Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Apr. 30, 2017 | May 31, 2017 | Oct. 31, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | BROWN FORMAN CORP | ||
Entity Central Index Key | 14,693 | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 30, 2017 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --04-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 12.6 | ||
Common stock, Class A, voting [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 169,027,456 | ||
Common Stock, Class B, nonvoting [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 215,178,607 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Income Statement [Abstract] | |||
Sales | $ 3,857 | $ 4,011 | $ 4,096 |
Excise taxes | 863 | 922 | 962 |
Net sales | 2,994 | 3,089 | 3,134 |
Cost of sales | 973 | 945 | 951 |
Gross profit | 2,021 | 2,144 | 2,183 |
Advertising expenses | 383 | 417 | 437 |
Selling, general, and administrative expenses | 667 | 688 | 697 |
Gain on sale of business | 0 | (485) | 0 |
Other expense (income), net | (18) | (9) | 22 |
Operating income | 989 | 1,533 | 1,027 |
Interest income | 3 | 2 | 2 |
Interest expense | 59 | 46 | 27 |
Income before income taxes | 933 | 1,489 | 1,002 |
Income taxes | 264 | 422 | 318 |
Net income | $ 669 | $ 1,067 | $ 684 |
Earnings per share: | |||
Basic (dollars per share) | $ 1.72 | $ 2.63 | $ 1.62 |
Diluted (dollars per share) | $ 1.71 | $ 2.61 | $ 1.60 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 669 | $ 1,067 | $ 684 |
Other comprehensive income (loss), net of tax: | |||
Currency translation adjustments | (73) | (23) | (114) |
Cash flow hedge adjustments | 0 | (17) | 32 |
Postretirement benefits adjustments | 33 | (10) | (30) |
Net other comprehensive income (loss) | (40) | (50) | (112) |
Comprehensive income | $ 629 | $ 1,017 | $ 572 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 182 | $ 263 |
Accounts receivable, less allowance for doubtful accounts of $9 in 2016 and $7 in 2017 | 557 | 559 |
Inventories: | ||
Barreled whiskey | 873 | 666 |
Finished goods | 186 | 187 |
Work in process | 119 | 116 |
Raw materials and supplies | 92 | 85 |
Total inventories | 1,270 | 1,054 |
Other current assets | 342 | 357 |
Total current assets | 2,351 | 2,233 |
Property, plant, and equipment, net | 713 | 629 |
Goodwill | 753 | 590 |
Other intangible assets | 641 | 595 |
Deferred tax assets | 16 | 17 |
Other assets | 151 | 119 |
Total assets | 4,625 | 4,183 |
LIABILITIES | ||
Accounts payable and accrued expenses | 501 | 501 |
Accrued income taxes | 9 | 19 |
Short-term borrowings | 211 | 271 |
Current portion of long-term debt | 249 | 0 |
Total current liabilities | 970 | 791 |
Long-term debt | 1,689 | 1,230 |
Deferred tax liabilities | 152 | 101 |
Accrued pension and other postretirement benefits | 314 | 353 |
Other liabilities | 130 | 146 |
Total liabilities | 3,255 | 2,621 |
Commitments and contingencies | ||
STOCKHOLDERS’ EQUITY | ||
Additional paid-in capital | 65 | 114 |
Retained earnings | 4,470 | 4,065 |
Accumulated other comprehensive income (loss), net of tax | (390) | (350) |
Treasury stock, at cost (59,143,000 and 70,540,000 shares in 2016 and 2017, respectively) | (2,843) | (2,301) |
Total stockholders’ equity | 1,370 | 1,562 |
Total liabilities and stockholders’ equity | 4,625 | 4,183 |
Common stock, Class A, voting [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 25 | 13 |
Common Stock, Class B, nonvoting [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | $ 43 | $ 21 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands, $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Allowance for doubtful accounts | $ 7 | $ 9 |
Common stock, par value | $ 0.15 | |
Treasury stock, shares | 70,540 | 59,143 |
Common stock, Class A, voting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common Stock, Class B, nonvoting [Member] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 669 | $ 1,067 | $ 684 |
Adjustments to reconcile net income to net cash provided by operations: | |||
Gain on sale of business | 0 | (485) | 0 |
Depreciation and amortization | 58 | 56 | 51 |
Stock-based compensation expense | 14 | 15 | 15 |
Deferred income taxes | (10) | 10 | 6 |
Other, net | 2 | 2 | 9 |
Changes in assets and liabilities, excluding the effects of sale and acquisition of businesses: | |||
Accounts receivable | 6 | 8 | (50) |
Inventories | (86) | (127) | (102) |
Other current assets | 12 | (57) | (30) |
Accounts payable and accrued expenses | (17) | 29 | 64 |
Accrued income taxes | (11) | 7 | (58) |
Noncurrent assets and liabilities | 2 | (1) | 19 |
Cash provided by operating activities | 639 | 524 | 608 |
Cash flows from investing activities: | |||
Proceeds from sale of business | 0 | 543 | 0 |
Acquisition of business, net of cash acquired | (307) | 0 | 0 |
Additions to property, plant, and equipment | (112) | (108) | (120) |
Acquisition of brand names and trademarks | 0 | 0 | (4) |
Computer software expenditures | (3) | (2) | (1) |
Cash provided by (used for) investing activities | (422) | 433 | (125) |
Cash flows from financing activities: | |||
Net change in short-term borrowings | (122) | 80 | 183 |
Repayment of long-term debt | 0 | (250) | 0 |
Proceeds from long-term debt | 717 | 490 | 0 |
Debt issuance costs | (5) | (5) | 0 |
Net payments related to exercise of stock-based awards | (10) | (17) | (14) |
Excess tax benefits from stock-based awards | 0 | 15 | 18 |
Acquisition of treasury stock | (561) | (1,107) | (462) |
Dividends paid | (274) | (266) | (256) |
Repayment of short-term obligation associated with acquisition of business | (30) | 0 | 0 |
Cash used for financing activities | (285) | (1,060) | (531) |
Effect of exchange rate changes on cash and cash equivalents | (13) | (4) | (19) |
Net increase (decrease) in cash and cash equivalents | (81) | (107) | (67) |
Cash and cash equivalents, beginning of period | 263 | 370 | 437 |
Cash and cash equivalents, end of period | 182 | 263 | 370 |
Supplemental disclosure of cash paid for: | |||
Interest | 48 | 41 | 27 |
Income taxes | $ 266 | $ 430 | $ 375 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member]Common stock, Class A, voting [Member] | Common Stock [Member]Common Stock, Class B, nonvoting [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock, Common [Member] |
Beginning Balance at Apr. 30, 2014 | $ 2,032 | $ 13 | $ 21 | $ 81 | $ 2,894 | $ (188) | $ (789) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 684 | 684 | |||||
Net other comprehensive income (loss) | (112) | (112) | |||||
Cash dividends | (256) | (256) | |||||
Acquisition of treasury stock | (462) | (462) | |||||
Stock-based compensation expense | 15 | 15 | |||||
Stock issued under compensation plans | 23 | 23 | |||||
Loss on issuance of treasury stock issued under compensation plans | (37) | (15) | (22) | ||||
Excess tax benefits from stock-based awards | 18 | 18 | |||||
Ending Balance at Apr. 30, 2015 | 1,905 | 13 | 21 | 99 | 3,300 | (300) | (1,228) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 1,067 | 1,067 | |||||
Net other comprehensive income (loss) | (50) | (50) | |||||
Cash dividends | (266) | (266) | |||||
Acquisition of treasury stock | (1,107) | (1,107) | |||||
Stock-based compensation expense | 15 | 15 | |||||
Stock issued under compensation plans | 34 | 34 | |||||
Loss on issuance of treasury stock issued under compensation plans | (51) | (15) | (36) | ||||
Excess tax benefits from stock-based awards | 15 | 15 | |||||
Ending Balance at Apr. 30, 2016 | 1,562 | 13 | 21 | 114 | 4,065 | (350) | (2,301) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock split (Note 11) | 0 | 12 | 22 | (34) | |||
Net income | 669 | 669 | |||||
Net other comprehensive income (loss) | (40) | (40) | |||||
Cash dividends | (274) | (274) | |||||
Acquisition of treasury stock | (561) | (561) | |||||
Stock-based compensation expense | 14 | 14 | |||||
Stock issued under compensation plans | 19 | 19 | |||||
Loss on issuance of treasury stock issued under compensation plans | (29) | (29) | |||||
Ending Balance at Apr. 30, 2017 | $ 1,370 | $ 25 | $ 43 | $ 65 | $ 4,470 | $ (390) | $ (2,843) |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Statement of Stockholders' Equity [Abstract] | |||
Cash dividends (dollars per share) | $ 0.705 | $ 0.655 | $ 0.605 |
Accounting Policies
Accounting Policies | 12 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
ACCOUNTING POLICIES | ACCOUNTING POLICIES We prepare our consolidated financial statements in conformity with accounting principles generally accepted in the United States (GAAP). We also apply the following accounting policies when preparing our consolidated financial statements: Principles of consolidation. Our consolidated financial statements include the accounts of all subsidiaries in which we have a controlling financial interest. We eliminate all intercompany transactions. Estimates. To prepare financial statements that conform with GAAP, our management must make informed estimates that affect how we report revenues, expenses, assets, and liabilities, including contingent assets and liabilities. Actual results could differ from these estimates. Cash equivalents. Cash equivalents include bank demand deposits and all highly liquid investments with original maturities of three months or less. Allowance for doubtful accounts. We evaluate the collectability of accounts receivable based on a combination of factors. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off the uncollectable amount against the allowance when we have exhausted our collection efforts. Inventories. Inventories are valued at the lower of cost or market value. Approximately 54% of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories. We value the remainder of our inventories primarily using the first-in, first-out (FIFO) cost method. FIFO cost approximates current replacement cost. If we had used the FIFO method for all inventories, they would have been $248 and $272 higher than reported at April 30, 2016 and 2017 , respectively. Because we age most of our whiskeys in barrels for three to six years, we bottle and sell only a portion of our whiskey inventory each year. Following industry practice, we classify all barreled whiskey as a current asset. We include warehousing, insurance, ad valorem taxes, and other carrying charges applicable to barreled whiskey in inventory costs. We classify bulk wine, agave inventories, tequila, and liquid in bottling tanks as work in process. Property, plant, and equipment. We state property, plant, and equipment at cost less accumulated depreciation. We calculate depreciation on a straight-line basis using our estimates of useful life, which are 20 – 40 years for buildings and improvements; 3 – 10 years for machinery, equipment, vehicles, furniture, and fixtures; and 3 – 7 years for capitalized software. We assess our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. When we do not expect to recover the carrying value of an asset (or asset group) through undiscounted future cash flows, we write it down to its estimated fair value. We determine fair value using discounted estimated future cash flows, considering market values for similar assets when available. When we retire or dispose of property, plant, and equipment, we remove its cost and accumulated depreciation from our balance sheet and reflect any gain or loss in operating income. We expense the costs of repairing and maintaining our property, plant, and equipment as we incur them. Goodwill and other intangible assets. We have obtained most of our brands by acquiring other companies. When we acquire another company, we first allocate the purchase price to identifiable assets and liabilities, including intangible brand names and trademarks (“brand names”), based on estimated fair value. We then record any remaining purchase price as goodwill. We do not amortize goodwill or other intangible assets with indefinite lives. We consider all of our brand names to have indefinite lives. We assess our goodwill and other indefinite-lived intangible assets for impairment at least annually. If an asset’s fair value is less than its book value, we write it down to its estimated fair value. For goodwill, if the book value of the reporting unit exceeds its estimated fair value, we measure for potential impairment by comparing the implied fair value of the reporting unit’s goodwill, determined in the same manner as in a business combination, to the goodwill’s book value. We estimate the reporting unit’s fair value using discounted estimated future cash flows or market information. We typically estimate the fair value of a brand name using the either the “relief from royalty” or “excess earnings” method. We also consider market values for similar assets when available. Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about future cash flows, discount rates, and royalty rates. We have the option, before quantifying the fair value of a reporting unit or brand name, to evaluate qualitative factors to assess whether it is more likely than not that our goodwill or brand names are impaired. If we determine that is not the case, then we are not required to quantify the fair value. That assessment also takes considerable management judgment. Foreign currency transactions and translation. We report all gains and losses from foreign currency transactions (those denominated in a currency other than the entity’s functional currency) in current income. The U.S. dollar is the functional currency for most of our consolidated entities. The local currency is the functional currency for some of our consolidated foreign entities. We translate the financial statements of those foreign entities into U.S. dollars, using the exchange rate in effect at the balance sheet date to translate assets and liabilities, and using the average exchange rate for the reporting period to translate income and expenses. We record the resulting translation adjustments in other comprehensive income (loss). Revenue recognition. We recognize revenue when title and risk of loss pass to the customer, typically when the product is shipped. Some sales contracts contain customer acceptance provisions that grant a right of return on the basis of either subjective or objective criteria. We record revenue net of estimated sales returns, allowances, and discounts. Excise taxes. Our sales are often subject to excise taxes that we collect from our customers and remit to governmental authorities. Effective beginning May 1, 2016, we changed our presentation of excise taxes from the gross method (included in sales and costs) to the net method (excluded from sales). As a result, the amounts presented as “net sales” in our financial statements now exclude excise taxes. We believe the change in presentation to the net method is preferable because it is more representative of the internal financial information reviewed by management in assessing our performance and more consistent with the presentation used by our major competitors in their external financial statements. Prior period financial statements have been recast to conform to the new presentation. Cost of sales. Cost of sales includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods sold during the period. Shipping and handling fees and costs. We report the amounts we bill to our customers for shipping and handling as net sales, and we report the costs we incur for shipping and handling as cost of sales. Advertising costs. We expense the costs of advertising during the year when the advertisements first take place. Selling, general, and administrative expenses. Selling, general, and administrative expenses include the costs associated with our sales force, administrative staff and facilities, and other expenses related to our non-manufacturing functions. Income taxes. We base our annual provision for income taxes on the pre-tax income reflected in our consolidated statement of operations. We establish deferred tax liabilities or assets for temporary differences between GAAP and tax reporting bases and later adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance as necessary to reduce a deferred tax asset to the amount that we believe is more likely than not to be realized. We do not provide deferred income taxes on undistributed earnings of foreign subsidiaries that we expect to permanently reinvest. We record a deferred tax charge in prepaid taxes for the difference between GAAP and tax reporting bases with respect to the elimination of intercompany profit in ending inventory. We assess our uncertain income tax positions using a two-step process. First, we evaluate whether the tax position will more likely than not, based on its technical merits, be sustained upon examination, including resolution of any related appeals or litigation. For a tax position that does not meet this first criterion, we recognize no tax benefit. For a tax position that does meet the first criterion, we recognize a tax benefit in an amount equal to the largest amount of benefit that we believe has more than a 50% likelihood of being realized upon ultimate resolution. We record interest and penalties on uncertain tax positions as income tax expense. Recently-adopted accounting pronouncements. During fiscal 2017, we adopted new guidance related to certain aspects of the accounting for stock-based compensation, including the income tax consequences. Under the new guidance, we recognize all tax benefits related to stock-based compensation as an income tax benefit in our statement of operations, and include all income tax cash flows within operating activities in our statement of cash flows. Under the previous accounting guidance, we recognized some of those tax benefits (excess tax benefits) as additional paid-in capital and classified that amount as a financing activity in our statement of cash flows. We adopted these provisions of the new guidance on a prospective basis as of May 1, 2016. As a result, our net income and operating cash flows for fiscal 2017 include excess tax benefits of $9 . Prior period financial statements have not been adjusted. Also, under the new guidance, we recognize the excess tax benefits during the period in which the related awards vest or are exercised. Under the previous accounting guidance, we recognized those benefits during the period in which they reduced taxes payable. We adopted this provision of the new guidance on a modified retrospective basis with a cumulative-effect adjustment of $10 to retained earnings as of May 1, 2016. During fiscal 2017, we also adopted revised disclosure guidance related to investments measured at net asset value. Under the revised guidance, investments measured at net asset value as a practical expedient are no longer categorized in the fair value hierarchy. New accounting pronouncements to be adopted. In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard that, along with various amendments issued in 2015 and 2016, will replace substantially all existing revenue recognition guidance in U.S. GAAP. The core principle of the standard requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. The new standard also requires significantly more financial statement disclosures than existing revenue standards do. The new standard can be adopted using either of two transition options: a full retrospective transition method or a modified retrospective method. Under the full retrospective method, the guidance would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of initially applying the new guidance would be recorded as an adjustment to the opening balance of retained earnings for the annual reporting period that includes the date of initial application. We are continuing to assess the potential impact of the new guidance on our financial statements. Based on our assessment to date, we currently expect our accounting for certain customer incentives to be the area most likely affected by the new recognition requirements. We also expect to disclose additional information about revenues under the new standard. As we progress in our assessment, we are also identifying and preparing to make any changes to our accounting policies and practices, systems, processes, and controls that may be required to implement the new standard. We currently expect to choose the modified retrospective method in transitioning to the new standard, which we will adopt effective May 1, 2018. We are also currently evaluating the potential impact on our financial statements of the additional new accounting pronouncements described below: • In February 2016, the FASB issued a new standard on accounting for leases. Under the new standard, a lessee should recognize on the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard permits an entity to make an accounting policy election not to recognize lease assets and liabilities for leases with a term of 12 months or less. The standard, which also requires additional quantitative and qualitative disclosures about leasing arrangements, will become effective for us beginning fiscal 2020. It is to be applied using a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. • In August 2016, the FASB issued new guidance on the classification of certain cash receipts and cash payments on the statement of cash flows. The new guidance, which addresses eight specific cash flow classification issues, is intended to reduce diversity in practice. It will become effective for us beginning fiscal 2019 and is to be applied retrospectively. • In October 2016, the FASB issued revised guidance that requires the recognition of the income tax consequences (expense or benefit) of an intercompany transfer of assets other than inventory when the transfer occurs. It maintains the existing requirement to defer the recognition of the income tax consequences of an intercompany transfer of inventory until the inventory is sold to an outside party. The guidance will become effective for us beginning fiscal 2019 and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • In January 2017, the FASB issued updated guidance that eliminates the second step of the existing two-step quantitative test of goodwill for impairment. Under the new guidance, the quantitative test will consist of a single step in which the carrying amount of the reporting unit will be compared to its fair value. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the amount of the impairment would be limited to the total amount of goodwill allocated to the reporting unit. The guidance does not affect the existing option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. It will become effective for us beginning fiscal 2021 and is to be applied prospectively. • In March 2017, the FASB issued new guidance for the presentation of the net periodic cost (NPC) associated with pension and other postretirement benefit plans. The guidance requires the service cost component of the NPC to be reported in the income statement in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of the NPC are to be presented separately from the service cost and outside of income from operations. In addition, the guidance allows only the service cost component of NPC to be eligible for capitalization when applicable. The guidance will become effective for us beginning fiscal 2019. It is to be applied retrospectively for the presentation in the income statement and prospectively, on and after the effective date, for the capitalization of service cost. Early application of any of the new accounting pronouncements described above is permitted. Although we have not yet determined our plans for adoption, we do not currently expect to apply any of the new guidance before their effective dates. |
Balance Sheet Information
Balance Sheet Information | 12 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BALANCE SHEET INFORMATION | BALANCE SHEET INFORMATION Supplemental information on our year-end balance sheets is as follows: April 30, 2016 2017 Other current assets: Prepaid taxes $ 208 $ 210 Other 149 132 $ 357 $ 342 Property, plant, and equipment: Land $ 76 $ 81 Buildings 468 497 Equipment 619 659 Construction in process 54 96 1,217 1,333 Less accumulated depreciation 588 620 $ 629 $ 713 Accounts payable and accrued expenses: Accounts payable, trade $ 121 $ 137 Accrued expenses: Advertising and promotion 133 111 Compensation and commissions 105 97 Excise and other non-income taxes 58 61 Other 84 95 380 364 $ 501 $ 501 Other liabilities: Deferred benefit – tax (Note 13) $ 59 $ 43 Other 87 87 $ 146 $ 130 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The following table shows the changes in goodwill (which include no accumulated impairment losses) and other intangible assets over the past two years: Goodwill Other Intangible Assets Balance as of April 30, 2015 $ 607 $ 611 Sale of business (Note 16) (16 ) (22 ) Foreign currency translation adjustment (1 ) 6 Balance as of April 30, 2016 590 595 Acquisition of business (Note 17) 183 65 Foreign currency translation adjustment (20 ) (19 ) Balance as of April 30, 2017 $ 753 $ 641 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Apr. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Commitments. We made rental payments for real estate, vehicles, and office, computer, and manufacturing equipment under operating leases of $23 , $23 , and $23 during 2015 , 2016 , and 2017 , respectively. We have commitments related to minimum lease payments of $17 in 2018 , $13 in 2019 , $9 in 2020 , $5 in 2021 , $3 in 2022 , and $1 after 2022 . We have contracted with various growers and wineries to supply some of our future grape and bulk wine requirements. Many of these contracts call for prices to be adjusted annually up or down, according to market conditions. Some contracts set a fixed purchase price that might be higher or lower than prevailing market prices. We have total purchase obligations related to both types of contracts of $12 in 2018 , $9 in 2019 , $6 in 2020 , $4 in 2021 , $3 in 2022 , and $1 after 2022 . We also have contracts for the purchase of agave, which is used to produce tequila. These contracts provide for prices to be determined based on market conditions at the time of harvest, which, although not specified, is expected to occur over the next 10 years. As of April 30, 2017 , based on current market prices, obligations under these contracts total $4 . 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 existing 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 April 30, 2017 . Guaranty. 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 $25 (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. As of April 30, 2017 , our actual exposure under the guaranty of the importer’s obligation is approximately $6 . We also have accounts receivable from that importer of approximately $7 at that date, 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 and Credit Facilities
Debt and Credit Facilities | 12 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
DEBT AND CREDIT FACILITIES | DEBT AND CREDIT FACILITIES Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2016 2017 1.00% senior notes, $250 principal amount, due January 15, 2018 $ 249 $ 249 2.25% senior notes, $250 principal amount, due January 15, 2023 248 248 1.20% senior notes, €300 principal amount, due July 7, 2026 — 324 2.60% senior notes, £300 principal amount, due July 7, 2028 — 383 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 485 486 1,230 1,938 Less current portion — 249 $ 1,230 $ 1,689 Debt payments required over the next five fiscal years consist of $250 in 2018 , $0 in 2019 , $0 in 2020 , $0 in 2021 , $0 in 2022 , and $1,715 after 2022 . The senior notes contain terms and covenants customary of these types of unsecured securities, including limitations on the amount of secured debt we can issue. We issued senior, unsecured notes with an aggregate principal amount of €300 in July 2016. Interest on these notes will accrue at a rate of 1.20% and be paid annually. As of April 30, 2017, the carrying amount of these notes was $324 ( $327 principal, less unamortized discounts and issuance costs). These notes are due on July 7, 2026 . In addition, we issued senior, unsecured notes with an aggregate principal amount of £300 in July 2016. Interest on these notes will accrue at a rate of 2.60% and be paid annually. As of April 30, 2017, the carrying amount of these notes was $383 ( $389 principal, less unamortized discounts and issuance costs). These notes are due on July 7, 2028 . As of April 30, 2016 , our short-term borrowings of $271 included $269 of commercial paper, with an average interest rate of 0.53% , and an average remaining maturity of 26 days . As of April 30, 2017 , our short-term borrowings of $211 included $208 of commercial paper, with an average interest rate of 1.04% , and an average remaining maturity of 22 days . We have a committed revolving credit agreement with various U.S. and international banks for $800 that expires in November 2018. Its most restrictive quantitative covenant requires that the ratio of our consolidated EBITDA (as defined in the agreement) to consolidated interest expense not be less than 3 to 1. At April 30, 2017 , with a ratio of 18 to 1, we were well within this covenant’s parameters and had no borrowing outstanding under this facility. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Apr. 30, 2017 | |
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 inactive markets, or other inputs that are observable or can be derived from or corroborated by observable market data. • Level 3 – Unobservable inputs supported by little or no market activity. The following table summarizes the assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total April 30, 2016 Assets: Currency derivatives $ — $ 19 $ — $ 19 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 271 — 271 Long-term debt — 1,293 — 1,293 April 30, 2017 Assets: Currency derivatives — 25 — 25 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 211 — 211 Current portion of long-term debt — 249 — 249 Long-term debt — 1,752 — 1,752 We determine the fair values of our currency derivatives (forwards 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 spot 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 value. 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 | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair values of currency derivatives and long-term debt as discussed in Note 6. Below is a comparison of the fair values and carrying amounts of these instruments: 2016 2017 April 30, Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 263 $ 263 $ 182 $ 182 Currency derivatives 19 19 25 25 Liabilities: Currency derivatives 10 10 10 10 Short-term borrowings 271 271 211 211 Current portion of long-term debt — — 249 249 Long-term debt 1,230 1,293 1,689 1,752 |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 12 Months Ended |
Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES | DERIVATIVE FINANCIAL INSTRUMENTS AND HEDGING ACTIVITIES 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 had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts totaling $1,265 and $1,188 at April 30, 2016 and 2017 , respectively. During fiscal 2017, we used some currency derivative forward contracts and foreign currency-denominated long-term debt as after-tax net investment hedges of our investments in certain foreign subsidiaries. Any change in value of the designated portion of the hedging instruments is recorded in AOCI, offsetting the foreign currency translation adjustment of the related net investments that is also recorded in AOCI. As of April 30, 2017, $511 of our foreign currency-denominated debt was designated as a net investment hedge. Our net investment hedges are intended to mitigate foreign exchange exposure related to non-U.S. dollar net investments in certain foreign subsidiaries against changes in foreign exchange rates. There was no ineffectiveness related to our net investment hedges. We do not designate some of our currency derivatives and foreign currency-denominated debt 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 instruments in earnings.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 as 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 in June 2015 of an aggregate principal amount of $500 of the 4.50% notes, due July 15, 2045 , we settled the contracts for a gain of $8 . 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 and non-derivative hedging instruments had on AOCI and earnings in 2016 and 2017 : Classification in Statement of Operations 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 22 $ 41 Net gain (loss) reclassified from AOCI into earnings Net sales 60 40 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a 8 — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 8 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Net sales 1 2 Net gain (loss) recognized in earnings Other income (5 ) (5 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 2 Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in earnings Other income — 3 We expect to reclassify $12 of deferred net gains on cash flow hedges recorded in AOCI as of April 30, 2017 , to earnings during fiscal 2018 . 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. The maximum term of outstanding derivative contracts was 36 months at both April 30, 2016 and 2017 . The following table presents the fair values of our derivative instruments as of April 30, 2016 and 2017 : Balance Sheet Classification Fair Value of Derivatives in a Gain Position Fair Value of Derivatives in a Loss Position April 30, 2016 Designated as cash flow hedges: Currency derivatives Other current assets $ 23 $ (2 ) Currency derivatives Other assets 3 (2 ) Currency derivatives Accrued expenses 4 (8 ) Currency derivatives Other liabilities 3 (9 ) Not designated as hedges: Currency derivatives Other current assets 1 (4 ) April 30, 2017 Designated as cash flow hedges: Currency derivatives Other current assets 21 (2 ) Currency derivatives Other assets 9 (4 ) Currency derivatives Accrued expenses 2 (8 ) Currency derivatives Other liabilities 1 (4 ) Not designated as hedges: Currency derivatives Other current assets 2 (1 ) Currency derivatives Accrued expenses — (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 subject to net settlement agreements are presented on a net basis in the accompanying consolidated balance sheets. 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 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 $8 and $9 at April 30, 2016 and 2017 , respectively. 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 (that is, 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: 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, 2016 Derivative assets $ 34 $ (15 ) $ 19 $ (6 ) $ 13 Derivative liabilities (25 ) 15 (10 ) 6 (4 ) April 30, 2017 Derivative assets 35 (10 ) 25 (1 ) 24 Derivative liabilities (20 ) 10 (10 ) 1 (9 ) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2016 or 2017 . |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 12 Months Ended |
Apr. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
PENSION AND OTHER POSTRETIREMENT BENEFITS | PENSION AND OTHER POSTRETIREMENT BENEFITS We sponsor various defined benefit pension plans as well as postretirement plans providing retiree health care and retiree life insurance benefits. Below, we discuss our obligations related to these plans, the assets dedicated to meeting the obligations, and the amounts we recognized in our financial statements as a result of sponsoring these plans. Obligations. We provide eligible employees with pension and other postretirement benefits based on factors such as years of service and compensation level during employment. The pension obligation shown below (“projected benefit obligation”) consists of: (a) benefits earned by employees to date based on current salary levels (“accumulated benefit obligation”); and (b) benefits to be received by employees as a result of expected future salary increases. (The obligation for medical and life insurance benefits is not affected by future salary increases.) The following table shows how the present value of our obligation changed during each of the last two years. Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Obligation at beginning of year $ 887 $ 898 $ 57 $ 56 Service cost 26 26 1 1 Interest cost 35 35 2 2 Net actuarial loss (gain) 8 (14 ) (1 ) — Plan amendments — 1 — (4 ) Retiree contributions — — 1 1 Benefits paid (58 ) (53 ) (4 ) (4 ) Obligation at end of year $ 898 $ 893 $ 56 $ 52 Service cost represents the present value of the benefits attributed to service rendered by employees during the year. Interest cost is the increase in the present value of the obligation due to the passage of time. Net actuarial loss (gain) is the change in value of the obligation resulting from experience different from that assumed or from a change in an actuarial assumption. (We discuss actuarial assumptions used at the end of this note.) Plan amendments may also change the value of the obligation. As shown in the previous table, the change in the value of our pension and other postretirement benefit obligations also includes the effect of benefit payments and retiree contributions. Expected benefit payments (net of retiree contributions) over the next 10 years are as follows: Pension Benefits Medical and Life Insurance Benefits 2018 $ 52 $ 3 2019 53 3 2020 54 3 2021 55 3 2022 58 3 2023 – 2027 309 16 Assets. We invest in specific assets to fund our pension benefit obligations. Our investment goal is to earn a total return that, over time, will grow assets sufficiently to fund our plans’ liabilities, after providing appropriate levels of contributions and accepting prudent levels of investment risk. To achieve this goal, plan assets are invested primarily in funds or portfolios of funds managed by outside managers. Investment risk is managed by company policies that require diversification of asset classes, manager styles, and individual holdings. We measure and monitor investment risk through quarterly and annual performance reviews, and through periodic asset/liability studies. Asset allocation is the most important method for achieving our investment goals and is based on our assessment of the plans’ long-term return objectives and the appropriate balances needed for liquidity, stability, and diversification. As of April 30, 2017, our target asset allocation is a mix of 46% public equity investments, 33% fixed income investments, 20% alternative investments, and 1% cash equivalents. The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 6.) Level 1 Level 2 Level 3 Total April 30, 2016 Equity securities $ 78 $ — $ — $ 78 Limited partnership interests 1 — — 29 29 $ 78 $ — $ 29 107 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 197 Fixed income funds 197 Real estate funds 59 Short-term investments 4 Hedge funds 3 30 Total $ 594 April 30, 2017 Equity securities $ 78 $ — $ — $ 78 Limited partnership interests 1 — — 32 32 $ 78 $ — $ 32 110 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 206 Fixed income funds 229 Real estate funds 63 Short-term investments 7 Hedge funds 3 8 Total $ 623 1 Limited partnership interests are valued at the percentage ownership of total partnership equity as determined by the general partner. These valuations require significant judgment due to the absence of quoted market prices, the inherent lack of liquidity, and the long-term nature of these investments. 