Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Apr. 30, 2022 | Jun. 09, 2022 | Oct. 31, 2021 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Apr. 30, 2022 | ||
Document Transition Report | false | ||
Entity File Number | 001-5111 | ||
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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 12,691,431,980 | ||
Entity Common Stock, Shares Outstanding | 106,457,951 | ||
Entity Central Index Key | 0000091419 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --04-30 | ||
Document Fiscal Period Focus | FY |
Audit Information
Audit Information | 12 Months Ended |
Apr. 30, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Akron, Ohio |
Auditor Firm ID | 42 |
Statements of Consolidated Inco
Statements of Consolidated Income - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Income Statement [Abstract] | ||||
Net sales | $ 7,998.9 | $ 8,002.7 | $ 7,801 | |
Cost of products sold | [1] | 5,298.2 | 4,864 | 4,799 |
Gross Profit | 2,700.7 | 3,138.7 | 3,002 | |
Selling, distribution, and administrative expenses | 1,360.3 | 1,523.1 | 1,474.3 | |
Amortization | 223.6 | 233 | 236.3 | |
Other intangible assets impairment charges | 150.4 | 3.8 | 52.4 | |
Other special project costs | [1],[2] | 8 | 20.7 | 16.5 |
Other operating expense (income) – net | (65.4) | (28.7) | (0.6) | |
Operating Income | 1,023.8 | 1,386.8 | 1,223.1 | |
Interest expense – net | (160.9) | (177.1) | (189.2) | |
Other income (expense) – net | (19.1) | (37.8) | (7.2) | |
Income Before Income Taxes | 843.8 | 1,171.9 | 1,026.7 | |
Income tax expense | 212.1 | 295.6 | 247.2 | |
Net Income | $ 631.7 | $ 876.3 | $ 779.5 | |
Earnings per common share: | ||||
Net Income (in dollars per share) | $ 5.84 | $ 7.79 | $ 6.84 | |
Net Income - Assuming Dilution (in dollars per share) | $ 5.83 | $ 7.79 | $ 6.84 | |
[1] | Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs. For more information, see Note 2: Integration and Restructuring Costs and Note 4: Reportable Segments. | |||
[2] | Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs in the Statements of Consolidated Income. For more information, see Note 2: Integration and Restructuring Costs. |
Statements of Consolidated Comp
Statements of Consolidated Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 631.7 | $ 876.3 | $ 779.5 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (12.1) | 41.5 | (15) |
Cash flow hedging derivative activity, net of tax | 10.9 | 10.8 | (145.2) |
Pension and other postretirement benefit plans activity, net of tax | 43.1 | 49.4 | (36.7) |
Available-for-sale securities activity, net of tax | (1.9) | (0.1) | (0.3) |
Total Other Comprehensive Income (Loss) | 40 | 101.6 | (197.2) |
Comprehensive Income | $ 671.7 | $ 977.9 | $ 582.3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 | ||
Current Assets | ||||
Cash and cash equivalents | $ 169.9 | $ 334.3 | ||
Trade receivables – net | 524.7 | 533.7 | ||
Inventories: | ||||
Finished products | 704.4 | 607.6 | ||
Raw materials | 384.9 | 352.3 | ||
Total Inventory | 1,089.3 | 959.9 | ||
Other current assets | 226.2 | 113.8 | ||
Total Current Assets | 2,010.1 | 1,941.7 | ||
Property, Plant, and Equipment | ||||
Land and land improvements | 120.4 | 124.3 | ||
Buildings and fixtures | 959.7 | 967 | ||
Machinery and equipment | 2,503.3 | 2,469.7 | ||
Construction in progress | 527.8 | 282.3 | ||
Gross Property, Plant, and Equipment | 4,111.2 | 3,843.3 | ||
Accumulated depreciation | (1,979.5) | (1,841.8) | ||
Total Property, Plant, and Equipment | 2,131.7 | 2,001.5 | ||
Other Noncurrent Assets | ||||
Operating lease right-of-use assets | 106.5 | 142 | ||
Goodwill | 6,015.8 | [1] | 6,023.6 | |
Other intangible assets – net | 5,652.2 | 6,041.2 | ||
Other noncurrent assets | 138.7 | 134.2 | ||
Total Other Noncurrent Assets | 11,913.2 | 12,341 | ||
Total Assets | 16,055 | 16,284.2 | ||
Current Liabilities | ||||
Accounts payable | 1,193.3 | 1,034.1 | ||
Accrued compensation | 91.8 | 139.9 | ||
Accrued trade marketing and merchandising | 193.8 | 200.6 | ||
Dividends payable | 105.3 | 97.4 | ||
Current portion of long-term debt | [2] | 0 | 1,152.9 | |
Short-term borrowings | 180 | 82 | ||
Current operating lease liabilities | 40.1 | 41.1 | ||
Other current liabilities | 148.5 | 119.5 | ||
Total Current Liabilities | 1,952.8 | 2,867.5 | ||
Noncurrent Liabilities | ||||
Long-term debt, less current portion | [2] | 4,310.6 | 3,516.8 | |
Defined benefit pensions | 114.9 | 151.9 | ||
Other postretirement benefits | 54.2 | 64.3 | ||
Deferred income taxes | 1,325.8 | 1,349.3 | ||
Noncurrent operating lease liabilities | 76.2 | 112.8 | ||
Other noncurrent liabilities | 80.4 | 96.8 | ||
Total Noncurrent Liabilities | 5,962.1 | 5,291.9 | ||
Total Liabilities | 7,914.9 | 8,159.4 | ||
Shareholders’ Equity | ||||
Serial preferred shares – no par value: Authorized – 6,000,000 shares; outstanding – none | 0 | 0 | ||
Common shares – no par value: Authorized – 300,000,000 shares; outstanding – 106,458,317 at April 30, 2022, and 108,339,057 at April 30, 2021 (net of 40,039,413 and 38,158,673 treasury shares, respectively), at stated value | 26.6 | 27.1 | ||
Additional capital | 5,457.9 | 5,527.6 | ||
Retained income | 2,893 | 2,847.5 | ||
Accumulated other comprehensive income (loss) | (237.4) | (277.4) | ||
Total Shareholders’ Equity | 8,140.1 | 8,124.8 | ||
Total Liabilities and Shareholders’ Equity | $ 16,055 | $ 16,284.2 | ||
[1] | Included in goodwill as of April 30, 2022, are accumulated goodwill impairment charges of $242.9. | |||
[2] | Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Apr. 30, 2022 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Serial preferred shares, no par value, shares authorized (in shares) | 6,000,000 | 6,000,000 |
Serial preferred shares outstanding | 0 | 0 |
Common shares authorized | 300,000,000 | 300,000,000 |
Common shares outstanding | 106,458,317 | 108,339,057 |
Treasury shares | 40,039,413 | 38,158,673 |
Statements of Consolidated Cash
Statements of Consolidated Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Operating Activities | |||
Net income | $ 631.7 | $ 876.3 | $ 779.5 |
Adjustments to reconcile net income to net cash provided by (used for) operations: | |||
Depreciation | 235.5 | 219.5 | 210.2 |
Amortization | 223.6 | 233 | 236.3 |
Other intangible assets impairment charges | 150.4 | 3.8 | 52.4 |
Pension settlement loss (gain) | 10.8 | 35.5 | 0.1 |
Share-based compensation expense | 22.3 | 28.7 | 26.8 |
Gain on divestitures – net | (9.6) | (25.3) | 0 |
Deferred income tax expense (benefit) | (38.1) | (13.9) | 7.6 |
Loss on disposal of assets – net | 4.7 | 7.1 | 13 |
Other noncash adjustments – net | 14.9 | 11.8 | 8.1 |
Settlement of interest rate contracts | 0 | 0 | (239.8) |
Defined benefit pension contributions | (5.3) | (13.1) | (5.1) |
Make-whole payments included in financing activities | 7 | 0 | 0 |
Changes in assets and liabilities, net of effect from acquisition and divestitures: | |||
Trade receivables | 7.5 | 22 | (49.1) |
Inventories | (178.7) | (110.4) | 12.6 |
Other current assets | (52.8) | (34) | (15.7) |
Accounts payable | 149.5 | 260.9 | 181.6 |
Accrued liabilities | (33) | 56 | 48 |
Income and other taxes | 12.8 | (17.6) | 6.5 |
Other – net | (16.9) | 24.7 | (18.2) |
Net Cash Provided by (Used for) Operating Activities | 1,136.3 | 1,565 | 1,254.8 |
Investing Activities | |||
Additions to property, plant, and equipment | (417.5) | (306.7) | (269.3) |
Proceeds from divestitures – net | 130 | 564 | 0 |
Other – net | (68) | 53.8 | (2.2) |
Net Cash Provided by (Used for) Investing Activities | (355.5) | 311.1 | (271.5) |
Financing Activities | |||
Short-term borrowings (repayments) – net | 97.6 | (166.4) | (185.8) |
Proceeds from long-term debt | 797.6 | 0 | 798.2 |
Repayments of long-term debt, including make-whole payments | (1,157) | (700) | (900) |
Capitalized debt issuance costs | (10.4) | 0 | 0 |
Quarterly dividends paid | (418.1) | (403.2) | (396.8) |
Purchase of treasury shares | (270.4) | (678.4) | (4.2) |
Proceeds from stock option exercises | 16.3 | 4.5 | 7.1 |
Other – net | (0.1) | (0.4) | (7.2) |
Net Cash Provided by (Used for) Financing Activities | (944.5) | (1,943.9) | (688.7) |
Effect of exchange rate changes on cash | (0.7) | 11 | (4.8) |
Net increase (decrease) in cash and cash equivalents | (164.4) | (56.8) | 289.8 |
Cash and cash equivalents at beginning of year | 334.3 | 391.1 | 101.3 |
Cash and Cash Equivalents at End of Year | $ 169.9 | $ 334.3 | $ 391.1 |
Statements of Consolidated Shar
Statements of Consolidated Shareholders' Equity - USD ($) $ in Millions | Total | Common Shares | Additional Capital | Retained Income | Accumulated Other Comprehensive Income (Loss) |
Balance at Apr. 30, 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 | 779.5 | 779.5 | |||
Other comprehensive income (loss) | (197.2) | (197.2) | |||
Comprehensive Income | 582.3 | ||||
Purchase of treasury shares | (4.2) | $ 0 | (4.3) | 0.1 | |
Purchase of treasury shares, shares | (35,588) | ||||
Stock plans | 42.7 | $ 0.1 | 42.6 | ||
Stock plans, shares | 366,018 | ||||
Cash dividends declared | (400.4) | (400.4) | |||
Other | 0 | 0 | |||
Balance at Apr. 30, 2020 | 8,190.9 | $ 29 | 5,794.1 | 2,746.8 | (379) |
Balance, shares at Apr. 30, 2020 | 114,072,726 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 876.3 | 876.3 | |||
Other comprehensive income (loss) | 101.6 | 101.6 | |||
Comprehensive Income | 977.9 | ||||
Purchase of treasury shares | (678.4) | $ (1.5) | (301.5) | (375.4) | |
Purchase of treasury shares, shares | (5,834,904) | ||||
Stock plans | 34.6 | $ 0.1 | 34.5 | ||
Stock plans, shares | 101,235 | ||||
Cash dividends declared | (400.2) | (400.2) | |||
Other | 0 | $ (0.5) | 0.5 | 0 | |
Balance at Apr. 30, 2021 | $ 8,124.8 | $ 27.1 | 5,527.6 | 2,847.5 | (277.4) |
Balance, shares at Apr. 30, 2021 | 108,339,057 | 108,339,057 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 631.7 | 631.7 | |||
Other comprehensive income (loss) | 40 | 40 | |||
Comprehensive Income | 671.7 | ||||
Purchase of treasury shares | (270.4) | $ (0.5) | (109.6) | (160.3) | |
Purchase of treasury shares, shares | (2,059,083) | ||||
Stock plans | 39.9 | $ 0 | 39.9 | ||
Stock plans, shares | 178,343 | ||||
Cash dividends declared | (425.9) | (425.9) | |||
Balance at Apr. 30, 2022 | $ 8,140.1 | $ 26.6 | $ 5,457.9 | $ 2,893 | $ (237.4) |
Balance, shares at Apr. 30, 2022 | 106,458,317 | 106,458,317 |
Statements of Consolidated Sh_2
Statements of Consolidated Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends declared, per common share | $ 3.96 | $ 3.60 | $ 3.52 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 1: Accounting Policies Principles of Consolidation: The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and its majority-owned investments, if any. Intercompany transactions and accounts are eliminated in consolidation. Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires that we make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates in these consolidated financial statements include, among others, estimates of future cash flows associated with assets, potential asset impairments, useful lives and residual values of long-lived assets used in determining depreciation and amortization, net realizable value of inventories, accruals for trade marketing and merchandising programs, income taxes, and discount rates and other assumptions used in determining defined benefit pension and other postretirement benefit expenses. Actual results could differ from these estimates. Cash and Cash Equivalents: We consider all short-term, highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Based on the short-term nature of these assets, carrying value approximates fair value. Cash equivalents within cash and cash equivalents in the Consolidated Balance Sheets were $116.3 and $294.5 at April 30, 2022 and 2021, respectively. Revenue Recognition: Most of our revenue is derived from the sale of food and beverage products to food retailers, online retailers, and foodservice distributors and operators. We recognize revenue when obligations under the terms of a contract with a customer have been satisfied. This occurs when control of our products transfers, which typically takes place upon delivery to or pick up by the customer. Amounts due from our customers are classified as trade receivables in the Consolidated Balance Sheets and require payment on a short-term basis. Transaction price is based on the list price included in our published price list, which is then reduced by the estimated impact of variable consideration, such as trade marketing and merchandising programs, discounts, unsaleable product allowances, returns, and similar items, in the same period that the revenue is recognized. To estimate the impact of these costs, we consider customer contract provisions, historical data, and our current expectations. We have trade marketing and merchandising programs that consist of various promotional activities conducted through retailers, distributors, or directly with consumers, including in-store display and product placement programs, price discounts, coupons, and other similar activities. For additional discussion on these programs, refer to “Critical Accounting Estimates and Policies” within Management’s Discussion and Analysis of Financial Condition and Results of Operations. For revenue disaggregated by reportable segment, geographical region, and product category, see Note 4: Reportable Segments. Shipping and Handling Costs: Transportation costs included in cost of products sold relate to the costs incurred to ship our products. Distribution costs are included in SD&A expenses and primarily relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $294.1, $281.8, and $286.4 in 2022, 2021, and 2020, respectively. Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $176.5, $224.4, and $198.6 in 2022, 2021, and 2020, respectively. Research and Development Costs: Research and development (“R&D”) costs are expensed as incurred and are included in SD&A in the Statements of Consolidated Income. R&D costs include expenditures for new and existing product and manufacturing process innovations, which are comprised primarily of internal salaries and wages, consulting, testing, and other supplies attributable to time spent on R&D activities. Other costs include the depreciation and maintenance of research facilities. Total R&D expense was $48.8 in 2022 and $57.7 in both 2021 and 2020. Share-Based Payments: Share-based compensation expense, including stock options, is recognized on a straight-line basis over the requisite service period, and generally vest over a period of 1 to 3 years. The following table summarizes amounts related to share-based payments. Year Ended April 30, 2022 2021 2020 Share-based compensation expense included in SD&A $ 23.7 $ 28.3 $ 26.4 Share-based compensation expense included in other special project costs (1.4) 0.4 0.4 Total share-based compensation expense $ 22.3 $ 28.7 $ 26.8 Related income tax benefit $ 5.3 $ 6.6 $ 6.4 As of April 30, 2022, total unrecognized share-based compensation cost related to nonvested share-based awards, including stock options, was $36.3. The weighted-average period over which this amount is expected to be recognized is 1.9 years. Realized excess tax benefits and tax deficiencies are presented in the Statements of Consolidated Cash Flows as an operating activity and are recognized within income taxes in the Statements of Consolidated Income. In 2022 and 2020, the excess tax benefits realized upon exercise or vesting of share-based compensation were $1.1 and $0.9, respectively, and in 2021, there were tax deficiencies realized of $0.1. For additional discussion on share-based compensation expense, see Note 12: Share-Based Payments. Earnings Per Share: Earnings per share is computed in accordance with FASB ASC 260, Earnings Per Share . As required by ASC 260, we computed net income per common share (“basic earnings per share”) under the two-class method for 2022, 2021, and 2020, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during the periods. We compute net income per common share – assuming dilution (“diluted earnings per share”) under either the treasury method or the two-class method, dependent on which is more dilutive. As a result, diluted earnings per share for 2022 was computed under the treasury stock method, and the two-class method was applied in computing diluted earnings per share for 2021 and 2020. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Under the two-class method, net income available to common and participating common shareholders is reduced by the net income allocated to participating securities, which is equal to the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to participating securities. Under the treasury stock method, the diluted earnings per share calculation includes potential common shares assumed to be issued, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested, and includes the “if converted” method for participating securities if the effect is dilutive. For additional information on the earnings per share calculations, see Note 5: Earnings Per Share. Defined Contribution Plans: We offer employee savings plans for domestic and Canadian employees. Our contributions under these plans are based on a specified percentage of employee contributions. Charges to operations for these plans in 2022, 2021, and 2020 were $40.9, $41.2, and $39.7, respectively. For information on our defined benefit plans, see Note 8: Pensions and Other Postretirement Benefits. Income Taxes: We account for income taxes using the liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the applicable tax rate is recognized in income or expense in the period that the change is enacted. A tax benefit is recognized when it is more likely than not to be sustained. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. We account for the financial statement recognition and measurement criteria of a tax position taken or expected to be taken in a tax return under FASB ASC 740, Income Taxes . ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. In accordance with the requirements of ASC 740, uncertain tax positions have been classified in the Consolidated Balance Sheets as noncurrent, except to the extent payment is expected within one year. We recognize net interest and penalties related to unrecognized tax benefits in income tax expense. Trade Receivables: In the normal course of business, we extend credit to customers. Trade receivables, less credit losses, reflects the net realizable value of receivables and approximates fair value. We account for trade receivables, less credit losses, under Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses . We evaluate our trade receivables and establish a reserve for credit loss based on a combination of factors. When aware that a specific customer has been impacted by circumstances such as bankruptcy filings or deterioration in the customer’s operating results or financial position, potentially making it unable to meet its financial obligations, we record a specific reserve for bad debt to reduce the related receivable to the amount we reasonably believe is collectible. We also record reserves for credit loss for all other customers based on a variety of factors, including the length of time the receivables are past due, historical collection experience, and an evaluation of current and projected economic conditions at the balance sheet date. Trade receivables are charged off against the reserve for credit losses after we determine that the potential for recovery is remote. At April 30, 2022 and 2021, the reserve for credit loss was $2.3 and $2.4, respectively. We believe there is no concentration of risk with any single customer whose failure or nonperformance would materially affect results other than as discussed in Note 4: Reportable Segments. Inventories: Inventories are stated at the lower of cost or market, with market being defined as net realizable value, less costs to sell. Cost for all inventories is determined using the first-in, first-out method applied on a consistent basis. The cost of finished products and work-in-process inventory includes materials, direct labor, and overhead. Work-in-process is included in finished products in the Consolidated Balance Sheets and was $65.8 and $63.8 at April 30, 2022 and 2021, respectively. Derivative Financial Instruments: We account for derivative instruments in accordance with FASB ASC 815, Derivatives and Hedging , which requires all derivative instruments to be recognized at fair value in the financial statements, regardless of the purpose or intent for holding them. We do not qualify commodity derivatives or instruments used to manage foreign currency exchange exposures for hedge accounting treatment, and, as a result, the derivative gains and losses are immediately recognized in earnings. Although we do not perform the assessments required to achieve hedge accounting for derivative positions, we believe all of our derivatives are economic hedges of our risk exposure. The exposures hedged have a high inverse correlation to price changes of the derivative instrument. Thus, we would expect that over time any gain or loss in the estimated fair value of the derivatives would generally be offset by an increase or decrease in the estimated fair value of the underlying exposures. We utilize derivative instruments to manage interest rate risk associated with anticipated debt transactions, as well as to manage changes in the fair value of our long-term debt. At the inception of 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 typically deferred and included as a component of accumulated other comprehensive income (loss) and reclassified to interest expense in the period during which the hedged transaction affects earnings. If the contract is designated as a fair value hedge, the contract is recognized at fair value on the balance sheet, and changes in the fair value are recognized in interest expense. Generally, changes in the fair value of the contract are equal to changes in the fair value of the underlying debt and have no net impact on earnings. Property, Plant, and Equipment: Property, plant, and equipment is recognized at cost and is depreciated on a straight-line basis over the estimated useful life of the asset (3 to 20 years for machinery and equipment, 1 to 7 years for capitalized software costs related to software that we have purchased or has been licensed to us, and 5 to 40 years for buildings, fixtures, and improvements). We lease certain land, buildings, and equipment for varying periods of time, with renewal options. Lease expense in 2022, 2021, and 2020 totaled $111.0, $108.7, and $112.8, respectively. In accordance with FASB ASC 360, Property, Plant, and Equipment , long-lived assets, other than goodwill and other indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows estimated to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount exceeds the estimated fair value of the assets. Assets to be disposed of by sale are recognized as held for sale at the lower of carrying value or fair value less costs to sell. Furthermore, determining fair value is subject to estimates of both cash flows and discount rates, and different estimates could yield different results. There are no events or changes in circumstances of which we are aware of that indicate the carrying value of our long-lived assets may not be recoverable at April 30, 2022. Goodwill and Other Intangible Assets: Goodwill is the excess of the purchase price paid over the estimated fair value of the net assets of a business acquired. In accordance with FASB ASC 350, Intangibles – Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are reviewed at least annually for impairment. We conduct our annual test for impairment of goodwill and other indefinite-lived intangible assets as of February 1 of each year. A discounted cash flow valuation technique is utilized to estimate the fair value of our reporting units and indefinite-lived intangible assets. We also use a market-based approach to estimate the fair value of our reporting units. The discount rates utilized in the cash flow analyses are developed using a weighted-average cost of capital methodology. In addition to the annual test, we test for impairment if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying value. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which are evaluated on an annual basis. For additional information, see Note 6: Goodwill and Other Intangible Assets. Marketable Securities and Other Investments: We maintain funds for the payment of benefits associated with nonqualified retirement plans. These funds include investments considered to be available-for-sale marketable securities. At April 30, 2022 and 2021, the fair value of these investments was $26.6 and $31.0, respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2022 and 2021, were unrealized pre-tax gains of $2.4 and $4.9, respectively. Equity Method Investments: Investments in common stock of entities other than our consolidated subsidiaries are accounted for under the equity method in accordance with FASB ASC 323, Investments – Equity Method and Joint Ventures . Under the equity method, the initial investment is recorded at cost, and the investment is subsequently adjusted for its proportionate share of earnings or losses, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. The difference between the carrying amount of the investment and the underlying equity in net assets is primarily attributable to goodwill and other intangible assets. We have a 20 percent equity interest in Mountain Country Foods, LLC, and approximately 42 percent equity interest in Numi, Inc. The carrying amount of these investments is included in other noncurrent assets in the Consolidated Balance Sheets. The investments did not have a material impact on the consolidated financial statements or the respective reportable segment to which they relate for the years ended April 30, 2022 and 2021. Supplier Financing Program: During 2020, we entered into an agreement with a third-party administrator to provide an accounts payable tracking system and facilitate a supplier financing program which allows participating suppliers the ability to monitor and voluntarily elect to sell our payment obligations to a designated third-party financial institution. Participating suppliers can sell one or more of our payment obligations at their sole discretion, and our rights and obligations to our suppliers are not impacted. We have no economic interest in a supplier’s decision to enter into these agreements. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted by our suppliers’ decisions to sell amounts under these arrangements. However, our right to offset balances due from suppliers against our payment obligations is restricted by the agreement for those payment obligations that have been sold by our suppliers. The payment of these obligations is included in cash provided by operating activities in the Statements of Consolidated Cash Flows. Included in accounts payable in the Consolidated Balance Sheets as of April 30, 2022 and 2021 were $314.3 and $304.2 of outstanding payment obligations, respectively, that were elected and sold to a financial institution by participating suppliers. Foreign Currency Translation: Assets and liabilities of foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates, while income and expenses are translated using average rates throughout the periods. Translation adjustments are reported as a component of shareholders’ equity in accumulated other comprehensive income (loss). Included in accumulated other comprehensive income (loss) at April 30, 2022 and 2021, were foreign currency losses of $21.1 and $9.0, respectively. Recently Issued Accounting Standards: In March 2022, the SEC issued the proposed rule under SEC Release No. 33-11042, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize the climate-related disclosures provided by public companies. This update will require the disclosure of greenhouse gas emissions, climate-related targets and goals, how the Board and management oversee climate-related risks, and Scope 1 and 2 emissions, which will be subject to third-party assurance. As of April 30, 2022, these amendments were not adopted by the SEC; however, we anticipate that the adoption of these amendments will have a material impact on our financial statements and disclosures. In November 2020, 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 are part of the SEC’s broader disclosure effectiveness initiative and reflect a principles-based, registrant-specific approach to disclosures, intended to improve the content and simplify compliance for registrants. During 2021, we early adopted certain updates to section 301, Selected Financial Data, and 302, Supplementary Financial Information . As required, we adopted the remaining amendments during 2022, which did not have a material impact on our financial statements and disclosures. In December 2019, the FASB issued 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 was effective for us on May 1, 2021. The accounting guidance for franchise taxes and foreign investments was adopted on a modified retrospective basis and all other applicable provisions were adopted on a prospective basis, as required by ASU 2019-12. The adoption of this ASU did not have a material impact on our financial statements and disclosures. Risks and Uncertainties: The raw materials used in each of our segments are primarily commodities, agricultural-based products, and packaging materials. The principal packaging materials we use are plastic, glass, metal cans, caps, carton board, and corrugate. Green coffee, peanuts, protein meals, oils and fats, grains, sweeteners, fruit, and other ingredients are obtained from various suppliers. The availability, quality, and cost of many of these commodities have fluctuated, and may continue to fluctuate over time, partially driven by COVID-19. Green coffee, along with certain other raw materials, is sourced solely from foreign countries and its supply and price are subject to high volatility due to factors such as weather, global supply and demand, plant disease, investor speculation, and political and economic conditions in the source countries. Raw materials are generally available from numerous sources, although we have elected to source certain plastic packaging materials and finished goods, such as K-Cup ® pods, our Pup-Peroni dog snacks, and liquid coffee, from single sources of supply pursuant to long-term contracts. While availability may vary from year-to-year, we believe that we will continue to be able to obtain adequate supplies and that alternatives to single-sourced materials are available. We have not historically encountered significant shortages of key raw materials. We consider our relationships with key raw material suppliers to be in good standing. We have consolidated production capacity at a single manufacturing site for certain products, including substantially all of our coffee, Milk-Bone dog snacks, and fruit spreads. Although steps are taken at all of our manufacturing sites to reduce the likelihood of a production disruption, an interruption at a single manufacturing site would result in a reduction or elimination of the availability of some of our products for a period of time. Of our full-time employees, 26 percent are covered by union contracts at eight manufacturing locations. The contracts vary in term depending on location, with two contracts expiring in 2023, representing 9 percent of our total employees. We insure our business and assets in each country against insurable risks, to the extent that we deem appropriate, based upon an analysis of the relative risks and costs. |
