Income Taxes (Tables)

12 Months Ended

Apr. 30, 2021

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:

	2019		2020		2021
United States	$	863	$	849	$	832
Foreign	179		160		249
	$	1,042	$	1,009	$	1,081

Total income tax expense

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

	2019		2020		2021
Current:
U.S. federal	$	107	$	95	$	146
Foreign	34		29		50
State and local	28		19		35
	169		143		231
Deferred:
U.S. federal	37		34		(4)
Foreign	4		7		(47)
State and local	(3)		(2)		(2)
	38		39		(53)
	$	207	$	182	$	178

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
	2019		2020		2021
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes, net of U.S. federal tax benefit	2.1	%	1.7	%	2.4	%
Income taxed at other than U.S. federal statutory rate	(0.1	%)	—	%	0.3	%
Tax benefit from foreign-derived sales	(1.7	%)	(2.0	%)	(1.7	%)
Adjustments related to prior years	(1.2	%)	(1.1	%)	(0.2	%)
Excess tax benefits from stock-based awards	(0.7	%)	(2.0	%)	(1.0	%)
Impact of Tax Act	(0.4	%)	—	%	—	%
Intercompany transfer of assets	—	%	—	%	(4.0	%)
Other, net	0.8	%	0.4	%	(0.3	%)
Effective rate	19.8	%	18.0	%	16.5	%

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,	2020		2021
Deferred tax assets:
Postretirement and other benefits	$	110	$	90
Accrued liabilities and other	23		47
Inventories	26		30
Lease liabilities	14		17
Derivative instruments	—		5
Loss and credit carryforwards	57		63
Valuation allowance	(22)		(20)
Total deferred tax assets, net	208		232
Deferred tax liabilities:
Intangible assets	(233)		(214)
Property, plant, and equipment	(90)		(89)
Right-of-use assets	(13)		(17)
Derivative instruments	(18)		—
Other	(16)		(11)
Total deferred tax liabilities	(370)		(331)
Net deferred tax liability	$	(162)	$	(99)

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, 2020						April 30, 2021
	Gross Amount		Deferred Tax Asset		Valuation Allowance		Gross Amount		Deferred Tax Asset		Valuation Allowance		Expiration (as of April 30, 2021)
Finland net operating losses	$	119	$	24	$	—	$	113	$	23	$	—	2024-2030
Brazil net operating losses	31		10		(10)		30		10		—		None
United Kingdom non-trading losses	26		5		(5)		29		5		(5)		None
State net operating losses and credits	63		9		—		91		13		(5)		Various1
Other	50		9		(7)		64		12		(10)		Various2
	$	289	$	57	$	(22)	$	327	$	63	$	(20)

1As of April 30, 2021, the net deferred tax asset amount includes credit carryforwards of $5 that do not expire and loss and credit carryforwards of $8 that expire in varying amounts from 2023 to 2041.

Reconciliation of ending and beginning unrecognized tax benefits

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

	2019		2020		2021
Unrecognized tax benefits at beginning of year	$	11	$	11	$	11
Additions for tax positions provided in prior periods	1		2		1
Additions for tax positions provided in current period	1		—		2
Decreases for tax positions provided in prior years	(2)		(1)		—
Settlements of tax positions in the current period	—		(1)		(1)
Lapse of statutes of limitations	—		—		(1)
Unrecognized tax benefits at end of year	$	11	$	11	$	12