Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2019 | Nov. 15, 2019 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-5111 | |
Entity Registrant Name | The J. M. Smucker Company | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-0538550 | |
Entity Address, Address Line One | One Strawberry Lane | |
Entity Address, City or Town | Orrville, | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 44667-0280 | |
City Area Code | (330) | |
Local Phone Number | 682-3000 | |
Title of 12(b) Security | Common shares, no par value | |
Trading Symbol | SJM | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000091419 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-30 | |
Entity Common Stock, Shares Outstanding | 114,056,389 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Income Statement [Abstract] | |||||
Net sales | $ 1,957.8 | $ 2,021.5 | $ 3,736.7 | $ 3,924 | |
Cost of products sold | 1,203.8 | 1,250.2 | 2,283.1 | 2,474.5 | |
Gross Profit | 754 | 771.3 | 1,453.6 | 1,449.5 | |
Selling, distribution, and administrative expenses | 361.5 | 382.4 | 742 | 765.7 | |
Amortization | 58.8 | 59.7 | 117.6 | 120.2 | |
Other special project costs | [1],[2] | 3.3 | 25.4 | 6.6 | 33.1 |
Other operating expense (income) – net | 0.6 | (26.7) | 0 | (26.9) | |
Operating Income | 329.8 | 330.5 | 587.4 | 557.4 | |
Interest expense – net | (49.1) | (53.6) | (98.5) | (107.2) | |
Other income (expense) – net | (1.6) | (7.5) | (3.1) | (7.7) | |
Income Before Income Taxes | 279.1 | 269.4 | 485.8 | 442.5 | |
Income tax expense | 67.9 | 80.9 | 120 | 121 | |
Net Income | $ 211.2 | $ 188.5 | $ 365.8 | $ 321.5 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 1.85 | $ 1.66 | $ 3.21 | $ 2.83 | |
Net Income - Assuming Dilution (in dollars per share) | $ 1.85 | $ 1.66 | $ 3.21 | $ 2.83 | |
[1] | Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . | ||||
[2] | Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . |
Condensed Statements of Conso_2
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 211.2 | $ 188.5 | $ 365.8 | $ 321.5 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 0.6 | (5.6) | 5.1 | (11.7) |
Cash flow hedging derivative activity, net of tax | (33.8) | 6.1 | (74.6) | 8.2 |
Pension and other postretirement benefit plans activity, net of tax | 1.4 | 1.6 | 2.5 | 3.2 |
Available-for-sale securities activity, net of tax | 0.1 | 0.3 | 0.4 | 0.6 |
Total Other Comprehensive Income (Loss) | (31.7) | 2.4 | (66.6) | 0.3 |
Comprehensive Income | $ 179.5 | $ 190.9 | $ 299.2 | $ 321.8 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 | |
Current Assets | |||
Cash and cash equivalents | $ 48.8 | $ 101.3 | |
Trade receivables, less allowance for doubtful accounts | 522.4 | 503.8 | |
Inventories: | |||
Finished products | 667.3 | 590.8 | |
Raw materials | 346 | 319.5 | |
Total Inventory | 1,013.3 | 910.3 | |
Other current assets | 74.7 | 109.8 | |
Total Current Assets | 1,659.2 | 1,625.2 | |
Property, Plant, and Equipment | |||
Land and land improvements | 123.4 | 122.1 | |
Buildings and fixtures | 953.2 | 903.2 | |
Machinery and equipment | 2,354.4 | 2,185 | |
Construction in progress | 171.6 | 321.8 | |
Gross Property, Plant, and Equipment | 3,602.6 | 3,532.1 | |
Accumulated depreciation | (1,687.1) | (1,619.7) | |
Total Property, Plant, and Equipment | 1,915.5 | 1,912.4 | |
Other Noncurrent Assets | |||
Operating lease right-of-use assets | 153.2 | 0 | |
Goodwill | 6,313.6 | 6,310.9 | |
Other intangible assets – net | 6,602.7 | 6,718.8 | |
Other noncurrent assets | 146.8 | 144 | |
Total Other Noncurrent Assets | 13,216.3 | 13,173.7 | |
Total Assets | 16,791 | 16,711.3 | |
Current Liabilities | |||
Accounts payable | 521.8 | 591 | |
Accrued trade marketing and merchandising | 214.2 | 142.7 | |
Current portion of long-term debt | [1] | 799.5 | 798.5 |
Short-term borrowings | 327.9 | 426 | |
Current operating lease liabilities | 44.4 | 0 | |
Other current liabilities | 402.3 | 383.3 | |
Total Current Liabilities | 2,310.1 | 2,341.5 | |
Noncurrent Liabilities | |||
Long-term debt, less current portion | [1] | 4,584.5 | 4,686.3 |
Deferred income taxes | 1,377.6 | 1,398.6 | |
Noncurrent operating lease liabilities | 116.2 | 0 | |
Other noncurrent liabilities | 307.3 | 314.4 | |
Total Noncurrent Liabilities | 6,385.6 | 6,399.3 | |
Total Liabilities | 8,695.7 | 8,740.8 | |
Shareholders’ Equity | |||
Common shares | 29 | 28.9 | |
Additional capital | 5,781.7 | 5,755.8 | |
Retained income | 2,533 | 2,367.6 | |
Accumulated other comprehensive income (loss) | (248.4) | (181.8) | |
Total Shareholders’ Equity | 8,095.3 | 7,970.5 | |
Total Liabilities and Shareholders’ Equity | $ 16,791 | $ 16,711.3 | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, terminated interest rate contracts, and offering discounts. |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Operating Activities | ||
Net income | $ 365.8 | $ 321.5 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Depreciation | 103.4 | 102.9 |
Amortization | 117.6 | 120.2 |
Share-based compensation expense | 13.7 | 10.5 |
Gain on divestiture | 0 | (26.6) |
Other noncash adjustments – net | 6.6 | 3 |
Changes in assets and liabilities, net of effect from acquisition and divestiture: | ||
Trade receivables | (18.2) | (111.2) |
Inventories | (102) | (60.4) |
Other current assets | 13.3 | 17.6 |
Accounts payable | (41.3) | 15.2 |
Accrued liabilities | 25.7 | 60.4 |
Income and other taxes | (32.6) | 18.5 |
Other – net | (6.5) | (25.7) |
Net Cash Provided by (Used for) Operating Activities | 445.5 | 445.9 |
Investing Activities | ||
Business acquired, net of cash acquired | 0 | (1,903) |
Additions to property, plant, and equipment | (136.4) | (179.1) |
Proceeds from divestiture | 0 | 372.1 |
Other – net | 32.2 | (8.9) |
Net Cash Provided by (Used for) Investing Activities | (104.2) | (1,718.9) |
Financing Activities | ||
Short-term borrowings (repayments) – net | (102.9) | 246 |
Proceeds from long-term debt | 0 | 1,500 |
Repayments of long-term debt | (100) | (300) |
Quarterly dividends paid | (196.6) | (184.9) |
Purchase of treasury shares | (3.5) | (5) |
Proceeds from stock option exercises | 7 | 0 |
Other – net | 0.8 | 0.1 |
Net Cash Provided by (Used for) Financing Activities | (395.2) | 1,256.2 |
Effect of exchange rate changes on cash | 1.4 | (4.6) |
Net increase (decrease) in cash and cash equivalents | (52.5) | (21.4) |
Cash and cash equivalents at beginning of period | 101.3 | 192.6 |
Cash and Cash Equivalents at End of Period | $ 48.8 | $ 171.2 |
Condensed Statements of Conso_4
Condensed Statements of Consolidated Shareholders' Equity (Unaudited) - USD ($) $ in Millions | Total | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) |
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 133 | 133 | |||
Other comprehensive income (loss) | (2.1) | (2.1) | |||
Comprehensive Income | 130.9 | ||||
Purchase of treasury shares | (4.7) | $ 0 | (4.6) | (0.1) | |
Purchase of treasury shares, shares | (43,913) | ||||
Stock plans | 10 | $ 0 | 10 | ||
Stock plans, shares | 243,521 | ||||
Cash dividends declared | (96.5) | (96.5) | |||
Other | 0 | 0 | |||
Balance at Jul. 31, 2018 | 7,930.8 | $ 28.9 | 5,745.1 | 2,275.6 | (118.8) |
Balance, shares at Jul. 31, 2018 | 113,772,448 | ||||
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 321.5 | ||||
Other comprehensive income (loss) | 0.3 | ||||
Comprehensive Income | 321.8 | ||||
Balance at Oct. 31, 2018 | 8,030 | $ 28.9 | 5,749.9 | 2,367.6 | (116.4) |
Balance, shares at Oct. 31, 2018 | 113,760,080 | ||||
Balance at Jul. 31, 2018 | 7,930.8 | $ 28.9 | 5,745.1 | 2,275.6 | (118.8) |
Balance, shares at Jul. 31, 2018 | 113,772,448 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 188.5 | 188.5 | |||
Other comprehensive income (loss) | 2.4 | 2.4 | |||
Comprehensive Income | 190.9 | ||||
Purchase of treasury shares | (0.3) | $ 0 | (0.3) | 0 | |
Purchase of treasury shares, shares | (2,485) | ||||
Stock plans | 5.1 | $ 0 | 5.1 | ||
Stock plans, shares | (9,883) | ||||
Cash dividends declared | (96.5) | (96.5) | |||
Other | 0 | $ 0 | 0 | ||
Balance at Oct. 31, 2018 | 8,030 | $ 28.9 | 5,749.9 | 2,367.6 | (116.4) |
Balance, shares at Oct. 31, 2018 | 113,760,080 | ||||
Balance at Apr. 30, 2019 | $ 7,970.5 | $ 28.9 | 5,755.8 | 2,367.6 | (181.8) |
Balance, shares at Apr. 30, 2019 | 113,700,000 | 113,742,296 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 154.6 | 154.6 | |||
Other comprehensive income (loss) | (34.9) | (34.9) | |||
Comprehensive Income | 119.7 | ||||
Purchase of treasury shares | (2.9) | $ 0 | (2.7) | (0.2) | |
Purchase of treasury shares, shares | (22,793) | ||||
Stock plans | 20.5 | $ 0.1 | 20.4 | ||
Stock plans, shares | 330,289 | ||||
Cash dividends declared | (100.1) | (100.1) | |||
Other | 0 | 0 | |||
Balance at Jul. 31, 2019 | 8,007.7 | $ 29 | 5,773.5 | 2,421.9 | (216.7) |
Balance, shares at Jul. 31, 2019 | 114,049,792 | ||||
Balance at Apr. 30, 2019 | $ 7,970.5 | $ 28.9 | 5,755.8 | 2,367.6 | (181.8) |
Balance, shares at Apr. 30, 2019 | 113,700,000 | 113,742,296 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 365.8 | ||||
Other comprehensive income (loss) | (66.6) | ||||
Comprehensive Income | 299.2 | ||||
Balance at Oct. 31, 2019 | $ 8,095.3 | $ 29 | 5,781.7 | 2,533 | (248.4) |
Balance, shares at Oct. 31, 2019 | 114,100,000 | 114,059,744 | |||
Balance at Jul. 31, 2019 | $ 8,007.7 | $ 29 | 5,773.5 | 2,421.9 | (216.7) |
Balance, shares at Jul. 31, 2019 | 114,049,792 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 211.2 | 211.2 | |||
Other comprehensive income (loss) | (31.7) | (31.7) | |||
Comprehensive Income | 179.5 | ||||
Purchase of treasury shares | (0.6) | $ 0 | (0.6) | 0 | |
Purchase of treasury shares, shares | (4,930) | ||||
Stock plans | 8.8 | $ 0 | 8.8 | ||
Stock plans, shares | 14,882 | ||||
Cash dividends declared | (100.1) | (100.1) | |||
Other | 0 | 0 | |||
Balance at Oct. 31, 2019 | $ 8,095.3 | $ 29 | $ 5,781.7 | $ 2,533 | $ (248.4) |
Balance, shares at Oct. 31, 2019 | 114,100,000 | 114,059,744 |
Condensed Statements of Conso_5
Condensed Statements of Consolidated Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Oct. 31, 2019 | Jul. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | |
Cash dividends declared (in dollars per share) | $ 0.88 | $ 0.88 | $ 0.85 | $ 0.85 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The unaudited interim condensed consolidated financial statements of The J. M. Smucker Company (“Company,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. Operating results for the six months ended October 31, 2019 , are not necessarily indicative of the results that may be expected for the year ending April 30, 2020. For further information, reference is made to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended April 30, 2019 . |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Oct. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. ASU 2018-15 is effective for us on May 1, 2020, but we elected to early adopt on May 1, 2019, as permitted, on a prospective basis. During the six months ended October 31, 2019, we capitalized implementation costs related to third-party cloud computing services of $2.4 , which is reflected in other noncurrent assets in the Condensed Consolidated Balance Sheet. 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, as well as 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 U.S. Securities and Exchange Commission (“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. This rule was effective on November 5, 2018, and as a result, we adopted a portion of the amendments during 2019. This rule also amended the disclosure requirements related to the analysis of shareholders’ equity, which was expanded to the interim financial statements and was effective for us on May 1, 2019. While the new shareholders’ equity disclosure requirements impacted our interim financial statements beginning May 1, 2019, the amendments in this rule did not have a material impact on our other financial statements and disclosures. In February 2016, in an effort to increase transparency and comparability among organizations, 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. We adopted the requirements of ASU 2016-02 and all related amendments on May 1, 2019, utilizing an optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. This transition method also does not require new lease disclosures for periods prior to the effective date. We elected certain practical expedients available under the guidance, including a package of practical expedients which allowed us to not reassess prior conclusions related to existing contracts containing leases, lease classification, and initial direct costs. Adoption of ASU 2016-02 on May 1, 2019, resulted in the recognition of operating lease right-of-use assets and lease liabilities of $159.2 and $166.6 , respectively, in the Condensed Consolidated Balance Sheet. The difference between the additional lease assets and lease liabilities was primarily due to an existing deferred rent balance that was reclassified to the operating lease liability. The new standard did not materially impact our Condensed Statement of Consolidated Income or Condensed Statement of Consolidated Cash Flows. The additional disclosures required are presented within Note 12: Leases . |
Acquisition
Acquisition | 6 Months Ended |
Oct. 31, 2019 | |
Business Combinations [Abstract] | |
Acquisition | On May 14, 2018, we acquired the stock of Ainsworth Pet Nutrition, LLC (“Ainsworth”), a leading producer, distributor, and marketer of premium pet food and pet snacks, predominantly within the U.S., in an all-cash transaction valued at $1.9 billion . 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 . During 2019, 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 allocation included total intangible assets of $1.3 billion . The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and, as a result, the excess was allocated to goodwill. As a result of the acquisition, we recognized total goodwill of $617.8 within the U.S. Retail Pet Foods segment, which represented the value we expected to achieve through the implementation of operational synergies and growth opportunities as a result of integrating 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 $400.7 remains deductible at October 31, 2019 . 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 October 31, 2019 |
Integration and Restructuring C
Integration and Restructuring Costs | 6 Months Ended |
Oct. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
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 are reported in other special project costs in the Condensed Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets. Integration Costs: Total 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 one-third to be employee-related costs. 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. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2019 2019 2018 2019 2018 Employee-related costs $ 0.6 $ 6.9 $ 1.4 $ 7.8 $ 16.9 Other transition and termination costs 2.7 7.3 5.2 8.4 21.8 Total integration costs $ 3.3 $ 14.2 $ 6.6 $ 16.2 $ 38.7 Noncash charges of $0.2 and $1.0 were included in the integration costs incurred during the three months ended October 31, 2019 and 2018, respectively, and $0.4 and $1.8 during the six months ended October 31, 2019 and 2018, respectively. Cumulative noncash charges incurred to date were $4.5 and primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.3 and $1.6 at October 31, 2019 , and April 30, 2019, respectively. Restructuring Costs: We completed the restructuring activities associated with our organization optimization program as of April 30, 2019, and as a result, we did no t incur any related costs during the three and six months ended October 31, 2019 . We incurred restructuring costs of $11.2 and $16.9 during the three and six months ended October 31, 2018 , respectively, primarily consisting of employee-related costs. Total restructuring costs of $74.6 were incurred related to the program, which included $48.7 and $25.9 of employee-related costs and other transition and termination costs, respectively. Noncash charges included in the total restructuring costs were $15.2 , of which $0.9 and $1.0 were incurred during the three and six months ended October 31, 2018 , respectively. Noncash charges primarily consisted of accelerated depreciation. The obligation related to severance costs and retention bonuses was $0.1 and $0.8 at October 31, 2019 , and April 30, 2019, respectively. |
Divestiture
Divestiture | 6 Months Ended |
Oct. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | |
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. We recognized a pre-tax gain of $27.7 related to this transaction, of which $26.6 was recognized during the second quarter of 2019 and was included in other operating expense (income) – net within the Condensed Statement of Consolidated Income. |
Reportable Segments
Reportable Segments | 6 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segments | We operate in one industry: the manufacturing and marketing of food and beverage products. We have four reportable segments: U.S. Retail Pet Foods, U.S. Retail Coffee, U.S. Retail Consumer Foods, and International and Away From Home. The U.S. Retail Pet Foods segment primarily includes the domestic sales of Rachael Ray TM Nutrish ® , Meow Mix ® , Milk-Bone ® , Natural Balance ® , Kibbles ’n Bits ® , 9Lives ® , Nature’s Recipe ® , and Pup-Peroni ® branded products; the U.S. Retail Coffee segment primarily includes the domestic sales of Folgers ® , Dunkin’ Donuts ® , and Café Bustelo ® branded coffee; and the U.S. Retail Consumer Foods segment primarily includes the domestic sales of Smucker’s ® , Jif ® , and Crisco ® 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). 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. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net sales: U.S. Retail Pet Foods $ 709.9 $ 728.1 $ 1,379.8 $ 1,399.3 U.S. Retail Coffee 543.4 544.9 1,009.1 1,034.4 U.S. Retail Consumer Foods 426.1 461.9 828.3 945.2 International and Away From Home 278.4 286.6 519.5 545.1 Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 Segment profit: U.S. Retail Pet Foods $ 137.0 $ 123.9 $ 257.1 $ 224.3 U.S. Retail Coffee 182.5 174.3 311.4 322.1 U.S. Retail Consumer Foods 91.4 134.3 172.4 231.6 International and Away From Home 50.4 56.7 82.7 100.1 Total segment profit $ 461.3 $ 489.2 $ 823.6 $ 878.1 Amortization (58.8 ) (59.7 ) (117.6 ) (120.2 ) Interest expense – net (49.1 ) (53.6 ) (98.5 ) (107.2 ) Unallocated derivative gains (losses) 0.9 (0.1 ) 29.9 (22.1 ) Other special project costs (A) (3.3 ) (25.4 ) (6.6 ) (33.1 ) Corporate administrative expenses (70.3 ) (73.5 ) (141.9 ) (145.3 ) Other income (expense) – net (1.6 ) (7.5 ) (3.1 ) (7.7 ) Income before income taxes $ 279.1 $ 269.4 $ 485.8 $ 442.5 (A) Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . The following table presents certain geographical information. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net sales: United States $ 1,815.9 $ 1,873.2 $ 3,473.5 $ 3,645.5 International: Canada $ 113.4 $ 114.3 $ 210.2 $ 212.5 All other international 28.5 34.0 53.0 66.0 Total international $ 141.9 $ 148.3 $ 263.2 $ 278.5 Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 The following table presents product category information. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Primary Reportable Segment (A) Coffee $ 627.1 $ 635.5 $ 1,173.8 $ 1,213.8 U.S. Retail Coffee Dog food 302.6 334.9 598.2 643.4 U.S. Retail Pet Foods Cat food 213.8 207.3 409.7 396.3 U.S. Retail Pet Foods Pet snacks 210.0 201.9 403.2 389.7 U.S. Retail Pet Foods Peanut butter 175.4 186.9 353.3 386.1 U.S. Retail Consumer Foods Fruit spreads 86.5 83.0 175.7 168.6 U.S. Retail Consumer Foods Frozen handheld 93.4 78.7 164.9 143.2 U.S. Retail Consumer Foods Shortening and oils 71.8 79.3 123.3 132.2 U.S. Retail Consumer Foods Portion control 42.5 41.6 81.9 82.5 International and Away From Home Juices and beverages 32.4 33.9 63.6 66.1 U.S. Retail Consumer Foods Baking mixes and ingredients 26.0 58.4 39.7 142.7 International and Away From Home (B) Other 76.3 80.1 149.4 159.4 International and Away From Home Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. (B) During the three and six months ended October 31, 2018, the primary reportable segment was U.S. Retail Consumer Foods, as the majority of the net sales within this category were related to the divested U.S. baking business. For more information, see Note 5: Divestiture . |
Earnings per Share
Earnings per Share | 6 Months Ended |
Oct. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | The following table sets forth the computation of net income per common share and net income per common share – assuming dilution under the two-class method. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net income $ 211.2 $ 188.5 $ 365.8 $ 321.5 Less: Net income allocated to participating securities 1.3 1.0 2.1 1.7 Net income allocated to common stockholders $ 209.9 $ 187.5 $ 363.7 $ 319.8 Weighted-average common shares outstanding 113.4 113.2 113.3 113.1 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 113.4 113.2 113.3 113.1 Net income per common share $ 1.85 $ 1.66 $ 3.21 $ 2.83 Net income per common share – assuming dilution $ 1.85 $ 1.66 $ 3.21 $ 2.83 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Long-term debt consists of the following: October 31, 2019 April 30, 2019 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 2.20% Senior Notes due December 6, 2019 $ 300.0 $ 300.0 $ 300.0 $ 299.5 2.50% Senior Notes due March 15, 2020 500.0 499.5 500.0 499.0 3.50% Senior Notes due October 15, 2021 750.0 764.8 750.0 768.4 3.00% Senior Notes due March 15, 2022 400.0 398.3 400.0 398.0 3.50% Senior Notes due March 15, 2025 1,000.0 995.6 1,000.0 995.2 3.38% Senior Notes due December 15, 2027 500.0 496.5 500.0 496.2 4.25% Senior Notes due March 15, 2035 650.0 643.7 650.0 643.5 4.38% Senior Notes due March 15, 2045 600.0 586.3 600.0 586.0 Term Loan Credit Agreement due May 14, 2021 700.0 699.3 800.0 799.0 Total long-term debt $ 5,400.0 $ 5,384.0 $ 5,500.0 $ 5,484.8 Current portion of long-term debt 800.0 799.5 800.0 798.5 Total long-term debt, less current portion $ 4,600.0 $ 4,584.5 $ 4,700.0 $ 4,686.3 (A) Represents the carrying amount included in the Condensed 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 October 31, 2019 , unrealized losses of $146.2 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 senior unsecured delayed-draw Term Loan Credit Agreement (“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 3: Acquisition . Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or London Interbank Offered Rate (“LIBOR”), based on our election, and are 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 October 31, 2019 , we have prepaid $800.0 on the Term Loan to date, including $100.0 in the second quarter of 2020. The interest rate on the Term Loan at October 31, 2019 , was 2.94 percent . Subsequent to the second quarter, on November 14, 2019, we entered into an amendment to the Term Loan that decreased the applicable margins on LIBOR, based on our long-term unsecured debt rating. This amendment did not have a material impact on our condensed consolidated financial statements. All of our Senior Notes outstanding at October 31, 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 October 31, 2019 , or April 30, 2019 . 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 October 31, 2019 , and April 30, 2019 , we had $327.9 and $426.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 2.07 percent and 2.75 percent , respectively. Interest paid totaled $78.4 and $84.1 for the three months ended October 31, 2019 and 2018 , respectively, and $100.0 and $107.4 , for the six months ended October 31, 2019 and 2018 , respectively. This differs from interest expense due to the effect of interest rate contracts, amortization of debt issuance costs and discounts, capitalized interest, and payment of other debt fees. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 6 Months Ended |
Oct. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | The components of our net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below. Three Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Service cost $ 0.4 $ 0.5 $ 0.4 $ 0.5 Interest cost 5.3 5.8 0.6 0.6 Expected return on plan assets (6.1 ) (6.7 ) — — Amortization of net actuarial loss (gain) 2.0 2.1 — (0.2 ) Amortization of prior service cost (credit) 0.2 0.3 (0.3 ) (0.3 ) Net periodic benefit cost $ 1.8 $ 2.0 $ 0.7 $ 0.6 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Service cost $ 0.8 $ 1.1 $ 0.9 $ 0.9 Interest cost 10.5 11.7 1.2 1.2 Expected return on plan assets (12.1 ) (13.5 ) — — Amortization of net actuarial loss (gain) 4.0 4.1 (0.1 ) (0.3 ) Amortization of prior service cost (credit) 0.4 0.5 (0.6 ) (0.6 ) Net periodic benefit cost $ 3.6 $ 3.9 $ 1.4 $ 1.2 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
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 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 $146.2 were deferred in accumulated other comprehensive income (loss) at October 31, 2019 . 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 to interest expense. To date, we have recognized $37.1 of the gain, of which $2.1 and $4.1 was recognized during the three and six months ended October 31, 2019 , respectively. The remaining gain will be recognized as follows: $4.0 through the remainder of 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 Condensed Consolidated Balance Sheets. October 31, 2019 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives designated as hedging instruments: Interest rate contracts $ — $ 146.2 $ — $ — Total derivatives designated as hedging instruments $ — $ 146.2 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 5.6 $ 3.0 $ 0.5 $ 0.5 Foreign currency exchange contracts 0.2 0.3 — — Total derivatives not designated as hedging instruments $ 5.8 $ 3.3 $ 0.5 $ 0.5 Total derivative instruments $ 5.8 $ 149.5 $ 0.5 $ 0.5 April 30, 2019 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities 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 derivatives not designated as hedging instruments $ 6.2 $ 26.0 $ — $ — Total derivative instruments $ 6.2 $ 75.1 $ — $ — 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 October 31, 2019 , and April 30, 2019 , we maintained cash margin account balances of $8.6 and $40.7 , respectively, included in other current assets in the Condensed Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the Condensed Statements of Consolidated Cash Flows. In the event of default and immediate net settlement of all of our open positions with individual counterparties, all of our exchange-traded 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 Condensed Statements of Consolidated Income, was $49.1 and $53.6 for the three months ended October 31, 2019 and 2018 , respectively, and was $98.5 and $107.2 for the six months ended October 31, 2019 and 2018, respectively. The following table presents information on the pre-tax gains and losses recognized on interest rate contracts designated as cash flow hedges. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Gains (losses) recognized in other comprehensive income (loss) $ (44.1 ) $ 7.9 $ (97.1 ) $ 10.5 Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense (0.1 ) (0.1 ) (0.2 ) (0.2 ) Change in accumulated other comprehensive income (loss) $ (44.0 ) $ 8.0 $ (96.9 ) $ 10.7 Included as a component of accumulated other comprehensive income (loss) at October 31, 2019 , and April 30, 2019 , were deferred net pre-tax losses of $149.4 and $52.5 , respectively, related to the active and terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) at October 31, 2019 , and April 30, 2019 , was $34.4 and $12.1 , respectively. Approximately $5.6 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. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Gains (losses) on commodity contracts $ (10.1 ) $ (3.2 ) $ 2.5 $ (30.1 ) Gains (losses) on foreign currency exchange contracts (0.1 ) 0.8 (1.1 ) 1.5 Total gains (losses) recognized in cost of products sold $ (10.2 ) $ (2.4 ) $ 1.4 $ (28.6 ) Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (10.2 ) $ (2.4 ) $ 1.4 $ (28.6 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (11.1 ) (2.3 ) (28.5 ) (6.5 ) Unallocated derivative gains (losses) $ 0.9 $ (0.1 ) $ 29.9 $ (22.1 ) The net cumulative unallocated derivative losses were $22.6 and $52.5 at October 31, 2019 , and April 30, 2019 , respectively. The following table presents the gross notional value of outstanding derivative contracts. October 31, 2019 April 30, 2019 Commodity contracts $ 432.8 $ 544.8 Foreign currency exchange contracts 93.9 144.9 Interest rate contracts 800.0 800.0 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments and Fair Value Measurements | Financial instruments, other than derivatives, that potentially subject us to significant concentrations of credit risk consist principally of cash investments, short-term borrowings, and trade receivables. The carrying value of these financial instruments approximates fair value. Our remaining financial instruments, with the exception of long-term debt, are recognized at estimated fair value in the Condensed Consolidated Balance Sheets. The following table provides information on the carrying amounts and fair values of our financial instruments. October 31, 2019 April 30, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 40.5 $ 40.5 $ 40.9 $ 40.9 Derivative financial instruments – net (143.7 ) (143.7 ) (68.9 ) (68.9 ) Total long-term debt (5,384.0 ) (5,640.7 ) (5,484.8 ) (5,504.0 ) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at October 31, 2019 Marketable securities and other investments: (A) Equity mutual funds $ 8.8 $ — $ — $ 8.8 Municipal obligations — 31.3 — 31.3 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net 2.6 — — 2.6 Foreign currency exchange contracts – net (0.1 ) — — (0.1 ) Interest rate contracts — (146.2 ) — (146.2 ) Total long-term debt (C) (4,910.1 ) (730.6 ) — (5,640.7 ) Total financial instruments measured at fair value $ (4,898.4 ) $ (845.5 ) $ — $ (5,743.9 ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at April 30, 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 ) (A) Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less . Based on the short-term nature of these money market funds, carrying value approximates fair value. As of October 31, 2019 , our municipal obligations are scheduled to mature as follows: $0.4 in 2020, $1.0 in 2021, $1.6 in 2022, $1.0 in 2023, and the remaining $27.3 in 2024 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. The Level 2 interest rate 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 . |
Leases
Leases | 6 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Leases | We lease certain warehouses, manufacturing facilities, office space, equipment, and vehicles, primarily through operating lease agreements. We have elected to not recognize leases with a term of 12 months or less on the balance sheet. Instead, we recognize the related lease expense on a straight-line basis over the lease term. Although the majority of our right-of-use asset and lease liability balances consist of leases with renewal options, we generally are not reasonably certain to exercise them, and, therefore, the optional periods do not typically impact the lease term. Certain leases also include termination provisions or options to purchase the leased property. Since we are not reasonably certain to exercise these types of options, minimum lease payments do not include any amounts related to these termination or purchase options. Our lease agreements generally do not contain residual value guarantees or restrictive covenants that are material. We determine if an agreement is or contains a lease at inception by evaluating whether an identified asset exists that we control over the term of the arrangement. A lease commences when the lessor makes the identified asset available for our use. We generally account for lease and non-lease components as a single lease component. Minimum lease payments do not include variable lease payments other than those that depend on an index or rate. For the majority of our leases, the interest rate implicit in the lease cannot be readily determined, so we utilize our incremental borrowing rate to present value lease payments using information available at the lease commencement date. We consider our credit rating and the current economic environment in determining this collateralized rate. For the initial implementation of the lease standard, the incremental borrowing rate at May 1, 2019, was used to calculate all operating