We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
JM Smucker Company | NYSE:SJM | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 113.11 | 3 | 09:01:27 |
ý
|
QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Ohio
|
34-0538550
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
One Strawberry Lane
|
|
Orrville, Ohio
|
44667-0280
|
(Address of principal executive offices)
|
(Zip code)
|
|
|
Registrant’s telephone number, including area code: (330) 682-3000
|
|
|
|
N/A
|
|
(Former name, former address and former fiscal year, if changed since last report)
|
Large accelerated filer
|
|
ý
|
Accelerated filer
|
|
o
|
|
|
|
|
||
Non-accelerated filer
|
|
o
|
Smaller Reporting Company
|
|
o
|
|
|
|
|
|
|
Emerging growth company
|
|
o
|
|
|
|
|
|
|
|
|
Page No.
|
|
||
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 3.
|
||
|
|
|
Item 4.
|
||
|
|
|
|
||
|
|
|
Item 1.
|
||
|
|
|
Item 1A.
|
||
|
|
|
Item 2.
|
||
|
|
|
Item 6.
|
||
|
|
|
|
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
Dollars in millions, except per share data
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
Cost of products sold
|
1,250.2
|
|
|
1,168.6
|
|
|
2,474.5
|
|
|
2,255.4
|
|
||||
Gross Profit
|
771.3
|
|
|
755.0
|
|
|
1,449.5
|
|
|
1,417.1
|
|
||||
Selling, distribution, and administrative expenses
|
382.4
|
|
|
359.5
|
|
|
765.7
|
|
|
708.3
|
|
||||
Amortization
|
59.7
|
|
|
51.6
|
|
|
120.2
|
|
|
103.1
|
|
||||
Other special project costs
(A)
|
25.4
|
|
|
9.7
|
|
|
33.1
|
|
|
36.8
|
|
||||
Other operating expense (income) – net
|
(26.7
|
)
|
|
2.1
|
|
|
(26.9
|
)
|
|
1.6
|
|
||||
Operating Income
|
330.5
|
|
|
332.1
|
|
|
557.4
|
|
|
567.3
|
|
||||
Interest expense – net
|
(53.6
|
)
|
|
(41.6
|
)
|
|
(107.2
|
)
|
|
(83.6
|
)
|
||||
Other income (expense) – net
|
(7.5
|
)
|
|
1.3
|
|
|
(7.7
|
)
|
|
(2.9
|
)
|
||||
Income Before Income Taxes
|
269.4
|
|
|
291.8
|
|
|
442.5
|
|
|
480.8
|
|
||||
Income tax expense (benefit)
|
80.9
|
|
|
97.2
|
|
|
121.0
|
|
|
159.4
|
|
||||
Net Income
|
$
|
188.5
|
|
|
$
|
194.6
|
|
|
$
|
321.5
|
|
|
$
|
321.4
|
|
Earnings per common share:
|
|
|
|
|
|
|
|
||||||||
Net Income
|
$
|
1.66
|
|
|
$
|
1.71
|
|
|
$
|
2.83
|
|
|
$
|
2.83
|
|
Net Income – Assuming Dilution
|
$
|
1.66
|
|
|
$
|
1.71
|
|
|
$
|
2.83
|
|
|
$
|
2.83
|
|
Dividends Declared per Common Share
|
$
|
0.85
|
|
|
$
|
0.78
|
|
|
$
|
1.70
|
|
|
$
|
1.56
|
|
(A)
|
Other special project costs includes integration and restructuring costs. For more information, see Note 5: Integration and Restructuring Costs.
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
Dollars in millions
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
188.5
|
|
|
$
|
194.6
|
|
|
$
|
321.5
|
|
|
$
|
321.4
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
(5.6
|
)
|
|
(13.1
|
)
|
|
(11.7
|
)
|
|
21.9
|
|
||||
Cash flow hedging derivative activity, net of tax
|
6.1
|
|
|
0.8
|
|
|
8.2
|
|
|
2.4
|
|
||||
Pension and other postretirement benefit plans activity, net of tax
|
1.6
|
|
|
5.9
|
|
|
3.2
|
|
|
5.7
|
|
||||
Available-for-sale securities activity, net of tax
|
0.3
|
|
|
(0.6
|
)
|
|
0.6
|
|
|
(0.3
|
)
|
||||
Total Other Comprehensive Income (Loss)
|
2.4
|
|
|
(7.0
|
)
|
|
0.3
|
|
|
29.7
|
|
||||
Comprehensive Income
|
$
|
190.9
|
|
|
$
|
187.6
|
|
|
$
|
321.8
|
|
|
$
|
351.1
|
|
|
October 31, 2018
|
|
April 30, 2018
|
||||
Dollars in millions
|
|
|
|
||||
ASSETS
|
|||||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
$
|
171.2
|
|
|
$
|
192.6
|
|
Trade receivables, less allowance for doubtful accounts
|
561.9
|
|
|
385.6
|
|
||
Inventories:
|
|
|
|
||||
Finished products
|
635.4
|
|
|
542.1
|
|
||
Raw materials
|
330.8
|
|
|
312.3
|
|
||
Total Inventory
|
966.2
|
|
|
854.4
|
|
||
Other current assets
|
87.9
|
|
|
122.4
|
|
||
Total Current Assets
|
1,787.2
|
|
|
1,555.0
|
|
||
Property, Plant, and Equipment
|
|
|
|
||||
Land and land improvements
|
117.2
|
|
|
120.1
|
|
||
Buildings and fixtures
|
818.9
|
|
|
812.6
|
|
||
Machinery and equipment
|
2,122.0
|
|
|
2,111.5
|
|
||
Construction in progress
|
284.9
|
|
|
212.1
|
|
||
Gross Property, Plant, and Equipment
|
3,343.0
|
|
|
3,256.3
|
|
||
Accumulated depreciation
|
(1,524.3
|
)
|
|
(1,527.2
|
)
|
||
Total Property, Plant, and Equipment
