Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jan. 31, 2022 | Feb. 28, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jan. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-00123 | |
Entity Registrant Name | Brown-Forman Corporation | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 61-0143150 | |
Entity Address, Address Line One | 850 Dixie Highway | |
Entity Address, City or Town | Louisville, | |
Entity Address, State or Province | KY | |
Entity Address, Postal Zip Code | 40210 | |
City Area Code | 502 | |
Local Phone Number | 585-1100 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0000014693 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --04-30 | |
Common stock, Class A, voting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class A Common Stock (voting), $0.15 par value | |
Trading Symbol | BFA | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 169,175,352 | |
Common stock, Class B, nonvoting [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Class B Common Stock (nonvoting), $0.15 par value | |
Trading Symbol | BFB | |
Security Exchange Name | NYSE | |
Entity Common Stock, Shares Outstanding | 309,795,475 | |
1.20% notes, due July 7, 2026 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 1.200% Notes due 2026 | |
Trading Symbol | BF26 | |
Security Exchange Name | NYSE | |
2.60% notes, due July 7, 2028 [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | 2.600% Notes due 2028 | |
Trading Symbol | BF28 | |
Security Exchange Name | NYSE |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Income Statement [Abstract] | ||||
Sales | $ 1,365 | $ 1,222 | $ 3,831 | $ 3,481 |
Excise taxes | 328 | 311 | 894 | 832 |
Net sales | 1,037 | 911 | 2,937 | 2,649 |
Cost of sales | 415 | 361 | 1,172 | 1,053 |
Gross profit | 622 | 550 | 1,765 | 1,596 |
Advertising expenses | 117 | 121 | 311 | 278 |
Selling, general, and administrative expenses | 162 | 157 | 495 | 460 |
Gain on sale of business | 0 | 0 | 0 | (127) |
Other expense (income), net | (4) | (9) | 1 | (13) |
Operating income | 347 | 281 | 958 | 998 |
Non-operating postretirement expense | 0 | 1 | 2 | 4 |
Interest income | (1) | 0 | (3) | (1) |
Interest expense | 20 | 21 | 61 | 61 |
Income before income taxes | 328 | 259 | 898 | 934 |
Income taxes | 69 | 40 | 211 | 151 |
Net income | $ 259 | $ 219 | $ 687 | $ 783 |
Earnings per share: | ||||
Basic (dollars per share) | $ 0.54 | $ 0.46 | $ 1.43 | $ 1.64 |
Diluted (dollars per share) | $ 0.54 | $ 0.45 | $ 1.43 | $ 1.63 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 259 | $ 219 | $ 687 | $ 783 |
Other comprehensive income (loss), net of tax: | ||||
Currency translation adjustments | (27) | 47 | (49) | 113 |
Cash flow hedge adjustments | 16 | (33) | 40 | (72) |
Postretirement benefits adjustments | 5 | 5 | 13 | 17 |
Net other comprehensive income (loss) | (6) | 19 | 4 | 58 |
Comprehensive income | $ 253 | $ 238 | $ 691 | $ 841 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Assets | ||
Cash and cash equivalents | $ 812 | $ 1,150 |
Accounts receivable, less allowance for doubtful accounts of $7 at April 30 and $6 at January 31 | 796 | 753 |
Inventories: | ||
Barreled whiskey | 1,126 | 1,101 |
Finished goods | 302 | 323 |
Work in process | 220 | 199 |
Raw materials and supplies | 121 | 128 |
Total inventories | 1,769 | 1,751 |
Other current assets | 276 | 263 |
Total current assets | 3,653 | 3,917 |
Property, plant, and equipment, net | 818 | 832 |
Goodwill | 771 | 779 |
Other intangible assets | 652 | 676 |
Deferred tax assets | 67 | 70 |
Other assets | 265 | 248 |
Total assets | 6,226 | 6,522 |
Liabilities | ||
Accounts payable and accrued expenses | 629 | 679 |
Dividends payable | 90 | 0 |
Accrued income taxes | 64 | 34 |
Short-term borrowings | 16 | 205 |
Current portion of long-term debt | 250 | 0 |
Total current liabilities | 1,049 | 918 |
Long-term debt | 2,061 | 2,354 |
Deferred tax liabilities | 190 | 169 |
Accrued pension and other postretirement benefits | 216 | 219 |
Other liabilities | 191 | 206 |
Total liabilities | 3,707 | 3,866 |
Commitments and contingencies | ||
Stockholders' Equity | ||
Additional paid-in capital | 3 | 0 |
Retained earnings | 3,091 | 3,243 |
Accumulated other comprehensive income (loss), net of tax | (418) | (422) |
Treasury stock, at cost (5,803,000 and 5,613,000 shares at April 30 and January 31, respectively) | (229) | (237) |
Total stockholders' equity | 2,519 | 2,656 |
Total liabilities and stockholders' equity | 6,226 | 6,522 |
Common stock, Class A, voting [Member] | ||
Stockholders' Equity | ||
Common stock | 25 | 25 |
Common stock, Class B, nonvoting [Member] | ||
Stockholders' Equity | ||
Common stock | $ 47 | $ 47 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 6 | $ 7 |
Treasury stock, shares | 5,613,000 | 5,803,000 |
Class of Stock [Line Items] | ||
Current portion of long-term debt, Carrying Amount | $ 250 | $ 0 |
Common Class A [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 170,000,000 | 170,000,000 |
Common stock, shares issued | 170,000,000 | 170,000,000 |
Nonvoting Common Stock [Member] | ||
Class of Stock [Line Items] | ||
Common stock, par value | $ 0.15 | $ 0.15 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 314,532,000 | 314,532,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 687 | $ 783 |
Adjustments to reconcile net income to net cash provided by operations: | ||
Gain on sale of business | 0 | (127) |
Non-cash asset write-downs | 9 | 0 |
Depreciation and amortization | 60 | 58 |
Stock-based compensation expense | 11 | 9 |
Deferred income tax provision (benefit) | (3) | (56) |
Other, net | 15 | (15) |
Changes in assets and liabilities, excluding the effects of sale of business: | ||
Accounts receivable | (59) | (219) |
Inventories | (33) | (14) |
Other current assets | 0 | 30 |
Accounts payable and accrued expenses | (32) | 68 |
Accrued income taxes | 30 | 16 |
Other operating assets and liabilities | (2) | 39 |
Cash provided by operating activities | 683 | 572 |
Cash flows from investing activities: | ||
Proceeds from sale of business | 0 | 177 |
Proceeds from sale of property, plant, and equipment | 2 | 0 |
Acquisition of business, net of cash acquired | 0 | (14) |
Additions to property, plant, and equipment | (62) | (41) |
Computer software expenditures | (3) | (2) |
Cash provided by (used for) investing activities | (63) | 120 |
Cash flows from financing activities: | ||
Proceeds from short-term borrowings, maturities greater than 90 days | 0 | 344 |
Repayments of short-term borrowings, maturities greater than 90 days | 0 | (342) |
Net change in short-term borrowings, maturities of 90 days or less | (181) | (25) |
Payments of withholding taxes related to stock-based awards | (8) | (18) |
Dividends paid | (741) | (253) |
Cash used for financing activities | (930) | (294) |
Effect of exchange rate changes on cash and cash equivalents | (28) | 33 |
Net increase (decrease) in cash and cash equivalents | (338) | 431 |
Cash and cash equivalents, beginning of period | 1,150 | 675 |
Cash and cash equivalents, end of period | $ 812 | $ 1,106 |
Condensed Consolidated Financia
Condensed Consolidated Financial Statements | 9 Months Ended |
Jan. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Condensed Consolidated Financial Statements | Condensed Consolidated Financial Statements We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments (unless otherwise indicated), necessary for a fair statement of our financial results for the periods presented in these financial statements. The results for interim periods are not necessarily indicative of future or annual results. We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our Annual Report on Form 10-K for the fiscal year ended April 30, 2021 (2021 Form 10-K). We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2021 Form 10-K. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Jan. 31, 2022 | |
