Other Financial Instruments and Fair Value Measurements (Tables)

3 Months Ended

Jul. 31, 2023

Fair Value Disclosures [Abstract]

Carrying amount and fair value of financial instruments

The following table provides information on the carrying amounts and fair values of our financial instruments.

	July 31, 2023				April 30, 2023
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Marketable securities and other investments	$	23.8	$	23.8	$	24.0	$	24.0
Derivative financial instruments – net	(0.9)		(0.9)		4.7		4.7
Investment in equity securities	459.8		459.8		487.8		487.8
Total long-term debt	(4,315.1)		(3,752.6)		(4,314.2)		(3,879.1)

Financial assets (liabilities) measured at fair value on a recurring basis

The following tables summarize the fair values and the levels within the fair value hierarchy in which the fair value measurements fall for our financial instruments.

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at July 31, 2023
Marketable securities and other investments: (A)
Equity mutual funds	$	5.4	$	—	$	—	$	5.4
Municipal obligations	—		18.2		—		18.2
Money market funds	0.2		—		—		0.2
Derivative financial instruments: (B)
Commodity contracts – net	(0.5)		0.3		—		(0.2)
Foreign currency exchange contracts – net	0.2		(1.5)		—		(1.3)
Equity forward contract – net	—		0.6		—		0.6
Investment in equity securities (C)	459.8		—		—		459.8
Total long-term debt (D)	(3,752.6)		—		—		(3,752.6)
Total financial instruments measured at fair value	$	(3,287.5)	$	17.6	$	—	$	(3,269.9)

	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Fair Value at April 30, 2023
Marketable securities and other investments: (A)
Equity mutual funds	$	5.0	$	—	$	—	$	5.0
Municipal obligations	—		18.6		—		18.6
Money market funds	0.4		—		—		0.4
Derivative financial instruments: (B)
Commodity contracts – net	2.7		0.7		—		3.4
Foreign currency exchange contracts – net	0.2		1.1		—		1.3
Investment in equity securities (C)	487.8		—		—		487.8
Total long-term debt (D)	(3,879.1)		—		—		(3,879.1)
Total financial instruments measured at fair value	$	(3,383.0)	$	20.4	$	—	$	(3,362.6)

(A)Marketable securities and other investments consists of funds maintained for the payment of benefits associated with nonqualified retirement plans. The funds include equity securities listed in active markets, municipal obligations valued by a third-party using

valuation techniques that utilize inputs that are derived principally from or corroborated by observable market data, and money market funds with maturities of three months or less. Based on the short-term nature of these money market funds, carrying value approximates fair value. As of July 31, 2023, our municipal obligations are scheduled to mature as follows: $1.4 in 2024, $1.3 in 2025, $0.8 in 2026, $4.9 in 2027, $0.4 in 2028, and the remaining $9.4 in 2029 and beyond.

(B)Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity, foreign currency exchange, and equity forward derivatives are valued using quoted prices for similar assets or liabilities in active markets. The unrealized pre-tax gain on the equity forward derivative was included in other income (expense) – net in the Condensed Statement of Consolidated Income. For additional information, see Note 9: Derivative Financial Instruments.

(C)The market approach is utilized to measure the fair value of equity securities. The investment in equity securities represents our equity interest in Post of approximately 8 percent as of July 31, 2023, which is valued using the trading value of Post common stock. In the first quarter of 2024, we recognized an unrealized pre-tax loss of $28.0 on the investment, which was included in other income (expense) – net in the Condensed Statement of Consolidated Income. For additional information, see Note 4: Divestitures.

(D)Long-term debt is composed of public Senior Notes, which are traded in an active secondary market and valued using quoted prices. For additional information, see Note 7: Debt and Financing Arrangements.