Income Taxes

12 Months Ended

Oct. 31, 2025

Income Tax Disclosure [Abstract]

Income Taxes

Note 6. Income Taxes

Components of income before income taxes:

Years Ended October 31, (In millions)	2025		2024		2023
Income before income taxes:
United States	$	(143.0)	$	(87.1)	$	(135.7)
Foreign	709.5		669.4		548.6
	$	566.5	$	582.3	$	412.9

Components of provision for income taxes:

Years Ended October 31, (In millions)	2025		2024		2023
Current:
Federal	$	28.8	$	38.2	$	37.3
State	3.8		1.3		3.7
Foreign	23.8		31.6		33.0
Total current provision for income taxes	56.4		71.1		74.0
Deferred:
Federal	(5.1)		(19.6)		(36.7)
State	(1.5)		0.5		(7.5)
Foreign	141.8		138.0		88.9
Total deferred provision for income taxes	135.2		118.9		44.7
Total provision for income taxes	$	191.6	$	190.0	$	118.7

Reconciliation between the expected provision for income taxes at the U.S. federal statutory rate and the provision for income taxes:

Years Ended October 31, (In millions)	2025		2024		2023
Provision for income taxes at United States statutory tax rate	$	118.9	$	122.3	$	86.7
(Decrease) increase in taxes resulting from:
Foreign earnings in jurisdictions with different tax rates	20.5		27.8		7.0
Foreign earnings subject to United States tax	50.7		45.5		34.3
Excess tax benefits from share-based compensation	(0.3)		(5.1)		(2.4)
Changes in valuation allowance	10.1		—		—
Changes in unrecognized tax benefits	(12.5)		0.6		—
State tax provision	1.0		1.2		(4.2)
Nontaxable or nondeductible items	9.2		9.4		0.1
Prior year tax returns	(2.4)		(6.3)		0.7
Other, net	(3.6)		(5.4)		(3.5)
Provision for income taxes	$	191.6	$	190.0	$	118.7

Components of deferred tax assets and liabilities:

Years Ended October 31, (In millions)	2025		2024
Deferred tax assets:
Inventory	$	55.6	$	43.0
Employee compensation and benefits	32.7		34.2
Lease liabilities	49.3		43.0
Accrued liabilities	90.0		89.4
Net operating loss carryforwards	250.9		229.6
Foreign goodwill	938.8		1,129.5
Foreign intangible assets	859.4		817.9
Other deferred tax assets	63.4		59.5
Total gross deferred tax assets	2,340.1		2,446.1
Less: valuation allowance	(32.8)		(23.3)
Deferred tax assets	2,307.3		2,422.8
Deferred tax liabilities:
Property, plant and equipment	(67.8)		(51.7)
Right of use assets	(45.5)		(40.6)
U.S. goodwill	(52.7)		(44.5)
U.S. intangible assets	(115.7)		(130.4)
Other deferred tax liabilities	(41.4)		(41.3)
Total gross deferred tax liabilities	(323.1)		(308.5)
Net deferred tax assets	$	1,984.2	$	2,114.3

Changes in valuation allowance:

Years Ended October 31, (In millions)	2025		2024		2023
Beginning balance	$	23.3	$	20.7	$	60.1
Increases	16.8		2.8		2.6
Decreases	(7.3)		(0.2)		(42.0)
Ending balance	$	32.8	$	23.3	$	20.7

In assessing the realizability of deferred tax assets, the Company analyzes the likelihood that the tax benefit of some or all deferred tax assets will not be realized. This analysis considers historical taxable income, projected reversal of deferred tax liabilities, projected taxable income, and tax planning strategies. Based upon this analysis, it is more likely than not that the tax benefit from all deferred tax assets, net of valuation allowance, will be realized.

As of October 31, 2025, the Company had federal net operating loss carryforwards of $73.5 million and state net operating loss carryforwards of $87.5 million. Federal net operating loss carryforwards of $19.8 million expire on various dates from fiscal 2026 through fiscal 2038 and $53.7 million do not expire. The state net operating loss carryforwards expire on various dates from fiscal 2026 through fiscal 2044.

The remaining transition tax to be remitted from the U.S. Tax Cuts and Jobs Act of 2017 is $36.9 million as of October 31, 2025.

A tax benefit is recognized if it is more likely than not that a tax position will be sustained on its technical merits, based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement with the tax authority.

Changes in unrecognized tax benefits:

(In millions)
Balance at October 31, 2023	$	331.5
Decrease based on tax positions in prior fiscal years	(2.0)
Increase based on tax positions in prior fiscal years	2.2
Increase based on tax positions in current fiscal year	1.0
Lapses of statutes of limitations	(5.9)
Balance at October 31, 2024	$	326.8
Lapses of statutes of limitations	(11.8)
Balance at October 31, 2025	$	315.0

These tax benefits, if recognized, would reduce provision for income taxes for fiscal 2025, 2024 and 2023, by $314.0 million, $323.7 million, and $323.2 million, respectively. Interest and penalties related to unrecognized tax benefits are recognized in provision for income taxes. As of October 31, 2025, 2024 and 2023, accrued interest and penalties related to unrecognized tax benefits were $2.8 million, $10.7 million, and $5.8 million, respectively.

Filed tax returns are subject to examination by tax authorities in major tax jurisdictions for fiscal 2021 and subsequent years, including the U.S. and United Kingdom.