|
1,818.7
|
|
|
1,729.1
|
|
||
Other Noncurrent Assets
|
|
|
|
||||
Goodwill
|
6,474.7
|
|
|
5,942.2
|
|
||
Other intangible assets – net
|
6,925.5
|
|
|
5,916.5
|
|
||
Other noncurrent assets
|
168.1
|
|
|
158.4
|
|
||
Total Other Noncurrent Assets
|
13,568.3
|
|
|
12,017.1
|
|
||
Total Assets
|
$
|
17,174.2
|
|
|
$
|
15,301.2
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|||||||
Current Liabilities
|
|
|
|
||||
Accounts payable
|
$
|
552.4
|
|
|
$
|
512.1
|
|
Accrued trade marketing and merchandising
|
119.2
|
|
|
101.6
|
|
||
Short-term borrowings
|
390.0
|
|
|
144.0
|
|
||
Other current liabilities
|
372.9
|
|
|
276.1
|
|
||
Total Current Liabilities
|
1,434.5
|
|
|
1,033.8
|
|
||
Noncurrent Liabilities
|
|
|
|
||||
Long-term debt
|
5,885.1
|
|
|
4,688.0
|
|
||
Deferred income taxes
|
1,525.3
|
|
|
1,377.2
|
|
||
Other noncurrent liabilities
|
299.3
|
|
|
311.1
|
|
||
Total Noncurrent Liabilities
|
7,709.7
|
|
|
6,376.3
|
|
||
Total Liabilities
|
9,144.2
|
|
|
7,410.1
|
|
||
Shareholders’ Equity
|
|
|
|
||||
Common shares
|
28.9
|
|
|
28.9
|
|
||
Additional capital
|
5,749.9
|
|
|
5,739.7
|
|
||
Retained income
|
2,367.6
|
|
|
2,239.2
|
|
||
Accumulated other comprehensive income (loss)
|
(116.4
|
)
|
|
(116.7
|
)
|
||
Total Shareholders’ Equity
|
8,030.0
|
|
|
7,891.1
|
|
||
Total Liabilities and Shareholders’ Equity
|
$
|
17,174.2
|
|
|
$
|
15,301.2
|
|
|
Six Months Ended October 31,
|
||||||
Dollars in millions
|
2018
|
|
2017
|
||||
Operating Activities
|
|
|
|
||||
Net income
|
$
|
321.5
|
|
|
$
|
321.4
|
|
Adjustments to reconcile net income to net cash provided by (used for) operations:
|
|
|
|
||||
Depreciation
|
102.9
|
|
|
105.1
|
|
||
Amortization
|
120.2
|
|
|
103.1
|
|
||
Share-based compensation expense
|
10.5
|
|
|
12.7
|
|
||
Gain on divestiture
|
(26.6
|
)
|
|
—
|
|
||
Other noncash adjustments – net
|
3.0
|
|
|
2.3
|
|
||
Defined benefit pension contributions
|
—
|
|
|
(0.8
|
)
|
||
Changes in assets and liabilities, net of effect from acquisition and divestiture:
|
|
|
|
||||
Trade receivables
|
(111.2
|
)
|
|
(41.5
|
)
|
||
Inventories
|
(60.4
|
)
|
|
(103.6
|
)
|
||
Other current assets
|
17.6
|
|
|
19.4
|
|
||
Accounts payable
|
15.2
|
|
|
54.7
|
|
||
Accrued liabilities
|
60.4
|
|
|
3.3
|
|
||
Income and other taxes
|
18.5
|
|
|
(46.8
|
)
|
||
Other – net
|
(25.7
|
)
|
|
5.3
|
|
||
Net Cash Provided by (Used for) Operating Activities
|
445.9
|
|
|
434.6
|
|
||
Investing Activities
|
|
|
|
||||
Business acquired, net of cash acquired
|
(1,903.0
|
)
|
|
—
|
|
||
Additions to property, plant, and equipment
|
(179.1
|
)
|
|
(130.0
|
)
|
||
Proceeds from divestiture
|
372.1
|
|
|
—
|
|
||
Other – net
|
(8.9
|
)
|
|
23.7
|
|
||
Net Cash Provided by (Used for) Investing Activities
|
(1,718.9
|
)
|
|
(106.3
|
)
|
||
Financing Activities
|
|
|
|
||||
Short-term borrowings (repayments) – net
|
246.0
|
|
|
10.0
|
|
||
Proceeds from long-term debt
|
1,500.0
|
|
|
—
|
|
||
Repayments of long-term debt
|
(300.0
|
)
|
|
(150.0
|
)
|
||
Quarterly dividends paid
|
(184.9
|
)
|
|
(173.4
|
)
|
||
Purchase of treasury shares
|
(5.0
|
)
|
|
(6.7
|
)
|
||
Other – net
|
0.1
|
|
|
(1.1
|
)
|
||
Net Cash Provided by (Used for) Financing Activities
|
1,256.2
|
|
|
(321.2
|
)
|
||
Effect of exchange rate changes on cash
|
(4.6
|
)
|
|
6.4
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(21.4
|
)
|
|
13.5
|
|
||
Cash and cash equivalents at beginning of period
|
192.6
|
|
|
166.8
|
|
||
Cash and Cash Equivalents at End of Period
|
$
|
171.2
|
|
|
$
|
180.3
|
|
Intangible assets with finite lives:
|
|
|
||
Customer and contractual relationships (25-year useful life)
|
|
$
|
935.0
|
|
Trademarks (5-year useful life)
|
|
1.6
|
|
|
Intangible assets with indefinite lives:
|
|
|
||
Trademarks
|
|
303.0
|
|
|
Total other intangible assets
|
|
$
|
1,239.6
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales
|
$
|
2,021.5
|
|
|
$
|
2,085.3
|
|
|
$
|
3,951.4
|
|
|
$
|
3,989.9
|
|
Net income
|
189.7
|
|
|
183.8
|
|
|
322.8
|
|
|
293.6
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
|
Total Costs Incurred to Date at October 31, 2018
|
||||||
|
2018
|
|
2018
|
|
|||||||
Employee-related costs
|
$
|
6.9
|
|
|
$
|
7.8
|
|
|
$
|
7.8
|
|
