Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Jul. 31, 2015 | Aug. 28, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | J M SMUCKER Co | |
Entity Central Index Key | 91,419 | |
Document Type | 10-Q | |
Document Period End Date | Jul. 31, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 119,665,073 |
Condensed Statements of Consoli
Condensed Statements of Consolidated Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | ||
Income Statement [Abstract] | |||
Net sales | $ 1,952 | $ 1,323.8 | |
Cost of products sold | 1,223.3 | 845.1 | |
Gross Profit | 728.7 | 478.7 | |
Selling, distribution, and administrative expenses | 387.6 | 253.4 | |
Amortization | 53 | 24.9 | |
Other special project costs | [1] | 22.9 | 8.6 |
Other operating (income) expense - net | (1.9) | 0.2 | |
Operating Income | 267.1 | 191.6 | |
Interest expense - net | (44.4) | (17.4) | |
Other income - net | 0.1 | 1.3 | |
Income Before Income Taxes | 222.8 | 175.5 | |
Income taxes | 86.4 | 59.5 | |
Net Income | $ 136.4 | $ 116 | |
Earnings per common share: | |||
Net Income | $ 1.14 | $ 1.14 | |
Net Income - Assuming Dilution | 1.14 | 1.14 | |
Dividends Declared per Common Share | $ 0.67 | $ 0.64 | |
[1] | Other special project costs includes restructuring and merger and integration costs. For more information on businesses acquired, see Note 3: Acquisitions. |
Condensed Statements of Consol3
Condensed Statements of Consolidated Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Condensed Statements of Comprehensive Income [Abstract] | ||
Net income | $ 136.4 | $ 116 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (25.5) | (2.8) |
Cash flow hedging derivative activity, net of tax | 0.1 | (4.3) |
Pension and other postretirement benefit plans activity, net of tax | 4.5 | 1.4 |
Available-for-sale securities activity, net of tax | (0.2) | 0.4 |
Total Other Comprehensive Loss | (21.1) | (5.3) |
Comprehensive Income | $ 115.3 | $ 110.7 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 133.6 | $ 125.6 |
Trade receivables, less allowance for doubtful accounts | 507.9 | 430.1 |
Inventories: | ||
Finished products | 778 | 815 |
Raw materials | 372.8 | 348.6 |
Total Inventories | 1,150.8 | 1,163.6 |
Other current assets | 233.2 | 340.9 |
Total Current Assets | 2,025.5 | 2,060.2 |
Property, Plant, and Equipment | ||
Land and land improvements | 113.6 | 113.7 |
Buildings and fixtures | 701.1 | 666.3 |
Machinery and equipment | 1,811 | 1,783.8 |
Construction in progress | 100.7 | 135.3 |
Property, Plant, and Equipment, Gross | 2,726.4 | 2,699.1 |
Accumulated depreciation | (1,069.6) | (1,020.8) |
Total Property, Plant, and Equipment | 1,656.8 | 1,678.3 |
Other Noncurrent Assets | ||
Goodwill | 6,001.4 | 6,011.6 |
Other intangible assets - net | 6,891.7 | 6,950.3 |
Other noncurrent assets | 183 | 182.2 |
Total Other Noncurrent Assets | 13,076.1 | 13,144.1 |
Total Assets | 16,758.4 | 16,882.6 |
Current Liabilities | ||
Accounts payable | 347.1 | 402.8 |
Accrued trade marketing and merchandising | 113.5 | 104.9 |
Short-term borrowings | 302.6 | 226 |
Other current liabilities | 295.9 | 288.9 |
Total Current Liabilities | 1,059.1 | 1,022.6 |
Noncurrent Liabilities | ||
Long-term debt | 5,694.7 | 5,944.9 |
Deferred income taxes | 2,522.2 | 2,473.3 |
Other noncurrent liabilities | 352.4 | 354.9 |
Total Noncurrent Liabilities | 8,569.3 | 8,773.1 |
Total Liabilities | 9,628.4 | 9,795.7 |
Shareholders' Equity | ||
Common shares | 29.9 | 29.9 |
Additional capital | 6,017 | 6,007.7 |
Retained income | 1,214 | 1,159.2 |
Amount due from ESOP Trust | 0 | (0.1) |
Accumulated other comprehensive loss | (130.9) | (109.8) |
Total Shareholders' Equity | 7,130 | 7,086.9 |
Total Liabilities and Shareholders' Equity | $ 16,758.4 | $ 16,882.6 |
Condensed Statements of Consol5
Condensed Statements of Consolidated Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Operating Activities | ||
Net income | $ 136.4 | $ 116 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 55.7 | 38.3 |
Amortization | 53 | 24.9 |
Other noncash adjustments | (3.5) | (0.1) |
Share-based compensation expense | 7.7 | 6.9 |
Loss on disposal of assets - net | 1.3 | 0.5 |
Defined benefit pension contributions | (0.9) | (1.3) |
Changes in assets and liabilities, net of effect from businesses acquired: | ||
Trade receivables | (80.8) | (83) |
Inventories | 8.4 | (153.3) |
Other current assets | 13.5 | 27.1 |
Accounts payable | (37.8) | (9.8) |
Accrued liabilities | 21.1 | (14.3) |
Income and other taxes | 126 | 45.6 |
Other - net | 5 | (5.6) |
Net Cash Provided by (Used for) Operating Activities | 305.1 | (8.1) |
Investing Activities | ||
Business acquired, net of cash acquired | 7.9 | 0 |
Additions to property, plant, and equipment | (53) | (49) |
Proceeds from disposal of property, plant, and equipment | 0 | 1.2 |
Other - net | 7 | (4.3) |
Net Cash Used for Investing Activities | (38.1) | (52.1) |
Financing Activities | ||
Short-term borrowings - net | 76.6 | 221.6 |
Repayments of long-term debt | (250) | (100) |
Quarterly dividends paid | (76.4) | (58.9) |
Purchase of treasury shares | (6.9) | (10.6) |
Other - net | 2.4 | 7.8 |
Net Cash (Used for) Provided by Financing Activities | (254.3) | 59.9 |
Effect of exchange rate changes on cash | (4.7) | (3.8) |
Net increase (decrease) in cash and cash equivalents | 8 | (4.1) |
Cash and cash equivalents at beginning of period | 125.6 | 153.5 |
Cash and Cash Equivalents at End of Period | $ 133.6 | $ 149.4 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Jul. 31, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Note 1: Basis of Presentation The unaudited condensed consolidated financial statements of The J. M. Smucker Company (“Company,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included. Operating results for the three-month period ended July 31, 2015, are not necessarily indicative of the results that may be expected for the year ending April 30, 2016. For further information, reference is made to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended April 30, 2015. |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Jul. 31, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 2: Recently Issued Accounting Standards In May 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2015-07, Fair Value Measurement (Topic 820) Disclosure for Investments in Certain Entities That Calculate Net Asset Value per Share (or Its Equivalent) In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30) Simplifying the Presentation of Debt Issuance Costs In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) Revenue from Contracts with Customers (Topic 606) Deferral of the Effective Date |
Acquisitions
Acquisitions | 3 Months Ended |
Jul. 31, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | Note 3: Acquisitions On March 23, 2015, we completed the acquisition of Big Heart Pet Brands (“Big Heart”), a leading producer, distributor, and marketer of premium-quality, branded pet food and pet snacks in the U.S., through the acquisition of Blue Acquisition Group, Inc. (“BAG”), Big Heart’s parent company. As a result of the acquisition, the assets and liabilities of BAG are now held by a direct wholly-owned subsidiary of the Company. The total consideration paid in connection with the acquisition was $5.9 billion, as set forth below, which included the issuance of 17.9 million of our common shares to BAG’s shareholders, valued at $2.0 billion based on the average stock price of our common shares on March 23, 2015. After the closing of the transaction, we had approximately 120.0 million common shares outstanding. We assumed $2.6 billion in debt, including Big Heart’s senior secured term loan and senior notes, and we paid an additional $1.2 billion in cash, net of a working capital adjustment. As part of the transaction, new debt of $5.4 billion was borrowed, consisting of a $1.8 billion bank term loan and $3.7 billion in Senior Notes, and Big Heart’s debt obligations and our existing private placement Senior Notes were paid off. Shares issued $ 2,035.5 Assumed debt from Big Heart 2,630.2 Cash consideration, net of cash acquired 1,232.1 Total purchase price $ 5,897.8 The transaction was accounted for under the acquisition method of accounting and, accordingly, the results of Big Heart’s operations, including $561.3 in revenue and operating income of $64.3, are included in our consolidated financial statements as of July 31, 2015. Total one-time costs related to the acquisition are expected to be approximately $225.0, of which approximately $150.0 are expected to be cash charges. The one-time costs consist primarily of employee-related costs, outside service and consulting costs, and other costs directly related to the acquisition. These one-time costs are anticipated to be incurred primarily over the next three years, with one-half of the costs expected to be recognized in 2016. We incurred costs of $24.8 in the first quarter of 2016, resulting in total costs of $60.8 from the date of acquisition, that were directly related to the merger and integration of Big Heart. The majority of these charges were reported in other special project costs in the Condensed Statement of Consolidated Income. Due to the nature of these costs, they were expensed as incurred. The Big Heart purchase price was preliminarily allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. We determined the estimated fair values based on independent appraisals, discounted cash flow analyses, quoted market prices, and estimates made by management. The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and, as such, the excess was allocated to goodwill. Changes to these preliminary fair values have been retrospectively applied to the Condensed Consolidated Balance Sheet as of April 30, 2015, and certain fair values have been subsequently adjusted. These adjustments include a net adjustment to goodwill of $1.8, which resulted from a favorable working capital adjustment and a change in the estimated fair value of an equity method investment. The valuation for the equity method investment was not complete at April 30, 2015, and was finalized during the first quarter of 2016. The following table summarizes the preliminary fair values at July 31, 2015, of the assets acquired and liabilities assumed at the acquisition date. Assets acquired: Trade receivables $ 142.0 Inventories 254.5 Other current assets 208.2 Property, plant, and equipment 324.0 Intangible assets 4,009.8 Goodwill 2,873.0 Other noncurrent assets 28.3 Total assets acquired $ 7,839.8 Liabilities assumed: Current liabilities $ 393.2 Deferred tax liabilities 1,464.0 Other noncurrent liabilities 84.8 Total liabilities assumed $ 1,942.0 Net assets acquired $ 5,897.8 As a result of the acquisition, we recognized a total of $2.9 billion of goodwill, of which $87.5 is remaining as deductible for tax purposes at July 31, 2015. Goodwill represents the value we expect to achieve through the implementation of operational synergies and growth opportunities across our segments. The final allocation of goodwill to our reporting units was not complete as of July 31, 2015, but will be complete by the end of 2016. Certain estimated values for the acquisition, including goodwill, intangible assets, property, plant, and equipment, contingent liabilities, and income taxes, are not yet finalized. The purchase price was preliminarily allocated based on information available at the acquisition date and is subject to change as we complete our analysis of the fair values of the assets and liabilities assumed at the date of acquisition during the measurement period as defined under FASB Accounting Standards Codification (“ASC”) 805, Business Combinations The purchase price was preliminarily allocated to the identifiable intangible assets acquired as follows: Intangible assets with finite lives: Customer relationships (25-year useful life) $ 2,289.8 Trademarks (15-year useful life) 257.0 Intangible assets with indefinite lives: Trademarks 1,463.0 Total intangible assets $ 4,009.8 Big Heart’s results of operations are included in our consolidated financial statements from the date of the transaction. Had the transaction occurred on May 1, 2013, unaudited pro forma consolidated results for the quarter ended July 31, 2014, would have been as follows: Three Months Ended Net sales $ 1,853.5 Net income 122.4 Net income per common share - assuming dilution 1.02 The unaudited pro forma consolidated results are based on our historical financial statements and those of Big Heart, and do not necessarily indicate the results of operations that would have resulted had the acquisition been completed at May 1, 2013. The most significant pro forma adjustments relate to amortization of intangible assets, higher interest expense associated with the bank term loan and long-term notes, and the impact of additional common shares issued as a result of the acquisition. The unaudited pro forma consolidated results do not give effect to the synergies of the acquisition and are not indicative of the results of operations in future periods. In addition to the Big Heart acquisition, on September 2, 2014, we completed the acquisition of Sahale Snacks, Inc. (“Sahale”), a privately-held manufacturer and marketer of premium, branded nut and fruit snacks for $80.5 in cash, net of a working capital adjustment. As a result, Sahale became a wholly-owned subsidiary of the Company. The purchase price was allocated to the underlying assets acquired and liabilities assumed based upon their estimated fair values at the date of acquisition. The purchase price allocation included total intangible assets of $30.4. The purchase price exceeded the estimated fair value of the net identifiable tangible and intangible assets acquired and, as a result, the excess was allocated to goodwill. Preliminary valuations resulted in Sahale goodwill of $47.9, and the entire amount was assigned to the U.S. Retail Consumer Foods segment. Sahale goodwill is preliminary as of July 31, 2015, pending the finalization of our tax basis. The results of operations of Sahale are included in the consolidated financial statements from the date of the transaction and did not have a material impact on the quarter ended July 31, 2015. |