lease liabilities. As of October 31, 2019 , we have entered into a lease commitment related to a distribution center for which the lease has not yet commenced. We anticipate that the lease will begin during the third quarter of 2020. Upon commencement, we expect to recognize a right-of-use asset and lease liability of approximately $27.0 in the Condensed Consolidated Balance Sheet. The following table sets forth the right-of-use assets and lease liabilities recognized in the Condensed Consolidated Balance Sheet. October 31, 2019 Operating lease right-of-use assets $ 153.2 Operating lease liabilities: Current operating lease liabilities $ 44.4 Noncurrent operating lease liabilities 116.2 Total operating lease liabilities $ 160.6 Finance lease right-of-use assets: Machinery and equipment $ 12.1 Accumulated depreciation (6.1 ) Total property, plant, and equipment $ 6.0 Finance lease liabilities: Other current liabilities $ 2.4 Other noncurrent liabilities 3.7 Total finance lease liabilities $ 6.1 The following table summarizes the components of lease expense. Three Months Ended October 31, 2019 Six Months Ended October 31, 2019 Operating lease cost $ 12.9 $ 25.3 Finance lease cost: Amortization of right-of-use assets 0.8 1.6 Interest on lease liabilities — 0.1 Variable lease cost 6.3 12.6 Short-term lease cost 9.7 17.4 Sublease income (1.5 ) (2.3 ) Net lease cost $ 28.2 $ 54.7 The following table sets forth cash flow and noncash information related to leases. Six Months Ended October 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25.3 Operating cash flows from finance leases 0.1 Financing cash flows from finance leases 1.5 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 16.2 Finance leases 0.8 The following table summarizes the maturity of our lease liabilities by fiscal year. October 31, 2019 Operating Leases Finance Leases 2020 (remainder of the year) $ 26.0 $ 1.4 2021 43.1 2.1 2022 36.4 1.5 2023 30.2 0.7 2024 17.2 0.4 2025 and beyond 19.8 0.3 Total undiscounted minimum lease payments $ 172.7 $ 6.4 Less: Imputed interest 12.1 0.3 Lease liabilities $ 160.6 $ 6.1 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. The following table sets forth the weighted average remaining lease term and discount rate. October 31, 2019 Weighted average remaining lease term (in years): Operating leases 4.4 Finance leases 3.3 Weighted average discount rate: Operating leases 3.2 % Finance leases 3.2 % |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The effective tax rates for the three months ended October 31, 2019 and 2018 , were 24.3 and 30.0 percent , respectively, and for the six months ended October 31, 2019 and 2018 , were 24.7 and 27.3 percent , respectively. During the three and six months ended October 31, 2019 , the effective tax rate varied from the U.S. statutory income tax rate of 21.0 percent primarily due to the impact of state income taxes. The effective tax rates for the three and six months ended October 31, 2018, were also unfavorably impacted by the state income taxes, as well as the income tax expense related to the sale of the U.S. baking business. Within the next 12 months , it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $2.8 , primarily as a result of expiring statute of limitations periods. As of October 31, 2019 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Oct. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2019 $ (35.5 ) $ (40.4 ) $ (110.0 ) $ 4.1 $ (181.8 ) Reclassification adjustments — 0.2 3.2 — 3.4 Current period credit (charge) 5.1 (97.1 ) — 0.5 (91.5 ) Income tax benefit (expense) — 22.3 (0.7 ) (0.1 ) 21.5 Balance at October 31, 2019 $ (30.4 ) $ (115.0 ) $ (107.5 ) $ 4.5 $ (248.4 ) Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2018 $ (16.4 ) $ (2.9 ) $ (101.0 ) $ 3.6 $ (116.7 ) Reclassification adjustments — 0.2 4.3 — 4.5 Current period credit (charge) (11.7 ) 10.5 — 0.8 (0.4 ) Income tax benefit (expense) — (2.5 ) (1.1 ) (0.2 ) (3.8 ) Balance at October 31, 2018 $ (28.1 ) $ 5.3 $ (97.8 ) $ 4.2 $ (116.4 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period credit (charge) relates to the unrealized gains (losses) on the interest rate contracts entered into in November 2018 and June 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. |
Contingencies
Contingencies | 6 Months Ended |
Oct. 31, 2019 | |
Contingency [Abstract] | |
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 Pet Brands, the significant majority of which were settled and paid during the second half of 2019. While we cannot predict with certainty the ultimate results of these proceedings or potential settlements associated with these or other matters, we have accrued losses for certain contingent liabilities that we have determined are probable and reasonably estimable at October 31, 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 would have a material adverse effect on our financial position, results of operations, or cash flows. On May 9, 2011, an organization named Council for Education and Research on Toxics (“Plaintiff” or “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 California Health and Safety Code Section 25249.5, the California Safe Drinking Water and Toxic Enforcement Act of 1986 (better known as “Proposition 65”). The Plaintiff seeks equitable relief, including providing warnings to consumers of coffee products, as well as civil penalties in the amount of the statutory maximum of $2,500 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 third phase of the trial 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 the defendants’ requests to stay the trial on remedies until a final determination was made on OEHHA’s proposed regulation. During the interim period, the California Office of Administrative Law approved the proposed regulation on June 3, 2019, and the regulation went into effect on October 1, 2019. In response to CERT’s objection, the defendants amended their answer to raise the regulation as a complete defense to the claims. CERT unsuccessfully challenged the defendants’ right to assert the regulation as an affirmative defense but continues to challenge the validity of the regulation. A hearing on CERT’s challenge is scheduled for January 22, 2020. At this stage of the proceedings, prior to and without knowing whether the regulation will stand as a defense or 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 October 31, 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 earlier trial court rulings should the regulation be held invalid. 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 | 6 Months Ended |
Oct. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | The following table sets forth common share information. October 31, 2019 April 30, 2019 Common shares authorized 300.0 300.0 Common shares outstanding 114.1 113.7 Treasury shares 32.4 32.8 Repurchase Program: During the six months ended October 31, 2019 and 2018 , we did no t repurchase any common shares under a repurchase plan authorized by the Board of Directors (the “Board”). Share repurchases during the six months ended October 31, 2019 and 2018 , consisted of shares repurchased from stock plan recipients in lieu of cash payments. At October 31, 2019 , we had approximately 3.6 million |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Oct. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“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. ASU 2018-15 is effective for us on May 1, 2020, but we elected to early adopt on May 1, 2019, as permitted, on a prospective basis. During the six months ended October 31, 2019, we capitalized implementation costs related to third-party cloud computing services of $2.4 , which is reflected in other noncurrent assets in the Condensed Consolidated Balance Sheet. 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, as well as 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 U.S. Securities and Exchange Commission (“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. This rule was effective on November 5, 2018, and as a result, we adopted a portion of the amendments during 2019. This rule also amended the disclosure requirements related to the analysis of shareholders’ equity, which was expanded to the interim financial statements and was effective for us on May 1, 2019. While the new shareholders’ equity disclosure requirements impacted our interim financial statements beginning May 1, 2019, the amendments in this rule did not have a material impact on our other financial statements and disclosures. In February 2016, in an effort to increase transparency and comparability among organizations, 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. We adopted the requirements of ASU 2016-02 and all related amendments on May 1, 2019, utilizing an optional transition method that allows for a cumulative-effect adjustment in the period of adoption with no restatement of prior periods. This transition method also does not require new lease disclosures for periods prior to the effective date. We elected certain practical expedients available under the guidance, including a package of practical expedients which allowed us to not reassess prior conclusions related to existing contracts containing leases, lease classification, and initial direct costs. Adoption of ASU 2016-02 on May 1, 2019, resulted in the recognition of operating lease right-of-use assets and lease liabilities of $159.2 and $166.6 , respectively, in the Condensed Consolidated Balance Sheet. The difference between the additional lease assets and lease liabilities was primarily due to an existing deferred rent balance that was reclassified to the operating lease liability. The new standard did not materially impact our Condensed Statement of Consolidated Income or Condensed Statement of Consolidated Cash Flows. The additional disclosures required are presented within Note 12: Leases . |
Integration and Restructuring_2
Integration and Restructuring Costs (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Integration costs | The following table summarizes our integration costs incurred related to the Ainsworth acquisition. Three Months Ended October 31, Six Months Ended October 31, Total Costs Incurred to Date at October 31, 2019 2019 2018 2019 2018 Employee-related costs $ 0.6 $ 6.9 $ 1.4 $ 7.8 $ 16.9 Other transition and termination costs 2.7 7.3 5.2 8.4 21.8 Total integration costs $ 3.3 $ 14.2 $ 6.6 $ 16.2 $ 38.7 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Segment Reporting [Abstract] | |
