BROWN FORMAN CORP, 10-Q filed on 3/2/2016
Quarterly Report
v3.3.1.900
Document and Entity Information - shares
9 Months Ended
Jan. 31, 2016
Feb. 29, 2016
Document Information [Line Items]    
Entity Registrant Name BROWN FORMAN CORP  
Entity Central Index Key 0000014693  
Document Type 10-Q  
Document Period End Date Jan. 31, 2016  
Amendment Flag false  
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --04-30  
Entity Filer Category Large Accelerated Filer  
Common stock, Class A, voting [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   84,530,209
Common stock, Class B, nonvoting [Member]    
Document Information [Line Items]    
Entity Common Stock, Shares Outstanding   115,518,459
v3.3.1.900
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Income Statement [Abstract]        
Net sales $ 1,083 $ 1,093 $ 3,078 $ 3,149
Excise taxes 274 280 718 754
Cost of sales 254 260 729 738
Gross profit 555 553 1,631 1,657
Advertising expenses 107 112 317 334
Selling, general, and administrative expenses 167 163 507 512
Other expense (income), net 3 6 0 16
Operating income 278 272 807 795
Interest income 0 0 1 1
Interest expense 12 6 34 21
Income before income taxes 266 266 774 775
Income taxes 76 80 229 232
Net income $ 190 $ 186 $ 545 $ 543
Earnings per share:        
Basic (dollars per share) $ 0.94 $ 0.88 $ 2.67 $ 2.56
Diluted (dollars per share) 0.94 0.87 2.65 2.54
Cash dividends per common share:        
Declared (dollars per share) 0.680 0.630 1.310 1.210
Paid (dollars per share) $ 0.340 $ 0.315 $ 0.970 $ 0.895
v3.3.1.900
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Statement of Comprehensive Income [Abstract]        
Net income $ 190 $ 186 $ 545 $ 543
Other comprehensive income (loss), net of tax:        
Currency translation adjustments (30) (62) (58) (108)
Cash flow hedge adjustments 8 34 20 61
Postretirement benefits adjustments 5 4 15 20
Net other comprehensive income (loss) (17) (24) (23) (27)
Comprehensive income $ 173 $ 162 $ 522 $ 516
v3.3.1.900
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Assets    
Cash and cash equivalents $ 317 $ 370
Accounts receivable, less allowance for doubtful accounts of $10 and $9 at April 30 and January 31, respectively 630 583
Inventories:    
Barreled whiskey 634 571
Finished goods 203 200
Work in process 113 121
Raw materials and supplies 81 61
Total inventories 1,031 953
Current deferred tax assets 11 16
Assets held for sale 48 0
Other current assets 368 332
Total current assets 2,405 2,254
Property, plant, and equipment, net 621 586
Goodwill 589 607
Other intangible assets 582 611
Deferred tax assets 14 18
Other assets 122 112
Total assets 4,333 4,188
Liabilities    
Accounts payable and accrued expenses 498 497
Dividends payable 68 0
Accrued income taxes 17 12
Current deferred tax liabilities 8 9
Short-term borrowings 509 190
Current portion of long-term debt 0 250
Total current liabilities 1,100 958
Long-term debt 1,229 743
Deferred tax liabilities 138 107
Accrued pension and other postretirement benefits 305 311
Other liabilities 144 164
Total liabilities $ 2,916 $ 2,283
Commitments and contingencies
Stockholders' Equity    
Additional paid-in capital $ 114 $ 99
Retained earnings 3,561 3,300
Accumulated other comprehensive income (loss), net of tax (323) (300)
Treasury stock, at cost (18,613,000 and 26,160,000 shares at April 30 and January 31, respectively) (1,969) (1,228)
Total stockholders' equity 1,417 1,905
Total liabilities and stockholders' equity 4,333 4,188
Common stock, Class A, voting [Member]    
Stockholders' Equity    
Common stock 13 13
Common stock, Class B, nonvoting [Member]    
Stockholders' Equity    
Common stock $ 21 $ 21
v3.3.1.900
Condensed Consolidated Balance Sheets (Parenthetical) (Unaudited) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Allowance for doubtful accounts $ 9 $ 10
Treasury stock, shares 26,160,000 18,613,000
Common stock, Class A, voting [Member]    
Common stock, shares authorized 85,000,000 85,000,000
Common stock, shares issued 85,000,000 85,000,000
Common stock, Class B, nonvoting [Member]    
Common stock, shares authorized 400,000,000 400,000,000
Common stock, shares issued 142,313,000 142,313,000
v3.3.1.900
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Millions
9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Cash flows from operating activities:    
Net income $ 545 $ 543
Adjustments to reconcile net income to net cash provided by operations:    
Depreciation and amortization 40 38
Stock-based compensation expense 12 9
Deferred income taxes 12 (8)
Changes in assets and liabilities (161) (207)
Cash provided by operating activities 448 375
Cash flows from investing activities:    
Additions to property, plant, and equipment (88) (92)
Acquisition of brand names and trademarks 0 (3)
Computer software expenditures (2) (1)
Cash used for investing activities (90) (96)
Cash flows from financing activities:    
Net increase in short-term borrowings 319 1
Repayment of long-term debt (250) 0
Proceeds from long-term debt 490 0
Debt issuance costs (5) 0
Net payments related to exercise of stock-based awards (8) (7)
Excess tax benefits from stock-based awards 15 18
Acquisition of treasury stock (762) (271)
Dividends paid (199) (190)
Cash used for financing activities (400) (449)
Effect of exchange rate changes on cash and cash equivalents (11) (17)
Net decrease in cash and cash equivalents (53) (187)
Cash and cash equivalents, beginning of period 370 437
Cash and cash equivalents, end of period $ 317 $ 250
v3.3.1.900
Condensed Consolidated Financial Statements
9 Months Ended
Jan. 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, 2015 (the 2015 Form 10-K).

In our opinion, the accompanying financial statements include all adjustments, consisting only of normal recurring adjustments, necessary for a fair statement of our financial results for the periods covered by this report.

