Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2020 | Nov. 17, 2020 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Oct. 31, 2020 | |
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 | 2021 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-30 | |
Entity Common Stock, Shares Outstanding | 114,092,704 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Income Statement [Abstract] | |||||
Net sales | $ 2,034 | $ 1,957.8 | $ 4,005.8 | $ 3,736.7 | |
Cost of products sold | 1,215.8 | 1,203.8 | 2,412.2 | 2,283.1 | |
Gross Profit | 818.2 | 754 | 1,593.6 | 1,453.6 | |
Selling, distribution, and administrative expenses | 382.8 | 361.5 | 740.3 | 742 | |
Amortization | 59.5 | 58.8 | 119.1 | 117.6 | |
Other special project costs | [1] | 0 | 3.3 | 0 | 6.6 |
Other operating expense (income) – net | (4.9) | 0.6 | (7.7) | 0 | |
Operating Income | 380.8 | 329.8 | 741.9 | 587.4 | |
Interest expense – net | (45.1) | (49.1) | (91.2) | (98.5) | |
Other income (expense) – net | (32.2) | (1.6) | (33.6) | (3.1) | |
Income Before Income Taxes | 303.5 | 279.1 | 617.1 | 485.8 | |
Income tax expense | 72.7 | 67.9 | 149.3 | 120 | |
Net Income | $ 230.8 | $ 211.2 | $ 467.8 | $ 365.8 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 2.02 | $ 1.85 | $ 4.10 | $ 3.21 | |
Net Income - Assuming Dilution (in dollars per share) | $ 2.02 | $ 1.85 | $ 4.10 | $ 3.21 | |
[1] | Other special project costs includes integration and restructuring costs. For more information, see Note 3: 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, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 230.8 | $ 211.2 | $ 467.8 | $ 365.8 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 2.3 | 0.6 | 15.2 | 5.1 |
Cash flow hedging derivative activity, net of tax | 2.7 | (33.8) | 5.3 | (74.6) |
Pension and other postretirement benefit plans activity, net of tax | 28.7 | 1.4 | 30.4 | 2.5 |
Available-for-sale securities activity, net of tax | (0.3) | 0.1 | 0.6 | 0.4 |
Total Other Comprehensive Income (Loss) | 33.4 | (31.7) | 51.5 | (66.6) |
Comprehensive Income | $ 264.2 | $ 179.5 | $ 519.3 | $ 299.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 | |
Current Assets | |||
Cash and cash equivalents | $ 405.6 | $ 391.1 | |
Trade receivables – net | 577 | 551.4 | |
Inventories: | |||
Finished products | 639.7 | 563.5 | |
Raw materials | 354.1 | 331.8 | |
Total Inventory | 993.8 | 895.3 | |
Other current assets | 90.7 | 134.9 | |
Total Current Assets | 2,067.1 | 1,972.7 | |
Property, Plant, and Equipment | |||
Land and land improvements | 131.7 | 129.5 | |
Buildings and fixtures | 992.6 | 977.9 | |
Machinery and equipment | 2,492.1 | 2,398.3 | |
Construction in progress | 205.7 | 232.6 | |
Gross Property, Plant, and Equipment | 3,822.1 | 3,738.3 | |
Accumulated depreciation | (1,865.8) | (1,768.9) | |
Total Property, Plant, and Equipment | 1,956.3 | 1,969.4 | |
Other Noncurrent Assets | |||
Operating lease right-of-use assets | 129.8 | 148.4 | |
Goodwill | 6,311.8 | 6,304.5 | |
Other intangible assets – net | 6,312.8 | 6,429 | |
Other noncurrent assets | 151.9 | 146.4 | |
Total Other Noncurrent Assets | 12,906.3 | 13,028.3 | |
Total Assets | 16,929.7 | 16,970.4 | |
Current Liabilities | |||
Accounts payable | 857.2 | 782 | |
Accrued trade marketing and merchandising | 258.6 | 167.5 | |
Current portion of long-term debt | [1] | 957.3 | 0 |
Short-term borrowings | 280 | 248 | |
Current operating lease liabilities | 35.5 | 36.5 | |
Other current liabilities | 304.2 | 353.1 | |
Total Current Liabilities | 2,692.8 | 1,587.1 | |
Noncurrent Liabilities | |||
Long-term debt, less current portion | [1] | 3,914.5 | 5,373.3 |
Deferred income taxes | 1,357.1 | 1,351.6 | |
Noncurrent operating lease liabilities | 105.7 | 120 | |
Other noncurrent liabilities | 344.6 | 347.5 | |
Total Noncurrent Liabilities | 5,721.9 | 7,192.4 | |
Total Liabilities | 8,414.7 | 8,779.5 | |
Shareholders’ Equity | |||
Common shares | 28.5 | 29 | |
Additional capital | 5,803.1 | 5,794.1 | |
Retained income | 3,010.9 | 2,746.8 | |
Accumulated other comprehensive income (loss) | (327.5) | (379) | |
Total Shareholders’ Equity | 8,515 | 8,190.9 | |
Total Liabilities and Shareholders’ Equity | $ 16,929.7 | $ 16,970.4 | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Operating Activities | ||
Net income | $ 467.8 | $ 365.8 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Depreciation | 108.2 | 103.4 |
Amortization | 119.1 | 117.6 |
Pension settlement loss (gain) | 30.6 | 0 |
Share-based compensation expense | 13.4 | 13.7 |
Other noncash adjustments – net | 7.3 | 6.6 |
Changes in assets and liabilities: | ||
Trade receivables | (24.2) | (18.2) |
Inventories | (97.5) | (102) |
Other current assets | 8.5 | 13.3 |
Accounts payable | 107.5 | (41.3) |
Accrued liabilities | 65.8 | 25.7 |
Income and other taxes | (24.1) | (32.6) |
Other – net | 5.3 | (6.5) |
Net Cash Provided by (Used for) Operating Activities | 787.7 | 445.5 |
Investing Activities | ||
Additions to property, plant, and equipment | (129) | (136.4) |
Other – net | 28.1 | 32.2 |
Net Cash Provided by (Used for) Investing Activities | (100.9) | (104.2) |
Financing Activities | ||
Short-term borrowings (repayments) – net | 31.7 | (102.9) |
Repayments of long-term debt | (500) | (100) |
Quarterly dividends paid | (202.4) | (196.6) |
Purchase of treasury shares | (6.2) | (3.5) |
Proceeds from stock option exercises | 0.7 | 7 |
Other – net | 0.4 | 0.8 |
Net Cash Provided by (Used for) Financing Activities | (675.8) | (395.2) |
Effect of exchange rate changes on cash | 3.5 | 1.4 |
Net increase (decrease) in cash and cash equivalents | 14.5 | (52.5) |
Cash and cash equivalents at beginning of period | 391.1 | 101.3 |
Cash and Cash Equivalents at End of Period | $ 405.6 | $ 48.8 |
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, 2019 | $ 7,970.5 | $ 28.9 | $ 5,755.8 | $ 2,367.6 | $ (181.8) |
Balance, shares at Apr. 30, 2019 | 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 | 113,742,296 | ||||
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 | 114,059,744 | ||||
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 | 114,059,744 | ||||
Balance at Apr. 30, 2020 | $ 8,190.9 | $ 29 | 5,794.1 | 2,746.8 | (379) |
Balance, shares at Apr. 30, 2020 | 114,100,000 | 114,072,726 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 237 | 237 | |||
Other comprehensive income (loss) | 18.1 | 18.1 | |||
Comprehensive Income | 255.1 | ||||
Purchase of treasury shares | (4.6) | $ 0 | (5.5) | 0.9 | |
Purchase of treasury shares, shares | (42,194) | ||||
Stock plans | 6.2 | $ 0 | 6.2 | ||
Stock plans, shares | 56,910 | ||||
Cash dividends declared | (102.4) | (102.4) | |||
Other | 0 | $ (0.5) | 0.5 | 0 | |
Balance at Jul. 31, 2020 | 8,345.2 | $ 28.5 | 5,795.3 | 2,882.3 | (360.9) |
Balance, shares at Jul. 31, 2020 | 114,087,442 | ||||
Balance at Apr. 30, 2020 | $ 8,190.9 | $ 29 | 5,794.1 | 2,746.8 | (379) |
Balance, shares at Apr. 30, 2020 | 114,100,000 | 114,072,726 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 467.8 | ||||
Other comprehensive income (loss) | 51.5 | ||||
Comprehensive Income | 519.3 | ||||
Balance at Oct. 31, 2020 | $ 8,515 | $ 28.5 | 5,803.1 | 3,010.9 | (327.5) |
Balance, shares at Oct. 31, 2020 | 114,100,000 | 114,097,261 | |||
Balance at Jul. 31, 2020 | $ 8,345.2 | $ 28.5 | 5,795.3 | 2,882.3 | (360.9) |
Balance, shares at Jul. 31, 2020 | 114,087,442 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 230.8 | 230.8 | |||
Other comprehensive income (loss) | 33.4 | 33.4 | |||
Comprehensive Income | 264.2 | ||||
Purchase of treasury shares | (1.6) | $ 0 | (1.7) | 0.1 | |
Purchase of treasury shares, shares | (14,769) | ||||
Stock plans | 9.5 | $ 0 | 9.5 | ||
Stock plans, shares | 24,588 | ||||
Cash dividends declared | (102.3) | (102.3) | |||
Other | 0 | 0 | |||
Balance at Oct. 31, 2020 | $ 8,515 | $ 28.5 | $ 5,803.1 | $ 3,010.9 | $ (327.5) |
Balance, shares at Oct. 31, 2020 | 114,100,000 | 114,097,261 |
Condensed Statements of Conso_5
Condensed Statements of Consolidated Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.90 | $ 0.90 | $ 0.88 | $ 0.88 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020, are not necessarily indicative of the results that may be expected for the year ending April 30, 2021. 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, 2020. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 6 Months Ended |
