Net Sales (Tables)

3 Months Ended

Jul. 31, 2018

Net Sales [Abstract]

Impact of Adopting ASC 606 [Table Text Block]

The following table shows how the adoption of ASC 606 impacted our consolidated statement of operations for the three months ended July 31, 2018:

	Three Months Ended July 31, 2018
	Under Prior			As Reported Under			Effect of
(Dollars in millions, except per share amounts)	Guidance			ASC 606			Adoption
Sales	$	997		$	987		$	(10	)
Excise taxes	221			221			—
Net sales	776			766			(10		)
Cost of sales	243			243			—
Gross profit	533			523			(10		)
Advertising expenses	101			98			(3		)
Selling, general, and administrative expenses	169			168			(1		)
Other expense (income), net	(7		)	(7		)	—
Operating income	270			264			(6		)
Non-operating postretirement expense	2			2			—
Interest income	(2		)	(2		)	—
Interest expense	22			22			—
Income before income taxes	248			242			(6		)
Income taxes	44			42			(2		)
Net income	$	204		$	200		$	(4	)
Earnings per share:
Basic	$	0.43		$	0.42		$	(0.01	)
Diluted	$	0.42		$	0.41		$	(0.01	)

The following table shows how the adoption of ASC 606 impacted our consolidated balance sheet as of July 31, 2018:

	As of July 31, 2018
	Under Prior		As Reported Under		Effect of
(Dollars in millions)	Guidance		ASC 606		Adoption
Assets
Other current assets	$	307	$	305	$	(2	)
Deferred tax assets	15		16		1
Total assets	5,026		5,025		(1		)
Liabilities
Accounts payable and accrued expenses	$	527	$	564	$	37
Accrued income taxes	53		52		(1		)
Deferred tax liabilities	127		119		(8		)
Total liabilities	3,629		3,657		28
Stockholders’ Equity
Retained earnings	$	1,796	$	1,767	$	(29	)
Total stockholders’ equity	1,397		1,368		(29		)

Disaggregation of Revenue [Table Text Block]

The following table shows our net sales by geography:

	Three Months Ended
	July 31,
(Dollars in millions, except per share amounts)	2017		2018
United States	$	355	$	357
Developed International1	193		215
Emerging2	123		131
Travel Retail3	30		38
Non-branded and bulk4	22		25
Total	$	723	$	766

The following table shows our net sales by product category:

	Three Months Ended
	July 31,
(Dollars in millions, except per share amounts)	2017		2018
Whiskey1	$	557	$	602
Tequila2	58		62
Vodka3	31		26
Wine4	42		40
Rest of portfolio	13		11
Non-branded and bulk5	22		25
Total	$	723	$	766