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: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions, except per share amounts) 2021 2022 2021 2022 Net income available to common stockholders $ 219 $ 259 $ 783 $ 687 Share data (in thousands): Basic average common shares outstanding 478,599 478,887 478,471 478,844 Dilutive effect of stock-based awards 2,237 1,680 2,194 1,755 Diluted average common shares outstanding 480,836 480,567 480,665 480,599 Basic earnings per share $ 0.46 $ 0.54 $ 1.64 $ 1.43 Diluted earnings per share $ 0.45 $ 0.54 $ 1.63 $ 1.43 We excluded common stock-based awards for approximately 298,000 shares and 789,000 shares from the calculation of diluted earnings per share for the three months ended January 31, 2021 and 2022, respectively. We excluded common stock-based awards for approximately 211,000 shares and 623,000 shares from the calculation of diluted earnings per share for the nine months ended January 31, 2021 and 2022, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method. |
Inventories
Inventories | 9 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | InventoriesWe value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. If the LIFO method had not been used, inventories at current cost would have been $353 million higher than reported as of April 30, 2021, and $388 million higher than reported as of January 31, 2022. Changes in the LIFO valuation reserve for interim periods are based on an allocation of the projected change for the entire fiscal year, recognized proportionately over the remainder of the fiscal year. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 9 Months Ended |
Jan. 31, 2022 | |
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 includes no accumulated impairment losses) and other intangible assets during the nine months ended January 31, 2022: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2021 $ 779 $ 676 Foreign currency translation adjustment (8) (24) Balance at January 31, 2022 $ 771 $ 652 Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jan. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies We operate in a litigious environment, and we are sued in the normal course of business. Sometimes plaintiffs seek substantial damages. Significant judgment is required in predicting the outcome of these suits and claims, many of which take years to adjudicate. We accrue estimated costs for a contingency when we believe that a loss is probable and we can make a reasonable estimate of the loss, and then adjust the accrual as appropriate to reflect changes in facts and circumstances. We do not believe it is reasonably possible that these 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 were recorded as of January 31, 2022. 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 $11 million (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. As of January 31, 2022, our actual exposure under the guaranty of the importer’s obligation was approximately $4 million. We also have accounts receivable from that importer of approximately $9 million at January 31, 2022, 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. On May 30, 2019, we notified Bacardi Martini Ltd. (Bacardi) of our intention not to renew the terms of our United Kingdom (U.K.) Cost Sharing Agreement (the Agreement) whereby Bacardi provided certain services (e.g., warehousing and logistics, sales, reporting, treasury, tax, and other services) and Brown-Forman and Bacardi split the associated overhead for those services. For purposes of conducting business, Brown-Forman and Bacardi established a U.K. trade name, “Bacardi Brown-Forman Brands,” through which our products and Bacardi’s products were sold in the U.K. On a monthly basis, Bacardi would remit to us the cash representing revenues from sales of our products, net of our agreed contributions for overhead costs under the Agreement. On April 30, 2020, the Agreement expired according to its terms. Following delivery of our notice and upon expiration of the Agreement, Bacardi alleged that it was entitled to approximately £49 million under the principle of commercial agency in the U.K., as well as additional compensation for the winding up of business conducted under the Agreement and for remitting the associated funds owed to us. From monthly settlements following the expiration of the Agreement, Bacardi withheld over £50 million owed to us, effectively bypassing the dispute resolution process under the Agreement. In response to Bacardi’s actions, we initiated a lawsuit on August 20, 2020, in the Commercial Court in the U.K. seeking reimbursement of the amounts wrongfully withheld (the Commercial Court Action). Shortly thereafter, Bacardi filed a demand for arbitration seeking a determination that it was entitled to compensation as a commercial agent and for additional compensation for the work completed following the expiration of the Agreement (the Arbitration). Since it was raised, we have disputed Bacardi’s claim of commercial agency compensation and issued a demand that Bacardi adhere to the dispute resolution process mandated by the Agreement. The ruling for the Commercial Court Action was issued on May 19, 2021, in which the Court declined to order Bacardi to return the amounts withheld pending the outcome of the Arbitration. The Arbitration took place the week of July 12, 2021, and the decision was rendered December 8, 2021. The decision confirmed that Bacardi was not entitled to compensation as a commercial agent but was awarded an immaterial amount for its work in winding up the business. In December 2021, Bacardi remitted £47 million related to this matter. |
Debt
Debt | 9 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our long-term debt (net of unamortized discount and issuance costs) consists of: (Principal and carrying amounts in millions) April 30, 2021 January 31, 2.250% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 250 3.500% senior notes, $300 principal amount, due April 15, 2025 298 298 1.200% senior notes, €300 principal amount, due July 7, 2026 362 333 2.600% senior notes, £300 principal amount, due July 7, 2028 415 399 4.000% senior notes, $300 principal amount, due April 15, 2038 294 295 3.750% senior notes, $250 principal amount, due January 15, 2043 248 248 4.500% senior notes, $500 principal amount, due July 15, 2045 488 488 2,354 2,311 Less current portion — 250 $ 2,354 $ 2,061 Our short-term borrowings of $205 million as of April 30, 2021 included of $195 million of borrowings under our commercial paper program. There were no borrowings under that program as of January 31, 2022 . (Dollars in millions) April 30, 2021 January 31, Commercial paper $195 $— Average interest rate 0.16% —% Average remaining days to maturity 24 0 |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Jan. 31, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table shows the changes in stockholders’ equity by quarter during the nine months ended January 31, 2021: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2020 $ 25 $ 47 $ — $ 2,708 $ (547) $ (258) $ 1,975 Net income 324 324 Net other comprehensive income (loss) 24 24 Declaration of cash dividends (167) (167) Stock-based compensation expense 3 3 Stock issued under compensation plans 10 10 Loss on issuance of treasury stock issued under compensation plans (3) (16) (19) Balance at July 31, 2020 25 47 — 2,849 (523) (248) 2,150 Net income 240 240 Net other comprehensive income (loss) 15 15 Stock-based compensation expense 3 3 Stock issued under compensation plans 5 5 Loss on issuance of treasury stock issued under compensation plans (3) (7) (10) Balance at October 31, 2020 25 47 — 3,082 (508) (243) 2,403 Net income 219 219 Net other comprehensive income (loss) 19 19 Declaration of cash dividends (172) (172) Stock-based compensation expense 3 3 Stock issued under compensation plans 3 3 Loss on issuance of treasury stock issued under compensation plans (3) (4) (7) Balance at January 31, 2021 $ 25 $ 47 $ — $ 3,125 $ (489) $ (240) $ 2,468 The following table shows the changes in stockholders’ equity by quarter during the nine months ended January 31, 2022: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2021 $ 25 $ 47 $ — $ 3,243 $ (422) $ (237) $ 2,656 Net income 192 192 Net other comprehensive income (loss) 8 8 Declaration of cash dividends (172) (172) Stock-based compensation expense 4 4 Stock issued under compensation plans 5 5 Loss on issuance of treasury stock issued under compensation plans (2) (8) (10) Balance at July 31, 2021 25 47 2 3,255 (414) (232) 2,683 Net income 236 236 Net other comprehensive income (loss) 2 2 Stock-based compensation expense 3 3 Stock issued under compensation plans 1 1 Loss on issuance of treasury stock issued under compensation plans (2) (2) Balance at October 31, 2021 25 47 3 3,491 (412) (231) 2,923 Net income 259 259 Net other comprehensive income (loss) (6) (6) Declaration of cash dividends (659) (659) Stock-based compensation expense 4 4 Stock issued under compensation plans 2 2 Loss on issuance of treasury stock issued under compensation plans (4) (4) Balance at January 31, 2022 $ 25 $ 47 $ 3 $ 3,091 $ (418) $ (229) $ 2,519 The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the nine months ended January 31, 2022: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2021 $ (179) $ (16) $ (227) $ (422) Net other comprehensive income (loss) (49) 40 13 4 Balance at January 31, 2022 $ (228) $ 24 $ (214) $ (418) The following table shows the cash dividends declared per share on our Class A and Class B common stock during the nine months ended January 31, 2022: Declaration Date Record Date Payable Date Amount per Share May 27, 2021 June 8, 2021 July 1, 2021 $0.1795 July 22, 2021 September 3, 2021 October 1, 2021 $0.1795 November 18, 2021 December 3, 2021 December 28, 2021 $0.1885 November 18, 2021 December 9, 2021 December 29, 2021 $1.0000 January 25, 2022 March 8, 2022 April 1, 2022 $0.1885 |
Net Sales
Net Sales | 9 Months Ended |
Jan. 31, 2022 | |
Net Sales [Abstract] | |
Net Sales | Net Sales The following table shows our net sales by geography: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 United States $ 425 $ 488 $ 1,334 $ 1,400 Developed International 1 292 318 789 884 Emerging 2 171 196 438 533 Travel Retail 3 12 25 47 74 Non-branded & bulk 4 11 10 41 46 Total $ 911 $ 1,037 $ 2,649 $ 2,937 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are Australia, Germany, the United Kingdom, France, and Canada. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, Brazil, and Russia. 3 Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. 4 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. The following table shows our net sales by product category: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 Whiskey 1 $ 731 $ 835 $ 2,101 $ 2,309 Tequila 2 72 90 224 266 Wine 3 50 54 162 176 Vodka 4 26 29 71 86 Non-branded and bulk 5 11 10 41 46 Rest of portfolio 21 19 50 54 Total $ 911 $ 1,037 $ 2,649 $ 2,937 1 Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft. 2 Includes the Herradura family of brands, el Jimador, New Mix, Pepe Lopez, and Antiguo. 3 Includes Korbel Champagne and Sonoma-Cutrer wines. 4 Includes Finlandia. 5 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling. |
Pension and Other Postretiremen
Pension and Other Postretirement Benefits | 9 Months Ended |
Jan. 31, 2022 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits | Pension and Other Postretirement Benefits The following table shows the components of the net cost of pension and other postretirement benefits recognized for our U.S. benefit plans. Information about similar international plans is not presented due to immateriality. Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 Pension Benefits : Service cost $ 7 $ 7 $ 20 $ 20 Interest cost 6 5 19 16 Expected return on plan assets (12) (11) (35) (34) Amortization of: Prior service cost (credit) — — 1 1 Net actuarial loss 7 6 20 18 Settlement charge — — — 1 Net cost $ 8 $ 7 $ 25 $ 22 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost 1 — 1 1 Amortization of prior service cost (credit) (1) — (2) (1) Net cost $ — $ — $ — $ 1 |
Income Taxes
Income Taxes | 9 Months Ended |
Jan. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Our consolidated interim effective tax rate is based on our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions where we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the fiscal quarter in which the related event or a change in judgment occurs. The expected effective tax rate on ordinary income for the fiscal year is 22.7%, which is greater than the U.S. federal statutory rate of 21.0%, due to (a) state income taxes, (b) the effects of foreign operations, (c) the tax effects of prior intercompany sales of inventory that are recognized at tax rates higher than current statutory tax rates and (d) the impact of intercompany profit elimination on the foreign derived intangible income deduction. The effective tax rate of 23.4% for the nine months ended January 31, 2022, is higher than the expected tax rate of 22.7% on ordinary income for the full fiscal year, primarily due to the true-up of prior-year deferred tax liabilities and the impact of tax rate changes enacted in certain foreign jurisdictions, partially offset by the excess tax benefits related to stock-based compensation. The 23.4% effective tax rate for the nine months ended January 31, 2022, is higher than the effective tax rate of 16.2% for the same period last year, primarily due to (a) the absence of a deferred tax benefit recognized in the prior-year period related to an intercompany transfer of assets, (b) the impact of prior intercompany sales taxed at rates higher than current statutory tax rates, (c) the impact of the intercompany profit eliminations on the foreign derived intangible income deduction, and (d) increased true-ups of prior-year tax liabilities. We continue to assert that the undistributed earnings of most of our foreign subsidiaries are reinvested indefinitely outside the United States. Therefore, no income taxes have been provided for any outside basis differences inherent in these subsidiaries other than those that were subject to the one-time repatriation tax. We previously changed our indefinite reinvestment assertion with respect to current year earnings and prior-year undistributed earnings for select foreign subsidiaries (but not for their outside basis differences). We have accrued applicable taxes for select entities which are not currently reinvested. No further changes have been made to our indefinite reinvestment assertion. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 9 Months Ended |
Jan. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities We use currency derivative contracts to limit our exposure to the foreign currency exchange rate 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 in AOCI until the underlying hedged transaction occurs, at which time we reclassify that amount to earnings. Some of our currency derivatives are not designated as hedges because we use them to partially offset the immediate earnings impact of changes in foreign currency exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings. We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts for all hedged currencies totaling $1,218 million at April 30, 2021, and $860 million at January 31, 2022. The maximum term of outstanding derivative contracts was approximately 36 months at both April 30, 2021, and January 31, 2022. We also use foreign currency-denominated debt instruments to help manage our foreign currency exchange rate risk. We designate a portion of those debt instruments as net investment hedges, which are intended to mitigate foreign currency exposure related to non-U.S. dollar net 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. The amount of foreign currency-denominated debt instruments designated as net investment hedges was $680 million at April 30, 2021, and $676 million at January 31, 2022. At inception, we expect each financial instrument designated as a hedge to be highly effective in offsetting the financial exposure it is designed to mitigate. We also assess the effectiveness on an ongoing basis. If determined to be no longer highly effective, designation and accounting for the instrument as a hedge would be discontinued. We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to take physical 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. The following tables present the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings: Three Months Ended January 31, (Dollars in millions) Classification 2021 2022 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (39) $ 23 Net gain (loss) reclassified from AOCI into earnings Sales 4 2 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ (6) $ 5 Net gain (loss) recognized in earnings Other income (expense), net 4 (1) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ (33) $ 17 Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 1,222 $ 1,365 Other income (expense), net 9 4 Nine Months Ended January 31, (Dollars in millions) Classification 2021 2022 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (73) $ 53 Net gain (loss) reclassified from AOCI into earnings Sales 21 1 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ (11) $ 8 Net gain (loss) recognized in earnings Other income (expense), net 15 (1) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ (66) $ 38 Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 3,481 $ 3,831 Other income (expense), net 13 (1) We expect to reclassify $15 million of deferred net gains on cash flow hedges recorded in AOCI as of January 31, 2022, to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur. The following table presents the fair values of our derivative instruments: April 30, 2021 January 31, 2022 (Dollars in millions) Classification Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Designated as cash flow hedges: Currency derivatives Other current assets $ 4 $ (2) $ 21 $ (3) Currency derivatives Other assets — — 13 (1) Currency derivatives Accrued expenses 4 (18) — (1) Currency derivatives Other liabilities 1 (18) — — Not designated as hedges: Currency derivatives Other current assets 1 — — — Currency derivatives Other assets — — — — Currency derivatives Accrued expenses — — — (1) Currency derivatives Other liabilities — — — — 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 our balance sheets. In our statements 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 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 we monitor regularly, 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. 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 $30 million at April 30, 2021, and $2 million at January 31, 2022. Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheets. The following table summarizes the gross and net amounts of our derivative contracts: (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2021 Derivative assets $ 10 $ (7) $ 3 $ (1) $ 2 Derivative liabilities (38) 7 (31) 1 (30) January 31, 2022 Derivative assets 34 (4) 30 — 30 Derivative liabilities (6) 4 (2) — (2) No cash collateral was received or pledged related to our derivative contracts as of April 30, 2021, or January 31, 2022. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: April 30, 2021 January 31, 2022 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets Cash and cash equivalents $ 1,150 $ 1,150 $ 812 $ 812 Currency derivatives 3 3 30 30 Liabilities Currency derivatives 31 31 2 2 Short-term borrowings 205 205 16 16 Long-term debt (including current portion) 2,354 2,663 2,311 2,537 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 on 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. We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy. We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy. The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. 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). During the nine months ended January 31, 2022, we recognized non-cash impairment charges of $9 million for certain fixed assets. The impairment charges, which were based on our measurements of the estimated fair values of those assets, are categorized as Level 2 within the valuation hierarchy. The remaining carrying amount of those assets is not significant. No other material nonrecurring fair value measurements were required during the periods presented in these financial statements. |
Other Comprehensive Income
Other Comprehensive Income | 9 Months Ended |
Jan. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The following tables show the components of net other comprehensive income (loss): Three Months Ended Three Months Ended January 31, 2021 January 31, 2022 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ 39 $ 8 $ 47 $ (23) $ (4) $ (27) Reclassification to earnings — — — — — — Other comprehensive income (loss), net 39 8 47 (23) (4) (27) Cash flow hedge adjustments: Net gain (loss) on hedging instruments (39) 9 (30) 23 (5) 18 Reclassification to earnings 1 (4) 1 (3) (2) — (2) Other comprehensive income (loss), net (43) 10 (33) 21 (5) 16 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — — — — Reclassification to earnings 2 6 (1) 5 6 (1) 5 Other comprehensive income (loss), net 6 (1) 5 6 (1) 5 Total other comprehensive income (loss), net $ 2 $ 17 $ 19 $ 4 $ (10) $ (6) Nine Months Ended Nine Months Ended January 31, 2021 January 31, 2022 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ 97 $ 16 $ 113 $ (40) $ (9) $ (49) Reclassification to earnings — — — — — — Other comprehensive income (loss), net 97 16 113 (40) (9) (49) Cash flow hedge adjustments: Net gain (loss) on hedging instruments (73) 17 (56) 53 (12) 41 Reclassification to earnings 1 (21) 5 (16) (1) — (1) Other comprehensive income (loss), net (94) 22 (72) 52 (12) 40 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — (1) — (1) Reclassification to earnings 2 23 (6) 17 19 (5) 14 Other comprehensive income (loss), net 23 (6) 17 18 (5) 13 Total other comprehensive income (loss), net $ 26 $ 32 $ 58 $ 30 $ (26) $ 4 1 Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations. 2 For the nine months ended January 31, 2021, $4 of the pre-tax amount of $23 is classified in gain on sale of business in the accompanying condensed consolidated statements of operations. Otherwise, the pre-tax amount for each period is classified as non-operating postretirement expense. |
Inventories (Policies)
Inventories (Policies) | 9 Months Ended |
Jan. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory, Policy [Policy Text Block] | We value some of our consolidated inventories, including most of our U.S. inventories, at the lower of cost, using the last-in, first-out (LIFO) method or market value. |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Policies) | 9 Months Ended |
Jan. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block] | In our statements of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items. |
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block] | Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in our balance sheets. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. We do not net current derivatives with noncurrent derivatives in our balance sheet |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table presents information concerning basic and diluted earnings per share: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions, except per share amounts) 2021 2022 2021 2022 Net income available to common stockholders $ 219 $ 259 $ 783 $ 687 Share data (in thousands): Basic average common shares outstanding 478,599 478,887 478,471 478,844 Dilutive effect of stock-based awards 2,237 1,680 2,194 1,755 Diluted average common shares outstanding 480,836 480,567 480,665 480,599 Basic earnings per share $ 0.46 $ 0.54 $ 1.64 $ 1.43 Diluted earnings per share $ 0.45 $ 0.54 $ 1.63 $ 1.43 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill [Table Text Block] | The following table shows the changes in goodwill (which includes no accumulated impairment losses) and other intangible assets during the nine months ended January 31, 2022: (Dollars in millions) Goodwill Other Intangible Assets Balance at April 30, 2021 $ 779 $ 676 Foreign currency translation adjustment (8) (24) Balance at January 31, 2022 $ 771 $ 652 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | Our long-term debt (net of unamortized discount and issuance costs) consists of: (Principal and carrying amounts in millions) April 30, 2021 January 31, 2.250% senior notes, $250 principal amount, due January 15, 2023 $ 249 $ 250 3.500% senior notes, $300 principal amount, due April 15, 2025 298 298 1.200% senior notes, €300 principal amount, due July 7, 2026 362 333 2.600% senior notes, £300 principal amount, due July 7, 2028 415 399 4.000% senior notes, $300 principal amount, due April 15, 2038 294 295 3.750% senior notes, $250 principal amount, due January 15, 2043 248 248 4.500% senior notes, $500 principal amount, due July 15, 2045 488 488 2,354 2,311 Less current portion — 250 $ 2,354 $ 2,061 |