Integration and Restructuring C
Integration and Restructuring Costs | 12 Months Ended |
Apr. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Integration and Restructuring Costs | Note 2: 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, integration, 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 impacted 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. With the exception of accelerated depreciation, these costs are expensed as incurred. These integration and restructuring costs are reported in cost of products sold and other special project costs in the Statements of Consolidated Income and are not allocated to segment profit. The obligation related to employee separation costs is included in other current liabilities in the Consolidated Balance Sheets. Integration Costs: As of April 30, 2020, all integration activities related to the acquisition of Ainsworth were considered complete. The following table summarizes our integration costs incurred related to the Ainsworth acquisition. 2020 Total Costs Employee-related costs $ 2.4 $ 17.9 Other transition and termination costs 14.1 30.7 Total integration costs $ 16.5 $ 48.6 Noncash charges of $0.6 were included in the integration costs incurred during 2020. Cumulative noncash charges incurred were $4.7 and primarily consisted of accelerated depreciation. We did not incur any costs during 2022 and 2021. The obligation related to severance costs and retention bonuses was fully satisfied as of April 30, 2021. Restructuring Costs: A restructuring program was approved by the Board during 2021, associated with opportunities identified to reduce our overall cost structure, optimize our organizational design, and support our portfolio reshape. This is inclusive of certain restructuring costs associated with the divestitures of the Crisco, Natural Balance , private label dry pet food, and natural beverage and grains businesses. For additional information related to the divestitures, see Note 3: Divestitures. During 2021, we substantially completed an organizational redesign related to our corporate headquarters and announced plans to close our Suffolk, Virginia, facility as a result of a new strategic partnership for the production of our liquid coffee products. During 2022, we completed the transition of production to JDE Peet’s, as anticipated. Furthermore, the restructuring program was expanded during the third quarter of 2022 to include certain costs associated with the recent divestitures of the private label dry pet food and natural beverage and grains businesses, as well as the recently announced plans to close our Ripon, Wisconsin, production facility by the end of calendar year 2022 to further optimize operations for our Consumer Foods business. We expect to incur costs of approximately $70.0 associated with the restructuring activities planned to date. More than half of these costs are expected to be other transition and termination costs associated with our cost reduction and margin management initiatives, inclusive of accelerated depreciation, while the remainder represents employee-related costs. We anticipate the planned activities associated with this restructuring program will be completed by the end of 2023, with the majority of the costs expected to be incurred in the first half of 2023. The following table summarizes our restructuring costs incurred related to the restructuring program. 2022 2021 Total Costs Employee-related costs $ 6.3 $ 17.3 $ 23.6 Other transition and termination costs 22.2 6.8 29.0 Total restructuring costs $ 28.5 $ 24.1 $ 52.6 |
Divestitures
Divestitures | 12 Months Ended |
Apr. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | Note 3: Divestitures On January 31, 2022, we sold the natural beverage and grains businesses to Nexus. The transaction included products sold under the R.W. Knudsen and TruRoots brands, inclusive of certain trademarks, a licensing agreement for Santa Cruz Organic beverages, dedicated manufacturing and distribution facilities in Chico, California, and Havre de Grace, Maryland, and approximately 150 employees who supported the natural beverage and grains businesses. The transaction did not include Santa Cruz Organic nut butters, fruit spreads, syrups, or applesauce. Under our ownership, the businesses generated net sales of $106.7, $143.4, and $131.6 in 2022, 2021, and 2020, respectively, primarily included in the U.S. Retail Consumer Foods segment. Net proceeds from the divestiture were $97.1, which were inclusive of a preliminary working capital adjustment and cash transaction costs, and will be finalized during the first quarter of 2023. On December 1, 2021, we sold the private label dry pet food business to Diamond Pet Foods. The transaction included dry pet food products sold under private label brands, a dedicated manufacturing facility located in Frontenac, Kansas, and approximately 220 employees who supported the private label dry pet food business. The transaction did not include any branded products or our private label wet pet food business. Under our ownership, the business generated net sales of $62.3, $94.0, and $120.6 in 2022, 2021, and 2020, respectively, included in the U.S. Retail Pet Foods segment. Final net proceeds from the divestiture were $32.9, which were net of cash transaction costs. Upon completion of these transactions during 2022, we recognized a pre-tax gain of $26.7 related to the natural beverage and grains businesses and a pre-tax loss of $17.1 related to the private label dry pet food business, which were included in other operating expense (income) – net within the 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. April 30, 2022 Natural Beverage and Grains Private Label Dry Pet Food Assets disposed: Inventories $ 28.3 $ 19.0 Other current assets 0.5 — Property, plant, and equipment – net 28.1 31.1 Operating lease right-of-use assets 0.4 0.1 Other intangible assets – net 13.6 — Total assets disposed $ 70.9 $ 50.2 Liabilities disposed: Current operating lease liabilities $ 0.3 $ 0.1 Noncurrent operating lease liabilities 0.1 — Other noncurrent liabilities 0.1 — Total liabilities disposed 0.5 0.1 Net assets disposed $ 70.4 $ 50.1 On January 29, 2021, we sold the Natural Balance premium pet food business to Nexus. The transaction included pet food products sold under the Natural Balance brand, certain trademarks and licensing agreements, and select employees who supported the Natural Balance business. Under our ownership, the business generated net sales of $156.7 and $222.8 in 2021 and 2020, respectively, included in the U.S. Retail Pet Foods segment. Final net proceeds from the divestiture were $33.8, which were net of cash transaction costs and a working capital adjustment. Upon completion of this transaction, we recognized a pre-tax loss of $89.5, which was included in other operating expense (income) – net within the Statement of Consolidated Income. On December 1, 2020, we sold the Crisco oils and shortening business to 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. Under our ownership, the business generated net sales of $198.9 and $269.2 in 2021 and 2020, respectively, primarily included in the U.S. Retail Consumer Foods segment. Final net proceeds from the divestiture were $530.2, which were net of cash transaction costs and a working capital adjustment. Upon completion of this transaction, we recognized a pre-tax gain of $114.8, which was included in other operating expense (income) – net within the Statement of Consolidated Income. |
Reportable Segments
Reportable Segments | 12 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 4: 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. The presentation of International and Away From Home represents a combination of all other operating segments that are not individually reportable. 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’ , 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 amortization expense and impairment charges related to intangible assets, gains and losses on divestitures, change in net cumulative unallocated derivative gains and losses, special project costs, as well as corporate administrative expenses. 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. The following table reconciles segment profit to income before income taxes and presents total assets; total depreciation, amortization, and impairment charges; and total additions to property, plant, and equipment by segment. Year Ended April 30, 2022 2021 2020 Net sales: U.S. Retail Pet Foods $ 2,764.3 $ 2,844.5 $ 2,869.5 U.S. Retail Coffee 2,497.3 2,374.6 2,149.5 U.S. Retail Consumer Foods 1,707.2 1,835.7 1,731.7 International and Away From Home 1,030.1 947.9 1,050.3 Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 Segment profit: U.S. Retail Pet Foods $ 395.9 $ 487.0 $ 552.7 U.S. Retail Coffee 736.7 769.1 691.0 U.S. Retail Consumer Foods 424.2 472.5 389.7 International and Away From Home 142.0 124.1 173.4 Total segment profit $ 1,698.8 $ 1,852.7 $ 1,806.8 Amortization (223.6) (233.0) (236.3) Other intangible assets impairment charges (150.4) (3.8) (52.4) Gain on divestitures – net 9.6 25.3 — Interest expense – net (160.9) (177.1) (189.2) Change in net cumulative unallocated derivative gains and losses (23.4) 93.6 19.6 Cost of products sold – special project costs (A) (20.5) (3.4) — Other special project costs (A) (8.0) (20.7) (16.5) Corporate administrative expenses (258.7) (323.9) (298.1) Other income (expense) – net (19.1) (37.8) (7.2) Income before income taxes $ 843.8 $ 1,171.9 $ 1,026.7 Assets: U.S. Retail Pet Foods $ 7,167.4 $ 7,480.8 $ 7,731.4 U.S. Retail Coffee 4,891.8 4,793.9 4,787.4 U.S. Retail Consumer Foods 2,692.1 2,553.4 2,873.1 International and Away From Home 973.9 1,013.8 1,048.0 Unallocated (B) 329.8 442.3 530.5 Total assets $ 16,055.0 $ 16,284.2 $ 16,970.4 Depreciation, amortization, and impairment charges: U.S. Retail Pet Foods $ 342.8 $ 194.8 $ 243.0 U.S. Retail Coffee 100.2 96.7 96.4 U.S. Retail Consumer Foods 64.6 75.4 72.5 International and Away From Home 46.2 50.2 51.9 Unallocated (C) 55.7 39.2 35.1 Total depreciation, amortization, and impairment charges $ 609.5 $ 456.3 $ 498.9 Additions to property, plant, and equipment: U.S. Retail Pet Foods $ 74.0 $ 72.4 $ 60.1 U.S. Retail Coffee 49.8 42.5 62.4 U.S. Retail Consumer Foods 274.8 167.4 107.7 International and Away From Home 18.9 24.4 39.1 Total additions to property, plant, and equipment $ 417.5 $ 306.7 $ 269.3 (A) Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs in the Statements of Consolidated Income. For more information, see Note 2: Integration and Restructuring Costs. (B) Primarily represents unallocated cash and cash equivalents and corporate-held investments. (C) Primarily represents unallocated corporate administrative expenses, mainly consisting of depreciation and software amortization. The following table presents certain geographical information. Year Ended April 30, 2022 2021 2020 Net sales: United States $ 7,469.6 $ 7,448.3 $ 7,247.9 International: Canada $ 439.6 $ 443.6 $ 445.3 All other international 89.7 110.8 107.8 Total international $ 529.3 $ 554.4 $ 553.1 Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 Assets: United States $ 15,653.5 $ 15,879.7 $ 16,547.6 International: Canada $ 399.8 $ 402.7 $ 421.3 All other international 1.7 1.8 1.5 Total international $ 401.5 $ 404.5 $ 422.8 Total assets $ 16,055.0 $ 16,284.2 $ 16,970.4 Long-lived assets (excluding goodwill and other intangible assets): United States $ 2,331.2 $ 2,220.6 $ 2,209.9 International: Canada $ 45.7 $ 57.1 $ 54.3 All other international — — — Total international $ 45.7 $ 57.1 $ 54.3 Total long-lived assets (excluding goodwill and other intangible assets) $ 2,376.9 $ 2,277.7 $ 2,264.2 The following table presents product category information. Year Ended April 30, 2022 2021 2020 Primary Reportable Segment (A) Coffee $ 2,804.7 $ 2,639.7 $ 2,475.4 U.S. Retail Coffee Cat food 969.9 918.4 869.2 U.S. Retail Pet Foods Pet snacks 944.9 907.3 849.7 U.S. Retail Pet Foods Dog food 926.5 1,090.8 1,217.6 U.S. Retail Pet Foods Peanut butter 801.1 796.1 730.6 U.S. Retail Consumer Foods Frozen handheld 510.7 430.3 365.0 U.S. Retail Consumer Foods Fruit spreads 386.5 385.9 370.3 U.S. Retail Consumer Foods Portion control 158.2 120.5 153.3 Other (B) Juices and beverages 106.3 139.0 125.7 U.S. Retail Consumer Foods Baking mixes and ingredients 85.5 93.5 89.9 Other (B) Shortening and oils — 193.9 262.3 U.S. Retail Consumer Foods (C) Other 304.6 287.3 292.0 Other (B) Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. (B) Represents the combined International and Away From Home operating segments. (C) During 2021 and 2020, the net sales within this category were related to the divested Crisco business. For more information, see Note 3: Divestitures. Sales to Walmart Inc. and subsidiaries amounted to 34 percent of net sales in 2022 and 32 percent of net sales in both 2021 and 2020. These sales are primarily included in our U.S. retail market segments. No other customer exceeded 10 percent of net sales for any year. Trade receivables – net at April 30, 2022 and 2021, included amounts due from Walmart Inc. and subsidiaries of $179.9 and $149.7, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 5: Earnings Per Share We computed basic earnings per share under the two-class method for 2022, 2021, and 2020, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during these periods. For 2022, the computation of diluted earnings per share was more dilutive under the treasury stock method, as compared to the two-class method; therefore, the treasury stock method was used in accordance with FASB ASC 260, Earnings Per Share . Diluted earnings per share for 2021 and 2020 was computed under the two-class method. The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method. Year Ended April 30, 2022 2021 2020 Net income $ 631.7 $ 876.3 $ 779.5 Less: Net income allocated to participating securities 1.8 3.7 4.4 Net income allocated to common stockholders $ 629.9 $ 872.6 $ 775.1 Weighted-average common shares outstanding 107.9 112.0 113.4 Add: Dilutive effect of stock options — — — Weighted-average common shares outstanding – assuming dilution 107.9 112.0 113.4 Net income per common share $ 5.84 $ 7.79 $ 6.84 Net income per common share – assuming dilution $ 5.84 $ 7.79 $ 6.84 The following table sets forth the computation of diluted earnings per share under the treasury stock method for the year ended April 30, 2022. Net income $ 631.7 Weighted-average common shares outstanding – assuming dilution: Weighted-average common shares outstanding 107.9 Add: Dilutive effect of stock options — Add: Dilutive effect of restricted shares, restricted stock units, and performance units 0.5 Weighted-average common shares outstanding – assuming dilution 108.4 Net income per common share – assuming dilution $ 5.83 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6: Goodwill and Other Intangible Assets The following table summarizes the changes in our goodwill. 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) — — — 20.8 20.8 Balance at April 30, 2021 $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 417.0 $ 6,023.6 Other (A) — — — (7.8) (7.8) Balance at April 30, 2022 (B) $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 409.2 $ 6,015.8 (A) The amounts classified as other represent foreign currency exchange adjustments. (B) Included in goodwill as of April 30, 2022, are accumulated goodwill impairment charges of $242.9. The following table summarizes our other intangible assets and related accumulated amortization and impairment charges, including foreign currency exchange adjustments. April 30, 2022 April 30, 2021 Acquisition Accumulated Net Acquisition Accumulated Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 4,450.0 $ 1,724.8 $ 2,725.2 $ 4,471.1 $ 1,545.0 $ 2,926.1 Patents and technology 167.6 155.0 12.6 168.5 147.3 21.2 Trademarks 661.7 354.1 307.6 364.5 186.7 177.8 Total intangible assets subject to amortization $ 5,279.3 $ 2,233.9 $ 3,045.4 $ 5,004.1 $ 1,879.0 $ 3,125.1 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 2,833.1 $ 226.3 $ 2,606.8 $ 3,141.1 $ 225.0 $ 2,916.1 Total other intangible assets $ 8,112.4 $ 2,460.2 $ 5,652.2 $ 8,145.2 $ 2,104.0 $ 6,041.2 Amortization expense for finite-lived intangible assets was $222.5, $232.0, and $235.3 in 2022, 2021, and 2020, respectively. The weighted-average useful lives of the customer and contractual relationships, patents and technology, and trademarks are 24 years, 16 years, and 15 years, respectively. The weighted-average useful life of total finite-lived intangible assets is 23 years. Based on the carrying value of intangible assets subject to amortization at April 30, 2022, the estimated amortization expense is $222.5 for 2023, $218.4 for 2024, $215.3 for 2025, $213.6 for 2026, and $213.0 for 2027. 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. During the third quarter of 2022, we made certain strategic decisions related to our U.S. Retail Pet Foods segment in support of our continued focus on prioritizing and accelerating growth in dog snacks, driving momentum in cat food, and improving dog food performance, which will require further allocation of resources to support more strategic, faster growth opportunities. As a result, we completed an interim review to determine the impact these strategic decisions had on the fair value of the goodwill and certain indefinite-lived intangible assets within the U.S. Retail Pet Foods segment. We recognized an impairment charge of $150.4 related to the Rachael Ray Nutrish brand within the U.S. Retail Pet Foods segment, primarily driven by the re-positioning of this brand within the Pet Foods brand portfolio, which led to a decline in the current and long-term net sales expectations and the royalty rate used in the valuation analysis. This charge was included as a noncash charge in our Statement of Consolidated Income. Additionally, we reassessed the long-term strategic expectations for the Rachael Ray Nutrish brand and reclassified this brand as a finite-lived intangible asset as of January 31, 2022. As of February 1, 2022, we completed the annual impairment review, in which goodwill impairment was tested at the reporting unit level for our six reporting units with goodwill. As part of our annual evaluation, we did not recognize any additional impairment charges related to our goodwill and indefinite-lived intangible assets. The estimated fair value exceeded the carrying value by greater than 10 percent for all our goodwill and indefinite-lived intangible assets, with the exception of the Pet Foods reporting unit, for which its fair value exceeded its carrying value by approximately 6 percent. The carrying value of the goodwill within the U.S. Retail Pet Foods segment was $2.4 billion as of April 30, 2022, and remains susceptible to future impairment charges due to the narrow difference between fair value and carrying value. Additional sensitivity analyses were performed for the Pet Foods reporting unit, assuming a hypothetical 50-basis-point decrease in the expected long-term growth rate or a hypothetical 50-basis-point increase in the weighted-average cost of capital. Both scenarios independently yielded an estimated fair value for the Pet Foods reporting unit below carrying value. Therefore, any significant adverse change in our near or long-term projections or macroeconomic conditions could result in future impairment charges, which could be material. In addition, we continue to evaluate the nature and extent to which 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 April 30, 2022, any significant sustained adverse change in our consumer purchasing behaviors, government restrictions, financial results, or macroeconomic conditions could result in future impairment. During 2021, we recognized an impairment charge of $3.8 related to an immaterial trademark within the U.S. Retail Consumer Foods segment. During 2020, we recognized an impairment charge of $52.4 related to the 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. These charges were included as noncash charges in our Statements of Consolidated Income. |
Debt and Financing Arrangements
Debt and Financing Arrangements | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Note 7: Debt and Financing Arrangements The following table summarizes the components of our long-term debt. April 30, 2022 April 30, 2021 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ — $ — $ 750.0 $ 753.5 3.00% Senior Notes due March 15, 2022 — — 400.0 399.4 3.50% Senior Notes due March 15, 2025 1,000.0 997.6 1,000.0 996.8 3.38% Senior Notes due December 15, 2027 500.0 497.6 500.0 497.1 2.38% Senior Notes due March 15, 2030 500.0 496.2 500.0 495.7 2.13% Senior Notes due March 15, 2032 500.0 493.8 — — 4.25% Senior Notes due March 15, 2035 650.0 644.7 650.0 644.3 2.75% Senior Notes due September 15, 2041 300.0 297.1 — — 4.38% Senior Notes due March 15, 2045 600.0 587.6 600.0 587.1 3.55% Senior Notes due March 15, 2050 300.0 296.0 300.0 295.8 Total long-term debt $ 4,350.0 $ 4,310.6 $ 4,700.0 $ 4,669.7 Current portion of long-term debt — — 1,150.0 1,152.9 Total long-term debt, less current portion $ 4,350.0 $ 4,310.6 $ 3,550.0 $ 3,516.8 (A) Represents the carrying amount included in the Consolidated Balance Sheets, which includes the impact of capitalized debt issuance costs, offering discounts, and terminated interest rate contracts. During the second quarter of 2022, we completed an offering of $800.0 in Senior Notes due March 15, 2032, and September 15, 2041. The Senior Notes included $7.2 of capitalized debt issuance costs and $2.4 of offering discounts, which are amortized to interest expense over the life of the debt. The net proceeds from the offering were primarily used to repay $750.0 in principal of the Senior Notes due October 15, 2021. Furthermore, during the first quarter of 2022, we prepaid $400.0 in principal of the Senior Notes due March 15, 2022, and as a result, we recognized a net loss on extinguishment of $6.9, which primarily consisted of a make-whole payment and was included in other income (expense) – net in the Statement of Consolidated Income. In August 2021, we entered into an unsecured revolving credit facility with a group of 11 banks, which provides for a revolving credit line of $2.0 billion and matures in August 2026, and terminated the previous $1.8 billion revolving credit facility. The new revolving credit facility included $4.3 of capitalized debt issuance costs, and is amortized to interest expense over the time for which the revolving credit facility is effective. Borrowings under the revolving credit facility bear interest on the prevailing U.S. Prime Rate, LIBOR, Euro Interbank Offered Rate, 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 have not drawn upon the new revolving credit facility as of April 30, 2022, and did not have a balance outstanding under the previous revolving credit facility as of April 30, 2021. We participate in a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $2.0 billion, which was increased from $1.8 billion in August 2021, in conjunction with entering into the $2.0 billion unsecured revolving credit facility. 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 is used as a continuing source of short-term financing for general corporate purposes. As of April 30, 2022 and 2021, we had $180.0 and $82.0 of short-term borrowings outstanding, respectively, which were issued under our commercial paper program at weighted-average interest rates of 0.65 percent and 0.17 percent, respectively. In 2020, we completed an offering of $800.0 in Senior Notes due March 15, 2030, and March 15, 2050. A portion of the net proceeds from the offering was used to repay the $500.0 Senior Notes due March 15, 2020, with the balance being held as a cash equivalent to be used for general corporate purposes. Concurrent with the pricing of these Senior Notes, we terminated interest rate contracts that 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 amortized as interest expense over the life of the debt. For additional information, see Note 9: Derivative Financial Instruments. All of our Senior Notes outstanding at April 30, 2022, are unsecured, and interest is paid semiannually, with no required scheduled principal payments until maturity. We may prepay all or part of the Senior Notes at 100 percent of the principal amount thereof, together with the accrued and unpaid interest, and any applicable make-whole amount. Interest paid totaled $155.2, $169.9, and $193.4 in 2022, 2021, and 2020, respectively. This differs from interest expense due to capitalized interest, the effect of interest rate contracts, amortization of debt issuance costs and discounts, payment of other debt fees, and the timing of interest payments. Our debt instruments contain certain covenant restrictions, including an interest coverage ratio. Our financial covenant restrictions were amended to remove the leverage ratio in August 2021, in conjunction with entering into the $2.0 billion unsecured revolving credit facility. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2022 | |
Retirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Note 8: Pensions and Other Postretirement Benefits We have defined benefit pension plans covering certain U.S. and Canadian employees. Pension benefits are based on the employee’s years of service and compensation levels. Our plans are funded in conformity with the funding requirements of applicable government regulations. In addition to providing pension benefits, we sponsor several unfunded postretirement plans that provide health care and life insurance benefits to certain retired U.S. and Canadian employees. These plans are contributory, with retiree contributions adjusted periodically, and contain other cost-sharing features, such as deductibles and coinsurance. Covered employees generally are eligible for these benefits when they reach age 55 and have attained 10 years of credited service. The following table summarizes the components of net periodic benefit cost and the change in accumulated other comprehensive income (loss) related to the defined benefit pension and other postretirement plans. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2020 2022 2021 2020 Service cost $ 1.7 $ 1.8 $ 1.6 $ 1.2 $ 1.8 $ 1.8 Interest cost 12.4 14.4 20.9 1.3 1.8 2.3 Expected return on plan assets (15.9) (19.3) (24.1) — — — Amortization of prior service cost (credit) 0.9 0.9 0.9 (0.6) (1.0) (1.1) Amortization of net actuarial loss (gain) 6.9 10.9 7.9 (0.4) — (0.3) Settlement loss (gain) 10.8 35.5 0.1 — — — Termination benefit cost — — 0.2 — — — Net periodic benefit cost $ 16.8 $ 44.2 $ 7.5 $ 1.5 $ 2.6 $ 2.7 Other changes in plan assets and benefit liabilities recognized in Prior service credit (cost) arising during the year $ (0.4) $ — $ — $ — $ — $ — Net actuarial gain (loss) arising during the year 30.4 14.3 (51.6) 8.2 5.9 (4.4) Amortization of prior service cost (credit) 0.9 0.9 0.9 (0.6) (1.0) (1.1) Amortization of net actuarial loss (gain) 6.9 10.9 7.9 (0.4) — (0.3) Settlement loss (gain) 10.8 35.5 0.1 — — — Foreign currency translation — (1.5) 1.1 (0.1) 0.2 — Net change for year $ 48.6 $ 60.1 $ (41.6) $ 7.1 $ 5.1 $ (5.8) Weighted-average assumptions used in determining net periodic benefit costs: U.S. plans: Discount rate used to determine benefit obligation 3.13 % 3.05 % 3.99 % 2.97 % 2.98 % 3.91 % Discount rate used to determine service cost 3.53 3.34 4.20 3.20 3.18 4.07 Discount rate used to determine interest cost 2.40 2.54 3.61 2.07 2.42 3.47 Expected return on plan assets 4.59 4.96 5.28 — — — Rate of compensation increase 3.55 3.58 3.56 — — — Canadian plans: Discount rate used to determine benefit obligation 2.15 % 2.95 % 3.21 % 3.03 % 2.93 % 3.19 % Discount rate used to determine service cost — 3.06 3.29 3.52 3.19 3.44 Discount rate used to determine interest cost 1.95 2.47 2.86 2.32 2.46 2.86 Expected return on plan assets 1.70 3.00 5.00 — — — Rate of compensation increase — 3.00 3.00 — — — We amortize gains and losses for our postretirement plans over the average expected future period of vested service. For plans that consist of less than 5 percent of participants that are active, average life expectancy is used instead of the average expected future service period. We use a measurement date of April 30 to determine defined benefit pension and other postretirement benefit plans’ assets and benefit obligations. The following table sets forth the combined status of the plans as recognized in the Consolidated Balance Sheets. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 546.8 $ 652.3 $ 69.6 $ 74.5 Service cost 1.7 1.8 1.2 1.8 Interest cost 12.4 14.4 1.3 1.8 Amendments 0.4 — — — Actuarial loss (gain) (A) (62.4) 10.8 (8.2) (5.9) Benefits paid (25.4) (35.9) (4.1) (3.4) Settlement (44.1) (101.2) — — Foreign currency translation adjustments — 4.6 (0.1) 0.8 Benefit obligation at end of year $ 429.4 $ 546.8 $ 59.7 $ 69.6 Change in plan assets: Fair value of plan assets at beginning of year $ 397.8 $ 471.6 $ — $ — Actual return on plan assets (16.1) 44.5 — — Company contributions 5.3 13.1 4.1 3.4 Benefits paid (25.4) (35.9) (4.1) (3.4) Settlement (44.1) (101.2) — — Foreign currency translation adjustments (0.4) 5.7 — — Fair value of plan assets at end of year $ 317.1 $ 397.8 $ — $ — Funded status of the plans $ (112.3) $ (149.0) $ (59.7) $ (69.6) Defined benefit pensions $ (114.9) $ (151.9) $ — $ — Other noncurrent assets 6.6 7.5 — — Accrued compensation (4.0) (4.6) (5.5) (5.3) Other postretirement benefits — — (54.2) (64.3) Net benefit liability $ (112.3) $ (149.0) $ (59.7) $ (69.6) (A) The actuarial losses and gains for our defined benefit pension plans and other postretirement benefits were primarily due to changes in the discount rates used in determining the plan obligations. The following table summarizes amounts recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, before income taxes. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Net actuarial gain (loss) $ (92.4) $ (140.5) $ 19.3 $ 11.6 Prior service credit (cost) (1.2) (1.7) 3.1 3.7 Total recognized in accumulated other comprehensive income (loss) $ (93.6) $ (142.2) $ 22.4 $ 15.3 The following table sets forth the weighted-average assumptions used in determining the benefit obligations. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 U.S. plans: Discount rate 4.59 % 3.13 % 4.52 % 2.97 % Rate of compensation increase 3.55 3.55 — — Interest crediting rate 4.50 4.50 — — Canadian plans: Discount rate 2.41 % 2.15 % 4.50 % 3.03 % For 2023, the assumed health care trend rates are 6.5 percent and 4.5 percent for the U.S. and Canadian plans, respectively. The rate for participants under age 65 is assumed to decrease to 5.0 percent in 2032 for the U.S. plan and remain at 4.5 percent for the Canadian plan. The health care cost trend rate assumption impacts the amount of the other postretirement benefits obligation and periodic other postretirement benefits cost reported. The following table sets forth selective information pertaining to our Canadian pension and other postretirement benefit plans, which is included in the consolidated information presented on pages 68 and 69. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Benefit obligation at end of year $ 2.0 $ 2.0 $ 4.9 $ 6.1 Fair value of plan assets at end of year 8.1 8.9 — — Funded status of the plans $ 6.1 $ 6.9 $ (4.9) $ (6.1) Components of net periodic benefit cost: Interest cost 0.1 0.9 0.1 0.2 Expected return on plan assets 0.1 (1.1) — — Amortization of net actuarial loss (gain) — 0.4 (0.1) — Settlement loss (gain) — 29.6 — — Net periodic benefit cost (credit) $ 0.2 $ 29.8 $ — $ 0.2 Changes in plan assets: Actual return on plan assets $ 0.3 $ 0.9 $ — $ — Company contributions (0.4) (1.1) 0.4 0.4 Benefits paid (0.3) (4.4) (0.4) (0.4) Settlement — (83.2) — — Foreign currency translation (0.4) 5.7 — — During 2021, we transferred $82.6 in obligations as part of the Canadian buy-out contract. The group annuity contract was purchased using assets from the pension trust. As a result of this transaction, during 2021, we recognized a noncash pre-tax settlement charge of $29.6 to accelerate the unrecognized losses within accumulated other comprehensive income (loss) that would have otherwise been recognized in subsequent periods. This settlement charge was included within other income (expense) – net in the Statement of Consolidated Income. We did not recognize any additional charges related to the Canadian buy-out contract during 2022. We expect to finalize the wind-up of the Canadian pension plan impacted by the buy-out in 2023, and anticipate a minimal settlement charge associated with the wind-up. The following table sets forth additional information related to our defined benefit pension plans. April 30, 2022 2021 Accumulated benefit obligation for all pension plans $ 423.9 $ 538.3 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 422.4 $ 536.9 Fair value of plan assets 309.0 388.9 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 427.8 $ 545.4 Fair value of plan assets 309.0 388.9 We employ a total return on investment approach for the defined benefit pension plans’ assets. A mix of equity, fixed-income, and alternative investments is used to maximize the long-term rate of return on assets for the level of risk. In determining the expected long-term rate of return on the defined benefit pension plans’ assets, we consider the historical rates of return, the nature of investments, the asset allocation, and expectations of future investment strategies. The actual rate of return was (4.6) percent and 12.9 percent for the years ended April 30, 2022 and 2021, respectively, which excludes administrative and investment expenses. Our current investment policy is to invest approximately 63 percent of assets in fixed-income securities, with the remaining invested primarily in equity securities. The following tables summarize the major asset classes for the U.S. and Canadian defined benefit pension plans and the levels within the fair value hierarchy for those assets measured at fair value. Quoted Prices in Significant Significant Plan Assets at April 30, 2022 Cash and cash equivalents (A) $ 8.1 $ — $ — $ 8.1 Equity securities: U.S. (B) 29.8 — — 29.8 International (C) 33.3 — — 33.3 Fixed-income securities: Bonds (D) 187.3 — — 187.3 Fixed income (E) 6.6 — — 6.6 Other types of investments (F) — 50.9 — 50.9 Total financial assets measured at fair value $ 265.1 $ 50.9 $ — $ 316.0 Total financial assets measured at net asset value (G) 1.1 Total plan assets $ 317.1 Quoted Prices in Significant Significant Plan Assets at April 30, 2021 Cash and cash equivalents (A) $ 10.1 $ — $ — $ 10.1 Equity securities: U.S. (B) 49.9 — — 49.9 International (C) 57.4 — — 57.4 Fixed-income securities: Bonds (D) 224.5 — — 224.5 Fixed income (E) 13.6 — — 13.6 Other types of investments (F) — 39.9 — 39.9 Total financial assets measured at fair value $ 355.5 $ 39.9 $ — $ 395.4 Total financial assets measured at net asset value (G) 2.4 Total plan assets $ 397.8 (A) This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. (B) This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices, and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (C) This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (D) This category is primarily composed of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years, as well as various U.S. Treasury Separate Trading of Registered Interest and Principal holdings, with wide-ranging maturity dates. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. (E) This category is composed of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. (F) This category is composed of a real estate fund whereby the underlying investments are contained in the Canadian market and a common collective trust fund investing in direct commercial property funds. The real estate fund and the collective trust fund investing in direct commercial property are classified as Level 2 assets, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. (G) This category is composed of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds, as well as a private limited investment partnership. The fair value estimates of the private equity fund and private limited investment partnership are based on the underlying funds’ net asset values. Furthermore, as a practical expedient equivalent to our defined benefit plan’s ownership interest in the partners’ capital, a proportionate share of the net assets is attributed and further corroborated by our review. The private equity fund and private limited investment partnership are non-redeemable, and the return of principal is based on the liquidation of the underlying assets. In accordance with ASU 2015-07, the private equity fund and private limited investment partnership are removed from the total financial assets measured at fair value and disclosed separately. In 2023, we expect to make contributions of $80.0 to increase funding for our U.S. qualified defined benefit pension plans, while making direct benefit payments of approximately $9.6. Further, we expect the following payments to be made from the defined benefit pension and other postretirement benefit plans: $44.0 in 2023, $41.0 in 2024, $38.3 in 2025, $36.9 in 2026, $35.8 in 2027, and $176.0 in 2028 through 2032. Multi-Employer Pension Plan: We participate in one multi-employer pension plan, the Bakery and Confectionery Union and Industry International Pension Fund (“Bakery and Confectionery Union Fund”) (52-6118572), which provides defined benefits to certain union employees. During 2022 and 2021, a total of $2.6 and $2.5 was contributed to the plan, respectively, and we anticipate contributions of $2.5 in 2023. The risks of participating in multi-employer pension plans are different from the risks of participating in single-employer pension plans. For instance, the assets contributed to the multi-employer plan by one employer may be used to provide benefits to employees of other participating employers, and if a participating employer stops contributing to the plan, the unfunded obligations of the plan allocable to the withdrawing employer may be the responsibility of the remaining participating employers. Additionally, if we stop participating in the multi-employer pension plan, we may be required to pay the plan an amount based on our allocable share of the underfunded status of the plan, referred to as a withdrawal liability. The Pension Protection Act of 2006 ranks the funded status of multi-employer pension plans depending upon a plan’s current and projected funding. A plan is in the Red Zone (Critical) if it has a current funded percentage less than 65 percent. A plan is in the Yellow Zone (Endangered) if it has a current funded percentage of less than 80 percent or projects a credit balance deficit within seven years. A plan is in the Green Zone (Healthy) if it has a current funded percentage greater than 80 percent and does not have a projected credit balance deficit within seven years. The zone status is based on the plan’s year-end, not our fiscal year-end. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. During calendar year 2021, the Bakery and Confectionery Union Fund was in Red Zone status, as the current funding status was 48.5 percent. A funding improvement plan, or rehabilitation plan, has been implemented. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Apr. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Note 9: 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 Derivatives: We enter into commodity derivatives to manage the price volatility and reduce the variability of future cash flows related to anticipated inventory purchases of key raw materials, notably green coffee, soybean meal, corn, 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 Derivatives: 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 Derivatives: 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 typically 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. The following table presents the gross notional value of outstanding derivative contracts. Year Ended April 30, 2022 2021 Commodity contracts $ 2,086.2 $ 861.0 Foreign currency exchange contracts 91.3 88.4 The following tables set forth the gross fair value amounts of derivative instruments recognized in the Consolidated Balance Sheets. April 30, 2022 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 45.4 $ 22.3 $ — $ — Foreign currency exchange contracts 1.7 — — — Total derivative instruments $ 47.1 $ 22.3 $ — $ — April 30, 2021 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 52.6 $ 13.2 $ — $ — Foreign currency exchange contracts 0.1 3.7 — — Total derivative instruments $ 52.7 $ 16.9 $ — $ — We have elected to not offset fair value amounts recognized for our exchange-traded derivative instruments and our cash margin accounts executed with the same counterparty that are generally subject to enforceable netting agreements. We are required to maintain cash margin accounts in connection with funding the settlement of our open positions. At April 30, 2022, our cash margin accounts represented collateral pledged of $54.6, and at April 30, 2021, our cash margin accounts represented collateral received of $10.8, included in other current assets in the Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the Statements of Consolidated Cash Flows. In the event of default and immediate net settlement of all of our open positions with individual counterparties, all of our derivative liabilities would be fully offset by either our derivative asset positions or margin accounts based on the net asset or liability position with our individual counterparties. Cash flows associated with the settlement of derivative instruments are classified in the same line item as the cash flows of the related hedged item, which is within operating activities in the Statements of Consolidated Cash Flows. Economic Hedges The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as hedging instruments. Year Ended April 30, 2022 2021 2020 Derivative gains (losses) on commodity contracts $ 74.1 $ 101.4 $ (31.4) Derivative gains (losses) on foreign currency exchange contracts 4.2 (8.8) 2.3 Total derivative gains (losses) recognized in cost of products sold $ 78.3 $ 92.6 $ (29.1) 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 net change in cumulative unallocated derivative gains and losses. Year Ended April 30, 2022 2021 2020 Net derivative gains (losses) recognized and classified as unallocated $ 78.3 $ 92.6 $ (29.1) Less: Net derivative gains (losses) reclassified to segment operating profit 101.7 (1.0) (48.7) Change in net cumulative unallocated derivative gains and losses $ (23.4) $ 93.6 $ 19.6 The net cumulative unallocated derivative gains were $37.3 and $60.7 at April 30, 2022 and 2021, respectively. Cash Flow Hedges 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 2018, we terminated a treasury lock concurrent with the pricing of the Senior Notes due December 15, 2027, which was designated as a cash flow hedge and used to manage our exposure to interest rate volatility. The termination resulted in a pre-tax gain of $2.7, which was deferred and included as a component of accumulated other comprehensive income (loss) and is being amortized as a reduction to interest expense over the life of the debt. The following table presents information on the pre-tax gains and losses recognized on all contracts previously designated as cash flow hedges. Year Ended April 30, 2022 2021 2020 Gains (losses) recognized in other comprehensive income (loss) $ — $ — $ (190.7) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense – net (A) (13.7) (13.8) (2.1) Less: Gains (losses) reclassified from accumulated other comprehensive income to other (expense) – net (B) 0.6 — — Change in accumulated other comprehensive income (loss) $ 13.1 $ 13.8 $ (188.6) (A) Interest expense – net, as presented in the Statements of Consolidated Income, was $160.9, $177.1, and $189.2 in 2022, 2021, and 2020, respectively. (B) Other expense – net, as presented in the Statements of Consolidated Income, was $19.1, $37.8, and $7.2 in 2022, 2021, and 2020, respectively. The reclassification is related to the debt extinguishment during 2022, as discussed in Note 7: Debt and Financing Arrangements. Included as a component of accumulated other comprehensive income (loss) at April 30, 2022 and 2021, were deferred net pre-tax losses of $214.2 and $227.3, respectively, related to the terminated interest rate contracts. The related net tax benefit recognized in accumulated other comprehensive income (loss) was $50.3 and $52.5 at April 30, 2022 and 2021, respectively. Approximately $13.5 of the net pre-tax loss will be recognized over the next 12 months related to the terminated interest rate contracts. Fair Value Hedges 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 was recognized over the life of the debt as a reduction of interest expense. As of the second quarter of 2022, we had fully recognized the gain of $53.5, of which $4.0, $8.4, and $8.1 were recognized in 2022, 2021, and 2020, respectively. |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 12 Months Ended |
Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Other Financial Instruments and Fair Value Measurements | Note 10: Other Financial Instruments and Fair Value Measurements Financial instruments, other than derivatives, that potentially subject us to significant concentrations of credit risk consist principally of cash investments, short-term borrowings, and trade receivables. The carrying value of these financial instruments approximates fair value. Our remaining financial instruments, with the exception of long-term debt, are recognized at estimated fair value in the Consolidated Balance Sheets. The following table provides information on the carrying amounts and fair values of our financial instruments. April 30, 2022 April 30, 2021 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 26.6 $ 26.6 $ 31.0 $ 31.0 Derivative financial instruments – net 24.8 24.8 35.8 35.8 Total long-term debt (4,310.6) (3,977.7) (4,669.7) (5,034.5) Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs. Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions. The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Significant Significant Fair Value at April 30, 2022 Marketable securities and other investments: (A) Equity mutual funds $ 5.7 $ — $ — $ 5.7 Municipal obligations — 19.9 — 19.9 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net 23.4 (0.3) — 23.1 Foreign currency exchange contracts – net 0.2 1.5 — 1.7 Total long-term debt (C) (3,977.7) — — (3,977.7) Total financial instruments measured at fair value $ (3,947.4) $ 21.1 $ — $ (3,926.3) Quoted Prices in Significant Significant Fair Value at April 30, 2021 Marketable securities and other investments: (A) Equity mutual funds $ 6.3 $ — $ — $ 6.3 Municipal obligations — 24.4 — 24.4 Money market funds 0.3 — — 0.3 Derivative financial instruments: (B) Commodity contracts – net 39.4 — — 39.4 Foreign currency exchange contracts – net (0.4) (3.2) — (3.6) Total long-term debt (C) (5,034.5) — — (5,034.5) Total financial instruments measured at fair value $ (4,988.9) $ 21.2 $ — $ (4,967.7) (A) Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third-party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of April 30, 2022, our municipal obligations are scheduled to mature as follows: $0.2 in 2023, $1.9 in 2024, $1.8 in 2025, $2.1 in 2026, $4.4 in 2027, and the remaining $9.5 in 2028 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes, which are traded in an active secondary market and valued using quoted prices. For additional information, see Note 7: Debt and Financing Arrangements. We recognized an impairment charge of $150.4 during 2022 related to the Rachael Ray Nutrish brand within the U.S. Retail Pet Foods segment. During 2021, we recognized an impairment charge of $3.8 related to an immaterial trademark within the U.S. Retail Consumer Foods segment, and in 2020, we recognized an impairment charge of $52.4 related to the divested Natural Balance brand within the U.S. Retail Pet Foods segment. These charges were included as noncash charges in our Statements of Consolidated Income. We utilized Level 3 inputs based on management’s best estimates and assumptions to estimate the fair value of the indefinite-lived trademarks. For additional information, see Goodwill and Other Intangible Assets in Note 1: Accounting Policies and Note 6: Goodwill and Other Intangible Assets. |
Leases
Leases | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 11: 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. Because the interest rate implicit in the lease cannot be readily determined for the majority of our leases, 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. As of April 30, 2022, we have entered into a lease commitment related to a commercial building, which will be used for fruit processing, and begin during the first quarter of 2023. The following table sets forth the right-of-use assets and lease liabilities recognized in the Consolidated Balance Sheets. Year Ended April 30, 2022 2021 Operating lease right-of-use assets $ 106.5 $ 142.0 Operating lease liabilities: Current operating lease liabilities $ 40.1 $ 41.1 Noncurrent operating lease liabilities 76.2 112.8 Total operating lease liabilities $ 116.3 $ 153.9 Finance lease right-of-use assets: Machinery and equipment $ 8.1 $ 9.8 Accumulated depreciation (4.3) (5.5) Total property, plant, and equipment $ 3.8 $ 4.3 Finance lease liabilities: Other current liabilities $ 1.4 $ 1.8 Other noncurrent liabilities 2.5 2.5 Total finance lease liabilities $ 3.9 $ 4.3 The following table summarizes the components of lease expense. Year Ended April 30, 2022 2021 2020 Operating lease cost $ 43.8 $ 45.4 $ 51.7 Finance lease cost: Amortization of right-of-use assets 2.0 2.4 2.8 Interest on lease liabilities 0.1 0.1 0.2 Variable lease cost 21.6 23.2 22.9 Short-term lease cost 43.5 37.6 35.2 Sublease income (1.5) (3.7) (4.3) Net lease cost $ 109.5 $ 105.0 $ 108.5 The following table sets forth cash flow and noncash information related to leases. Year Ended April 30, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 45.6 $ 45.7 $ 50.8 Operating cash flows from finance leases 0.1 0.2 0.2 Financing cash flows from finance leases 2.1 2.6 2.8 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 7.2 34.8 57.0 Finance leases 1.8 1.1 2.6 The following table summarizes the maturity of our lease liabilities by fiscal year. April 30, 2022 Operating Leases Finance Leases 2023 $ 42.2 $ 1.4 2024 30.6 1.1 2025 21.6 0.8 2026 18.9 0.4 2027 5.4 0.1 2028 and beyond 2.7 0.2 Total undiscounted minimum lease payments $ 121.4 $ 4.0 Less: Imputed interest 5.1 0.1 Lease liabilities $ 116.3 $ 3.9 The following table sets forth the weighted average remaining lease term and discount rate. Year Ended April 30, 2022 2021 Weighted average remaining lease term (in years): Operating leases 3.6 4.4 Finance leases 3.3 3.1 Weighted average discount rate: Operating leases 2.5 % 2.5 % Finance leases 2.1 % 2.6 % |
Share-Based Payments