We prepared the accompanying financial statements on a basis that is substantially consistent with the accounting principles applied in our 2015 Form 10-K, although during the first quarter of fiscal 2016 we adopted new guidance for the presentation of debt issuance costs. Under the new guidance, debt issuance costs are presented as a direct deduction from the debt liability rather than as an asset. In adopting the new guidance, we retrospectively adjusted our balance sheet as of April 30, 2015. As a result, the carrying amounts of other assets (noncurrent) and long-term debt have decreased by $5 million from the amounts previously reported as of that date.

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

In November 2015, the FASB issued new guidance that will require all deferred tax assets and liabilities to be classified as noncurrent on our balance sheet. The new guidance will become effective for us beginning fiscal 2018, although we may voluntarily adopt the new guidance prior to that fiscal year. We have not yet determined the period in which we will adopt the new guidance.

On February 25, 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.
v3.3.1.900
Inventories
9 Months Ended
Jan. 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 $234 million higher than reported as of April 30, 2015, and $248 million higher than reported as of January 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.
v3.3.1.900
Income Taxes
9 Months Ended
Jan. 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 29.5% for the nine months ended January 31, 2016, is based on an expected tax rate of 29.6% 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.
v3.3.1.900
Earnings Per Share
9 Months Ended
Jan. 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, including stock options, stock-settled stock appreciation rights, restricted stock units, deferred stock units, and shares of restricted stock. We calculate that dilutive effect using the “treasury stock method” (as defined by GAAP).

The following table presents information concerning basic and diluted earnings per share:
 
Three Months Ended
 
Nine Months Ended
 
January 31,
 
January 31,
(Dollars in millions, except per share amounts)
2015
 
2016
 
2015
 
2016
Net income available to common stockholders
$
186

 
$
190

 
$
543

 
$
545

Share data (in thousands):
 
 
 
 
 
 
 
Basic average common shares outstanding
211,126

 
201,182

 
212,189

 
204,242

Dilutive effect of stock-based awards
1,480

 
1,208

 
1,512

 
1,334

Diluted average common shares outstanding
212,606

 
202,390

 
213,701

 
205,576

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.88

 
$
0.94

 
$
2.56

 
$
2.67

Diluted earnings per share
$
0.87

 
$
0.94

 
$
2.54

 
$
2.65



We excluded common stock-based awards for approximately 359,000 shares and 375,000 shares from the calculation of diluted earnings per share for the three months ended January 31, 2015 and 2016, respectively. We excluded common stock-based awards for approximately 363,000 shares and 478,000 shares from the calculation of diluted earnings per share for the nine months ended January 31, 2015 and 2016, respectively. We excluded those awards because they were not dilutive for those periods under the treasury stock method.
v3.3.1.900
Contingencies
9 Months Ended
Jan. 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 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 January 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 $19 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, 2016, our actual exposure under the guaranty of the importer's obligation is approximately $8 million. We also have accounts receivable from that importer of approximately $19 million at January 31, 2016, 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.
v3.3.1.900
Debt
9 Months Ended
Jan. 31, 2016
Debt Disclosure [Abstract]  
Debt
Debt
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Dollars in millions)
April 30,
2015
 
January 31,
2016
2.50% notes, due in fiscal 2016
$
250

 
$

1.00% notes, due in fiscal 2018
248

 
249

2.25% notes, due in fiscal 2023
247

 
247

3.75% notes, due in fiscal 2043
248

 
248

4.50% notes, due in fiscal 2046

 
485

 
993

 
1,229

Less current portion
250

 

 
$
743

 
$
1,229


We issued senior, unsecured notes with an aggregate principal amount of $500 million in June 2015. Interest on the notes will accrue at a rate of 4.50% and be paid semi-annually. As of January 31, 2016, the carrying amount of the notes was $485 million ($500 million principal, less discounts of $10 million and issuance costs of $5 million). The notes are due on July 15, 2045.
We repaid our $250 million of 2.50% notes on their maturity date of January 15, 2016.
As of April 30, 2015, our short-term borrowings of $190 million included $183 million of commercial paper, with an average interest rate of 0.17% and a remaining maturity of 13 days. As of January 31, 2016, our short-term borrowings of $509 million included $506 million of commercial paper, with an average interest rate of 0.61% and a remaining maturity of 37 days.
v3.3.1.900
Pension and Other Postretirement Benefits
9 Months Ended
Jan. 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
 
Nine Months Ended
 
January 31,
 
January 31,
(Dollars in millions)
2015
 
2016
 
2015
 
2016
Pension Benefits:
 
 
 
 
 
 
 
Service cost
$
5

 
$
6

 
$
16

 
$
19

Interest cost
8

 
9

 
25

 
26

Expected return on plan assets
(10
)
 
(10
)
 
(31
)
 
(30
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost

 

 
1

 
1

Net actuarial loss
6

 
7

 
17

 
21

Net cost
$
9

 
$
12

 
$
28

 
$
37

 
 
 
 
 
 
 
 
Other Postretirement Benefits:
 
 
 
 
 
 
 
Service cost
$

 
$

 
$
1

 
$
1

Interest cost
1

 
1

 
2

 
2

Amortization of:
 
 
 
 
 
 
 
Prior service cost
(1
)
 
(1
)
 
(1
)
 
(2
)
Net actuarial loss

 

 
1

 
1

Net cost
$

 
$

 
$
3

 
$
2

v3.3.1.900
Fair Value Measurements
9 Months Ended
Jan. 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, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 
$

 
$
59

 
$

 
$
59

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
18

 

 
18

Short-term borrowings
 

 
190

 

 
190

Current portion of long-term debt
 

 
253

 

 
253

Long-term debt
 

 
735

 

 
735

January 31, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
77

 

 
77

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
1

 

 
1

Short-term borrowings
 

 
509

 

 
509

Long-term debt
 

 
1,256

 

 
1,256



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.
v3.3.1.900
Fair Value of Financial Instruments
9 Months Ended
Jan. 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 derivative financial instruments and long-term debt as discussed in Note 8. 

