UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

___________________________________________________ 

FORM 10-Q

___________________________________________________ 

☒ QUARTERLY REPORT PURSUANT TO SECTIONS 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: October 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission file number: 1-5111

 ___________________________________________________

The J. M. Smucker Company

(Exact name of registrant as specified in its charter)

___________________________________________________ 

Ohio			34-0538550
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
One Strawberry Lane
Orrville,	Ohio		44667-0280
(Address of principal executive offices)			(Zip code)
Registrant’s telephone number, including area code:			(330)	682-3000
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class		Trading symbol	Name of each exchange on which registered
Common shares, no par value		SJM	New York Stock Exchange

 ___________________________________________________

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ý    No  o

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes  ý    No  o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes  ☐    No  ý

The Company had 108,363,216 common shares outstanding on November 16, 2021.

TABLE OF CONTENTS

 

		Page No.
PART I. FINANCIAL INFORMATION
Item 1.	Financial Statements
	Condensed Statements of Consolidated Income	2
	Condensed Statements of Consolidated Comprehensive Income	2
	Condensed Consolidated Balance Sheets	3
	Condensed Statements of Consolidated Cash Flows	4
	Condensed Statements of Consolidated Shareholders’ Equity	5
	Notes to Unaudited Condensed Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	30
Item 4.	Controls and Procedures	32
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	34
Item 6.	Exhibits	34
SIGNATURES		35
INDEX OF EXHIBITS		36

1

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED INCOME

(Unaudited)

	Three Months Ended October 31,				Six Months Ended October 31,
Dollars in millions, except per share data	2021		2020		2021		2020
Net sales	$	2,050.0	$	2,034.0	$	3,908.0	$	4,005.8
Cost of products sold (A)	1,338.5		1,215.8		2,557.1		2,412.2
Gross Profit	711.5		818.2		1,350.9		1,593.6
Selling, distribution, and administrative expenses	347.7		382.8		671.7		740.3
Amortization	55.4		59.5		110.8		119.1
Other special project costs (A)	1.3		—		3.1		—
Other operating expense (income) – net	(4.7)		(4.9)		(5.9)		(7.7)
Operating Income	311.8		380.8		571.2		741.9
Interest expense – net	(40.3)		(45.1)		(83.4)		(91.2)
Other income (expense) – net	(2.7)		(32.2)		(13.8)		(33.6)
Income Before Income Taxes	268.8		303.5		474.0		617.1
Income tax expense	62.8		72.7		114.1		149.3
Net Income	$	206.0	$	230.8	$	359.9	$	467.8
Earnings per common share:
Net Income	$	1.90	$	2.02	$	3.32	$	4.10
Net Income – Assuming Dilution	$	1.90	$	2.02	$	3.32	$	4.10

(A) Special project costs include divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs. For more information, see Note 3: Integration and Restructuring Costs and Note 5: Reportable Segments.

See notes to unaudited condensed consolidated financial statements.

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended October 31,				Six Months Ended October 31,
Dollars in millions	2021		2020		2021		2020
Net income	$	206.0	$	230.8	$	359.9	$	467.8
Other comprehensive income (loss):
Foreign currency translation adjustments	2.0		2.3		(2.0)		15.2
Cash flow hedging derivative activity, net of tax	2.7		2.7		5.0		5.3
Pension and other postretirement benefit plans activity, net of tax	6.5		28.7		3.9		30.4
Available-for-sale securities activity, net of tax	(0.1)		(0.3)		—		0.6
Total Other Comprehensive Income (Loss)	11.1		33.4		6.9		51.5
Comprehensive Income	$	217.1	$	264.2	$	366.8	$	519.3

See notes to unaudited condensed consolidated financial statements.