Oct. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In August 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10825, Modernization of Regulation S-K Items 101, 103, and 105 , to modernize certain disclosure requirements for the description of business, legal proceedings, and risk factors. These updates are part of the SEC’s broader disclosure effectiveness initiative, and reflect a principles-based, registrant-specific approach to disclosure, intended to improve the content and simplify compliance for registrants. The amendments were effective on November 9, 2020. While there was no impact to our interim disclosures, our annual disclosures will be updated accordingly to comply with these amendments. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes , which removes certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 will be effective for us on May 1, 2021, with the option to early adopt at any time prior to the effective date. Accounting for franchise taxes will require adoption on a retrospective or modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other applicable provisions will require adoption on a retrospective, modified retrospective, or prospective basis, as required by ASU 2019-12. We do not anticipate that the adoption of this ASU will have a material impact on our financial statements and disclosures. In August 2018, the FASB 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 was effective for us on May 1, 2020. It did not impact our interim disclosures, and we do not anticipate a material impact on our annual disclosures. |
Integration and Restructuring C
Integration and Restructuring Costs | 6 Months Ended |
Oct. 31, 2020 | |
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 Statement of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheet. Integration Costs: As of April 30, 2020, the integration of the Ainsworth Pet Nutrition, LLC (“Ainsworth”) acquisition was considered complete. We incurred total integration costs of $48.6 related to the acquisition, of which $4.7 were noncash charges, primarily consisting of accelerated depreciation. While we did not incur any costs during 2021, we incurred integration costs of $3.3 and $6.6 during the three and six months ended October 31, 2019, respectively, primarily consisting of other |
Divestiture
Divestiture | 6 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestiture | On October 26, 2020, we announced a definitive agreement to sell our Crisco ® oils and shortening business to B&G Foods, Inc. (“B&G Foods”). We expect the transaction to close during the third quarter of 2021, subject to customary closing conditions. The transaction includes oils and shortening products sold under the Crisco brand, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who support the Crisco business. The business generated net sales of approximately $270.0 in 2020. The transaction also includes our oils and shortening business outside the U.S., which is primarily in Canada. We expect to receive approximately $550.0 in proceeds from the divestiture, which is subject to a final working capital adjustment, and anticipate recognizing a gain upon completion of the transaction. The pre-tax gain is estimated to be approximately $115.0 based on the expected proceeds, including the assumed working capital and the carrying value of the net assets, less estimated costs to sell, at the closing date. The operating results for this business were primarily included in the U.S. Retail Consumer Foods segment for the six months ended October 31, 2020. Additionally, the disposal group met the criteria to be classified as held for sale as of October 31, 2020, and was measured at the lower of carrying amount or fair value less costs to sell. The assets and liabilities held for sale at October 31, 2020, are as follows: October 31, 2020 Assets held for sale: Inventories $ 37.9 Property, plant, and equipment 36.9 Operating lease right-of-use assets 1.6 Goodwill 227.6 Other intangible assets – net 117.5 Other noncurrent assets 0.1 Total assets held for sale $ 421.6 Liabilities held for sale: Current operating lease liabilities $ 0.6 Noncurrent operating lease liabilities 1.0 Total liabilities held for sale 1.6 Net assets held for sale $ 420.0 |
Reportable Segments
Reportable Segments | 6 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable Segments | We operate in one industry: the manufacturing and marketing of food and beverage products. We have three reportable segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. Effective during the first quarter of 2021, the presentation of International and Away From Home represents a combination of all other operating segments that are not individually reportable. As a result of leadership changes, these operating segments are being managed and reported separately and no longer represent a reportable segment for segment reporting purposes. Prior year segment results have not been modified, as the combination of these operating segments represents the previously reported International and Away From Home reportable segment. The U.S. Retail Pet Foods segment primarily includes the domestic sales of Rachael Ray ® Nutrish ® , Meow Mix ® , Milk-Bone ® , 9Lives ® , Kibbles ’n Bits ® , Natural Balance ® , Pup-Peroni ® , and Nature’s Recipe ® branded products; the U.S. Retail Coffee segment primarily includes the domestic sales of Folgers ® , Dunkin’ TM , 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. International and Away From Home includes the sale of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., health care operators, restaurants, lodging, hospitality, offices, K-12, colleges and universities, and convenience stores). 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, gains and losses related to the sale of a business, 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, 2020 2019 2020 2019 Net sales: U.S. Retail Pet Foods $ 708.7 $ 709.9 $ 1,401.3 $ 1,379.8 U.S. Retail Coffee 594.7 543.4 1,165.6 1,009.1 U.S. Retail Consumer Foods 479.1 426.1 968.3 828.3 International and Away From Home 251.5 278.4 470.6 519.5 Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 Segment profit: U.S. Retail Pet Foods $ 124.9 $ 137.0 $ 250.2 $ 257.1 U.S. Retail Coffee 202.1 182.5 384.7 311.4 U.S. Retail Consumer Foods 135.3 91.4 266.8 172.4 International and Away From Home 39.5 50.4 70.4 82.7 Total segment profit $ 501.8 $ 461.3 $ 972.1 $ 823.6 Amortization (59.5) (58.8) (119.1) (117.6) Interest expense – net (45.1) (49.1) (91.2) (98.5) Unallocated derivative gains (losses) 31.5 0.9 47.7 29.9 Other special project costs (A) — (3.3) — (6.6) Corporate administrative expenses (93.0) (70.3) (158.8) (141.9) Other income (expense) – net (32.2) (1.6) (33.6) (3.1) Income before income taxes $ 303.5 $ 279.1 $ 617.1 $ 485.8 (A) Other special project costs includes integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. The following table presents certain geographical information. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Net sales: United States $ 1,882.2 $ 1,815.9 $ 3,711.9 $ 3,473.5 International: Canada $ 123.2 $ 113.4 $ 231.4 $ 210.2 All other international 28.6 28.5 62.5 53.0 Total international $ 151.8 $ 141.9 $ 293.9 $ 263.2 Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 The following table presents product category information. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Primary Reportable Segment (A) Coffee $ 659.6 $ 627.1 $ 1,295.3 $ 1,173.8 U.S. Retail Coffee Dog food 277.8 302.6 555.5 598.2 U.S. Retail Pet Foods Cat food 231.9 213.8 451.9 409.7 U.S. Retail Pet Foods Pet snacks 216.7 210.0 429.5 403.2 U.S. Retail Pet Foods Peanut butter 192.8 175.4 392.7 353.3 U.S. Retail Consumer Foods Frozen handheld 106.3 93.4 201.8 164.9 U.S. Retail Consumer Foods Fruit spreads 89.2 86.5 193.5 175.7 U.S. Retail Consumer Foods Shortening and oils 82.7 71.8 160.0 123.3 U.S. Retail Consumer Foods Juices and beverages 36.7 32.4 70.3 63.6 U.S. Retail Consumer Foods Portion control 31.1 42.5 55.1 81.9 Other (B) Baking mixes and ingredients 30.0 26.0 53.2 39.7 Other (B) Other 79.2 76.3 147.0 149.4 Other (B) Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 (A) The identified primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020 2019 2020 2019 Net income $ 230.8 $ 211.2 $ 467.8 $ 365.8 Less: Net income allocated to participating securities 0.9 1.3 2.0 2.1 Net income allocated to common stockholders $ 229.9 $ 209.9 $ 465.8 $ 363.7 Weighted-average common shares outstanding 113.7 113.4 113.6 113.3 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 113.7 113.4 113.6 113.3 Net income per common share $ 2.02 $ 1.85 $ 4.10 $ 3.21 Net income per common share – assuming dilution $ 2.02 $ 1.85 $ 4.10 $ 3.21 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | The following table summarizes the components of our long-term debt. October 31, 2020 April 30, 2020 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ 750.0 $ 757.4 $ 750.0 $ 761.1 3.00% Senior Notes due March 15, 2022 400.0 399.1 400.0 398.7 3.50% Senior Notes due March 15, 2025 1,000.0 996.4 1,000.0 996.0 3.38% Senior Notes due December 15, 2027 500.0 496.9 500.0 496.7 2.38% Senior Notes due March 15, 2030 500.0 495.5 500.0 495.2 4.25% Senior Notes due March 15, 2035 650.0 644.1 650.0 643.9 4.38% Senior Notes due March 15, 2045 600.0 586.8 600.0 586.5 3.55% Senior Notes due March 15, 2050 300.0 295.7 300.0 295.7 Term Loan Credit Agreement due May 14, 2021 200.0 199.9 700.0 699.5 Total long-term debt $ 4,900.0 $ 4,871.8 $ 5,400.0 $ 5,373.3 Current portion of long-term debt 950.0 957.3 — — Total long-term debt, less current portion $ 3,950.0 $ 3,914.5 $ 5,400.0 $ 5,373.3 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. 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. 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, 2020, we have prepaid $1.3 billion on the Term Loan to date, including $500.0 during the first half of 2021, of which $200.0 was paid during the second quarter. The interest rate on the Term Loan at October 31, 2020, was 0.95 percent . 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 not have a balance outstanding under the revolving credit facility at October 31, 2020, or April 30, 2020. 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, 2020, and April 30, 2020, we had $280.0 and $248.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 0.17 percent and 0.40 percent, respectively. Interest paid totaled $76.2 and $78.4 for the three months ended October 31, 2020 and 2019, respectively, and $86.4 and $100.0, for the six months ended October 31, 2020 and 2019, respectively. This differs from interest expense due to the amortization of debt issuance costs and discounts, effect of interest rate contracts, capitalized interest, payment of other debt fees, and the timing of interest payments. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 6 Months Ended |
