Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2021 | Feb. 18, 2021 | |
Entity Listings [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2021 | |
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 | Q3 | |
Current Fiscal Year End Date | --04-30 | |
Entity Common Stock, Shares Outstanding | 109,585,620 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | ||
Income Statement [Abstract] | |||||
Net sales | $ 2,076.7 | $ 1,972.3 | $ 6,082.5 | $ 5,709 | |
Cost of products sold | 1,267.3 | 1,212.3 | 3,679.5 | 3,495.4 | |
Gross Profit | 809.4 | 760 | 2,403 | 2,213.6 | |
Selling, distribution, and administrative expenses | 371.7 | 358.9 | 1,112 | 1,100.9 | |
Amortization | 57 | 58.8 | 176.1 | 176.4 | |
Other intangible assets impairment charge | 0 | 52.4 | 0 | 52.4 | |
Other special project costs | [1] | 1.7 | 3.3 | 1.7 | 9.9 |
Other operating expense (income) – net | (27.2) | (2.4) | (34.9) | (2.4) | |
Operating Income | 406.2 | 289 | 1,148.1 | 876.4 | |
Interest expense – net | (43.5) | (45.1) | (134.7) | (143.6) | |
Other income (expense) – net | (1.2) | (1.4) | (34.8) | (4.5) | |
Income Before Income Taxes | 361.5 | 242.5 | 978.6 | 728.3 | |
Income tax expense | 100 | 55.1 | 249.3 | 175.1 | |
Net Income | $ 261.5 | $ 187.4 | $ 729.3 | $ 553.2 | |
Earnings per common share: | |||||
Net Income (in dollars per share) | $ 2.32 | $ 1.64 | $ 6.42 | $ 4.85 | |
Net Income - Assuming Dilution (in dollars per share) | $ 2.32 | $ 1.64 | $ 6.42 | $ 4.85 | |
[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 | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 261.5 | $ 187.4 | $ 729.3 | $ 553.2 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 14.2 | (2.5) | 29.4 | 2.6 |
Cash flow hedging derivative activity, net of tax | 2.9 | (17.4) | 8.2 | (92) |
Pension and other postretirement benefit plans activity, net of tax | 6.3 | 1.5 | 36.7 | 4 |
Available-for-sale securities activity, net of tax | 0.6 | 0.5 | 1.2 | 0.9 |
Total Other Comprehensive Income (Loss) | 24 | (17.9) | 75.5 | (84.5) |
Comprehensive Income | $ 285.5 | $ 169.5 | $ 804.8 | $ 468.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 | ||
Current Assets | ||||
Cash and cash equivalents | $ 501.5 | $ 391.1 | ||
Trade receivables – net | 604.9 | 551.4 | ||
Inventories: | ||||
Finished products | 563.5 | 563.5 | ||
Raw materials | 334.4 | 331.8 | ||
Total Inventory | 897.9 | 895.3 | ||
Other current assets | 74.4 | 134.9 | ||
Total Current Assets | 2,078.7 | 1,972.7 | ||
Property, Plant, and Equipment | ||||
Land and land improvements | 124 | 129.5 | ||
Buildings and fixtures | 956.1 | 977.9 | ||
Machinery and equipment | 2,414.5 | 2,398.3 | ||
Construction in progress | 252.7 | 232.6 | ||
Gross Property, Plant, and Equipment | 3,747.3 | 3,738.3 | ||
Accumulated depreciation | (1,809.5) | (1,768.9) | ||
Total Property, Plant, and Equipment | 1,937.8 | 1,969.4 | ||
Other Noncurrent Assets | ||||
Operating lease right-of-use assets | 147.9 | 148.4 | ||
Goodwill | 6,016.9 | [1] | 6,304.5 | |
Other intangible assets – net | 6,099.4 | 6,429 | ||
Other noncurrent assets | 148.7 | 146.4 | ||
Total Other Noncurrent Assets | 12,412.9 | 13,028.3 | ||
Total Assets | 16,429.4 | 16,970.4 | ||
Current Liabilities | ||||
Accounts payable | 896.7 | 782 | ||
Accrued trade marketing and merchandising | 246.4 | 167.5 | ||
Current portion of long-term debt | [2] | 755.4 | 0 | |
Short-term borrowings | 166 | 248 | ||
Current operating lease liabilities | 39.2 | 36.5 | ||
Other current liabilities | 428.7 | 353.1 | ||
Total Current Liabilities | 2,532.4 | 1,587.1 | ||
Noncurrent Liabilities | ||||
Long-term debt, less current portion | [2] | 3,915.3 | 5,373.3 | |
Deferred income taxes | 1,302.9 | 1,351.6 | ||
Noncurrent operating lease liabilities | 120.2 | 120 | ||
Other noncurrent liabilities | 347 | 347.5 | ||
Total Noncurrent Liabilities | 5,685.4 | 7,192.4 | ||
Total Liabilities | 8,217.8 | 8,779.5 | ||
Shareholders’ Equity | ||||
Common shares | 27.4 | 29 | ||
Additional capital | 5,591.6 | 5,794.1 | ||
Retained income | 2,896.1 | 2,746.8 | ||
Accumulated other comprehensive income (loss) | (303.5) | (379) | ||
Total Shareholders’ Equity | 8,211.6 | 8,190.9 | ||
Total Liabilities and Shareholders’ Equity | $ 16,429.4 | $ 16,970.4 | ||
[1] | Included in goodwill as of May 1, 2020, are accumulated goodwill impairment charges of $242.9. No impairment charges have been recognized in 2021. | |||
[2] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Condensed Statements of Conso_3
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Operating Activities | ||
Net income | $ 729.3 | $ 553.2 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | ||
Depreciation | 161.7 | 156.7 |
Amortization | 176.1 | 176.4 |
Other intangible assets impairment charge | 0 | 52.4 |
Pension settlement loss (gain) | 30.8 | 0 |
Share-based compensation expense | 20.9 | 19.8 |
Gain on divestitures - net | (27.2) | 0 |
Other noncash adjustments – net | 11.6 | 15.9 |
Changes in assets and liabilities, net of effect from divestitures: | ||
Trade receivables | (50.4) | 26.7 |
Inventories | (50.9) | (48) |
Other current assets | 0.9 | 7 |
Accounts payable | 142.7 | 12.3 |
Accrued liabilities | 88.7 | 44.6 |
Income and other taxes | 20.1 | (40.9) |
Other – net | 19.7 | (9) |
Net Cash Provided by (Used for) Operating Activities | 1,274 | 967.1 |
Investing Activities | ||
Additions to property, plant, and equipment | (198.7) | (192.9) |
Proceeds from divestitures - net | 569.3 | 0 |
Other – net | 48.5 | 15.3 |
Net Cash Provided by (Used for) Investing Activities | 419.1 | (177.6) |
Financing Activities | ||
Short-term borrowings (repayments) – net | (82.4) | (122.6) |
Repayments of long-term debt | (700) | (400) |
Quarterly dividends paid | (304.8) | (296.7) |
Purchase of treasury shares | (504.1) | (4.3) |
Proceeds from stock option exercises | 0.7 | 7 |
Other – net | 0 | 0.5 |
Net Cash Provided by (Used for) Financing Activities | (1,590.6) | (816.1) |
Effect of exchange rate changes on cash | 7.9 | (0.3) |
Net increase (decrease) in cash and cash equivalents | 110.4 | (26.9) |
Cash and cash equivalents at beginning of period | 391.1 | 101.3 |
Cash and Cash Equivalents at End of Period | $ 501.5 | $ 74.4 |
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 | 553.2 | ||||
Other comprehensive income (loss) | (84.5) | ||||
Comprehensive Income | 468.7 | ||||
Balance at Jan. 31, 2020 | 8,170.4 | $ 29 | 5,787.2 | 2,620.5 | (266.3) |
Balance, shares at Jan. 31, 2020 | 114,041,313 | ||||
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 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 187.4 | 187.4 | |||
Other comprehensive income (loss) | (17.9) | (17.9) | |||
Comprehensive Income | 169.5 | ||||
Purchase of treasury shares | (0.8) | $ 0 | (1) | 0.2 | |
Purchase of treasury shares, shares | (7,180) | ||||
Stock plans | 6.5 | $ 0 | 6.5 | ||
Stock plans, shares | (11,251) | ||||
Cash dividends declared | (100.1) | (100.1) | |||
Other | 0 | 0 | |||
Balance at Jan. 31, 2020 | 8,170.4 | $ 29 | 5,787.2 | 2,620.5 | (266.3) |
Balance, shares at Jan. 31, 2020 | 114,041,313 | ||||
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 | $ 729.3 | ||||
Other comprehensive income (loss) | 75.5 | ||||
Comprehensive Income | 804.8 | ||||
Balance at Jan. 31, 2021 | $ 8,211.6 | $ 27.4 | 5,591.6 | 2,896.1 | (303.5) |
Balance, shares at Jan. 31, 2021 | 109,800,000 | 109,789,150 | |||
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) | |||
Balance at Oct. 31, 2020 | 8,515 | $ 28.5 | 5,803.1 | 3,010.9 | (327.5) |
Balance, shares at Oct. 31, 2020 | 114,097,261 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 261.5 | 261.5 | |||
Other comprehensive income (loss) | 24 | 24 | |||
Comprehensive Income | 285.5 | ||||
Purchase of treasury shares | (497.9) | $ (1.1) | (219) | (277.8) | |
Purchase of treasury shares, shares | (4,301,631) | ||||
Stock plans | 7.5 | $ 0 | 7.5 | ||
Stock plans, shares | (6,480) | ||||
Cash dividends declared | (98.5) | (98.5) | |||
Balance at Jan. 31, 2021 | $ 8,211.6 | $ 27.4 | $ 5,591.6 | $ 2,896.1 | $ (303.5) |
Balance, shares at Jan. 31, 2021 | 109,800,000 | 109,789,150 |
Condensed Statements of Conso_5
Condensed Statements of Consolidated Shareholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Common Stock, Dividends, Per Share, Declared | $ 0.90 | $ 0.90 | $ 0.90 | $ 0.88 | $ 0.88 | $ 0.88 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Jan. 31, 2021 | |
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 nine months ended January 31, 2021, 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 | 9 Months Ended |
Jan. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In November 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, to modernize and simplify Management’s Discussion and Analysis and certain financial disclosure requirements. These updates reflect a continued principles-based disclosure approach, similar to the standards released earlier in the year. We will be required to apply these amendments for 2022, with early adoption permitted. We do not anticipate that the adoption of these amendments will have a material impact on our disclosures. In August 2020, 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 | 9 Months Ended |
Jan. 31, 2021 | |
