Income Taxes (Tables)

12 Months Ended

Oct. 31, 2014

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 related to income from all operations in our Consolidated Statements of Income consist of:



Years Ended October 31, (In thousands)	2014		2013		2012
Income before income taxes:
United States	$	32,554	$	38,911	$	40,650
Foreign	263,980		273,360		234,802
	$	296,534	$	312,271	$	275,452
Income tax provision	$	24,705	$	15,365	$	26,808

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)	2014			2013			2012
Current:
Federal	$	22,988		$	21,605		$	17,863
State	1,127			1,053			1,400
Foreign	16,595			9,895			14,351
	40,710			32,553			33,614

Deferred:
Federal	(5,278		)	(8,058		)	(3,573		)
State	(871		)	(815		)	(851		)
Foreign	(9,856		)	(8,315		)	(2,382		)
	(16,005		)	(17,188		)	(6,806		)
Income tax provision	$	24,705		$	15,365		$	26,808

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)	2014			2013			2012
Computed expected provision for taxes	$	103,787		$	109,295		$	96,408
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(85,503		)	(97,002		)	(71,282		)
State taxes, net of federal income tax benefit	525			525			294
Foreign source income subject to United States tax	796			294			—
Research and development credit	(126		)	(2,066		)	(131		)
Incentive stock option compensation and non-deductible employee compensation	441			371			347
Tax accrual adjustment	3,786			2,854			665
Other, net	999			1,094			507
Actual provision for income taxes	$	24,705		$	15,365		$	26,808

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)	2014			2013
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	1,355		$	1,145
Inventories	4,442			4,812
Litigation settlements	116			184
Accrued liabilities, reserves and compensation accruals	38,108			36,377
Restricted stock	24,677			19,925
Net operating loss carryforwards	6,245			3,555
Plant and equipment	5,701			5,514
Research and experimental expenses - Section 59(e)	3,822			5,318
Tax credit carryforwards	11,623			11,091
Total gross deferred tax assets	96,089			87,921
Less valuation allowance	(14,506		)	(968		)
Deferred tax assets	81,583			86,953
Deferred tax liabilities:
Tax deductible goodwill	(24,207		)	(21,575		)
Transaction cost	(1,144		)	(1,144		)
Foreign deferred tax liabilities	(41,942		)	(10,179		)
Other intangible assets	(27,880		)	(20,195		)
Bonus adjustments under new accounting method	—			(1,300		)
Total gross deferred tax liabilities	(95,173		)	(54,393		)
Net deferred tax (liabilities) assets	$	(13,590	)	$	32,560

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, 2012	$	28.1
(Decrease) from prior year's UTB's	(1.3		)
Increase from current year's UTB's	6.4
UTB (decrease) from expiration of statute of limitations	(6.8		)
Balance at October 31, 2013	26.4
Increase from prior year's UTB's	2.5
Increase from current year's UTB's	6.0
UTB (decrease) from expiration of statute of limitations	(3.5		)
Balance at October 31, 2014	$	31.4