Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Jun. 10, 2019 | Oct. 31, 2018 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | J M SMUCKER Co | ||
Entity Central Index Key | 0000091419 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2019 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
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 Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Common Stock, Shares Outstanding | 113,742,653 | ||
Entity Public Float | $ 11,679,828,981 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) $ in Millions | 12 Months Ended | |||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||||
Income Statement [Abstract] | ||||||
Net sales | $ 7,838 | $ 7,357.1 | $ 7,392.3 | |||
Cost of products sold | 4,922.3 | 4,521 | 4,557 | |||
Gross Profit | 2,915.7 | 2,836.1 | 2,835.3 | |||
Selling, distribution, and administrative expenses | 1,508.6 | 1,362.9 | 1,379.6 | |||
Amortization | 240.3 | 206.8 | 207.3 | |||
Goodwill impairment charges | 97.9 | [1] | 145 | [1] | 0 | |
Other intangible assets impairment charges | 107.2 | 31.9 | 133.2 | |||
Other special project costs | [2],[3] | 64.1 | 45.4 | 76.9 | ||
Other operating expense (income) – net | (31) | 0.1 | (4.3) | |||
Operating Income | 928.6 | 1,044 | 1,042.6 | |||
Interest expense – net | (207.9) | (174.1) | (163.1) | |||
Other income (expense) – net | (19.1) | (8.9) | (1.1) | |||
Income Before Income Taxes | 701.6 | 861 | 878.4 | |||
Income tax expense (benefit) | 187.2 | (477.6) | 286.1 | |||
Net Income | $ 514.4 | $ 1,338.6 | $ 592.3 | |||
Earnings per common share: | ||||||
Net Income (in dollars per share) | $ 4.52 | $ 11.79 | $ 5.11 | |||
Net Income - Assuming Dilution (in dollars per share) | $ 4.52 | $ 11.78 | $ 5.10 | |||
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these 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, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 514.4 | $ 1,338.6 | $ 592.3 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (19.1) | 26.6 | (29.9) |
Cash flow hedging derivative activity, net of tax | (37.5) | 2 | 0.4 |
Pension and other postretirement benefit plans activity, net of tax | (9) | 14.3 | 34.1 |
Available-for-sale securities activity, net of tax | 0.5 | (1.2) | 0.4 |
Total Other Comprehensive Income (Loss) | (65.1) | 41.7 | 5 |
Comprehensive Income | $ 449.3 | $ 1,380.3 | $ 597.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 | |
Current Assets | |||
Cash and cash equivalents | $ 101.3 | $ 192.6 | |
Trade receivables, less allowance for doubtful accounts | 503.8 | 385.6 | |
Inventories: | |||
Finished products | 590.8 | 542.1 | |
Raw materials | 319.5 | 312.3 | |
Total Inventory | 910.3 | 854.4 | |
Other current assets | 109.8 | 122.4 | |
Total Current Assets | 1,625.2 | 1,555 | |
Property, Plant, and Equipment | |||
Land and land improvements | 122.1 | 120.1 | |
Buildings and fixtures | 903.2 | 812.6 | |
Machinery and equipment | 2,185 | 2,111.5 | |
Construction in progress | 321.8 | 212.1 | |
Gross Property, Plant, and Equipment | 3,532.1 | 3,256.3 | |
Accumulated depreciation | (1,619.7) | (1,527.2) | |
Total Property, Plant, and Equipment | 1,912.4 | 1,729.1 | |
Other Noncurrent Assets | |||
Goodwill | 6,310.9 | 5,942.2 | |
Other intangible assets – net | 6,718.8 | 5,916.5 | |
Other noncurrent assets | 144 | 158.4 | |
Total Other Noncurrent Assets | 13,173.7 | 12,017.1 | |
Total Assets | 16,711.3 | 15,301.2 | |
Current Liabilities | |||
Accounts payable | 591 | 512.1 | |
Accrued compensation | 85 | 79.8 | |
Accrued trade marketing and merchandising | 142.7 | 101.6 | |
Dividends payable | 96.7 | 88.6 | |
Current portion of long-term debt | [1] | 798.5 | 0 |
Short-term borrowings | 426 | 144 | |
Other current liabilities | 201.6 | 107.7 | |
Total Current Liabilities | 2,341.5 | 1,033.8 | |
Noncurrent Liabilities | |||
Long-term debt, less current portion | [1] | 4,686.3 | 4,688 |
Defined benefit pensions | 139.1 | 144.1 | |
Other postretirement benefits | 65 | 61.9 | |
Deferred income taxes | 1,398.6 | 1,377.2 | |
Other noncurrent liabilities | 110.3 | 105.1 | |
Total Noncurrent Liabilities | 6,399.3 | 6,376.3 | |
Total Liabilities | 8,740.8 | 7,410.1 | |
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 – 113,742,296 at April 30, 2019, and 113,572,840 at April 30, 2018 (net of 32,755,434 and 32,924,890 treasury shares, respectively), at stated value | 28.9 | 28.9 | |
Additional capital | 5,755.8 | 5,739.7 | |
Retained income | 2,367.6 | 2,239.2 | |
Accumulated other comprehensive income (loss) | (181.8) | (116.7) | |
Total Shareholders’ Equity | 7,970.5 | 7,891.1 | |
Total Liabilities and Shareholders’ Equity | $ 16,711.3 | $ 15,301.2 | |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Apr. 30, 2019 | Apr. 30, 2018 |
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) | 113,742,296 | 113,572,840 |
Treasury shares, shares outstanding (in shares) | 32,755,434 | 32,924,890 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |||
Operating Activities | |||||
Net income | $ 514.4 | $ 1,338.6 | $ 592.3 | ||
Adjustments to reconcile net income to net cash provided by (used for) operations: | |||||
Depreciation | 206 | 206.3 | 211.7 | ||
Amortization | 240.3 | 206.8 | 207.3 | ||
Goodwill impairment charges | 97.9 | [1] | 145 | [1] | 0 |
Other intangible assets impairment charges | 107.2 | 31.9 | 133.2 | ||
Share-based compensation expense | 20.7 | 15.4 | 22 | ||
Gain on divestiture | (27.7) | 0 | 0 | ||
Deferred income tax expense (benefit) | (93.5) | (803.4) | (79.4) | ||
Loss on disposal of assets - net | 4.5 | 6.6 | 4.4 | ||
Other noncash adjustments – net | 1.2 | 3.7 | 0.4 | ||
Defined benefit pension contributions | (29.3) | (39.6) | (28.7) | ||
Changes in assets and liabilities, net of effect from acquisition and divestiture: | |||||
Trade receivables | (53) | 54.7 | 8.9 | ||
Inventories | (5.3) | 54 | (10.4) | ||
Other current assets | 13.3 | (5.3) | 8.9 | ||
Accounts payable | 43.7 | 19 | 2.1 | ||
Accrued liabilities | 66.7 | 20.5 | (39.8) | ||
Income and other taxes | 51.8 | (28.7) | 7.9 | ||
Other – net | (17.7) | (7.5) | 18.2 | ||
Net Cash Provided by (Used for) Operating Activities | 1,141.2 | 1,218 | 1,059 | ||
Investing Activities | |||||
Business acquired, net of cash acquired | (1,903) | 0 | 0 | ||
Additions to property, plant, and equipment | (359.8) | (321.9) | (192.4) | ||
Proceeds from divestiture | 369.5 | 0 | 0 | ||
Proceeds from sale of investment | 0 | 0 | 40.6 | ||
Proceeds from disposal of property, plant, and equipment | 1.1 | 13.4 | 0.5 | ||
Other – net | (32) | 30.9 | (38.4) | ||
Net Cash Provided by (Used for) Investing Activities | (1,924.2) | (277.6) | (189.7) | ||
Financing Activities | |||||
Short-term borrowings (repayments) – net | 282 | (310) | 170 | ||
Proceeds from long-term debt | 1,500 | 799.6 | 0 | ||
Repayments of long-term debt | (700) | (1,050.3) | (200) | ||
Quarterly dividends paid | (377.9) | (350.3) | (339.3) | ||
Purchase of treasury shares | (5.4) | (7) | (437.6) | ||
Other – net | 0.3 | (4) | 0.8 | ||
Net Cash Provided by (Used for) Financing Activities | 699 | (922) | (806.1) | ||
Effect of exchange rate changes on cash | (7.3) | 7.4 | (6.2) | ||
Net increase (decrease) in cash and cash equivalents | (91.3) | 25.8 | 57 | ||
Cash and cash equivalents at beginning of year | 192.6 | 166.8 | 109.8 | ||
Cash and Cash Equivalents at End of Year | $ 101.3 | $ 192.6 | $ 166.8 | ||
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity - USD ($) $ in Millions | Total | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) | ||
Balance at Apr. 30, 2016 | $ 7,008.5 | $ 29.1 | $ 5,860.1 | $ 1,267.7 | $ (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 | (143.4) | ||
Balance, shares at Apr. 30, 2017 | 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 | (116.7) | ||
Balance, shares at Apr. 30, 2018 | 113,572,840 | 113,572,840 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 514.4 | ||||||
Other comprehensive income (loss) | (65.1) | (65.1) | |||||
Comprehensive Income | 449.3 | ||||||
Purchase of treasury shares | (5.4) | $ 0 | (5.4) | 0 | |||
Purchase of treasury shares, shares | (50,723) | ||||||
Stock plans | 21.5 | $ 0 | 21.5 | ||||
Stock plans, shares | 220,179 | ||||||
Cash dividends declared | (386) | (386) | |||||
Other | 0 | $ 0 | 0 | ||||
Balance at Apr. 30, 2019 | $ 7,970.5 | $ 28.9 | $ 5,755.8 | $ 2,367.6 | $ (181.8) | ||
Balance, shares at Apr. 30, 2019 | 113,742,296 | 113,742,296 | |||||
[1] | During the fourth quarter of 2018, we elected to early adopt Accounting Standards Update (“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. | ||||||
[2] | During 2018, we adopted 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. |
Statements of Consolidated Sh_2
Statements of Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||||||||||
Cash dividends declared, per common share | $ 0.85 | $ 0.85 | $ 0.85 | $ 0.85 | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.78 | $ 3.40 | $ 3.12 | $ 3 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2019 | |
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. 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, among others: 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: Most of our revenue is derived from the sale of food and beverage products to food retailers and foodservice distributors and operators. We recognize revenue when obligations under the terms of a contract with a customer have been satisfied. This occurs when control of our products transfers, which typically takes place upon delivery to or pick up by the customer. Amounts due from our customers are classified as trade receivables in the Consolidated Balance Sheets and require payment on a short-term basis. Transaction price is based on the list price included in our published price list, which is then reduced by the estimated impact of variable consideration, such as trade marketing and merchandising programs, discounts, unsaleable product allowances, returns, and similar items, in the same period that the revenue is recognized. To estimate the impact of these costs, we consider customer contract provisions, historical data, and our current expectations. Our trade marketing and merchandising programs consist of various promotional activities 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 2019 , 2018 , and 2017 , subsequent period adjustments were 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 36 percent, 35 percent, and 33 percent of net sales in 2019 , 2018 , and 2017 , 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. For revenue disaggregated by reportable segment, geographical region, and product category, see Note 5: Reportable Segments. 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 primarily relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $266.6 , $245.4 , and $252.9 in 2019 , 2018 , and 2017 , respectively. Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $237.5 , $194.2 , and $169.8 in 2019 , 2018 , and 2017 , 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 , $56.0 , and $58.1 in 2019 , 2018 , and 2017 , 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. 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, 2019 2018 2017 Share-based compensation expense included in SD&A $ 20.1 $ 13.7 $ 22.3 Share-based compensation expense (benefit) included in other special project costs (A) 0.6 1.7 (0.3 ) Total share-based compensation expense $ 20.7 $ 15.4 $ 22.0 Related income tax benefit $ 4.9 $ 4.6 $ 7.2 (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, 2019 , total unrecognized share-based compensation cost related to nonvested share-based awards was $45.1 . The weighted-average period over which this amount is expected to be recognized is 3.3 years . 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 2019 , 2018 , and 2017 , the excess tax benefits realized upon exercise or vesting of share-based compensation were $0.5 , $1.5 , and $3.3 , 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 2019 , 2018 , and 2017 were $37.1 , $36.3 , and $31.9 , 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 tax benefit is recognized when it is more likely than not to be sustained. 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. 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 FASB 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 the Act, legislating comprehensive tax reform that reduced the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadened the U.S. federal income tax base, required companies to pay a one-time transition tax, and created new taxes on certain foreign-sourced earnings as part of a new territorial tax regime. 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, 2019 and 2018 , the allowance for doubtful accounts was $1.8 and $1.1 , 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 $72.5 and $80.9 at April 30, 2019 and 2018 , 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 interest rate risk associated with anticipated debt transactions, as well as to manage changes in the fair value of our long-term debt. 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 2019 , 2018 , and 2017 totaled $99.2 , $95.2 , and $101.0 , respectively. As of April 30, 2019 , our minimum operating lease obligations were as follows: $43.0 in 2020 , $36.7 in 2021 , $30.5 in 2022 , $24.8 in 2023 , and $12.3 in 2024 . 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 whenever events or changes in circumstances indicate that 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 estimated 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 its estimated fair value of the assets. 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. Furthermore, determining fair value is subject to estimates of both cash flows and discount rates, and different estimates could yield different results. There are no events or changes in circumstances of which we are aware of that indicate the carrying value of our long-lived assets may not be recoverable at April 30, 2019 . 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, 2019 and 2018 , the fair value of these investments was $40.9 and $45.8 , respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2019 and 2018 , were unrealized pre-tax gains of $5.4 and $4.7 , 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, 2019 and 2018 . 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, 2019 and 2018 , were foreign currency losses of $35.5 and $16.4 , respectively. Recently Issued Accounting Standards: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. It will be effective for us on May 1, 2020, with the option to early adopt at any time prior to the effective date, and will require adoption on either a retrospective or prospective basis for all implementation costs incurred after the date of adoption. We expect to early adopt as of May 1, 2019, and apply this standard on a prospective basis. We anticipate capitalizing implementation costs of approximately $10.0 related to third-party cloud computing services during 2020. In August 2018, the FASB also issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20) Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance removes disclosures that are no longer considered cost beneficial and adds new and clarifies certain other disclosure requirements. ASU 2018-14 will be effective for us on May 1, 2020, with the option to early adopt at any time prior to the effective date, 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 our disclosures. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , to eliminate or modify certain disclosure rules that are redundant, outdated, or duplicative of U.S. GAAP or other regulatory requirements. Among other changes, the amendments remove the requirement to provide the ratio of earnings to fixed charges exhibit and reduce the requirements for supplemental pro forma information related to business combinations. The annual requirement to disclose dividends declared and the high and low trading prices of our common stock each quarter of the two previous years is also removed. In addition, the disclosure requirements related to the analysis of shareholders' equity are expanded for interim financial statements. An analysis of the changes in each caption of shareholders’ equity presented in the balance sheet must be provided in a note or separate statement, as well as the amount of dividends per share for each class of shares. Although this rule was effective on November 5, 2018, the SEC is allowing an extended transition period to implement the expanded shareholders’ equity disclosure requirements, which will be effective for us on May 1, 2019. While the new shareholders’ equity disclosure requirements will impact our interim financial statements beginning in 2020, the amendments in this rule did not have a material impact on our financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the service cost component of the net periodic pension cost to be presented separately from the other components of the net periodic pension cost in the income statement. Additionally, only the service cost component of the net periodic pension cost is eligible for capitaliza tion. ASU 2017-07 was effective for us on May 1, 2018. The change in presentation of service cost was applied retrospectively, while the capitalization of service cost will be applied on a prospective basis. The adoption of this ASU did not have a material impact on our financial statements and disclosures. 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 was effective for us on May 1, 2018, and required adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this ASU did not have an 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 makes changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 was effective for us on May 1, 2018, and required adoption on a retrospective basis. The adoption of this ASU did not impact the presentation of our financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize a right-of-use asset and lease liability for all leases with a term of more than 12 months. ASU 2016-02 will be effective for us on May 1, 2019, and requires a modified retrospective application. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provides an additional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. We plan to utilize this transition method upon adoption, and as a result, we will not adjust comparative period financial information or make the new required lease disclosures for periods before the effective date. Our preparation for the adoption of ASU 2016-02 is substantially complete. We have compiled an inventory of our lease arrangements in order to determine the impact the new guidance will have on our financial statements and disclosures and have implemented new lease accounting software in preparation for the standard’s additional reporting requirements. We have elected certain practical expedients available under the guidance, including a package of practical expedients which allows us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. Based on our assessment to date, we expect that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets and corresponding lease liabilities in the range of $160.0 to $175.0 in our Consolidated Balance Sheet as of May 1, 2019. We do not expect the new standard to have a material impact on our Statement of Consolidated Income or Statement of Consolidated Cash Flows. 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. We adopted the requirements of ASU 2014-09 and all related amendments on May 1, 2018, using the modified retrospective transition method. The adoption did not have an impact on our financial statements. The additional disclosures required are presented above within the Revenue Recognition accounting policy and within Note 5: Reportable Segments. 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, animal protein meals, oils and fats, 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 K-Cup ® pods and 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 raw 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, and syrups, 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, 24 percent are covered by union contracts at nine manufacturing locations. The contracts vary in term, with seven contracts expiring in 2020, representing 19 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. |
Acquisition
