Income Taxes Income Taxes

9 Months Ended

Jul. 31, 2017

Income Tax Disclosure [Abstract]

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

Income Taxes

We are required to adjust its effective tax rate each quarter based upon its estimated annual effective tax rate. We must also record the tax impact of discrete 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. 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 July 31, 2017 was an expense of $4,439 on a pretax income of $2,457 for an effective tax rate of 180.7%. The provision for income taxes for the three months ended July 31, 2016 was an expense of $1,344 on a pretax income of $666 for an effective tax rate of 201.8%.

The effective tax rate for the three months ended July 31,2017 and 2016 varies from the statutory rate primarily due to establishment of valuation allowance against certain foreign deferred tax assets, certain foreign losses without tax benefits, and tax return to provision adjustments.

The provision for income taxes for the nine months ended July 31,2017 was an expense of $6,686 on a pretax income of $6,915 for an effective tax rate of 96.7%. The provision for income taxes for the nine months ended July 31,2016 was a benefit of $203 on a pretax loss of $1,799 for an effective tax rate of 11.3%.

The effective tax rate for the nine months ended July 31,2017 and 2016 varies from statutory rate primarily due to establishment of valuation allowance against certain foreign deferred tax assets, certain foreign losses without tax benefits, and tax return to provision adjustments.