Other Financial Instruments and Fair Value Measurements

12 Months Ended

Apr. 30, 2025

Fair Value Disclosures [Abstract]

Other Financial Instruments and Fair Value Measurements

Note 11: Other Financial Instruments and Fair Value Measurements

Financial instruments, other than derivatives, that potentially subject us to significant concentrations of credit risk consist principally of cash investments, short-term borrowings, and trade receivables. The carrying value of these financial instruments approximates fair value. Our remaining financial instruments, with the exception of long-term debt, are recognized at estimated fair value in the Consolidated Balance Sheets.

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

	April 30, 2025				April 30, 2024
	Carrying Amount		Fair Value		Carrying Amount		Fair Value
Marketable securities and other investments	$	20.0	$	20.0	$	22.1	$	22.1
Derivative financial instruments – net	62.1		62.1		28.2		28.2
Total long-term debt	(7,036.8)		(7,242.0)		(7,773.0)		(7,652.9)

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques are based on observable and unobservable inputs.

Observable inputs reflect readily obtainable data from independent sources, while unobservable inputs reflect our market assumptions.

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  April 30, 2025
Marketable securities and other investments: (A)
Equity mutual funds	$	4.0	$	—	$	—	$	4.0
Municipal obligations	—		15.8		—		15.8
Money market funds	0.2		—		—		0.2
Derivative financial instruments: (B)
Commodity contracts – net	62.8		—		—		62.8
Foreign currency exchange contracts – net	—		(0.7)		—		(0.7)
Total long-term debt (C)	(6,532.5)		(709.5)		—		(7,242.0)
Total financial instruments measured at fair value	$	(6,465.5)	$	(694.4)	$	—	$	(7,159.9)

	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, 2024
Marketable securities and other investments: (A)
Equity mutual funds	$	4.5	$	—	$	—	$	4.5
Municipal obligations	—		17.2		—		17.2
Money market funds	0.4		—		—		0.4
Derivative financial instruments: (B)
Commodity contracts – net	26.7		(0.3)		—		26.4
Foreign currency exchange contracts – net	0.5		1.3		—		1.8
Total long-term debt (C)	(7,652.9)		—		—		(7,652.9)
Total financial instruments measured at fair value	$	(7,620.8)	$	18.2	$	—	$	(7,602.6)

(A)Marketable securities and other investments consist 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 April 30, 2025, our municipal obligations are scheduled to mature as follows: $0.9 in 2026, $3.9 in 2027, $0.4 in 2028, $3.3 in 2029, $0.9 in 2030, and the remaining $6.4 in 2031 and beyond. For additional information, see Marketable Securities and Other Investments in Note 1: Accounting Policies.

(B)Level 1 commodity and foreign currency exchange derivatives are valued using quoted market prices for identical instruments in active markets. Level 2 commodity and foreign currency exchange derivatives are valued using quoted prices for similar assets or liabilities in active markets. For additional information, see Note 10: Derivative Financial Instruments.

(C)Long-term debt is composed of public Senior Notes classified as Level 1 and the Term Loan classified as Level 2. The public Senior Notes are traded in an active secondary market and valued using quoted prices. The fair value of the Term Loan is based on the net present value of each interest and principal payment calculated utilizing an interest rate derived from an estimated yield curve obtained from independent pricing sources for similar types of term loan borrowing arrangements. For additional information, see Note 8: Debt and Financing Arrangements.

We acquired Hostess Brands on November 7, 2023, and as a result, the underlying assets acquired and liabilities assumed were adjusted to their estimated fair values at the date of acquisition, which was determined based on independent appraisals, discounted cash flow analyses, quoted market prices, and estimates made by management. During 2025, we recognized nonrecurring fair value adjustments of $1,982.5, of which $1,661.6 and $320.9 related to the goodwill of the Sweet Baked Snacks reporting unit and the Hostess brand indefinite-lived trademark, respectively. These adjustments were included as noncash charges in our Statement of Consolidated Income (Loss). We utilized Level 3 inputs based on management’s best estimates and assumptions to estimate the fair value of the reporting unit and the indefinite-lived trademark as of the date of each test for impairment. For additional information, see Note 7: Goodwill and Other Intangible Assets.

During 2025, we recognized losses in our Statement of Consolidated Income (Loss) related to the divested Voortman business and certain Sweet Baked Snacks value brands. The pre-tax losses for the divested Voortman business and certain Sweet Baked Snacks value brands included the impact of an allocation of $251.1 and $26.6 of goodwill, respectively, from the Sweet Baked Snacks segment, which were determined based on relative fair value analyses. The noncash impact of the goodwill disposed was included in the pre-tax loss on the divestitures in our Statement of Consolidated Income (Loss).

During 2024, we recognized a loss on divestiture in our Statement of Consolidated Income (Loss) related to the divestiture of Sahale Snacks. The pre-tax loss for the divested Sahale Snacks business included the impact of an allocation of $11.5 of goodwill, primarily in the U.S. Retail Frozen Handheld and Spreads segment, which was determined based on a relative fair value analysis. The noncash impact of the goodwill disposed was included in the pre-tax loss on the divestiture in our Statement of Consolidated Income (Loss).

During 2023, we recognized a loss on divestiture in our Statement of Consolidated Income (Loss) related to the divestiture of certain pet food brands. The loss on divestiture included the impact of an allocation of $790.3 of goodwill, primarily in the U.S. Retail Pet Foods segment, which was determined based on a relative fair value analysis. The noncash impact of the goodwill disposed was included in the pre-tax loss on the divestiture in our Statement of Consolidated Income (Loss).

For additional information, see Note 2: Acquisition, Note 3: Divestitures, and Note 7: Goodwill and Other Intangible Assets.