BROWN FORMAN CORP, 10-Q filed on 8/31/2016
Quarterly Report
v3.5.0.2
Document and Entity Information
3 Months Ended
Jul. 31, 2016
shares
Document Information [Line Items]  
Entity Registrant Name BROWN FORMAN CORP
Entity Central Index Key 0000014693
Document Type 10-Q
Document Period End Date Jul. 31, 2016
Amendment Flag false
Document Fiscal Year Focus 2017
Document Fiscal Period Focus Q1
Current Fiscal Year End Date --04-30
Entity Filer Category Large Accelerated Filer
Common stock, Class A, voting [Member]  
Document Information [Line Items]  
Entity Common Stock, Shares Outstanding 169,080,654
Common stock, Class B, nonvoting [Member]  
Document Information [Line Items]  
Entity Common Stock, Shares Outstanding 222,431,456
v3.5.0.2
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Income Statement [Abstract]    
Sales $ 856 $ 900
Excise taxes 195 201
Net Sales 661 699
Cost of sales 208 208
Gross profit 453 491
Advertising expenses 82 95
Selling, general, and administrative expenses 163 169
Other expense (income), net (5) 0
Operating income 213 227
Interest income 1 0
Interest expense 13 9
Income before income taxes 201 218
Income taxes 57 62
Net income $ 144 $ 156
Earnings per share:    
Basic (dollars per share) $ 0.37 $ 0.38
Diluted (dollars per share) 0.36 0.37
Cash dividends per common share:    
Declared (dollars per share) 0.3400 0.3150
Paid (dollars per share) $ 0.1700 $ 0.1575
v3.5.0.2
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Statement of Comprehensive Income [Abstract]    
Net income $ 144 $ 156
Other comprehensive income (loss), net of tax:    
Currency translation adjustments (67) (24)
Cash flow hedge adjustments 12 16
Postretirement benefits adjustments 3 4
Net other comprehensive income (loss) (52) (4)
Comprehensive income $ 92 $ 152
v3.5.0.2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jul. 31, 2016
Apr. 30, 2016
Assets    
Cash and cash equivalents $ 459 $ 263
Accounts receivable, less allowance for doubtful accounts of $9 and $9 at April 30 and July 31, respectively 501 559
Inventories:    
Barreled whiskey 835 666
Finished goods 212 187
Work in process 119 116
Raw materials and supplies 96 85
Total inventories 1,262 1,054
Other current assets 339 357
Total current assets 2,561 2,233
Property, plant, and equipment, net 645 629
Goodwill 756 590
Other intangible assets 649 595
Deferred tax assets 16 17
Other assets 128 119
Total assets 4,755 4,183
Liabilities    
Accounts payable and accrued expenses 463 501
Dividends payable 67 0
Accrued income taxes 56 19
Short-term borrowings 288 271
Total current liabilities 874 791
Long-term debt 1,953 1,230
Deferred tax liabilities 122 101
Accrued pension and other postretirement benefits 344 353
Other liabilities 132 146
Total liabilities 3,425 2,621
Commitments and contingencies
Stockholders' Equity    
Additional paid-in capital 74 114
Retained earnings 4,085 4,065
Accumulated other comprehensive income (loss), net of tax (402) (350)
Treasury stock, at cost (59,143,000 and 63,115,000 shares at April 30 and July 31, respectively) (2,495) (2,301)
Total stockholders' equity 1,330 1,562
Total liabilities and stockholders' equity 4,755 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
v3.5.0.2
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)
shares in Thousands, $ in Millions
Jul. 31, 2016
Apr. 30, 2016
Allowance for doubtful accounts $ 9 $ 9
Common stock, par value $ 0.15  
Treasury stock, shares 63,115 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
v3.5.0.2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Cash flows from operating activities:    
Net income $ 144 $ 156
Adjustments to reconcile net income to net cash provided by operations:    
Depreciation and amortization 15 13
Stock-based compensation expense 4 3
Deferred income taxes (11) 2
Changes in assets and liabilities, excluding the effects of acquisition of business (24) (27)
Cash provided by operating activities 128 147
Cash flows from investing activities:    
Acquisition of business, net of cash acquired (307) 0
Additions to property, plant, and equipment (16) (39)
Computer software expenditures (1) 0
Cash used for investing activities (324) (39)
Cash flows from financing activities:    
Net increase in short-term borrowings (43) (176)
Proceeds from long-term debt 717 490
Debt issuance costs (5) (5)
Net payments related to exercise of stock-based awards (3) (5)
Excess tax benefits from stock-based awards 0 12
Acquisition of treasury stock (201) (230)
Dividends paid (67) (65)
Cash provided by financing activities 398 21
Effect of exchange rate changes on cash and cash equivalents (6) (5)
Net increase in cash and cash equivalents 196 124
Cash and cash equivalents, beginning of period 263 370
Cash and cash equivalents, end of period $ 459 $ 494
v3.5.0.2
Condensed Consolidated Financial Statements
3 Months Ended
Jul. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Condensed Consolidated Financial Statements
Condensed Consolidated Financial Statements 
We prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission for interim financial information. In accordance with those rules and regulations, we condensed or omitted certain information and disclosures normally included in annual financial statements prepared in accordance with U.S. generally accepted accounting principles (GAAP). We suggest that you read these condensed financial statements together with the financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended April 30, 2016 (2016 Form 10-K).

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 covered by this report.

We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2016 Form 10-K, but made the following changes during the first quarter of fiscal 2017:

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.

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 the quarter ended July 31, 2016, include excess tax benefits of $2 million. 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 million to retained earnings as of May 1, 2016.

Also, as discussed in Note 12, our Class A and Class B common shares were split on a two-for-one basis during August 2016. As a result, all share and per share amounts reported in the accompanying financial statements and related notes are presented on a split-adjusted basis.

Recent accounting pronouncements. In May 2014, the Financial Accounting Standards Board (FASB) issued new guidance on the recognition of revenue from contracts with customers. As issued, the new guidance would have become effective for us beginning fiscal 2018. However, the FASB has since deferred the effective date until our fiscal 2019, though permitting voluntary adoption as of the original effective date. The FASB has also issued various amendments and proposed further amendments to the new guidance. We are currently evaluating the potential impact of the new guidance (as amended) and the proposed amendments on our financial statements.

In February 2016, the FASB issued new guidance on accounting for leases. The new guidance will become effective for us beginning fiscal 2020, although voluntary adoption during an earlier period will be permitted. We are currently evaluating the potential impact of the new guidance on our financial statements.