Acquisition | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Note 2: Acquisition On May 14, 2018, we acquired the stock of Ainsworth in an all-cash transaction, valued at $1.9 billion , inclusive of a working capital adjustment. The transaction was funded with a bank term loan and borrowings under our commercial paper program of approximately $1.5 billion and $400.0 , respectively. 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. The majority 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. Prior to acquisition, Ainsworth was a privately-held company headquartered in Meadville, Pennsylvania. In addition to its headquarters, the transaction included two manufacturing facilities owned by Ainsworth, which are located in Meadville, Pennsylvania, and Frontenac, Kansas, and a leased distribution facility in Greenville, Pennsylvania. The transaction was accounted for under the acquisition method of accounting, and accordingly, the results of Ainsworth’s operations, including $747.0 in net sales and $40.8 in operating income, are included in our consolidated financial statements in 2019. The operating income was reduced by the recognition of an unfavorable fair value purchase accounting adjustment of $10.9 , attributable to the acquired inventory. The final purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We determined the estimated fair values based on independent appraisals, discounted cash flow analyses, quoted market prices, and other estimates made by management. The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired, and the excess was recognized as goodwill. Changes to the preliminary fair values during 2019 resulted in a net adjustment to goodwill of $64.1 , which was primarily attributable to the finalization of the acquisition date fair value of the identifiable intangibles and the related impact on deferred taxes. The impact of this adjustment to previous period earnings and the consolidated financial statements is immaterial. The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date. Assets acquired: Cash and cash equivalents $ 1.6 Trade receivables 66.3 Inventories 97.8 Other current assets 4.8 Property, plant, and equipment 83.8 Goodwill 617.8 Other intangible assets 1,260.6 Other noncurrent assets 0.3 Total assets acquired $ 2,133.0 Liabilities assumed: Current liabilities $ 83.3 Deferred tax liabilities 126.1 Other noncurrent liabilities 19.0 Total liabilities assumed $ 228.4 Net assets acquired $ 1,904.6 As a result of the acquisition, we recognized goodwill of $617.8 within the U.S. Retail Pet Foods segment. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities as we integrate Ainsworth into our U.S. Retail Pet Foods segment. Of the total goodwill, $446.0 was deductible for income tax purposes at the acquisition date, of which $416.3 remains deductible at April 30, 2019. The goodwill and indefinite-lived trademarks within the U.S. Retail Pet Foods segment, inclusive of the recently acquired Ainsworth business, remain susceptible to future impairment charges, as the carrying values approximate estimated fair values. Any significant adverse change in our near or long-term projections or macroeconomic conditions would result in future impairment charges. For more information, see Note 7: Goodwill and Other Intangible Assets. The purchase price was allocated to the identifiable other intangible assets acquired as follows: Intangible assets with finite lives: Customer and contractual relationships (25-year useful life) $ 951.0 Trademarks (5-year useful life) 1.6 Intangible assets with indefinite lives: Trademarks 308.0 Total other intangible assets $ 1,260.6 Ainsworth’s results of operations are included in our consolidated financial statements from the date of the transaction within the U.S. Retail Pet Foods segment. Had the transaction occurred on May 1, 2017, unaudited pro forma consolidated results for 2019 and 2018, would have been as follows: Year Ended April 30, 2019 2018 Net sales $ 7,865.4 $ 8,036.9 Net income 522.6 1,234.6 The unaudited pro forma consolidated results are based on our historical financial statements and those of Ainsworth, and do not necessarily indicate the results of operations that would have resulted had the acquisition been completed at the beginning of the applicable period presented. The most significant pro forma adjustments relate to the elimination of nonrecurring acquisition-related costs incurred prior to the close of the transaction, amortization of acquired intangible assets, depreciation of acquired property, plant, and equipment, and higher interest expense associated with acquisition-related financing. The unaudited pro forma consolidated results do not give effect to the synergies of the acquisition and are not indicative of the results of operations in future periods. |
Integration and Restructuring C
Integration and Restructuring Costs | 12 Months Ended |
Apr. 30, 2019 | |
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 and other transition and termination 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 transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. These integration and restructuring 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: Total integration costs related to the acquisition of Ainsworth are anticipated to be approximately $50.0 , the majority of which are expected to be cash charges. Of the total anticipated integration costs, we expect approximately half to be employee-related. All remaining integration costs are expected to be incurred by the end of 2020. The following table summarizes our integration costs incurred related to the Ainsworth acquisition. 2019 Total Costs Employee-related costs $ 15.5 $ 15.5 Other transition and termination costs 16.6 16.6 Total integration costs $ 32.1 $ 32.1 Noncash charges of $4.1 were included in the integration costs incurred during 2019, which primarily consisted of accelerated depreciation, and also represents the cumulative noncash charges incurred to date. The obligation related to severance costs and retention bonuses was $1.6 at April 30, 2019. All integration activities related to the acquisition of Big Heart were complete as of April 30, 2018, and as a result, we did no t incur any integration costs during 2019. During 2018 and 2017, we incurred total integration costs of $26.6 and $64.1 , respectively. Noncash charges of $2.6 and $3.2 were included in the total integration costs incurred in 2018 and 2017 , respectively, and primarily consisted of share-based compensation and accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.1 at April 30, 2018 , and was fully satisfied at April 30, 2019. Restructuring Costs: An organization optimization program was approved by the Board during the fourth quarter of 2016. Under this program, we identified opportunities to reduce costs and optimize the organization. Related projects included an organizational redesign and the optimization of our manufacturing footprint. The program was expanded at the end of 2018 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. The organization optimization program was completed during 2019, and as a result, we closed our international offices in China and Mexico, as well as the San Francisco and Burbank, California, offices. Furthermore, all coffee production at our Harahan, Louisiana, facility was consolidated into one of our coffee facilities in New Orleans, Louisiana, during 2018. The program resulted in total headcount reductions of approximately 450 full-time positions. The following table summarizes our final restructuring costs incurred related to the organization optimization program. 2019 2018 2017 Total Costs Employee-related costs $ 24.9 $ 10.1 $ 12.4 $ 48.7 Other transition and termination costs 7.1 12.6 6.2 25.9 Total restructuring costs $ 32.0 $ 22.7 $ 18.6 $ 74.6 Noncash charges of $3.3 , $9.8 and $2.1 were included in the restructuring costs incurred during 2019 , 2018 and 2017 , respectively. Noncash charges included in total restructuring costs incurred to date were $15.2 , and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.8 and $0.3 at April 30, 2019 and 2018 , respectively. |
Divestiture
Divestiture | 12 Months Ended |
Apr. 30, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | Note 4: Divestiture On August 31, 2018, we sold our U.S. baking business to Brynwood Partners VII L.P. and Brynwood Partners VIII L.P., subsidiaries of Brynwood Partners, an unrelated party. The transaction included products that were primarily sold in U.S. retail channels under the Pillsbury , Martha White , Hungry Jack , White Lily , and Jim Dandy brands, along with all relevant trademarks and licensing agreements, and our manufacturing facility in Toledo, Ohio. This business generated net sales of approximately $370.0 in 2018. The transaction did not include our baking business in Canada. The operating results for this business were primarily included in the U.S. Retail Consumer Foods segment prior to the sale. We received proceeds from the divestiture of $369.5 , which were net of cash transaction costs and included a working capital adjustment. Upon completion of the transaction, we recognized a pre-tax gain of $27.7 during 2019, which is included in other operating expense (income) – net within the Statement of Consolidated Income. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Apr. 30, 2019 | |
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. 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 Smucker’s , Jif , and Crisco branded products; and the U.S. Retail Pet Foods segment primarily includes domestic sales of Rachael Ray Nutrish, Meow Mix , Milk-Bone , Natural Balance , Kibbles ’n Bits , 9Lives , Nature’s Recipe , and Pup-Peroni branded products. The International and Away From Home segment comprises 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). Effective May 1, 2018, the convenience store channel, which was previously included in the U.S. retail segments, is now included in the International and Away From Home segment. Segment performance for 2018 and 2017 has been reclassified for this realignment. 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. 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, 2019 2018 2017 Net sales: U.S. Retail Coffee $ 2,122.3 $ 2,086.8 $ 2,102.3 U.S. Retail Consumer Foods 1,761.5 1,985.6 2,072.6 U.S. Retail Pet Foods 2,879.5 2,165.3 2,131.8 International and Away From Home 1,074.7 1,119.4 1,085.6 Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 Segment profit: U.S. Retail Coffee $ 676.3 $ 612.4 $ 679.7 U.S. Retail Consumer Foods 406.1 475.3 457.1 U.S. Retail Pet Foods 503.4 439.4 479.0 International and Away From Home 198.5 200.1 190.9 Total segment profit $ 1,784.3 $ 1,727.2 $ 1,806.7 Amortization (240.3 ) (206.8 ) (207.3 ) Goodwill impairment charges (97.9 ) (145.0 ) — Other intangible assets impairment charges (107.2 ) (31.9 ) (133.2 ) Interest expense – net (207.9 ) (174.1 ) (163.1 ) Unallocated derivative gains (losses) (54.2 ) 37.3 (27.2 ) Cost of products sold – special project costs (A) — (3.9 ) (5.7 ) Other special project costs (A) (64.1 ) (45.4 ) (76.9 ) Corporate administrative expenses (292.0 ) (287.5 ) (313.8 ) Other income (expense) – net (19.1 ) (8.9 ) (1.1 ) Income before income taxes $ 701.6 $ 861.0 $ 878.4 Assets: U.S. Retail Coffee $ 4,771.9 $ 4,815.4 $ 4,909.9 U.S. Retail Consumer Foods 2,850.8 3,217.5 3,157.2 U.S. Retail Pet Foods 7,847.0 5,932.3 6,232.9 International and Away From Home 1,019.5 1,043.9 1,053.4 Unallocated (B) 222.1 292.1 286.3 Total assets $ 16,711.3 $ 15,301.2 $ 15,639.7 Depreciation, amortization, and impairment charges: U.S. Retail Coffee $ 98.3 $ 96.6 $ 95.7 U.S. Retail Consumer Foods 162.4 80.2 73.2 U.S. Retail Pet Foods 301.4 314.8 280.8 International and Away From Home 52.8 57.8 61.9 Unallocated (C) 36.5 40.6 40.6 Total depreciation, amortization, and impairment charges $ 651.4 $ 590.0 $ 552.2 Additions to property, plant, and equipment: U.S. Retail Coffee $ 63.9 $ 89.4 $ 40.9 U.S. Retail Consumer Foods 138.9 168.9 49.7 U.S. Retail Pet Foods 136.0 34.3 70.5 International and Away From Home 21.0 29.3 31.3 Total additions to property, plant, and equipment $ 359.8 $ 321.9 $ 192.4 (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, 2019 2018 2017 Net sales: United States $ 7,298.0 $ 6,786.5 $ 6,865.1 International: Canada $ 421.9 $ 431.8 $ 414.3 All other international 118.1 138.8 112.9 Total international $ 540.0 $ 570.6 $ 527.2 Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 Assets: United States $ 16,338.0 $ 14,828.2 $ 15,214.3 International: Canada $ 362.1 $ 428.7 $ 380.9 All other international 11.2 44.3 44.5 Total international $ 373.3 $ 473.0 $ 425.4 Total assets $ 16,711.3 $ 15,301.2 $ 15,639.7 Long-lived assets (excluding goodwill and other intangible assets): United States $ 2,037.5 $ 1,869.8 $ 1,757.1 International: Canada $ 18.9 $ 17.4 $ 13.4 All other international — 0.3 0.4 Total international $ 18.9 $ 17.7 $ 13.8 Total long-lived assets (excluding goodwill and other intangible assets) $ 2,056.4 $ 1,887.5 $ 1,770.9 The following table presents product category information. Year Ended April 30, 2019 2018 2017 Primary Reportable Segment (A) Coffee $ 2,479.4 $ 2,469.7 $ 2,492.1 U.S. Retail Coffee Dog food 1,313.1 756.8 718.6 U.S. Retail Pet Foods Pet snacks 815.1 767.2 770.7 U.S. Retail Pet Foods Cat food 812.8 702.5 704.7 U.S. Retail Pet Foods Peanut butter 756.6 745.1 718.4 U.S. Retail Consumer Foods Fruit spreads 341.6 353.8 348.6 U.S. Retail Consumer Foods Frozen handheld 289.0 254.1 226.2 U.S. Retail Consumer Foods Shortening and oils 253.6 258.1 307.2 U.S. Retail Consumer Foods Baking mixes and ingredients 185.2 437.9 484.2 U.S. Retail Consumer Foods Portion control 162.7 160.3 151.9 International and Away From Home Juices and beverages 123.9 140.8 146.0 U.S. Retail Consumer Foods Other 305.0 310.8 323.7 International and Away From Home Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. Sales to Walmart Inc. and subsidiaries amounted to 32 percent, 31 percent, and 30 percent of net sales in 2019, 2018, and 2017 , respectively. 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, 2019 and 2018 , included amounts due from Walmart Inc. and subsidiaries of $137.7 and $123.1 , respectively. |
Earnings per Share
Earnings per Share | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 2018 2017 Net income $ 514.4 $ 1,338.6 $ 592.3 Less: Net income allocated to participating securities 2.6 6.8 2.8 Net income allocated to common stockholders $ 511.8 $ 1,331.8 $ 589.5 Weighted-average common shares outstanding 113.1 113.0 115.5 Add: Dilutive effect of stock options — — 0.1 Weighted-average common shares outstanding – assuming dilution 113.1 113.0 115.6 Net income per common share $ 4.52 $ 11.79 $ 5.11 Net income per common share – assuming dilution $ 4.52 $ 11.78 $ 5.10 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 30, 2019 | |
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 U.S. Retail U.S. Retail International Total Balance at May 1, 2017 $ 2,090.9 $ 1,599.0 $ 1,969.5 $ 417.7 $ 6,077.1 Impairment charge (A) — — (145.0 ) — (145.0 ) Other (B) — 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 Acquisition — — 617.8 — 617.8 Divestiture — (144.3 ) — — (144.3 ) Impairment charge (A) — (97.9 ) — — (97.9 ) Other (B) — — — (6.9 ) (6.9 ) Balance at April 30, 2019 $ 2,090.9 $ 1,358.2 $ 2,442.3 $ 419.5 $ 6,310.9 (A) The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. (B) The amounts classified as other represent foreign currency exchange adjustments. The following table summarizes our other intangible assets and related accumulated amortization and impairment charges, including foreign currency exchange adjustments. April 30, 2019 April 30, 2018 Acquisition Accumulated Net Acquisition Accumulated Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 4,471.1 $ 1,156.8 $ 3,314.3 $ 3,520.1 $ 959.3 $ 2,560.8 Patents and technology 168.5 127.4 41.1 168.5 114.4 54.1 Trademarks 499.9 166.9 333.0 556.4 145.0 411.4 Total intangible assets subject to amortization $ 5,139.5 $ 1,451.1 $ 3,688.4 $ 4,245.0 $ 1,218.7 $ 3,026.3 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 3,321.1 $ 290.7 $ 3,030.4 $ 3,078.1 $ 187.9 $ 2,890.2 Total other intangible assets $ 8,460.6 $ 1,741.8 $ 6,718.8 $ 7,323.1 $ 1,406.6 $ 5,916.5 Amortization expense for finite-lived intangible assets was $239.1 , $204.8 , and $205.9 in 2019 , 2018 , and 2017 , respectively. The weighted-average useful lives of the customer and contractual relationships, patents and technology, and trademarks are 24 years , 14 years , and 17 years , respectively. The weighted-average useful life of total finite-lived intangible assets is 23 years . Based on the carrying amount of intangible assets subject to amortization at April 30, 2019 , the estimated amortization expense is $235.3 for 2020 , $233.3 for 2021 , $229.0 for 2022 , $221.4 for 2023 , and $216.4 for 2024 . During the third quarter of 2019, we began our annual planning cycle, inclusive of a strategy review within our strategic business areas. Our planning process was not complete at the end of the third quarter; however, we made some decisions related to certain brands resulting in a reduction in our long-term forecasted net sales of certain indefinite-lived trademarks within the U.S. Retail Pet Foods segment, excluding the acquired Ainsworth business. As a result of the strategic decisions made at that time, the reduction in long-term forecasted net sales for these indefinite-lived trademarks, and the narrow differences between fair value and carrying value as of April 30, 2018, we performed an interim impairment analysis on these trademarks during the third quarter of 2019, which resulted in an impairment charge of $107.2 . This charge was included as a noncash charge in our Statement of Consolidated Income. As of February 1, 2019, we completed the annual impairment review, in which goodwill impairment was tested at the reporting unit level for our seven reporting units. As a result, we recognized an impairment charge of $97.9 , related to the goodwill of the Natural Foods reporting unit within the U.S. Retail Consumer Foods segment, which was driven by a reduction in our long-term net sales and profitability projections. The reduction in projections for the Natural Foods reporting unit was driven by certain brand-specific strategic decisions made during the fourth quarter of 2019 that prioritized investments in growth brands outside of the reporting unit, as well as the impact of recent category trends. The goodwill impairment charge was included as a noncash charge in our Statement of Consolidated Income and represents the remaining carrying value of the goodwill within the reporting unit. Furthermore, we completed an impairment review of the remaining long-lived assets within the Natural Foods reporting unit and did not recognize any additional impairment. Related to the remaining reporting units, we did not recognize any impairment charges related to goodwill or any of their respective indefinite-lived trademarks. As of the annual test date, the estimated fair value was substantially in excess of the carrying value for the majority of the remaining reporting units and material indefinite-lived intangible assets, and in all instances, the estimated fair value exceeded the carrying value by greater than 10 percent, with the exception of the Pet Foods reporting unit and all indefinite-lived trademarks within the U.S. Retail Pet Foods segment. The carrying values of the goodwill and indefinite-lived intangible assets within the U.S. Retail Pet Foods segment were $2.4 billion and $1.5 billion , respectively, as of April 30, 2019. These intangible assets are susceptible to future impairment charges due to narrow differences between fair value and carrying value as a result of recent impairment charges and the acquisition of Ainsworth in May 2018. 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. Therefore, any significant adverse changes to the forecasted net sales or profitability, as well as any significant adverse changes in strategy, could result in future impairment charges which could be material. During the third quarter of 2018, as a result of a decline in forecasted net sales for the U.S. Retail Pet Foods segment in combination with the narrow differences between estimated fair value and carrying value of the Pet Foods reporting unit and indefinite-lived trademarks as of April 30, 2017, 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. We recognized total impairment charges of $176.9 in 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. These noncash charges were included in our Statement of Consolidated Income. Furthermore, at that time, we adopted ASU 2017-04, Intangibles - Goodwill and Other (Topic 350) Simplifying the Test for Goodwill Impairment, in connection with the third quarter of 2018 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, not to exceed the carrying amount of the goodwill. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Note 8: Debt and Financing Arrangements Long-term debt consists of the following: April 30, 2019 April 30, 2018 Principal Carrying Amount (A) Principal Carrying (A) 2.20% Senior Notes due December 6, 2019 $ 300.0 $ 299.5 $ 300.0 $ 298.6 2.50% Senior Notes due March 15, 2020 500.0 499.0 500.0 497.8 3.50% Senior Notes due October 15, 2021 750.0 768.4 750.0 775.6 3.00% Senior Notes due March 15, 2022 400.0 398.0 400.0 397.3 3.50% Senior Notes due March 15, 2025 1,000.0 995.2 1,000.0 994.4 3.38% Senior Notes due December 15, 2027 500.0 496.2 500.0 495.8 4.25% Senior Notes due March 15, 2035 650.0 643.5 650.0 643.1 4.38% Senior Notes due March 15, 2045 600.0 586.0 600.0 585.4 Term Loan Credit Agreement due May 14, 2021 800.0 799.0 — — Total long-term debt $ 5,500.0 $ 5,484.8 $ 4,700.0 $ 4,688.0 Current portion of long-term debt 800.0 798.5 — — Total long-term debt, less current portion $ 4,700.0 $ 4,686.3 $ 4,700.0 $ 4,688.0 (A) Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. We entered into interest rate contracts in November 2018 and June 2018, with notional values of $300.0 and $500.0 , respectively, to manage our exposure to interest rate volatility associated with anticipated debt financing in 2020. These interest rate contracts are designated as cash flow hedges, and as a result, the mark-to-market gains or losses on these contracts 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 transactions affect earnings. At April 30, 2019, unrealized losses of $49.1 were deferred in accumulated other comprehensive income (loss) for these derivative instruments. For additional information, see Note 10: Derivative Financial Instruments. In April 2018, we entered into a Term Loan with a syndicate of banks and an available commitment amount of $1.5 billion . The full amount of the Term Loan was drawn on May 14, 2018, to partially finance the Ainsworth acquisition, as discussed in Note 2: Acquisition. Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or LIBOR, based on our election, and is payable either on a quarterly basis or at the end of the borrowing term. The Term Loan does not require scheduled amortization payments. Voluntary prepayments are permitted without premium or penalty. As of April 30, 2019, we have prepaid $700.0 on the Term Loan to date. The interest rate on the Term Loan at April 30, 2019, was 3.62 percent . We have incurred total capitalized debt issuance costs of $2.8 , of which $2.0 was incurred upon drawing on the Term Loan in 2019, and is being amortized to interest expense over the time period for which the debt is outstanding. All of our Senior Notes outstanding at April 30, 2019 , 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. We have available a $1.8 billion unsecured revolving credit facility with a group of 11 banks that matures in September 2022. 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 revolving credit facility at both April 30, 2019 and 2018. 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. 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, 2019 and 2018 , we had $426.0 and $144.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 2.75 percent and 2.20 percent, respectively. Interest paid totaled $213.3 , $158.9 , and $162.2 in 2019 , 2018 , and 2017 , respectively. This differs from interest expense due to the amortization of debt issuance costs and discounts, effect of interest rate contracts, capitalized interest, payment of other debt fees, and timing of interest payments. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 2018 2017 2019 2018 2017 Service cost $ 2.1 $ 5.2 $ 12.7 $ 1.9 $ 2.0 $ 2.3 Interest cost 23.2 21.6 25.3 2.3 2.1 2.6 Expected return on plan assets (26.8 ) (28.8 ) (29.3 ) — — — Amortization of prior service cost (credit) 0.9 0.9 1.1 (1.3 ) (1.4 ) (1.5 ) Amortization of net actuarial loss (gain) 8.3 11.5 13.8 (0.6 ) (0.3 ) (0.2 ) Curtailment loss (gain) 0.3 — — — — — Settlement loss (gain) 7.1 2.3 (0.7 ) — — — Termination benefit cost — — — 0.2 — — Net periodic benefit cost $ 15.1 $ 12.7 $ 22.9 $ 2.5 $ 2.4 $ 3.2 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 $ (2.0 ) $ (0.2 ) $ 3.0 Net actuarial gain (loss) arising during the year (22.9 ) 3.5 1.5 (2.8 ) 5.5 2.3 Amortization of prior service cost (credit) 0.9 0.9 1.1 (1.3 ) (1.4 ) (1.5 ) Amortization of net actuarial loss (gain) 8.3 11.5 13.8 (0.6 ) (0.3 ) (0.2 ) Curtailment loss (gain) 0.3 — 28.8 — — 0.1 Settlement loss (gain) 7.1 2.3 (0.7 ) — — — Foreign currency translation 1.2 (1.8 ) 2.5 — (0.1 ) — Net change for year $ (5.1 ) $ 16.4 $ 49.1 $ (6.7 ) $ 3.5 $ 3.7 Weighted-average assumptions used in determining net periodic benefit costs: U.S. plans: Discount rate used to determine benefit obligation 4.17 % 3.95 % 3.85 % 4.13 % 3.86 % 3.80 % Discount rate used to determine service cost 4.29 4.20 3.85 4.23 4.06 3.80 Discount rate used to determine interest cost 3.87 3.38 3.85 3.79 3.24 3.80 Expected return on plan assets 5.66 6.27 6.27 — — — Rate of compensation increase 3.59 3.78 3.96 — — — Canadian plans: Discount rate used to determine benefit obligation 3.57 % 3.22 % 3.60 % 3.55 % 3.19 % 3.50 % Discount rate used to determine service cost 3.64 3.39 3.60 3.77 3.70 3.50 Discount rate used to determine interest cost 3.23 2.60 3.60 3.23 2.58 3.50 Expected return on plan assets 5.25 5.00 5.25 — — — 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, 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 639.7 $ 677.3 $ 65.9 $ 70.7 Service cost 2.1 5.2 1.9 2.0 Interest cost 23.2 21.6 2.3 2.1 Amendments — — 2.0 0.2 Actuarial loss (gain) 17.0 (10.8 ) 2.8 (5.5 ) Benefits paid (33.9 ) (36.0 ) (4.7 ) (4.3 ) Foreign currency translation adjustments (3.6 ) 5.8 (0.3 ) 0.7 Curtailment (1.3 ) — — — Settlement (27.7 ) (23.4 ) — — Termination benefit cost — — 0.2 — Benefit obligation at end of year $ 615.5 $ 639.7 $ 70.1 $ 65.9 Change in plan assets: Fair value of plan assets at beginning of year $ 497.0 $ 489.2 $ — $ — Actual return on plan assets 19.6 21.5 — — Company contributions 29.3 39.6 4.7 4.3 Benefits paid (33.9 ) (36.0 ) (4.7 ) (4.3 ) Settlement (27.7 ) (23.4 ) — — Foreign currency translation adjustments (4.0 ) 6.1 — — Fair value of plan assets at end of year $ 480.3 $ 497.0 $ — $ — Funded status of the plans $ (135.2 ) $ (142.7 ) $ (70.1 ) $ (65.9 ) Defined benefit pensions $ (139.1 ) $ (144.1 ) $ — $ — Other noncurrent assets 8.0 9.5 — — Accrued compensation (4.1 ) (8.1 ) (5.1 ) (4.0 ) Other postretirement benefits — — (65.0 ) (61.9 ) Net benefit liability $ (135.2 ) $ (142.7 ) $ (70.1 ) $ (65.9 ) 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, 2019 2018 2019 2018 Net actuarial gain (loss) $ (157.2 ) $ (150.9 ) $ 10.2 $ 13.6 Prior service credit (cost) (3.5 ) (4.7 ) 5.8 9.1 Total recognized in accumulated other comprehensive income (loss) $ (160.7 ) $ (155.6 ) $ 16.0 $ 22.7 During 2020 , we expect to recognize amortization of net actuarial losses and prior service credit of $7.7 and $0.3 , respectively, in net periodic benefit cost. 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, 2019 2018 2019 2018 U.S. plans: Discount rate 3.99 % 4.17 % 3.91 % 4.13 % Rate of compensation increase 3.56 3.59 — — Canadian plans: Discount rate 3.21 % 3.57 % 3.19 % 3.55 % Rate of compensation increase 3.00 3.00 — — For 2020 , the assumed health care trend rates are 6.5 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, 2019 : One Percentage Point Increase Decrease Effect on total service and interest cost components $ — $ — Effect on benefit obligation 1.1 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 58 and 59. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2019 2018 2019 2018 Benefit obligation at end of year $ 84.8 $ 87.6 $ 7.1 $ 7.3 Fair value of plan assets at end of year 92.1 96.4 — — Funded status of the plans $ 7.3 $ 8.8 $ (7.1 ) $ (7.3 ) Components of net periodic benefit cost: Service cost $ 0.1 $ 0.2 $ — $ — Interest cost 2.7 2.4 0.2 0.3 Expected return on plan assets (4.8 ) (5.0 ) — — Amortization of net actuarial loss (gain) 0.9 0.8 — — Net periodic benefit cost (credit) $ (1.1 ) $ (1.6 ) $ 0.2 $ 0.3 Changes in plan assets: Company contributions $ 0.1 $ 0.9 $ 0.5 $ 0.5 Benefits paid (6.5 ) (6.8 ) (0.5 ) (0.5 ) Actual return on plan assets 6.1 1.5 — — Foreign currency translation (3.9 ) 6.0 — — The following table sets forth additional information related to our defined benefit pension plans. April 30, 2019 2018 Accumulated benefit obligation for all pension plans $ 605.6 $ 627.9 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 521.5 $ 541.3 Fair value of plan assets 388.2 400.6 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 531.4 $ 552.9 Fair value of plan assets 388.2 400.6 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 3.8 percent and 5.4 percent for the years ended April 30, 2019 and 2018 , respectively, which excludes administrative and investment expenses. Our current investment policy is to invest approximately 60 percent of assets in fixed-income securities, with the remaining invested primarily in equity securities. 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 Significant Significant Plan Assets At April 30, 2019 Cash and cash equivalents (A) $ 0.5 $ — $ — $ 0.5 Equity securities: U.S. (B) 65.7 1.8 — 67.5 International (C) 74.3 9.2 — 83.5 Fixed-income securities: Bonds (D) 220.6 — — 220.6 Fixed income (E) 51.8 — — 51.8 Other types of investments (F) — 46.3 — 46.3 Total financial assets measured at fair value $ 412.9 $ 57.3 $ — $ 470.2 Total financial assets measured at net asset value (G) 10.1 Total plan assets $ 480.3 Quoted Prices in Significant Significant 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 (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 , as well as various U.S. Treasury Separate Trading of Registered Interest and Principal 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, a common collective trust fund investing in direct commercial property funds, and a private limited investment partnership in 2018. 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 in 2018 is classified as a Level 3 asset. The investments in this partnership were valued at estimated fair value based on audited financial statements received from the general partner. (G) This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds, as well as a private limited investment partnership. The fair value estimates of the private equity fund and private limited investment partnership are 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 and private limited investment partnership are 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 and private limited investment partnership are removed from the total financial assets measured at fair value and disclosed separately. We expect to contribute approximately $1.2 to the defined benefit pension plans in 2020 . We expect the following payments to be made from the defined benefit pension and other postretirement benefit plans: $49.5 in 2020 , $47.4 in 2021 , $47.0 in 2022 , $51.0 in 2023 , $46.4 in 2024 , and $222.4 in 2025 through 2029 . 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 2019 and 2018 , a total of $2.3 and $2.0 was contributed to the plan, respectively, and we anticipate contributions of $2.2 in 2020 . 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 2018, the Bakery and Confectionery Union Fund was in Red Zone status, as the current funding status was 51.6 percent. A funding improvement plan, or rehabilitation plan, has been implemented. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Apr. 30, 2019 | |
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. Commodity Price Management: We enter into commodity derivatives to manage the price volatility and reduce the variability of future cash flows related to anticipated inventory purchases of key raw materials, notably green coffee, corn, edible oils, soybean meal, and wheat. 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 interest rate risk associated with anticipated debt transactions, as well as to manage changes in the fair value of our long-term debt. At the inception of an interest rate contract, the instrument is evaluated and documented for qualifying 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. We entered into interest rate contracts in November 2018 and June 2018, with notional values of $300.0 and $500.0 , respectively, to manage our exposure to interest rate volatility associated with anticipated debt financing in 2020. These interest rate contracts are designated as cash flow hedges, and as a result, unrealized losses of $49.1 were deferred in accumulated other comprehensive income (loss) at April 30, 2019. In 2018, we terminated a treasury lock concurrent with the pricing of the Senior Notes due December 15, 2027, which was designated as a cash flow hedge and used to manage our exposure to interest rate volatility. 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 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 $33.0 of the gain, of which $ 8.0 , $7.8 , and $7.6 were recognized in 2019 , 2018 , and 2017 , respectively. The remaining gain will be recognized as follows: $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, 2019 Other Other Other Other Derivatives designated as hedging instruments: Interest rate contracts $ — $ 49.1 $ — $ — Total derivatives designated as hedging instruments $ — $ 49.1 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 4.8 $ 25.8 $ — $ — Foreign currency exchange contracts 1.4 0.2 — — Total derivative not designated as hedging instruments $ 6.2 $ 26.0 $ — $ — Total derivative instruments $ 6.2 $ 75.1 $ — $ — April 30, 2018 Other Other Other Other 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 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, 2019 and 2018 , we maintained cash margin account balances of $40.7 and $10.9 , 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 $207.9 , $174.1 , and $163.1 in 2019 , 2018 , and 2017 , respectively. The following table presents information on the pre-tax gains and losses recognized on interest rate contracts designated as cash flow hedges. Year Ended April 30, 2019 2018 2017 Gains (losses) recognized in other comprehensive income (loss) $ (49.1 ) $ 2.7 $ — Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense (0.4 ) (0.5 ) (0.6 ) Change in accumulated other comprehensive income (loss) $ (48.7 ) $ 3.2 $ 0.6 Included as a component of accumulated other comprehensive income (loss) at April 30, 2019 and 2018 , were deferred net pre-tax losses of $52.5 and $3.8 , respectively, related to the active and terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) was $12.1 and $0.9 at April 30, 2019 and 2018 , respectively. Approximately $0.8 of the net pre-tax loss will be recognized over the next 12 months related to the active and 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, 2019 2018 2017 Gains (losses) on commodity contracts $ (98.6 ) $ 6.5 $ (45.2 ) Gains (losses) on foreign currency exchange contracts 3.0 (5.9 ) 9.8 Total gains (losses) recognized in costs of products sold $ (95.6 ) $ 0.6 $ (35.4 ) 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, 2019 2018 2017 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (95.6 ) $ 0.6 $ (35.4 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (41.4 ) (36.7 ) (8.2 ) Unallocated derivative gains (losses) $ (54.2 ) $ 37.3 $ (27.2 ) The net cumulative unallocated derivative gains and losses at April 30, 2019 and 2018 , were losses of $52.5 and gains of $1.7 , respectively. The following table presents the gross notional value of outstanding derivative contracts. Year Ended April 30, 2019 2018 Commodity contracts $ 544.8 $ 658.0 Foreign currency exchange contracts 144.9 122.1 Interest rate contracts 800.0 — |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 April 30, 2018 Carrying Amount Carrying Amount Marketable securities and other investments $ 40.9 $ 40.9 $ 45.8 $ 45.8 Derivative financial instruments – net (68.9 ) (68.9 ) 9.7 9.7 Total long-term debt (5,484.8 ) (5,504.0 ) (4,688.0 ) (4,579.8 ) 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 Significant Significant Fair Value at April 30, 2019 Marketable securities and other investments: (A) Equity mutual funds $ 8.7 $ — $ — $ 8.7 Municipal obligations — 31.7 — 31.7 Money market funds 0.5 — — 0.5 Derivative financial instruments: (B) Commodity contracts – net (20.7 ) (0.3 ) — (21.0 ) Foreign currency exchange contracts – net (0.1 ) 1.3 — 1.2 Interest rate contracts — (49.1 ) — (49.1 ) Total long-term debt (C) (4,646.6 ) (857.4 ) — (5,504.0 ) Total financial instruments measured at fair value $ (4,658.2 ) $ (873.8 ) $ — $ (5,532.0 ) Quoted Prices in Significant Significant 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 Total 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 ) (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, 2019 , our municipal obligations are scheduled to mature as follows: $0.4 in 2020 , $1.0 in 2021 , $0.5 in 2022 , $1.5 in 2023 , and the remaining $28.3 in 2024 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. The Level 2 interest rate contracts are valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the valuation of the interest rate contracts are limited to prices that are observable for the asset or liability. For additional information, see Note 10: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. Furthermore, we recognized impairment charges of $205.1 during 2019, of which $97.9 and $107.2 related to the goodwill of the Natural Foods reporting unit within the U.S. Retail Consumer Foods segment and certain indefinite-lived trademarks in the U.S. Retail Pet Foods segment, respectively. During 2018, we recognized 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. 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, 2019 | |
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, 2019 , there were 5,380,499 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: No stock options have been granted under the 2010 Equity and Incentive Compensation Plan since 2016. Stock options granted in 2016 vested over periods 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 was equal to the market value of the shares on the date of grant, and all stock options granted and outstanding have a contractual term of 10 years . The following table is a summary of our stock option activity. Number of Stock Options Weighted-Average Outstanding at May 1, 2018 823,332 $ 113.20 Exercised — — Cancelled 423,332 113.16 Outstanding at April 30, 2019 400,000 $ 113.24 Exercisable at April 30, 2019 400,000 $ 113.24 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 stock option. The total intrinsic value for stock options both outstanding and exercisable was $3.8 at April 30, 2019 , both with an average remaining contractual term of 6.0 years . The total intrinsic value of stock options exercised during 2018 was $0.6 , and during both 2019 and 2017 , there were no stock options exercised. The closing market price of our common stock on the last trading day of 2019 was $122.63 per share. Compensation cost related to stock options is recognized ratably over the service period from the grant date through the end of the requisite service period to the extent the performance objectives are likely to be achieved. During 2019, we did no t recognize any compensation cost related to stock options, as the requisite service period ended on April 30, 2018. The compensation cost for stock option awards totaled $0.4 for the year ended April 30, 2018, and the compensation net benefit totaled $1.0 for the year ended April 30, 2017, which was included in other special project costs in the Statements of Consolidated Income. During 2017, we concluded that a portion of the performance objectives were unachievable, and therefore reversed the life-to-date compensation cost recognized. The tax expense related to the stock option expense was $0.1 for 2018 , and the net benefit was $0.4 for 2017 . There was no unrecognized compensation cost related to stock options at April 30, 2019 . We did no t receive cash from stock option exercises for the years ended April 30, 2019 and 2017. Cash received from stock option exercises was $3.9 for the year ended April 30, 2018. 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- Performance Units Weighted- Date Fair Value Outstanding at May 1, 2018 542,358 $ 122.39 84,051 $ 103.86 Granted 194,932 104.33 85,154 123.68 Converted 84,051 103.86 (84,051 ) 103.86 Vested (158,914 ) 107.16 — — Forfeited (78,851 ) 118.02 — — Outstanding at April 30, 2019 583,576 $ 118.44 85,154 $ 123.68 The weighted-average grant date fair value of equity awards other than stock options that vested in 2019 , 2018 , and 2017 was $17.0 , $17.1 , and $24.6 , respectively. The vesting date fair value of equity awards other than stock options that vested in 2019 , 2018 , and 2017 was $17.0 , $20.7 , and $32.7 , 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- Performance Units Weighted- Date Fair Value 2019 194,932 $ 104.33 85,154 $ 123.68 2018 136,127 126.80 84,051 103.86 2017 180,997 133.92 73,701 126.80 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, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13: Income Taxes Income before income taxes is as follows: Year Ended April 30, 2019 2018 2017 Domestic $ 659.2 $ 828.6 $ 836.8 Foreign 42.4 32.4 41.6 Income before income taxes $ 701.6 $ 861.0 $ 878.4 The components of the provision for income taxes are as follows: Year Ended April 30, 2019 2018 2017 Current: Federal $ 227.9 $ 277.9 $ 325.1 Foreign 16.0 7.9 11.0 State and local 36.8 40.0 29.4 Deferred: Federal (73.6 ) (802.3 ) (78.3 ) Foreign (0.1 ) 0.5 1.6 State and local (19.8 ) (1.6 ) (2.7 ) Total income tax expense (benefit) $ 187.2 $ (477.6 ) $ 286.1 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) 2019 2018 2017 Statutory federal income tax rate 21.0 % 30.4 % 35.0 % Tax reform – net impact on U.S. deferred tax assets and liabilities — (92.0 ) — Tax reform – transition tax (0.5 ) 3.0 — Goodwill impairment charges 2.9 5.5 — Sale of the U.S. baking business 2.4 — — State and local income taxes 2.7 1.9 2.1 Domestic manufacturing deduction — (3.0 ) (3.7 ) Deferred tax benefit from integration (2.4 ) — — Other items – net 0.6 (1.3 ) (0.8 ) Effective income tax rate 26.7 % (55.5 )% 32.6 % Income taxes paid $ 250.9 $ 336.8 $ 367.2 Income tax expense of $187.2 for 2019 includes the permanent tax impacts associated with the sale of the U.S. baking business and a goodwill impairment charge, partially offset by a noncash deferred tax benefit related to the integration of Ainsworth into the Company. The income tax benefit of $477.6 for 2018 included the net benefit of our discrete adjustments resulting directly from U.S. tax reform, as discussed below, partially offset by the permanent tax impact of a goodwill impairment charge. U.S. Tax Reform: On December 22, 2017, the U.S. government enacted the Act, legislating comprehensive tax reform that reduced the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadened the U.S. federal income tax base, required companies to pay a one-time transition tax, and created new taxes on certain foreign-sourced earnings as part of a new territorial tax regime. During the third quarter of 2019, we finalized our accounting for the income tax effects of enactment of the Act, as required by ASU 2018-05, Amendments to SEC Paragraphs Pursuant to SEC Staff Accounting Bulletin No. 118 , which resulted in an immaterial adjustment to the net provisional benefit of $765.8 previously recorded during 2018. The net benefit 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. Despite the completion of our accounting for the Act, the amounts recorded may change as a result of future guidance and interpretation from the Internal Revenue Service (“IRS”) and various other taxing jurisdictions, all of which are continuing to analyze the complexities and interdependencies of the provisions within the Act. Any future legislative and interpretive actions could result in additional income tax impacts which could be material in the period any such changes are enacted. 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 years ended April 30, 2019 and 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, 2017 and 2016. The tax years prior to 2016 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 2015 and for the tax years prior to 2012 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, 2019 2018 Deferred tax liabilities: Intangible assets $ 1,428.3 $ 1,393.6 Property, plant, and equipment 120.5 98.5 Other 13.4 14.2 Total deferred tax liabilities $ 1,562.2 $ 1,506.3 Deferred tax assets: Post-employment and other employee benefits $ 84.9 $ 75.5 Tax credit and loss carryforwards 10.0 0.2 Intangible assets 17.2 18.8 Inventory 7.6 5.9 Property, plant, and equipment 7.0 6.4 Hedging transactions 15.6 0.9 Other 24.8 24.3 Total deferred tax assets $ 167.1 $ 132.0 Valuation allowance (3.5 ) (2.9 ) Total deferred tax assets, less allowance $ 163.6 $ 129.1 Net deferred tax liability $ 1,398.6 $ 1,377.2 In accordance with purchase accounting, we recorded a deferred tax asset of $20.9 in respect of a federal net operating loss carryforward acquired as part of the Ainsworth acquisition, of which $10.9 was utilized in 2019. We expect to fully utilize the remaining $10.0 in 2020. We evaluate the realizability of deferred tax assets for each of the jurisdictions in which we operate. The total valuation allowance increased by a net amount of $0.6 during the year. During 2019, we repatriated $122.9 of international cash in conjunction with the restructuring of our foreign subsidiaries discussed in Note 3: Integration and Restructuring Costs. Applicable foreign withholding taxes and state income taxes, which were not significant, have been included in income tax expense. Deferred income taxes have not been provided on approximately $57.1 of remaining temporary differences related to our investments in foreign subsidiaries since these amounts remain permanently reinvested. It is not practical to estimate the amount of additional taxes that might be payable on these basis differences because of the numerous methods by which these differences could reverse. Our unrecognized tax benefits were $15.0 , $32.3 , and $40.4 , of which $12.0 , $21.5 , and $23.1 would affect the effective tax rate, if recognized, as of April 30, 2019 , 2018 , and 2017 , respectively. Our accrual for tax-related net interest and penalties totaled $3.3 , $4.0 , and $4.1 as of April 30, 2019 , 2018 , and 2017 , respectively. The amount of tax related to net interest and penalties credited to earnings totaled $0.8 for 2019, and charged to earnings totaled $0.1 and $0.3 during 2018 and 2017 , respectively. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an estimated $3.1 , primarily as a result of the expiration of statute of limitation periods. A reconciliation of our unrecognized tax benefits is as follows: 2019 2018 2017 Balance at May 1, $ 32.3 $ 40.4 $ 46.3 Increases: Current year tax positions 0.9 1.1 0.7 Prior year tax positions 0.3 0.5 1.2 Acquired businesses — — — Decreases: Prior year tax positions — — 0.9 Settlement with tax authorities 9.0 3.0 1.1 Expiration of statute of limitations periods 9.5 6.7 5.8 Balance at April 30, $ 15.0 $ 32.3 $ 40.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Apr. 30, 2019 | |
