Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Oct. 31, 2015 | Nov. 30, 2015 | |
Document Information [Line Items] | ||
Entity Registrant Name | BROWN FORMAN CORP | |
Entity Central Index Key | 14,693 | |
Document Type | 10-Q | |
Document Period End Date | Oct. 31, 2015 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --04-30 | |
Entity Filer Category | Large Accelerated Filer | |
Common stock, Class A, voting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 84,528,000 | |
Common stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 116,819,323 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,096 | $ 1,135 | $ 1,995 | $ 2,056 |
Excise taxes | 242 | 258 | 444 | 474 |
Cost of sales | 268 | 268 | 475 | 478 |
Gross profit | 586 | 609 | 1,076 | 1,104 |
Advertising expenses | 115 | 123 | 209 | 223 |
Selling, general, and administrative expenses | 171 | 178 | 340 | 348 |
Other expense (income), net | (2) | 5 | (2) | 10 |
Operating income | 302 | 303 | 529 | 523 |
Interest income | 0 | 0 | 1 | 1 |
Interest expense | 12 | 7 | 22 | 14 |
Income before income taxes | 290 | 296 | 508 | 510 |
Income taxes | 90 | 88 | 152 | 152 |
Net income | $ 200 | $ 208 | $ 356 | $ 358 |
Earnings per share: | ||||
Basic (dollars per share) | $ 0.98 | $ 0.98 | $ 1.73 | $ 1.68 |
Diluted (dollars per share) | 0.97 | 0.97 | 1.72 | 1.67 |
Cash dividends per common share: | ||||
Declared (dollars per share) | 0 | 0 | 0.630 | 0.580 |
Paid (dollars per share) | $ 0.315 | $ 0.290 | $ 0.630 | $ 0.580 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 200 | $ 208 | $ 356 | $ 358 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | (4) | (30) | (28) | (46) |
Cash flow hedge adjustments | (4) | 22 | 12 | 27 |
Postretirement benefits adjustments | 6 | 12 | 10 | 16 |
Net other comprehensive income (loss) | (2) | 4 | (6) | (3) |
Comprehensive income | $ 198 | $ 212 | $ 350 | $ 355 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Assets | ||
Cash and cash equivalents | $ 195 | $ 370 |
Accounts receivable, less allowance for doubtful accounts of $10 and $10 at April 30 and October 31, respectively | 727 | 583 |
Inventories: | ||
Barreled whiskey | 604 | 571 |
Finished goods | 251 | 200 |
Work in process | 124 | 121 |
Raw materials and supplies | 88 | 61 |
Total inventories | 1,067 | 953 |
Current deferred tax assets | 18 | 16 |
Other current assets | 341 | 332 |
Total current assets | 2,348 | 2,254 |
Property, plant, and equipment, net | 619 | 586 |
Goodwill | 606 | 607 |
Other intangible assets | 608 | 611 |
Deferred tax assets | 17 | 18 |
Other assets | 121 | 112 |
Total assets | 4,319 | 4,188 |
Liabilities | ||
Accounts payable and accrued expenses | 549 | 497 |
Accrued income taxes | 16 | 12 |
Current deferred tax liabilities | 12 | 9 |
Short-term borrowings | 303 | 190 |
Current portion of long-term debt | 250 | 250 |
Total current liabilities | 1,130 | 958 |
Long-term debt | 1,229 | 743 |
Deferred tax liabilities | 116 | 107 |
Accrued pension and other postretirement benefits | 300 | 311 |
Other liabilities | 143 | 164 |
Total liabilities | $ 2,918 | $ 2,283 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Additional paid-in capital | $ 115 | $ 99 |
Retained earnings | 3,508 | 3,300 |
Accumulated other comprehensive income (loss), net of tax | (306) | (300) |
Treasury stock, at cost (18,613,000 and 25,971,000 shares at April 30 and October 31, respectively) | (1,950) | (1,228) |
Total stockholders' equity | 1,401 | 1,905 |
Total liabilities and stockholders' equity | 4,319 | 4,188 |
Common stock, Class A, voting [Member] | ||
Stockholders' Equity | ||
Common stock | 13 | 13 |
Common stock, Class B, nonvoting [Member] | ||
Stockholders' Equity | ||
Common stock | $ 21 | $ 21 |
Condensed Consolidated Balance5
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Allowance for doubtful accounts | $ 10 | $ 10 |
Treasury stock, shares | 25,971,000 | 18,613,000 |
Common stock, Class A, voting [Member] | ||
Common stock, shares authorized | 85,000,000 | 85,000,000 |
Common stock, shares issued | 85,000,000 | 85,000,000 |
Common stock, Class B, nonvoting [Member] | ||
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 142,313,000 | 142,313,000 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Oct. 31, 2015 | Oct. 31, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 356 | $ 358 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Depreciation and amortization | 27 | 25 |
Stock-based compensation expense | 8 | 6 |
Deferred income taxes | (8) | (18) |
Changes in assets and liabilities | (222) | (301) |
Cash provided by operating activities | 161 | 70 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (65) | (59) |
Acquisition of brand names and trademarks | 0 | (3) |
Computer software expenditures | (1) | (1) |
Cash used for investing activities | (66) | (63) |
Cash flows from financing activities: | ||
Net increase in short-term borrowings | 113 | 117 |
Proceeds from long-term debt | 490 | 0 |
Debt issuance costs | (5) | 0 |
Net payments related to exercise of stock-based awards | (6) | (6) |
Excess tax benefits from stock-based awards | 13 | 17 |
Acquisition of treasury stock | (739) | (205) |
Dividends paid | (130) | (124) |
Cash used for financing activities | (264) | (201) |
Effect of exchange rate changes on cash and cash equivalents | (6) | (8) |
Net decrease in cash and cash equivalents | (175) | (202) |
Cash and cash equivalents, beginning of period | 370 | 437 |
Cash and cash equivalents, end of period | $ 195 | $ 235 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 6 Months Ended |
