cost | 0.3 | 0.3 | |
Expected return on plan assets | 0 | 0 | |
Amortization of net actuarial loss (gain) | 0 | 0 | |
Net periodic benefit cost (credit) | 0.3 | 0.3 | |
Change in plan assets: | |||
Company contributions | 0.5 | 0.5 | |
Benefits paid | (0.5) | (0.5) | |
Actual return on plan assets | 0 | 0 | |
Foreign currency translation adjustments | $ 0 | $ 0 |
Pensions and Other Postretire61
Pensions and Other Postretirement Benefits (Details 6) - Defined Benefit Pension Plans [Member] - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 |
Additional information related to the Company's defined benefit pension plans | ||
Accumulated benefit obligation for all pension plans | $ 627.9 | $ 659.6 |
Plans with an accumulated benefit obligation in excess of plan assets: | ||
Accumulated benefit obligation | 541.3 | 570.6 |
Fair value of plan assets | 400.6 | 394.4 |
Plans with a projected benefit obligation in excess of plan assets: | ||
Projected benefit obligation | 552.9 | 588.2 |
Fair value of plan assets | $ 400.6 | $ 394.4 |
Pensions and Other Postretire62
Pensions and Other Postretirement Benefits (Details 7) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | $ 3.2 | $ 2.4 | $ 3.2 | |
Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 497 | 489.2 | $ 505.6 | |
Total financial assets measured at net asset value | [1] | 8.9 | 9.8 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 488.1 | 479.4 | ||
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 456.5 | 460.1 | ||
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 28.4 | 16.9 | ||
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 3.2 | 2.4 | ||
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 3.7 | 2.7 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 3.7 | 2.7 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Cash and cash equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | U.S. Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 96.7 | 130.8 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | U.S. Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 94.8 | 128.9 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | U.S. Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 1.9 | 1.9 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | U.S. Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | International Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 82.9 | 91.9 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | International Equity Securities [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 73.2 | 81.4 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | International Equity Securities [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 9.7 | 10.5 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | International Equity Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 231.8 | 168.5 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Bonds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 231.8 | 168.5 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Bonds [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Bonds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 53 | 71.9 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Fixed income [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 53 | 71.9 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Fixed income [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Fixed income [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 0 | 0 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Other Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 20 | 13.6 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Other Investments [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 0 | 6.7 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Other Investments [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 16.8 | 4.5 | |
Estimated Fair Value [Member] | Defined Benefit Pension Plans [Member] | Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | $ 3.2 | $ 2.4 | |
[1] | This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds. The fair value estimate of the private equity fund is based on the underlying funds’ net asset values further as a practical expedient equivalent to the Company’s defined benefit plan’s ownership interest in partners’ capital, whereby a proportionate share of the net assets is attributed and further corroborated by our review. The private equity fund is non-redeemable, and the return of principal is based on the liquidation of the underlying assets. In accordance with ASU 2015-07, the private equity fund is removed from the total financial assets measured at fair value and disclosed separately. | |||
[2] | This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. | |||
[3] | This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. | |||