Oct. 31, 2020 | |
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 2020 2019 2020 2019 Service cost $ 0.4 $ 0.4 $ 0.4 $ 0.4 Interest cost 3.2 5.3 0.5 0.6 Expected return on plan assets (4.0) (6.1) — — Amortization of net actuarial loss (gain) 2.5 2.0 — — Amortization of prior service cost (credit) 0.2 0.2 (0.2) (0.3) Settlement loss (gain) 30.6 — — — Net periodic benefit cost $ 32.9 $ 1.8 $ 0.7 $ 0.7 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2020 2019 2020 2019 Service cost $ 0.9 $ 0.8 $ 0.9 $ 0.9 Interest cost 7.8 10.5 0.9 1.2 Expected return on plan assets (10.1) (12.1) — — Amortization of net actuarial loss (gain) 5.8 4.0 — (0.1) Amortization of prior service cost (credit) 0.4 0.4 (0.5) (0.6) Settlement loss (gain) 30.6 — — — Net periodic benefit cost $ 35.4 $ 3.6 $ 1.3 $ 1.4 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 31, 2020 | |
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, soybean meal, edible oils, 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. In 2020, we terminated interest rate contracts concurrent with the pricing of the Senior Notes due March 15, 2030, and March 15, 2050. They were designated as cash flow hedges and were used to manage our exposure to interest rate volatility associated with the anticipated debt financing. The termination resulted in a pre-tax loss of $239.8, which was deferred and included as a component of accumulated other comprehensive income (loss) and is being amortized as interest expense over the life of the debt. In 2015, we terminated the interest rate swap on the Senior Notes due October 15, 2021, which was designated as a fair value hedge and used to hedge against the changes in the fair value of the debt. As a result of the early termination, we received $58.1 in cash, which included $4.6 of accrued and prepaid interest. The gain on termination was recorded as an increase in the long-term debt balance and is being recognized over the remaining life of the underlying debt as a reduction to interest expense. To date, we have recognized $45.3 of the gain, of which $2.0 and $4.2 was recognized during the three and six months ended October 31, 2020, respectively, and $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: $4.2 through the remainder of 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, 2020 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 17.3 $ 11.3 $ 1.1 $ 0.3 Foreign currency exchange contracts 0.7 0.8 — — Total derivative instruments $ 18.0 $ 12.1 $ 1.1 $ 0.3 April 30, 2020 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 14.7 $ 33.2 $ — $ — Foreign currency exchange contracts 2.4 0.1 — — Total derivative instruments $ 17.1 $ 33.3 $ — $ — We have elected to not offset fair value amounts recognized for our exchange-traded derivative instruments and our cash margin accounts executed with the same counterparty that are generally subject to enforceable netting agreements. We are required to maintain cash margin accounts in connection with funding the settlement of our open positions. At October 31, 2020, and April 30, 2020, we maintained cash margin account balances of $15.3 and $43.2, respectively, included in other current assets in the Condensed Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the Condensed Statements of Consolidated Cash Flows. In the event of default and immediate net settlement of all of our open positions with individual counterparties, all of our derivative liabilities would be fully offset by either our derivative asset positions or margin accounts based on the net asset or liability position with our individual counterparties. Interest expense – net, as presented in the Condensed Statements of Consolidated Income was $45.1 and $49.1 for the three months ended October 31, 2020 and 2019, respectively, and was $91.2 and $98.5 for the six months ended October 31, 2020 and 2019, respectively. The following table presents information on the pre-tax gains and losses recognized on terminated interest rate contracts that were designated as cash flow hedges. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Gains (losses) recognized in other comprehensive income (loss) $ — $ (44.1) $ — $ (97.1) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) (3.5) (0.1) (6.9) (0.2) Change in accumulated other comprehensive income (loss) $ 3.5 $ (44.0) $ 6.9 $ (96.9) Included as a component of accumulated other comprehensive income (loss) at October 31, 2020, and April 30, 2020, were deferred net pre-tax losses of $234.2 and $241.1, respectively, related to the terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) at October 31, 2020, and April 30, 2020, was $53.9 and $55.5, respectively. Approximately $13.9 of the net pre-tax loss will be recognized over the next 12 months related to the terminated interest rate contracts. The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as hedging instruments. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Gains (losses) on commodity contracts $ 13.4 $ (10.1) $ 24.8 $ 2.5 Gains (losses) on foreign currency exchange contracts (0.4) (0.1) (2.7) (1.1) Total gains (losses) recognized in cost of products sold $ 13.0 $ (10.2) $ 22.1 $ 1.4 Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 13.0 $ (10.2) $ 22.1 $ 1.4 Less: Net gains (losses) on derivative positions reclassified to segment operating profit (18.5) (11.1) (25.6) (28.5) Unallocated derivative gains (losses) $ 31.5 $ 0.9 $ 47.7 $ 29.9 As of October 31, 2020, the net cumulative unallocated derivative gains were $14.8, and at April 30, 2020, the net cumulative unallocated derivative losses were $32.9. The following table presents the gross notional value of outstanding derivative contracts. October 31, 2020 April 30, 2020 Commodity contracts $ 662.1 $ 890.1 Foreign currency exchange contracts 81.1 65.6 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020 April 30, 2020 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 39.4 $ 39.4 $ 38.6 $ 38.6 Derivative financial instruments – net 6.7 6.7 (16.2) (16.2) Total long-term debt (4,871.8) (5,385.4) (5,373.3) (5,740.6) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Significant Significant Fair Value at October 31, 2020 Marketable securities and other investments: (A) Equity mutual funds $ 8.2 $ — $ — $ 8.2 Municipal obligations — 26.9 — 26.9 Money market funds 4.3 — — 4.3 Derivative financial instruments: (B) Commodity contracts – net 6.3 0.5 — 6.8 Foreign currency exchange contracts – net 0.1 (0.2) — (0.1) Total long-term debt (C) (5,184.3) (201.1) — (5,385.4) Total financial instruments measured at fair value $ (5,165.4) $ (173.9) $ — $ (5,339.3) Quoted Prices in Significant Significant Fair Value at Marketable securities and other investments: (A) Equity mutual funds $ 8.7 $ — $ — $ 8.7 Municipal obligations — 24.2 — 24.2 Money market funds 5.7 — — 5.7 Derivative financial instruments: (B) Commodity contracts – net (18.3) (0.2) — (18.5) Foreign currency exchange contracts – net 0.2 2.1 — 2.3 Total long-term debt (C) (5,032.0) (708.6) — (5,740.6) Total financial instruments measured at fair value $ (5,035.7) $ (682.5) $ — $ (5,718.2) (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, 2020, our municipal obligations are scheduled to mature as follows: $1.1 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $20.8 in 2025 and beyond. We do not have any municipal obligations scheduled to mature in 2023. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: 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 7: Debt and Financing Arrangements. |
Leases
Leases | 6 Months Ended |
Oct. 31, 2020 | |