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 Net Gains (Losses) (A) Pension (B) Unrealized Accumulated Balance at May 1, 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 ) Reclassification adjustments — 0.4 7.3 — 7.7 Current period credit (charge) (19.1 ) (49.1 ) (19.1 ) 0.7 (86.6 ) Income tax benefit (expense) — 11.2 2.8 (0.2 ) 13.8 Balance at April 30, 2019 $ (35.5 ) $ (40.4 ) $ (110.0 ) $ 4.1 $ (181.8 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2019 relates to the unrealized losses on the interest rate contracts entered into in November 2018 and June 2018. The prior year credit relates to the gain on the interest rate contract terminated in 2018. For additional information, see Note 10: Derivative Financial Instruments. (B) Amortization of net losses and prior service costs was reclassified from accumulated other comprehensive income (loss) to other income (expense) – net. (C) During 2018, we adopted 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. |
Contingencies
Contingencies | 12 Months Ended |
Apr. 30, 2019 | |
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, including certain lawsuits related to the alleged price-fixing of shelf stable tuna products prior to 2011 by a business previously owned by, but divested prior to our acquisition of, Big Heart, the significant majority of which we settled during the second half of 2019 and the remainder of which we anticipate resolving in the near future. While we cannot predict with certainty the ultimate results of these proceedings or potential settlements associated with these matters, we have accrued losses for certain contingent liabilities that we have determined are probable and reasonably estimable at April 30, 2019 . 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, CERT 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 CERT 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 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 inherently 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 on the third phase regarding remedies issues was scheduled to commence on October 15, 2018. The trial did not proceed on the scheduled date as further described below. On June 15, 2018, the state agency responsible for administering the Proposition 65 program, the California Office of Environmental Health Hazard Assessment (“OEHHA”), issued a proposed regulation clarifying that cancer warnings are not required for coffee under Proposition 65. The California Court of Appeals granted defendants’ requests to stay the trial on remedies until a final determination was made on OEHHA’s proposed regulation. The California Office of Administrative Law approved the proposed regulation on June 3, 2019, and the regulation will go into effect on October 1, 2019, which should result in the dismissal of this case. However, prior to the approval of the proposed regulation, CERT challenged the authority of OEHHA to propose the regulation. Considering the regulation is final, we expect this challenge to continue. At this stage of the proceedings, prior to and without knowing whether the trial on remedies issues will move forward in light of the challenge, 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, 2019, 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 if the case proceeds. 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, the trial, or the appellate court rulings of the case, if any, cannot be predicted at this time. |
Common Shares
Common Shares | 12 Months Ended |
Apr. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | Note 16: 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 any successor plan to the Rights Agreement, dated as of May 20, 2009, between the Company and Computershare Trust Company, N.A.; • 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. Repurchase Programs: During both 2019 and 2018, we did no t repurchase any common shares under a repurchase plan authorized by the Board. At April 30, 2019 , approximately 3.6 million common shares were remaining available for repurchase pursuant to the Board’s authorizations. |
Quarterly Selected Data (Unaudi
Quarterly Selected Data (Unaudited) | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Note 17: Quarterly Results of Operations (Unaudited) The following tables summarize the unaudited quarterly results of operations for the years ended April 30, 2019 and 2018. 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net Sales $ 1,902.5 $ 2,021.5 $ 2,011.9 $ 1,902.1 Gross Profit 678.2 771.3 773.8 692.4 Net Income 133.0 188.5 121.4 71.5 Earnings per Common Share (A) : Net Income $ 1.17 $ 1.66 $ 1.07 $ 0.63 Net Income – Assuming Dilution $ 1.17 $ 1.66 $ 1.07 $ 0.63 Dividends Declared per Common Share $ 0.85 $ 0.85 $ 0.85 $ 0.85 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net Sales $ 1,748.9 $ 1,923.6 $ 1,903.3 $ 1,781.3 Gross Profit 662.1 755.0 728.5 690.5 Net Income 126.8 194.6 831.3 185.9 Earnings per Common Share (A) : Net Income $ 1.12 $ 1.71 $ 7.32 $ 1.64 Net Income – Assuming Dilution $ 1.12 $ 1.71 $ 7.32 $ 1.64 Dividends Declared per Common Share $ 0.78 $ 0.78 $ 0.78 $ 0.78 (A) Annual net income per common share may not equal the sum of the individual quarters due to differences in the average number of shares outstanding during the respective periods, primarily due to share repurchases. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2019 | |
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. 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, among others: 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: Most of our revenue is derived from the sale of food and beverage products to food retailers and foodservice distributors and operators. We recognize revenue when obligations under the terms of a contract with a customer have been satisfied. This occurs when control of our products transfers, which typically takes place upon delivery to or pick up by the customer. Amounts due from our customers are classified as trade receivables in the Consolidated Balance Sheets and require payment on a short-term basis. Transaction price is based on the list price included in our published price list, which is then reduced by the estimated impact of variable consideration, such as trade marketing and merchandising programs, discounts, unsaleable product allowances, returns, and similar items, in the same period that the revenue is recognized. To estimate the impact of these costs, we consider customer contract provisions, historical data, and our current expectations. Our trade marketing and merchandising programs consist of various promotional activities 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 2019 , 2018 , and 2017 , subsequent period adjustments were 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 36 percent, 35 percent, and 33 percent of net sales in 2019 , 2018 , and 2017 , 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. For revenue disaggregated by reportable segment, geographical region, and product category, see Note 5: Reportable Segments. |
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 primarily relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $266.6 , $245.4 , and $252.9 in 2019 , 2018 , and 2017 , respectively. |
Advertising Expense | Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $237.5 , $194.2 , and $169.8 in 2019 , 2018 , and 2017 , 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 , $56.0 , and $58.1 in 2019 , 2018 , and 2017 , 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. 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, 2019 2018 2017 Share-based compensation expense included in SD&A $ 20.1 $ 13.7 $ 22.3 Share-based compensation expense (benefit) included in other special project costs (A) 0.6 1.7 (0.3 ) Total share-based compensation expense $ 20.7 $ 15.4 $ 22.0 Related income tax benefit $ 4.9 $ 4.6 $ 7.2 (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, 2019 , total unrecognized share-based compensation cost related to nonvested share-based awards was $45.1 . The weighted-average period over which this amount is expected to be recognized is 3.3 years . 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 2019 , 2018 , and 2017 , the excess tax benefits realized upon exercise or vesting of share-based compensation were $0.5 , $1.5 , and $3.3 , 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 2019 , 2018 , and 2017 were $37.1 , $36.3 , and $31.9 , 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 tax benefit is recognized when it is more likely than not to be sustained. 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. 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 FASB 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 the Act, legislating comprehensive tax reform that reduced the U.S. federal statutory corporate tax rate from 35.0 percent to 21.0 percent effective January 1, 2018, broadened the U.S. federal income tax base, required companies to pay a one-time transition tax, and created new taxes on certain foreign-sourced earnings as part of a new territorial tax regime. 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, 2019 and 2018 , the allowance for doubtful accounts was $1.8 and $1.1 , 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 $72.5 and $80.9 at April 30, 2019 and 2018 , 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 interest rate risk associated with anticipated debt transactions, as well as to manage changes in the fair value of our long-term debt. 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 2019 , 2018 , and 2017 totaled $99.2 , $95.2 , and $101.0 , respectively. As of April 30, 2019 , our minimum operating lease obligations were as follows: $43.0 in 2020 , $36.7 in 2021 , $30.5 in 2022 , $24.8 in 2023 , and $12.3 in 2024 . 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 whenever events or changes in circumstances indicate that 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 estimated 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 its estimated fair value of the assets. 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. Furthermore, determining fair value is subject to estimates of both cash flows and discount rates, and different estimates could yield different results. There are no events or changes in circumstances of which we are aware of that indicate the carrying value of our long-lived assets may not be recoverable at April 30, 2019 . |
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, 2019 and 2018 , the fair value of these investments was $40.9 and $45.8 , respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2019 and 2018 , were unrealized pre-tax gains of $5.4 and $4.7 , 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, 2019 and 2018 . |
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, 2019 and 2018 , were foreign currency losses of $35.5 and $16.4 , respectively. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: In August 2018, the FASB issued ASU 2018-15, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40) Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. It will be effective for us on May 1, 2020, with the option to early adopt at any time prior to the effective date, and will require adoption on either a retrospective or prospective basis for all implementation costs incurred after the date of adoption. We expect to early adopt as of May 1, 2019, and apply this standard on a prospective basis. We anticipate capitalizing implementation costs of approximately $10.0 related to third-party cloud computing services during 2020. In August 2018, the FASB also issued ASU 2018-14, Compensation – Retirement Benefits – Defined Benefit Plans – General (Subtopic 715-20) Disclosure Framework – Changes to the Disclosure Requirements for Defined Benefit Plans , which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement benefit plans. The guidance removes disclosures that are no longer considered cost beneficial and adds new and clarifies certain other disclosure requirements. ASU 2018-14 will be effective for us on May 1, 2020, with the option to early adopt at any time prior to the effective date, 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 our disclosures. In August 2018, the SEC adopted the final rule under SEC Release No. 33-10532, Disclosure Update and Simplification , to eliminate or modify certain disclosure rules that are redundant, outdated, or duplicative of U.S. GAAP or other regulatory requirements. Among other changes, the amendments remove the requirement to provide the ratio of earnings to fixed charges exhibit and reduce the requirements for supplemental pro forma information related to business combinations. The annual requirement to disclose dividends declared and the high and low trading prices of our common stock each quarter of the two previous years is also removed. In addition, the disclosure requirements related to the analysis of shareholders' equity are expanded for interim financial statements. An analysis of the changes in each caption of shareholders’ equity presented in the balance sheet must be provided in a note or separate statement, as well as the amount of dividends per share for each class of shares. Although this rule was effective on November 5, 2018, the SEC is allowing an extended transition period to implement the expanded shareholders’ equity disclosure requirements, which will be effective for us on May 1, 2019. While the new shareholders’ equity disclosure requirements will impact our interim financial statements beginning in 2020, the amendments in this rule did not have a material impact on our financial statements and disclosures. In March 2017, the FASB issued ASU 2017-07, Compensation – Retirement Benefits (Topic 715) Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost , which requires the service cost component of the net periodic pension cost to be presented separately from the other components of the net periodic pension cost in the income statement. Additionally, only the service cost component of the net periodic pension cost is eligible for capitaliza tion. ASU 2017-07 was effective for us on May 1, 2018. The change in presentation of service cost was applied retrospectively, while the capitalization of service cost will be applied on a prospective basis. The adoption of this ASU did not have a material impact on our financial statements and disclosures. 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 was effective for us on May 1, 2018, and required adoption on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. The adoption of this ASU did not have an 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 makes changes to how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU 2016-15 was effective for us on May 1, 2018, and required adoption on a retrospective basis. The adoption of this ASU did not impact the presentation of our financial statements and disclosures. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which requires lessees to recognize a right-of-use asset and lease liability for all leases with a term of more than 12 months. ASU 2016-02 will be effective for us on May 1, 2019, and requires a modified retrospective application. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) Targeted Improvements , which provides an additional transition method that allows entities to initially apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption without restating prior periods. We plan to utilize this transition method upon adoption, and as a result, we will not adjust comparative period financial information or make the new required lease disclosures for periods before the effective date. Our preparation for the adoption of ASU 2016-02 is substantially complete. We have compiled an inventory of our lease arrangements in order to determine the impact the new guidance will have on our financial statements and disclosures and have implemented new lease accounting software in preparation for the standard’s additional reporting requirements. We have elected certain practical expedients available under the guidance, including a package of practical expedients which allows us to not reassess prior conclusions related to contracts containing leases, lease classification, and initial direct costs. Based on our assessment to date, we expect that the adoption of ASU 2016-02 will result in the recognition of right-of-use assets and corresponding lease liabilities in the range of $160.0 to $175.0 in our Consolidated Balance Sheet as of May 1, 2019. We do not expect the new standard to have a material impact on our Statement of Consolidated Income or Statement of Consolidated Cash Flows. 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. We adopted the requirements of ASU 2014-09 and all related amendments on May 1, 2018, using the modified retrospective transition method. The adoption did not have an impact on our financial statements. The additional disclosures required are presented above within the Revenue Recognition accounting policy and within Note 5: Reportable Segments. |
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, animal protein meals, oils and fats, 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 K-Cup ® pods and 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 raw 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, and syrups, 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, 24 percent are covered by union contracts at nine manufacturing locations. The contracts vary in term, with seven contracts expiring in 2020, representing 19 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, 2019 | |
Accounting Policies [Abstract] | |
Schedule of share-based payments | The following table summarizes amounts related to share-based payments. Year Ended April 30, 2019 2018 2017 Share-based compensation expense included in SD&A $ 20.1 $ 13.7 $ 22.3 Share-based compensation expense (benefit) included in other special project costs (A) 0.6 1.7 (0.3 ) Total share-based compensation expense $ 20.7 $ 15.4 $ 22.0 Related income tax benefit $ 4.9 $ 4.6 $ 7.2 (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. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Business Combinations [Abstract] | |
Final fair values of assets acquired and liabilities assumed | The following table summarizes the final fair values of the assets acquired and liabilities assumed at the acquisition date. Assets acquired: Cash and cash equivalents $ 1.6 Trade receivables 66.3 Inventories 97.8 Other current assets 4.8 Property, plant, and equipment 83.8 Goodwill 617.8 Other intangible assets 1,260.6 Other noncurrent assets 0.3 Total assets acquired $ 2,133.0 Liabilities assumed: Current liabilities $ 83.3 Deferred tax liabilities 126.1 Other noncurrent liabilities 19.0 Total liabilities assumed $ 228.4 Net assets acquired $ 1,904.6 |
Purchase price allocated to identifiable other intangible assets | The purchase price was allocated to the identifiable other intangible assets acquired as follows: Intangible assets with finite lives: Customer and contractual relationships (25-year useful life) $ 951.0 Trademarks (5-year useful life) 1.6 Intangible assets with indefinite lives: Trademarks 308.0 Total other intangible assets $ 1,260.6 |
Business acquisition pro forma information | Had the transaction occurred on May 1, 2017, unaudited pro forma consolidated results for 2019 and 2018, would have been as follows: Year Ended April 30, 2019 2018 Net sales $ 7,865.4 $ 8,036.9 Net income 522.6 1,234.6 |
Integration and Restructuring_2
Integration and Restructuring Costs (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Restructuring and Related Activities [Abstract] | |
Integration Costs | The following table summarizes our integration costs incurred related to the Ainsworth acquisition. 2019 Total Costs Employee-related costs $ 15.5 $ 15.5 Other transition and termination costs 16.6 16.6 Total integration costs $ 32.1 $ 32.1 |
Restructuring and Related Costs | The following table summarizes our final restructuring costs incurred related to the organization optimization program. 2019 2018 2017 Total Costs Employee-related costs $ 24.9 $ 10.1 $ 12.4 $ 48.7 Other transition and termination costs 7.1 12.6 6.2 25.9 Total restructuring costs $ 32.0 $ 22.7 $ 18.6 $ 74.6 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Segment Reporting [Abstract] | |
