Income Taxes (Tables)

12 Months Ended

Oct. 31, 2016

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 millions)	2016		2015		2014
Income before income taxes:
United States	$	31.5	$	31.9	$	32.5
Foreign	264.1		183.6		264.0
	$	295.6	$	215.5	$	296.5
Income tax provision	$	20.7	$	10.3	$	24.7

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 millions)	2016			2015			2014
Current:
Federal	$	14.6		$	0.2		$	23.0
State	1.3			1.2			1.1
Foreign	15.5			3.3			16.6
	31.4			4.7			40.7

Deferred:
Federal	(3.9		)	12.0			(5.3		)
State	(0.7		)	(0.5		)	(0.9		)
Foreign	(6.1		)	(5.9		)	(9.8		)
	(10.7		)	5.6			(16.0		)
Income tax provision	$	20.7		$	10.3		$	24.7

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 millions)	2016			2015			2014
Computed expected provision for taxes	$	103.5		$	75.4		$	103.8
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(81.2		)	(72.6		)	(85.5		)
State taxes, net of federal income tax benefit	1.2			1.4			0.8
Foreign source income subject to United States tax	—			—			0.5
Research and development credit	(1.2		)	(0.7		)	(0.1		)
Incentive stock option compensation and non-deductible employee compensation	0.5			0.4			0.4
Tax accrual adjustment	(5.0		)	3.8			3.8
Other, net	2.9			2.6			1.0
Actual provision for income taxes	$	20.7		$	10.3		$	24.7

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 millions)	2016			2015
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	3.3		$	1.3
Inventories	6.2			4.9
Litigation settlements	0.5			0.2
Accrued liabilities, reserves and compensation accruals	50.3			43.1
Share-based compensation expenses	24.5			26.4
Net operating loss carryforwards	2.7			2.8
Plant and equipment	0.4			4.4
Research and experimental expenses - Section 59(e)	6.7			2.6
Tax credit carryforwards	1.8			1.1
Total gross deferred tax assets	96.4			86.8
Less valuation allowance	(13.3		)	(13.4		)
Deferred tax assets	83.1			73.4
Deferred tax liabilities:
Tax deductible goodwill	(29.5		)	(26.5		)
Transaction costs	(1.1		)	(1.1		)
Foreign deferred tax liabilities	(5.6		)	(6.6		)
Other intangible assets	(31.2		)	(24.0		)
Total gross deferred tax liabilities	(67.4		)	(58.2		)
Net deferred tax assets	$	15.7		$	15.2

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, 2014	$	31.4
Increase from prior year's UTB's	—
Increase from current year's UTB's	18.7
UTB (decrease) from expiration of statute of limitations	(9.8		)
Balance at October 31, 2015	40.3
Increase from prior year's UTB's	4.5
Increase from current year's UTB's	6.7
UTB (decrease) from expiration of statute of limitations	(11.6		)
Balance at October 31, 2016	$	39.9