Income Taxes Income Taxes

6 Months Ended

Apr. 30, 2017

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

Income Taxes

The Company is required to adjust its effective tax rate each quarter based upon its estimated annual effective tax rate. The Company must also record the tax impact of certain discrete, unusual or infrequently occurring items, including changes in judgment about valuation allowance and effects of changes in tax laws or rates, in the interim period in which they occur. In addition, jurisdictions with a projected loss for the year or a year-to-date loss where no tax benefits can be recognized are excluded from the estimated annual effective tax rate.

The provision for income taxes for the three months ended April 30, 2017 was an expense of $2,323 on income before taxes of $6,552 for an effective tax rate of 35.5%. The provision for income taxes for the three months ended April 30, 2016 was an expense of $364 on income before taxes of $4,573 for an effective tax rate of 8.0%.

The effective tax rate for the three months ended April 30, 2017 and 2016 varies from the statutory rate primarily due to income taxes on foreign losses which are taxed at rates different from the U.S. statutory rate, certain foreign losses without tax benefits, and other permanent items.

The provision for income taxes for the six months ended April 30, 2017 was an expense of $2,247 on income before taxes of $4,458 for an effective tax rate of 50.4%. The provision for income taxes for the six months ended April 30, 2016 was a benefit of $1,547 on loss before taxes of $2,465 for an effective tax rate of 62.8%.

The effective tax rate for the six months ended April 30, 2017 and 2016 was higher than the statutory rate primarily due to income taxes on foreign earnings which are taxed at rates different from the U.S. statutory rate, certain foreign losses without tax benefits, and changes in tax laws.