Segmental information related to depreciation, amortization, and impairment charges, and property, plant, and equipment additions | Year Ended April 30, 2019 2018 2017 Net sales: U.S. Retail Coffee $ 2,122.3 $ 2,086.8 $ 2,102.3 U.S. Retail Consumer Foods 1,761.5 1,985.6 2,072.6 U.S. Retail Pet Foods 2,879.5 2,165.3 2,131.8 International and Away From Home 1,074.7 1,119.4 1,085.6 Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 Segment profit: U.S. Retail Coffee $ 676.3 $ 612.4 $ 679.7 U.S. Retail Consumer Foods 406.1 475.3 457.1 U.S. Retail Pet Foods 503.4 439.4 479.0 International and Away From Home 198.5 200.1 190.9 Total segment profit $ 1,784.3 $ 1,727.2 $ 1,806.7 Amortization (240.3 ) (206.8 ) (207.3 ) Goodwill impairment charges (97.9 ) (145.0 ) — Other intangible assets impairment charges (107.2 ) (31.9 ) (133.2 ) Interest expense – net (207.9 ) (174.1 ) (163.1 ) Unallocated derivative gains (losses) (54.2 ) 37.3 (27.2 ) Cost of products sold – special project costs (A) — (3.9 ) (5.7 ) Other special project costs (A) (64.1 ) (45.4 ) (76.9 ) Corporate administrative expenses (292.0 ) (287.5 ) (313.8 ) Other income (expense) – net (19.1 ) (8.9 ) (1.1 ) Income before income taxes $ 701.6 $ 861.0 $ 878.4 Assets: U.S. Retail Coffee $ 4,771.9 $ 4,815.4 $ 4,909.9 U.S. Retail Consumer Foods 2,850.8 3,217.5 3,157.2 U.S. Retail Pet Foods 7,847.0 5,932.3 6,232.9 International and Away From Home 1,019.5 1,043.9 1,053.4 Unallocated (B) 222.1 292.1 286.3 Total assets $ 16,711.3 $ 15,301.2 $ 15,639.7 Depreciation, amortization, and impairment charges: U.S. Retail Coffee $ 98.3 $ 96.6 $ 95.7 U.S. Retail Consumer Foods 162.4 80.2 73.2 U.S. Retail Pet Foods 301.4 314.8 280.8 International and Away From Home 52.8 57.8 61.9 Unallocated (C) 36.5 40.6 40.6 Total depreciation, amortization, and impairment charges $ 651.4 $ 590.0 $ 552.2 Additions to property, plant, and equipment: U.S. Retail Coffee $ 63.9 $ 89.4 $ 40.9 U.S. Retail Consumer Foods 138.9 168.9 49.7 U.S. Retail Pet Foods 136.0 34.3 70.5 International and Away From Home 21.0 29.3 31.3 Total additions to property, plant, and equipment $ 359.8 $ 321.9 $ 192.4 (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, 2019 2018 2017 Net sales: United States $ 7,298.0 $ 6,786.5 $ 6,865.1 International: Canada $ 421.9 $ 431.8 $ 414.3 All other international 118.1 138.8 112.9 Total international $ 540.0 $ 570.6 $ 527.2 Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 Assets: United States $ 16,338.0 $ 14,828.2 $ 15,214.3 International: Canada $ 362.1 $ 428.7 $ 380.9 All other international 11.2 44.3 44.5 Total international $ 373.3 $ 473.0 $ 425.4 Total assets $ 16,711.3 $ 15,301.2 $ 15,639.7 Long-lived assets (excluding goodwill and other intangible assets): United States $ 2,037.5 $ 1,869.8 $ 1,757.1 International: Canada $ 18.9 $ 17.4 $ 13.4 All other international — 0.3 0.4 Total international $ 18.9 $ 17.7 $ 13.8 Total long-lived assets (excluding goodwill and other intangible assets) $ 2,056.4 $ 1,887.5 $ 1,770.9 |
Product sales information | The following table presents product category information. Year Ended April 30, 2019 2018 2017 Primary Reportable Segment (A) Coffee $ 2,479.4 $ 2,469.7 $ 2,492.1 U.S. Retail Coffee Dog food 1,313.1 756.8 718.6 U.S. Retail Pet Foods Pet snacks 815.1 767.2 770.7 U.S. Retail Pet Foods Cat food 812.8 702.5 704.7 U.S. Retail Pet Foods Peanut butter 756.6 745.1 718.4 U.S. Retail Consumer Foods Fruit spreads 341.6 353.8 348.6 U.S. Retail Consumer Foods Frozen handheld 289.0 254.1 226.2 U.S. Retail Consumer Foods Shortening and oils 253.6 258.1 307.2 U.S. Retail Consumer Foods Baking mixes and ingredients 185.2 437.9 484.2 U.S. Retail Consumer Foods Portion control 162.7 160.3 151.9 International and Away From Home Juices and beverages 123.9 140.8 146.0 U.S. Retail Consumer Foods Other 305.0 310.8 323.7 International and Away From Home Total net sales $ 7,838.0 $ 7,357.1 $ 7,392.3 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 2018 2017 Net income $ 514.4 $ 1,338.6 $ 592.3 Less: Net income allocated to participating securities 2.6 6.8 2.8 Net income allocated to common stockholders $ 511.8 $ 1,331.8 $ 589.5 Weighted-average common shares outstanding 113.1 113.0 115.5 Add: Dilutive effect of stock options — — 0.1 Weighted-average common shares outstanding – assuming dilution 113.1 113.0 115.6 Net income per common share $ 4.52 $ 11.79 $ 5.11 Net income per common share – assuming dilution $ 4.52 $ 11.78 $ 5.10 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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 U.S. Retail U.S. Retail International Total Balance at May 1, 2017 $ 2,090.9 $ 1,599.0 $ 1,969.5 $ 417.7 $ 6,077.1 Impairment charge (A) — — (145.0 ) — (145.0 ) Other (B) — 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 Acquisition — — 617.8 — 617.8 Divestiture — (144.3 ) — — (144.3 ) Impairment charge (A) — (97.9 ) — — (97.9 ) Other (B) — — — (6.9 ) (6.9 ) Balance at April 30, 2019 $ 2,090.9 $ 1,358.2 $ 2,442.3 $ 419.5 $ 6,310.9 (A) The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. (B) The amounts classified as other represent foreign currency exchange adjustments. |
Other intangible assets and related accumulated amortization, impairment charges, and foreign currency exchange | The following table summarizes our other intangible assets and related accumulated amortization and impairment charges, including foreign currency exchange adjustments. April 30, 2019 April 30, 2018 Acquisition Accumulated Net Acquisition Accumulated Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 4,471.1 $ 1,156.8 $ 3,314.3 $ 3,520.1 $ 959.3 $ 2,560.8 Patents and technology 168.5 127.4 41.1 168.5 114.4 54.1 Trademarks 499.9 166.9 333.0 556.4 145.0 411.4 Total intangible assets subject to amortization $ 5,139.5 $ 1,451.1 $ 3,688.4 $ 4,245.0 $ 1,218.7 $ 3,026.3 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 3,321.1 $ 290.7 $ 3,030.4 $ 3,078.1 $ 187.9 $ 2,890.2 Total other intangible assets $ 8,460.6 $ 1,741.8 $ 6,718.8 $ 7,323.1 $ 1,406.6 $ 5,916.5 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Long-term debt consists of the following: April 30, 2019 April 30, 2018 Principal Carrying Amount (A) Principal Carrying (A) 2.20% Senior Notes due December 6, 2019 $ 300.0 $ 299.5 $ 300.0 $ 298.6 2.50% Senior Notes due March 15, 2020 500.0 499.0 500.0 497.8 3.50% Senior Notes due October 15, 2021 750.0 768.4 750.0 775.6 3.00% Senior Notes due March 15, 2022 400.0 398.0 400.0 397.3 3.50% Senior Notes due March 15, 2025 1,000.0 995.2 1,000.0 994.4 3.38% Senior Notes due December 15, 2027 500.0 496.2 500.0 495.8 4.25% Senior Notes due March 15, 2035 650.0 643.5 650.0 643.1 4.38% Senior Notes due March 15, 2045 600.0 586.0 600.0 585.4 Term Loan Credit Agreement due May 14, 2021 800.0 799.0 — — Total long-term debt $ 5,500.0 $ 5,484.8 $ 4,700.0 $ 4,688.0 Current portion of long-term debt 800.0 798.5 — — Total long-term debt, less current portion $ 4,700.0 $ 4,686.3 $ 4,700.0 $ 4,688.0 (A) Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 2018 2017 2019 2018 2017 Service cost $ 2.1 $ 5.2 $ 12.7 $ 1.9 $ 2.0 $ 2.3 Interest cost 23.2 21.6 25.3 2.3 2.1 2.6 Expected return on plan assets (26.8 ) (28.8 ) (29.3 ) — — — Amortization of prior service cost (credit) 0.9 0.9 1.1 (1.3 ) (1.4 ) (1.5 ) Amortization of net actuarial loss (gain) 8.3 11.5 13.8 (0.6 ) (0.3 ) (0.2 ) Curtailment loss (gain) 0.3 — — — — — Settlement loss (gain) 7.1 2.3 (0.7 ) — — — Termination benefit cost — — — 0.2 — — Net periodic benefit cost $ 15.1 $ 12.7 $ 22.9 $ 2.5 $ 2.4 $ 3.2 |
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 $ (2.0 ) $ (0.2 ) $ 3.0 Net actuarial gain (loss) arising during the year (22.9 ) 3.5 1.5 (2.8 ) 5.5 2.3 Amortization of prior service cost (credit) 0.9 0.9 1.1 (1.3 ) (1.4 ) (1.5 ) Amortization of net actuarial loss (gain) 8.3 11.5 13.8 (0.6 ) (0.3 ) (0.2 ) Curtailment loss (gain) 0.3 — 28.8 — — 0.1 Settlement loss (gain) 7.1 2.3 (0.7 ) — — — Foreign currency translation 1.2 (1.8 ) 2.5 — (0.1 ) — Net change for year $ (5.1 ) $ 16.4 $ 49.1 $ (6.7 ) $ 3.5 $ 3.7 |
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 4.17 % 3.95 % 3.85 % 4.13 % 3.86 % 3.80 % Discount rate used to determine service cost 4.29 4.20 3.85 4.23 4.06 3.80 Discount rate used to determine interest cost 3.87 3.38 3.85 3.79 3.24 3.80 Expected return on plan assets 5.66 6.27 6.27 — — — Rate of compensation increase 3.59 3.78 3.96 — — — Canadian plans: Discount rate used to determine benefit obligation 3.57 % 3.22 % 3.60 % 3.55 % 3.19 % 3.50 % Discount rate used to determine service cost 3.64 3.39 3.60 3.77 3.70 3.50 Discount rate used to determine interest cost 3.23 2.60 3.60 3.23 2.58 3.50 Expected return on plan assets 5.25 5.00 5.25 — — — 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, 2019 2018 2019 2018 Change in benefit obligation: Benefit obligation at beginning of year $ 639.7 $ 677.3 $ 65.9 $ 70.7 Service cost 2.1 5.2 1.9 2.0 Interest cost 23.2 21.6 2.3 2.1 Amendments — — 2.0 0.2 Actuarial loss (gain) 17.0 (10.8 ) 2.8 (5.5 ) Benefits paid (33.9 ) (36.0 ) (4.7 ) (4.3 ) Foreign currency translation adjustments (3.6 ) 5.8 (0.3 ) 0.7 Curtailment (1.3 ) — — — Settlement (27.7 ) (23.4 ) — — Termination benefit cost — — 0.2 — Benefit obligation at end of year $ 615.5 $ 639.7 $ 70.1 $ 65.9 Change in plan assets: Fair value of plan assets at beginning of year $ 497.0 $ 489.2 $ — $ — Actual return on plan assets 19.6 21.5 — — Company contributions 29.3 39.6 4.7 4.3 Benefits paid (33.9 ) (36.0 ) (4.7 ) (4.3 ) Settlement (27.7 ) (23.4 ) — — Foreign currency translation adjustments (4.0 ) 6.1 — — Fair value of plan assets at end of year $ 480.3 $ 497.0 $ — $ — Funded status of the plans $ (135.2 ) $ (142.7 ) $ (70.1 ) $ (65.9 ) Defined benefit pensions $ (139.1 ) $ (144.1 ) $ — $ — Other noncurrent assets 8.0 9.5 — — Accrued compensation (4.1 ) (8.1 ) (5.1 ) (4.0 ) Other postretirement benefits — — (65.0 ) (61.9 ) Net benefit liability $ (135.2 ) $ (142.7 ) $ (70.1 ) $ (65.9 ) |
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, 2019 2018 2019 2018 Net actuarial gain (loss) $ (157.2 ) $ (150.9 ) $ 10.2 $ 13.6 Prior service credit (cost) (3.5 ) (4.7 ) 5.8 9.1 Total recognized in accumulated other comprehensive income (loss) $ (160.7 ) $ (155.6 ) $ 16.0 $ 22.7 |
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, 2019 2018 2019 2018 U.S. plans: Discount rate 3.99 % 4.17 % 3.91 % 4.13 % Rate of compensation increase 3.56 3.59 — — Canadian plans: Discount rate 3.21 % 3.57 % 3.19 % 3.55 % 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, 2019 : One Percentage Point Increase Decrease Effect on total service and interest cost components $ — $ — Effect on benefit obligation 1.1 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 58 and 59. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, 2019 2018 2019 2018 Benefit obligation at end of year $ 84.8 $ 87.6 $ 7.1 $ 7.3 Fair value of plan assets at end of year 92.1 96.4 — — Funded status of the plans $ 7.3 $ 8.8 $ (7.1 ) $ (7.3 ) Components of net periodic benefit cost: Service cost $ 0.1 $ 0.2 $ — $ — Interest cost 2.7 2.4 0.2 0.3 Expected return on plan assets (4.8 ) (5.0 ) — — Amortization of net actuarial loss (gain) 0.9 0.8 — — Net periodic benefit cost (credit) $ (1.1 ) $ (1.6 ) $ 0.2 $ 0.3 Changes in plan assets: Company contributions $ 0.1 $ 0.9 $ 0.5 $ 0.5 Benefits paid (6.5 ) (6.8 ) (0.5 ) (0.5 ) Actual return on plan assets 6.1 1.5 — — Foreign currency translation (3.9 ) 6.0 — — |
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, 2019 2018 Accumulated benefit obligation for all pension plans $ 605.6 $ 627.9 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 521.5 $ 541.3 Fair value of plan assets 388.2 400.6 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 531.4 $ 552.9 Fair value of plan assets 388.2 400.6 |
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 Significant Significant Plan Assets At April 30, 2019 Cash and cash equivalents (A) $ 0.5 $ — $ — $ 0.5 Equity securities: U.S. (B) 65.7 1.8 — 67.5 International (C) 74.3 9.2 — 83.5 Fixed-income securities: Bonds (D) 220.6 — — 220.6 Fixed income (E) 51.8 — — 51.8 Other types of investments (F) — 46.3 — 46.3 Total financial assets measured at fair value $ 412.9 $ 57.3 $ — $ 470.2 Total financial assets measured at net asset value (G) 10.1 Total plan assets $ 480.3 Quoted Prices in Significant Significant 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 (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 , as well as various U.S. Treasury Separate Trading of Registered Interest and Principal 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, a common collective trust fund investing in direct commercial property funds, and a private limited investment partnership in 2018. 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 in 2018 is classified as a Level 3 asset. The investments in this partnership were valued at estimated fair value based on audited financial statements received from the general partner. (G) This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds, as well as a private limited investment partnership. The fair value estimates of the private equity fund and private limited investment partnership are 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 and private limited investment partnership are 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 and private limited investment partnership are removed from the total financial assets measured at fair value and disclosed separately. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 Other Other Other Other Derivatives designated as hedging instruments: Interest rate contracts $ — $ 49.1 $ — $ — Total derivatives designated as hedging instruments $ — $ 49.1 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 4.8 $ 25.8 $ — $ — Foreign currency exchange contracts 1.4 0.2 — — Total derivative not designated as hedging instruments $ 6.2 $ 26.0 $ — $ — Total derivative instruments $ 6.2 $ 75.1 $ — $ — April 30, 2018 Other Other Other Other 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 |
Pre-tax gains and losses recognized on interest rate contracts designated as cash flow hedges | The following table presents information on the pre-tax gains and losses recognized on interest rate contracts designated as cash flow hedges. Year Ended April 30, 2019 2018 2017 Gains (losses) recognized in other comprehensive income (loss) $ (49.1 ) $ 2.7 $ — Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense (0.4 ) (0.5 ) (0.6 ) Change in accumulated other comprehensive income (loss) $ (48.7 ) $ 3.2 $ 0.6 |
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, 2019 2018 2017 Gains (losses) on commodity contracts $ (98.6 ) $ 6.5 $ (45.2 ) Gains (losses) on foreign currency exchange contracts 3.0 (5.9 ) 9.8 Total gains (losses) recognized in costs of products sold $ (95.6 ) $ 0.6 $ (35.4 ) |
Schedule of unallocated derivative (losses) gains | The following table presents the activity in unallocated derivative gains and losses. Year Ended April 30, 2019 2018 2017 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (95.6 ) $ 0.6 $ (35.4 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (41.4 ) (36.7 ) (8.2 ) Unallocated derivative gains (losses) $ (54.2 ) $ 37.3 $ (27.2 ) |
Outstanding derivative contracts | The following table presents the gross notional value of outstanding derivative contracts. Year Ended April 30, 2019 2018 Commodity contracts $ 544.8 $ 658.0 Foreign currency exchange contracts 144.9 122.1 Interest rate contracts 800.0 — |
Other Financial Instruments a_2
Other Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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, 2019 April 30, 2018 Carrying Amount Carrying Amount Marketable securities and other investments $ 40.9 $ 40.9 $ 45.8 $ 45.8 Derivative financial instruments – net (68.9 ) (68.9 ) 9.7 9.7 Total long-term debt (5,484.8 ) (5,504.0 ) (4,688.0 ) (4,579.8 ) |
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 Significant Significant Fair Value at April 30, 2019 Marketable securities and other investments: (A) Equity mutual funds $ 8.7 $ — $ — $ 8.7 Municipal obligations — 31.7 — 31.7 Money market funds 0.5 — — 0.5 Derivative financial instruments: (B) Commodity contracts – net (20.7 ) (0.3 ) — (21.0 ) Foreign currency exchange contracts – net (0.1 ) 1.3 — 1.2 Interest rate contracts — (49.1 ) — (49.1 ) Total long-term debt (C) (4,646.6 ) (857.4 ) — (5,504.0 ) Total financial instruments measured at fair value $ (4,658.2 ) $ (873.8 ) $ — $ (5,532.0 ) Quoted Prices in Significant Significant 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 Total 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 ) (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, 2019 , our municipal obligations are scheduled to mature as follows: $0.4 in 2020 , $1.0 in 2021 , $0.5 in 2022 , $1.5 in 2023 , and the remaining $28.3 in 2024 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. The Level 2 interest rate contracts are valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the valuation of the interest rate contracts are limited to prices that are observable for the asset or liability. For additional information, see Note 10: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
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 Outstanding at May 1, 2018 823,332 $ 113.20 Exercised — — Cancelled 423,332 113.16 Outstanding at April 30, 2019 400,000 $ 113.24 Exercisable at April 30, 2019 400,000 $ 113.24 |
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- Performance Units Weighted- Date Fair Value Outstanding at May 1, 2018 542,358 $ 122.39 84,051 $ 103.86 Granted 194,932 104.33 85,154 123.68 Converted 84,051 103.86 (84,051 ) 103.86 Vested (158,914 ) 107.16 — — Forfeited (78,851 ) 118.02 — — Outstanding at April 30, 2019 583,576 $ 118.44 85,154 $ 123.68 |
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- Performance Units Weighted- Date Fair Value 2019 194,932 $ 104.33 85,154 $ 123.68 2018 136,127 126.80 84,051 103.86 2017 180,997 133.92 73,701 126.80 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income (loss) before income taxes | Income before income taxes is as follows: Year Ended April 30, 2019 2018 2017 Domestic $ 659.2 $ 828.6 $ 836.8 Foreign 42.4 32.4 41.6 Income before income taxes $ 701.6 $ 861.0 $ 878.4 |
Components of the provision for income taxes | The components of the provision for income taxes are as follows: Year Ended April 30, 2019 2018 2017 Current: Federal $ 227.9 $ 277.9 $ 325.1 Foreign 16.0 7.9 11.0 State and local 36.8 40.0 29.4 Deferred: Federal (73.6 ) (802.3 ) (78.3 ) Foreign (0.1 ) 0.5 1.6 State and local (19.8 ) (1.6 ) (2.7 ) Total income tax expense (benefit) $ 187.2 $ (477.6 ) $ 286.1 |
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) 2019 2018 2017 Statutory federal income tax rate 21.0 % 30.4 % 35.0 % Tax reform – net impact on U.S. deferred tax assets and liabilities — (92.0 ) — Tax reform – transition tax (0.5 ) 3.0 — Goodwill impairment charges 2.9 5.5 — Sale of the U.S. baking business 2.4 — — State and local income taxes 2.7 1.9 2.1 Domestic manufacturing deduction — (3.0 ) (3.7 ) Deferred tax benefit from integration (2.4 ) — — Other items – net 0.6 (1.3 ) (0.8 ) Effective income tax rate 26.7 % (55.5 )% 32.6 % Income taxes paid $ 250.9 $ 336.8 $ 367.2 |
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, 2019 2018 Deferred tax liabilities: Intangible assets $ 1,428.3 $ 1,393.6 Property, plant, and equipment 120.5 98.5 Other 13.4 14.2 Total deferred tax liabilities $ 1,562.2 $ 1,506.3 Deferred tax assets: Post-employment and other employee benefits $ 84.9 $ 75.5 Tax credit and loss carryforwards 10.0 0.2 Intangible assets 17.2 18.8 Inventory 7.6 5.9 Property, plant, and equipment 7.0 6.4 Hedging transactions 15.6 0.9 Other 24.8 24.3 Total deferred tax assets $ 167.1 $ 132.0 Valuation allowance (3.5 ) (2.9 ) Total deferred tax assets, less allowance $ 163.6 $ 129.1 Net deferred tax liability $ 1,398.6 $ 1,377.2 |
Reconciliation of unrecognized tax benefits | A reconciliation of our unrecognized tax benefits is as follows: 2019 2018 2017 Balance at May 1, $ 32.3 $ 40.4 $ 46.3 Increases: Current year tax positions 0.9 1.1 0.7 Prior year tax positions 0.3 0.5 1.2 Acquired businesses — — — Decreases: Prior year tax positions — — 0.9 Settlement with tax authorities 9.0 3.0 1.1 Expiration of statute of limitations periods 9.5 6.7 5.8 Balance at April 30, $ 15.0 $ 32.3 $ 40.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
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 Net Gains (Losses) (A) Pension (B) Unrealized Accumulated Balance at May 1, 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 ) Reclassification adjustments — 0.4 7.3 — 7.7 Current period credit (charge) (19.1 ) (49.1 ) (19.1 ) 0.7 (86.6 ) Income tax benefit (expense) — 11.2 2.8 (0.2 ) 13.8 Balance at April 30, 2019 $ (35.5 ) $ (40.4 ) $ (110.0 ) $ 4.1 $ (181.8 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2019 relates to the unrealized losses on the interest rate contracts entered into in November 2018 and June 2018. The prior year credit relates to the gain on the interest rate contract terminated in 2018. For additional information, see Note 10: Derivative Financial Instruments. (B) Amortization of net losses and prior service costs was reclassified from accumulated other comprehensive income (loss) to other income (expense) – net. (C) During 2018, we adopted 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. |
Quarterly Selected Data (Unau_2
Quarterly Selected Data (Unaudited) (Tables) | 12 Months Ended |
Apr. 30, 2019 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Information | The following tables summarize the unaudited quarterly results of operations for the years ended April 30, 2019 and 2018. 2019 First Quarter Second Quarter Third Quarter Fourth Quarter Net Sales $ 1,902.5 $ 2,021.5 $ 2,011.9 $ 1,902.1 Gross Profit 678.2 771.3 773.8 692.4 Net Income 133.0 188.5 121.4 71.5 Earnings per Common Share (A) : Net Income $ 1.17 $ 1.66 $ 1.07 $ 0.63 Net Income – Assuming Dilution $ 1.17 $ 1.66 $ 1.07 $ 0.63 Dividends Declared per Common Share $ 0.85 $ 0.85 $ 0.85 $ 0.85 2018 First Quarter Second Quarter Third Quarter Fourth Quarter Net Sales $ 1,748.9 $ 1,923.6 $ 1,903.3 $ 1,781.3 Gross Profit 662.1 755.0 728.5 690.5 Net Income 126.8 194.6 831.3 185.9 Earnings per Common Share (A) : Net Income $ 1.12 $ 1.71 $ 7.32 $ 1.64 Net Income – Assuming Dilution $ 1.12 $ 1.71 $ 7.32 $ 1.64 Dividends Declared per Common Share $ 0.78 $ 0.78 $ 0.78 $ 0.78 (A) Annual net income per common share may not equal the sum of the individual quarters due to differences in the average number of shares outstanding during the respective periods, primarily due to share repurchases. |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 20.7 | $ 15.4 | $ 22 | |
Related income tax benefit | 4.9 | 4.6 | 7.2 | |
Selling, Distribution And Administrative Expense [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | 20.1 | 13.7 | 22.3 | |
Other Special Project Costs [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation expense | $ 0.6 | $ 1.7 | $ (0.3) | [1] |
[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, 2019reporting_unit | Apr. 30, 2018USD ($) | Dec. 31, 2017 | Apr. 30, 2019USD ($)FacilityContract | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) |
Accounting Policies (Additional Textual) [Abstract] | ||||||
Subsequent Period Adjustments Included In Consolidated Pretax Income And Cash Provided By Operating Activities, Percent | 2.00% | 2.00% | 2.00% | |||
Promotional Expenditures As Percentage Of Net Sales | 36.00% | 35.00% | 33.00% | |||
Advertising expense | $ 237.5 | $ 194.2 | $ 169.8 | |||
Excess tax benefits realized upon exercise or vesting of share-based compensation | 0.5 | 1.5 | 3.3 | |||
Charges for defined contribution plans | 37.1 | 36.3 | 31.9 | |||
Allowance for doubtful accounts | $ 1.1 | 1.8 | 1.1 | |||
