Fair Value Measurements

12 Months Ended

Apr. 30, 2025

Fair Value Disclosures [Abstract]

Fair Value Measurements

air Value Measurements

The following table summarizes the assets and liabilities measured or disclosed at fair value on a recurring basis:

	2024				2025
April 30,	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Assets:
Cash and cash equivalents	$	446	$	446	$	444	$	444
Currency derivatives	9		9		2		2
Liabilities:
Currency derivatives	1		1		12		12
Contingent consideration	69		69		31		31
Short-term borrowings	428		428		312		312
Long-term debt (including current portion)	2,672		2,468		2,421		2,255

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. We categorize the fair values of assets and liabilities into three levels based on the assumptions (inputs) used to determine those values. Level 1 provides the most reliable measure of fair value, while Level 3 generally requires significant management judgment. The three levels are:

•Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

•Level 2 – Observable inputs other than those included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in inactive markets, or other inputs that are observable or can be derived from or corroborated by observable market data.

•Level 3 – Unobservable inputs supported by little or no market activity.

We determine the fair values of our currency derivatives (forward contracts) using standard valuation models. The significant inputs used in these models, which are readily available in public markets or can be derived from observable market transactions, include the applicable spot exchange rates, forward exchange rates, and interest rates. These fair value measurements are categorized as Level 2 within the valuation hierarchy.

We determine the fair value of long-term debt primarily based on the prices at which identical or similar debt has recently traded in the market and also considering the overall market conditions on the date of valuation. These fair value measurements are categorized as Level 2 within the valuation hierarchy.

The fair values of cash, cash equivalents, and short-term borrowings approximate the carrying amounts due to the short maturities of these instruments.

We determine the fair value of our contingent consideration liability using a Monte Carlo simulation model, which requires the use of Level 3 inputs, such as projected future net sales, discount rates, and volatility rates. Changes in any of these Level 3 inputs could result in material changes to the fair value of the contingent consideration and could materially impact the amount of non-cash expense (or income) recorded each reporting period.

The following table shows the changes in our contingent consideration liability:

Balance as of April 30, 2023	$	63
Purchase accounting adjustment	(1)
Change in fair value1	9
Foreign currency translation adjustment	(2)
Balance as of April 30, 2024	69
Change in fair value1	(43)
Foreign currency translation adjustment	5
Balance as of April 30, 2025	$	31

1Classified as “other expense (income), net” in the accompanying consolidated statement of operations.

The decrease in the fair value of our contingent consideration liability in fiscal 2025 was primarily driven by lower net sales projections for Gin Mare due to the more challenging macroeconomic environment in Europe. See Note 14 for additional information about the contingent consideration liability.

We measure some assets and liabilities at fair value on a nonrecurring basis. That is, we do not measure them at fair value on an ongoing basis, but we do adjust them to fair value in some circumstances (for example, when we determine that an asset is impaired). During the third quarter of fiscal 2023, we recognized a non-cash impairment charge of $96 related to the Finlandia brand name, which was divested on November 1, 2023. Additionally, during the fourth quarter of fiscal 2025, as a result of our annual impairment analysis performed as of the first day of our fourth fiscal quarter, we recognized a non-cash impairment charge of $47 related to the Gin Mare brand name (Note 4). The impairment charges were based on the estimated fair value of each brand name, which we determined using the relief-from-royalty method. The fair value measurements determined using this method are categorized as Level 3 within the valuation hierarchy. No other material nonrecurring fair value measurements were required during the periods presented in these financial statements.