Share-Based Payments | 12 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Share-Based Payments | Note 12: Share-Based Payments We provide for equity-based incentives to be awarded to key employees and non-employee directors. Currently, these incentives consist of restricted shares, restricted stock units (which may also be referred to as deferred stock units), performance units, and stock options. During 2022, these awards were administered through the 2020 Equity and Incentive Compensation Plan (the “2020 Plan”), which was approved by our shareholders in August 2020. The previous 2010 Equity and Incentive Compensation Plan (the “2010 Plan”) expired and the 2020 Plan became effective in November 2020, at which time the common shares remaining available for issuance under the 2010 Plan were transferred to the 2020 Plan. During 2021, awards were administered through the 2010 Plan and the 2020 Plan. Awards under these plans may be in the form of stock options, stock appreciation rights, restricted shares, restricted stock units, performance shares, performance units, incentive awards, and other share-based awards, and they may be granted to our non-employee directors, consultants, officers, and other employees. Deferred stock units granted to non-employee directors vest immediately and, along with dividends credited on those deferred stock units, are paid out in the form of common shares upon termination of service as a non-employee director. At April 30, 2022, there were 4,247,728 shares available for future issuance under the 2020 Plan. Under the 2020 Plan, we have the option to settle share-based awards by issuing common shares from treasury, issuing new Company common shares, or issuing a combination of common shares from treasury and new Company common shares. Stock Options: Under the 2020 Plan, we granted 152,971 stock options during 2022, and under the 2010 Plan, we granted 296,619 and 193,831 stock options during 2021 and 2020, respectively. Stock options granted in 2022, 2021, and 2020 vest ratably over a period of three years. The exercise price of all stock options granted was equal to the market value of the shares on the date of grant, and all stock options granted and outstanding have a contractual term of 10 years. The fair value of each stock option is estimated on the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions for stock options granted: 2022 2021 2020 Expected volatility (%) 24.0 % 23.0 % 20.1 % Dividend yield (%) 2.7 % 3.2 % 2.8 % Risk-free interest rate (%) 1.0 % 0.4 % 1.9 % Expected life of stock options (years) 6.0 6.0 6.0 Expected volatility was calculated in accordance with the provisions of FASB ASC 718, Compensation – Stock Compensation , based on consideration of both historical and implied volatilities. The expected life of a stock option represents the period from the grant date through the expected exercise date of the option. This was calculated using a simplified method whereby the midpoint between the vesting date and the end of the contractual term is utilized to compute the expected term. The following table is a summary of our stock option activity. Number of Weighted-Average Outstanding at May 1, 2021 720,083 $ 113.48 Granted 152,971 135.53 Exercised (145,312) 112.22 Outstanding at April 30, 2022 727,742 $ 118.37 Exercisable at April 30, 2022 343,526 $ 115.23 The intrinsic value of a stock option is the amount by which the market value of the underlying stock exceeds the exercise price of the stock option. The total intrinsic value for stock options outstanding and exercisable was $13.5 and $7.5 at April 30, 2022, respectively, with an average remaining contractual term of 7.0 years and 5.4 years, respectively. The total intrinsic value of stock options exercised during 2022, 2021, and 2020 was $3.6, $0.6, and $0.2, respectively. The closing market price of our common stock on the last trading day of 2022 was $136.93 per share. The stock options granted during 2022 have a weighted-average grant date fair value of $22.46 per option. Compensation cost related to stock options is recognized ratably over the service period from the grant date through the end of the requisite service period. During 2022, 2021 and 2020, we recognized compensation cost of $3.0, $2.3, and $1.3, respectively. The tax benefit related to the stock option expense was $0.7, $0.5, and $0.3 for 2022, 2021, and 2020, respectively. As of April 30, 2022, we had unrecognized compensation cost of $3.8 related to the stock options that were granted in 2022, 2021, and 2020. Cash received from stock option exercises was $16.3, $4.5, and $7.1 for the years ended April 30, 2022, 2021, and 2020, respectively. Other Equity Awards: The following table is a summary of our restricted shares, deferred stock units, and performance units. Restricted Weighted- Performance Weighted- Outstanding at May 1, 2021 598,738 $ 116.54 325,453 $ 118.21 Granted 66,514 135.10 171,907 135.53 Vested (179,584) 121.07 — — Forfeited (54,613) 118.71 (34,883) 123.90 Outstanding at April 30, 2022 431,055 $ 117.24 462,477 $ 124.22 The weighted-average grant date fair value of equity awards other than stock options that vested in 2022, 2021, and 2020 was $21.7, $23.1, and $14.7, respectively. The weighted-average grant date fair value of restricted shares, deferred stock units, and performance units is the average of the high and the low share price on the date of grant. The vesting date fair value of equity awards other than stock options that vested in 2022, 2021, and 2020 was $24.0, $19.7, and $14.5, respectively. The following table summarizes the weighted-average fair values of the equity awards granted. Year Ended April 30, Restricted Weighted- Performance Weighted- 2022 66,514 $ 135.10 171,907 $ 135.53 2021 83,188 110.66 194,786 113.70 2020 245,945 121.19 168,212 123.68 |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 13: Income Taxes Income before income taxes is as follows: Year Ended April 30, 2022 2021 2020 Domestic $ 806.0 $ 1,176.6 $ 986.7 Foreign 37.8 (4.7) 40.0 Income before income taxes $ 843.8 $ 1,171.9 $ 1,026.7 The components of the provision for income taxes are as follows: Year Ended April 30, 2022 2021 2020 Current: Federal $ 201.8 $ 251.3 $ 188.7 Foreign 9.2 11.7 8.5 State and local 39.0 46.7 42.4 Deferred: Federal (48.1) (3.3) 7.1 Foreign 0.3 (7.9) 0.6 State and local 9.9 (2.9) (0.1) Total income tax expense (benefit) $ 212.1 $ 295.6 $ 247.2 A reconciliation of the statutory federal income tax rate and the effective income tax rate is as follows: Year Ended April 30, (Percent of Pre-tax Income) 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Sale of the Crisco business — 4.5 — Sale of the Natural Balance business — (3.0) — State and local income taxes 2.6 2.9 3.3 Deferred tax expense from internal restructuring 2.0 — — Other items – net (0.5) (0.2) (0.2) Effective income tax rate 25.1 % 25.2 % 24.1 % Income taxes paid $ 233.0 $ 333.2 $ 227.1 The income tax expense of $212.1 for 2022 includes an unfavorable deferred tax impact, primarily related to an internal legal entity simplification in the third quarter to support multiple work locations for office-based employees and our continued strategic activities. The income tax expense of $295.6 for 2021 includes the permanent tax impacts associated with the sale of the Crisco and Natural Balance businesses. During calendar 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, which had minimal impact to us. We continue to monitor any future legislative actions in response to COVID-19 and other policy initiatives for their respective impacts on our income taxes at the time such legislative changes are enacted. We are a voluntary participant in the Compliance Assurance Process (“CAP”) program offered by the IRS and are currently under a CAP examination for the tax years ended April 30, 2019 through April 30, 2023. The tax years prior to 2019 are no longer subject to U.S. federal tax examination. With limited exceptions, we are no longer subject to examination for state and local jurisdictions for the tax years prior to 2018 and for the tax years prior to 2015 for foreign jurisdictions. Deferred income taxes reflect the tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax reporting. Significant components of our deferred tax assets and liabilities are as follows: April 30, 2022 2021 Deferred tax liabilities: Intangible assets $ 1,303.5 $ 1,347.4 Property, plant, and equipment 174.7 187.9 Leases 21.8 27.4 Other 19.2 16.2 Total deferred tax liabilities $ 1,519.2 $ 1,578.9 Deferred tax assets: Post-employment and other employee benefits $ 66.2 $ 103.6 Tax credit and loss carryforwards 27.8 28.3 Intangible assets 15.9 17.1 Hedging transactions 47.6 43.4 Leases 23.5 29.4 Other 42.3 38.5 Total deferred tax assets $ 223.3 $ 260.3 Valuation allowance (29.9) (30.7) Total deferred tax assets, less allowance $ 193.4 $ 229.6 Net deferred tax liability $ 1,325.8 $ 1,349.3 We evaluate the realizability of deferred tax assets for each of the jurisdictions in which we operate. The total valuation allowance decreased by an immaterial amount during the year. We did not repatriate foreign cash to the U.S. during 2022. We returned $100.0 of foreign cash to the U.S. from Canada during 2021, net of $5.0 of foreign withholding taxes and insignificant U.S. federal and state income taxes. Consistent with the prior year, as of April 30, 2022, we have determined that a portion of our undistributed earnings, in Canada, is not permanently reinvested, resulting in the recognition of an immaterial deferred tax liability. Deferred income taxes have not been provided on approximately $30.0 of the remaining temporary differences of our foreign subsidiaries, primarily Canada, that are determined to be permanently reinvested, the tax effects of which are immaterial. Our unrecognized tax benefits were $6.5, $10.2, and $13.1, of which $5.1, $8.1, and $10.5 would affect the effective income tax rate, if recognized, as of April 30, 2022, 2021, and 2020, respectively. Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an estimated $1.2, primarily as a result of the expiration of statute of limitation periods. A reconciliation of our unrecognized tax benefits is as follows: 2022 2021 2020 Balance at May 1, $ 10.2 $ 13.1 $ 15.0 Increases: Current year tax positions 0.1 0.7 1.4 Prior year tax positions 0.2 — 0.2 Decreases: Expiration of statute of limitations periods 4.0 2.6 3.5 Prior year tax positions — 1.0 — Balance at April 30, $ 6.5 $ 10.2 $ 13.1 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 14: Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2019 $ (35.5) $ (40.4) $ (110.0) $ 4.1 $ (181.8) Reclassification adjustments — 2.1 7.4 — 9.5 Current period credit (charge) (15.0) (190.7) (54.8) (0.4) (260.9) Income tax benefit (expense) — 43.4 10.7 0.1 54.2 Balance at April 30, 2020 $ (50.5) $ (185.6) $ (146.7) $ 3.8 $ (379.0) Reclassification adjustments — 13.8 46.3 — 60.1 Current period credit (charge) 41.5 — 18.9 (0.1) 60.3 Income tax benefit (expense) — (3.0) (15.8) — (18.8) Balance at April 30, 2021 $ (9.0) $ (174.8) $ (97.3) $ 3.7 $ (277.4) Reclassification adjustments — 13.1 17.6 — 30.7 Current period credit (charge) (12.1) — 38.1 (2.5) 23.5 Income tax benefit (expense) — (2.2) (12.6) 0.6 (14.2) Balance at April 30, 2022 $ (21.1) $ (163.9) $ (54.2) $ 1.8 $ (237.4) (A) The reclassification is composed of deferred gains (losses) related to terminated interest rate contracts. During 2022, 2021, and 2020, the reclassification was primarily from accumulated other comprehensive income (loss) to interest expense. In addition, during 2022, a portion of the reclassification was to other income (expense) – net, which was driven by the prepayment of the Senior Notes due March 15, 2022. The current period charge in 2020 relates to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: Derivative Financial Instruments. (B) 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 in 2021 primarily includes the impact of the nonrecurring settlement charges related to the Canadian buy-out contract. For additional information, see Note 8: Pensions and Other Postretirement Benefits |
Contingencies
Contingencies | 12 Months Ended |
Apr. 30, 2022 | |
Loss Contingency [Abstract] | |
Contingencies | Note 15: Contingencies We, like other food manufacturers, are from time to time subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. We are currently a defendant in a variety of such legal proceedings, including certain lawsuits related to the alleged price-fixing of shelf stable tuna products prior to 2011 by a business previously owned by, but divested prior to our acquisition of, Big Heart, the significant majority of which were settled and paid during 2019 and 2020. 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 April 30, 2022. 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 CERT v. Brad Barry LLC, et al., which alleges that we, in addition to the other 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 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, 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 appealed the ruling in November 2020 to the California Court of Appeals for the Second Appellate District, which is currently pending. We are also defendants in a series of putative class action lawsuits that were originally filed in federal courts in California, Florida, Illinois, Missouri, New York, Texas, Washington, and Washington D.C. but have been transferred to the United States District Court for the Western District of Missouri for coordinated pre-trial proceedings. The plaintiffs 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. 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 April 30, 2022, 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. Product Recall: Subsequent to April 30, 2022, we initiated a voluntary recall of select Jif peanut butter products produced at our Lexington, Kentucky, facility and sold primarily in the U.S., due to potential salmonella contamination. At that time, we also suspended the manufacturing of Jif peanut butter products at the Lexington facility. No other products produced at our other facilities were affected by this recall. As a result, and in accordance with U.S. GAAP, we recorded reserves of $52.3 in our consolidated financial statements as of April 30, 2022, within our U.S. Retail Consumer Foods segment, which was inclusive of unsaleable inventory as of April 30, 2022, as well as estimated customer returns and consumer refunds related to net sales in 2022. We anticipate these costs will be recovered by insurance, and as a result, an insurance receivable of $49.8, net of the deductible, was also recorded as of April 30, 2022. On June 10, 2022, we announced our plans to resume manufacturing Jif peanut butter products at our Lexington facility. Further, our Memphis, Tennessee, facility was not affected by the recall and has continued to manufacture Jif peanut butter products. However, we temporarily paused shipments from the Memphis facility to eliminate confusion while customers cleared their shelves of potentially impacted products manufactured at the Lexington facility. We will resume shipping from both the Lexington and Memphis facilities and are partnering with retailers to restock Jif peanut butter products as soon as possible. Based on progress to date, we believe this matter will be substantially resolved during the first quarter of 2023. Based on our best estimates, we anticipate an unfavorable pre-tax impact of approximately $125.0 in 2023, net of the remaining anticipated insurance recoveries, primarily related to the estimated impact of manufacturing downtime, customer returns and penalties, and unsaleable inventory, as well as other recall related costs. The recall will primarily impact our U.S. Retail Consumer Foods segment. Our ultimate loss from the Jif peanut butter |
Common Shares
Common Shares | 12 Months Ended |
Apr. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Common Shares | Note 16: Common Shares Voting: The Amended Articles of Incorporation (“Articles”) provide that each holder of a common share outstanding is entitled to one vote on each matter submitted to a vote of the shareholders, except for the following specific matters: • any matter that relates to or would result in the dissolution or liquidation of the Company; • the adoption of any amendment to the Articles or Amended Regulations, or the adoption of amended Articles, other than the adoption of any amendment or amended Articles that increases the number of votes to which holders of our common shares are entitled or expands the matters to which time-phased voting applies; • any proposal or other action to be taken by our shareholders relating to any successor plan to the Rights Agreement, dated as of May 20, 2009, between the Company and Computershare Trust Company, N.A, which expired on June 25, 2018; • any matter relating to any stock option plan, stock purchase plan, executive compensation plan, executive benefit plan, or other similar plan, arrangement, or agreement; • the adoption of any agreement or plan of or for the merger, consolidation, or majority share acquisition of us or any of our subsidiaries with or into any other person, whether domestic or foreign, corporate or noncorporate, or the authorization of the lease, sale, exchange, transfer, or other disposition of all, or substantially all, of our assets; • any matter submitted to our shareholders pursuant to Article Fifth (which relates to procedures applicable to certain business combinations) or Article Seventh (which relates to procedures applicable to certain proposed acquisitions of specified percentages of our outstanding common shares) of the Articles, as they may be further amended, or any issuance of our common shares for which shareholder approval is required by applicable stock exchange rules; and • any matter relating to the issuance of our common shares or the repurchase of our common shares that the Board determines is required or appropriate to be submitted to our shareholders under the Ohio Revised Code or applicable stock exchange rules. On the matters listed above, common shares are entitled to 10 votes per share if they meet the requirements set forth in the Articles. Common shares which would be entitled to 10 votes per share must meet one of the following criteria: • common shares for which there has not been a change in beneficial ownership in the past four years; or • common shares received through our various equity plans that have not been sold or otherwise transferred. In the event of a change in beneficial ownership, the new owner of that common share will be entitled to only one vote with respect to that share on all matters until four years pass without a further change in beneficial ownership of the share. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The consolidated financial statements include the accounts of the Company, its wholly-owned subsidiaries, and its majority-owned investments, if any. Intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires that we make certain estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant estimates in these consolidated financial statements include, among others, estimates of future cash flows associated with assets, potential asset impairments, useful lives and residual values of long-lived assets used in determining depreciation and amortization, net realizable value of inventories, accruals for trade marketing and merchandising programs, income taxes, and discount rates and other assumptions used in determining defined benefit pension and other postretirement benefit expenses. Actual results could differ from these estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents: We consider all short-term, highly-liquid investments with an original maturity of three months or less when purchased to be cash equivalents. Based on the short-term nature of these assets, carrying value approximates fair value. Cash equivalents within cash and cash equivalents in the Consolidated Balance Sheets were $116.3 and $294.5 at April 30, 2022 and 2021, respectively. |
Revenue Recognition | Revenue Recognition: Most of our revenue is derived from the sale of food and beverage products to food retailers, online retailers, and foodservice distributors and operators. We recognize revenue when obligations under the terms of a contract with a customer have been satisfied. This occurs when control of our products transfers, which typically takes place upon delivery to or pick up by the customer. Amounts due from our customers are classified as trade receivables in the Consolidated Balance Sheets and require payment on a short-term basis. Transaction price is based on the list price included in our published price list, which is then reduced by the estimated impact of variable consideration, such as trade marketing and merchandising programs, discounts, unsaleable product allowances, returns, and similar items, in the same period that the revenue is recognized. To estimate the impact of these costs, we consider customer contract provisions, historical data, and our current expectations. We have trade marketing and merchandising programs that consist of various promotional activities conducted through retailers, distributors, or directly with consumers, including in-store display and product placement programs, price discounts, coupons, and other similar activities. For additional discussion on these programs, refer to “Critical Accounting Estimates and Policies” within Management’s Discussion and Analysis of Financial Condition and Results of Operations. For revenue disaggregated by reportable segment, geographical region, and product category, see Note 4: Reportable Segments. |
Shipping and Handling Costs | Shipping and Handling Costs: Transportation costs included in cost of products sold relate to the costs incurred to ship our products. Distribution costs are included in SD&A expenses and primarily relate to the warehousing costs incurred to store our products. Total distribution costs recorded within SD&A were $294.1, $281.8, and $286.4 in 2022, 2021, and 2020, respectively. |
Advertising Expense | Advertising Expense: Advertising costs are expensed as incurred. Advertising expense was $176.5, $224.4, and $198.6 in 2022, 2021, and 2020, respectively. |
Research and Development Costs | Research and Development Costs: Research and development (“R&D”) costs are expensed as incurred and are included in SD&A in the Statements of Consolidated Income. R&D costs include expenditures for new and existing product and manufacturing process innovations, which are comprised primarily of internal salaries and wages, consulting, testing, and other supplies attributable to time spent on R&D activities. Other costs include the depreciation and maintenance of research facilities. Total R&D expense was $48.8 in 2022 and $57.7 in both 2021 and 2020. |
Share-Based Payments | Share-Based Payments: Share-based compensation expense, including stock options, is recognized on a straight-line basis over the requisite service period, and generally vest over a period of 1 to 3 years. The following table summarizes amounts related to share-based payments. Year Ended April 30, 2022 2021 2020 Share-based compensation expense included in SD&A $ 23.7 $ 28.3 $ 26.4 Share-based compensation expense included in other special project costs (1.4) 0.4 0.4 Total share-based compensation expense $ 22.3 $ 28.7 $ 26.8 Related income tax benefit $ 5.3 $ 6.6 $ 6.4 As of April 30, 2022, total unrecognized share-based compensation cost related to nonvested share-based awards, including stock options, was $36.3. The weighted-average period over which this amount is expected to be recognized is 1.9 years. Realized excess tax benefits and tax deficiencies are presented in the Statements of Consolidated Cash Flows as an operating activity and are recognized within income taxes in the Statements of Consolidated Income. In 2022 and 2020, the excess tax benefits realized upon exercise or vesting of share-based compensation were $1.1 and $0.9, respectively, and in 2021, there were tax deficiencies realized of $0.1. For additional discussion on share-based compensation expense, see Note 12: Share-Based Payments. |
Earnings Per Share | Earnings Per Share: Earnings per share is computed in accordance with FASB ASC 260, Earnings Per Share . As required by ASC 260, we computed net income per common share (“basic earnings per share”) under the two-class method for 2022, 2021, and 2020, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during the periods. We compute net income per common share – assuming dilution (“diluted earnings per share”) under either the treasury method or the two-class method, dependent on which is more dilutive. As a result, diluted earnings per share for 2022 was computed under the treasury stock method, and the two-class method was applied in computing diluted earnings per share for 2021 and 2020. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period. Under the two-class method, net income available to common and participating common shareholders is reduced by the net income allocated to participating securities, which is equal to the amount of dividends declared in the current period and by the contractual amount of dividends that must be paid for the current period related to participating securities. Under the treasury stock method, the diluted earnings per share calculation includes potential common shares assumed to be issued, which reflects the potential dilution that would occur if any outstanding options or warrants were exercised or restricted stock becomes vested, and includes the “if converted” method for participating securities if the effect is dilutive. For additional information on the earnings per share calculations, see Note 5: Earnings Per Share. |
Defined Contribution Plans | Defined Contribution Plans: We offer employee savings plans for domestic and Canadian employees. Our contributions under these plans are based on a specified percentage of employee contributions. Charges to operations for these plans in 2022, 2021, and 2020 were $40.9, $41.2, and $39.7, respectively. For information on our defined benefit plans, see Note 8: Pensions and Other Postretirement Benefits. |
Income Taxes | Income Taxes: We account for income taxes using the liability method. Accordingly, deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted income tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in the applicable tax rate is recognized in income or expense in the period that the change is enacted. A tax benefit is recognized when it is more likely than not to be sustained. A valuation allowance is established when it is more likely than not that all or a portion of a deferred tax asset will not be realized. We account for the financial statement recognition and measurement criteria of a tax position taken or expected to be taken in a tax return under FASB ASC 740, Income Taxes . ASC 740 also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, and disclosure. In accordance with the requirements of ASC 740, uncertain tax |
Trade Receivables | Trade Receivables: In the normal course of business, we extend credit to customers. Trade receivables, less credit losses, reflects the net realizable value of receivables and approximates fair value. We account for trade receivables, less credit losses, under Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses |
Inventories | Inventories: Inventories are stated at the lower of cost or market, with market being defined as net realizable value, less costs to sell. Cost for all inventories is determined using the first-in, first-out method applied on a consistent basis. The cost of finished products and work-in-process inventory includes materials, direct labor, and overhead. Work-in-process is included in finished products in the Consolidated Balance Sheets and was $65.8 and $63.8 at April 30, 2022 and 2021, respectively. |
Derivative Financial Instruments | Derivative Financial Instruments: We account for derivative instruments in accordance with FASB ASC 815, Derivatives and Hedging , which requires all derivative instruments to be recognized at fair value in the financial statements, regardless of the purpose or intent for holding them. We do not qualify commodity derivatives or instruments used to manage foreign currency exchange exposures for hedge accounting treatment, and, as a result, the derivative gains and losses are immediately recognized in earnings. Although we do not perform the assessments required to achieve hedge accounting for derivative positions, we believe all of our derivatives are economic hedges of our risk exposure. The exposures hedged have a high inverse correlation to price changes of the derivative instrument. Thus, we would expect that over time any gain or loss in the estimated fair value of the derivatives would generally be offset by an increase or decrease in the estimated fair value of the underlying exposures. We utilize derivative instruments to manage interest rate risk associated with anticipated debt transactions, as well as to manage changes in the fair value of our long-term debt. At the inception of 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 typically deferred and included as a component of accumulated other comprehensive income (loss) and reclassified to interest expense in the period during which the hedged transaction affects earnings. If the contract is designated as a fair value hedge, the contract is recognized at fair value on the balance sheet, and changes in the fair value are recognized in interest expense. Generally, changes in the fair value of the contract are equal to changes in the fair value of the underlying debt and have no net impact on earnings. |
Property, Plant, and Equipment | Property, Plant, and Equipment: Property, plant, and equipment is recognized at cost and is depreciated on a straight-line basis over the estimated useful life of the asset (3 to 20 years for machinery and equipment, 1 to 7 years for capitalized software costs related to software that we have purchased or has been licensed to us, and 5 to 40 years for buildings, fixtures, and improvements). We lease certain land, buildings, and equipment for varying periods of time, with renewal options. Lease expense in 2022, 2021, and 2020 totaled $111.0, $108.7, and $112.8, respectively. In accordance with FASB ASC 360, Property, Plant, and Equipment , long-lived assets, other than goodwill and other indefinite-lived intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of the assets to future net undiscounted cash flows estimated to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is the amount by which the carrying amount exceeds |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets: Goodwill is the excess of the purchase price paid over the estimated fair value of the net assets of a business acquired. In accordance with FASB ASC 350, Intangibles – Goodwill and Other, goodwill and other indefinite-lived intangible assets are not amortized but are reviewed at least annually for impairment. We conduct our annual test for impairment of goodwill and other indefinite-lived intangible assets as of February 1 of each year. A discounted cash flow valuation technique is utilized to estimate the fair value of our reporting units and indefinite-lived intangible assets. We also use a market-based approach to estimate the fair value of our reporting units. The discount rates utilized in the cash flow analyses are developed using a weighted-average cost of capital methodology. In addition to the annual test, we test for impairment if events or circumstances occur that would more likely than not reduce the fair value of a reporting unit or an indefinite-lived intangible asset below its carrying value. Finite-lived intangible assets are amortized on a straight-line basis over their estimated useful lives, which are evaluated on an annual basis. For additional information, see Note 6: Goodwill and Other Intangible Assets. |
Marketable Securities and Other Investments | Marketable Securities and Other Investments: We maintain funds for the payment of benefits associated with nonqualified retirement plans. These funds include investments considered to be available-for-sale marketable securities. At April 30, 2022 and 2021, the fair value of these investments was $26.6 and $31.0, respectively, and was included in other noncurrent assets in the Consolidated Balance Sheets. Included in accumulated other comprehensive income (loss) at April 30, 2022 and 2021, were unrealized pre-tax gains of $2.4 and $4.9, respectively. |
