INCOME TAXES

3 Months Ended

Jan. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

Our quarterly tax provision is calculated using an estimated annual effective tax rate that is adjusted for discrete items occurring during the period to arrive at our effective tax rate. During the three months ended January 31, 2024 and 2023, we had effective tax rates of 17.3% and 26.9%, respectively, resulting in provisions for taxes of $9.3 million and $14.2 million, respectively. The difference between the estimated annual effective tax rate before discrete items and statutory rate is primarily related to state income taxes, non-deductible compensation, and tax credits.

Our effective tax rate for the three months ended January 31, 2024, benefited from discrete items, primarily by $2.9 million for uncertain tax positions, $2.1 million for share-based compensation and $2.0 million for return to provision adjustments related to our non-U.S. operations. Our effective tax rate for the three months ended January 31, 2023, benefited by $1.3 million for share-based compensation.

We plan to reinvest our foreign earnings to fund future non-U.S. growth and expansion, and we do not anticipate remitting such earnings to the United States. While U.S. federal tax expense has been recognized as a result of the Tax Cuts and Jobs Act of 2017, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized.