Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

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

Fiscal Years Ended October 31	2021		2020		2019
Earnings before income taxes:
United States	$	446,256	$	369,016	$	283,730
Foreign	53,562		38,054		38,403
Total earnings before income taxes	$	499,818	$	407,070	$	322,133

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 effective tax rate is summarized as follows:

Fiscal Years Ended October 31	2021		2020		2019
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Excess deduction for stock-based compensation	(1.5)		(1.7)		(3.7)
Domestic manufacturer's deduction	—		—		0.1
State and local income taxes, net of federal benefit	1.4		2.4		1.1
Foreign operations	(0.5)		(0.6)		(0.3)
Federal research tax credit	(1.4)		(1.7)		(1.5)
Foreign-derived intangible income	(0.9)		—		(1.3)
Remeasurement of deferred tax assets and liabilities	—		—		(0.1)
Deemed repatriation tax	—		—		(0.2)
Other, net	(0.1)		(0.4)		(0.2)
Effective tax rate	18.0	%	19.0	%	14.9	%

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	2021		2020		2019
Current provision:
Federal	$	90,222	$	58,243	$	37,415
State	15,973		11,322		7,495
Foreign	9,163		5,534		6,846
Total current provision	$	115,358	$	75,099	$	51,756
Deferred provision (benefit):
Federal	$	(18,361)	$	1,710	$	(37)
State	(6,486)		634		(3,205)
Foreign	(573)		(74)		(364)
Total deferred provision (benefit)	(25,420)		2,270		(3,606)
Total provision for income taxes	$	89,938	$	77,369	$	48,150

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

(in thousands):

Fiscal Years Ended October 31	2021		2020
Deferred income tax assets:
Compensation and benefits	$	34,403	$	30,363
Warranty and insurance	30,840		28,480
Lease liabilities	17,735		20,843
Advertising and sales promotions and incentives	6,669		6,937
Inventory	21,118		4,937
Deferred revenue	4,232		2,910
Other	10,520		9,643
Valuation allowance	(3,205)		(3,570)
Deferred income tax assets	$	122,312	$	100,543
Deferred income tax liabilities:
Right-of-use assets	$	(17,071)	$	(20,179)
Depreciation	(47,551)		(49,018)
Amortization	(102,287)		(95,315)
Deferred income tax liabilities	(166,909)		(164,512)
Deferred income tax liabilities, net	$	(44,597)	$	(63,969)

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, 2020	$	2,860
Increase as a result of tax positions taken during a prior period	59
Decrease as a result of tax positions taken during a prior period	(98)
Increase as a result of tax positions taken during the current period	397
Reductions as a result of statute of limitations lapses	(105)
Unrecognized tax benefits as of October 31, 2021	$	3,113