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Pension and Other Postretirement Benefits
 12 Months Ended
Apr. 30, 2023
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Pension and Other Postretirement Benefits
We sponsor various defined benefit pension plans as well as postretirement plans providing retiree health care and retiree life insurance benefits. Below, we discuss our obligations related to these plans, the assets dedicated to meeting the obligations, and the amounts we recognized in our financial statements as a result of sponsoring these plans.
 
Obligations. We provide eligible employees with pension and other postretirement benefits based on factors such as years of service and compensation level during employment. The pension obligation shown below (“projected benefit obligation”) consists of: (a) benefits earned by employees to date based on current salary levels (“accumulated benefit obligation”); and (b) benefits to be received by employees as a result of expected future salary increases. (The obligation for medical and life insurance benefits is not affected by future salary increases.) The following table shows how the present value of our projected benefit obligations changed during each of the last two years. 
 Pension BenefitsMedical and Life
Insurance Benefits
 2022202320222023
Obligation at beginning of year$1,012 $846 $49 $43 
Service cost26 20 1 1 
Interest cost22 32 1 1 
Net actuarial loss (gain)1
(132)(21)(5)(2)
Retiree contributions— — 1 2 
Benefits paid(82)(146)(4)(5)
Obligation at end of year$846 $731 $43 $40 
1 The net actuarial loss (gain) during each year was primarily attributable to changes in discount rates.
Service cost represents the present value of the benefits attributed to service rendered by employees during the year. Interest cost is the increase in the present value of the obligation due to the passage of time. Net actuarial loss (gain) is the change in value of the obligation resulting from experience different from that assumed or from a change in an actuarial assumption. (We discuss actuarial assumptions used at the end of this note.) Plan amendments may also change the value of the obligation.
As shown in the previous table, the change in the value of our pension and other postretirement benefit obligations also includes the effect of benefit payments and retiree contributions. Expected benefit payments (net of retiree contributions) over the next 10 years are as follows:
Pension BenefitsMedical and Life
Insurance Benefits
2024$53 $4 
202552 3 
202654 3 
202755 3 
202856 3 
2029 – 2033287 15 
Assets. We invest in specific assets to fund our pension benefit obligations. Our investment goal is to earn a total return that, over time, will grow assets sufficiently to fund our plans' liabilities, after providing appropriate levels of contributions and accepting prudent levels of investment risk. To achieve this goal, plan assets are invested primarily in funds or portfolios of funds managed by outside managers. Investment risk is managed by company policies that require diversification of asset classes, manager styles, and individual holdings. We measure and monitor investment risk through quarterly and annual performance reviews, and through periodic asset/liability studies.
Asset allocation is the most important method for achieving our investment goals and is based on our assessment of the plans' long-term return objectives and the appropriate balances needed for liquidity, stability, and diversification. As of April 30, 2023, our target asset allocation is a mix of 31% public equity investments, 58% fixed income investments, and 11% alternative investments.
The following table shows the fair value of pension plan assets by category as of the end of the last two years. (Fair value levels are defined in Note 14.)
 Level 1Level 2Level 3Total
April 30, 2022
Equity securities$78 $— $— $78 
Limited partnership interest1
— — 2 2 
$78 $— $2 80 
Investments measured at net asset value:
Commingled trust funds2:
Equity funds218 
Fixed income funds318 
Real estate fund78 
Short-term investments6 
Limited partnership interests3
41 
Total$741 
April 30, 2023
Equity securities$35 $— $— $35 
Cash and temporary investments2 — — 2 
Limited partnership interest1
— — 1 1 
$37 $— $1 38 
Investments measured at net asset value:
Commingled trust funds2:
Equity funds138 
Fixed income funds330 
Real estate fund59 
Short-term investments2 
Limited partnership interests3
39 
Total$606 
1 This limited partnership interest was initially valued at cost and has been adjusted to fair value as determined in good faith by management of the partnership using various factors, and does not meet the requirements for reporting at the net asset value (NAV). The valuation requires significant judgment due to the absence of quoted market prices and the inherent lack of liquidity. This limited partnership has a term expiring in September 2023.
2 Commingled trust fund valuations are based on the NAV of the funds as determined by the fund administrators and reviewed by us. NAV represents the underlying assets owned by the fund, minus liabilities and divided by the number of shares or units outstanding. Generally, for commingled trust funds other than real estate, redemptions are permitted daily with no notice period. The real estate fund is redeemable quarterly with 110 days' notice.
3 These limited partnership interests were initially valued at cost and have been adjusted using NAV per audited financial statements. Investments are generally not eligible for immediate redemption and have original terms averaging 10 to 13 years, although those periods may be extended.
The following table shows how the fair value of the Level 3 assets changed during each of the last two years. There were no transfers of assets between Level 3 and either of the other two levels.
Level 3
Balance as of April 30, 2021
$2 
Return on assets held at end of year— 
Balance as of April 30, 2022
2 
Return on assets held at end of year(1)
Balance as of April 30, 2023
$1 
The following table shows how the total fair value of all pension plan assets changed during each of the last two years. (We do not have assets set aside for postretirement medical or life insurance benefits.) 
 Pension BenefitsMedical and Life
Insurance Benefits
 2022202320222023
Assets at beginning of year$836 $741 $— $— 
Actual return on assets(25)(7)— — 
Retiree contributions— — 1 2 
Company contributions12 18 3 3 
Benefits paid(82)(146)(4)(5)
Assets at end of year$741 $606 $— $— 
We currently expect to contribute $14 to our pension plans and $4 to our postretirement medical and life insurance benefit plans during 2024.
Funded status. The funded status of a plan refers to the difference between its assets and its obligations. The following table shows the funded status of our plans.
 Pension BenefitsMedical and Life
Insurance Benefits
April 30,2022202320222023
Assets$741 $606 $— $— 
Obligations(846)(731)(43)(40)
Funded status$(105)$(125)$(43)$(40)

