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, 2022

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 106,639,011 common shares outstanding on November 14, 2022.

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	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	31
PART II. OTHER INFORMATION
Item 1.	Legal Proceedings	32
Item 1A.	Risk Factors	32
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 6.	Exhibits	32
SIGNATURES		33
INDEX OF EXHIBITS		34

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	2022		2021		2022		2021
Net sales	$	2,205.1	$	2,050.0	$	4,078.1	$	3,908.0
Cost of products sold (A)	1,504.0		1,338.5		2,824.5		2,557.1
Gross Profit	701.1		711.5		1,253.6		1,350.9
Selling, distribution, and administrative expenses	354.3		347.7		698.1		671.7
Amortization	55.6		55.4		111.2		110.8
Other special project costs (A)	0.7		1.3		2.1		3.1
Other operating expense (income) – net	(2.9)		(4.7)		(30.9)		(5.9)
Operating Income	293.4		311.8		473.1		571.2
Interest expense – net	(39.7)		(40.3)		(78.8)		(83.4)
Other income (expense) – net	(0.8)		(2.7)		(0.3)		(13.8)
Income Before Income Taxes	252.9		268.8		394.0		474.0
Income tax expense	61.8		62.8		93.1		114.1
Net Income	$	191.1	$	206.0	$	300.9	$	359.9
Earnings per common share:
Net Income	$	1.79	$	1.90	$	2.82	$	3.32
Net Income – Assuming Dilution	$	1.79	$	1.90	$	2.82	$	3.32

(A) Special project costs include certain restructuring costs, which are recognized in cost of products sold and other special project costs. For more information, see Note 3: 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	2022		2021		2022		2021
Net income	$	191.1	$	206.0	$	300.9	$	359.9
Other comprehensive income (loss):
Foreign currency translation adjustments	(16.4)		2.0		(15.0)		(2.0)
Cash flow hedging derivative activity, net of tax	2.6		2.7		5.1		5.0
Pension and other postretirement benefit plans activity, net of tax	0.5		6.5		0.9		3.9
Available-for-sale securities activity, net of tax	(0.6)		(0.1)		(0.9)		—
Total Other Comprehensive Income (Loss)	(13.9)		11.1		(9.9)		6.9
Comprehensive Income	$	177.2	$	217.1	$	291.0	$	366.8

See notes to unaudited condensed consolidated financial statements.

2

THE J. M. SMUCKER COMPANY

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

Dollars in millions	October 31, 2022		April 30, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	27.1	$	169.9
Trade receivables – net	609.5		524.7
Inventories:
Finished products	845.0		704.4
Raw materials	513.4		384.9
Total Inventory	1,358.4		1,089.3
Other current assets	255.9		226.2
Total Current Assets	2,250.9		2,010.1
Property, Plant, and Equipment
Land and land improvements	131.3		120.4
Buildings and fixtures	1,043.3		959.7
Machinery and equipment	2,635.6		2,503.3
Construction in progress	409.2		527.8
Gross Property, Plant, and Equipment	4,219.4		4,111.2
Accumulated depreciation	(2,020.8)		(1,979.5)
Total Property, Plant, and Equipment	2,198.6		2,131.7
Other Noncurrent Assets
Operating lease right-of-use assets	86.7		106.5
Goodwill	6,006.3		6,015.8
Other intangible assets – net	5,538.6		5,652.2
Other noncurrent assets	138.2		138.7
Total Other Noncurrent Assets	11,769.8		11,913.2
Total Assets	$	16,219.3	$	16,055.0
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current Liabilities
Accounts payable	$	1,260.6	$	1,193.3
Accrued trade marketing and merchandising	192.6		193.8
Short-term borrowings	302.0		180.0
Current operating lease liabilities	36.1		40.1
Other current liabilities	268.4		345.6
Total Current Liabilities	2,059.7		1,952.8
Noncurrent Liabilities
Long-term debt	4,312.4		4,310.6
Deferred income taxes	1,326.8		1,325.8
Noncurrent operating lease liabilities	59.4		76.2
Other noncurrent liabilities	243.7		249.5
Total Noncurrent Liabilities	5,942.3		5,962.1
Total Liabilities	8,002.0		7,914.9
Shareholders’ Equity
Common shares	26.6		26.6
Additional capital	5,462.0		5,457.9
Retained income	2,976.0		2,893.0
Accumulated other comprehensive income (loss)	(247.3)		(237.4)
Total Shareholders’ Equity	8,217.3		8,140.1
Total Liabilities and Shareholders’ Equity	$	16,219.3	$	16,055.0

