Income Taxes (Tables)

12 Months Ended

Oct. 31, 2015

Schedule of Income Before Income Tax, Domestic and Foreign

The components of income from continuing operations before income taxes and extraordinary items and the income tax provision related to income from all operations in our Consolidated Statements of Income consist of:



Years Ended October 31, (In millions)	2015		2014		2013
Income before income taxes:
United States	$	31.9	$	32.5	$	38.9
Foreign	183.6		264.0		273.4
	$	215.5	$	296.5	$	312.3
Income tax provision	$	10.3	$	24.7	$	15.4

Schedule of Income Tax Provision Related to Income from Continuing Operations

The income tax provision (benefit) related to income from continuing operations in our Consolidated Statements of Income consists of:



Years Ended October 31, (In millions)	2015			2014			2013
Current:
Federal	$	0.2		$	23.0		$	21.6
State	1.2			1.1			1.1
Foreign	3.3			16.6			9.9
	4.7			40.7			32.6

Deferred:
Federal	12.0			(5.3		)	(8.1		)
State	(0.5		)	(0.9		)	(0.8		)
Foreign	(5.9		)	(9.8		)	(8.3		)
	5.6			(16.0		)	(17.2		)
Income tax provision	$	10.3		$	24.7		$	15.4

Schedule of Provision for Income Taxes Attributable to Income from Operations and Amount Computed by Applying Statutory Federal Income Tax Rate

We reconcile the provision for income taxes attributable to income from operations and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes as follows:



Years Ended October 31, (In millions)	2015			2014			2013
Computed expected provision for taxes	$	75.4		$	103.8		$	109.3
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(72.6		)	(85.5		)	(97.0		)
State taxes, net of federal income tax benefit	—			0.5			0.5
Foreign source income subject to United States tax	1.4			0.8			0.3
Research and development credit	(0.7		)	(0.1		)	(2.1		)
Incentive stock option compensation and non-deductible employee compensation	0.4			0.4			0.4
Tax accrual adjustment	3.8			3.8			2.9
Other, net	2.6			1.0			1.1
Actual provision for income taxes	$	10.3		$	24.7		$	15.4

Schedule of Deferred Tax Assets and Liabilities

The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are:



October 31, (In millions)	2015			2014
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	1.3		$	1.4
Inventories	4.9			4.4
Litigation settlements	0.2			0.1
Accrued liabilities, reserves and compensation accruals	43.1			38.1
Restricted stock	26.4			24.7
Net operating loss carryforwards	2.8			6.2
Plant and equipment	4.4			5.7
Research and experimental expenses - Section 59(e)	2.6			3.8
Tax credit carryforwards	1.1			11.7
Total gross deferred tax assets	86.8			96.1
Less valuation allowance	(13.4		)	(14.5		)
Deferred tax assets	73.4			81.6
Deferred tax liabilities:
Tax deductible goodwill	(26.5		)	(24.2		)
Transaction cost	(1.1		)	(1.1		)
Foreign deferred tax liabilities	(6.6		)	(42.0		)
Other intangible assets	(24.0		)	(27.9		)
Bonus adjustments under new accounting method	—			—
Total gross deferred tax liabilities	(58.2		)	(95.2		)
Net deferred tax assets (liabilities)	$	15.2		$	(13.6	)

Schedule of Changes in Gross Unrecognized Tax Benefits

The aggregated changes in the balance of gross unrecognized tax benefits were as follows:



(In millions)
Balance at October 31, 2013	$	26.4
Increase from prior year's UTB's	2.5
Increase from current year's UTB's	6.0
UTB (decrease) from expiration of statute of limitations	(3.5		)
Balance at October 31, 2014	31.4
Increase from prior year's UTB's	—
Increase from current year's UTB's	18.7
UTB (decrease) from expiration of statute of limitations	(9.8		)
Balance at October 31, 2015	$	40.3