Reportable Segments
Reportable Segments | 3 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments | Note 4: Reportable Segments We operate in one industry: the manufacturing and marketing of food products. Effective May 1, 2015, our reportable segments were modified to align with the way performance is currently evaluated by our segment management and chief operating decision maker, our Chief Executive Officer, and the way in which we currently report information internally. We now have three reportable segments: U.S. Retail Coffee, U.S. Retail Consumer Foods, and U.S. Retail Pet Foods. Within our segment results, we also present International and Foodservice, which is a combination of the strategic business areas not included in the U.S. retail market segments. The U.S. Retail Consumer Foods segment is a combination of the former U.S. Retail Consumer Foods segment and the Natural Foods strategic business area, previously included in the former International, Foodservice, and Natural Foods segment. Prior year segment results have been modified to reflect the realignment of our segments. The U.S. Retail Coffee segment primarily includes the domestic sales of Folgers ® and Dunkin’ Donuts ® branded coffee; the U.S. Retail Consumer Foods segment primarily includes domestic sales of Jif ® , Smucker’s ® , Pillsbury ® , and Crisco ® branded products; and the U.S. Retail Pet Foods segment primarily includes domestic sales of Meow Mix ® , Milk-Bone ® , Kibbles ’n Bits ® , Natural Balance ® , 9Lives ® , Pup-Peroni ® , Gravy Train ® , and Nature’s Recipe ® branded products. International and Foodservice is comprised of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., restaurants, lodging, schools and universities, health care operators). Segment profit represents net sales, less direct and allocable operating expenses, and is consistent with the way in which we manage our segments. However, we do not represent that the segments, if operated independently, would report operating profit equal to the segment profit set forth below, as segment profit excludes certain operating expenses such as corporate administrative expenses and unallocated gains and losses on commodity and foreign currency exchange derivative activities. Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures. Three Months Ended July 31, 2015 2014 Net sales: U.S. Retail Coffee $ 565.0 $ 502.7 U.S. Retail Consumer Foods 582.2 582.4 U.S. Retail Pet Foods 549.9 — International and Foodservice 254.9 238.7 Total net sales $ 1,952.0 $ 1,323.8 Segment profit: U.S. Retail Coffee $ 155.1 $ 137.6 U.S. Retail Consumer Foods 117.5 118.1 U.S. Retail Pet Foods 90.0 — International and Foodservice 30.5 30.5 Total segment profit $ 393.1 $ 286.2 Interest expense – net (44.4) (17.4) Unallocated derivative losses (10.0) (21.4) Cost of products sold – special project costs (3.1) (0.4) Other special project costs (22.9) (8.6) Corporate administrative expenses (90.0) (64.2) Other income - net 0.1 1.3 Income before income taxes $ 222.8 $ 175.5 |
Earnings per Share
Earnings per Share | 3 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Note 5: Earnings per Share The following table sets forth the computation of net income per common share and net income per common share – assuming dilution under the two-class method. Three Months Ended July 31, 2015 2014 Net income $ 136.4 $ 116.0 Net income allocated to participating securities 0.6 0.8 Net income allocated to common stockholders $ 135.8 $ 115.2 Weighted-average common shares outstanding 119,089,757 101,028,622 Dilutive effect of stock options 13,205 8,471 Weighted-average common shares outstanding – assuming dilution 119,102,962 101,037,093 Net income per common share $ 1.14 $ 1.14 Net income per common share – assuming dilution $ 1.14 $ 1.14 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Jul. 31, 2015 | |
Debt and Financing Arrangements [Abstract] | |
Debt and Financing Arrangements | Note 6: Debt and Financing Arrangements Long-term debt consists of the following: July 31, 2015 April 30, 2015 Principal Carrying Principal Carrying Outstanding Amount (A) Outstanding Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 497.2 $ 500.0 $ 496.9 2.50% Senior Notes due March 15, 2020 500.0 494.6 500.0 494.3 3.50% Senior Notes due October 15, 2021 750.0 794.3 750.0 796.0 3.00% Senior Notes due March 15, 2022 400.0 395.4 400.0 395.3 3.50% Senior Notes due March 15, 2025 1,000.0 992.1 1,000.0 991.9 4.25% Senior Notes due March 15, 2035 650.0 641.9 650.0 641.8 4.38% Senior Notes due March 15, 2045 600.0 584.0 600.0 583.8 Term Loan Credit Agreement due March 23, 2020 1,300.0 1,295.2 1,550.0 1,544.9 Total long-term debt $ 5,700.0 $ 5,694.7 $ 5,950.0 $ 5,944.9 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. In March 2015, we entered into a senior unsecured delayed-draw Term Loan Credit Agreement (“Term Loan”) with a syndicate of banks and an available commitment amount of $1.8 billion. Borrowings under the Term Loan bear interest on the prevailing U.S. Prime Rate or London Interbank Offered Rate (“LIBOR”), based on our election, and is payable either on a quarterly basis or at the end of the borrowing term. The weighted-average interest rate on the Term Loan at July 31, 2015, was 1.51 percent. The Term Loan requires quarterly amortization payments of 2.5 percent of the original principal amount starting in the third quarter of 2016. Voluntary prepayments are permitted without premium or penalty and are applied to the schedule of required quarterly minimum payment obligations in direct order of maturity. As of July 31, 2015, we have prepaid $450.0 on the Term Loan, including $250.0 in the first quarter of 2016, and therefore no additional payments are required until July 31, 2018. Also in March 2015, we completed an offering of $3.7 billion in Senior Notes due beginning March 15, 2018 through March 15, 2045. The proceeds from the offering, along with the Term Loan, were used to partially finance the Big Heart acquisition, pay off the debt assumed as part of the Big Heart acquisition, and prepay our privately placed Senior Notes. All of our Senior Notes outstanding at July 31, 2015, are unsecured and interest is paid semiannually. There are no required scheduled principal payments on our Senior Notes. We may prepay at any time 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. During 2015, we entered into a series of forward-starting interest rate swaps that were designated as cash flow hedges. In conjunction with the pricing of the series of Senior Notes, we terminated the interest rate swaps prior to maturity, resulting in a net loss of $4.0, which will be amortized over the life of the remaining debt. During 2014, we entered into an interest rate swap designated as a fair value hedge of the underlying debt obligation. In 2015, we terminated the interest rate swap agreement and we received $58.1 in cash. At July 31, 2015, the remaining benefit of $49.4 was recorded as an increase in the long-term debt balance and will be recognized ratably as a reduction to future interest expense over the remaining life of the related debt. For additional information, see Note 8: Derivative Financial Instruments. We have available a $1.5 billion revolving credit facility with a group of 11 banks that matures in September 2018. Borrowings under the revolving credit facility bear interest based on the prevailing U.S. Prime Rate, Canadian Base Rate, LIBOR, or Canadian Dealer Offered Rate, based on our election. Interest is payable either on a quarterly basis or at the end of the borrowing term. At July 31, 2015, we did not have a balance outstanding under the revolving credit facility. During the second quarter of 2015, we entered into a commercial paper program under which we can issue short-term, unsecured commercial paper not to exceed $1.0 billion at any time. The commercial paper program is backed by our revolving credit facility and reduces what we can borrow under the revolving credit facility by the amount of commercial paper outstanding. Commercial paper will be used as a continuing source of short-term financing for general corporate purposes. As of July 31, 2015, we had $302.6 of short-term borrowings outstanding, virtually all of which were issued under our commercial paper program at a weighted-average interest rate of 0.45 percent. Interest paid totaled $7.2 and $24.7 for the three months ended July 31, 2015 and 2014, respectively. This differs from interest expense due to the timing of payments, amortization of fair value swap adjustments, effect of the interest rate swap, amortization of debt issuance costs, and capitalized interest. Our debt instruments contain certain financial covenant restrictions, including a leverage ratio and an interest coverage ratio. We are in compliance with all covenants. |
Pensions and Other Postretireme
Pensions and Other Postretirement Benefits | 3 Months Ended |
Jul. 31, 2015 | |
Pensions and Other Postretirement Benefits [Abstract] | |
Pensions and Other Postretirement Benefits | Note 7: Pensions and Other Postretirement Benefits The components of our net periodic benefit cost for defined benefit pension and other postretirement benefit plans are shown below. Three Months Ended July 31, Defined Benefit Pension Plans Other Postretirement Benefits 2015 2014 2015 2014 Service cost $ 4.7 $ 2.0 $ 0.6 $ 0.6 Interest cost 7.0 5.7 0.7 0.6 Expected return on plan assets (8.4) (6.3) — — Recognized net actuarial loss 2.7 2.5 — — Prior service cost (credit) 0.2 0.2 (0.3) (0.3) Curtailment (3.7) — — — Net periodic benefit cost $ 2.5 $ 4.1 $ 1.0 $ 0.9 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Jul. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | Note 8: Derivative Financial Instruments We are exposed to market risks, such as changes in commodity prices, foreign currency exchange rates, and interest rates. To manage the volatility related to these exposures, we enter into various derivative transactions. We have policies in place that define acceptable instrument types we may enter into and establish controls to limit our market risk exposure. Commodity Price Management: We enter into commodity futures and options contracts 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, edible oils, corn, soybean meal, wheat, and milk. We also enter into commodity futures and options contracts to manage price risk for energy input costs, including natural gas and diesel fuel. The 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 commodity instrument. Thus, we would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by an increase or decrease in the estimated fair value of the underlying exposures. Foreign Currency Exchange Rate Hedging: We utilize foreign currency forwards and options contracts to manage the effect of foreign currency exchange fluctuations on future cash payments primarily related to purchases of certain raw materials and finished goods. The contracts generally have maturities of less than one year. We do not qualify instruments used to manage foreign currency exchange exposures for hedge accounting treatment. Interest Rate Hedging: We utilize derivative instruments to manage changes in the fair value of our debt. Interest rate swaps mitigate the risk associated with the underlying hedged item. At the inception of the contract, the instrument is evaluated and documented for hedge accounting treatment. If the contract is designated as a cash flow hedge, the mark-to-market gains and losses on the swap are deferred and included as a component of accumulated other comprehensive loss to the extent effective, 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 swap would be recognized at fair value on the balance sheet and changes in the fair value would be recognized in interest expense. Generally, changes in the fair value of the derivative are equal to changes in the fair value of the underlying debt and have no impact on earnings. During 2015, we entered into a series of forward-starting interest rate swaps to hedge a portion of the interest rate risk related to our anticipated issuance of Senior Notes. The notional hedged amount was $1.1 billion, with expected maturity tenors of 10, 20, and 30 years. The swap agreements were designated as cash flow hedges, where changes in fair value are recorded in other comprehensive (loss) income. In March 2015, in conjunction with the pricing of the Senior Notes, we terminated the interest rate swaps prior to maturity. The termination