Income Taxes (Tables)

12 Months Ended

Oct. 31, 2017

Reconciliation of Company's effective tax rate from federal statutory rate

The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2017, 2016, and 2015 ($ amounts in thousands):



	2017				2016				2015
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	285,009		35.0		206,159		35.0		187,447		35.0
State tax provision, net of federal benefit	34,656		4.3		26,970		4.6		21,947		4.1
Domestic production activities deduction	(12,835	)	(1.6	)	(16,874	)	(2.9	)	(12,284	)	(2.3	)
Other permanent differences	(1,468	)	(0.2	)	(7,037	)	(1.2	)	(7,821	)	(1.5	)
Reversal of accrual for uncertain tax positions	(3,981	)	(0.5	)	(11,177	)	(1.9	)	(15,331	)	(2.9	)
Accrued interest on anticipated tax assessments	984		0.1		1,964		0.3		2,588		0.5
Increase in unrecognized tax benefits	—		—		2,052		0.3		3,214		0.6
Valuation allowance — recognized	—		—		1,018		0.2		3,681		0.7
Valuation allowance — reversed	(32,154	)	(3.9	)	—		—		(16,323	)	(3.0	)
Other	8,605		1.1		3,857		0.7		5,277		1.0
Income tax provision*	278,816		34.2		206,932		35.1		172,395		32.2



*	Due to rounding, amounts may not add.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2017, 2016, and 2015 (amounts in thousands):



	2017		2016		2015
Federal	$	278,095	$	189,170	$	181,819
State	721		17,762		(9,424		)
	$	278,816	$	206,932	$	172,395

Current	$	93,106	$	186,662	$	122,953
Deferred	185,710		20,270		49,442
	$	278,816	$	206,932	$	172,395

Schedule of Components of Income Taxes Payable [Table Text Block]

The components of income taxes payable at October 31, 2017 and 2016 are set forth below (amounts in thousands):



	2017		2016
Current	$	33,100	$	62,782
Deferred	24,409
	$	57,509	$	62,782

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2017, 2016, and 2015 (amounts in thousands):



	2017			2016			2015
Balance, beginning of year	$	30,272		$	51,889		$	58,318
Increase in benefit as a result of tax positions taken in prior years	1,575			8,110			16,802
Increase in benefit as a result of tax positions taken in current year	431			694			9,005
Decrease in benefit as a result of settlements	(9,174		)	(28,976		)	(31,013		)
Decrease in benefit as a result of lapse of statute of limitations	(6,111		)	(1,445		)	(1,223		)
Balance, end of year	$	16,993		$	30,272		$	51,889

Tax Benefits potential interest and penalties

The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the 12-month periods ended October 31, 2017, 2016, and 2015, and the amounts accrued for potential interest and penalties at October 31, 2017 and 2016 (amounts in thousands):



Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2017	$	1,513
2016	$	3,426
2015	$	4,454



Accrued at:
October 31, 2017	$	5,179
October 31, 2016	$	9,282

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of net deferred tax assets and liabilities at October 31, 2017 and 2016 are set forth below (amounts in thousands):



	2017			2016
Deferred tax assets:
Accrued expenses	$	88,527		$	103,134
Impairment charges	84,534			113,950
Inventory valuation differences	80,224			78,483
Stock-based compensation expense	41,712			49,004
Amounts related to unrecognized tax benefits	3,800			8,345
State tax, net operating loss carryforward	48,343			50,031
Other	1,303			6,329
Total assets	348,443			409,276
Deferred tax liabilities:
Capitalized interest	76,914			85,873
Deferred income	261,286			52,406
Expenses taken for tax purposes not for book	9,878			47,045
Depreciation	4,694			5,440
Deferred marketing	20,080			18,945
Total liabilities	372,852			209,709
Net deferred tax (liabilities)/assets before valuation allowances	(24,409		)	199,567
Cumulative valuation allowance - state				(32,154		)
Net deferred tax (liabilities)/assets	$	(24,409	)	$	167,413