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	2022		2021
Operating Activities
Net income	$	300.9	$	359.9
Adjustments to reconcile net income to net cash provided by (used for) operations:
Depreciation	112.2		119.0
Amortization	111.2		110.8
Share-based compensation expense	5.3		10.6
Gain on divestiture	(1.6)		—
Other noncash adjustments – net	12.3		6.5
Make-whole payments included in financing activities	—		7.0
Defined benefit pension contributions	(71.8)		(2.9)
Changes in assets and liabilities:
Trade receivables	(87.1)		(125.6)
Inventories	(273.8)		(140.8)
Other current assets	19.1		38.2
Accounts payable	77.5		(8.2)
Accrued liabilities	20.8		(53.3)
Income and other taxes	(56.3)		(18.0)
Other – net	(2.7)		(0.3)
Net Cash Provided by (Used for) Operating Activities	166.0		302.9
Investing Activities
Additions to property, plant, and equipment	(190.4)		(127.2)
Proceeds from divestiture	1.6		—
Other – net	(20.5)		(15.8)
Net Cash Provided by (Used for) Investing Activities	(209.3)		(143.0)
Financing Activities
Short-term borrowings (repayments) – net	118.2		237.8
Proceeds from long-term debt	—		797.6
Repayments of long-term debt, including make-whole payments	—		(1,157.0)
Capitalized debt issuance costs	—		(10.2)
Quarterly dividends paid	(213.5)		(204.1)
Purchase of treasury shares	(7.9)		(7.5)
Proceeds from stock option exercises	6.1		4.0
Other – net	(1.7)		0.6
Net Cash Provided by (Used for) Financing Activities	(98.8)		(338.8)
Effect of exchange rate changes on cash	(0.7)		(0.1)
Net increase (decrease) in cash and cash equivalents	(142.8)		(179.0)
Cash and cash equivalents at beginning of period	169.9		334.3
Cash and Cash Equivalents at End of Period	$	27.1	$	155.3

( ) 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, 2022
Dollars in millions	Common Shares Outstanding	Common Shares		Additional Capital		Retained Income		Accumulated Other Comprehensive Income (Loss)		Total Shareholders’ Equity
Balance at May 1, 2022	106,458,317	$	26.6	$	5,457.9	$	2,893.0	$	(237.4)	$	8,140.1
Net income						109.8				109.8
Other comprehensive income (loss)								4.0		4.0
Comprehensive income										113.8
Purchase of treasury shares	(61,693)	—		(6.7)		(1.1)				(7.8)
Stock plans	162,735	—		6.5		—				6.5
Cash dividends declared, $1.02 per common share						(108.3)				(108.3)
Balance at July 31, 2022	106,559,359	$	26.6	$	5,457.7	$	2,893.4	$	(233.4)	$	8,144.3
Net income						191.1				191.1
Other comprehensive income (loss)								(13.9)		(13.9)
Comprehensive income										177.2
Purchase of treasury shares	(580)	—		(0.1)		—				(0.1)
Stock plans	67,757	—		4.4		—				4.4
Cash dividends declared, $1.02 per common share						(108.5)				(108.5)
Balance at October 31, 2022	106,626,536	$	26.6	$	5,462.0	$	2,976.0	$	(247.3)	$	8,217.3

	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

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, 2022, are not necessarily indicative of the results that may be expected for the year ending April 30, 2023. 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, 2022.

Note 2: Recently Issued Accounting Standards

In March 2022, the U.S. Securities and Exchange Commission (the “SEC”) issued the proposed rule under SEC Release No. 33-11042, The Enhancement and Standardization of Climate-Related Disclosures for Investors, to enhance and standardize the climate-related disclosures provided by public companies. This update will require the disclosure of greenhouse gas emissions, including Scope 1 and Scope 2 emissions, which will be subject to third-party assurance, as well as climate-related targets and goals, and how the Board of Directors (the “Board”) and management oversee climate-related risks. As of October 31, 2022, these amendments were not adopted by the SEC; however, we anticipate that the adoption of these amendments will have a material impact on our financial statements and disclosures.

Note 3: Restructuring Costs

Restructuring costs primarily consist of employee-related costs and other transition and termination costs related to approved 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 restructuring activities. With the exception of accelerated depreciation, these costs are expensed as incurred. These restructuring costs are reported in cost 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.