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, these optional periods do not typically impact the lease term as we are not reasonably certain to exercise them. 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. The following table sets forth the right-of-use assets and lease liabilities recognized in the Condensed Consolidated Balance Sheets. October 31, 2020 April 30, 2020 Operating lease right-of-use assets $ 129.8 $ 148.4 Operating lease liabilities: Current operating lease liabilities $ 35.5 $ 36.5 Noncurrent operating lease liabilities 105.7 120.0 Total operating lease liabilities $ 141.2 $ 156.5 Finance lease right-of-use assets: Machinery and equipment $ 10.1 $ 11.6 Accumulated depreciation (5.2) (5.9) Total property, plant, and equipment $ 4.9 $ 5.7 Finance lease liabilities: Other current liabilities $ 2.1 $ 2.2 Other noncurrent liabilities 2.9 3.5 Total finance lease liabilities $ 5.0 $ 5.7 The following table summarizes the components of lease expense. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Operating lease cost $ 11.1 $ 12.9 $ 22.4 $ 25.3 Finance lease cost: Amortization of right-of-use assets 0.6 0.8 1.2 1.6 Interest on lease liabilities — — 0.1 0.1 Variable lease cost 5.5 6.3 11.1 12.6 Short-term lease cost 10.3 9.7 19.3 17.4 Sublease income (1.0) (1.5) (2.5) (2.3) Net lease cost $ 26.5 $ 28.2 $ 51.6 $ 54.7 The following table sets forth cash flow and noncash information related to leases. Six Months Ended October 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20.2 $ 25.3 Operating cash flows from finance leases 0.1 0.1 Financing cash flows from finance leases 1.4 1.5 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases — 16.2 Finance leases 0.5 0.8 The following table summarizes the maturity of our lease liabilities by fiscal year. October 31, 2020 Operating Leases Finance Leases 2021 (remainder of the year) $ 20.2 $ 1.2 2022 37.2 1.7 2023 34.6 1.1 2024 22.9 0.8 2025 15.0 0.3 2026 and beyond 20.7 0.1 Total undiscounted minimum lease payments $ 150.6 $ 5.2 Less: Imputed interest 9.4 0.2 Lease liabilities $ 141.2 $ 5.0 The following table sets forth the weighted average remaining lease term and discount rate. October 31, 2020 April 30, 2020 Weighted average remaining lease term (in years): Operating leases 4.5 4.7 Finance leases 3.2 3.4 Weighted average discount rate: Operating leases 3.0 % 3.1 % Finance leases 2.8 % 2.9 % |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The effective tax rates for the three months ended October 31, 2020 and 2019, were 24.0 and 24.3 percent, respectively, and for the six months ended October 31, 2020 and 2019, were 24.2 and 24.7 percent, respectively. During the three and six months ended October 31, 2020 and 2019, the effective tax rates varied from the U.S. statutory income tax rate of 21.0 percent primarily due to the impact of state income taxes. Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $2.6, primarily as a result of expiring statute of limitations periods. As of October 31, 2020, the undistributed earnings of our foreign subsidiaries remain permanently reinvested. During 2020, the Coronavirus Aid, Relief, and Economic Security Act was enacted, which included rollbacks of certain provisions of the U.S. Tax Cuts and Jobs Act (the “Tax Act”). While these specific rollbacks did not impact us, future legislative actions in response to the novel coronavirus (“COVID-19”) could further modify provisions of the Tax Act, and such changes will need to be analyzed for their respective impacts on our income taxes at that time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Oct. 31, 2020 | |
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 Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated Balance at May 1, 2020 $ (50.5) $ (185.6) $ (146.7) $ 3.8 $ (379.0) Reclassification adjustments — 6.9 5.2 — 12.1 Current period credit (charge) 15.2 — 35.3 0.8 51.3 Income tax benefit (expense) — (1.6) (10.1) (0.2) (11.9) Balance at October 31, 2020 $ (35.3) $ (180.3) $ (116.3) $ 4.4 $ (327.5) Foreign Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated 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) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2020 is related to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: 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. The current period charge in 2021 primarily includes the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer the obligations of our Canadian defined benefit pension plan to an insurance company. For additional information, see Note 8: Pensions and Other Postretirement Benefits. |
Contingencies
Contingencies | 6 Months Ended |
Oct. 31, 2020 | |
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 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, 2020. 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. In addition to the legal proceedings discussed above, we are currently a defendant in Council for Education and Research on Toxics (the “Plaintiff” or “CERT”) v. Brad Barry LLC, et al., which alleges that we, in addition to nearly eighty other defendants (collectively the “Defendants”) who manufacture, package, distribute, or sell packaged coffee, 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 sought equitable relief, including warnings to consumers, as well as civil penalties in the amount of the statutory maximum of $2,500 per day per violation of Proposition 65. The Plaintiff asserted that every consumed cup of coffee, absent a compliant warning, was equivalent to a violation under Proposition 65. In June 2019, the state agency responsible for administering the Proposition 65 program, the California Office of Environmental Health Hazard Assessment (“OEHHA”), approved a regulation clarifying that cancer warnings are not required for coffee under Proposition 65, and in August 2020, the Court granted the Defendants’ motion for summary judgment based on the regulation. The Plaintiff submitted its formal notice to appeal on November 20, 2020. The outcome and the financial impact of the case, if any, cannot be predicted at this time. Accordingly, no loss contingency has been recorded for this matter as of October 31, 2020, and the likelihood of loss is not |
Common Shares
Common Shares | 6 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | The following table sets forth common share information. October 31, 2020 April 30, 2020 Common shares authorized 300.0 300.0 Common shares outstanding 114.1 114.1 Treasury shares 32.4 32.4 |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 6 Months Ended |
Oct. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In August 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10825, Modernization of Regulation S-K Items 101, 103, and 105 , to modernize certain disclosure requirements for the description of business, legal proceedings, and risk factors. These updates are part of the SEC’s broader disclosure effectiveness initiative, and reflect a principles-based, registrant-specific approach to disclosure, intended to improve the content and simplify compliance for registrants. The amendments were effective on November 9, 2020. While there was no impact to our interim disclosures, our annual disclosures will be updated accordingly to comply with these amendments. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes , which removes certain exceptions for investments, intraperiod allocations, and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 will be effective for us on May 1, 2021, with the option to early adopt at any time prior to the effective date. Accounting for franchise taxes will require adoption on a retrospective or modified retrospective basis through a cumulative-effect adjustment to retained earnings as of the beginning of the fiscal year of adoption. All other applicable provisions will require adoption on a retrospective, modified retrospective, or prospective basis, as required by ASU 2019-12. We do not anticipate that the adoption of this ASU will have a material impact on our financial statements and disclosures. In August 2018, the FASB 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 was effective for us on May 1, 2020. It did not impact our interim disclosures, and we do not anticipate a material impact on our annual disclosures. |
Divestiture (Tables)
Divestiture (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets and liabilities held for sale | The assets and liabilities held for sale at October 31, 2020, are as follows: October 31, 2020 Assets held for sale: Inventories $ 37.9 Property, plant, and equipment 36.9 Operating lease right-of-use assets 1.6 Goodwill 227.6 Other intangible assets – net 117.5 Other noncurrent assets 0.1 Total assets held for sale $ 421.6 Liabilities held for sale: Current operating lease liabilities $ 0.6 Noncurrent operating lease liabilities 1.0 Total liabilities held for sale 1.6 Net assets held for sale $ 420.0 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Segment Reporting [Abstract] | |
