INCOME TAXES

3 Months Ended

Jan. 31, 2020

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company completed the Caraustar Acquisition on February 11, 2019 and has recorded a net deferred tax liability of $138.8 million, which is primarily related to intangible assets that cannot be amortized for tax purposes. See Note 2 to the interim condensed consolidated financial statements for additional information.

Income tax expense for the quarter and year to date was computed in accordance with ASC 740-270 "Income Taxes - Interim Reporting." Under this method, losses from jurisdictions for which a valuation allowance has been provided have not been included in the amount to which the ASC 740-270 rate was applied. Income tax expense of the Company fluctuates primarily due to changes in losses and income from jurisdictions for which a valuation allowance has been provided, the timing of recognition of the related tax expense under ASC 740-270, and the impact of discrete items in the respective quarter.

For the three months ended January 31, 2020, income tax expense was $11.4 million compared to $20.0 million for the three months ended January 31, 2019. The decrease in income tax expense for the three months ended January 31, 2020 was primarily attributable to changes in the expected mix of earnings among tax jurisdictions, the favorable impacts of the reduction of interest addbacks, additional domestic tax credits extended to the current fiscal year, and discrete items.