Income taxes

9 Months Ended

Jul. 31, 2011

Income taxes [Abstract]

Income taxes

18.	Income taxes. We record our interim provision for income taxes based on our estimated annual effective tax rate, as well as certain items discrete to the current period. The effective tax rates for the three and nine-month periods ended July 31, 2011 were 27.7% and 29.1%, respectively.
	During the three months ending July 31, 2011, we recorded a favorable adjustment to unrecognized tax benefits of $2,027, primarily related to settlements with tax authorities. Additionally, during the three months ending July 31, 2011, we recorded a tax benefit of $368 related to an adjustment of deferred taxes resulting from a tax rate reduction in the United Kingdom.
	In December 2010, Congress passed and the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, which provided retroactive reinstatement of a research credit. As a result, we recorded an additional tax benefit related to 2010 of $1,580 in the nine months ended July 31, 2011. Additionally, in the nine month period end July 31, 2011 we recorded a $549 tax benefit related to prior years for deductions associated with the Company’s Employee Stock Ownership Plan.
	The balance of unrecognized tax benefits at July 31, 2011 was $2,476, compared to $4,078 at October 31, 2010. The amounts that, if recognized, would impact the effective tax rate were $2,417 and $4,019 at July 31, 2011 and October 31, 2010, respectively. At July 31, 2011 and October 31, 2010 we had accrued interest expense related to unrecognized tax benefits of $304 and $468, respectively. During the three months ended July 31, 2011, unrecognized tax benefits decreased by $1,740, primarily due to settlement with tax authorities.
	The effective tax rates for the three and nine-month periods ended July 31, 2010 were 16.8% and 27.6%, respectively. During the three months ended July 31, 2010 we sold our graphic arts and lamps product lines to Baldwin Technology Company, Inc., and we recognized $10,700 in tax benefits from the write off of our tax basis in the product lines.
	The effective tax rate for the nine months ended July 31, 2010 was negatively impacted by the enactment in March 2010 of the Patient Protection and Affordable Care Act and the subsequent enactment of the Health Care and Education Reconciliation Act of 2010, resulting in an additional tax charge of $5,255. The charge is due to a reduction in the value of our deferred tax asset as a result of a change to the tax treatment associated with Medicare Part D subsidies. This was partially offset by the consolidation of certain operations and legal entities, resulting in a $3,500 tax benefit.