Schedule of Short-term Debt [Table Text Block] | (Dollars in millions) April 30, 2021 January 31, Commercial paper $195 $— Average interest rate 0.16% —% Average remaining days to maturity 24 0 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Stockholders' Equity Attributable to Parent [Abstract] | |
Schedule of Stockholders Equity [Table Text Block] | The following table shows the changes in stockholders’ equity by quarter during the nine months ended January 31, 2021: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2020 $ 25 $ 47 $ — $ 2,708 $ (547) $ (258) $ 1,975 Net income 324 324 Net other comprehensive income (loss) 24 24 Declaration of cash dividends (167) (167) Stock-based compensation expense 3 3 Stock issued under compensation plans 10 10 Loss on issuance of treasury stock issued under compensation plans (3) (16) (19) Balance at July 31, 2020 25 47 — 2,849 (523) (248) 2,150 Net income 240 240 Net other comprehensive income (loss) 15 15 Stock-based compensation expense 3 3 Stock issued under compensation plans 5 5 Loss on issuance of treasury stock issued under compensation plans (3) (7) (10) Balance at October 31, 2020 25 47 — 3,082 (508) (243) 2,403 Net income 219 219 Net other comprehensive income (loss) 19 19 Declaration of cash dividends (172) (172) Stock-based compensation expense 3 3 Stock issued under compensation plans 3 3 Loss on issuance of treasury stock issued under compensation plans (3) (4) (7) Balance at January 31, 2021 $ 25 $ 47 $ — $ 3,125 $ (489) $ (240) $ 2,468 The following table shows the changes in stockholders’ equity by quarter during the nine months ended January 31, 2022: (Dollars in millions) Class A Common Stock Class B Common Stock Additional Paid-in Capital Retained Earnings AOCI Treasury Stock Total Balance at April 30, 2021 $ 25 $ 47 $ — $ 3,243 $ (422) $ (237) $ 2,656 Net income 192 192 Net other comprehensive income (loss) 8 8 Declaration of cash dividends (172) (172) Stock-based compensation expense 4 4 Stock issued under compensation plans 5 5 Loss on issuance of treasury stock issued under compensation plans (2) (8) (10) Balance at July 31, 2021 25 47 2 3,255 (414) (232) 2,683 Net income 236 236 Net other comprehensive income (loss) 2 2 Stock-based compensation expense 3 3 Stock issued under compensation plans 1 1 Loss on issuance of treasury stock issued under compensation plans (2) (2) Balance at October 31, 2021 25 47 3 3,491 (412) (231) 2,923 Net income 259 259 Net other comprehensive income (loss) (6) (6) Declaration of cash dividends (659) (659) Stock-based compensation expense 4 4 Stock issued under compensation plans 2 2 Loss on issuance of treasury stock issued under compensation plans (4) (4) Balance at January 31, 2022 $ 25 $ 47 $ 3 $ 3,091 $ (418) $ (229) $ 2,519 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The following table shows the change in each component of accumulated other comprehensive income (AOCI), net of tax, during the nine months ended January 31, 2022: (Dollars in millions) Currency Translation Adjustments Cash Flow Hedge Adjustments Postretirement Benefits Adjustments Total AOCI Balance at April 30, 2021 $ (179) $ (16) $ (227) $ (422) Net other comprehensive income (loss) (49) 40 13 4 Balance at January 31, 2022 $ (228) $ 24 $ (214) $ (418) |
Dividends Declared [Table Text Block] | The following table shows the cash dividends declared per share on our Class A and Class B common stock during the nine months ended January 31, 2022: Declaration Date Record Date Payable Date Amount per Share May 27, 2021 June 8, 2021 July 1, 2021 $0.1795 July 22, 2021 September 3, 2021 October 1, 2021 $0.1795 November 18, 2021 December 3, 2021 December 28, 2021 $0.1885 November 18, 2021 December 9, 2021 December 29, 2021 $1.0000 January 25, 2022 March 8, 2022 April 1, 2022 $0.1885 |
Net Sales (Tables)
Net Sales (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Net Sales [Abstract] | |
Disaggregation of Revenue [Table Text Block] | The following table shows our net sales by geography: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 United States $ 425 $ 488 $ 1,334 $ 1,400 Developed International 1 292 318 789 884 Emerging 2 171 196 438 533 Travel Retail 3 12 25 47 74 Non-branded & bulk 4 11 10 41 46 Total $ 911 $ 1,037 $ 2,649 $ 2,937 1 Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are Australia, Germany, the United Kingdom, France, and Canada. 2 Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, Brazil, and Russia. 3 Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. 4 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. The following table shows our net sales by product category: Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 Whiskey 1 $ 731 $ 835 $ 2,101 $ 2,309 Tequila 2 72 90 224 266 Wine 3 50 54 162 176 Vodka 4 26 29 71 86 Non-branded and bulk 5 11 10 41 46 Rest of portfolio 21 19 50 54 Total $ 911 $ 1,037 $ 2,649 $ 2,937 1 Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft. 2 Includes the Herradura family of brands, el Jimador, New Mix, Pepe Lopez, and Antiguo. 3 Includes Korbel Champagne and Sonoma-Cutrer wines. 4 Includes Finlandia. 5 Includes net sales of used barrels, bulk whiskey and wine, and contract bottling. |
Pension and Other Postretirem_2
Pension and Other Postretirement Benefits (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table shows the components of the net cost of pension and other postretirement benefits recognized for our U.S. benefit plans. Information about similar international plans is not presented due to immateriality. Three Months Ended Nine Months Ended January 31, January 31, (Dollars in millions) 2021 2022 2021 2022 Pension Benefits : Service cost $ 7 $ 7 $ 20 $ 20 Interest cost 6 5 19 16 Expected return on plan assets (12) (11) (35) (34) Amortization of: Prior service cost (credit) — — 1 1 Net actuarial loss 7 6 20 18 Settlement charge — — — 1 Net cost $ 8 $ 7 $ 25 $ 22 Other Postretirement Benefits : Service cost $ — $ — $ 1 $ 1 Interest cost 1 — 1 1 Amortization of prior service cost (credit) (1) — (2) (1) Net cost $ — $ — $ — $ 1 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments, Gain (Loss) [Table Text Block] | The following tables present the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings: Three Months Ended January 31, (Dollars in millions) Classification 2021 2022 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (39) $ 23 Net gain (loss) reclassified from AOCI into earnings Sales 4 2 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ (6) $ 5 Net gain (loss) recognized in earnings Other income (expense), net 4 (1) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ (33) $ 17 Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 1,222 $ 1,365 Other income (expense), net 9 4 Nine Months Ended January 31, (Dollars in millions) Classification 2021 2022 Currency derivatives designated as cash flow hedges: Net gain (loss) recognized in AOCI n/a $ (73) $ 53 Net gain (loss) reclassified from AOCI into earnings Sales 21 1 Currency derivatives not designated as hedging instruments: Net gain (loss) recognized in earnings Sales $ (11) $ 8 Net gain (loss) recognized in earnings Other income (expense), net 15 (1) Foreign currency-denominated debt designated as net investment hedge: Net gain (loss) recognized in AOCI n/a $ (66) $ 38 Total amounts presented in the accompanying condensed consolidated statements of operations for line items affected by the net gains (losses) shown above: Sales $ 3,481 $ 3,831 Other income (expense), net 13 (1) |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The following table presents the fair values of our derivative instruments: April 30, 2021 January 31, 2022 (Dollars in millions) Classification Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Designated as cash flow hedges: Currency derivatives Other current assets $ 4 $ (2) $ 21 $ (3) Currency derivatives Other assets — — 13 (1) Currency derivatives Accrued expenses 4 (18) — (1) Currency derivatives Other liabilities 1 (18) — — Not designated as hedges: Currency derivatives Other current assets 1 — — — Currency derivatives Other assets — — — — Currency derivatives Accrued expenses — — — (1) Currency derivatives Other liabilities — — — — |