[4] | This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. The Level 2 asset is comprised of a pooled fund that consists of equity securities traded on active exchanges. | |||
[5] | This category is primarily comprised of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years. In 2018, this category is further comprised of various U.S. Treasury Separate Trading of Registered Interest and Principal (“STRIP”) holdings, with wide-ranging maturity dates. The Level 1 assets are valued using quoted market prices for identical securities in active markets. | |||
[6] | This category is comprised of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. | |||
[7] | This category is comprised of a real estate fund whereby the underlying investments are contained in the Canadian market and a private limited investment partnership in 2017, and in 2018, this category also included a common collective trust fund investing in direct commercial property funds. In 2017, the category included a dynamic asset allocation mutual fund, which was comprised of U.S. and global equities and fixed-income securities inclusive of derivatives within the asset mix. The dynamic asset allocation mutual fund was classified as a Level 1 asset, whereby the assets are valued using quoted market prices for identical securities in active markets. The real estate fund and the collective trust fund investing in direct commercial property are classified as a Level 2 asset, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. The private investment limited partnership is classified as a Level 3 asset. The investments in the partnership are valued at estimated fair value based on audited financial statements received from the general partner. The private investment limited partnership cannot be redeemed, and the return of principal is based on the liquidation of the underlying assets. |
Pensions and Other Postretire63
Pensions and Other Postretirement Benefits (Details 8) - Significant Unobservable Inputs (Level 3) [Member] - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2018 | Apr. 30, 2017 | |
Change in plan assets: | ||
Fair value of plan assets at beginning of year | $ 2.4 | $ 3.2 |
Actual return on plan assets still held at reporting date | 0.8 | (0.8) |
Fair value of plan assets at end of year | $ 3.2 | $ 2.4 |
Pensions and Other Postretire64
Pensions and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |||
Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($)planshares | Apr. 30, 2017USD ($) | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 20 | |||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Eligibility condition for covered employees to avail the benefits of unfunded, defined postretirement plans that provide health care and life insurance benefits | when they reach age 55 and have attained 10 years of credited service | |||
Expected amount to be recognized during 2019 of amortization of net actuarial losses in net periodic benefit cost | $ 7.7 | |||
Expected amount to be recognized during 2019 in prior service cost as net periodic benefit cost | $ 0.4 | |||
Annual change in the assumed health care cost | one percentage point | |||
High Quality Corporate Bonds with Duration Range | 10 to 13 years | |||
Company's common shares included in equity securities | shares | 317,552 | |||
Market value of company's common shares included in equity securities | $ 36.2 | |||
Dividends paid on company's common shares included in equity securities | 1 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2019 | 54.8 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2020 | 48 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2021 | 47.5 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2022 | 47.4 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2023 | 51.7 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2024 through 2028 | $ 238.8 | |||
Number of multiemployer pension plans | plan | 1 | |||
Multiemployer plan actual funded status | 54.70% | |||
PlanAmendment,Change InAccumulatedOther ComprehensiveLoss | $ (25.2) | |||
Decrease in expected service and interest cost next fiscal year due to change in discount rate methodology | $ 4.3 | |||
Big Heart [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Multiemployer plan contributions | $ 2 | $ 1.9 | ||
Big Heart [Member] | Scenario, Forecast [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Multiemployer plan contributions | $ 2.2 | |||
Fixed - Income Securities [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Approximate percentage of assets to be invested in company's current investment policy | 50.00% | |||
Other Postretirement Benefits Plan [Member] | Domestic Plan [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Assumed health care trend rate for next fiscal year | 6.80% | |||