Equity Method Investments | Equity Method Investments: Investments in common stock of entities other than our consolidated subsidiaries are accounted for under the equity method in accordance with FASB ASC 323, Investments – Equity Method and Joint Ventures . Under the equity method, the initial investment is recorded at cost, and the investment is subsequently adjusted for its proportionate share of earnings or losses, including consideration of basis differences resulting from the difference between the initial carrying amount of the investment and the underlying equity in net assets. The difference between the carrying amount of the investment and the underlying equity in net assets is primarily attributable to goodwill and other intangible assets. We have a 20 percent equity interest in Mountain Country Foods, LLC, and approximately 42 percent equity interest in Numi, Inc. The carrying amount of these investments is included in other noncurrent assets in the Consolidated Balance Sheets. The investments did not have a material impact on the consolidated financial statements or the respective reportable segment to which they relate for the years ended April 30, 2022 and 2021. |
Supplier Financing Program | Supplier Financing Program: During 2020, we entered into an agreement with a third-party administrator to provide an accounts payable tracking system and facilitate a supplier financing program which allows participating suppliers the ability to monitor and voluntarily elect to sell our payment obligations to a designated third-party financial institution. Participating suppliers can sell one or more of our payment obligations at their sole discretion, and our rights and obligations to our suppliers are not impacted. We have no economic interest in a supplier’s decision to enter into these agreements. Our obligations to our suppliers, including amounts due and scheduled payment terms, are not impacted by our suppliers’ decisions to sell amounts under these arrangements. However, our right to offset balances due from suppliers against our payment obligations is restricted by the agreement for those payment obligations that have been sold by our suppliers. The payment of these obligations is included in cash provided by operating activities in the Statements of Consolidated Cash Flows. Included in accounts payable in the Consolidated Balance Sheets as of April 30, 2022 and 2021 were $314.3 and $304.2 of outstanding payment obligations, respectively, that were elected and sold to a financial institution by participating suppliers. |
Foreign Currency Translation | Foreign Currency Translation: Assets and liabilities of foreign subsidiaries are translated using the exchange rates in effect at the balance sheet dates, while income and expenses are translated using average rates throughout the periods. Translation adjustments are reported as a component of shareholders’ equity in accumulated other comprehensive income (loss). Included in accumulated other comprehensive income (loss) at April 30, 2022 and 2021, were foreign currency losses of $21.1 and $9.0, respectively. |
Recently Issued Accounting Standards | Recently Issued Accounting Standards: In March 2022, the SEC issued the proposed rule under SEC Release No. 33-11042, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize the climate-related disclosures provided by public companies. This update will require the disclosure of greenhouse gas emissions, climate-related targets and goals, how the Board and management oversee climate-related risks, and Scope 1 and 2 emissions, which will be subject to third-party assurance. As of April 30, 2022, these amendments were not adopted by the SEC; however, we anticipate that the adoption of these amendments will have a material impact on our financial statements and disclosures. In November 2020, 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 are part of the SEC’s broader disclosure effectiveness initiative and reflect a principles-based, registrant-specific approach to disclosures, intended to improve the content and simplify compliance for registrants. During 2021, we early adopted certain updates to section 301, Selected Financial Data, and 302, Supplementary Financial Information . As required, we adopted the remaining amendments during 2022, which did not have a material impact on our financial statements and disclosures. In December 2019, the FASB issued 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 was effective for us on May 1, 2021. The accounting guidance for franchise taxes and foreign investments was adopted on a modified retrospective basis and all other applicable provisions were adopted on a prospective basis, as required by ASU 2019-12. The adoption of this ASU did not have a material impact on our financial statements and disclosures. |
Risks and Uncertainties | Risks and Uncertainties: The raw materials used in each of our segments are primarily commodities, agricultural-based products, and packaging materials. The principal packaging materials we use are plastic, glass, metal cans, caps, carton board, and corrugate. Green coffee, peanuts, protein meals, oils and fats, grains, sweeteners, fruit, and other ingredients are obtained from various suppliers. The availability, quality, and cost of many of these commodities have fluctuated, and may continue to fluctuate over time, partially driven by COVID-19. Green coffee, along with certain other raw materials, is sourced solely from foreign countries and its supply and price are subject to high volatility due to factors such as weather, global supply and demand, plant disease, investor speculation, and political and economic conditions in the source countries. Raw materials are generally available from numerous sources, although we have elected to source certain plastic packaging materials and finished goods, such as K-Cup ® pods, our Pup-Peroni dog snacks, and liquid coffee, from single sources of supply pursuant to long-term contracts. While availability may vary from year-to-year, we believe that we will continue to be able to obtain adequate supplies and that alternatives to single-sourced materials are available. We have not historically encountered significant shortages of key raw materials. We consider our relationships with key raw material suppliers to be in good standing. We have consolidated production capacity at a single manufacturing site for certain products, including substantially all of our coffee, Milk-Bone dog snacks, and fruit spreads. Although steps are taken at all of our manufacturing sites to reduce the likelihood of a production disruption, an interruption at a single manufacturing site would result in a reduction or elimination of the availability of some of our products for a period of time. Of our full-time employees, 26 percent are covered by union contracts at eight manufacturing locations. The contracts vary in term depending on location, with two contracts expiring in 2023, representing 9 percent of our total employees. We insure our business and assets in each country against insurable risks, to the extent that we deem appropriate, based upon an analysis of the relative risks and costs. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of share-based payments | The following table summarizes amounts related to share-based payments. Year Ended April 30, 2022 2021 2020 Share-based compensation expense included in SD&A $ 23.7 $ 28.3 $ 26.4 Share-based compensation expense included in other special project costs (1.4) 0.4 0.4 Total share-based compensation expense $ 22.3 $ 28.7 $ 26.8 Related income tax benefit $ 5.3 $ 6.6 $ 6.4 |
Integration and Restructuring_2
Integration and Restructuring Costs (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Integration Costs | The following table summarizes our integration costs incurred related to the Ainsworth acquisition. 2020 Total Costs Employee-related costs $ 2.4 $ 17.9 Other transition and termination costs 14.1 30.7 Total integration costs $ 16.5 $ 48.6 |
Restructuring Costs | The following table summarizes our restructuring costs incurred related to the restructuring program. 2022 2021 Total Costs Employee-related costs $ 6.3 $ 17.3 $ 23.6 Other transition and termination costs 22.2 6.8 29.0 Total restructuring costs $ 28.5 $ 24.1 $ 52.6 |
Divestitures (Tables)
Divestitures (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
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. April 30, 2022 Natural Beverage and Grains Private Label Dry Pet Food Assets disposed: Inventories $ 28.3 $ 19.0 Other current assets 0.5 — Property, plant, and equipment – net 28.1 31.1 Operating lease right-of-use assets 0.4 0.1 Other intangible assets – net 13.6 — Total assets disposed $ 70.9 $ 50.2 Liabilities disposed: Current operating lease liabilities $ 0.3 $ 0.1 Noncurrent operating lease liabilities 0.1 — Other noncurrent liabilities 0.1 — Total liabilities disposed 0.5 0.1 Net assets disposed $ 70.4 $ 50.1 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Segment Reporting [Abstract] | |
Income, total assets, depreciation, amortization, impairment, and total additions to property plant and equipment by segment | The following table reconciles segment profit to income before income taxes and presents total assets; total depreciation, amortization, and impairment charges; and total additions to property, plant, and equipment by segment. Year Ended April 30, 2022 2021 2020 Net sales: U.S. Retail Pet Foods $ 2,764.3 $ 2,844.5 $ 2,869.5 U.S. Retail Coffee 2,497.3 2,374.6 2,149.5 U.S. Retail Consumer Foods 1,707.2 1,835.7 1,731.7 International and Away From Home 1,030.1 947.9 1,050.3 Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 Segment profit: U.S. Retail Pet Foods $ 395.9 $ 487.0 $ 552.7 U.S. Retail Coffee 736.7 769.1 691.0 U.S. Retail Consumer Foods 424.2 472.5 389.7 International and Away From Home 142.0 124.1 173.4 Total segment profit $ 1,698.8 $ 1,852.7 $ 1,806.8 Amortization (223.6) (233.0) (236.3) Other intangible assets impairment charges (150.4) (3.8) (52.4) Gain on divestitures – net 9.6 25.3 — Interest expense – net (160.9) (177.1) (189.2) Change in net cumulative unallocated derivative gains and losses (23.4) 93.6 19.6 Cost of products sold – special project costs (A) (20.5) (3.4) — Other special project costs (A) (8.0) (20.7) (16.5) Corporate administrative expenses (258.7) (323.9) (298.1) Other income (expense) – net (19.1) (37.8) (7.2) Income before income taxes $ 843.8 $ 1,171.9 $ 1,026.7 Assets: U.S. Retail Pet Foods $ 7,167.4 $ 7,480.8 $ 7,731.4 U.S. Retail Coffee 4,891.8 4,793.9 4,787.4 U.S. Retail Consumer Foods 2,692.1 2,553.4 2,873.1 International and Away From Home 973.9 1,013.8 1,048.0 Unallocated (B) 329.8 442.3 530.5 Total assets $ 16,055.0 $ 16,284.2 $ 16,970.4 Depreciation, amortization, and impairment charges: U.S. Retail Pet Foods $ 342.8 $ 194.8 $ 243.0 U.S. Retail Coffee 100.2 96.7 96.4 U.S. Retail Consumer Foods 64.6 75.4 72.5 International and Away From Home 46.2 50.2 51.9 Unallocated (C) 55.7 39.2 35.1 Total depreciation, amortization, and impairment charges $ 609.5 $ 456.3 $ 498.9 Additions to property, plant, and equipment: U.S. Retail Pet Foods $ 74.0 $ 72.4 $ 60.1 U.S. Retail Coffee 49.8 42.5 62.4 U.S. Retail Consumer Foods 274.8 167.4 107.7 International and Away From Home 18.9 24.4 39.1 Total additions to property, plant, and equipment $ 417.5 $ 306.7 $ 269.3 (A) Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs in the Statements of Consolidated Income. For more information, see Note 2: Integration and Restructuring Costs. (B) Primarily represents unallocated cash and cash equivalents and corporate-held investments. (C) Primarily represents unallocated corporate administrative expenses, mainly consisting of depreciation and software amortization. |
Geographical information | The following table presents certain geographical information. Year Ended April 30, 2022 2021 2020 Net sales: United States $ 7,469.6 $ 7,448.3 $ 7,247.9 International: Canada $ 439.6 $ 443.6 $ 445.3 All other international 89.7 110.8 107.8 Total international $ 529.3 $ 554.4 $ 553.1 Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 Assets: United States $ 15,653.5 $ 15,879.7 $ 16,547.6 International: Canada $ 399.8 $ 402.7 $ 421.3 All other international 1.7 1.8 1.5 Total international $ 401.5 $ 404.5 $ 422.8 Total assets $ 16,055.0 $ 16,284.2 $ 16,970.4 Long-lived assets (excluding goodwill and other intangible assets): United States $ 2,331.2 $ 2,220.6 $ 2,209.9 International: Canada $ 45.7 $ 57.1 $ 54.3 All other international — — — Total international $ 45.7 $ 57.1 $ 54.3 Total long-lived assets (excluding goodwill and other intangible assets) $ 2,376.9 $ 2,277.7 $ 2,264.2 |
Product category information | The following table presents product category information. Year Ended April 30, 2022 2021 2020 Primary Reportable Segment (A) Coffee $ 2,804.7 $ 2,639.7 $ 2,475.4 U.S. Retail Coffee Cat food 969.9 918.4 869.2 U.S. Retail Pet Foods Pet snacks 944.9 907.3 849.7 U.S. Retail Pet Foods Dog food 926.5 1,090.8 1,217.6 U.S. Retail Pet Foods Peanut butter 801.1 796.1 730.6 U.S. Retail Consumer Foods Frozen handheld 510.7 430.3 365.0 U.S. Retail Consumer Foods Fruit spreads 386.5 385.9 370.3 U.S. Retail Consumer Foods Portion control 158.2 120.5 153.3 Other (B) Juices and beverages 106.3 139.0 125.7 U.S. Retail Consumer Foods Baking mixes and ingredients 85.5 93.5 89.9 Other (B) Shortening and oils — 193.9 262.3 U.S. Retail Consumer Foods (C) Other 304.6 287.3 292.0 Other (B) Total net sales $ 7,998.9 $ 8,002.7 $ 7,801.0 (A) The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. (B) Represents the combined International and Away From Home operating segments. (C) During 2021 and 2020, the net sales within this category were related to the divested Crisco |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of basis earnings per common share under two-class method | The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method. Year Ended April 30, 2022 2021 2020 Net income $ 631.7 $ 876.3 $ 779.5 Less: Net income allocated to participating securities 1.8 3.7 4.4 Net income allocated to common stockholders $ 629.9 $ 872.6 $ 775.1 Weighted-average common shares outstanding 107.9 112.0 113.4 Add: Dilutive effect of stock options — — — Weighted-average common shares outstanding – assuming dilution 107.9 112.0 113.4 Net income per common share $ 5.84 $ 7.79 $ 6.84 Net income per common share – assuming dilution $ 5.84 $ 7.79 $ 6.84 |
Computation of diluted earnings per common share under two-class method | The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method. Year Ended April 30, 2022 2021 2020 Net income $ 631.7 $ 876.3 $ 779.5 Less: Net income allocated to participating securities 1.8 3.7 4.4 Net income allocated to common stockholders $ 629.9 $ 872.6 $ 775.1 Weighted-average common shares outstanding 107.9 112.0 113.4 Add: Dilutive effect of stock options — — — Weighted-average common shares outstanding – assuming dilution 107.9 112.0 113.4 Net income per common share $ 5.84 $ 7.79 $ 6.84 Net income per common share – assuming dilution $ 5.84 $ 7.79 $ 6.84 |
Computation of earnings per common share, basic and diluted | The following table sets forth the computation of diluted earnings per share under the treasury stock method for the year ended April 30, 2022. Net income $ 631.7 Weighted-average common shares outstanding – assuming dilution: Weighted-average common shares outstanding 107.9 Add: Dilutive effect of stock options — Add: Dilutive effect of restricted shares, restricted stock units, and performance units 0.5 Weighted-average common shares outstanding – assuming dilution 108.4 Net income per common share – assuming dilution $ 5.83 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in the Company's goodwill | The following table summarizes the changes in our goodwill. 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) — — — 20.8 20.8 Balance at April 30, 2021 $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 417.0 $ 6,023.6 Other (A) — — — (7.8) (7.8) Balance at April 30, 2022 (B) $ 2,368.2 $ 2,090.9 $ 1,147.5 $ 409.2 $ 6,015.8 (A) The amounts classified as other represent foreign currency exchange adjustments. |
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. April 30, 2022 April 30, 2021 Acquisition Accumulated Net Acquisition Accumulated Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 4,450.0 $ 1,724.8 $ 2,725.2 $ 4,471.1 $ 1,545.0 $ 2,926.1 Patents and technology 167.6 155.0 12.6 168.5 147.3 21.2 Trademarks 661.7 354.1 307.6 364.5 186.7 177.8 Total intangible assets subject to amortization $ 5,279.3 $ 2,233.9 $ 3,045.4 $ 5,004.1 $ 1,879.0 $ 3,125.1 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 2,833.1 $ 226.3 $ 2,606.8 $ 3,141.1 $ 225.0 $ 2,916.1 Total other intangible assets $ 8,112.4 $ 2,460.2 $ 5,652.2 $ 8,145.2 $ 2,104.0 $ 6,041.2 |
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. April 30, 2022 April 30, 2021 Acquisition Accumulated Net Acquisition Accumulated Net Finite-lived intangible assets subject to amortization: Customer and contractual relationships $ 4,450.0 $ 1,724.8 $ 2,725.2 $ 4,471.1 $ 1,545.0 $ 2,926.1 Patents and technology 167.6 155.0 12.6 168.5 147.3 21.2 Trademarks 661.7 354.1 307.6 364.5 186.7 177.8 Total intangible assets subject to amortization $ 5,279.3 $ 2,233.9 $ 3,045.4 $ 5,004.1 $ 1,879.0 $ 3,125.1 Indefinite-lived intangible assets not subject to amortization: Trademarks $ 2,833.1 $ 226.3 $ 2,606.8 $ 3,141.1 $ 225.0 $ 2,916.1 Total other intangible assets $ 8,112.4 $ 2,460.2 $ 5,652.2 $ 8,145.2 $ 2,104.0 $ 6,041.2 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | The following table summarizes the components of our long-term debt. April 30, 2022 April 30, 2021 Principal Carrying Amount (A) Principal Carrying Amount (A) 3.50% Senior Notes due October 15, 2021 $ — $ — $ 750.0 $ 753.5 3.00% Senior Notes due March 15, 2022 — — 400.0 399.4 3.50% Senior Notes due March 15, 2025 1,000.0 997.6 1,000.0 996.8 3.38% Senior Notes due December 15, 2027 500.0 497.6 500.0 497.1 2.38% Senior Notes due March 15, 2030 500.0 496.2 500.0 495.7 2.13% Senior Notes due March 15, 2032 500.0 493.8 — — 4.25% Senior Notes due March 15, 2035 650.0 644.7 650.0 644.3 2.75% Senior Notes due September 15, 2041 300.0 297.1 — — 4.38% Senior Notes due March 15, 2045 600.0 587.6 600.0 587.1 3.55% Senior Notes due March 15, 2050 300.0 296.0 300.0 295.8 Total long-term debt $ 4,350.0 $ 4,310.6 $ 4,700.0 $ 4,669.7 Current portion of long-term debt — — 1,150.0 1,152.9 Total long-term debt, less current portion $ 4,350.0 $ 4,310.6 $ 3,550.0 $ 3,516.8 (A) Represents the carrying amount included in the 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) | 12 Months Ended |
Apr. 30, 2022 | |
Retirement Benefits [Abstract] | |
Net periodic benefit cost | The following table summarizes the components of net periodic benefit cost and the change in accumulated other comprehensive income (loss) related to the defined benefit pension and other postretirement plans. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2020 2022 2021 2020 Service cost $ 1.7 $ 1.8 $ 1.6 $ 1.2 $ 1.8 $ 1.8 Interest cost 12.4 14.4 20.9 1.3 1.8 2.3 Expected return on plan assets (15.9) (19.3) (24.1) — — — Amortization of prior service cost (credit) 0.9 0.9 0.9 (0.6) (1.0) (1.1) Amortization of net actuarial loss (gain) 6.9 10.9 7.9 (0.4) — (0.3) Settlement loss (gain) 10.8 35.5 0.1 — — — Termination benefit cost — — 0.2 — — — Net periodic benefit cost $ 16.8 $ 44.2 $ 7.5 $ 1.5 $ 2.6 $ 2.7 |
Net change for the year in accumulated OCI before taxes | Other changes in plan assets and benefit liabilities recognized in Prior service credit (cost) arising during the year $ (0.4) $ — $ — $ — $ — $ — Net actuarial gain (loss) arising during the year 30.4 14.3 (51.6) 8.2 5.9 (4.4) Amortization of prior service cost (credit) 0.9 0.9 0.9 (0.6) (1.0) (1.1) Amortization of net actuarial loss (gain) 6.9 10.9 7.9 (0.4) — (0.3) Settlement loss (gain) 10.8 35.5 0.1 — — — Foreign currency translation — (1.5) 1.1 (0.1) 0.2 — Net change for year $ 48.6 $ 60.1 $ (41.6) $ 7.1 $ 5.1 $ (5.8) |
Weighted-average assumptions used in determining net periodic benefit costs | Weighted-average assumptions used in determining net periodic benefit costs: U.S. plans: Discount rate used to determine benefit obligation 3.13 % 3.05 % 3.99 % 2.97 % 2.98 % 3.91 % Discount rate used to determine service cost 3.53 3.34 4.20 3.20 3.18 4.07 Discount rate used to determine interest cost 2.40 2.54 3.61 2.07 2.42 3.47 Expected return on plan assets 4.59 4.96 5.28 — — — Rate of compensation increase 3.55 3.58 3.56 — — — Canadian plans: Discount rate used to determine benefit obligation 2.15 % 2.95 % 3.21 % 3.03 % 2.93 % 3.19 % Discount rate used to determine service cost — 3.06 3.29 3.52 3.19 3.44 Discount rate used to determine interest cost 1.95 2.47 2.86 2.32 2.46 2.86 Expected return on plan assets 1.70 3.00 5.00 — — — Rate of compensation increase — 3.00 3.00 — — — |
Combined status of the plans | The following table sets forth the combined status of the plans as recognized in the Consolidated Balance Sheets. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Change in benefit obligation: Benefit obligation at beginning of year $ 546.8 $ 652.3 $ 69.6 $ 74.5 Service cost 1.7 1.8 1.2 1.8 Interest cost 12.4 14.4 1.3 1.8 Amendments 0.4 — — — Actuarial loss (gain) (A) (62.4) 10.8 (8.2) (5.9) Benefits paid (25.4) (35.9) (4.1) (3.4) Settlement (44.1) (101.2) — — Foreign currency translation adjustments — 4.6 (0.1) 0.8 Benefit obligation at end of year $ 429.4 $ 546.8 $ 59.7 $ 69.6 Change in plan assets: Fair value of plan assets at beginning of year $ 397.8 $ 471.6 $ — $ — Actual return on plan assets (16.1) 44.5 — — Company contributions 5.3 13.1 4.1 3.4 Benefits paid (25.4) (35.9) (4.1) (3.4) Settlement (44.1) (101.2) — — Foreign currency translation adjustments (0.4) 5.7 — — Fair value of plan assets at end of year $ 317.1 $ 397.8 $ — $ — Funded status of the plans $ (112.3) $ (149.0) $ (59.7) $ (69.6) Defined benefit pensions $ (114.9) $ (151.9) $ — $ — Other noncurrent assets 6.6 7.5 — — Accrued compensation (4.0) (4.6) (5.5) (5.3) Other postretirement benefits — — (54.2) (64.3) Net benefit liability $ (112.3) $ (149.0) $ (59.7) $ (69.6) |
Amounts recognized in accumulated other comprehensive income (loss) before taxes | The following table summarizes amounts recognized in accumulated other comprehensive income (loss) in the Consolidated Balance Sheets, before income taxes. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Net actuarial gain (loss) $ (92.4) $ (140.5) $ 19.3 $ 11.6 Prior service credit (cost) (1.2) (1.7) 3.1 3.7 Total recognized in accumulated other comprehensive income (loss) $ (93.6) $ (142.2) $ 22.4 $ 15.3 |
Assumptions used in determining the benefit obligations | The following table sets forth the weighted-average assumptions used in determining the benefit obligations. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 U.S. plans: Discount rate 4.59 % 3.13 % 4.52 % 2.97 % Rate of compensation increase 3.55 3.55 — — Interest crediting rate 4.50 4.50 — — Canadian plans: Discount rate 2.41 % 2.15 % 4.50 % 3.03 % |
Company's Canadian pension and other postretirement benefit plans | The following table sets forth selective information pertaining to our Canadian pension and other postretirement benefit plans, which is included in the consolidated information presented on pages 68 and 69. Defined Benefit Pension Plans Other Postretirement Benefits Year Ended April 30, Year Ended April 30, 2022 2021 2022 2021 Benefit obligation at end of year $ 2.0 $ 2.0 $ 4.9 $ 6.1 Fair value of plan assets at end of year 8.1 8.9 — — Funded status of the plans $ 6.1 $ 6.9 $ (4.9) $ (6.1) Components of net periodic benefit cost: Interest cost 0.1 0.9 0.1 0.2 Expected return on plan assets 0.1 (1.1) — — Amortization of net actuarial loss (gain) — 0.4 (0.1) — Settlement loss (gain) — 29.6 — — Net periodic benefit cost (credit) $ 0.2 $ 29.8 $ — $ 0.2 Changes in plan assets: Actual return on plan assets $ 0.3 $ 0.9 $ — $ — Company contributions (0.4) (1.1) 0.4 0.4 Benefits paid (0.3) (4.4) (0.4) (0.4) Settlement — (83.2) — — Foreign currency translation (0.4) 5.7 — — |
Benefit obligations in excess of fair value of plan assets | The following table sets forth additional information related to our defined benefit pension plans. April 30, 2022 2021 Accumulated benefit obligation for all pension plans $ 423.9 $ 538.3 Plans with an accumulated benefit obligation in excess of plan assets: Accumulated benefit obligation $ 422.4 $ 536.9 Fair value of plan assets 309.0 388.9 Plans with a projected benefit obligation in excess of plan assets: Projected benefit obligation $ 427.8 $ 545.4 Fair value of plan assets 309.0 388.9 |
Major asset classes for the U.S. and Canadian defined benefit pension plans and fair value hierarchy levels | The following tables summarize the major asset classes for the U.S. and Canadian defined benefit pension plans and the levels within the fair value hierarchy for those assets measured at fair value. Quoted Prices in Significant Significant Plan Assets at April 30, 2022 Cash and cash equivalents (A) $ 8.1 $ — $ — $ 8.1 Equity securities: U.S. (B) 29.8 — — 29.8 International (C) 33.3 — — 33.3 Fixed-income securities: Bonds (D) 187.3 — — 187.3 Fixed income (E) 6.6 — — 6.6 Other types of investments (F) — 50.9 — 50.9 Total financial assets measured at fair value $ 265.1 $ 50.9 $ — $ 316.0 Total financial assets measured at net asset value (G) 1.1 Total plan assets $ 317.1 Quoted Prices in Significant Significant Plan Assets at April 30, 2021 Cash and cash equivalents (A) $ 10.1 $ — $ — $ 10.1 Equity securities: U.S. (B) 49.9 — — 49.9 International (C) 57.4 — — 57.4 Fixed-income securities: Bonds (D) 224.5 — — 224.5 Fixed income (E) 13.6 — — 13.6 Other types of investments (F) — 39.9 — 39.9 Total financial assets measured at fair value $ 355.5 $ 39.9 $ — $ 395.4 Total financial assets measured at net asset value (G) 2.4 Total plan assets $ 397.8 (A) This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. (B) This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices, and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (C) This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. (D) This category is primarily composed of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years, as well as various U.S. Treasury Separate Trading of Registered Interest and Principal holdings, with wide-ranging maturity dates. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. (E) This category is composed of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. (F) This category is composed of a real estate fund whereby the underlying investments are contained in the Canadian market and a common collective trust fund investing in direct commercial property funds. The real estate fund and the collective trust fund investing in direct commercial property are classified as Level 2 assets, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Outstanding derivative contracts | The following table presents the gross notional value of outstanding derivative contracts. Year Ended April 30, 2022 2021 Commodity contracts $ 2,086.2 $ 861.0 Foreign currency exchange contracts 91.3 88.4 |
Fair value of derivative instruments | The following tables set forth the gross fair value amounts of derivative instruments recognized in the Consolidated Balance Sheets. April 30, 2022 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 45.4 $ 22.3 $ — $ — Foreign currency exchange contracts 1.7 — — — Total derivative instruments $ 47.1 $ 22.3 $ — $ — April 30, 2021 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 52.6 $ 13.2 $ — $ — Foreign currency exchange contracts 0.1 3.7 — — Total derivative instruments $ 52.7 $ 16.9 $ — $ — |
Net 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. Year Ended April 30, 2022 2021 2020 Derivative gains (losses) on commodity contracts $ 74.1 $ 101.4 $ (31.4) Derivative gains (losses) on foreign currency exchange contracts 4.2 (8.8) 2.3 Total derivative gains (losses) recognized in cost of products sold $ 78.3 $ 92.6 $ (29.1) |
Schedule of unallocated derivative (losses) gains | The following table presents the net change in cumulative unallocated derivative gains and losses. Year Ended April 30, 2022 2021 2020 Net derivative gains (losses) recognized and classified as unallocated $ 78.3 $ 92.6 $ (29.1) Less: Net derivative gains (losses) reclassified to segment operating profit 101.7 (1.0) (48.7) Change in net cumulative unallocated derivative gains and losses $ (23.4) $ 93.6 $ 19.6 |
