Net Sales (Tables)

9 Months Ended

Jan. 31, 2019

The following table shows how the adoption of ASC 606 impacted our consolidated statement of operations for the three months ended January 31, 2019:



	Three Months Ended January 31, 2019
	Under Prior			As Reported Under			Effect of
(Dollars in millions, except per share amounts)	Guidance			ASC 606			Adoption
Sales	$	1,178		$	1,181		$	3
Excise taxes	277			277			—
Net sales	901			904			3
Cost of sales	333			333			—
Gross profit	568			571			3
Advertising expenses	105			103			(2		)
Selling, general, and administrative expenses	149			149			—
Other expense (income), net	(1		)	(1		)	—
Operating income	315			320			5
Non-operating postretirement expense	15			15			—
Interest income	(2		)	(2		)	—
Interest expense	23			23			—
Income before income taxes	279			284			5
Income taxes	56			57			1
Net income	$	223		$	227		$	4
Earnings per share:
Basic	$	0.46		$	0.47		$	0.01
Diluted	$	0.46		$	0.47		$	0.01

The following table shows how the adoption of ASC 606 impacted our consolidated statement of operations for the nine months ended January 31, 2019:



	Nine Months Ended January 31, 2019
	Under Prior			As Reported Under			Effect of
(Dollars in millions, except per share amounts)	Guidance			ASC 606			Adoption
Sales	$	3,344		$	3,329		$	(15	)
Excise taxes	749			749			—
Net sales	2,595			2,580			(15		)
Cost of sales	896			896			—
Gross profit	1,699			1,684			(15		)
Advertising expenses	313			303			(10		)
Selling, general, and administrative expenses	480			478			(2		)
Other expense (income), net	(13		)	(13		)	—
Operating income	919			916			(3		)
Non-operating postretirement expense	19			19			—
Interest income	(6		)	(6		)	—
Interest expense	67			67			—
Income before income taxes	839			836			(3		)
Income taxes	161			160			(1		)
Net income	$	678		$	676		$	(2	)
Earnings per share:
Basic	$	1.41		$	1.41		$	—
Diluted	$	1.40		$	1.40		$	—

The following table shows how the adoption of ASC 606 impacted our consolidated balance sheet as of January 31, 2019:



	As of January 31, 2019
	Under Prior		As Reported Under		Effect of
(Dollars in millions)	Guidance		ASC 606		Adoption
Assets
Other current assets	$	288	$	287	$	(1	)
Deferred tax assets	19		20		1
Total assets	5,163		5,163		—

Liabilities
Accounts payable and accrued expenses	$	553	$	587	$	34
Deferred tax liabilities	126		119		(7		)
Total liabilities	3,643		3,670		27

Stockholders’ Equity
Retained earnings	$	2,112	$	2,085	$	(27	)
Total stockholders’ equity	1,520		1,493		(27		)

The following table shows our net sales by geography:

The following table shows our net sales by product category: