Note 7 - Income Taxes

6 Months Ended

Apr. 30, 2013

Income Tax Disclosure [Text Block]

7. INCOME TAXES

Our effective income tax rate from continuing operations for the three and six months ended April 30, 2013 was 31.7% and 29.4%, respectively. Our effective income tax rate from continuing operations for the three and six months ended April 30, 2012 was 32.4% and 31.5%, respectively. The lower effective income tax rate for the six months ended April 30, 2013 compared to the prior year period is primarily attributable to the mix of forecasted domestic and foreign income for the year. The current year effective tax rate also includes a discrete tax benefit recorded for the reinstatement of the U.S. Federal R&D Tax Credit as a result of the American Taxpayer Relief Act, enacted on January 2, 2013. The prior year included nondeductible expenses for transaction costs related to the acquisition of Ongame Network Ltd, which increased the prior year rate. Our effective income tax rate may fluctuate due to changes in the amount and mix of domestic and foreign income, changes in tax legislation, changes in valuation allowances and changes in assessments of uncertain tax positions and related accumulated interest and penalties.