resulted in a net loss of $4.0, which will be amortized over the life of the remaining debt as an increase to interest expense and approximately $0.2 per year will be recognized beginning in 2026 through 2045. For additional information, see Note 6: Debt and Financing Arrangements. During 2014, we entered into an interest rate swap on the 3.50 percent 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. We received cash flows from the counterparty at a fixed rate and paid the counterparty variable rates based on LIBOR. In 2015, we terminated the interest rate swap on the 3.50 percent Senior Notes prior to maturity. As a result of the early termination, we received $58.1 in cash, which included $4.6 of accrued and prepaid interest. The remaining benefit was deferred and will be recognized over the remaining life of the underlying debt as a reduction of future interest expense. We recognized $2.2 in 2015 and an additional $1.8 through July 31, 2015. The remaining will be recognized as follows: $5.6 in 2016, $7.6 in 2017, $7.8 in 2018, $8.0 in 2019, $8.1 in 2020, $8.4 in 2021, and $4.0 in 2022. For additional information, see Note 6: Debt and Financing Arrangements. The following tables set forth the gross fair value amounts of derivative instruments recognized in the Condensed Consolidated Balance Sheets. July 31, 2015 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 6.1 $ 25.5 $ 0.5 $ 4.0 Foreign currency exchange contracts 8.1 — — — Total derivative instruments $ 14.2 $ 25.5 $ 0.5 $ 4.0 April 30, 2015 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 6.4 $ 23.9 $ 0.2 $ 3.8 Foreign currency exchange contracts 4.8 1.0 — — Total derivative instruments $ 11.2 $ 24.9 $ 0.2 $ 3.8 We have elected to not offset fair value amounts recognized for our exchange-traded commodity 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 July 31, 2015 and April 30, 2015, we maintained cash margin account balances of $31.2 and $38.2, respectively, included in other current assets in the Condensed Consolidated Balance Sheets. The change in the cash margin account balances is included in other – net, investing activities in the Condensed Statements of Consolidated Cash Flows. In the event of default and immediate net settlement of all of our open positions with individual counterparties, all of our derivative liabilities would be fully offset by either our derivative asset positions or margin accounts based on the net asset or liability position with our individual counterparties. The following table presents information on pre-tax commodity contract net gains and losses recognized on derivatives designated as cash flow hedges prior to May 1, 2014, and pre-tax losses related to the termination of prior interest rate swaps. Three Months Ended July 31, 2015 2014 Gains reclassified from accumulated other comprehensive loss to cost of products sold (effective portion) $ — $ 7.0 Losses reclassified from accumulated other comprehensive loss to interest expense (effective portion) (0.1) (0.1) Change in accumulated other comprehensive loss $ 0.1 $ (6.9) Included as a component of accumulated other comprehensive loss at July 31, 2015 and April 30, 2015, were deferred pre-tax losses of $8.0 and $8.2, respectively, related to the termination of interest rate swaps. The related tax benefit recognized in accumulated other comprehensive loss was $2.9 at July 31, 2015 and April 30, 2015. Approximately $0.6 of the pre-tax loss will be recognized over the next 12 months. The following table presents the net gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments. Three Months Ended July 31, 2015 2014 Losses on commodity contracts (19.0) $ (21.1) Gains (losses) on foreign currency exchange contracts 8.3 (0.6) Total losses recognized in cost of products sold $ (10.7) $ (21.7) Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. The following table presents the activity in unallocated derivative gains and losses. Three Months Ended July 31, 2015 2014 Net losses on mark-to-market valuation of unallocated derivative positions $ (10.7) $ (21.7) Net losses on derivative positions reclassified to segment operating profit 0.7 0.3 Unallocated derivative losses $ (10.0) $ (21.4) The net cumulative unallocated derivative losses at July 31, 2015, were $30.5, including net realized losses of $26.4. The following table presents the gross contract notional value of outstanding derivative contracts. July 31, 2015 April 30, 2015 Commodity contracts $ 578.9 $ 640.6 Foreign currency exchange contracts 104.5 136.4 |
Other Financial Instruments and
Other Financial Instruments and Fair Value Measurements | 3 Months Ended |
Jul. 31, 2015 | |
Other Financial Instruments and Fair Value Measurements [Abstract] | |
Other Financial Instruments and Fair Value Measurements | Note 9: 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 other financial instruments, with the exception of long-term debt, are recognized at estimated fair value in the Condensed Consolidated Balance Sheets. The following table provides information on the carrying amounts and fair values of our financial instruments. July 31, 2015 April 30, 2015 Carrying Fair Value Carrying Fair Value Other investments $ 47.9 $ 47.9 $ 48.4 $ 48.4 Derivative financial instruments – net (14.8) (14.8) (17.3) (17.3) Long-term debt (5,694.7) (5,598.5) (5,944.9) (6,011.3) 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 Other investments: (A) Equity mutual funds $ 9.6 $ — $ — $ 9.6 Municipal obligations — 37.3 — 37.3 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net (10.9) (12.0) — (22.9) Foreign currency exchange contracts – net 1.1 7.0 — 8.1 Long-term debt (C) (4,296.4) (1,302.1) — (5,598.5) Total financial instruments measured at fair value $ (4,295.6) $ (1,269.8) $ — $ (5,565.4) Quoted Prices in Significant Significant Fair Value at Other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.9 — 37.9 Money market funds 0.8 — — 0.8 Derivative financial instruments: (B) Commodity contracts – net (12.4) (8.7) — (21.1) Foreign currency exchange contracts – net (0.2) 4.0 — 3.8 Long-term debt (C) (4,459.0) (1,552.3) — (6,011.3) Total financial instruments measured at fair value $ (4,461.1) $ (1,519.1) $ — $ (5,980.2) (A) 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 which 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 July 31, 2015, our municipal obligations are scheduled to mature as follows: $0.7 in 2016, $1.3 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $31.3 in 2020 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 6: Debt and Financing Arrangements. |
Income Taxes
Income Taxes | 3 Months Ended |
Jul. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes During the three-month period ended July 31, 2015, the effective income tax rate varied from the U.S. statutory income tax rate mainly due to state income taxes, offset to some extent by the domestic manufacturing deduction. Within the next 12 months, it is reasonably possible that we could decrease our unrecognized tax benefits by an additional $2.1, primarily as a result of expiring statute of limitations periods. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income Loss | 3 Months Ended |
Jul. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 11: Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, including the reclassification adjustments for items that are reclassified from accumulated other comprehensive loss to net income, are shown below. Foreign Unrealized Pension and Unrealized Gain Accumulated Balance at May 1, 2015 $ (2.3) $ (5.2) $ (105.6) $ 3.3 $ (109.8) Reclassification adjustments — 0.1 4.8 — 4.9 Current period (charge) credit (25.5) — 1.7 (0.3) (24.1) Income tax (expense) benefit — — (2.0) 0.1 (1.9) Balance at July 31, 2015 $ (27.8) $ (5.1) $ (101.1) $ 3.1 $ (130.9) Foreign Unrealized Pension and Unrealized Accumulated Balance at May 1, 2014 $ 31.7 $ 15.3 $ (102.0) $ 3.4 $ (51.6) Reclassification adjustments — (6.9) 2.2 — (4.7) Current period (charge) credit (2.8) — — 0.7 (2.1) Income tax benefit (expense) — 2.6 (0.8) (0.3) 1.5 Balance at July 31, 2014 $ 28.9 $ 11.0 $ (100.6) $ 3.8 $ (56.9) (A) Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for the three months ended July 31, 2015 and 2014. Of the total losses reclassified from accumulated other comprehensive loss, $7.0 of income was reclassified to cost of products sold related to commodity derivatives for the three months ended July 31, 2014. (B) Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Contingencies
Contingencies | 3 Months Ended |
Jul. 31, 2015 | |
Loss Contingency [Abstract] | |
Contingencies | Note 12: 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. We cannot predict with certainty the ultimate results of these proceedings or reasonably determine a range of potential loss. Our policy is to accrue costs for contingent liabilities when such liabilities are probable and amounts can be reasonably estimated. Based on the information known to date, with the exception of the matter discussed below, we do not believe the final outcome of these proceedings will have a material adverse effect on our financial position, results of operations, or cash flows. On October 9, 2013, Big Heart entered into a Purchase Agreement with Del Monte Pacific Limited and its subsidiary, Del Monte Foods Consumer Products, Inc. (which changed its name to Del Monte Foods, Inc.) (“DMFI”). Big Heart sold to DMFI the interests of certain subsidiaries related to Big Heart’s consumer products business and generally all assets and liabilities primarily related to the consumer products business for a purchase price of $1.7 billion, subject to a post-closing working capital adjustment. In connection with the closing of the transaction, Big Heart received approximately $110.0 in incremental proceeds representing the preliminary working capital adjustment subject to a true-up in accordance with the terms of the Purchase Agreement. Big Heart made a claim of $16.3 for the working capital adjustment related to the sale of the consumer products business. In June 2014, Big Heart received a notice of disagreement from DMFI disputing the $16.3 working capital adjustment, as well as the incremental preliminary working capital adjustment of approximately $110.0 paid by DMFI at closing. Pursuant to the terms of the Purchase Agreement, the working capital dispute was submitted to a mutually agreed upon independent certified public accounting firm of national recognition in the U.S. Although the independent accounting firm initially ruled in favor of DMFI’s interpretation of how the working capital should be calculated pursuant to the terms of the Purchase Agreement, it has accepted our request to re-evaluate such ruling. We believe the working capital adjustment presented to DMFI is appropriate and is in accordance with the terms of the Purchase Agreement, and we will continue to vigorously defend Big Heart’s position. We cannot currently predict the ultimate outcome of this adjustment and have not recorded a receivable or liability in Big Heart’s opening balance sheet. We will continue to evaluate the facts of this dispute in existence at the acquisition date in estimating the fair value of the receivable or liability at that time, which may result in an adjustment to the opening balance sheet during the measurement period as defined by FASB ASC 805, Business Combinations |
Common Shares
Common Shares | 3 Months Ended |
Jul. 31, 2015 | |
Common Shares [Abstract] | |
Common Shares | Note 13: Common Shares The following table sets forth common share information. July 31, 2015 April 30, 2015 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 119,666,563 119,577,333 Treasury shares 26,831,167 26,920,397 We did not repurchase any common shares in the first quarter of 2016 and, at July 31, 2015, we had approximately 10.0 million common shares available for repurchase under the Board’s authorizations. We do not expect to repurchase any of these shares in the near term due to our focus on debt repayment. |
Guarantor and Non-Guarantor Fin
Guarantor and Non-Guarantor Financial Information | 3 Months Ended |
Jul. 31, 2015 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
Guarantor and Non-Guarantor Financial Information | Note 14: Guarantor and Non-Guarantor Financial Information Our Senior Notes are fully and unconditionally guaranteed, on a joint and several basis, by J.M. Smucker LLC and The Folgers Coffee Company (the “subsidiary guarantors”), which are 100 percent wholly-owned subsidiaries of the Company. A subsidiary guarantor will be released from its obligations under the indentures governing the notes (a) with respect to each series of notes, if we exercise our legal or covenant defeasance option with respect to such series of notes or if our obligations under an indenture are discharged in accordance with the terms of such indenture in respect of such series of notes; (b) with respect to all series of notes issued in March 2015, upon the issuance, sale, exchange, transfer, or other disposition (including through merger, consolidation, amalgamation, or otherwise) of the capital stock of the applicable subsidiary guarantor (including any issuance, sale, exchange, transfer, or other disposition following which the applicable subsidiary guarantor is no longer a subsidiary) if such issuance, sale, exchange, transfer, or other disposition is made in a manner not in violation of the indenture in respect of such series of notes; or (c) with respect to all series of notes, upon the substantially simultaneous release or discharge of the guarantee by such subsidiary guarantor of all of our primary senior indebtedness other than through discharges as a result of payment by such guarantor on such guarantees. Condensed consolidating financial statements for the Company, the subsidiary guarantors, and the other subsidiaries of the Company that are not guaranteeing the indebtedness under the Senior Notes (the “non-guarantor subsidiaries”) are provided below. The principal elimination entries relate to investments in subsidiaries and intercompany balances and transactions, including transactions with our 100 percent wholly-owned subsidiary guarantors and non-guarantor subsidiaries. We have accounted for investments in subsidiaries using the equity method. CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net sales $ 760.8 $ 298.2 $ 2,234.0 $ (1,341.0) $ 1,952.0 Cost of products sold 609.9 272.2 1,681.8 (1,340.6) 1,223.3 Gross Profit 150.9 26.0 552.2 (0.4) 728.7 Selling, distribution, and administrative expenses and other special project costs 62.2 10.6 337.7 — 410.5 Amortization 1.1 — 51.9 — 53.0 Other operating (income) expense – net (0.1) 0.4 (2.2) — (1.9) Operating Income 87.7 15.0 164.8 (0.4) 267.1 Interest (expense) income – net (44.6) 0.3 (0.1) — (44.4) Other income (expense) – net 2.9 — (2.8) — 0.1 Equity in net earnings of subsidiaries 106.4 33.2 15.0 (154.6) — Income Before Income Taxes 152.4 48.5 176.9 (155.0) 222.8 Income taxes 16.0 0.1 70.3 — 86.4 Net Income $ 136.4 $ 48.4 $ 106.6 $ (155.0) $ 136.4 Other comprehensive (loss) income, net of tax (21.1) 0.3 (22.3) 22.0 (21.1) Comprehensive Income $ 115.3 $ 48.7 $ 84.3 $ (133.0) $ 115.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended July 31, 2014 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net sales $ 707.1 $ 290.4 $ 1,517.8 $ (1,191.5) $ 1,323.8 Cost of products sold 582.8 263.2 1,181.2 (1,182.1) 845.1 Gross Profit 124.3 27.2 336.6 (9.4) 478.7 Selling, distribution, and administrative expenses and other special project costs 52.8 12.2 197.0 — 262.0 Amortization 1.0 — 23.9 — 24.9 Other operating (income) expense – net — 0.4 (0.2) — 0.2 Operating Income 70.5 14.6 115.9 (9.4) 191.6 Interest (expense) income – net (17.6) 0.3 (0.1) — (17.4) Other income – net 1.3 — — — 1.3 Equity in net earnings of subsidiaries 77.5 38.8 14.6 (130.9) — Income Before Income Taxes 131.7 53.7 130.4 (140.3) 175.5 Income taxes 15.7 0.1 43.7 — 59.5 Net Income $ 116.0 $ 53.6 $ 86.7 $ (140.3) $ 116.0 Other comprehensive (loss) income, net of tax (5.3) (4.0) (7.0) 11.0 (5.3) Comprehensive Income $ 110.7 $ 49.6 $ 79.7 $ (129.3) $ 110.7 CONDENSED CONSOLIDATING BALANCE SHEETS July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 10.0 $ — $ 123.6 $ — $ 133.6 Inventories — 172.2 979.0 (0.4) 1,150.8 Other current assets 419.0 10.5 324.4 (12.8) 741.1 Total Current Assets 429.0 182.7 1,427.0 (13.2) 2,025.5 Property, Plant, and Equipment – Net 260.5 585.6 810.7 — 1,656.8 Investments in Subsidiaries 14,687.0 4,212.8 287.8 (19,187.6) — Intercompany Receivable — 313.9 252.1 (566.0) — Other Noncurrent Assets Goodwill 1,082.0 — 4,919.4 — 6,001.4 Other intangible assets – net 499.8 — 6,391.9 — 6,891.7 Other noncurrent assets 55.0 10.4 117.6 — 183.0 Total Other Noncurrent Assets 1,636.8 10.4 11,428.9 — 13,076.1 Total Assets $ 17,013.3 $ 5,305.4 $ 14,206.5 $ (19,766.8) $ 16,758.4 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 619.7 $ 67.3 $ 384.9 $ (12.8) $ 1,059.1 Noncurrent Liabilities Long-term debt 5,694.7 — — — 5,694.7 Deferred income taxes 110.9 — 2,411.3 — 2,522.2 Intercompany payable 3,203.0 — — (3,203.0) — Other noncurrent liabilities 255.0 15.3 82.1 — 352.4 Total Noncurrent Liabilities 9,263.6 15.3 2,493.4 (3,203.0) 8,569.3 Total Liabilities 9,883.3 82.6 2,878.3 (3,215.8) 9,628.4 Total Shareholders’ Equity 7,130.0 5,222.8 11,328.2 (16,551.0) 7,130.0 Total Liabilities and Shareholders’ Equity $ 17,013.3 $ 5,305.4 $ 14,206.5 $ (19,766.8) $ 16,758.4 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.1 $ — $ 118.5 $ — $ 125.6 Inventories — 180.3 979.6 3.7 1,163.6 Other current assets 427.4 4.8 351.4 (12.6) 771.0 Total Current Assets 434.5 185.1 1,449.5 (8.9) 2,060.2 Property, Plant, and Equipment – Net 258.0 591.3 829.0 — 1,678.3 Investments in Subsidiaries 14,610.4 4,179.7 272.4 (19,062.5) — Intercompany Receivable — 305.2 133.1 (438.3) — Other Noncurrent Assets Goodwill 1,082.0 — 4,929.6 — 6,011.6 Other intangible assets – net 501.1 — 6,449.2 — 6,950.3 Other noncurrent assets 55.6 10.5 116.1 — 182.2 Total Other Noncurrent Assets 1,638.7 10.5 11,494.9 — 13,144.1 Total Assets $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7) $ 16,882.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 484.0 $ 82.6 $ 468.6 $ (12.6) $ 1,022.6 Noncurrent Liabilities Long-term debt 5,944.9 — — — 5,944.9 Deferred income taxes 106.9 — 2,366.4 — 2,473.3 Intercompany payable 3,080.2 — — (3,080.2) — Other noncurrent liabilities 238.7 15.2 101.0 — 354.9 Total Noncurrent Liabilities 9,370.7 15.2 2,467.4 (3,080.2) 8,773.1 Total Liabilities 9,854.7 97.8 2,936.0 (3,092.8) 9,795.7 Total Shareholders’ Equity 7,086.9 5,174.0 11,242.9 (16,416.9) 7,086.9 Total Liabilities and Shareholders’ Equity $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7) $ 16,882.6 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net Cash Provided by Operating Activities $ 149.8 $ 27.6 $ 127.7 $ — $ 305.1 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Additions to property, plant, and equipment (14.8) (13.8) (24.4) — (53.0) (Disbursements of) repayments from intercompany loans — (8.6) (114.2) 122.8 — Other – net — (5.2) 12.2 — 7.0 Net Cash (Used for) Provided by Investing Activities (14.8) (27.6) (118.5) 122.8 (38.1) Financing Activities Short-term borrowings - net 76.0 — 0.6 — 76.6 Repayments of long-term debt (250.0) — — — (250.0) Quarterly dividends paid (76.4) — — — (76.4) Purchase of treasury shares (6.9) — — — (6.9) Intercompany payable 122.8 — — (122.8) — Other – net 2.4 — — — 2.4 Net Cash (Used for) Provided by Financing Activities (132.1) — 0.6 (122.8) (254.3) Effect of exchange rate changes on cash — — (4.7) — (4.7) Net increase in cash and cash equivalents 2.9 — 5.1 — 8.0 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 10.0 $ — $ 123.6 — $ 133.6 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended July 31, 2014 The J.M. Smucker Subsidiary Non-Guarantor Company (Parent) Guarantors Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ — $ 7.9 $ (16.0) $ — $ (8.1) Investing Activities Additions to property, plant, and equipment (12.3) (16.1) (20.6) — (49.0) Proceeds from disposal of property, plant, and equipment — 1.1 0.1 — 1.2 Repayments from (disbursements of) intercompany loans — 11.8 23.8 (35.6) — Other – net (0.1) (4.7) 0.5 — (4.3) Net Cash (Used for) Provided by Investing Activities (12.4) (7.9) 3.8 (35.6) (52.1) Financing Activities Short-term borrowings - net 221.6 — — — 221.6 Repayments of long-term debt (100.0) — — — (100.0) Quarterly dividends paid (58.9) — — — (58.9) Purchase of treasury shares (10.6) — — — (10.6) Intercompany payable (35.6) — — 35.6 — Other – net 7.8 — — — 7.8 Net Cash Provided by Financing Activities 24.3 — — 35.6 59.9 Effect of exchange rate changes on cash — — (3.8) — (3.8) Net increase (decrease) in cash and cash equivalents 11.9 — (16.0) — (4.1) Cash and cash equivalents at beginning of period 6.8 — 146.7 — 153.5 Cash and Cash Equivalents at End of Period $ 18.7 $ — $ 130.7 $ — $ 149.4 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Acquisitions [Abstract] | |
Components of business acquisition purchase price | Shares issued $ 2,035.5 Assumed debt from Big Heart 2,630.2 Cash consideration, net of cash acquired 1,232.1 Total purchase price $ 5,897.8 |
Estimated fair values of the assets acquired and liabilities assumed | Assets acquired: Trade receivables $ 142.0 Inventories 254.5 Other current assets 208.2 Property, plant, and equipment 324.0 Intangible assets 4,009.8 Goodwill 2,873.0 Other noncurrent assets 28.3 Total assets acquired $ 7,839.8 Liabilities assumed: Current liabilities $ 393.2 Deferred tax liabilities 1,464.0 Other noncurrent liabilities 84.8 Total liabilities assumed $ 1,942.0 Net assets acquired $ 5,897.8 |
The purchase price allocated to the identifiable intangible assets | Intangible assets with finite lives: Customer relationships (25-year useful life) $ 2,289.8 Trademarks (15-year useful life) 257.0 Intangible assets with indefinite lives: Trademarks 1,463.0 Total intangible assets $ 4,009.8 |
Business acquisition pro forma information | Three Months Ended Net sales $ 1,853.5 Net income 122.4 Net income per common share - assuming dilution 1.02 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Segment Reporting [Abstract] | |
Income and assets by segment | Three Months Ended July 31, 2015 2014 Net sales: U.S. Retail Coffee $ 565.0 $ 502.7 U.S. Retail Consumer Foods 582.2 582.4 U.S. Retail Pet Foods 549.9 — International and Foodservice 254.9 238.7 Total net sales $ 1,952.0 $ 1,323.8 Segment profit: U.S. Retail Coffee $ 155.1 $ 137.6 U.S. Retail Consumer Foods 117.5 118.1 U.S. Retail Pet Foods 90.0 — International and Foodservice 30.5 30.5 Total segment profit $ 393.1 $ 286.2 Interest expense – net (44.4) (17.4) Unallocated derivative losses (10.0) (21.4) Cost of products sold – special project costs (3.1) (0.4) Other special project costs (22.9) (8.6) Corporate administrative expenses (90.0) (64.2) Other income - net 0.1 1.3 Income before income taxes $ 222.8 $ 175.5 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Earnings Per Share [Abstract] | |
Computation of earnings per common share, basic and diluted | Three Months Ended July 31, 2015 2014 Net income $ 136.4 $ 116.0 Net income allocated to participating securities 0.6 0.8 Net income allocated to common stockholders $ 135.8 $ 115.2 Weighted-average common shares outstanding 119,089,757 101,028,622 Dilutive effect of stock options 13,205 8,471 Weighted-average common shares outstanding – assuming dilution 119,102,962 101,037,093 Net income per common share $ 1.14 $ 1.14 Net income per common share – assuming dilution $ 1.14 $ 1.14 |
Debt and Financing Arrangemen23
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Debt and Financing Arrangements [Abstract] | |
Long-term debt | July 31, 2015 April 30, 2015 Principal Carrying Principal Carrying Outstanding Amount (A) Outstanding Amount (A) 1.75% Senior Notes due March 15, 2018 $ 500.0 $ 497.2 $ 500.0 $ 496.9 2.50% Senior Notes due March 15, 2020 500.0 494.6 500.0 494.3 3.50% Senior Notes due October 15, 2021 750.0 794.3 750.0 796.0 3.00% Senior Notes due March 15, 2022 400.0 395.4 400.0 395.3 3.50% Senior Notes due March 15, 2025 1,000.0 992.1 1,000.0 991.9 4.25% Senior Notes due March 15, 2035 650.0 641.9 650.0 641.8 4.38% Senior Notes due March 15, 2045 600.0 584.0 600.0 583.8 Term Loan Credit Agreement due March 23, 2020 1,300.0 1,295.2 1,550.0 1,544.9 Total long-term debt $ 5,700.0 $ 5,694.7 $ 5,950.0 $ 5,944.9 (A) Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Pensions and Other Postretire24
Pensions and Other Postretirement Benefits (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Pensions and Other Postretirement Benefits [Abstract] | |
Net periodic benefit cost | Three Months Ended July 31, Defined Benefit Pension Plans Other Postretirement Benefits 2015 2014 2015 2014 Service cost $ 4.7 $ 2.0 $ 0.6 $ 0.6 Interest cost 7.0 5.7 0.7 0.6 Expected return on plan assets (8.4) (6.3) — — Recognized net actuarial loss 2.7 2.5 — — Prior service cost (credit) 0.2 0.2 (0.3) (0.3) Curtailment (3.7) — — — Net periodic benefit cost $ 2.5 $ 4.1 $ 1.0 $ 0.9 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Fair value of derivative instruments | July 31, 2015 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 6.1 $ 25.5 $ 0.5 $ 4.0 Foreign currency exchange contracts 8.1 — — — Total derivative instruments $ 14.2 $ 25.5 $ 0.5 $ 4.0 April 30, 2015 Other Other Other Other Derivatives not designated as hedging instruments: Commodity contracts $ 6.4 $ 23.9 $ 0.2 $ 3.8 Foreign currency exchange contracts 4.8 1.0 — — Total derivative instruments $ 11.2 $ 24.9 $ 0.2 $ 3.8 |
Schedule of derivative instruments, gains and losses recognized | Three Months Ended July 31, 2015 2014 Gains reclassified from accumulated other comprehensive loss to cost of products sold (effective portion) $ — $ 7.0 Losses reclassified from accumulated other comprehensive loss to interest expense (effective portion) (0.1) (0.1) Change in accumulated other comprehensive loss $ 0.1 $ (6.9) |
Net realized and unrealized gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | Three Months Ended July 31, 2015 2014 Losses on commodity contracts (19.0) $ (21.1) Gains (losses) on foreign currency exchange contracts 8.3 (0.6) Total losses recognized in cost of products sold $ (10.7) $ (21.7) |
Schedule of unallocated derivative (losses) gains | Three Months Ended July 31, 2015 2014 Net losses on mark-to-market valuation of unallocated derivative positions $ (10.7) $ (21.7) Net losses on derivative positions reclassified to segment operating profit 0.7 0.3 Unallocated derivative losses $ (10.0) $ (21.4) |
