Income Taxes

12 Months Ended

Oct. 29, 2023

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 29, 2023		October 30, 2022		October 31, 2021
Current
U.S. Federal		$	161,016	$	67,638	$	171,732
State		20,166		20,054		7,541
Foreign		7,576		13,185		9,079
Total Current		188,758		100,877		188,352
Deferred
U.S. Federal		23,221		164,091		23,507
State		8,602		13,638		2,220
Foreign		(29)		(729)		2,950
Total Deferred		31,794		177,000		28,677
Total Provision for Income Taxes		$	220,552	$	277,877	$	217,029

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 29, 2023		October 30, 2022
Deferred Tax Liabilities
Goodwill and Intangible Assets	$	(477,282)	$	(404,295)
Tax over Book Depreciation and Basis Differences	(233,802)		(246,411)
Other, net	(33,105)		(21,467)
Deferred Tax Assets
Pension and Other Post-retirement Benefits	42,952		42,794
Employee Compensation Related Liabilities	65,958		65,461
Marketing and Promotional Accruals	16,972		29,045
Inventory	46,856		10,368
Other, net	75,562		51,966
Net Deferred Tax (Liabilities) Assets	$	(495,889)	$	(472,539)

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

	Fiscal Year Ended
		October 29, 2023		October 30, 2022		October 31, 2021
U.S. Statutory Rate		21.0	%	21.0	%	21.0	%
State Taxes on Income, Net of Federal Tax Benefit		2.5		2.4		0.8
Stock-based Compensation		(0.1)		(1.5)		(1.6)
Foreign-derived Intangible Income Deduction		(1.3)		(0.4)		(0.4)
All Other, net		(0.3)		0.2		(0.5)
Effective Tax Rate		21.8	%	21.7	%	19.3	%

As of October 29, 2023, the Company had $299.3 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 2023, 2022, and 2021 were $205.0 million, $93.1 million, and $167.0 million, respectively.

The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2023 and 2022. 

In thousands
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
Tax Positions Related to the Current Period
Increases	3,876
Tax Positions Related to Prior Periods
Increases	2,131
Decreases	(1,708)
Settlements	(811)
Decreases Related to a Lapse of Applicable Statute of Limitations	(3,881)
Balance as of October 29, 2023	$	19,127

Unrecognized tax benefits, including interest and penalties, are recorded in Other Long-term Liabilities. If recognized as of October 29, 2023 and October 30, 2022, $17.0 million, and $17.2 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in Provision for Income Taxes, with immaterial losses included during fiscal 2023, 2022 and 2021. The amount of accrued interest and penalties at October 29, 2023 and October 30, 2022, associated with unrecognized tax benefits was $2.4 million and $2.3 million, respectively.

The Company is regularly audited by federal and state taxing authorities. The IRS concluded its examination of fiscal 2021 in the second quarter of fiscal 2023. Previously, the IRS placed the Company in the Bridge phase of the Compliance Assurance Process (CAP) for fiscal 2020. In this phase, the IRS 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 IRS 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 minimum tax will apply to the Company in fiscal year 2024.