Income Taxes (Tables)

12 Months Ended

Oct. 31, 2012

Schedule of Income Before Income Tax, Domestic and Foreign

The components of income from continuing operations before income taxes and extraordinary items and the income tax provision (benefit) related to income from all operations in our Consolidated Statements of Income consist of:



Years Ended October 31, (In thousands)	2012		2011		2010
Income (loss) before income taxes:
United States	$	40,650	$	5,449	$	(613	)
Foreign	234,802		187,315		125,039
	$	275,452	$	192,764	$	124,426
Income tax provision	$	26,808	$	17,334	$	11,623

Schedule of Income Tax Provision Related to Income from Continuing Operations

The income tax provision (benefit) related to income from continuing operations in our Consolidated Statements of Income consists of:



Years Ended October 31, (In thousands)	2012			2011			2010
Current:
Federal	$	17,863		$	11,448		$	3,963
State	1,400			606			1,602
Foreign	14,351			9,700			7,813
	33,614			21,754			13,378

Deferred:
Federal	(3,573		)	(1,859		)	(1,731		)
State	(851		)	(270		)	(1,287		)
Foreign	(2,382		)	(2,291		)	1,263
	(6,806		)	(4,420		)	(1,755		)
Income tax provision	$	26,808		$	17,334		$	11,623

Schedule of Provision for Income Taxes Attributable to Income from Operations and Amount Computed by Applying Statutory Federal Income Tax Rate

We reconcile the provision for income taxes attributable to income from operations and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes as follows:



Years Ended October 31, (In thousands)	2012			2011			2010
Computed expected provision for taxes	$	96,408		$	67,468		$	43,549
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(71,282		)	(56,877		)	(33,912		)
State taxes, net of federal income tax benefit	294			218			206
Research and development credit	(131		)	(1,183		)	(525		)
Incentive stock option compensation and non-deductible employee compensation	347			(119		)	(50		)
Tax accrual adjustment	665			7,167			2,640
Other, net	507			660			(285		)
Actual provision for income taxes	$	26,808		$	17,334		$	11,623

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are:



October 31, (In thousands)	2012			2011
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	1,073		$	1,017
Inventories	4,916			4,325
Litigation settlements	199			183
Accrued liabilities, reserves and compensation accruals	41,760			31,856
Restricted stock	19,395			19,341
Net operating loss carryforwards	3,563			8,159
Plant and equipment	3,999			2,778
Research and experimental expenses - Section 59(e)	6,815			8,311
Tax credit carryforwards	8,700			7,629
Total gross deferred tax assets	90,420			83,599
Less valuation allowance	(1,107		)	—
Deferred tax assets	89,313			83,599
Deferred tax liabilities:
Tax deductible goodwill	(19,038		)	(16,804		)
Transaction cost	(1,144		)	(1,144		)
Foreign deferred tax liabilities	(19,365		)	(11,005		)
Other intangible assets	(24,548		)	(15,610		)
Bonus adjustments under new accounting method	(2,601		)	(3,901		)
Total gross deferred tax liabilities	(66,696		)	(48,464		)
Net deferred tax assets	$	22,617		$	35,135

Schedule of Changes in Gross Unrecognized Tax Benefits

The aggregated changes in the balance of gross unrecognized tax benefits were as follows:



(In millions)
Balance at October 31, 2010	$	19.7
Increase from prior year's UTB's	—
Increase from current year's UTB's	8.9
UTB (decrease) from tax authorities' settlements	—
UTB (decrease) from expiration of statute of limitations	(1.2		)
Increase of unrecorded UTB's	—
Balance at October 31, 2011	27.4
(Decrease) from prior year's UTB's	(1.0		)
Increase from current year's UTB's	4.6
UTB (decrease) from tax authorities' settlements	(0.9		)
UTB (decrease) from expiration of statute of limitations	(2.0		)
Increase of unrecorded UTB's	—
Balance at October 31, 2012	$	28.1