Net Sales (Tables)

6 Months Ended

Oct. 31, 2018

Net Sales [Abstract]

Impact of Adopting ASC 606 [Table Text Block]

The following table shows how the adoption of ASC 606 impacted our consolidated statement of operations for the three months ended October 31, 2018:

	Three Months Ended October 31, 2018
	Under Prior			As Reported Under			Effect of
(Dollars in millions, except per share amounts)	Guidance			ASC 606			Adoption
Sales	$	1,169		$	1,161		$	(8	)
Excise taxes	251			251			—
Net sales	918			910			(8		)
Cost of sales	320			320			—
Gross profit	598			590			(8		)
Advertising expenses	107			102			(5		)
Selling, general, and administrative expenses	162			161			(1		)
Other expense (income), net	(5		)	(5		)	—
Operating income	334			332			(2		)
Non-operating postretirement expense	2			2			—
Interest income	(2		)	(2		)	—
Interest expense	22			22			—
Income before income taxes	312			310			(2		)
Income taxes	61			61			—
Net income	$	251		$	249		$	(2	)
Earnings per share:
Basic	$	0.52		$	0.52		$	—
Diluted	$	0.52		$	0.52		$	—

The following table shows how the adoption of ASC 606 impacted our consolidated statement of operations for the six months ended October 31, 2018:

	Six Months Ended October 31, 2018
	Under Prior			As Reported Under			Effect of
(Dollars in millions, except per share amounts)	Guidance			ASC 606			Adoption
Sales	$	2,166		$	2,148		$	(18	)
Excise taxes	472			472			—
Net sales	1,694			1,676			(18		)
Cost of sales	563			563			—
Gross profit	1,131			1,113			(18		)
Advertising expenses	208			200			(8		)
Selling, general, and administrative expenses	331			329			(2		)
Other expense (income), net	(12		)	(12		)	—
Operating income	604			596			(8		)
Non-operating postretirement expense	4			4			—
Interest income	(4		)	(4		)	—
Interest expense	44			44			—
Income before income taxes	560			552			(8		)
Income taxes	105			103			(2		)
Net income	$	455		$	449		$	(6	)
Earnings per share:
Basic	$	0.94		$	0.93		$	(0.01	)
Diluted	$	0.94		$	0.93		$	(0.01	)

The following table shows how the adoption of ASC 606 impacted our consolidated balance sheet as of October 31, 2018:

	As of October 31, 2018
	Under Prior		As Reported Under		Effect of
(Dollars in millions)	Guidance		ASC 606		Adoption
Assets
Other current assets	$	306	$	305	$	(1	)
Deferred tax assets	15		16		1
Total assets	5,149		5,149		—
Liabilities
Accounts payable and accrued expenses	$	580	$	620	$	40
Deferred tax liabilities	122		113		(9		)
Total liabilities	3,621		3,652		31
Stockholders’ Equity
Retained earnings	$	2,047	$	2,016	$	(31	)
Total stockholders’ equity	1,528		1,497		(31		)

Disaggregation of Revenue [Table Text Block]

The following table shows our net sales by geography:

	Three Months Ended				Six Months Ended
	October 31,				October 31,
(Dollars in millions)	2017		2018		2017		2018
United States	$	438	$	447	$	793	$	804
Developed International1	248		234		441		449
Emerging2	159		164		282		295
Travel Retail3	44		38		74		76
Non-branded and bulk4	25		27		47		52
Total	$	914	$	910	$	1,637	$	1,676

The following table shows our net sales by product category:

	Three Months Ended				Six Months Ended
	October 31,				October 31,
(Dollars in millions)	2017		2018		2017		2018
Whiskey1	$	713	$	706	$	1,270	$	1,308
Tequila2	64		70		122		132
Vodka3	35		34		66		60
Wine4	63		62		105		102
Rest of portfolio	14		11		27		22
Non-branded and bulk5	25		27		47		52
Total	$	914	$	910	$	1,637	$	1,676