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Income Taxes
6 Months Ended
Apr. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
INCOME TAXES
Income tax expense for the quarter was computed in accordance with ASC 740-270 "Income Taxes - Interim Reporting". Under this method, losses from jurisdictions for which a valuation allowance have been provided have not been included in the amount to which the ASC 740-270 rate was applied. Income tax expense of the Company fluctuates primarily due to changes in losses and income from jurisdictions for which a valuation allowance has been provided and the impact of discrete items in the respective quarter.
The income tax expense for the six months ended April 30, 2018, was $5.5 million; whereas, the income tax expense for the six months ended April 30, 2017, was $34.8 million.
On December 22, 2017, the President of the United States signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Reform Act”). The legislation significantly changed U.S. tax law by, among other things, lowering the corporate income tax rate from 35% to 21%, effective January 1, 2018, allowing for the acceleration of expensing for certain business assets, requiring companies to pay a one-time transition tax on certain un-remitted earnings of foreign subsidiaries, and eliminating U.S. federal income tax on dividends from foreign subsidiaries. The rate change was administratively effective as of the beginning of the Company's fiscal 2018 year, which has resulted in the Company using a blended statutory rate for the annual period of 23.33%.
The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) to address the application of U.S. GAAP in situations when a registrant does not have the necessary information available, prepared, or analyzed (including computations) in reasonable detail to complete the accounting for certain income tax effects of the Tax Reform Act. During the quarter ended April 30, 2018, the Company further refined the provisional benefit related to the revaluation of deferred tax assets & liabilities from a benefit of $65.0 million to a benefit of $69.3 million. As a result, the Company recognized a net benefit of $4.3 million, related to the Tax Reform Act, in its consolidated financial statements for the quarter ended April 30, 2018. The final impact may differ from these provisional amounts, possibly materially, due to, among other things, additional analyses, changes in interpretations and assumptions the Company has made, additional regulatory guidance that may be issued, and actions the Company may take as a result of the Tax Reform Act..