Below is a comparison of the fair values and carrying amounts of these instruments:
 
April 30, 2015
 
January 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
(Dollars in millions)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
370

 
$
370

 
$
317

 
$
317

Currency derivatives
59

 
59

 
77

 
77

Liabilities:
 
 
 
 
 
 
 
Currency derivatives
18

 
18

 
1

 
1

Short-term borrowings
190

 
190

 
509

 
509

Current portion of long-term debt
250

 
253

 

 

Long-term debt
743

 
735

 
1,229

 
1,256

v3.3.1.900
Derivative Financial Instruments
9 Months Ended
Jan. 31, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments
Derivative Financial Instruments 
Our multinational business exposes us to global market risks, including the effect of fluctuations in currency exchange rates, commodity prices, and interest rates. We use derivatives to help manage financial exposures that occur in the normal course of business. We formally document the purpose of each derivative contract, which includes linking the contract to the financial exposure it is designed to mitigate. We do not hold or issue derivatives for trading or speculative purposes.

We use currency derivative contracts to limit our exposure to the currency exchange risk that we cannot mitigate internally by using netting strategies. We designate most of these contracts as cash flow hedges of forecasted transactions (expected to occur within three years). We record all changes in the fair value of cash flow hedges (except any ineffective portion) in accumulated other comprehensive income (AOCI) until the underlying hedged transaction occurs, at which time we reclassify that amount into earnings. We assess the effectiveness of these hedges based on changes in forward exchange rates. The ineffective portion of the changes in fair value of our hedges (recognized immediately in earnings) during the periods presented in this report was not material.

We do not designate some of our currency derivatives as hedges because we use them to at least partially offset the immediate earnings impact of changes in foreign exchange rates on existing assets or liabilities. We immediately recognize the change in fair value of these contracts in earnings.

We had outstanding currency derivatives, related primarily to our euro, British pound, and Australian dollar exposures, with notional amounts totaling $1,212 million at April 30, 2015 and $1,274 million at January 31, 2016.

We use forward purchase contracts with suppliers to protect against corn price volatility. We expect to physically take delivery of the corn underlying each contract and use it for production over a reasonable period of time. Accordingly, we account for these contracts as normal purchases rather than derivative instruments.

During May 2015, we entered into interest rate derivative contracts (U.S. treasury lock agreements) to manage the interest rate risk related to the anticipated issuance of fixed-rate senior, unsecured notes. We designated the contracts as cash flow hedges of the future interest payments associated with the anticipated notes. Upon issuance of the notes in June 2015 (see Note 6), we settled the contracts for a gain of $8 million. The entire gain was recorded to AOCI and will be amortized as a reduction of interest expense over the life of the notes.

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

 
 

Net gain (loss) recognized in AOCI
n/a
$
71

 
$
29

Net gain (loss) reclassified from AOCI into income
Net sales
16

 
17

Derivatives not designated as hedging instruments:
 
 

 
 

Currency derivatives – net gain (loss) recognized in income
Net sales
19

 
5

Currency derivatives – net gain (loss) recognized in income
Other income
11

 
(2
)
 
 
 
 
 
 
 
Nine Months Ended
 
 
January 31,
(Dollars in millions)
Classification
2015
 
2016
Currency derivatives designated as cash flow hedges:
 
 

 
 

Net gain (loss) recognized in AOCI
n/a
$
118

 
$
66

Net gain (loss) reclassified from AOCI into income
Net sales
20

 
46

Interest rate derivatives designated as cash flow hedges:
 
 
 
 
Net gain (loss) recognized in AOCI
n/a

 
8

Derivatives not designated as hedging instruments:
 
 

 
 

Currency derivatives – net gain (loss) recognized in income
Net sales
31

 
9

Currency derivatives – net gain (loss) recognized in income
Other income
5

 
2



We expect to reclassify $45 million of deferred net gains recorded in AOCI as of January 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 January 31, 2016, the maximum term of our outstanding derivative contracts was 36 months.

The following table presents the fair values of our derivative instruments as of April 30, 2015 and January 31, 2016.

(Dollars in millions)


Classification
 
Fair value of derivatives in a gain position
 
Fair value of derivatives in a
loss position
April 30, 2015:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
$
42

 
$
(2
)
Currency derivatives
Other assets
 
20

 
(3
)
Currency derivatives
Accrued expenses
 

 
(6
)
Currency derivatives
Other liabilities
 

 
(6
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
3

 
(1
)
Currency derivatives
Accrued expenses
 
1

 
(7
)
January 31, 2016:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
52

 

Currency derivatives
Other assets
 
24

 
(1
)
Currency derivatives
Accrued expenses
 

 
(1
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
5

 
(3
)


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

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

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

Some of our derivative instruments require us to maintain a specific level of creditworthiness, which we have maintained. If our creditworthiness were to fall below that level, then the counterparties to our derivative instruments could request immediate payment or collateralization for derivative instruments in net liability positions. The aggregate fair value of all derivatives with creditworthiness requirements that were in a net liability position was $18 million at April 30, 2015 and $0 at January 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, 2015:
 
 
 
 
 
 
 
 
 
Derivative assets
$
65

 
$
(6
)
 
$
59

 
$

 
$
59

Derivative liabilities
(24
)
 
6

 
(18
)
 

 
(18
)
January 31, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
81

 
(4
)
 
77

 
(1
)
 
76

Derivative liabilities
(5
)
 
4

 
(1
)
 
1

 



No cash collateral was received or pledged related to our derivative contracts as of April 30, 2015 and January 31, 2016.
v3.3.1.900
Accumulated Other Comprehensive Income
9 Months Ended
Jan. 31, 2016
Accumulated Other Comprehensive Income [Abstract]  
Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income
The following table summarizes the changes in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended January 31, 2015 and 2016:
 
Currency Translation Adjustments
 
Cash Flow Hedge Adjustments
 
Postretirement Benefits Adjustments
 
Total AOCI
 
 
 
 
 
 
 
 
Balance at October 31, 2014
$
(40
)
 
$
23

 
$
(174
)
 
$
(191
)
Net other comprehensive income (loss)
(62
)
 
34

 
4

 
(24
)
Balance at January 31, 2015
$
(102
)
 
$
57

 
$
(170
)
 
$
(215
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at October 31, 2015
$
(136
)
 