In June 2016, the FASB issued new guidance on accounting for credit losses. The new guidance will become effective for us beginning fiscal 2021, with voluntary early adoption permitted during our fiscal 2020. We are currently evaluating the potential impact of the new guidance on our financial statements.
v3.5.0.2
Inventories
3 Months Ended
Jul. 31, 2016
Inventory Disclosure [Abstract]  
Inventories
Inventories 
We use the last-in, first-out (LIFO) method to determine the cost of most of our inventories. If the LIFO method had not been used, inventories at current cost would have been $248 million higher than reported as of April 30, 2016, and $253 million higher than reported as of July 31, 2016. Changes in the LIFO valuation reserve for interim periods are based on a proportionate allocation of the estimated change for the entire fiscal year.
v3.5.0.2
Income Taxes
3 Months Ended
Jul. 31, 2016
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
Our consolidated interim effective tax rate is based upon our expected annual operating income, statutory tax rates, and income tax laws in the various jurisdictions in which we operate. Significant or unusual items, including adjustments to accruals for tax uncertainties, are recognized in the quarter in which the related event occurs. The effective tax rate of 28.2% for the three months ended July 31, 2016, is based on an expected tax rate of 29.5% on ordinary income for the full fiscal year, as adjusted for the recognition of a net tax benefit related to discrete items arising during the period and interest on previously provided tax contingencies. Our expected tax rate includes current fiscal year additions for existing tax contingency items.

As discussed in Note 1, we adopted new accounting guidance for stock-based compensation, including the income tax consequences. As a result, our effective tax rate for the quarter reflects the impact of $2 million of tax benefits related to stock-based compensation that we recognized as a discrete item during the period.
v3.5.0.2
Earnings Per Share
3 Months Ended
Jul. 31, 2016
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
 
July 31,
(Dollars in millions, except per share amounts)
2015
 
2016
Net income available to common stockholders
$
156

 
$
144

Share data (in thousands):
 
 
 
Basic average common shares outstanding
414,526

 
393,018

Dilutive effect of stock-based awards
2,750

 
2,991

Diluted average common shares outstanding
417,276

 
396,009

 
 
 
 
Basic earnings per share
$
0.38

 
$
0.37

Diluted earnings per share
$
0.37

 
$
0.36



We excluded common stock-based awards for approximately 1,288,000 shares and 1,173,000 shares from the calculation of diluted earnings per share for the three months ended July 31, 2015 and 2016, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.
v3.5.0.2
Commitments and Contingencies
3 Months Ended
Jul. 31, 2016
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 are recorded as of July 31, 2016.

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 $21 million (subject to changes in foreign currency exchange rates). Both the fair value and carrying amount of the guaranty are insignificant. As of July 31, 2016, our actual exposure under the guaranty of the importer's obligation is approximately $12 million.

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.
v3.5.0.2
Debt
3 Months Ended
Jul. 31, 2016
Debt Disclosure [Abstract]  
Debt
Debt
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Principal and carrying amounts in millions)
April 30,
2016
 
July 31,
2016
1.00% notes, $250 principal amount, due in fiscal 2018
$
249

 
$
249

2.25% notes, $250 principal amount, due in fiscal 2023
248

 
248

1.20% notes, €300 principal amount, due in fiscal 2027

 
332

2.60% notes, £300 principal amount, due in fiscal 2029

 
391

3.75% notes, $250 principal amount, due in fiscal 2043
248

 
248

4.50% notes, $500 principal amount, due in fiscal 2046
485

 
485

 
$
1,230

 
$
1,953


We issued senior, unsecured notes with an aggregate principal amount of 300 million euros in July 2016. Interest on these notes will accrue at a rate of 1.20% and be paid annually. As of July 31, 2016, the carrying amount of these notes was $332 million ($335 million 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 million British pounds in July 2016. Interest on these notes will accrue at a rate of 2.60% and be paid annually. As of July 31, 2016, the carrying amount of these notes was $391 million ($397 million 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 million included $269 million of commercial paper, with an average interest rate of 0.53% and a remaining maturity of 26 days. As of July 31, 2016, our short-term borrowings of $288 million included $285 million of commercial paper, with an average interest rate of 0.66% and a remaining maturity of 12 days.
v3.5.0.2
Pension and Other Postretirement Benefits
3 Months Ended
Jul. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Pension and Other Postretirement Benefits
Pension and Other Postretirement Benefits 
The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality.
 
Three Months Ended
 
July 31,
(Dollars in millions)
2015
 
2016
Pension Benefits:
 
 
 
Service cost
$
6

 
$
6

Interest cost
9

 
9

Expected return on plan assets
(10
)
 
(10
)
Amortization of net actuarial loss
7

 
6

Net cost
$
12

 
$
11

 
 
 
 
Other Postretirement Benefits:
 
 
 
Interest cost
1

 
1

Amortization of prior service cost (credit)

 
(1
)
Net cost
$
1

 
$

v3.5.0.2
Fair Value Measurements
3 Months Ended
Jul. 31, 2016
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based upon the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are:
Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities.
Level 2 Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be derived from or corroborated by observable market data.
Level 3 Unobservable inputs that are supported by little or no market activity.
The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:
(Dollars in millions)
 
Level 1

 
Level 2

 
Level 3

 
Total

April 30, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 
$

 
$
19

 
$

 
$
19

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
10

 

 
10

Short-term borrowings
 

 
271

 

 
271

Long-term debt
 

 
1,293

 

 
1,293

July 31, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
28

 

 
28

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
5

 

 
5

Short-term borrowings
 

 
288

 

 
288

Long-term debt
 

 
2,122

 

 
2,122



We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable exchange rates, forward rates, and discount rates. The discount rates are based on the historical U.S. Treasury rates.

The fair value of short-term borrowings approximates their carrying amount. We determine the fair value of long-term debt primarily based on the prices at which similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation.

We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). No material nonrecurring fair value measurements were required during the periods presented in these financial statements.
v3.5.0.2
Fair Value of Financial Instruments
3 Months Ended
Jul. 31, 2016
Fair Value of Financial Instruments [Abstract]  
Fair Value of Financial Instruments
Fair Value of Financial Instruments 
The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of currency derivatives and long-term debt as discussed in Note 8. 

Below is a comparison of the fair values and carrying amounts of these instruments:
 
April 30, 2016
 
July 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
(Dollars in millions)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
263

 
$
263

 
$
459

 
$
459

Currency derivatives
19

 
19

 
28

 
28

Liabilities:
 
 
 
 
 
 
 
Currency derivatives
10

 
10

 
5

 
5

Short-term borrowings
271

 
271

 
288

 
288

Long-term debt
1,230

 
1,293

 
1,953

 
2,122

v3.5.0.2
Derivative Financial Instruments
3 Months Ended
Jul. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
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 million at April 30, 2016 and $1,164 million at July 31, 2016.