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 all contracts previously designated as cash flow hedges. Year Ended April 30, 2022 2021 2020 Gains (losses) recognized in other comprehensive income (loss) $ — $ — $ (190.7) Less: Gains (losses) reclassified from accumulated other comprehensive income (loss) to interest expense – net (A) (13.7) (13.8) (2.1) Less: Gains (losses) reclassified from accumulated other comprehensive income to other (expense) – net (B) 0.6 — — Change in accumulated other comprehensive income (loss) $ 13.1 $ 13.8 $ (188.6) (A) Interest expense – net, as presented in the Statements of Consolidated Income, was $160.9, $177.1, and $189.2 in 2022, 2021, and 2020, respectively. (B) Other expense – net, as presented in the Statements of Consolidated Income, was $19.1, $37.8, and $7.2 in 2022, 2021, and 2020, respectively. The reclassification is related to the debt extinguishment during 2022, as discussed in Note 7: Debt and Financing Arrangements. |
Other Financial Instruments a_2
Other Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Carrying amount and fair value of financial instruments | The following table provides information on the carrying amounts and fair values of our financial instruments. April 30, 2022 April 30, 2021 Carrying Fair Value Carrying Fair Value Marketable securities and other investments $ 26.6 $ 26.6 $ 31.0 $ 31.0 Derivative financial instruments – net 24.8 24.8 35.8 35.8 Total long-term debt (4,310.6) (3,977.7) (4,669.7) (5,034.5) |
Financial assets measured at fair value on a recurring basis | The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments. Quoted Prices in Significant Significant Fair Value at April 30, 2022 Marketable securities and other investments: (A) Equity mutual funds $ 5.7 $ — $ — $ 5.7 Municipal obligations — 19.9 — 19.9 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net 23.4 (0.3) — 23.1 Foreign currency exchange contracts – net 0.2 1.5 — 1.7 Total long-term debt (C) (3,977.7) — — (3,977.7) Total financial instruments measured at fair value $ (3,947.4) $ 21.1 $ — $ (3,926.3) Quoted Prices in Significant Significant Fair Value at April 30, 2021 Marketable securities and other investments: (A) Equity mutual funds $ 6.3 $ — $ — $ 6.3 Municipal obligations — 24.4 — 24.4 Money market funds 0.3 — — 0.3 Derivative financial instruments: (B) Commodity contracts – net 39.4 — — 39.4 Foreign currency exchange contracts – net (0.4) (3.2) — (3.6) Total long-term debt (C) (5,034.5) — — (5,034.5) Total financial instruments measured at fair value $ (4,988.9) $ 21.2 $ — $ (4,967.7) (A) Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third-party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of April 30, 2022, our municipal obligations are scheduled to mature as follows: $0.2 in 2023, $1.9 in 2024, $1.8 in 2025, $2.1 in 2026, $4.4 in 2027, and the remaining $9.5 in 2028 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: Derivative Financial Instruments. (C) Long-term debt is composed of public Senior Notes, which are traded in an active secondary market and valued using quoted prices. For additional information, see Note 7: Debt and Financing Arrangements. |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Leases [Abstract] | |
Right-of-use assets and lease liabilities recognized in the Consolidated Balance Sheet | The following table sets forth the right-of-use assets and lease liabilities recognized in the Consolidated Balance Sheets. Year Ended April 30, 2022 2021 Operating lease right-of-use assets $ 106.5 $ 142.0 Operating lease liabilities: Current operating lease liabilities $ 40.1 $ 41.1 Noncurrent operating lease liabilities 76.2 112.8 Total operating lease liabilities $ 116.3 $ 153.9 Finance lease right-of-use assets: Machinery and equipment $ 8.1 $ 9.8 Accumulated depreciation (4.3) (5.5) Total property, plant, and equipment $ 3.8 $ 4.3 Finance lease liabilities: Other current liabilities $ 1.4 $ 1.8 Other noncurrent liabilities 2.5 2.5 Total finance lease liabilities $ 3.9 $ 4.3 |
Components of lease expense | The following table summarizes the components of lease expense. Year Ended April 30, 2022 2021 2020 Operating lease cost $ 43.8 $ 45.4 $ 51.7 Finance lease cost: Amortization of right-of-use assets 2.0 2.4 2.8 Interest on lease liabilities 0.1 0.1 0.2 Variable lease cost 21.6 23.2 22.9 Short-term lease cost 43.5 37.6 35.2 Sublease income (1.5) (3.7) (4.3) Net lease cost $ 109.5 $ 105.0 $ 108.5 |
Cash flow and noncash information related to leases | The following table sets forth cash flow and noncash information related to leases. Year Ended April 30, 2022 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 45.6 $ 45.7 $ 50.8 Operating cash flows from finance leases 0.1 0.2 0.2 Financing cash flows from finance leases 2.1 2.6 2.8 Right-of-use assets obtained in exchange for new lease liabilities: Operating leases 7.2 34.8 57.0 Finance leases 1.8 1.1 2.6 |
Maturity of operating lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. April 30, 2022 Operating Leases Finance Leases 2023 $ 42.2 $ 1.4 2024 30.6 1.1 2025 21.6 0.8 2026 18.9 0.4 2027 5.4 0.1 2028 and beyond 2.7 0.2 Total undiscounted minimum lease payments $ 121.4 $ 4.0 Less: Imputed interest 5.1 0.1 Lease liabilities $ 116.3 $ 3.9 |
Maturity of finance lease liabilities by fiscal year | The following table summarizes the maturity of our lease liabilities by fiscal year. April 30, 2022 Operating Leases Finance Leases 2023 $ 42.2 $ 1.4 2024 30.6 1.1 2025 21.6 0.8 2026 18.9 0.4 2027 5.4 0.1 2028 and beyond 2.7 0.2 Total undiscounted minimum lease payments $ 121.4 $ 4.0 Less: Imputed interest 5.1 0.1 Lease liabilities $ 116.3 $ 3.9 |
Weighted average remaining lease tern and discount rate | The following table sets forth the weighted average remaining lease term and discount rate. Year Ended April 30, 2022 2021 Weighted average remaining lease term (in years): Operating leases 3.6 4.4 Finance leases 3.3 3.1 Weighted average discount rate: Operating leases 2.5 % 2.5 % Finance leases 2.1 % 2.6 % |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Share-based Payment Arrangement [Abstract] | |
Weighted-average Black-Scholes assumptions for stock options granted | The fair value of each stock option is estimated on the date of grant using a Black-Scholes option-pricing model with the following weighted-average assumptions for stock options granted: 2022 2021 2020 Expected volatility (%) 24.0 % 23.0 % 20.1 % Dividend yield (%) 2.7 % 3.2 % 2.8 % Risk-free interest rate (%) 1.0 % 0.4 % 1.9 % Expected life of stock options (years) 6.0 6.0 6.0 |
Summary of the Company's stock option activity and related information | The following table is a summary of our stock option activity. Number of Weighted-Average Outstanding at May 1, 2021 720,083 $ 113.48 Granted 152,971 135.53 Exercised (145,312) 112.22 Outstanding at April 30, 2022 727,742 $ 118.37 Exercisable at April 30, 2022 343,526 $ 115.23 |
Summary of restricted shares, deferred shares, deferred stock units, and performance units | The following table is a summary of our restricted shares, deferred stock units, and performance units. Restricted Weighted- Performance Weighted- Outstanding at May 1, 2021 598,738 $ 116.54 325,453 $ 118.21 Granted 66,514 135.10 171,907 135.53 Vested (179,584) 121.07 — — Forfeited (54,613) 118.71 (34,883) 123.90 Outstanding at April 30, 2022 431,055 $ 117.24 462,477 $ 124.22 |
Weighted-average grant date fair values of the equity awards | The following table summarizes the weighted-average fair values of the equity awards granted. Year Ended April 30, Restricted Weighted- Performance Weighted- 2022 66,514 $ 135.10 171,907 $ 135.53 2021 83,188 110.66 194,786 113.70 2020 245,945 121.19 168,212 123.68 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income (loss) before income taxes | Income before income taxes is as follows: Year Ended April 30, 2022 2021 2020 Domestic $ 806.0 $ 1,176.6 $ 986.7 Foreign 37.8 (4.7) 40.0 Income before income taxes $ 843.8 $ 1,171.9 $ 1,026.7 |
Components of the provision for income taxes | The components of the provision for income taxes are as follows: Year Ended April 30, 2022 2021 2020 Current: Federal $ 201.8 $ 251.3 $ 188.7 Foreign 9.2 11.7 8.5 State and local 39.0 46.7 42.4 Deferred: Federal (48.1) (3.3) 7.1 Foreign 0.3 (7.9) 0.6 State and local 9.9 (2.9) (0.1) Total income tax expense (benefit) $ 212.1 $ 295.6 $ 247.2 |
Reconciliation of the statutory federal income tax rate and the effective income tax rate | A reconciliation of the statutory federal income tax rate and the effective income tax rate is as follows: Year Ended April 30, (Percent of Pre-tax Income) 2022 2021 2020 Statutory federal income tax rate 21.0 % 21.0 % 21.0 % Sale of the Crisco business — 4.5 — Sale of the Natural Balance business — (3.0) — State and local income taxes 2.6 2.9 3.3 Deferred tax expense from internal restructuring 2.0 — — Other items – net (0.5) (0.2) (0.2) Effective income tax rate 25.1 % 25.2 % 24.1 % Income taxes paid $ 233.0 $ 333.2 $ 227.1 |
Deferred tax assets and liabilities | Significant components of our deferred tax assets and liabilities are as follows: April 30, 2022 2021 Deferred tax liabilities: Intangible assets $ 1,303.5 $ 1,347.4 Property, plant, and equipment 174.7 187.9 Leases 21.8 27.4 Other 19.2 16.2 Total deferred tax liabilities $ 1,519.2 $ 1,578.9 Deferred tax assets: Post-employment and other employee benefits $ 66.2 $ 103.6 Tax credit and loss carryforwards 27.8 28.3 Intangible assets 15.9 17.1 Hedging transactions 47.6 43.4 Leases 23.5 29.4 Other 42.3 38.5 Total deferred tax assets $ 223.3 $ 260.3 Valuation allowance (29.9) (30.7) Total deferred tax assets, less allowance $ 193.4 $ 229.6 Net deferred tax liability $ 1,325.8 $ 1,349.3 |
Reconciliation of unrecognized tax benefits | A reconciliation of our unrecognized tax benefits is as follows: 2022 2021 2020 Balance at May 1, $ 10.2 $ 13.1 $ 15.0 Increases: Current year tax positions 0.1 0.7 1.4 Prior year tax positions 0.2 — 0.2 Decreases: Expiration of statute of limitations periods 4.0 2.6 3.5 Prior year tax positions — 1.0 — Balance at April 30, $ 6.5 $ 10.2 $ 13.1 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Apr. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive (loss) income | The components of accumulated other comprehensive income (loss), including the reclassification adjustments for items that are reclassified from accumulated other comprehensive income (loss) to net income, are shown below. Foreign Net Gains (Losses) on Cash Flow Hedging Derivatives (A) Pension and Other Postretirement Liabilities (B) Unrealized Accumulated Other Comprehensive Income (Loss) Balance at May 1, 2019 $ (35.5) $ (40.4) $ (110.0) $ 4.1 $ (181.8) Reclassification adjustments — 2.1 7.4 — 9.5 Current period credit (charge) (15.0) (190.7) (54.8) (0.4) (260.9) Income tax benefit (expense) — 43.4 10.7 0.1 54.2 Balance at April 30, 2020 $ (50.5) $ (185.6) $ (146.7) $ 3.8 $ (379.0) Reclassification adjustments — 13.8 46.3 — 60.1 Current period credit (charge) 41.5 — 18.9 (0.1) 60.3 Income tax benefit (expense) — (3.0) (15.8) — (18.8) Balance at April 30, 2021 $ (9.0) $ (174.8) $ (97.3) $ 3.7 $ (277.4) Reclassification adjustments — 13.1 17.6 — 30.7 Current period credit (charge) (12.1) — 38.1 (2.5) 23.5 Income tax benefit (expense) — (2.2) (12.6) 0.6 (14.2) Balance at April 30, 2022 $ (21.1) $ (163.9) $ (54.2) $ 1.8 $ (237.4) (A) The reclassification is composed of deferred gains (losses) related to terminated interest rate contracts. During 2022, 2021, and 2020, the reclassification was primarily from accumulated other comprehensive income (loss) to interest expense. In addition, during 2022, a portion of the reclassification was to other income (expense) – net, which was driven by the prepayment of the Senior Notes due March 15, 2022. The current period charge in 2020 relates to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: Derivative Financial Instruments. (B) 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 in 2021 primarily includes the impact of the nonrecurring settlement charges related to the Canadian buy-out contract. For additional information, see Note 8: Pensions and Other Postretirement Benefits |
Accounting Policies (Details)
Accounting Policies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 22.3 | $ 28.7 | $ 26.8 |
Related income tax benefit | 5.3 | 6.6 | 6.4 |
Selling, Distribution And Administrative Expense | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 23.7 | 28.3 | 26.4 |
Other special project costs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ (1.4) | $ 0.4 | $ 0.4 |
Accounting Policies - Narrative
Accounting Policies - Narrative (Details) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022USD ($)ContractFacility | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Apr. 30, 2019USD ($) | |
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 169.9 | $ 334.3 | $ 391.1 | $ 101.3 |
Advertising expense | 176.5 | 224.4 | 198.6 | |
Reserve for credit loss | 2.3 | 2.4 | ||
Unrealized pre-tax gains included in accumulated other comprehensive loss on available-for-sale securities | 2.4 | 4.9 | ||
Accumulated other comprehensive income (loss) | $ (237.4) | (277.4) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for share-based payments | 3 years | |||
Compensation cost related to nonvested share-based awards not yet recognized | $ 36.3 | |||
Weighted-average period of recognition | 1 year 10 months 24 days | |||
Excess tax benefit from share-based compensation | $ 1.1 | 0.9 | ||
Excess tax deficiency from share-based compensation | 0.1 | |||
Accounting Policies (Additional Textual) [Abstract] | ||||
Charges for defined contribution plans | 40.9 | 41.2 | 39.7 | |
Property, Plant and Equipment [Line Items] | ||||
Lease expense | $ 111 | 108.7 | 112.8 | |
Concentration Risk [Line Items] | ||||
Facilities covered by union contracts | Facility | 8 | |||
Number of union contracts expiring in 2023 | Contract | 2 | |||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Accumulated other comprehensive income (loss) | $ (21.1) | (9) | (50.5) | $ (35.5) |
Selling, Distribution And Administrative Expense | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Distribution costs | 294.1 | 281.8 | 286.4 | |
Research and development costs | $ 48.8 | 57.7 | $ 57.7 | |
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for share-based payments | 1 year | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period for share-based payments | 3 years | |||
Machinery and equipment [Member] | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 3 years | |||
Machinery and equipment [Member] | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 20 years | |||
Capitalized software costs [Member] | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 1 year | |||
Capitalized software costs [Member] | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 7 years | |||
Buildings, fixtures, and improvements [Member] | Minimum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 5 years | |||
Buildings, fixtures, and improvements [Member] | Maximum | ||||
Property, Plant and Equipment [Line Items] | ||||
Estimated useful life of assets | 40 years | |||
Mountain Country Foods [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity interest acquired | 20.00% | |||
Numi, Inc. [Member] | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percentage of equity interest acquired | 42.00% | |||
Unionized Employees [Member] | Number of Employees, Total [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 26.00% | |||
Unionized Employees Subject to Union Contracts Expiring within One Year | Number of Employees, Total [Member] | ||||
Concentration Risk [Line Items] | ||||
Percentage of concentration risk | 9.00% | |||
Cash Equivalents [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Cash and cash equivalents | $ 116.3 | 294.5 | ||
Work In Process Inventory | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Work-in-process inventory | 65.8 | 63.8 | ||
Other Noncurrent Assets | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Marketable securities and other investments | 26.6 | 31 | ||
Accounts Payable [Member] | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Supplier Financing, Outstanding Payment Obligations | $ 314.3 | $ 304.2 |
Integration and Restructuring_3
Integration and Restructuring Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
2021 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 28.5 | $ 24.1 | |
Total costs incurred to date | 52.6 | ||
2021 Restructuring Program | Employee-related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 6.3 | 17.3 | |
Total costs incurred to date | 23.6 | ||
2021 Restructuring Program | Other transition and termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 22.2 | 6.8 | |
Total costs incurred to date | 29 | ||
Ainsworth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 0 | $ 0 | $ 16.5 |
Total costs incurred to date | 48.6 | ||
Ainsworth [Member] | Employee-related costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 2.4 | ||
Total costs incurred to date | 17.9 | ||
Ainsworth [Member] | Other transition and termination costs | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 14.1 | ||
Total costs incurred to date | $ 30.7 |
Integration and Restructuring_4
Integration and Restructuring Costs - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
2021 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred noncash charge | $ 18.6 | $ 4.4 | |
Restructuring and related cost, noncash charge incurred to date | 23 | ||
Restructuring and related cost, incurred cost | 28.5 | 24.1 | |
Restructuring and related cost, expected cost | 70 | ||
Ainsworth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred noncash charge | $ 0.6 | ||
Restructuring and related cost, noncash charge incurred to date | 4.7 | ||
Restructuring and related cost, incurred cost | 0 | 0 | 16.5 |
Employee-related costs | 2021 Restructuring Program | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | 6.3 | 17.3 | |
Restructuring Reserve | $ 2.4 | $ 14.6 | |
Employee-related costs | Ainsworth [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and related cost, incurred cost | $ 2.4 |
Divestitures (Details)
Divestitures (Details) $ in Millions | Apr. 30, 2022USD ($) |
Natural Beverage and Grains Businesses [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Inventories | $ 28.3 |
Other current assets | 0.5 |
Property, plant, and equipment - net | 28.1 |
Operating lease right-of-use-assets | 0.4 |
Other intangible assets - net | 13.6 |
Total assets disposed | 70.9 |
Current operating lease liabilities | 0.3 |
Noncurrent operating lease liabilities | 0.1 |
Other noncurrent liabilities | 0.1 |
Total liabilities disposed | 0.5 |
Net assets disposed | 70.4 |
Private Label Dry Pet Food Business [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Inventories | 19 |
Other current assets | 0 |
Property, plant, and equipment - net | 31.1 |
Operating lease right-of-use-assets | 0.1 |
Other intangible assets - net | 0 |
Total assets disposed | 50.2 |
Current operating lease liabilities | 0.1 |
Noncurrent operating lease liabilities | 0 |
Other noncurrent liabilities | 0 |
Total liabilities disposed | 0.1 |
Net assets disposed | $ 50.1 |
Divestitures - Narrative (Detai
Divestitures - Narrative (Details) $ in Millions | 12 Months Ended | |||||
Apr. 30, 2022USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Jan. 31, 2022numberOfEmployees | Dec. 01, 2021numberOfEmployees | Dec. 01, 2020numberOfEmployees | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures – net | $ 130 | $ 564 | $ 0 | |||
Gain (Loss) on divestitures – net | 9.6 | 25.3 | 0 | |||
Natural Beverage and Grains Businesses [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Not Discontinued Operation, Number of Employees | numberOfEmployees | 150 | |||||
Proceeds from divestitures – net | 97.1 | |||||
Gain (Loss) on divestitures – net | 26.7 | |||||
Natural Beverage and Grains Businesses [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 | 106.7 | 143.4 | 131.6 | |||
Private Label Dry Pet Food 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 | numberOfEmployees | 220 | |||||
Proceeds from divestitures – net | 32.9 | |||||
Gain (Loss) on divestitures – net | (17.1) | |||||
Private Label Dry Pet Food 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 | $ 62.3 | 94 | 120.6 | |||
Natural Balance Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Proceeds from divestitures – net | 33.8 | |||||
Gain (Loss) on divestitures – net | (89.5) | |||||
Natural Balance Business | U.S. Retail Pet Foods [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual net sales | 156.7 | 222.8 | ||||
Crisco Business | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Disposal Group, Not Discontinued Operation, Number of Employees | numberOfEmployees | 160 | |||||
Proceeds from divestitures – net | 530.2 | |||||
Gain (Loss) on divestitures – net | 114.8 | |||||
Crisco Business | U.S. Retail Consumer Foods [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Annual net sales | $ 198.9 | $ 269.2 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 7,998.9 | $ 8,002.7 | $ 7,801 | |
Segment profit | 1,698.8 | 1,852.7 | 1,806.8 | |
Amortization | (223.6) | (233) | (236.3) | |
Other intangible assets impairment charges | (150.4) | (3.8) | (52.4) | |
Gain on divestitures – net | 9.6 | 25.3 | 0 | |
Interest expense – net | (160.9) | (177.1) | (189.2) | |
Change in net cumulative unallocated derivative gains and losses | (23.4) | 93.6 | 19.6 | |
Cost of products sold – special project costs (A) | [1] | (20.5) | (3.4) | 0 |
Other special project costs (A) | [1],[2] | (8) | (20.7) | (16.5) |
Corporate administrative expenses | (258.7) | (323.9) | (298.1) | |
Other income (expense) – net | (19.1) | (37.8) | (7.2) | |
Income Before Income Taxes | 843.8 | 1,171.9 | 1,026.7 | |
Assets | 16,055 | 16,284.2 | 16,970.4 | |
Depreciation, amortization, and impairment charges | 609.5 | 456.3 | 498.9 | |
Additions to property, plant, and equipment | 417.5 | 306.7 | 269.3 | |
Unallocated [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Assets | [3] | 329.8 | 442.3 | 530.5 |
Depreciation, amortization, and impairment charges | [4] | 55.7 | 39.2 | 35.1 |
U.S. Retail Pet Foods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,764.3 | 2,844.5 | 2,869.5 | |
Segment profit | 395.9 | 487 | 552.7 | |
Assets | 7,167.4 | 7,480.8 | 7,731.4 | |
Depreciation, amortization, and impairment charges | 342.8 | 194.8 | 243 | |
Additions to property, plant, and equipment | 74 | 72.4 | 60.1 | |
U.S. Retail Coffee [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 2,497.3 | 2,374.6 | 2,149.5 | |
Segment profit | 736.7 | 769.1 | 691 | |
Assets | 4,891.8 | 4,793.9 | 4,787.4 | |
Depreciation, amortization, and impairment charges | 100.2 | 96.7 | 96.4 | |
Additions to property, plant, and equipment | 49.8 | 42.5 | 62.4 | |
U.S. Retail Consumer Foods [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,707.2 | 1,835.7 | 1,731.7 | |
Segment profit | 424.2 | 472.5 | 389.7 | |
Assets | 2,692.1 | 2,553.4 | 2,873.1 | |
Depreciation, amortization, and impairment charges | 64.6 | 75.4 | 72.5 | |
Additions to property, plant, and equipment | 274.8 | 167.4 | 107.7 | |
International and Away From Home | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | 1,030.1 | 947.9 | 1,050.3 | |
Segment profit | 142 | 124.1 | 173.4 | |
Assets | 973.9 | 1,013.8 | 1,048 | |
Depreciation, amortization, and impairment charges | 46.2 | 50.2 | 51.9 | |
Additions to property, plant, and equipment | $ 18.9 | $ 24.4 | $ 39.1 | |
[1] | Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs in the Statements of Consolidated Income. For more information, see Note 2: Integration and Restructuring Costs. | |||
[2] | Special project costs include certain divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs. For more information, see Note 2: Integration and Restructuring Costs and Note 4: Reportable Segments. | |||
[3] | Primarily represents unallocated cash and cash equivalents and corporate-held investments. | |||
[4] | Primarily represents unallocated corporate administrative expenses, mainly consisting of depreciation and software amortization. |
Reportable Segments (Details 1)
Reportable Segments (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | $ 7,998.9 | $ 8,002.7 | $ 7,801 |
Assets | 16,055 | 16,284.2 | 16,970.4 |
Total long-lived assets (excluding goodwill and other intangible assets) | 2,376.9 | 2,277.7 | 2,264.2 |
United States [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 7,469.6 | 7,448.3 | 7,247.9 |
Assets | 15,653.5 | 15,879.7 | 16,547.6 |
Long-lived assets | 2,331.2 | 2,220.6 | 2,209.9 |
Total international [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 529.3 | 554.4 | 553.1 |
Assets | 401.5 | 404.5 | 422.8 |
Long-lived assets | 45.7 | 57.1 | 54.3 |
Canada [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 439.6 | 443.6 | 445.3 |
Assets | 399.8 | 402.7 | 421.3 |
Long-lived assets | 45.7 | 57.1 | 54.3 |
All other international [Member] | |||
Revenues, Assets, and Long-Lived Assets [Line Items] | |||
Net sales | 89.7 | 110.8 | 107.8 |
Assets | 1.7 | 1.8 | 1.5 |
Long-lived assets | $ 0 | $ 0 | $ 0 |
Reportable Segments (Details 2)
Reportable Segments (Details 2) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 7,998.9 | $ 8,002.7 | $ 7,801 | |
Percent of product sales attributable to primary reportable segment | 75.00% | |||
U.S. Retail Coffee [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | $ 2,497.3 | 2,374.6 | 2,149.5 | |
U.S. Retail Coffee [Member] | Coffee [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 2,804.7 | 2,639.7 | 2,475.4 |
U.S. Retail Pet Foods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 2,764.3 | 2,844.5 | 2,869.5 | |
U.S. Retail Pet Foods [Member] | Cat food [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 969.9 | 918.4 | 869.2 |
U.S. Retail Pet Foods [Member] | Pet snacks [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 944.9 | 907.3 | 849.7 |
U.S. Retail Pet Foods [Member] | Dog food [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 926.5 | 1,090.8 | 1,217.6 |
U.S. Retail Consumer Foods [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,707.2 | 1,835.7 | 1,731.7 | |
U.S. Retail Consumer Foods [Member] | Peanut butter [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 801.1 | 796.1 | 730.6 |
U.S. Retail Consumer Foods [Member] | Frozen handheld [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 510.7 | 430.3 | 365 |
U.S. Retail Consumer Foods [Member] | Fruit spreads [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 386.5 | 385.9 | 370.3 |
U.S. Retail Consumer Foods [Member] | Juices and beverages [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1] | 106.3 | 139 | 125.7 |
U.S. Retail Consumer Foods [Member] | Shortening and oils [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1],[2] | 0 | 193.9 | 262.3 |
Other | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | 1,030.1 | 947.9 | 1,050.3 | |
Other | Portion control [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1],[3] | 158.2 | 120.5 | 153.3 |
Other | Baking mixes and ingredients [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1],[3] | 85.5 | 93.5 | 89.9 |
Other | Other [Member] | ||||
Revenue from External Customer [Line Items] | ||||
Net sales | [1],[3] | $ 304.6 | $ 287.3 | $ 292 |
[1] | The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. | |||
[2] | During 2021 and 2020, the net sales within this category were related to the divested Crisco | |||
[3] | Represents the combined International and Away From Home operating segments. |
Reportable Segments - Narrative
Reportable Segments - Narrative (Details) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022USD ($)SegmentIndustry | Apr. 30, 2021USD ($) | Apr. 30, 2020 | |
Concentration Risk [Line Items] | |||
Number of industries in which Company operates | Industry | 1 | ||
Number of reportable segments | Segment | 3 | ||
Trade receivables – net | $ 524.7 | $ 533.7 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | |||
Concentration Risk [Line Items] | |||
Trade receivables – net | $ 179.9 | $ 149.7 | |
Wal-Mart Stores, Inc. [Member] | Major Customer [Member] | Revenue from Contract with Customer [Member] | |||
Concentration Risk [Line Items] | |||
Percentage of concentration risk | 34.00% | 32.00% | 32.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Schedule of Earnings Per Share, Two Class Method [Line Items] | |||
Net income | $ 631.7 | $ 876.3 | $ 779.5 |
Weighted-average common shares outstanding (in shares) | 107.9 | ||
Weighted-average common shares outstanding – assuming dilution (in shares) | 108.4 | ||
Net income per common share (in dollars per share) | $ 5.84 | $ 7.79 | $ 6.84 |
Net income per common share - assuming dilution (in dollars per share) | $ 5.83 | $ 7.79 | $ 6.84 |
Two-class method [Member] | |||
Schedule of Earnings Per Share, Two Class Method [Line Items] | |||
Net income | $ 631.7 | $ 876.3 | $ 779.5 |
Less: Net income allocated to participating securities | 1.8 | 3.7 | 4.4 |