Assumed health care trend rate for participants under age 65 | 5.00% | |||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2,026 | |||
Other Postretirement Benefits Plan [Member] | Foreign Plan [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Assumed health care trend rate for next fiscal year | 4.50% | |||
Assumed health care trend rate for participants under age 65 | 4.50% | |||
Defined Benefit Pension Plans [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Defined benefit plan actual rate of return on plan assets | 5.40% | 8.30% | ||
Expected amount to be contributed by the Company to the defined benefit pension plans in 2019 | $ 20 |
Derivative Financial Instrume65
Derivative Financial Instruments (Details) - Not designated as hedging instruments [Member] - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 17 | $ 8.4 |
Other Current Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 14.8 | 5.2 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 2.2 | 3.2 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 7.5 | 21.3 |
Other Current Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 6.8 | 21.2 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.7 | 0.1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.4 | 0 |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.4 | 0 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.2 | 0 |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.2 | 0 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume66
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | |||
Total gains (losses) recognized in costs of products sold | $ 0.6 | $ (35.4) | $ (29.6) |
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 costs of products sold | 6.5 | (45.2) | (31.6) |
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 costs of products sold | $ (5.9) | $ 9.8 | $ 2 |
Derivative Financial Instrume67
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ 0.6 | $ (35.4) | $ (29.6) |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (36.7) | (8.2) | (41.6) |
Unallocated derivative gains (losses) | $ 37.3 | $ (27.2) | $ 12 |
Derivative Financial Instrume68
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 |
Commodity contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross contract notional amount | $ 658 | $ 704.9 |
Foreign currency exchange contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross contract notional amount | $ 122.1 | $ 195.4 |
Derivative Financial Instrume69
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | Jul. 31, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of deferred gain on early termination agreement | $ 7.8 | $ 7.6 | $ 7.4 | ||
Cash margin accounts related to derivative instruments recognized | 10.9 | 41.8 | |||
Interest Income (Expense), Net | (174.1) | (163.1) | (171.1) | ||
Cumulative net mark to market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ 1.7 | (35.6) | |||
Fair Value Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gain (loss) on early termination agreement | $ 58.1 | ||||
Foreign currency exchange contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative instrument maturity | 1 year | ||||
Treasury Lock [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative, Notional Amount | $ 300 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 2.7 | ||||
Interest rate contract [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Deferred pre-tax net gain (loss) included in accumulated other comprehensive loss | (3.8) | (7) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 0.9 | $ 2.6 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (0.4) | ||||
Gain (loss) on early termination agreement | $ 4.6 | ||||
Total Through Q4 2018 [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of deferred gain on early termination agreement | $ 25 | ||||
Commodity contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Derivative instrument maturity | 1 year | ||||
Fiscal Year Two Thousand Nineteen [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of deferred gain on early termination agreement | $ 8 | ||||
Fiscal Year Two Thousand Twenty [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of deferred gain on early termination agreement | 8.1 | ||||
Fiscal Year Two Thousand Twenty One [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Amortization of deferred gain on early termination agreement | 8.4 | ||||
Fiscal Year Two Thousand Twenty Two [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
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% | |||
Interest Expense [Member] | Interest rate contract [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | $ (0.5) | $ (0.6) | (0.6) | ||
Interest Expense [Member] | Interest rate contract [Member] | Fair Value Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | $ (0.6) | $ (0.6) |