Income by segment | Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net sales: U.S. Retail Pet Foods $ 709.9 $ 728.1 $ 1,379.8 $ 1,399.3 U.S. Retail Coffee 543.4 544.9 1,009.1 1,034.4 U.S. Retail Consumer Foods 426.1 461.9 828.3 945.2 International and Away From Home 278.4 286.6 519.5 545.1 Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 Segment profit: U.S. Retail Pet Foods $ 137.0 $ 123.9 $ 257.1 $ 224.3 U.S. Retail Coffee 182.5 174.3 311.4 322.1 U.S. Retail Consumer Foods 91.4 134.3 172.4 231.6 International and Away From Home 50.4 56.7 82.7 100.1 Total segment profit $ 461.3 $ 489.2 $ 823.6 $ 878.1 Amortization (58.8 ) (59.7 ) (117.6 ) (120.2 ) Interest expense – net (49.1 ) (53.6 ) (98.5 ) (107.2 ) Unallocated derivative gains (losses) 0.9 (0.1 ) 29.9 (22.1 ) Other special project costs (A) (3.3 ) (25.4 ) (6.6 ) (33.1 ) Corporate administrative expenses (70.3 ) (73.5 ) (141.9 ) (145.3 ) Other income (expense) – net (1.6 ) (7.5 ) (3.1 ) (7.7 ) Income before income taxes $ 279.1 $ 269.4 $ 485.8 $ 442.5 (A) Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . |
Geographical information | The following table presents certain geographical information. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net sales: United States $ 1,815.9 $ 1,873.2 $ 3,473.5 $ 3,645.5 International: Canada $ 113.4 $ 114.3 $ 210.2 $ 212.5 All other international 28.5 34.0 53.0 66.0 Total international $ 141.9 $ 148.3 $ 263.2 $ 278.5 Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 |
Product category information | The following table presents product category information. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Primary Reportable Segment (A) Coffee $ 627.1 $ 635.5 $ 1,173.8 $ 1,213.8 U.S. Retail Coffee Dog food 302.6 334.9 598.2 643.4 U.S. Retail Pet Foods Cat food 213.8 207.3 409.7 396.3 U.S. Retail Pet Foods Pet snacks 210.0 201.9 403.2 389.7 U.S. Retail Pet Foods Peanut butter 175.4 186.9 353.3 386.1 U.S. Retail Consumer Foods Fruit spreads 86.5 83.0 175.7 168.6 U.S. Retail Consumer Foods Frozen handheld 93.4 78.7 164.9 143.2 U.S. Retail Consumer Foods Shortening and oils 71.8 79.3 123.3 132.2 U.S. Retail Consumer Foods Portion control 42.5 41.6 81.9 82.5 International and Away From Home Juices and beverages 32.4 33.9 63.6 66.1 U.S. Retail Consumer Foods Baking mixes and ingredients 26.0 58.4 39.7 142.7 International and Away From Home (B) Other 76.3 80.1 149.4 159.4 International and Away From Home Total net sales $ 1,957.8 $ 2,021.5 $ 3,736.7 $ 3,924.0 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. (B) During the three and six months ended October 31, 2018, the primary reportable segment was U.S. Retail Consumer Foods, as the majority of the net sales within this category were related to the divested U.S. baking business. For more information, see Note 5: Divestiture . |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Oct. 31, 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. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net income $ 211.2 $ 188.5 $ 365.8 $ 321.5 Less: Net income allocated to participating securities 1.3 1.0 2.1 1.7 Net income allocated to common stockholders $ 209.9 $ 187.5 $ 363.7 $ 319.8 Weighted-average common shares outstanding 113.4 113.2 113.3 113.1 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 113.4 113.2 113.3 113.1 Net income per common share $ 1.85 $ 1.66 $ 3.21 $ 2.83 Net income per common share – assuming dilution $ 1.85 $ 1.66 $ 3.21 $ 2.83 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt consists of the following: October 31, 2019 April 30, 2019 Principal Outstanding Carrying Amount (A) Principal Outstanding Carrying Amount (A) 2.20% Senior Notes due December 6, 2019 $ 300.0 $ 300.0 $ 300.0 $ 299.5 2.50% Senior Notes due March 15, 2020 500.0 499.5 500.0 499.0 3.50% Senior Notes due October 15, 2021 750.0 764.8 750.0 768.4 3.00% Senior Notes due March 15, 2022 400.0 398.3 400.0 398.0 3.50% Senior Notes due March 15, 2025 1,000.0 995.6 1,000.0 995.2 3.38% Senior Notes due December 15, 2027 500.0 496.5 500.0 496.2 4.25% Senior Notes due March 15, 2035 650.0 643.7 650.0 643.5 4.38% Senior Notes due March 15, 2045 600.0 586.3 600.0 586.0 Term Loan Credit Agreement due May 14, 2021 700.0 699.3 800.0 799.0 Total long-term debt $ 5,400.0 $ 5,384.0 $ 5,500.0 $ 5,484.8 Current portion of long-term debt 800.0 799.5 800.0 798.5 Total long-term debt, less current portion $ 4,600.0 $ 4,584.5 $ 4,700.0 $ 4,686.3 (A) Represents the carrying amount included in the Condensed 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) | 6 Months Ended |
Oct. 31, 2019 | |
Retirement Benefits [Abstract] | |
Net periodic benefit cost | The components of our net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below. Three Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Service cost $ 0.4 $ 0.5 $ 0.4 $ 0.5 Interest cost 5.3 5.8 0.6 0.6 Expected return on plan assets (6.1 ) (6.7 ) — — Amortization of net actuarial loss (gain) 2.0 2.1 — (0.2 ) Amortization of prior service cost (credit) 0.2 0.3 (0.3 ) (0.3 ) Net periodic benefit cost $ 1.8 $ 2.0 $ 0.7 $ 0.6 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2019 2018 2019 2018 Service cost $ 0.8 $ 1.1 $ 0.9 $ 0.9 Interest cost 10.5 11.7 1.2 1.2 Expected return on plan assets (12.1 ) (13.5 ) — — Amortization of net actuarial loss (gain) 4.0 4.1 (0.1 ) (0.3 ) Amortization of prior service cost (credit) 0.4 0.5 (0.6 ) (0.6 ) Net periodic benefit cost $ 3.6 $ 3.9 $ 1.4 $ 1.2 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 31, 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 Condensed Consolidated Balance Sheets. October 31, 2019 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities Derivatives designated as hedging instruments: Interest rate contracts $ — $ 146.2 $ — $ — Total derivatives designated as hedging instruments $ — $ 146.2 $ — $ — Derivatives not designated as hedging instruments: Commodity contracts $ 5.6 $ 3.0 $ 0.5 $ 0.5 Foreign currency exchange contracts 0.2 0.3 — — Total derivatives not designated as hedging instruments $ 5.8 $ 3.3 $ 0.5 $ 0.5 Total derivative instruments $ 5.8 $ 149.5 $ 0.5 $ 0.5 April 30, 2019 Other Current Assets Other Current Liabilities Other Noncurrent Assets Other Noncurrent Liabilities 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 derivatives not designated as hedging instruments $ 6.2 $ 26.0 $ — $ — Total derivative instruments $ 6.2 $ 75.1 $ — $ — |
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. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Gains (losses) recognized in other comprehensive income (loss) $ (44.1 ) $ 7.9 $ (97.1 ) $ 10.5 Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense (0.1 ) (0.1 ) (0.2 ) (0.2 ) Change in accumulated other comprehensive income (loss) $ (44.0 ) $ 8.0 $ (96.9 ) $ 10.7 |
Net realized and unrealized gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as hedging instruments. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Gains (losses) on commodity contracts $ (10.1 ) $ (3.2 ) $ 2.5 $ (30.1 ) Gains (losses) on foreign currency exchange contracts (0.1 ) 0.8 (1.1 ) 1.5 Total gains (losses) recognized in cost of products sold $ (10.2 ) $ (2.4 ) $ 1.4 $ (28.6 ) |
Schedule of unallocated derivative gains (losses) | The following table presents the activity in unallocated derivative gains and losses. Three Months Ended October 31, Six Months Ended October 31, 2019 2018 2019 2018 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ (10.2 ) $ (2.4 ) $ 1.4 $ (28.6 ) Less: Net gains (losses) on derivative positions reclassified to segment operating profit (11.1 ) (2.3 ) (28.5 ) (6.5 ) Unallocated derivative gains (losses) $ 0.9 $ (0.1 ) $ 29.9 $ (22.1 ) |
Outstanding derivative contracts | The following table presents the gross notional value of outstanding derivative contracts. October 31, 2019 April 30, 2019 Commodity contracts $ 432.8 $ 544.8 Foreign currency exchange contracts 93.9 144.9 Interest rate contracts 800.0 800.0 |
Other Financial Instruments a_2
Other Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 31, 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. October 31, 2019 April 30, 2019 Carrying Amount Fair Value Carrying Amount Fair Value Marketable securities and other investments $ 40.5 $ 40.5 $ 40.9 $ 40.9 Derivative financial instruments – net (143.7 ) (143.7 ) (68.9 ) (68.9 ) Total long-term debt (5,384.0 ) (5,640.7 ) (5,484.8 ) (5,504.0 ) |
Financial assets (liabilities) measured at fair value on a recurring basis | The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at October 31, 2019 Marketable securities and other investments: (A) Equity mutual funds $ 8.8 $ — $ — $ 8.8 Municipal obligations — 31.3 — 31.3 Money market funds 0.4 — — 0.4 Derivative financial instruments: (B) Commodity contracts – net 2.6 — — 2.6 Foreign currency exchange contracts – net (0.1 ) — — (0.1 ) Interest rate contracts — (146.2 ) — (146.2 ) Total long-term debt (C) (4,910.1 ) (730.6 ) — (5,640.7 ) Total financial instruments measured at fair value $ (4,898.4 ) $ (845.5 ) $ — $ (5,743.9 ) Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at April 30, 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 ) (A) Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less . Based on the short-term nature of these money market funds, carrying value approximates fair value. As of October 31, 2019 , our municipal obligations are scheduled to mature as follows: $0.4 in 2020, $1.0 in 2021, $1.6 in 2022, $1.0 in 2023, and the remaining $27.3 in 2024 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. The Level 2 interest rate 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 . |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Leases [Abstract] | |
Right-of-use assets and lease liabilities recognized in the Condensed Consolidated Balance Sheet | The following table sets forth the right-of-use assets and lease liabilities recognized in the Condensed Consolidated Balance Sheet. October 31, 2019 Operating lease right-of-use assets $ 153.2 Operating lease liabilities: Current operating lease liabilities $ 44.4 Noncurrent operating lease liabilities 116.2 Total operating lease liabilities $ 160.6 Finance lease right-of-use assets: Machinery and equipment $ 12.1 Accumulated depreciation (6.1 ) Total property, plant, and equipment $ 6.0 Finance lease liabilities: Other current liabilities $ 2.4 Other noncurrent liabilities 3.7 Total finance lease liabilities $ 6.1 |
Components of lease expense | The following table summarizes the components of lease expense. Three Months Ended October 31, 2019 Six Months Ended October 31, 2019 Operating lease cost $ 12.9 $ 25.3 Finance lease cost: Amortization of right-of-use assets 0.8 1.6 Interest on lease liabilities — 0.1 Variable lease cost 6.3 12.6 Short-term lease cost 9.7 17.4 Sublease income (1.5 ) (2.3 ) Net lease cost $ 28.2 $ 54.7 |
Cash flow and noncash information related to leases | The following table sets forth cash flow and noncash information related to leases. Six Months Ended October 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 25.3 Operating cash flows from finance leases 0.1 Financing cash flows from finance leases 1.5 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 16.2 Finance leases 0.8 |