Income by segment | Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Net sales: U.S. Retail Pet Foods $ 708.7 $ 709.9 $ 1,401.3 $ 1,379.8 U.S. Retail Coffee 594.7 543.4 1,165.6 1,009.1 U.S. Retail Consumer Foods 479.1 426.1 968.3 828.3 International and Away From Home 251.5 278.4 470.6 519.5 Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 Segment profit: U.S. Retail Pet Foods $ 124.9 $ 137.0 $ 250.2 $ 257.1 U.S. Retail Coffee 202.1 182.5 384.7 311.4 U.S. Retail Consumer Foods 135.3 91.4 266.8 172.4 International and Away From Home 39.5 50.4 70.4 82.7 Total segment profit $ 501.8 $ 461.3 $ 972.1 $ 823.6 Amortization (59.5) (58.8) (119.1) (117.6) Interest expense – net (45.1) (49.1) (91.2) (98.5) Unallocated derivative gains (losses) 31.5 0.9 47.7 29.9 Other special project costs (A) — (3.3) — (6.6) Corporate administrative expenses (93.0) (70.3) (158.8) (141.9) Other income (expense) – net (32.2) (1.6) (33.6) (3.1) Income before income taxes $ 303.5 $ 279.1 $ 617.1 $ 485.8 (A) Other special project costs includes integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. |
Geographical information | The following table presents certain geographical information. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Net sales: United States $ 1,882.2 $ 1,815.9 $ 3,711.9 $ 3,473.5 International: Canada $ 123.2 $ 113.4 $ 231.4 $ 210.2 All other international 28.6 28.5 62.5 53.0 Total international $ 151.8 $ 141.9 $ 293.9 $ 263.2 Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 |
Product category information | The following table presents product category information. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Primary Reportable Segment (A) Coffee $ 659.6 $ 627.1 $ 1,295.3 $ 1,173.8 U.S. Retail Coffee Dog food 277.8 302.6 555.5 598.2 U.S. Retail Pet Foods Cat food 231.9 213.8 451.9 409.7 U.S. Retail Pet Foods Pet snacks 216.7 210.0 429.5 403.2 U.S. Retail Pet Foods Peanut butter 192.8 175.4 392.7 353.3 U.S. Retail Consumer Foods Frozen handheld 106.3 93.4 201.8 164.9 U.S. Retail Consumer Foods Fruit spreads 89.2 86.5 193.5 175.7 U.S. Retail Consumer Foods Shortening and oils 82.7 71.8 160.0 123.3 U.S. Retail Consumer Foods Juices and beverages 36.7 32.4 70.3 63.6 U.S. Retail Consumer Foods Portion control 31.1 42.5 55.1 81.9 Other (B) Baking mixes and ingredients 30.0 26.0 53.2 39.7 Other (B) Other 79.2 76.3 147.0 149.4 Other (B) Total net sales $ 2,034.0 $ 1,957.8 $ 4,005.8 $ 3,736.7 (A) The identified primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020 2019 2020 2019 Net income $ 230.8 $ 211.2 $ 467.8 $ 365.8 Less: Net income allocated to participating securities 0.9 1.3 2.0 2.1 Net income allocated to common stockholders $ 229.9 $ 209.9 $ 465.8 $ 363.7 Weighted-average common shares outstanding 113.7 113.4 113.6 113.3 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 113.7 113.4 113.6 113.3 Net income per common share $ 2.02 $ 1.85 $ 4.10 $ 3.21 Net income per common share – assuming dilution $ 2.02 $ 1.85 $ 4.10 $ 3.21 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Debt Disclosure [Abstract] | |
Long-term debt | The following table summarizes the components of our long-term debt. October 31, 2020 April 30, 2020 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ 750.0 $ 757.4 $ 750.0 $ 761.1 3.00% Senior Notes due March 15, 2022 400.0 399.1 400.0 398.7 3.50% Senior Notes due March 15, 2025 1,000.0 996.4 1,000.0 996.0 3.38% Senior Notes due December 15, 2027 500.0 496.9 500.0 496.7 2.38% Senior Notes due March 15, 2030 500.0 495.5 500.0 495.2 4.25% Senior Notes due March 15, 2035 650.0 644.1 650.0 643.9 4.38% Senior Notes due March 15, 2045 600.0 586.8 600.0 586.5 3.55% Senior Notes due March 15, 2050 300.0 295.7 300.0 295.7 Term Loan Credit Agreement due May 14, 2021 200.0 199.9 700.0 699.5 Total long-term debt $ 4,900.0 $ 4,871.8 $ 5,400.0 $ 5,373.3 Current portion of long-term debt 950.0 957.3 — — Total long-term debt, less current portion $ 3,950.0 $ 3,914.5 $ 5,400.0 $ 5,373.3 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Pensions and Other Postretire_2
Pensions and Other Postretirement Benefits (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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 2020 2019 2020 2019 Service cost $ 0.4 $ 0.4 $ 0.4 $ 0.4 Interest cost 3.2 5.3 0.5 0.6 Expected return on plan assets (4.0) (6.1) — — Amortization of net actuarial loss (gain) 2.5 2.0 — — Amortization of prior service cost (credit) 0.2 0.2 (0.2) (0.3) Settlement loss (gain) 30.6 — — — Net periodic benefit cost $ 32.9 $ 1.8 $ 0.7 $ 0.7 Six Months Ended October 31, Defined Benefit Pension Plans Other Postretirement Benefits 2020 2019 2020 2019 Service cost $ 0.9 $ 0.8 $ 0.9 $ 0.9 Interest cost 7.8 10.5 0.9 1.2 Expected return on plan assets (10.1) (12.1) — — Amortization of net actuarial loss (gain) 5.8 4.0 — (0.1) Amortization of prior service cost (credit) 0.4 0.4 (0.5) (0.6) Settlement loss (gain) 30.6 — — — Net periodic benefit cost $ 35.4 $ 3.6 $ 1.3 $ 1.4 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 17.3 $ 11.3 $ 1.1 $ 0.3 Foreign currency exchange contracts 0.7 0.8 — — Total derivative instruments $ 18.0 $ 12.1 $ 1.1 $ 0.3 April 30, 2020 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 14.7 $ 33.2 $ — $ — Foreign currency exchange contracts 2.4 0.1 — — Total derivative instruments $ 17.1 $ 33.3 $ — $ — |
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 terminated interest rate contracts that were designated as cash flow hedges. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Gains (losses) recognized in other comprehensive income (loss) $ — $ (44.1) $ — $ (97.1) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) (3.5) (0.1) (6.9) (0.2) Change in accumulated other comprehensive income (loss) $ 3.5 $ (44.0) $ 6.9 $ (96.9) |
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, 2020 2019 2020 2019 Gains (losses) on commodity contracts $ 13.4 $ (10.1) $ 24.8 $ 2.5 Gains (losses) on foreign currency exchange contracts (0.4) (0.1) (2.7) (1.1) Total gains (losses) recognized in cost of products sold $ 13.0 $ (10.2) $ 22.1 $ 1.4 |
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, 2020 2019 2020 2019 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 13.0 $ (10.2) $ 22.1 $ 1.4 Less: Net gains (losses) on derivative positions reclassified to segment operating profit (18.5) (11.1) (25.6) (28.5) Unallocated derivative gains (losses) $ 31.5 $ 0.9 $ 47.7 $ 29.9 |
Outstanding derivative contracts | The following table presents the gross notional value of outstanding derivative contracts. October 31, 2020 April 30, 2020 Commodity contracts $ 662.1 $ 890.1 Foreign currency exchange contracts 81.1 65.6 |
Other Financial Instruments a_2
Other Financial Instruments and Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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, 2020 April 30, 2020 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 39.4 $ 39.4 $ 38.6 $ 38.6 Derivative financial instruments – net 6.7 6.7 (16.2) (16.2) Total long-term debt (4,871.8) (5,385.4) (5,373.3) (5,740.6) |
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 Significant Significant Fair Value at October 31, 2020 Marketable securities and other investments: (A) Equity mutual funds $ 8.2 $ — $ — $ 8.2 Municipal obligations — 26.9 — 26.9 Money market funds 4.3 — — 4.3 Derivative financial instruments: (B) Commodity contracts – net 6.3 0.5 — 6.8 Foreign currency exchange contracts – net 0.1 (0.2) — (0.1) Total long-term debt (C) (5,184.3) (201.1) — (5,385.4) Total financial instruments measured at fair value $ (5,165.4) $ (173.9) $ — $ (5,339.3) Quoted Prices in Significant Significant Fair Value at Marketable securities and other investments: (A) Equity mutual funds $ 8.7 $ — $ — $ 8.7 Municipal obligations — 24.2 — 24.2 Money market funds 5.7 — — 5.7 Derivative financial instruments: (B) Commodity contracts – net (18.3) (0.2) — (18.5) Foreign currency exchange contracts – net 0.2 2.1 — 2.3 Total long-term debt (C) (5,032.0) (708.6) — (5,740.6) Total financial instruments measured at fair value $ (5,035.7) $ (682.5) $ — $ (5,718.2) (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, 2020, our municipal obligations are scheduled to mature as follows: $1.1 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $20.8 in 2025 and beyond. We do not have any municipal obligations scheduled to mature in 2023. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: 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 7: Debt and Financing Arrangements. |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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 Sheets. October 31, 2020 April 30, 2020 Operating lease right-of-use assets $ 129.8 $ 148.4 Operating lease liabilities: Current operating lease liabilities $ 35.5 $ 36.5 Noncurrent operating lease liabilities 105.7 120.0 Total operating lease liabilities $ 141.2 $ 156.5 Finance lease right-of-use assets: Machinery and equipment $ 10.1 $ 11.6 Accumulated depreciation (5.2) (5.9) Total property, plant, and equipment $ 4.9 $ 5.7 Finance lease liabilities: Other current liabilities $ 2.1 $ 2.2 Other noncurrent liabilities 2.9 3.5 Total finance lease liabilities $ 5.0 $ 5.7 |