The funded status is recorded on the accompanying consolidated balance sheets as follows: 
 
Pension Benefits		Medical and Life
Insurance Benefits
April 30,2022202320222023
Other assets$46 $17 $— $— 
Accounts payable and accrued expenses(8)(8)(3)(3)
Accrued pension and other postretirement benefits(143)(134)(40)(37)
Net liability$(105)$(125)$(43)$(40)
Accumulated other comprehensive income (loss), before tax:
Net actuarial gain (loss)$(201)$(192)$(3)$(1)
Prior service credit (cost)(4)(4)2 2 
$(205)$(196)$(1)$1 
The following table compares our pension plans whose accumulated benefit obligations exceed their assets with our pension plans whose assets exceed their accumulated benefit obligations.
 Accumulated
Benefit Obligation		Plan Assets
April 30,2022202320222023
Plans with accumulated benefit obligation in excess of assets$(135)$(131)$— $— 
Plans with assets in excess of accumulated benefit obligation(623)(524)741 606 
Total$(758)$(655)$741 $606 
The following table compares our pension plans whose projected benefit obligations exceed their assets with our pension plans whose assets exceed their projected benefit obligations.
 Projected
Benefit Obligation		Plan Assets
April 30,2022202320222023
Plans with projected benefit obligation in excess of assets$(150)$(190)$— $48 
Plans with assets in excess of projected benefit obligation(696)(541)741 558 
Total$(846)$(731)$741 $606 
As noted above, we have no assets set aside for the postretirement medical or life insurance benefit plans.
Pension cost. The following table shows the components of the pension cost recognized during each of the last three years. The amount for each year includes amortization of the prior service cost/credit and net actuarial loss/gain included in accumulated other comprehensive loss as of the beginning of the year. 
 Pension Benefits
 202120222023
Service cost$26 $26 $20 
Interest cost25 22 32 
Expected return on assets(46)(45)(43)
Amortization of:
Prior service cost (credit)1 1 1 
Net actuarial loss (gain)27 23 9 
Settlement charge— 12 29 
Net cost$33 $39 $48 
We determine the expected return on plan assets by applying our long-term rate of return assumption to the market-related value of plan assets, adjusted by earnings on contributions and benefit payments expected to be made during the year. We calculate the market-related value of plan assets by amortizing actual versus expected returns over five years.
We amortize prior service costs and net actuarial gains or losses on straight-line basis over the average remaining service period of the employees expected to receive benefits under the plan. However, for net actuarial gains or losses, we use a corridor approach that amortizes them only to the extent the gain or loss exceeds 10% of the greater of the projected benefit obligation or market-related value of plan assets.
The settlement charges recognized during 2022 and 2023 were triggered by fiscal year-to-date lump-sum payments under certain pension plans surpassing total annual service and interest cost for those plans.
Other postretirement benefits cost. The following table shows the components of the postretirement medical and life insurance benefits cost that we recognized during each of the last three years. 
 Medical and Life Insurance Benefits
 202120222023
Service cost$1 $1 $1 
Interest cost1 1 1 
Amortization of:
Prior service cost (credit)(3)(2)— 
Net actuarial loss (gain)1 1 — 
Net cost$— $1 $2 
We amortize prior service costs and net actuarial gains or losses on straight-line basis over the average remaining service period of the employees expected to receive benefits under the plan.
Other comprehensive income (loss). Prior service cost/credit and net actuarial loss/gain are recognized in other comprehensive income or loss (OCI) during the period in which they arise. These amounts are later amortized from accumulated OCI into pension and other postretirement benefit cost over future periods as described above. The following table shows the pre-tax effect of these amounts on OCI during each of the last three years.
 Pension BenefitsMedical and Life
Insurance Benefits
 202120222023202120222023
Net actuarial gain (loss)$69 $62 $(29)$1 $5 $2 
Amortization reclassified to earnings:
Prior service cost (credit)1 1 1 (3)(2)— 
Net actuarial loss (gain)27 35 38 1 1 — 
Net amount recognized in OCI$97 $98 $10 $(1)$4 $2 
Assumptions and sensitivity. We use various assumptions to determine the obligations and cost related to our pension and other postretirement benefit plans. The weighted-average assumptions used in computing benefit plan obligations as of the end of the last two years were as follows:
 