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 divestiture, acquisition, or restructuring activities. Employee-related costs include severance, retention bonuses, and relocation costs. Severance costs and retention bonuses are recognized over the estimated future service period of the affected employees, and relocation costs are expensed as incurred. Other transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the integration or restructuring activities, which are expensed as incurred. These integration and restructuring costs are not allocated to segment profit and are reported in other special project costs in the Condensed Statements of Consolidated Income. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets. Integration Costs: 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 $9.9 during the three and nine months ended January 31, 2020, respectively, primarily consisting of other transition and termination costs. The obligation related to severance costs and retention bonuses was fully satisfied as of January 31, 2021, and was $0.5 at April 30, 2020. Restructuring Costs: A restructuring program was approved by the Board of Directors (the “Board”) during the third quarter of 2021. Under this program, we have identified opportunities to reduce our overall cost structure and optimize our organizational design, inclusive of stranded overhead associated with recent divestitures of the Crisco ® and Natural Balance ® businesses. For additional information, see Note 4: Divestitures. While the entire scope of the program cannot be quantified at this time, we expect to incur approximately $60.0 in costs associated with the restructuring activities approved to date. Over half of these costs are expected to be employee-related costs, while the remainder represent other transition and termination costs associated with our cost reduction and margin management initiatives. We anticipate the activities and costs associated with this restructuring program will be completed by the end of 2023, with the majority of the costs expected to be incurred in 2022. |
Divestitures
Divestitures | 3 Months Ended |
Jan. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | On December 1, 2020, we sold the Crisco oils and shortening business to B&G Foods, Inc. (“B&G Foods”). The transaction included oils and shortening products sold under the Crisco brand, primarily in the U.S. and Canada, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who supported the Crisco business. The business generated net sales of approximately $270.0 in 2020, included primarily in the U.S. Retail Consumer Foods segment. Net proceeds from the divestiture were $533.4, inclusive of a preliminary working capital adjustment and transaction costs paid to date, which will be finalized during the fourth quarter of 2021. On January 29, 2021, we sold the Natural Balance premium pet food business to Nexus Capital Management LP (“Nexus”). The transaction encompassed pet food products sold under the Natural Balance brand, certain trademarks and licensing agreements, and select employees who supported the Natural Balance business. The business generated net sales of approximately $220.0 in 2020, included in the U.S. Retail Pet Foods segment. Net proceeds from the divestiture were $35.9, inclusive of a preliminary working capital adjustment and transaction costs paid to date, which will be finalized during the fourth quarter of 2021. Upon completion of these transactions during the third quarter of 2021, we recognized a pre-tax gain of $114.9 related to the Crisco business and a pre-tax loss of $87.7 related to the Natural Balance business, which were included in other operating expense (income) – net within the Condensed Statement of Consolidated Income. The following table summarizes the net assets and liabilities disposed, which were measured at the lower of carrying amount or fair value less costs to sell. January 31, 2021 Crisco Natural Balance Assets disposed: Inventories $ 32.9 $ 18.2 Property, plant, and equipment – net 37.2 — Operating lease right-of-use assets 1.6 0.1 Goodwill 227.6 74.1 Other intangible assets – net 117.5 41.3 Other noncurrent assets 0.2 — Total assets disposed $ 417.0 $ 133.7 Liabilities disposed: Current operating lease liabilities $ 0.6 $ — Noncurrent operating lease liabilities 1.0 — Deferred income taxes — 10.1 Other noncurrent liabilities — 0.3 Total liabilities disposed 1.6 10.4 Net assets disposed $ 415.4 $ 123.3 |
Reportable Segments
Reportable Segments | 9 Months Ended |
Jan. 31, 2021 | |
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 ® , 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 ® and Jif ® 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 (“unallocated derivative gains and losses”), 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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net sales: U.S. Retail Pet Foods $ 768.6 $ 721.9 $ 2,169.9 $ 2,101.7 U.S. Retail Coffee 625.9 558.8 1,791.5 1,567.9 U.S. Retail Consumer Foods 447.6 422.9 1,415.9 1,251.2 International and Away From Home 234.6 268.7 705.2 788.2 Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 Segment profit: U.S. Retail Pet Foods $ 135.1 $ 146.0 $ 385.3 $ 403.1 U.S. Retail Coffee 210.7 189.5 595.4 500.9 U.S. Retail Consumer Foods 110.9 84.2 377.7 256.6 International and Away From Home 24.5 49.0 94.9 131.7 Total segment profit $ 481.2 $ 468.7 $ 1,453.3 $ 1,292.3 Amortization (57.0) (58.8) (176.1) (176.4) Other intangible assets impairment charge — (52.4) — (52.4) Gain on divestitures – net 27.2 — 27.2 — Interest expense – net (43.5) (45.1) (134.7) (143.6) Unallocated derivative gains (losses) 33.8 7.7 81.5 37.6 Other special project costs (A) (1.7) (3.3) (1.7) (9.9) Corporate administrative expenses (77.3) (72.9) (236.1) (214.8) Other income (expense) – net (1.2) (1.4) (34.8) (4.5) Income before income taxes $ 361.5 $ 242.5 $ 978.6 $ 728.3 (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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net sales: United States $ 1,939.5 $ 1,837.6 $ 5,651.4 $ 5,311.1 International: Canada $ 113.9 $ 108.7 $ 345.3 $ 318.9 All other international 23.3 26.0 85.8 79.0 Total international $ 137.2 $ 134.7 $ 431.1 $ 397.9 Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 The following table presents product category information. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Primary Reportable Segment (A) Coffee $ 693.7 $ 650.7 $ 1,989.0 $ 1,824.5 U.S. Retail Coffee Dog food 296.5 300.8 852.0 899.0 U.S. Retail Pet Foods Cat food 245.2 223.9 697.1 633.6 U.S. Retail Pet Foods Pet snacks 246.6 214.6 676.1 617.8 U.S. Retail Pet Foods Peanut butter 208.5 180.0 601.2 533.3 U.S. Retail Consumer Foods Frozen handheld 100.0 82.6 301.8 247.5 U.S. Retail Consumer Foods Fruit spreads 99.8 88.3 293.3 264.0 U.S. Retail Consumer Foods Shortening and oils 33.9 68.9 193.9 192.2 U.S. Retail Consumer Foods Juices and beverages 33.5 30.4 103.8 94.0 U.S. Retail Consumer Foods Portion control 27.9 42.0 83.0 123.9 Other (B) Baking mixes and ingredients 21.5 19.6 74.7 59.3 Other (B) Other 69.6 70.5 216.6 219.9 Other (B) Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 (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 | 9 Months Ended |
Jan. 31, 2021 | |
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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net income $ 261.5 $ 187.4 $ 729.3 $ 553.2 Less: Net income allocated to participating securities 1.1 1.1 3.1 3.2 Net income allocated to common stockholders $ 260.4 $ 186.3 $ 726.2 $ 550.0 Weighted-average common shares outstanding 112.1 113.4 113.1 113.3 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 112.1 113.4 113.1 113.3 Net income per common share $ 2.32 $ 1.64 $ 6.42 $ 4.85 Net income per common share – assuming dilution $ 2.32 $ 1.64 $ 6.42 $ 4.85 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | A summary of changes in goodwill is as follows: U.S. Retail U.S. Retail U.S. Retail International Total Balance at May 1, 2020 $ 2,442.3 $ 2,090.9 $ 1,358.2 $ 413.1 $ 6,304.5 Divestitures (74.1) — (210.7) (16.9) (301.7) Other (A) — — — 14.1 14.1 Balance at January 31, 2021 (B) $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 410.3 $ 6,016.9 (A) The amounts classified as other represent foreign currency exchange adjustments. (B) Included in goodwill as of May 1, 2020, are accumulated goodwill impairment charges of $242.9. No impairment charges have been recognized in 2021. The following table summarizes our other intangible assets and related accumulated amortization and impairment charges including foreign currency exchange adjustments. January 31, 2021 April 30, 2020 Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Finite-lived intangible assets subject to Customer and contractual relationships $ 4,471.1 $ 1,497.2 $ 2,973.9 $ 4,471.1 $ 1,353.0 $ 3,118.1 Patents and technology 168.5 145.1 23.4 168.5 138.4 30.1 Trademarks 348.0 177.9 170.1 662.0 311.0 351.0 Total intangible assets subject to amortization $ 4,987.6 $ 1,820.2 $ 3,167.4 $ 5,301.6 $ 1,802.4 $ 3,499.2 Indefinite-lived intangible assets not subject to Trademarks $ 3,158.1 $ 226.1 $ 2,932.0 $ 3,158.1 $ 228.3 $ 2,929.8 Total other intangible assets $ 8,145.7 $ 2,046.3 $ 6,099.4 $ 8,459.7 $ 2,030.7 $ 6,429.0 The decrease in finite-lived intangible assets from April 30, 2020, is primarily due to the divestitures of the Crisco and Natural Balance trademarks during the third quarter of 2021. For additional information, see Note 4: Divestitures. We review goodwill and other indefinite-lived intangible assets for impairment at least annually on February 1, and more often if indicators of impairment exist. As a result of the divestitures during the third quarter of 2021, we reviewed all impacted reporting units and concluded that the estimated fair values were in excess of the carrying values as of the date of the divestitures. Furthermore, there were no other indicators of impairment, and as a result, we do not believe that our reporting units or any of our material indefinite-lived intangible assets are more likely than not impaired as of January 31, 2021. However, the goodwill and indefinite-lived trademarks within the U.S. Retail Pet Foods segment remain susceptible to future impairment charges due to the narrow differences between fair value and carrying value. Any significant adverse change in our near or long-term projections or macroeconomic conditions could result in future impairment charges. The carrying values of the goodwill and indefinite-lived intangible assets within the U.S. Retail Pet Foods segment were $2.4 billion and $1.4 billion, respectively, as of January 31, 2021. In addition, we continue to evaluate the nature and extent to which the novel coronavirus (“COVID-19”) could impact our business, specifically as it relates to the fair value of our goodwill and indefinite-lived intangible assets. While we have concluded there were no indicators of impairment as of January 31, 2021, any significant sustained adverse change in consumer purchasing behaviors, government restrictions, financial results, or macroeconomic conditions could result in future impairment, specifically as it relates to the Away From Home reporting unit, which has experienced a decline in demand as a result of COVID-19. As of January 31, 2021, the goodwill related to the Away From Home reporting unit represented approximately 65 percent of the goodwill within the combined International and Away From Home operating segments. During the third quarter of 2020, we recognized an impairment charge of $52.4 related to the recently divested Natural Balance brand within the U.S. Retail Pet Foods segment due to a decline in the 2020 and long-term net sales expectations and the royalty rate used in the interim analysis, primarily driven by the market environment and re-positioning of this brand within the Pet Foods brand portfolio. This charge was included as a noncash charge in our Condensed Statement of Consolidated Income. Additionally, we reclassified the Natural Balance brand as a finite-lived intangible asset as of February 1, 2020, as a result of a change in our long-term strategic expectations for the brand. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | The following table summarizes the components of our long-term debt. January 31, 2021 April 30, 2020 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ 750.0 $ 755.4 $ 750.0 $ 761.1 3.00% Senior Notes due March 15, 2022 400.0 399.2 400.0 398.7 3.50% Senior Notes due March 15, 2025 1,000.0 996.6 1,000.0 996.0 3.38% Senior Notes due December 15, 2027 500.0 497.0 500.0 496.7 2.38% Senior Notes due March 15, 2030 500.0 495.6 500.0 495.2 4.25% Senior Notes due March 15, 2035 650.0 644.2 650.0 643.9 4.38% Senior Notes due March 15, 2045 600.0 586.9 600.0 586.5 3.55% Senior Notes due March 15, 2050 300.0 295.8 300.0 295.7 Term Loan Credit Agreement due May 14, 2021 — — 700.0 699.5 Total long-term debt $ 4,700.0 $ 4,670.7 $ 5,400.0 $ 5,373.3 Current portion of long-term debt 750.0 755.4 — — Total long-term debt, less current portion $ 3,950.0 $ 3,915.3 $ 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. During the third quarter of 2021, we prepaid, in full, the remaining outstanding balance of the $1.5 billion senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) that was entered into in April 2018 to partially finance the Ainsworth acquisition. During the three and nine months ended January 31, 2021, we prepaid $200.0 and $700.0 on the Term Loan, respectively. 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 January 31, 2021, 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 January 31, 2021, and April 30, 2020, we had $166.0 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 $8.7 and $18.3 for the three months ended January 31, 2021 and 2020, respectively, and $95.1 and $118.3, for the nine months ended January 31, 2021 and 2020, respectively. This differs from interest expense due to the timing of interest payments, amortization of debt issuance costs and discounts, effect of interest rate contracts, capitalized interest, and payment of other debt fees. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 9 Months Ended |
Jan. 31, 2021 | |
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 January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2021 2020 2021 2020 Service cost $ 0.5 $ 0.4 $ 0.5 $ 0.4 Interest cost 3.3 5.2 0.4 0.5 Expected return on plan assets (4.6) (6.0) — — Amortization of net actuarial loss (gain) 2.6 2.0 — (0.1) Amortization of prior service cost (credit) 0.2 0.2 (0.3) (0.2) Settlement loss (gain) 0.2 — — — Net periodic benefit cost $ 2.2 $ 1.8 $ 0.6 $ 0.6 Nine Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2021 2020 2021 2020 Service cost $ 1.4 $ 1.2 $ 1.4 $ 1.3 Interest cost 11.1 15.7 1.3 1.7 Expected return on plan assets (14.7) (18.1) — — Amortization of net actuarial loss (gain) 8.4 6.0 — (0.2) Amortization of prior service cost (credit) 0.6 0.6 (0.8) (0.8) Settlement loss (gain) 30.8 — — — Net periodic benefit cost $ 37.6 $ 5.4 $ 1.9 $ 2.0 |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jan. 31, 2021 | |
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, wheat, and edible oils. 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 $47.5 of the gain, of which $2.2 and $6.4 was recognized during the three and nine months ended January 31, 2021, respectively, and $2.1 and $6.2 was recognized during the three and nine months ended January 31, 2020, respectively. The remaining gain will be recognized as follows: $2.0 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. January 31, 2021 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 23.7 $ 4.1 $ — $ — Foreign currency exchange contracts 0.1 2.0 — — Total derivative instruments $ 23.8 $ 6.1 $ — $ — 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 January 31, 2021, our cash margin accounts represented collateral received of $5.6, and at April 30, 2020, our cash margin accounts represented collateral pledged of $43.2, 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 $43.5 and $45.1 for the three months ended January 31, 2021 and 2020, respectively, and was $134.7 and $143.6 for the nine months ended January 31, 2021 and 2020, 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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Gains (losses) recognized in other comprehensive income (loss) $ — $ (22.7) $ — $ (119.8) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) (3.5) (0.1) (10.4) (0.3) Change in accumulated other comprehensive income (loss) $ 3.5 $ (22.6) $ 10.4 $ (119.5) Included as a component of accumulated other comprehensive income (loss) at January 31, 2021, and April 30, 2020, were deferred net pre-tax losses of $230.7 and $241.1, respectively, related to the terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) at January 31, 2021, and April 30, 2020, was $53.3 and $55.5, respectively. Approximately $13.7 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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Gains (losses) on commodity contracts $ 38.0 $ (7.3) $ 62.8 $ (4.8) Gains (losses) on foreign currency exchange contracts (2.6) 0.3 (5.3) (0.8) Total gains (losses) recognized in cost of products sold $ 35.4 $ (7.0) $ 57.5 $ (5.6) Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 35.4 $ (7.0) $ 57.5 $ (5.6) Less: Net gains (losses) on derivative positions reclassified to segment operating profit 1.6 (14.7) (24.0) (43.2) Unallocated derivative gains (losses) $ 33.8 $ 7.7 $ 81.5 $ 37.6 As of January 31, 2021, the net cumulative unallocated derivative gains were $48.6, 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. January 31, 2021 April 30, 2020 Commodity contracts $ 373.3 $ 890.1 Foreign currency exchange contracts 87.4 65.6 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 9 Months Ended |
Jan. 31, 2021 | |
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. January 31, 2021 April 30, 2020 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 39.1 $ 39.1 $ 38.6 $ 38.6 Derivative financial instruments – net 17.7 17.7 (16.2) (16.2) Total long-term debt (4,670.7) (5,209.0) (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 January 31, 2021 Marketable securities and other investments: (A) Equity mutual funds $ 9.1 $ — $ — $ 9.1 Municipal obligations — 29.3 — 29.3 Money market funds 0.7 — — 0.7 Derivative financial instruments: (B) Commodity contracts – net 19.6 — — 19.6 Foreign currency exchange contracts – net (0.1) (1.8) — (1.9) Total long-term debt (C) (5,209.0) — — (5,209.0) Total financial instruments measured at fair value $ (5,179.7) $ 27.5 $ — $ (5,152.2) 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 January 31, 2021, our municipal obligations are scheduled to mature as follows: $0.3 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $24.0 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 10: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes, which are classified as Level 1, and the Term Loan, which was classified as Level 2 prior to the prepayment of the remaining balance during the third quarter of 2021. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan was based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. |
Leases
Leases | 9 Months Ended |
Jan. 31, 2021 | |
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. January 31, 2021 April 30, 2020 Operating lease right-of-use assets $ 147.9 $ 148.4 Operating lease liabilities: Current operating lease liabilities $ 39.2 $ 36.5 Noncurrent operating lease liabilities 120.2 120.0 Total operating lease liabilities $ 159.4 $ 156.5 Finance lease right-of-use assets: Machinery and equipment $ 9.9 $ 11.6 Accumulated depreciation (5.3) (5.9) Total property, plant, and equipment $ 4.6 $ 5.7 Finance lease liabilities: Other current liabilities $ 2.0 $ 2.2 Other noncurrent liabilities 2.7 3.5 Total finance lease liabilities $ 4.7 $ 5.7 The following table summarizes the components of lease expense. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Operating lease cost $ 11.6 $ 13.2 $ 34.0 $ 38.5 Finance lease cost: Amortization of right-of-use assets 0.6 0.7 1.8 2.3 Interest on lease liabilities — 0.1 0.1 0.2 Variable lease cost 6.6 5.0 17.7 17.6 Short-term lease cost 9.5 8.5 28.8 25.9 Sublease income (0.9) (1.1) (3.4) (3.4) Net lease cost $ 27.4 $ 26.4 $ 79.0 $ 81.1 The following table sets forth cash flow and noncash information related to leases. Nine Months Ended January 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 32.3 $ 38.8 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 2.0 2.1 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 31.2 56.6 Finance leases 0.8 2.4 The following table summarizes the maturity of our lease liabilities by fiscal year. January 31, 2021 Operating Leases Finance Leases 2021 (remainder of the year) $ 10.5 $ 0.6 2022 42.5 1.8 2023 40.0 1.1 2024 28.6 0.9 2025 20.9 0.4 2026 and beyond 26.3 0.1 Total undiscounted minimum lease payments $ 168.8 $ 4.9 Less: Imputed interest 9.4 0.2 Lease liabilities $ 159.4 $ 4.7 The following table sets forth the weighted average remaining lease term and discount rate. January 31, 2021 April 30, 2020 Weighted average remaining lease term (in years): Operating leases 4.6 4.7 Finance leases 3.1 3.4 Weighted average discount rate: Operating leases 2.6 % 3.1 % Finance leases 2.7 % 2.9 % |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The effective tax rates for the three months ended January 31, 2021 and 2020, were 27.7 and 22.7 percent, respectively, and for the nine months ended January 31, 2021 and 2020, were 25.5 and 24.0 percent, respectively. During the three and nine months ended January 31, 2021 and 2020, the effective tax rates varied from the U.S. statutory income tax rate of 21.0 percent due to the impact of state income taxes. The effective tax rates for the current year were also unfavorably impacted by additional net income tax expense related to the divestitures of the Crisco and Natural Balance businesses during the third quarter of 2021. Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $1.8, primarily as a result of expiring statute of limitations periods. As of January 31, 2021, the undistributed earnings of our foreign subsidiaries remain permanently reinvested. During calendar year 2020, the Coronavirus Aid, Relief, and Economic Security Act and Consolidated Appropriations Act of 2021 were enacted in response to the COVID-19 pandemic and economic downturn. These statutes included rollbacks of certain provisions of the U.S. Tax Cuts and Jobs Act (the “Tax Act”), tax extenders for expiring tax breaks, and other tax provisions. While these specific rollbacks and tax provisions had minimal impact to the Company, any future legislative actions in response to COVID-19 could further modify provisions of the Tax Act, and such changes will need to be analyzed for their respective impact on our income taxes at that time. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Jan. 31, 2021 | |
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 — 10.4 39.0 — 49.4 Current period credit (charge) 29.4 — 9.5 1.5 40.4 Income tax benefit (expense) — (2.2) (11.8) (0.3) (14.3) Balance at January 31, 2021 $ (21.1) $ (177.4) $ (110.0) $ 5.0 $ (303.5) 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 — 0.3 5.2 — 5.5 Current period credit (charge) 2.6 (119.8) — 1.2 (116.0) Income tax benefit (expense) — 27.5 (1.2) (0.3) 26.0 Balance at January 31, 2020 $ (32.9) $ (132.4) $ (106.0) $ 5.0 $ (266.3) (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 was 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 10: Derivative Financial Instruments. (B) The reclassification from accumulated other comprehensive income (loss) to other income (expense) – net is composed of settlement charges and amortization of net losses and prior service costs. The reclassification adjustments in 2021 primarily include the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer our Canadian defined benefit pension plan obligations to an insurance company. For additional information, see Note 9: Pensions and Other Postretirement Benefits. |
Contingencies
Contingencies | 9 Months Ended |
Jan. 31, 2021 | |
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 January 31, 2021. Based on the information known to date, with the exception of the matters 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 (“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”). CERT 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. In addition, CERT 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 trial court granted the Defendants’ motion for summary judgment based on the regulation. CERT submitted its formal notice to appeal on November 20, 2020. We are also defendants in nine pending putative class action lawsuits filed in federal courts in California, Florida, Illinois, Missouri, Texas, Washington, and Washington D.C. The plaintiffs in those actions assert claims arising under various state laws for false advertising, consumer protection, deceptive and unfair trade practices, and similar statutes. Their claims are premised on allegations that we have misrepresented the number of servings that can be made from various canisters of Folgers coffee on the packaging for those products. Similar claims have been asserted against certain retailers of our Folgers coffee products, and indemnity claims have been asserted by such retailers against us. Various other potential plaintiffs have threatened to assert similar claims against us. The outcome and the financial impact of these cases, if any, cannot be predicted at this time. Accordingly, no loss contingency has been recorded for these matters as of January 31, 2021, and the likelihood of loss is not considered probable or estimable. However, if we are required to pay significant damages, our business and financial results could be adversely impacted, and sales of those products could suffer not only in these locations but elsewhere. |
Common Shares
Common Shares | 9 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | The following table sets forth common share information. January 31, 2021 April 30, 2020 Common shares authorized 300.0 300.0 Common shares outstanding 109.8 114.1 Treasury shares 36.7 32.4 Repurchase Program: On October 22, 2020, the Board authorized the repurchase of up to 5.0 million common shares, in addition to the 3.6 million common shares that remained available for repurchase pursuant to prior authorizations of the Board, for a total of 8.6 million common shares available for repurchase. Under our repurchase program, 4.5 million common shares were repurchased for $521.9 between December 2, 2020, and January 29, 2021, of which 0.2 million common shares will be settled during the fourth quarter of 2021. Included in the total repurchases during the third quarter of 2021 were 2.0 million common shares repurchased under a 10b5-1 plan entered into on December 30, 2020. At January 31, 2021, approximately 4.1 million common shares remain available for repurchase pursuant to the Board’s authorizations. The remaining shares repurchased during the nine months ended January 31, 2021 and 2020, consisted of shares repurchased from stock plan recipients in lieu of cash payments. |
Recently Issued Accounting St_2
Recently Issued Accounting Standards (Policies) | 9 Months Ended |
Jan. 31, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | In November 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, to modernize and simplify Management’s Discussion and Analysis and certain financial disclosure requirements. These updates reflect a continued principles-based disclosure approach, similar to the standards released earlier in the year. We will be required to apply these amendments for 2022, with early adoption permitted. We do not anticipate that the adoption of these amendments will have a material impact on our disclosures. In August 2020, 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. |
Divestitures (Tables)
Divestitures (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Net assets and liabilities disposed | The following table summarizes the net assets and liabilities disposed, which were measured at the lower of carrying amount or fair value less costs to sell. January 31, 2021 Crisco Natural Balance Assets disposed: Inventories $ 32.9 $ 18.2 Property, plant, and equipment – net 37.2 — Operating lease right-of-use assets 1.6 0.1 Goodwill 227.6 74.1 Other intangible assets – net 117.5 41.3 Other noncurrent assets 0.2 — Total assets disposed $ 417.0 $ 133.7 Liabilities disposed: Current operating lease liabilities $ 0.6 $ — Noncurrent operating lease liabilities 1.0 — Deferred income taxes — 10.1 Other noncurrent liabilities — 0.3 Total liabilities disposed 1.6 10.4 Net assets disposed $ 415.4 $ 123.3 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
Segment Reporting [Abstract] | |
Income by segment | Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net sales: U.S. Retail Pet Foods $ 768.6 $ 721.9 $ 2,169.9 $ 2,101.7 U.S. Retail Coffee 625.9 558.8 1,791.5 1,567.9 U.S. Retail Consumer Foods 447.6 422.9 1,415.9 1,251.2 International and Away From Home 234.6 268.7 705.2 788.2 Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 Segment profit: U.S. Retail Pet Foods $ 135.1 $ 146.0 $ 385.3 $ 403.1 U.S. Retail Coffee 210.7 189.5 595.4 500.9 U.S. Retail Consumer Foods 110.9 84.2 377.7 256.6 International and Away From Home 24.5 49.0 94.9 131.7 Total segment profit $ 481.2 $ 468.7 $ 1,453.3 $ 1,292.3 Amortization (57.0) (58.8) (176.1) (176.4) Other intangible assets impairment charge — (52.4) — (52.4) Gain on divestitures – net 27.2 — 27.2 — Interest expense – net (43.5) (45.1) (134.7) (143.6) Unallocated derivative gains (losses) 33.8 7.7 81.5 37.6 Other special project costs (A) (1.7) (3.3) (1.7) (9.9) Corporate administrative expenses (77.3) (72.9) (236.1) (214.8) Other income (expense) – net (1.2) (1.4) (34.8) (4.5) Income before income taxes $ 361.5 $ 242.5 $ 978.6 $ 728.3 (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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net sales: United States $ 1,939.5 $ 1,837.6 $ 5,651.4 $ 5,311.1 International: Canada $ 113.9 $ 108.7 $ 345.3 $ 318.9 All other international 23.3 26.0 85.8 79.0 Total international $ 137.2 $ 134.7 $ 431.1 $ 397.9 Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 |
Product category information | The following table presents product category information. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Primary Reportable Segment (A) Coffee $ 693.7 $ 650.7 $ 1,989.0 $ 1,824.5 U.S. Retail Coffee Dog food 296.5 300.8 852.0 899.0 U.S. Retail Pet Foods Cat food 245.2 223.9 697.1 633.6 U.S. Retail Pet Foods Pet snacks 246.6 214.6 676.1 617.8 U.S. Retail Pet Foods Peanut butter 208.5 180.0 601.2 533.3 U.S. Retail Consumer Foods Frozen handheld 100.0 82.6 301.8 247.5 U.S. Retail Consumer Foods Fruit spreads 99.8 88.3 293.3 264.0 U.S. Retail Consumer Foods Shortening and oils 33.9 68.9 193.9 192.2 U.S. Retail Consumer Foods Juices and beverages 33.5 30.4 103.8 94.0 U.S. Retail Consumer Foods Portion control 27.9 42.0 83.0 123.9 Other (B) Baking mixes and ingredients 21.5 19.6 74.7 59.3 Other (B) Other 69.6 70.5 216.6 219.9 Other (B) Total net sales $ 2,076.7 $ 1,972.3 $ 6,082.5 $ 5,709.0 (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) | 9 Months Ended |
Jan. 31, 2021 | |