During the quarter ended July 31, 2016, 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 July 31, 2016, $569 million 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.

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 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 million of the 4.50% notes, due June 15, 2045, we settled the contracts for a gain of $8 million. The entire gain was recorded to AOCI and will be amortized as a reduction of interest expense over the life of the notes.

The following table presents the pre-tax impact that changes in the fair value of our derivative instruments and non-derivative hedging instruments had on AOCI and earnings during the periods covered by this report:
 
 
Three Months Ended
 
 
July 31,
(Dollars in millions)
Classification
2015
 
2016
Derivative Instruments
 
 
 
 
Currency derivatives designated as cash flow hedges:
 
 

 
 

Net gain (loss) recognized in AOCI
n/a
$
29

 
$
29

Net gain (loss) reclassified from AOCI into income
Net sales
13

 
10

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 income
Net sales
3

 
1

Net gain (loss) recognized in income
Other income
4

 
(5
)
Non-Derivative Hedging Instruments
 
 
 
 
Foreign currency-denominated debt designated as net investment hedge:
 
 
 
 
Net gain (loss) recognized in AOCI
n/a

 
(10
)
Foreign currency-denominated debt not designated as hedging instrument:
 
 
 
 
Net gain (loss) recognized in income
Other income

 
(1
)


We expect to reclassify $23 million of deferred net gains on cash flow hedges recorded in AOCI as of July 31, 2016, to earnings during the next 12 months. This reclassification would offset the anticipated earnings impact of the underlying hedged exposures. The actual amounts that we ultimately reclassify to earnings will depend on the exchange rates in effect when the underlying hedged transactions occur. As of July 31, 2016, the maximum term of our outstanding derivative contracts was 36 months.

We did not reclassify any deferred gains or losses related to net investment hedges from AOCI to earnings during the three months ended July 31, 2016. Due to the high degree of effectiveness between the hedging instruments and the underlying exposures being hedged, we did not have any ineffectiveness related to net investment hedges during the three months ended July 31, 2016.
The carrying amounts of our foreign currency-denominated debt are presented in Note 6. The following table presents the fair values of our derivative instruments as of April 30, 2016 and July 31, 2016.

(Dollars in millions)


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
)
July 31, 2016:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
25

 
(3
)
Currency derivatives
Other assets
 
14

 
(6
)
Currency derivatives
Accrued expenses
 
10

 
(5
)
Currency derivatives
Other liabilities
 
1

 
(2
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 

 
(2
)
Currency derivatives
Accrued expenses
 

 
(9
)


The fair values reflected in the above table are presented on a gross basis. However, as discussed further below, the fair values of those instruments that are subject to net settlement agreements are presented in our balance sheets on a net basis.

In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items.

Credit risk. We are exposed to credit-related losses if the counterparties to our derivative contracts default. This credit risk is limited to the fair value of the contracts. To manage this risk, we contract only with major financial institutions that have earned investment-grade credit ratings and with whom we have standard International Swaps and Derivatives Association (ISDA) agreements that allow for net settlement of the derivative contracts. Also, we have established counterparty credit guidelines that are regularly monitored and that provide for reports to senior management according to prescribed guidelines, and we monetize contracts when we believe it is warranted. Because of these safeguards, we believe we have no derivative positions that warrant credit valuation adjustments.

Some of our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of all derivatives with creditworthiness requirements that were in a net liability position was $8 million at April 30, 2016 and $5 million at July 31, 2016.

Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet. The following table summarizes the gross and net amounts of our derivative contracts.
(Dollars in millions)
Gross Amounts of Recognized Assets (Liabilities)
 
Gross Amounts Offset in Balance Sheet
 
Net Amounts Presented in Balance Sheet
 
Gross Amounts Not Offset in Balance Sheet
 
Net Amounts
April 30, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
$
34

 
$
(15
)
 
$
19

 
$
(6
)
 
$
13

Derivative liabilities
(25
)
 
15

 
(10
)
 
6

 
(4
)
July 31, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
50

 
(22
)
 
28

 
(3
)
 
25

Derivative liabilities
(27
)
 
22

 
(5
)
 
3

 
(2
)


No cash collateral was received or pledged related to our derivative contracts as of April 30, 2016 and July 31, 2016.
v3.5.0.2
Goodwill and Other Intangible Assets
3 Months Ended
Jul. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
Goodwill and Other Intangible Assets
The following table summarizes the changes in goodwill and other intangible assets during the three months ended July 31, 2016:
(Dollars in millions)
Goodwill
 
Other Intangible Assets
Balance at April 30, 2016
$
590

 
$
595

Acquisitions (Note 14)
182

 
65

Foreign currency translation adjustment
(16
)
 
(11
)
Balance at July 31, 2016
$
756

 
$
649



Our other intangible assets consist of trademarks and brand names, all with indefinite useful lives.
v3.5.0.2
Stockholders' Equity
3 Months Ended
Jul. 31, 2016
Stockholders' Equity Attributable to Parent [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
Stockholders’ Equity
The following table summarizes the changes in stockholders’ equity during the three months ended July 31, 2016:
(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, 2016
$
13

 
$
21

 
$
114

 
$
4,065

 
$
(350
)
 
$
(2,301
)
 
$
1,562

Cumulative effect of change in accounting principle (Note 1)
 
 
 
 
 
 
10

 
 
 
 
 
10

Net income
 
 
 
 
 
 
144

 
 
 
 
 
144

Net other comprehensive income (loss)
 
 
 
 
 
 
 
 
(52
)
 
 
 
(52
)
Cash dividends
 
 
 
 
 
 
(134
)
 
 
 
 
 
(134
)
Acquisition of treasury stock
 
 
 
 
 
 
 
 
 
 
(201
)
 
(201
)
Stock-based compensation expense
 
 
 
 
4

 
 
 
 
 
 
 
4

Stock issued under compensation plans
 
 
 
 
 
 
 
 
 
 
7

 
7

Loss on issuance of treasury stock issued under compensation plans
 
 
 
 
(10
)
 

 
 
 
 
 
(10
)
Stock split
12

 
22

 
(34
)
 
 
 
 
 
 
 

Balance at July 31, 2016
$
25

 
$
43

 
74

 
4,085

 
(402
)
 
(2,495
)
 
1,330



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 million from additional paid-in capital to common stock during the quarter ended July 31, 2016. The $34 million 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 the accompanying financial statements and related notes are presented on a split-adjusted basis.