2 Commingled trust fund valuations are based on the net asset value (NAV) of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. 3 Hedge fund valuations are based primarily on the NAV of the funds as determined by fund administrators and reviewed by us. During our review, we determine whether it is necessary to adjust a valuation for inherent liquidity and redemption issues that may exist within a fund’s underlying assets or fund unit values. The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels. Level 3 Balance as of April 30, 2015 $ 26 Return on assets held at end of year 1 Purchases and settlements 5 Sales and settlements (3 ) Balance as of April 30, 2016 29 Return on assets held at end of year 1 Purchases and settlements 5 Sales and settlements (3 ) Balance as of April 30, 2017 $ 32 The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Assets at beginning of year $ 626 $ 594 $ — $ — Actual return on assets 2 51 — — Retiree contributions — — 1 1 Company contributions 24 31 3 3 Benefits paid (58 ) (53 ) (4 ) (4 ) Assets at end of year $ 594 $ 623 $ — $ — We currently expect to contribute $35 to our pension plans and $3 to our postretirement medical and life insurance benefit plans during 2018 . Funded status. The funded status of a plan refers to the difference between its assets and its obligations. The following table shows the funded status of our plans. Pension Benefits Medical and Life Insurance Benefits April 30, 2016 2017 2016 2017 Assets $ 594 $ 623 $ — $ — Obligations (898 ) (893 ) (56 ) (52 ) Funded status $ (304 ) $ (270 ) $ (56 ) $ (52 ) The funded status reflected above includes obligations attributable to our non-qualified Supplemental Executive Retirement Plan that is not funded with those plan assets presented above. However, we have set aside investments in corporate-owned life insurance policies to cover these obligations. The value of those investments, which are included in “other assets” on the accompanying balance sheets, is $64 and $81 as of April 30, 2016 and 2017 , respectively. The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life Insurance Benefits April 30, 2016 2017 2016 2017 Accounts payable and accrued expenses (4 ) (5 ) (3 ) (3 ) Accrued postretirement benefits (300 ) (265 ) (53 ) (49 ) Net liability $ (304 ) $ (270 ) $ (56 ) $ (52 ) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (372 ) $ (322 ) $ (13 ) $ (13 ) Prior service credit (cost) (4 ) (4 ) 15 17 $ (376 ) $ (326 ) $ 2 $ 4 The following table compares our pension plans whose assets exceed their accumulated benefit obligations with those whose obligations exceed their assets. (As discussed above, we have no assets set aside for postretirement medical or life insurance benefits.) Plan Assets Accumulated Benefit Obligation Projected Benefit Obligation April 30, 2016 2017 2016 2017 2016 2017 Plans with assets in excess of accumulated benefit obligation $ — $ 48 $ — $ 47 $ — $ 48 Plans with accumulated benefit obligation in excess of assets 594 575 776 729 898 845 Total $ 594 $ 623 $ 776 $ 776 $ 898 $ 893 Pension expense. The following table shows the components of the pension expense recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. Pension Benefits 2015 2016 2017 Service cost $ 22 $ 26 $ 26 Interest cost 34 35 35 Expected return on assets (41 ) (40 ) (41 ) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 22 27 25 Settlement loss — — 1 Net expense $ 38 $ 49 $ 47 The prior service cost/credit, which represents the effect of plan amendments on benefit obligations, is amortized on a straight-line basis over the average remaining service period of the employees expected to receive the benefits. The net actuarial loss/gain results from experience different from that assumed or from a change in actuarial assumptions (including the difference between actual and expected return on plan assets), and is amortized over at least that same period. The estimated amount of prior service cost and net actuarial loss that will be amortized from accumulated other comprehensive loss into pension expense in 2018 is $1 and $21 , respectively. Other postretirement benefit expense. The following table shows the components of the postretirement medical and life insurance benefit expense that we recognized during each of the last three years. Medical and Life Insurance Benefits 2015 2016 2017 Service cost $ 1 $ 1 $ 1 Interest cost 3 2 2 Amortization of: Prior service cost (credit) (2 ) (2 ) (3 ) Net actuarial loss (gain) 1 1 1 Net expense $ 3 $ 2 $ 1 The estimated amount of prior service credit and net actuarial loss that will be amortized from accumulated other comprehensive loss into postretirement medical and life insurance benefit expense in 2018 is $3 and $1 , respectively. Other comprehensive income (loss). Prior service cost/credit and net actuarial loss/gain are recognized in other comprehensive income or loss (OCI) during the period in which they arise. These amounts are later amortized from accumulated OCI into pension and other postretirement benefit expense over future periods as described above. The following table shows the pre-tax effect of these amounts on OCI during each of the last three years. Pension Benefits Medical and Life Insurance Benefits 2015 2016 2017 2015 2016 2017 Prior service credit (cost) $ — $ — $ (1 ) $ 16 $ — $ 4 Net actuarial gain (loss) (80 ) (46 ) 24 (3 ) 1 — Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (2 ) (2 ) (3 ) Net actuarial loss (gain) 22 27 26 1 1 1 Net amount recognized in OCI $ (57 ) $ (18 ) $ 50 $ 12 $ — $ 2 Assumptions and sensitivity. We use various assumptions to determine the obligations and expense related to our pension and other postretirement benefit plans. The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows: Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Discount rate 4.02 % 4.09 % 3.96 % 4.04 % Rate of salary increase 4.00 % 4.00 % n/a n/a The weighted-average assumptions used in computing benefit plan expense during each of the last three years were as follows: Pension Benefits Medical and Life Insurance Benefits 2015 2016 2017 2015 2016 2017 Discount rate 4.46 % 4.09 % 4.02 % 4.67 % 4.09 % 3.96 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Expected return on plan assets 7.50 % 7.00 % 7.00 % n/a n/a n/a The discount rate represents the interest rate used to discount the cash-flow stream of benefit payments to a net present value as of the calculation date. A lower assumed discount rate increases the present value of the benefit obligation. We determined the discount rate using a yield curve based on the interest rates of high-quality debt securities with maturities corresponding to the expected timing of our benefit payments. The assumed rate of salary increase reflects the expected average annual increase in salaries as a result of inflation, merit increases, and promotions over the service period of the plan participants. A lower assumed rate decreases the present value of the benefit obligation. The expected return on plan assets represents the long-term rate of return that we assume will be earned over the life of the pension assets. The assumption reflects expected capital market returns for each asset class, which are based on historical returns, adjusted for the expected effects of diversification and active management (net of fees). The assumed health care cost trend rates as of the end of the last two years were as follows: Medical and Life Insurance Benefits 2016 2017 Health care cost trend rate assumed for next year 7.25 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2024 2025 A one percentage point change in the assumed health care cost trend rate would not have significantly changed the accumulated postretirement benefit obligation as of April 30, 2017 , or the aggregate service and interest costs for 2017 . Savings plans. We also sponsor various defined contribution benefit plans that together cover substantially all U.S. employees. Employees can make voluntary contributions in accordance with their respective plans, which include a 401(k) tax deferral option. We match a percentage of each employee’s contributions in accordance with plan terms. We expensed $10 , $11 , and $11 for matching contributions during 2015 , 2016 , and 2017 , respectively. International plans. The information presented above for defined benefit plans and defined contribution benefit plans reflects amounts for U.S. plans only. Information about similar international plans is not presented due to immateriality. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION The Brown-Forman 2013 Omnibus Compensation Plan is our incentive compensation plan, which is designed to reward its participants (including our eligible officers, employees, and non-employee directors) for company performance. Under the Plan, we can grant stock-based incentive awards for up to 16,600,000 shares of common stock to eligible participants until July 28, 2023. As of April 30, 2017 , awards for approximately 12,710,000 shares remain available for issuance under the Plan. We try to limit the source of shares delivered to participants under the Plan to treasury shares that we purchase from time to time on the open market (at times in connection with a publicly announced share repurchase program), in private transactions, or otherwise. The following table presents information about stock options and stock-settled stock appreciation rights (SSARs) granted under the Plan (or its predecessor plans) as of April 30, 2017 , and for the year then ended. Number of Underlying Shares (in thousands) Weighted Average Exercise Price per Award Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at April 30, 2016 6,852 $ 28.42 Granted 779 49.01 Exercised (1,005 ) 19.49 Forfeited or expired (11 ) 46.79 Outstanding at April 30, 2017 6,615 $ 32.17 5.0 $ 104 Exercisable at April 30, 2017 4,390 $ 23.75 3.6 $ 103 The total intrinsic value of options and SSARs exercised during 2015 , 2016 , and 2017 was $35 , $47 , and $28 , respectively. We grant stock options and SSARs at an exercise price equal to the market price of the underlying stock on the grant date. Stock options and SSARs become exercisable after three years from the first day of the fiscal year of grant and expire seven years after that date. The grant-date fair values of these awards granted during 2015 , 2016 , and 2017 were $9.84 , $9.53 , and $7.16 per award, respectively. We estimated the fair values using the Black-Scholes pricing model with the following assumptions: 2015 2016 2017 Risk-free interest rate 2.2 % 2.1 % 1.4 % Expected volatility 22.3 % 19.1 % 16.3 % Expected dividend yield 1.7 % 1.6 % 1.6 % Expected term (years) 6.75 6.75 7.00 We have also granted restricted stock units (RSUs), deferred stock units (DSUs), and shares of performance-based restricted stock (PBRS) under the Plan (or its predecessor plans). Approximately 492,000 shares underlying these awards, with a weighted-average remaining vesting period of 1.2 years, were nonvested at April 30, 2017 . The following table summarizes the changes in the number of shares underlying these awards during 2017 . Number of Underlying Shares (in thousands) Weighted Average Fair Value at Grant Date Nonvested at April 30, 2016 547 $ 42.61 Granted 134 48.44 Adjusted for dividends or performance (31 ) 47.45 Vested (153 ) 36.71 Forfeited (5 ) 44.27 Nonvested at April 30, 2017 492 $ 45.71 For PBRS awards, performance is measured based on the relative ranking of the total shareholder return of our Class B common stock during the three-year performance period compared to that of the companies within the Standard & Poor’s Consumer Staples Index at the end of the performance period, with specific payout levels ranging from 50% to 150%. The total fair value of RSUs, PBRS awards, and DSUs vested during 2015 , 2016 , and 2017 was $11 , $10 , and $8 , respectively. The accompanying consolidated statements of operations reflect compensation expense related to stock-based incentive awards on a pre-tax basis of $15 in 2015 , $15 in 2016 , and $14 in 2017 , partially offset by deferred income tax benefits of $6 in 2015 , $6 in 2016 , and $5 in 2017 . As of April 30, 2017 , there was $10 of total unrecognized compensation cost related to non-vested stock-based compensation. That cost is expected to be recognized over a weighted-average period of 1.4 years. |
Common Stock
Common Stock | 12 Months Ended |
Apr. 30, 2017 | |
Common Stock [Abstract] | |
COMMON STOCK | COMMON STOCK The following table shows the change in outstanding common shares during each of the last three years: (Shares in thousands) Class A Class B Total Balance at April 30, 2014 168,924 257,986 426,910 Acquisition of treasury stock (171 ) (10,069 ) (10,240 ) Stock issued under compensation plans 173 557 730 Balance at April 30, 2015 168,926 248,474 417,400 Acquisition of treasury stock (114 ) (22,714 ) (22,828 ) Stock issued under compensation plans 248 664 912 Balance at April 30, 2016 169,060 226,424 395,484 Acquisition of treasury stock (77 ) (11,799 ) (11,876 ) Stock issued under compensation plans 68 410 478 Balance at April 30, 2017 169,051 215,035 384,086 Stock split. On May 26, 2016, our Board of Directors approved a two-for-one stock split for our Class A and Class B common stock, subject to stockholder approval of an amendment to our Restated Certificate of Incorporation. The amendment, which was approved by stockholders on July 28, 2016, increased the number of authorized shares of Class A common stock from 85,000,000 to 170,000,000 . The amendment did not change the number of authorized Class B common shares, which remains at 400,000,000 . The stock split, which was effected as a stock dividend, resulted in the issuance of one new share of Class A common stock for each share of Class A common stock outstanding and one new share of Class B common stock for each share of Class B common stock outstanding. The stock split was also applied to our treasury shares. Thus, the stock split increased the number of Class A shares issued from 85,000,000 to 170,000,000 , and increased the number of Class B shares issued from 142,313,000 to 284,626,000 . The new shares were distributed on August 18, 2016, to shareholders of record as of August 8, 2016. As a result of the stock split, we reclassified approximately $34 from additional paid-in capital to common stock during fiscal 2017. The $34 represents the $0.15 par value per share of the new shares issued in the stock split. All share and per share amounts reported in these financial statements and related notes are presented on a split-adjusted basis. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Apr. 30, 2017 | |
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. 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: 2015 2016 2017 Net income available to common stockholders $ 684 $ 1,067 $ 669 Share data (in thousands): Basic average common shares outstanding 423,185 405,953 387,708 Dilutive effect of stock-based awards 2,980 2,607 2,753 Diluted average common shares outstanding 426,165 408,560 390,461 Basic earnings per share $ 1.62 $ 2.63 $ 1.72 Diluted earnings per share $ 1.60 $ 2.61 $ 1.71 We excluded common stock-based awards for approximately 723,000 shares, 905,000 shares, and 1,716,000 shares from the calculation of diluted earnings per share for 2015 , 2016 , and 2017 , respectively, because they were not dilutive for those periods under the treasury stock method. |
Income Taxes
Income Taxes | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We incur income taxes on the earnings of our U.S. and foreign operations. The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes: 2015 2016 2017 United States $ 912 $ 1,184 $ 806 Foreign 90 305 127 $ 1,002 $ 1,489 $ 933 The income shown above was determined according to GAAP. Because those standards sometimes differ from the tax rules used to calculate taxable income, there are differences between: (a) the amount of taxable income and pretax financial income for a year; and (b) the tax bases of assets or liabilities and their amounts as recorded in our financial statements. As a result, we recognize a current tax liability for the estimated income tax payable on the current tax return, and deferred tax liabilities (income tax payable on income that will be recognized on future tax returns) and deferred tax assets (income tax refunds from deductions that will be recognized on future tax returns) for the estimated effects of the differences mentioned above. Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2016 2017 Deferred tax assets: Postretirement and other benefits $ 183 $ 173 Accrued liabilities and other 10 17 Inventories 26 27 Loss and credit carryforwards 39 44 Valuation allowance (25 ) (30 ) Total deferred tax assets, net 233 231 Deferred tax liabilities: Intangible assets (225 ) (262 ) Property, plant, and equipment (83 ) (90 ) Other (9 ) (15 ) Total deferred tax liabilities (317 ) (367 ) Net deferred tax liability $ (84 ) $ (136 ) As of April 30, 2017, the gross amounts of loss carryforwards include a $49 net operating loss in Brazil (no expiration); a U.K. non-trading loss of $27 (no expiration); a $65 net operating loss in Finland (expires in varying amounts between 2024 and 2027); and other foreign and domestic net operating, capital, and non-trading losses of $43 ( $14 that do not expire and $29 that expire in varying amounts between 2018 and 2028). The $30 valuation allowance at April 30, 2017 ( $25 at April 30, 2016), relates primarily to a $17 ( $12 at April 30, 2016) net operating loss in Brazil. Although the losses in Brazil can be carried forward indefinitely, it is uncertain that we will realize sufficient taxable income to allow us to use these losses. The valuation allowance also includes $8 ( $7 at April 30, 2016) related to other foreign net operating and non-trading losses, $2 that do not expire and $6 that expire between 2018 and 2028. The remaining valuation allowance relates to a $5 ( $6 at April 30, 2016) non-trading loss carryforward in the United Kingdom that was generated during 2009. Although the non-trading losses can be carried forward indefinitely, we know of no significant transactions that will let us use them. During 2014, we deferred a tax benefit of $95 that resulted primarily from the release of certain deferred tax liabilities in connection with an intercompany transfer of assets, composed primarily of an intangible asset. We are amortizing the deferred benefit to tax expense over approximately six years for financial reporting purposes, in accordance with Accounting Standard Codification (ASC) 740-10-25-3(e) (Income Taxes) and ASC 810-45-8 (Consolidation), resulting in a tax benefit of $5 in 2014, $15 in 2015, $16 in 2016, and $16 in 2017. The remaining balance of the deferred benefit, which is included in “other liabilities” on the accompanying balance sheet, was $43 as of April 30, 2017. As discussed in Note 1, revised accounting guidance issued in October 2016 will require the recognition of income tax consequences of intercompany transfers of assets other than inventory when the transfer occurs. Our adoption of this revised guidance will result in the balance of the deferred tax benefit as of the beginning of fiscal 2019 ( $27 ) being recognized as an increase in retained earnings rather than as a reduction in income tax expense. Deferred tax liabilities were not provided on undistributed earnings of foreign subsidiaries ( $1,005 and $1,053 at April 30, 2016 and 2017, respectively) because we expect these undistributed earnings to be reinvested indefinitely outside the United States. If these amounts were not considered permanently reinvested, additional deferred tax liabilities of approximately $222 would have been provided at both April 30, 2016 and 2017. Total income tax expense for a year includes the tax associated with the current tax return (“current tax expense”) and the change in the net deferred tax asset or liability (“deferred tax expense”). Our total income tax expense for each of the last three years was as follows: 2015 2016 2017 Current: U.S. federal $ 259 $ 347 $ 226 Foreign 42 47 40 State and local 11 18 8 312 412 274 Deferred: U.S. federal $ 15 $ 24 $ (1 ) Foreign (11 ) (17 ) (9 ) State and local 2 3 — 6 10 (10 ) $ 318 $ 422 $ 264 Our consolidated effective tax rate usually differs from current statutory rates due to the recognition of amounts for events or transactions with no tax consequences. The following table reconciles our effective tax rate to the federal statutory tax rate in the United States: Percent of Income Before Taxes 2015 2016 2017 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of U.S. federal tax benefit 1.0 % 1.0 % 0.9 % Income taxed at other than U.S. federal statutory rate (0.5 %) (2.5 %) (1.7 %) Tax benefit from U.S. manufacturing (2.5 %) (2.4 %) (2.4 %) Tax impact of sale of business — % (1.1 %) — % Amortization of deferred tax benefit from intercompany transactions (1.6 %) (1.6 %) (1.7 %) Excess tax benefits from stock-based awards — % — % (1.0 %) Other, net 0.3 % (0.1 %) (0.8 %) Effective rate 31.7 % 28.3 % 28.3 % At April 30, 2017, we had $9 of gross unrecognized tax benefits, $6 of which would reduce our effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits follows: 2015 2016 2017 Unrecognized tax benefits at beginning of year $ 11 $ 13 $ 9 Additions for tax positions provided in prior periods 2 1 2 Additions for tax positions provided in current period 1 — — Decreases for tax positions provided in prior years (1 ) (4 ) (2 ) Settlements of tax positions in the current period — (1 ) — Unrecognized tax benefits at end of year $ 13 $ 9 $ 9 We file income tax returns in the United States, including several state and local jurisdictions, as well as in several other countries in which we conduct business. The major jurisdictions and their earliest fiscal years that are currently open for tax examinations are 2011 for one state in the United States; 2015 in the United Kingdom; 2013 in Australia; 2012 in the Netherlands, Finland, and Mexico; and 2011 in Brazil, Germany, and Poland. The audit of our fiscal 2015 U.S. federal tax return was concluded in the first quarter of fiscal 2017. In addition, we are participating in the Internal Revenue Service’s Compliance Assurance Program for our fiscal 2017 tax year. We believe there will be no material change in our gross unrecognized tax benefits in the next 12 months. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Apr. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME The following table summarizes the change in each component of AOCI, net of tax, during 2017 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2016 $ (131 ) $ 11 $ (230 ) $ (350 ) Net other comprehensive income (loss) (73 ) — 33 (40 ) Balance at April 30, 2017 $ (204 ) $ 11 $ (197 ) $ (390 ) The following table presents the components of net other comprehensive income (loss) during each of the last three years: Pre-Tax Tax Net Year Ended April 30, 2015 Currency translation adjustments: Net gain (loss) on currency translation $ (120 ) $ 6 $ (114 ) Reclassification to earnings — — — Other comprehensive income (loss), net (120 ) 6 (114 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 96 (40 ) 56 Reclassification to earnings 1 (41 ) 17 (24 ) Other comprehensive income (loss), net 55 (23 ) 32 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (70 ) 26 (44 ) Reclassification to earnings 2 22 (8 ) 14 Other comprehensive income (loss), net (48 ) 18 (30 ) Total other comprehensive income (loss), net $ (113 ) $ 1 $ (112 ) Year Ended April 30, 2016 Currency translation adjustments: Net gain (loss) on currency translation $ (22 ) $ (1 ) $ (23 ) Reclassification to earnings — — — Other comprehensive income (loss), net (22 ) (1 ) (23 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 30 (10 ) 20 Reclassification to earnings 1 (60 ) 23 (37 ) Other comprehensive income (loss), net (30 ) 13 (17 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (47 ) 19 (28 ) Reclassification to earnings 2 30 (12 ) 18 Other comprehensive income (loss), net (17 ) 7 (10 ) Total other comprehensive income (loss), net $ (69 ) $ 19 $ (50 ) Pre-Tax Tax Net Year Ended April 30, 2017 Currency translation adjustments: Net gain (loss) on currency translation $ (71 ) $ (4 ) $ (75 ) Reclassification to earnings 3 (1 ) 2 Other comprehensive income (loss), net (68 ) (5 ) (73 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 41 (17 ) 24 Reclassification to earnings 1 (40 ) 16 (24 ) Other comprehensive income (loss), net 1 (1 ) — Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 28 (10 ) 18 Reclassification to earnings 2 25 (10 ) 15 Other comprehensive income (loss), net 53 (20 ) 33 Total other comprehensive income (loss), net $ (14 ) $ (26 ) $ (40 ) 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 9, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 9 due to immateriality). |
Supplemental Information
Supplemental Information | 12 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION The following table presents net sales by product category: 2015 2016 2017 Net sales: Spirits $ 2,955 $ 2,901 $ 2,805 Wine 179 188 189 $ 3,134 $ 3,089 $ 2,994 The following table presents net sales by geography: 2015 2016 2017 Net sales: United States $ 1,445 $ 1,491 $ 1,444 Europe 847 834 770 Australia 175 153 151 Other 667 611 629 $ 3,134 $ 3,089 $ 2,994 Net sales are attributed to countries based on where customers are located. The net book value of property, plant, and equipment located outside the United States was $59 and $96 as of April 30, 2016 and 2017 , respectively. Other long-lived assets located outside the United States are not significant. We have concluded that our business constitutes a single operating segment. |
Gain on Sale of Business
Gain on Sale of Business | 12 Months Ended |
Apr. 30, 2017 | |
Gain on Sale of Business [Abstract] | |
GAIN ON SALE OF BUSINESS | GAIN ON SALE OF BUSINESS On March 1, 2016, we sold our Southern Comfort and Tuaca brands to Sazerac Company, Inc. for $543 in cash. The total book value of the related business assets included in the sale was $49 , and consisted of $11 in inventories, $16 in goodwill, and $22 in other intangible assets. As a result of the sale, we recognized a gain of $485 (net of transaction costs of $9 ) during the fourth quarter of fiscal 2016. |
Acquisition of Business
Acquisition of Business | 12 Months Ended |
Apr. 30, 2017 | |
Acquisition of Business [Abstract] | |
ACQUISITION OF BUSINESS | ACQUISITION OF BUSINESS On June 1, 2016, we acquired The BenRiach Distillery Company Limited (BenRiach) for aggregate consideration of $407 , consisting of a purchase price of $341 and $66 in assumed debt and transaction-related obligations that we have since paid. The acquisition, which brought three single malt Scotch whisky brands into our portfolio, included brand trademarks, inventories, three malt distilleries, a bottling plant, and BenRiach’s headquarters in Edinburgh, Scotland. The purchase price of $341 included cash of $307 paid at the acquisition date for 90% of the voting interests in BenRiach and a liability of $34 related to a put and call option agreement for the remaining 10% equity shares. Under that agreement, we could choose (or be required) to purchase the remaining 10% for £24 ( $34 at the exchange rate on June 1, 2016) during the one-year period ending November 14, 2017. The purchase price of $341 was allocated based on management’s estimates and independent appraisals as follows: June 1, Accounts receivable $ 11 Inventories 158 Other current assets 1 Property, plant, and equipment 19 Goodwill 183 Trademarks and brand names 65 Total assets 437 Accounts payable and accrued expenses 12 Short-term borrowings 59 Deferred tax liabilities 25 Total liabilities 96 Net assets acquired $ 341 Goodwill is calculated as the excess of the purchase price over the fair value of the net identifiable assets acquired. The goodwill resulting from this acquisition is primarily attributable to: (a) the value of leveraging our distribution network and brand-building expertise to grow global sales of the existing single malt Scotch whisky brands acquired, (b) the valuable opportunity to develop new products and line extensions in the especially attractive premium Scotch whisky category, and (c) the accumulated knowledge and expertise of the organized workforce employed by the acquired business. None of the goodwill amount of $183 is expected to be deductible for tax purposes. BenRiach’s results of operations, which have been included in our financial statements since the acquisition date, were not material for fiscal 2017. Pro forma results are not presented due to immateriality. On November 17, 2016, we purchased the remaining 10% interest in BenRiach for cash of £24 ( $30 at the exchange rate on that date) by exercising the call option described above. That cash payment is classified as a financing activity in the accompanying statement of cash flows. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Apr. 30, 2017 | |
Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II – VALUATION AND QUALIFYING ACCOUNTS For the Years Ended April 30, 2015 , 2016 , and 2017 (Expressed in millions) Col. A Col. B Col. C(1) Col. C(2) Col. D Col. E Description Balance at Beginning of Period Additions Charged to Costs and Expenses Additions Charged to Other Accounts Deductions Balance at End of Period 2015 Allowance for doubtful accounts $ 9 $ 2 $ — $ 1 $ 10 Deferred tax valuation allowance $ 34 $ 2 $ — $ 9 $ 27 2016 Allowance for doubtful accounts $ 10 $ 1 $ — $ 2 (1) $ 9 Deferred tax valuation allowance $ 27 $ 3 $ — $ 5 $ 25 2017 Allowance for doubtful accounts $ 9 $ — $ — $ 2 (1) $ 7 Deferred tax valuation allowance $ 25 $ 5 $ 2 $ 2 $ 30 (1) Doubtful accounts written off, net of recoveries. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Apr. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of consolidation | Principles of consolidation. Our consolidated financial statements include the accounts of all subsidiaries in which we have a controlling financial interest. We eliminate all intercompany transactions. |
Estimates | Estimates. To prepare financial statements that conform with GAAP, our management must make informed estimates that affect how we report revenues, expenses, assets, and liabilities, including contingent assets and liabilities. Actual results could differ from these estimates. |
Cash equivalents | Cash equivalents. Cash equivalents include bank demand deposits and all highly liquid investments with original maturities of three months or less. |
Allowance for doubtful accounts | Allowance for doubtful accounts. We evaluate the collectability of accounts receivable based on a combination of factors. When we are aware of circumstances that may impair a specific customer’s ability to meet its financial obligations, we record a specific allowance to reduce the net recognized receivable to the amount we believe will be collected. We write off the uncollectable amount against the allowance when we have exhausted our collection efforts. |
Inventories | Inventories. Inventories are valued at the lower of cost or market value. Approximately 54% of our consolidated inventories are valued using the last-in, first-out (LIFO) cost method, which we use for the majority of our U.S. inventories. We value the remainder of our inventories primarily using the first-in, first-out (FIFO) cost method. FIFO cost approximates current replacement cost. If we had used the FIFO method for all inventories, they would have been $248 and $272 higher than reported at April 30, 2016 and 2017 , respectively. Because we age most of our whiskeys in barrels for three to six years, we bottle and sell only a portion of our whiskey inventory each year. Following industry practice, we classify all barreled whiskey as a current asset. We include warehousing, insurance, ad valorem taxes, and other carrying charges applicable to barreled whiskey in inventory costs. We classify bulk wine, agave inventories, tequila, and liquid in bottling tanks as work in process. |
Property, plant, and equipment | Property, plant, and equipment. We state property, plant, and equipment at cost less accumulated depreciation. We calculate depreciation on a straight-line basis using our estimates of useful life, which are 20 – 40 years for buildings and improvements; 3 – 10 years for machinery, equipment, vehicles, furniture, and fixtures; and 3 – 7 years for capitalized software. We assess our property, plant, and equipment for impairment whenever events or changes in circumstances indicate that the carrying value of those assets may not be recoverable. When we do not expect to recover the carrying value of an asset (or asset group) through undiscounted future cash flows, we write it down to its estimated fair value. We determine fair value using discounted estimated future cash flows, considering market values for similar assets when available. When we retire or dispose of property, plant, and equipment, we remove its cost and accumulated depreciation from our balance sheet and reflect any gain or loss in operating income. We expense the costs of repairing and maintaining our property, plant, and equipment as we incur them. |
Goodwill and other intangible assets | Goodwill and other intangible assets. We have obtained most of our brands by acquiring other companies. When we acquire another company, we first allocate the purchase price to identifiable assets and liabilities, including intangible brand names and trademarks (“brand names”), based on estimated fair value. We then record any remaining purchase price as goodwill. We do not amortize goodwill or other intangible assets with indefinite lives. We consider all of our brand names to have indefinite lives. We assess our goodwill and other indefinite-lived intangible assets for impairment at least annually. If an asset’s fair value is less than its book value, we write it down to its estimated fair value. For goodwill, if the book value of the reporting unit exceeds its estimated fair value, we measure for potential impairment by comparing the implied fair value of the reporting unit’s goodwill, determined in the same manner as in a business combination, to the goodwill’s book value. We estimate the reporting unit’s fair value using discounted estimated future cash flows or market information. We typically estimate the fair value of a brand name using the either the “relief from royalty” or “excess earnings” method. We also consider market values for similar assets when available. Considerable management judgment is necessary to estimate fair value, including the selection of assumptions about future cash flows, discount rates, and royalty rates. We have the option, before quantifying the fair value of a reporting unit or brand name, to evaluate qualitative factors to assess whether it is more likely than not that our goodwill or brand names are impaired. If we determine that is not the case, then we are not required to quantify the fair value. That assessment also takes considerable management judgment. |
Foreign currency transactions and translation | Foreign currency transactions and translation. We report all gains and losses from foreign currency transactions (those denominated in a currency other than the entity’s functional currency) in current income. The U.S. dollar is the functional currency for most of our consolidated entities. The local currency is the functional currency for some of our consolidated foreign entities. We translate the financial statements of those foreign entities into U.S. dollars, using the exchange rate in effect at the balance sheet date to translate assets and liabilities, and using the average exchange rate for the reporting period to translate income and expenses. We record the resulting translation adjustments in other comprehensive income (loss). |
Revenue recognition | Revenue recognition. We recognize revenue when title and risk of loss pass to the customer, typically when the product is shipped. Some sales contracts contain customer acceptance provisions that grant a right of return on the basis of either subjective or objective criteria. We record revenue net of estimated sales returns, allowances, and discounts. |
Excise taxes | Excise taxes. Our sales are often subject to excise taxes that we collect from our customers and remit to governmental authorities. Effective beginning May 1, 2016, we changed our presentation of excise taxes from the gross method (included in sales and costs) to the net method (excluded from sales). As a result, the amounts presented as “net sales” in our financial statements now exclude excise taxes. We believe the change in presentation to the net method is preferable because it is more representative of the internal financial information reviewed by management in assessing our performance and more consistent with the presentation used by our major competitors in their external financial statements. Prior period financial statements have been recast to conform to the new presentation. |
Cost of sales | Cost of sales. Cost of sales includes the costs of receiving, producing, inspecting, warehousing, insuring, and shipping goods sold during the period. |
Shipping and handling fees and costs | Shipping and handling fees and costs. We report the amounts we bill to our customers for shipping and handling as net sales, and we report the costs we incur for shipping and handling as cost of sales. |
Advertising costs | Advertising costs. We expense the costs of advertising during the year when the advertisements first take place. |
Selling, general, and administrative expenses | Selling, general, and administrative expenses. Selling, general, and administrative expenses include the costs associated with our sales force, administrative staff and facilities, and other expenses related to our non-manufacturing functions. |
