INCOME TAXES

3 Months Ended

Jan. 31, 2023

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Income tax expense for the quarter and year to date periods 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. The Company’s income tax expense may fluctuate due to changes in estimated 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, 2023 and January 31, 2022, income tax expense was $37.7 million and $35.6 million, respectively. The $2.1 million net increase in income tax expense for the three months ended January 31, 2023 was primarily attributable to nondeductible goodwill associated with the Tama Divestiture, net of reduced tax expense on lower pre-tax book income excluding the book gain on the Tama Divestiture. Additionally, in 2022, a $62.4 million book impairment was recorded for the FPS Divestiture for which no tax benefit was recorded.