Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of income before income taxes and the income tax provision related to income

The components of income before income taxes 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)	2019			2018			2017
Income before income taxes:
United States	$	(32.8	)	$	(122.8	)	$	7.8
Foreign	510.2			454.7			386.2
	$	477.4		$	331.9		$	394.0
Income tax provision	$	10.7		$	192.0		$	21.1

Schedule of income tax provision (benefit)

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

 

Years Ended October 31, (In millions)	2019			2018			2017
Current:
Federal	$	9.2		$	165.6		$	6.9
State	1.6			0.5			1.8
Foreign	15.8			23.0			19.5
	26.6			189.1			28.2
Deferred:
Federal	(8.1		)	16.1			(3.9		)
State	(0.9		)	1.0			1.4
Foreign	(6.9		)	(14.2		)	(4.6		)
	(15.9		)	2.9			(7.1		)
Income tax provision	$	10.7		$	192.0		$	21.1

Schedule of reconciliation of provision for income taxes attributable to income from operations and amount computed by applying statutory federal income tax rate to income before income taxes

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 21% for 2019, 23.34% for 2018, and 35% for 2017 to income before income taxes as follows:

Years Ended October 31, (In millions)	2019			2018			2017
Computed expected provision for taxes	$	100.3		$	77.5		$	137.9
(Decrease) increase in taxes resulting from:
Income earned outside the United States subject to different tax rates	(85.6		)	(97.5		)	(114.6		)
State taxes, net of federal income tax benefit	0.4			(4.9		)	3.9
Foreign source income subject to United States tax	16.1			—			—
Research and development credit	(0.9		)	(0.7		)	(0.7		)
U.S. tax reform	(5.8		)	214.6			—
Incentive stock option compensation and non-deductible employee compensation	(7.8		)	(11.1		)	(12.9		)
Tax accrual adjustment	(4.7		)	10.1			5.0
Other, net	(1.3		)	4.0			2.5
Actual provision for income taxes	$	10.7		$	192.0		$	21.1

Schedule of tax effects of temporary differences that give rise to deferred tax assets and liabilities

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

Years Ended October 31, (In millions)	2019			2018
Deferred tax assets:
Accounts receivable, principally due to allowances for doubtful accounts	$	3.6		$	4.0
Inventories	3.5			3.8
Litigation settlements	0.1			0.2
Accrued liabilities, reserves and compensation accruals	55.1			38.8
Foreign deferred tax assets	52.5			51.8
Restricted stock and stock option expenses	26.1			25.6
Net operating loss carryforwards	8.3			6.7
Intangible assets	11.1			3.1
Research and experimental expenses - Section 59(e)	2.5			2.5
Tax credit carryforwards	1.3			1.3
Total gross deferred tax assets	164.1			137.8
Less valuation allowance	(41.5		)	(39.1		)
Deferred tax assets	122.6			98.7
Deferred tax liabilities:
Tax deductible goodwill	(25.0		)	(22.4		)
Plant and equipment	(14.3		)	(8.2		)
Deferred tax on foreign earnings	(5.9		)	(8.9		)
Transaction costs	(0.7		)	(0.5		)
Foreign deferred tax liabilities	(27.6		)	(31.3		)
Total gross deferred tax liabilities	(73.5		)	(71.3		)
Net deferred tax assets	$	49.1		$	27.4

Schedule of aggregated changes in the balance of unrecognized tax benefits

The aggregated changes in the balance of unrecognized tax benefits (UTB) were as follows: 

(In millions)
Balance at October 31, 2017	$	59.9
Increase from prior year's UTB's	4.2
Increase from current year's UTB's	9.4
UTB (decrease) from expiration of statute of limitations	(4.6		)
Balance at October 31, 2018	68.9
Decrease from prior year's UTB's	(11.8		)
Increase from current year's UTB's	8.3
UTB (decrease) from tax authorities' settlements	(14.1		)
UTB (decrease) from expiration of statute of limitations	(1.6		)
Balance at October 31, 2019	$	49.7