Income Taxes (Tables)

12 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Income Tax Expense from Continuing Operations

Income tax expense from continuing operations for each of the fiscal years consisted of:

In Thousands	2014			2013			2012
Current
U.S. Federal	$	28,433		$	27,584		$	27,999
State		1,790			4,075			196
Foreign		28,944			24,044			20,821
		59,167			55,703			49,016
Deferred
U.S. Federal		(1,691	)		(3,105	)		(2,230	)
State		(33	)		(1,592	)		793
Foreign		(13,169	)		(17,115	)		(19,763	)
		(14,893	)		(21,812	)		(21,200	)
Income tax expense	$	44,274		$	33,891		$	27,816

U.S. and Foreign Components of Earnings from Continuing Operations Before Income Taxes

U.S. and foreign components of earnings from continuing operations before income taxes for each of the fiscal years were:

In Thousands	2014		2013		2012
U.S.	$	103,339	$	100,859	$	97,855
Foreign		107,495		105,756		44,155
Earnings from continuing operations before income taxes	$	210,834	$	206,615	$	142,010

Components of Deferred Tax Assets (Liabilities)

Primary components of the Company’s deferred tax assets (liabilities) at the end of the fiscal years resulted from temporary tax differences associated with the following:

In Thousands	2014			2013
Reserves and liabilities	$	55,906		$	60,397
NOL carryforwards		110			879
Tax credit carryforwards		31,082			29,862
Employee benefits		13,086			14,974
Retirement benefits		10,431			2,759
Non-qualified stock options		11,063			12,618
Hedging activities		5,091			-
Other		856			650
Total deferred tax assets		127,625			122,139
Depreciation and amortization		(15,925	)		(18,969	)
Intangibles and amortization		(136,116	)		(173,524	)
Deferred costs		(5,453	)		(4,535	)
Hedging activities		-			(22	)
Other		(1,083	)		(1,398	)
Total deferred tax liabilities		(158,577	)		(198,448	)
Net deferred tax liabilities	$	(30,952	)	$	(76,309	)

Reconciliation of U.S. Federal Statutory Income Tax Rate to Effective Income Tax Rate

A reconciliation of the U.S. federal statutory income tax rate to the effective income tax rate for each of the fiscal years was as follows:

	2014			2013			2012
U.S. statutory income tax rate		35.0	%		35.0	%		35.0	%
State income taxes		0.5	%		0.6	%		0.6	%
Foreign taxes		-13.4	%		-11.3	%		-17.4	%
Goodwill impairment		0.0	%		0.6	%		12.9	%
Penalties		0.4	%		1.7	%		0.0	%
Difference in foreign tax rates		1.4	%		-0.7	%		-1.1	%
Domestic manufacturing deduction		-1.3	%		-1.3	%		-2.1	%
Research & development credits		-2.5	%		-3.4	%		-3.4	%
Net change in tax reserves		0.1	%		-2.9	%		0.5	%
Valuation allowance		0.0	%		0.0	%		-1.0	%
Change in foreign tax rates and laws		0.0	%		-1.5	%		-3.4	%
Other, net		0.8	%		-0.4	%		-1.0	%
Effective income tax rate		21.0	%		16.4	%		19.6	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

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

In Thousands
Unrecognized tax benefits as of October 25, 2013	$	12,008
Unrecognized gross benefit change:
Gross increase due to prior period adjustments		183
Gross decrease due to prior period adjustments		(606	)
Gross increase due to current period adjustments		868
Gross decrease due to a lapse with taxing authorities		(1,226	)
Total change in unrecognized gross benefit		(781	)
Unrecognized tax benefits as of October 31, 2014	$	11,227
Unrecognized tax benefits that, if recognized, would impact the effective tax rate	$	10,816
Statement of operations:
Total amount of interest income (expense) included in income tax expense	$	109
Recognized in the statement of financial position:
Total amount of accrued interest included in income taxes payable	$	986

During the next 12 months, it is reasonably possible that approximately $3.3 million of previously unrecognized tax benefits related to operating losses and tax credits could decrease as a result of settlement of examinations and/or the expiration of statutes of limitations.  The Company recognizes interest related to unrecognized tax benefits in income tax expense.

Income Tax Examinations by Tax Authorities in its Major Tax Jurisdictions

The Company is no longer subject to income tax examinations by tax authorities in its major tax jurisdictions as follows:

	Years No Longer
Tax Jurisdiction	Subject to Audit
U.S. Federal	2008 and prior
Canada	2006 and prior
France	2010 and prior
United Kingdom	2011 and prior