Oct. 31, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended April 30, 2015 (the 2015 Form 10-K). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial results for the periods covered by this report. We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2015 Form 10-K, although during the first quarter of fiscal 2016 we adopted new guidance for the presentation of debt issuance costs. Under the new guidance, debt issuance costs are presented as a direct deduction from the debt liability rather than as an asset. In adopting the new guidance, we retrospectively adjusted our balance sheet as of April 30, 2015. As a result, the carrying amounts of other assets (noncurrent) and long-term debt have decreased by $5 million from the amounts previously reported as of that date. In May 2014, the Financial Accounting Standards Board (FASB) issued new guidance on the recognition of revenue from contracts with customers. As issued, the new guidance would have become effective for us beginning fiscal 2018. However, the FASB has since deferred the effective date until our fiscal 2019, though permitting voluntary adoption as of the original effective date. The FASB has also proposed further amendments to the new guidance. We are currently evaluating the potential impact of the new guidance and the proposed amendments on our financial statements. |
Inventories
Inventories | 6 Months Ended |
Oct. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories We use the last-in, first-out (LIFO) method to determine the cost of most of our inventories. If the LIFO method had not been used, inventories at current cost would have been $234 million higher than reported as of April 30, 2015 , and $243 million higher than reported as of October 31, 2015 . Changes in the LIFO valuation reserve for interim periods are based on a proportionate allocation of the estimated change for the entire fiscal year. |
Income Taxes
Income Taxes | 6 Months Ended |
Oct. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our consolidated interim effective tax rate is based upon our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions in which we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. The effective tax rate of 29.9% for the six months ended October 31, 2015 , is based on an expected tax rate of 30.5% on ordinary income for the full fiscal year, as adjusted for the recognition of a net tax benefit related to discrete items arising during the period and interest on previously provided tax contingencies. Our expected tax rate includes current fiscal year additions for existing tax contingency items. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share We calculate basic earnings per share by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. Diluted earnings per share further includes the dilutive effect of stock-based compensation awards, including stock options, stock-settled stock appreciation rights, restricted stock units, deferred stock units, and shares of restricted stock. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP). The following table presents information concerning basic and diluted earnings per share: Three Months Ended Six Months Ended October 31, October 31, (Dollars in millions, except per share amounts) 2014 2015 2014 2015 Net income available to common stockholders $ 208 $ 200 $ 358 $ 356 Share data (in thousands): Basic average common shares outstanding 212,087 204,055 212,674 205,558 Dilutive effect of stock-based awards 1,482 1,376 1,528 1,375 Diluted average common shares outstanding 213,569 205,431 214,202 206,933 Basic earnings per share $ 0.98 $ 0.98 $ 1.68 $ 1.73 Diluted earnings per share $ 0.97 $ 0.97 $ 1.67 $ 1.72 We excluded common stock-based awards for approximately 363,000 shares and 415,000 shares from the calculation of diluted earnings per share for the three months ended October 31, 2014 and 2015 , respectively. We excluded common stock-based awards for approximately 365,000 shares and 530,000 shares from the calculation of diluted earnings per share for the six months ended October 31, 2014 and 2015 , respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method. |
Contingencies
Contingencies | 6 Months Ended |
Oct. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We operate in a litigious environment, and we are sued in the normal course of business. Sometimes plaintiffs seek substantial damages. Significant judgment is required in predicting the outcome of these suits and claims, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and we can make a reasonable estimate of the loss, and then adjust the accrual as appropriate to reflect changes in facts and circumstances. We do not believe it is reasonably possible that these loss contingencies, individually or in the aggregate, would have a material adverse effect on our financial position, results of operations, or liquidity. No material accrued loss contingencies are recorded as of October 31, 2015 . We have guaranteed the repayment by a third-party importer of its obligation under a bank credit facility that it uses in connection with its importation of our products in Russia. If the importer were to default on that obligation, which we believe is unlikely, our maximum possible exposure under the existing terms of the guaranty would be approximately $16 million (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. As of October 31, 2015 , our actual exposure under the guaranty of the importer's obligation is approximately $9 million . We also have accounts receivable from that importer of approximately $26 million at October 31, 2015 , which we expect to collect in full. Based on the financial support we provide to the importer, we believe it meets the definition of a variable interest entity. However, because we do not control this entity, it is not included in our consolidated financial statements. |
Debt
Debt | 6 Months Ended |