Other Financial Instruments a70
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Long-term debt | [1] | $ (4,688) | $ (4,944.5) |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 45.8 | 47.3 | |
Derivative financial instruments – net | 9.7 | (12.9) | |
Long-term debt | (4,688) | (4,944.5) | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 45.8 | 47.3 | |
Derivative financial instruments – net | 9.7 | (12.9) | |
Long-term debt | $ (4,579.8) | $ (5,023.8) | |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs. |
Other Financial Instruments a71
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (4,579.8) | $ (5,023.8) |
Total financial instruments measured at fair value | (4,524.3) | (4,989.4) | |
Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.3 | 1.1 |
Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 36.1 | 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 | |||
Derivatives | [3] | 8.2 | (16) |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 1.5 | 3.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (4,579.8) | (4,473.2) |
Total financial instruments measured at fair value | (4,562.8) | (4,476.1) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.3 | 1.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (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 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 7.2 | (15.8) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 0.1 | 0.3 |
Significant Observable Inputs (Level 2) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | 0 | (550.6) |
Total financial instruments measured at fair value | 38.5 | (513.3) | |
Significant Observable Inputs (Level 2) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 36.1 | 34.7 |
Significant Observable Inputs (Level 2) [Member] | Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 1 | (0.2) |
Significant Observable Inputs (Level 2) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 1.4 | 2.8 |
Significant Unobservable 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 | |
Significant Unobservable Inputs (Level 3) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | $ 0 | $ 0 |
[1] | Long-term debt is comprised of public Senior Notes classified as Level 1. In 2017, the previous term loan that was due March 23, 2020 is 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 was based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. | ||
[2] | Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of April 30, 2018, our municipal obligations are scheduled to mature as follows: $1.4 in 2019, $1.7 in 2020, $4.9 in 2021, $1.0 in 2022, and the remaining $27.1 in 2023 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 10: Derivative Financial Instruments. |
Other Financial Instruments a72
Other Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | ||
Fair Value Disclosures [Abstract] | ||||
Company's Municipal bond mature in 2019 | $ 1.4 | |||
Company's Municipal bond mature in 2020 | 1.7 | |||
Company's Municipal bond mature in 2021 | 4.9 | |||
Company's Municipal bond mature in 2022 | 1 | |||
Company's Municipal bond mature in 2023 and beyond | 27.1 | |||
Impairment charges | 176.9 | |||
Other intangible assets impairment charges | 31.9 | $ 133.2 | $ 0 | |
Goodwill impairment charge | $ 145 | [1] | $ 0 | $ 0 |
[1] | There have been no goodwill impairment charges recognized in prior periods. |
Share-Based Payments (Details)
Share-Based Payments (Details) | 12 Months Ended |
Apr. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Expected volatility (%) | 20.70% |
Dividend yield (%) | 2.30% |
Risk-free interest rate (%) | 1.90% |
Expected life of stock option (years) | 5 years 10 months 24 days |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) | 12 Months Ended |
Apr. 30, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at May 1, 2017, number of options | shares | 915,000 |
Exercised, number of options | shares | 35,002 |
Cancelled, number of options | shares | 56,666 |
Outstanding at April 30, 2018, number of options | shares | 823,332 |
Exercisable at April 30, 2018, number of options | shares | 270,006 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at May 1, 2017, weighted average exercise price (in dollars per share) | $ / shares | $ 113.07 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | 111.86 |
Cancelled, weighted average exercise price (in dollars per share) | $ / shares | 111.86 |
Outstanding at April 30, 2018, weighted average exercise price (in dollars per share) | $ / shares | 113.20 |
Exercisable at April 30, 2018, weighted average exercise price (in dollars per share) | $ / shares | $ 113.22 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - $ / shares | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Restricted Shares and Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Restricted Shares and Deferred Stock Units and Performance Units | 573,405 | ||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 136,127 | 180,997 | 97,922 |