2

THE J. M. SMUCKER COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

Dollars in millions	October 31, 2021		April 30, 2021
ASSETS
Current Assets
Cash and cash equivalents	$	155.3	$	334.3
Trade receivables – net	659.1		533.7
Inventories:
Finished products	695.5		607.6
Raw materials	404.7		352.3
Total Inventory	1,100.2		959.9
Other current assets	94.2		113.8
Total Current Assets	2,008.8		1,941.7
Property, Plant, and Equipment
Land and land improvements	124.6		124.3
Buildings and fixtures	974.7		967.0
Machinery and equipment	2,508.2		2,469.7
Construction in progress	362.4		282.3
Gross Property, Plant, and Equipment	3,969.9		3,843.3
Accumulated depreciation	(1,954.7)		(1,841.8)
Total Property, Plant, and Equipment	2,015.2		2,001.5
Other Noncurrent Assets
Operating lease right-of-use assets	123.8		142.0
Goodwill	6,022.3		6,023.6
Other intangible assets – net	5,930.4		6,041.2
Other noncurrent assets	140.3		134.2
Total Other Noncurrent Assets	12,216.8		12,341.0
Total Assets	$	16,240.8	$	16,284.2
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	1,031.0	$	1,034.1
Accrued trade marketing and merchandising	209.8		200.6
Current portion of long-term debt	—		1,152.9
Short-term borrowings	320.0		82.0
Current operating lease liabilities	40.9		41.1
Other current liabilities	288.8		356.8
Total Current Liabilities	1,890.5		2,867.5
Noncurrent Liabilities
Long-term debt, less current portion	4,308.8		3,516.8
Deferred income taxes	1,351.6		1,349.3
Noncurrent operating lease liabilities	94.1		112.8
Other noncurrent liabilities	309.4		313.0
Total Noncurrent Liabilities	6,063.9		5,291.9
Total Liabilities	7,954.4		8,159.4
Shareholders’ Equity
Common shares	27.1		27.1
Additional capital	5,537.0		5,527.6
Retained income	2,992.8		2,847.5
Accumulated other comprehensive income (loss)	(270.5)		(277.4)
Total Shareholders’ Equity	8,286.4		8,124.8
Total Liabilities and Shareholders’ Equity	$	16,240.8	$	16,284.2

See notes to unaudited condensed consolidated financial statements.

3

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS

(Unaudited)

	Six Months Ended October 31,
Dollars in millions	2021		2020
Operating Activities
Net income	$	359.9	$	467.8
Adjustments to reconcile net income to net cash provided by (used for) operations:
Depreciation	119.0		108.2
Amortization	110.8		119.1
Pension settlement loss (gain)	6.2		30.6
Share-based compensation expense	10.6		13.4
Other noncash adjustments – net	6.5		7.3
Make-whole payments included in financing activities	7.0		—
Changes in assets and liabilities:
Trade receivables	(125.6)		(24.2)
Inventories	(140.8)		(97.5)
Other current assets	38.2		8.5
Accounts payable	(8.2)		107.5
Accrued liabilities	(53.3)		65.8
Income and other taxes	(18.0)		(24.1)
Other – net	(9.4)		5.3
Net Cash Provided by (Used for) Operating Activities	302.9		787.7
Investing Activities
Additions to property, plant, and equipment	(127.2)		(129.0)
Other – net	(15.8)		28.1
Net Cash Provided by (Used for) Investing Activities	(143.0)		(100.9)
Financing Activities
Short-term borrowings (repayments) – net	237.8		31.7
Proceeds from long-term debt	797.6		—
Repayments of long-term debt, including make-whole payments	(1,157.0)		(500.0)
Capitalized debt issuance costs	(10.2)		—
Quarterly dividends paid	(204.1)		(202.4)
Purchase of treasury shares	(7.5)		(6.2)
Proceeds from stock option exercises	4.0		0.7
Other – net	0.6		0.4
Net Cash Provided by (Used for) Financing Activities	(338.8)		(675.8)
Effect of exchange rate changes on cash	(0.1)		3.5
Net increase (decrease) in cash and cash equivalents	(179.0)		14.5
Cash and cash equivalents at beginning of period	334.3		391.1
Cash and Cash Equivalents at End of Period	$	155.3	$	405.6

( ) Denotes use of cash

See notes to unaudited condensed consolidated financial statements.

4

THE J. M. SMUCKER COMPANY

CONDENSED STATEMENTS OF CONSOLIDATED SHAREHOLDERS’ EQUITY

(Unaudited)

	Six Months Ended October 31, 2021
Dollars in millions	Common Shares Outstanding	Common Shares		Additional Capital		Retained Income		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at May 1, 2021	108,339,057	$	27.1	$	5,527.6	$	2,847.5	$	(277.4)	$	8,124.8
Net income						153.9				153.9
Other comprehensive income (loss)								(4.2)		(4.2)
Comprehensive income										149.7
Purchase of treasury shares	(50,203)	—		(6.1)		(0.7)				(6.8)
Stock plans	71,140	—		9.5						9.5
Cash dividends declared, $0.99 per common share						(106.9)				(106.9)
Balance at July 31, 2021	108,359,994	$	27.1	$	5,531.0	$	2,893.8	$	(281.6)	$	8,170.3
Net income						206.0				206.0
Other comprehensive income (loss)								11.1		11.1
Comprehensive income										217.1
Purchase of treasury shares	(5,676)	—		(0.6)		(0.1)				(0.7)
Stock plans	8,521	—		6.6						6.6
Cash dividends declared, $0.99 per common share						(106.9)				(106.9)
Balance at October 31, 2021	108,362,839	$	27.1	$	5,537.0	$	2,992.8	$	(270.5)	$	8,286.4

	Six Months Ended October 31, 2020
Dollars in millions	Common Shares Outstanding	Common Shares		Additional Capital		Retained Income		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at May 1, 2020	114,072,726	$	29.0	$	5,794.1	$	2,746.8	$	(379.0)	$	8,190.9
Net income						237.0				237.0
Other comprehensive income (loss)								18.1		18.1
Comprehensive income										255.1
Purchase of treasury shares	(42,194)	—		(5.5)		0.9				(4.6)
Stock plans	56,910	—		6.2						6.2
Cash dividends declared, $0.90 per common share						(102.4)				(102.4)
Other		(0.5)		0.5		—				—
Balance at July 31, 2020	114,087,442	$	28.5	$	5,795.3	$	2,882.3	$	(360.9)	$	8,345.2
Net income						230.8				230.8
Other comprehensive income (loss)								33.4		33.4
Comprehensive income										264.2
Purchase of treasury shares	(14,769)	—		(1.7)		0.1				(1.6)
Stock plans	24,588	—		9.5						9.5
Cash dividends declared, $0.90 per common share						(102.3)				(102.3)
Other						—				—
Balance at October 31, 2020	114,097,261	$	28.5	$	5,803.1	$	3,010.9	$	(327.5)	$	8,515.0

See notes to unaudited condensed consolidated financial statements.

5

THE J. M. SMUCKER COMPANY

NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Dollars and shares in millions, unless otherwise noted, except per share data)

Note 1: Basis of Presentation

The unaudited interim condensed consolidated financial statements of The J. M. Smucker Company (“Company,” “we,” “us,” or “our”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and notes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments of a normal recurring nature considered necessary for a fair presentation have been included.

Operating results for the six months ended October 31, 2021, are not necessarily indicative of the results that may be expected for the year ending April 30, 2022. For further information, reference is made to the consolidated financial statements and notes included in our Annual Report on Form 10-K for the year ended April 30, 2021.

Note 2: Recently Issued Accounting Standards

In November 2020, the U.S. Securities and Exchange Commission (the “SEC”) adopted the final rule under SEC Release No. 33-10890, Management’s Discussion and Analysis, Selected Financial Data, and Supplementary Financial Information, to modernize and simplify Management’s Discussion and Analysis and certain financial disclosure requirements. These updates are part of the SEC’s broader disclosure effectiveness initiative and reflect a principles-based, registrant-specific approach to disclosures, intended to improve the content and simplify compliance for registrants. During 2021, we early adopted certain updates to section 301, Selected Financial Data, and 302, Supplementary Financial Information. As required, we will complete the adoption of the remaining amendments during 2022 and do not anticipate that the adoption of these amendments will have a material impact on our financial statements and disclosures.

In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes, which removes certain exceptions for investments, intraperiod allocations and interim calculations, and adds guidance to reduce complexity in accounting for income taxes. ASU 2019-12 was effective for us on May 1, 2021. The accounting guidance for franchise taxes and foreign investments was adopted on a modified retrospective basis and all other applicable provisions were adopted on a prospective basis, as required by ASU 2019-12. The adoption of this ASU did not have a material impact on our financial statements and disclosures.

Note 3: Integration and Restructuring Costs

Integration and restructuring costs primarily consist of employee-related costs and other transition and termination costs related to certain divestiture, acquisition, integration, or restructuring activities. Employee-related costs include severance, retention bonuses, and relocation costs. Severance costs and retention bonuses are recognized over the estimated future service period of the impacted employees, and relocation costs are expensed as incurred. Other transition and termination costs include fixed asset-related charges, contract and lease termination costs, professional fees, and other miscellaneous expenditures associated with the integration or restructuring activities. With the exception of accelerated depreciation, these costs are expensed as incurred. These integration and restructuring costs are reported in costs of products sold and other special project costs in the Condensed Statements of Consolidated Income and are not allocated to segment profit. The obligation related to employee separation costs is included in other current liabilities in the Condensed Consolidated Balance Sheets.

