v3.26.1
Income Taxes
 12 Months Ended
Apr. 30, 2026
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
We incur income taxes on the earnings of our U.S. and foreign operations. 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:
Year Ended April 30,202420252026
United States$917 $826 $682 
Foreign381 255 203 
$1,298 $1,081 $885 
The income shown above was determined according to GAAP. Because those standards sometimes differ from the tax rules used to calculate taxable income, there are differences between (a) the amount of taxable income and pre-tax financial income for a year and (b) the tax bases of assets or liabilities and their amounts as recorded in our financial statements. As a result, we recognize a current tax liability for the estimated income tax payable on the current tax return, deferred tax liabilities (tax on income that will be recognized on future tax returns), and deferred tax assets (tax from deductions that will be recognized on future tax returns) for the estimated effects of the differences mentioned above.
Total income tax expense for a year includes the tax associated with the current tax return (current tax expense) and the change in the net deferred tax asset or liability (deferred tax expense). Our total income tax expense for each of the last three years was as follows:
Year Ended April 30,202420252026
Current:
U.S. federal$150 $173 $125 
Foreign81 73 68 
State and local25 5 14 
256 251 207 
Deferred:
U.S. federal16 (45)(16)
Foreign(5)19 (18)
State and local7 (13)(3)
18 (39)(37)
$274 $212 $170 
On July 4, 2025, the One Big Beautiful Bill Act (OBBBA) was signed into law in the United States, which encompasses a broad range of tax reform provisions. The OBBBA did not have a material impact on our effective tax rate for 2026.
The OECD’s Pillar Two model rules, which establish a 15% global minimum tax, are now effective in jurisdictions with enacted legislation, but did not materially impact our 2026 financial results. While we continue to evaluate the updated model rules approved by the OECD Inclusive Framework in January 2026, we do not currently anticipate a material impact on our financial results or effective tax rate.
We adopted ASU 2023-09 on a prospective basis beginning with the year ended April 30, 2026. The following table reconciles the United States statutory tax amount and rate to our consolidated tax expense and effective tax rate for 2026.
2026
Year Ended April 30,AmountPercentage
U.S. federal statutory rate$186 21.0 %
State taxes, net of U.S. federal tax benefit1
9 1.0 %
Foreign tax effects:
Spain(16)(1.7)%
Other foreign jurisdictions25 2.9 %
Effects of cross-border tax laws:
Tax benefit from foreign-derived sales(25)(2.9)%
Subpart F income, net of credits(4)(0.5)%
Other cross border effects(12)(1.3)%
Tax credits(6)(0.7)%
Valuation allowances9 1.0 %
Nontaxable or nondeductible items5 0.6 %
Changes in unrecognized tax benefits(2)(0.3)%
Other, net1 0.2 %
Effective rate$170 19.3%
1Tennessee comprised more than 50% of the state taxes, net of U.S. federal income tax benefit.
The reconciliation of the federal statutory tax rate in the United States to our effective tax rate for 2024 and 2025 in accordance with guidance prior to the adoption of ASU 2023-09 was as follows:
 Percent of Income Before Taxes
Year Ended April 30,20242025
U.S. federal statutory rate21.0%21.0%
State taxes, net of U.S. federal tax benefit1.3%1.7%
Foreign tax effects0.5%1.5%
Tax benefit from foreign-derived sales(1.7%)(2.8%)
Business divestitures
(0.7%)—%
Adjustments related to prior years—%(1.7%)
Excess tax benefits from stock-based awards(0.1%)—%
Tax rate changes0.4%—%
Valuation allowances0.1%1.4%
Other, net0.4%(1.5%)
Effective rate21.2%19.6%
Our income tax payments (net of refunds) during 2026, by jurisdiction, were as follows:
Year Ended April 30,2026
U.S. federal1
$149 
State17 
Foreign:
Mexico26 
Germany11 
Other foreign jurisdictions29 
Total$232 
1Includes $37 paid to a third party for a transferable tax credit.
Deferred tax assets and liabilities as of the end of each of the last two years were as follows:
April 30,20252026
Deferred tax assets:
Postretirement and other benefits$65 $63 
Accrued liabilities and other44 53 
Inventories42 54 
Lease liabilities27 29 
Derivative instruments2 2 
Loss and credit carryforwards57 64 
Interest expense limitation carryforwards
23 21 
Total deferred tax assets260 286 
Valuation allowance(35)(38)
Total deferred tax assets, net of valuation allowance225 248 
Deferred tax liabilities:
Intangible assets(294)(285)
Property, plant, and equipment(96)(100)
Right-of-use assets(27)(29)
Other(2)(6)
Total deferred tax liabilities(419)(420)
Net deferred tax liability$(194)$(172)
Details of the loss, credit, and interest expense limitation carryforwards and related valuation allowances as of the end of each of the last two years are as follows:
20252026
April 30,Gross AmountDeferred Tax AssetValuation AllowanceGross AmountDeferred Tax AssetValuation Allowance
Loss and credit carryforwards:
U.S.$68 $31 $(10)$42 $38 
1
$(22)
Foreign135 26 (15)128 26 
2
(14)
203 57 (25)170 64 (36)
Interest expense limitation carryforwards:
Foreign
91 23 (10)86 21 
3
(2)
Total carryforwards
$294 $80 $(35)$256 $85 $(38)
1As of April 30, 2026, the deferred tax asset amount includes credit carryforwards of $8 that do not expire and loss and credit carryforwards of $30 that expire in varying amounts from 2028 to 2051.
2As of April 30, 2026, the deferred tax asset includes loss carryforwards of $23 that do not expire and $3 that expire in varying amounts over the next 25 years.
3The interest expense limitation carryforwards do not expire.
As of April 30, 2026, we continue to maintain indefinite reinvestment assertions for most undistributed earnings of our foreign subsidiaries, and no deferred taxes have been provided on the earnings. For undistributed earnings not considered indefinitely reinvested, deferred tax liabilities have been provided for any applicable income taxes and withholding taxes payable in various countries, which are not significant. We have also asserted that other outside basis differences for our foreign subsidiaries, which primarily relate to differences between U.S. GAAP and tax basis that arose through purchase accounting, are reinvested indefinitely.
At April 30, 2026, we had $11 of gross unrecognized tax benefits, $8 of which would reduce our effective income tax rate if recognized. A reconciliation of the beginning and ending unrecognized tax benefits is as follows: 
202420252026
Unrecognized tax benefits at beginning of year$21 $14 $13 
Additions for tax positions provided in prior periods1 — — 
Additions for tax positions provided in current period2 2 1 
Decreases for tax positions provided in prior years(3)— (2)
Settlements of tax positions in the current period(3)— — 
Lapse of statutes of limitations(4)(3)(1)
Unrecognized tax benefits at end of year$14 $13 $11 
We file federal income tax returns in the United States and also file tax returns in various state, local and foreign jurisdictions. The major jurisdictions where we are subject to examination by tax authorities include the United States, Brazil, Mexico, and Türkiye. We have tax years open for examination from 2013 and forward. Various tax examinations are currently in progress in the United States, for both federal and states, and in certain foreign jurisdictions. In the United States, we are participating in the Internal Revenue Service’s Compliance Assurance Program for our fiscal 2026 tax year.