Outstanding derivative contracts | July 31, 2015 April 30, 2015 Commodity contracts $ 578.9 $ 640.6 Foreign currency exchange contracts 104.5 136.4 |
Other Financial Instruments a26
Other Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Other Financial Instruments and Fair Value Measurements [Abstract] | |
Carrying amount and fair value of financial instruments | July 31, 2015 April 30, 2015 Carrying Fair Value Carrying Fair Value Other investments $ 47.9 $ 47.9 $ 48.4 $ 48.4 Derivative financial instruments – net (14.8) (14.8) (17.3) (17.3) Long-term debt (5,694.7) (5,598.5) (5,944.9) (6,011.3) |
Financial assets (liabilities) measured at fair value on a recurring basis | Quoted Prices in Significant Significant Fair Value at Other investments: (A) Equity mutual funds $ 9.6 $ — $ — $ 9.6 Municipal obligations — 37.3 — 37.3 Money market funds 1.0 — — 1.0 Derivative financial instruments: (B) Commodity contracts – net (10.9) (12.0) — (22.9) Foreign currency exchange contracts – net 1.1 7.0 — 8.1 Long-term debt (C) (4,296.4) (1,302.1) — (5,598.5) Total financial instruments measured at fair value $ (4,295.6) $ (1,269.8) $ — $ (5,565.4) Quoted Prices in Significant Significant Fair Value at Other investments: (A) Equity mutual funds $ 9.7 $ — $ — $ 9.7 Municipal obligations — 37.9 — 37.9 Money market funds 0.8 — — 0.8 Derivative financial instruments: (B) Commodity contracts – net (12.4) (8.7) — (21.1) Foreign currency exchange contracts – net (0.2) 4.0 — 3.8 Long-term debt (C) (4,459.0) (1,552.3) — (6,011.3) Total financial instruments measured at fair value $ (4,461.1) $ (1,519.1) $ — $ (5,980.2) (A) 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 which 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 July 31, 2015, our municipal obligations are scheduled to mature as follows: $0.7 in 2016, $1.3 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $31.3 in 2020 and beyond. (B) Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. (C) Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 6: Debt and Financing Arrangements. |
Accumulated Other Comprehensi27
Accumulated Other Comprehensive Income Loss (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Components of accumulated other comprehensive income (loss) | Foreign Unrealized Pension and Unrealized Gain Accumulated Balance at May 1, 2015 $ (2.3) $ (5.2) $ (105.6) $ 3.3 $ (109.8) Reclassification adjustments — 0.1 4.8 — 4.9 Current period (charge) credit (25.5) — 1.7 (0.3) (24.1) Income tax (expense) benefit — — (2.0) 0.1 (1.9) Balance at July 31, 2015 $ (27.8) $ (5.1) $ (101.1) $ 3.1 $ (130.9) Foreign Unrealized Pension and Unrealized Accumulated Balance at May 1, 2014 $ 31.7 $ 15.3 $ (102.0) $ 3.4 $ (51.6) Reclassification adjustments — (6.9) 2.2 — (4.7) Current period (charge) credit (2.8) — — 0.7 (2.1) Income tax benefit (expense) — 2.6 (0.8) (0.3) 1.5 Balance at July 31, 2014 $ 28.9 $ 11.0 $ (100.6) $ 3.8 $ (56.9) (A) Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for the three months ended July 31, 2015 and 2014. Of the total losses reclassified from accumulated other comprehensive loss, $7.0 of income was reclassified to cost of products sold related to commodity derivatives for the three months ended July 31, 2014. (B) Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Common Shares (Tables)
Common Shares (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Common Shares [Abstract] | |
Common Shares Information | July 31, 2015 April 30, 2015 Common shares authorized 300,000,000 300,000,000 Common shares outstanding 119,666,563 119,577,333 Treasury shares 26,831,167 26,920,397 |
Guarantor and Non-Guarantor F29
Guarantor and Non-Guarantor Financial Information (Tables) | 3 Months Ended |
Jul. 31, 2015 | |
Guarantor and Non - Guarantor Financial Information [Abstract] | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net sales $ 760.8 $ 298.2 $ 2,234.0 $ (1,341.0) $ 1,952.0 Cost of products sold 609.9 272.2 1,681.8 (1,340.6) 1,223.3 Gross Profit 150.9 26.0 552.2 (0.4) 728.7 Selling, distribution, and administrative expenses and other special project costs 62.2 10.6 337.7 — 410.5 Amortization 1.1 — 51.9 — 53.0 Other operating (income) expense – net (0.1) 0.4 (2.2) — (1.9) Operating Income 87.7 15.0 164.8 (0.4) 267.1 Interest (expense) income – net (44.6) 0.3 (0.1) — (44.4) Other income (expense) – net 2.9 — (2.8) — 0.1 Equity in net earnings of subsidiaries 106.4 33.2 15.0 (154.6) — Income Before Income Taxes 152.4 48.5 176.9 (155.0) 222.8 Income taxes 16.0 0.1 70.3 — 86.4 Net Income $ 136.4 $ 48.4 $ 106.6 $ (155.0) $ 136.4 Other comprehensive (loss) income, net of tax (21.1) 0.3 (22.3) 22.0 (21.1) Comprehensive Income $ 115.3 $ 48.7 $ 84.3 $ (133.0) $ 115.3 CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME Three Months Ended July 31, 2014 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net sales $ 707.1 $ 290.4 $ 1,517.8 $ (1,191.5) $ 1,323.8 Cost of products sold 582.8 263.2 1,181.2 (1,182.1) 845.1 Gross Profit 124.3 27.2 336.6 (9.4) 478.7 Selling, distribution, and administrative expenses and other special project costs 52.8 12.2 197.0 — 262.0 Amortization 1.0 — 23.9 — 24.9 Other operating (income) expense – net — 0.4 (0.2) — 0.2 Operating Income 70.5 14.6 115.9 (9.4) 191.6 Interest (expense) income – net (17.6) 0.3 (0.1) — (17.4) Other income – net 1.3 — — — 1.3 Equity in net earnings of subsidiaries 77.5 38.8 14.6 (130.9) — Income Before Income Taxes 131.7 53.7 130.4 (140.3) 175.5 Income taxes 15.7 0.1 43.7 — 59.5 Net Income $ 116.0 $ 53.6 $ 86.7 $ (140.3) $ 116.0 Other comprehensive (loss) income, net of tax (5.3) (4.0) (7.0) 11.0 (5.3) Comprehensive Income $ 110.7 $ 49.6 $ 79.7 $ (129.3) $ 110.7 |
CONDENSED CONSOLIDATING BALANCE SHEETS | CONDENSED CONSOLIDATING BALANCE SHEETS July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 10.0 $ — $ 123.6 $ — $ 133.6 Inventories — 172.2 979.0 (0.4) 1,150.8 Other current assets 419.0 10.5 324.4 (12.8) 741.1 Total Current Assets 429.0 182.7 1,427.0 (13.2) 2,025.5 Property, Plant, and Equipment – Net 260.5 585.6 810.7 — 1,656.8 Investments in Subsidiaries 14,687.0 4,212.8 287.8 (19,187.6) — Intercompany Receivable — 313.9 252.1 (566.0) — Other Noncurrent Assets Goodwill 1,082.0 — 4,919.4 — 6,001.4 Other intangible assets – net 499.8 — 6,391.9 — 6,891.7 Other noncurrent assets 55.0 10.4 117.6 — 183.0 Total Other Noncurrent Assets 1,636.8 10.4 11,428.9 — 13,076.1 Total Assets $ 17,013.3 $ 5,305.4 $ 14,206.5 $ (19,766.8) $ 16,758.4 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 619.7 $ 67.3 $ 384.9 $ (12.8) $ 1,059.1 Noncurrent Liabilities Long-term debt 5,694.7 — — — 5,694.7 Deferred income taxes 110.9 — 2,411.3 — 2,522.2 Intercompany payable 3,203.0 — — (3,203.0) — Other noncurrent liabilities 255.0 15.3 82.1 — 352.4 Total Noncurrent Liabilities 9,263.6 15.3 2,493.4 (3,203.0) 8,569.3 Total Liabilities 9,883.3 82.6 2,878.3 (3,215.8) 9,628.4 Total Shareholders’ Equity 7,130.0 5,222.8 11,328.2 (16,551.0) 7,130.0 Total Liabilities and Shareholders’ Equity $ 17,013.3 $ 5,305.4 $ 14,206.5 $ (19,766.8) $ 16,758.4 CONDENSED CONSOLIDATING BALANCE SHEETS April 30, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated ASSETS Current Assets Cash and cash equivalents $ 7.1 $ — $ 118.5 $ — $ 125.6 Inventories — 180.3 979.6 3.7 1,163.6 Other current assets 427.4 4.8 351.4 (12.6) 771.0 Total Current Assets 434.5 185.1 1,449.5 (8.9) 2,060.2 Property, Plant, and Equipment – Net 258.0 591.3 829.0 — 1,678.3 Investments in Subsidiaries 14,610.4 4,179.7 272.4 (19,062.5) — Intercompany Receivable — 305.2 133.1 (438.3) — Other Noncurrent Assets Goodwill 1,082.0 — 4,929.6 — 6,011.6 Other intangible assets – net 501.1 — 6,449.2 — 6,950.3 Other noncurrent assets 55.6 10.5 116.1 — 182.2 Total Other Noncurrent Assets 1,638.7 10.5 11,494.9 — 13,144.1 Total Assets $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7) $ 16,882.6 LIABILITIES AND SHAREHOLDERS’ EQUITY Current Liabilities $ 484.0 $ 82.6 $ 468.6 $ (12.6) $ 1,022.6 Noncurrent Liabilities Long-term debt 5,944.9 — — — 5,944.9 Deferred income taxes 106.9 — 2,366.4 — 2,473.3 Intercompany payable 3,080.2 — — (3,080.2) — Other noncurrent liabilities 238.7 15.2 101.0 — 354.9 Total Noncurrent Liabilities 9,370.7 15.2 2,467.4 (3,080.2) 8,773.1 Total Liabilities 9,854.7 97.8 2,936.0 (3,092.8) 9,795.7 Total Shareholders’ Equity 7,086.9 5,174.0 11,242.9 (16,416.9) 7,086.9 Total Liabilities and Shareholders’ Equity $ 16,941.6 $ 5,271.8 $ 14,178.9 $ (19,509.7) $ 16,882.6 |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended July 31, 2015 The J.M. Smucker Subsidiary Non-Guarantor Eliminations Consolidated Net Cash Provided by Operating Activities $ 149.8 $ 27.6 $ 127.7 $ — $ 305.1 Investing Activities Business acquired, net of cash acquired — — 7.9 — 7.9 Additions to property, plant, and equipment (14.8) (13.8) (24.4) — (53.0) (Disbursements of) repayments from intercompany loans — (8.6) (114.2) 122.8 — Other – net — (5.2) 12.2 — 7.0 Net Cash (Used for) Provided by Investing Activities (14.8) (27.6) (118.5) 122.8 (38.1) Financing Activities Short-term borrowings - net 76.0 — 0.6 — 76.6 Repayments of long-term debt (250.0) — — — (250.0) Quarterly dividends paid (76.4) — — — (76.4) Purchase of treasury shares (6.9) — — — (6.9) Intercompany payable 122.8 — — (122.8) — Other – net 2.4 — — — 2.4 Net Cash (Used for) Provided by Financing Activities (132.1) — 0.6 (122.8) (254.3) Effect of exchange rate changes on cash — — (4.7) — (4.7) Net increase in cash and cash equivalents 2.9 — 5.1 — 8.0 Cash and cash equivalents at beginning of period 7.1 — 118.5 — 125.6 Cash and Cash Equivalents at End of Period $ 10.0 $ — $ 123.6 — $ 133.6 CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS Three Months Ended July 31, 2014 The J.M. Smucker Subsidiary Non-Guarantor Company (Parent) Guarantors Subsidiaries Eliminations Consolidated Net Cash Provided by (Used for) Operating Activities $ — $ 7.9 $ (16.0) $ — $ (8.1) Investing Activities Additions to property, plant, and equipment (12.3) (16.1) (20.6) — (49.0) Proceeds from disposal of property, plant, and equipment — 1.1 0.1 — 1.2 Repayments from (disbursements of) intercompany loans — 11.8 23.8 (35.6) — Other – net (0.1) (4.7) 0.5 — (4.3) Net Cash (Used for) Provided by Investing Activities (12.4) (7.9) 3.8 (35.6) (52.1) Financing Activities Short-term borrowings - net 221.6 — — — 221.6 Repayments of long-term debt (100.0) — — — (100.0) Quarterly dividends paid (58.9) — — — (58.9) Purchase of treasury shares (10.6) — — — (10.6) Intercompany payable (35.6) — — 35.6 — Other – net 7.8 — — — 7.8 Net Cash Provided by Financing Activities 24.3 — — 35.6 59.9 Effect of exchange rate changes on cash — — (3.8) — (3.8) Net increase (decrease) in cash and cash equivalents 11.9 — (16.0) — (4.1) Cash and cash equivalents at beginning of period 6.8 — 146.7 — 153.5 Cash and Cash Equivalents at End of Period $ 18.7 $ — $ 130.7 $ — $ 149.4 |
Recently Issued Accounting St30
Recently Issued Accounting Standards (Details) | 3 Months Ended |
Jul. 31, 2015 | |
Recently Issued Accounting Standards (Additional Textual) Abstract | |
Time period that the standard Revenue from Contracts with Customers is extended by | 1 year |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2015 | Mar. 23, 2015 | |
Business Acquisition [Line Items] | ||||
Cash consideration, net of cash acquired | $ (7.9) | $ 0 | ||
Big Heart [Member] | ||||
Business Acquisition [Line Items] | ||||
Shares issued | $ 2,035.5 | |||
Assumed debt from Big Heart | $ 2,630.2 | |||
Cash consideration, net of cash acquired | $ 1,232.1 | |||
Total purchase price | $ 5,897.8 |
Acquisitions (Details 1)
Acquisitions (Details 1) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 | Mar. 23, 2015 |
Assets acquired: | |||
Goodwill | $ 6,001.4 | $ 6,011.6 | |
Big Heart [Member] | |||
Assets acquired: | |||
Trade receivables | $ 142 | ||
Inventories | 254.5 | ||
Other current assets | 208.2 | ||
Property, plant, and equipment | 324 | ||
Intangible assets | 4,009.8 | ||
Goodwill | 2,873 | ||
Other noncurrent assets | 28.3 | ||
Total assets acquired | 7,839.8 | ||
Liabilities assumed: | |||
Current liabilities | 393.2 | ||
Deferred tax liabilities | 1,464 | ||
Other noncurrent liabilities | 84.8 | ||
Total liabilities assumed | 1,942 | ||
Net assets acquired | $ 5,897.8 |
Acquisitions (Details 2)
Acquisitions (Details 2) - Big Heart [Member] - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Mar. 23, 2015 | |
The purchase price allocated to the identifiable intangible assets | ||
Total intangible assets | $ 4,009.8 | |
Customer Relationships [Member] | ||
The purchase price allocated to the identifiable intangible assets | ||
Intangible assets with finite lives | 2,289.8 | |
Finite-Lived Intangible Asset, Useful Life | 25 years | |
Trademarks [Member] | ||
The purchase price allocated to the identifiable intangible assets | ||
Intangible assets with finite lives | 257 | |
Intangible assets with indefinite lives | $ 1,463 | |
Finite-Lived Intangible Asset, Useful Life | 15 years |
Acquisitions (Details 3)
Acquisitions (Details 3) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Business acquisition pro-forma information | ||
Net sales | $ 1,952 | $ 1,323.8 |
Net income | $ 136.4 | $ 116 |
Net income per common share - assuming dilution | $ 1.14 | $ 1.14 |
Big Heart [Member] | ||
Business acquisition pro-forma information | ||
Net sales | $ 561.3 | $ 1,853.5 |
Net income | $ 122.4 | |