Restructuring Costs: A restructuring program was approved by the Board of Directors (the “Board”) during 2021, associated with opportunities identified to reduce our overall cost structure and optimize our organizational design, inclusive of stranded overhead associated with the divestitures of the Crisco® and Natural Balance® businesses. For additional information related to these divestitures, see Note 4: Divestitures. During 2021, we substantially completed an organizational redesign related to our corporate headquarters and announced plans to close our Suffolk, Virginia, production facility by the end of 2022, as a result of a new strategic partnership for the production of our Away From Home liquid coffee products. We expect to incur costs of approximately $85.0 associated with the restructuring activities approved to date. Approximately half of these costs are expected to be other transition and termination costs associated with our cost reduction and margin management initiatives, inclusive of accelerated depreciation, while the remainder represents employee-related costs. We anticipate the activities associated with this restructuring program will be completed by the end of 2023, with the majority of the costs expected to be incurred by the end of 2022.

6

The following table summarizes our restructuring costs incurred related to the restructuring program.

	Three Months Ended October 31, 2021		Six Months Ended October 31, 2021		Total Costs Incurred to Date at October 31, 2021
Employee-related costs	$	1.1	$	2.4	$	19.7
Other transition and termination costs	6.3		11.4		18.2
Total restructuring costs	$	7.4	$	13.8	$	37.9

The obligation related to severance costs and retention bonuses was $3.0 and $14.6 at October 31, 2021 and April 30, 2021, respectively. As of October 31, 2021, cumulative noncash charges incurred to date were $13.6, including $5.9 and $9.2 incurred during the three and six months ended October 31, 2021, respectively, and primarily consisted of accelerated depreciation. We did not incur any costs related to restructuring during the three and six months ended October 31, 2020.

Note 4: Divestitures

On December 1, 2020, we sold the Crisco oils and shortening business to B&G Foods, Inc. (“B&G Foods”). The transaction included oils and shortening products sold under the Crisco brand, primarily in the U.S. and Canada, certain trademarks and licensing agreements, dedicated manufacturing and warehouse facilities located in Cincinnati, Ohio, and approximately 160 employees who supported the Crisco business. Under our ownership, the business generated net sales of $198.9 in 2021, primarily included in the U.S. Retail Consumer Foods segment. We received net proceeds from the divestiture of $530.2, which were net of cash transaction costs and a working capital adjustment.

On January 29, 2021, we sold the Natural Balance premium pet food business to Nexus Capital Management LP (“Nexus”). The transaction included pet food products sold under the Natural Balance brand, certain trademarks and licensing agreements, and select employees who supported the Natural Balance business. Under our ownership, the business generated net sales of $156.7 in 2021, included in the U.S. Retail Pet Foods segment. We received net proceeds from the divestiture of $33.8, which were net of cash transaction costs and a working capital adjustment.

Upon completion of these transactions during the second half of 2021, we recognized a pre-tax gain of $114.8 related to the Crisco business and a pre-tax loss of $89.5 related to the Natural Balance business.

Note 5: Reportable Segments

We operate in one industry: the manufacturing and marketing of food and beverage products. We have three reportable segments: U.S. Retail Pet Foods, U.S. Retail Coffee, and U.S. Retail Consumer Foods. The presentation of International and Away From Home represents a combination of all other operating segments that are not individually reportable.

The U.S. Retail Pet Foods segment primarily includes the domestic sales of Rachael Ray® Nutrish®, Meow Mix®, Milk-Bone®, 9Lives®, Kibbles ’n Bits®, Pup-Peroni®, and Nature’s Recipe® branded products; the U.S. Retail Coffee segment primarily includes the domestic sales of Folgers®, Dunkin’®, and Café Bustelo® branded coffee; and the U.S. Retail Consumer Foods segment primarily includes the domestic sales of Smucker’s® and Jif® branded products. International and Away From Home includes the sale of products distributed domestically and in foreign countries through retail channels and foodservice distributors and operators (e.g., health care operators, restaurants, lodging, hospitality, offices, K-12, colleges and universities, and convenience stores).

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 amortization expense and impairment charges related to intangible assets, gains and losses related to the sale of a business, the net change in cumulative unallocated gains and losses on commodity and foreign currency exchange derivative activities (“change in net cumulative unallocated derivative gains and losses”), divestiture, acquisition, integration, and restructuring costs (“special project costs”), as well as corporate administrative expenses.

7

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.

The following table reconciles segment profit to income before income taxes.

