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Income Taxes
 12 Months Ended
Oct. 31, 2021
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2021, 2020, and 2019 ($ amounts in thousands):
 202120202019
 $%*$%*$%*
Federal tax provision at statutory rate231,066 21.0 123,249 21.0 165,306 21.0 
State tax provision, net of federal benefit50,153 4.6 25,793 4.4 37,898 4.8 
Other permanent differences8,388 0.8 4,755 0.8 4,866 0.6 
Reversal of accrual for uncertain tax positions(993)(0.1)(1,749)(0.3)(5,348)(0.7)
Accrued interest on anticipated tax assessments
297 — 404 0.1 453 0.1 
Increase in unrecognized tax benefits— — — — 2,153 0.3 
Changes in tax law— — — — (523)(0.1)
Excess stock compensation benefit(4,698)(0.4)(3,339)(0.6)(2,143)(0.3)
Energy tax credits(24,343)(2.2)(11,467)(2.0)(3,123)(0.4)
Other6,818 0.6 2,631 0.5 (2,376)(0.3)
Income tax provision*266,688 24.2 140,277 23.9 197,163 25.0 
*    Due to rounding, percentages may not add
We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated that our rate for state income taxes, before federal benefit, will be 5.8% in fiscal 2021. Our state income tax rate, before federal benefit, was 5.6% and 6.1% in fiscal 2020 and 2019, respectively
The following table provides information regarding the provision for income taxes for each of the fiscal years ended October 31, 2021, 2020, and 2019 (amounts in thousands):
202120202019
Federal$213,314 $114,204 $161,904 
State53,374 26,073 35,259 
 $266,688 $140,277 $197,163 
Current$254,873 $42,497 $94,399 
Deferred11,815 97,780 102,764 
 $266,688 $140,277 $197,163 
The components of income taxes payable at October 31, 2021 and 2020 are set forth below (amounts in thousands):
20212020
Current$8,047 $6,591 
Deferred207,233 192,383 
$215,280 $198,974 
The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2021, 2020, and 2019 (amounts in thousands):
202120202019
Balance, beginning of year$6,591 $7,897 $12,222 
Increase in benefit as a result of tax positions taken in prior years624 512 2,148 
Increase in benefit as a result of tax positions taken in current year— 306 1,126 
Decrease in benefit as a result of settlements— — (2,670)
Decrease in benefit as a result of lapse of statute of limitations(1,435)(2,124)(4,929)
Balance, end of year$5,780 $6,591 $7,897 
The statute of limitations has expired on our federal tax returns for fiscal years through 2017. The statue of limitations for our major state tax jurisdictions remains open for examination for fiscal year 2016 and subsequent years.
Our unrecognized tax benefits are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The anticipated changes will be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties.
The amounts accrued for interest and penalties are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. 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, 2021, 2020, and 2019, and the amounts accrued for potential interest and penalties at October 31, 2021 and 2020 (amounts in thousands):
Expense recognized in the Consolidated Statements of Operations and Comprehensive Income 
Fiscal year 
2021$376 
2020$512 
2019$593 
Accrued at: 
October 31, 2021$1,385 
October 31, 2020$1,270 
The components of net deferred tax assets and liabilities at October 31, 2021 and 2020 are set forth below (amounts in thousands):
20212020
Deferred tax assets:  
Accrued expenses$55,904 $57,089 
Impairment charges40,410 42,956 
Inventory valuation differences29,285 48,276 
Stock-based compensation expense16,543 19,905 
Amounts related to unrecognized tax benefits262 319 
State tax, net operating loss carryforwards46,339 68,705 
Other1,877 1,830 
Total assets190,620 239,080 
Deferred tax liabilities:  
Capitalized interest37,475 37,697 
Deferred income319,587 351,589 
Expenses taken for tax purposes not for book4,716 5,346 
Depreciation18,689 23,567 
Deferred marketing17,386 13,264 
Total liabilities397,853 431,463 
Net deferred tax liabilities$(207,233)$(192,383)
In accordance with GAAP, we assess whether a valuation allowance should be established based on our determination of whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized. At October 31, 2021 and 2020, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2021 and 2020, we did not have valuation allowances recorded against our federal or state deferred tax assets.
We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for 5 years to 20 years.