Offsetting Derivative Assets and Liabilities [Table Text Block] | The following table summarizes the gross and net amounts of our derivative contracts: (Dollars in millions) Gross Amounts of Recognized Assets (Liabilities) Gross Amounts Offset in Balance Sheet Net Amounts Presented in Balance Sheet Gross Amounts Not Offset in Balance Sheet Net Amounts April 30, 2021 Derivative assets $ 10 $ (7) $ 3 $ (1) $ 2 Derivative liabilities (38) 7 (31) 1 (30) January 31, 2022 Derivative assets 34 (4) 30 — 30 Derivative liabilities (6) 4 (2) — (2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis: April 30, 2021 January 31, 2022 Carrying Fair Carrying Fair (Dollars in millions) Amount Value Amount Value Assets Cash and cash equivalents $ 1,150 $ 1,150 $ 812 $ 812 Currency derivatives 3 3 30 30 Liabilities Currency derivatives 31 31 2 2 Short-term borrowings 205 205 16 16 Long-term debt (including current portion) 2,354 2,663 2,311 2,537 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 9 Months Ended |
Jan. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income (Loss) [Table Text Block] | The following tables show the components of net other comprehensive income (loss): Three Months Ended Three Months Ended January 31, 2021 January 31, 2022 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ 39 $ 8 $ 47 $ (23) $ (4) $ (27) Reclassification to earnings — — — — — — Other comprehensive income (loss), net 39 8 47 (23) (4) (27) Cash flow hedge adjustments: Net gain (loss) on hedging instruments (39) 9 (30) 23 (5) 18 Reclassification to earnings 1 (4) 1 (3) (2) — (2) Other comprehensive income (loss), net (43) 10 (33) 21 (5) 16 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — — — — Reclassification to earnings 2 6 (1) 5 6 (1) 5 Other comprehensive income (loss), net 6 (1) 5 6 (1) 5 Total other comprehensive income (loss), net $ 2 $ 17 $ 19 $ 4 $ (10) $ (6) Nine Months Ended Nine Months Ended January 31, 2021 January 31, 2022 (Dollars in millions) Pre-Tax Tax Net Pre-Tax Tax Net Currency translation adjustments: Net gain (loss) on currency translation $ 97 $ 16 $ 113 $ (40) $ (9) $ (49) Reclassification to earnings — — — — — — Other comprehensive income (loss), net 97 16 113 (40) (9) (49) Cash flow hedge adjustments: Net gain (loss) on hedging instruments (73) 17 (56) 53 (12) 41 Reclassification to earnings 1 (21) 5 (16) (1) — (1) Other comprehensive income (loss), net (94) 22 (72) 52 (12) 40 Postretirement benefits adjustments: Net actuarial gain (loss) and prior service cost — — — (1) — (1) Reclassification to earnings 2 23 (6) 17 19 (5) 14 Other comprehensive income (loss), net 23 (6) 17 18 (5) 13 Total other comprehensive income (loss), net $ 26 $ 32 $ 58 $ 30 $ (26) $ 4 1 Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations. 2 For the nine months ended January 31, 2021, $4 of the pre-tax amount of $23 is classified in gain on sale of business in the accompanying condensed consolidated statements of operations. Otherwise, the pre-tax amount for each period is classified as non-operating postretirement expense. |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Basic and diluted earnings per share | ||||
Net income available to common stockholders | $ 259 | $ 219 | $ 687 | $ 783 |
Share data (in thousands): | ||||
Basic average common shares outstanding | 478,887 | 478,599 | 478,844 | 478,471 |
Dilutive effect of stock-based awards | 1,680 | 2,237 | 1,755 | 2,194 |
Diluted average common shares outstanding | 480,567 | 480,836 | 480,599 | 480,665 |
Basic earnings per share (dollars per share) | $ 0.54 | $ 0.46 | $ 1.43 | $ 1.64 |
Diluted earnings per share (dollars per share) | $ 0.54 | $ 0.45 | $ 1.43 | $ 1.63 |
Earnings Per Share (Details Tex
Earnings Per Share (Details Textual) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Earnings Per Share (Textual) [Abstract] | ||||
Common stock-based awards excluded from the calculation of diluted earnings per share | 789 | 298 | 623 | 211 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Inventories (Textual) [Abstract] | ||
Excess of current costs over stated LIFO value | $ 388 | $ 353 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Details) $ in Millions | 9 Months Ended |
Jan. 31, 2022USD ($) | |
Goodwill [Roll Forward] | |
Balance at April 30, 2021 | $ 779 |
Foreign currency translation adjustment | (8) |
Balance at January 31, 2022 | 771 |
Indefinite-lived Intangible Assets [Roll Forward] | |
Balance at April 30, 2021 | 676 |
Foreign currency translation adjustment | (24) |
Balance at January 31, 2022 | $ 652 |
Commitments and Contingencies G
Commitments and Contingencies Guaranty (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Concentration Risk [Line Items] | ||
Accounts Receivable, after Allowance for Credit Loss, Current | $ 796 | $ 753 |
Credit Concentration Risk [Member] | ||
Concentration Risk [Line Items] | ||
Guarantor Obligations, Maximum Exposure, Undiscounted | 11 | |
Guarantee Obligations Current Exposure | 4 | |
Accounts Receivable, after Allowance for Credit Loss, Current | $ 9 |
Commitments and Contingencies C
Commitments and Contingencies Contingencies (Details) - GBP (£) £ in Millions | 1 Months Ended | |
Dec. 31, 2021 | Apr. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Loss Contingency, Amount Sought by Counterparty | £ 49 | |
Loss Contingency, Amount Withheld by Counterparty | £ 50 | |
Loss Contingency, Amount Remitted by Counterparty | £ 47 |
Debt (Details)
Debt (Details) € in Millions, £ in Millions, $ in Millions | 9 Months Ended | 12 Months Ended | ||||
Jan. 31, 2022USD ($) | Apr. 30, 2021USD ($) | Jan. 31, 2022EUR (€) | Jan. 31, 2022GBP (£) | Apr. 30, 2021EUR (€) | Apr. 30, 2021GBP (£) | |
Debt Instrument [Line Items] | ||||||
Long-term debt, including current portion | $ 2,311 | $ 2,354 | ||||
Current portion of long-term debt | 250 | 0 | ||||
Long-term debt | 2,061 | 2,354 | ||||
2.25% 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% |
Long-term debt, including current portion | $ 250 | $ 249 | ||||
3.50% senior notes, due April 15, 2025 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | $ 300 | ||||
Debt Instrument, Maturity Date | Apr. 15, 2025 | Apr. 15, 2025 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% |
Long-term debt, including current portion | $ 298 | $ 298 | ||||
1.20% notes, due July 7, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | € | € 300 | € 300 | ||||
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, including current portion | $ 333 | $ 362 | ||||
2.60% notes, due July 7, 2028 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | £ | £ 300 | £ 300 | ||||
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, including current portion | $ 399 | $ 415 | ||||
4.00% senior notes, due April 15, 2038 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 300 | $ 300 | ||||
Debt Instrument, Maturity Date | Apr. 15, 2038 | Apr. 15, 2038 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% | 4.00% |
Long-term debt, including current portion | $ 295 | $ 294 | ||||
3.75% 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% |
Long-term debt, including current portion | $ 248 | $ 248 | ||||
4.50% notes, due July 15, 2045 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Face Amount | $ 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% |
Long-term debt, including current portion | $ 488 | $ 488 |
Debt Short-term Borrowings (Det
Debt Short-term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jan. 31, 2022 | Apr. 30, 2021 | |
Short-term Debt [Abstract] | ||
Short-term borrowings | $ 16 | $ 205 |
Commercial Paper | $ 0 | $ 195 |
Commercial Paper, Weighted Average Interest Rate, at Point in Time | 0.00% | 0.16% |
Commercial Paper Borrowings, Average Remaining Maturity | 0 days | 24 days |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | |
Beginning balance | $ 2,923 | $ 2,683 | $ 2,656 | $ 2,403 | $ 2,150 | $ 1,975 | $ 2,656 | $ 1,975 |
Net income | 259 | 236 | 192 | 219 | 240 | 324 | 687 | 783 |
Net other comprehensive income (loss) | (6) | 2 | 8 | 19 | 15 | 24 | 4 | 58 |
Declaration of cash dividends | (659) | (172) | (172) | (167) | ||||
Stock-based compensation expense | 4 | 3 | 4 | 3 | 3 | 3 | ||
Stock issued under compensation plans | 2 | 1 | 5 | 3 | 5 | 10 | ||
Loss on issuance of treasury stock issued under compensation plans | (4) | (2) | (10) | (7) | (10) | (19) | ||
