Income Taxes (Tables)

12 Months Ended

Apr. 30, 2022

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:

	2020		2021		2022
United States	$	849	$	832	$	954
Foreign	160		249		160
	$	1,009	$	1,081	$	1,114

Total income tax expense

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

	2020		2021		2022
Current:
U.S. federal	$	95	$	146	$	205
Foreign	29		50		64
State and local	19		35		18
	143		231		287
Deferred:
U.S. federal	34		(4)		1
Foreign	7		(47)		(9)
State and local	(2)		(2)		(3)
	39		(53)		(11)
	$	182	$	178	$	276

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
	2020		2021		2022
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of U.S. federal tax benefit	1.7	%	2.4	%	1.0	%
Income taxed at other than U.S. federal statutory rate	—	%	0.3	%	1.3	%
Prior intercompany sales taxed at higher than current U.S. federal statutory rate	—	%	0.2	%	2.0	%
Tax benefit from foreign-derived sales	(2.0	%)	(1.7	%)	(1.8)	%
Adjustments related to prior years	(1.1	%)	(0.2	%)	0.7	%
Excess tax benefits from stock-based awards	(2.0	%)	(1.0	%)	(0.5)	%
Tax rate changes	—	%	—	%	0.4	%
Intercompany transfer of assets	—	%	(4.0	%)	—	%
Other, net	0.4	%	(0.5	%)	0.7	%
Effective rate	18.0	%	16.5	%	24.8	%

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,	2021		2022
Deferred tax assets:
Postretirement and other benefits	$	90	$	69
Accrued liabilities and other	47		36
Inventories	30		40
Lease liabilities	17		20
Derivative instruments	5		—
Loss and credit carryforwards	63		69
Total deferred tax assets	252		234
Valuation allowance	(20)		(27)
Total deferred tax assets, net of valuation allowance	232		207
Deferred tax liabilities:
Intangible assets	(214)		(219)
Property, plant, and equipment	(89)		(87)
Right-of-use assets	(17)		(20)
Derivative instruments	—		(11)
Other	(11)		(15)
Total deferred tax liabilities	(331)		(352)
Net deferred tax liability	$	(99)	$	(145)

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, 2021						April 30, 2022
	Gross Amount		Deferred Tax Asset		Valuation Allowance		Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration (as of April 30, 2022)
U.S.	$	99	$	15	$	(5)	$	53	$	19	$	(8)	Various1
Foreign	228		48		(15)		241		50		(19)		Various2
	$	327	$	63	$	(20)	$	294	$	69	$	(27)

1As of April 30, 2022, the deferred tax asset amount includes credit carryforwards of $8 that do not expire and loss and credit carryforwards of $11 that expire in varying amounts from 2023 to 2039.

2As of April 30, 2022, the deferred tax asset includes loss carryforwards of $19 that do not expire and $31 that expire in varying amounts over the next 9 years.

Reconciliation of ending and beginning unrecognized tax benefits

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

	2020		2021		2022
Unrecognized tax benefits at beginning of year	$	11	$	11	$	12
Additions for tax positions provided in prior periods	2		1		2
Additions for tax positions provided in current period	—		2		2
Decreases for tax positions provided in prior years	(1)		—		—
Settlements of tax positions in the current period	(1)		(1)		—
Lapse of statutes of limitations	—		(1)		(2)
Unrecognized tax benefits at end of year	$	11	$	12	$	14