Dividends. The following table summarizes the cash dividends declared per share on our Class A and Class B common stock during the three months ended July 31, 2016:
Declaration Date
 
Record Date
 
Payable Date
 
Amount per Share
May 26, 2016
 
June 6, 2016
 
July 1, 2016
 
$0.17
July 28, 2016
 
September 1, 2016
 
October 3, 2016
 
$0.17


Accumulated Other Comprehensive Income. The following table summarizes the changes in each component of AOCI, net of tax, during the three months ended July 31, 2016:
(Dollars in millions)
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)
(67
)
 
12

 
3

 
(52
)
Balance at July 31, 2016
$
(198
)
 
$
23

 
$
(227
)
 
$
(402
)
v3.5.0.2
Other Comprehensive Income
3 Months Ended
Jul. 31, 2016
Statement of Comprehensive Income [Abstract]  
Comprehensive Income (Loss) Note [Text Block]
Other Comprehensive Income
The following table presents the components of net other comprehensive income (loss):
 
Three Months Ended
 
Three Months Ended
 
July 31, 2015
 
July 31, 2016
(Dollars in millions)
Pre-Tax
 
Tax
 
Net
 
Pre-Tax
 
Tax
 
Net
Currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on currency translation
$
(23
)
 
$
(1
)
 
$
(24
)
 
$
(68
)
 
$
1

 
$
(67
)
Reclassification to earnings

 

 

 

 

 

Other comprehensive income (loss), net
(23
)
 
(1
)
 
(24
)
 
(68
)
 
1

 
(67
)
Cash flow hedge adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on hedging instruments
37

 
(12
)
 
25

 
29

 
(11
)
 
18

Reclassification to earnings1
(13
)
 
4

 
(9
)
 
(10
)
 
4

 
(6
)
Other comprehensive income (loss), net
24

 
(8
)
 
16

 
19

 
(7
)
 
12

Postretirement benefits adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

 

 

 

Reclassification to earnings2
7

 
(3
)
 
4

 
5

 
(2
)
 
3

Other comprehensive income (loss), net
7

 
(3
)
 
4

 
5

 
(2
)
 
3

 
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss), net
$
8

 
$
(12
)
 
$
(4
)
 
$
(44
)
 
$
(8
)
 
$
(52
)
1Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations.
2Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality).
v3.5.0.2
Acquisition of Business
3 Months Ended
Jul. 31, 2016
Acquisition of Business [Abstract]  
Business Combination Disclosure [Text Block]
Acquisition of Business
On June 1, 2016, we acquired The BenRiach Distillery Company Limited (BenRiach) for aggregate consideration of approximately $407 million, consisting of a purchase price of approximately $341 million and approximately $66 million in assumed debt and transaction-related obligations that we have since paid. The acquisition, which brings three single malt Scotch whisky brands into our whiskey portfolio, includes brand trademarks, inventories, three malt distilleries, a bottling plant, and BenRiach’s headquarters in Edinburgh, Scotland.
The purchase price of approximately $341 million included cash of approximately $307 million paid at the acquisition date for 90% of the voting interests in BenRiach and a liability of approximately $34 million related to a put and call option agreement for the remaining 10% equity shares. Under that agreement, we may choose (or be required) to purchase the remaining 10% for approximately 24 million British pounds (approximately $34 million at the exchange rate on June 1, 2016) during the one-year period ending November 14, 2017.

The purchase price of approximately $341 million was preliminarily allocated based on management’s estimates and independent appraisals as follows:
(Dollars in millions)
June 1,
2016
Accounts receivable
$
11

Inventories
159

Other current assets
1

Property, plant, and equipment
19

Goodwill
182

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 the following: (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 provided by the combination of the rather scarce identifiable assets 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 preliminary goodwill amount of $182 million is expected to be deductible for tax purposes.
The initial allocation of the purchase price was based on preliminary estimates and may be revised as asset valuations are finalized and further information is obtained on the fair value of liabilities.
BenRiach’s results of operations, which have been included in our financial statements since the acquisition date, were not material for the period ended July 31, 2016. Pro forma results are not presented due to immateriality.
v3.5.0.2
Derivative Financial Instruments (Policies)
3 Months Ended
Jul. 31, 2016
Derivative Financial Instruments [Abstract]  
Classification of Cash Flows Related to Cash Flow Hedges [Policy Text Block]
In our statement of cash flows, we classify cash flows related to cash flow hedges in the same category as the cash flows from the hedged items.
Derivatives, Offsetting Fair Value Amounts, Policy [Policy Text Block]
Offsetting. As noted above, our derivative contracts are governed by ISDA agreements that allow for net settlement of derivative contracts with the same counterparty. It is our policy to present the fair values of current derivatives (i.e., those with a remaining term of 12 months or less) with the same counterparty on a net basis in the balance sheet. Similarly, we present the fair values of noncurrent derivatives with the same counterparty on a net basis. Current derivatives are not netted with noncurrent derivatives in the balance sheet
v3.5.0.2
Earnings Per Share (Tables)
3 Months Ended
Jul. 31, 2016
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
 
July 31,
(Dollars in millions, except per share amounts)
2015
 
2016
Net income available to common stockholders
$
156

 
$
144

Share data (in thousands):
 
 
 
Basic average common shares outstanding
414,526

 
393,018

Dilutive effect of stock-based awards
2,750

 
2,991

Diluted average common shares outstanding
417,276

 
396,009

 
 
 
 
Basic earnings per share
$
0.38

 
$
0.37

Diluted earnings per share
$
0.37

 
$
0.36

v3.5.0.2
Debt (Tables)
3 Months Ended
Jul. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Principal and carrying amounts in millions)
April 30,
2016
 
July 31,
2016
1.00% notes, $250 principal amount, due in fiscal 2018
$
249

 
$
249

2.25% notes, $250 principal amount, due in fiscal 2023
248

 
248

1.20% notes, €300 principal amount, due in fiscal 2027

 
332

2.60% notes, £300 principal amount, due in fiscal 2029

 
391

3.75% notes, $250 principal amount, due in fiscal 2043
248

 
248

4.50% notes, $500 principal amount, due in fiscal 2046
485

 
485

 
$
1,230

 
$
1,953

v3.5.0.2
Pension and Other Postretirement Benefits (Tables)
3 Months Ended
Jul. 31, 2016
Compensation and Retirement Disclosure [Abstract]  
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
The following table shows the components of the pension and other postretirement benefit cost recognized for our U.S. benefit plans during the periods covered by this report. Information about similar international plans is not presented due to immateriality.
 