Ending balance | 2,519 | 2,923 | 2,683 | 2,468 | 2,403 | 2,150 | 2,519 | 2,468 |
Additional Paid-in Capital [Member] | ||||||||
Beginning balance | 3 | 2 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock-based compensation expense | 4 | 3 | 4 | 3 | 3 | 3 | ||
Loss on issuance of treasury stock issued under compensation plans | (4) | (2) | (2) | (3) | (3) | (3) | ||
Ending balance | 3 | 3 | 2 | 0 | 0 | 0 | 3 | 0 |
Retained Earnings [Member] | ||||||||
Beginning balance | 3,491 | 3,255 | 3,243 | 3,082 | 2,849 | 2,708 | 3,243 | 2,708 |
Net income | 259 | 236 | 192 | 219 | 240 | 324 | ||
Declaration of cash dividends | (659) | (172) | (172) | (167) | ||||
Loss on issuance of treasury stock issued under compensation plans | (8) | (4) | (7) | (16) | ||||
Ending balance | 3,091 | 3,491 | 3,255 | 3,125 | 3,082 | 2,849 | 3,091 | 3,125 |
AOCI Attributable to Parent [Member] | ||||||||
Beginning balance | (412) | (414) | (422) | (508) | (523) | (547) | (422) | (547) |
Net other comprehensive income (loss) | (6) | 2 | 8 | 19 | 15 | 24 | ||
Ending balance | (418) | (412) | (414) | (489) | (508) | (523) | (418) | (489) |
Treasury Stock, Common [Member] | ||||||||
Beginning balance | (231) | (232) | (237) | (243) | (248) | (258) | (237) | (258) |
Stock issued under compensation plans | 2 | 1 | 5 | 3 | 5 | 10 | ||
Ending balance | (229) | (231) | (232) | (240) | (243) | (248) | (229) | (240) |
Common stock, Class A, voting [Member] | Common Stock [Member] | ||||||||
Beginning balance | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 |
Ending balance | 25 | 25 | 25 | 25 | 25 | 25 | 25 | 25 |
Common stock, Class B, nonvoting [Member] | Common Stock [Member] | ||||||||
Beginning balance | 47 | 47 | 47 | 47 | 47 | 47 | 47 | 47 |
Ending balance | $ 47 | $ 47 | $ 47 | $ 47 | $ 47 | $ 47 | $ 47 | $ 47 |
Stockholders' Equity Accumulate
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||||
Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | $ (422) | $ (422) | ||||||
Net other comprehensive income (loss) | $ (6) | $ 2 | 8 | $ 19 | $ 15 | $ 24 | 4 | $ 58 |
Ending balance | (418) | (418) | ||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (179) | (179) | ||||||
Net other comprehensive income (loss) | (27) | 47 | (49) | 113 | ||||
Ending balance | (228) | (228) | ||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (16) | (16) | ||||||
Net other comprehensive income (loss) | 16 | (33) | 40 | (72) | ||||
Ending balance | 24 | 24 | ||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Beginning balance | (227) | (227) | ||||||
Net other comprehensive income (loss) | 5 | 5 | 13 | $ 17 | ||||
Ending balance | (214) | $ (214) | ||||||
AOCI Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Net other comprehensive income (loss) | $ (6) | $ 2 | $ 8 | $ 19 | $ 15 | $ 24 |
Stockholders' Equity Dividends
Stockholders' Equity Dividends (Details) | 9 Months Ended |
Jan. 31, 2022$ / shares | |
July 2021 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | May 27, 2021 |
Dividends Payable, Date of Record | Jun. 8, 2021 |
Dividends Payable, Date to be Paid | Jul. 1, 2021 |
Common Stock, Dividends, Per Share, Declared | $ 0.1795 |
October 2021 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | Jul. 22, 2021 |
Dividends Payable, Date of Record | Sep. 3, 2021 |
Dividends Payable, Date to be Paid | Oct. 1, 2021 |
Common Stock, Dividends, Per Share, Declared | $ 0.1795 |
December 2021 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | Nov. 18, 2021 |
Dividends Payable, Date of Record | Dec. 3, 2021 |
Dividends Payable, Date to be Paid | Dec. 28, 2021 |
Common Stock, Dividends, Per Share, Declared | $ 0.1885 |
April 2022 dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | Jan. 25, 2022 |
Dividends Payable, Date of Record | Mar. 8, 2022 |
Dividends Payable, Date to be Paid | Apr. 1, 2022 |
Common Stock, Dividends, Per Share, Declared | $ 0.1885 |
December 2021 special dividend payment | |
Class of Stock [Line Items] | |
Dividends Payable, Date Declared, Month and Year | Nov. 18, 2021 |
Dividends Payable, Date of Record | Dec. 9, 2021 |
Dividends Payable, Date to be Paid | Dec. 29, 2021 |
Common Stock, Dividends, Per Share, Declared | $ 1 |
Net Sales by Geography (Details
Net Sales by Geography (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | $ 1,037 | $ 911 | $ 2,937 | $ 2,649 | ||
United States [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | 488 | 425 | 1,400 | 1,334 | ||
Developed International [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | 318 | 292 | 884 | [1] | 789 | [1] |
Emerging [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | 196 | 171 | 533 | [2] | 438 | [2] |
Travel Retail [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | 25 | 12 | 74 | [3] | 47 | [3] |
Non-branded and bulk [Member] | ||||||
Disaggregation of Revenue [Line Items] | ||||||
Net sales | $ 10 | $ 11 | $ 46 | [4] | $ 41 | [4] |
[1] | Represents net sales of branded products to “advanced economies” as defined by the International Monetary Fund (IMF), excluding the United States. Our largest developed international markets are Australia, Germany, the United Kingdom, France, and Canada. | |||||
[2] | Represents net sales of branded products to “emerging and developing economies” as defined by the IMF. Our largest emerging markets are Mexico, Poland, Brazil, and Russia. | |||||
[3] | Represents net sales of branded products to global duty-free customers, other travel retail customers, and the U.S. military regardless of customer location. | |||||
[4] | Includes net sales of used barrels, bulk whiskey and wine, and contract bottling regardless of customer location. |
Net Sales by Product Category (
Net Sales by Product Category (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 1,037 | $ 911 | $ 2,937 | $ 2,649 | |
Whiskey [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [1] | 835 | 731 | 2,309 | 2,101 |
Tequila [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [2] | 90 | 72 | 266 | 224 |
Wine [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [3] | 54 | 50 | 176 | 162 |
Vodka [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [4] | 29 | 26 | 86 | 71 |
Non-branded and bulk [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | [5] | 10 | 11 | 46 | 41 |
Rest of portfolio [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Net sales | $ 19 | $ 21 | $ 54 | $ 50 | |
[1] | Includes all whiskey spirits and whiskey-based flavored liqueurs, ready-to-drink, and ready-to-pour products. The brands included in this category are the Jack Daniel's family of brands, the Woodford Reserve family of brands, the Old Forester family of brands, GlenDronach, Benriach, Glenglassaugh, Slane Irish Whiskey, and Coopers’ Craft. | ||||
[2] | Includes the Herradura family of brands, el Jimador, New Mix, Pepe Lopez, and Antiguo. | ||||
[3] | Includes Korbel Champagne and Sonoma-Cutrer wines. | ||||
[4] | Includes Finlandia. | ||||
[5] | Includes net sales of used barrels, bulk whiskey and wine, and contract bottling. |
Pension and Other Postretirem_3
Pension and Other Postretirement Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Pension Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Sponsor Location [Extensible List] | ||||
Service cost | $ 7 | $ 7 | $ 20 | $ 20 |
Interest cost | 5 | 6 | 16 | 19 |
Expected return on plan assets | (11) | (12) | (34) | (35) |
Amortization of prior service cost (credit) | 0 | 0 | 1 | 1 |
Amortization of net actuarial loss (gain) | 6 | 7 | 18 | 20 |
Settlement loss | 0 | 0 | 1 | 0 |
Net cost | 7 | 8 | $ 22 | $ 25 |
Other Postretirement Benefits [Member] | ||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||||
Defined Benefit Plan, Sponsor Location [Extensible List] | ||||
Service cost | 0 | 0 | $ 1 | $ 1 |
Interest cost | 0 | 1 | 1 | 1 |
Amortization of prior service cost (credit) | 0 | (1) | (1) | (2) |
Net cost | $ 0 | $ 0 | $ 1 | $ 0 |
Income Taxes (Details)
Income Taxes (Details) | 9 Months Ended | 12 Months Ended | |
Jan. 31, 2022 | Jan. 31, 2021 | Apr. 30, 2022 | |
Expected Tax Rate on Ordinary Income | 22.70% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | ||
Effective Income Tax Rate Reconciliation, Percent | 23.40% | 16.20% | |
Forecast [Member] | |||