Income taxes | Income taxes. We base our annual provision for income taxes on the pre-tax income reflected in our consolidated statement of operations. We establish deferred tax liabilities or assets for temporary differences between GAAP and tax reporting bases and later adjust them to reflect changes in tax rates expected to be in effect when the temporary differences reverse. We record a valuation allowance as necessary to reduce a deferred tax asset to the amount that we believe is more likely than not to be realized. We do not provide deferred income taxes on undistributed earnings of foreign subsidiaries that we expect to permanently reinvest. We record a deferred tax charge in prepaid taxes for the difference between GAAP and tax reporting bases with respect to the elimination of intercompany profit in ending inventory. We assess our uncertain income tax positions using a two-step process. First, we evaluate whether the tax position will more likely than not, based on its technical merits, be sustained upon examination, including resolution of any related appeals or litigation. For a tax position that does not meet this first criterion, we recognize no tax benefit. For a tax position that does meet the first criterion, we recognize a tax benefit in an amount equal to the largest amount of benefit that we believe has more than a 50% likelihood of being realized upon ultimate resolution. We record interest and penalties on uncertain tax positions as income tax expense. |
Recent accounting pronouncements | Recently-adopted accounting pronouncements. During fiscal 2017, we adopted new guidance related to certain aspects of the accounting for stock-based compensation, including the income tax consequences. Under the new guidance, we recognize all tax benefits related to stock-based compensation as an income tax benefit in our statement of operations, and include all income tax cash flows within operating activities in our statement of cash flows. Under the previous accounting guidance, we recognized some of those tax benefits (excess tax benefits) as additional paid-in capital and classified that amount as a financing activity in our statement of cash flows. We adopted these provisions of the new guidance on a prospective basis as of May 1, 2016. As a result, our net income and operating cash flows for fiscal 2017 include excess tax benefits of $9 . Prior period financial statements have not been adjusted. Also, under the new guidance, we recognize the excess tax benefits during the period in which the related awards vest or are exercised. Under the previous accounting guidance, we recognized those benefits during the period in which they reduced taxes payable. We adopted this provision of the new guidance on a modified retrospective basis with a cumulative-effect adjustment of $10 to retained earnings as of May 1, 2016. During fiscal 2017, we also adopted revised disclosure guidance related to investments measured at net asset value. Under the revised guidance, investments measured at net asset value as a practical expedient are no longer categorized in the fair value hierarchy. New accounting pronouncements to be adopted. In May 2014, the Financial Accounting Standards Board (FASB) issued a new revenue recognition standard that, along with various amendments issued in 2015 and 2016, will replace substantially all existing revenue recognition guidance in U.S. GAAP. The core principle of the standard requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to in exchange for those goods or services. The new standard also requires significantly more financial statement disclosures than existing revenue standards do. The new standard can be adopted using either of two transition options: a full retrospective transition method or a modified retrospective method. Under the full retrospective method, the guidance would be applied to each prior reporting period presented. Under the modified retrospective method, the cumulative effect of initially applying the new guidance would be recorded as an adjustment to the opening balance of retained earnings for the annual reporting period that includes the date of initial application. We are continuing to assess the potential impact of the new guidance on our financial statements. Based on our assessment to date, we currently expect our accounting for certain customer incentives to be the area most likely affected by the new recognition requirements. We also expect to disclose additional information about revenues under the new standard. As we progress in our assessment, we are also identifying and preparing to make any changes to our accounting policies and practices, systems, processes, and controls that may be required to implement the new standard. We currently expect to choose the modified retrospective method in transitioning to the new standard, which we will adopt effective May 1, 2018. We are also currently evaluating the potential impact on our financial statements of the additional new accounting pronouncements described below: • In February 2016, the FASB issued a new standard on accounting for leases. Under the new standard, a lessee should recognize on the balance sheet a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. The standard permits an entity to make an accounting policy election not to recognize lease assets and liabilities for leases with a term of 12 months or less. The standard, which also requires additional quantitative and qualitative disclosures about leasing arrangements, will become effective for us beginning fiscal 2020. It is to be applied using a modified retrospective transition approach for leases existing at the beginning of the earliest comparative period presented in the adoption-period financial statements. • In August 2016, the FASB issued new guidance on the classification of certain cash receipts and cash payments on the statement of cash flows. The new guidance, which addresses eight specific cash flow classification issues, is intended to reduce diversity in practice. It will become effective for us beginning fiscal 2019 and is to be applied retrospectively. • In October 2016, the FASB issued revised guidance that requires the recognition of the income tax consequences (expense or benefit) of an intercompany transfer of assets other than inventory when the transfer occurs. It maintains the existing requirement to defer the recognition of the income tax consequences of an intercompany transfer of inventory until the inventory is sold to an outside party. The guidance will become effective for us beginning fiscal 2019 and is to be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings as of the beginning of the period of adoption. • In January 2017, the FASB issued updated guidance that eliminates the second step of the existing two-step quantitative test of goodwill for impairment. Under the new guidance, the quantitative test will consist of a single step in which the carrying amount of the reporting unit will be compared to its fair value. An impairment charge would be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value; however, the amount of the impairment would be limited to the total amount of goodwill allocated to the reporting unit. The guidance does not affect the existing option to perform the qualitative assessment for a reporting unit to determine whether the quantitative impairment test is necessary. It will become effective for us beginning fiscal 2021 and is to be applied prospectively. • In March 2017, the FASB issued new guidance for the presentation of the net periodic cost (NPC) associated with pension and other postretirement benefit plans. The guidance requires the service cost component of the NPC to be reported in the income statement in the same line item(s) as other compensation costs arising from services rendered by the pertinent employees during the period. The other components of the NPC are to be presented separately from the service cost and outside of income from operations. In addition, the guidance allows only the service cost component of NPC to be eligible for capitalization when applicable. The guidance will become effective for us beginning fiscal 2019. It is to be applied retrospectively for the presentation in the income statement and prospectively, on and after the effective date, for the capitalization of service cost. Early application of any of the new accounting pronouncements described above is permitted. Although we have not yet determined our plans for adoption, we do not currently expect to apply any of the new guidance before their effective dates. |
Derivative Financial Instrume28
Derivative Financial Instruments and Hedging Activities Derivative Financial Instruments and Hedging Activities (Policies) | 12 Months Ended |
Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [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 (that is, 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. |
Balance Sheet Information (Tabl
Balance Sheet Information (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Supplemental information on year end balance sheets | Supplemental information on our year-end balance sheets is as follows: April 30, 2016 2017 Other current assets: Prepaid taxes $ 208 $ 210 Other 149 132 $ 357 $ 342 Property, plant, and equipment: Land $ 76 $ 81 Buildings 468 497 Equipment 619 659 Construction in process 54 96 1,217 1,333 Less accumulated depreciation 588 620 $ 629 $ 713 Accounts payable and accrued expenses: Accounts payable, trade $ 121 $ 137 Accrued expenses: Advertising and promotion 133 111 Compensation and commissions 105 97 Excise and other non-income taxes 58 61 Other 84 95 380 364 $ 501 $ 501 Other liabilities: Deferred benefit – tax (Note 13) $ 59 $ 43 Other 87 87 $ 146 $ 130 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table shows the changes in goodwill (which include no accumulated impairment losses) and other intangible assets over the past two years: Goodwill Other Intangible Assets Balance as of April 30, 2015 $ 607 $ 611 Sale of business (Note 16) (16 ) (22 ) Foreign currency translation adjustment (1 ) 6 Balance as of April 30, 2016 590 595 Acquisition of business (Note 17) 183 65 Foreign currency translation adjustment (20 ) (19 ) Balance as of April 30, 2017 $ 753 $ 641 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt | Our long-term debt (net of unamortized discounts and issuance costs) consisted of: April 30, 2016 2017 1.00% senior notes, $250 principal amount, due January 15, 2018 $ 249 $ 249 2.25% senior notes, $250 principal amount, due January 15, 2023 248 248 1.20% senior notes, €300 principal amount, due July 7, 2026 — 324 2.60% senior notes, £300 principal amount, due July 7, 2028 — 383 3.75% senior notes, $250 principal amount, due January 15, 2043 248 248 4.50% senior notes, $500 principal amount, due July 15, 2045 485 486 1,230 1,938 Less current portion — 249 $ 1,230 $ 1,689 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of assets and liabilities measured at fair value on a recurring basis | The following table summarizes the assets and liabilities measured at fair value on a recurring basis: Level 1 Level 2 Level 3 Total April 30, 2016 Assets: Currency derivatives $ — $ 19 $ — $ 19 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 271 — 271 Long-term debt — 1,293 — 1,293 April 30, 2017 Assets: Currency derivatives — 25 — 25 Liabilities: Currency derivatives — 10 — 10 Short-term borrowings — 211 — 211 Current portion of long-term debt — 249 — 249 Long-term debt — 1,752 — 1,752 |
Fair Value of Financial Instr33
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Comparison of the fair values and carrying amounts of financial instruments | Below is a comparison of the fair values and carrying amounts of these instruments: 2016 2017 April 30, Carrying Amount Fair Value Carrying Amount Fair Value Assets: Cash and cash equivalents $ 263 $ 263 $ 182 $ 182 Currency derivatives 19 19 25 25 Liabilities: Currency derivatives 10 10 10 10 Short-term borrowings 271 271 211 211 Current portion of long-term debt — — 249 249 Long-term debt 1,230 1,293 1,689 1,752 |
Derivative Financial Instrume34
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments affecting statements of operations | The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings in 2016 and 2017 : Classification in Statement of Operations 2016 2017 Derivative Instruments Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ 22 $ 41 Net gain (loss) reclassified from AOCI into earnings Net sales 60 40 Interest rate derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a 8 — Currency derivatives designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 8 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Net sales 1 2 Net gain (loss) recognized in earnings Other income (5 ) (5 ) Non-Derivative Hedging Instruments Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a — 2 Foreign currency-denominated debt not designated as hedging instrument: Net gain (loss) recognized in earnings Other income — 3 |
Schedule of fair values of derivative instruments | The following table presents the fair values of our derivative instruments as of April 30, 2016 and 2017 : Balance Sheet Classification Fair Value of Derivatives in a Gain Position Fair Value of Derivatives in a Loss Position April 30, 2016 Designated as cash flow hedges: Currency derivatives Other current assets $ 23 $ (2 ) Currency derivatives Other assets 3 (2 ) Currency derivatives Accrued expenses 4 (8 ) Currency derivatives Other liabilities 3 (9 ) Not designated as hedges: Currency derivatives Other current assets 1 (4 ) April 30, 2017 Designated as cash flow hedges: Currency derivatives Other current assets 21 (2 ) Currency derivatives Other assets 9 (4 ) Currency derivatives Accrued expenses 2 (8 ) Currency derivatives Other liabilities 1 (4 ) Not designated as hedges: Currency derivatives Other current assets 2 (1 ) Currency derivatives Accrued expenses — (1 ) |
Offsetting Assets and Liabilities [Table Text Block] | The following table summarizes the gross and net amounts of our derivative contracts: 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, 2016 Derivative assets $ 34 $ (15 ) $ 19 $ (6 ) $ 13 Derivative liabilities (25 ) 15 (10 ) 6 (4 ) April 30, 2017 Derivative assets 35 (10 ) 25 (1 ) 24 Derivative liabilities (20 ) 10 (10 ) 1 (9 ) |
Pension and Other Postretirem35
Pension and Other Postretirement Benefits (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Compensation and Retirement Disclosure [Abstract] | |
Change in present value of pension and other postretirement benefit obligation | The following table shows how the present value of our obligation changed during each of the last two years. Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Obligation at beginning of year $ 887 $ 898 $ 57 $ 56 Service cost 26 26 1 1 Interest cost 35 35 2 2 Net actuarial loss (gain) 8 (14 ) (1 ) — Plan amendments — 1 — (4 ) Retiree contributions — — 1 1 Benefits paid (58 ) (53 ) (4 ) (4 ) Obligation at end of year $ 898 $ 893 $ 56 $ 52 |
Expected benefit payments over the next 10 years | Expected benefit payments (net of retiree contributions) over the next 10 years are as follows: Pension Benefits Medical and Life Insurance Benefits 2018 $ 52 $ 3 2019 53 3 2020 54 3 2021 55 3 2022 58 3 2023 – 2027 309 16 |
Fair value of pension plan assets by category, as well as the actual and target allocations | The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 6.) Level 1 Level 2 Level 3 Total April 30, 2016 Equity securities $ 78 $ — $ — $ 78 Limited partnership interests 1 — — 29 29 $ 78 $ — $ 29 107 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 197 Fixed income funds 197 Real estate funds 59 Short-term investments 4 Hedge funds 3 30 Total $ 594 April 30, 2017 Equity securities $ 78 $ — $ — $ 78 Limited partnership interests 1 — — 32 32 $ 78 $ — $ 32 110 Investments measured at net asset value: Commingled trust funds 2 : Equity funds 206 Fixed income funds 229 Real estate funds 63 Short-term investments 7 Hedge funds 3 8 Total $ 623 1 Limited partnership interests are valued at the percentage ownership of total partnership equity as determined by the general partner. These valuations require significant judgment due to the absence of quoted market prices, the inherent lack of liquidity, and the long-term nature of these investments. 2 Commingled trust fund valuations are based on the net asset value (NAV) of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. 3 Hedge fund valuations are based primarily on the NAV of the funds as determined by fund administrators and reviewed by us. During our review, we determine whether it is necessary to adjust a valuation for inherent liquidity and redemption issues that may exist within a fund’s underlying assets or fund unit values. |
Change in fair value of Level 3 assets | The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels. Level 3 Balance as of April 30, 2015 $ 26 Return on assets held at end of year 1 Purchases and settlements 5 Sales and settlements (3 ) Balance as of April 30, 2016 29 Return on assets held at end of year 1 Purchases and settlements 5 Sales and settlements (3 ) Balance as of April 30, 2017 $ 32 |
Change in fair value of pension plan Assets | The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Assets at beginning of year $ 626 $ 594 $ — $ — Actual return on assets 2 51 — — Retiree contributions — — 1 1 Company contributions 24 31 3 3 Benefits paid (58 ) (53 ) (4 ) (4 ) Assets at end of year $ 594 $ 623 $ — $ — |
Funded status of plans | The following table shows the funded status of our plans. Pension Benefits Medical and Life Insurance Benefits April 30, 2016 2017 2016 2017 Assets $ 594 $ 623 $ — $ — Obligations (898 ) (893 ) (56 ) (52 ) Funded status $ (304 ) $ (270 ) $ (56 ) $ (52 ) |
Funded status is recorded on the accompanying consolidated balance sheets | The funded status is recorded on the accompanying consolidated balance sheets as follows: Pension Benefits Medical and Life Insurance Benefits April 30, 2016 2017 2016 2017 Accounts payable and accrued expenses (4 ) (5 ) (3 ) (3 ) Accrued postretirement benefits (300 ) (265 ) (53 ) (49 ) Net liability $ (304 ) $ (270 ) $ (56 ) $ (52 ) Accumulated other comprehensive income (loss), before tax: Net actuarial gain (loss) $ (372 ) $ (322 ) $ (13 ) $ (13 ) Prior service credit (cost) (4 ) (4 ) 15 17 $ (376 ) $ (326 ) $ 2 $ 4 |
Pension plans that have assets in excess of their accumulated benefit obligations with those whose assets are less than their obligations | The following table compares our pension plans whose assets exceed their accumulated benefit obligations with those whose obligations exceed their assets. (As discussed above, we have no assets set aside for postretirement medical or life insurance benefits.) Plan Assets Accumulated Benefit Obligation Projected Benefit Obligation April 30, 2016 2017 2016 2017 2016 2017 Plans with assets in excess of accumulated benefit obligation $ — $ 48 $ — $ 47 $ — $ 48 Plans with accumulated benefit obligation in excess of assets 594 575 776 729 898 845 Total $ 594 $ 623 $ 776 $ 776 $ 898 $ 893 |
Pension expense | The following table shows the components of the pension expense recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. Pension Benefits 2015 2016 2017 Service cost $ 22 $ 26 $ 26 Interest cost 34 35 35 Expected return on assets (41 ) (40 ) (41 ) Amortization of: Prior service cost (credit) 1 1 1 Net actuarial loss (gain) 22 27 25 Settlement loss — — 1 Net expense $ 38 $ 49 $ 47 |
Postretirement medical and life insurance benefit expense | The following table shows the components of the postretirement medical and life insurance benefit expense that we recognized during each of the last three years. Medical and Life Insurance Benefits 2015 2016 2017 Service cost $ 1 $ 1 $ 1 Interest cost 3 2 2 Amortization of: Prior service cost (credit) (2 ) (2 ) (3 ) Net actuarial loss (gain) 1 1 1 Net expense $ 3 $ 2 $ 1 |
