Income Taxes

3 Months Ended

Jan. 31, 2013

Income Taxes

NOTE 12 — INCOME TAXES

The effective tax rate was 32.3% and 32.5% for the three months ended January 31, 2013 and 2012, respectively. Income tax expense was $12.5 million and $11.0 million for the first quarters of 2013 and 2012, respectively. The increase was due to higher income before income tax expense.

The Company has estimated the reasonably possible expected net change in unrecognized tax benefits through January 31, 2014 based on expected settlements or payments of uncertain tax positions, and lapses of the applicable statutes of limitations of unrecognized tax benefits under ASC 740, “Income Taxes.” The estimated net decrease in unrecognized tax benefits for the next 12 months ranges from $0 to $48.5 million. Actual results may differ materially from this estimate.