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Income Taxes
 12 Months Ended
Oct. 31, 2022
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, 2022, 2021, and 2020 ($ amounts in thousands):
 202220212020
 $%*$%*$%*
Federal tax provision at statutory rate357,782 21.0 231,066 21.0 123,249 21.0 
State tax provision, net of federal benefit75,465 4.4 50,153 4.6 25,793 4.4 
Other permanent differences4,386 0.3 8,388 0.8 4,755 0.8 
Reversal of accrual for uncertain tax positions(1,690)(0.1)(993)(0.1)(1,749)(0.3)
Accrued interest on anticipated tax assessments
234 — 297 — 404 0.1 
Increase in unrecognized tax benefits658 — — — — — 
Excess stock compensation benefit(3,012)(0.2)(4,698)(0.4)(3,339)(0.6)
Energy tax credits(22,153)(1.3)(24,343)(2.2)(11,467)(2.0)
Other5,556 0.3 6,818 0.6 2,631 0.5 
Income tax provision*417,226 24.5 266,688 24.2 140,277 23.9 
*    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 5.6% in fiscal 2022. Our state income tax rate, before federal benefit, was 5.8% and 5.6% in fiscal 2021 and 2020, respectively
The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2022, 2021, and 2020 (amounts in thousands):
202220212020
Federal$343,524 $213,314 $114,204 
State73,702 53,374 26,073 
 $417,226 $266,688 $140,277 
Current$513,075 $254,873 $42,497 
Deferred(95,849)11,815 97,780 
 $417,226 $266,688 $140,277 
The components of income taxes payable at October 31, 2022 and 2021 are set forth below (amounts in thousands):
20222021
Current$168,548 $8,047 
Deferred122,931 207,233 
$291,479 $215,280 
The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2022, 2021, and 2020 (amounts in thousands):
202220212020
Balance, beginning of year$5,780 $6,591 $7,897 
Increase in benefit as a result of tax positions taken in prior years296 624 512 
Increase in benefit as a result of tax positions taken in current year833 — 306 
Decrease in benefit as a result of lapse of statute of limitations(1,987)(1,435)(2,124)
Balance, end of year$4,922 $5,780 $6,591 
The statute of limitations has expired on our federal tax returns for fiscal years through 2018. The statute of limitations for our major state tax jurisdictions remains open for examination for fiscal year 2017 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, 2022, 2021, and 2020, and the amounts accrued for potential interest and penalties at October 31, 2022 and 2021 (amounts in thousands):
Expense recognized in the Consolidated Statements of Operations and Comprehensive Income 
Fiscal year 
2022$296 
2021$376 
2020$512 
Accrued at: 
October 31, 2022$1,157 
October 31, 2021$1,385 
The components of net deferred tax assets and liabilities at October 31, 2022 and 2021 are set forth below (amounts in thousands):
20222021
Deferred tax assets:  
Accrued expenses$50,164 $55,904 
Impairment charges37,418 40,410 
Inventory valuation differences41,154 29,285 
Stock-based compensation expense17,064 16,543 
Amounts related to unrecognized tax benefits203 262 
State tax, net operating loss carryforwards24,185 46,339 
Other1,691 1,877 
Total assets171,879 190,620 
Deferred tax liabilities:  
Capitalized interest26,791 37,475 
Deferred income226,929 319,587 
Expenses taken for tax purposes not for book2,961 4,716 
Depreciation19,391 18,689 
Deferred marketing18,738 17,386 
Total liabilities294,810 397,853 
Net deferred tax liabilities$(122,931)$(207,233)
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, 2022 and 2021, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2022 and 2021, 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.