$
40

 
$
(210
)
 
$
(306
)
Net other comprehensive income (loss)
(30
)
 
8

 
5

 
(17
)
Balance at January 31, 2016
$
(166
)
 
$
48

 
$
(205
)
 
$
(323
)

The following table presents the components of net other comprehensive income (loss) during the three months ended January 31, 2015 and 2016:
 
Pre-Tax
 
Tax
 
Net
Three Months Ended January 31, 2015
 
 
 
 
 
Currency translation adjustments
$
(65
)
 
$
3

 
$
(62
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
71

 
(28
)
 
43

Reclassification to earnings1
(16
)
 
7

 
(9
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
6

 
(2
)
 
4

Net other comprehensive income (loss)
$
(4
)
 
$
(20
)
 
$
(24
)
 
 
 
 
 
 
Three Months Ended January 31, 2016
 
 
 
 
 
Currency translation adjustments
$
(30
)
 
$

 
$
(30
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
29

 
(11
)
 
18

Reclassification to earnings1
(17
)
 
7

 
(10
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
7

 
(2
)
 
5

Net other comprehensive income (loss)
$
(11
)
 
$
(6
)
 
$
(17
)
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 information is not presented in Note 7 due to immateriality).

The following table summarizes the changes in each component of AOCI, net of tax, during the nine months ended January 31, 2015 and 2016:
 
Currency Translation Adjustments
 
Cash Flow Hedge Adjustments
 
Postretirement Benefits Adjustments
 
Total AOCI
 
 
 
 
 
 
 
 
Balance at April 30, 2014
$
6

 
$
(4
)
 
$
(190
)
 
$
(188
)
Net other comprehensive income (loss)
(108
)
 
61

 
20

 
(27
)
Balance at January 31, 2015
$
(102
)
 
$
57

 
$
(170
)
 
$
(215
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 30, 2015
$
(108
)
 
$
28

 
$
(220
)
 
$
(300
)
Net other comprehensive income (loss)
(58
)
 
20

 
15

 
(23
)
Balance at January 31, 2016
$
(166
)
 
$
48

 
$
(205
)
 
$
(323
)

The following table presents the components of net other comprehensive income (loss) during the nine months ended January 31, 2015 and 2016:
 
Pre-Tax
 
Tax
 
Net
Nine Months Ended January 31, 2015
 
 
 
 
 
Currency translation adjustments
$
(113
)
 
$
5

 
$
(108
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
118

 
(45
)
 
73

Reclassification to earnings1
(20
)
 
8

 
(12
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost
14

 
(5
)
 
9

Reclassification to earnings2
18

 
(7
)
 
11

Net other comprehensive income (loss)
$
17

 
$
(44
)
 
$
(27
)
 
 
 
 
 
 
Nine Months Ended January 31, 2016
 
 
 
 
 
Currency translation adjustments
$
(57
)
 
$
(1
)
 
$
(58
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
74

 
(26
)
 
48

Reclassification to earnings1
(46
)
 
18

 
(28
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
23

 
(8
)
 
15

Net other comprehensive income (loss)
$
(6
)
 
$
(17
)
 
$
(23
)
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 information is not presented in Note 7 due to immateriality).
v3.3.1.900
Dividends Payable
9 Months Ended
Jan. 31, 2016
Dividends [Abstract]  
Dividends Payable
Dividends Payable
On January 28, 2016, our Board of Directors declared a regular quarterly cash dividend of $0.34 per share on our Class A and
Class B common stock. Stockholders of record on March 9, 2016, will receive the cash dividend on April 1, 2016.
v3.3.1.900
Assets Held for Sale (Notes)
9 Months Ended
Jan. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Assets Held for Sale [Text Block]
Assets Held for Sale / Subsequent Event
During the quarter ended January 31, 2016, we reached an agreement to sell our Southern Comfort and Tuaca brands to Sazerac Company, Inc. The total book value of the related business assets as of January 31, 2016, was $48 million, and consisted of the following:
 
 
January 31, 2016
(Dollars in millions)
 
 
Inventories
 
$
10

Goodwill
 
16

Other intangible assets
 
22

 
 
$
48



The total book value is presented as assets held for sale in the accompanying condensed consolidated balance sheet as of January 31, 2016.

On March 1, 2016, we completed the sale to Sazerac Company, Inc. for approximately $542 million in cash (subject to a post-closing inventory adjustment). As a result of the sale, we expect to record a one-time operating income gain of approximately $483 million during the quarter ending April 30, 2016.
v3.3.1.900
Derivative Financial Instruments (Policies)
9 Months Ended
Jan. 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
v3.3.1.900
Earnings Per Share (Tables)
9 Months Ended
Jan. 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
 
Nine Months Ended
 
January 31,
 
January 31,
(Dollars in millions, except per share amounts)
2015
 
2016
 
2015
 
2016
Net income available to common stockholders
$
186

 
$
190

 
$
543

 
$
545

Share data (in thousands):
 
 
 
 
 
 
 
Basic average common shares outstanding
211,126

 
201,182

 
212,189

 
204,242

Dilutive effect of stock-based awards
1,480

 
1,208

 
1,512

 
1,334

Diluted average common shares outstanding
212,606

 
202,390

 
213,701

 
205,576

 
 
 
 
 
 
 
 
Basic earnings per share
$
0.88

 
$
0.94

 
$
2.56

 
$
2.67

Diluted earnings per share
$
0.87

 
$
0.94

 
$
2.54

 
$
2.65

v3.3.1.900
Debt (Tables)
9 Months Ended
Jan. 31, 2016
Debt Disclosure [Abstract]  
Schedule of Long-term Debt Instruments
Our long-term debt (net of unamortized discount and issuance costs) consisted of:
(Dollars in millions)
April 30,
2015
 
January 31,
2016
2.50% notes, due in fiscal 2016
$
250

 
$

1.00% notes, due in fiscal 2018
248

 
249

2.25% notes, due in fiscal 2023
247

 
247

3.75% notes, due in fiscal 2043
248

 
248

4.50% notes, due in fiscal 2046

 
485

 
993

 
1,229

Less current portion
250

 

 
$
743

 
$
1,229

v3.3.1.900
Pension and Other Postretirement Benefits (Tables)
9 Months Ended
Jan. 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
 
Nine Months Ended
 
January 31,
 
January 31,
(Dollars in millions)
2015
 
2016
 
2015
 
2016
Pension Benefits:
 
 
 
 
 
 
 
Service cost
$
5

 
$
6

 
$
16

 
$
19

Interest cost
8

 
9

 
25

 
26

Expected return on plan assets
(10
)
 
(10
)
 
(31
)
 
(30
)
Amortization of:
 
 
 
 
 
 
 
Prior service cost

 

 
1

 
1

Net actuarial loss
6

 
7

 
17

 
21

Net cost
$
9

 
$
12

 
$
28

 
$
37

 
 
 
 
 
 
 
 
Other Postretirement Benefits:
 
 
 
 
 
 
 
Service cost
$

 
$

 
$
1

 
$
1

Interest cost
1

 
1

 
2

 
2

Amortization of:
 
 
 
 
 
 
 
Prior service cost
(1
)
 
(1
)
 
(1
)
 
(2
)
Net actuarial loss

 

 
1

 
1

Net cost
$

 
$

 
$
3

 
$
2

v3.3.1.900
Fair Value Measurements (Tables)
9 Months Ended
Jan. 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, 2015:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 
$

 
$
59

 
$

 
$
59

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
18

 

 
18

Short-term borrowings
 

 
190

 

 
190

Current portion of long-term debt
 

 
253

 

 
253

Long-term debt
 

 
735

 

 
735

January 31, 2016:
 
 
 
 
 
 
 
 
Assets:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
77

 

 
77

Liabilities:
 
 
 
 
 
 
 
 
Currency derivatives
 

 
1

 

 
1

Short-term borrowings
 

 
509

 

 
509

Long-term debt
 

 
1,256

 

 
1,256

v3.3.1.900
Fair Value of Financial Instruments (Tables)
9 Months Ended
Jan. 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 derivative financial instruments and long-term debt as discussed in Note 8. 

Below is a comparison of the fair values and carrying amounts of these instruments:
 
April 30, 2015
 
January 31, 2016
 
Carrying
 
Fair
 
Carrying
 
Fair
(Dollars in millions)
Amount
 
Value
 
Amount
 
Value
Assets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
370

 
$
370

 
$
317

 
$
317

Currency derivatives
59

 
59

 
77

 
77

Liabilities:
 
 
 
 
 
 
 
Currency derivatives
18

 
18

 
1

 
1

Short-term borrowings
190

 
190

 
509

 
509

Current portion of long-term debt
250

 
253

 

 

Long-term debt
743

 
735

 
1,229

 
1,256

v3.3.1.900
Derivative Financial Instruments (Tables)
9 Months Ended
Jan. 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 had on AOCI and earnings during the periods covered by this report:
 
 
Three Months Ended
 
 
January 31,
(Dollars in millions)
Classification
2015
 
2016
Currency derivatives designated as cash flow hedges:
 
 

 
 

Net gain (loss) recognized in AOCI
n/a
$
71

 
$
29

Net gain (loss) reclassified from AOCI into income
Net sales
16

 
17

Derivatives not designated as hedging instruments:
 
 

 
 

Currency derivatives – net gain (loss) recognized in income
Net sales
19

 
5

Currency derivatives – net gain (loss) recognized in income
Other income
11

 
(2
)
 
 
 
 
 
 
 
Nine Months Ended
 
 
January 31,
(Dollars in millions)
Classification
2015
 
2016
Currency derivatives designated as cash flow hedges:
 
 

 
 

Net gain (loss) recognized in AOCI
n/a
$
118

 
$
66

Net gain (loss) reclassified from AOCI into income
Net sales
20

 
46

Interest rate derivatives designated as cash flow hedges:
 
 
 
 
Net gain (loss) recognized in AOCI
n/a

 
8

Derivatives not designated as hedging instruments:
 
 

 
 

Currency derivatives – net gain (loss) recognized in income
Net sales
31

 
9

Currency derivatives – net gain (loss) recognized in income
Other income
5

 
2

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
The following table presents the fair values of our derivative instruments as of April 30, 2015 and January 31, 2016.

(Dollars in millions)


Classification
 
Fair value of derivatives in a gain position
 
Fair value of derivatives in a
loss position
April 30, 2015:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
$
42

 
$
(2
)
Currency derivatives
Other assets
 
20

 
(3
)
Currency derivatives
Accrued expenses
 

 
(6
)
Currency derivatives
Other liabilities
 

 
(6
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
3

 
(1
)
Currency derivatives
Accrued expenses
 
1

 
(7
)
January 31, 2016:
 
 
 
 
 
Designated as cash flow hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
52

 

Currency derivatives
Other assets
 
24

 
(1
)
Currency derivatives
Accrued expenses
 

 
(1
)
Not designated as hedges:
 
 
 
 
 
Currency derivatives
Other current assets
 
5

 
(3
)
Offsetting Derivative Assets and Liabilities [Table Text Block]
The following table summarizes the gross and net amounts of our derivative contracts.
(Dollars in millions)
Gross Amounts of Recognized Assets (Liabilities)
 
Gross Amounts Offset in Balance Sheet
 
Net Amounts Presented in Balance Sheet
 
Gross Amounts Not Offset in Balance Sheet
 
Net Amounts
April 30, 2015:
 
 
 
 
 
 
 
 
 
Derivative assets
$
65

 
$
(6
)
 
$
59

 
$

 
$
59

Derivative liabilities
(24
)
 
6

 
(18
)
 

 
(18
)
January 31, 2016:
 
 
 
 
 
 
 
 
 
Derivative assets
81

 
(4
)
 
77

 
(1
)
 
76

Derivative liabilities
(5
)
 
4

 
(1
)
 
1

 

v3.3.1.900
Accumulated Other Comprehensive Income (Tables)
9 Months Ended
Jan. 31, 2016
Accumulated Other Comprehensive Income [Abstract]  
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
The following table summarizes the changes in each component of AOCI, net of tax, during the nine months ended January 31, 2015 and 2016:
 