Pension Benefits		Medical and Life
Insurance Benefits
 2022202320222023
Discount rate4.36 %4.91 %4.33 %4.86 %
Rate of salary increase4.00 %4.00 %n/an/a
Interest crediting rate3.06 %3.69 %n/an/a
 
The weighted-average assumptions used in computing benefit plan cost during each of the last three years were as follows: 
 Pension BenefitsMedical and Life
Insurance Benefits
 202120222023202120222023
Discount rate for service cost3.49 %3.36 %4.52 %3.59 %3.49 %4.50 %
Discount rate for interest cost2.56 %2.34 %4.12 %2.47 %2.27 %3.96 %
Rate of salary increase4.00 %4.00 %4.00 %n/an/an/a
Interest crediting rate3.07 %3.06 %3.06 %n/an/an/a
Expected return on plan assets6.50 %6.25 %6.25 %n/an/an/a
The assumed discount rates are determined using a yield curve based on the interest rates of high-quality debt securities with maturities corresponding to the expected timing of our benefit payments. The service cost and interest cost components are measured by applying the specific spot rates along the yield curve used to measure the benefit obligation at the beginning of the period.
The assumed rate of salary increase reflects the expected average annual increase in salaries as a result of inflation, merit increases, and promotions over the service period of the plan participants.
The assumed interest crediting is based on the greater of the average yield on 30-year Treasury bonds or the minimum rate specified in the applicable pension plan.
The expected return on plan assets represents the long-term rate of return that we assume will be earned over the life of the pension assets. The assumption reflects expected capital market returns for each asset class, which are based on historical returns, adjusted for the expected effects of diversification.
The assumed health care cost trend rates as of the end of the last two years were as follows: 
 Medical and Life
Insurance Benefits
 20222023
Health care cost trend rate assumed for next year6.10 %7.23 %
Rate to which the cost trend rate is assumed to decline (the ultimate trend rate)4.50 %4.50 %
Year that the rate reaches the ultimate trend rate20302032
Savings plans. We also sponsor various defined contribution benefit plans that together cover substantially all U.S. employees. Employees can make voluntary contributions in accordance with their respective plans, which include a 401(k) tax deferral option. We match a percentage of each employee's contributions in accordance with plan terms. We expensed $12, $13, and $14 for matching contributions during 2021, 2022, and 2023, respectively.
International plans. The information presented above for defined benefit plans and defined contribution benefit plans reflects amounts for U.S. plans only. Information about similar international plans is not presented due to immateriality.