Income Taxes (Tables)
|
12 Months Ended |
Oct. 31, 2012
|
Income Taxes Provision for Continuing Operations |
The income taxes provision for continuing operations consists
of the following components for each of the years ended
October 31, 2012, 2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
Current
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
$ |
9,700 |
|
|
$ |
5,539 |
|
|
$ |
14,394 |
|
State
|
|
|
10,459 |
|
|
|
7,147 |
|
|
|
8,072 |
|
Foreign
|
|
|
— |
|
|
|
67 |
|
|
|
83 |
|
Deferred
|
|
|
|
|
|
|
|
|
|
|
|
|
Federal
|
|
|
11,047 |
|
|
|
21,642 |
|
|
|
17,341 |
|
State
|
|
|
(1,275 |
) |
|
|
2,585 |
|
|
|
319 |
|
Foreign
|
|
|
— |
|
|
|
— |
|
|
|
(6 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
29,931 |
|
|
$ |
36,980 |
|
|
$ |
40,203 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income Tax Expense Attributable to Income from Continuing Operations |
Income tax expense attributable to income from continuing
operations differs from the amounts computed by applying the U.S.
statutory rates to pre-tax income from continuing operations as a
result of the following for the years ended October 31, 2012,
2011 and 2010:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
Statutory rate
|
|
|
35.0 |
% |
|
|
35.0 |
% |
|
|
35.0 |
% |
State and local income
taxes, net of federal tax benefit
|
|
|
6.5 |
% |
|
|
6.3 |
% |
|
|
6.5 |
% |
Federal and state tax
credits
|
|
|
(5.5 |
)% |
|
|
(5.1 |
)% |
|
|
(4.6 |
)% |
Impact of change in state
tax rate
|
|
|
1.2 |
% |
|
|
(0.4 |
)% |
|
|
(0.1 |
)% |
Tax liabilities no longer
required
|
|
|
(7.2 |
)% |
|
|
(4.0 |
)% |
|
|
(0.5 |
)% |
Nondeductible expenses and
other, net
|
|
|
2.3 |
% |
|
|
3.2 |
% |
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
32.3 |
% |
|
|
35.0 |
% |
|
|
38.6 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax Effects of Temporary Differences That Give Rise to Significant Portions of Deferred Tax Assets and Deferred Tax Liabilities |
The tax effects of temporary differences that give rise to
significant portions of deferred tax assets and deferred tax
liabilities at October 31, 2012 and 2011 are presented
below:
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
2012 |
|
|
2011 |
|
Deferred tax
assets:
|
|
|
|
|
|
|
|
|
Self-insurance claims (net
of recoverables)
|
|
$ |
109,516 |
|
|
$ |
103,125 |
|
Deferred and other
compensation
|
|
|
30,221 |
|
|
|
28,897 |
|
Accounts receivable
allowances
|
|
|
3,967 |
|
|
|
3,822 |
|
Settlement
liabilities
|
|
|
3,288 |
|
|
|
1,999 |
|
State taxes
|
|
|
727 |
|
|
|
908 |
|
Federal net operating loss
carryforwards
|
|
|
— |
|
|
|
15,485 |
|
State net operating loss
carryforwards
|
|
|
8,596 |
|
|
|
8,348 |
|
Tax credits
|
|
|
7,802 |
|
|
|
6,480 |
|
Other
|
|
|
7,758 |
|
|
|
8,220 |
|
|
|
|
|
|
|
|
|
|
|
|
|
171,875 |
|
|
|
177,284 |
|
Less: Valuation
allowance
|
|
|
6,026 |
|
|
|
5,784 |
|
|
|
|
|
|
|
|
|
|
Total deferred tax
assets
|
|
|
165,849 |
|
|
|
171,500 |
|
|
|
|
|
|
|
|
|
|
Deferred tax
liabilities:
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
|
(2,767 |
) |
|
|
(8,579 |
) |
Goodwill and other acquired
intangibles
|
|
|
(101,801 |
) |
|
|
(91,408 |
) |
|
|
|
|
|
|
|
|
|
Total deferred tax
liabilities
|
|
|
(104,568 |
) |
|
|
(99,987 |
) |
|
|
|
|
|
|
|
|
|
Net deferred tax
assets
|
|
$ |
61,281 |
|
|
$ |
71,513 |
|
|
|
|
|
|
|
|
|
|
|
Changes to Deferred Tax Asset Valuation Allowance |
Changes to the deferred tax asset valuation allowance for the
years ended October 31, 2012, 2011 and 2010 are as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
2012 |
|
|
2011 |
|
|
2010 |
|
Valuation allowance at the
beginning of the year
|
|
$ |
5,784 |
|
|
$ |
6,290 |
|
|
$ |
6,147 |
|
Acquisition of
Linc
|
|
|
— |
|
|
|
290 |
|
|
|
— |
|
Other, net
|
|
|
242 |
|
|
|
(796 |
) |
|
|
143 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valuation allowance at the
end of the year
|
|
$ |
6,026 |
|
|
$ |
5,784 |
|
|
$ |
6,290 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits |
A reconciliation of the beginning and ending amount of
unrecognized tax benefits is as follows:
|
|
|
|
|
|
|
|
|
(in
thousands)
|
|
2012 |
|
|
2011 |
|
Balance at beginning of
year
|
|
$ |
95,956 |
|
|
$ |
101,681 |
|
Additions for tax positions
related to the current year
|
|
|
590 |
|
|
|
760 |
|
Additions for tax positions
related to prior years
|
|
|
865 |
|
|
|
— |
|
Reductions for tax
positions related to prior years
|
|
|
(7,328 |
) |
|
|
(5,743 |
) |
Reductions for expiration
of statute of limitations
|
|
|
(66 |
) |
|
|
(356 |
) |
Settlements
|
|
|
(1,569 |
) |
|
|
(386 |
) |
|
|
|
|
|
|
|
|
|
Balance as of
October 31
|
|
$ |
88,448 |
|
|
$ |
95,956 |
|
|
|
|
|
|
|
|
|
|
|