Income Taxes (Tables)

12 Months Ended

Apr. 30, 2018

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:

	2016		2017		2018
United States	$	1,184	$	806	$	747
Foreign	305		127		230
	$	1,489	$	933	$	977

Total income tax expense

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

	2016			2017			2018
Current:
U.S. federal	$	347		$	226		$	265
Foreign	47			40			47
State and local	18			8			17
	412			274			329
Deferred:
U.S. federal	$	24		$	(1	)	$	(48	)
Foreign	(17		)	(9		)	(13		)
State and local	3			—			(8		)
	10			(10		)	(69		)
	$	422		$	264		$	260

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
	2016		2017		2018
U.S. federal statutory rate	35.0	%	35.0	%	30.4	%
State taxes, net of U.S. federal tax benefit	1.0	%	0.9	%	0.8	%
Income taxed at other than U.S. federal statutory rate	(2.5	%)	(1.7	%)	(3.4	%)
Tax benefit from U.S. manufacturing	(2.4	%)	(2.4	%)	(2.5	%)
Tax impact of sale of business	(1.1	%)	—	%	—	%
Amortization of deferred tax benefit from intercompany transactions	(1.6	%)	(1.7	%)	(1.6	%)
Excess tax benefits from stock-based awards	—	%	(1.0	%)	(1.8	%)
Provisional impact of Tax Act	—	%	—	%	2.5	%
Other, net	(0.1	%)	(0.8	%)	2.2	%
Effective rate	28.3	%	28.3	%	26.6	%

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,	2017			2018
Deferred tax assets:
Postretirement and other benefits	$	173		$	89
Accrued liabilities and other	17			36
Inventories	27			48
Loss carryforwards	44			51
Valuation allowance	(30		)	(29		)
Total deferred tax assets, net	231			195
Deferred tax liabilities:
Intangible assets	(262		)	(199		)
Property, plant, and equipment	(90		)	(64		)
Other	(15		)	(1		)
Total deferred tax liabilities	(367		)	(264		)
Net deferred tax liability	$	(136	)	$	(69	)

Reconciliation of ending and beginning unrecognized tax benefits

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

	2016			2017			2018
Unrecognized tax benefits at beginning of year	$	13		$	9		$	9
Additions for tax positions provided in prior periods	1			2			5
Additions for tax positions provided in current period	—			—			1
Decreases for tax positions provided in prior years	(4		)	(2		)	(4		)
Settlements of tax positions in the current period	(1		)	—			—
Unrecognized tax benefits at end of year	$	9		$	9		$	11

Loss carryforwards and valuation allowances

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

	April 30, 2017							April 30, 2018
	Gross Amount		Deferred Tax Asset		Valuation Allowance			Gross Amount		Deferred Tax Asset		Valuation Allowance			Expiration (as of April 30, 2018)
Finland net operating losses	$	65	$	13	$	—		$	94	$	19	$	—		2024-2028
Brazil net operating losses	49		17		(17		)	48		16		(16		)	None
United Kingdom non-trading losses	27		5		(5		)	29		6		(6		)	None
Various state net operating losses	—		—		—			34		2		—			2033-2038
Other	43		9		(8		)	41		8		(7		)	Various1
	$	184	$	44	$	(30	)	$	246	$	51	$	(29	)

¹As of April 30, 2018, gross amount includes loss carryforwards of $11 that do not expire and $30 that expire in varying amounts over the next 10 years.