Other transition and termination costs
|
7.3
|
|
|
8.4
|
|
|
8.4
|
|
|||
Total one-time costs
|
$
|
14.2
|
|
|
$
|
16.2
|
|
|
$
|
16.2
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
|
Total Costs Incurred to Date at October 31, 2018
|
||||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
|
|||||||||||
Employee-related costs
|
$
|
9.5
|
|
|
$
|
1.2
|
|
|
$
|
15.1
|
|
|
$
|
11.6
|
|
|
$
|
38.9
|
|
Other transition and termination costs
|
1.7
|
|
|
1.6
|
|
|
1.8
|
|
|
7.9
|
|
|
20.6
|
|
|||||
Total one-time costs
|
$
|
11.2
|
|
|
$
|
2.8
|
|
|
$
|
16.9
|
|
|
$
|
19.5
|
|
|
$
|
59.5
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
U.S. Retail Coffee
|
$
|
544.9
|
|
|
$
|
551.4
|
|
|
$
|
1,034.4
|
|
|
$
|
1,030.8
|
|
U.S. Retail Consumer Foods
|
461.9
|
|
|
527.8
|
|
|
945.2
|
|
|
1,015.7
|
|
||||
U.S. Retail Pet Foods
|
728.1
|
|
|
551.1
|
|
|
1,399.3
|
|
|
1,071.8
|
|
||||
International and Away From Home
|
286.6
|
|
|
293.3
|
|
|
545.1
|
|
|
554.2
|
|
||||
Total net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
Segment profit:
|
|
|
|
|
|
|
|
||||||||
U.S. Retail Coffee
|
$
|
174.3
|
|
|
$
|
152.1
|
|
|
$
|
322.1
|
|
|
$
|
275.3
|
|
U.S. Retail Consumer Foods
|
134.3
|
|
|
130.2
|
|
|
231.6
|
|
|
240.3
|
|
||||
U.S. Retail Pet Foods
|
123.9
|
|
|
122.4
|
|
|
224.3
|
|
|
220.2
|
|
||||
International and Away From Home
|
56.7
|
|
|
55.4
|
|
|
100.1
|
|
|
95.6
|
|
||||
Total segment profit
|
$
|
489.2
|
|
|
$
|
460.1
|
|
|
$
|
878.1
|
|
|
$
|
831.4
|
|
Amortization
|
(59.7
|
)
|
|
(51.6
|
)
|
|
(120.2
|
)
|
|
(103.1
|
)
|
||||
Interest expense – net
|
(53.6
|
)
|
|
(41.6
|
)
|
|
(107.2
|
)
|
|
(83.6
|
)
|
||||
Unallocated derivative gains (losses)
|
(0.1
|
)
|
|
9.7
|
|
|
(22.1
|
)
|
|
22.3
|
|
||||
Cost of products sold – special project costs
(A)
|
—
|
|
|
(0.9
|
)
|
|
—
|
|
|
(1.6
|
)
|
||||
Other special project costs
(A)
|
(25.4
|
)
|
|
(9.7
|
)
|
|
(33.1
|
)
|
|
(36.8
|
)
|
||||
Corporate administrative expenses
|
(73.5
|
)
|
|
(75.5
|
)
|
|
(145.3
|
)
|
|
(144.9
|
)
|
||||
Other income (expense) – net
|
(7.5
|
)
|
|
1.3
|
|
|
(7.7
|
)
|
|
(2.9
|
)
|
||||
Income before income taxes
|
$
|
269.4
|
|
|
$
|
291.8
|
|
|
$
|
442.5
|
|
|
$
|
480.8
|
|
(A)
|
Special project costs includes integration and restructuring costs. For more information, see Note 5: Integration and Restructuring Costs.
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net sales:
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,873.2
|
|
|
$
|
1,771.8
|
|
|
$
|
3,645.5
|
|
|
$
|
3,389.1
|
|
International:
|
|
|
|
|
|
|
|
||||||||
Canada
|
$
|
114.3
|
|
|
$
|
116.0
|
|
|
$
|
212.5
|
|
|
$
|
212.9
|
|
All other international
|
34.0
|
|
|
35.8
|
|
|
66.0
|
|
|
70.5
|
|
||||
Total international
|
$
|
148.3
|
|
|
$
|
151.8
|
|
|
$
|
278.5
|
|
|
$
|
283.4
|
|
Total net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
Primary Reportable Segment
(A)
|
||||||||
Coffee
|
$
|
635.5
|
|
|
$
|
649.3
|
|
|
$
|
1,213.8
|
|
|
$
|
1,221.6
|
|
U.S. Retail Coffee
|
Dog food
|
334.9
|
|
|
195.7
|
|
|
643.4
|
|
|
384.4
|
|
U.S. Retail Pet Foods
|
||||
Cat food
|
207.3
|
|
|
177.8
|
|
|
396.3
|
|
|
343.6
|
|
U.S. Retail Pet Foods
|
||||
Pet snacks
|
201.9
|
|
|
192.6
|
|
|
389.7
|
|
|
373.3
|
|
U.S. Retail Pet Foods
|
||||
Peanut butter
|
186.9
|
|
|
184.4
|
|
|
386.1
|
|
|
384.9
|
|
U.S. Retail Consumer Foods
|
||||
Fruit spreads
|
83.0
|
|
|
90.5
|
|
|
168.6
|
|
|
178.1
|
|
U.S. Retail Consumer Foods
|
||||
Frozen handheld
|
78.7
|
|
|
69.0
|
|
|
143.2
|
|
|
119.0
|
|
U.S. Retail Consumer Foods
|
||||
Baking mixes and ingredients
|
58.4
|
|
|
128.4
|
|
|
142.7
|
|
|
220.2
|
|
U.S. Retail Consumer Foods
|
||||
Shortening and oils
|
79.3
|
|
|
77.7
|
|
|
132.2
|
|
|
134.0
|
|
U.S. Retail Consumer Foods
|
||||
Portion control
|
41.6
|
|
|
42.0
|
|
|
82.5
|
|
|
81.7
|
|
International and Away From Home
|
||||
Juices and beverages
|
33.9
|
|
|
37.3
|
|
|
66.1
|
|
|
74.4
|
|
U.S. Retail Consumer Foods
|
||||
Other
|
80.1
|
|
|
78.9
|
|
|
159.4
|
|
|
157.3
|
|
International and Away From Home
|
||||
Total net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
|
(A)
|
The primary reportable segment generally represents at least
75 percent
of total net sales for each respective product category.
