Income Taxes (Tables)

12 Months Ended

Oct. 31, 2016

The provision for income taxes consists of the following (Dollars in millions):

The following is a reconciliation of the provision for income taxes based on the federal statutory rate to the Company’s effective income tax rate:



For the years ended October 31,	2016		2015		2014
Federal statutory rate	35.00	%	35.00	%	35.00	%
Impact of foreign tax rate differential	(11.15	)%	(10.10	)%	(2.40	)%
State and local taxes, net of federal tax benefit	2.19	%	2.80	%	4.20	%
Net impact of changes in valuation allowances	1.91	%	3.00	%	12.70	%
Venezuela balance sheet remeasurement	—	%	5.90	%	—	%
Non-deductible write-off and impairment of goodwill and other intangible assets	7.37	%	2.50	%	15.60	%
Unrecognized tax benefits	4.84	%	2.50	%	7.20	%
Permanent book-tax differences	(4.78	)%	(0.50	)%	(3.10	)%
Withholding taxes	4.64	%	2.70	%	2.90	%
Other items, net	7.08	%	(1.60	)%	0.70	%
	47.10	%	42.20	%	72.80	%

The components of the Company’s deferred tax assets and liabilities as of October 31 for the years indicated were as follows (Dollars in millions):



	2016			2015
Deferred Tax Assets
Net operating loss and other carryforwards	$	83.0		$	80.8
Pension liabilities	57.0			53.6
Insurance operations	2.7			3.5
Incentive liabilities	8.0			5.4
Environmental reserves	1.3			0.4
Inventories	7.8			6.5
State income taxes	7.0			7.4
Postretirement benefit obligations	3.1			3.5
Other	9.1			11.3
Interest accrued	1.2			1.6
Allowance for doubtful accounts	1.9			3.4
Restructuring reserves	1.1			6.0
Deferred compensation	3.8			2.9
Foreign tax credits	2.4			2.3
Vacation accruals	1.5			1.5
Workers compensation accruals	6.7			3.5
Total Deferred Tax Assets	197.6			193.6
Valuation allowance	(92.1		)	(89.5		)
Net Deferred Tax Assets	105.5			104.1
Deferred Tax Liabilities
Properties, plants and equipment	86.5			84.7
Goodwill and other intangible assets	80.4			80.1
Foreign income inclusion	1.1			1.1
Foreign exchange gains	5.7			6.1
Timberland transactions	115.8			116.2
Total Deferred Tax Liabilities	289.5			288.2
Net Deferred Tax Liability	$	(184.0	)	$	(184.1	)

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



	2016			2015			2014
Balance at November 1	$	29.6		$	34.3		$	30.5
Increases in tax positions for prior years	5.7			8.5			5.7
Decreases in tax positions for prior years	(10.5		)	(2.2		)	(8.2		)
Increases in tax positions for current years	6.9			6.2			10.3
Settlements with taxing authorities	—			(5.7		)	(0.6		)
Lapse in statute of limitations	(2.6		)	(6.2		)	(0.8		)
Currency translation	0.6			(5.3		)	(2.6		)
Balance at October 31	$	29.7		$	29.6		$	34.3