Income Taxes (Tables)

12 Months Ended

Oct. 31, 2022

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, 2022, 2021, and 2020 ($ amounts in thousands):


	2022		2021		2020
	$	%*	$	%*	$	%*
Federal tax provision at statutory rate	357,782	21.0	231,066	21.0	123,249	21.0
State tax provision, net of federal benefit	75,465	4.4	50,153	4.6	25,793	4.4
Other permanent differences	4,386	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 benefits	658	—	—	—	—	—



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)
Other	5,556	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

Schedule of Components of Income Tax Expense (Benefit)

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):


	2022		2021		2020
Federal	$	343,524	$	213,314	$	114,204
State	73,702		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

Schedule of Components of Income Taxes Payable

The components of income taxes payable at October 31, 2022 and 2021 are set forth below (amounts in thousands):


	2022		2021
Current	$	168,548	$	8,047
Deferred	122,931		207,233
	$	291,479	$	215,280

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, 2022, 2021, and 2020 (amounts in thousands):


	2022		2021		2020
Balance, beginning of year	$	5,780	$	6,591	$	7,897
Increase in benefit as a result of tax positions taken in prior years	296		624		512
Increase in benefit as a result of tax positions taken in current year	833		—		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

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, 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

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities at October 31, 2022 and 2021 are set forth below (amounts in thousands):


	2022		2021
Deferred tax assets:
Accrued expenses	$	50,164	$	55,904
Impairment charges	37,418		40,410
Inventory valuation differences	41,154		29,285
Stock-based compensation expense	17,064		16,543
Amounts related to unrecognized tax benefits	203		262
State tax, net operating loss carryforwards	24,185		46,339

Other	1,691		1,877
Total assets	171,879		190,620
Deferred tax liabilities:
Capitalized interest	26,791		37,475
Deferred income	226,929		319,587
Expenses taken for tax purposes not for book	2,961		4,716
Depreciation	19,391		18,689
Deferred marketing	18,738		17,386

Total liabilities	294,810		397,853
Net deferred tax liabilities	$	(122,931)	$	(207,233)