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net income
|
$
|
188.5
|
|
|
$
|
194.6
|
|
|
$
|
321.5
|
|
|
$
|
321.4
|
|
Less: Net income allocated to participating securities
|
1.0
|
|
|
1.1
|
|
|
1.7
|
|
|
1.7
|
|
||||
Net income allocated to common stockholders
|
$
|
187.5
|
|
|
$
|
193.5
|
|
|
$
|
319.8
|
|
|
$
|
319.7
|
|
Weighted-average common shares outstanding
|
113.2
|
|
|
113.0
|
|
|
113.1
|
|
|
113.0
|
|
||||
Add: Dilutive effect of stock options
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted-average common shares outstanding – assuming dilution
|
113.2
|
|
|
113.0
|
|
|
113.1
|
|
|
113.0
|
|
||||
Net income per common share
|
$
|
1.66
|
|
|
$
|
1.71
|
|
|
$
|
2.83
|
|
|
$
|
2.83
|
|
Net income per common share – assuming dilution
|
$
|
1.66
|
|
|
$
|
1.71
|
|
|
$
|
2.83
|
|
|
$
|
2.83
|
|
|
October 31, 2018
|
|
April 30, 2018
|
||||||||||||
|
Principal
Outstanding
|
|
Carrying
Amount
(A)
|
|
Principal
Outstanding
|
|
Carrying
Amount
(A)
|
||||||||
2.20% Senior Notes due December 6, 2019
|
$
|
300.0
|
|
|
$
|
299.1
|
|
|
$
|
300.0
|
|
|
$
|
298.6
|
|
2.50% Senior Notes due March 15, 2020
|
500.0
|
|
|
498.4
|
|
|
500.0
|
|
|
497.8
|
|
||||
3.50% Senior Notes due October 15, 2021
|
750.0
|
|
|
772.0
|
|
|
750.0
|
|
|
775.6
|
|
||||
3.00% Senior Notes due March 15, 2022
|
400.0
|
|
|
397.7
|
|
|
400.0
|
|
|
397.3
|
|
||||
3.50% Senior Notes due March 15, 2025
|
1,000.0
|
|
|
994.8
|
|
|
1,000.0
|
|
|
994.4
|
|
||||
3.38% Senior Notes due December 15, 2027
|
500.0
|
|
|
496.0
|
|
|
500.0
|
|
|
495.8
|
|
||||
4.25% Senior Notes due March 15, 2035
|
650.0
|
|
|
643.3
|
|
|
650.0
|
|
|
643.1
|
|
||||
4.38% Senior Notes due March 15, 2045
|
600.0
|
|
|
585.7
|
|
|
600.0
|
|
|
585.4
|
|
||||
Term Loan Credit Agreement due May 14, 2021
|
1,200.0
|
|
|
1,198.1
|
|
|
—
|
|
|
—
|
|
||||
Total long-term debt
|
$
|
5,900.0
|
|
|
$
|
5,885.1
|
|
|
$
|
4,700.0
|
|
|
$
|
4,688.0
|
|
(A)
|
Represents the carrying amount included in the Condensed Consolidated Balance Sheets, which includes the impact of terminated interest rate contracts, offering discounts, and capitalized debt issuance costs.
|
|
Three Months Ended October 31,
|
||||||||||||||
|
Defined Benefit Pension Plans
|
|
Other Postretirement Benefits
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
0.5
|
|
|
$
|
1.7
|
|
|
$
|
0.5
|
|
|
$
|
0.5
|
|
Interest cost
|
5.8
|
|
|
5.4
|
|
|
0.6
|
|
|
0.6
|
|
||||
Expected return on plan assets
|
(6.7
|
)
|
|
(7.2
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of net actuarial loss (gain)
|
2.1
|
|
|
2.8
|
|
|
(0.2
|
)
|
|
(0.1
|
)
|
||||
Amortization of prior service cost (credit)
|
0.3
|
|
|
0.3
|
|
|
(0.3
|
)
|
|
(0.4
|
)
|
||||
Net periodic benefit cost
|
$
|
2.0
|
|
|
$
|
3.0
|
|
|
$
|
0.6
|
|
|
$
|
0.6
|
|
|
Six Months Ended October 31,
|
||||||||||||||
|
Defined Benefit Pension Plans
|
|
Other Postretirement Benefits
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Service cost
|
$
|
1.1
|
|
|
$
|
3.4
|
|
|
$
|
0.9
|
|
|
$
|
1.0
|
|
Interest cost
|
11.7
|
|
|
10.8
|
|
|
1.2
|
|
|
1.1
|
|
||||
Expected return on plan assets
|
(13.5
|
)
|
|
(14.4
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of net actuarial loss (gain)
|
4.1
|
|
|
5.7
|
|
|
(0.3
|
)
|
|
(0.2
|
)
|
||||
Amortization of prior service cost (credit)
|
0.5
|
|
|
0.5
|
|
|
(0.6
|
)
|
|
(0.7
|
)
|
||||
Net periodic benefit cost
|
$
|
3.9
|
|
|
$
|
6.0
|
|
|
$
|
1.2
|
|
|
$
|
1.2
|
|
|
October 31, 2018
|
||||||||||||||
|
Other
Current
Assets
|
|
Other
Current
Liabilities
|
|
Other
Noncurrent
Assets
|
|
Other
Noncurrent
Liabilities
|
||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Interest rate contracts
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
|
$
|
—
|
|
Total derivatives designated as hedging instruments
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.5
|
|
|
$
|
—
|
|
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
21.1
|
|
|
$
|
13.8
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
Foreign currency exchange contracts
|
2.0
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total derivatives not designated as hedging instruments
|
$
|
23.1
|
|
|
$
|
13.8
|
|
|
$
|
—
|
|
|
$
|
0.2
|
|
Total derivative instruments
|
$
|
23.1
|
|
|
$
|
13.8
|
|
|
$
|
10.5
|
|
|
$
|
0.2
|
|
|
April 30, 2018
|
||||||||||||||
|
Other
Current
Assets
|
|
Other
Current
Liabilities
|
|
Other
Noncurrent
Assets
|
|
Other
Noncurrent
Liabilities
|
||||||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
||||||||
Commodity contracts
|
$
|
14.8
|
|
|
$
|
6.8
|
|
|
$
|
0.4
|
|
|
$
|
0.2
|
|
Foreign currency exchange contracts
|
2.2
|
|
|
0.7
|
|
|
—
|
|
|
—
|
|
||||
Total derivative instruments
|
$
|
17.0
|
|
|
$
|
7.5
|
|
|
$
|
0.4
|
|
|
$
|
0.2
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gains (losses) recognized in other comprehensive
income (loss)
|
$
|
7.9
|
|
|
$
|
1.0
|
|
|
$
|
10.5
|
|
|
$
|
3.5
|
|
Less: Gains (losses) reclassified from accumulated
other comprehensive income (loss) to interest expense
|
(0.1
|
)
|
|
(0.2
|
)
|
|
(0.2
|
)
|
|
(0.3
|
)
|
||||
Change in accumulated other comprehensive income
(loss)
|
$
|
8.0
|
|
|
$
|
1.2
|
|
|
$
|
10.7
|
|
|
$
|
3.8
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gains (losses) on commodity contracts
|
$
|
(3.2
|
)
|
|
$
|
(13.9
|
)
|
|
$
|
(30.1
|
)
|
|
$
|
2.5
|
|
Gains (losses) on foreign currency exchange contracts
|
0.8
|
|
|
4.3
|
|
|
1.5
|
|
|
(5.2
|
)
|
||||
Total gains (losses) recognized in cost of products sold
|
$
|
(2.4
|
)
|
|
$
|
(9.6
|
)
|
|
$
|
(28.6
|
)
|
|
$
|
(2.7
|
)
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Net gains (losses) on mark-to-market valuation of