Maturity of operating lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. October 31, 2019 Operating Leases Finance Leases 2020 (remainder of the year) $ 26.0 $ 1.4 2021 43.1 2.1 2022 36.4 1.5 2023 30.2 0.7 2024 17.2 0.4 2025 and beyond 19.8 0.3 Total undiscounted minimum lease payments $ 172.7 $ 6.4 Less: Imputed interest 12.1 0.3 Lease liabilities $ 160.6 $ 6.1 |
Maturity of finance lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. October 31, 2019 Operating Leases Finance Leases 2020 (remainder of the year) $ 26.0 $ 1.4 2021 43.1 2.1 2022 36.4 1.5 2023 30.2 0.7 2024 17.2 0.4 2025 and beyond 19.8 0.3 Total undiscounted minimum lease payments $ 172.7 $ 6.4 Less: Imputed interest 12.1 0.3 Lease liabilities $ 160.6 $ 6.1 |
Weighted average remaining lease tern and discount rate | The following table sets forth the weighted average remaining lease term and discount rate. October 31, 2019 Weighted average remaining lease term (in years): Operating leases 4.4 Finance leases 3.3 Weighted average discount rate: Operating leases 3.2 % Finance leases 3.2 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive income (loss) | The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2019 $ (35.5 ) $ (40.4 ) $ (110.0 ) $ 4.1 $ (181.8 ) Reclassification adjustments — 0.2 3.2 — 3.4 Current period credit (charge) 5.1 (97.1 ) — 0.5 (91.5 ) Income tax benefit (expense) — 22.3 (0.7 ) (0.1 ) 21.5 Balance at October 31, 2019 $ (30.4 ) $ (115.0 ) $ (107.5 ) $ 4.5 $ (248.4 ) Foreign Currency Translation Adjustment Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Gain (Loss) on Available- for-Sale Securities Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2018 $ (16.4 ) $ (2.9 ) $ (101.0 ) $ 3.6 $ (116.7 ) Reclassification adjustments — 0.2 4.3 — 4.5 Current period credit (charge) (11.7 ) 10.5 — 0.8 (0.4 ) Income tax benefit (expense) — (2.5 ) (1.1 ) (0.2 ) (3.8 ) Balance at October 31, 2018 $ (28.1 ) $ 5.3 $ (97.8 ) $ 4.2 $ (116.4 ) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period credit (charge) relates to the unrealized gains (losses) on the interest rate contracts entered into in November 2018 and June 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. |
Common Shares (Tables)
Common Shares (Tables) | 6 Months Ended |
Oct. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. October 31, 2019 April 30, 2019 Common shares authorized 300.0 300.0 Common shares outstanding 114.1 113.7 Treasury shares 32.4 32.8 |
Recently Issued Accounting St_3
Recently Issued Accounting Standards Recently Issued Accounting Standards (Details) - USD ($) $ in Millions | Oct. 31, 2019 | May 01, 2019 | Apr. 30, 2019 |
Operating lease right-of-use assets | $ 153.2 | $ 0 | |
Total operating lease liabilities | 160.6 | ||
Accounting Standards Update 2016-02 [Member] | |||
Operating lease right-of-use assets | $ 159.2 | ||
Total operating lease liabilities | $ 166.6 | ||
New Accounting Pronouncement, Early Adoption, Effect [Member] | Accounting Standards Update 2018-15 [Member] | Other Noncurrent Assets [Member] | |||
Capitalized third-party cloud computing implementation costs | $ 2.4 |
Acquisition (Details Textual)
Acquisition (Details Textual) - USD ($) | May 14, 2018 | Oct. 31, 2019 | Apr. 30, 2019 |
Acquisition [Line Items] | |||
Debt instrument face amount | $ 5,400,000,000 | $ 5,500,000,000 | |
Goodwill | 6,313,600,000 | 6,310,900,000 | |
Ainsworth [Member] | |||
Acquisition [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 1,900,000,000 | ||
Commercial Paper | 400,000,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 1,300,000,000 | ||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 446,000,000 | 400,700,000 | |
Term Loan Credit Agreement due May 14, 2021 | |||
Acquisition [Line Items] | |||
Debt instrument face amount | 1,500,000,000 | 700,000,000 | $ 800,000,000 |
Term Loan Credit Agreement due May 14, 2021 | Ainsworth [Member] | |||
Acquisition [Line Items] | |||
Debt instrument face amount | 1,500,000,000 | ||
U.S. Retail Pet Foods [Member] | |||
Acquisition [Line Items] | |||
Goodwill | 2,400,000,000 | ||
Indefinite-lived intangible assets | $ 1,500,000,000 | ||
U.S. Retail Pet Foods [Member] | Ainsworth [Member] | |||
Acquisition [Line Items] | |||
Goodwill | $ 617,800,000 |
Integration and Restructuring_3
Integration and Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Apr. 30, 2019 | |
Organization Optimization Program [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 74.6 | ||||
Restructuring and Related Cost, Incurred Cost | $ 0 | $ 11.2 | $ 0 | $ 16.9 | |
Restructuring and Related Cost, Noncash Charge Incurred to Date | 15.2 | ||||
Restructuring and Related Cost, Incurred Noncash Charge | 0.9 | 1 | |||
Organization Optimization Program [Member] | Employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 48.7 | ||||
Restructuring Reserve | 0.1 | 0.1 | 0.8 | ||
Organization Optimization Program [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 25.9 | ||||
Ainsworth [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | 50 | 50 | |||
Restructuring and Related Cost, Cost Incurred to Date | 38.7 | 38.7 | |||
Restructuring and Related Cost, Incurred Cost | 3.3 | 14.2 | 6.6 | 16.2 | |
Restructuring and Related Cost, Noncash Charge Incurred to Date | 4.5 | 4.5 | |||
Restructuring and Related Cost, Incurred Noncash Charge | 0.2 | 1 | 0.4 | 1.8 | |
Ainsworth [Member] | Employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 16.9 | 16.9 | |||
Restructuring and Related Cost, Incurred Cost | 0.6 | 6.9 | 1.4 | 7.8 | |
Restructuring Reserve | 0.3 | 0.3 | $ 1.6 | ||
Ainsworth [Member] | Other Restructuring [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | 21.8 | 21.8 | |||
Restructuring and Related Cost, Incurred Cost | $ 2.7 | $ 7.3 | $ 5.2 | $ 8.4 |
Divestiture (Details)
Divestiture (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Apr. 30, 2019 | Apr. 30, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Proceeds from divestiture | $ 0 | $ 372.1 | |||
Gain on divestiture | $ 0 | $ 26.6 | |||
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 | ||||
U.S. Baking Business [Member] | Other Operating Income (Expense) [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain on divestiture | $ 26.6 | $ 27.7 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Net sales: | |||||
Net sales | $ 1,957.8 | $ 2,021.5 | $ 3,736.7 | $ 3,924 | |
Segment profit: | |||||
Segment profit | 461.3 | 489.2 | 823.6 | 878.1 | |
Amortization | (58.8) | (59.7) | (117.6) | (120.2) | |
Interest expense – net | (49.1) | (53.6) | (98.5) | (107.2) | |
Unallocated derivative gains (losses) | 0.9 | (0.1) | 29.9 | (22.1) | |
Other special project costs (A) | [1],[2] | (3.3) | (25.4) | (6.6) | (33.1) |
Corporate administrative expenses | (70.3) | (73.5) | (141.9) | (145.3) | |
Other income (expense) – net | (1.6) | (7.5) | (3.1) | (7.7) | |
Income Before Income Taxes | 279.1 | 269.4 | 485.8 | 442.5 | |
U.S. Retail Pet Foods [Member] | |||||
Net sales: | |||||
Net sales | 709.9 | 728.1 | 1,379.8 | 1,399.3 | |
Segment profit: | |||||
Segment profit | 137 | 123.9 | 257.1 | 224.3 | |
U.S. Retail Coffee [Member] | |||||
Net sales: | |||||
Net sales | 543.4 | 544.9 | 1,009.1 | 1,034.4 | |
Segment profit: | |||||
Segment profit | 182.5 | 174.3 | 311.4 | 322.1 | |
U.S. Retail Consumer Foods [Member] | |||||
Net sales: | |||||
Net sales | 426.1 | 461.9 | 828.3 | 945.2 | |
Segment profit: | |||||
Segment profit | 91.4 | 134.3 | 172.4 | 231.6 | |
International and Away From Home [Member] | |||||
Net sales: | |||||
Net sales | 278.4 | 286.6 | 519.5 | 545.1 | |
Segment profit: | |||||
Segment profit | $ 50.4 | $ 56.7 | $ 82.7 | $ 100.1 | |
[1] | Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . | ||||
[2] | Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs . |
Reportable Segments (Details 1)
Reportable Segments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Geographical information [Line Items] | ||||
Net sales | $ 1,957.8 | $ 2,021.5 | $ 3,736.7 | $ 3,924 |
United States | ||||
Geographical information [Line Items] | ||||
Net sales | 1,815.9 | 1,873.2 | 3,473.5 | 3,645.5 |
Canada | ||||
Geographical information [Line Items] | ||||
Net sales | 113.4 | 114.3 | 210.2 | 212.5 |
All Other International [Member] | ||||
Geographical information [Line Items] | ||||
Net sales | 28.5 | 34 | 53 | 66 |
International [Member] | ||||
Geographical information [Line Items] | ||||
Net sales | $ 141.9 | $ 148.3 | $ 263.2 | $ 278.5 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | ||
Product category information [Line Items] | |||||
Net sales | $ 1,957.8 | $ 2,021.5 | $ 3,736.7 | $ 3,924 | |
Percent of product sales attributable to primary reportable segment | 75.00% | ||||
U.S. Retail Pet Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 709.9 | 728.1 | $ 1,379.8 | 1,399.3 | |
U.S. Retail Pet Foods [Member] | Dog food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 302.6 | 334.9 | 598.2 | 643.4 |
U.S. Retail Pet Foods [Member] | Cat food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 213.8 | 207.3 | 409.7 | 396.3 |
U.S. Retail Pet Foods [Member] | Pet snacks [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 210 | 201.9 | 403.2 | 389.7 |
U.S. Retail Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 543.4 | 544.9 | 1,009.1 | 1,034.4 | |
U.S. Retail Coffee [Member] | Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 627.1 | 635.5 | 1,173.8 | 1,213.8 |
U.S. Retail Consumer Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 426.1 | 461.9 | 828.3 | 945.2 | |
U.S. Retail Consumer Foods [Member] | Peanut butter [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 175.4 | 186.9 | 353.3 | 386.1 |
U.S. Retail Consumer Foods [Member] | Fruit spreads [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 86.5 | 83 | 175.7 | 168.6 |
U.S. Retail Consumer Foods [Member] | Frozen handheld [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 93.4 | 78.7 | 164.9 | 143.2 |
U.S. Retail Consumer Foods [Member] | Shortening and oils [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 71.8 | 79.3 | 123.3 | 132.2 |
U.S. Retail Consumer Foods [Member] | Juices and beverages [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 32.4 | 33.9 | 63.6 | 66.1 |
International and Away From Home [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 278.4 | 286.6 | 519.5 | 545.1 | |
International and Away From Home [Member] | Portion control [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 42.5 | 41.6 | 81.9 | 82.5 |
International and Away From Home [Member] | Baking mixes and ingredients [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | 26 | 58.4 | 39.7 | 142.7 |
International and Away From Home [Member] | Other [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | $ 76.3 | $ 80.1 | $ 149.4 | $ 159.4 |
[1] | The primary reportable segment generally represents at least 75 percent | ||||
[2] | During the three and six months ended October 31, 2018, the primary reportable segment was U.S. Retail Consumer Foods, as the majority of the net sales within this category were related to the divested U.S. baking business. For more information, see Note 5: Divestiture . |