Three Months Ended
 
July 31,
(Dollars in millions)
2015
 
2016
Pension Benefits:
 
 
 
Service cost
$
6

 
$
6

Interest cost
9

 
9

Expected return on plan assets
(10
)
 
(10
)
Amortization of net actuarial loss
7

 
6

Net cost
$
12

 
$
11

 
 
 
 
Other Postretirement Benefits:
 
 
 
Interest cost
1

 
1

Amortization of prior service cost (credit)

 
(1
)
Net cost
$
1

 
$

v3.5.0.2
Fair Value Measurements (Tables)
3 Months Ended
Jul. 31, 2016
Fair Value Disclosures [Abstract]  
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:
(Dollars in millions)
 
Level 1

 
Level 2

 
Level 3

 
Total

April 30, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 
$

 
$
19

 
$

 
$
19

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
10

 

 
10

Short-term borrowings
 

 
271

 

 
271

Long-term debt
 

 
1,293

 

 
1,293

July 31, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
28

 

 
28

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
5

 

 
5

Short-term borrowings
 

 
288

 

 
288

Long-term debt
 

 
2,122

 

 
2,122

v3.5.0.2
Fair Value of Financial Instruments (Tables)
3 Months Ended
Jul. 31, 2016
Fair Value of Financial Instruments [Abstract]  
Comparison of the fair values and carrying amounts of financial instrument
The fair value of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments. We determine the fair value of currency derivatives and long-term debt as discussed in Note 8. 

Below is a comparison of the fair values and carrying amounts of these instruments:
 
April 30, 2016
 
July 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
(Dollars in millions)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
263

 
$
263

 
$
459

 
$
459

Currency derivatives
19

 
19

 
28

 
28

Liabilities:
 
 
 
 
 
 
 
Currency derivatives
10

 
10

 
5

 
5

Short-term borrowings
271

 
271

 
288

 
288

Long-term debt
1,230

 
1,293

 
1,953

 
2,122

v3.5.0.2
Derivative Financial Instruments (Tables)
3 Months Ended
Jul. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments, Gain (Loss) [Table Text Block]
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 during the periods covered by this report:
 
 
Three Months Ended
 
 
July 31,
(Dollars in millions)
Classification
2015
 
2016
Derivative Instruments
 
 
 
 
Currency derivatives designated as cash flow hedges:
 
 

 
 

Net gain (loss) recognized in AOCI
n/a
$
29

 
$
29

Net gain (loss) reclassified from AOCI into income
Net sales
13

 
10

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 income
Net sales
3

 
1

Net gain (loss) recognized in income
Other income
4

 
(5
)
Non-Derivative Hedging Instruments
 
 
 
 
Foreign currency-denominated debt designated as net investment hedge:
 
 
 
 
Net gain (loss) recognized in AOCI
n/a

 
(10
)
Foreign currency-denominated debt not designated as hedging instrument:
 
 
 
 
Net gain (loss) recognized in income
Other income

 
(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 as of April 30, 2016 and July 31, 2016.

(Dollars in millions)


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
)
July 31, 2016:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
25

 
(3
)
Currency derivatives
Other assets
 
14

 
(6
)
Currency derivatives
Accrued expenses
 
10

 
(5
)
Currency derivatives
Other liabilities
 
1

 
(2
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 

 
(2
)
Currency derivatives
Accrued expenses
 

 
(9
)
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, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
$
34

 
$
(15
)
 
$
19

 
$
(6
)
 
$
13

Derivative liabilities
(25
)
 
15

 
(10
)
 
6

 
(4
)
July 31, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
50

 
(22
)
 
28

 
(3
)
 
25

Derivative liabilities
(27
)
 
22

 
(5
)
 
3

 
(2
)
v3.5.0.2
Goodwill and Other Intangible Assets (Tables)
3 Months Ended
Jul. 31, 2016
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Intangible Assets and Goodwill [Table Text Block]
The following table summarizes the changes in goodwill and other intangible assets during the three months ended July 31, 2016:
(Dollars in millions)
Goodwill
 
Other Intangible Assets
Balance at April 30, 2016
$
590

 
$
595

Acquisitions (Note 14)
182

 
65

Foreign currency translation adjustment
(16
)
 
(11
)
Balance at July 31, 2016
$
756

 
$
649

v3.5.0.2
Stockholders' Equity (Tables)
3 Months Ended
Jul. 31, 2016
Stockholders' Equity Attributable to Parent [Abstract]  
Schedule of Stockholders Equity [Table Text Block]
The following table summarizes the changes in stockholders’ equity during the three months ended July 31, 2016:
(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, 2016
$
13

 
$
21

 
$
114

 
$
4,065

 
$
(350
)
 
$
(2,301
)
 
$
1,562

Cumulative effect of change in accounting principle (Note 1)
 
 
 
 
 
 
10

 
 
 
 
 
10

Net income
 
 
 
 
 
 
144

 
 
 
 
 
144

Net other comprehensive income (loss)
 
 
 
 
 
 
 
 
(52
)
 
 
 
(52
)
Cash dividends
 
 
 
 
 
 
(134
)
 
 
 
 
 
(134
)
Acquisition of treasury stock
 
 
 
 
 
 
 
 
 
 
(201
)
 
(201
)
Stock-based compensation expense
 
 
 
 
4

 
 
 
 
 
 
 
4

Stock issued under compensation plans
 
 
 
 
 
 
 
 
 
 
7

 
7

Loss on issuance of treasury stock issued under compensation plans
 
 
 
 
(10
)
 

 
 
 
 
 
(10
)
Stock split
12

 
22

 
(34
)
 
 
 
 
 
 
 

Balance at July 31, 2016
$
25

 
$
43

 
74

 
4,085

 
(402
)
 
(2,495
)
 
1,330

Dividends Declared [Table Text Block]
The following table summarizes the cash dividends declared per share on our Class A and Class B common stock during the three months ended July 31, 2016:
Declaration Date
 
Record Date
 
Payable Date
 
Amount per Share
May 26, 2016
 
June 6, 2016
 
July 1, 2016
 
$0.17
July 28, 2016
 
September 1, 2016
 
October 3, 2016
 
$0.17
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table summarizes the changes in each component of AOCI, net of tax, during the three months ended July 31, 2016:
(Dollars in millions)
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)
(67
)
 
12

 
3

 
(52
)
Balance at July 31, 2016
$
(198
)
 
$
23

 
$
(227
)
 
$
(402
)
v3.5.0.2
Other Comprehensive Income (Tables)
3 Months Ended
Jul. 31, 2016
Statement of Comprehensive Income [Abstract]  
Comprehensive Income (Loss) [Table Text Block]
The following table presents the components of net other comprehensive income (loss):
 