Oct. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt Disclosure | Debt Our long-term debt (net of unamortized discount and issuance costs) consisted of: (Dollars in millions) April 30, October 31, 2.50% notes, due in fiscal 2016 $ 250 $ 250 1.00% notes, due in fiscal 2018 248 249 2.25% notes, due in fiscal 2023 247 247 3.75% notes, due in fiscal 2043 248 248 4.50% notes, due in fiscal 2046 — 485 993 1,479 Less current portion 250 250 $ 743 $ 1,229 We issued senior, unsecured notes with an aggregate principal amount of $500 million in June 2015. Interest on the notes will accrue at a rate of 4.5% and be paid semi-annually. As of October 31, 2015 , the carrying amount of the notes was $485 million ( $500 million principal, less discounts of $10 million and issuance costs of $5 million ). The notes are due on July 15, 2045. As of April 30, 2015, our short-term borrowings of $190 million included $183 million of commercial paper, with an average interest rate of 0.17% and a remaining maturity of 13 days . As of October 31, 2015 , our short-term borrowings of $303 million included $295 million of commercial paper, with an average interest rate of 0.21% and a remaining maturity of 21 days . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 6 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality. Three Months Ended Six Months Ended October 31, October 31, (Dollars in millions) 2014 2015 2014 2015 Pension Benefits : Service cost $ 5 $ 6 $ 11 $ 13 Interest cost 8 9 17 17 Expected return on plan assets (10 ) (10 ) (21 ) (20 ) Amortization of: Prior service cost — — 1 — Net actuarial loss 6 7 11 14 Net cost $ 9 $ 12 $ 19 $ 24 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost $ 1 $ 1 2 1 Amortization of prior service cost — (1 ) (1 ) (1 ) Net cost $ 1 $ — $ 2 $ 1 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based upon the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are: • Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. • Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be derived from or corroborated by observable market data. • Level 3 – Unobservable inputs that are supported by little or no market activity. The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: (Dollars in millions) Level 1 Level 2 Level 3 Total April 30, 2015: Assets: Currency derivatives $ — $ 59 $ — $ 59 Liabilities: Currency derivatives — 18 — 18 Short-term borrowings — 190 — 190 Current portion of long-term debt — 253 — 253 Long-term debt — 735 — 735 October 31, 2015: Assets: Currency derivatives — 68 — 68 Liabilities: Currency derivatives — 4 — 4 Short-term borrowings — 303 — 303 Current portion of long-term debt — 251 — 251 Long-term debt — 1,232 — 1,232 We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable exchange rates, forward rates, and discount rates. The discount rates are based on the historical U.S. Treasury rates. The fair value of short-term borrowings approximates their carrying amount. We determine the fair value of long-term debt primarily based on the prices at which similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Oct. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of derivative financial instruments and long-term debt as discussed in Note 8. Below is a comparison of the fair values and carrying amounts of these instruments: April 30, 2015 October 31, 2015 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets: Cash and cash equivalents $ 370 $ 370 $ 195 $ 195 Currency derivatives 59 59 68 68 Liabilities: Currency derivatives 18 18 4 4 Short-term borrowings 190 190 303 303 Current portion of long-term debt 250 253 250 251 Long-term debt 743 735 1,229 1,232 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Our multinational business exposes us to global market risks, including the effect of fluctuations in currency exchange rates, commodity prices, and interest rates. We use derivatives to help manage financial exposures that occur in the normal course of business. We formally document the purpose of each derivative contract, which includes linking the contract to the financial exposure it is designed to mitigate. We do not hold or issue derivatives for trading or speculative purposes. We use currency derivative contracts to limit our exposure to the currency exchange risk that we cannot mitigate internally by using netting strategies. We designate most of these contracts as cash flow hedges of forecasted transactions (expected to occur within three years). We record all changes in the fair value of cash flow hedges (except any ineffective portion) in accumulated other comprehensive income (AOCI) until the underlying hedged transaction occurs, at which time we reclassify that amount into earnings. We assess the effectiveness of these hedges based on changes in forward exchange rates. The ineffective portion of the changes in fair value of our hedges (recognized immediately in earnings) during the periods presented in this report was not material. We do not designate some of our currency derivatives as hedges because we use them to at least partially offset the immediate earnings impact of changes in foreign exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings. We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts totaling $1,212 million at April 30, 2015 and $1,289 million at October 31, 2015 . We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to physically take delivery of the corn underlying each contract and use it for production over a reasonable period of time. Accordingly, we account for these contracts as normal purchases rather than derivative instruments. During May 2015, we entered into interest rate derivative contracts (U.S. treasury lock agreements) to manage the interest rate risk related to the