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Stock-Based Compensation
 12 Months Ended
Apr. 30, 2015
Compensation Related Costs [Abstract]  
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION
The Brown-Forman 2013 Omnibus Compensation Plan is our incentive compensation plan, which is designed to reward its participants (including our eligible officers, employees, and non-employee directors) for company performance. Under the Plan, we can grant stock-based incentive awards for up to 8,300,000 shares of common stock to eligible participants until July 28, 2023. As of April 30, 2015, awards for approximately 7,253,000 shares remain available for issuance under the Plan. We try to limit the source of shares delivered to participants under the Plan to treasury shares that we purchase from time to time on the open market, in private transactions, or otherwise.
The following table presents information about stock options and stock-settled stock appreciation rights (SSARs) granted under the Plan (or its predecessor plans) as of April 30, 2015, and for the year then ended:
 
Number of
Underlying
Shares
(in thousands)
 
Weighted
Average
Exercise Price
per Award
 
Weighted
Average
Remaining
Contractual
Term (years)
 
Aggregate
Intrinsic Value
Outstanding at April 30, 2014
4,063

 
$
42.44

 
 
 
 
Granted
366

 
91.97

 
 
 
 
Exercised
(601
)
 
33.50

 
 
 
 
Forfeited or expired
(11
)
 
86.63

 
 
 
 
Outstanding at April 30, 2015
3,817

 
$
48.46

 
4.9
 
$
163

Exercisable at April 30, 2015
2,528

 
$
36.33

 
3.5
 
$
139


The total intrinsic value of options and SSARs exercised during 2013, 2014, and 2015 was $52, $48, and $35, respectively.
We grant stock options and SSARs at an exercise price equal to the market price of the underlying stock on the grant date. Stock options and SSARs become exercisable after 3 years from the first day of the fiscal year of grant and expire 7 years after that date. The grant-date fair values of these awards granted during 2013, 2014, and 2015 were $10.70, $14.84, and $19.67 per award, respectively. We estimated the fair values using the Black-Scholes pricing model with the following assumptions: 
 
2013
 
2014
 
2015
Risk-free interest rate
0.9
%
 
1.9
%
 
2.2
%
Expected volatility
22.9
%
 
22.5
%
 
22.3
%
Expected dividend yield
1.9
%
 
1.8
%
 
1.7
%
Expected term (years)
6.50

 
6.75

 
6.75


We have also granted restricted stock units (RSUs), deferred stock units (DSUs), and shares of performance-based restricted stock (PBRS) under the Plan (or its predecessor plans). Approximately 319,000 shares underlying these awards, with a weighted-average remaining vesting period of 1.7 years, were nonvested at April 30, 2015. The following table summarizes the changes in the number of shares underlying these awards during 2015:
 
Number of
Underlying Shares
(in thousands)
 
Weighted
Average
Fair Value at
Grant Date
Nonvested at April 30, 2014
365

 
$
60.04

Granted
70

 
92.66

Adjusted for dividends or performance
9

 
66.93

Vested
(124
)
 
47.57

Forfeited
(1
)
 
81.77

Nonvested at April 30, 2015
319

 
$
72.25


For PBRS awards, performance is measured based on the relative ranking of the total shareholder return of our Class B common stock during the three-year performance period compared to that of the companies within the Standard & Poor’s Consumer Staples Index at the end of the performance period, with specific payout levels ranging from 50% to 150%.
The total fair value of RSUs, PBRS awards, and DSUs vested during 2013, 2014, and 2015 was $5, $11, and $11, respectively.
The accompanying consolidated statements of operations reflect compensation expense related to stock-based incentive awards on a pre-tax basis of $11 in 2013, $13 in 2014, and $15 in 2015, partially offset by deferred income tax benefits of $4 in 2013, $5 in 2014, and $6 in 2015. As of April 30, 2015, there was $13 of total unrecognized compensation cost related to non-vested stock-based compensation. That cost is expected to be recognized over a weighted-average period of 2.2 years.