Currency Translation Adjustments
 
Cash Flow Hedge Adjustments
 
Postretirement Benefits Adjustments
 
Total AOCI
 
 
 
 
 
 
 
 
Balance at April 30, 2014
$
6

 
$
(4
)
 
$
(190
)
 
$
(188
)
Net other comprehensive income (loss)
(108
)
 
61

 
20

 
(27
)
Balance at January 31, 2015
$
(102
)
 
$
57

 
$
(170
)
 
$
(215
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at April 30, 2015
$
(108
)
 
$
28

 
$
(220
)
 
$
(300
)
Net other comprehensive income (loss)
(58
)
 
20

 
15

 
(23
)
Balance at January 31, 2016
$
(166
)
 
$
48

 
$
(205
)
 
$
(323
)
The following table summarizes the changes in each component of accumulated other comprehensive income (AOCI), net of tax, during the three months ended January 31, 2015 and 2016:
 
Currency Translation Adjustments
 
Cash Flow Hedge Adjustments
 
Postretirement Benefits Adjustments
 
Total AOCI
 
 
 
 
 
 
 
 
Balance at October 31, 2014
$
(40
)
 
$
23

 
$
(174
)
 
$
(191
)
Net other comprehensive income (loss)
(62
)
 
34

 
4

 
(24
)
Balance at January 31, 2015
$
(102
)
 
$
57

 
$
(170
)
 
$
(215
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance at October 31, 2015
$
(136
)
 
$
40

 
$
(210
)
 
$
(306
)
Net other comprehensive income (loss)
(30
)
 
8

 
5

 
(17
)
Balance at January 31, 2016
$
(166
)
 
$
48

 
$
(205
)
 
$
(323
)
Comprehensive Income (Loss) [Table Text Block]
The following table presents the components of net other comprehensive income (loss) during the three months ended January 31, 2015 and 2016:
 
Pre-Tax
 
Tax
 
Net
Three Months Ended January 31, 2015
 
 
 
 
 
Currency translation adjustments
$
(65
)
 
$
3

 
$
(62
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
71

 
(28
)
 
43

Reclassification to earnings1
(16
)
 
7

 
(9
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
6

 
(2
)
 
4

Net other comprehensive income (loss)
$
(4
)
 
$
(20
)
 
$
(24
)
 
 
 
 
 
 
Three Months Ended January 31, 2016
 
 
 
 
 
Currency translation adjustments
$
(30
)
 
$

 
$
(30
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
29

 
(11
)
 
18

Reclassification to earnings1
(17
)
 
7

 
(10
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
7

 
(2
)
 
5

Net other comprehensive income (loss)
$
(11
)
 
$
(6
)
 
$
(17
)
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 information is not presented in Note 7 due to immateriality).
The following table presents the components of net other comprehensive income (loss) during the nine months ended January 31, 2015 and 2016:
 
Pre-Tax
 
Tax
 
Net
Nine Months Ended January 31, 2015
 
 
 
 
 
Currency translation adjustments
$
(113
)
 
$
5

 
$
(108
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
118

 
(45
)
 
73

Reclassification to earnings1
(20
)
 
8

 
(12
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost
14

 
(5
)
 
9

Reclassification to earnings2
18

 
(7
)
 
11

Net other comprehensive income (loss)
$
17

 
$
(44
)
 
$
(27
)
 
 
 
 
 
 
Nine Months Ended January 31, 2016
 
 
 
 
 
Currency translation adjustments
$
(57
)
 
$
(1
)
 
$
(58
)
Cash flow hedge adjustments:
 
 
 
 
 
Net gain (loss) on hedging instruments
74

 
(26
)
 
48

Reclassification to earnings1
(46
)
 
18

 
(28
)
Postretirement benefits adjustments:
 
 
 
 
 
Net actuarial gain (loss) and prior service cost

 

 

Reclassification to earnings2
23

 
(8
)
 
15

Net other comprehensive income (loss)
$
(6
)
 
$
(17
)
 
$
(23
)
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 information is not presented in Note 7 due to immateriality).
v3.3.1.900
Assets Held for Sale (Tables)
9 Months Ended
Jan. 31, 2016
Discontinued Operations and Disposal Groups [Abstract]  
Assets Held for Sale [Table Text Block]
During the quarter ended January 31, 2016, we reached an agreement to sell our Southern Comfort and Tuaca brands to Sazerac Company, Inc. The total book value of the related business assets as of January 31, 2016, was $48 million, and consisted of the following:
 
 
January 31, 2016
(Dollars in millions)
 
 
Inventories
 
$
10

Goodwill
 
16

Other intangible assets
 
22

 
 