anticipated issuance of fixed-rate senior, unsecured notes. We designated the contracts as cash flow hedges of the future interest payments associated with the anticipated notes. Upon issuance of the notes in June 2015 (see Note 6), we settled the contracts for a gain of $8 million . The entire gain was recorded to AOCI and will be amortized as a reduction of interest expense over the life of the notes. The following table presents the pre-tax impact that changes in the fair value of our derivative instruments had on AOCI and earnings during the periods covered by this report: Three Months Ended October 31, (Dollars in millions) Classification 2014 2015 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 42 $ 9 Net gain (loss) reclassified from AOCI into income Net sales 6 17 Derivatives not designated as hedging instruments: Currency derivatives – net gain (loss) recognized in income Net sales 11 — Currency derivatives – net gain (loss) recognized in income Other income 3 — Six Months Ended October 31, (Dollars in millions) Classification 2014 2015 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 47 $ 38 Net gain (loss) reclassified from AOCI into income Net sales 4 30 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — 8 Derivatives not designated as hedging instruments: Currency derivatives – net gain (loss) recognized in income Net sales 8 3 Currency derivatives – net gain (loss) recognized in income Other income (6 ) 4 We expect to reclassify $35 million of deferred net gains recorded in AOCI as of October 31, 2015 , to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur. As of October 31, 2015 , the maximum term of our outstanding derivative contracts was 36 months . The following table presents the fair values of our derivative instruments as of April 30, 2015 and October 31, 2015 . (Dollars in millions) Classification Fair value of derivatives in a gain position Fair value of derivatives in a loss position April 30, 2015: Designated as cash flow hedges: Currency derivatives Other current assets $ 42 $ (2 ) Currency derivatives Other assets 20 (3 ) Currency derivatives Accrued expenses — (6 ) Currency derivatives Other liabilities — (6 ) Not designated as hedges: Currency derivatives Other current assets 3 (1 ) Currency derivatives Accrued expenses 1 (7 ) October 31, 2015: Designated as cash flow hedges: Currency derivatives Other current assets 44 — Currency derivatives Other assets 20 (1 ) Currency derivatives Accrued expenses — (3 ) Currency derivatives Other liabilities 1 (2 ) Not designated as hedges: Currency derivatives Other current assets 6 (1 ) The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments that are subject to net settlement agreements are presented in our balance sheets on a net basis. In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items. Credit risk. We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the contracts. To manage this risk, we contract only with major financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that are regularly monitored and that provide for reports to senior management according to prescribed guidelines, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments. Some of our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of all derivatives with creditworthiness requirements that were in a net liability position was $18 million at April 30, 2015 and $4 million at October 31, 2015 . Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet. The following table summarizes the gross and net amounts of our derivative contracts. (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2015: Derivative assets $ 65 $ (6 ) $ 59 $ — $ 59 Derivative liabilities (24 ) 6 (18 ) — (18 ) October 31, 2015: Derivative assets 70 (2 ) 68 — 68 Derivative liabilities (6 ) 2 (4 ) — (4 ) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2015 and October 31, 2015 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Oct. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income The following table summarizes the changes in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended October 31, 2014 and 2015 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at July 31, 2014 $ (10 ) $ 1 $ (186 ) $ (195 ) Net other comprehensive income (loss) (30 ) 22 12 4 Balance at October 31, 2014 $ (40 ) $ 23 $ (174 ) $ (191 ) Balance at July 31, 2015 $ (132 ) $ 44 $ (216 ) $ (304 ) Net other comprehensive income (loss) (4 ) (4 ) 6 (2 ) Balance at October 31, 2015 $ (136 ) $ 40 $ (210 ) $ (306 ) The following table presents the components of net other comprehensive income (loss) during the three months ended October 31, 2014 and 2015 : Pre-Tax Tax Net Three Months Ended October 31, 2014 Currency translation adjustments $ (32 ) $ 2 $ (30 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 42 (16 ) 26 Reclassification to earnings 1 (6 ) 2 (4 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 14 (5 ) 9 Reclassification to earnings 2 6 (3 ) 3 Net other comprehensive income (loss) $ 24 $ (20 ) $ 4 Three Months Ended October 31, 2015 Currency translation adjustments $ (4 ) $ — $ (4 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 9 (3 ) 6 Reclassification to earnings 1 (17 ) 7 (10 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — Reclassification to earnings 2 9 (3 ) 6 Net other comprehensive income (loss) $ (3 ) $ 1 $ (2 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality). The following table summarizes the changes in each component of AOCI, net of tax, during the six months ended October 31, 2014 and 2015 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2014 $ 6 $ (4 ) $ (190 ) $ (188 ) Net other comprehensive income (loss) (46 ) 27 16 (3 ) Balance at October 31, 2014 $ (40 ) $ 23 $ (174 ) $ (191 ) Balance at April 30, 2015 $ (108 ) $ 28 $ (220 ) $ (300 ) Net other comprehensive income (loss) (28 ) 12 10 (6 ) Balance at October 31, 2015 $ (136 ) $ 40 $ (210 ) $ (306 ) The following table presents the components of net other comprehensive income (loss) during the six months ended October 31, 2014 and 2015 : Pre-Tax Tax Net Six Months Ended October 31, 2014 Currency translation adjustments $ (48 ) $ 2 $ (46 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 47 (17 ) 30 Reclassification to earnings 1 (4 ) 1 (3 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 14 (5 ) 9 Reclassification to earnings 2 12 (5 ) 7 Net other comprehensive income (loss) $ 21 $ (24 ) $ (3 ) Six Months Ended October 31, 2015 Currency translation adjustments $ (27 ) $ (1 ) $ (28 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 46 (15 ) 31 Reclassification to earnings 1 (30 ) 11 (19 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — Reclassification to earnings 2 16 (6 ) 10 Net other comprehensive income (loss) $ 5 $ (11 ) $ (6 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality). |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Oct. 31, 2015 | |
Subsequent Event [Abstract] | |
Subsequent Event | Subsequent Event As announced on November 19, 2015, our Board of Directors increased our quarterly cash dividend on our Class A and Class B common stock from $0.315 per share to $0.340 per share. Stockholders of record on December 3, 2015, will receive the cash dividend on December 30, 2015. |
Derivative Financial Instrume19
Derivative Financial Instruments (Policies) | 6 Months Ended |
Oct. 31, 2015 | |
Derivative Financial Instruments [Abstract] | |
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block] | In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents information concerning basic and diluted earnings per share: Three Months Ended Six Months Ended October 31, October 31, (Dollars in millions, except per share amounts) 2014 2015 2014 2015 Net income available to common stockholders $ 208 $ 200 $ 358 $ 356 Share data (in thousands): Basic average common shares outstanding 212,087 204,055 212,674 205,558 Dilutive effect of stock-based awards 1,482 1,376 1,528 1,375 Diluted average common shares outstanding 213,569 205,431 214,202 206,933 Basic earnings per share $ 0.98 $ 0.98 $ 1.68 $ 1.73 Diluted earnings per share $ 0.97 $ 0.97 $ 1.67 $ 1.72 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Debt Instrument [Line Items] | |
Schedule of Long-term Debt Instruments | Our long-term debt (net of unamortized discount and issuance costs) consisted of: (Dollars in millions) April 30, October 31, 2.50% notes, due in fiscal 2016 $ 250 $ 250 1.00% notes, due in fiscal 2018 248 249 2.25% notes, due in fiscal 2023 247 247 3.75% notes, due in fiscal 2043 248 248 4.50% notes, due in fiscal 2046 — 485 993 1,479 Less current portion 250 250 $ 743 $ 1,229 |
Pension and Other Postretirem22
Pension and Other Postretirement Benefits (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality. Three Months Ended Six Months Ended October 31, October 31, (Dollars in millions) 2014 2015 2014 2015 Pension Benefits : Service cost $ 5 $ 6 $ 11 $ 13 Interest cost 8 9 17 17 Expected return on plan assets (10 ) (10 ) (21 ) (20 ) Amortization of: Prior service cost — — 1 — Net actuarial loss 6 7 11 14 Net cost $ 9 $ 12 $ 19 $ 24 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost $ 1 $ 1 2 1 Amortization of prior service cost — (1 ) (1 ) (1 ) Net cost $ 1 $ — $ 2 $ 1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: (Dollars in millions) Level 1 Level 2 Level 3 Total April 30, 2015: Assets: Currency derivatives $ — $ 59 $ — $ 59 Liabilities: Currency derivatives — 18 — 18 Short-term borrowings — 190 — 190 Current portion of long-term debt — 253 — 253 Long-term debt — 735 — 735 October 31, 2015: Assets: Currency derivatives — 68 — 68 Liabilities: Currency derivatives — 4 — 4 Short-term borrowings — 303 — 303 Current portion of long-term debt — 251 — 251 Long-term debt — 1,232 — 1,232 |
Fair Value of Financial Instr24
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Comparison of the fair values and carrying amounts of financial instrument | The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of derivative financial instruments and long-term debt as discussed in Note 8. Below is a comparison of the fair values and carrying amounts of these instruments: April 30, 2015 October 31, 2015 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets: Cash and cash equivalents $ 370 $ 370 $ 195 $ 195 Currency derivatives 59 59 68 68 Liabilities: Currency derivatives 18 18 4 4 Short-term borrowings 190 190 303 303 Current portion of long-term debt 250 253 250 251 Long-term debt 743 735 1,229 1,232 |
Derivative Financial Instrume25
Derivative Financial Instruments (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Three Months Ended October 31, (Dollars in millions) Classification 2014 2015 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 42 $ 9 Net gain (loss) reclassified from AOCI into income Net sales 6 17 Derivatives not designated as hedging instruments: Currency derivatives – net gain (loss) recognized in income Net sales 11 — Currency derivatives – net gain (loss) recognized in income Other income 3 — Six Months Ended October 31, (Dollars in millions) Classification 2014 2015 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 47 $ 38 Net gain (loss) reclassified from AOCI into income Net sales 4 30 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a — 8 Derivatives not designated as hedging instruments: Currency derivatives – net gain (loss) recognized in income Net sales 8 3 Currency derivatives – net gain (loss) recognized in income Other income (6 ) 4 |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the fair values of our derivative instruments as of April 30, 2015 and October 31, 2015 . (Dollars in millions) Classification Fair value of derivatives in a gain position Fair value of derivatives in a loss position April 30, 2015: Designated as cash flow hedges: Currency derivatives Other current assets $ 42 $ (2 ) Currency derivatives Other assets 20 (3 ) Currency derivatives Accrued expenses — (6 ) Currency derivatives Other liabilities — (6 ) Not designated as hedges: Currency derivatives Other current assets 3 (1 ) Currency derivatives Accrued expenses 1 (7 ) October 31, 2015: Designated as cash flow hedges: Currency derivatives Other current assets 44 — Currency derivatives Other assets 20 (1 ) Currency derivatives Accrued expenses — (3 ) Currency derivatives Other liabilities 1 (2 ) Not designated as hedges: Currency derivatives Other current assets 6 (1 ) |
Offsetting Derivative Assets and Liabilities [Table Text Block] | The following table summarizes the gross and net amounts of our derivative contracts. (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2015: Derivative assets $ 65 $ (6 ) $ 59 $ — $ 59 Derivative liabilities (24 ) 6 (18 ) — (18 ) October 31, 2015: Derivative assets 70 (2 ) 68 — 68 Derivative liabilities (6 ) 2 (4 ) — (4 ) |
Accumulated Other Comprehensi26
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Oct. 31, 2015 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the changes in each component of AOCI, net of tax, during the six months ended October 31, 2014 and 2015 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2014 $ 6 $ (4 ) $ (190 ) $ (188 ) Net other comprehensive income (loss) (46 ) 27 16 (3 ) Balance at October 31, 2014 $ (40 ) $ 23 $ (174 ) $ (191 ) Balance at April 30, 2015 $ (108 ) $ 28 $ (220 ) $ (300 ) Net other comprehensive income (loss) (28 ) 12 10 (6 ) Balance at October 31, 2015 $ (136 ) $ 40 $ (210 ) $ (306 ) The following table summarizes the changes in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended October 31, 2014 and 2015 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at July 31, 2014 $ (10 ) $ 1 $ (186 ) $ (195 ) Net other comprehensive income (loss) (30 ) 22 12 4 Balance at October 31, 2014 $ (40 ) $ 23 $ (174 ) $ (191 ) Balance at July 31, 2015 $ (132 ) $ 44 $ (216 ) $ (304 ) Net other comprehensive income (loss) (4 ) (4 ) 6 (2 ) Balance at October 31, 2015 $ (136 ) $ 40 $ (210 ) $ (306 ) |
Comprehensive Income (Loss) [Table Text Block] | The following table presents the components of net other comprehensive income (loss) during the three months ended October 31, 2014 and 2015 : Pre-Tax Tax Net Three Months Ended October 31, 2014 Currency translation adjustments $ (32 ) $ 2 $ (30 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 42 (16 ) 26 Reclassification to earnings 1 (6 ) 2 (4 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 14 (5 ) 9 Reclassification to earnings 2 6 (3 ) 3 Net other comprehensive income (loss) $ 24 $ (20 ) $ 4 Three Months Ended October 31, 2015 Currency translation adjustments $ (4 ) $ — $ (4 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 9 (3 ) 6 Reclassification to earnings 1 (17 ) 7 (10 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — Reclassification to earnings 2 9 (3 ) 6 Net other comprehensive income (loss) $ (3 ) $ 1 $ (2 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality). The following table presents the components of net other comprehensive income (loss) during the six months ended October 31, 2014 and 2015 : Pre-Tax Tax Net Six Months Ended October 31, 2014 Currency translation adjustments $ (48 ) $ 2 $ (46 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 47 (17 ) 30 Reclassification to earnings 1 (4 ) 1 (3 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 14 (5 ) 9 Reclassification to earnings 2 12 (5 ) 7 Net other comprehensive income (loss) $ 21 $ (24 ) $ (3 ) Six Months Ended October 31, 2015 Currency translation adjustments $ (27 ) $ (1 ) $ (28 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 46 (15 ) 31 Reclassification to earnings 1 (30 ) 11 (19 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — Reclassification to earnings 2 16 (6 ) 10 Net other comprehensive income (loss) $ 5 $ (11 ) $ (6 ) 1 Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. 2 Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality). |
Condensed Consolidated Financ27
Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements (Details) $ in Millions | Apr. 30, 2015USD ($) |
Accounting Standards Update 2015-03 [Member] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 5 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Inventories (Textual) [Abstract] | ||
Excess of current costs over stated LIFO value | $ 243 | $ 234 |
Income Taxes (Details)
Income Taxes (Details) | 6 Months Ended |
Oct. 31, 2015 | |
Income Taxes (Textual) [Abstract] | |
Effective tax rate | 29.90% |
Expected tax rate | 30.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Basic and diluted earnings per share | ||||
Net income available to common stockholders | $ 200 | $ 208 | $ 356 | $ 358 |
Share data (in thousands): | ||||
Basic average common shares outstanding | 204,055 | 212,087 | 205,558 | 212,674 |
Dilutive effect of stock-based awards | 1,376 | 1,482 | 1,375 | 1,528 |
Diluted average common shares outstanding | 205,431 | 213,569 | 206,933 | 214,202 |
Basic earnings per share (dollars per share) | $ 0.98 | $ 0.98 | $ 1.73 | $ 1.68 |
Diluted earnings per share (dollars per share) | $ 0.97 | $ 0.97 | $ 1.72 | $ 1.67 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Earnings Per Share (Textual) [Abstract] | ||||
Common stock-based awards excluded from the calculation of diluted earnings per share | 415 | 363 | 530 | 365 |
