Income Taxes (Tables)

12 Months Ended

Apr. 30, 2016

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:

	2014		2015		2016
United States	$	797	$	912	$	1,184
Foreign	150		90		305
	$	947	$	1,002	$	1,489

Deferred tax assets and liabilities

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

	2015			2016
April 30,
Deferred tax assets:
Postretirement and other benefits	$	164		$	183
Accrued liabilities and other	22			10
Inventories	12			26
Loss and credit carryforwards	46			39
Valuation allowance	(27		)	(25		)
Total deferred tax assets, net	217			233
Deferred tax liabilities:
Intangible assets	(207		)	(225		)
Property, plant, and equipment	(61		)	(83		)
Other	(31		)	(9		)
Total deferred tax liabilities	(299		)	(317		)
Net deferred tax liability	$	(82	)	$	(84	)

Total income tax expense

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

	2014			2015			2016
Current:
U.S. federal	$	243		$	259		$	347
Foreign	49			42			47
State and local	1			11			18
	293			312			412
Deferred:
U.S. federal	$	3		$	15		$	24
Foreign	(6		)	(11		)	(17		)
State and local	(2		)	2			3
	(5		)	6			10
	$	288		$	318		$	422

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
	2014		2015		2016
U.S. federal statutory rate	35.0	%	35.0	%	35.0	%
State taxes, net of U.S. federal tax benefit	0.7	%	1.0	%	1.0	%
Income taxed at other than U.S. federal statutory rate	(2.2	)%	(0.5	)%	(2.5	)%
Tax benefit from U.S. manufacturing	(2.8	)%	(2.5	)%	(2.4	)%
Tax impact of sale of business	—	%	—	%	(1.1	)%
Amortization of deferred tax benefit from intercompany transactions	(0.4	)%	(1.6	)%	(1.6	)%
Other, net	0.2	%	0.3	%	(0.1	)%
Effective rate	30.5	%	31.7	%	28.3	%

Reconciliation of ending and beginning unrecognized tax benefits

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

	2014			2015			2016
Unrecognized tax benefits at beginning of year	$	11		$	11		$	13
Additions for tax positions provided in prior periods	1			2			1
Additions for tax positions provided in current period	1			1			—
Decreases for tax positions provided in prior years	(1		)	(1		)	(4		)
Settlements of tax positions in the current period	(1		)	—			(1		)
Lapse of statutes of limitations	—			—			—
Unrecognized tax benefits at end of year	$	11		$	13		$	9