Income Taxes (Tables)

12 Months Ended

Oct. 31, 2016

Income (loss) before income taxes consists of the following:

The components of the provision (benefit) for income taxes from continuing operations were as follows:

Temporary differences and carryforwards which give rise to deferred tax assets and liabilities were comprised of the following:



		Years Ended October 31,
		2016			2015
Deferred tax assets:
	Accrued compensation and benefits	$	2,091		$	1,794
	Inventory	646			738
	State depreciation adjustments and loss carryforwards	2,664			1,803
	Pension obligations and post retirement benefits	10,229			6,020
	Foreign net operating loss	7,466			4,567
	Other accruals, reserves and tax credits	3,668			2,356
	Goodwill and intangible amortization	7,234			8,280
	Foreign currency translation	75			107
	Interest rate swap	1,922			1,811
Total deferred tax assets		35,995			27,476
Less: Valuation allowance		(2,782)			(4,986)
Net deferred tax assets		$	33,213		$	22,490
Deferred tax liabilities:
	Fixed assets	$	(26,800	)	$	(21,984	)
	Prepaid expenses and other	(1,173)			(891)
Net deferred tax asset		$	5,240		$	(385	)

Change in net deferred tax asset:
	Benefit (provision) for deferred taxes	$	2,704		$	(4,263	)
Purchase accounting adjustments		—			51
Unrecognized tax benefit adjustments		(207		)	(202		)
Components of other comprehensive income:
	Pension and post retirement benefits	2,986			(387		)
	Velocys investment	58			248
	Interest rate swap	111			861
	Other adjustments	(27		)	3
	Total change in net deferred tax asset	$	5,625		$	(3,689	)

Activities and balances of unrecognized tax benefits for 2016, 2015, and 2014 are summarized below:



	Years Ended October 31,
	2016			2015			2014
Balance at beginning of year	$	731		$	1,068		$	1,183
Additions based on tax positions related to the current year	48			125			35
Additions for tax positions of prior years	—			27			—
Reductions based on tax positions related to the current year	—			(39		)	(5		)
Reductions for tax positions of prior years	(53		)	—			(3		)
Reductions as result of lapse of applicable statute of limitations	(165		)	(450		)	(142		)

Balance at end of year	$	561		$	731		$	1,068

A reconciliation of the statutory federal income tax rate to the effective tax rate is as follows:



	Years Ended October 31,
	2016		2015		2014
Federal income tax at statutory rate	35.0	%	35.0	%	35.0	%
State and local income taxes, net of federal benefit	(4.4	)	4.7		0.6
Valuation allowance change	367.7		12.6		(7.4	)
Domestic tax credits	62.7		(2.1	)	(1.1	)
Domestic production activities deduction	26.4		(3.2	)	(2.9	)
Foreign operations	(151.1	)	13.2		0.7
Revisions to prior period research and research and development tax credit calculations	—		—		(10.2	)
Adjustment of uncertain tax positions	11.7		(3.2	)	(1.0	)
Provision to return adjustment for tax law extensions subsequent to year-end	(13.6	)	(13.0	)	(1.0	)
Change in legislation - Mexico	—		—		2.4
Other	13.1		0.4		2.1

Effective income tax rate	347.5	%	44.4	%	17.2	%



	October 31, 2016						October 31, 2015
Jurisdiction	NOL Carryforward		NOL Tax Benefit		Valuation Allowance		NOL Carryforward		NOL Tax Benefit		Valuation Allowance
Netherlands	$	174	$	35	$	35	329		60		60
Sweden	27,271		6,000		—		14,172		3,118		3,106
China	1,494		373		373		478		120		120
Hong Kong	206		51		51		—		—		—
Mexico	3,358		1,007		—		4,234		1,270		—
U.S. (State)	39,331		2,138		2,075		33,368		1,475		1,452
Total before Foreign Tax Credit	$	71,834	$	9,604	$	2,534	$	52,581	$	6,043	$	4,738

U.S. Federal (Foreign Tax Credit)	—		—		248		—		—		248
Total	$	71,834	$	9,604	$	2,782	$	52,581	$	6,043	$	4,986