A restructuring program was approved by the Board during 2021, associated with opportunities identified to reduce our overall cost structure, optimize our organizational design, and support our portfolio reshape. This is inclusive of certain restructuring costs associated with the divestitures of the Crisco®, Natural Balance®, private label dry pet food, and natural beverage and grains businesses. For additional information, 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, facility as a result of a new strategic partnership for the production of our liquid coffee products. During 2022, we completed the transition of production to JDE Peet’s N.V., as anticipated. Furthermore, the restructuring program was expanded during the third quarter of 2022 to include certain costs associated with the recent divestitures of the private label dry pet food and natural beverage and grains businesses, as well as the closure of our Ripon, Wisconsin, production facility by the end of calendar year 2022 to further optimize operations for our U.S. Retail Consumer Foods business. We expect to incur costs of approximately $70.0 associated with the restructuring activities planned to date. More than 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 planned activities associated with this restructuring program will be completed by the end of 2023.

6

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

	Three Months Ended October 31,				Six Months Ended October 31,				Total Costs Incurred to Date at October 31, 2022
	2022		2021		2022		2021
Employee-related costs	$	0.7	$	1.1	$	1.8	$	2.4	$	25.4
Other transition and termination costs	2.8		6.3		4.2		11.4		33.2
Total restructuring costs	$	3.5	$	7.4	$	6.0	$	13.8	$	58.6

The obligation related to severance costs and retention bonuses was $2.7 and $2.4 at October 31, 2022, and April 30, 2022, respectively. Noncash charges of $2.2 and $5.9 were included in the restructuring costs during the three months ended October 31, 2022 and 2021, respectively, and $7.0 and $9.2 during the six months ended October 31, 2022 and 2021, respectively. As of October 31, 2022, cumulative noncash charges incurred to date were $30.0 and primarily consisted of accelerated depreciation.

Note 4: Divestitures

On January 31, 2022, we sold the natural beverage and grains businesses to Nexus Capital Management LP (“Nexus”). The transaction included products sold under the R.W. Knudsen® and TruRoots® brands, inclusive of certain trademarks, a licensing agreement for Santa Cruz Organic® beverages, dedicated manufacturing and distribution facilities in Chico, California, and Havre de Grace, Maryland, and approximately 150 employees who supported the natural beverage and grains businesses. The transaction did not include Santa Cruz Organic nut butters, fruit spreads, syrups, or applesauce. Under our ownership, the businesses generated net sales of $106.7 in 2022, primarily included in the U.S. Retail Consumer Foods segment. Final net proceeds from the divestiture were $98.7, which were inclusive of a working capital adjustment and net of cash transaction costs. We recognized a pre-tax gain of $28.3 related to the natural beverage and grains businesses, including $1.6 during the first quarter of 2023, within other operating expense (income) – net in the Condensed Statement of Consolidated Income, upon finalization of the working capital adjustment. The remaining pre-tax gain was recognized during the second half of 2022.

On December 1, 2021, we sold the private label dry pet food business to Diamond Pet Foods, Inc. (“Diamond Pet Foods”). The transaction included dry pet food products sold under private label brands, a dedicated manufacturing facility located in Frontenac, Kansas, and approximately 220 employees who supported the private label dry pet food business. The transaction did not include any branded products or our private label wet pet food business. Under our ownership, the business generated net sales of $62.3 in 2022, included in the U.S. Retail Pet Foods segment. Final net proceeds from the divestiture were $32.9, which were net of cash transaction costs. Upon completion of this transaction during the third quarter of 2022, we recognized a pre-tax loss of $17.1.

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 on divestitures, 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”), certain 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,
	2022		2021		2022		2021
Net sales:
U.S. Retail Pet Foods	$	765.2	$	701.6	$	1,494.2	$	1,349.6
U.S. Retail Coffee	709.8		645.1		1,307.7		1,188.3
U.S. Retail Consumer Foods	432.2		441.2		743.3		876.8
International and Away From Home	297.9		262.1		532.9		493.3
Total net sales	$	2,205.1	$	2,050.0	$	4,078.1	$	3,908.0
Segment profit:
U.S. Retail Pet Foods	$	120.1	$	99.6	$	240.4	$	179.5
U.S. Retail Coffee	187.7		207.8		333.6		359.1
U.S. Retail Consumer Foods	100.3		111.0		155.1		229.7
International and Away From Home	41.5		40.4		58.1		73.3
Total segment profit	$	449.6	$	458.8	$	787.2	$	841.6
Amortization	(55.6)		(55.4)		(111.2)		(110.8)
Gain on divestiture	—		—		1.6		—
Interest expense – net	(39.7)		(40.3)		(78.8)		(83.4)
Change in net cumulative unallocated derivative gains and losses	(27.1)		(13.3)		(60.9)		(15.5)
Cost of products sold – special project costs (A)	(2.8)		(6.1)		(3.9)		(10.7)
Other special project costs (A)	(0.7)		(1.3)		(2.1)		(3.1)
Corporate administrative expenses	(70.0)		(70.9)		(137.6)		(130.3)
Other income (expense) – net	(0.8)		(2.7)		(0.3)		(13.8)
Income before income taxes	$	252.9	$	268.8	$	394.0	$	474.0

(A)Special project costs include certain 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: Restructuring Costs.