Amounts recognized in other comprehensive income | The following table shows the pre-tax effect of these amounts on OCI during each of the last three years. Pension Benefits Medical and Life Insurance Benefits 2015 2016 2017 2015 2016 2017 Prior service credit (cost) $ — $ — $ (1 ) $ 16 $ — $ 4 Net actuarial gain (loss) (80 ) (46 ) 24 (3 ) 1 — Amortization reclassified to earnings: Prior service cost (credit) 1 1 1 (2 ) (2 ) (3 ) Net actuarial loss (gain) 22 27 26 1 1 1 Net amount recognized in OCI $ (57 ) $ (18 ) $ 50 $ 12 $ — $ 2 |
Assumptions used in computing benefit plan obligations | The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows: Pension Benefits Medical and Life Insurance Benefits 2016 2017 2016 2017 Discount rate 4.02 % 4.09 % 3.96 % 4.04 % Rate of salary increase 4.00 % 4.00 % n/a n/a |
Assumptions used in computing benefit plan expense | assumptions used in computing benefit plan expense during each of the last three years were as follows: Pension Benefits Medical and Life Insurance Benefits 2015 2016 2017 2015 2016 2017 Discount rate 4.46 % 4.09 % 4.02 % 4.67 % 4.09 % 3.96 % Rate of salary increase 4.00 % 4.00 % 4.00 % n/a n/a n/a Expected return on plan assets 7.50 % 7.00 % 7.00 % n/a n/a n/a |
Assumed health care cost trend rates | The assumed health care cost trend rates as of the end of the last two years were as follows: Medical and Life Insurance Benefits 2016 2017 Health care cost trend rate assumed for next year 7.25 % 7.25 % Rate to which the cost trend rate is assumed to decline (the ultimate trend rate) 5.00 % 5.00 % Year that the rate reaches the ultimate trend rate 2024 2025 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock options and SSARs granted under the plan | The following table presents information about stock options and stock-settled stock appreciation rights (SSARs) granted under the Plan (or its predecessor plans) as of April 30, 2017 , and for the year then ended. Number of Underlying Shares (in thousands) Weighted Average Exercise Price per Award Weighted Average Remaining Contractual Term (years) Aggregate Intrinsic Value Outstanding at April 30, 2016 6,852 $ 28.42 Granted 779 49.01 Exercised (1,005 ) 19.49 Forfeited or expired (11 ) 46.79 Outstanding at April 30, 2017 6,615 $ 32.17 5.0 $ 104 Exercisable at April 30, 2017 4,390 $ 23.75 3.6 $ 103 |
Assumptions used for fair value estimation | We estimated the fair values using the Black-Scholes pricing model with the following assumptions: 2015 2016 2017 Risk-free interest rate 2.2 % 2.1 % 1.4 % Expected volatility 22.3 % 19.1 % 16.3 % Expected dividend yield 1.7 % 1.6 % 1.6 % Expected term (years) 6.75 6.75 7.00 |
Summary of changes in outstanding RSUs and restricted stock | The following table summarizes the changes in the number of shares underlying these awards during 2017 . Number of Underlying Shares (in thousands) Weighted Average Fair Value at Grant Date Nonvested at April 30, 2016 547 $ 42.61 Granted 134 48.44 Adjusted for dividends or performance (31 ) 47.45 Vested (153 ) 36.71 Forfeited (5 ) 44.27 Nonvested at April 30, 2017 492 $ 45.71 |
Common Stock (Tables)
Common Stock (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Class of Stock [Line Items] | |
Schedule of Stock by Class [Table Text Block] | The following table shows the change in outstanding common shares during each of the last three years: (Shares in thousands) Class A Class B Total Balance at April 30, 2014 168,924 257,986 426,910 Acquisition of treasury stock (171 ) (10,069 ) (10,240 ) Stock issued under compensation plans 173 557 730 Balance at April 30, 2015 168,926 248,474 417,400 Acquisition of treasury stock (114 ) (22,714 ) (22,828 ) Stock issued under compensation plans 248 664 912 Balance at April 30, 2016 169,060 226,424 395,484 Acquisition of treasury stock (77 ) (11,799 ) (11,876 ) Stock issued under compensation plans 68 410 478 Balance at April 30, 2017 169,051 215,035 384,086 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
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: 2015 2016 2017 Net income available to common stockholders $ 684 $ 1,067 $ 669 Share data (in thousands): Basic average common shares outstanding 423,185 405,953 387,708 Dilutive effect of stock-based awards 2,980 2,607 2,753 Diluted average common shares outstanding 426,165 408,560 390,461 Basic earnings per share $ 1.62 $ 2.63 $ 1.72 Diluted earnings per share $ 1.60 $ 2.61 $ 1.71 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Domestic and Foreign income before Income taxes | The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes: 2015 2016 2017 United States $ 912 $ 1,184 $ 806 Foreign 90 305 127 $ 1,002 $ 1,489 $ 933 |
Deferred tax assets and liabilities | Deferred tax assets and liabilities as of the end of each of the last two years were as follows: April 30, 2016 2017 Deferred tax assets: Postretirement and other benefits $ 183 $ 173 Accrued liabilities and other 10 17 Inventories 26 27 Loss and credit carryforwards 39 44 Valuation allowance (25 ) (30 ) Total deferred tax assets, net 233 231 Deferred tax liabilities: Intangible assets (225 ) (262 ) Property, plant, and equipment (83 ) (90 ) Other (9 ) (15 ) Total deferred tax liabilities (317 ) (367 ) Net deferred tax liability $ (84 ) $ (136 ) |
Total income tax expense | Our total income tax expense for each of the last three years was as follows: 2015 2016 2017 Current: U.S. federal $ 259 $ 347 $ 226 Foreign 42 47 40 State and local 11 18 8 312 412 274 Deferred: U.S. federal $ 15 $ 24 $ (1 ) Foreign (11 ) (17 ) (9 ) State and local 2 3 — 6 10 (10 ) $ 318 $ 422 $ 264 |
Reconciles our effective tax rate to the federal statutory tax rate in the United States | The following table reconciles our effective tax rate to the federal statutory tax rate in the United States: Percent of Income Before Taxes 2015 2016 2017 U.S. federal statutory rate 35.0 % 35.0 % 35.0 % State taxes, net of U.S. federal tax benefit 1.0 % 1.0 % 0.9 % Income taxed at other than U.S. federal statutory rate (0.5 %) (2.5 %) (1.7 %) Tax benefit from U.S. manufacturing (2.5 %) (2.4 %) (2.4 %) Tax impact of sale of business — % (1.1 %) — % Amortization of deferred tax benefit from intercompany transactions (1.6 %) (1.6 %) (1.7 %) Excess tax benefits from stock-based awards — % — % (1.0 %) Other, net 0.3 % (0.1 %) (0.8 %) Effective rate 31.7 % 28.3 % 28.3 % |
Reconciliation of ending and beginning unrecognized tax benefits | A reconciliation of the beginning and ending unrecognized tax benefits follows: 2015 2016 2017 Unrecognized tax benefits at beginning of year $ 11 $ 13 $ 9 Additions for tax positions provided in prior periods 2 1 2 Additions for tax positions provided in current period 1 — — Decreases for tax positions provided in prior years (1 ) (4 ) (2 ) Settlements of tax positions in the current period — (1 ) — Unrecognized tax benefits at end of year $ 13 $ 9 $ 9 |
Accumulated Other Comprehensi40
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Accumulated Other Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table summarizes the change in each component of AOCI, net of tax, during 2017 : Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2016 $ (131 ) $ 11 $ (230 ) $ (350 ) Net other comprehensive income (loss) (73 ) — 33 (40 ) Balance at April 30, 2017 $ (204 ) $ 11 $ (197 ) $ (390 ) |
Comprehensive Income (Loss) [Table Text Block] | The following table presents the components of net other comprehensive income (loss) during each of the last three years: Pre-Tax Tax Net Year Ended April 30, 2015 Currency translation adjustments: Net gain (loss) on currency translation $ (120 ) $ 6 $ (114 ) Reclassification to earnings — — — Other comprehensive income (loss), net (120 ) 6 (114 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 96 (40 ) 56 Reclassification to earnings 1 (41 ) 17 (24 ) Other comprehensive income (loss), net 55 (23 ) 32 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (70 ) 26 (44 ) Reclassification to earnings 2 22 (8 ) 14 Other comprehensive income (loss), net (48 ) 18 (30 ) Total other comprehensive income (loss), net $ (113 ) $ 1 $ (112 ) Year Ended April 30, 2016 Currency translation adjustments: Net gain (loss) on currency translation $ (22 ) $ (1 ) $ (23 ) Reclassification to earnings — — — Other comprehensive income (loss), net (22 ) (1 ) (23 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 30 (10 ) 20 Reclassification to earnings 1 (60 ) 23 (37 ) Other comprehensive income (loss), net (30 ) 13 (17 ) Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost (47 ) 19 (28 ) Reclassification to earnings 2 30 (12 ) 18 Other comprehensive income (loss), net (17 ) 7 (10 ) Total other comprehensive income (loss), net $ (69 ) $ 19 $ (50 ) Pre-Tax Tax Net Year Ended April 30, 2017 Currency translation adjustments: Net gain (loss) on currency translation $ (71 ) $ (4 ) $ (75 ) Reclassification to earnings 3 (1 ) 2 Other comprehensive income (loss), net (68 ) (5 ) (73 ) Cash flow hedge adjustments: Net gain (loss) on hedging instruments 41 (17 ) 24 Reclassification to earnings 1 (40 ) 16 (24 ) Other comprehensive income (loss), net 1 (1 ) — Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost 28 (10 ) 18 Reclassification to earnings 2 25 (10 ) 15 Other comprehensive income (loss), net 53 (20 ) 33 Total other comprehensive income (loss), net $ (14 ) $ (26 ) $ (40 ) 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 9, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 9 due to immateriality). |
Supplemental Information (Table
Supplemental Information (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Segment Reporting [Abstract] | |
Net sales by product category | The following table presents net sales by product category: 2015 2016 2017 Net sales: Spirits $ 2,955 $ 2,901 $ 2,805 Wine 179 188 189 $ 3,134 $ 3,089 $ 2,994 |
Net sales by geography | The following table presents net sales by geography: 2015 2016 2017 Net sales: United States $ 1,445 $ 1,491 $ 1,444 Europe 847 834 770 Australia 175 153 151 Other 667 611 629 $ 3,134 $ 3,089 $ 2,994 |
Acquisition of Business (Tables
Acquisition of Business (Tables) | 12 Months Ended |
Apr. 30, 2017 | |
Acquisition of Business [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price of $341 was allocated based on management’s estimates and independent appraisals as follows: June 1, Accounts receivable $ 11 Inventories 158 Other current assets 1 Property, plant, and equipment 19 Goodwill 183 Trademarks and brand names 65 Total assets 437 Accounts payable and accrued expenses 12 Short-term borrowings 59 Deferred tax liabilities 25 Total liabilities 96 Net assets acquired $ 341 |
Accounting Policies (Textual) (
Accounting Policies (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Accounting Policies (Textual) [Abstract] | ||
Inventories valued using LIFO method (percent) | 54.00% | |
FIFO method value of inventory in excess of reported | $ 272 | $ 248 |
Minimum [Member] | ||
Accounting Policies (Textual) [Abstract] | ||
Whiskey aging period (years) | 3 years | |
Minimum [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 20 years | |
Minimum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 3 years | |
Minimum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 3 years | |
Maximum [Member] | ||
Accounting Policies (Textual) [Abstract] | ||
Whiskey aging period (years) | 6 years | |
Maximum [Member] | Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 40 years | |
Maximum [Member] | Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 10 years | |
Maximum [Member] | Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life (years) | 7 years |
Recently-adopted accounting pro
Recently-adopted accounting pronouncements (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | May 01, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 10 | |
Excess Tax Benefits from Stock Based Compensation | $ 9 | |
Retained Earnings [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | $ 10 |
Balance Sheet Information (Deta
Balance Sheet Information (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Other current assets: | ||
Prepaid taxes | $ 210 | $ 208 |
Other | 132 | 149 |
Other current assets | 342 | 357 |
Property, plant, and equipment: | ||
Land | 81 | 76 |
Buildings | 497 | 468 |
Equipment | 659 | 619 |
Construction in process | 96 | 54 |
Property, plant and equipment, gross | 1,333 | 1,217 |
Less accumulated depreciation | 620 | 588 |
Property, plant, and equipment, net | 713 | 629 |
Accounts payable and accrued expenses: | ||
Accounts payable, trade | 137 | 121 |
Accrued expenses: | ||
Advertising and promotion | 111 | 133 |
Compensation and commissions | 97 | 105 |
Excise and other non-income taxes | 61 | 58 |
Other | 95 | 84 |
Accrued expenses | 364 | 380 |
Accounts payable and accrued expenses | 501 | 501 |
Other liabilities: | ||
Deferred benefit – tax (Note 13) | 43 | 59 |
Other | 87 | 87 |
Other liabilities | $ 130 | $ 146 |
Goodwill and Other Intangible46
Goodwill and Other Intangible Assets (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 590 | $ 607 |
Sale of business | (16) | |
Foreign currency translation adjustment | (20) | (1) |
Acquisition of business | 183 | |
Ending balance | 753 | 590 |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Beginning balance | 595 | 611 |
Sale of business | (22) | |
Foreign currency translation adjustment | (19) | 6 |
Acquisition of business | 65 | |
Ending balance | $ 641 | $ 595 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Commitments (Textual) [Abstract] | |||
Rental payment under operating leases | $ 23 | $ 23 | $ 23 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Minimum lease payment, 2018 | 17 | ||
Minimum lease payment, 2019 | 13 | ||
Minimum lease payment, 2020 | 9 | ||
Minimum lease payment, 2021 | 5 | ||
Minimum lease payment, 2022 | 3 | ||
Minimum lease payment, after 2022 | 1 | ||
Unrecorded Unconditional Purchase Obligation, Fiscal Year Maturity [Abstract] | |||
Total purchase obligation, 2018 | 12 | ||
Total purchase obligation, 2019 | 9 | ||
Total purchase obligation, 2020 | 6 | ||
Total purchase obligation, 2021 | 4 | ||
Total purchase obligation, 2022 | 3 | ||
Total purchase obligation, after 2022 | $ 1 | ||
Agave [Member] | |||
Commitments (Textual) [Abstract] | |||
Agave purchase contract, period (years) | 10 years | ||
Total obligations | $ 4 |
Commitments and Contingencies G
Commitments and Contingencies Guaranty (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Concentration Risk [Line Items] | ||
Accounts Receivable, Net, Current | $ 557 | $ 559 |
Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 25 | |
Guarantee Obligations Current Exposure | 6 | |
Accounts Receivable, Net, Current | $ 7 |
Debt and Credit Facilities (Sch
Debt and Credit Facilities (Schedule of Long-Term Debt) (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | ||||||
Apr. 30, 2017EUR (€) | Apr. 30, 2016EUR (€) | Apr. 30, 2017GBP (£) | Apr. 30, 2017USD ($) | Apr. 30, 2016GBP (£) | Apr. 30, 2016USD ($) | Jun. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||||||
Total long term debt | $ 1,938 | $ 1,230 | |||||
Less current portion | 249 | 0 | |||||
Total Long term debt excluding current portion | 1,689 | 1,230 | |||||
1.00% senior notes, due January 15, 2018 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2018 | Jan. 15, 2018 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |
Total long term debt | $ 249 | $ 249 | |||||
2.25% senior notes, due January 15, 2023 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2023 | Jan. 15, 2023 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% | 2.25% | |
Total long term debt | $ 248 | $ 248 | |||||
1.20% senior notes, due July 7, 2026 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | € 300 | € 0 | $ 327 | ||||
Debt Instrument, Maturity Date | Jul. 7, 2026 | Jul. 7, 2026 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | |
Total long term debt | $ 324 | $ 0 | |||||
2.60% senior notes, due July 7, 2028 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | £ 300 | $ 389 | £ 0 | ||||
Debt Instrument, Maturity Date | Jul. 7, 2028 | Jul. 7, 2028 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | |
Total long term debt | $ 383 | $ 0 | |||||
3.75% senior notes, due January 15, 2043 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 250 | $ 250 | |||||
Debt Instrument, Maturity Date | Jan. 15, 2043 | Jan. 15, 2043 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | 3.75% | |
Total long term debt | $ 248 | $ 248 | |||||
4.5% senior notes, due July 15, 2045 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Face Amount | $ 500 | $ 500 | $ 500 | ||||
Debt Instrument, Maturity Date | Jul. 15, 2045 | Jul. 15, 2045 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% | 4.50% |
Total long term debt | $ 486 | $ 485 |
Debt and Credit Facilities (Tex
Debt and Credit Facilities (Textual) (Details) $ in Millions | Apr. 30, 2017USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2,018 | $ 250 |
2,019 | 0 |
2,020 | 0 |
2,021 | 0 |
2,022 | 0 |
After 2,022 | $ 1,715 |
Debt and Credit Facilities Long
Debt and Credit Facilities Long-Term Debt (Textual) (Details) € in Millions, £ in Millions, $ in Millions | 12 Months Ended | |||||
Apr. 30, 2017EUR (€) | Apr. 30, 2016EUR (€) | Apr. 30, 2017GBP (£) | Apr. 30, 2017USD ($) | Apr. 30, 2016GBP (£) | Apr. 30, 2016USD ($) | |
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 1,938 | $ 1,230 | ||||
1.20% senior notes, due July 7, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | € 300 | € 0 | $ 327 | |||
Debt Instrument, Maturity Date | Jul. 7, 2026 | Jul. 7, 2026 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% | 1.20% |
Long-term Debt | $ 324 | $ 0 | ||||
2.60% senior notes, due July 7, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | £ 300 | $ 389 | £ 0 | |||
Debt Instrument, Maturity Date | Jul. 7, 2028 | Jul. 7, 2028 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% | 2.60% |
Long-term Debt | $ 383 | $ 0 |
Debt and Credit Facilities Shor
Debt and Credit Facilities Short-term borrowings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 211 | $ 271 |
Commercial Paper | $ 208 | $ 269 |
Commercial Paper Borrowings, Weighted Average Interest Rate | 1.04% | 0.53% |
Commercial Paper Borrowings, Average Remaining Maturity | 22 days | 26 days |
Debt and Credit Facilities Cred
Debt and Credit Facilities Credit Facilities (Details) - Eight Hundred Million Credit Facility Expiring November 2018 [Member] | Apr. 30, 2017USD ($) |
Line of Credit Facility [Line Items] | |
Line of Credit Facility, Current Borrowing Capacity | $ 800,000,000 |
Line of Credit Facility, Covenant Compliance, Ratio of Earnings Before Interest, Taxes, Deprecation, and Amortization to Consolidated Interest Expense | 3 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | $ 211 | $ 271 |
Long-term debt | 1,752 | 1,293 |
Currency derivatives [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 10 | 10 |
Fair Value, Measurements, Recurring [Member] | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Short-term borrowings | 211 | 271 |
Current portion of long-term debt | 249 | |
Long-term debt | 1,752 | 1,293 |
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 25 | 19 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 10 | 10 |
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 | |
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 | 211 | 271 |
Current portion of long-term debt | 249 | |
