Income Taxes

6 Months Ended

Apr. 30, 2020

Income Tax Disclosure [Abstract]

Income Taxes

7. 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 rate for the three and six months ended April 30, 2020 was 21.0% and 19.8%, respectively.   The effective tax rate for the three and six months ended April 30, 2019 was 20.9% and 23.9%, respectively.

Our income tax provision included a discrete tax benefit of $138 and $2,675 due to our share-based payment transactions for the three and six months ended April 30, 2020, respectively. Our income tax provision included a similar discrete tax benefit of $2,149 and $3,017 for the three and six months ended April 30, 2019, respectively.

During the six months ended April 30, 2019, a discrete tax expense of $4,866 was recorded to update the provisional amounts recognized in 2018 due to changes in interpretations and assumptions and the finalization of estimates related to the U.S. Tax Cuts and Jobs Act.