Income Taxes

12 Months Ended

Oct. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The components of the Provision for Income Taxes are as follows: 

	Fiscal Year Ended
In thousands		October 30, 2022		October 31, 2021		October 25, 2020
Current
U.S. Federal		$	67,638	$	171,732	$	142,708
State		20,054		7,541		13,353
Foreign		13,185		9,079		18,293
Total Current		100,877		188,352		174,354
Deferred
U.S. Federal		164,091		23,507		34,408
State		13,638		2,220		4,937
Foreign		(729)		2,950		(7,306)
Total Deferred		177,000		28,677		32,039
Total Provision for Income Taxes		$	277,877	$	217,029	$	206,393

The Company has elected to treat global intangible low taxed income (GILTI) as a period cost.

Deferred Income Taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred income tax liabilities and assets are as follows: 

In thousands	October 30, 2022		October 31, 2021
Deferred Tax Liabilities
Goodwill and Intangible Assets	$	(404,295)	$	(322,822)
Tax over Book Depreciation and Basis Differences	(246,411)		(143,891)
Other, net	(21,467)		(21,967)
Deferred Tax Assets
Pension and Other Post-retirement Benefits	42,794		71,190
Employee Compensation Related Liabilities	65,461		68,133
Marketing and Promotional Accruals	29,045		22,916
Other, net	62,334		50,767
Net Deferred Tax (Liabilities) Assets	$	(472,539)	$	(275,674)

Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows: 

	Fiscal Year Ended
		October 30, 2022		October 31, 2021		October 25, 2020
U.S. Statutory Rate		21.0	%	21.0	%	21.0	%
State Taxes on Income, Net of Federal Tax Benefit		2.4		0.8		1.6
Stock-based Compensation		(1.5)		(1.6)		(3.1)
All Other, net		(0.2)		(0.9)		(1.0)
Effective Tax Rate		21.7	%	19.3	%	18.5	%

As of October 30, 2022, the Company had $271.1 million of undistributed earnings from non-U.S. subsidiaries. The Company maintains all earnings as permanently reinvested. Accordingly, no additional income taxes have been provided for withholding tax, state tax, or other taxes.

Total income taxes paid during fiscal years 2022, 2021, and 2020 were $93.1 million, $167.0 million, and $169.7 million, respectively.

The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2022 and 2021. 

In thousands
Balance as of October 25, 2020	$	33,242
Tax Positions Related to the Current Period
Increases	4,003
Tax Positions Related to Prior Periods
Increases	2,117
Decreases	(4,170)
Settlements	(8,934)
Decreases Related to a Lapse of Applicable Statute of Limitations	(4,166)
Balance as of October 31, 2021	$	22,092
Tax Positions Related to the Current Period
Increases	3,618
Tax Positions Related to Prior Periods
Increases	1,890
Decreases	(1,789)
Settlements	(2,509)
Decreases Related to a Lapse of Applicable Statute of Limitations	(3,782)
Balance as of October 30, 2022	$	19,520

The amount of unrecognized tax benefits, including interest and penalties, is recorded in Other Long-term Liabilities. If recognized as of October 30, 2022, and October 31, 2021, $17.2 million, and $19.6 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with immaterial losses included in expense for fiscal 2022, 2021 and 2020. The amount of accrued interest and penalties at October 30, 2022, and October 31, 2021, associated with unrecognized tax benefits was $2.3 million and $5.0 million, respectively.

The Company is regularly audited by federal and state taxing authorities. The U.S. Internal Revenue Service (I.R.S.) concluded their examinations of fiscal 2019 in the second quarter of fiscal 2021. The I.R.S. has placed the Company in the Bridge phase of the Compliance Assurance Process (CAP) for fiscal 2020. In this phase, the I.R.S. will not accept any disclosures, conduct any reviews, or provide any assurances. The Company has elected to participate in CAP for fiscal years through 2023. The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time.

The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2015. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

The Inflation Reduction Act of 2022 was signed into law on August 16, 2022. The 15% corporate alternative minimum tax will not apply to the Company until fiscal year 2024.