Components of lease expense | The following table summarizes the components of lease expense. Three Months Ended October 31, Six Months Ended October 31, 2020 2019 2020 2019 Operating lease cost $ 11.1 $ 12.9 $ 22.4 $ 25.3 Finance lease cost: Amortization of right-of-use assets 0.6 0.8 1.2 1.6 Interest on lease liabilities — — 0.1 0.1 Variable lease cost 5.5 6.3 11.1 12.6 Short-term lease cost 10.3 9.7 19.3 17.4 Sublease income (1.0) (1.5) (2.5) (2.3) Net lease cost $ 26.5 $ 28.2 $ 51.6 $ 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, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 20.2 $ 25.3 Operating cash flows from finance leases 0.1 0.1 Financing cash flows from finance leases 1.4 1.5 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases — 16.2 Finance leases 0.5 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, 2020 Operating Leases Finance Leases 2021 (remainder of the year) $ 20.2 $ 1.2 2022 37.2 1.7 2023 34.6 1.1 2024 22.9 0.8 2025 15.0 0.3 2026 and beyond 20.7 0.1 Total undiscounted minimum lease payments $ 150.6 $ 5.2 Less: Imputed interest 9.4 0.2 Lease liabilities $ 141.2 $ 5.0 |
Maturity of finance lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. October 31, 2020 Operating Leases Finance Leases 2021 (remainder of the year) $ 20.2 $ 1.2 2022 37.2 1.7 2023 34.6 1.1 2024 22.9 0.8 2025 15.0 0.3 2026 and beyond 20.7 0.1 Total undiscounted minimum lease payments $ 150.6 $ 5.2 Less: Imputed interest 9.4 0.2 Lease liabilities $ 141.2 $ 5.0 |
Weighted average remaining lease tern and discount rate | The following table sets forth the weighted average remaining lease term and discount rate. October 31, 2020 April 30, 2020 Weighted average remaining lease term (in years): Operating leases 4.5 4.7 Finance leases 3.2 3.4 Weighted average discount rate: Operating leases 3.0 % 3.1 % Finance leases 2.8 % 2.9 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
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 Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated Balance at May 1, 2020 $ (50.5) $ (185.6) $ (146.7) $ 3.8 $ (379.0) Reclassification adjustments — 6.9 5.2 — 12.1 Current period credit (charge) 15.2 — 35.3 0.8 51.3 Income tax benefit (expense) — (1.6) (10.1) (0.2) (11.9) Balance at October 31, 2020 $ (35.3) $ (180.3) $ (116.3) $ 4.4 $ (327.5) Foreign Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated 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) (A) The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2020 is related to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: 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. The current period charge in 2021 primarily includes the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer the obligations of our Canadian defined benefit pension plan to an insurance company. For additional information, see Note 8: Pensions and Other Postretirement Benefits. |
Common Shares (Tables)
Common Shares (Tables) | 6 Months Ended |
Oct. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. October 31, 2020 April 30, 2020 Common shares authorized 300.0 300.0 Common shares outstanding 114.1 114.1 Treasury shares 32.4 32.4 |
Integration and Restructuring_2
Integration and Restructuring Costs (Details) - Ainsworth [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Cost Incurred to Date | $ 48.6 | ||||
Restructuring and Related Cost, Noncash Charge Incurred to Date | 4.7 | ||||
Restructuring and Related Cost, Incurred Cost | $ 0 | $ 3.3 | $ 0 | $ 6.6 | |
Employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 0.5 |
Divestiture (Details)
Divestiture (Details) - Crisco Business [Member] $ in Millions | 3 Months Ended | 12 Months Ended | |
Jan. 31, 2021USD ($) | Apr. 30, 2020USD ($) | Oct. 31, 2020USD ($)Position | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Not Discontinued Operation, Number of Employees | Position | 160 | ||
Inventories | $ 37.9 | ||
Property, plant, and equipment | 36.9 | ||
Operating lease right-of-use assets | 1.6 | ||
Goodwill | 227.6 | ||
Other intangible assets - net | 117.5 | ||
Other noncurrent assets | 0.1 | ||
Total assets held for sale | 421.6 | ||
Current operating lease liabilities | 0.6 | ||
Noncurrent operating lease liabilities | 1 | ||
Total liabilities held for sale | 1.6 | ||
Net assets held for sale | $ 420 | ||
Annual net sales | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Annual net sales | $ 270 | ||
Forecast [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Proceeds from divestiture | $ 550 | ||
Gain on divestiture | $ 115 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Net sales: | |||||
Net sales | $ 2,034 | $ 1,957.8 | $ 4,005.8 | $ 3,736.7 | |
Segment profit: | |||||
Segment profit | 501.8 | 461.3 | 972.1 | 823.6 | |
Amortization | (59.5) | (58.8) | (119.1) | (117.6) | |
Interest expense – net | (45.1) | (49.1) | (91.2) | (98.5) | |
Unallocated derivative gains (losses) | 31.5 | 0.9 | 47.7 | 29.9 | |
Other special project costs (A) | [1] | 0 | (3.3) | 0 | (6.6) |
Corporate administrative expenses | (93) | (70.3) | (158.8) | (141.9) | |
Other income (expense) – net | (32.2) | (1.6) | (33.6) | (3.1) | |
Income Before Income Taxes | 303.5 | 279.1 | 617.1 | 485.8 | |
U.S. Retail Pet Foods [Member] | |||||
Net sales: | |||||
Net sales | 708.7 | 709.9 | 1,401.3 | 1,379.8 | |
Segment profit: | |||||
Segment profit | 124.9 | 137 | 250.2 | 257.1 | |
U.S. Retail Coffee [Member] | |||||
Net sales: | |||||
Net sales | 594.7 | 543.4 | 1,165.6 | 1,009.1 | |
Segment profit: | |||||
Segment profit | 202.1 | 182.5 | 384.7 | 311.4 | |
U.S. Retail Consumer Foods [Member] | |||||
Net sales: | |||||
Net sales | 479.1 | 426.1 | 968.3 | 828.3 | |
Segment profit: | |||||
Segment profit | 135.3 | 91.4 | 266.8 | 172.4 | |
International and Away From Home | |||||
Net sales: | |||||
Net sales | 251.5 | 278.4 | 470.6 | 519.5 | |
Segment profit: | |||||
Segment profit | $ 39.5 | $ 50.4 | $ 70.4 | $ 82.7 | |
[1] | Other special project costs includes integration and restructuring costs. For more information, see Note 3: Integration and Restructuring Costs. |
Reportable Segments (Details 1)
Reportable Segments (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Geographical information [Line Items] | ||||
Net sales | $ 2,034 | $ 1,957.8 | $ 4,005.8 | $ 3,736.7 |
United States | ||||
Geographical information [Line Items] | ||||
Net sales | 1,882.2 | 1,815.9 | 3,711.9 | 3,473.5 |
Total international | ||||
Geographical information [Line Items] | ||||
Net sales | 151.8 | 141.9 | 293.9 | 263.2 |
Canada | ||||
Geographical information [Line Items] | ||||
Net sales | 123.2 | 113.4 | 231.4 | 210.2 |
All other international | ||||
Geographical information [Line Items] | ||||
Net sales | $ 28.6 | $ 28.5 | $ 62.5 | $ 53 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | ||
Product category information [Line Items] | |||||
Net sales | $ 2,034 | $ 1,957.8 | $ 4,005.8 | $ 3,736.7 | |
Percent of product sales attributable to primary reportable segment | 75.00% | ||||
U.S. Retail Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 594.7 | 543.4 | $ 1,165.6 | 1,009.1 | |
U.S. Retail Coffee [Member] | Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 659.6 | 627.1 | 1,295.3 | 1,173.8 |
U.S. Retail Pet Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 708.7 | 709.9 | 1,401.3 | 1,379.8 | |
U.S. Retail Pet Foods [Member] | Dog food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 277.8 | 302.6 | 555.5 | 598.2 |
U.S. Retail Pet Foods [Member] | Cat food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 231.9 | 213.8 | 451.9 | 409.7 |
U.S. Retail Pet Foods [Member] | Pet snacks [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 216.7 | 210 | 429.5 | 403.2 |
U.S. Retail Consumer Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 479.1 | 426.1 | 968.3 | 828.3 | |
U.S. Retail Consumer Foods [Member] | Peanut butter [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 192.8 | 175.4 | 392.7 | 353.3 |
U.S. Retail Consumer Foods [Member] | Frozen handheld [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 106.3 | 93.4 | 201.8 | 164.9 |
U.S. Retail Consumer Foods [Member] | Fruit spreads [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 89.2 | 86.5 | 193.5 | 175.7 |
U.S. Retail Consumer Foods [Member] | Shortening and oils [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 82.7 | 71.8 | 160 | 123.3 |
U.S. Retail Consumer Foods [Member] | Juices and beverages [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 36.7 | 32.4 | 70.3 | 63.6 |
Other | |||||
Product category information [Line Items] | |||||
Net sales | 251.5 | 278.4 | 470.6 | 519.5 | |
Other | Portion control [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | 31.1 | 42.5 | 55.1 | 81.9 |
Other | Baking mixes and ingredients [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | 30 | 26 | 53.2 | 39.7 |
Other | Other [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | $ 79.2 | $ 76.3 | $ 147 | $ 149.4 |
