Income Taxes (Tables)

12 Months Ended

Oct. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of earnings before income taxes

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

Fiscal Years Ended October 31	2022		2021		2020
Earnings before income taxes:
United States	$	491,318	$	446,256	$	369,016
Foreign	61,228		53,562		38,054
Total earnings before income taxes	$	552,546	$	499,818	$	407,070

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	2022		2021		2020
Statutory federal income tax rate	21.0	%	21.0	%	21.0	%
Excess deduction for stock-based compensation	(0.4)		(1.5)		(1.7)
State and local income taxes, net of federal benefit	2.0		1.4		2.4
Foreign operations	(0.7)		(0.5)		(0.6)
Federal research tax credit	(1.3)		(1.4)		(1.7)
Foreign-derived intangible income	(0.7)		(0.9)		—
Other, net	(0.1)		(0.1)		(0.4)
Effective tax rate	19.8	%	18.0	%	19.0	%

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	2022		2021		2020
Current provision:
Federal	$	94,658	$	90,222	$	58,243
State	19,061		15,973		11,322
Foreign	7,749		9,163		5,534
Total current provision	$	121,468	$	115,358	$	75,099
Deferred (benefit) provision:
Federal	$	(7,360)	$	(18,361)	$	1,710
State	(4,894)		(6,486)		634
Foreign	(10)		(573)		(74)
Total deferred (benefit) provision	(12,264)		(25,420)		2,270
Total provision for income taxes	$	109,204	$	89,938	$	77,369

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

The components of the company's deferred income tax assets and liabilities were as follows (in thousands):

Fiscal Years Ended October 31	2022		2021
Deferred income tax assets:
Compensation and benefits	$	32,937	$	34,403
Warranty and insurance	35,384		30,840
Lease liabilities	20,165		17,735
Advertising and sales promotions and incentives	7,153		6,669
Inventory	36,410		21,118
Deferred revenue (1)	3,316		3,134
Other (1)	—		6,221
Net operating losses and other carryforwards (1)	6,442		5,397
Valuation allowance	(3,214)		(3,205)
Deferred income tax assets	$	138,593	$	122,312
Deferred income tax liabilities:
Right-of-use assets	$	(19,520)	$	(17,071)
Depreciation	(51,861)		(47,551)
Amortization	(102,424)		(102,287)
Other (1)	(3,750)		—
Deferred income tax liabilities	(177,555)		(166,909)
Deferred income tax liabilities, net	$	(38,962)	$	(44,597)

(1) Presentation of fiscal 2021 deferred income taxes has been conformed to the current year presentation. There was no change to total deferred income tax assets, deferred income tax liabilities, or deferred income tax liabilities, net.

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, 2021	$	3,113
Increase as a result of tax positions taken during a prior period	2
Decrease as a result of tax positions taken during a prior period	(30)
Increase as a result of tax positions taken during the current period	539
Reductions as a result of statute of limitations lapses	(276)
Unrecognized tax benefits as of October 31, 2022	$	3,348