Long-term debt | 1,752 | 1,293 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member] | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 25 | 19 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Currency derivatives | 10 | 10 |
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 | |
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 Instr55
Fair Value of Financial Instruments (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 |
Assets: | ||||
Cash and cash equivalents, Carrying Amount | $ 182 | $ 263 | $ 370 | $ 437 |
Cash and cash equivalents, Fair Value | 182 | 263 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 211 | 271 | ||
Short-term borrowings, Fair Value | 211 | 271 | ||
Current portion of long-term debt, Carrying Amount | 249 | 0 | ||
Current portion of long-term debt, Fair Value | 249 | 0 | ||
Long-term debt, Carrying Amount | 1,689 | 1,230 | ||
Long-term debt, Fair Value | 1,752 | 1,293 | ||
Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Assets, Fair Value | 25 | 19 | ||
Liabilities: | ||||
Currency derivatives, Liabilities, Fair Value | 10 | 10 | ||
Reported Value Measurement [Member] | ||||
Assets: | ||||
Cash and cash equivalents, Carrying Amount | 182 | 263 | ||
Liabilities: | ||||
Short-term borrowings, Carrying Amount | 211 | 271 | ||
Current portion of long-term debt, Carrying Amount | 249 | 0 | ||
Long-term debt, Carrying Amount | 1,689 | 1,230 | ||
Reported Value Measurement [Member] | Currency derivatives [Member] | ||||
Assets: | ||||
Currency derivatives, Assets, Carrying Amount | 25 | 19 | ||
Liabilities: | ||||
Currency derivatives, Liabilities, Carrying Amount | $ 10 | $ 10 |
Derivative Financial Instrume56
Derivative Financial Instruments and Hedging Activities (Gain (Loss) on Derivatives Recognized in Consolidated Statement of Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Cash Flow Hedging [Member] | Treasury Lock [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in AOCI | $ 0 | $ 8 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in AOCI | 41 | 22 |
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Treasury Lock [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in AOCI | 8 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | Currency derivatives [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in AOCI | 8 | 0 |
Net Sales [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) reclassified from AOCI into earnings | 40 | 60 |
Net Sales [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in earnings | 2 | 1 |
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member] | ||
Derivative Instruments [Abstract] | ||
Net gain (loss) recognized in earnings | (5) | (5) |
Foreign Currency Denominated Debt [Member] | Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | ||
Non-Derivative Hedging Instruments [Abstract] | ||
Net gain (loss) recognized in AOCI | 2 | 0 |
Foreign Currency Denominated Debt [Member] | Other Income [Member] | Not Designated as Hedging Instrument [Member] | ||
Non-Derivative Hedging Instruments [Abstract] | ||
Net gain (loss) recognized in earnings | $ 3 | $ 0 |
Derivative Financial Instrume57
Derivative Financial Instruments and Hedging Activities (Fair Value of Derivatives in a Gain (Loss) Position) (Details) - Currency derivatives [Member] - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
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 | $ 2 | $ 1 |
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 | 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) | (4) |
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 | (1) | |
Cash Flow Hedging [Member] | Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 9 | 3 |
Cash Flow Hedging [Member] | Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 21 | 23 |
Cash Flow Hedging [Member] | Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 2 | 4 |
Cash Flow Hedging [Member] | Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | 1 | 3 |
Cash Flow Hedging [Member] | Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (4) | (2) |
Cash Flow Hedging [Member] | Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (2) | (2) |
Cash Flow Hedging [Member] | Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Accrued expenses [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | (8) | (8) |
Cash Flow Hedging [Member] | Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Fair value of derivatives in a gain (loss) position | $ (4) | $ (9) |
Derivative Financial Instrume58
Derivative Financial Instruments and Hedging Activities (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments and Hedging Activities [Line Items] | |||
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 12 | ||
Maximum Remaining Maturity of Foreign Currency Derivatives | 36 months | 36 months | |
Derivative, Net Liability Position, Aggregate Fair Value | $ 9 | $ 8 | |
Foreign Exchange Contract [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Derivative, Notional Amount | 1,188 | 1,265 | |
Treasury Lock [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 0 | 8 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Debt Instrument, Face Amount | 511 | ||
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 8 | 0 | |
Designated as Hedging Instrument [Member] | Foreign Exchange Contract [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 41 | 22 | |
Designated as Hedging Instrument [Member] | Treasury Lock [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 8 | ||
4.5% senior notes, due July 15, 2045 [Member] | |||
Derivative Instruments and Hedging Activities [Line Items] | |||
Debt Instrument, Face Amount | $ 500 | $ 500 | $ 500 |
Debt Instrument, Interest Rate, Stated Percentage | 4.50% | 4.50% | 4.50% |
Debt Instrument, Maturity Date | Jul. 15, 2045 | Jul. 15, 2045 |
Derivative Financial Instrume59
Derivative Financial Instruments and Hedging Activities Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 35 | $ 34 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (10) | (15) |
Net Amount of Derivative Assets Presented in Balance Sheet | 25 | 19 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | (1) | (6) |
Net Amount of Derivative Assets | 24 | 13 |
Gross Amount of Derivative Liabilities | (20) | (25) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 10 | 15 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | (10) | (10) |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 1 | 6 |
Net Amount of Derivative Liabilities | $ (9) | $ (4) |
Pension and Other Postretirem60
Pension and Other Postretirement Benefits (Change in Benefit Obligation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Pension Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | $ 898 | $ 887 | |
Service cost | 26 | 26 | $ 22 |
Interest cost | 35 | 35 | 34 |
Net actuarial loss (gain) | (14) | 8 | |
Plan amendments | 1 | 0 | |
Retiree contributions | 0 | 0 | |
Benefits paid | (53) | (58) | |
Obligation at end of year | 893 | 898 | 887 |
Medical and Life Insurance Benefits [Member] | |||
Changes in present value of pension and other postretirement benefits | |||
Obligation at beginning of year | 56 | 57 | |
Service cost | 1 | 1 | 1 |
Interest cost | 2 | 2 | 3 |
Net actuarial loss (gain) | 0 | (1) | |
Plan amendments | (4) | 0 | |
Retiree contributions | 1 | 1 | |
Benefits paid | (4) | (4) | |
Obligation at end of year | $ 52 | $ 56 | $ 57 |
Pension and Other Postretirem61
Pension and Other Postretirement Benefits (Expected Benefit Payments) (Details) $ in Millions | Apr. 30, 2017USD ($) |
Pension Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2,018 | $ 52 |
2,019 | 53 |
2,020 | 54 |
2,021 | 55 |
2,022 | 58 |
2023-2027 | 309 |
Medical and Life Insurance Benefits [Member] | |
Expected benefit payments over the next 10 years | |
2,018 | 3 |
2,019 | 3 |
2,020 | 3 |
2,021 | 3 |
2,022 | 3 |
2023-2027 | $ 16 |
Pension and Other Postretirem62
Pension and Other Postretirement Benefits Target asset allocation (Details) | 12 Months Ended |
Apr. 30, 2017 | |
Public Equity Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 46.00% |
Fixed Income Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 33.00% |
Alternative Investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 20.00% |
Cash and Cash Equivalents [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Target Plan Asset Allocations | 1.00% |
Pension and Other Postretirem63
Pension and Other Postretirement Benefits (Fair Value of Pension Plan Assets and Asset Allocations) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | $ 623 | $ 594 | ||
Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 32 | 29 | $ 26 | |
Equity Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 206 | 197 | |
Fixed Income Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 229 | 197 | |
Real Estate funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 63 | 59 | |
Short-term Investments [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [1] | 7 | 4 | |
Hedge Funds [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [2] | 8 | 30 | |
Included in Fair Value Hierarchy [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 110 | 107 | ||
Included in Fair Value Hierarchy [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 78 | 78 | ||
Included in Fair Value Hierarchy [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Included in Fair Value Hierarchy [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 32 | 29 | ||
Included in Fair Value Hierarchy [Member] | Private Equity [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 32 | 29 | |
Included in Fair Value Hierarchy [Member] | Private Equity [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 0 | 0 | |
Included in Fair Value Hierarchy [Member] | Private Equity [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 0 | 0 | |
Included in Fair Value Hierarchy [Member] | Private Equity [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | [3] | 32 | 29 | |
Included in Fair Value Hierarchy [Member] | Equity Securities [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 78 | 78 | ||
Included in Fair Value Hierarchy [Member] | Equity Securities [Member] | Level 1 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 78 | 78 | ||
Included in Fair Value Hierarchy [Member] | Equity Securities [Member] | Level 2 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | 0 | 0 | ||
Included in Fair Value Hierarchy [Member] | Equity Securities [Member] | Level 3 [Member] | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Total, Plan Assets | $ 0 | $ 0 | ||
[1] | Commingled trust fund valuations are based on the net asset value (NAV) of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. | |||
[2] | Hedge fund valuations are based primarily on the NAV of the funds as determined by fund administrators and reviewed by us. During our review, we determine whether it is necessary to adjust a valuation for inherent liquidity and redemption issues that may exist within a fund’s underlying assets or fund unit values. | |||
[3] | Limited partnership interests are valued at the percentage ownership of total partnership equity as determined by the general partner. These valuations require significant judgment due to the absence of quoted market prices, the inherent lack of liquidity, and the long-term nature of these investments. |
Pension and Other Postretirem64
Pension and Other Postretirement Benefits (Change in Fair Value of Level 3 Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Change in fair value of Level 3 Assets | ||
Beginning balance | $ 594 | |
Ending balance | 623 | $ 594 |
Level 3 [Member] | ||
Change in fair value of Level 3 Assets | ||
Beginning balance | 29 | 26 |
Return on assets held at end of year | 1 | 1 |
Purchases and settlements | 5 | 5 |
Sales and settlements | (3) | (3) |
Ending balance | $ 32 | $ 29 |
Pension and Other Postretirem65
Pension and Other Postretirement Benefits (Change in Fair Value of Pension Plan Assets) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Change in fair value of pension plan Assets | ||
Beginning balance | $ 594 | |
Ending balance | 623 | $ 594 |
Pension Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 594 | 626 |
Actual return on assets | 51 | 2 |
Retiree contributions | 0 | 0 |
Company contributions | 31 | 24 |
Benefits paid | (53) | (58) |
Ending balance | 623 | 594 |
Medical and Life Insurance Benefits [Member] | ||
Change in fair value of pension plan Assets | ||
Beginning balance | 0 | 0 |
Actual return on assets | 0 | 0 |
Retiree contributions | 1 | 1 |
Company contributions | 3 | 3 |
Benefits paid | (4) | (4) |
Ending balance | $ 0 | $ 0 |
Pension and Other Postretirem66
Pension and Other Postretirement Benefits (Funded Status of Plans) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 |
Funded Status of Plans | |||
Assets | $ 623 | $ 594 | |
Pension Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 623 | 594 | $ 626 |
Obligations | (893) | (898) | (887) |
Funded status | (270) | (304) | |
Medical and Life Insurance Benefits [Member] | |||
Funded Status of Plans | |||
Assets | 0 | 0 | 0 |
Obligations | (52) | (56) | $ (57) |
Funded status | $ (52) | $ (56) |
Pension and Other Postretirem67
Pension and Other Postretirement Benefits Other Assets (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Investments, All Other Investments [Abstract] | ||
Life Insurance, Corporate or Bank Owned, Amount | $ 81 | $ 64 |
Pension and Other Postretirem68
Pension and Other Postretirement Benefits (Funded Status Recorded on Accompanying Balance Sheets) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accrued postretirement benefits | $ (314) | $ (353) |
Pension Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accounts payable and accrued expenses | (5) | (4) |
Accrued postretirement benefits | (265) | (300) |
Net liability | (270) | (304) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (322) | (372) |
Prior service credit (cost) | (4) | (4) |
Total | (326) | (376) |
Medical and Life Insurance Benefits [Member] | ||
Funded status is recorded on the accompanying consolidated balance sheets | ||
Accounts payable and accrued expenses | (3) | (3) |
Accrued postretirement benefits | (49) | (53) |
Net liability | (52) | (56) |
Accumulated other comprehensive income (loss), before tax: | ||
Net actuarial gain (loss) | (13) | (13) |
Prior service credit (cost) | 17 | 15 |
Total | $ 4 | $ 2 |
Pension and Other Postretirem69
Pension and Other Postretirement Benefits Pension plans whose assets (obligations) exceed obligations (assets) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 |
Defined Benefit Plan Disclosure [Line Items] | |||
Total, Plan Assets | $ 623 | $ 594 | |
Pension Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Plans with assets in excess of accumulated benefit obligation, Plan Assets | 48 | 0 | |
Plans with accumulated benefit obligation in excess of assets, Plan Assets | 575 | 594 | |
Total, Plan Assets | 623 | 594 | $ 626 |
Plans with assets in excess of accumulated benefit obligation, Accumulated Benefit Obligation | 47 | 0 | |
Plans with accumulated benefit obligation in excess of assets, Accumulated Benefit Obligation | 729 | 776 | |
Total, Accumulated Benefit Obligation | 776 | 776 | |
Plans with assets in excess of accumulated benefit obligation, Projected Benefit Obligation | 48 | 0 | |
Plans with accumulated benefit obligation in excess of assets, Projected Benefit Obligation | 845 | 898 | |
Total, Projected Benefit Obligation | $ 893 | $ 898 | $ 887 |
Pension and Other Postretirem70
Pension and Other Postretirement Benefits (Schedule of Components of Pension Expense) (Details) - Pension Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Pension Expense | |||
Service cost | $ 26 | $ 26 | $ 22 |
Interest cost | 35 | 35 | 34 |
Expected return on assets | (41) | (40) | (41) |
Amortization of prior service cost (credit) | 1 | 1 | 1 |
Amortization of net actuarial loss (gain) | 25 | 27 | 22 |
Settlement loss | 1 | 0 | 0 |
Net expense | $ 47 | $ 49 | $ 38 |
Pension and Other Postretirem71
Pension and Other Postretirement Benefits (Schedule of Components of Other Postretirement Benefit Expense) (Details) - Medical and Life Insurance Benefits [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Postretirement medical and life insurance benefit expense | |||
Service cost | $ 1 | $ 1 | $ 1 |
Interest cost | 2 | 2 | 3 |
Amortization of prior service cost (credit) | (3) | (2) | (2) |
Amortization of net actuarial loss (gain) | 1 | 1 | 1 |
Net expense | $ 1 | $ 2 | $ 3 |
Pension and Other Postretirem72
Pension and Other Postretirement Benefits (Changes in Funded Status of Benefit Plans Recognized in Other Comprehensive (Income) Loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Pension Benefits [Member] | |||
Amounts recognized in OCI | |||
Prior service credit (cost) | $ (1) | $ 0 | $ 0 |
Net actuarial gain (loss) | 24 | (46) | (80) |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | 1 | 1 | 1 |
Net actuarial loss (gain) | 26 | 27 | 22 |
Net amount recognized in OCI | 50 | (18) | (57) |
Medical and Life Insurance Benefits [Member] | |||
Amounts recognized in OCI | |||
Prior service credit (cost) | 4 | 0 | 16 |
Net actuarial gain (loss) | 0 | 1 | (3) |
Amortization reclassified to earnings: | |||
Prior service cost (credit) | (3) | (2) | (2) |
Net actuarial loss (gain) | 1 | 1 | 1 |
Net amount recognized in OCI | $ 2 | $ 0 | $ 12 |
Pension and Other Postretirem73
Pension and Other Postretirement Benefits (Assumptions and SensItivity) (Details) | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Pension Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 4.09% | 4.02% | |
Rate of salary increase (percent) | 4.00% | 4.00% | |
Assumptions used in computing benefit plan expense | |||
Discount rate (percent) | 4.02% | 4.09% | 4.46% |
Rate of salary increase (percent) | 4.00% | 4.00% | 4.00% |
Expected return on plan assets (percent) | 7.00% | 7.00% | 7.50% |
Medical and Life Insurance Benefits [Member] | |||
Assumptions used in computing benefit plan obligations | |||
Discount rate (percent) | 4.04% | 3.96% | |
Assumptions used in computing benefit plan expense | |||
Discount rate (percent) | 3.96% | 4.09% | 4.67% |
Assumed health care cost trend rates | |||
Present rate (percent) | 7.25% | 7.25% | |
Defined Benefit Plan, Ultimate Health Care Cost Trend Rate | 5.00% | 5.00% |
Pension and Other Postretirem74
Pension and Other Postretirement Benefits (Textual) (Details) $ in Millions | 12 Months Ended |
Apr. 30, 2017USD ($) | |
Pension Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2018 | $ 35 |
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive loss into pension expense in 2018 | 1 |
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive loss into pension expense in 2018 | 21 |
Medical and Life Insurance Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Expected contribution to benefit plans in 2018 | 3 |
Estimated amount of prior service cost that will be amortized from accumulated other comprehensive loss into pension expense in 2018 | 3 |
Estimated amount of net actuarial loss that will be amortized from accumulated other comprehensive loss into pension expense in 2018 | $ 1 |
Pension and Other Postretirem75
Pension and Other Postretirement Benefits (Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Compensation and Retirement Disclosure [Abstract] | |||
Expense for matching contributions | $ 11 | $ 11 | $ 10 |
Stock-Based Compensation (Sched
Stock-Based Compensation (Schedule of Stock Options and SSARs) (Details) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Apr. 30, 2017USD ($)$ / sharesshares | |
Stock Options and SSARs, Number of Underlying Shares [Roll Forward] | |
Stock options and SSARs oustanding, Beginning balance (shares) | shares | 6,852 |
Stock options and SSARs outstanding, Granted (shares) | shares | 779 |
Stock options and SSARs outstanding, Exercised (shares) | shares | (1,005) |
Stock options and SSARs outstanding, Forfeited or expired (shares) | shares | (11) |
Stock options and SSARs oustanding, Ending balance (shares) | shares | 6,615 |
Stock Options and SSARs, Weighted Average Exercise Price [Roll Forward] | |
Stock options and SSARs outstanding, Weighted Average Exercise Price Per Award, Beginning balance (dollars per share) | $ / shares | $ 28.42 |
Stock options and SSARs outstanding, Weighted Average Exercise Price Per Award, Granted (dollars per share) | $ / shares | 49.01 |
Stock options and SSARs outstanding, Weighted Average Exercise Price Per Award, Exercised (dollars per share) | $ / shares | 19.49 |
Stock options and SSARs outstanding, Weighted Average Exercise Price Per Award, Forfeited or expired (dollars per share) | $ / shares | 46.79 |
Stock options and SSARs outstanding, Weighted Average Exercise Price Per Award, Ending balance (dollars per share) | $ / shares | $ 32.17 |
Stock options and SSARs outstanding, Weighted Average Remaining Contractual Term (years) | 4 years 11 months 26 days |
Stock options and SSARs outstanding, Aggregate Intrinsic Value | $ | $ 104 |
Stock options and SSARs Exercisable (shares) | shares | 4,390 |
Stock options and SSARs Exercisable, Weighted Average Exercise Price Per Award (dollars per share) | $ / shares | $ 23.75 |
Stock options and SSARs Exercisable, Weighted Average Remaining Contractual Term (years) | 3 years 6 months 29 days |
Stock options and SSARs Exercisable, Aggregate Intrinsic Value | $ | $ 103 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options and SSARs Fair Value Assumptions) (Details) | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Assumptions used for fair value estimation | |||
Risk-free interest rate | 1.40% | 2.10% | 2.20% |
Expected volatility | 16.30% | 19.10% | 22.30% |
Expected dividend yield | 1.60% | 1.60% | 1.70% |
Expected term (years) | 7 years | 6 years 9 months | 6 years 9 months |
Stock-Based Compensation (Sch78
Stock-Based Compensation (Schedule of Changes in the Number of Underlying Shares) (Details) - Restricted Stock [Member] shares in Thousands | 12 Months Ended |
Apr. 30, 2017$ / sharesshares | |
Number of Underlying Shares [Roll Forward] | |
Number of shares outstanding, Beginning balance (shares) | shares | 547 |
Number of shares outstanding, Granted (shares) | shares | 134 |
Number of shares outstanding, Adjusted for dividends or performance (shares) | shares | (31) |
Number of shares outstanding, Vested (shares) | shares | (153) |
Number of shares outstanding, Forfeited (shares) | shares | (5) |
Number of shares outstanding, Ending balance (shares) | shares | 492 |
Weighted Average Fair Value at Grant Date [Roll Forward] | |
Weighted Average Fair Value at Grant Date, Beginning balance (dollars per share) | $ / shares | $ 42.61 |
Weighted Average Fair Value at Grant Date, Granted (dollars per share) | $ / shares | 48.44 |
Weighted Average Fair Value at Grant Date, Adjusted for dividends or performance (dollars per share) | $ / shares | 47.45 |
Weighted Average Fair Value at Grant Date, Vested (dollars per share) | $ / shares | 36.71 |
Weighted Average Fair Value at Grant Date, Forfeited (dollars per share) | $ / shares | 44.27 |
Weighted Average Fair Value at Grant Date, Ending balance (dollars per share) | $ / shares | $ 45.71 |
Stock-Based Compensation (Textu
Stock-Based Compensation (Textual) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
The total intrinsic value of options and SSARs exercised | $ 28 | $ 47 | $ 35 |
Stock options and SSARs award vesting period (years) | 3 years | ||
Stock options and SSARs award expiration period (years) | 7 years | ||
Grant-date fair value per award (dollars per share) | $ 7.16 | $ 9.53 | $ 9.84 |
Stock-based incentive awards on a pre-tax | $ 14 | $ 15 | $ 15 |
Compensation expense partially offset by deferred income tax benefits | 5 | 6 | 6 |
Total unrecognized compensation cost related to non-vested stock-based compensation | $ 10 | ||
Unrecognized compensation cost, weighted-average period of recognition (years) | 1 year 4 months 24 days | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares outstanding under Restricted stock units (shares) | 492 | ||
Weighted-average remaining restriction period (years) | 1 year 2 months 12 days | ||
Total fair value of RSUs, restricted stock, and DSUs vested | $ 8 | $ 10 | $ 11 |
Omnibus Compensation Plan 2004 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized under 2013 Omnibus Compensation Plan (shares) | 16,600 | ||
Shares issued under 2013 Omnibus Compensation Plan (shares) | 12,710 |
Common Stock (Details)
Common Stock (Details) - shares shares in Thousands | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Class of Stock [Line Items] | |||
Beginning balance | 395,484 | 417,400 | 426,910 |
Acquisition of treasury stock | (11,876) | (22,828) | (10,240) |
Stock issued under compensation plans | 478 | 912 | 730 |
Ending balance | 384,086 | 395,484 | 417,400 |
Common stock, Class A, voting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 169,060 | 168,926 | 168,924 |
Acquisition of treasury stock | (77) | (114) | (171) |
Stock issued under compensation plans | 68 | 248 | 173 |
Ending balance | 169,051 | 169,060 | 168,926 |
Common Stock, Class B, nonvoting [Member] | |||
Class of Stock [Line Items] | |||
Beginning balance | 226,424 | 248,474 | 257,986 |
Acquisition of treasury stock | (11,799) | (22,714) | (10,069) |
Stock issued under compensation plans | 410 | 664 | 557 |
Ending balance | 215,035 | 226,424 | 248,474 |
Common Stock Stock Split (Detai
Common Stock Stock Split (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Apr. 30, 2017 | Apr. 30, 2016 | |
Class of Stock [Line Items] | ||
Adjustments to Additional Paid in Capital, Stock Split | $ 0 | |
Common stock, par value | $ 0.15 | |
Common stock, Class A, voting [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 170,000,000 | 85,000,000 |
Common stock, shares issued | 170,000,000 | 85,000,000 |
Common stock, par value | $ 0.15 | $ 0.15 |
Common Stock, Class B, nonvoting [Member] | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 400,000,000 | |
Common stock, shares issued | 284,626,000 | 142,313,000 |
Common stock, par value | $ 0.15 | $ 0.15 |
Additional Paid-in Capital [Member] | ||
Class of Stock [Line Items] | ||
Adjustments to Additional Paid in Capital, Stock Split | $ 34 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Net income available to common stockholders | $ 669 | $ 1,067 | $ 684 |
Share data (in thousands): | |||
Basic average common shares outstanding (shares) | 387,708 | 405,953 | 423,185 |
Dilutive effect of stock-based awards (shares) | 2,753 | 2,607 | 2,980 |
Diluted average common shares outstanding (shares) | 390,461 | 408,560 | 426,165 |
Basic earnings per share (dollars per share) | $ 1.72 | $ 2.63 | $ 1.62 |
Diluted earnings per share (dollars per share) | $ 1.71 | $ 2.61 | $ 1.60 |
Antidilutive common stock-based awards excluded from calculation of diluted earnings per share (shares) | 1,716 | 905 | 723 |
Income Taxes (Schedule of Incom
Income Taxes (Schedule of Income from U.S. and Foreign Operations) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Domestic and Foreign components of our Income before Income taxes | |||
United States | $ 806 | $ 1,184 | $ 912 |
Foreign | 127 | 305 | 90 |
Income before income taxes | $ 933 | $ 1,489 | $ 1,002 |
Income Taxes (Deferred Tax Asse
Income Taxes (Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Deferred tax assets: | ||
Postretirement and other benefits | $ 173 | $ 183 |
Accrued liabilities and other | 17 | 10 |
Inventories | 27 | 26 |
Loss and credit carryforwards | 44 | 39 |
Valuation allowance | (30) | (25) |
Total deferred tax assets, net | 231 | 233 |
Deferred tax liabilities: | ||
Intangible assets | (262) | (225) |
Property, plant, and equipment | (90) | (83) |
Other | (15) | (9) |
Total deferred tax liabilities | (367) | (317) |
Net deferred tax liability | $ (136) | $ (84) |
Income Taxes (Components of Inc
Income Taxes (Components of Income Tax Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Current: | |||
U.S. federal | $ 226 | $ 347 | $ 259 |
Foreign | 40 | 47 | 42 |
State and local | 8 | 18 | 11 |
Current income tax expense | 274 | 412 | 312 |
Deferred: | |||
U.S. federal | (1) | 24 | 15 |
Foreign | (9) | (17) | (11) |
State and local | 0 | 3 | 2 |
Deferred income taxes expense | (10) | 10 | 6 |
Total income tax expense | $ 264 | $ 422 | $ 318 |
Income Taxes (Effective Tax Rat
Income Taxes (Effective Tax Rate Reconciliation) (Details) | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Reconciles our effective tax rate to the federal statutory tax rate in the United States | |||
U.S. federal statutory rate | 35.00% | 35.00% | 35.00% |
State taxes, net of U.S. federal tax benefit | 0.90% | 1.00% | 1.00% |
Income taxed at other than U.S. federal statutory rate | (1.70%) | (2.50%) | (0.50%) |
Tax benefit from U.S. manufacturing | (2.40%) | (2.40%) | (2.50%) |
Tax impact of sale of business | 0.00% | (1.10%) | 0.00% |
Amortization of deferred tax benefit from intercompany transactions | (1.70%) | (1.60%) | (1.60%) |
Excess tax benefits from stock-based awards | (1.00%) | 0.00% | 0.00% |
Other, net | (0.80%) | (0.10%) | 0.30% |
Effective rate | 28.30% | 28.30% | 31.70% |
Income Taxes (Unrecognized Tax
Income Taxes (Unrecognized Tax Benefits) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 9 | $ 13 | $ 11 |
Additions for tax positions provided in prior periods | 2 | 1 | 2 |
Additions for tax positions provided in current period | 0 | 0 | 1 |
Decreases for tax positions provided in prior years | (2) | (4) | (1) |
Settlements of tax positions in the current period | 0 | (1) | 0 |
Unrecognized tax benefits at end of year | $ 9 | $ 9 | $ 13 |
Income Taxes (Operating Loss Ca
Income Taxes (Operating Loss Carryforwards) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Operating Loss Carryforwards [Line Items] | ||
Valuation allowance | $ 30 | $ 25 |
Loss Carryforwards, Various, Valuation Allowance | 8 | 7 |
Loss Carryforwards, Various | 43 | |
Not Subject to Expiration [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss Carryforwards, Various, Valuation Allowance | 2 | |
Loss Carryforwards, Various | 14 | |
Not Subject to Expiration [Member] | Brazil [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses in Brazil, valuation allowance | 17 | 12 |
Net operating losses | 49 | |
Not Subject to Expiration [Member] | UNITED KINGDOM | ||
Operating Loss Carryforwards [Line Items] | ||
Non-trading loss carryforward, valuation allowance | 5 | $ 6 |
Non-trading loss carryforward | 27 | |
Subject to Expiration [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Loss Carryforwards, Various, Valuation Allowance | 6 | |
Loss Carryforwards, Various | 29 | |
Subject to Expiration [Member] | FINLAND | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating losses | $ 65 |
Income Taxes (Deferred Tax Liab
Income Taxes (Deferred Tax Liabilities Not Recognized) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Income Tax Disclosure [Abstract] | ||
Undistributed earnings of foreign subsidiaries | $ 1,053 | $ 1,005 |
Deferred Tax Liability Not Recognized, Amount of Unrecognized Deferred Tax Liability, Undistributed Earnings of Foreign Subsidiaries | $ 222 | $ 222 |
Income Taxes (Textual) (Details
Income Taxes (Textual) (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | Apr. 30, 2014 | May 01, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred Income, Tax Benefit of Intercompany Transfer of Assets, Before Amortization | $ 95 | ||||
Other Income Tax Expense (Benefit), Continuing Operations | $ 16 | $ 16 | $ 15 | 5 | |
Deferred Tax Assets, Valuation Allowance | 30 | 25 | |||
Gross unrecognized tax benefits | 9 | 9 | $ 13 | $ 11 | |
Reduction in effective income tax rate if recognized | 6 | ||||
Estimated increase in unrecognized tax benefits in next 12 months as a result of net tax positions taken | 0 | ||||
Deferred benefit – tax (Note 13) | $ 43 | $ 59 | |||
Scenario, Forecast [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 | $ 27 |
Accumulated Other Comprehensi91
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | $ (390) | $ (350) | |
Currency translation adjustments | (73) | (23) | $ (114) |
Cash flow hedge adjustments | 0 | (17) | 32 |
Postretirement benefits adjustments | 33 | (10) | (30) |
Net other comprehensive income (loss) | (40) | (50) | (112) |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | (204) | (131) | |
Net other comprehensive income (loss) | (73) | (23) | (114) |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | 11 | 11 | |
Net other comprehensive income (loss) | 0 | (17) | 32 |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | (197) | (230) | |
Net other comprehensive income (loss) | $ 33 | $ (10) | $ (30) |
Accumulated Other Comprehensi92
Accumulated Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | ||
Before Tax: | ||||
Net other comprehensive income (loss) | $ (14) | $ (69) | $ (113) | |
Tax Effect: | ||||
Net other comprehensive income (loss) | (26) | 19 | 1 | |
Net of Tax: | ||||
Net other comprehensive income (loss) | (40) | (50) | (112) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | (71) | (22) | (120) | |
Reclassification to earnings | 3 | 0 | 0 | |
Net other comprehensive income (loss) | (68) | (22) | (120) | |
Tax Effect: | ||||
Net gain (loss) | (4) | (1) | 6 | |
Reclassification to earnings | (1) | 0 | 0 | |
Net other comprehensive income (loss) | (5) | (1) | 6 | |
Net of Tax: | ||||
Net gain (loss) | (75) | (23) | (114) | |
Reclassification to earnings | 2 | 0 | 0 | |
Net other comprehensive income (loss) | (73) | (23) | (114) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 41 | 30 | 96 | |
Reclassification to earnings | [1] | (40) | (60) | (41) |
Net other comprehensive income (loss) | 1 | (30) | 55 | |
Tax Effect: | ||||
Net gain (loss) | (17) | (10) | (40) | |
Reclassification to earnings | [1] | 16 | 23 | 17 |
Net other comprehensive income (loss) | (1) | 13 | (23) | |
Net of Tax: | ||||
Net gain (loss) | 24 | 20 | 56 | |
Reclassification to earnings | [1] | (24) | (37) | (24) |
Net other comprehensive income (loss) | 0 | (17) | 32 | |
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||
Before Tax: | ||||
Net gain (loss) | 28 | (47) | (70) | |
Reclassification to earnings | [2] | 25 | 30 | 22 |
Net other comprehensive income (loss) | 53 | (17) | (48) | |
Tax Effect: | ||||
Net gain (loss) | (10) | 19 | 26 | |
Reclassification to earnings | [2] | (10) | (12) | (8) |
Net other comprehensive income (loss) | (20) | 7 | 18 | |
Net of Tax: | ||||
Net gain (loss) | 18 | (28) | (44) | |
Reclassification to earnings | [2] | 15 | 18 | 14 |
Net other comprehensive income (loss) | $ 33 | $ (10) | $ (30) | |
[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 9, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 9 due to immateriality). |
Supplemental Information (Net S
Supplemental Information (Net Sales by Product Category) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Net sales: | |||
Net sales | $ 2,994 | $ 3,089 | $ 3,134 |
Spirits [Member] | |||
Net sales: | |||
Net sales | 2,805 | 2,901 | 2,955 |
Wine [Member] | |||
Net sales: | |||
Net sales | $ 189 | $ 188 | $ 179 |
Supplemental Information (Net94
Supplemental Information (Net Sales by Geography) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |
Net sales: | |||
Net sales | $ 2,994 | $ 3,089 | $ 3,134 |
UNITED STATES | |||
Net sales: | |||
Net sales | 1,444 | 1,491 | 1,445 |
Europe [Member] | |||
Net sales: | |||
Net sales | 770 | 834 | 847 |
Australia [Member] | |||
Net sales: | |||
Net sales | 151 | 153 | 175 |
Other Countries [Member] | |||
Net sales: | |||
Net sales | $ 629 | $ 611 | $ 667 |
Supplemental Information (Textu
Supplemental Information (Textual) (Details) - USD ($) $ in Millions | Apr. 30, 2017 | Apr. 30, 2016 |
Non-US [Member] | ||
Segment Reporting Information [Line Items] | ||
Net book value of property, plant, and equipment located in Mexico | $ 96 | $ 59 |
Gain on Sale of Business (Detai
Gain on Sale of Business (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | Mar. 01, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Not Discontinued Operations, Transaction Costs | $ 9 | |||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 0 | $ 485 | $ 0 | |
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Consideration | $ 543 | |||
Disposal Group, Including Discontinued Operation, Assets, Current | 49 | |||
Disposal Group, Including Discontinued Operation, Inventory, Current | 11 | |||
Disposal Group, Including Discontinued Operation, Goodwill, Current | 16 | |||
Disposal Group, Including Discontinued Operation, Intangible Assets, Current | $ 22 |
Acquisition of Business (Detail
Acquisition of Business (Details) - BenRiach [Member] £ in Millions, $ in Millions | Nov. 17, 2016GBP (£) | Nov. 17, 2016USD ($) | Jun. 01, 2016GBP (£) | Jun. 01, 2016USD ($) |
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred and Assumed Debt and Transaction Related Obligations | $ 407 | |||
Business Combination, Consideration Transferred | 341 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Debt and Transaction Related Obligations | 66 | |||
Payments to Acquire Businesses, Gross | $ 307 | |||
Business Acquisition, Percentage of Voting Interests Acquired | 10.00% | 10.00% | 90.00% | |
Business Combination, Consideration Transferred, Liabilities Incurred | £ 24 | $ 34 | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 10.00% | |||
Payments to Noncontrolling Interests | £ 24 | $ 30 |
Acquisition of Business Purchas
Acquisition of Business Purchase Price Allocation (Details) - USD ($) $ in Millions | Jun. 01, 2016 | Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 753 | $ 590 | $ 607 | |
BenRiach [Member] | ||||
Business Acquisition [Line Items] | ||||
Business Combination, Consideration Transferred | $ 341 | |||
Accounts receivable | 11 | |||
Inventories | 158 | |||
Other current assets | 1 | |||
Property, plant, and equipment | 19 | |||
Goodwill | 183 | |||
Trademarks and brand names | 65 | |||
Total assets | 437 | |||
Accounts payable and accrued expenses | 12 | |||
Short-term borrowings | 59 | |||
Deferred tax liabilities | 25 | |||
Total liabilities | 96 | |||
Net assets acquired | $ 341 |
Schedule II - Valuation and Q99
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||||
Apr. 30, 2017 | Apr. 30, 2016 | Apr. 30, 2015 | |||
Allowance for Doubtful Accounts [Member] | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | $ 9 | $ 10 | $ 9 | ||
Additions Charged to Costs and Expenses | 0 | 1 | 2 | ||
Additions Charged to Other Accounts | 0 | 0 | 0 | ||
Deductions | 2 | [1] | 2 | [1] | 1 |
Balance at End of Period | 7 | 9 | 10 | ||
Valuation Allowance of Deferred Tax Assets [Member] | |||||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||||
Balance at Beginning of Period | 25 | 27 | 34 | ||
Additions Charged to Costs and Expenses | 5 | 3 | 2 | ||
Additions Charged to Other Accounts | 2 | 0 | 0 | ||
Deductions | 2 | 5 | 9 | ||
Balance at End of Period | $ 30 | $ 25 | $ 27 | ||
[1] | Doubtful accounts written off, net of recoveries. |