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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