	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Net sales:
U.S. Retail Pet Foods	$	701.6	$	708.7	$	1,349.6	$	1,401.3
U.S. Retail Coffee	645.1		594.7		1,188.3		1,165.6
U.S. Retail Consumer Foods	441.2		479.1		876.8		968.3
International and Away From Home	262.1		251.5		493.3		470.6
Total net sales	$	2,050.0	$	2,034.0	$	3,908.0	$	4,005.8
Segment profit:
U.S. Retail Pet Foods	$	99.6	$	124.9	$	179.5	$	250.2
U.S. Retail Coffee	207.8		202.1		359.1		384.7
U.S. Retail Consumer Foods	111.0		135.3		229.7		266.8
International and Away From Home	40.4		39.5		73.3		70.4
Total segment profit	$	458.8	$	501.8	$	841.6	$	972.1
Amortization	(55.4)		(59.5)		(110.8)		(119.1)
Interest expense – net	(40.3)		(45.1)		(83.4)		(91.2)
Change in net cumulative unallocated derivative gains and losses	(13.3)		31.5		(15.5)		47.7
Cost of products sold – special project costs (A)	(6.1)		—		(10.7)		—
Other special project costs (A)	(1.3)		—		(3.1)		—
Corporate administrative expenses	(70.9)		(93.0)		(130.3)		(158.8)
Other income (expense) – net	(2.7)		(32.2)		(13.8)		(33.6)
Income before income taxes	$	268.8	$	303.5	$	474.0	$	617.1

(A)Special project costs include divestiture, acquisition, integration, and restructuring costs, which are recognized in cost of products sold and other special project costs in the Condensed Statements of Consolidated Income. For more information, see Note 3: Integration and Restructuring Costs.

The following table presents certain geographical information.

	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Net sales:
United States	$	1,919.2	$	1,882.2	$	3,652.4	$	3,711.9
International:
Canada	$	112.5	$	123.2	$	214.6	$	231.4
All other international	18.3		28.6		41.0		62.5
Total international	$	130.8	$	151.8	$	255.6	$	293.9
Total net sales	$	2,050.0	$	2,034.0	$	3,908.0	$	4,005.8

8

The following table presents product category information.

	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020		Primary Reportable Segment (A)
Coffee	$	718.5	$	659.6	$	1,331.6	$	1,295.3	U.S. Retail Coffee
Dog food	248.5		277.8		476.8		555.5		U.S. Retail Pet Foods
Cat food	242.8		231.9		463.8		451.9		U.S. Retail Pet Foods
Pet snacks	229.8		216.7		445.6		429.5		U.S. Retail Pet Foods
Peanut butter	200.8		192.8		412.1		392.7		U.S. Retail Consumer Foods
Frozen handheld	139.1		106.3		260.7		201.8		U.S. Retail Consumer Foods
Fruit spreads	89.9		89.2		180.7		193.5		U.S. Retail Consumer Foods
Portion control	40.8		31.1		75.2		55.1		Other (B)
Juices and beverages	36.5		36.7		69.7		70.3		U.S. Retail Consumer Foods
Baking mixes and ingredients	25.5		30.0		37.9		53.2		Other (B)
Shortening and oils	—		82.7		—		160.0		U.S. Retail Consumer Foods (C)
Other	77.8		79.2		153.9		147.0		Other (B)
Total net sales	$	2,050.0	$	2,034.0	$	3,908.0	$	4,005.8

(A)The primary reportable segment generally represents at least 75 percent of total net sales for each respective product category.

(B)Represents the International and Away From Home operating segments, which are combined for segment reporting purposes.

(C)During 2021, the net sales within this category were related to the divested Crisco business. For more information, see Note 4: Divestitures.

Note 6: Earnings per Share

The following table sets forth the computation of net income per common share and net income per common share – assuming dilution under the two-class method.

	Three Months Ended October 31,				Six Months Ended October 31,
	2021		2020		2021		2020
Net income	$	206.0	$	230.8	$	359.9	$	467.8
Less: Net income allocated to participating securities	0.6		0.9		1.1		2.0
Net income allocated to common stockholders	$	205.4	$	229.9	$	358.8	$	465.8
Weighted-average common shares outstanding	108.1		113.7		108.0		113.6
Add: Dilutive effect of stock options	—		—		0.1		—
Weighted-average common shares outstanding – assuming dilution	108.1		113.7		108.1		113.6
Net income per common share	$	1.90	$	2.02	$	3.32	$	4.10
Net income per common share – assuming dilution	$	1.90	$	2.02	$	3.32	$	4.10

9

Note 7: Debt and Financing Arrangements

The following table summarizes the components of our long-term debt.

	October 31, 2021				April 30, 2021
	Principal Outstanding		Carrying Amount (A)		Principal Outstanding		Carrying Amount (A)
3.50% Senior Notes due October 15, 2021	$	—	$	—	$	750.0	$	753.5
3.00% Senior Notes due March 15, 2022	—		—		400.0		399.4
3.50% Senior Notes due March 15, 2025	1,000.0		997.2		1,000.0		996.8