Rent expense | 99.2 | 95.2 | $ 101 | |||
Minimum operating lease obligations in 2020 | 43 | |||||
Minimum operating lease obligations in 2021 | 36.7 | |||||
Minimum operating lease obligations in 2022 | 30.5 | |||||
Minimum operating lease obligations in 2023 | 24.8 | |||||
Minimum operating lease obligations in 2024 | 12.3 | |||||
Number of reporting units | reporting_unit | 7 | |||||
Unrealized pre-tax gains included in accumulated other comprehensive loss on available-for-sale securities | $ 5.4 | $ 4.7 | ||||
Number of union contracts expiring in 2020 | Contract | 7 | |||||
Facilities covered by union contracts | Facility | 9 | |||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 21.00% | 30.40% | 35.00% | |
Schedule of Equity Method Investments [Line Items] | ||||||
Proceeds from sale of investment | $ 0 | $ 0 | $ 40.6 | |||
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 | 1 year | |||||
Compensation cost related to nonvested share-based awards not yet recognized | $ 45.1 | |||||
Weighted-average period of recognition | 3 years 3 months 18 days | |||||
Foreign currency loss | $ (116.7) | $ (181.8) | (116.7) | |||
Selling, Distribution And Administrative Expense [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Costs and Expenses | 266.6 | 245.4 | 252.9 | |||
Research and development costs | 56 | 56 | $ 58.1 | |||
Foreign Currency Translation Adjustment [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Foreign currency loss | (16.4) | $ (35.5) | (16.4) | |||
Machinery and equipment [Member] | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 20 years | |||||
Machinery and equipment [Member] | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 3 years | |||||
Capitalized software costs [Member] | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 7 years | |||||
Capitalized software costs [Member] | Minimum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 1 year | |||||
Buildings, fixtures, and improvements [Member] | Maximum | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Estimated useful life of assets | 40 years | |||||
Buildings, fixtures, and improvements [Member] | Minimum | ||||||
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% | |||||
Numi, Inc. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Percentage of equity interest acquired | 44.00% | |||||
Unionized Employees [Member] | Number of Employees, Total [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of concentration risk | 24.00% | |||||
Unionized Employees Subject to Union Contracts Expiring within One Year | Number of Employees, Total [Member] | ||||||
Concentration Risk [Line Items] | ||||||
Percentage of concentration risk | 19.00% | |||||
Work In Process Inventory [Member] | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Work-in-process inventory | 80.9 | $ 72.5 | 80.9 | |||
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 | $ 40.9 | $ 45.8 | |||
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 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for share-based payments | 3 years | |||||
Employee Stock Option [Member] | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period for share-based payments | 1 year |
Accounting Policies - Narrati_2
Accounting Policies - Narrative (Details 1) $ in Millions | Apr. 30, 2019USD ($) |
Accounting Standards Update 2018-15 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Anticipated Impact of Standard Adoption | $ 10 |
Minimum | Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Anticipated Impact of Standard Adoption | 160 |
Maximum | Accounting Standards Update 2016-02 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Anticipated Impact of Standard Adoption | $ 175 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) - USD ($) $ in Millions | Apr. 30, 2019 | May 14, 2018 | Apr. 30, 2018 | Apr. 30, 2017 |
Assets acquired: | ||||
Goodwill | $ 6,310.9 | $ 5,942.2 | $ 6,077.1 | |
Ainsworth [Member] | ||||
Assets acquired: | ||||
Cash and cash equivalents | $ 1.6 | |||
Trade receivables | 66.3 | |||
Inventories | 97.8 | |||
Other current assets | 4.8 | |||
Property, plant, and equipment | 83.8 | |||
Goodwill | 617.8 | |||
Other intangible assets | 1,260.6 | |||
Other noncurrent assets | 0.3 | |||
Total assets acquired | 2,133 | |||
Liabilities assumed: | ||||
Current liabilities | 83.3 | |||
Deferred tax liabilities | 126.1 | |||
Other noncurrent liabilities | 19 | |||
Total liabilities assumed | 228.4 | |||
Net assets acquired | $ 1,904.6 |
Acquisition Acquisition (Deta_2
Acquisition Acquisition (Details 1) - USD ($) $ in Millions | May 14, 2018 | Apr. 30, 2019 |
Acquisition [Line Items] | ||
Useful life | 23 years | |
Ainsworth [Member] | ||
Acquisition [Line Items] | ||
Other intangible assets | $ 1,260.6 | |
Customer And Contractual Relationships [Member] | ||
Acquisition [Line Items] | ||
Useful life | 24 years | |
Customer And Contractual Relationships [Member] | Ainsworth [Member] | ||
Acquisition [Line Items] | ||
Useful life | 25 years | |
Intangible assets with finite lives | $ 951 | |
Trademarks [Member] | ||
Acquisition [Line Items] | ||
Useful life | 17 years | |
Trademarks [Member] | Ainsworth [Member] | ||
Acquisition [Line Items] | ||
Useful life | 5 years | |
Intangible assets with finite lives | $ 1.6 | |
Trademarks [Member] | Ainsworth [Member] | ||
Acquisition [Line Items] | ||
Intangible assets with indefinite lives | $ 308 |
Acquisition Acquisition (Deta_3
Acquisition Acquisition (Details 2) - Ainsworth [Member] - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Unaudited pro forma consolidated results | ||
Net sales | $ 7,865.4 | $ 8,036.9 |
Net income | $ 522.6 | $ 1,234.6 |
Acquisition (Details Textual)
Acquisition (Details Textual) $ in Millions | May 14, 2018USD ($)Facility | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Oct. 31, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Jan. 31, 2018USD ($) | Oct. 31, 2017USD ($) | Jul. 31, 2017USD ($) | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | |
Acquisition [Line Items] | |||||||||||||
Cash payments for acquisitions | $ 1,903 | $ 0 | $ 0 | ||||||||||
Long-term debt, less current portion | [1] | $ 4,686.3 | $ 4,688 | 4,686.3 | 4,688 | ||||||||
Goodwill | 6,310.9 | 5,942.2 | 6,310.9 | 5,942.2 | 6,077.1 | ||||||||
Debt Instrument, Face Amount | 5,500 | 4,700 | 5,500 | 4,700 | |||||||||
Net sales | 1,902.1 | $ 2,011.9 | $ 2,021.5 | $ 1,902.5 | 1,781.3 | $ 1,903.3 | $ 1,923.6 | $ 1,748.9 | 7,838 | 7,357.1 | 7,392.3 | ||
Operating Income | 928.6 | 1,044 | 1,042.6 | ||||||||||
Ainsworth [Member] | |||||||||||||
Acquisition [Line Items] | |||||||||||||
Cash payments for acquisitions | $ 1,900 | ||||||||||||
Goodwill | 617.8 | ||||||||||||
Commercial Paper | $ 400 | ||||||||||||
Number of facilities acquired | Facility | 2 | ||||||||||||
Net sales | 747 | ||||||||||||
Operating Income | $ 40.8 | ||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Reasons | 10.9 | ||||||||||||
Goodwill deductible for tax purposes | $ 446 | 416.3 | $ 416.3 | ||||||||||
Goodwill, Purchase Accounting Adjustments | 64.1 | ||||||||||||
Term Loan Credit Agreement [Member] | Ainsworth [Member] | |||||||||||||
Acquisition [Line Items] | |||||||||||||
Debt Instrument, Face Amount | 1,500 | ||||||||||||
U.S. Retail Pet Foods [Member] | |||||||||||||
Acquisition [Line Items] | |||||||||||||
Goodwill | $ 2,442.3 | $ 1,824.5 | $ 2,442.3 | $ 1,824.5 | $ 1,969.5 | ||||||||
U.S. Retail Pet Foods [Member] | Ainsworth [Member] | |||||||||||||
Acquisition [Line Items] | |||||||||||||
Goodwill | $ 617.8 | ||||||||||||
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Integration and Restructuring_3
Integration and Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Organization Optimization Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 32 | $ 22.7 | $ 18.6 |
Restructuring and Related Cost, Cost Incurred to Date | 74.6 | ||
Organization Optimization Program [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 24.9 | 10.1 | 12.4 |
Restructuring and Related Cost, Cost Incurred to Date | 48.7 | ||
Organization Optimization Program [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 7.1 | $ 12.6 | $ 6.2 |
Restructuring and Related Cost, Cost Incurred to Date | 25.9 | ||
Ainsworth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 32.1 | ||
Restructuring and Related Cost, Cost Incurred to Date | 32.1 | ||
Ainsworth [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 15.5 | ||
Restructuring and Related Cost, Cost Incurred to Date | 15.5 | ||
Ainsworth [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 16.6 | ||
Restructuring and Related Cost, Cost Incurred to Date | $ 16.6 |
Integration and Restructuring_4
Integration and Restructuring Costs - Narrative (Details) $ in Thousands | 12 Months Ended | ||
Apr. 30, 2019USD ($)Position | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | |
Ainsworth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, expected cost | $ 50,000 | ||
Restructuring and related cost, incurred cost | 32,100 | ||
Restructuring and related cost, noncash charge incurred to date | 4,100 | ||
Restructuring and related cost, incurred noncash charge | 4,100 | ||
Ainsworth [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 15,500 | ||
Restructuring and related cost obligations | 1,600 | ||
Ainsworth [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 16,600 | ||
Big Heart [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 0 | $ 26,600 | $ 64,100 |
Restructuring and related cost, incurred noncash charge | 0 | 2,600 | 3,200 |
Big Heart [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost obligations | 0 | 100 | |
Organization Optimization Program [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 32,000 | 22,700 | 18,600 |
Restructuring and related cost, noncash charge incurred to date | 15,200 | ||
Restructuring and related cost, incurred noncash charge | $ 3,300 | 9,800 | 2,100 |
Reduction in positions due to restructuring | Position | 450 | ||
Organization Optimization Program [Member] | Employee Severance [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 24,900 | 10,100 | 12,400 |
Restructuring and related cost obligations | 800 | 300 | |
Organization Optimization Program [Member] | Other Restructuring [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 7,100 | $ 12,600 | $ 6,200 |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on divestiture | $ 27.7 | $ 0 | $ 0 |
Proceeds from divestiture | 369.5 | 0 | $ 0 |
U.S. Baking Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Annual net sales | $ 370 | ||
Proceeds from divestiture | 369.5 | ||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 27.7 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | $ 1,902.1 | $ 2,011.9 | $ 2,021.5 | $ 1,902.5 | $ 1,781.3 | $ 1,903.3 | $ 1,923.6 | $ 1,748.9 | $ 7,838 | $ 7,357.1 | $ 7,392.3 | |||
Amortization | (240.3) | (206.8) | (207.3) | |||||||||||
Goodwill impairment charges | (97.9) | [1] | (145) | [1] | 0 | |||||||||
Other intangible assets impairment charges | (107.2) | (31.9) | (133.2) | |||||||||||
Interest expense – net | (207.9) | (174.1) | (163.1) | |||||||||||
Unallocated derivative gains (losses) | (54.2) | 37.3 | (27.2) | |||||||||||
Cost of products sold – special project costs (A) | [2] | 0 | (3.9) | (5.7) | ||||||||||
Other special project costs (A) | [2],[3] | (64.1) | (45.4) | (76.9) | ||||||||||
Corporate administrative expenses | (292) | (287.5) | (313.8) | |||||||||||
Other income (expense) – net | (19.1) | (8.9) | (1.1) | |||||||||||
Income Before Income Taxes | 701.6 | 861 | 878.4 | |||||||||||
Assets | 16,711.3 | 15,301.2 | 16,711.3 | 15,301.2 | 15,639.7 | |||||||||
Depreciation, amortization, and impairment charges | 651.4 | 590 | 552.2 | |||||||||||
Additions to property, plant, and equipment | 359.8 | 321.9 | 192.4 | |||||||||||
U.S. Retail Coffee [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charges | [1] | 0 | 0 | |||||||||||
U.S. Retail Consumer Foods [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charges | [1] | (97.9) | 0 | |||||||||||
U.S. Retail Pet Foods [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charges | [1] | 0 | (145) | |||||||||||
Other intangible assets impairment charges | (107.2) | |||||||||||||
International and Away From Home [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Goodwill impairment charges | [1] | 0 | 0 | |||||||||||
Operating Segments [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 7,838 | 7,357.1 | 7,392.3 | |||||||||||
Segment profit | 1,784.3 | 1,727.2 | 1,806.7 | |||||||||||
Operating Segments [Member] | U.S. Retail Coffee [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,122.3 | 2,086.8 | 2,102.3 | |||||||||||
Segment profit | 676.3 | 612.4 | 679.7 | |||||||||||
Assets | 4,771.9 | 4,815.4 | 4,771.9 | 4,815.4 | 4,909.9 | |||||||||
Depreciation, amortization, and impairment charges | 98.3 | 96.6 | 95.7 | |||||||||||
Additions to property, plant, and equipment | 63.9 | 89.4 | 40.9 | |||||||||||
Operating Segments [Member] | U.S. Retail Consumer Foods [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 1,761.5 | 1,985.6 | 2,072.6 | |||||||||||
Segment profit | 406.1 | 475.3 | 457.1 | |||||||||||
Assets | 2,850.8 | 3,217.5 | 2,850.8 | 3,217.5 | 3,157.2 | |||||||||
Depreciation, amortization, and impairment charges | 162.4 | 80.2 | 73.2 | |||||||||||
Additions to property, plant, and equipment | 138.9 | 168.9 | 49.7 | |||||||||||
Operating Segments [Member] | U.S. Retail Pet Foods [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 2,879.5 | 2,165.3 | 2,131.8 | |||||||||||
Segment profit | 503.4 | 439.4 | 479 | |||||||||||
Assets | 7,847 | 5,932.3 | 7,847 | 5,932.3 | 6,232.9 | |||||||||
Depreciation, amortization, and impairment charges | 301.4 | 314.8 | 280.8 | |||||||||||
Additions to property, plant, and equipment | 136 | 34.3 | 70.5 | |||||||||||
Operating Segments [Member] | International and Away From Home [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Net sales | 1,074.7 | 1,119.4 | 1,085.6 | |||||||||||
Segment profit | 198.5 | 200.1 | 190.9 | |||||||||||
Assets | 1,019.5 | 1,043.9 | 1,019.5 | 1,043.9 | 1,053.4 | |||||||||
Depreciation, amortization, and impairment charges | 52.8 | 57.8 | 61.9 | |||||||||||
Additions to property, plant, and equipment | 21 | 29.3 | 31.3 | |||||||||||
Unallocated [Member] | ||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||
Assets | [4] | $ 222.1 | $ 292.1 | 222.1 | 292.1 | 286.3 | ||||||||
Depreciation, amortization, and impairment charges | [5] | $ 36.5 | $ 40.6 | $ 40.6 | ||||||||||
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these 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 | 3 Months Ended | 12 Months Ended | |||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Revenues, Assets, and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,902.1 | $ 2,011.9 | $ 2,021.5 | $ 1,902.5 | $ 1,781.3 | $ 1,903.3 | $ 1,923.6 | $ 1,748.9 | $ 7,838 | $ 7,357.1 | $ 7,392.3 |
Assets | 16,711.3 | 15,301.2 | 16,711.3 | 15,301.2 | 15,639.7 | ||||||
Total long-lived assets (excluding goodwill and other intangible assets) | 2,056.4 | 1,887.5 | 2,056.4 | 1,887.5 | 1,770.9 | ||||||
United States [Member] | |||||||||||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 7,298 | 6,786.5 | 6,865.1 | ||||||||
Assets | 16,338 | 14,828.2 | 16,338 | 14,828.2 | 15,214.3 | ||||||
Long-lived assets | 2,037.5 | 1,869.8 | 2,037.5 | 1,869.8 | 1,757.1 | ||||||
Total international [Member] | |||||||||||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 540 | 570.6 | 527.2 | ||||||||
Assets | 373.3 | 473 | 373.3 | 473 | 425.4 | ||||||
Long-lived assets | 18.9 | 17.7 | 18.9 | 17.7 | 13.8 | ||||||
Canada [Member] | |||||||||||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 421.9 | 431.8 | 414.3 | ||||||||
Assets | 362.1 | 428.7 | 362.1 | 428.7 | 380.9 | ||||||
Long-lived assets | 18.9 | 17.4 | 18.9 | 17.4 | 13.4 | ||||||
All other international [Member] | |||||||||||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 118.1 | 138.8 | 112.9 | ||||||||
Assets | 11.2 | 44.3 | 11.2 | 44.3 | 44.5 | ||||||
Long-lived assets | $ 0 | $ 0.3 | $ 0 | $ 0.3 | $ 0.4 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | $ 1,902.1 | $ 2,011.9 | $ 2,021.5 | $ 1,902.5 | $ 1,781.3 | $ 1,903.3 | $ 1,923.6 | $ 1,748.9 | $ 7,838 | $ 7,357.1 | $ 7,392.3 | |
Percent of product sales attributable to primary reportable segment | 75.00% | |||||||||||
Operating Segments [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | $ 7,838 | 7,357.1 | 7,392.3 | |||||||||
U.S. Retail Coffee [Member] | Coffee [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 2,479.4 | 2,469.7 | 2,492.1 | ||||||||
U.S. Retail Coffee [Member] | Operating Segments [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | 2,122.3 | 2,086.8 | 2,102.3 | |||||||||
U.S. Retail Pet Foods [Member] | Dog food [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 1,313.1 | 756.8 | 718.6 | ||||||||
U.S. Retail Pet Foods [Member] | Pet snacks [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 815.1 | 767.2 | 770.7 | ||||||||
U.S. Retail Pet Foods [Member] | Cat food [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 812.8 | 702.5 | 704.7 | ||||||||
U.S. Retail Pet Foods [Member] | Operating Segments [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | 2,879.5 | 2,165.3 | 2,131.8 | |||||||||
U.S. Retail Consumer Foods [Member] | Peanut butter [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 756.6 | 745.1 | 718.4 | ||||||||
U.S. Retail Consumer Foods [Member] | Fruit spreads [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 341.6 | 353.8 | 348.6 | ||||||||
U.S. Retail Consumer Foods [Member] | Frozen handheld [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 289 | 254.1 | 226.2 | ||||||||
U.S. Retail Consumer Foods [Member] | Shortening and oils [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 253.6 | 258.1 | 307.2 | ||||||||
U.S. Retail Consumer Foods [Member] | Baking mixes and ingredients [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 185.2 | 437.9 | 484.2 | ||||||||
U.S. Retail Consumer Foods [Member] | Juices and beverages [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 123.9 | 140.8 | 146 | ||||||||
U.S. Retail Consumer Foods [Member] | Operating Segments [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | 1,761.5 | 1,985.6 | 2,072.6 | |||||||||
International and Away From Home [Member] | Portion control [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 162.7 | 160.3 | 151.9 | ||||||||
International and Away From Home [Member] | Other [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | [1] | 305 | 310.8 | 323.7 | ||||||||
International and Away From Home [Member] | Operating Segments [Member] | ||||||||||||
Revenue from External Customer [Line Items] | ||||||||||||
Net sales | $ 1,074.7 | $ 1,119.4 | $ 1,085.6 | |||||||||
[1] | (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019USD ($)SegmentIndustry | Apr. 30, 2018USD ($) | Apr. 30, 2017 | |
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 | $ 503.8 | $ 385.6 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | |||
Concentration Risk [Line Items] | |||
Trade receivables, less allowance for doubtful accounts | $ 137.7 | $ 123.1 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | Revenue from Contract with Customer [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 32.00% | 31.00% | 30.00% |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||
Net income | $ 71.5 | $ 121.4 | $ 188.5 | $ 133 | $ 185.9 | $ 831.3 | $ 194.6 | $ 126.8 | $ 514.4 | $ 1,338.6 | $ 592.3 | ||||||||
Net income allocated to participating securities | 2.6 | 6.8 | 2.8 | ||||||||||||||||
Net income allocated to common stockholders | $ 511.8 | $ 1,331.8 | $ 589.5 | ||||||||||||||||
Weighted-average common shares outstanding (in shares) | 113.1 | 113 | 115.5 | ||||||||||||||||
Dilutive effect of stock options (in shares) | 0 | 0 | 0.1 | ||||||||||||||||
Weighted-average common shares outstanding - assuming dilution (in shares) | 113.1 | 113 | 115.6 | ||||||||||||||||
Net income per common share (in dollars per share) | $ 0.63 | [1] | $ 1.07 | [1] | $ 1.66 | [1] | $ 1.17 | [1] | $ 1.64 | [1] | $ 7.32 | [1] | $ 1.71 | [1] | $ 1.12 | [1] | $ 4.52 | $ 11.79 | $ 5.11 |
Net income per common share - assuming dilution (in dollars per share) | $ 0.63 | [1] | $ 1.07 | [1] | $ 1.66 | [1] | $ 1.17 | [1] | $ 1.64 | [1] | $ 7.32 | [1] | $ 1.71 | [1] | $ 1.12 | [1] | $ 4.52 | $ 11.78 | $ 5.10 |
[1] | Annual net income per common share may not equal the sum of the individual quarters due to differences in the average number of shares outstanding during the respective periods, primarily due to share repurchases. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||||
Goodwill [Line Items] | ||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 242.9 | $ 0 | ||||
Summary of changes in the company's goodwill | ||||||
Goodwill, Beginning Balance | 5,942.2 | $ 6,077.1 | ||||
Acquisition | 617.8 | |||||
Divestiture | (144.3) | |||||
Impairment charge | (97.9) | [1] | (145) | [1] | 0 | |
Other | [2] | (6.9) | 10.1 | |||
Goodwill, Ending Balance | 6,310.9 | 5,942.2 | 6,077.1 | |||
U.S. Retail Coffee [Member] | ||||||
Summary of changes in the company's goodwill | ||||||
Goodwill, Beginning Balance | 2,090.9 | 2,090.9 | ||||
Acquisition | 0 | |||||
Divestiture | 0 | |||||
Impairment charge | [1] | 0 | 0 | |||
Other | [2] | 0 | 0 | |||
Goodwill, Ending Balance | 2,090.9 | 2,090.9 | 2,090.9 | |||
U.S. Retail Consumer Foods [Member] | ||||||
Summary of changes in the company's goodwill | ||||||
Goodwill, Beginning Balance | 1,600.4 | 1,599 | ||||
Acquisition | 0 | |||||
Divestiture | (144.3) | |||||
Impairment charge | [1] | (97.9) | 0 | |||
Other | [2] | 0 | 1.4 | |||
Goodwill, Ending Balance | 1,358.2 | 1,600.4 | 1,599 | |||
U.S. Retail Pet Foods [Member] | ||||||
Summary of changes in the company's goodwill | ||||||
Goodwill, Beginning Balance | 1,824.5 | 1,969.5 | ||||
Acquisition | 617.8 | |||||
Divestiture | 0 | |||||
Impairment charge | [1] | 0 | (145) | |||
Other | [2] | 0 | 0 | |||
Goodwill, Ending Balance | 2,442.3 | 1,824.5 | 1,969.5 | |||
International and Away From Home [Member] | ||||||
Summary of changes in the company's goodwill | ||||||
Goodwill, Beginning Balance | 426.4 | 417.7 | ||||
Acquisition | 0 | |||||
Divestiture | 0 | |||||
Impairment charge | [1] | 0 | 0 | |||
Other | [2] | (6.9) | 8.7 | |||
Goodwill, Ending Balance | $ 419.5 | $ 426.4 | $ 417.7 | |||
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. | |||||
[2] | The amounts classified as other represent foreign currency exchange adjustments. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | $ 5,139.5 | $ 4,245 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 1,451.1 | 1,218.7 |