Net income allocated to common stockholders | $ 629.9 | $ 872.6 | $ 775.1 |
Weighted-average common shares outstanding (in shares) | 107.9 | 112 | 113.4 |
Add: Dilutive effect of stock options (in shares) | 0 | 0 | 0 |
Weighted-average common shares outstanding – assuming dilution (in shares) | 107.9 | 112 | 113.4 |
Net income per common share (in dollars per share) | $ 5.84 | $ 7.79 | $ 6.84 |
Net income per common share - assuming dilution (in dollars per share) | $ 5.84 | $ 7.79 | $ 6.84 |
Earnings Per Share (Details 1)
Earnings Per Share (Details 1) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Earnings Per Share [Abstract] | |||
Net income | $ 631.7 | $ 876.3 | $ 779.5 |
Weighted-average common shares outstanding (in shares) | 107.9 | ||
Weighted-average common shares outstanding – assuming dilution (in shares) | 108.4 | ||
Net income per common share - assuming dilution (in dollars per share) | $ 5.83 | $ 7.79 | $ 6.84 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Add: Dilutive effect (in shares) | 0 | ||
Restricted shares, restricted stock units, and performance units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Add: Dilutive effect (in shares) | 0.5 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | |||
Summary of changes in the company's goodwill | ||||
Goodwill, Beginning Balance | $ 6,023.6 | $ 6,304.5 | ||
Divestitures | (301.7) | |||
Other | [1] | (7.8) | 20.8 | |
Goodwill, Ending Balance | 6,015.8 | [2] | 6,023.6 | |
Goodwill, Impaired, Accumulated Impairment Loss | 242.9 | |||
U.S. Retail Pet Foods [Member] | ||||
Summary of changes in the company's goodwill | ||||
Goodwill, Beginning Balance | 2,368.2 | 2,442.3 | ||
Divestitures | (74.1) | |||
Other | [1] | 0 | 0 | |
Goodwill, Ending Balance | 2,368.2 | 2,368.2 | ||
U.S. Retail Coffee [Member] | ||||
Summary of changes in the company's goodwill | ||||
Goodwill, Beginning Balance | 2,090.9 | 2,090.9 | ||
Divestitures | 0 | |||
Other | [1] | 0 | 0 | |
Goodwill, Ending Balance | 2,090.9 | 2,090.9 | ||
U.S. Retail Consumer Foods [Member] | ||||
Summary of changes in the company's goodwill | ||||
Goodwill, Beginning Balance | 1,147.5 | 1,358.2 | ||
Divestitures | (210.7) | |||
Other | [1] | 0 | 0 | |
Goodwill, Ending Balance | 1,147.5 | 1,147.5 | ||
International and Away From Home | ||||
Summary of changes in the company's goodwill | ||||
Goodwill, Beginning Balance | 417 | 413.1 | ||
Divestitures | (16.9) | |||
Other | [1] | (7.8) | 20.8 | |
Goodwill, Ending Balance | $ 409.2 | $ 417 | ||
[1] | The amounts classified as other represent foreign currency exchange adjustments. | |||
[2] | Included in goodwill as of April 30, 2022, are accumulated goodwill impairment charges of $242.9. |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets (Details 1) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, Acquisition Cost | $ 5,279.3 | $ 5,004.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 2,233.9 | 1,879 |
Finite-lived intangible assets, Net | 3,045.4 | 3,125.1 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Intangible Assets, Acquisition Cost | 8,112.4 | 8,145.2 |
Total Other Intangible Assets Accumulated Amortization Impairment Charges Foreign Currency Exchange | 2,460.2 | 2,104 |
Total other intangible assets | 5,652.2 | 6,041.2 |
Trademarks | ||
Indefinite-lived intangible assets not subject to amortization: | ||
Indefinite-lived intangible assets, Acquisition Costs | 2,833.1 | 3,141.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Indefinite Lived Assets | 226.3 | 225 |
Indefinite-lived intangible assets, Net | 2,606.8 | 2,916.1 |
Customer and contractual relationships | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, Acquisition Cost | 4,450 | 4,471.1 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 1,724.8 | 1,545 |
Finite-lived intangible assets, Net | 2,725.2 | 2,926.1 |
Patents and technology | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, Acquisition Cost | 167.6 | 168.5 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 155 | 147.3 |
Finite-lived intangible assets, Net | 12.6 | 21.2 |
Trademarks | ||
Finite-lived intangible assets subject to amortization: | ||
Finite-lived intangible assets, Acquisition Cost | 661.7 | 364.5 |
Accumulated Amortization, Impairment Charges And Foreign Currency Exchange Expense For Finite Lived Assets | 354.1 | 186.7 |
Finite-lived intangible assets, Net | $ 307.6 | $ 177.8 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | Feb. 01, 2022reporting_unit | Apr. 30, 2022USD ($) | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | |
Goodwill and Intangible Assets [Line Items] | |||||
Amortization expense for finite-lived intangible assets | $ 222.5 | $ 232 | $ 235.3 | ||
Weighted-average useful life of the finite-lived intangible assets | 23 years | ||||
Estimated amortization expense for 2023 | $ 222.5 | ||||
Estimated amortization expense for 2024 | 218.4 | ||||
Estimated amortization expense for 2025 | 215.3 | ||||
Estimated amortization expense for 2026 | 213.6 | ||||
Estimated amortization expense for 2027 | 213 | ||||
Other intangible assets impairment charges | 150.4 | 3.8 | 52.4 | ||
Number of reporting units | reporting_unit | 6 | ||||
Goodwill | $ 6,015.8 | [1] | 6,023.6 | 6,304.5 | |
Customer and contractual relationships | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted-average useful life of the finite-lived intangible assets | 24 years | ||||
Patents and technology | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted-average useful life of the finite-lived intangible assets | 16 years | ||||
Trademarks | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Weighted-average useful life of the finite-lived intangible assets | 15 years | ||||
U.S. Retail Consumer Foods [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Goodwill | $ 1,147.5 | 1,147.5 | 1,358.2 | ||
U.S. Retail Consumer Foods [Member] | Trademarks | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Other intangible assets impairment charges | 3.8 | ||||
U.S. Retail Pet Foods [Member] | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Percentage of fair value in excess of carrying amount, reporting unit | 6.00% | ||||
Goodwill | 2,368.2 | $ 2,368.2 | 2,442.3 | ||
U.S. Retail Pet Foods [Member] | Trademarks | |||||
Goodwill and Intangible Assets [Line Items] | |||||
Other intangible assets impairment charges | $ 150.4 | $ 52.4 | |||
[1] | Included in goodwill as of April 30, 2022, are accumulated goodwill impairment charges of $242.9. |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements (Details) - USD ($) | Apr. 30, 2022 | Apr. 30, 2021 | |
Long-term debt | |||
Debt instrument face amount | $ 4,350,000,000 | $ 4,700,000,000 | |
Total long-term debt | [1] | 4,310,600,000 | 4,669,700,000 |
Current portion of long-term debt | [1] | 0 | 1,152,900,000 |
Long-term debt, less current portion | [1] | $ 4,310,600,000 | $ 3,516,800,000 |
3.50% Senior Notes due October 15, 2021 | |||
Long-term debt | |||
Interest rate on notes | 3.50% | 3.50% | |
Debt instrument face amount | $ 0 | $ 750,000,000 | |
Senior Notes | [1] | $ 0 | $ 753,500,000 |
3.00% Senior Notes due March 15, 2022 | |||
Long-term debt | |||
Interest rate on notes | 3.00% | 3.00% | |
Debt instrument face amount | $ 0 | $ 400,000,000 | |
Senior Notes | [1] | $ 0 | $ 399,400,000 |
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] | $ 997,600,000 | $ 996,800,000 |
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] | $ 497,600,000 | $ 497,100,000 |
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] | $ 496,200,000 | $ 495,700,000 |
2.13% Senior Notes due March 15, 2032 | |||
Long-term debt | |||
Interest rate on notes | 2.13% | 2.13% | |
Debt instrument face amount | $ 500,000,000 | $ 0 | |
Senior Notes | [1] | $ 493,800,000 | $ 0 |
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] | $ 644,700,000 | $ 644,300,000 |
2.75% Senior Notes due September 15, 2041 | |||
Long-term debt | |||
Interest rate on notes | 2.75% | 2.75% | |
Debt instrument face amount | $ 300,000,000 | $ 0 | |
Senior Notes | [1] | $ 297,100,000 | $ 0 |
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] | $ 587,600,000 | $ 587,100,000 |
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] | 296,000,000 | 295,800,000 |
Current portion of long-term debt | |||
Long-term debt | |||
Debt instrument face amount | 0 | 1,150,000,000 | |
Total long-term debt, less current portion | |||
Long-term debt | |||
Debt instrument face amount | $ 4,350,000,000 | $ 3,550,000,000 | |
[1] | Represents the carrying amount included in the 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 - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||
Oct. 31, 2021USD ($) | Jul. 31, 2021USD ($) | Apr. 30, 2022USD ($)Bank | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Aug. 19, 2021USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 4,350,000,000 | $ 4,700,000,000 | ||||
Repayment of long-term debt | 1,157,000,000 | 700,000,000 | $ 900,000,000 | |||
Short-term borrowings | $ 180,000,000 | 82,000,000 | ||||
Percentage of the principal amount thereof which company can prepay | 100.00% | |||||
Interest paid | $ 155,200,000 | 169,900,000 | 193,400,000 | |||
Commercial Paper [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Commercial paper, borrowing capacity | 2,000,000,000 | 1,800,000,000 | $ 1,800,000,000 | |||
Short-term borrowings | $ 180,000,000 | $ 82,000,000 | ||||
Commercial paper weighted-average interest rate | 0.65% | 0.17% | ||||
Senior Notes [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 800,000,000 | 800,000,000 | ||||
Debt issuance costs | 7,200,000 | |||||
Debt Instrument, Unamortized Discount | 2,400,000 | |||||
3.50% Senior Notes due October 15, 2021 | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 0 | $ 750,000,000 | ||||
Repayment of long-term debt | $ 750,000,000 | |||||
3.00% Senior Notes due March 15, 2022 | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 0 | 400,000,000 | ||||
Repayment of long-term debt | $ 400,000,000 | |||||
3.00% Senior Notes due March 15, 2022 | Other Nonoperating Income (Expense) | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Gain (Loss) on Extinguishment of Debt | $ (6,900,000) | |||||
Revolving Credit Facility [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt issuance costs | 4,300,000 | |||||
Number of banks | Bank | 11 | |||||
Revolving credit facility maximum borrowing capacity | $ 2,000,000,000 | 1,800,000,000 | $ 1,800,000,000 | |||
Outstanding balance under revolving credit facility | $ 0 | $ 0 | ||||
2.50% Senior Notes due March 15, 2020 | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Repayment of long-term debt | 500,000,000 | |||||
Interest Rate Contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Deferred pre-tax net gain (loss) included in accumulated other comprehensive loss | $ (239,800,000) |
Pensions and Other Postretire_3
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Components of net periodic benefit cost: | |||
Settlement loss (gain) | $ 10.8 | $ 35.5 | $ 0.1 |
Defined Benefit Pension Plans | |||
Components of net periodic benefit cost: | |||
Service cost | 1.7 | 1.8 | 1.6 |
Interest cost | 12.4 | 14.4 | 20.9 |
Expected return on plan assets | (15.9) | (19.3) | (24.1) |
Amortization of prior service cost (credit) | 0.9 | 0.9 | 0.9 |
Amortization of net actuarial loss (gain) | 6.9 | 10.9 | 7.9 |
Settlement loss (gain) | 10.8 | 35.5 | 0.1 |
Termination benefit cost | 0 | 0 | 0.2 |
Net periodic benefit cost | 16.8 | 44.2 | 7.5 |
Other Postretirement Benefits | |||
Components of net periodic benefit cost: | |||
Service cost | 1.2 | 1.8 | 1.8 |
Interest cost | 1.3 | 1.8 | 2.3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.6) | (1) | (1.1) |
Amortization of net actuarial loss (gain) | (0.4) | 0 | (0.3) |
Settlement loss (gain) | 0 | 0 | 0 |
Termination benefit cost | 0 | 0 | 0 |
Net periodic benefit cost | $ 1.5 | $ 2.6 | $ 2.7 |
Pensions and Other Postretire_4
Pensions and Other Postretirement Benefits (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Defined Benefit Pension Plans | |||
Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive loss before income taxes: | |||
Prior service credit (cost) arising during the year | $ (0.4) | $ 0 | $ 0 |
Net actuarial gain (loss) arising during the year | 30.4 | 14.3 | (51.6) |
Amortization of prior service cost (credit) | 0.9 | 0.9 | 0.9 |
Amortization of net actuarial loss (gain) | 6.9 | 10.9 | 7.9 |
Settlement loss (gain) | 10.8 | 35.5 | 0.1 |
Foreign currency translation | 0 | (1.5) | 1.1 |
Net change for year | 48.6 | 60.1 | (41.6) |
Other Postretirement Benefits | |||
Other changes in plan assets and benefit liabilities recognized in accumulated other comprehensive loss before income taxes: | |||
Prior service credit (cost) arising during the year | 0 | 0 | 0 |
Net actuarial gain (loss) arising during the year | 8.2 | 5.9 | (4.4) |
Amortization of prior service cost (credit) | (0.6) | (1) | (1.1) |
Amortization of net actuarial loss (gain) | (0.4) | 0 | (0.3) |
Settlement loss (gain) | 0 | 0 | 0 |
Foreign currency translation | (0.1) | 0.2 | 0 |
Net change for year | $ 7.1 | $ 5.1 | $ (5.8) |
Pensions and Other Postretire_5
Pensions and Other Postretirement Benefits (Details 2) | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
United States [Member] | Defined Benefit Pension Plans | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.13% | 3.05% | 3.99% |
Discount rate used to determine service cost | 3.53% | 3.34% | 4.20% |
Discount rate used to determine interest cost | 2.40% | 2.54% | 3.61% |
Expected return on plan assets | 4.59% | 4.96% | 5.28% |
Rate of compensation increase | 3.55% | 3.58% | 3.56% |
United States [Member] | Other Postretirement Benefits Plan | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 2.97% | 2.98% | 3.91% |
Discount rate used to determine service cost | 3.20% | 3.18% | 4.07% |
Discount rate used to determine interest cost | 2.07% | 2.42% | 3.47% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
CANADA | Defined Benefit Pension Plans | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 2.15% | 2.95% | 3.21% |
Discount rate used to determine service cost | 0.00% | 3.06% | 3.29% |
Discount rate used to determine interest cost | 1.95% | 2.47% | 2.86% |
Expected return on plan assets | 1.70% | 3.00% | 5.00% |
Rate of compensation increase | 0.00% | 3.00% | 3.00% |
CANADA | Other Postretirement Benefits Plan | |||
Weighted-average assumptions used in determining net periodic benefit costs: | |||
Discount rate used to determine benefit obligation | 3.03% | 2.93% | 3.19% |
Discount rate used to determine service cost | 3.52% | 3.19% | 3.44% |
Discount rate used to determine interest cost | 2.32% | 2.46% | 2.86% |
Expected return on plan assets | 0.00% | 0.00% | 0.00% |
Rate of compensation increase | 0.00% | 0.00% | 0.00% |
Pensions and Other Postretire_6
Pensions and Other Postretirement Benefits (Details 3) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Change in plan assets: | ||||
Company contributions | $ 5.3 | $ 13.1 | $ 5.1 | |
Defined benefit pensions | (114.9) | (151.9) | ||
Other postretirement benefits | (54.2) | (64.3) | ||
Defined Benefit Pension Plans | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 546.8 | 652.3 | ||
Service cost | 1.7 | 1.8 | 1.6 | |
Interest cost | 12.4 | 14.4 | 20.9 | |
Amendments | 0.4 | 0 | ||
Actuarial loss (gain) (A) | [1] | (62.4) | 10.8 | |
Benefits paid | (25.4) | (35.9) | ||
Settlement | (44.1) | (101.2) | ||
Foreign currency translation adjustments | 0 | 4.6 | ||
Benefit obligation at end of year | 429.4 | 546.8 | 652.3 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 397.8 | 471.6 | ||
Actual return on plan assets | (16.1) | 44.5 | ||
Company contributions | 5.3 | 13.1 | ||
Benefits paid | (25.4) | (35.9) | ||
Settlement | (44.1) | (101.2) | ||
Foreign currency translation adjustments | (0.4) | 5.7 | ||
Fair value of plan assets at end of year | 317.1 | 397.8 | 471.6 | |
Funded status of the plans | (112.3) | (149) | ||
Defined benefit pensions | (114.9) | (151.9) | ||
Other noncurrent assets | 6.6 | 7.5 | ||
Liability, Defined Benefit Plan, Current | (4) | (4.6) | ||
Other postretirement benefits | 0 | 0 | ||
Net benefit liability | (112.3) | (149) | ||
Other Postretirement Benefits | ||||
Change in benefit obligation: | ||||
Benefit obligation at beginning of year | 69.6 | 74.5 | ||
Service cost | 1.2 | 1.8 | 1.8 | |
Interest cost | 1.3 | 1.8 | 2.3 | |
Amendments | 0 | 0 | ||
Actuarial loss (gain) (A) | [1] | (8.2) | (5.9) | |
Benefits paid | (4.1) | (3.4) | ||
Settlement | 0 | 0 | ||
Foreign currency translation adjustments | (0.1) | 0.8 | ||
Benefit obligation at end of year | 59.7 | 69.6 | 74.5 | |
Change in plan assets: | ||||
Fair value of plan assets at beginning of year | 0 | 0 | ||
Actual return on plan assets | 0 | 0 | ||
Company contributions | 4.1 | 3.4 | ||
Benefits paid | (4.1) | (3.4) | ||
Settlement | 0 | 0 | ||
Foreign currency translation adjustments | 0 | 0 | ||
Fair value of plan assets at end of year | 0 | 0 | $ 0 | |
Funded status of the plans | (59.7) | (69.6) | ||
Defined benefit pensions | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Liability, Defined Benefit Plan, Current | (5.5) | (5.3) | ||
Other postretirement benefits | (54.2) | (64.3) | ||
Net benefit liability | $ (59.7) | $ (69.6) | ||
[1] | The actuarial losses and gains for our defined benefit pension plans and other postretirement benefits were primarily due to changes in the discount rates used in determining the plan obligations. |
Pensions and Other Postretire_7
Pensions and Other Postretirement Benefits (Details 4) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Defined Benefit Pension Plans | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | $ (92.4) | $ (140.5) |
Prior service credit (cost) | (1.2) | (1.7) |
Total recognized in accumulated other comprehensive income (loss) | $ (93.6) | $ (142.2) |
Defined Benefit Pension Plans | United States [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 4.59% | 3.13% |
Rate of compensation increase | 3.55% | 3.55% |
Interest crediting Rate | 4.50% | 4.50% |
Defined Benefit Pension Plans | CANADA | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 2.41% | 2.15% |
Other Postretirement Benefits | ||
Accumulated other comprehensive income (loss) | ||
Net actuarial gain (loss) | $ 19.3 | $ 11.6 |
Prior service credit (cost) | 3.1 | 3.7 |
Total recognized in accumulated other comprehensive income (loss) | $ 22.4 | $ 15.3 |
Other Postretirement Benefits | United States [Member] | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 4.52% | 2.97% |
Rate of compensation increase | 0.00% | 0.00% |
Interest crediting Rate | 0.00% | 0.00% |
Other Postretirement Benefits | CANADA | ||
Weighted-average assumptions used in determining benefit obligation | ||
Discount rate | 4.50% | 3.03% |
Pensions and Other Postretire_8
Pensions and Other Postretirement Benefits (Details 5) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Components of net periodic benefit cost: | |||
Settlement loss (gain) | $ 10.8 | $ 35.5 | $ 0.1 |
Pension Plan | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 429.4 | 546.8 | 652.3 |
Fair value of plan assets at end of year | 317.1 | 397.8 | 471.6 |
Funded status of the plans | (112.3) | (149) | |
Components of net periodic benefit cost: | |||
Interest cost | 12.4 | 14.4 | 20.9 |
Expected return on plan assets | (15.9) | (19.3) | (24.1) |
Amortization of net actuarial loss (gain) | 6.9 | 10.9 | 7.9 |
Settlement loss (gain) | 10.8 | 35.5 | 0.1 |
Net periodic benefit cost (credit) | 16.8 | 44.2 | 7.5 |
Change in plan assets: | |||
Actual return on plan assets | (16.1) | 44.5 | |
Benefits paid | (25.4) | (35.9) | |
Settlement | (44.1) | (101.2) | |
Foreign currency translation adjustments | (0.4) | 5.7 | |
Other Postretirement Benefits Plan | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 59.7 | 69.6 | 74.5 |
Fair value of plan assets at end of year | 0 | 0 | 0 |
Funded status of the plans | (59.7) | (69.6) | |
Components of net periodic benefit cost: | |||
Interest cost | 1.3 | 1.8 | 2.3 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of net actuarial loss (gain) | (0.4) | 0 | (0.3) |
Settlement loss (gain) | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 1.5 | 2.6 | $ 2.7 |
Change in plan assets: | |||
Actual return on plan assets | 0 | 0 | |
Benefits paid | (4.1) | (3.4) | |
Settlement | 0 | 0 | |
Foreign currency translation adjustments | 0 | 0 | |
CANADA | Pension Plan | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 2 | 2 | |
Fair value of plan assets at end of year | 8.1 | 8.9 | |
Funded status of the plans | 6.1 | 6.9 | |
Components of net periodic benefit cost: | |||
Interest cost | 0.1 | 0.9 | |
Expected return on plan assets | 0.1 | (1.1) | |
Amortization of net actuarial loss (gain) | 0 | 0.4 | |
Settlement loss (gain) | 0 | 29.6 | |
Net periodic benefit cost (credit) | 0.2 | 29.8 | |
Change in plan assets: | |||
Actual return on plan assets | 0.3 | 0.9 | |
Company contributions | (0.4) | (1.1) | |
Benefits paid | (0.3) | (4.4) | |
Settlement | 0 | (83.2) | |
Foreign currency translation adjustments | (0.4) | 5.7 | |
CANADA | Other Postretirement Benefits Plan | |||
Company's Canadian pension and other postretirement benefit plans | |||
Benefit obligation at end of year | 4.9 | 6.1 | |
Fair value of plan assets at end of year | 0 | 0 | |
Funded status of the plans | (4.9) | (6.1) | |
Components of net periodic benefit cost: | |||
Interest cost | 0.1 | 0.2 | |
Expected return on plan assets | 0 | 0 | |
Amortization of net actuarial loss (gain) | (0.1) | 0 | |
Settlement loss (gain) | 0 | 0 | |
Net periodic benefit cost (credit) | 0 | 0.2 | |
Change in plan assets: | |||
Actual return on plan assets | 0 | 0 | |
Company contributions | 0.4 | 0.4 | |
Benefits paid | (0.4) | (0.4) | |
Settlement | 0 | 0 | |
Foreign currency translation adjustments | $ 0 | $ 0 |
Pensions and Other Postretire_9
Pensions and Other Postretirement Benefits (Details 6) - Defined Benefit Pension Plans - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Additional information related to the Company's defined benefit pension plans | ||
Accumulated benefit obligation for all pension plans | $ 423.9 | $ 538.3 |
Plans with an accumulated benefit obligation in excess of plan assets: | ||
Accumulated benefit obligation | 422.4 | 536.9 |
Fair value of plan assets | 309 | 388.9 |
Plans with a projected benefit obligation in excess of plan assets: | ||
Projected benefit obligation | 427.8 | 545.4 |
Fair value of plan assets | $ 309 | $ 388.9 |
Pensions and Other Postretir_10
Pensions and Other Postretirement Benefits (Details 7) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at net asset value (G) | [1] | $ 1.1 | $ 2.4 | |
Defined Benefit Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 317.1 | 397.8 | $ 471.6 | |
Defined Benefit Pension Plans | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 316 | 395.4 | ||
Defined Benefit Pension Plans | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 265.1 | 355.5 | ||
Defined Benefit Pension Plans | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 50.9 | 39.9 | ||
Defined Benefit Pension Plans | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | 0 | 0 | ||
Defined Benefit Pension Plans | Cash and cash equivalents (A) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 8.1 | 10.1 | |
Defined Benefit Pension Plans | Cash and cash equivalents (A) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 8.1 | 10.1 | |
Defined Benefit Pension Plans | Cash and cash equivalents (A) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 0 | 0 | |
Defined Benefit Pension Plans | Cash and cash equivalents (A) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [2] | 0 | 0 | |
Defined Benefit Pension Plans | U.S. (B) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 29.8 | 49.9 | |
Defined Benefit Pension Plans | U.S. (B) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 29.8 | 49.9 | |
Defined Benefit Pension Plans | U.S. (B) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 0 | 0 | |
Defined Benefit Pension Plans | U.S. (B) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [3] | 0 | 0 | |
Defined Benefit Pension Plans | International (C) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 33.3 | 57.4 | |
Defined Benefit Pension Plans | International (C) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 33.3 | 57.4 | |
Defined Benefit Pension Plans | International (C) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 0 | 0 | |
Defined Benefit Pension Plans | International (C) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [4] | 0 | 0 | |
Defined Benefit Pension Plans | Bonds (D) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 187.3 | 224.5 | |
Defined Benefit Pension Plans | Bonds (D) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 187.3 | 224.5 | |
Defined Benefit Pension Plans | Bonds (D) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 0 | 0 | |
Defined Benefit Pension Plans | Bonds (D) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [5] | 0 | 0 | |
Defined Benefit Pension Plans | Fixed income (E) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 6.6 | 13.6 | |
Defined Benefit Pension Plans | Fixed income (E) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 6.6 | 13.6 | |
Defined Benefit Pension Plans | Fixed income (E) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 0 | 0 | |
Defined Benefit Pension Plans | Fixed income (E) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [6] | 0 | 0 | |
Defined Benefit Pension Plans | Other types of investments (F) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 50.9 | 39.9 | |
Defined Benefit Pension Plans | Other types of investments (F) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 0 | 0 | |
Defined Benefit Pension Plans | Other types of investments (F) | Significant Observable Inputs (Level 2) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | 50.9 | 39.9 | |
Defined Benefit Pension Plans | Other types of investments (F) | Significant Unobservable Inputs (Level 3) | Estimate of Fair Value Measurement | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total financial assets measured at fair value | [7] | $ 0 | $ 0 | |
[1] | This category is composed of a private equity fund that consists primarily of limited partnership interests in corporate finance and venture capital funds, as well as a private limited investment partnership. The fair value estimates of the private equity fund and private limited investment partnership are based on the underlying funds’ net asset values. Furthermore, as a practical expedient equivalent to our defined benefit plan’s ownership interest in the partners’ capital, a proportionate share of the net assets is attributed and further corroborated by our review. The private equity fund and private limited investment partnership are non-redeemable, and the return of principal is based on the liquidation of the underlying assets. In accordance with ASU 2015-07, the private equity fund and private limited investment partnership are removed from the total financial assets measured at fair value and disclosed separately. | |||
[2] | This category includes money market holdings with maturities of three months or less and are classified as Level 1 assets. Based on the short-term nature of these assets, carrying value approximates fair value. | |||
[3] | This category is invested in a diversified portfolio of common stocks and index funds that primarily invest in U.S. stocks with broad market capitalization ranges similar to those found in the S&P 500 Index and/or the various Russell Indices, and are traded on active exchanges. The Level 1 assets are valued using quoted market prices for identical securities in active markets. | |||
[4] | This category is invested primarily in common stocks and other equity securities traded on active exchanges of foreign issuers located outside the U.S. The fund invests primarily in developed countries, but may also invest in emerging markets. The Level 1 assets are valued using quoted market prices for identical securities in active markets. | |||
[5] | This category is primarily composed of bond funds, which seek to duplicate the return characteristics of high-quality U.S. and foreign corporate bonds with a duration range of 10 to 13 years, as well as various U.S. Treasury Separate Trading of Registered Interest and Principal holdings, with wide-ranging maturity dates. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. | |||
[6] | This category is composed of fixed-income funds that invest primarily in government-related bonds of non-U.S. issuers and include investments in the Canadian, as well as emerging, markets. These assets are valued using quoted market prices for identical securities in active markets and are classified as Level 1 assets. | |||
