Income Taxes (Tables)

12 Months Ended

Oct. 31, 2024

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, 2024, 2023, and 2022 ($ amounts in thousands):


	2024		2023		2022
	$	%*	$	%*	$	%*
Federal tax provision at statutory rate	437,984	21.0	386,898	21.0	357,782	21.0
State tax provision, net of federal benefit	103,880	5.0	90,698	4.9	75,465	4.4
Other permanent differences	2,737	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 benefits	2,556	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

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, 2024, 2023, and 2022 (amounts in thousands):


	2024		2023		2022
Federal	$	425,445	$	385,650	$	343,524
State	89,000		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

Schedule of Components of Income Taxes Payable

The components of income taxes payable at October 31, 2024 and 2023 are set forth below (amounts in thousands):


	2024		2023
Current	$	37,905	$	5,978
Deferred	76,642		160,290
	$	114,547	$	166,268

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, 2024, 2023, and 2022 (amounts in thousands):


	2024		2023		2022
Balance, beginning of year	$	10,512	$	4,922	$	5,780
Increase in benefit as a result of tax positions taken in prior years	8,650		3,633		296
Increase in benefit as a result of tax positions taken in current year	3,142		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

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, 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

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities at October 31, 2024 and 2023 are set forth below (amounts in thousands):


	2024		2023
Deferred tax assets:
Accrued expenses	$	61,353	$	48,088
Impairment charges	23,074		25,005
Inventory valuation differences	44,307		20,690
Stock-based compensation expense	11,966		12,603
Amounts related to unrecognized tax benefits	4,130		1,385
State tax, net operating loss carryforwards	4,285		11,129

Other	117		1,709
Total assets	149,232		120,609
Deferred tax liabilities:
Capitalized interest	20,634		22,909
Deferred income	171,954		223,225
Expenses taken for tax purposes not for book	2,304		3,143
Depreciation	13,681		14,484
Deferred marketing	17,301		17,138

Total liabilities	225,874		280,899
Net deferred tax liabilities	$	(76,642)	$	(160,290)