Net income per common share - assuming dilution | $ 1.02 |
Acquisitions (Details Textual)
Acquisitions (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | ||||
Jul. 31, 2015 | Jul. 31, 2014 | Jul. 31, 2015 | Apr. 30, 2015 | Mar. 23, 2015 | Mar. 20, 2015 | Mar. 02, 2015 | |
Acquisitions (Textual) [Abstract] | |||||||
Long-term debt | $ 5,694.7 | $ 5,694.7 | $ 5,944.9 | ||||
Net sales | 1,952 | $ 1,323.8 | |||||
Operating income (loss) | 267.1 | 191.6 | |||||
Debt instrument face amount | 5,700 | $ 5,700 | $ 5,950 | ||||
Cash payments for acquisitions | $ (7.9) | 0 | |||||
Acquisitions (Additional Textual) [Abstract] | |||||||
Common shares outstanding | 119,666,563 | 119,666,563 | 119,577,333 | 120,000,000 | |||
Senior Notes [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 3,700 | ||||||
Term Loan Credit Agreement due March 23, 2020 [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Debt instrument face amount | $ 1,300 | $ 1,300 | $ 1,550 | $ 1,800 | |||
Us Retail Consumer Foods Market [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Net sales | 582.2 | 582.4 | |||||
U. S. Retail Pet Foods Market [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Net sales | $ 549.9 | 0 | |||||
Big Heart [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Shares issued to shareholders of acquiree | 17,900,000 | ||||||
Long-term debt | $ 5,400 | ||||||
Business acquisition transaction costs | $ 225 | ||||||
One-time costs to be recognized over three years with one half expected to be recognized in 2016 | These one-time costs are anticipated to be incurred primarily over the next three years, with one-half of the costs expected to be recognized in 2016. | ||||||
Total intangible assets, excluding goodwill, from acquisitions | 4,009.8 | ||||||
Payments for acquisition related costs | 150 | ||||||
Net sales | $ 561.3 | $ 1,853.5 | |||||
Operating income (loss) | $ 64.3 | ||||||
Acquisition fair value measurement period | 1 year | ||||||
Business acquisition consideration given | 5,897.8 | ||||||
Value of shares issued to shareholders of acquiree | 2,035.5 | ||||||
Business acquisition debt assumed | $ 2,630.2 | ||||||
Cash payments for acquisitions | 1,232.1 | ||||||
Goodwill purchase accounting adjustment | $ 1.8 | ||||||
Costs directly related to merger and integration | 24.8 | ||||||
Business combination integration related costs incurred to date | 60.8 | ||||||
Big Heart [Member] | U. S. Retail Pet Foods Market [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Goodwill deductible for tax purposes | $ 87.5 | $ 87.5 | |||||
Goodwill, acquired during period | 2,900 | ||||||
Sahale [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Total intangible assets, excluding goodwill, from acquisitions | 30.4 | ||||||
Cash payments for acquisitions | 80.5 | ||||||
Sahale [Member] | Us Retail Consumer Foods Market [Member] | |||||||
Acquisitions (Textual) [Abstract] | |||||||
Goodwill, acquired during period | $ 47.9 |
Reportable Segments (Details)
Reportable Segments (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | ||
Net sales: | |||
Net sales | $ 1,952 | $ 1,323.8 | |
Segment profit: | |||
Segment profit | 393.1 | 286.2 | |
Interest expense - net | (44.4) | (17.4) | |
Unallocated derivative losses | (10) | (21.4) | |
Cost of products sold - special project costs | (3.1) | (0.4) | |
Other special project costs | [1] | (22.9) | (8.6) |
Corporate administrative expenses | (90) | (64.2) | |
Other income - net | 0.1 | 1.3 | |
Income before income taxes | 222.8 | 175.5 | |
U.S. Retail Coffee [Member] | |||
Net sales: | |||
Net sales | 565 | 502.7 | |
Segment profit: | |||
Segment profit | 155.1 | 137.6 | |
U.S. Retail Consumer Foods [Member] | |||
Net sales: | |||
Net sales | 582.2 | 582.4 | |
Segment profit: | |||
Segment profit | 117.5 | 118.1 | |
U.S. Retail Pet Foods [Member] | |||
Net sales: | |||
Net sales | 549.9 | 0 | |
Segment profit: | |||
Segment profit | 90 | 0 | |
International and Foodservice [Member] | |||
Net sales: | |||
Net sales | 254.9 | 238.7 | |
Segment profit: | |||
Segment profit | $ 30.5 | $ 30.5 | |
[1] | Other special project costs includes restructuring and merger and integration costs. For more information on businesses acquired, see Note 3: Acquisitions. |
Reportable Segments (Details Te
Reportable Segments (Details Textual) - 3 months ended Jul. 31, 2015 | IndustrySegment |
Reportable Segments (Textual) [Abstract] | |
Number of industries in which Company operates | 1 |
Number of reportable segments | Segment | 3 |
Earnings per Share (Details)
Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Net income allocated to common stockholders | ||
Net income | $ 136.4 | $ 116 |
Net income allocated to participating securities | 0.6 | 0.8 |
Net income allocated to common stockholders | $ 135.8 | $ 115.2 |
Weighted-average common shares, basic and diluted | ||
Weighted-average common shares outstanding | 119,089,757 | 101,028,622 |
Dilutive effect of stock options | 13,205 | 8,471 |
Weighted-average common shares outstanding - assuming dilution | 119,102,962 | 101,037,093 |
Computation of net income per common share: | ||
Net income per common share | $ 1.14 | $ 1.14 |
Net income per common share - assuming dilution | $ 1.14 | $ 1.14 |
Debt and Financing Arrangemen39
Debt and Financing Arrangements (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 | Mar. 20, 2015 | Mar. 02, 2015 | |
Debt and Financing Arrangements [Abstract] | |||||
Total long-term debt | $ 5,694.7 | $ 5,944.9 | |||
Long-term debt | |||||
Debt instrument face amount | $ 5,700 | 5,950 | |||
Senior Notes [Member] | |||||
Long-term debt | |||||
Debt instrument face amount | $ 3,700 | ||||
1.75% Senior Notes due March 15, 2018 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 496.9 | |||
Interest rate on notes | 1.75% | ||||
Debt instrument face amount | $ 500 | 500 | |||
Notes Payable, Noncurrent | [1] | $ 497.2 | |||
2.50% Senior Notes due March 15, 2020 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 494.3 | |||
Interest rate on notes | 2.50% | ||||
Debt instrument face amount | $ 500 | 500 | |||
Notes Payable, Noncurrent | [1] | $ 494.6 | |||
3.50% Senior Notes due October 15, 2021 [Member] | |||||
Long-term debt | |||||
Interest rate on notes | 3.50% | ||||
Debt instrument face amount | $ 750 | 750 | |||
Notes Payable, Noncurrent | [1] | $ 794.3 | 796 | ||
3.00% Senior Notes due March 15, 2022 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 395.3 | |||
Interest rate on notes | 3.00% | ||||
Debt instrument face amount | $ 400 | 400 | |||
Notes Payable, Noncurrent | [1] | $ 395.4 | |||
3.50% Senior Notes due March 15, 2025 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 991.9 | |||
Interest rate on notes | 3.50% | ||||
Debt instrument face amount | $ 1,000 | 1,000 | |||
Notes Payable, Noncurrent | [1] | $ 992.1 | |||
4.25% Senior Notes due March 15, 2035 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 641.8 | |||
Interest rate on notes | 4.25% | ||||
Debt instrument face amount | $ 650 | 650 | |||
Notes Payable, Noncurrent | [1] | $ 641.9 | |||
4.38% Senior Notes due March 15, 2045 [Member] | |||||
Long-term debt | |||||
Company issued Senior Notes | [1] | 583.8 | |||
Interest rate on notes | 4.38% | ||||
Debt instrument face amount | $ 600 | 600 | |||
Notes Payable, Noncurrent | [1] | 584 | |||
Term Loan Credit Agreement due March 23, 2020 [Member] | |||||
Long-term debt | |||||
Debt instrument face amount | 1,300 | 1,550 | $ 1,800 | ||
Term loan credit agreement carrying value | [1] | $ 1,295.2 | $ 1,544.9 | ||
[1] | Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of interest rate swaps, offering discounts, and capitalized debt issuance costs. |
Debt and Financing Arrangemen40
Debt and Financing Arrangements (Details Textual) - Types of Financial Instruments [Domain] $ in Millions | 3 Months Ended | 4 Months Ended | 12 Months Ended | |||
Jul. 31, 2015USD ($)Bank | Jul. 31, 2014USD ($) | Jul. 31, 2015USD ($)Bank | Apr. 30, 2015USD ($) | Mar. 20, 2015USD ($) | Mar. 02, 2015USD ($) | |
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Repayments of long-term debt | $ 250 | $ 100 | ||||
Debt instrument face amount | $ 5,700 | $ 5,700 | $ 5,950 | |||
Debt and Financing Arrangements (Additional Textual) [Abstract] | ||||||
Number of banks | Bank | 11 | 11 | ||||
Revolving credit facility maximum borrowing capacity | $ 1,500 | $ 1,500 | ||||
Percentage of the principal amount thereof which company can prepay | 100.00% | 100.00% | ||||
Interest paid | $ 7.2 | $ 24.7 | ||||
Commercial paper, borrowing capacity | 1,000 | $ 1,000 | ||||
Short-term borrowings | 302.6 | 302.6 | 226 | |||
Senior Notes [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | $ 3,700 | |||||
3.50% Senior Notes due October 15, 2021 [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Debt instrument face amount | 750 | 750 | 750 | |||
Term Loan Credit Agreement due March 23, 2020 [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Repayments of long-term debt | 250 | 450 | ||||
Debt instrument face amount | $ 1,300 | $ 1,300 | 1,550 | $ 1,800 | ||
Weighted average interest rate on long-term debt | 1.51% | 1.51% | ||||
Percent of original principal to be paid quarterly | 2.50% | |||||
Long Term Debt [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Increase to long term-debt related to termination of interest rate swap | $ 49.4 | |||||
Commercial Paper [Member] | ||||||
Debt and Financing Arrangements (Textual) [Abstract] | ||||||
Commercial paper weighted-average interest rate | 0.45% | 0.45% | ||||
Cash Flow Hedging [Member] | ||||||
Outstanding derivative contracts | ||||||
Gain (loss) on early termination agreement | (4) | |||||
Fair Value Hedging [Member] | ||||||
Outstanding derivative contracts | ||||||
Gain (loss) on early termination agreement | $ 58.1 |
Pensions and Other Postretire41
Pensions and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Defined Benefit Pension Plans [Member] | ||
Components of net periodic benefit cost | ||
Service cost | $ 4.7 | $ 2 |
Interest cost | 7 | 5.7 |
Expected return on plan assets | (8.4) | (6.3) |
Recognized net actuarial loss | 2.7 | 2.5 |
Prior service cost (credit) | 0.2 | 0.2 |
Curtailment | (3.7) | 0 |
Net periodic benefit cost | 2.5 | 4.1 |
Other Postretirement Benefits [Member] | ||
Components of net periodic benefit cost | ||
Service cost | 0.6 | 0.6 |
Interest cost | 0.7 | 0.6 |
Expected return on plan assets | 0 | 0 |
Recognized net actuarial loss | 0 | 0 |
Prior service cost (credit) | (0.3) | (0.3) |
Curtailment | 0 | 0 |
Net periodic benefit cost | $ 1 | $ 0.9 |
Derivative Financial Instrume42
Derivative Financial Instruments (Details) - Not designated as hedging instruments [Member] - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 |
Other Current Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | $ 14.2 | $ 11.2 |
Other Current Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 6.1 | 6.4 |
Other Current Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 8.1 | 4.8 |
Other Current Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 25.5 | 24.9 |
Other Current Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 25.5 | 23.9 |
Other Current Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 0 | 1 |
Other Noncurrent Assets [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0.2 |
Other Noncurrent Assets [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0.5 | 0.2 |
Other Noncurrent Assets [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Assets | 0 | 0 |
Other Noncurrent Liabilities [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 4 | 3.8 |
Other Noncurrent Liabilities [Member] | Commodity contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | 4 | 3.8 |
Other Noncurrent Liabilities [Member] | Foreign currency exchange contracts [Member] | ||
Fair value of derivative instruments [Line Items] | ||
Derivatives Instruments, Liabilities | $ 0 | $ 0 |
Derivative Financial Instrume43
Derivative Financial Instruments (Details 1) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Cash flow hedging derivative instruments gain loss | ||
Change in accumulated other comprehensive loss | $ 0.1 | $ (6.9) |
Cash Flow Hedging [Member] | Commodity contracts [Member] | Cost of Products Sold [Member] | ||
Cash flow hedging derivative instruments gain loss | ||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | 0 | 7 |
Cash Flow Hedging [Member] | Interest rate contract [Member] | Interest Expense [Member] | ||
Cash flow hedging derivative instruments gain loss | ||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | $ (0.1) | $ (0.1) |
Derivative Financial Instrume44
Derivative Financial Instruments (Details 2) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||
Total gains (losses) recognized in cost of products sold | $ (10.7) | $ (21.7) |
Commodity contracts [Member] | ||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||
Total gains (losses) recognized in cost of products sold | (19) | (21.1) |
Foreign currency exchange contracts [Member] | ||
Gains and losses recognized in cost of products sold on derivatives not designated as qualified hedging instruments | ||
Total gains (losses) recognized in cost of products sold | $ 8.3 | $ (0.6) |
Derivative Financial Instrume45
Derivative Financial Instruments (Details 3) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
