2023 Q2 Form 10-K Financial Statement

#000009141923000072 Filed on June 20, 2023

View on sec.gov

Income Statement

Concept 2023 Q2 2023
Revenue $2.235B $8.529B
YoY Change 9.88% 6.63%
Cost Of Revenue $1.441B $5.727B
YoY Change 5.63% 8.1%
Gross Profit $793.9M $2.802B
YoY Change 18.55% 3.74%
Gross Profit Margin 35.52% 32.85%
Selling, General & Admin $376.0M $1.455B
YoY Change 6.64% 6.96%
% of Gross Profit 47.36% 51.93%
Research & Development $47.30M
YoY Change -3.07%
% of Gross Profit 1.69%
Depreciation & Amortization $92.20M $224.1M
YoY Change -19.19% -4.84%
% of Gross Profit 11.61% 8.0%
Operating Expenses $403.8M $1.455B
YoY Change 11.61% 6.96%
Operating Profit $390.1M $157.5M
YoY Change 26.7% -84.62%
Interest Expense -$35.30M -$152.0M
YoY Change -7.11% -5.53%
% of Operating Profit -9.05% -96.51%
Other Income/Expense, Net -$2.900M -$14.70M
YoY Change -23.68% -23.04%
Pretax Income -$678.6M -$9.200M
YoY Change -360.8% -101.09%
Income Tax -$77.90M $82.10M
% Of Pretax Income
Net Earnings -$599.9M -$91.30M
YoY Change -396.83% -114.45%
Net Earnings / Revenue -26.84% -1.07%
Basic Earnings Per Share -$0.86
Diluted Earnings Per Share -$5.68 -$0.86
COMMON SHARES
Basic Shares Outstanding 102.0M shares
Diluted Shares Outstanding

Balance Sheet

Concept 2023 Q2 2023
SHORT-TERM ASSETS
Cash & Short-Term Investments $1.144B $1.144B
YoY Change 573.1% 573.1%
Cash & Equivalents $655.8M $655.8M
Short-Term Investments $487.8M $487.8M
Other Short-Term Assets $107.7M $107.7M
YoY Change -52.39% -52.39%
Inventory $1.010B $1.010B
Prepaid Expenses
Receivables $597.6M $597.6M
Other Receivables $0.00 $0.00
Total Short-Term Assets $2.859B $2.859B
YoY Change 42.22% 42.22%
LONG-TERM ASSETS
Property, Plant & Equipment $2.240B $2.343B
YoY Change 5.06% 4.66%
Goodwill $5.217B
YoY Change -13.28%
Intangibles $4.429B
YoY Change -21.64%
Long-Term Investments $24.00M
YoY Change -9.77%
Other Assets $9.893B $120.0M
YoY Change -16.96% 7.05%
Total Long-Term Assets $12.13B $12.13B
YoY Change -13.61% -13.61%
TOTAL ASSETS
Total Short-Term Assets $2.859B $2.859B
Total Long-Term Assets $12.13B $12.13B
Total Assets $14.99B $14.99B
YoY Change -6.62% -6.62%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $1.393B $1.393B
YoY Change 16.7% 16.7%
Accrued Expenses $333.8M $333.8M
YoY Change 2.49% 2.49%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change -100.0% -100.0%
Long-Term Debt Due $1.200M $1.200M
YoY Change -14.29%
Total Short-Term Liabilities $1.987B $1.987B
YoY Change 1.74% 1.74%
LONG-TERM LIABILITIES
Long-Term Debt $4.316B $4.316B
YoY Change 0.13% 0.08%
Other Long-Term Liabilities $72.40M $258.6M
YoY Change -70.98% -19.99%
Total Long-Term Liabilities $5.714B $4.575B
YoY Change -4.16% -1.32%
TOTAL LIABILITIES
Total Short-Term Liabilities $1.987B $1.987B
Total Long-Term Liabilities $5.714B $4.575B
Total Liabilities $7.701B $7.701B
YoY Change -2.71% -2.71%
SHAREHOLDERS EQUITY
Retained Earnings $2.132B
YoY Change -26.3%
Common Stock $5.372B
YoY Change -1.58%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $7.291B $7.291B
YoY Change
Total Liabilities & Shareholders Equity $14.99B $14.99B
YoY Change -6.62% -6.62%

Cashflow Statement

Concept 2023 Q2 2023
OPERATING ACTIVITIES
Net Income -$599.9M -$91.30M
YoY Change -396.83% -114.45%
Depreciation, Depletion And Amortization $92.20M $224.1M
YoY Change -19.19% -4.84%
Cash From Operating Activities $443.8M $1.194B
YoY Change 12.73% 5.11%
INVESTING ACTIVITIES
Capital Expenditures $145.1M $477.4M
YoY Change -183.87% 14.35%
Acquisitions $0.00
YoY Change
Other Investing Activities $708.1M -$47.30M
YoY Change -1499.41% -169.56%
Cash From Investing Activities $563.0M $256.2M
YoY Change -351.79% -172.07%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net $367.5M
YoY Change 35.91%
Debt Paid & Issued, Net $0.00
YoY Change -100.0%
Cash From Financing Activities -455.2M -$964.6M
YoY Change 60.23% 2.13%
NET CHANGE
Cash From Operating Activities 443.8M $1.194B
Cash From Investing Activities 563.0M $256.2M
Cash From Financing Activities -455.2M -$964.6M
Net Change In Cash 551.6M $485.9M
YoY Change -583.86% -395.56%
FREE CASH FLOW
Cash From Operating Activities $443.8M $1.194B
Capital Expenditures $145.1M $477.4M
Free Cash Flow $298.7M $717.0M
YoY Change -47.29% -0.25%

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CY2023 sjm Number Of Facilities Covered By Union Contracts
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CY2023 sjm Number Of Union Contracts Expiring In Next Fiscal Year
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CY2022 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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9600000 usd
CY2021 us-gaap Disposal Group Not Discontinued Operation Gain Loss On Disposal
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CY2023 sjm Number Of Industries In Which Company Operates
NumberOfIndustriesInWhichCompanyOperates
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CY2023 us-gaap Number Of Reportable Segments
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CY2023 sjm Segment Reporting Information Segment Profit
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CY2022 sjm Segment Reporting Information Segment Profit
SegmentReportingInformationSegmentProfit
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CY2021 sjm Segment Reporting Information Segment Profit
SegmentReportingInformationSegmentProfit
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CY2021 us-gaap Interest Income Expense Nonoperating Net
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CY2023 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
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CY2022 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
NetMarkToMarketValuationOfCertainDerivativePositionsRecognizedInUnallocatedDerivativeGainsLosses
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CY2021 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
NetMarkToMarketValuationOfCertainDerivativePositionsRecognizedInUnallocatedDerivativeGainsLosses
93600000 usd
CY2023 sjm Cost Of Products Sold Special Project Costs
CostOfProductsSoldSpecialProjectCosts
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CY2022 sjm Cost Of Products Sold Special Project Costs
CostOfProductsSoldSpecialProjectCosts
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CY2021 sjm Cost Of Products Sold Special Project Costs
CostOfProductsSoldSpecialProjectCosts
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CY2023 us-gaap Restructuring Charges
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CY2022 us-gaap Restructuring Charges
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CY2021 us-gaap Restructuring Charges
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CY2023 us-gaap General And Administrative Expense
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CY2022 us-gaap General And Administrative Expense
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CY2021 us-gaap General And Administrative Expense
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CY2021 us-gaap Other Nonoperating Income Expense
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CY2023 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2022 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2021 us-gaap Income Loss From Continuing Operations Before Income Taxes Extraordinary Items Noncontrolling Interest
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CY2022Q2 us-gaap Assets
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CY2021Q2 us-gaap Assets
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CY2023 sjm Depreciation Amortization And Impairment Charges
DepreciationAmortizationAndImpairmentCharges
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CY2022 sjm Depreciation Amortization And Impairment Charges
DepreciationAmortizationAndImpairmentCharges
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CY2021 sjm Depreciation Amortization And Impairment Charges
DepreciationAmortizationAndImpairmentCharges
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CY2023 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
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CY2022 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
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CY2021 us-gaap Payments To Acquire Property Plant And Equipment
PaymentsToAcquirePropertyPlantAndEquipment
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CY2023 us-gaap Revenue From Contract With Customer Including Assessed Tax
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8529200000 usd
CY2022 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
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8002700000 usd
CY2023Q2 us-gaap Assets
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14991400000 usd
CY2022Q2 us-gaap Assets
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16055000000 usd
CY2021Q2 us-gaap Assets
Assets
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CY2023Q2 sjm Long Lived Assets Excluding Intangibles
LongLivedAssetsExcludingIntangibles
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CY2022Q2 sjm Long Lived Assets Excluding Intangibles
LongLivedAssetsExcludingIntangibles
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CY2021Q2 sjm Long Lived Assets Excluding Intangibles
LongLivedAssetsExcludingIntangibles
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CY2023 us-gaap Revenue From Contract With Customer Including Assessed Tax
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CY2022 us-gaap Revenue From Contract With Customer Including Assessed Tax
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7998900000 usd
CY2021 us-gaap Revenue From Contract With Customer Including Assessed Tax
RevenueFromContractWithCustomerIncludingAssessedTax
8002700000 usd
CY2023 sjm Percentofproductsalesattributabletoprimaryreportablesegment
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CY2023Q2 us-gaap Goodwill
Goodwill
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Goodwill
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CY2022Q2 us-gaap Goodwill
Goodwill
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CY2023 us-gaap Goodwill Written Off Related To Sale Of Business Unit
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CY2023Q2 us-gaap Goodwill Impaired Accumulated Impairment Loss
GoodwillImpairedAccumulatedImpairmentLoss
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CY2023Q2 us-gaap Finite Lived Intangible Assets Gross
FiniteLivedIntangibleAssetsGross
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AccumulatedAmortizationImpairmentChargesAndForeignCurrencyExchangeExpenseForFiniteLivedAssets
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FiniteLivedIntangibleAssetsNet
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FiniteLivedIntangibleAssetsGross
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AccumulatedAmortizationImpairmentChargesAndForeignCurrencyExchangeExpenseForFiniteLivedAssets
2233900000 usd
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FiniteLivedIntangibleAssetsNet
3045400000 usd
CY2023Q2 us-gaap Intangible Assets Gross Excluding Goodwill
IntangibleAssetsGrossExcludingGoodwill
6648700000 usd
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2219400000 usd
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2460200000 usd
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CY2022 us-gaap Adjustment For Amortization
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222500000 usd
CY2021 us-gaap Adjustment For Amortization
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232000000.0 usd
CY2023 us-gaap Finite Lived Intangible Asset Useful Life
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156200000 usd
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CY2023Q1 us-gaap Reporting Unit Percentage Of Fair Value In Excess Of Carrying Amount
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CY2023Q2 us-gaap Debt Instrument Face Amount
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CY2023Q2 us-gaap Long Term Debt
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CY2022Q2 us-gaap Debt Instrument Face Amount
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CY2022Q2 us-gaap Long Term Debt
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CY2023Q2 sjm Percentage Of Principal Amount Thereof At Which Company Can Prepay
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CY2023 us-gaap Interest Paid
InterestPaid
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CY2022 us-gaap Interest Paid
InterestPaid
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CY2021 us-gaap Interest Paid
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CY2023 us-gaap Defined Benefit Plans General Information
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CY2023Q2 sjm Defined Benefit Plan Net Asset Value Of Plan Assets
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CY2022Q2 sjm Defined Benefit Plan Net Asset Value Of Plan Assets
DefinedBenefitPlanNetAssetValueOfPlanAssets
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Next Twelve Months
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Two
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearTwo
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Three
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearThree
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Four
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Year Five
DefinedBenefitPlanExpectedFutureBenefitPaymentsYearFive
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CY2023Q2 us-gaap Defined Benefit Plan Expected Future Benefit Payments Five Fiscal Years Thereafter
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165500000 usd
CY2023 sjm Multiemployer Pension Plans Number Of Plans
MultiemployerPensionPlansNumberOfPlans
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CY2023 us-gaap Multiemployer Plan Pension Significant Employer Contribution Cost
MultiemployerPlanPensionSignificantEmployerContributionCost
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CY2022 us-gaap Multiemployer Plan Pension Significant Employer Contribution Cost
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CY2021Q4 sjm Multiemployer Plan Actual Funded Status
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CY2023Q2 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2022Q2 us-gaap Derivative Collateral Right To Reclaim Cash
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CY2022 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2021 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2023 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2022 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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CY2021 us-gaap Derivative Instruments Not Designated As Hedging Instruments Gain Loss Net
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92600000 usd
CY2023 sjm Net Gain Loss On Derivative Positions Reclassified From Derivative Gains Losses To Segment Operating Profit
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CY2022 sjm Net Gain Loss On Derivative Positions Reclassified From Derivative Gains Losses To Segment Operating Profit
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CY2021 sjm Net Gain Loss On Derivative Positions Reclassified From Derivative Gains Losses To Segment Operating Profit
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CY2023 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
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CY2022 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
NetMarkToMarketValuationOfCertainDerivativePositionsRecognizedInUnallocatedDerivativeGainsLosses
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CY2021 sjm Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
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93600000 usd
CY2023 sjm Cumulative Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
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15900000 usd
CY2022 sjm Cumulative Net Mark To Market Valuation Of Certain Derivative Positions Recognized In Unallocated Derivative Gains Losses
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CY2023Q2 sjm Other Investment Municipal Bond Matured In One Year
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CY2023Q2 sjm Other Investment Municipal Bond Matured In Second Year
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CY2023Q2 sjm Other Investment Municipal Bond Matured In Third Year
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CY2023Q2 sjm Other Investment Municipal Bond Matured In Fourth Year
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CY2023Q2 sjm Other Investment Municipal Bond Matured In Fifth Year
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CY2023Q2 sjm Other Investment Municipal Bond Matured In Sixth Year And Beyond
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CY2023Q2 sjm Lessee Operating Lease Impact Of Leases Not Yet Commenced
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CY2023Q2 us-gaap Operating Lease Right Of Use Asset
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CY2023Q2 us-gaap Operating Lease Liability Noncurrent
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CY2022Q2 us-gaap Operating Lease Liability Noncurrent
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CY2023Q2 us-gaap Operating Lease Liability
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CY2022Q2 us-gaap Operating Lease Liability
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CY2023Q2 us-gaap Finance Lease Right Of Use Asset Before Accumulated Amortization
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CY2022Q2 us-gaap Finance Lease Right Of Use Asset Before Accumulated Amortization
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8100000 usd
CY2023Q2 us-gaap Finance Lease Right Of Use Asset Accumulated Amortization
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CY2022Q2 us-gaap Finance Lease Right Of Use Asset Accumulated Amortization
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4300000 usd
CY2023Q2 us-gaap Finance Lease Right Of Use Asset
FinanceLeaseRightOfUseAsset
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CY2022Q2 us-gaap Finance Lease Right Of Use Asset
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CY2023Q2 us-gaap Finance Lease Liability
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CY2022Q2 us-gaap Finance Lease Liability
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CY2023 us-gaap Operating Lease Cost
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CY2022 us-gaap Operating Lease Cost
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CY2021 us-gaap Operating Lease Cost
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CY2022 us-gaap Finance Lease Right Of Use Asset Amortization
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CY2021 us-gaap Finance Lease Right Of Use Asset Amortization
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CY2022 us-gaap Finance Lease Interest Expense
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100000 usd
CY2021 us-gaap Finance Lease Interest Expense
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100000 usd
CY2023 us-gaap Variable Lease Cost
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CY2022 us-gaap Variable Lease Cost
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CY2021 us-gaap Variable Lease Cost
VariableLeaseCost
23200000 usd
CY2023 us-gaap Short Term Lease Cost
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44500000 usd
CY2022 us-gaap Short Term Lease Cost
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CY2021 us-gaap Short Term Lease Cost
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CY2023 us-gaap Lease Cost
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CY2022 us-gaap Lease Cost
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CY2021 us-gaap Lease Cost
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CY2023 us-gaap Operating Lease Payments
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CY2022 us-gaap Operating Lease Payments
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CY2021 us-gaap Operating Lease Payments
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CY2023 us-gaap Finance Lease Interest Payment On Liability
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CY2022 us-gaap Finance Lease Interest Payment On Liability
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CY2021 us-gaap Finance Lease Interest Payment On Liability
FinanceLeaseInterestPaymentOnLiability
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CY2022 us-gaap Finance Lease Principal Payments
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CY2021 us-gaap Finance Lease Principal Payments
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CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Operating Lease Liability
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CY2023 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2022 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
