Intercompany transfer of assets

  
Our consolidated effective tax rate usually differs from current statutory rates due to the recognition of amounts for events or transactions with no tax consequences. The following table reconciles our effective tax rate to the federal statutory tax rate in the United States: 

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|   | Percent of Income Before Taxes  |
|   | 2020 |  | 2021 |  | 2022 |
| U.S. federal statutory rate | 21.0  | % |  | 21.0  | % |  | 21.0  | % |
| State taxes, net of U.S. federal tax benefit | 1.7  | % |  | 2.4  | % |  | 1.0  | % |
| Income taxed at other than U.S. federal statutory rate | —  | % |  | 0.3  | % |  | 1.3  | % |
| Prior intercompany sales taxed at higher than current U.S. federal statutory rate | —  | % |  | 0.2  | % |  | 2.0  | % |
| Tax benefit from foreign-derived sales | (2.0  | %) |  | (1.7  | %) |  | (1.8) | % |
|  |  |  |  |  |  |
| Adjustments related to prior years | (1.1  | %) |  | (0.2  | %) |  | 0.7  | % |
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| Excess tax benefits from stock-based awards | (2.0  | %) |  | (1.0  | %) |  | (0.5) | % |
| Tax rate changes | —  | % |  | —  | % |  | 0.4  | % |
| Intercompany transfer of assets | —  | % |  | (4.0  | %) |  | —  | % |
|  |  |  |  |  |  |
| Other, net | 0.4  | % |  | (0.5  | %) |  | 0.7  | % |
| Effective rate | 18.0  | % |  | 16.5  | % |  | 24.8  | % |

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

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|  |  |  |  |  |  |  |  |  |  |  |  |
| April 30, | 2021 |  | 2022 |
| Deferred tax assets: |  |  |  |
| Postretirement and other benefits | $ | 90  |  |  | $ | 69  |  |
| Accrued liabilities and other | 47  |  |  | 36  |  |
| Inventories | 30  |  |  | 40  |  |
| Lease liabilities | 17  |  |  | 20  |  |
| Derivative instruments | 5  |  |  | —  |  |
| Loss and credit carryforwards | 63  |  |  | 69  |  |
| Total deferred tax assets | 252  |  |  | 234  |  |
| Valuation allowance | (20) |  |  | (27) |  |
| Total deferred tax assets, net of valuation allowance | 232  |  |  | 207  |  |
| Deferred tax liabilities: |  |  |  |
| Intangible assets | (214) |  |  | (219) |  |
| Property, plant, and equipment | (89) |  |  | (87) |  |
| Right-of-use assets | (17) |  |  | (20) |  |
| Derivative instruments | —  |  |  | (11) |  |
| Other | (11) |  |  | (15) |  |
| Total deferred tax liabilities | (331) |  |  | (352) |  |
| Net deferred tax liability | $ | (99) |  |  | $ | (145) |  |

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:

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|  |  | April 30, 2021 |  | April 30, 2022 |  |  |
|  |  | Gross Amount |  | Deferred Tax Asset |  | Valuation Allowance |  | Gross Amount |  | Deferred Tax Asset |  | Valuation Allowance |  | Expiration (as of April 30, 2022) |
| U.S. |  | $ | 99  |  |  | $ | 15  |  |  | $ | (5) |  |  | $ | 53  |  |  | $ | 19  |  |  | $ | (8) |  |  | Various1 |
| Foreign |  | 228  |  |  | 48  |  |  | (15) |  |  | 241  |  |  | 50  |  |  | (19) |  |  | Various2 |
|  |  | $ | 327  |  |  | $ | 63  |  |  | $ | (20) |  |  | $ | 294  |  |  | $ | 69  |  |  | $ | (27) |  |  |  |
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1As of April 30, 2022, the deferred tax asset amount includes credit carryforwards of $8 that do not expire and loss and credit carryforwards of $11 that expire in varying amounts from 2023 to 2039.2As of April 30, 2022, the deferred tax asset includes loss carryforwards of $19 that do not expire and $31 that expire in varying amounts over the next 9 years.  
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