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Income Taxes
 12 Months Ended
Oct. 31, 2024
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, 2024, 2023, and 2022 ($ amounts in thousands):
 202420232022
 $%*$%*$%*
Federal tax provision at statutory rate437,984 21.0 386,898 21.0 357,782 21.0 
State tax provision, net of federal benefit103,880 5.0 90,698 4.9 75,465 4.4 
Other permanent differences2,737 0.1 (2,782)(0.2)4,386 0.3 
Reversal of accrual for uncertain tax positions(2,132)(0.1)(621)— (1,690)(0.1)
Accrued interest on anticipated tax assessments
1,418 0.1 403 — 234 — 
Increase in unrecognized tax benefits2,556 0.1 2,209 0.1 658 — 
Excess stock compensation benefit(17,546)(0.8)(7,320)(0.4)(3,012)(0.2)
Energy tax credits(68)— (2,348)(0.1)(22,153)(1.3)
Other(14,384)(0.7)3,163 0.2 5,556 0.3 
Income tax provision*514,445 24.7 470,300 25.5 417,226 24.5 
*    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 6.3% in fiscal 2024. Our state income tax rate, before federal benefit, was 6.2% and 5.6% in fiscal 2023 and 2022, respectively.
The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2024, 2023, and 2022 (amounts in thousands):
202420232022
Federal$425,445 $385,650 $343,524 
State89,000 84,650 73,702 
 $514,445 $470,300 $417,226 
Current$594,775 $433,837 $513,075 
Deferred(80,330)36,463 (95,849)
 $514,445 $470,300 $417,226 
The components of income taxes payable at October 31, 2024 and 2023 are set forth below (amounts in thousands):
20242023
Current$37,905 $5,978 
Deferred76,642 160,290 
$114,547 $166,268 
The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2024, 2023, and 2022 (amounts in thousands):
202420232022
Balance, beginning of year$10,512 $4,922 $5,780 
Increase in benefit as a result of tax positions taken in prior years8,650 3,633 296 
Increase in benefit as a result of tax positions taken in current year3,142 2,733 833 
Decrease in benefit as a result of settlements(1,782)— — 
Decrease in benefit as a result of lapse of statute of limitations(493)(776)(1,987)
Balance, end of year$20,029 $10,512 $4,922 
The statute of limitations has expired on our federal tax returns for fiscal years through 2020. The statute of limitations for our major state tax jurisdictions remains open for examination for fiscal year 2019 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, 2024, 2023, and 2022, and the amounts accrued for potential interest and penalties at October 31, 2024 and 2023 (amounts in thousands):
Expense recognized in the Consolidated Statements of Operations and Comprehensive Income 
Fiscal year 
2024$785 
2023$332 
2022$296 
Accrued at: 
October 31, 2024$1,728 
October 31, 2023$1,259 
The components of net deferred tax assets and liabilities at October 31, 2024 and 2023 are set forth below (amounts in thousands):
20242023
Deferred tax assets:  
Accrued expenses$61,353 $48,088 
Impairment charges23,074 25,005 
Inventory valuation differences44,307 20,690 
Stock-based compensation expense11,966 12,603 
Amounts related to unrecognized tax benefits4,130 1,385 
State tax, net operating loss carryforwards4,285 11,129 
Other117 1,709 
Total assets149,232 120,609 
Deferred tax liabilities:  
Capitalized interest20,634 22,909 
Deferred income171,954 223,225 
Expenses taken for tax purposes not for book2,304 3,143 
Depreciation13,681 14,484 
Deferred marketing17,301 17,138 
Total liabilities225,874 280,899 
Net deferred tax liabilities$(76,642)$(160,290)
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, 2024 and 2023, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2024 and 2023, 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 ranging from five years to