Finite-lived intangible assets subject to amortization, Net | 3,688.4 | 3,026.3 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Assets, Acquisition Cost | 8,460.6 | 7,323.1 |
Total Other Intangible Assets Accumulated Amortization Impairment Charges Foreign Currency Exchange | 1,741.8 | 1,406.6 |
Intangible Assets, Net (Excluding Goodwill) | 6,718.8 | 5,916.5 |
Trademarks [Member] | ||
Indefinite-lived intangible assets not subject to amortization: | ||
Indefinite-lived intangible assets not subject to amortization, Acquisition Costs | 3,321.1 | 3,078.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Indefinite Lived Assets | 290.7 | 187.9 |
Indefinite-lived intangible assets not subject to amortization, Net | 3,030.4 | 2,890.2 |
Customer and contractual relationships [Member] | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | 4,471.1 | 3,520.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 1,156.8 | 959.3 |
Finite-lived intangible assets subject to amortization, Net | 3,314.3 | 2,560.8 |
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 | 127.4 | 114.4 |
Finite-lived intangible assets subject to amortization, Net | 41.1 | 54.1 |
Trademarks [Member] | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets subject to amortization, Acquisition Cost | 499.9 | 556.4 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 166.9 | 145 |
Finite-lived intangible assets subject to amortization, Net | $ 333 | $ 411.4 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Feb. 01, 2019reporting_unit | Apr. 30, 2019USD ($) | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | |||
Goodwill and Intangible Assets [Line Items] | |||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ 242.9 | $ 0 | |||||
Amortization expense for finite-lived intangible assets | $ 239.1 | $ 204.8 | 205.9 | ||||
Weighted-average useful life of the finite-lived intangible assets | 23 years | ||||||
Estimated amortization expense for 2020 | $ 235.3 | ||||||
Estimated amortization expense for 2021 | 233.3 | ||||||
Estimated amortization expense for 2022 | 229 | ||||||
Estimated amortization expense for 2023 | 221.4 | ||||||
Estimated amortization expense for 2024 | 216.4 | ||||||
Goodwill | 6,310.9 | 5,942.2 | 6,077.1 | ||||
Number of reporting units | reporting_unit | 7 | ||||||
Impairment charges | 205.1 | 176.9 | |||||
Goodwill impairment charges | 97.9 | [1] | 145 | [1] | 0 | ||
Other intangible assets impairment charges | $ 107.2 | 31.9 | 133.2 | ||||
Customer and Contractual Relationships [Member] | |||||||
Goodwill and Intangible Assets [Line Items] | |||||||
Weighted-average useful life of the finite-lived intangible assets | 24 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 | 17 years | ||||||
Trademarks [Member] | |||||||
Goodwill and Intangible Assets [Line Items] | |||||||
Indefinite-lived intangible assets not subject to amortization, Net | $ 3,030.4 | 2,890.2 | |||||
U.S. Retail Pet Foods [Member] | |||||||
Goodwill and Intangible Assets [Line Items] | |||||||
Goodwill | 2,442.3 | 1,824.5 | 1,969.5 | ||||
Indefinite-lived intangible assets not subject to amortization, Net | 1,500 | ||||||
Goodwill impairment charges | [1] | 0 | 145 | ||||
Other intangible assets impairment charges | 107.2 | ||||||
U.S. Retail Consumer Foods [Member] | |||||||
Goodwill and Intangible Assets [Line Items] | |||||||
Goodwill | 1,358.2 | 1,600.4 | $ 1,599 | ||||
Goodwill impairment charges | [1] | $ 97.9 | $ 0 | ||||
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Details) - USD ($) | Apr. 30, 2019 | Apr. 30, 2018 | |
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 5,500,000,000 | $ 4,700,000,000 | |
Long-term debt | [1] | 5,484,800,000 | 4,688,000,000 |
Current portion of long-term debt | [1] | 798,500,000 | 0 |
Long-term debt, less current portion | [1] | 4,686,300,000 | 4,688,000,000 |
Current Portion Of Long Term Debt [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 800,000,000 | 0 | |
Total Long Term Debt Less Current Portion [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | $ 4,700,000,000 | 4,700,000,000 | |
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 | 300,000,000 | |
Company issued Senior Notes | [1] | $ 299,500,000 | 298,600,000 |
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] | $ 499,000,000 | 497,800,000 |
3.50% Senior Notes due October 15, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Interest rate on notes | 3.50% | ||
Debt instrument face amount | $ 750,000,000 | 750,000,000 | |
Company issued Senior Notes | [1] | $ 768,400,000 | 775,600,000 |
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] | $ 398,000,000 | 397,300,000 |
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] | $ 995,200,000 | 994,400,000 |
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 | 500,000,000 | |
Company issued Senior Notes | [1] | $ 496,200,000 | 495,800,000 |
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] | $ 643,500,000 | 643,100,000 |
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] | 586,000,000 | 585,400,000 |
Term Loan Credit Agreement due May 14, 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument face amount | 800,000,000 | 0 | |
Term loan credit agreement carrying value | [1] | $ 799,000,000 | $ 0 |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Details Textual) | 12 Months Ended | |||||||
Apr. 30, 2019USD ($)Bank | Apr. 30, 2018USD ($) | Apr. 30, 2017USD ($) | Apr. 30, 2015USD ($) | Nov. 30, 2018USD ($) | Jun. 30, 2018USD ($) | May 14, 2018USD ($) | Apr. 27, 2018USD ($) | |
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 5,500,000,000 | $ 4,700,000,000 | ||||||
Repayment of long-term debt | $ 700,000,000 | 1,050,300,000 | $ 200,000,000 | |||||
Percentage of the principal amount thereof which company can prepay | 100.00% | |||||||
Interest paid | $ 213,300,000 | 158,900,000 | 162,200,000 | |||||
Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Unused Borrowing Capacity, Amount | $ 1,500,000,000 | |||||||
Term Loan Credit Agreement due May 14, 2021 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | 800,000,000 | 0 | ||||||
Payments of Debt Issuance Costs | $ 2,000,000 | |||||||
Weighted average interest rate on long-term debt | 3.62% | |||||||
Payments of Debt Issuance Costs, Incurred to Date | $ 2,800,000 | |||||||
Repayment of long-term debt | 700,000,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | |||||||
Number of banks | Bank | 11 | |||||||
Long-term Line of Credit | $ 0 | 0 | ||||||
Commercial Paper [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, borrowing capacity | 1,800,000,000 | |||||||
Commercial paper, amount outstanding | $ 426,000,000 | $ 144,000,000 | ||||||
Commercial paper weighted-average interest rate | 2.75% | 2.20% | ||||||
Interest Rate Contract [Member] | ||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||||
Derivative, Notional Amount | $ 300,000,000 | $ 500,000,000 | ||||||
Outstanding derivative contracts | ||||||||
Gain (Loss) on Contract Termination | $ (4,600,000) | |||||||
Debt Instrument [Line Items] | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (49,100,000) | |||||||
Interest Rate Contract [Member] | Cash Flow Hedging [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 49,100,000 | $ (2,700,000) | $ 0 | |||||
Ainsworth [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commercial paper, amount outstanding | $ 400,000,000 | |||||||
Ainsworth [Member] | Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument face amount | $ 1,500,000,000 |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Defined Benefit Pension Plans [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | $ 2.1 | $ 5.2 | $ 12.7 |
Interest cost | 23.2 | 21.6 | 25.3 |
Expected return on plan assets | (26.8) | (28.8) | (29.3) |
Amortization of prior service cost (credit) | 0.9 | 0.9 | 1.1 |
Amortization of net actuarial loss (gain) | 8.3 | 11.5 | 13.8 |
Curtailment loss (gain) | 0.3 | 0 | 0 |
Settlement loss (gain) | 7.1 | 2.3 | (0.7) |
Termination benefit cost | 0 | 0 | 0 |
Net periodic benefit cost | 15.1 | 12.7 | 22.9 |
Other Postretirement Benefits [Member] | |||
Components of net periodic benefit cost: | |||
Service cost | 1.9 | 2 | 2.3 |
Interest cost | 2.3 | 2.1 | 2.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (1.3) | (1.4) | (1.5) |
Amortization of net actuarial loss (gain) | (0.6) | (0.3) | (0.2) |
Curtailment loss (gain) | 0 | 0 | 0 |
Settlement loss (gain) | 0 | 0 | 0 |
Termination benefit cost | 0.2 | 0 | 0 |
Net periodic benefit cost | $ 2.5 | $ 2.4 | $ 3.2 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | $ 0 | $ 2.1 |
Net actuarial gain (loss) arising during the year | (22.9) | 3.5 | 1.5 |
Amortization of prior service cost (credit) | 0.9 | 0.9 | 1.1 |
Amortization of net actuarial loss (gain) | 8.3 | 11.5 | 13.8 |
Curtailment loss (gain) | 0.3 | 0 | 28.8 |
Settlement loss (gain) | 7.1 | 2.3 | (0.7) |
Foreign currency translation | 1.2 | (1.8) | 2.5 |
Net change for year | (5.1) | 16.4 | 49.1 |
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 | (2) | (0.2) | 3 |
Net actuarial gain (loss) arising during the year | (2.8) | 5.5 | 2.3 |
Amortization of prior service cost (credit) | (1.3) | (1.4) | (1.5) |
Amortization of net actuarial loss (gain) | (0.6) | (0.3) | (0.2) |
Curtailment loss (gain) | 0 | 0 | 0.1 |
Settlement loss (gain) | 0 | 0 | 0 |
Foreign currency translation | 0 | (0.1) | 0 |
Net change for year | $ (6.7) | $ 3.5 | $ 3.7 |
Pensions and Other Postretire_5
Pensions and Other Postretirement Benefits (Details 2) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | 4.17% | 3.95% | 3.85% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 4.29% | 4.20% | 3.85% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.87% | 3.38% | 3.85% |
Expected return on plan assets | 5.66% | 6.27% | 6.27% |
Rate of compensation increase | 3.59% | 3.78% | 3.96% |
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 | 4.13% | 3.86% | 3.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 4.23% | 4.06% | 3.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.79% | 3.24% | 3.80% |
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 | 3.57% | 3.22% | 3.60% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 3.64% | 3.39% | 3.60% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.23% | 2.60% | 3.60% |
Expected return on plan assets | 5.25% | 5.00% | 5.25% |
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 | 3.55% | 3.19% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Service Cost | 3.77% | 3.70% | 3.50% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Discount Rate Used to Determine Interest Cost | 3.23% | 2.58% | 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 Postretire_6
Pensions and Other Postretirement Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Change in plan assets: | |||
Company contributions | $ 29.3 | $ 39.6 | $ 28.7 |
Defined benefit pensions | (139.1) | (144.1) | |
Other postretirement benefits | (65) | (61.9) | |
Defined Benefit Pension Plans [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 639.7 | 677.3 | |
Service cost | 2.1 | 5.2 | 12.7 |
Interest cost | 23.2 | 21.6 | 25.3 |
Amendments | 0 | 0 | |
Actuarial loss (gain) | 17 | (10.8) | |
Benefits paid | (33.9) | (36) | |
Foreign currency translation adjustments | (3.6) | 5.8 | |
Curtailment | (1.3) | 0 | |
Settlement | (27.7) | (23.4) | |
Termination benefit cost | 0 | 0 | 0 |
Benefit obligation at end of year | 615.5 | 639.7 | 677.3 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 497 | 489.2 | |
Actual return on plan assets | 19.6 | 21.5 | |
Company contributions | 29.3 | 39.6 | |
Benefits paid | (33.9) | (36) | |
Settlement | (27.7) | (23.4) | |
Foreign currency translation adjustments | (4) | 6.1 | |
Fair value of plan assets at end of year | 480.3 | 497 | 489.2 |
Funded status of the plans | (135.2) | (142.7) | |
Defined benefit pensions | (139.1) | (144.1) | |
Other noncurrent assets | 8 | 9.5 | |
Accrued compensation | (4.1) | (8.1) | |
Other postretirement benefits | 0 | 0 | |
Net benefit liability | (135.2) | (142.7) | |
Other Postretirement Benefits [Member] | |||
Change in benefit obligation: | |||
Benefit obligation at beginning of year | 65.9 | 70.7 | |
Service cost | 1.9 | 2 | 2.3 |
Interest cost | 2.3 | 2.1 | 2.6 |
Amendments | 2 | 0.2 | |
Actuarial loss (gain) | 2.8 | (5.5) | |
Benefits paid | (4.7) | (4.3) | |
Foreign currency translation adjustments | (0.3) | 0.7 | |
Curtailment | 0 | 0 | |
Settlement | 0 | 0 | |
Termination benefit cost | 0.2 | 0 | 0 |
Benefit obligation at end of year | 70.1 | 65.9 | 70.7 |
Change in plan assets: | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Company contributions | 4.7 | 4.3 | |
Benefits paid | (4.7) | (4.3) | |
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 | (70.1) | (65.9) | |
Defined benefit pensions | 0 | 0 | |
Other noncurrent assets | 0 | 0 | |
Accrued compensation | (5.1) | (4) | |
Other postretirement benefits | (65) | (61.9) | |
Net benefit liability | $ (70.1) | $ (65.9) |
Pensions and Other Postretire_7
Pensions and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2019 | Apr. 30, 2018 | |
Defined Benefit Pension Plans [Member] | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | $ (157.2) | $ (150.9) |
Prior service credit (cost) | (3.5) | (4.7) |
Total recognized in accumulated other comprehensive income (loss) | (160.7) | (155.6) |
Other Postretirement Benefits [Member] | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | 10.2 | 13.6 |
Prior service credit (cost) | 5.8 | 9.1 |
Total recognized in accumulated other comprehensive income (loss) | 16 | $ 22.7 |
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 | |
Effect on benefit obligation, increase | 1.1 | |
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 | 3.99% | 4.17% |
Rate of compensation increase | 3.56% | 3.59% |
Domestic Plan [Member] | Other Postretirement Benefits [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 3.91% | 4.13% |
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 | 3.21% | 3.57% |
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 | 3.19% | 3.55% |
Rate of compensation increase | 0.00% | 0.00% |
Pensions and Other Postretire_8
Pensions and Other Postretirement Benefits (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Change in plan assets: | |||
Company contributions | $ 29.3 | $ 39.6 | $ 28.7 |
Pension Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 615.5 | 639.7 | 677.3 |
Fair value of plan assets at end of year | 480.3 | 497 | 489.2 |
Funded status of the plans | (135.2) | (142.7) | |
Components of net periodic benefit cost: | |||
Service cost | 2.1 | 5.2 | 12.7 |
Interest cost | 23.2 | 21.6 | 25.3 |
Expected return on plan assets | (26.8) | (28.8) | (29.3) |
Amortization of net actuarial loss (gain) | 8.3 | 11.5 | 13.8 |
Net periodic benefit cost (credit) | 15.1 | 12.7 | 22.9 |
Change in plan assets: | |||
Company contributions | 29.3 | 39.6 | |
Benefits paid | (33.9) | (36) | |
Actual return on plan assets | 19.6 | 21.5 | |
Foreign currency translation adjustments | (4) | 6.1 | |
Other Postretirement Benefits Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 70.1 | 65.9 | 70.7 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status of the plans | (70.1) | (65.9) | |
Components of net periodic benefit cost: | |||
Service cost | 1.9 | 2 | 2.3 |
Interest cost | 2.3 | 2.1 | 2.6 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | (0.6) | (0.3) | (0.2) |
Net periodic benefit cost (credit) | 2.5 | 2.4 | $ 3.2 |
Change in plan assets: | |||
Company contributions | 4.7 | 4.3 | |
Benefits paid | (4.7) | (4.3) | |
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 | 84.8 | 87.6 | |
Fair value of plan assets at end of year | 92.1 | 96.4 | |
Funded status of the plans | 7.3 | 8.8 | |
Components of net periodic benefit cost: | |||
Service cost | 0.1 | 0.2 | |
Interest cost | 2.7 | 2.4 | |
Expected return on plan assets | (4.8) | (5) | |
Amortization of net actuarial loss (gain) | 0.9 | 0.8 | |
Net periodic benefit cost (credit) | (1.1) | (1.6) | |
Change in plan assets: | |||
Company contributions | 0.1 | 0.9 | |
Benefits paid | (6.5) | (6.8) | |
Actual return on plan assets | 6.1 | 1.5 | |
Foreign currency translation adjustments | (3.9) | 6 | |
Foreign Plan [Member] | Other Postretirement Benefits Plan [Member] | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 7.1 | 7.3 | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status of the plans | (7.1) | (7.3) | |
Components of net periodic benefit cost: | |||
Service cost | 0 | 0 | |
Interest cost | 0.2 | 0.3 | |
Expected return on plan assets | 0 | 0 | |
Amortization of net actuarial loss (gain) | 0 | 0 | |
Net periodic benefit cost (credit) | 0.2 | 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 Postretire_9
Pensions and Other Postretirement Benefits (Details 6) - Defined Benefit Pension Plans [Member] - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Additional information related to the Company's defined benefit pension plans | ||
Accumulated benefit obligation for all pension plans | $ 605.6 | $ 627.9 |
Plans with an accumulated benefit obligation in excess of plan assets: | ||
Accumulated benefit obligation | 521.5 | 541.3 |
Fair value of plan assets | 388.2 | 400.6 |
Plans with a projected benefit obligation in excess of plan assets: | ||
Projected benefit obligation | 531.4 | 552.9 |
Fair value of plan assets | $ 388.2 | $ 400.6 |
Pensions and Other Postretir_10
Pensions and Other Postretirement Benefits (Details 7) - Defined Benefit Pension Plans [Member] - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | $ 480.3 | $ 497 | $ 489.2 | |
Total financial assets measured at net asset value | [1] | 10.1 | 8.9 | |
Estimated Fair Value [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 470.2 | 488.1 | ||
Estimated Fair Value [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 | 412.9 | 456.5 | ||
Estimated Fair Value [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 57.3 | 28.4 | ||
Estimated Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 0 | 3.2 | ||
Estimated Fair Value [Member] | Cash and cash equivalents [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 0.5 | 3.7 | |
Estimated Fair Value [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] | 0.5 | 3.7 | |
Estimated Fair Value [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] | 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] | U.S. Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 67.5 | 96.7 | |
Estimated Fair Value [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] | 65.7 | 94.8 | |
Estimated Fair Value [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] | 1.8 | 1.9 | |
Estimated Fair Value [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] | International Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 83.5 | 82.9 | |
Estimated Fair Value [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] | 74.3 | 73.2 | |
Estimated Fair Value [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] | 9.2 | 9.7 | |
Estimated Fair Value [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] | Bonds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 220.6 | 231.8 | |
Estimated Fair Value [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] | 220.6 | 231.8 | |
Estimated Fair Value [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] | 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] | Fixed income [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 51.8 | 53 | |
Estimated Fair Value [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] | 51.8 | 53 | |
Estimated Fair Value [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] | 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] | Other Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 46.3 | 20 | |
Estimated Fair Value [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 | 0 | |
Estimated Fair Value [Member] | Other Investments [Member] | Significant Observable Inputs (Level 2) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 46.3 | 16.8 | |
Estimated Fair Value [Member] | Other Investments [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | $ 0 | $ 3.2 | |
[1] | This category is comprised of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds, as well as a private limited investment partnership. The fair value estimates of the private equity fund and private limited investment partnership are 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 and private limited investment partnership are 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 and private limited investment partnership are 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, as well as various U.S. Treasury Separate Trading of Registered Interest and Principal 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, a common collective trust fund investing in direct commercial property funds, and a private limited investment partnership in 2018. 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 in 2018 is classified as a Level 3 asset. The investments in this partnership were valued at estimated fair value based on audited financial statements received from the general partner. |
Pensions and Other Postretir_11
Pensions and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |||
Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($)plan | Apr. 30, 2018USD ($) | Dec. 31, 2018 | |
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 2020 of amortization of net actuarial losses in net periodic benefit cost | $ 7.7 | |||
Expected amount to be recognized during 2020 in prior service cost as net periodic benefit cost | 0.3 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2020 | 49.5 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2021 | 47.4 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2022 | 47 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2023 | 51 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2024 | 46.4 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2025 through 2029 | $ 222.4 | |||
Number of multiemployer pension plans | plan | 1 | |||
Multiemployer plan actual funded status | 51.60% | |||
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 | $ 2.3 | $ 2 | ||
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 | 60.00% | |||
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 | 6.50% | |||
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 | 2026 | |||
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 | 3.80% | 5.40% | ||
Expected amount to be contributed by the Company to the defined benefit pension plans in 2020 | $ 1.2 | |||
