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Income Taxes
 12 Months Ended
Oct. 31, 2025
Income Tax Disclosure [Abstract]  
Income Taxes
Note 8 — Income taxes
Income before income taxes and income tax expense (benefit) are comprised of the following:
202520242023
Income before income taxes:
Domestic$430,297 $314,263 $269,934 
Foreign167,351 271,218 345,405 
Total income before income taxes$597,648 $585,481 $615,339 
Current:
U.S. federal$73,858 $65,085 $54,157 
State and local9,501 2,017 285 
Foreign42,426 69,652 89,520 
Total current$125,785 $136,754 $143,962 
Deferred:
U.S. federal$(8,868)$(11,622)$(9,119)
State and local(1,124)(1,387)(1,279)
Foreign(2,619)(5,548)(5,718)
Total deferred(12,611)(18,557)(16,116)
$113,174 $118,197 $127,846 
A reconciliation of the U.S. statutory federal rate to the worldwide consolidated effective tax rate follows:
 202520242023
Statutory federal income tax rate21.00 %21.00 %21.00 %
Share-based and other compensation0.14 (0.02)(0.25)
Foreign tax rate variances0.78 1.22 1.83 
State and local taxes, net of federal income tax benefit1.11 0.08 (0.13)
Foreign-Derived Intangible Income Deduction(2.49)(2.54)(2.24)
Global Intangible Low-Taxed Income net of foreign tax credits— 0.40 0.71 
Changes in federal valuation allowances(0.73)0.68 1.45 
Changes in unrecognized tax benefits(0.25)0.05 (0.17)
Other – net(0.62)(0.68)(1.42)
Effective tax rate18.94 %20.19 %20.78 %
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 $1,508,911 and $1,433,106 at October 31, 2025 and 2024, 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, 2025 and 2024, total unrecognized tax benefits were $5,965 and $7,481, respectively. The amounts that, if recognized, would impact the effective tax rate were $5,005 and $6,670 at October 31, 2025 and 2024, respectively. During 2025, 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 2025, 2024 and 2023 is as follows:
 202520242023
Gross balance at beginning of year$7,481 $8,002 $2,872 
Additions based on tax positions related to the current year— 300 410 
Additions for tax positions of prior years80 — 10 
Increases related to acquired businesses— — 6,602 
Reductions for tax positions of prior years(1,296)(418)— 
Lapse of statute of limitations(300)(403)(1,892)
Gross balance at end of year$5,965 $7,481 $8,002 
At October 31, 2025 and 2024, we had accrued interest and penalty expense related to unrecognized tax benefits of $853 and $800, 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 U.S. Federal income tax as well as income taxes in numerous state and foreign jurisdictions. We are subject to examination in the United States by the Internal Revenue Service ("IRS") for the years 2022 through 2025; years prior to 2022 year are closed to further examination by the IRS. Generally, major state and foreign jurisdiction tax years remain open to examination for years after 2019. 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:
 20252024
Deferred tax assets:
Lease Liabilities$19,640 $25,254 
Employee benefits15,192 29,291 
Tax credit and loss carryforwards27,765 35,258 
Other accruals not currently deductible for taxes9,966 9,190 
Inventory adjustments12,883 16,634 
Total deferred tax assets85,446 115,627 
Valuation allowance(24,523)(33,596)
Total deferred tax assets$60,923 $82,031 
Deferred tax liabilities:
Depreciation and amortization$235,281 $256,183 
Lease right-of-use assets18,528 24,204 
Other - net(11,946)(3,865)
Total deferred tax liabilities241,863 276,522 
Net deferred tax liabilities$(180,940)$(194,491)
At October 31, 2025, we had $16,549 of tax credit carryforwards, $12,577 of which expires in 2026-2044 and $3,972 of which has an indefinite carryforward period. We also had $29,055 of state operating loss carryforwards, $43,967 of foreign operating loss carryforwards, and a $2,917 capital loss carryforward, of which $53,403 will expire in 2026 through 2043, and $22,536 of which has an indefinite carryforward period. The net change in the valuation allowance was a decrease of $9,073 in 2025 and an increase of $9,864 in 2024. The valuation allowance of $24,523 at October 31, 2025, 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.
One Big Beautiful Bill Act
On July 4, 2025, the One Big Beautiful Bill Act (the "OBBBA") was signed into law in the United States. The OBBBA includes significant tax law changes, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions. As the provisions under the OBBBA do not take effect until after the Company’s fiscal year end of October 31, 2025, the effects of these changes are not reflected in the accompanying Consolidated Financial Statements for the year ended October 31, 2025. The Company is currently evaluating the OBBBA’s impact on future tax periods and will update its income
tax disclosures in future filings once the impact of the OBBBA has been fully assessed. At this time, the Company does not expect the OBBBA to have a material impact on its deferred tax balances.