Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

Income Taxes

Provision for Income Taxes by Taxing Jurisdiction and by Significant Component

The provision for income taxes by taxing jurisdiction and by significant component consisted of the following (in millions of dollars):

	2021		2020		2019
Current:
U.S.:
Federal	$	231.4	$	273.2	$	351.1
State		15.2		9.0		1.9
Foreign		37.2		27.5		29.0
Total current		283.8		309.7		382.0
Deferred:
U.S.:
Federal		(69.7)		(179.1)		(279.9)
State		2.2		(4.1)		(.6)
Foreign		(15.8)		7.6		(6.0)
Total deferred		(83.3)		(175.6)		(286.5)
Provision for income taxes	$	200.5	$	134.1	$	95.5

Comparison of Statutory and Effective Income Tax Provision

A comparison of the statutory and effective income tax provision and reasons for related differences follows (in millions of dollars):

	2021		2020		2019
U.S. federal income tax provision at a statutory rate (21 percent)	$	190.8	$	116.9	$	107.7
Increase (decrease) resulting from:
Net deferred tax liability remeasurement						4.8
Deemed earnings repatriation tax						(13.9)
Tax rates on foreign earnings		5.5		5.8		4.4
State and local income taxes, net of federal income tax benefit		13.7		3.8		1.0
Other - net		(9.5)		7.6		(8.5)
Provision for income taxes	$	200.5	$	134.1	$	95.5

Analysis of Deferred Income Tax Assets and Liabilities

Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of deferred income tax assets and liabilities at October 31, 2021 and November 1, 2020 was as follows (in millions of dollars):

	2021				2020
	Deferred		Deferred		Deferred		Deferred
	Tax		Tax		Tax		Tax
	Assets		Liabilities		Assets		Liabilities
Lease transactions			$	310.4			$	404.6
Tax over book depreciation	$	1.1						3.8
Deferred retail note finance income				1.0				.8
Accrual for retirement and other benefits		4.8			$	6.2
Accrual for other employee benefits		15.9				12.1
Allowance for credit losses		31.9				37.1
Tax loss and tax credit carryforwards		18.7				25.3
Federal taxes on deferred state tax deductions		7.4				10.7
Miscellaneous accruals and other		16.4		8.2		13.5		4.5
Less valuation allowances		(9.0)				(10.0)
Deferred income tax assets and liabilities	$	87.2	$	319.6	$	94.9	$	413.7

Reconciliation of Total Amounts of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits at October 31, 2021, November 1, 2020, and November 3, 2019 was as follows (in millions of dollars):

	2021		2020		2019
Beginning of year balance	$	33.3	$	32.5	$	36.3
Increases to tax positions taken during the current year		11.2		7.4		6.9
Increases to tax positions taken during prior years		1.4		3.1		.8
Decreases to tax positions taken during prior years		(5.8)		(4.9)		(7.1)
Decreases due to lapse of statute of limitations		(3.7)		(4.8)		(4.4)
Settlements		(1.5)
End of year balance	$	34.9	$	33.3	$	32.5