Unallocated Derivative Gains (Losses) | ||
Net losses on mark-to-market valuation of unallocated derivative positions | $ (10.7) | $ (21.7) |
Net losses on derivative positions reclassified to segment operating profit | 0.7 | 0.3 |
Unallocated derivative losses | $ (10) | $ (21.4) |
Derivative Financial Instrume46
Derivative Financial Instruments (Details 4) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 |
Commodity contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 578.9 | $ 640.6 |
Foreign currency exchange contracts [Member] | ||
Outstanding derivative contracts | ||
Gross contract notional amount | $ 104.5 | $ 136.4 |
Derivative Financial Instrume47
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Apr. 30, 2015 | |
Derivative Financial Instruments (Additional Textual) [Abstract] | ||
Cash margin accounts related to derivative instruments recognized | $ 31.2 | $ 38.2 |
Cumulative realized net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | 26.4 | |
Cumulative net mark-to-market valuation of certain derivative positions recognized in unallocated derivative gains (losses) | (30.5) | |
Amortization of loss on contract termination to be recognized in interest expense in years 2026 through 2045 | $ 0.2 | |
Cash Flow Hedging [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Gain (loss) on early termination agreement | (4) | |
Fair Value Hedging [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Gain (loss) on early termination agreement | 58.1 | |
Minimum [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 10 years | |
Mid Range [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 20 years | |
Maximum [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Expected maturity tenor | 30 years | |
3.50% Senior Notes due October 15, 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Interest rate on notes | 3.50% | |
Foreign currency exchange contracts [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Derivative instrument maturity | 1 year | |
Gross contract notional amount | $ 104.5 | 136.4 |
Interest rate contract [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Deferred pre-tax gain (loss) included in accumulated other comprehensive loss | (8) | (8.2) |
Tax impact related to deferred losses and gains on cash flow hedges included in accumulated other comprehensive loss | 2.9 | 2.9 |
Effective portion of the hedge loss reclassified to interest expense over the next twelve months | 0.6 | |
Interest receivable | $ 4.6 | |
Gross contract notional amount | 1,100 | |
Commodity contracts [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Derivative instrument maturity | 1 year | |
Gross contract notional amount | $ 578.9 | $ 640.6 |
2015 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 2.2 | |
2016 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 5.6 | |
2017 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 7.6 | |
2018 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 7.8 | |
2019 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8 | |
2020 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8.1 | |
2021 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 8.4 | |
2022 [Member] | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | 4 | |
3 months ended 7/31/2015 | ||
Derivative Financial Instruments (Textual) [Abstract] | ||
Amortization of deferred gain on early termination agreement | $ 1.8 |
Other Financial Instruments a48
Other Financial Instruments and Fair Value Measurements (Details) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 |
Carrying Amount [Member] | ||
Carrying amount and fair value of financial instruments | ||
Other investments | $ 47.9 | $ 48.4 |
Derivative financial instruments - net | (14.8) | (17.3) |
Long-term debt | (5,694.7) | (5,944.9) |
Fair Value [Member] | ||
Carrying amount and fair value of financial instruments | ||
Other investments | 47.9 | 48.4 |
Derivative financial instruments - net | (14.8) | (17.3) |
Long-term debt | $ (5,598.5) | $ (6,011.3) |
Other Financial Instruments a49
Other Financial Instruments and Fair Value Measurements (Details 1) - Fair value measurements recurring [Member] - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 | |
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | $ (5,598.5) | $ (6,011.3) |
Total financial instruments measured at fair value | (5,565.4) | (5,980.2) | |
Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.6 | 9.7 |
Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.3 | 37.9 |
Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 1 | 0.8 |
Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (22.9) | (21.1) |
Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 8.1 | 3.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (4,296.4) | (4,459) |
Total financial instruments measured at fair value | (4,295.6) | (4,461.1) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 9.6 | 9.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 1 | 0.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (10.9) | (12.4) |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 1.1 | (0.2) |
Significant Observable Inputs (Level 2) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | (1,302.1) | (1,552.3) |
Total financial instruments measured at fair value | (1,269.8) | (1,519.1) | |
Significant Observable Inputs (Level 2) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 37.3 | 37.9 |
Significant Observable Inputs (Level 2) [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Observable Inputs (Level 2) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | (12) | (8.7) |
Significant Observable Inputs (Level 2) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 7 | 4 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Long-term debt | [1] | 0 | 0 |
Total financial instruments measured at fair value | 0 | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Equity mutual funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Municipal obligations [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Money market funds [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Other investments | [2] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Commodity contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Foreign currency exchange contracts - net [Member] | |||
Financial assets (liabilities) measured at fair value on a recurring basis | |||
Derivative financial instruments | [3] | $ 0 | $ 0 |
[1] | Long-term debt is comprised of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The value of the Term Loan is based on the net present value of each interest and principal payment calculated, utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 6: Debt and Financing Arrangements. | ||
[2] | 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 which 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 July 31, 2015, our municipal obligations are scheduled to mature as follows: $0.7 in 2016, $1.3 in 2017, $1.1 in 2018, $2.9 in 2019, and the remaining $31.3 in 2020 and beyond. | ||
[3] | Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. |
Other Financial Instruments a50
Other Financial Instruments and Fair Value Measurements (Details Textual) - Jul. 31, 2015 - USD ($) $ in Millions | Total |
Other Financial Instruments and Fair Value Measurements (Textual) [Abstract] | |
Company's Municipal bond mature in 2016 | $ 0.7 |
Company's Municipal bond mature in 2017 | 1.3 |
Company's Municipal bond mature in 2018 | 1.1 |
Company's Municipal bond mature in 2019 | 2.9 |
Company's Municipal bond mature in 2020 and beyond | $ 31.3 |
Money market funds maturity period | Three months or less |
Income Taxes (Details)
Income Taxes (Details) - Jul. 31, 2015 - USD ($) $ in Millions | Total |
Income Taxes (Textual) [Abstract] | |
Time period over which it is reasonably possible that the Company could increase or decrease its unrecognized tax benefits | 12 months |
Amount unrecognized tax benefit could decrease in next 12 months | $ 2.1 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jul. 31, 2015 | Jul. 31, 2014 | ||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | $ (109.8) | $ (51.6) | |
Reclassification adjustments | 4.9 | (4.7) | |
Current period (charge) credit | (24.1) | (2.1) | |
Income tax benefit (expense) | (1.9) | 1.5 | |
Accumulated Other Comprehensive Loss, Ending Balance | (130.9) | (56.9) | |
Cost of Products Sold [Member] | Commodity contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | 0 | 7 | |
Interest Expense [Member] | Interest rate contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gains (losses) reclassified from accumulated other comprehensive loss to earnings (effective portion) | (0.1) | (0.1) | |
Foreign Currency Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | (2.3) | 31.7 | |
Reclassification adjustments | 0 | 0 | |
Current period (charge) credit | (25.5) | (2.8) | |
Income tax benefit (expense) | 0 | 0 | |
Accumulated Other Comprehensive Loss, Ending Balance | (27.8) | 28.9 | |
Unrealized Loss on Cash Flow Hedging Derivatives [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | [1] | (5.2) | 15.3 |
Reclassification adjustments | [1] | 0.1 | (6.9) |
Current period (charge) credit | [1] | 0 | 0 |
Income tax benefit (expense) | [1] | 0 | 2.6 |
Accumulated Other Comprehensive Loss, Ending Balance | [1] | (5.1) | 11 |
Pension and Other Postretirement Liabilities [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | [2] | (105.6) | (102) |
Reclassification adjustments | [2] | 4.8 | 2.2 |
Current period (charge) credit | [2] | 1.7 | 0 |
Income tax benefit (expense) | [2] | (2) | (0.8) |
Accumulated Other Comprehensive Loss, Ending Balance | [2] | (101.1) | (100.6) |
Unrealized Gain on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Loss [Line Items] | |||
Accumulated Other Comprehensive Loss, Beginning Balance | 3.3 | 3.4 | |
Reclassification adjustments | 0 | 0 | |
Current period (charge) credit | (0.3) | 0.7 | |
Income tax benefit (expense) | 0.1 | (0.3) | |
Accumulated Other Comprehensive Loss, Ending Balance | $ 3.1 | $ 3.8 | |
[1] | Of the total losses reclassified from accumulated other comprehensive loss, $0.1 of expense was reclassified to interest expense related to the terminated interest rate swap for the three months ended July 31, 2015 and 2014. Of the total losses reclassified from accumulated other comprehensive loss, $7.0 of income was reclassified to cost of products sold related to commodity derivatives for the three months ended July 31, 2014. | ||
[2] | Amortization of net losses was reclassified from accumulated other comprehensive loss to selling, distribution, and administrative expenses. |
Contingencies (Details Textual)
Contingencies (Details Textual) - Big Heart [Member] - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Jul. 31, 2015 | Apr. 30, 2015 | |
Loss Contingencies [Line Items] | ||
Business acquisition consideration given | $ 5,897.8 | |
Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Business acquisition consideration given | $ 1.7 | |
Initial working capital adjustment received currently in dispute | 110 | |
Loss contingency estimate of possible loss | $ 16.3 |
Common Shares (Details)
Common Shares (Details) - shares | Jul. 31, 2015 | Apr. 30, 2015 | Mar. 23, 2015 |
Common Shares Information | |||
Common shares authorized | 300,000,000 | 300,000,000 | |
Common shares outstanding | 119,666,563 | 119,577,333 | 120,000,000 |
Treasury shares | 26,831,167 | 26,920,397 | |
Common Shares (Additional Textual) [Abstract] | |||
Shares remaining for repurchase | 10,000,000 |
Guarantor and Non-Guarantor F55
Guarantor and Non-Guarantor Financial Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | |
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||
Net sales | $ 1,952 | $ 1,323.8 |
Cost of products sold | 1,223.3 | 845.1 |
Gross Profit | 728.7 | 478.7 |
Selling, distribution, and administrative expenses and other special project costs | 410.5 | 262 |
Amortization | 53 | 24.9 |
Other operating (income) expense - net | (1.9) | 0.2 |
Operating Income | 267.1 | 191.6 |
Interest (expense) income - net | (44.4) | (17.4) |
Other income (expense) - net | 0.1 | 1.3 |
Equity in net earnings of subsidiaries | 0 | 0 |
Income Before Income Taxes | 222.8 | 175.5 |
Income taxes | 86.4 | 59.5 |
Net Income | 136.4 | 116 |
Other comprehensive (loss) income, net of tax | (21.1) | (5.3) |
Comprehensive Income | 115.3 | 110.7 |
Eliminations [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||
Net sales | (1,341) | (1,191.5) |
Cost of products sold | (1,340.6) | (1,182.1) |
Gross Profit | (0.4) | (9.4) |
Selling, distribution, and administrative expenses and other special project costs | 0 | 0 |
Amortization | 0 | 0 |
Other operating (income) expense - net | 0 | 0 |
Operating Income | (0.4) | (9.4) |
Interest (expense) income - net | 0 | 0 |
Other income (expense) - net | 0 | 0 |
Equity in net earnings of subsidiaries | (154.6) | (130.9) |
Income Before Income Taxes | (155) | (140.3) |
Income taxes | 0 | 0 |
Net Income | (155) | (140.3) |
Other comprehensive (loss) income, net of tax | 22 | 11 |
Comprehensive Income | (133) | (129.3) |
The J.M. Smucker Company (Parent) [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||
Net sales | 760.8 | 707.1 |
Cost of products sold | 609.9 | 582.8 |
Gross Profit | 150.9 | 124.3 |
Selling, distribution, and administrative expenses and other special project costs | 62.2 | 52.8 |
Amortization | 1.1 | 1 |
Other operating (income) expense - net | (0.1) | 0 |
Operating Income | 87.7 | 70.5 |
Interest (expense) income - net | (44.6) | (17.6) |
Other income (expense) - net | 2.9 | 1.3 |
Equity in net earnings of subsidiaries | 106.4 | 77.5 |
Income Before Income Taxes | 152.4 | 131.7 |
Income taxes | 16 | 15.7 |
Net Income | 136.4 | 116 |
Other comprehensive (loss) income, net of tax | (21.1) | (5.3) |
Comprehensive Income | 115.3 | 110.7 |
Subsidiary Guarantors [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||
Net sales | 298.2 | 290.4 |
Cost of products sold | 272.2 | 263.2 |
Gross Profit | 26 | 27.2 |
Selling, distribution, and administrative expenses and other special project costs | 10.6 | 12.2 |
Amortization | 0 | 0 |
Other operating (income) expense - net | 0.4 | 0.4 |
Operating Income | 15 | 14.6 |
Interest (expense) income - net | 0.3 | 0.3 |
Other income (expense) - net | 0 | 0 |
Equity in net earnings of subsidiaries | 33.2 | 38.8 |
Income Before Income Taxes | 48.5 | 53.7 |
Income taxes | 0.1 | 0.1 |
Net Income | 48.4 | 53.6 |
Other comprehensive (loss) income, net of tax | 0.3 | (4) |
Comprehensive Income | 48.7 | 49.6 |
Non-Guarantor Subsidiaries [Member] | ||
CONDENSED CONSOLIDATING STATEMENTS OF COMPREHENSIVE INCOME | ||
Net sales | 2,234 | 1,517.8 |
Cost of products sold | 1,681.8 | 1,181.2 |
Gross Profit | 552.2 | 336.6 |
Selling, distribution, and administrative expenses and other special project costs | 337.7 | 197 |
Amortization | 51.9 | 23.9 |
Other operating (income) expense - net | (2.2) | (0.2) |
Operating Income | 164.8 | 115.9 |
Interest (expense) income - net | (0.1) | (0.1) |
Other income (expense) - net | (2.8) | 0 |
Equity in net earnings of subsidiaries | 15 | 14.6 |
Income Before Income Taxes | 176.9 | 130.4 |
Income taxes | 70.3 | 43.7 |
Net Income | 106.6 | 86.7 |
Other comprehensive (loss) income, net of tax | (22.3) | (7) |
Comprehensive Income | $ 84.3 | $ 79.7 |
Guarantor and Non-Guarantor F56
Guarantor and Non-Guarantor Financial Information (Details 1) - USD ($) $ in Millions | Jul. 31, 2015 | Apr. 30, 2015 | Jul. 31, 2014 | Apr. 30, 2014 |
Current Assets | ||||
Cash and cash equivalents | $ 133.6 | $ 125.6 | $ 149.4 | $ 153.5 |
Inventories | 1,150.8 | 1,163.6 | ||
Other current assets | 741.1 | 771 | ||
Total Current Assets | 2,025.5 | 2,060.2 | ||
Property, Plant, and Equipment - Net | 1,656.8 | 1,678.3 | ||
Investments in Subsidiaries | 0 | 0 | ||
Intercompany Receivable | 0 | 0 | ||
Other Noncurrent Assets | ||||
Goodwill | 6,001.4 | 6,011.6 | ||
Other intangible assets - net | 6,891.7 | 6,950.3 | ||
Other noncurrent assets | 183 | 182.2 | ||
Total Other Noncurrent Assets | 13,076.1 | 13,144.1 | ||
Total Assets | 16,758.4 | 16,882.6 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | 1,059.1 | 1,022.6 | ||
Noncurrent Liabilities | ||||
Long-term debt | 5,694.7 | 5,944.9 | ||
Deferred income taxes | 2,522.2 | 2,473.3 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 352.4 | 354.9 | ||
Total Noncurrent Liabilities | 8,569.3 | 8,773.1 | ||
Total Liabilities | 9,628.4 | 9,795.7 | ||
Total Shareholders' Equity | 7,130 | 7,086.9 | ||
Total Liabilities and Shareholders' Equity | 16,758.4 | 16,882.6 | ||
Eliminations [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Inventories | (0.4) | 3.7 | ||
Other current assets | (12.8) | (12.6) | ||
Total Current Assets | (13.2) | (8.9) | ||
Property, Plant, and Equipment - Net | 0 | 0 | ||
Investments in Subsidiaries | (19,187.6) | (19,062.5) | ||
Intercompany Receivable | (566) | (438.3) | ||
Other Noncurrent Assets | ||||
Goodwill | 0 | 0 | ||
Other intangible assets - net | 0 | 0 | ||
Other noncurrent assets | 0 | 0 | ||
Total Other Noncurrent Assets | 0 | 0 | ||
Total Assets | (19,766.8) | (19,509.7) | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | (12.8) | (12.6) | ||
Noncurrent Liabilities | ||||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany payable | (3,203) | (3,080.2) | ||
Other noncurrent liabilities | 0 | 0 | ||
Total Noncurrent Liabilities | (3,203) | (3,080.2) | ||
Total Liabilities | (3,215.8) | (3,092.8) | ||
Total Shareholders' Equity | (16,551) | (16,416.9) | ||
Total Liabilities and Shareholders' Equity | (19,766.8) | (19,509.7) | ||
The J.M. Smucker Company (Parent) [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 10 | 7.1 | 18.7 | 6.8 |
Inventories | 0 | 0 | ||
Other current assets | 419 | 427.4 | ||
Total Current Assets | 429 | 434.5 | ||
Property, Plant, and Equipment - Net | 260.5 | 258 | ||
Investments in Subsidiaries | 14,687 | 14,610.4 | ||
Intercompany Receivable | 0 | 0 | ||
Other Noncurrent Assets | ||||
Goodwill | 1,082 | 1,082 | ||
Other intangible assets - net | 499.8 | 501.1 | ||
Other noncurrent assets | 55 | 55.6 | ||
Total Other Noncurrent Assets | 1,636.8 | 1,638.7 | ||
Total Assets | 17,013.3 | 16,941.6 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | 619.7 | 484 | ||
Noncurrent Liabilities | ||||
Long-term debt | 5,694.7 | 5,944.9 | ||
Deferred income taxes | 110.9 | 106.9 | ||
Intercompany payable | 3,203 | 3,080.2 | ||
Other noncurrent liabilities | 255 | 238.7 | ||
Total Noncurrent Liabilities | 9,263.6 | 9,370.7 | ||
Total Liabilities | 9,883.3 | 9,854.7 | ||
Total Shareholders' Equity | 7,130 | 7,086.9 | ||
Total Liabilities and Shareholders' Equity | 17,013.3 | 16,941.6 | ||
Subsidiary Guarantors [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 0 | 0 | 0 | 0 |
Inventories | 172.2 | 180.3 | ||
Other current assets | 10.5 | 4.8 | ||
Total Current Assets | 182.7 | 185.1 | ||
Property, Plant, and Equipment - Net | 585.6 | 591.3 | ||
Investments in Subsidiaries | 4,212.8 | 4,179.7 | ||
Intercompany Receivable | 313.9 | 305.2 | ||
Other Noncurrent Assets | ||||
Goodwill | 0 | 0 | ||
Other intangible assets - net | 0 | 0 | ||
Other noncurrent assets | 10.4 | 10.5 | ||
Total Other Noncurrent Assets | 10.4 | 10.5 | ||
Total Assets | 5,305.4 | 5,271.8 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | 67.3 | 82.6 | ||
Noncurrent Liabilities | ||||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 0 | 0 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 15.3 | 15.2 | ||
Total Noncurrent Liabilities | 15.3 | 15.2 | ||
Total Liabilities | 82.6 | 97.8 | ||
Total Shareholders' Equity | 5,222.8 | 5,174 | ||
Total Liabilities and Shareholders' Equity | 5,305.4 | 5,271.8 | ||
Non-Guarantor Subsidiaries [Member] | ||||
Current Assets | ||||
Cash and cash equivalents | 123.6 | 118.5 | $ 130.7 | $ 146.7 |
Inventories | 979 | 979.6 | ||
Other current assets | 324.4 | 351.4 | ||
Total Current Assets | 1,427 | 1,449.5 | ||
Property, Plant, and Equipment - Net | 810.7 | 829 | ||
Investments in Subsidiaries | 287.8 | 272.4 | ||
Intercompany Receivable | 252.1 | 133.1 | ||
Other Noncurrent Assets | ||||
Goodwill | 4,919.4 | 4,929.6 | ||
Other intangible assets - net | 6,391.9 | 6,449.2 | ||
Other noncurrent assets | 117.6 | 116.1 | ||
Total Other Noncurrent Assets | 11,428.9 | 11,494.9 | ||
Total Assets | 14,206.5 | 14,178.9 | ||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||
Current Liabilities | 384.9 | 468.6 | ||
Noncurrent Liabilities | ||||
Long-term debt | 0 | 0 | ||
Deferred income taxes | 2,411.3 | 2,366.4 | ||
Intercompany payable | 0 | 0 | ||
Other noncurrent liabilities | 82.1 | 101 | ||
Total Noncurrent Liabilities | 2,493.4 | 2,467.4 | ||
Total Liabilities | 2,878.3 | 2,936 | ||
Total Shareholders' Equity | 11,328.2 | 11,242.9 | ||
Total Liabilities and Shareholders' Equity | $ 14,206.5 | $ 14,178.9 |
Guarantor and Non-Guarantor F57
Guarantor and Non-Guarantor Financial Information (Details 2) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Jul. 31, 2015 | Jul. 31, 2014 | Apr. 30, 2015 | |
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net Cash Provided by (Used for) Operating Activities | $ 305.1 | $ (8.1) | |
Investing Activities | |||
Business acquired, net of cash acquired | 7.9 | 0 | |
Additions to property, plant, and equipment | (53) | (49) | |
Proceeds from disposal of property, plant, and equipment | 0 | 1.2 | |
(Disbursements of) repayments from intercompany loans | 0 | 0 | |
Other - net | 7 | (4.3) | |
Net Cash (Used for) Provided by Investing Activities | (38.1) | (52.1) | |
Financing Activities | |||
Short-term borrowings - net | 76.6 | 221.6 | |
Repayments of long-term debt | (250) | (100) | |
Quarterly dividends paid | (76.4) | (58.9) | |
Purchase of treasury shares | (6.9) | (10.6) | |
Intercompany payable | 0 | 0 | |
Other - net | 2.4 | 7.8 | |
Net Cash (Used for) Provided by Financing Activities | (254.3) | 59.9 | |
Effect of exchange rate changes on cash | (4.7) | (3.8) | |
Net increase (decrease) in cash and cash equivalents | 8 | (4.1) | |
Cash and cash equivalents at beginning of period | 125.6 | 153.5 | $ 153.5 |
Cash and Cash Equivalents at End of Period | 133.6 | 149.4 | 125.6 |
Eliminations [Member] | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net Cash Provided by (Used for) Operating Activities | 0 | 0 | |
Investing Activities | |||
Business acquired, net of cash acquired | 0 | ||
Additions to property, plant, and equipment | 0 | 0 | |
Proceeds from disposal of property, plant, and equipment | 0 | ||
(Disbursements of) repayments from intercompany loans | 122.8 | (35.6) | |
Other - net | 0 | 0 | |
Net Cash (Used for) Provided by Investing Activities | 122.8 | (35.6) | |
Financing Activities | |||
Short-term borrowings - net | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | |
Quarterly dividends paid | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | |
Intercompany payable | (122.8) | 35.6 | |
Other - net | 0 | 0 | |
Net Cash (Used for) Provided by Financing Activities | (122.8) | 35.6 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 | 0 |
The J.M. Smucker Company (Parent) [Member] | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net Cash Provided by (Used for) Operating Activities | 149.8 | 0 | |
Investing Activities | |||
Business acquired, net of cash acquired | 0 | ||
Additions to property, plant, and equipment | (14.8) | (12.3) | |
Proceeds from disposal of property, plant, and equipment | 0 | ||
(Disbursements of) repayments from intercompany loans | 0 | 0 | |
Other - net | 0 | (0.1) | |
Net Cash (Used for) Provided by Investing Activities | (14.8) | (12.4) | |
Financing Activities | |||
Short-term borrowings - net | 76 | 221.6 | |
Repayments of long-term debt | (250) | (100) | |
Quarterly dividends paid | (76.4) | (58.9) | |
Purchase of treasury shares | (6.9) | (10.6) | |
Intercompany payable | 122.8 | (35.6) | |
Other - net | 2.4 | 7.8 | |
Net Cash (Used for) Provided by Financing Activities | (132.1) | 24.3 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 2.9 | 11.9 | |
Cash and cash equivalents at beginning of period | 7.1 | 6.8 | 6.8 |
Cash and Cash Equivalents at End of Period | 10 | 18.7 | 7.1 |
Subsidiary Guarantors [Member] | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net Cash Provided by (Used for) Operating Activities | 27.6 | 7.9 | |
Investing Activities | |||
Business acquired, net of cash acquired | 0 | ||
Additions to property, plant, and equipment | (13.8) | (16.1) | |
Proceeds from disposal of property, plant, and equipment | 1.1 | ||
(Disbursements of) repayments from intercompany loans | (8.6) | 11.8 | |
Other - net | (5.2) | (4.7) | |
Net Cash (Used for) Provided by Investing Activities | (27.6) | (7.9) | |
Financing Activities | |||
Short-term borrowings - net | 0 | 0 | |
Repayments of long-term debt | 0 | 0 | |
Quarterly dividends paid | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | |
Intercompany payable | 0 | 0 | |
Other - net | 0 | 0 | |
Net Cash (Used for) Provided by Financing Activities | 0 | 0 | |
Effect of exchange rate changes on cash | 0 | 0 | |
Net increase (decrease) in cash and cash equivalents | 0 | 0 | |
Cash and cash equivalents at beginning of period | 0 | 0 | 0 |
Cash and Cash Equivalents at End of Period | 0 | 0 | 0 |
Non-Guarantor Subsidiaries [Member] | |||
CONDENSED CONSOLIDATING STATEMENTS OF CASH FLOWS | |||
Net Cash Provided by (Used for) Operating Activities | 127.7 | (16) | |
Investing Activities | |||
Business acquired, net of cash acquired | 7.9 | ||
Additions to property, plant, and equipment | (24.4) | (20.6) | |
Proceeds from disposal of property, plant, and equipment | 0.1 | ||
(Disbursements of) repayments from intercompany loans | (114.2) | 23.8 | |
Other - net | 12.2 | 0.5 | |
Net Cash (Used for) Provided by Investing Activities | (118.5) | 3.8 | |
Financing Activities | |||
Short-term borrowings - net | 0.6 | 0 | |
Repayments of long-term debt | 0 | 0 | |
Quarterly dividends paid | 0 | 0 | |
Purchase of treasury shares | 0 | 0 | |
Intercompany payable | 0 | 0 | |
Other - net | 0 | 0 | |
Net Cash (Used for) Provided by Financing Activities | 0.6 | 0 | |
Effect of exchange rate changes on cash | (4.7) | (3.8) | |
Net increase (decrease) in cash and cash equivalents | 5.1 | (16) | |
Cash and cash equivalents at beginning of period | 118.5 | 146.7 | 146.7 |
Cash and Cash Equivalents at End of Period | $ 123.6 | $ 130.7 | $ 118.5 |
Guarantor and Non-Guarantor F58
Guarantor and Non-Guarantor Financial Information (Details Textual) | Jul. 31, 2015 |
Guarantor and Non Guarantor Financial Information (Textual) [Abstract] | |
Percentage ownership of wholly-owned subsidiaries | 100.00% |