unallocated derivative positions
|
$
|
(2.4
|
)
|
|
$
|
(9.6
|
)
|
|
$
|
(28.6
|
)
|
|
$
|
(2.7
|
)
|
Less: Net gains (losses) on derivative positions
reclassified to segment operating profit
|
(2.3
|
)
|
|
(19.3
|
)
|
|
(6.5
|
)
|
|
(25.0
|
)
|
||||
Unallocated derivative gains (losses)
|
$
|
(0.1
|
)
|
|
$
|
9.7
|
|
|
$
|
(22.1
|
)
|
|
$
|
22.3
|
|
|
October 31, 2018
|
|
April 30, 2018
|
||||
Commodity contracts
|
$
|
949.1
|
|
|
$
|
658.0
|
|
Foreign currency exchange contracts
|
64.0
|
|
|
122.1
|
|
||
Interest rate contract
|
500.0
|
|
|
—
|
|
|
October 31, 2018
|
|
April 30, 2018
|
||||||||||||
|
Carrying
Amount
|
|
Fair Value
|
|
Carrying
Amount
|
|
Fair Value
|
||||||||
Marketable securities and other investments
|
$
|
46.4
|
|
|
$
|
46.4
|
|
|
$
|
45.8
|
|
|
$
|
45.8
|
|
Derivative financial instruments – net
|
19.6
|
|
|
19.6
|
|
|
9.7
|
|
|
9.7
|
|
||||
Long-term debt
|
$
|
(5,885.1
|
)
|
|
$
|
(5,793.5
|
)
|
|
$
|
(4,688.0
|
)
|
|
$
|
(4,579.8
|
)
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value at October 31, 2018
|
||||||||
Marketable securities and other investments:
(A)
|
|
|
|
|
|
|
|
||||||||
Equity mutual funds
|
$
|
10.4
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
10.4
|
|
Municipal obligations
|
—
|
|
|
35.8
|
|
|
—
|
|
|
35.8
|
|
||||
Money market funds
|
0.2
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
||||
Derivative financial instruments:
(B)
|
|
|
|
|
|
|
|
||||||||
Commodity contracts – net
|
6.7
|
|
|
0.4
|
|
|
—
|
|
|
7.1
|
|
||||
Foreign currency exchange contracts – net
|
0.1
|
|
|
1.9
|
|
|
—
|
|
|
2.0
|
|
||||
Interest rate contract
|
—
|
|
|
10.5
|
|
|
—
|
|
|
10.5
|
|
||||
Long-term debt
(C)
|
(4,466.2
|
)
|
|
(1,327.3
|
)
|
|
—
|
|
|
(5,793.5
|
)
|
||||
Total financial instruments measured at fair value
|
$
|
(4,448.8
|
)
|
|
$
|
(1,278.7
|
)
|
|
$
|
—
|
|
|
$
|
(5,727.5
|
)
|
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
|
Significant
Observable
Inputs
(Level 2)
|
|
Significant
Unobservable
Inputs
(Level 3)
|
|
Fair Value at
April 30, 2018
|
||||||||
Marketable securities and other investments:
(A)
|
|
|
|
|
|
|
|
||||||||
Equity mutual funds
|
$
|
9.3
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
9.3
|
|
Municipal obligations
|
—
|
|
|
36.1
|
|
|
—
|
|
|
36.1
|
|
||||
Money market funds
|
0.4
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
||||
Derivative financial instruments:
(B)
|
|
|
|
|
|
|
|
||||||||
Commodity contracts – net
|
7.2
|
|
|
1.0
|
|
|
—
|
|
|
8.2
|
|
||||
Foreign currency exchange contracts – net
|
0.1
|
|
|
1.4
|
|
|
—
|
|
|
1.5
|
|
||||
Long-term debt
(C)
|
(4,579.8
|
)
|
|
—
|
|
|
—
|
|
|
(4,579.8
|
)
|
||||
Total financial instruments measured at fair value
|
$
|
(4,562.8
|
)
|
|
$
|
38.5
|
|
|
$
|
—
|
|
|
$
|
(4,524.3
|
)
|
(A)
|
Marketable securities and other investments consist of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third party using valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of
three months or less
. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of
October 31, 2018
, our municipal obligations are scheduled to mature as follows:
$1.4
in 2019,
$0.9
in 2020,
$1.0
in 2021,
$1.0
in 2022, and the remaining
$31.5
in 2023 and beyond.
|
(B)
|
Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. The Level 2 interest rate contract is valued using standard valuation techniques, the income approach, and observable Level 2 market expectations at the measurement date to convert future amounts to a single discounted present value. Level 2 inputs for the interest rate contract valuation are
|
(C)
|
Long-term debt is composed of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements.
|
|
Foreign
Currency
Translation
Adjustment
|
|
Net Gains (Losses)
on Cash Flow
Hedging
Derivatives
(A)
|
|
Pension and
Other
Postretirement
Liabilities
(B)
|
|
Unrealized
Gain (Loss)
on Available-
for-Sale
Securities
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||
Balance at May 1, 2018
|
$
|
(16.4
|
)
|
|
$
|
(2.9
|
)
|
|
$
|
(101.0
|
)
|
|
$
|
3.6
|
|
|
$
|
(116.7
|
)
|
Reclassification adjustments
|
—
|
|
|
0.2
|
|
|
4.3
|
|
|
—
|
|
|
4.5
|
|
|||||
Current period credit (charge)
|
(11.7
|
)
|
|
10.5
|
|
|
—
|
|
|
0.8
|
|
|
(0.4
|
)
|
|||||
Income tax benefit (expense)
|
—
|
|
|
(2.5
|
)
|
|
(1.1
|
)
|
|
(0.2
|
)
|
|
(3.8
|
)
|
|||||
Balance at October 31, 2018
|
$
|
(28.1
|
)
|
|
$
|
5.3
|
|
|
$
|
(97.8
|
)
|
|
$
|
4.2
|
|
|
$
|
(116.4
|
)
|
|
Foreign
Currency
Translation
Adjustment
|
|
Net Gains (Losses)
on Cash Flow
Hedging
Derivatives
(A)
|
|
Pension and
Other
Postretirement
Liabilities
(B)
|
|
Unrealized
Gain (Loss)
on Available-
for-Sale
Securities
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
||||||||||
Balance at May 1, 2017
|
$
|
(43.0
|
)
|
|
$
|
(4.4
|
)
|
|
$
|
(100.0
|
)
|
|
$
|
4.0
|
|
|
$
|
(143.4
|
)
|
Reclassification adjustments
|
—
|
|
|
0.3
|
|
|
5.3
|
|
|
—
|
|
|
5.6
|
|
|||||
Current period credit (charge)
|
21.9
|
|
|
3.5
|
|
|
3.3
|
|
|
(0.5
|
)
|
|
28.2
|
|
|||||
Income tax benefit (expense)
|
—
|
|
|
(1.4
|
)
|
|
(2.9
|
)
|
|
0.2
|
|
|
(4.1
|
)
|
|||||
Balance at October 31, 2017
|
$
|
(21.1
|
)
|
|
$
|
(2.0
|
)
|
|
$
|
(94.3
|
)
|
|
$
|
3.7
|
|
|
$
|
(113.7
|
)
|
(A)
|
The reclassification from accumulated other comprehensive income (loss) to interest expense was related to terminated interest rate contracts. The current period credit relates to the unrealized gain on the interest rate contract entered into in June 2018, and the prior period credit relates to the gain on the interest rate contract terminated in December 2017. For additional information, see Note 11: Derivative Financial Instruments.
