Income Taxes (Tables)

12 Months Ended

Apr. 30, 2019

Income Tax Disclosure [Abstract]

Domestic and Foreign income before Income taxes

The following table, based on the locations of the taxable entities from which sales were derived (rather than the location of customers), presents the U.S. and foreign components of our income before income taxes:

	2017		2018		2019
United States	$	806	$	747	$	863
Foreign	127		230		179
	$	933	$	977	$	1,042

Total income tax expense

Our total income tax expense for each of the last three years was as follows:

	2017			2018			2019
Current:
U.S. federal	$	226		$	265		$	107
Foreign	40			47			34
State and local	8			17			28
	274			329			169
Deferred:
U.S. federal	(1		)	(48		)	37
Foreign	(9		)	(13		)	4
State and local	—			(8		)	(3		)
	(10		)	(69		)	38
	$	264		$	260		$	207

Reconciles our effective tax rate to the federal statutory tax rate in the United States

The following table reconciles our effective tax rate to the federal statutory tax rate in the United States:

	Percent of Income Before Taxes
	2017		2018		2019
U.S. federal statutory rate	35.0	%	30.4	%	21.0	%
State taxes, net of U.S. federal tax benefit	0.9	%	0.8	%	2.1	%
Income taxed at other than U.S. federal statutory rate	(1.7	%)	(3.4	%)	(0.1	%)
Tax benefit from foreign-derived sales	—	%	—	%	(1.7	%)
Adjustments related to prior years	(0.7	%)	(0.9	%)	(1.2	%)
Tax benefit from U.S. manufacturing	(2.4	%)	(2.5	%)	—	%
Amortization of deferred tax benefit from intercompany transactions	(1.7	%)	(1.6	%)	—	%
Excess tax benefits from stock-based awards	(1.0	%)	(1.8	%)	(0.7	%)
Impact of Tax Act	—	%	2.5	%	(0.4	%)
Other, net	(0.1	%)	3.1	%	0.8	%
Effective rate	28.3	%	26.6	%	19.8	%

Deferred tax assets and liabilities

Deferred tax assets and liabilities as of the end of each of the last two years were as follows:

April 30,	2018			2019
Deferred tax assets:
Postretirement and other benefits	$	89		$	87
Accrued liabilities and other	36			23
Inventories	48			34
Loss and credit carryforwards	51			55
Valuation allowance	(29		)	(25		)
Total deferred tax assets, net	195			174
Deferred tax liabilities:
Intangible assets	(199		)	(218		)
Property, plant, and equipment	(64		)	(73		)
Other	(1		)	(12		)
Total deferred tax liabilities	(264		)	(303		)
Net deferred tax liability	$	(69	)	$	(129	)

Loss carryforwards and valuation allowances

Details of the loss and credit carryforwards and related valuation allowances as of the end of each of the last two years are as follows:

	April 30, 2018							April 30, 2019
	Gross Amount		Deferred Tax Asset		Valuation Allowance			Gross Amount		Deferred Tax Asset		Valuation Allowance			Expiration (as of April 30, 2019)
Finland net operating losses	$	94	$	19	$	—		$	105	$	21	$	—		2024-2029
Brazil net operating losses	48		16		(16		)	42		14		(14		)	None
United Kingdom non-trading losses	29		6		(6		)	27		5		(5		)	None
Various state net operating losses and credits	34		2		—			68		6		—			Various1
Other	41		8		(7		)	54		9		(6		)	Various2
	$	246	$	51	$	(29	)	$	296	$	55	$	(25	)

¹As of April 30, 2019, the net deferred tax asset amount includes credit carryforwards of $2 that do not expire and loss and credit carryforwards of $4 that expire in varying amounts from 2023 to 2039.

Reconciliation of ending and beginning unrecognized tax benefits

A reconciliation of the beginning and ending unrecognized tax benefits follows:

	2017			2018			2019
Unrecognized tax benefits at beginning of year	$	9		$	9		$	11
Additions for tax positions provided in prior periods	2			5			1
Additions for tax positions provided in current period	—			1			1
Decreases for tax positions provided in prior years	(2		)	(4		)	(2		)
Unrecognized tax benefits at end of year	$	9		$	11		$	11