INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2011

Income Taxes Provision for Continuing Operations

The income taxes provision for continuing operations consists of the following components for each of the fiscal years ended October 31, 2011, 2010 and 2009:

		September 30,		September 30,			September 30,
(in thousands)	2011		2010			2009
Current
Federal	$	5,539	$	14,394		$	5,542
State		7,147		8,072			6,486
Foreign		67		83			951
Deferred
Federal		21,642		17,341			19,722
State		2,585		319			(2,652	)
Foreign		—		(6	)		(879	)
	$	36,980	$	40,203		$	29,170

Income Tax Expense Attributable to Income from Continuing Operations

Income tax expense attributable to income from continuing operations differs from the amounts computed by applying the U.S. statutory rates to pre-tax income from continuing operations as a result of the following for the years ended October 31, 2011, 2010 and 2009:

		September 30,			September 30,			September 30,
	2011			2010			2009
Statutory rate		35.0	%		35.0	%		35.0	%
State and local income taxes, net of federal tax benefit		6.3	%		6.5	%		6.5	%
Federal and state tax credits		(5.1	)%		(4.6	)%		(5.8	)%
Impact of change in state tax rate		(0.4	)%		(0.1	)%		(3.7	)%
Tax liabilities no longer required		(4.0	)%		(0.5	)%		(0.4	)%
Nondeductible expenses and other, net		3.2	%		2.3	%		2.9	%
		35.0	%		38.6	%		34.5	%

Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities

The tax effects of temporary differences that give rise to significant portions of deferred tax assets and deferred tax liabilities at October 31, 2011 and 2010 are presented below:

		September 30,			September 30,
(in thousands)	2011			2010
Deferred tax assets:
Self-insurance claims (net of recoverables)	$	103,125		$	109,439
Deferred and other compensation		28,897			25,516
Accounts receivable allowances		3,822			4,245
Settlement liabilities		1,999			1,306
State taxes		908			712
Federal net operating loss carryforwards		15,485			19,961
State net operating loss carryforwards		8,348			9,184
Tax credits		6,480			6,602
Other		8,220			7,872
		177,284			184,837
Valuation allowance		(5,784	)		(6,290	)
Total gross deferred tax assets		171,500			178,547
Deferred tax liabilities:
Property, plant and equipment		(8,579	)		(2,426	)
Goodwill and other acquired intangibles		(91,408	)		(78,860	)
Total gross deferred tax liabilities		(99,987	)		(81,286	)
Net deferred tax assets	$	71,513		$	97,261

Changes to the Deferred Tax Asset Valuation Allowance

Changes to the deferred tax asset valuation allowance for the years ended October 31, 2011 and 2010 are as follows:

		September 30,			September 30,
(in thousands)	2011			2010
Valuation allowance at the beginning of the year	$	6,290		$	6,147
Acquisition of Linc		290			—
Other, net		(796	)		143
Valuation allowance at the end of the year	$	5,784		$	6,290

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:

		September 30,			September 30,
(in thousands)	2011			2010
Balance at beginning of year	$	101,681		$	102,291
Additions for tax positions related to the current year		760			445
Reductions for tax positions related to prior years		(5,743	)		(125	)
Reductions for expiration of statue of limitations		(356	)		(930	)
Settlements		(386	)		—
Balance as of October 31	$	95,956		$	101,681