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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net income $ 261.5 $ 187.4 $ 729.3 $ 553.2 Less: Net income allocated to participating securities 1.1 1.1 3.1 3.2 Net income allocated to common stockholders $ 260.4 $ 186.3 $ 726.2 $ 550.0 Weighted-average common shares outstanding 112.1 113.4 113.1 113.3 Add: Dilutive effect of stock options — — — — Weighted-average common shares outstanding – assuming dilution 112.1 113.4 113.1 113.3 Net income per common share $ 2.32 $ 1.64 $ 6.42 $ 4.85 Net income per common share – assuming dilution $ 2.32 $ 1.64 $ 6.42 $ 4.85 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the Company's goodwill | A summary of changes in goodwill is as follows: U.S. Retail U.S. Retail U.S. Retail International Total Balance at May 1, 2020 $ 2,442.3 $ 2,090.9 $ 1,358.2 $ 413.1 $ 6,304.5 Divestitures (74.1) — (210.7) (16.9) (301.7) Other (A) — — — 14.1 14.1 Balance at January 31, 2021 (B) $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 410.3 $ 6,016.9 (A) The amounts classified as other represent foreign currency exchange adjustments. (B) Included in goodwill as of May 1, 2020, are accumulated goodwill impairment charges of $242.9. No impairment charges have been recognized in 2021. |
Schedule of Finite-Lived Intangible Assets | The following table summarizes our other intangible assets and related accumulated amortization and impairment charges including foreign currency exchange adjustments. January 31, 2021 April 30, 2020 Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Finite-lived intangible assets subject to Customer and contractual relationships $ 4,471.1 $ 1,497.2 $ 2,973.9 $ 4,471.1 $ 1,353.0 $ 3,118.1 Patents and technology 168.5 145.1 23.4 168.5 138.4 30.1 Trademarks 348.0 177.9 170.1 662.0 311.0 351.0 Total intangible assets subject to amortization $ 4,987.6 $ 1,820.2 $ 3,167.4 $ 5,301.6 $ 1,802.4 $ 3,499.2 Indefinite-lived intangible assets not subject to Trademarks $ 3,158.1 $ 226.1 $ 2,932.0 $ 3,158.1 $ 228.3 $ 2,929.8 Total other intangible assets $ 8,145.7 $ 2,046.3 $ 6,099.4 $ 8,459.7 $ 2,030.7 $ 6,429.0 |
Schedule of Indefinite-Lived Intangible Assets | The following table summarizes our other intangible assets and related accumulated amortization and impairment charges including foreign currency exchange adjustments. January 31, 2021 April 30, 2020 Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Acquisition Cost Accumulated Amortization/Impairment Charges/Foreign Currency Exchange Net Finite-lived intangible assets subject to Customer and contractual relationships $ 4,471.1 $ 1,497.2 $ 2,973.9 $ 4,471.1 $ 1,353.0 $ 3,118.1 Patents and technology 168.5 145.1 23.4 168.5 138.4 30.1 Trademarks 348.0 177.9 170.1 662.0 311.0 351.0 Total intangible assets subject to amortization $ 4,987.6 $ 1,820.2 $ 3,167.4 $ 5,301.6 $ 1,802.4 $ 3,499.2 Indefinite-lived intangible assets not subject to Trademarks $ 3,158.1 $ 226.1 $ 2,932.0 $ 3,158.1 $ 228.3 $ 2,929.8 Total other intangible assets $ 8,145.7 $ 2,046.3 $ 6,099.4 $ 8,459.7 $ 2,030.7 $ 6,429.0 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-term debt | The following table summarizes the components of our long-term debt. January 31, 2021 April 30, 2020 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ 750.0 $ 755.4 $ 750.0 $ 761.1 3.00% Senior Notes due March 15, 2022 400.0 399.2 400.0 398.7 3.50% Senior Notes due March 15, 2025 1,000.0 996.6 1,000.0 996.0 3.38% Senior Notes due December 15, 2027 500.0 497.0 500.0 496.7 2.38% Senior Notes due March 15, 2030 500.0 495.6 500.0 495.2 4.25% Senior Notes due March 15, 2035 650.0 644.2 650.0 643.9 4.38% Senior Notes due March 15, 2045 600.0 586.9 600.0 586.5 3.55% Senior Notes due March 15, 2050 300.0 295.8 300.0 295.7 Term Loan Credit Agreement due May 14, 2021 — — 700.0 699.5 Total long-term debt $ 4,700.0 $ 4,670.7 $ 5,400.0 $ 5,373.3 Current portion of long-term debt 750.0 755.4 — — Total long-term debt, less current portion $ 3,950.0 $ 3,915.3 $ 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) | 9 Months Ended |
Jan. 31, 2021 | |
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 January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2021 2020 2021 2020 Service cost $ 0.5 $ 0.4 $ 0.5 $ 0.4 Interest cost 3.3 5.2 0.4 0.5 Expected return on plan assets (4.6) (6.0) — — Amortization of net actuarial loss (gain) 2.6 2.0 — (0.1) Amortization of prior service cost (credit) 0.2 0.2 (0.3) (0.2) Settlement loss (gain) 0.2 — — — Net periodic benefit cost $ 2.2 $ 1.8 $ 0.6 $ 0.6 Nine Months Ended January 31, Defined Benefit Pension Plans Other Postretirement Benefits 2021 2020 2021 2020 Service cost $ 1.4 $ 1.2 $ 1.4 $ 1.3 Interest cost 11.1 15.7 1.3 1.7 Expected return on plan assets (14.7) (18.1) — — Amortization of net actuarial loss (gain) 8.4 6.0 — (0.2) Amortization of prior service cost (credit) 0.6 0.6 (0.8) (0.8) Settlement loss (gain) 30.8 — — — Net periodic benefit cost $ 37.6 $ 5.4 $ 1.9 $ 2.0 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
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. January 31, 2021 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 23.7 $ 4.1 $ — $ — Foreign currency exchange contracts 0.1 2.0 — — Total derivative instruments $ 23.8 $ 6.1 $ — $ — 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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Gains (losses) recognized in other comprehensive income (loss) $ — $ (22.7) $ — $ (119.8) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) (3.5) (0.1) (10.4) (0.3) Change in accumulated other comprehensive income (loss) $ 3.5 $ (22.6) $ 10.4 $ (119.5) |
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 January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Gains (losses) on commodity contracts $ 38.0 $ (7.3) $ 62.8 $ (4.8) Gains (losses) on foreign currency exchange contracts (2.6) 0.3 (5.3) (0.8) Total gains (losses) recognized in cost of products sold $ 35.4 $ (7.0) $ 57.5 $ (5.6) |
Schedule of unallocated derivative gains (losses) | The following table presents the activity in unallocated derivative gains and losses. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Net gains (losses) on mark-to-market valuation of unallocated derivative positions $ 35.4 $ (7.0) $ 57.5 $ (5.6) Less: Net gains (losses) on derivative positions reclassified to segment operating profit 1.6 (14.7) (24.0) (43.2) Unallocated derivative gains (losses) $ 33.8 $ 7.7 $ 81.5 $ 37.6 |
Outstanding derivative contracts | The following table presents the gross notional value of outstanding derivative contracts. January 31, 2021 April 30, 2020 Commodity contracts $ 373.3 $ 890.1 Foreign currency exchange contracts 87.4 65.6 |
Other Financial Instruments a_2
Other Financial Instruments and Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
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. January 31, 2021 April 30, 2020 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 39.1 $ 39.1 $ 38.6 $ 38.6 Derivative financial instruments – net 17.7 17.7 (16.2) (16.2) Total long-term debt (4,670.7) (5,209.0) (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 January 31, 2021 Marketable securities and other investments: (A) Equity mutual funds $ 9.1 $ — $ — $ 9.1 Municipal obligations — 29.3 — 29.3 Money market funds 0.7 — — 0.7 Derivative financial instruments: (B) Commodity contracts – net 19.6 — — 19.6 Foreign currency exchange contracts – net (0.1) (1.8) — (1.9) Total long-term debt (C) (5,209.0) — — (5,209.0) Total financial instruments measured at fair value $ (5,179.7) $ 27.5 $ — $ (5,152.2) 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 January 31, 2021, our municipal obligations are scheduled to mature as follows: $0.3 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $24.0 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 10: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes, which are classified as Level 1, and the Term Loan, which was classified as Level 2 prior to the prepayment of the remaining balance during the third quarter of 2021. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan was based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
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. January 31, 2021 April 30, 2020 Operating lease right-of-use assets $ 147.9 $ 148.4 Operating lease liabilities: Current operating lease liabilities $ 39.2 $ 36.5 Noncurrent operating lease liabilities 120.2 120.0 Total operating lease liabilities $ 159.4 $ 156.5 Finance lease right-of-use assets: Machinery and equipment $ 9.9 $ 11.6 Accumulated depreciation (5.3) (5.9) Total property, plant, and equipment $ 4.6 $ 5.7 Finance lease liabilities: Other current liabilities $ 2.0 $ 2.2 Other noncurrent liabilities 2.7 3.5 Total finance lease liabilities $ 4.7 $ 5.7 |
Components of lease expense | The following table summarizes the components of lease expense. Three Months Ended January 31, Nine Months Ended January 31, 2021 2020 2021 2020 Operating lease cost $ 11.6 $ 13.2 $ 34.0 $ 38.5 Finance lease cost: Amortization of right-of-use assets 0.6 0.7 1.8 2.3 Interest on lease liabilities — 0.1 0.1 0.2 Variable lease cost 6.6 5.0 17.7 17.6 Short-term lease cost 9.5 8.5 28.8 25.9 Sublease income (0.9) (1.1) (3.4) (3.4) Net lease cost $ 27.4 $ 26.4 $ 79.0 $ 81.1 |
Cash flow and noncash information related to leases | The following table sets forth cash flow and noncash information related to leases. Nine Months Ended January 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 32.3 $ 38.8 Operating cash flows from finance leases 0.1 0.2 Financing cash flows from finance leases 2.0 2.1 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 31.2 56.6 Finance leases 0.8 2.4 |
Maturity of operating lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. January 31, 2021 Operating Leases Finance Leases 2021 (remainder of the year) $ 10.5 $ 0.6 2022 42.5 1.8 2023 40.0 1.1 2024 28.6 0.9 2025 20.9 0.4 2026 and beyond 26.3 0.1 Total undiscounted minimum lease payments $ 168.8 $ 4.9 Less: Imputed interest 9.4 0.2 Lease liabilities $ 159.4 $ 4.7 |
Maturity of finance lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. January 31, 2021 Operating Leases Finance Leases 2021 (remainder of the year) $ 10.5 $ 0.6 2022 42.5 1.8 2023 40.0 1.1 2024 28.6 0.9 2025 20.9 0.4 2026 and beyond 26.3 0.1 Total undiscounted minimum lease payments $ 168.8 $ 4.9 Less: Imputed interest 9.4 0.2 Lease liabilities $ 159.4 $ 4.7 |
Weighted average remaining lease tern and discount rate | The following table sets forth the weighted average remaining lease term and discount rate. January 31, 2021 April 30, 2020 Weighted average remaining lease term (in years): Operating leases 4.6 4.7 Finance leases 3.1 3.4 Weighted average discount rate: Operating leases 2.6 % 3.1 % Finance leases 2.7 % 2.9 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
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 — 10.4 39.0 — 49.4 Current period credit (charge) 29.4 — 9.5 1.5 40.4 Income tax benefit (expense) — (2.2) (11.8) (0.3) (14.3) Balance at January 31, 2021 $ (21.1) $ (177.4) $ (110.0) $ 5.0 $ (303.5) 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 — 0.3 5.2 — 5.5 Current period credit (charge) 2.6 (119.8) — 1.2 (116.0) Income tax benefit (expense) — 27.5 (1.2) (0.3) 26.0 Balance at January 31, 2020 $ (32.9) $ (132.4) $ (106.0) $ 5.0 $ (266.3) (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 was 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 10: Derivative Financial Instruments. (B) The reclassification from accumulated other comprehensive income (loss) to other income (expense) – net is composed of settlement charges and amortization of net losses and prior service costs. The reclassification adjustments in 2021 primarily include the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer our Canadian defined benefit pension plan obligations to an insurance company. For additional information, see Note 9: Pensions and Other Postretirement Benefits. |
Common Shares (Tables)
Common Shares (Tables) | 9 Months Ended |
Jan. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Common Shares Information | The following table sets forth common share information. January 31, 2021 April 30, 2020 Common shares authorized 300.0 300.0 Common shares outstanding 109.8 114.1 Treasury shares 36.7 32.4 |
Integration and Restructuring_2
Integration and Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Apr. 30, 2020 | |
Restructuring Plan [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Expected Cost | $ 60 | $ 60 | |||
Restructuring Plan [Member] | Employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 1.7 | 1.7 | |||
Restructuring Reserve | 1.4 | 1.4 | |||
Ainsworth [Member] | |||||
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 | $ 9.9 | |
Ainsworth [Member] | Employee-related costs [Member] | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring Reserve | $ 0.5 |
Divestitures (Details)
Divestitures (Details) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Jan. 31, 2021USD ($) | Jan. 31, 2020USD ($) | Apr. 30, 2020USD ($) | Dec. 01, 2020Position | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures - net | $ 569.3 | $ 0 | ||||
Gain (loss) on divestitures | $ 27.2 | $ 0 | 27.2 | $ 0 | ||
Crisco Business [Member] | ||||||
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 | |||||
Proceeds from divestitures - net | 533.4 | |||||
Gain (loss) on divestitures | 114.9 | 114.9 | ||||
Inventories | 32.9 | 32.9 | ||||
Property, plant, and equipment - net | 37.2 | 37.2 | ||||
Operating lease right-of-use assets | 1.6 | 1.6 | ||||
Goodwill | 227.6 | 227.6 | ||||
Other intangible assets - net | 117.5 | 117.5 | ||||
Other noncurrent assets | 0.2 | 0.2 | ||||
Total assets disposed | 417 | 417 | ||||
Current operating lease liabilities | 0.6 | 0.6 | ||||
Noncurrent operating lease liabilities | 1 | 1 | ||||
Deferred income taxes | 0 | 0 | ||||
Other noncurrent liabilities | 0 | 0 | ||||
Total liabilities disposed | 1.6 | 1.6 | ||||
Net assets disposed | 415.4 | 415.4 | ||||
Crisco Business [Member] | U.S. Retail Consumer Foods [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual net sales | $ 270 | |||||
Natural Balance Business [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures - net | 35.9 | |||||
Gain (loss) on divestitures | (87.7) | (87.7) | ||||
Inventories | 18.2 | 18.2 | ||||
Property, plant, and equipment - net | 0 | 0 | ||||
Operating lease right-of-use assets | 0.1 | 0.1 | ||||
Goodwill | 74.1 | 74.1 | ||||
Other intangible assets - net | 41.3 | 41.3 | ||||
Other noncurrent assets | 0 | 0 | ||||
Total assets disposed | 133.7 | 133.7 | ||||
Current operating lease liabilities | 0 | 0 | ||||
Noncurrent operating lease liabilities | 0 | 0 | ||||
Deferred income taxes | 10.1 | 10.1 | ||||
Other noncurrent liabilities | 0.3 | 0.3 | ||||
Total liabilities disposed | 10.4 | 10.4 | ||||
Net assets disposed | $ 123.3 | $ 123.3 | ||||
Natural Balance Business [Member] | U.S. Retail Pet Foods [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual net sales | $ 220 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | ||
Net sales: | |||||
Net sales | $ 2,076.7 | $ 1,972.3 | $ 6,082.5 | $ 5,709 | |
Segment profit: | |||||
Segment profit | 481.2 | 468.7 | 1,453.3 | 1,292.3 | |
Amortization | (57) | (58.8) | (176.1) | (176.4) | |
Other intangible assets impairment charge | 0 | (52.4) | 0 | (52.4) | |
Gain (loss) on divestitures - net | 27.2 | 0 | 27.2 | 0 | |
Interest expense – net | (43.5) | (45.1) | (134.7) | (143.6) | |
Unallocated derivative gains (losses) | 33.8 | 7.7 | 81.5 | 37.6 | |
Other special project costs (A) | [1] | (1.7) | (3.3) | (1.7) | (9.9) |
Corporate administrative expenses | (77.3) | (72.9) | (236.1) | (214.8) | |
Other income (expense) – net | (1.2) | (1.4) | (34.8) | (4.5) | |
Income Before Income Taxes | 361.5 | 242.5 | 978.6 | 728.3 | |
U.S. Retail Pet Foods [Member] | |||||
Net sales: | |||||
Net sales | 768.6 | 721.9 | 2,169.9 | 2,101.7 | |
Segment profit: | |||||
Segment profit | 135.1 | 146 | 385.3 | 403.1 | |
U.S. Retail Coffee [Member] | |||||
Net sales: | |||||
Net sales | 625.9 | 558.8 | 1,791.5 | 1,567.9 | |
Segment profit: | |||||
Segment profit | 210.7 | 189.5 | 595.4 | 500.9 | |
U.S. Retail Consumer Foods [Member] | |||||
Net sales: | |||||
Net sales | 447.6 | 422.9 | 1,415.9 | 1,251.2 | |
Segment profit: | |||||
Segment profit | 110.9 | 84.2 | 377.7 | 256.6 | |
International and Away From Home | |||||
Net sales: | |||||
Net sales | 234.6 | 268.7 | 705.2 | 788.2 | |
Segment profit: | |||||
Segment profit | $ 24.5 | $ 49 | $ 94.9 | $ 131.7 | |
[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 | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Geographical information [Line Items] | ||||
Net sales | $ 2,076.7 | $ 1,972.3 | $ 6,082.5 | $ 5,709 |
United States | ||||
Geographical information [Line Items] | ||||
Net sales | 1,939.5 | 1,837.6 | 5,651.4 | 5,311.1 |
Total international | ||||
Geographical information [Line Items] | ||||
Net sales | 137.2 | 134.7 | 431.1 | 397.9 |
Canada | ||||
Geographical information [Line Items] | ||||
Net sales | 113.9 | 108.7 | 345.3 | 318.9 |
All other international | ||||
Geographical information [Line Items] | ||||
Net sales | $ 23.3 | $ 26 | $ 85.8 | $ 79 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | ||
Product category information [Line Items] | |||||
Net sales | $ 2,076.7 | $ 1,972.3 | $ 6,082.5 | $ 5,709 | |
Percent of product sales attributable to primary reportable segment | 75.00% | ||||
U.S. Retail Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 625.9 | 558.8 | $ 1,791.5 | 1,567.9 | |
U.S. Retail Coffee [Member] | Coffee [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 693.7 | 650.7 | 1,989 | 1,824.5 |
U.S. Retail Pet Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 768.6 | 721.9 | 2,169.9 | 2,101.7 | |
U.S. Retail Pet Foods [Member] | Dog food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 296.5 | 300.8 | 852 | 899 |
U.S. Retail Pet Foods [Member] | Cat food [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 245.2 | 223.9 | 697.1 | 633.6 |
U.S. Retail Pet Foods [Member] | Pet snacks [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 246.6 | 214.6 | 676.1 | 617.8 |
U.S. Retail Consumer Foods [Member] | |||||
Product category information [Line Items] | |||||
Net sales | 447.6 | 422.9 | 1,415.9 | 1,251.2 | |
U.S. Retail Consumer Foods [Member] | Peanut butter [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 208.5 | 180 | 601.2 | 533.3 |
U.S. Retail Consumer Foods [Member] | Frozen handheld [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 100 | 82.6 | 301.8 | 247.5 |
U.S. Retail Consumer Foods [Member] | Fruit spreads [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 99.8 | 88.3 | 293.3 | 264 |
U.S. Retail Consumer Foods [Member] | Shortening and oils [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 33.9 | 68.9 | 193.9 | 192.2 |
U.S. Retail Consumer Foods [Member] | Juices and beverages [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1] | 33.5 | 30.4 | 103.8 | 94 |
Other | |||||
Product category information [Line Items] | |||||
Net sales | 234.6 | 268.7 | 705.2 | 788.2 | |
Other | Portion control [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | 27.9 | 42 | 83 | 123.9 |
Other | Baking mixes and ingredients [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | 21.5 | 19.6 | 74.7 | 59.3 |
Other | Other [Member] | |||||
Product category information [Line Items] | |||||
Net sales | [1],[2] | $ 69.6 | $ 70.5 | $ 216.6 | $ 219.9 |
[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) | 9 Months Ended |
Jan. 31, 2021SegmentIndustry | |
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 | 9 Months Ended | ||||||
Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2020 | Oct. 31, 2019 | Jul. 31, 2019 | Jan. 31, 2021 | Jan. 31, 2020 | |
Earnings Per Share [Abstract] | ||||||||
Net income | $ 261.5 | $ 230.8 | $ 237 | $ 187.4 | $ 211.2 | $ 154.6 | $ 729.3 | $ 553.2 |
Less: Net income allocated to participating securities | 1.1 | 1.1 | 3.1 | 3.2 | ||||
Net income allocated to common stockholders | $ 260.4 | $ 186.3 | $ 726.2 | $ 550 | ||||
Weighted-average common shares outstanding (in shares) | 112.1 | 113.4 | 113.1 | 113.3 | ||||
Add: Dilutive effect of stock options (in shares) | 0 | 0 | 0 | 0 | ||||
Weighted-average common shares outstanding - assuming dilution (in shares) | 112.1 | 113.4 | 113.1 | 113.3 | ||||
Net income per common share (in dollars per share) | $ 2.32 | $ 1.64 | $ 6.42 | $ 4.85 | ||||
