Income Taxes (Tables)

12 Months Ended

Apr. 30, 2024

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:

	2022		2023		2024
United States	$	954	$	841	$	917
Foreign	160		176		381
	$	1,114	$	1,017	$	1,298

Total income tax expense

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

	2022		2023		2024
Current:
U.S. federal	$	205	$	157	$	150
Foreign	64		46		81
State and local	18		34		25
	287		237		256
Deferred:
U.S. federal	1		(4)		16
Foreign	(9)		6		(5)
State and local	(3)		(5)		7
	(11)		(3)		18
	$	276	$	234	$	274

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
	2022		2023		2024
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of U.S. federal tax benefit	1.0	%	2.5	%	1.3	%
Income taxed at other than U.S. federal statutory rate	1.3	%	3.0	%	0.5	%
Prior intercompany sales taxed at higher than current U.S. federal statutory rate	2.0	%	1.0	%	—	%
Tax benefit from foreign-derived sales	(1.8	%)	(3.0	%)	(1.7)	%
Business divestitures	—	%	—	%	(0.7)	%
Adjustments related to prior years	0.7	%	(0.5	%)	—	%
Excess tax benefits from stock-based awards	(0.5	%)	(0.3	%)	(0.1)	%
Tax rate changes	0.4	%	—	%	0.4	%
Valuation allowance	—	%	(1.3	%)	0.1	%
Other, net	0.7	%	0.6	%	0.4	%
Effective rate	24.8	%	23.0	%	21.2	%

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,	2023		2024
Deferred tax assets:
Postretirement and other benefits	$	75	$	65
Accrued liabilities and other	35		47
Inventories	26		26
Lease liabilities	23		27
Loss and credit carryforwards	62		65
Total deferred tax assets	221		230
Valuation allowance	(14)		(16)
Total deferred tax assets, net of valuation allowance	207		214
Deferred tax liabilities:
Intangible assets	(323)		(295)
Property, plant, and equipment	(98)		(93)
Right-of-use assets	(23)		(27)
Derivative instruments	(3)		(3)
Equity method investments	—		(37)
Other	(17)		(5)
Total deferred tax liabilities	(464)		(460)
Net deferred tax liability	$	(257)	$	(246)

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, 2023						April 30, 2024
	Gross Amount		Deferred Tax Asset		Valuation Allowance		Gross Amount		Deferred Tax Asset			Valuation Allowance
U.S.	$	111	$	20	$	(6)	$	110	$	38	1	$	(7)
Foreign	216		42		(8)		161		27		2	(9)
	$	327	$	62	$	(14)	$	271	$	65		$	(16)

1As of April 30, 2024, the deferred tax asset amount includes credit carryforwards of $28 that do not expire and loss and credit carryforwards of $10 that expire in varying amounts from 2025 to 2039.

2As of April 30, 2024, the deferred tax asset includes loss carryforwards of $25 that do not expire and $2 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: 

	2022		2023		2024
Unrecognized tax benefits at beginning of year	$	12	$	14	$	21
Additions for tax positions provided in prior periods	2		8		1
Additions for tax positions provided in current period	2		3		2
Decreases for tax positions provided in prior years	—		—		(3)
Settlements of tax positions in the current period	—		—		(3)
Lapse of statutes of limitations	(2)		(4)		(4)
Unrecognized tax benefits at end of year	$	14	$	21	$	14