Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

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, 2021, 2020, and 2019 ($ amounts in thousands):


	2021		2020		2019
	$	%*	$	%*	$	%*
Federal tax provision at statutory rate	231,066	21.0	123,249	21.0	165,306	21.0
State tax provision, net of federal benefit	50,153	4.6	25,793	4.4	37,898	4.8
Other permanent differences	8,388	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)
Other	6,818	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

Schedule of Components of Income Tax Expense (Benefit)

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):


	2021		2020		2019
Federal	$	213,314	$	114,204	$	161,904
State	53,374		26,073		35,259
	$	266,688	$	140,277	$	197,163

Current	$	254,873	$	42,497	$	94,399
Deferred	11,815		97,780		102,764
	$	266,688	$	140,277	$	197,163

Schedule of Components of Income Taxes Payable

The components of income taxes payable at October 31, 2021 and 2020 are set forth below (amounts in thousands):


	2021		2020
Current	$	8,047	$	6,591
Deferred	207,233		192,383
	$	215,280	$	198,974

Schedule of Unrecognized Tax Benefits Roll Forward

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):


	2021		2020		2019
Balance, beginning of year	$	6,591	$	7,897	$	12,222
Increase in benefit as a result of tax positions taken in prior years	624		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

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, 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

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities at October 31, 2021 and 2020 are set forth below (amounts in thousands):


	2021		2020
Deferred tax assets:
Accrued expenses	$	55,904	$	57,089
Impairment charges	40,410		42,956
Inventory valuation differences	29,285		48,276
Stock-based compensation expense	16,543		19,905
Amounts related to unrecognized tax benefits	262		319
State tax, net operating loss carryforwards	46,339		68,705

Other	1,877		1,830
Total assets	190,620		239,080
Deferred tax liabilities:
Capitalized interest	37,475		37,697
Deferred income	319,587		351,589
Expenses taken for tax purposes not for book	4,716		5,346
Depreciation	18,689		23,567
Deferred marketing	17,386		13,264

Total liabilities	397,853		431,463
Net deferred tax liabilities	$	(207,233)	$	(192,383)