Reportable Segments (Details Te
Reportable Segments (Details Textual) | 6 Months Ended |
Oct. 31, 2019IndustrySegment | |
Segment Reporting [Abstract] | |
Number of industries in which Company operates | Industry | 1 |
Number of reportable segments | Segment | 4 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2019 | Jul. 31, 2019 | Oct. 31, 2018 | Jul. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 211.2 | $ 154.6 | $ 188.5 | $ 133 | $ 365.8 | $ 321.5 |
Less: Net income allocated to participating securities | 1.3 | 1 | 2.1 | 1.7 | ||
Net income allocated to common stockholders | $ 209.9 | $ 187.5 | $ 363.7 | $ 319.8 | ||
Weighted-average common shares outstanding (in shares) | 113.4 | 113.2 | 113.3 | 113.1 | ||
Add: Dilutive effect of stock options (in shares) | 0 | 0 | 0 | 0 | ||
Weighted-average common shares outstanding - assuming dilution (in shares) | 113.4 | 113.2 | 113.3 | 113.1 | ||
Net income per common share (in dollars per share) | $ 1.85 | $ 1.66 | $ 3.21 | $ 2.83 | ||
Net Income - Assuming Dilution (in dollars per share) | $ 1.85 | $ 1.66 | $ 3.21 | $ 2.83 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Details) - USD ($) | Oct. 31, 2019 | Apr. 30, 2019 | May 14, 2018 | |
Long-term debt | ||||
Debt instrument face amount | $ 5,400,000,000 | $ 5,500,000,000 | ||
Total long-term debt | [1] | 5,384,000,000 | 5,484,800,000 | |
Current portion of long-term debt | [1] | 799,500,000 | 798,500,000 | |
Long-term debt, less current portion | [1] | $ 4,584,500,000 | $ 4,686,300,000 | |
2.20% Senior Notes due December 6, 2019 | ||||
Long-term debt | ||||
Interest rate on notes | 2.20% | 2.20% | ||
Debt instrument face amount | $ 300,000,000 | $ 300,000,000 | ||
Senior Notes | [1] | $ 300,000,000 | $ 299,500,000 | |
2.50% Senior Notes due March 15, 2020 | ||||
Long-term debt | ||||
Interest rate on notes | 2.50% | 2.50% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | ||
Senior Notes | [1] | $ 499,500,000 | $ 499,000,000 | |
3.50% Senior Notes due October 15, 2021 | ||||
Long-term debt | ||||
Interest rate on notes | 3.50% | 3.50% | ||
Debt instrument face amount | $ 750,000,000 | $ 750,000,000 | ||
Senior Notes | [1] | $ 764,800,000 | $ 768,400,000 | |
3.00% Senior Notes due March 15, 2022 | ||||
Long-term debt | ||||
Interest rate on notes | 3.00% | 3.00% | ||
Debt instrument face amount | $ 400,000,000 | $ 400,000,000 | ||
Senior Notes | [1] | $ 398,300,000 | $ 398,000,000 | |
3.50% Senior Notes due March 15, 2025 | ||||
Long-term debt | ||||
Interest rate on notes | 3.50% | 3.50% | ||
Debt instrument face amount | $ 1,000,000,000 | $ 1,000,000,000 | ||
Senior Notes | [1] | $ 995,600,000 | $ 995,200,000 | |
3.38% Senior Notes due December 15, 2027 | ||||
Long-term debt | ||||
Interest rate on notes | 3.38% | 3.38% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | ||
Senior Notes | [1] | $ 496,500,000 | $ 496,200,000 | |
4.25% Senior Notes due March 15, 2035 | ||||
Long-term debt | ||||
Interest rate on notes | 4.25% | 4.25% | ||
Debt instrument face amount | $ 650,000,000 | $ 650,000,000 | ||
Senior Notes | [1] | $ 643,700,000 | $ 643,500,000 | |
4.38% Senior Notes due March 15, 2045 | ||||
Long-term debt | ||||
Interest rate on notes | 4.38% | 4.38% | ||
Debt instrument face amount | $ 600,000,000 | $ 600,000,000 | ||
Senior Notes | [1] | 586,300,000 | 586,000,000 | |
Term Loan Credit Agreement due May 14, 2021 | ||||
Long-term debt | ||||
Debt instrument face amount | 700,000,000 | 800,000,000 | $ 1,500,000,000 | |
Term loan credit agreement carrying value | [1] | 699,300,000 | 799,000,000 | |
Current portion of long term debt | ||||
Long-term debt | ||||
Debt instrument face amount | 800,000,000 | 800,000,000 | ||
Total long term debt, less current portion | ||||
Long-term debt | ||||
Debt instrument face amount | $ 4,600,000,000 | $ 4,700,000,000 | ||
[1] | Represents the carrying amount included in the Condensed 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) | 3 Months Ended | 6 Months Ended | 18 Months Ended | ||||||
Oct. 31, 2019USD ($)Bank | Oct. 31, 2018USD ($) | Oct. 31, 2019USD ($)Bank | Oct. 31, 2018USD ($) | Oct. 31, 2019USD ($)Bank | Apr. 30, 2019USD ($) | Nov. 30, 2018USD ($) | Jun. 30, 2018USD ($) | May 14, 2018USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument face amount | $ 5,400,000,000 | $ 5,400,000,000 | $ 5,400,000,000 | $ 5,500,000,000 | |||||
Repayments of long-term debt | 100,000,000 | $ 300,000,000 | |||||||
Interest paid | 78,400,000 | $ 84,100,000 | 100,000,000 | $ 107,400,000 | |||||
Short-term borrowings | $ 327,900,000 | $ 327,900,000 | $ 327,900,000 | 426,000,000 | |||||
Senior Notes [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Percentage of the principal amount thereof which company can prepay | 100.00% | 100.00% | 100.00% | ||||||
Term Loan Credit Agreement due May 14, 2021 | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Debt instrument face amount | $ 700,000,000 | $ 700,000,000 | $ 700,000,000 | 800,000,000 | $ 1,500,000,000 | ||||
Repayments of long-term debt | $ 100,000,000 | $ 800,000,000 | |||||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 2.94% | 2.94% | 2.94% | ||||||
Revolving Credit Facility [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Number of banks | Bank | 11 | 11 | 11 | ||||||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | $ 0 | $ 0 | |||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,800,000,000 | ||||||
Commercial Paper [Member] | |||||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||||
Commercial paper weighted-average interest rate | 2.07% | 2.07% | 2.07% | 2.75% | |||||
Commercial paper, borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,800,000,000 | ||||||
Short-term borrowings | 327,900,000 | 327,900,000 | 327,900,000 | $ 426,000,000 | |||||
Interest rate contracts | |||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||
Gross notional amount | $ 800,000,000 | 800,000,000 | $ 800,000,000 | $ 800,000,000 | $ 300,000,000 | $ 500,000,000 | |||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | $ (146,200,000) |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Defined Benefit Pension Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 0.4 | $ 0.5 | $ 0.8 | $ 1.1 |
Interest cost | 5.3 | 5.8 | 10.5 | 11.7 |
Expected return on plan assets | (6.1) | (6.7) | (12.1) | (13.5) |
Amortization of net actuarial loss (gain) | 2 | 2.1 | 4 | 4.1 |
Amortization of prior service cost (credit) | 0.2 | 0.3 | 0.4 | 0.5 |
Net periodic benefit cost | 1.8 | 2 | 3.6 | 3.9 |
Other Postretirement Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | 0.4 | 0.5 | 0.9 | 0.9 |
Interest cost | 0.6 | 0.6 | 1.2 | 1.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 0 | (0.2) | (0.1) | (0.3) |
Amortization of prior service cost (credit) | (0.3) | (0.3) | (0.6) | (0.6) |
Net periodic benefit cost | $ 0.7 | $ 0.6 | $ 1.4 | $ 1.2 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 5.8 | $ 6.2 |
Other Current Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Current Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 5.8 | 6.2 |
Other Current Assets [Member] | Interest rate contracts | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Current Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 5.6 | 4.8 |
Other Current Assets [Member] | Foreign currency exchange contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.2 | 1.4 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 149.5 | 75.1 |
Other Current Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 146.2 | 49.1 |
Other Current Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 3.3 | 26 |
Other Current Liabilities [Member] | Interest rate contracts | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 146.2 | 49.1 |
Other Current Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 3 | 25.8 |
Other Current Liabilities [Member] | Foreign currency exchange contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.3 | 0.2 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0 |
Other Noncurrent Assets [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Assets [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0 |
Other Noncurrent Assets [Member] | Interest rate contracts | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts | 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 | 0.5 | 0 |
Other Noncurrent Liabilities [Member] | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Other Noncurrent Liabilities [Member] | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.5 | 0 |
Other Noncurrent Liabilities [Member] | Interest rate contracts | Designated as Hedging Instrument [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Other Noncurrent Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.5 | 0 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts | 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) - Cash Flow Hedging [Member] - Interest rate contracts - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in other comprehensive income (loss) | $ (44.1) | $ 7.9 | $ (97.1) | $ 10.5 |
Change in accumulated other comprehensive income (loss) | (44) | 8 | (96.9) | 10.7 |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense | $ (0.1) | $ (0.1) | $ (0.2) | $ (0.2) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | $ (10.2) | $ (2.4) | $ 1.4 | $ (28.6) |
Commodity contracts | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | (10.1) | (3.2) | 2.5 | (30.1) |
Foreign currency exchange contracts | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | $ (0.1) | $ 0.8 | $ (1.1) | $ 1.5 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Price Risk Derivatives [Abstract] | ||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ (10.2) | $ (2.4) | $ 1.4 | $ (28.6) |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (11.1) | (2.3) | (28.5) | (6.5) |
Unallocated derivative gains (losses) | $ 0.9 | $ (0.1) | $ 29.9 | $ (22.1) |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 | Nov. 30, 2018 | Jun. 30, 2018 |
Commodity contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gross notional amount | $ 432.8 | $ 544.8 | ||
Foreign currency exchange contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gross notional amount | 93.9 | 144.9 | ||
Interest rate contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gross notional amount | $ 800 | $ 800 | $ 300 | $ 500 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | Apr. 30, 2018 | Apr. 30, 2015 | Apr. 30, 2019 | Nov. 30, 2018 | Jun. 30, 2018 | |
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Interest expense – net | $ (49.1) | $ (53.6) | $ (98.5) | $ (107.2) | |||||
Amortization of deferred gain on early termination agreement | 2.1 | 4.1 | |||||||
Derivative Financial Instruments (Additional Textual) [Abstract] | |||||||||
Cash margin accounts related to derivative instruments recognized | 8.6 | 8.6 | $ 40.7 | ||||||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ (22.6) | $ (52.5) | |||||||
