Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

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, 2019, 2018, and 2017 ($ amounts in thousands):



	2019				2018				2017
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	165,306		21.0		217,914		23.3		285,009		35.0
State tax provision, net of federal benefit	37,898		4.8		47,073		5.0		34,656		4.3
Domestic production activities deduction			—		(18,168	)	(1.9	)	(12,835	)	(1.6	)
Other permanent differences	188		—		(3,726	)	(0.4	)	(1,468	)	(0.2	)
Reversal of accrual for uncertain tax positions	(5,348	)	(0.7	)	(4,741	)	(0.5	)	(3,981	)	(0.5	)
Accrued interest on anticipated tax assessments	453		0.1		737		0.1		984		0.1
Increase in unrecognized tax benefits	2,153		0.3		1,122		0.1				—
Valuation allowance — reversed			—				—		(32,154	)	(3.9	)
Changes in tax law	(523	)	(0.1	)	(38,740	)	(4.1	)			—
Excess stock compensation benefit	(2,143	)	(0.3	)	(4,236	)	(0.5	)			—
Other	(821	)	(0.1	)	(11,470	)	(1.2	)	8,605		1.1
Income tax provision*	197,163		25.0		185,765		19.9		278,816		34.2



*	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, 2019, 2018, and 2017 (amounts in thousands):



	2019		2018			2017
Federal	$	161,904	$	157,836		$	278,095
State	35,259		27,929			721
	$	197,163	$	185,765		$	278,816

Current	$	94,399	$	207,695		$	93,106
Deferred	102,764		(21,930		)	185,710
	$	197,163	$	185,765		$	278,816

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

The components of income taxes payable at October 31, 2019 and 2018 are set forth below (amounts in thousands):



	2019		2018
Current	$	7,897	$	28,804
Deferred	95,074		2,155
	$	102,971	$	30,959

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, 2019, 2018, and 2017 (amounts in thousands):



	2019			2018			2017
Balance, beginning of year	$	12,222		$	16,993		$	30,272
Increase in benefit as a result of tax positions taken in prior years	2,148			2,140			1,575
Increase in benefit as a result of tax positions taken in current year	1,126			949			431
Decrease in benefit as a result of settlements	(2,670		)	(4,707		)	(9,174		)
Decrease in benefit as a result of lapse of statute of limitations	(4,929		)	(3,153		)	(6,111		)
Balance, end of year	$	7,897		$	12,222		$	16,993

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 fiscal years ended October 31, 2019, 2018, and 2017, and the amounts accrued for potential interest and penalties at October 31, 2019 and 2018 (amounts in thousands):



Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2019	$	593
2018	$	1,152
2017	$	1,513



Accrued at:
October 31, 2019	$	1,169
October 31, 2018	$	2,115

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

The components of net deferred tax assets and liabilities at October 31, 2019 and 2018 are set forth below (amounts in thousands):



	2019			2018
Deferred tax assets:
Accrued expenses	$	54,162		$	54,531
Impairment charges	43,583			51,124
Inventory valuation differences	55,313			42,765
Stock-based compensation expense	23,928			27,949
Amounts related to unrecognized tax benefits	311			1,197
State tax, net operating loss carryforwards	67,718			73,288
Other	18			125
Total assets	245,033			250,979
Deferred tax liabilities:
Capitalized interest	44,196			43,982
Deferred income	277,005			181,839
Expenses taken for tax purposes not for book	3,571			5,477
Depreciation	5,024			6,877
Deferred marketing	10,311			14,959
Total liabilities	340,107			253,134
Net deferred tax liabilities	(95,074		)	(2,155		)