[7] | This category is composed of a real estate fund whereby the underlying investments are contained in the Canadian market and a common collective trust fund investing in direct commercial property funds. The real estate fund and the collective trust fund investing in direct commercial property are classified as Level 2 assets, whereby the underlying securities are valued utilizing quoted market prices for identical securities in active markets and based on the quoted market prices of the underlying investments in the common collective trust, respectively. |
Pensions and Other Postretir_11
Pensions and Other Postretirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022USD ($)plan | Apr. 30, 2021USD ($) | Apr. 30, 2020USD ($) | Dec. 31, 2021 | |
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Eligibility condition for covered employees to avail the benefits of unfunded, defined postretirement plans that provide health care and life insurance benefits | when they reach age 55 and have attained 10 years of credited service | |||
Settlement loss (gain) | $ 10.8 | $ 35.5 | $ 0.1 | |
Expected benefit payments for the defined benefit pension and other postretirement in 2023 | 44 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2024 | 41 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2025 | 38.3 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2026 | 36.9 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2027 | 35.8 | |||
Expected benefit payments for the defined benefit pension and other postretirement in 2028 through 2032 | $ 176 | |||
Number of multiemployer pension plans | plan | 1 | |||
Multiemployer Plan, Pension, Significant, Employer Contribution, Cost | $ 2.6 | 2.5 | ||
Multiemployer plan actual funded status | 48.50% | |||
Fiscal Year Two Thousand Twenty three | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Multiemployer Plan, Pension, Significant, Future Employer Contribution, Amount | $ 2.5 | |||
Fixed income | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Approximate percentage of assets to be invested in company's current investment policy | 63.00% | |||
Other Postretirement Benefits Plan | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Settlement loss (gain) | $ 0 | 0 | 0 | |
Other Postretirement Benefits Plan | United States [Member] | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Assumed health care trend rate for next fiscal year | 6.50% | |||
Assumed health care trend rate for participants under age 65 | 5.00% | |||
Defined Benefit Plan, Year Health Care Cost Trend Rate Reaches Ultimate Trend Rate | 2032 | |||
Other Postretirement Benefits Plan | CANADA | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Assumed health care trend rate for next fiscal year | 4.50% | |||
Assumed health care trend rate for participants under age 65 | 4.50% | |||
Settlement loss (gain) | $ 0 | 0 | ||
Defined Benefit Pension Plans | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Settlement loss (gain) | $ 10.8 | $ 35.5 | $ 0.1 | |
Defined benefit plan actual rate of return on plan assets | (4.60%) | 12.90% | ||
Expected amount to be contributed by the Company to the defined benefit pension plans in 2023 | $ 80 | |||
Expected direct benefit payments to be made by the Company in 2023 | 9.6 | |||
Defined Benefit Pension Plans | CANADA | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
Decrease in pension obligations | $ (82.6) | |||
Settlement loss (gain) | $ 0 | $ 29.6 | ||
Minimum | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
High Quality Corporate Bonds with Duration Range | 10 years | |||
Maximum | ||||
Pensions and Other Postretirement Benefits (Additional Textual) [Abstract] | ||||
High Quality Corporate Bonds with Duration Range | 13 years |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Commodity contracts | ||
Outstanding derivative contracts | ||
Gross notional amount | $ 2,086.2 | $ 861 |
Foreign currency exchange contracts | ||
Outstanding derivative contracts | ||
Gross notional amount | $ 91.3 | $ 88.4 |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details 1) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Other Current Assets | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 47.1 | $ 52.7 |
Other Current Liabilities | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 22.3 | 16.9 |
Other Noncurrent Assets | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Liabilities | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Commodity contracts | Other Current Assets | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 45.4 | 52.6 |
Commodity contracts | Other Current Liabilities | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 22.3 | 13.2 |
Commodity contracts | Other Noncurrent Assets | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Commodity contracts | Other Noncurrent Liabilities | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 0 |
Foreign currency exchange contracts | Other Current Assets | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 1.7 | 0.1 |
Foreign currency exchange contracts | Other Current Liabilities | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 3.7 |
Foreign currency exchange contracts | Other Noncurrent Assets | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Foreign currency exchange contracts | Other Noncurrent Liabilities | Not designated as hedging instruments | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | |||
Total derivative gains (losses) recognized in costs of products sold | $ 78.3 | $ 92.6 | $ (29.1) |
Commodity contracts | |||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | |||
Total derivative gains (losses) recognized in costs of products sold | 74.1 | 101.4 | (31.4) |
Foreign currency exchange contracts | |||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | |||
Total derivative gains (losses) recognized in costs of products sold | $ 4.2 | $ (8.8) | $ 2.3 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Price Risk Derivatives [Abstract] | |||
Net derivative gains (losses) recognized and classified as unallocated | $ 78.3 | $ 92.6 | $ (29.1) |
Less: Net derivative gains (losses) reclassified to segment operating profit | 101.7 | (1) | (48.7) |
Change in net cumulative unallocated derivative gains and losses | $ (23.4) | $ 93.6 | $ 19.6 |
Derivative Financial Instrume_7
Derivative Financial Instruments (Details 4) - Cash Flow Hedges - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) recognized in other comprehensive income (loss) | $ 0 | $ 0 | $ (190.7) | |
Change in accumulated other comprehensive income (loss) | 13.1 | 13.8 | (188.6) | |
Interest Expense | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from accumulated other comprehensive | [1] | (13.7) | (13.8) | (2.1) |
Other Nonoperating Income (Expense) | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gains (losses) reclassified from accumulated other comprehensive | [2] | $ 0.6 | $ 0 | $ 0 |
[1] | Interest expense – net, as presented in the Statements of Consolidated Income, was $160.9, $177.1, and $189.2 in 2022, 2021, and 2020, respectively. | |||
[2] | Other expense – net, as presented in the Statements of Consolidated Income, was $19.1, $37.8, and $7.2 in 2022, 2021, and 2020, respectively. The reclassification is related to the debt extinguishment during 2022, as discussed in Note 7: Debt and Financing Arrangements. |
Derivative Financial Instrume_8
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2018 | Apr. 30, 2015 | |
Derivative Financial Instruments (Textual) [Abstract] | |||||
Collateral pledged | $ 54.6 | ||||
Collateral received | $ 10.8 | ||||
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | 37.3 | 60.7 | |||
Interest expense – net | (160.9) | (177.1) | $ (189.2) | ||
Other income (expense) – net | (19.1) | (37.8) | (7.2) | ||
Amortization of deferred gain on early termination agreement | $ 4 | 8.4 | 8.1 | ||
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 contract | |||||
Derivative Financial Instruments (Textual) [Abstract] | |||||
Deferred pre-tax net gain (loss) included in accumulated other comprehensive loss | $ (239.8) | ||||
Deferred Gain (Loss) on Cash Flow Hedges Included in Accumulated Other Comprehensive Income or Loss | $ (214.2) | (227.3) | |||
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 50.3 | $ 52.5 | |||
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | (13.5) | ||||
Treasury Lock | |||||
Derivative Financial Instruments (Textual) [Abstract] | |||||
Deferred pre-tax net gain (loss) included in accumulated other comprehensive loss | $ 2.7 | ||||
TotalThroughFiscalQ22022 | |||||
Derivative Financial Instruments (Textual) [Abstract] | |||||
Amortization of deferred gain on early termination agreement | $ 53.5 | ||||
Cash [Member] | Interest rate swap [Member] | Fair Value Hedging [Member] | |||||
Derivative Financial Instruments (Textual) [Abstract] | |||||
Gain (loss) on early termination agreement | $ 58.1 | ||||
Accrued and Prepaid Interest Net | Interest rate swap [Member] | 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 | Apr. 30, 2022 | Apr. 30, 2021 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total long-term debt | [1] | $ (4,310.6) | $ (4,669.7) |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 26.6 | 31 | |
Derivative financial instruments – net | 24.8 | 35.8 | |
Total long-term debt | (4,310.6) | (4,669.7) | |
Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Marketable securities and other investments | 26.6 | 31 | |
Derivative financial instruments – net | 24.8 | 35.8 | |
Total long-term debt | $ (3,977.7) | $ (5,034.5) | |
[1] | Represents the carrying amount included in the 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 | Apr. 30, 2022 | Apr. 30, 2021 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | $ (3,977.7) | $ (5,034.5) |
Total financial instruments measured at fair value | (3,926.3) | (4,967.7) | |
Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 5.7 | 6.3 |
Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 19.9 | 24.4 |
Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 1 | 0.3 |
Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 23.1 | 39.4 |
Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 1.7 | (3.6) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Total long-term debt | [1] | (3,977.7) | (5,034.5) |
Total financial instruments measured at fair value | (3,947.4) | (4,988.9) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 5.7 | 6.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 1 | 0.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 23.4 | 39.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0.2 | (0.4) |
Significant Observable Inputs (Level 2) | |||
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 | 21.1 | 21.2 | |
Significant Observable Inputs (Level 2) | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 19.9 | 24.4 |
Significant Observable Inputs (Level 2) | Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (0.3) | 0 |
Significant Observable Inputs (Level 2) | Foreign currency exchange contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 1.5 | (3.2) |
Significant Unobservable Inputs (Level 3) | |||
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 | |
Significant Unobservable Inputs (Level 3) | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Money Market Funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Marketable securities and other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Commodity contracts - net | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Significant Unobservable Inputs (Level 3) | 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 traded in an active secondary market and valued using quoted prices. For additional information, see Note 7: Debt and Financing Arrangements. | ||
[2] | Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third-party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of April 30, 2022, our municipal obligations are scheduled to mature as follows: $0.2 in 2023, $1.9 in 2024, $1.8 in 2025, $2.1 in 2026, $4.4 in 2027, and the remaining $9.5 in 2028 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 9: Derivative Financial Instruments. |
Other Financial Instruments a_5
Other Financial Instruments and Fair Value Measurements - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Fair Value Disclosures [Abstract] | |||
Company's Municipal bond mature in 2023 | $ 0.2 | ||
Company's Municipal bond mature in 2024 | 1.9 | ||
Company's Municipal bond mature in 2025 | 1.8 | ||
Company's Municipal bond mature in 2026 | 2.1 | ||
Company's Municipal bond mature in 2027 | 4.4 | ||
Company's Municipal bond mature in 2028 and beyond | 9.5 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other intangible assets impairment charges | 150.4 | $ 3.8 | $ 52.4 |
U.S. Retail Pet Foods [Member] | Trademarks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other intangible assets impairment charges | $ 150.4 | $ 52.4 | |
U.S. Retail Consumer Foods [Member] | Trademarks | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other intangible assets impairment charges | $ 3.8 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 106.5 | $ 142 |
Current operating lease liabilities | 40.1 | 41.1 |
Noncurrent operating lease liabilities | 76.2 | 112.8 |
Total operating lease liabilities | 116.3 | 153.9 |
Machinery and equipment | 8.1 | 9.8 |
Accumulated depreciation | $ (4.3) | $ (5.5) |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Machinery and Equipment, Gross, Property, Plant and Equipment, Net | Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment, Machinery and Equipment, Gross, Property, Plant and Equipment, Net |
Total property, plant, and equipment | $ 3.8 | $ 4.3 |
Other current liabilities | $ 1.4 | $ 1.8 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Current | Other Liabilities, Current |
Other noncurrent liabilities | $ 2.5 | $ 2.5 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other Liabilities, Noncurrent | Other Liabilities, Noncurrent |
Total finance lease liabilities | $ 3.9 | $ 4.3 |
Total finance lease liabilities | Liabilities | Liabilities |
Leases (Details 1)
Leases (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | |||
Operating lease cost | $ 43.8 | $ 45.4 | $ 51.7 |
Finance lease cost: | |||
Amortization of right-of-use assets | 2 | 2.4 | 2.8 |
Interest on lease liabilities | 0.1 | 0.1 | 0.2 |
Variable lease cost | 21.6 | 23.2 | 22.9 |
Short-term lease cost | 43.5 | 37.6 | 35.2 |
Sublease income | (1.5) | (3.7) | (4.3) |
Net lease cost | $ 109.5 | $ 105 | $ 108.5 |
Leases (Details 2)
Leases (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Leases [Abstract] | |||
Operating cash flows from operating leases | $ 45.6 | $ 45.7 | $ 50.8 |
Operating cash flows from finance leases | 0.1 | 0.2 | 0.2 |
Financing cash flows from finance leases | 2.1 | 2.6 | 2.8 |
Right-of-use assets obtained in exchange for operating lease liabilities | 7.2 | 34.8 | 57 |
Right-of-use assets obtained in exchange for finance lease liabilities | $ 1.8 | $ 1.1 | $ 2.6 |
Leases (Details 3)
Leases (Details 3) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 42.2 | |
2024 | 30.6 | |
2025 | 21.6 | |
2026 | 18.9 | |
2027 | 5.4 | |
2028 and beyond | 2.7 | |
Total undiscounted minimum lease payments | 121.4 | |
Less: Imputed interest | 5.1 | |
Lease liabilities | 116.3 | $ 153.9 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2023 | 1.4 | |
2024 | 1.1 | |
2025 | 0.8 | |
2026 | 0.4 | |
2027 | 0.1 | |
2028 and beyond | 0.2 | |
Total undiscounted minimum lease payments | 4 | |
Less: Imputed interest | 0.1 | |
Total finance lease liabilities | $ 3.9 | $ 4.3 |
Leases (Details 4)
Leases (Details 4) | Apr. 30, 2022 | Apr. 30, 2021 |
Leases [Abstract] | ||
Operating leases, Weighted average remaining lease term | 3 years 7 months 6 days | 4 years 4 months 24 days |
Finance leases, Weighted average remaining lease term | 3 years 3 months 18 days | 3 years 1 month 6 days |
Operating leases, Weighted average discount rate | 2.50% | 2.50% |
Finance leases, Weighted average discount rate | 2.10% | 2.60% |
Share-Based Payments (Details)
Share-Based Payments (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility (%) | 24.00% | 23.00% | 20.10% |
Dividend yield (%) | 2.70% | 3.20% | 2.80% |
Risk-free interest rate (%) | 1.00% | 0.40% | 1.90% |
Expected life of stock options (years) | 6 years | 6 years | 6 years |
Share-Based Payments (Details 1
Share-Based Payments (Details 1) | 12 Months Ended |
Apr. 30, 2022$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding at May 1, 2021, number of options | shares | 720,083 |
Granted, number of options | shares | 152,971 |
Exercised, number of options | shares | (145,312) |
Outstanding at April 30, 2022, number of options | shares | 727,742 |
Exercisable at April 30, 2022, number of options | shares | 343,526 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |
Outstanding at May 1, 2021, weighted average exercise price (in dollars per share) | $ / shares | $ 113.48 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 135.53 |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 112.22 |
Outstanding at April 30, 2022, weighted average exercise price (in dollars per share) | $ / shares | 118.37 |
Exercisable at April 30, 2022, weighted average exercise price (in dollars per share) | $ / shares | $ 115.23 |
Share-Based Payments (Details 2
Share-Based Payments (Details 2) - $ / shares | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Restricted Shares and Deferred Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Restricted Shares and Deferred Stock Units and Performance Units | 598,738 | ||
Granted | 66,514 | 83,188 | 245,945 |
Vested | (179,584) | ||
Forfeited | (54,613) | ||
Ending Balance, Restricted Shares and Deferred Stock Units and Performance Units | 431,055 | 598,738 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 116.54 | ||
Granted | 135.10 | $ 110.66 | $ 121.19 |
Vested | 121.07 | ||
Forfeited | 118.71 | ||
Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 117.24 | $ 116.54 | |
Performance Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Beginning Balance, Restricted Shares and Deferred Stock Units and Performance Units | 325,453 | ||
Granted | 171,907 | 194,786 | 168,212 |
Vested | 0 | ||
Forfeited | (34,883) | ||
Ending Balance, Restricted Shares and Deferred Stock Units and Performance Units | 462,477 | 325,453 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||
Beginning Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 118.21 | ||
Granted | 135.53 | $ 113.70 | $ 123.68 |
Vested | 0 | ||
Forfeited | 123.90 | ||
Ending Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ 124.22 | $ 118.21 |
Share-Based Payments (Details 3
Share-Based Payments (Details 3) - $ / shares | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Restricted Shares And Deferred Stock Units [Member] | |||
Weighted-average grant date fair values of the equity awards | |||
Restricted Shares and Deferred Stock Units and Performance Units | 66,514 | 83,188 | 245,945 |
Weighted-Average Grant Date Fair Value Per Share | $ 135.10 | $ 110.66 | $ 121.19 |
Performance Units [Member] | |||
Weighted-average grant date fair values of the equity awards | |||
Restricted Shares and Deferred Stock Units and Performance Units | 171,907 | 194,786 | 168,212 |
Weighted-Average Grant Date Fair Value Per Share | $ 135.53 | $ 113.70 | $ 123.68 |
Share-Based Payments - Narrativ
Share-Based Payments - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance | 4,247,728 | ||
Options granted in period gross | 152,971 | ||
Vesting period for share-based payments | 3 years | ||
Closing market price (in dollars per share) | $ 136.93 | ||
Share-based compensation expense | $ 22.3 | $ 28.7 | $ 26.8 |
Related income tax benefit | 5.3 | 6.6 | 6.4 |
Cash received from option exercises | 16.3 | 4.5 | 7.1 |
Equity instruments other than options vested in period weighted average grant date fair value total value | 21.7 | 23.1 | 14.7 |
Fair value of equity awards other than stock options vesting | $ 24 | $ 19.7 | $ 14.5 |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options granted in period gross | 152,971 | 296,619 | 193,831 |
Forfeiture period for share-based payments | 10 years | ||
Aggregate intrinsic value - outstanding | $ 13.5 | ||
Aggregate intrinsic value - exercisable | $ 7.5 | ||
Average remaining contractual term - outstanding | 7 years | ||
Average remaining contractual term - exercisable | 5 years 4 months 24 days | ||
Intrinsic value of options exercised | $ 3.6 | $ 0.6 | $ 0.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 22.46 | ||
Share-based compensation expense | $ 3 | 2.3 | 1.3 |
Related income tax benefit | 0.7 | 0.5 | 0.3 |
Unrecognized compensation expense | 3.8 | ||
Cash received from option exercises | $ 16.3 | $ 4.5 | $ 7.1 |
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for share-based payments | 3 years | ||
Restricted Shares And Deferred Stock Units 2022, 2021, and 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for share-based payments | 3 years | ||
Restricted Shares And Deferred Stock Units Before 2020 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Requisite service period for share-based payments | 4 years |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Income (loss) before income taxes | |||
Domestic | $ 806 | $ 1,176.6 | $ 986.7 |
Foreign | 37.8 | (4.7) | 40 |
Income Before Income Taxes | $ 843.8 | $ 1,171.9 | $ 1,026.7 |
Income Taxes (Details 1)
Income Taxes (Details 1) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Current: | |||
Federal | $ 201.8 | $ 251.3 | $ 188.7 |
Foreign | 9.2 | 11.7 | 8.5 |
State and local | 39 | 46.7 | 42.4 |
Deferred: | |||
Federal | (48.1) | (3.3) | 7.1 |
Foreign | 0.3 | (7.9) | 0.6 |
State and local | 9.9 | (2.9) | (0.1) |
Total income tax expense (benefit) | $ 212.1 | $ 295.6 | $ 247.2 |
Income Taxes (Details 2)
Income Taxes (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
(Percent of Pre-tax Income) | |||
Statutory federal income tax rate | 21.00% | 21.00% | 21.00% |
Sale of the Crisco business | 0.00% | 4.50% | 0.00% |
Sale of the Natural Balance business | 0.00% | (3.00%) | 0.00% |
State and local income taxes | 2.60% | 2.90% | 3.30% |
Deferred tax expense from internal restructuring | 2.00% | 0.00% | 0.00% |
Other items – net | (0.50%) | (0.20%) | (0.20%) |
Effective income tax rate | 25.10% | 25.20% | 24.10% |
Income taxes paid | $ 233 | $ 333.2 | $ 227.1 |
Income Taxes (Details 3)
Income Taxes (Details 3) - USD ($) $ in Millions | Apr. 30, 2022 | Apr. 30, 2021 |
Deferred tax liabilities: | ||
Intangible assets | $ 1,303.5 | $ 1,347.4 |
Property, plant, and equipment | 174.7 | 187.9 |
Leases | 21.8 | 27.4 |
Other | 19.2 | 16.2 |
Total deferred tax liabilities | 1,519.2 | 1,578.9 |
Deferred tax assets: | ||
Post-employment and other employee benefits | 66.2 | 103.6 |
Tax credit and loss carryforwards | 27.8 | 28.3 |
Intangible assets | 15.9 | 17.1 |
Hedging transactions | 47.6 | 43.4 |
Leases | 23.5 | 29.4 |
Other | 42.3 | 38.5 |
Total deferred tax assets | 223.3 | 260.3 |
Valuation allowance | (29.9) | (30.7) |
Total deferred tax assets, less allowance | 193.4 | 229.6 |
Net deferred tax liability | $ 1,325.8 | $ 1,349.3 |
Income Taxes (Details 4)
Income Taxes (Details 4) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | |
Reconciliation of unrecognized tax benefits | |||
Balance at May 1, | $ 10.2 | $ 13.1 | $ 15 |
Increases: | |||
Current year tax positions | 0.1 | 0.7 | 1.4 |
Prior year tax positions | 0.2 | 0 | 0.2 |
Decreases: | |||
Expiration of statute of limitations periods | 4 | 2.6 | 3.5 |
Prior year tax positions | 0 | 1 | 0 |
Balance at April 30, | $ 6.5 | $ 10.2 | $ 13.1 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | Apr. 30, 2019 | |
Tax Credit Carryforward [Line Items] | ||||
Income tax expense (benefit) | $ 212.1 | $ 295.6 | $ 247.2 | |
Foreign Earnings Repatriated | 0 | 100 | ||
Undistributed earnings of foreign subsidiaries on which deferred income taxes not provided | 30 | |||
Company's unrecognized tax benefits | 6.5 | 10.2 | 13.1 | $ 15 |
Unrecognized tax benefits that would affect the effective tax rate | $ 5.1 | 8.1 | $ 10.5 | |
Time period over which it is reasonably possible that the Company could decrease its unrecognized tax benefits | 12 months | |||
Amount unrecognized tax benefit could decrease in next 12 months | $ 1.2 | |||
Foreign Tax Authority | ||||
Tax Credit Carryforward [Line Items] | ||||
Foreign Earning Repatriated, Withholding Taxes | $ 5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2022 | Apr. 30, 2021 | Apr. 30, 2020 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | $ (277.4) | |||
Accumulated Other Comprehensive Income (Loss), Ending Balance | (237.4) | $ (277.4) | ||
Foreign Currency Translation Adjustment [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (9) | (50.5) | $ (35.5) | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | (12.1) | 41.5 | (15) | |
Income tax benefit (expense) | 0 | 0 | 0 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | (21.1) | (9) | (50.5) | |
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] | (174.8) | (185.6) | (40.4) |
Reclassification adjustments | [1] | 13.1 | 13.8 | 2.1 |
Current period credit (charge) | [1] | 0 | 0 | (190.7) |
Income tax benefit (expense) | [1] | (2.2) | (3) | 43.4 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [1] | (163.9) | (174.8) | (185.6) |
Pension and Other Postretirement Liabilities [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | [2] | (97.3) | (146.7) | (110) |
Reclassification adjustments | [2] | 17.6 | 46.3 | 7.4 |
Current period credit (charge) | [2] | 38.1 | 18.9 | (54.8) |
Income tax benefit (expense) | [2] | (12.6) | (15.8) | 10.7 |
Accumulated Other Comprehensive Income (Loss), Ending Balance | [2] | (54.2) | (97.3) | (146.7) |
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 | 3.7 | 3.8 | 4.1 | |
Reclassification adjustments | 0 | 0 | 0 | |
Current period credit (charge) | (2.5) | (0.1) | (0.4) | |
Income tax benefit (expense) | 0.6 | 0 | 0.1 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | 1.8 | 3.7 | 3.8 | |
AOCI Attributable to Parent [Member] | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Accumulated Other Comprehensive Income (Loss), Beginning Balance | (277.4) | (379) | (181.8) | |
Reclassification adjustments | 30.7 | 60.1 | 9.5 | |
Current period credit (charge) | 23.5 | 60.3 | (260.9) | |
Income tax benefit (expense) | (14.2) | (18.8) | 54.2 | |
Accumulated Other Comprehensive Income (Loss), Ending Balance | $ (237.4) | $ (277.4) | $ (379) | |
[1] | The reclassification is composed of deferred gains (losses) related to terminated interest rate contracts. During 2022, 2021, and 2020, the reclassification was primarily from accumulated other comprehensive income (loss) to interest expense. In addition, during 2022, a portion of the reclassification was to other income (expense) – net, which was driven by the prepayment of the Senior Notes due March 15, 2022. The current period charge in 2020 relates to losses on the interest rate contracts entered into in November 2018 and June 2018 that were terminated in 2020. For additional information, see Note 9: Derivative Financial Instruments. | |||
[2] | 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 in 2021 primarily includes the impact of the nonrecurring settlement charges related to the Canadian buy-out contract. For additional information, see Note 8: Pensions and Other Postretirement Benefits. |
Contingencies - Narrative (Deta
Contingencies - Narrative (Details) - Jif Peanut Butter Recall $ in Millions | Apr. 30, 2022USD ($) |
Loss Contingencies [Line Items] | |
Loss Contingency, Accrual, Current | $ 52.3 |
Loss Contingency, Receivable, Current | 49.8 |
Loss Contingency, Range of Possible Loss, Portion Not Accrued | $ 125 |
Common Shares (Details)
Common Shares (Details) shares in Millions, $ in Millions | 12 Months Ended | ||||
Apr. 30, 2022USD ($)votes_per_shareshares | Apr. 30, 2021USD ($)shares | Apr. 30, 2020USD ($) | Oct. 22, 2021shares | Jul. 31, 2021shares | |
Stockholders' Equity Note [Abstract] | |||||
Number of votes each holder of a common share outstanding is entitled | votes_per_share | 1 | ||||
Number of votes per share | votes_per_share | 10 | ||||
Number of votes per share after change in beneficial ownership | votes_per_share | 1 | ||||
Number of years required to pass after change in beneficial ownership | 4 years | ||||
Equity, Class of Treasury Stock [Line Items] | |||||
Payments for shares repurchased | $ | $ 270.4 | $ 678.4 | $ 4.2 | ||
Board Authorized Repurchased Plan | |||||
Equity, Class of Treasury Stock [Line Items] | |||||
Shares authorized to be repurchased, shares | shares | 7.8 | 5 | |||
Shares remaining for repurchase, shares | shares | 5.8 | 2.8 | |||
Shares repurchased during period, shares | shares | 2 | 5.8 | |||
Payments for shares repurchased | $ | $ 262.5 | $ 671.9 |