Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

Earnings before income taxes were as follows (in thousands):

Fiscal Years Ended October 31	2019		2018		2017
Earnings before income taxes:
U.S.	$	283,730	$	333,136	$	307,136
Foreign	38,403		39,261		46,048
Total earnings before income taxes	$	322,133	$	372,397	$	353,184

Schedule of reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate

A reconciliation of the statutory federal income tax rate to the company's consolidated effective tax rate is summarized as follows:

Fiscal Years Ended October 31	2019		2018		2017
Statutory federal income tax rate	21.0	%	23.3	%	35.0	%
Excess deduction for stock compensation	(3.7	)	(3.5	)	(5.3	)
Domestic manufacturer's deduction	0.1		(0.9	)	(1.2	)
State and local income taxes, net of federal benefit	1.1		1.3		0.5
Foreign operations	(0.3	)	(0.5	)	(2.3	)
Federal research tax credit	(1.5	)	(1.2	)	(1.5	)
Foreign-derived intangible income	(1.3	)	—		—
Remeasurement of deferred tax assets and liabilities	(0.1	)	5.2		—
Deemed repatriation tax	(0.2	)	3.6		—
Other, net	(0.2	)	(0.3	)	(1.0	)
Consolidated effective tax rate	14.9	%	27.0	%	24.2	%

Schedule of components of the provision for income taxes

Components of the company's provision for income taxes were as follows (in thousands):

Fiscal Years Ended October 31	2019			2018		2017
Current provision:
Federal	$	37,415		$	64,375	$	83,091
State	7,495			6,192		3,036
Foreign	6,846			7,087		8,166
Total current provision	$	51,756		$	77,654	$	94,293
Deferred provision (benefit):
Federal	$	(37	)	$	22,074	$	(8,774	)
State	(3,205		)	308		(101		)
Foreign	(364		)	422		49
Total deferred provision (benefit)	(3,606		)	22,804		(8,826		)
Total provision for income taxes	$	48,150		$	100,458	$	85,467

Schedule of tax effects of temporary differences that give rise to the net deferred income tax assets

The tax effects of temporary differences that give rise to deferred income tax (liabilities) assets, net, are presented below (in thousands):

October 31	2019			2018
Deferred income tax assets:
Compensation and benefits	$	27,969		$	24,315
Warranty and insurance	25,788			19,037
Advertising and sales allowance	8,866			7,650
Inventory	4,005			2,742
Other	8,745			5,047
Valuation allowance	(3,199		)	(1,178		)
Total deferred income tax assets	$	72,174		$	57,613
Deferred income tax liabilities:
Depreciation	$	(40,964	)	$	(12,381	)
Amortization	(75,538		)	(8,377		)
Total deferred income tax liabilities	(116,502		)	(20,758		)
Deferred income tax (liabilities) assets, net	$	(44,328	)	$	36,855

Schedule of reconciliation of the beginning and ending amount of unrecognized tax benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in thousands):

Unrecognized tax benefits as of October 31, 2018	$	2,345
Increase as a result of tax positions taken during a prior period	149
Increase as a result of tax positions taken during the current period	467
Decrease relating to settlements with taxing authorities	(215		)
Reductions as a result of statute of limitations lapses	(73		)
Unrecognized tax benefits as of October 31, 2019	$	2,673