Three Months Ended
 
Three Months Ended
 
July 31, 2015
 
July 31, 2016
(Dollars in millions)
Pre-Tax
 
Tax
 
Net
 
Pre-Tax
 
Tax
 
Net
Currency translation adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on currency translation
$
(23
)
 
$
(1
)
 
$
(24
)
 
$
(68
)
 
$
1

 
$
(67
)
Reclassification to earnings

 

 

 

 

 

Other comprehensive income (loss), net
(23
)
 
(1
)
 
(24
)
 
(68
)
 
1

 
(67
)
Cash flow hedge adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net gain (loss) on hedging instruments
37

 
(12
)
 
25

 
29

 
(11
)
 
18

Reclassification to earnings1
(13
)
 
4

 
(9
)
 
(10
)
 
4

 
(6
)
Other comprehensive income (loss), net
24

 
(8
)
 
16

 
19

 
(7
)
 
12

Postretirement benefits adjustments:
 
 
 
 
 
 
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

 

 

 

Reclassification to earnings2
7

 
(3
)
 
4

 
5

 
(2
)
 
3

Other comprehensive income (loss), net
7

 
(3
)
 
4

 
5

 
(2
)
 
3

 
 
 
 
 
 
 
 
 
 
 
 
Total other comprehensive income (loss), net
$
8

 
$
(12
)
 
$
(4
)
 
$
(44
)
 
$
(8
)
 
$
(52
)
1Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations.
2Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality).
v3.5.0.2
Acquisition of Business (Tables)
3 Months Ended
Jul. 31, 2016
Acquisition of Business [Abstract]  
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]
The purchase price of approximately $341 million was preliminarily allocated based on management’s estimates and independent appraisals as follows:
(Dollars in millions)
June 1,
2016
Accounts receivable
$
11

Inventories
159

Other current assets
1

Property, plant, and equipment
19

Goodwill
182

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

v3.5.0.2
Condensed Consolidated Financial Statements (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
May 01, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Excess Tax Benefits from Stock Based Compensation $ 2  
Cumulative effect of change in accounting principle (Note 1)   $ 10
Retained Earnings [Member]    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Cumulative effect of change in accounting principle (Note 1)   $ 10
v3.5.0.2
Condensed Consolidated Financial Statements (Details 1)
Aug. 18, 2016
Stock split [Abstract]  
Stockholders' Equity Note, Stock Split, Conversion Ratio 2
v3.5.0.2
Inventories (Details) - USD ($)
$ in Millions
Jul. 31, 2016
Apr. 30, 2016
Inventories (Textual) [Abstract]    
Excess of current costs over stated LIFO value $ 253 $ 248
v3.5.0.2
Income Taxes (Details)
$ in Millions
3 Months Ended
Jul. 31, 2016
USD ($)
Income Taxes (Textual) [Abstract]  
Effective tax rate 28.20%
Expected tax rate 29.50%
Excess Tax Benefits from Stock Based Compensation $ 2
v3.5.0.2
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Basic and diluted earnings per share    
Net income available to common stockholders $ 144 $ 156
Share data (in thousands):    
Basic average common shares outstanding 393,018 414,526
Dilutive effect of stock-based awards 2,991 2,750
Diluted average common shares outstanding 396,009 417,276
Basic earnings per share (dollars per share) $ 0.37 $ 0.38
Diluted earnings per share (dollars per share) $ 0.36 $ 0.37
v3.5.0.2
Earnings Per Share (Details Textual) - shares
shares in Thousands
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Earnings Per Share (Textual) [Abstract]    
Common stock-based awards excluded from the calculation of diluted earnings per share 1,173 1,288
v3.5.0.2
Commitments and Contingencies (Details) - Credit Concentration Risk [Member]
$ in Millions
Jul. 31, 2016
USD ($)
Concentration Risk [Line Items]  
Guaranty exposure, maximum $ 21
Guaranty exposure, current $ 12
v3.5.0.2
Debt (Details)
€ in Millions, £ in Millions, $ in Millions
Jul. 31, 2016
EUR (€)
Jul. 31, 2016
GBP (£)
Jul. 31, 2016
USD ($)
Apr. 30, 2016
USD ($)
Debt Instrument [Line Items]        
Long-term debt     $ 1,953 $ 1,230
One Point Zero Percent Notes Due in Fiscal Two Thousand Eighteen [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount     $ 250 $ 250
Debt Instrument, Interest Rate, Stated Percentage 1.00% 1.00% 1.00% 1.00%
Long-term debt, including current portion     $ 249 $ 249
Two Point Two Five Percent Notes Due in Fiscal Two Thousand Twenty Three [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount     $ 250 $ 250
Debt Instrument, Interest Rate, Stated Percentage 2.25% 2.25% 2.25% 2.25%
Long-term debt, including current portion     $ 248 $ 248
One Point Two Percent Notes Due in Fiscal Two Thousand Twenty Seven [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount € 300   $ 335 $ 0
Debt Instrument, Interest Rate, Stated Percentage 1.20% 1.20% 1.20% 1.20%
Long-term debt, including current portion     $ 332 $ 0
Two Point Six Percent Notes Due in Fiscal Two Thousand Twenty Nine [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount   £ 300 $ 397 $ 0
Debt Instrument, Interest Rate, Stated Percentage 2.60% 2.60% 2.60% 2.60%
Long-term debt, including current portion     $ 391 $ 0
Three Point Seven Five Percent Notes Due in Fiscal Two Thousand Forty Three [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount     $ 250 $ 250
Debt Instrument, Interest Rate, Stated Percentage 3.75% 3.75% 3.75% 3.75%
Long-term debt, including current portion     $ 248 $ 248
Four Point Five Percent Notes Due in Fiscal Two Thousand Forty Six [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount     $ 500 $ 500
Debt Instrument, Interest Rate, Stated Percentage 4.50% 4.50% 4.50% 4.50%
Long-term debt, including current portion     $ 485 $ 485
v3.5.0.2
Debt (Details Textual)
€ in Millions, £ in Millions, $ in Millions
Jul. 31, 2016
EUR (€)
Jul. 31, 2016
GBP (£)
Jul. 31, 2016
USD ($)
Apr. 30, 2016
USD ($)
One Point Two Percent Notes Due in Fiscal Two Thousand Twenty Seven [Member]        
Debt Issuances and Repayments [Abstract]        
Debt Instrument, Face Amount € 300   $ 335 $ 0
Debt Instrument, Interest Rate, Stated Percentage 1.20% 1.20% 1.20% 1.20%
Long-term Debt     $ 332 $ 0
Two Point Six Percent Notes Due in Fiscal Two Thousand Twenty Nine [Member]        
Debt Issuances and Repayments [Abstract]        
Debt Instrument, Face Amount   £ 300 $ 397 $ 0
Debt Instrument, Interest Rate, Stated Percentage 2.60% 2.60% 2.60% 2.60%
Long-term Debt     $ 391 $ 0
v3.5.0.2
Debt (Details Textual 2) - USD ($)
$ in Millions
3 Months Ended 12 Months Ended
Jul. 31, 2016
Apr. 30, 2015
Apr. 30, 2016
Short-term Debt [Abstract]      
Short-term borrowings $ 288   $ 271
Commercial Paper $ 285   $ 269
Commercial Paper Borrowings, Weighted Average Interest Rate 0.66%   0.53%
Commercial Paper Borrowings, Average Remaining Maturity 12 days 26 days  
v3.5.0.2
Pension and Other Postretirement Benefits (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Pension Benefits [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Service cost $ 6 $ 6
Interest cost 9 9
Expected return on plan assets (10) (10)
Amortization of:    
Net actuarial loss 6 7
Net cost 11 12
Other Postretirement Benefits [Member]    
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]    
Interest cost 1 1
Amortization of:    
Prior service cost (1) 0
Net cost $ 0 $ 1
v3.5.0.2
Fair Value Measurements (Details) - USD ($)
$ in Millions
Jul. 31, 2016
Apr. 30, 2016
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings $ 288 $ 271
Long-term debt 2,122 1,293
Currency derivatives [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 5 10
Fair Value, Measurements, Recurring [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 288 271
Long-term debt 2,122 1,293
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 28 19
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 5 10
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 0 0
Long-term debt 0 0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 0 0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 0 0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 288 271
Long-term debt 2,122 1,293
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 28 19
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 5 10
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 0 0
Long-term debt 0 0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 0 0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives $ 0 $ 0
v3.5.0.2
Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Jul. 31, 2016
Apr. 30, 2016
Jul. 31, 2015
Apr. 30, 2015
Assets:        
Cash and cash equivalents, Carrying Amount $ 459 $ 263 $ 494 $ 370
Cash and cash equivalents, Fair Value 459 263    
Liabilities:        
Short-term borrowings, Carrying Amount 288 271    
Short-term borrowings, Fair Value 288 271    
Long-term debt, Carrying Amount 1,953 1,230    
Long-term debt, Fair Value 2,122 1,293    
Currency derivatives [Member]        
Assets:        
Currency derivatives, Fair Value 28 19    
Liabilities:        
Currency derivatives, Fair Value 5 10    
Reported Value Measurement [Member]        
Assets:        
Cash and cash equivalents, Carrying Amount 459 263    
Liabilities:        
Short-term borrowings, Carrying Amount 288 271    
Long-term debt, Carrying Amount 1,953 1,230    
Reported Value Measurement [Member] | Currency derivatives [Member]        
Assets:        
Currency derivatives, Carrying Amount 28 19    
Liabilities:        
Currency derivatives, Carrying Amount $ 5 $ 10    
v3.5.0.2
Derivative Financial Instruments (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Cash Flow Hedging [Member] | Treasury Lock [Member]    
Derivative Instruments [Abstract]    
Net gain (loss) recognized in AOCI   $ 8
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member]    
Derivative Instruments [Abstract]    
Net gain (loss) recognized in AOCI $ 29 29
Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Treasury Lock [Member]    
Derivative Instruments [Abstract]    
Net gain (loss) recognized in AOCI 0 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 income 10 13
Net Sales [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member]    
Derivative Instruments [Abstract]    
Gain (loss) on derivative instruments recognized in income 1 3
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member]    
Derivative Instruments [Abstract]    
Gain (loss) on derivative instruments recognized in income (5) 4
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 (10) 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 income $ (1) $ 0
v3.5.0.2
Derivative Financial Instruments (Details 1) - Currency derivatives [Member] - USD ($)
$ in Millions
Jul. 31, 2016
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 $ 0 $ 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 gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 25 23
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 14 3
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 10 4
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 1 3
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 (2) (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 (9)  
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position (3) (2)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position (6) (2)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position (5) (8)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position $ (2) $ (9)
v3.5.0.2
Derivative Financial Instruments (Details Textual) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Apr. 30, 2016
Jun. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative, Notional Amount $ 1,164   $ 1,265  
Derivative Financial Instruments (Textual) [Abstract]        
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months $ 23      
Maximum term of outstanding derivative contracts 36 months      
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position $ 5   $ 8  
Designated as Hedging Instrument [Member] | Net Investment Hedging [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Debt Instrument, Face Amount 569      
Treasury Lock [Member] | Cash Flow Hedging [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net   $ 8    
Treasury Lock [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net $ 0 $ 8    
Four Point Five Percent Notes Due in Fiscal Two Thousand Forty Six [Member]        
Derivative Instruments, Gain (Loss) [Line Items]        
Debt Instrument, Face Amount       $ 500
Debt Instrument, Interest Rate, Stated Percentage       4.50%
v3.5.0.2
Derivative Financial Instruments Offsetting Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Jul. 31, 2016
Apr. 30, 2016
Offsetting Assets and Liabilities [Line Items]    
Gross Amount of Derivative Assets $ 50 $ 34
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet (22) (15)
Net Amount of Derivative Assets Presented in Balance Sheet 28 19
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet (3) (6)
Net Amount of Derivative Assets 25 13
Gross Amount of Derivative Liabilities (27) (25)
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet 22 15
Net Amount of Derivative Liabilities Presented in Balance Sheet 5 10
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet 3 6
Net Amount of Derivative Liabilities $ 2 $ 4
v3.5.0.2
Goodwill and Other Intangible Assets (Details)
$ in Millions
3 Months Ended
Jul. 31, 2016
USD ($)
Goodwill [Roll Forward]  
Balance at April 30, 2016 $ 590
Acquisitions (Note 14) 182
Foreign currency translation adjustment (16)
Balance at July 31, 2016 756
Indefinite-lived Intangible Assets [Roll Forward]  
Balance at April 30, 2016 595
Acquisitions (Note 14) 65
Foreign currency translation adjustment (11)
Balance at July 31, 2016 $ 649
v3.5.0.2
Stockholders' Equity (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
May 01, 2016
Balance at April 30, 2016 $ 1,562    
Cumulative effect of change in accounting principle (Note 1)     $ 10
Net income 144 $ 156  
Net other comprehensive income (loss) (52) $ (4)  
Cash dividends (134)    
Acquisition of treasury stock (201)    
Stock-based compensation expense 4    
Stock issued under compensation plans 7    
Loss on issuance of treasury stock issued under compensation plans (10)    
Stock split 0    
Balance at July 31, 2016 1,330    
Additional Paid-in Capital [Member]      
Balance at April 30, 2016 114    
Stock-based compensation expense 4    
Loss on issuance of treasury stock issued under compensation plans (10)    
Stock split (34)    
Balance at July 31, 2016 74    
Retained Earnings [Member]      
Balance at April 30, 2016 4,065    
Cumulative effect of change in accounting principle (Note 1)     $ 10
Net income 144    
Cash dividends (134)    
Balance at July 31, 2016 4,085    
AOCI Attributable to Parent [Member]      
Balance at April 30, 2016 (350)    
Net other comprehensive income (loss) (52)    
Balance at July 31, 2016 (402)    
Treasury Stock, Common [Member]      
Balance at April 30, 2016 (2,301)    
Acquisition of treasury stock (201)    
Stock issued under compensation plans 7    
Balance at July 31, 2016 (2,495)    
Common stock, Class A, voting [Member] | Common Stock [Member]      
Balance at April 30, 2016 13    
Stock split 12    
Balance at July 31, 2016 25    
Common stock, Class B, nonvoting [Member] | Common Stock [Member]      
Balance at April 30, 2016 21    
Stock split 22    
Balance at July 31, 2016 $ 43    
v3.5.0.2
Stockholders' Equity Stock Split (Details)
$ / shares in Units, $ in Millions
3 Months Ended
Aug. 18, 2016
Jul. 31, 2016
USD ($)
$ / shares
shares
Apr. 30, 2016
$ / shares
shares
Class of Stock [Line Items]      
Stockholders' Equity Note, Stock Split, Conversion Ratio 2    
Adjustments to Additional Paid in Capital, Stock Split | $   $ 0  
Common Stock, Par or Stated Value Per Share | $ / shares   $ 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 or Stated Value Per Share | $ / shares   $ 0.15 $ 0.15
Common stock, Class B, nonvoting [Member]      
Class of Stock [Line Items]      
Common Stock, Shares Authorized   400,000,000 400,000,000
Common Stock, Shares, Issued   284,626,000 142,313,000
Common Stock, Par or Stated Value Per Share | $ / shares   $ 0.15 $ 0.15
Additional Paid-in Capital [Member]      
Class of Stock [Line Items]      
Adjustments to Additional Paid in Capital, Stock Split | $   $ 34  
v3.5.0.2
Stockholders' Equity Dividends (Details) - $ / shares
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Class of Stock [Line Items]    
Common Stock, Dividends, Per Share, Declared $ 0.3400 $ 0.3150
July 2016 dividend payment [Member]    
Class of Stock [Line Items]    
Dividends Payable, Date Declared, Month and Year May 26, 2016  
Dividends Payable, Date of Record Jun. 06, 2016  
Dividends Payable, Date to be Paid Jul. 01, 2016  
Common Stock, Dividends, Per Share, Declared $ 0.17  
October 2016 dividend payment [Member]    
Class of Stock [Line Items]    
Dividends Payable, Date Declared, Month and Year Jul. 28, 2016  
Dividends Payable, Date of Record Sep. 01, 2016  
Dividends Payable, Date to be Paid Oct. 03, 2016  
Common Stock, Dividends, Per Share, Declared $ 0.17  
v3.5.0.2
Stockholders' Equity Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance $ (350)  
Net other comprehensive income (loss) (52) $ (4)
Ending balance (402)  
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (131)  
Net other comprehensive income (loss) (67) (24)
Ending balance (198)  
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance 11  
Net other comprehensive income (loss) 12 16
Ending balance 23  
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]    
Accumulated Other Comprehensive Income (Loss) [Line Items]    
Beginning balance (230)  
Net other comprehensive income (loss) 3 $ 4
Ending balance $ (227)  
v3.5.0.2
Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended
Jul. 31, 2016
Jul. 31, 2015
Before Tax:    
Net other comprehensive income (loss) $ (44) $ 8
Tax Effect:    
Net other comprehensive income (loss) (8) (12)
Net of Tax:    
Net other comprehensive income (loss) (52) (4)
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]    
Before Tax:    
Net gain (loss) (68) (23)
Reclassification to earnings 0 0
Net other comprehensive income (loss) (68) (23)
Tax Effect:    
Net gain (loss) 1 (1)
Reclassification to earnings 0 0
Net other comprehensive income (loss) 1 (1)
Net of Tax:    
Net gain (loss) (67) (24)
Reclassification to earnings 0 0
Net other comprehensive income (loss) (67) (24)
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]    
Before Tax:    
Net gain (loss) 29 37
Reclassification to earnings [1] (10) (13)
Net other comprehensive income (loss) 19 24
Tax Effect:    
Net gain (loss) (11) (12)
Reclassification to earnings [1] 4 4
Net other comprehensive income (loss) (7) (8)
Net of Tax:    
Net gain (loss) 18 25
Reclassification to earnings [1] (6) (9)
Net other comprehensive income (loss) 12 16
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]    
Before Tax:    
Net gain (loss) 0 0
Reclassification to earnings [2] 5 7
Net other comprehensive income (loss) 5 7
Tax Effect:    
Net gain (loss) 0 0
Reclassification to earnings [2] (2) (3)
Net other comprehensive income (loss) (2) (3)
Net of Tax:    
Net gain (loss) 0 0
Reclassification to earnings [2] 3 4
Net other comprehensive income (loss) $ 3 $ 4
[1] Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations.
[2] Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans, about which no information is presented in Note 7 due to immateriality).
v3.5.0.2
Acquisition of Business (Details) - Jun. 01, 2016 - BenRiach [Member]
£ in Millions, $ in Millions
GBP (£)
USD ($)
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   90.00%
Business Combination, Consideration Transferred, Liabilities Incurred £ 24 $ 34
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners   10.00%
v3.5.0.2
Acquisition of Business Purchase Price Allocation (Details) - USD ($)
$ in Millions
Jun. 01, 2016
Jul. 31, 2016
Apr. 30, 2016
Business Acquisition [Line Items]      
Goodwill   $ 756 $ 590
BenRiach [Member]      
Business Acquisition [Line Items]      
Business Combination, Consideration Transferred $ 341    
Accounts receivable 11    
Inventories 159    
Other current assets 1    
Property, plant, and equipment 19    
Goodwill 182    
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