Commodity contracts | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Derivative instrument maturity | 1 year | ||||||||
Gross notional amount | 432.8 | $ 432.8 | 544.8 | ||||||
Foreign currency exchange contracts | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Derivative instrument maturity | 1 year | ||||||||
Gross notional amount | 93.9 | $ 93.9 | 144.9 | ||||||
Interest rate contracts | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Gross notional amount | 800 | 800 | 800 | $ 300 | $ 500 | ||||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (149.4) | (149.4) | (52.5) | ||||||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | $ 34.4 | 34.4 | $ 12.1 | ||||||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (5.6) | ||||||||
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | (146.2) | ||||||||
Total Through Q2 2020 [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Amortization of deferred gain on early termination agreement | 37.1 | ||||||||
2020 [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Amortization of deferred gain on early termination agreement | 4 | ||||||||
2021 [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Amortization of deferred gain on early termination agreement | 8.4 | ||||||||
2022 [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Amortization of deferred gain on early termination agreement | $ 4 | ||||||||
Cash [Member] | Interest rate swap | Fair Value Hedging [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Gain (loss) on early termination agreement | $ 58.1 | ||||||||
Accrued and Prepaid Interest, Net [Member] | Interest rate swap | Fair Value Hedging [Member] | |||||||||
Derivative Financial Instruments (Textual) [Abstract] | |||||||||
Gain (loss) on early termination agreement | $ (4.6) |
Other Financial Instruments a_3
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 | |
Carrying amount and fair value of financial instruments | |||
Total long-term debt | [1] | $ (5,384) | $ (5,484.8) |
Carrying Amount [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 40.5 | 40.9 | |
Derivative financial instruments – net | (143.7) | (68.9) | |
Total long-term debt | (5,384) | (5,484.8) | |
Fair Value [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 40.5 | 40.9 | |
Derivative financial instruments – net | (143.7) | (68.9) | |
Total long-term debt | $ (5,640.7) | $ (5,504) | |
[1] | Represents the carrying amount included in the Condensed 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 | Oct. 31, 2019 | Apr. 30, 2019 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | $ (5,640.7) | $ (5,504) |
Total financial instruments measured at fair value | (5,743.9) | (5,532) | |
Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 8.8 | 8.7 |
Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 31.3 | 31.7 |
Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.4 | 0.5 |
Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 2.6 | (21) |
Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (0.1) | 1.2 |
Interest rate contracts | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (146.2) | (49.1) |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (4,910.1) | (4,646.6) |
Total financial instruments measured at fair value | (4,898.4) | (4,658.2) | |
Fair Value, Inputs, Level 1 [Member] | Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 8.8 | 8.7 |
Fair Value, Inputs, Level 1 [Member] | Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.4 | 0.5 |
Fair Value, Inputs, Level 1 [Member] | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 2.6 | (20.7) |
Fair Value, Inputs, Level 1 [Member] | Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (0.1) | (0.1) |
Fair Value, Inputs, Level 1 [Member] | Interest rate contracts | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (730.6) | (857.4) |
Total financial instruments measured at fair value | (845.5) | (873.8) | |
Fair Value, Inputs, Level 2 [Member] | Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 31.3 | 31.7 |
Fair Value, Inputs, Level 2 [Member] | Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | (0.3) |
Fair Value, Inputs, Level 2 [Member] | Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 1.3 |
Fair Value, Inputs, Level 2 [Member] | Interest rate contracts | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (146.2) | (49.1) |
Fair Value, Inputs, Level 3 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | 0 | 0 |
Total financial instruments measured at fair value | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Interest rate contracts | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | $ 0 | $ 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 October 31, 2019 , our municipal obligations are scheduled to mature as follows: $0.4 in 2020, $1.0 in 2021, $1.6 in 2022, $1.0 in 2023, and the remaining $27.3 | ||
[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 (Details Textual) $ in Millions | Oct. 31, 2019USD ($) |
Other Financial Instruments and Fair Value Measurements (Textual) [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 | 1.6 |
Company's Municipal bond mature in 2023 | 1 |
Company's Municipal bond mature in 2024 and beyond | $ 27.3 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 |
Operating lease right-of-use assets | $ 153.2 | $ 0 |
Current operating lease liabilities | 44.4 | 0 |
Noncurrent operating lease liabilities | 116.2 | $ 0 |
Total operating lease liabilities | 160.6 | |
Total finance lease liabilities | 6.1 | |
Machinery and Equipment [Member] | ||
Machinery and equipment | 12.1 | |
Accumulated Depreciation [Member] | ||
Accumulated depreciation | (6.1) | |
Property, Plant and Equipment [Member] | ||
Total property, plant, and equipment | 6 | |
Other Current Liabilities [Member] | ||
Current finance lease liabilities | 2.4 | |
Other Noncurrent Liabilities [Member] | ||
Noncurrent finance lease liabilities | $ 3.7 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended |
Oct. 31, 2019 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Operating lease cost | $ 12.9 | $ 25.3 |
Finance Lease, Cost [Abstract] | ||
Amortization of right-of-use assets | 0.8 | 1.6 |
Interest on lease liabilities | 0 | 0.1 |
Variable lease cost | 6.3 | 12.6 |
Short-term lease cost | 9.7 | 17.4 |
Sublease income | (1.5) | (2.3) |
Net lease cost | $ 28.2 | $ 54.7 |
Leases (Details 2)
Leases (Details 2) $ in Millions | 6 Months Ended |
Oct. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating Lease, Payments | $ 25.3 |
Finance Lease, Interest Payment on Liability | 0.1 |
Finance Lease, Principal Payments | 1.5 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 16.2 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 0.8 |
Leases (Details 3)
Leases (Details 3) $ in Millions | Oct. 31, 2019USD ($) |
Operating Lease Liabilities, Payments Due [Abstract] | |
2020 (remainder of the year) | $ 26 |
2021 | 43.1 |
2022 | 36.4 |
2023 | 30.2 |
2024 | 17.2 |
2025 and beyond | 19.8 |
Total undiscounted minimum lease payments | 172.7 |
Less: Imputed interest | 12.1 |
Total operating lease liabilities | 160.6 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2020 (remainder of the year) | 1.4 |
2021 | 2.1 |
2022 | 1.5 |
2023 | 0.7 |
2024 | 0.4 |
2025 and beyond | 0.3 |
Total undiscounted minimum lease payments | 6.4 |
Less: Imputed interest | 0.3 |
Total finance lease liabilities | $ 6.1 |
Leases (Details 4)
Leases (Details 4) | Oct. 31, 2019 |
Leases [Abstract] | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 4 months 24 days |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 3 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.20% |
Finance Lease, Weighted Average Discount Rate, Percent | 3.20% |
Leases Textual (Details)
Leases Textual (Details) - USD ($) $ in Millions | Oct. 31, 2019 | Apr. 30, 2019 |
Leases [Abstract] | ||
Impact of Leases, Not Yet Commenced | $ 27 | |
2020 | $ 43 | |
2021 | 36.7 | |
2022 | 30.5 | |
2023 | 24.8 | |
2024 | $ 12.3 |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2019 | Oct. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.30% | 30.00% | 24.70% | 27.30% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 0.00% | 21.00% | ||
Income Taxes (Textual) [Abstract] | ||||
Time Period Over Which it is Reasonably Possible That Company Could Increase or Decrease its Unrecognized Tax Benefits | 12 months | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 2.8 | $ 2.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ (181.8) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (248.4) | ||
Foreign Currency Translation Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (35.5) | $ (16.4) | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | 5.1 | (11.7) | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (30.4) | (28.1) | |
Net Gains (Losses) on Cash Flow Hedging Derivatives [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [1] | (40.4) | (2.9) |
Reclassification adjustments | [1] | 0.2 | 0.2 |
Current period credit (charge) | [1] | (97.1) | 10.5 |
Income tax benefit (expense) | [1] | 22.3 | (2.5) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [1] | (115) | 5.3 |
Pension and Other Postretirement Liabilities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [2] | (110) | (101) |
Reclassification adjustments | [2] | 3.2 | 4.3 |
Current period credit (charge) | [2] | 0 | 0 |
Income tax benefit (expense) | [2] | (0.7) | (1.1) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [2] | (107.5) | (97.8) |
Unrealized Gain (Loss) on Available-for-Sale Securities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | 4.1 | 3.6 | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | 0.5 | 0.8 | |
Income tax benefit (expense) | (0.1) | (0.2) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 4.5 | 4.2 | |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (181.8) | (116.7) | |
Reclassification adjustments | 3.4 | 4.5 | |
Current period credit (charge) | (91.5) | (0.4) | |
Income tax benefit (expense) | 21.5 | (3.8) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ (248.4) | $ (116.4) | |
[1] | The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period credit (charge) relates to the unrealized gains (losses) on the interest rate contracts entered into in November 2018 and June 2018. For additional information, see Note 10: Derivative Financial Instruments | ||
[2] | 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 | 6 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Apr. 30, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Stock Repurchased During Period, Shares | 0 | 0 | |
Common Shares Information | |||
Common shares authorized | 300,000,000 | 300,000,000 | |
Common shares outstanding | 114,100,000 | 113,700,000 | |
Treasury shares | 32,400,000 | 32,800,000 | |
Common Shares (Additional Textual) [Abstract] | |||
Shares remaining for repurchase | 3,600,000 |