Guarantee (Details)
Guarantee (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Concentration Risk [Line Items] | ||
Accounts receivable | $ 727 | $ 583 |
Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Guaranty exposure, maximum | 16 | |
Guaranty exposure, current | 9 | |
Accounts receivable | $ 26 |
Debt (Details)
Debt (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Jun. 30, 2015 | Apr. 30, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt, including current portion | $ 1,479 | $ 993 | |
Current portion of long-term debt | 250 | 250 | |
Long-term debt | $ 1,229 | $ 743 | |
Two Point Five Percent Notes Due In Fiscal Two Thousand Sixteen [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.50% | 2.50% | |
Long-term debt, including current portion | $ 250 | $ 250 | |
One Point Zero Percent Notes Due in Fiscal Two Thousand Eighteen [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | |
Long-term debt, including current portion | $ 249 | $ 248 | |
Two Point Two Five Percent Notes Due in Fiscal Two Thousand Twenty Three [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | |
Long-term debt, including current portion | $ 247 | $ 247 | |
Three Point Seven Five Percent Notes Due in Fiscal Two Thousand Forty Three [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | |
Long-term debt, including current portion | $ 248 | $ 248 | |
Four Point Five Percent Notes Due in Fiscal Two Thousand Forty Six [Member] [Member] | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% |
Long-term debt, including current portion | $ 485 | $ 0 | |
Debt Instrument, Unamortized Discount | 10 | ||
Unamortized Debt Issuance Expense | $ 5 |
Debt Short-term borrowings (Det
Debt Short-term borrowings (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Oct. 31, 2015 | Apr. 30, 2015 | |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 303 | $ 190 |
Commercial Paper | $ 295 | $ 183 |
Commercial Paper Borrowings, Weighted Average Interest Rate | 0.21% | 0.17% |
Commercial Paper Borrowings, Average Remaining Maturity | 21 days | 13 days |
Pension and Other Postretirem35
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | $ 6 | $ 5 | $ 13 | $ 11 |
Interest cost | 9 | 8 | 17 | 17 |
Expected return on plan assets | (10) | (10) | (20) | (21) |
Amortization of: | ||||
Prior service cost | 0 | 0 | 0 | 1 |
Net actuarial loss | 7 | 6 | 14 | 11 |
Net cost | 12 | 9 | 24 | 19 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Service cost | 0 | 0 | 1 | 1 |
Interest cost | 1 | 1 | 1 | 2 |
Amortization of: | ||||
Prior service cost | (1) | 0 | (1) | (1) |
Net cost | $ 0 | $ 1 | $ 1 | $ 2 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | $ 303 | $ 190 |
Long-term debt | 1,232 | 735 |
Currency derivatives [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 4 | 18 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 303 | 190 |
Current portion of long-term debt | 251 | 253 |
Long-term debt | 1,232 | 735 |
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 68 | 59 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 4 | 18 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 0 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 303 | 190 |
Current portion of long-term debt | 251 | 253 |
Long-term debt | 1,232 | 735 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 68 | 59 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 4 | 18 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 0 | 0 |
Current portion of long-term debt | 0 | 0 |
Long-term debt | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 0 | 0 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | $ 0 | $ 0 |
Fair Value of Financial Instr37
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2014 |
Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 195 | $ 370 | $ 235 | $ 437 |
Cash and cash equivalents, Fair Value | 195 | 370 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 303 | 190 | ||
Short-term borrowings, Fair Value | 303 | 190 | ||
Current portion of long-term debt, Carrying Amount | 250 | 250 | ||
Current portion of long-term debt, Fair Value | 251 | 253 | ||
Long-term debt, Carrying Amount | 1,229 | 743 | ||
Long-term debt, Fair Value | 1,232 | 735 | ||
Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Fair Value | 68 | 59 | ||
Liabilities: | ||||
Currency derivatives, Fair Value | 4 | 18 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and cash equivalents, Carrying Amount | 195 | 370 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 303 | 190 | ||
Current portion of long-term debt, Carrying Amount | 250 | 250 | ||
Long-term debt, Carrying Amount | 1,229 | 743 | ||
Reported Value Measurement [Member] | Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Carrying Amount | 68 | 59 | ||
Liabilities: | ||||
Currency derivatives, Carrying Amount | $ 4 | $ 18 |
Derivative Financial Instrume38
Derivative Financial Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Cash Flow Hedging [Member] | Currency derivatives [Member] | ||||
Derivative instrument gains and losses affecting statements of operations | ||||
Net gain (loss) recognized in AOCI | $ 9 | $ 42 | $ 38 | $ 47 |
Cash Flow Hedging [Member] | Treasury Lock [Member] | ||||
Derivative instrument gains and losses affecting statements of operations | ||||
Net gain (loss) recognized in AOCI | 8 | 0 | ||
Net Sales [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ||||
Derivative instrument gains and losses affecting statements of operations | ||||
Net gain (loss) reclassified from AOCI into income | 17 | 6 | 30 | 4 |
Net Sales [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||||
Derivative instrument gains and losses affecting statements of operations | ||||
