Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

Significant components of the Company’s deferred tax assets and liabilities are outlined below.


	October 31,
	2019		2018
	(In thousands)
Deferred tax liabilities:
Property, plant and equipment	$	148,505	$	88,351
Prepaid and other assets	1,911		1,751
Total deferred tax liabilities	150,416		90,102
Deferred tax assets:
Accrued expenses and accounts receivable	8,172		7,814
Inventory	1,155		2,862
Compensation on restricted stock	7,528		8,280
State income tax credits	9,333		12,235
Other	1,272		654
Valuation allowance	(5,637)		(11,017)
Net operating loss	54,461		6,481
Total deferred tax assets	76,284		27,309
Net deferred tax liabilities	$	74,132	$	62,793

Differences Between Consolidated Effective Income Tax Rate and Federal Statutory Rate

The differences between the consolidated effective income tax rate and the federal statutory rate effective during the applicable year presented are as follows:


	Years Ended October 31,
	2019		2018		2017
	(In thousands)
Income taxes at statutory rate	$	13,408	$	7,132	$	148,585
Discrete benefit resulting from TCJA	—		(37,505)		—
State income taxes	1,189		1,014		9,038
State income tax credits	(2,139)		(804)		(606)
Expiration of state income tax credits	4,121		4,117		642
Federal income tax credits	(474)		(460)		(390)
Federal manufacturers deduction	—		—		(11,527)
Excess tax benefits	(1,388)		(1,638)		(3,345)
Nondeductible expenses	1,786		1,890		3,506
Change in valuation allowance	(5,380)		(5,297)		(1,106)
Other	(570)		677		(12)
Income tax expense (benefit)	$	10,553	$	(30,874)	$	144,785

Income Tax Expense

Our effective tax rates for fiscal 2019, 2018 and 2017 were 16.5%, (101.0)% and 34.1%, respectively. During the periods presented, income tax expense (benefit) consisted of the following:


	Years Ended October 31,
	2019		2018		2017
	(In thousands)
Current expense (benefit):
Federal	$	(735)	$	(600)	$	117,611
State	(51)		(1,169)		11,024
	(786)		(1,769)		128,635
Deferred expense (benefit):
Federal	13,966		(28,845)		15,452
State	2,753		2,146		1,804
Change in valuation allowance	(5,380)		(2,406)		(1,106)
	11,339		(29,105)		16,150
Income tax expense (benefit)	$	10,553	$	(30,874)	$	144,785