XML 49 R24.htm IDEA: XBRL DOCUMENT v3.24.4
INCOME TAXES
 12 Months Ended
Oct. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
Geographic Sources of Income Before Income Taxes
Year Ended October 31,
(in millions)202420232022
United States$88.8 $294.3 $278.5 
Foreign44.8 36.8 31.5 
Income before income taxes
$133.6 $331.1 $310.0 
Components of Income Tax Provision
Year Ended October 31,
(in millions)202420232022
Current:
Federal$(53.7)$(50.6)$3.5 
State(22.8)(25.0)(6.0)
Foreign(0.4)(9.0)(9.4)
Deferred:
Federal19.3 (0.5)(46.1)
State6.7 5.3 (22.1)
Foreign(1.3)0.1 0.5 
Income tax provision$(52.2)$(79.7)$(79.6)
Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate
Year Ended October 31,
202420232022
U.S. statutory rate21.0 %21.0 %21.0 %
State and local income taxes, net of federal tax benefit8.0 6.9 7.7 
Federal and state tax credits(2.6)(1.0)(1.5)
Impact of foreign operations (6.4)0.8 (0.1)
Changes in uncertain tax positions(2.2)0.1 (2.5)
Incremental tax benefit from share-based compensation awards(1.6)(0.7)(0.5)
Energy efficiency incentives(4.1)(0.1)(0.3)
Nondeductible executive compensation
3.4 1.4 1.4 
Nontaxable RavenVolt contingent consideration
20.1 (3.9)— 
Other nondeductible expenses2.1 0.6 0.3 
Other, net1.4 (1.0)0.2 
Effective tax rate 39.1 %24.1 %25.7 %
During 2024 and 2023, we had effective tax rates of 39.1% and 24.1%, respectively, resulting in a provision for tax of $52.2 million and $79.7 million, respectively. Our effective tax rate for 2024 was negatively impacted by a $95.7 million non-taxable change to increase the fair value of the contingent consideration related to the RavenVolt Acquisition, partially offset by a $7.3 million tax benefit for return to provision adjustments related to our non-U.S. operations, and a $5.5 million benefit related to energy efficiency incentives. Our effective tax rate for 2023 was positively impacted by a $45.6 million non-taxable change to decrease the fair value of the contingent consideration related to the RavenVolt Acquisition.
Components of Deferred Tax Assets and Liabilities
As of October 31,
(in millions)20242023
Deferred tax assets attributable to:
Self-insurance claims (net of recoverables)$106.3 $95.2 
Deferred and other compensation29.0 31.4 
Accounts receivable allowances5.6 7.8 
Settlement liabilities3.4 4.5 
Other accruals4.0 4.3 
State taxes1.5 1.5 
State net operating loss carryforwards2.5 2.6 
Tax credits3.4 2.3 
Unrecognized tax benefits3.5 3.6 
Operating lease liabilities23.5 27.3 
Gross deferred tax assets182.7 180.5 
Valuation allowance(1.1)(1.2)
Total deferred tax assets181.6 179.3 
Deferred tax liabilities attributable to:
Property, plant and equipment(1.0)(4.3)
Goodwill and other acquired intangibles(194.8)(200.0)
Right-of-use assets(25.1)(28.6)
Tax accounting method change(6.3)(11.7)
Other comprehensive income
(2.3)(8.4)
Other(12.3)(11.3)
Total deferred tax liabilities(241.8)(264.3)
Net deferred tax liabilities$(60.2)$(85.0)
Net Operating Loss Carryforwards and Credits
State net operating loss carryforwards totaling $46.5 million at October 31, 2024, are being carried forward in several state jurisdictions where we are permitted to use net operating losses from prior periods to reduce future taxable income. These losses will expire between 2025 and 2044. Federal net operating loss carryforwards were fully utilized during 2023. Federal and state tax credit carryforwards totaling $4.1 million are available to reduce future cash taxes and will expire between 2025 and 2044.
The valuation allowance represents the amount of tax benefits related to state net operating loss carryforwards that are not likely to be realized. We believe the remaining deferred tax assets are more likely than not to be realizable based on estimates of future taxable income.
Changes to the Valuation Allowance
Years Ended October 31,
(in millions)202420232022
Valuation allowance at beginning of year$1.2 $1.6 $2.2 
Other, net(0.1)(0.4)(0.6)
Valuation allowance at end of year $1.1 $1.2 $1.6 
Unrecognized Tax Benefits
At October 31, 2024, 2023, and 2022, there were $15.5 million, $20.7 million, and $22.0 million, respectively, of unrecognized tax benefits that if recognized in the future would impact our effective tax rate. We estimate that a decrease in unrecognized tax benefits of up to approximately $0.1 million is reasonably possible over the next 12 months due to lapses of applicable statutes of limitations. At October 31, 2024 and 2023, accrued interest and penalties were $1.3 million and $1.4 million, respectively. For interest and penalties, we recognized a $0.1 million benefit, a $0.7 million expense, and a $0.9 million benefit in 2024, 2023, and 2022, respectively.
Reconciliation of Total Unrecognized Tax Benefits
Years Ended October 31,
(in millions)202420232022
Balance at beginning of year$20.7 $22.0 $30.4 
Additions for tax positions related to prior years— 2.1 0.3 
Reductions for tax positions related to prior years(1.5)(1.5)(1.5)
Reductions for lapse of statute of limitations(0.1)(1.9)(7.2)
Settlements(3.6)— — 
Balance at end of year$15.5 $20.7 $22.0 

Jurisdictions
We conduct business in all 50 states, significantly in California, Texas, and New York, as well as in various foreign jurisdictions. Our most significant income tax jurisdiction is the United States. Due to expired statutes and closed audits, our federal income tax returns for years prior to fiscal 2020 are no longer subject to examination by the U.S. Internal Revenue Service. Generally, for the majority of state and foreign jurisdictions where we do business, periods prior to fiscal 2020 are no longer subject to examination. We are currently being examined by the City of New York City.