Gain (loss) on derivative instruments recognized in income | 0 | 11 | 3 | 8 |
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||||
Derivative instrument gains and losses affecting statements of operations | ||||
Gain (loss) on derivative instruments recognized in income | $ 0 | $ 3 | $ 4 | $ (6) |
Derivative Financial Instrume39
Derivative Financial Instruments (Details 1) - Currency derivatives [Member] - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | $ 6 | $ 3 |
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 1 | |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 44 | 42 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 20 | 20 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 0 | 0 |
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 1 | 0 |
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (1) | (1) |
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (7) | |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 0 | (2) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (1) | (3) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (3) | (6) |
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | $ (2) | $ (6) |
Derivative Financial Instrume40
Derivative Financial Instruments (Details Textual) - USD ($) $ in Millions | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 1,289 | $ 1,212 | |
Derivative Financial Instruments (Textual) [Abstract] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 35 | ||
Maximum term of outstanding derivative contracts | 36 months | ||
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position | $ 4 | $ 18 | |
Treasury Lock [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ 8 | $ 0 |
Derivative Financial Instrume41
Derivative Financial Instruments Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Oct. 31, 2015 | Apr. 30, 2015 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 70 | $ 65 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (2) | (6) |
Net Amount of Derivative Assets Presented in Balance Sheet | 68 | 59 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | 0 | 0 |
Net Amount of Derivative Assets | 68 | 59 |
Gross Amount of Derivative Liabilities | (6) | (24) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 2 | 6 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | 4 | 18 |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 0 | 0 |
Net Amount of Derivative Liabilities | $ 4 | $ 18 |
Changes in Accumulated Other Co
Changes in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | $ (304) | $ (195) | $ (300) | $ (188) |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (4) | (30) | (28) | (46) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent | (4) | 22 | 12 | 27 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent | 6 | 12 | 10 | 16 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (2) | 4 | (6) | (3) |
Ending balance | (306) | (191) | (306) | (191) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | 44 | 1 | 28 | (4) |
Ending balance | 40 | 23 | 40 | 23 |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (132) | (10) | (108) | 6 |
Ending balance | (136) | (40) | (136) | (40) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Beginning balance | (216) | (186) | (220) | (190) |
Ending balance | $ (210) | $ (174) | $ (210) | $ (174) |
Accumulated Other Comprehensi43
Accumulated Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 | ||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax | $ (4) | $ (32) | $ (27) | $ (48) | |
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax | 0 | 2 | (1) | 2 | |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | (4) | (30) | (28) | (46) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax | 9 | 42 | 46 | 47 | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (3) | (16) | (15) | (17) | |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 6 | 26 | 31 | 30 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax | [1] | (17) | (6) | (30) | (4) |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax | [1] | 7 | 2 | 11 | 1 |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax | [1] | (10) | (4) | (19) | (3) |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) and Net Prior Service Credit (Cost) Arising During Period, before Tax | 0 | 14 | 0 | 14 | |
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) and Net Prior Service Credit (Cost) Arising During Period, Tax | 0 | (5) | 0 | (5) | |
Other Comprehensive Income Defined Benefit Plan Actuarial Gain Loss And Net Prior Service Costs Credit Arising During Period Net Of Tax | 0 | 9 | 0 | 9 | |
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss) and Net Prior Service Credit (Cost), before Tax | [2] | 9 | 6 | 16 | 12 |
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss and Prior Service (Credit) Cost, Tax | [2] | (3) | (3) | (6) | (5) |
Other Comprehensive Income Reclassification Of Actuarial Gain Loss And Prior Service Cost Net Of Tax | [2] | 6 | 3 | 10 | 7 |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | (3) | 24 | 5 | 21 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | 1 | (20) | (11) | (24) | |
Other Comprehensive Income (Loss), Net of Tax | $ (2) | $ 4 | $ (6) | $ (3) | |
[1] | 1Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations. | ||||
[2] | 2Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality). |
Subsequent Event (Details)
Subsequent Event (Details) - $ / shares | Nov. 19, 2015 | Oct. 31, 2015 | Oct. 31, 2014 | Oct. 31, 2015 | Oct. 31, 2014 |
Subsequent Event [Line Items] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.315 | $ 0.290 | $ 0.630 | $ 0.580 | |
Common Stock, Dividends, Per Share, Declared | $ 0 | $ 0 | $ 0.630 | $ 0.580 | |
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.340 |