Net Income - Assuming Dilution (in dollars per share) | $ 2.32 | $ 1.64 | $ 6.42 | $ 4.85 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jan. 31, 2021 | Apr. 30, 2020 | ||
Summary of changes in the company's goodwill | |||
Goodwill, Beginning Balance | $ 6,304.5 | ||
Divestitures | (301.7) | ||
Other | [1] | 14.1 | |
Goodwill, Ending Balance | [2] | 6,016.9 | |
Goodwill, Impaired, Accumulated Impairment Loss | $ 242.9 | ||
Impairment Charge | 0 | ||
U.S. Retail Pet Foods [Member] | |||
Summary of changes in the company's goodwill | |||
Goodwill, Beginning Balance | 2,442.3 | ||
Divestitures | (74.1) | ||
Other | [1] | 0 | |
Goodwill, Ending Balance | 2,368.2 | ||
U.S. Retail Coffee [Member] | |||
Summary of changes in the company's goodwill | |||
Goodwill, Beginning Balance | 2,090.9 | ||
Divestitures | 0 | ||
Other | [1] | 0 | |
Goodwill, Ending Balance | 2,090.9 | ||
U.S. Retail Consumer Foods [Member] | |||
Summary of changes in the company's goodwill | |||
Goodwill, Beginning Balance | 1,358.2 | ||
Divestitures | (210.7) | ||
Other | [1] | 0 | |
Goodwill, Ending Balance | 1,147.5 | ||
International and Away From Home [Member] | |||
Summary of changes in the company's goodwill | |||
Goodwill, Beginning Balance | 413.1 | ||
Divestitures | (16.9) | ||
Other | [1] | 14.1 | |
Goodwill, Ending Balance | $ 410.3 | ||
[1] | The amounts classified as other represent foreign currency exchange adjustments. | ||
[2] | Included in goodwill as of May 1, 2020, are accumulated goodwill impairment charges of $242.9. No impairment charges have been recognized in 2021. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 |
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, acquisition cost | $ 4,987.6 | $ 5,301.6 |
Finite-lived intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 1,820.2 | 1,802.4 |
Finite-lived intangible assets, net | 3,167.4 | 3,499.2 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total other intangible assets, acquisition cost | 8,145.7 | 8,459.7 |
Total other intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 2,046.3 | 2,030.7 |
Total other intangible assets, net | 6,099.4 | 6,429 |
Trademarks | ||
Indefinite-lived intangible assets not subject to amortization: | ||
Indefinite-lived intangible assets, acquisition cost | 3,158.1 | 3,158.1 |
Indefinite-lived intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 226.1 | 228.3 |
Indefinite-lived intangible assets, net | 2,932 | 2,929.8 |
Customer and contractual relationships | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, acquisition cost | 4,471.1 | 4,471.1 |
Finite-lived intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 1,497.2 | 1,353 |
Finite-lived intangible assets, net | 2,973.9 | 3,118.1 |
Patents and technology | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, acquisition cost | 168.5 | 168.5 |
Finite-lived intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 145.1 | 138.4 |
Finite-lived intangible assets, net | 23.4 | 30.1 |
Trademarks | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, acquisition cost | 348 | 662 |
Finite-lived intangible assets, accumulated amortization/impairment charges/foreign currency exchange | 177.9 | 311 |
Finite-lived intangible assets, net | $ 170.1 | $ 351 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Apr. 30, 2020 | |||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 6,016.9 | [1] | $ 6,016.9 | [1] | $ 6,304.5 | ||
Other intangible assets impairment charge | $ 0 | $ 52.4 | $ 0 | $ 52.4 | |||
Away From Home | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Percentage of Segment Goodwill | 65.00% | 65.00% | |||||
U.S. Retail Pet Foods [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 2,368.2 | $ 2,368.2 | $ 2,442.3 | ||||
Indefinite-lived intangible assets, net | $ 1,400 | $ 1,400 | |||||
U.S. Retail Pet Foods [Member] | Trademarks | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Other intangible assets impairment charge | $ 52.4 | ||||||
[1] | Included in goodwill as of May 1, 2020, are accumulated goodwill impairment charges of $242.9. No impairment charges have been recognized in 2021. |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Details) - USD ($) | Jan. 31, 2021 | Apr. 30, 2020 | May 14, 2018 | |
Long-term debt | ||||
Debt instrument face amount | $ 4,700,000,000 | $ 5,400,000,000 | ||
Total long-term debt | [1] | 4,670,700,000 | 5,373,300,000 | |
Current portion of long-term debt | [1] | 755,400,000 | 0 | |
Long-term debt, less current portion | [1] | $ 3,915,300,000 | $ 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] | $ 755,400,000 | $ 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] | $ 399,200,000 | $ 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] | $ 996,600,000 | $ 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] | $ 497,000,000 | $ 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] | $ 495,600,000 | $ 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] | $ 644,200,000 | $ 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] | $ 586,900,000 | $ 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] | 295,800,000 | 295,700,000 | |
Term Loan Credit Agreement due May 14, 2021 | ||||
Long-term debt | ||||
Debt instrument face amount | 0 | 700,000,000 | $ 1,500,000,000 | |
Term loan credit agreement carrying value | [1] | 0 | 699,500,000 | |
Current portion of long term debt | ||||
Long-term debt | ||||
Debt instrument face amount | 750,000,000 | 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 | 9 Months Ended | ||||
Jan. 31, 2021USD ($)Bank | Jan. 31, 2020USD ($) | Jan. 31, 2021USD ($)Bank | Jan. 31, 2020USD ($) | Apr. 30, 2020USD ($) | May 14, 2018USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 4,700,000,000 | $ 4,700,000,000 | $ 5,400,000,000 | |||
Repayments of long-term debt | 700,000,000 | $ 400,000,000 | ||||
Short-term borrowings | 166,000,000 | 166,000,000 | 248,000,000 | |||
Interest paid | 8,700,000 | $ 18,300,000 | 95,100,000 | $ 118,300,000 | ||
Term Loan Credit Agreement due May 14, 2021 | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | 0 | 0 | 700,000,000 | $ 1,500,000,000 | ||
Repayments of long-term debt | 200,000,000 | 700,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Revolving credit facility maximum borrowing capacity | $ 1,800,000,000 | $ 1,800,000,000 | ||||
Number of banks | Bank | 11 | 11 | ||||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | 0 | |||
Commercial Paper [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Commercial paper, borrowing capacity | 1,800,000,000 | 1,800,000,000 | ||||
Short-term borrowings | $ 166,000,000 | $ 166,000,000 | $ 248,000,000 | |||
Commercial paper weighted-average interest rate | 0.17% | 0.17% | 0.40% |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2021 | Oct. 31, 2020 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Components of net periodic benefit cost | |||||
Settlement loss (gain) | $ 30.8 | $ 0 | |||
Defined Benefit Pension Plans | |||||
Components of net periodic benefit cost | |||||
Service cost | $ 0.5 | $ 0.4 | 1.4 | 1.2 | |
Interest cost | 3.3 | 5.2 | 11.1 | 15.7 | |
Expected return on plan assets | (4.6) | (6) | (14.7) | (18.1) | |
Amortization of net actuarial loss (gain) | 2.6 | 2 | 8.4 | 6 | |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.6 | 0.6 | |
Settlement loss (gain) | 0.2 | 0 | 30.8 | 0 | |
Net periodic benefit cost | 2.2 | 1.8 | 37.6 | 5.4 | |
Defined Benefit Pension Plans | Canada | |||||
Components of net periodic benefit cost | |||||
Settlement loss (gain) | 0 | $ 27.9 | |||
Decrease in pension obligations | $ (82.6) | ||||
Other Postretirement Benefits | |||||
Components of net periodic benefit cost | |||||
Service cost | 0.5 | 0.4 | 1.4 | 1.3 | |
Interest cost | 0.4 | 0.5 | 1.3 | 1.7 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of net actuarial loss (gain) | 0 | (0.1) | 0 | (0.2) | |
Amortization of prior service cost (credit) | (0.3) | (0.2) | (0.8) | (0.8) | |
Settlement loss (gain) | 0 | 0 | 0 | 0 | |
Net periodic benefit cost | $ 0.6 | $ 0.6 | $ 1.9 | $ 2 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 23.8 | $ 17.1 |
Other Current Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 23.7 | 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 | 0.1 | 2.4 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 6.1 | 33.3 |
Other Current Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 4.1 | 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 | 2 | 0.1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Assets [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 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 | 0 |
Other Noncurrent Liabilities [Member] | Commodity contracts | Not designated as hedging instruments [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts | 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 | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in other comprehensive income (loss) | $ 0 | $ (22.7) | $ 0 | $ (119.8) |
Change in accumulated other comprehensive income (loss) | 3.5 | (22.6) | 10.4 | (119.5) |
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) | $ (10.4) | $ (0.3) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
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 | $ 35.4 | $ (7) | $ 57.5 | $ (5.6) |
Commodity contracts | ||||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||||
Total gains (losses) recognized in cost of products sold | 38 | (7.3) | 62.8 | (4.8) |
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 | $ (2.6) | $ 0.3 | $ (5.3) | $ (0.8) |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Price Risk Derivatives [Abstract] | ||||
Net gains (losses) on mark-to-market valuation of unallocated derivative positions | $ 35.4 | $ (7) | $ 57.5 | $ (5.6) |
Less: Net gains (losses) on derivative positions reclassified to segment operating profit | 1.6 | (14.7) | (24) | (43.2) |
Unallocated derivative gains (losses) | $ 33.8 | $ 7.7 | $ 81.5 | $ 37.6 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 |
Commodity contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross notional amount | $ 373.3 | $ 890.1 |
Foreign currency exchange contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gross notional amount | $ 87.4 | $ 65.6 |
Derivative Financial Instrume_8
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | Apr. 30, 2020 | Apr. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Collateral received | $ 5.6 | $ 5.6 | ||||
Collateral pledged | $ 43.2 | |||||
Interest expense – net | (43.5) | $ (45.1) | (134.7) | $ (143.6) | ||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | $ 48.6 | (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 | (230.7) | $ (230.7) | (241.1) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 53.3 | 53.3 | $ 55.5 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (13.7) | |||||
Interest rate swap | Fair Value Hedging [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | $ 2.2 | $ 2.1 | 6.4 | $ 6.2 | ||
Total Through Q3 2021 | Fair Value Hedging [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 47.5 | |||||
2021 [Member] | Fair Value Hedging [Member] | ||||||
Derivative Financial Instruments (Textual) [Abstract] | ||||||
Amortization of deferred gain on early termination agreement | 2 | |||||
2022 [Member] | Fair Value Hedging [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 | Jan. 31, 2021 | Apr. 30, 2020 | |
Carrying amount and fair value of financial instruments | |||
Total long-term debt | [1] | $ (4,670.7) | $ (5,373.3) |
Carrying Amount [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 39.1 | 38.6 | |
Derivative financial instruments – net | 17.7 | (16.2) | |
Total long-term debt | (4,670.7) | (5,373.3) | |
Fair Value [Member] | |||
Carrying amount and fair value of financial instruments | |||
Marketable securities and other investments | 39.1 | 38.6 | |
Derivative financial instruments – net | 17.7 | (16.2) | |
Total long-term debt | $ (5,209) | $ (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 | Jan. 31, 2021 | Apr. 30, 2020 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | $ (5,209) | $ (5,740.6) |
Total financial instruments measured at fair value | (5,152.2) | (5,718.2) | |
Equity mutual funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.1 | 8.7 |
Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 29.3 | 24.2 |
Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.7 | 5.7 |
Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 19.6 | (18.5) |
Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (1.9) | 2.3 |
Fair Value, Inputs, Level 1 [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (5,209) | (5,032) |
Total financial instruments measured at fair value | (5,179.7) | (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] | 9.1 | 8.7 |
Fair Value, Inputs, Level 1 [Member] | Municipal obligations | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Money market funds | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0.7 | 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] | 19.6 | (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] | 0 | (708.6) |
Total financial instruments measured at fair value | 27.5 | (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] | 29.3 | 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 | (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] | (1.8) | 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, which are classified as Level 1, and the Term Loan, which was classified as Level 2 prior to the prepayment of the remaining balance during the third quarter of 2021. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan was based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements. | ||
[2] | Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of January 31, 2021, our municipal obligations are scheduled to mature as follows: $0.3 in 2021, $1.5 in 2022, $3.5 in 2024, and the remaining $24.0 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 10: Derivative Financial Instruments. |
Other Financial Instruments a_5
Other Financial Instruments and Fair Value Measurements (Details Textual) $ in Millions | Jan. 31, 2021USD ($) |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2021 | $ 0.3 |
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 | $ 24 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 |
Operating lease right-of-use assets | $ 147.9 | $ 148.4 |
Current operating lease liabilities | 39.2 | 36.5 |
Noncurrent operating lease liabilities | 120.2 | 120 |
Total operating lease liabilities | 159.4 | 156.5 |
Total finance lease liabilities | 4.7 | 5.7 |
Machinery and Equipment [Member] | ||
Machinery and equipment | 9.9 | 11.6 |
Accumulated Depreciation [Member] | ||
Accumulated depreciation | (5.3) | (5.9) |
Property, Plant and Equipment [Member] | ||
Total property, plant, and equipment | 4.6 | 5.7 |
Other Current Liabilities [Member] | ||
Current finance lease liabilities | 2 | 2.2 |
Other Noncurrent Liabilities [Member] | ||
Noncurrent finance lease liabilities | $ 2.7 | $ 3.5 |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||||
Operating lease cost | $ 11.6 | $ 13.2 | $ 34 | $ 38.5 |
Finance lease cost: | ||||
Amortization of right-of-use assets | 0.6 | 0.7 | 1.8 | 2.3 |
Interest on lease liabilities | 0 | 0.1 | 0.1 | 0.2 |
Variable lease cost | 6.6 | 5 | 17.7 | 17.6 |
Short-term lease cost | 9.5 | 8.5 | 28.8 | 25.9 |
Sublease income | (0.9) | (1.1) | (3.4) | (3.4) |
Net lease cost | $ 27.4 | $ 26.4 | $ 79 | $ 81.1 |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2021 | Jan. 31, 2020 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 32.3 | $ 38.8 |
Operating cash flows from finance leases | 0.1 | 0.2 |
Financing cash flows from finance leases | 2 | 2.1 |
Right-of-use asset obtained in exchange for operating lease liabilities | 31.2 | 56.6 |
Right-of-use asset obtained in exchange for finance lease liabilities | $ 0.8 | $ 2.4 |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Millions | Jan. 31, 2021 | Apr. 30, 2020 |
Operating Lease Liabilities, Payments Due [Abstract] | ||
2021 (remainder of the year) | $ 10.5 | |
2022 | 42.5 | |
2023 | 40 | |
2024 | 28.6 | |
2025 | 20.9 | |
2026 and beyond | 26.3 | |
Total undiscounted minimum lease payments | 168.8 | |
Less: Imputed interest | 9.4 | |
Total operating lease liabilities | 159.4 | $ 156.5 |
Finance Lease Liabilities, Payments, Due [Abstract] | ||
2021 (remainder of the year) | 0.6 | |
2022 | 1.8 | |
2023 | 1.1 | |
2024 | 0.9 | |
2025 | 0.4 | |
2026 and beyond | 0.1 | |
Total undiscounted minimum lease payments | 4.9 | |
Less: Imputed interest | 0.2 | |
Total finance lease liabilities | $ 4.7 | $ 5.7 |
Leases (Details 4)
Leases (Details 4) | Jan. 31, 2021 | Apr. 30, 2020 |
Leases [Abstract] | ||
Operating leases, Weighted average remaining lease term | 4 years 7 months 6 days | 4 years 8 months 12 days |
Finance leases, Weighted average remaining lease term | 3 years 1 month 6 days | 3 years 4 months 24 days |
Operating leases, Weighted average discount rate | 2.60% | 3.10% |
Finance leases, Weighted average discount rate | 2.70% | 2.90% |
Income Taxes (Details Textual)
Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | Jan. 31, 2021 | Jan. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||||
Effective Income Tax Rate Reconciliation, Percent | 27.70% | 22.70% | 25.50% | 24.00% |
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 | $ 1.8 | $ 1.8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Jan. 31, 2021 | Jan. 31, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ (379) | ||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (303.5) | ||
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) | 29.4 | 2.6 | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (21.1) | (32.9) | |
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] | 10.4 | 0.3 |
Current period credit (charge) | [1] | 0 | (119.8) |
Income tax benefit (expense) | [1] | (2.2) | 27.5 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [1] | (177.4) | (132.4) |
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] | 39 | 5.2 |
Current period credit (charge) | [2] | 9.5 | 0 |
Income tax benefit (expense) | [2] | (11.8) | (1.2) |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [2] | (110) | (106) |
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) | 1.5 | 1.2 | |
Income tax benefit (expense) | (0.3) | (0.3) | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 5 | 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 | 49.4 | 5.5 | |
Current period credit (charge) | 40.4 | (116) | |
Income tax benefit (expense) | (14.3) | 26 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ (303.5) | $ (266.3) | |
[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 was 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 10: Derivative Financial Instruments. | ||
[2] | The reclassification from accumulated other comprehensive income (loss) to other income (expense) – net is composed of settlement charges and amortization of net losses and prior service costs. The reclassification adjustments in 2021 primarily include the impact of the nonrecurring settlement charge related to the purchase of a group annuity contract to transfer our Canadian defined benefit pension plan obligations to an insurance company. For additional information, see Note 9: Pensions and Other Postretirement Benefits |
Common Shares (Details)
Common Shares (Details) - USD ($) $ in Millions | 2 Months Ended | 3 Months Ended | 9 Months Ended | |||||
Jan. 29, 2021 | Jan. 31, 2021 | Jan. 31, 2021 | Jan. 31, 2020 | Oct. 31, 2020 | Oct. 22, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | |
Common Shares Information | ||||||||
Common shares authorized | 300,000,000 | 300,000,000 | 300,000,000 | |||||
Common shares outstanding | 109,800,000 | 109,800,000 | 114,100,000 | |||||
Treasury shares | 36,700,000 | 36,700,000 | 32,400,000 | |||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | 4,500,000 | |||||||
Common Shares (Additional Textual) [Abstract] | ||||||||
Shares authorized to be repurchased under stock repurchase program | 5,000,000 | |||||||
Shares remaining for repurchase | 4,100,000 | 4,100,000 | 8,600,000 | 3,600,000 | ||||
Payments to repurchase shares | $ 521.9 | $ 504.1 | $ 4.3 | |||||
Shares repurchased, but not settled | 200,000 | |||||||
10b5-1 Stock Repurchase plan | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Shares repurchased | 2,000,000 |