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Reportable Segments | 9 Months Ended
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Jan. 31, 2020
Segment Reporting [Abstract] |
Reportable Segments | We operate in one industry: the manufacturing and marketing of food and beverage products. We have four reportable segments: U.S. Retail Pet Foods, U.S. Retail Coffee, U.S. Retail Consumer Foods, and International and Away From Home. The U.S. Retail Pet Foods segment primarily includes the domestic sales of Rachael RayTM Nutrish®, Meow Mix®, Milk-Bone®, Natural Balance®, Kibbles ’n Bits®, 9Lives®, Nature’s Recipe®, and Pup-Peroni® branded products; the U.S. Retail Coffee segment primarily includes the domestic sales of Folgers®, Dunkin’ Donuts®, and Café Bustelo® branded coffee; and the U.S. Retail Consumer Foods segment primarily includes the domestic sales of Smucker’s®, Jif®, and Crisco® branded products. The International and Away From Home segment comprises products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., restaurants, lodging, schools and universities, health care operators). Segment profit represents net sales, less direct and allocable operating expenses, and is consistent with the way in which we manage our segments. However, we do not represent that the segments, if operated independently, would report operating profit equal to the segment profit set forth below, as segment profit excludes certain expenses such as corporate administrative expenses, unallocated gains and losses on commodity and foreign currency exchange derivative activities, as well as amortization expense and impairment charges related to intangible assets. Commodity and foreign currency exchange derivative gains and losses are reported in unallocated derivative gains and losses outside of segment operating results until the related inventory is sold. At that time, we reclassify the hedge gains and losses from unallocated derivative gains and losses to segment profit, allowing our segments to realize the economic effect of the hedge without experiencing any mark-to-market volatility. We would expect that any gain or loss in the estimated fair value of the derivatives would generally be offset by a change in the estimated fair value of the underlying exposures.
| Three Months Ended January 31, |  |  |  | Nine Months Ended January 31, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Net sales: |  |  |  |  |  |  |
U.S. Retail Pet Foods | $ | 721.9 |  |  | $ | 759.0 |  |  | $ | 2,101.7 |  |  | $ | 2,158.3 |
U.S. Retail Coffee | 558.8 |  |  | 561.6 |  |  | 1,567.9 |  |  | 1,596.0 |
U.S. Retail Consumer Foods | 422.9 |  |  | 422.7 |  |  | 1,251.2 |  |  | 1,367.9 |
International and Away From Home | 268.7 |  |  | 268.6 |  |  | 788.2 |  |  | 813.7 |
Total net sales | $ | 1,972.3 |  |  | $ | 2,011.9 |  |  | $ | 5,709.0 |  |  | $ | 5,935.9 |
Segment profit: |  |  |  |  |  |  |
U.S. Retail Pet Foods | $ | 146.0 |  |  | $ | 147.9 |  |  | $ | 403.1 |  |  | $ | 372.2 |
U.S. Retail Coffee | 189.5 |  |  | 183.7 |  |  | 500.9 |  |  | 505.8 |
U.S. Retail Consumer Foods | 84.2 |  |  | 95.9 |  |  | 256.6 |  |  | 327.5 |
International and Away From Home | 49.0 |  |  | 52.5 |  |  | 131.7 |  |  | 152.6 |
Total segment profit | $ | 468.7 |  |  | $ | 480.0 |  |  | $ | 1,292.3 |  |  | $ | 1,358.1 |
Amortization | (58.8) |  |  | (59.7) |  |  | (176.4) |  |  | (179.9) |
Other intangible assets impairment charges | (52.4) |  |  | (107.2) |  |  | (52.4) |  |  | (107.2) |
Interest expense – net | (45.1) |  |  | (51.6) |  |  | (143.6) |  |  | (158.8) |
Unallocated derivative gains (losses) | 7.7 |  |  | (2.9) |  |  | 37.6 |  |  | (25.0) |
Other special project costs (A) | (3.3) |  |  | (18.8) |  |  | (9.9) |  |  | (51.9) |
Corporate administrative expenses | (72.9) |  |  | (73.8) |  |  | (214.8) |  |  | (219.1) |
Other income (expense) – net | (1.4) |  |  | (8.8) |  |  | (4.5) |  |  | (16.5) |
Income before income taxes | $ | 242.5 |  |  | $ | 157.2 |  |  | $ | 728.3 |  |  | $ | 599.7 |
(A)Other special project costs includes integration and restructuring costs. For more information, see Note 4: Integration and Restructuring Costs. The following table presents certain geographical information.