[1] | The identified primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. | ||||
[2] | Represents the combined International and Away From Home operating segments. |
Reportable Segments (Details Te
Reportable Segments (Details Textual) | 6 Months Ended |
Oct. 31, 2020IndustrySegment | |
Segment Reporting [Abstract] | |
Number of industries in which Company operates | Industry | 1 |
Number of reportable segments | Segment | 3 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Oct. 31, 2020 | Jul. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||
Net income | $ 230.8 | $ 237 | $ 211.2 | $ 154.6 | $ 467.8 | $ 365.8 |
Less: Net income allocated to participating securities | 0.9 | 1.3 | 2 | 2.1 | ||
Net income allocated to common stockholders | $ 229.9 | $ 209.9 | $ 465.8 | $ 363.7 | ||
Weighted-average common shares outstanding (in shares) | 113.7 | 113.4 | 113.6 | 113.3 | ||
Add: Dilutive effect of stock options (in shares) | 0 | 0 | 0 | 0 | ||
Weighted-average common shares outstanding - assuming dilution (in shares) | 113.7 | 113.4 | 113.6 | 113.3 | ||
Net income per common share (in dollars per share) | $ 2.02 | $ 1.85 | $ 4.10 | $ 3.21 | ||
Net Income - Assuming Dilution (in dollars per share) | $ 2.02 | $ 1.85 | $ 4.10 | $ 3.21 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Details) - USD ($) | Oct. 31, 2020 | Apr. 30, 2020 | May 14, 2018 | |
Long-term debt | ||||
Debt instrument face amount | $ 4,900,000,000 | $ 5,400,000,000 | ||
Total long-term debt | [1] | 4,871,800,000 | 5,373,300,000 | |
Current portion of long-term debt | [1] | 957,300,000 | 0 | |
Long-term debt, less current portion | [1] | $ 3,914,500,000 | $ 5,373,300,000 | |
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] | $ 757,400,000 | $ 761,100,000 | |
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] | $ 399,100,000 | $ 398,700,000 | |
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] | $ 996,400,000 | $ 996,000,000 | |
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] | $ 496,900,000 | $ 496,700,000 | |
2.38 % Senior Notes due March 15, 2030 | ||||
Long-term debt | ||||
Interest rate on notes | 2.38% | 2.38% | ||
Debt instrument face amount | $ 500,000,000 | $ 500,000,000 | ||
Senior Notes | [1] | $ 495,500,000 | $ 495,200,000 | |
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] | $ 644,100,000 | $ 643,900,000 | |
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] | $ 586,800,000 | $ 586,500,000 | |
3.55% Senior Notes due March 15, 2050 | ||||
Long-term debt | ||||
Interest rate on notes | 3.55% | 3.55% | ||
Debt instrument face amount | $ 300,000,000 | $ 300,000,000 | ||
Senior Notes | [1] | 295,700,000 | 295,700,000 | |
Term Loan Credit Agreement due May 14, 2021 | ||||
Long-term debt | ||||
Debt instrument face amount | 200,000,000 | 700,000,000 | $ 1,500,000,000 | |
Term loan credit agreement carrying value | [1] | 199,900,000 | 699,500,000 | |
Current portion of long term debt | ||||
Long-term debt | ||||
Debt instrument face amount | 950,000,000 | 0 | ||
Total long term debt, less current portion | ||||
Long-term debt | ||||
Debt instrument face amount | $ 3,950,000,000 | $ 5,400,000,000 | ||
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements (Details Textual) | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||||
Oct. 31, 2020USD ($)Bank | Oct. 31, 2019USD ($) | Oct. 31, 2020USD ($)Bank | Oct. 31, 2019USD ($) | Oct. 31, 2020USD ($)Bank | Apr. 30, 2020USD ($) | May 14, 2018USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 4,900,000,000 | $ 4,900,000,000 | $ 4,900,000,000 | $ 5,400,000,000 | |||
Repayments of long-term debt | 500,000,000 | $ 100,000,000 | |||||
Short-term borrowings | 280,000,000 | 280,000,000 | 280,000,000 | 248,000,000 | |||
Interest paid | 76,200,000 | $ 78,400,000 | 86,400,000 | $ 100,000,000 | |||
Term Loan Credit Agreement due May 14, 2021 | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Debt instrument face amount | 200,000,000 | 200,000,000 | 200,000,000 | 700,000,000 | $ 1,500,000,000 | ||
Repayments of long-term debt | $ 200,000,000 | $ 500,000,000 | $ 1,300,000,000 | ||||
Long-term Debt, Weighted Average Interest Rate, at Point in Time | 0.95% | 0.95% | 0.95% | ||||
Revolving Credit Facility [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | $ 1,800,000,000 | ||||
Number of banks | Bank | 11 | 11 | 11 | ||||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | $ 0 | 0 | |||
Commercial Paper [Member] | |||||||
Debt and Financing Arrangements (Textual) [Abstract] | |||||||
Commercial paper, borrowing capacity | 1,800,000,000 | 1,800,000,000 | 1,800,000,000 | ||||
Short-term borrowings | $ 280,000,000 | $ 280,000,000 | $ 280,000,000 | $ 248,000,000 | |||
Commercial paper weighted-average interest rate | 0.17% | 0.17% | 0.17% | 0.40% |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Components of net periodic benefit cost | ||||
Settlement loss (gain) | $ 30.6 | $ 0 | ||
Defined Benefit Pension Plans | ||||
Components of net periodic benefit cost | ||||
Service cost | $ 0.4 | $ 0.4 | 0.9 | 0.8 |
Interest cost | 3.2 | 5.3 | 7.8 | 10.5 |
Expected return on plan assets | (4) | (6.1) | (10.1) | (12.1) |
Amortization of net actuarial loss (gain) | 2.5 | 2 | 5.8 | 4 |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.4 | 0.4 |
Settlement loss (gain) | 30.6 | 0 | 30.6 | 0 |
Net periodic benefit cost | 32.9 | 1.8 | 35.4 | 3.6 |
Defined Benefit Pension Plans | Canada | ||||
Components of net periodic benefit cost | ||||
Settlement loss (gain) | 27.9 | |||
Decrease in pension obligations | (82.6) | |||
Other Postretirement Benefits | ||||
Components of net periodic benefit cost | ||||
Service cost | 0.4 | 0.4 | 0.9 | 0.9 |
Interest cost | 0.5 | 0.6 | 0.9 | 1.2 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | 0 | 0 | 0 | (0.1) |
Amortization of prior service cost (credit) | (0.2) | (0.3) | (0.5) | (0.6) |
Settlement loss (gain) | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0.7 | $ 0.7 | $ 1.3 | $ 1.4 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 18 | $ 17.1 |
Other Current Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 17.3 | 14.7 |
Other Current Assets [Member] | Foreign currency exchange contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.7 | 2.4 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 12.1 | 33.3 |
Other Current Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 11.3 | 33.2 |
Other Current Liabilities [Member] | Foreign currency exchange contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.8 | 0.1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.1 | 0 |
Other Noncurrent Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.1 | 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 | 0.3 | 0 |
Other Noncurrent Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0.3 | 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, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in other comprehensive income (loss) | $ 0 | $ (44.1) | $ 0 | $ (97.1) |
Change in accumulated other comprehensive income (loss) | 3.5 | (44) | 6.9 | (96.9) |
Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense | $ (3.5) | $ (0.1) | $ (6.9) | $ (0.2) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | $ 13 | $ (10.2) | $ 22.1 | $ 1.4 |
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 | 13.4 | (10.1) | 24.8 | 2.5 |
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 | $ (0.4) | $ (0.1) | $ (2.7) | $ (1.1) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Price Risk Derivatives [Abstract] | ||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ 13 | $ (10.2) | $ 22.1 | $ 1.4 |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | (18.5) | (11.1) | (25.6) | (28.5) |
Unallocated derivative gains (losses) | $ 31.5 | $ 0.9 | $ 47.7 | $ 29.9 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross notional amount | $ 662.1 | $ 890.1 |
Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross notional amount | $ 81.1 | $ 65.6 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | Apr. 30, 2020 | Apr. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Cash margin accounts related to derivative instruments recognized | $ 15.3 | $ 15.3 | $ 43.2 | |||
Amortization of deferred gain on early termination agreement | 2 | $ 2.1 | 4.2 | $ 4.1 | ||
Interest expense – net | (45.1) | $ (49.1) | (91.2) | $ (98.5) | ||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ 14.8 | (32.9) | ||||
Commodity contracts | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Derivative instrument maturity | 1 year | |||||
Foreign currency exchange contracts | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Derivative instrument maturity | 1 year | |||||
Interest rate contracts | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Deferred pre-tax net gain (loss) included in accumulated other comprehensive loss | (239.8) | |||||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (234.2) | $ (234.2) | (241.1) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | $ 53.9 | 53.9 | $ 55.5 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (13.9) | |||||
