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Income Taxes
 12 Months Ended
Oct. 31, 2024
Income Tax Disclosure [Abstract]  
Income Taxes Income taxes
Income before income taxes and income tax expense (benefit) are comprised of the following:
202420232022
Income before income taxes:
Domestic$314,263 $269,934 $302,549 
Foreign271,218 345,405 346,730 
Total income before income taxes$585,481 $615,339 $649,279 
Current:
U.S. federal$65,085 $54,157 $59,639 
State and local2,017 285 7,535 
Foreign69,652 89,520 79,734 
Total current136,754 143,962 146,908 
Deferred:
U.S. federal(11,622)(9,119)(9,408)
State and local(1,387)(1,279)(596)
Foreign(5,548)(5,718)(728)
Total deferred(18,557)(16,116)(10,732)
$118,197 $127,846 $136,176 
A reconciliation of the U.S. statutory federal rate to the worldwide consolidated effective tax rate follows:
 202420232022
Statutory federal income tax rate21.00 %21.00 %21.00 %
Share-based and other compensation(0.02)(0.25)0.26 
Foreign tax rate variances1.22 1.83 0.95 
State and local taxes, net of federal income tax benefit0.08 (0.13)0.84 
Foreign-Derived Intangible Income Deduction(2.54)(2.24)(1.59)
Global Intangible Low-Taxed Income net of foreign tax credits0.40 0.71 0.23 
Other – net0.05 (0.14)(0.72)
Effective tax rate20.19 %20.78 %20.97 %
Deferred income taxes are not provided on undistributed earnings of international subsidiaries that are intended to be permanently invested in their operations. These undistributed earnings represent the post-income tax earnings under U.S. GAAP not adjusted for previously taxed income which aggregated approximately $1,433,106 and $1,533,889 at October 31, 2024 and 2023, respectively. Should these earnings be distributed, applicable foreign tax credits, distributions of previously taxed income and utilization of other attributes would substantially offset taxes due upon the distribution. It is not practical to estimate the amount of additional taxes that might be payable on these basis differences because of the multiple methods by which these differences could reverse and the impact of withholding, U.S. state and local taxes and currency translation considerations.
At October 31, 2024 and 2023, total unrecognized tax benefits were $7,481 and $8,002, respectively. The amounts that, if recognized, would impact the effective tax rate were $6,670 and $4,497 at October 31, 2024 and 2023, respectively. During 2024, unrecognized tax benefits related primarily to domestic positions and, as recognized, a substantial portion of the gross unrecognized tax benefits were offset against assets recorded in the Consolidated Balance Sheets.
A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2024, 2023 and 2022 is as follows:
 202420232022
Gross balance at beginning of year$8,002 $2,872 $3,720 
Additions based on tax positions related to the current year300 410 310 
Additions for tax positions of prior years— 10 — 
Increases related to acquired businesses— 6,602 — 
Reductions for tax positions of prior years(418)— (70)
Lapse of statute of limitations(403)(1,892)(1,088)
Gross balance at end of year$7,481 $8,002 $2,872 
At October 31, 2024 and 2023, we had accrued interest and penalty expense related to unrecognized tax benefits of $800 and $401, respectively. We include interest accrued related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as other income (expense).
We are subject to United States Federal income tax as well as income taxes in numerous state and foreign jurisdictions. We are subject to examination in the U.S. by the Internal Revenue Service ("IRS") for the years 2021 through 2024; years prior to 2021 year are closed to further examination by the IRS. Generally, major state and foreign jurisdiction tax years remain open to examination for years after 2018. Within the next twelve months, it is reasonably possible that certain statute of limitations periods would expire, which could result in a minimal decrease in our unrecognized tax benefits.
Significant components of deferred tax assets and liabilities are as follows:
 20242023
Deferred tax assets:
Lease Liabilities$25,254 $26,678 
Employee benefits29,291 26,680 
Tax credit and loss carryforwards35,258 28,667 
Other accruals not currently deductible for taxes9,190 8,944 
Inventory adjustments16,634 5,932 
Total deferred tax assets115,627 96,901 
Valuation allowance(33,596)(23,732)
Total deferred tax assets82,031 73,169 
Deferred tax liabilities:
Depreciation and amortization256,183 238,210 
Lease right-of-use assets24,204 25,925 
Other - net(3,865)3,649 
Total deferred tax liabilities276,522 267,784 
Net deferred tax liabilities$(194,491)$(194,615)
At October 31, 2024, we had $20,367 of tax credit carryforwards, $15,116 of which expires in 2026-2038 and $5,251 of which has an indefinite carryforward period. We also had $30,897 of state operating loss carryforwards, $47,966 of foreign operating loss carryforwards, and a $4,459 capital loss carryforward, of which $58,426 will expire in 2025 through 2043, and $24,897 of which has an indefinite carryforward period. The net change in the valuation allowance was an increase of $9,864 in 2024 and an increase of $13,602 in 2023. The valuation allowance of $33,596 at October 31, 2024, related primarily to tax credits and loss carryforwards that may expire before being realized. We continue to assess the need for valuation allowances against deferred tax assets based on determinations of whether it is more likely than not that deferred tax benefits will be realized.