| Three Months Ended January 31, |  |  |  | Nine Months Ended January 31, |  |
| 2020 |  | 2019 |  | 2020 |  | 2019
Net sales: |  |  |  |  |  |  |
United States | $ | 1,837.6 |  |  | $ | 1,880.6 |  |  | $ | 5,311.1 |  |  | $ | 5,526.1 |
International: |  |  |  |  |  |  |
Canada | $ | 108.7 |  |  | $ | 106.7 |  |  | $ | 318.9 |  |  | $ | 319.2 |
All other international | 26.0 |  |  | 24.6 |  |  | 79.0 |  |  | 90.6 |
Total international | $ | 134.7 |  |  | $ | 131.3 |  |  | $ | 397.9 |  |  | $ | 409.8 |
Total net sales | $ | 1,972.3 |  |  | $ | 2,011.9 |  |  | $ | 5,709.0 |  |  | $ | 5,935.9 |
The following table presents product category information.
| Three Months Ended January 31, |  |  |  | Nine Months Ended January 31, |  |  |  |
| 2020 |  | 2019 |  | 2020 |  | 2019 |  | Primary Reportable Segment (A)
Coffee | $ | 650.7 |  |  | $ | 653.5 |  |  | $ | 1,824.5 |  |  | $ | 1,867.3 |  |  | U.S. Retail Coffee
Dog food | 300.8 |  |  | 337.5 |  |  | 899.0 |  |  | 980.9 |  |  | U.S. Retail Pet Foods
Cat food | 223.9 |  |  | 218.9 |  |  | 633.6 |  |  | 615.2 |  |  | U.S. Retail Pet Foods
Pet snacks | 214.6 |  |  | 217.9 |  |  | 617.8 |  |  | 607.6 |  |  | U.S. Retail Pet Foods
Peanut butter | 180.0 |  |  | 188.5 |  |  | 533.3 |  |  | 574.6 |  |  | U.S. Retail Consumer Foods
Fruit spreads | 88.3 |  |  | 86.0 |  |  | 264.0 |  |  | 254.6 |  |  | U.S. Retail Consumer Foods
Frozen handheld | 82.6 |  |  | 67.3 |  |  | 247.5 |  |  | 210.5 |  |  | U.S. Retail Consumer Foods
Shortening and oils | 68.9 |  |  | 74.8 |  |  | 192.2 |  |  | 207.0 |  |  | U.S. Retail Consumer Foods
Portion control | 42.0 |  |  | 40.1 |  |  | 123.9 |  |  | 122.6 |  |  | International and Away From Home
Juices and beverages | 30.4 |  |  | 30.6 |  |  | 94.0 |  |  | 96.7 |  |  | U.S. Retail Consumer Foods
Baking mixes and ingredients | 19.6 |  |  | 21.9 |  |  | 59.3 |  |  | 164.6 |  |  | International and Away From Home (B)
Other | 70.5 |  |  | 74.9 |  |  | 219.9 |  |  | 234.3 |  |  | International and Away From Home
Total net sales | $ | 1,972.3 |  |  | $ | 2,011.9 |  |  | $ | 5,709.0 |  |  | $ | 5,935.9 |  |  |
(A)The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category. (B)During the three and nine months ended January 31, 2019, the primary reportable segment was U.S. Retail Consumer Foods, as the majority of the net sales within this category were related to the divested U.S. baking business. For more information, see Note 5: Divestiture.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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