Expected Tax Rate on Ordinary Income | 22.70% |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jan. 31, 2022 | Jan. 31, 2021 | Jan. 31, 2022 | Jan. 31, 2021 | |
Total amounts presented in the accompanying consolidated statements of operations for line items affected by the net gains (losses) shown above: [Abstract] | ||||
Sales | $ 1,365 | $ 1,222 | $ 3,831 | $ 3,481 |
Other income (expense), net | 4 | 9 | (1) | 13 |
Foreign Currency Denominated Debt [Member] | ||||
Foreign currency-denominated debt designated as net investment hedge: [Abstract] | ||||
Net gain (loss) recognized in AOCI | 17 | (33) | 38 | (66) |
Currency derivatives [Member] | ||||
Currency derivatives designated as cash flow hedges: [Abstract] | ||||
Net gain (loss) recognized in AOCI | 23 | (39) | 53 | (73) |
Currency derivatives [Member] | Sales [Member] | ||||
Currency derivatives designated as cash flow hedges: [Abstract] | ||||
Net gain (loss) reclassified from AOCI into earnings | 2 | 4 | 1 | 21 |
Currency derivatives not designated as hedging instruments: [Abstract] | ||||
Net gain (loss) recognized in earnings | 5 | (6) | 8 | (11) |
Currency derivatives [Member] | Other Income [Member] | ||||
Currency derivatives not designated as hedging instruments: [Abstract] | ||||
Net gain (loss) recognized in earnings | $ (1) | $ 4 | $ (1) | $ 15 |
Derivative Financial Instrume_5
Derivative Financial Instruments and Hedging Activities (Details 1) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | $ 34 | $ 10 |
Derivative Liability, Fair Value, Gross Liability | 6 | 38 |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 21 | 4 |
Derivative Liability, Fair Value, Gross Liability | (3) | (2) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 13 | 0 |
Derivative Liability, Fair Value, Gross Liability | (1) | 0 |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 4 |
Derivative Liability, Fair Value, Gross Liability | (1) | (18) |
Currency derivatives [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 1 |
Derivative Liability, Fair Value, Gross Liability | 0 | (18) |
Currency derivatives [Member] | Not designated as hedges [Member] | Other Current Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 1 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Currency derivatives [Member] | Not designated as hedges [Member] | Other Assets [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | 0 | 0 |
Currency derivatives [Member] | Not designated as hedges [Member] | Accrued Expenses [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | (1) | 0 |
Currency derivatives [Member] | Not designated as hedges [Member] | Other Liabilities [Member] | ||
Fair values of derivative instruments | ||
Derivative Asset, Fair Value, Gross Asset | 0 | 0 |
Derivative Liability, Fair Value, Gross Liability | $ 0 | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments and Hedging Activities (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jul. 31, 2021 | Jan. 31, 2022 | Apr. 30, 2021 | |
Derivative Financial Instruments (Textual) [Abstract] | |||
Maximum term of outstanding derivative contracts | 36 months | 36 months | |
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months | $ 15 | ||
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position | 2 | $ 30 | |
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Debt Instrument, Face Amount | 676 | 680 | |
Foreign Exchange Contract [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative, Notional Amount | $ 860 | $ 1,218 |
Offsetting Derivative Assets an
Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Offsetting Assets and Liabilities [Line Items] | ||
Gross Amount of Derivative Assets | $ 34 | $ 10 |
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet | (4) | (7) |
Net Amount of Derivative Assets Presented in Balance Sheet | 30 | 3 |
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet | 0 | (1) |
Net Amount of Derivative Assets | 30 | 2 |
Gross Amount of Derivative Liabilities | (6) | (38) |
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet | 4 | 7 |
Net Amount of Derivative Liabilities Presented in Balance Sheet | 2 | 31 |
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet | 0 | 1 |
Net Amount of Derivative Liabilities | $ 2 | $ 30 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | Jan. 31, 2022 | Apr. 30, 2021 |
Assets: | ||
Cash and cash equivalents, Carrying Amount | $ 812 | $ 1,150 |
Cash and cash equivalents, Fair Value | 812 | 1,150 |
Liabilities: | ||
Short-term borrowings, Carrying Amount | 16 | 205 |
Short-term borrowings, Fair Value | 16 | 205 |
Long-term debt (including current portion), Carrying Amount | 2,311 | 2,354 |
Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Currency derivatives, Fair Value | 30 | 3 |
Liabilities: | ||
Currency derivatives, Fair Value | 2 | 31 |
Long-term debt (including current portion), Fair Value | 2,537 | 2,663 |
Foreign Exchange Contract [Member] | ||
Assets: | ||
Currency derivatives, Carrying Amount | 30 | 3 |
Liabilities: | ||
Currency derivatives, Carrying Amount | $ 2 | $ 31 |
Impairment Charge (Details)
Impairment Charge (Details) $ in Millions | 9 Months Ended |
Jan. 31, 2022USD ($) | |
Fair Value Disclosures [Abstract] | |
Tangible Asset Impairment Charges | $ 9 |
Other Comprehensive Income (Det
Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||||||
Jan. 31, 2022 | Oct. 31, 2021 | Jul. 31, 2021 | Jan. 31, 2021 | Oct. 31, 2020 | Jul. 31, 2020 | Jan. 31, 2022 | Jan. 31, 2021 | ||
Before Tax: | |||||||||
Net other comprehensive income (loss) | $ 4 | $ 2 | $ 30 | $ 26 | |||||
Tax Effect: | |||||||||
Net other comprehensive income (loss) | (10) | 17 | (26) | 32 | |||||
Net of Tax: | |||||||||
Net other comprehensive income (loss) | (6) | $ 2 | $ 8 | 19 | $ 15 | $ 24 | 4 | 58 | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |||||||||
Before Tax: | |||||||||
Net gain (loss) | (23) | 39 | (40) | 97 | |||||
Reclassification to earnings | 0 | 0 | 0 | 0 | |||||
Net other comprehensive income (loss) | (23) | 39 | (40) | 97 | |||||
Tax Effect: | |||||||||
Net gain (loss) | (4) | 8 | (9) | 16 | |||||
Reclassification to earnings | 0 | 0 | 0 | 0 | |||||
Net other comprehensive income (loss) | (4) | 8 | (9) | 16 | |||||
Net of Tax: | |||||||||
Net gain (loss) | (27) | 47 | (49) | 113 | |||||
Reclassification to earnings | 0 | 0 | 0 | 0 | |||||
Net other comprehensive income (loss) | (27) | 47 | (49) | 113 | |||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||||||
Before Tax: | |||||||||
Net gain (loss) | 23 | (39) | 53 | (73) | |||||
Reclassification to earnings | [1] | (2) | (4) | (1) | (21) | ||||
Net other comprehensive income (loss) | 21 | (43) | 52 | (94) | |||||
Tax Effect: | |||||||||
Net gain (loss) | (5) | 9 | (12) | 17 | |||||
Reclassification to earnings | [1] | 0 | 1 | 0 | 5 | ||||
Net other comprehensive income (loss) | (5) | 10 | (12) | 22 | |||||
Net of Tax: | |||||||||
Net gain (loss) | 18 | (30) | 41 | (56) | |||||
Reclassification to earnings | [1] | (2) | (3) | (1) | (16) | ||||
Net other comprehensive income (loss) | 16 | (33) | 40 | (72) | |||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||
Before Tax: | |||||||||
Net gain (loss) | 0 | 0 | (1) | 0 | |||||
Reclassification to earnings | [2] | 6 | 6 | 19 | 23 | ||||
Net other comprehensive income (loss) | 6 | 6 | 18 | 23 | |||||
Tax Effect: | |||||||||
Net gain (loss) | 0 | 0 | 0 | 0 | |||||
Reclassification to earnings | [2] | (1) | (1) | (5) | (6) | ||||
Net other comprehensive income (loss) | (1) | (1) | (5) | (6) | |||||
Net of Tax: | |||||||||
Net gain (loss) | 0 | 0 | (1) | 0 | |||||
Reclassification to earnings | [2] | 5 | 5 | 14 | 17 | ||||
Net other comprehensive income (loss) | $ 5 | $ 5 | $ 13 | 17 | |||||
Gain on sale of business [Member] | Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | |||||||||
Before Tax: | |||||||||
Reclassification to earnings | $ 4 | ||||||||
[1] | Pre-tax amount for each period is classified as sales in the accompanying condensed consolidated statements of operations. | ||||||||
[2] | For the nine months ended January 31, 2021, $4 of the pre-tax amount of $23 is classified in gain on sale of business in the accompanying condensed consolidated statements of operations. Otherwise, the pre-tax amount for each period is classified as non-operating postretirement expense. |