Maximum | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
High Quality Corporate Bonds with Duration Range | P13Y | |||
Maximum | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
High Quality Corporate Bonds with Duration Range | P10Y |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 6.2 | $ 17 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Current Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 6.2 | 17 |
Other Current Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Current Assets [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 4.8 | 14.8 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.4 | 2.2 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 75.1 | 7.5 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 49.1 | |
Other Current Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 26 | 7.5 |
Other Current Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 49.1 | |
Other Current Liabilities [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 25.8 | 6.8 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.2 | 0.7 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0.4 |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Noncurrent Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0.4 |
Other Noncurrent Assets [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0.4 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0.2 |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Noncurrent Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0.2 |
Other Noncurrent Liabilities [Member] | Interest Rate Contract [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0.2 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 1) - Interest Rate Contract [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ 49.1 | ||
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (49.1) | $ 2.7 | $ 0 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (48.7) | 3.2 | 0.6 |
Cash Flow Hedging [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | $ (0.4) | $ (0.5) | $ (0.6) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | $ (95.6) | $ 0.6 | $ (35.4) |
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 | (98.6) | 6.5 | (45.2) |
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 | $ 3 | $ (5.9) | $ 9.8 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ (95.6) | $ 0.6 | $ (35.4) |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (41.4) | (36.7) | (8.2) |
Unallocated derivative gains (losses) | $ (54.2) | $ 37.3 | $ (27.2) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Commodity contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross contract notional amount | $ 544.8 | $ 658 |
Foreign currency exchange contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross contract notional amount | 144.9 | 122.1 |
Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross contract notional amount | $ 800 | $ 0 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | Apr. 30, 2015 | Nov. 30, 2018 | Jun. 30, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amortization of deferred gain on early termination agreement | $ 8 | $ 7.8 | $ 7.6 | |||
Cash margin accounts related to derivative instruments recognized | 40.7 | 10.9 | ||||
Interest Income (Expense), Net | (207.9) | (174.1) | (163.1) | |||
Cumulative net mark to market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ (52.5) | 1.7 | ||||
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] | ||||||
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 | (52.5) | (3.8) | ||||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 12.1 | 0.9 | ||||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (0.8) | |||||
Gain (loss) on early termination agreement | $ 4.6 | |||||
Derivative, Notional Amount | $ 300 | $ 500 | ||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (49.1) | |||||
Interest rate contract [Member] | Cash Flow Hedging [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 49.1 | $ (2.7) | $ 0 | |||
Total Through Q4 2019 [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amortization of deferred gain on early termination agreement | $ 33 | |||||
Commodity contracts [Member] | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative instrument maturity | 1 year | |||||
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% |
Other Financial Instruments a_3
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total long-term debt | [1] | $ (5,484.8) | $ (4,688) |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 40.9 | 45.8 | |
Derivative financial instruments – net | (68.9) | 9.7 | |
Total long-term debt | (5,484.8) | (4,688) | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 40.9 | 45.8 | |
Derivative financial instruments – net | (68.9) | 9.7 | |
Total long-term debt | $ (5,504) | $ (4,579.8) | |
[1] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Other Financial Instruments a_4
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (5,504) | $ (4,579.8) |
Total financial instruments measured at fair value | (5,532) | (4,524.3) | |
Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 8.7 | 9.3 |
Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 31.7 | 36.1 |
Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.5 | 0.4 |
Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | (21) | 8.2 |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 1.2 | 1.5 |
Interest Rate Contract [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | (49.1) | |
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] | (4,646.6) | (4,579.8) |
Total financial instruments measured at fair value | (4,658.2) | (4,562.8) | |
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] | 8.7 | 9.3 |
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] | 0.5 | 0.4 |
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] | (20.7) | 7.2 |
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) | 0.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Contract [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | 0 | |
Significant Observable Inputs (Level 2) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (857.4) | 0 |
Total financial instruments measured at fair value | (873.8) | 38.5 | |
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] | 31.7 | 36.1 |
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] | (0.3) | 1 |
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] | 1.3 | 1.4 |
Significant Observable Inputs (Level 2) [Member] | Interest Rate Contract [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | (49.1) | |
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 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Contract [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivatives | [3] | $ 0 | |
[1] | Long-term debt is composed of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. | ||
[2] | Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third-party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of April 30, 2019, our municipal obligations are scheduled to mature as follows: $0.4 in 2020, $1.0 in 2021, $0.5 in 2022, $1.5 in 2023, and the remaining $28.3 in 2024 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. The Level 2 interest rate contracts are valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the valuation of the interest rate contracts are limited to prices that are observable for the asset or liability. For additional information, see Note 10: Derivative Financial Instruments. |
Other Financial Instruments a_5
Other Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |||
Fair Value Disclosures [Abstract] | |||||
Company's Municipal bond mature in 2020 | $ 0.4 | ||||
Company's Municipal bond mature in 2021 | 1 | ||||
Company's Municipal bond mature in 2022 | 0.5 | ||||
Company's Municipal bond mature in 2023 | 1.5 | ||||
Company's Municipal bond mature in 2024 and beyond | 28.3 | ||||
Impairment charges | 205.1 | $ 176.9 | |||
Other intangible assets impairment charges | 107.2 | 31.9 | $ 133.2 | ||
Goodwill impairment charges | $ 97.9 | [1] | $ 145 | [1] | $ 0 |
[1] | The amounts reflected in this table represent the accumulated goodwill impairment charges, as there have been no goodwill impairment charges recognized prior to these periods. |
Share-Based Payments (Details)
Share-Based Payments (Details) | 12 Months Ended |
Apr. 30, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at May 1, 2018, number of options | shares | 823,332 |
Exercised, number of options | shares | 0 |
Cancelled, number of options | shares | 423,332 |
Outstanding at April 30, 2019, number of options | shares | 400,000 |
Exercisable at April 30, 2019, number of options | shares | 400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at May 1, 2018, weighted average exercise price (in dollars per share) | $ / shares | $ 113.20 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | $ / shares | 0 |
Cancelled, weighted average exercise price (in dollars per share) | $ / shares | 113.16 |
Outstanding at April 30, 2019, weighted average exercise price (in dollars per share) | $ / shares | 113.24 |
Exercisable at April 30, 2019, weighted average exercise price (in dollars per share) | $ / shares | $ 113.24 |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) - $ / shares | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | 542,358 | ||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 194,932 | 136,127 | 180,997 |
Converted Restricted Shares and Deferred Stock Units and Performance Units | 84,051 | ||
Vested Restricted Shares and Deferred Stock Units and Performance Units | (158,914) | ||
Forfeited Restricted Shares and Deferred Stock Units and Performance Units | (78,851) | ||
Ending Balance, Restricted Shares and Deferred Stock Units and Performance Units | 583,576 | 542,358 | |
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) | $ 122.39 | ||
Granted Weighted Average Grant Date Fair Value (in dollars per share) | 104.33 | $ 126.80 | $ 133.92 |
Converted Weighted Average Grant Date Fair Value (in dollars per share) | 103.86 | ||
Vested Weighted Average Grant Date Fair Value (in dollars per share) | 107.16 | ||
Forfeited Weighted Average Grant Date Fair Value (in dollars per share) | 118.02 | ||
Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 118.44 | $ 122.39 | |
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 | 84,051 | ||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 85,154 | 84,051 | 73,701 |
Converted Restricted Shares and Deferred Stock Units and Performance Units | (84,051) | ||
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 | 85,154 | 84,051 | |
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) | $ 103.86 | ||
Granted Weighted Average Grant Date Fair Value (in dollars per share) | 123.68 | ||
Converted Weighted Average Grant Date Fair Value (in dollars per share) | 103.86 | ||
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) | $ 123.68 | $ 103.86 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - $ / shares | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
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 | 194,932 | 136,127 | 180,997 |
Granted Weighted Average Grant Date Fair Value (in dollars per share) | $ 104.33 | $ 126.80 | $ 133.92 |
Performance Units [Member] | |||
Weighted-average grant date fair values of the equity awards | |||
Granted Restricted Shares and Deferred Stock Units and Performance Units | 85,154 | 84,051 | 73,701 |
Granted Weighted Average Grant Date Fair Value (in dollars per share) | $ 123.68 | ||
Granted Weighted Average Conversion Date Fair Value (in dollars per share) | $ 123.68 | $ 103.86 | $ 126.80 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 5,380,499 | ||
Forfeiture period for share-based payments | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 0 | ||
Closing market price (in dollars per share) | $ 122.63 | ||
Share-based compensation expense | $ 20,700,000 | $ 15,400,000 | $ 22,000,000 |
Related income tax benefit | $ (4,900,000) | (4,600,000) | (7,200,000) |
Weighted-average period of recognition | 3 years 3 months 18 days | ||
Equity instruments other than options vested in period weighted average grant date fair value total value | $ 17,000,000 | 17,100,000 | 24,600,000 |
Fair value of equity awards other than stock options vesting | $ 17,000,000 | $ 20,700,000 | $ 32,700,000 |
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 | 0 |
Forfeiture period for share-based payments | 10 years | ||
Aggregate intrinsic value - outstanding | $ 3,800,000 | ||
Average remaining contractual term - outstanding | 6 years | ||
Aggregate intrinsic value - exercisable | $ 3,800,000 | ||
Average remaining contractual term - exercisable | 6 years | ||
Intrinsic value of options exercised | $ 0 | $ 600,000 | $ 0 |
Share-based compensation expense | 0 | 400,000 | (1,000,000) |
Related income tax benefit | (100,000) | 400,000 | |
Unrecognized compensation expense | 0 | ||
Cash received from option exercises | $ 0 | $ 3,900,000 | $ 0 |
Employee Stock Option [Member] | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for share-based payments | 1 year | ||
Employee Stock Option [Member] | Maximum | |||
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, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Income (loss) before income taxes | |||
Domestic | $ 659.2 | $ 828.6 | $ 836.8 |
Foreign | 42.4 | 32.4 | 41.6 |
Income Before Income Taxes | $ 701.6 | $ 861 | $ 878.4 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Current: | |||
Federal | $ 227.9 | $ 277.9 | $ 325.1 |
Foreign | 16 | 7.9 | 11 |
State and local | 36.8 | 40 | 29.4 |
Deferred: | |||
Federal | (73.6) | (802.3) | (78.3) |
Foreign | (0.1) | 0.5 | 1.6 |
State and local | (19.8) | (1.6) | (2.7) |
Total income tax expense (benefit) | $ 187.2 | $ (477.6) | $ 286.1 |
Income Taxes (Details 2)
Income Taxes (Details 2) - 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 | |
(Percent of Pre-tax Income) | |||||
Statutory federal income tax rate | 21.00% | 35.00% | 21.00% | 30.40% | 35.00% |
Tax reform – net impact on U.S. deferred tax assets and liabilities | 0.00% | (92.00%) | 0.00% | ||
Tax reform – transition tax | (0.50%) | 3.00% | 0.00% | ||
Goodwill impairment charges | 2.90% | 5.50% | 0.00% | ||
Sale of the U.S. baking business | 2.40% | 0.00% | 0.00% | ||
State and local income taxes | 2.70% | 1.90% | 2.10% | ||
Domestic manufacturing deduction | (0.00%) | (3.00%) | (3.70%) | ||
Deferred tax benefit from integration | (2.40%) | (0.00%) | (0.00%) | ||
Other items – net | 0.60% | (1.30%) | (0.80%) | ||
Effective income tax rate | 26.70% | (55.50%) | 32.60% | ||
Income taxes paid | $ 250.9 | $ 336.8 | $ 367.2 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Apr. 30, 2019 | Apr. 30, 2018 |
Deferred tax liabilities: | ||
Intangible assets | $ 1,428.3 | $ 1,393.6 |
Property, plant, and equipment | 120.5 | 98.5 |
Other | 13.4 | 14.2 |
Total deferred tax liabilities | 1,562.2 | 1,506.3 |
Deferred tax assets: | ||
Post-employment and other employee benefits | 84.9 | 75.5 |
Tax credit and loss carryforwards | 10 | 0.2 |
Intangible assets | 17.2 | 18.8 |
Inventory | 7.6 | 5.9 |
Property, plant, and equipment | 7 | 6.4 |
Hedging transactions | 15.6 | 0.9 |
Other | 24.8 | 24.3 |
Total deferred tax assets | 167.1 | 132 |
Valuation allowance | (3.5) | (2.9) |
Total deferred tax assets, less allowance | 163.6 | 129.1 |
Net deferred tax liability | $ 1,398.6 | $ 1,377.2 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |
Reconciliation of unrecognized tax benefits | |||
Balance at May 1, | $ 32.3 | $ 40.4 | $ 46.3 |
Increases: | |||
Current year tax positions | 0.9 | 1.1 | 0.7 |
Prior year tax positions | 0.3 | 0.5 | 1.2 |
Acquired businesses | 0 | 0 | 0 |
Decreases: | |||
Prior year tax positions | 0 | 0 | 0.9 |
Settlement with tax authorities | 9 | 3 | 1.1 |
Expiration of statute of limitations periods | 9.5 | 6.7 | 5.8 |
Balance at April 30, | $ 15 | $ 32.3 | $ 40.4 |
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 | May 14, 2018 | Apr. 30, 2016 | ||
Tax Credit Carryforward [Line Items] | ||||||||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | $ 20.9 | |||||||
Deferred Income Tax Expense (Benefit) | $ (93.5) | $ (803.4) | $ (79.4) | |||||
Deferred Tax Assets, Other Tax Carryforwards | $ 0.2 | 10 | 0.2 | |||||
Foreign Earnings Repatriated | 122.9 | |||||||
Income tax expense (benefit) | $ 187.2 | (477.6) | $ 286.1 | |||||
Net impact of adjustments | (765.8) | |||||||
Reclassification of stranded tax effects | [1] | $ 0 | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | 21.00% | 30.40% | 35.00% | |||
Effective Income Tax Rate Reconciliation, Percent | 26.70% | (55.50%) | 32.60% | |||||
Deferred tax liabilities, noncurrent | $ 1,377.2 | $ 1,398.6 | $ 1,377.2 | |||||
Valuation allowance on operating loss carryforward | 0.6 | |||||||
Undistributed earnings of foreign subsidiaries on which deferred income taxes not provided | 57.1 | |||||||
Company's unrecognized tax benefits | 32.3 | 15 | 32.3 | $ 40.4 | $ 46.3 | |||
Unrecognized tax benefits that would affect the effective tax rate | 21.5 | 12 | 21.5 | 23.1 | ||||
Tax-related net interest and penalties | $ 4 | 3.3 | 4 | 4.1 | ||||
Interest charged to earnings | $ (0.8) | 0.1 | $ 0.3 | |||||
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 | $ 3.1 | |||||||
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) | ||||||
Ainsworth [Member] | ||||||||
Tax Credit Carryforward [Line Items] | ||||||||
Deferred Income Tax Expense (Benefit) | $ 10.9 | |||||||
[1] | During the fourth quarter of 2018, we elected to early adopt Accounting Standards Update (“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. | |||||||
[2] | During 2018, we adopted 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. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | $ 7,891.1 | $ 6,850.2 | $ 7,008.5 | |
Reclassification of stranded tax effects | [1] | 0 | ||
Balance | 7,970.5 | 7,891.1 | 6,850.2 | |
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) | 0.4 | 0.5 | 0.6 | |
Foreign Currency Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (16.4) | (43) | (13.1) | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | (19.1) | 26.6 | (29.9) | |
Income tax benefit (expense) | 0 | 0 | 0 | |
Reclassification of stranded tax effects | [2] | 0 | ||
Balance | (35.5) | (16.4) | (43) | |
Unrealized (Loss) Gain on Cash Flow Hedging Derivatives [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [3] | (2.9) | (4.4) | (4.8) |
Reclassification adjustments | [3] | 0.4 | 0.5 | 0.6 |
Current period credit (charge) | [3] | (49.1) | 2.7 | 0 |
Income tax benefit (expense) | [3] | 11.2 | (1.2) | (0.2) |
Reclassification of stranded tax effects | [2],[3] | (0.5) | ||
Balance | [3] | (40.4) | (2.9) | (4.4) |
Pension and Other Postretirement Liabilities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | [4] | (101) | (100) | (134.1) |
Reclassification adjustments | [4] | 7.3 | 10.7 | 13.2 |
Current period credit (charge) | [4] | (19.1) | 9.2 | 39.6 |
Income tax benefit (expense) | [4] | 2.8 | (5.6) | (18.7) |
Reclassification of stranded tax effects | [2],[4] | (15.3) | ||
Balance | [4] | (110) | (101) | (100) |
Unrealized Gain On Available-for-Sale Securities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | 3.6 | 4 | 3.6 | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | 0.7 | (1.7) | 0.6 | |
Income tax benefit (expense) | (0.2) | 0.5 | (0.2) | |
Reclassification of stranded tax effects | [2] | 0.8 | ||
Balance | 4.1 | 3.6 | 4 | |
AOCI Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Balance | (116.7) | (143.4) | (148.4) | |
Reclassification adjustments | 7.7 | 11.2 | 13.8 | |
Current period credit (charge) | (86.6) | 36.8 | 10.3 | |
Income tax benefit (expense) | 13.8 | (6.3) | (19.1) | |
Reclassification of stranded tax effects | [1],[2] | (15) | ||
Balance | $ (181.8) | $ (116.7) | $ (143.4) | |
[1] | During the fourth quarter of 2018, we elected to early adopt Accounting Standards Update (“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. | |||
[2] | During 2018, we adopted 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. | |||
[3] | The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2019 relates to the unrealized losses on the interest rate contracts entered into in November 2018 and June 2018. The prior year credit relates to the gain on the interest rate contract terminated in 2018. For additional information, see Note 10: Derivative Financial Instruments. | |||
[4] | Amortization of net losses and prior service costs was reclassified from accumulated other comprehensive income (loss) to other income (expense) – net. |
Common Shares (Details)
Common Shares (Details) shares in Millions | 12 Months Ended | |
Apr. 30, 2019votes_per_shareshares | Apr. 30, 2018shares | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of votes each holder of a common share outstanding is entitled | 1 | |
Number of votes per share | 10 | |
Number of votes per share after change in beneficial ownership | 1 | |
Number of years required to pass after change in beneficial ownership | 4 years | |
Shares repurchased during period, shares | shares | 0 | 0 |
Shares remaining for repurchase | shares | 3.6 |
Quarterly Selected Data (Unau_3
Quarterly Selected Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Apr. 30, 2019 | Jan. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Apr. 30, 2018 | Jan. 31, 2018 | Oct. 31, 2017 | Jul. 31, 2017 | Apr. 30, 2019 | Apr. 30, 2018 | Apr. 30, 2017 | |||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||||
Net sales | $ 1,902.1 | $ 2,011.9 | $ 2,021.5 | $ 1,902.5 | $ 1,781.3 | $ 1,903.3 | $ 1,923.6 | $ 1,748.9 | $ 7,838 | $ 7,357.1 | $ 7,392.3 | ||||||||
Gross Profit | 692.4 | 773.8 | 771.3 | 678.2 | 690.5 | 728.5 | 755 | 662.1 | 2,915.7 | 2,836.1 | 2,835.3 | ||||||||
Net income | $ 71.5 | $ 121.4 | $ 188.5 | $ 133 | $ 185.9 | $ 831.3 | $ 194.6 | $ 126.8 | $ 514.4 | $ 1,338.6 | $ 592.3 | ||||||||
Net Income (in dollars per share) | $ 0.63 | [1] | $ 1.07 | [1] | $ 1.66 | [1] | $ 1.17 | [1] | $ 1.64 | [1] | $ 7.32 | [1] | $ 1.71 | [1] | $ 1.12 | [1] | $ 4.52 | $ 11.79 | $ 5.11 |
Net Income - Assuming Dilution (in dollars per share) | 0.63 | [1] | 1.07 | [1] | 1.66 | [1] | 1.17 | [1] | 1.64 | [1] | 7.32 | [1] | 1.71 | [1] | 1.12 | [1] | 4.52 | 11.78 | 5.10 |
Cash dividends declared, per common share | $ 0.85 | $ 0.85 | $ 0.85 | $ 0.85 | $ 0.78 | $ 0.78 | $ 0.78 | $ 0.78 | $ 3.40 | $ 3.12 | $ 3 | ||||||||
[1] | Annual net income per common share may not equal the sum of the individual quarters due to differences in the average number of shares outstanding during the respective periods, primarily due to share repurchases. |