Total Through Q2 2021 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 45.3 | |||||
2021 [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 4.2 | |||||
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, 2020 | Apr. 30, 2020 | |
Carrying amount and fair value of financial instruments | |||
Total long-term debt | [1] | $ (4,871.8) | $ (5,373.3) |
Carrying Amount [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 39.4 | 38.6 | |
Derivative financial instruments – net | 6.7 | (16.2) | |
Total long-term debt | (4,871.8) | (5,373.3) | |
Fair Value [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 39.4 | 38.6 | |
Derivative financial instruments – net | 6.7 | (16.2) | |
Total long-term debt | $ (5,385.4) | $ (5,740.6) | |
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Other Financial Instruments a_4
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | $ (5,385.4) | $ (5,740.6) |
Total financial instruments measured at fair value | (5,339.3) | (5,718.2) | |
Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 8.2 | 8.7 |
Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 26.9 | 24.2 |
Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 4.3 | 5.7 |
Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 6.8 | (18.5) |
Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (0.1) | 2.3 |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (5,184.3) | (5,032) |
Total financial instruments measured at fair value | (5,165.4) | (5,035.7) | |
Fair Value, Inputs, Level 1 [Member] | Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 8.2 | 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] | 4.3 | 5.7 |
Fair Value, Inputs, Level 1 [Member] | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 6.3 | (18.3) |
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 | 0.2 |
Fair Value, Inputs, Level 2 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (201.1) | (708.6) |
Total financial instruments measured at fair value | (173.9) | (682.5) | |
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] | 26.9 | 24.2 |
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] | 0.5 | (0.2) |
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] | (0.2) | 2.1 |
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 |
[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 7: Debt and Financing Arrangements. | ||
[2] | Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of October 31, 2020, our municipal obligations are scheduled to mature as follows: $1.1 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $20.8 in 2025 and beyond. We do not have any municipal obligations scheduled to mature in 2023. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: Derivative Financial Instruments. |
Other Financial Instruments a_5
Other Financial Instruments and Fair Value Measurements (Details Textual) $ in Millions | Oct. 31, 2020USD ($) |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2021 | $ 1.1 |
Company's Municipal bond mature in 2022 | 1.5 |
Company's Municipal bond mature in 2023 | 0 |
Company's Municipal bond mature in 2024 | 3.5 |
Company's Municipal bond mature in 2025 and beyond | $ 20.8 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 |
Operating lease right-of-use assets | $ 129.8 | $ 148.4 |
Current operating lease liabilities | 35.5 | 36.5 |
Noncurrent operating lease liabilities | 105.7 | 120 |
Total operating lease liabilities | 141.2 | 156.5 |
Total finance lease liabilities | 5 | 5.7 |
Machinery and Equipment [Member] | ||
Machinery and equipment | 10.1 | 11.6 |
Accumulated Depreciation [Member] | ||
Accumulated depreciation | (5.2) | (5.9) |
Property, Plant and Equipment [Member] | ||
Total property, plant, and equipment | 4.9 | 5.7 |
Other Current Liabilities [Member] | ||
Current finance lease liabilities | 2.1 | 2.2 |
Other Noncurrent Liabilities [Member] | ||
Noncurrent finance lease liabilities | $ 2.9 | $ 3.5 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||||
Operating lease cost | $ 11.1 | $ 12.9 | $ 22.4 | $ 25.3 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 0.6 | 0.8 | 1.2 | 1.6 |
Interest on lease liabilities | 0 | 0 | 0.1 | 0.1 |
Variable lease cost | 5.5 | 6.3 | 11.1 | 12.6 |
Short-term lease cost | 10.3 | 9.7 | 19.3 | 17.4 |
Sublease income | (1) | (1.5) | (2.5) | (2.3) |
Net lease cost | $ 26.5 | $ 28.2 | $ 51.6 | $ 54.7 |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 31, 2020 | Oct. 31, 2019 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 20.2 | $ 25.3 |
Operating cash flows from finance leases | 0.1 | 0.1 |
Financing cash flows from finance leases | 1.4 | 1.5 |
Right-of-use asset obtained in exchange for operating lease liabilities | 0 | 16.2 |
Right-of-use asset obtained in exchange for finance lease liabilities | $ 0.5 | $ 0.8 |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Millions | Oct. 31, 2020 | Apr. 30, 2020 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2021 (remainder of the year) | $ 20.2 | |
2022 | 37.2 | |
2023 | 34.6 | |
2024 | 22.9 | |
2025 | 15 | |
2026 and beyond | 20.7 | |
Total undiscounted minimum lease payments | 150.6 | |
Less: Imputed interest | 9.4 | |
Total operating lease liabilities | 141.2 | $ 156.5 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2021 (remainder of the year) | 1.2 | |
2022 | 1.7 | |
2023 | 1.1 | |
2024 | 0.8 | |
2025 | 0.3 | |
2026 and beyond | 0.1 | |
Total undiscounted minimum lease payments | 5.2 | |
Less: Imputed interest | 0.2 | |
Total finance lease liabilities | $ 5 | $ 5.7 |
Leases (Details 4)
Leases (Details 4) | Oct. 31, 2020 | Apr. 30, 2020 |
Leases [Abstract] | ||
Operating leases, Weighted average remaining lease term | 4 years 6 months | 4 years 8 months 12 days |
Finance leases, Weighted average remaining lease term | 3 years 2 months 12 days | 3 years 4 months 24 days |
Operating leases, Weighted average discount rate | 3.00% | 3.10% |
Finance leases, Weighted average discount rate | 2.80% | 2.90% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2020 | Oct. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 24.00% | 24.30% | 24.20% | 24.70% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | 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 | $ 2.6 | $ 2.6 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ (379) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (327.5) | ||
Foreign Currency Translation Adjustment [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (50.5) | $ (35.5) | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | 15.2 | 5.1 | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (35.3) | (30.4) | |
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] | (185.6) | (40.4) |
Reclassification adjustments | [1] | 6.9 | 0.2 |
Current period credit (charge) | [1] | 0 | (97.1) |
Income tax benefit (expense) | [1] | (1.6) | 22.3 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [1] | (180.3) | (115) |
Pension and Other Postretirement Liabilities [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [2] | (146.7) | (110) |
Reclassification adjustments | [2] | 5.2 | 3.2 |
Current period credit (charge) | [2] | 35.3 | 0 |
Income tax benefit (expense) | [2] | (10.1) | (0.7) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [2] | (116.3) | (107.5) |
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 | 3.8 | 4.1 | |
Reclassification adjustments | 0 | 0 | |
Current period credit (charge) | 0.8 | 0.5 | |
Income tax benefit (expense) | (0.2) | (0.1) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 4.4 | 4.5 | |
AOCI Attributable to Parent [Member] | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (379) | (181.8) | |
Reclassification adjustments | 12.1 | 3.4 | |
Current period credit (charge) | 51.3 | (91.5) | |
Income tax benefit (expense) | (11.9) | 21.5 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ (327.5) | $ (248.4) | |
[1] | The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period charge in 2020 is related to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: 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. The current period charge in 2021 primarily includes the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer the obligations of our Canadian defined benefit pension plan to an insurance company. For additional information, see Note 8: Pensions and Other Postretirement Benefits. |
Common Shares (Details)
Common Shares (Details) - shares | 6 Months Ended | ||||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 22, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | |
Common Shares Information | |||||
Common shares authorized | 300,000,000 | 300,000,000 | |||
Common shares outstanding | 114,100,000 | 114,100,000 | |||
Treasury shares | 32,400,000 | 32,400,000 | |||
Common Shares (Additional Textual) [Abstract] | |||||
Stock Repurchased During Period, Shares | 0 | 0 | |||
Shares remaining for repurchase | 8,600,000 | 3,600,000 | |||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 5,000,000 |