Income Taxes (Tables)

12 Months Ended

Apr. 30, 2023

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:

	2021		2022		2023
United States	$	832	$	954	$	841
Foreign	249		160		176
	$	1,081	$	1,114	$	1,017

Total income tax expense

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

	2021		2022		2023
Current:
U.S. federal	$	146	$	205	$	157
Foreign	50		64		46
State and local	35		18		34
	231		287		237
Deferred:
U.S. federal	(4)		1		(4)
Foreign	(47)		(9)		6
State and local	(2)		(3)		(5)
	(53)		(11)		(3)
	$	178	$	276	$	234

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
	2021		2022		2023
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of U.S. federal tax benefit	2.4	%	1.0	%	2.5	%
Income taxed at other than U.S. federal statutory rate	0.3	%	1.3	%	3.0	%
Prior intercompany sales taxed at higher than current U.S. federal statutory rate	0.2	%	2.0	%	1.0	%
Tax benefit from foreign-derived sales	(1.7	%)	(1.8	%)	(3.0)	%
Adjustments related to prior years	(0.2	%)	0.7	%	(0.5)	%
Excess tax benefits from stock-based awards	(1.0	%)	(0.5	%)	(0.3)	%
Tax rate changes	—	%	0.4	%	—	%
Intercompany transfer of assets	(4.0	%)	—	%	—	%
Valuation allowance	—	%	—	%	(1.3)	%
Other, net	(0.5	%)	0.7	%	0.6	%
Effective rate	16.5	%	24.8	%	23.0	%

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,	2022		2023
Deferred tax assets:
Postretirement and other benefits	$	69	$	75
Accrued liabilities and other	36		35
Inventories	40		26
Lease liabilities	20		23
Loss and credit carryforwards	69		62
Total deferred tax assets	234		221
Valuation allowance	(27)		(14)
Total deferred tax assets, net of valuation allowance	207		207
Deferred tax liabilities:
Intangible assets	(219)		(323)
Property, plant, and equipment	(87)		(98)
Right-of-use assets	(20)		(23)
Derivative instruments	(11)		(3)
Other	(15)		(17)
Total deferred tax liabilities	(352)		(464)
Net deferred tax liability	$	(145)	$	(257)

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, 2022						April 30, 2023
	Gross Amount		Deferred Tax Asset		Valuation Allowance		Gross Amount		Deferred Tax Asset			Valuation Allowance
U.S.	$	53	$	19	$	(8)	$	111	$	20	1	$	(6)
Foreign	241		50		(19)		216		42		2	(8)
	$	294	$	69	$	(27)	$	327	$	62		$	(14)

1As of April 30, 2023, the deferred tax asset amount includes credit carryforwards of $10 that do not expire and loss and credit carryforwards of $10 that expire in varying amounts from 2023 to 2039.

2As of April 30, 2023, the deferred tax asset includes loss carryforwards of $19 that do not expire and $23 that expire in varying amounts over the next 10 years.

Reconciliation of ending and beginning unrecognized tax benefits

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

	2021		2022		2023
Unrecognized tax benefits at beginning of year	$	11	$	12	$	14
Additions for tax positions provided in prior periods	1		2		8
Additions for tax positions provided in current period	2		2		3
Settlements of tax positions in the current period	(1)		—		—
Lapse of statutes of limitations	(1)		(2)		(4)
Unrecognized tax benefits at end of year	$	12	$	14	$	21