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CY2021 us-gaap Right Of Use Asset Obtained In Exchange For Finance Lease Liability
RightOfUseAssetObtainedInExchangeForFinanceLeaseLiability
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CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Next Twelve Months
LesseeOperatingLeaseLiabilityPaymentsDueNextTwelveMonths
35900000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due Next Twelve Months
FinanceLeaseLiabilityPaymentsDueNextTwelveMonths
1300000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Two
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27200000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due Year Two
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CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Three
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23800000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due Year Three
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700000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Four
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9500000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due Year Four
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400000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due Year Five
LesseeOperatingLeaseLiabilityPaymentsDueYearFive
4600000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due Year Five
FinanceLeaseLiabilityPaymentsDueYearFive
100000 usd
CY2023Q2 us-gaap Lessee Operating Lease Liability Payments Due After Year Five
LesseeOperatingLeaseLiabilityPaymentsDueAfterYearFive
19900000 usd
CY2023Q2 us-gaap Finance Lease Liability Payments Due After Year Five
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<div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Note 15: Contingencies</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">We, like other food manufacturers, are from time to time subject to various administrative, regulatory, and other legal proceedings arising in the ordinary course of business. We are currently a defendant in a variety of such legal proceedings, including certain lawsuits related to the alleged price-fixing of shelf stable tuna products prior to 2011 by a business previously owned by, but divested prior to our acquisition of, Big Heart, the significant majority of which were settled and paid during 2019 and 2020. While we cannot predict with certainty the ultimate results of these proceedings or potential settlements associated with these or other matters, we have accrued losses for certain contingent liabilities that we have determined are probable and reasonably estimable at April 30, 2023. Based on the information known to date, with the exception of the matters discussed below, we do not believe the final outcome of these proceedings would have a material adverse effect on our financial position, results of operations, or cash flows.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In addition to the legal proceedings discussed above, we are defendants in a series of putative class action lawsuits that were transferred to the United States District Court for the Western District of Missouri for coordinated pre-trial proceedings. The plaintiffs assert claims arising under various state laws for false advertising, consumer protection, deceptive and unfair trade practices, and similar statutes. Their claims are premised on allegations that we have misrepresented the number of servings that can be made from various canisters of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Folgers</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> coffee on the packaging for those products.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">The outcome and the financial impact of these cases, if any, cannot be predicted at this time. Accordingly, no loss contingency has been recorded for these matters as of April 30, 2023, and the likelihood of loss is not considered probable or estimable. However, if we are required to pay significant damages, our business and financial results could be adversely impacted, and sales of those products could suffer not only in these locations but elsewhere.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:700;line-height:120%">Product Recall: </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">In May 2022, we initiated a voluntary recall of select </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> peanut butter products produced at our Lexington, Kentucky facility and sold primarily in the U.S., due to potential salmonella contamination. At that time, we also suspended the manufacturing of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">peanut butter products at the Lexington facility and temporarily paused shipments from our Memphis, Tennessee facility to eliminate confusion while customers cleared their shelves of potentially impacted products manufactured at the Lexington facility. No other products produced at our other facilities were affected by the recall. In June 2022, we resumed manufacturing </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> peanut butter products at our Lexington facility, as well as shipping from our Memphis facility. We partnered with retailers to restock </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">peanut butter products during the first quarter of 2023, and as of April 30, 2023, we have returned to normal levels. To date, we have recognized total direct costs associated with the recall of approximately $120.0, net of insurance recoveries, related to customer returns, fees, unsaleable inventory, and other product recall-related costs, primarily within our U.S. Retail Consumer Foods segment. We expect costs associated with the recall to be minimal in 2024.</span></div><div><span><br/></span></div><div><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">Further, the FDA issued a Warning Letter on January 24, 2023, following an inspection of our Lexington facility completed in June 2022 in connection with the </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> voluntary recall, identifying concerns regarding certain practices and controls at the facility. We have responded to the Warning Letter with a detailed explanation of our food safety plan and extensive verification activities to prevent contamination in </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> peanut butter products. In addition, we have worked diligently to further strengthen our already stringent quality processes, including doubling our finished product testing and tripling our environmental testing to verify the efficacy of our actions. The FDA or other agencies may nonetheless conclude that certain practices or controls were not in compliance with the Federal Food, Drug, and Cosmetic Act or other laws. Any potential regulatory action based on such an agency conclusion could result in the imposition of injunctive terms and monetary payments that could have a material adverse effect on our business, reputation, brand, results of operations, and financial performance, as well as affect ongoing consumer litigation associated with the voluntary recall of </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif</span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%"> peanut butter products. The outcome and financial impact of the ongoing consumer litigation or any potential regulatory action associated with the </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-style:italic;font-weight:400;line-height:120%">Jif </span><span style="color:#000000;font-family:'Times New Roman',sans-serif;font-size:10pt;font-weight:400;line-height:120%">voluntary recall cannot be predicted at this time. Accordingly, no loss contingency has been recorded for these matters as of April 30, 2023, and the likelihood of loss is not considered probable or estimable.</span></div>
CY2023 sjm Number Of Votes Each Holder Of Common Share Outstanding Is Entitled
NumberOfVotesEachHolderOfCommonShareOutstandingIsEntitled
1 votes_per_share
CY2023Q2 us-gaap Sales And Excise Tax Payable Current And Noncurrent
SalesAndExciseTaxPayableCurrentAndNoncurrent
3600000 usd
CY2022Q2 us-gaap Sales And Excise Tax Payable Current And Noncurrent
SalesAndExciseTaxPayableCurrentAndNoncurrent
0 usd

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