$
48

v3.3.1.900
Condensed Consolidated Financial Statements Condensed Consolidated Financial Statements (Details)
$ in Millions
Apr. 30, 2015
USD ($)
Accounting Standards Update 2015-03 [Member]  
New Accounting Pronouncements or Change in Accounting Principle [Line Items]  
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets $ 5
v3.3.1.900
Inventories (Details) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Inventories (Textual) [Abstract]    
Excess of current costs over stated LIFO value $ 248 $ 234
v3.3.1.900
Income Taxes (Details)
9 Months Ended
Jan. 31, 2016
Income Taxes (Textual) [Abstract]  
Effective tax rate 29.50%
Expected tax rate 29.60%
v3.3.1.900
Earnings Per Share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Basic and diluted earnings per share        
Net income available to common stockholders $ 190 $ 186 $ 545 $ 543
Share data (in thousands):        
Basic average common shares outstanding 201,182 211,126 204,242 212,189
Dilutive effect of stock-based awards 1,208 1,480 1,334 1,512
Diluted average common shares outstanding 202,390 212,606 205,576 213,701
Basic earnings per share (dollars per share) $ 0.94 $ 0.88 $ 2.67 $ 2.56
Diluted earnings per share (dollars per share) $ 0.94 $ 0.87 $ 2.65 $ 2.54
v3.3.1.900
Earnings Per Share (Details Textual) - shares
shares in Thousands
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Earnings Per Share (Textual) [Abstract]        
Common stock-based awards excluded from the calculation of diluted earnings per share 375 359 478 363
v3.3.1.900
Guarantee (Details) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Concentration Risk [Line Items]    
Accounts receivable $ 630 $ 583
Credit Concentration Risk [Member]    
Concentration Risk [Line Items]    
Guaranty exposure, maximum 19  
Guaranty exposure, current 8  
Accounts receivable $ 19  
v3.3.1.900
Debt (Details) - USD ($)
$ in Millions
Jan. 15, 2016
Jan. 31, 2016
Jun. 30, 2015
Apr. 30, 2015
Debt Instrument [Line Items]        
Long-term debt, including current portion   $ 1,229   $ 993
Current portion of long-term debt   0   250
Long-term debt   $ 1,229   $ 743
Two Point Five Percent Notes Due In Fiscal Two Thousand Sixteen [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Interest Rate, Stated Percentage   2.50%   2.50%
Long-term debt, including current portion   $ 0   $ 250
Repayments of Debt $ 250      
One Point Zero Percent Notes Due in Fiscal Two Thousand Eighteen [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Interest Rate, Stated Percentage   1.00%   1.00%
Long-term debt, including current portion   $ 249   $ 248
Two Point Two Five Percent Notes Due in Fiscal Two Thousand Twenty Three [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Interest Rate, Stated Percentage   2.25%   2.25%
Long-term debt, including current portion   $ 247   $ 247
Three Point Seven Five Percent Notes Due in Fiscal Two Thousand Forty Three [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Interest Rate, Stated Percentage   3.75%   3.75%
Long-term debt, including current portion   $ 248   $ 248
Four Point Five Percent Notes Due in Fiscal Two Thousand Forty Six [Member] [Member]        
Debt Instrument [Line Items]        
Debt Instrument, Face Amount   $ 500 $ 500  
Debt Instrument, Interest Rate, Stated Percentage   4.50% 4.50% 4.50%
Long-term debt, including current portion   $ 485   $ 0
Debt Instrument, Unamortized Discount   10    
Unamortized Debt Issuance Expense   $ 5    
v3.3.1.900
Debt Short-term borrowings (Details) - USD ($)
$ in Millions
9 Months Ended 12 Months Ended
Jan. 31, 2016
Apr. 30, 2015
Short-term Debt [Abstract]    
Short-term borrowings $ 509 $ 190
Commercial Paper $ 506 $ 183
Commercial Paper Borrowings, Weighted Average Interest Rate 0.61% 0.17%
Commercial Paper Borrowings, Average Remaining Maturity 37 days 13 days
v3.3.1.900
Pension and Other Postretirement Benefits (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Pension Benefits [Member]        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Service cost $ 6 $ 5 $ 19 $ 16
Interest cost 9 8 26 25
Expected return on plan assets (10) (10) (30) (31)
Amortization of:        
Prior service cost 0 0 1 1
Net actuarial loss 7 6 21 17
Net cost 12 9 37 28
Other Postretirement Benefits [Member]        
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items]        
Service cost 0 0 1 1
Interest cost 1 1 2 2
Amortization of:        
Prior service cost (1) (1) (2) (1)
Net actuarial loss 0 0 1 1
Net cost $ 0 $ 0 $ 2 $ 3
v3.3.1.900
Fair Value Measurements (Details) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings $ 509 $ 190
Long-term debt 1,256 735
Currency derivatives [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 1 18
Fair Value, Measurements, Recurring [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 509 190
Current portion of long-term debt   253
Long-term debt 1,256 735
Fair Value, Measurements, Recurring [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 77 59
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 1 18
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 0 0
Current portion of long-term debt   0
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 509 190
Current portion of long-term debt   253
Long-term debt 1,256 735
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Currency derivatives [Member]    
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]    
Currency derivatives 77 59
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Currency derivatives 1 18
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]    
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]    
Short-term borrowings 0 0
Current portion of long-term debt   0
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
v3.3.1.900
Fair Value of Financial Instruments (Details) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Jan. 31, 2015
Apr. 30, 2014
Assets:        
Cash and cash equivalents, Carrying Amount $ 317 $ 370 $ 250 $ 437
Cash and cash equivalents, Fair Value 317 370    
Liabilities:        
Short-term borrowings, Carrying Amount 509 190    
Short-term borrowings, Fair Value 509 190    
Current portion of long-term debt, Carrying Amount 0 250    
Current portion of long-term debt, Fair Value 0 253    
Long-term debt, Carrying Amount 1,229 743    
Long-term debt, Fair Value 1,256 735    
Currency derivatives [Member]        
Assets:        
Currency derivatives, Fair Value 77 59    
Liabilities:        
Currency derivatives, Fair Value 1 18    
Reported Value Measurement [Member]        
Assets:        
Cash and cash equivalents, Carrying Amount 317 370    
Liabilities:        
Short-term borrowings, Carrying Amount 509 190    
Current portion of long-term debt, Carrying Amount 0 250    
Long-term debt, Carrying Amount 1,229 743    
Reported Value Measurement [Member] | Currency derivatives [Member]        
Assets:        
Currency derivatives, Carrying Amount 77 59    
Liabilities:        
Currency derivatives, Carrying Amount $ 1 $ 18    
v3.3.1.900
Derivative Financial Instruments (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Cash Flow Hedging [Member] | Currency derivatives [Member]        
Derivative instrument gains and losses affecting statements of operations        
Net gain (loss) recognized in AOCI $ 29 $ 71 $ 66 $ 118
Cash Flow Hedging [Member] | Treasury Lock [Member]        
Derivative instrument gains and losses affecting statements of operations        
Net gain (loss) recognized in AOCI     8 0
Net Sales [Member] | Cash Flow Hedging [Member] | Currency derivatives [Member]        
Derivative instrument gains and losses affecting statements of operations        
Net gain (loss) reclassified from AOCI into income 17 16 46 20
Net Sales [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member]        
Derivative instrument gains and losses affecting statements of operations        
Gain (loss) on derivative instruments recognized in income 5 19 9 31
Other Income [Member] | Not Designated as Hedging Instrument [Member] | Currency derivatives [Member]        
Derivative instrument gains and losses affecting statements of operations        
Gain (loss) on derivative instruments recognized in income $ (2) $ 11 $ 2 $ 5
v3.3.1.900
Derivative Financial Instruments (Details 1) - Currency derivatives [Member] - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position $ 5 $ 3
Fair value of derivatives in a gain position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position   1
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 52 42
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 24 20
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 0 0
Fair value of derivatives in a gain position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position   0
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position (3) (1)
Fair value of derivatives in a loss position [Member] | Not designated as hedges [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position   (7)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Current Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position 0 (2)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Assets [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position (1) (3)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Accrued Expenses [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position $ (1) (6)
Fair value of derivatives in a loss position [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member]    
Fair values of derivative instruments    
Fair value of derivatives in a gain (loss) position   $ (6)
v3.3.1.900
Derivative Financial Instruments (Details Textual) - USD ($)
$ in Millions
9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Apr. 30, 2015
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative, Notional Amount $ 1,274   $ 1,212
Derivative Financial Instruments (Textual) [Abstract]      
Foreign Currency Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months $ 45    
Maximum term of outstanding derivative contracts 36 months    
Aggregate fair value of derivatives with creditworthiness requirements that were in a net liability position $ 0   $ 18
Treasury Lock [Member] | Cash Flow Hedging [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net $ 8 $ 0  
v3.3.1.900
Derivative Financial Instruments Offsetting Derivative Assets and Liabilities (Details) - USD ($)
$ in Millions
Jan. 31, 2016
Apr. 30, 2015
Offsetting Assets and Liabilities [Line Items]    
Gross Amount of Derivative Assets $ 81 $ 65
Gross Amount of Derivative Liabilities Offset Against Derivative Assets in Balance Sheet (4) (6)
Net Amount of Derivative Assets Presented in Balance Sheet 77 59
Gross Amount of Derivative Liabilities Not Offset Against Derivative Assets in Balance Sheet (1) 0
Net Amount of Derivative Assets 76 59
Gross Amount of Derivative Liabilities (5) (24)
Gross Amount of Derivative Assets Offset Against Derivative Liabilities in Balance Sheet 4 6
Net Amount of Derivative Liabilities Presented in Balance Sheet 1 18
Gross Amount of Derivative Assets Not Offset Against Derivative Liabilities in Balance Sheet 1 0
Net Amount of Derivative Liabilities $ 0 $ 18
v3.3.1.900
Changes in Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance $ (306) $ (191) $ (300) $ (188)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (30) (62) (58) (108)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax, Portion Attributable to Parent 8 34 20 61
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, Net of Tax, Portion Attributable to Parent 5 4 15 20
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent (17) (24) (23) (27)
Ending balance (323) (215) (323) (215)
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance 40 23 28 (4)
Ending balance 48 57 48 57
Accumulated Translation Adjustment [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (136) (40) (108) 6
Ending balance (166) (102) (166) (102)
Accumulated Defined Benefit Plans Adjustment [Member]        
Accumulated Other Comprehensive Income (Loss) [Line Items]        
Beginning balance (210) (174) (220) (190)
Ending balance $ (205) $ (170) $ (205) $ (170)
v3.3.1.900
Accumulated Other Comprehensive Income Schedule of Other Comprehensive Income (Details) - USD ($)
$ in Millions
3 Months Ended 9 Months Ended
Jan. 31, 2016
Jan. 31, 2015
Jan. 31, 2016
Jan. 31, 2015
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss) Arising During Period, Net of Tax $ (30) $ (65) $ (57) $ (113)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax 0 3 (1) 5
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax (30) (62) (58) (108)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, before Tax 29 71 74 118
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax (11) (28) (26) (45)
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax 18 43 48 73
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, before Tax [1] (17) (16) (46) (20)
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Tax [1] 7 7 18 8
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI on Derivatives, Net of Tax [1] (10) (9) (28) (12)
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) and Net Prior Service Credit (Cost) Arising During Period, before Tax 0 0 0 14
Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net Unamortized Gain (Loss) and Net Prior Service Credit (Cost) Arising During Period, Tax 0 0 0 (5)
Other Comprehensive Income Defined Benefit Plan Actuarial Gain Loss And Net Prior Service Costs Credit Arising During Period Net Of Tax 0 0 0 9
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net Gain (Loss) and Net Prior Service Credit (Cost), before Tax [2] 7 6 23 18
Other Comprehensive (Income) Loss, Reclassification Adjustment from AOCI, Pension and Other Postretirement Benefit Plans, for Net (Gain) Loss and Prior Service (Credit) Cost, Tax [2] (2) (2) (8) (7)
Other Comprehensive Income Reclassification Of Actuarial Gain Loss And Prior Service Cost Net Of Tax [2] 5 4 15 11
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent (11) (4) (6) 17
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent (6) (20) (17) (44)
Other Comprehensive Income (Loss), Net of Tax $ (17) $ (24) $ (23) $ (27)
[1] 1Pre-tax amount is classified as net sales in the accompanying consolidated statements of operations.
[2] 2Pre-tax amount is a component of pension and other postretirement benefit expense (as shown in Note 7, except for amounts related to non-U.S. benefit plans about which information is not presented in Note 7 due to immateriality).
v3.3.1.900
Dividends Payable (Details Textual)
Jan. 28, 2016
$ / shares
Dividends Payable (Textual) [Abstract]  
Cash dividend $ 0.34
v3.3.1.900
Assets Held for Sale (Details) - USD ($)
$ in Millions
3 Months Ended
Apr. 30, 2016
Mar. 01, 2016
Jan. 31, 2016
Apr. 30, 2015
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Assets Held for Sale, Assets, Current     $ 48 $ 0
Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Assets Held for Sale, Inventory, Current     10  
Assets Held for Sale, Goodwill, Current     16  
Assets Held for Sale, Intangible Assets, Current     22  
Assets Held for Sale, Assets, Current     $ 48  
Subsequent Event [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal $ 483      
Subsequent Event [Member] | Disposal Group, Held-for-sale or Disposed of by Sale, Not Discontinued Operations [Member]        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Disposal Group, Consideration   $ 542