|
(B)
|
Amortization of net losses was reclassified from accumulated other comprehensive income (loss) to other income (expense) – net.
|
|
October 31, 2018
|
|
April 30, 2018
|
||
Common shares authorized
|
300.0
|
|
|
300.0
|
|
Common shares outstanding
|
113.8
|
|
|
113.6
|
|
Treasury shares
|
32.7
|
|
|
32.9
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
% Increase (Decrease)
|
|
2018
|
|
2017
|
|
% Increase (Decrease)
|
||||||||||
Net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
5
|
%
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
|
7
|
%
|
Gross profit
|
$
|
771.3
|
|
|
$
|
755.0
|
|
|
2
|
|
|
$
|
1,449.5
|
|
|
$
|
1,417.1
|
|
|
2
|
|
% of net sales
|
38.2
|
%
|
|
39.2
|
%
|
|
|
|
|
36.9
|
%
|
|
38.6
|
%
|
|
|
|||||
Operating income
|
$
|
330.5
|
|
|
$
|
332.1
|
|
|
—
|
|
|
$
|
557.4
|
|
|
$
|
567.3
|
|
|
(2
|
)
|
% of net sales
|
16.3
|
%
|
|
17.3
|
%
|
|
|
|
14.2
|
%
|
|
15.4
|
%
|
|
|
||||||
Net income:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net income
|
$
|
188.5
|
|
|
$
|
194.6
|
|
|
(3
|
)
|
|
$
|
321.5
|
|
|
$
|
321.4
|
|
|
—
|
|
Net income per common share –
assuming dilution
|
$
|
1.66
|
|
|
$
|
1.71
|
|
|
(3
|
)
|
|
$
|
2.83
|
|
|
$
|
2.83
|
|
|
—
|
|
Adjusted gross profit
(A)
|
$
|
771.4
|
|
|
$
|
746.2
|
|
|
3
|
|
|
$
|
1,471.6
|
|
|
$
|
1,396.4
|
|
|
5
|
|
% of net sales
|
38.2
|
%
|
|
38.8
|
%
|
|
|
|
37.5
|
%
|
|
38.0
|
%
|
|
|
||||||
Adjusted operating income
(A)
|
$
|
415.7
|
|
|
$
|
384.6
|
|
|
8
|
|
|
$
|
732.8
|
|
|
$
|
686.5
|
|
|
7
|
|
% of net sales
|
20.6
|
%
|
|
20.0
|
%
|
|
|
|
18.7
|
%
|
|
18.7
|
%
|
|
|
||||||
Adjusted income:
(A)
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Income
|
$
|
246.5
|
|
|
$
|
229.5
|
|
|
7
|
|
|
$
|
448.9
|
|
|
$
|
401.1
|
|
|
12
|
|
Earnings per share – assuming dilution
|
$
|
2.17
|
|
|
$
|
2.02
|
|
|
7
|
|
|
$
|
3.95
|
|
|
$
|
3.53
|
|
|
12
|
|
(A)
|
We use non-GAAP financial measures to evaluate our performance. Refer to “Non-GAAP Financial Measures” in this discussion and analysis for a reconciliation to the comparable GAAP financial measure.
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||||||||||||||||
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
|
%
|
|
2018
|
|
2017
|
|
Increase
(Decrease)
|
|
%
|
||||||||||||||
Net sales
|
$
|
2,021.5
|
|
|
$
|
1,923.6
|
|
|
$
|
97.9
|
|
|
5
|
%
|
|
$
|
3,924.0
|
|
|
$
|
3,672.5
|
|
|
$
|
251.5
|
|
|
7
|
%
|
Ainsworth acquisition
|
(184.2
|
)
|
|
—
|
|
|
(184.2
|
)
|
|
(10
|
)
|
|
(347.0
|
)
|
|
—
|
|
|
(347.0
|
)
|
|
(9
|
)
|
||||||
Baking divestiture
|
—
|
|
|
(74.2
|
)
|
|
74.2
|
|
|
4
|
|
|
—
|
|
|
(74.2
|
)
|
|
74.2
|
|
|
2
|
|
||||||
Foreign currency exchange
|
4.9
|
|
|
—
|
|
|
4.9
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
|
4.1
|
|
|
—
|
|
||||||
Net sales excluding acquisition, divestiture, and foreign currency exchange
(A)
|
$
|
1,842.2
|
|
|
$
|
1,849.4
|
|
|
$
|
(7.2
|
)
|
|
—
|
%
|
|
$
|
3,581.1
|
|
|
$
|
3,598.3
|
|
|
$
|
(17.2
|
)
|
|
—
|
%
|
(A)
|
Net sales excluding acquisition, divestiture, and foreign currency exchange is a non-GAAP financial measure used to evaluate performance internally. This measure provides useful information because it enables comparison of results on a year-over-year basis.