The following table presents certain geographical information.

	Three Months Ended October 31,				Six Months Ended October 31,
	2022		2021		2022		2021
Net sales:
United States	$	2,062.1	$	1,919.2	$	3,822.0	$	3,652.4
International:
Canada	$	119.2	$	112.5	$	213.0	$	214.6
All other international	23.8		18.3		43.1		41.0
Total international	$	143.0	$	130.8	$	256.1	$	255.6
Total net sales	$	2,205.1	$	2,050.0	$	4,078.1	$	3,908.0

8

The following table presents product category information.

	Three Months Ended October 31,				Six Months Ended October 31,
	2022		2021		2022		2021		Primary Reportable Segment (A)
Coffee	$	799.6	$	718.5	$	1,479.5	$	1,331.6	U.S. Retail Coffee
Cat food	284.7		242.8		550.1		463.8		U.S. Retail Pet Foods
Pet snacks	260.2		229.8		504.4		445.6		U.S. Retail Pet Foods
Dog food	246.3		248.5		488.0		476.8		U.S. Retail Pet Foods
Frozen handheld	168.3		139.1		328.8		260.7		U.S. Retail Consumer Foods
Peanut butter	192.9		200.8		253.5		412.1		U.S. Retail Consumer Foods
Fruit spreads	103.7		89.9		203.8		180.7		U.S. Retail Consumer Foods
Portion control	43.5		40.8		71.3		75.2		Other (B)
Baking mixes and ingredients	28.8		25.5		45.1		37.9		Other (B)
Juices and beverages	0.8		36.5		1.6		69.7		Other (B)(C)
Other	76.3		77.8		152.0		153.9		Other (B)
Total net sales	$	2,205.1	$	2,050.0	$	4,078.1	$	3,908.0

(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 the three and six months ended October 31, 2021, the net sales within this category were primarily related to the divested natural beverage business included in the U.S. Retail Consumer Foods segment. For more information, see Note 4: Divestitures.

Note 6: Earnings per Share

We computed net income per common share (“basic earnings per share”) under the two-class method for the three and six months ended October 31, 2022 and 2021, due to certain unvested common shares that contained non-forfeitable rights to dividends (i.e., participating securities) during these periods. For the three and six months ended October 31, 2022, the computation of net income per common share – assuming dilution (“diluted earnings per share”) was more dilutive under the treasury stock method, as compared to the two-class method; therefore, the treasury stock method was used in accordance with FASB ASC 260, Earnings Per Share. Diluted earnings per share for the three and six months ended October 31, 2021, was computed under the two-class method.

The following table sets forth the computation of basic earnings per share and diluted earnings per share under the two-class method.

	Three Months Ended October 31,				Six Months Ended October 31,
	2022		2021		2022		2021
Net income	$	191.1	$	206.0	$	300.9	$	359.9
Less: Net income allocated to participating securities	0.3		0.6		0.5		1.1
Net income allocated to common stockholders	$	190.8	$	205.4	$	300.4	$	358.8
Weighted-average common shares outstanding	106.5		108.1		106.4		108.0
Add: Dilutive effect of stock options	—		—		0.1		0.1
Weighted-average common shares outstanding – assuming dilution	106.5		108.1		106.5		108.1
Net income per common share	$	1.79	$	1.90	$	2.82	$	3.32
Net income per common share – assuming dilution	$	1.79	$	1.90	$	2.82	$	3.32

9

The following table sets forth the computation of diluted earnings per share under the treasury stock method.

	Three Months Ended October 31, 2022		Six Months Ended October 31, 2022
Net income	$	191.1	$	300.9
Weighted-average common shares outstanding – assuming dilution:
Weighted-average common shares outstanding	106.5		106.4
Add: Dilutive effect of stock options	—		0.1
Add: Dilutive effect of restricted shares, restricted stock units, and performance units	0.4		0.3
Weighted-average common shares outstanding – assuming dilution	106.9		106.8
Net income per common share – assuming dilution	$	1.79