Converted Restricted Shares and Deferred Stock Units and Performance Units | 73,701 | ||
Vested Restricted Shares and Deferred Stock Units and Performance Units | (161,581) | ||
Forfeited Restricted Shares and Deferred Stock Units and Performance Units | (79,294) | ||
Ending Balance, Restricted Shares and Deferred Stock Units and Performance Units | 542,358 | 573,405 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 115.88 | ||
Granted Weighted Average Grant Date Fair Value (in dollars per share) | 126.80 | $ 133.92 | $ 113.57 |
Converted Weighted Average Grant Date Fair Value (in dollars per share) | 126.80 | ||
Vested Weighted Average Grant Date Fair Value (in dollars per share) | 106.04 | ||
Forfeited Weighted Average Grant Date Fair Value (in dollars per share) | 120.27 | ||
Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 122.39 | $ 115.88 | |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Restricted Shares and Deferred Stock Units and Performance Units | 73,701 | ||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 84,051 | 73,701 | 121,936 |
Converted Restricted Shares and Deferred Stock Units and Performance Units | (73,701) | ||
Vested Restricted Shares and Deferred Stock Units and Performance Units | 0 | ||
Forfeited Restricted Shares and Deferred Stock Units and Performance Units | 0 | ||
Ending Balance, Restricted Shares and Deferred Stock Units and Performance Units | 84,051 | 73,701 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 126.80 | ||
Granted Weighted Average Grant Date Fair Value (in dollars per share) | 103.86 | ||
Converted Weighted Average Grant Date Fair Value (in dollars per share) | 126.80 | ||
Vested Weighted Average Grant Date Fair Value (in dollars per share) | 0 | ||
Forfeited Weighted Average Grant Date Fair Value (in dollars per share) | 0 | ||
Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 103.86 | $ 126.80 |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) - $ / shares | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Restricted Shares And Deferred Stock Units [Member] | |||
Weighted-average grant date fair values of the equity awards | |||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 136,127 | 180,997 | 97,922 |
Granted Weighted Average Grant Date Fair Value (in dollars per share) | $ 126.80 | $ 133.92 | $ 113.57 |
Performance Units [Member] | |||
Weighted-average grant date fair values of the equity awards | |||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 84,051 | 73,701 | 121,936 |
Granted Weighted Average Grant Date Fair Value (in dollars per share) | $ 103.86 | ||
Granted Weighted Average Conversion Date Fair Value (in dollars per share) | $ 103.86 | $ 126.80 | $ 132.46 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 5,174,159 | ||
Forfeiture period for share-based payments | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 35,002 | ||
Closing market price (in dollars per share) | $ 114.08 | ||
Share-based compensation expense | $ 15,400,000 | $ 22,000,000 | $ 34,600,000 |
Related income tax benefit | $ (4,600,000) | (7,200,000) | (10,200,000) |
Weighted-average period of recognition | 3 years 4 months 24 days | ||
Equity instruments other than options vested in period weighted average grant date fair value total value | $ 17,100,000 | 24,600,000 | 18,700,000 |
Fair value of equity awards other than stock options vesting | $ 20,700,000 | $ 32,700,000 | $ 24,400,000 |
Restricted stock, vesting period (in Years) | 1 year | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period gross | 0 | 0 | 370,000 |
Forfeiture period for share-based payments | 10 years | ||
Aggregate intrinsic value - outstanding | $ 1,600,000 | ||
Aggregate intrinsic value - exercisable | $ 500,000 | ||
Average remaining contractual term - outstanding | 7 years | ||
Average remaining contractual term - exercisable | 7 years | ||
Weighted average fair value of stock options granted | $ 18.67 | ||
Intrinsic value of options exercised | $ 600,000 | $ 0 | $ 100,000 |
Share-based compensation expense | 400,000 | (1,000,000) | 8,100,000 |
Related income tax benefit | (100,000) | 400,000 | (3,000,000) |
Unrecognized compensation expense | 0 | ||
Cash received from option exercises | $ 3,900,000 | $ 0 | $ 100,000 |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for share-based payments | 1 year | ||
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for share-based payments | 3 years | ||
Restricted Shares And Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock, vesting period (in Years) | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Income (loss) before income taxes | |||
Domestic | $ 828.6 | $ 836.8 | $ 959.3 |
Foreign | 32.4 | 41.6 | 18.6 |
Income Before Income Taxes | $ 861 | $ 878.4 | $ 977.9 |
Income Taxes (Details 1)
Income Taxes (Details 1) $ in Millions | 12 Months Ended |
Apr. 30, 2018USD ($) | |
Income Tax Disclosure [Abstract] | |
Net impact on U.S. deferred tax assets and liabilities | $ (791.9) |
Transition tax | 26.1 |
Net impact of adjustments | $ (765.8) |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Current: | |||
Federal | $ 277.9 | $ 325.1 | $ 342.5 |
Foreign | 7.9 | 11 | 4.8 |
State and local | 40 | 29.4 | 37.1 |
Deferred: | |||
Federal | (802.3) | (78.3) | (32.1) |
Foreign | 0.5 | 1.6 | 1.3 |
State and local | (1.6) | (2.7) | (64.4) |
Total income tax expense (benefit) | $ (477.6) | $ 286.1 | $ 289.2 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
(Percent of Pre-tax Income) | |||||
Statutory federal income tax rate | 21.00% | 35.00% | 30.40% | 35.00% | 35.00% |
Tax reform – net impact on U.S. deferred tax assets and liabilities (provisional) | (92.00%) | 0.00% | 0.00% | ||
Tax reform – transition tax (provisional) | 3.00% | 0.00% | 0.00% | ||
Goodwill impairment | 5.50% | 0.00% | 0.00% | ||
State and local income taxes | 1.90% | 2.10% | 2.50% | ||
Domestic manufacturing deduction | (3.00%) | (3.70%) | (3.50%) | ||
Deferred tax benefit from integration | 0.00% | 0.00% | (5.20%) | ||
Other items – net | (1.30%) | (0.80%) | 0.80% | ||
Effective income tax rate | (55.50%) | 32.60% | 29.60% | ||
Income taxes paid | $ 336.8 | $ 367.2 | $ 290.5 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | Apr. 30, 2018 | Apr. 30, 2017 |
Deferred tax liabilities: | ||
Intangible assets | $ 1,393.6 | $ 2,248 |
Property, plant, and equipment | 98.5 | 129.8 |
Other | 14.2 | 16.5 |
Total deferred tax liabilities | 1,506.3 | 2,394.3 |
Deferred tax assets: | ||
Post-employment and other employee benefits | 75.5 | 146.3 |
Tax credit and loss carryforwards | 0.2 | 1.8 |
Intangible assets | 18.8 | 25.4 |
Inventory | 5.9 | 10.5 |
Property, plant, and equipment | 6.4 | 3.1 |
Other | 25.2 | 43.8 |
Total deferred tax assets | 132 | 230.9 |
Valuation allowance | (2.9) | (3.6) |
Total deferred tax assets, less allowance | 129.1 | 227.3 |
Net deferred tax liability | $ 1,377.2 | $ 2,167 |
Income Taxes (Details 5)
Income Taxes (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | |
Reconciliation of unrecognized tax benefits | |||
Balance at May 1, | $ 40.4 | $ 46.3 | $ 45 |
Increases: | |||
Current year tax positions | 1.1 | 0.7 | 3.3 |
Prior year tax positions | 0.5 | 1.2 | 0.2 |
Acquired businesses | 0 | 0 | 3.3 |
Decreases: | |||
Prior year tax positions | 0 | 0.9 | 0.9 |
Settlement with tax authorities | 3 | 1.1 | 2.5 |
Expiration of statute of limitations periods | 6.7 | 5.8 | 2.1 |
Balance at April 30, | $ 32.3 | $ 40.4 | $ 46.3 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 4 Months Ended | 8 Months Ended | 12 Months Ended | |||||
Apr. 30, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | ||
Tax Credit Carryforward [Line Items] | ||||||||
Net impact of adjustments | $ (765.8) | |||||||
Net impact on U.S. deferred tax assets and liabilities | (791.9) | |||||||
Transition tax | 26.1 | |||||||
Reclassification of stranded tax effects | [1] | $ 0 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 30.40% | 35.00% | 35.00% | |||
Effective Income Tax Rate Reconciliation, Percent | (55.50%) | 32.60% | 29.60% | |||||
Deferred Tax Benefit, Non Cash Integration | $ 50.5 | |||||||
Deferred tax liabilities, noncurrent | $ 1,377.2 | $ 1,377.2 | $ 2,167 | |||||
Valuation allowance on operating loss carryforward | (0.7) | |||||||
Undistributed earnings of foreign subsidiaries on which deferred income taxes not provided | 226 | 226 | ||||||
Company's unrecognized tax benefits | 32.3 | 32.3 | 40.4 | 46.3 | $ 45 | |||
Unrecognized tax benefits that would affect the effective tax rate | 21.5 | 21.5 | 23.1 | 32.6 | ||||
Tax-related net interest and penalties | 4 | 4 | 4.1 | 3.8 | ||||
Interest charged to earnings | $ 0.1 | $ 0.3 | $ 0.6 | |||||
Time period over which it is reasonably possible that the Company could decrease its unrecognized tax benefits | 12 months | |||||||
Amount unrecognized tax benefit could decrease in next 12 months | $ 9.5 | $ 9.5 | ||||||
Retained Earnings [Member] | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Reclassification of stranded tax effects | [1] | 15 | ||||||
AOCI Attributable to Parent [Member] | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Reclassification of stranded tax effects | [1],[2] | $ (15) | ||||||
Scenario, Forecast [Member] | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||||||
[1] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Recently Issued Accounting Standards in Note 1: Accounting Policies, and Note 13: Income Taxes. | |||||||
[2] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Note 13: Income Taxes. |
Accumulated Other Comprehensi85
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2016 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 6,850.2 | $ 7,008.5 | $ 7,086.9 | |
Reclassification of stranded tax effects | [1] | 0 | ||
Balance | 7,891.1 | 6,850.2 | 7,008.5 | |
Interest rate contract [Member] | Fair Value Hedging [Member] | Interest Expense [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | (0.6) | (0.6) | ||
Interest rate contract [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | (0.5) | (0.6) | (0.6) | |
Foreign Currency Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (43) | (13.1) | (2.3) | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | 26.6 | (29.9) | (10.8) | |
Income tax benefit (expense) | 0 | 0 | 0 | |
Reclassification of stranded tax effects | [2] | 0 | ||
Balance | (16.4) | (43) | (13.1) | |
Unrealized (Loss) Gain on Cash Flow Hedging Derivatives [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [3] | (4.4) | (4.8) | (5.2) |
Reclassification adjustments | [3] | 0.5 | 0.6 | 0.6 |
Current period credit (charge) | [3] | 2.7 | 0 | 0 |
Income tax benefit (expense) | [3] | (1.2) | (0.2) | (0.2) |
Reclassification of stranded tax effects | [2],[3] | (0.5) | ||
Balance | [3] | (2.9) | (4.4) | (4.8) |
Pension and Other Postretirement Liabilities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [4] | (100) | (134.1) | (105.6) |
Reclassification adjustments | [4] | 10.7 | 13.2 | 10.2 |
Current period credit (charge) | [4] | 9.2 | 39.6 | (54.6) |
Income tax benefit (expense) | [4] | (5.6) | (18.7) | 15.9 |
Reclassification of stranded tax effects | [2],[4] | (15.3) | ||
Balance | [4] | (101) | (100) | (134.1) |
Unrealized Gain On Available-for-Sale Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 4 | 3.6 | 3.3 | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | (1.7) | 0.6 | 0.4 | |
Income tax benefit (expense) | 0.5 | (0.2) | (0.1) | |
Reclassification of stranded tax effects | [2] | 0.8 | ||
Balance | 3.6 | 4 | 3.6 | |
AOCI Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (143.4) | (148.4) | (109.8) | |
Reclassification adjustments | 11.2 | 13.8 | 10.8 | |
Current period credit (charge) | 36.8 | 10.3 | (65) | |
Income tax benefit (expense) | (6.3) | (19.1) | 15.6 | |
Reclassification of stranded tax effects | [1],[2] | (15) | ||
Balance | $ (116.7) | $ (143.4) | $ (148.4) | |
[1] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Recently Issued Accounting Standards in Note 1: Accounting Policies, and Note 13: Income Taxes. | |||
[2] | During the fourth quarter of 2018, we elected to early adopt ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220) Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income, which allowed us to reclassify the stranded income tax effects resulting from the Act from accumulated other comprehensive income (loss) to retained earnings. For additional information, see Note 13: Income Taxes. | |||
[3] | The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The 2018 credit relates to the gain on the interest rate contract terminated in December 2017. For additional information, see Note 10: Derivative Financial Instruments. | |||
[4] | Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to SD&A. |
Guarantor and Non-Guarantor F86
Guarantor and Non-Guarantor Financial Information (Details Textual) $ in Billions | Apr. 30, 2018USD ($) |
Debt Instrument [Line Items] | |
Line of Credit Facility, Maximum Borrowing Capacity | $ 1.8 |
Common Shares (Details)
Common Shares (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Apr. 30, 2018votes_per_shareright$ / sharesshares | Apr. 30, 2017USD ($)shares | Apr. 30, 2016shares | Feb. 22, 2017shares | |
Equity, Class of Treasury Stock [Line Items] | ||||
Number of votes each holder of a common share outstanding is entitled | votes_per_share | 1 | |||
Number of votes per share | votes_per_share | 10 | |||
Number of votes per share after change in beneficial ownership | votes_per_share | 1 | |||
Number of years required to pass after change in beneficial ownership | 4 years | |||
Number of share purchase rights | right | 1 | |||
Minimum percentage of outstanding common shares held by persons or group (or more) | 10.00% | |||
Number of shares shareholder can purchase at discounted price | 1 | |||
Number of common shares issued for each right as part of exchange option | 1 | |||
Value to redeem per right | $ / shares | $ 0.001 | |||
Shares repurchased during period, shares | 0 | 0 | ||
Shares remaining for repurchase | 3,600,000 | |||
10b5-1 Trading Plan [Member] | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, number of shares authorized | 3,000,000 | |||
Shares repurchased during period, shares | 3,000,000 | |||
Stock repurchased during period | $ | $ 418.1 |