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||
Gross profit
|
38.2
|
%
|
|
39.2
|
%
|
|
36.9
|
%
|
|
38.6
|
%
|
Selling, distribution, and administrative expenses:
|
|
|
|
|
|
|
|
||||
Marketing
|
6.8
|
%
|
|
6.1
|
%
|
|
7.1
|
%
|
|
6.3
|
%
|
Selling
|
3.3
|
|
|
3.4
|
|
|
3.4
|
|
|
3.6
|
|
Distribution
|
3.3
|
|
|
3.2
|
|
|
3.4
|
|
|
3.2
|
|
General and administrative
|
5.6
|
|
|
6.1
|
|
|
5.7
|
|
|
6.1
|
|
Total selling, distribution, and administrative expenses
|
18.9
|
%
|
|
18.7
|
%
|
|
19.5
|
%
|
|
19.3
|
%
|
|
|
|
|
|
|
|
|
||||
Amortization
|
3.0
|
|
|
2.7
|
|
|
3.1
|
|
|
2.8
|
|
Other special project costs
|
1.3
|
|
|
0.5
|
|
|
0.8
|
|
|
1.0
|
|
Other operating expense (income) – net
|
(1.3
|
)
|
|
0.1
|
|
|
(0.7
|
)
|
|
—
|
|
Operating income
|
16.3
|
%
|
|
17.3
|
%
|
|
14.2
|
%
|
|
15.4
|
%
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||||||||
|
2018
|
|
2017
|
|
% Increase
(Decrease)
|
|
2018
|
|
2017
|
|
% Increase
(Decrease)
|
||||||||||
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Retail Coffee
|
$
|
544.9
|
|
|
$
|
551.4
|
|
|
(1
|
)%
|
|
$
|
1,034.4
|
|
|
$
|
1,030.8
|
|
|
—
|
%
|
U.S. Retail Consumer Foods
|
461.9
|
|
|
527.8
|
|
|
(12
|
)
|
|
945.2
|
|
|
1,015.7
|
|
|
(7
|
)
|
||||
U.S. Retail Pet Foods
|
728.1
|
|
|
551.1
|
|
|
32
|
|
|
1,399.3
|
|
|
1,071.8
|
|
|
31
|
|
||||
International and Away From Home
|
286.6
|
|
|
293.3
|
|
|
(2
|
)
|
|
545.1
|
|
|
554.2
|
|
|
(2
|
)
|
||||
Segment profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
U.S. Retail Coffee
|
$
|
174.3
|
|
|
$
|
152.1
|
|
|
15
|
%
|
|
$
|
322.1
|
|
|
$
|
275.3
|
|
|
17
|
%
|
U.S. Retail Consumer Foods
|
134.3
|
|
|
130.2
|
|
|
3
|
|
|
231.6
|
|
|
240.3
|
|
|
(4
|
)
|
||||
U.S. Retail Pet Foods
|
123.9
|
|
|
122.4
|
|
|
1
|
|
|
224.3
|
|
|
220.2
|
|
|
2
|
|
||||
International and Away From Home
|
56.7
|
|
|
55.4
|
|
|
2
|
|
|
100.1
|
|
|
95.6
|
|
|
5
|
|
||||
Segment profit margin:
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
U.S. Retail Coffee
|
32.0
|
%
|
|
27.6
|
%
|
|
|
|
|
31.1
|
%
|
|
26.7
|
%
|
|
|
|||||
U.S. Retail Consumer Foods
|
29.1
|
|
|
24.7
|
|
|
|
|
|
24.5
|
|
|
23.7
|
|
|
|
|||||
U.S. Retail Pet Foods
|
17.0
|
|
|
22.2
|
|
|
|
|
|
16.0
|
|
|
20.5
|
|
|
|
|||||
International and Away From Home
|
19.8
|
|
|
18.9
|
|
|
|
|
|
18.4
|
|
|
17.3
|
|
|
|
|
Six Months Ended October 31,
|
||||||
|
2018
|
|
2017
|
||||
Net cash provided by (used for) operating activities
|
$
|
445.9
|
|
|
$
|
434.6
|
|
Net cash provided by (used for) investing activities
|
(1,718.9
|
)
|
|
(106.3
|
)
|
||
Net cash provided by (used for) financing activities
|
1,256.2
|
|
|
(321.2
|
)
|
||
|
|
|
|
||||
Net cash provided by (used for) operating activities
|
$
|
445.9
|
|
|
$
|
434.6
|
|
Additions to property, plant, and equipment
|
(179.1
|
)
|
|
(130.0
|
)
|
||
Free cash flow
(A)
|
$
|
266.8
|
|
|
$
|
304.6
|
|
(A)
|
Free cash flow is a non-GAAP financial measure used by management to evaluate the amount of cash available for debt repayment, dividend distribution, acquisition opportunities, share repurchases, and other corporate purposes.
|
|
October 31, 2018
|
|
April 30, 2018
|
||||
Short-term borrowings
|
$
|
390.0
|
|
|
$
|
144.0
|
|
Long-term debt
|
5,885.1
|
|
|
4,688.0
|
|
||
Total debt
|
$
|
6,275.1
|
|
|
$
|
4,832.0
|
|
Shareholders’ equity
|
8,030.0
|
|
|
7,891.1
|
|
||
Total capital
|
$
|
14,305.1
|
|
|
$
|
12,723.1
|
|
|
Three Months Ended October 31,
|
|
Six Months Ended October 31,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Gross profit reconciliation:
|
|
|
|
|
|
|
|
||||||||
Gross profit
|
$
|
771.3
|
|
|
$
|
755.0
|
|
|
$
|
1,449.5
|
|
|
$
|
1,417.1
|
|
Unallocated derivative losses (gains)
|
0.1
|
|
|
(9.7
|
)
|
|
22.1
|
|
|
(22.3
|
)
|
||||
Cost of products sold – special project costs
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.6
|
|
||||
Adjusted gross profit
|
$
|
771.4
|
|
|
$
|
746.2
|
|
|
$
|
1,471.6
|
|
|
$
|
1,396.4
|
|
Operating income reconciliation:
|
|
|
|
|
|
|
|
||||||||
Operating income
|
$
|
330.5
|
|
|
$
|
332.1
|
|
|
$
|
557.4
|
|
|
$
|
567.3
|
|
Amortization
|
59.7
|
|
|
51.6
|
|
|
120.2
|
|
|
103.1
|
|
||||
Unallocated derivative losses (gains)
|
0.1
|
|
|
(9.7
|
)
|
|
22.1
|
|
|
(22.3
|
)
|
||||
Cost of products sold – special project costs
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.6
|
|
||||
Other special project costs
|
25.4
|
|
|
9.7
|
|
|
33.1
|
|
|
36.8
|
|
||||
Adjusted operating income
|
$
|
415.7
|
|
|
$
|
384.6
|
|
|
$
|
732.8
|
|
|
$
|
686.5
|
|
Net income reconciliation:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
188.5
|
|
|
$
|
194.6
|
|
|
$
|
321.5
|
|
|
$
|
321.4
|
|
Income tax expense (benefit)
|
80.9
|
|
|
97.2
|
|
|
121.0
|
|
|
159.4
|
|
||||
Amortization
|
59.7
|
|
|
51.6
|
|
|
120.2
|
|
|
103.1
|
|
||||
Unallocated derivative losses (gains)
|
0.1
|
|
|
(9.7
|
)
|
|
22.1
|
|
|
(22.3
|
)
|
||||
Cost of products sold – special project costs
|
—
|
|
|
0.9
|
|
|
—
|
|
|
1.6
|
|
||||
Other special project costs
|
25.4
|
|
|
9.7
|
|
|
33.1
|
|
|
36.8
|
|
||||
Adjusted income before income taxes
|
$
|
354.6
|
|
|
$
|
344.3
|
|
|
$
|
617.9
|
|
|
$
|
600.0
|
|
Income taxes, as adjusted
(A)
|
108.1
|
|
|
114.8
|
|
|
169.0
|
|
|
198.9
|
|
||||
Adjusted income
|
$
|
246.5
|
|
|
$
|
229.5
|
|
|
$
|
448.9
|
|
|
$
|
401.1
|
|
Weighted-average shares – assuming dilution
|
113.7
|
|
|
113.6
|
|
|
113.7
|
|
|
113.6
|
|
||||
Adjusted earnings per share – assuming dilution
|
$
|
2.17
|
|
|
$
|
2.02
|
|
|
$
|
3.95
|
|
|
$
|
3.53
|
|
(A)
|
Income taxes, as adjusted, is based upon our GAAP effective tax rate and reflects the impact of items excluded from GAAP net income to derive adjusted income.
|
|
Total
|
|
2019
|
|
2020-2021
|
|
2022-2023
|
|
2024 and beyond
|
||||||||||
Long-term debt obligations, including current portion
(A)
|
$
|
5,900.0
|
|
|
$
|
—
|
|
|
$
|
800.0
|
|
|
$
|
2,350.0
|
|
|
$
|
2,750.0
|
|
Interest payments
(B)
|
1,815.9
|
|
|
104.5
|
|
|
409.4
|
|
|
238.6
|
|
|
1,063.4
|
|
|||||
Operating lease obligations
(C)
|
197.1
|
|
|
23.0
|
|
|
76.0
|
|
|
62.2
|
|
|
35.9
|
|
|||||
Purchase obligations
(D)
|
1,258.7
|
|
|
801.2
|
|
|
432.2
|
|
|
22.2
|
|
|
3.1
|
|
|||||
Other liabilities
(E)
|
286.6
|
|
|
26.1
|
|
|
43.6
|
|
|
26.6
|
|
|
190.3
|
|
|||||
Total
|
$
|
9,458.3
|
|
|
$
|
954.8
|
|
|
$
|
1,761.2
|
|
|
$
|
2,699.6
|
|
|
$
|
4,042.7
|
|
(A)
|
Excludes the impact of offering discounts, make-whole payments, and debt issuance costs.
|
(B)
|
Includes interest payments on our long-term debt, which reflects estimated payments for our variable-rate debt based on the current interest rate outlook.
|
(C)
|
Includes the minimum rental commitments under non-cancelable operating leases.
|
(D)
|
Includes agreements that are enforceable and legally bind us to purchase goods and services, including certain obligations related to normal, ongoing purchase obligations in which we have guaranteed payment to ensure availability of raw materials, packaging supplies, and co-pack arrangements. We expect to receive consideration for these purchase obligations in the form of materials and services. These purchase obligations do not represent the entire anticipated purchases in the future, but represent only those items for which we are contractually obligated.
|
(E)
|
Mainly consists of projected commitments associated with our defined benefit pension and other postretirement benefit plans. The liability for unrecognized tax benefits and tax-related net interest of $27.5 under FASB Accounting Standards Codification 740,
Income Taxes
, is excluded, since we are unable to reasonably estimate the timing of cash settlements with the respective taxing authorities.
|
|
October 31, 2018
|
|
April 30, 2018
|
||||
High
|
$
|
55.5
|
|
|
$
|
36.0
|
|
Low
|
15.3
|
|
|
17.0
|
|
||
Average
|
34.8
|
|
|
26.8
|
|
•
|
our ability to successfully integrate the acquired Ainsworth business in a timely and cost-effective manner;
|
•
|
our ability to achieve synergies and cost savings related to the Ainsworth acquisition in the amounts and within the time frames currently anticipated;
|
•
|
our ability to achieve cost savings related to our organization optimization and cost management programs in the amounts and within the time frames currently anticipated;
|
•
|
our ability to generate sufficient cash flow to meet our cash deleveraging objectives;
|
•
|
volatility of commodity, energy, and other input costs;
|
•
|
risks associated with derivative and purchasing strategies we employ to manage commodity pricing risks;
|
•
|
the availability of reliable transportation on acceptable terms;
|
•
|
our ability to implement and realize the full benefit of price changes, and the impact of the timing of the price changes to profits and cash flow in a particular period;
|
•
|
the success and cost of marketing and sales programs and strategies intended to promote growth in our businesses, including product innovation;
|
•
|
general competitive activity in the market, including competitors’ pricing practices and promotional spending levels;
|
•
|
the impact of food security concerns involving either our products or our competitors’ products;
|
•
|
the impact of accidents, extreme weather, and natural disasters;
|
•
|
the concentration of certain of our businesses with key customers and suppliers, including single-source suppliers of certain key raw materials and finished goods, and our ability to manage and maintain key relationships;
|
•
|
the timing and amount of capital expenditures and share repurchases;
|
•
|
impairments in the carrying value of goodwill, other intangible assets, or other long-lived assets or changes in useful lives of other intangible assets;
|
•
|
the impact of new or changes to existing governmental laws and regulations and their application, including tariffs;
|
•
|
the outcome of tax examinations, changes in tax laws, and other tax matters;
|
•
|
foreign currency and interest rate fluctuations; and
|
•
|
risks related to other factors described under “Risk Factors” in other reports and statements we have filed with the U.S. Securities and Exchange Commission.
|
(a)
|
Shares in this column include shares repurchased from stock plan recipients in lieu of cash payments.
|
November 28, 2018
|
THE J. M. SMUCKER COMPANY
|
|
|
|
/s/ Mark T. Smucker
|
|
By: MARK T. SMUCKER
|
|
President and Chief Executive Officer
|
|
|
|
/s/ Mark R. Belgya
|
|
By: MARK R. BELGYA
|
|
Vice Chair and Chief Financial Officer
|
Exhibit Number
|
Exhibit Description
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
1 Year JM Smucker Chart |
1 Month JM Smucker Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions