Income Taxes (Tables)

12 Months Ended

Oct. 31, 2018

Reconciliation of Company's effective tax rate from federal statutory rate

The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2018, 2017, and 2016 ($ amounts in thousands):



	2018				2017				2016
	$		%*		$		%*		$		%*
Federal tax provision at statutory rate	217,914		23.3		285,009		35.0		206,159		35.0
State tax provision, net of federal benefit	47,073		5.0		34,656		4.3		26,970		4.6
Domestic production activities deduction	(18,168	)	(2.0	)	(12,835	)	(1.6	)	(16,874	)	(2.9	)
Other permanent differences	(3,726	)	(0.4	)	(1,468	)	(0.2	)	(7,037	)	(1.2	)
Reversal of accrual for uncertain tax positions	(4,741	)	(0.5	)	(3,981	)	(0.5	)	(11,177	)	(1.9	)
Accrued interest on anticipated tax assessments	737		0.1		984		0.1		1,964		0.3
Increase in unrecognized tax benefits	1,122		0.1		—		—		2,052		0.3
Valuation allowance — recognized	—		—		—		—		1,018		0.2
Valuation allowance — reversed	—		—		(32,154	)	(3.9	)	—		—
Changes in tax law	(38,740	)	(4.1	)	—		—		—		—
Excess stock compensation benefit	(4,236	)	(0.5	)	—		—		—		—
Other	(11,470	)	(1.2	)	8,605		1.1		3,857		0.7
Income tax provision*	185,765		19.9		278,816		34.2		206,932		35.1



*	Due to rounding, amounts may not add.

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2018, 2017, and 2016 (amounts in thousands):



	2018			2017		2016
Federal	$	157,836		$	278,095	$	189,170
State	27,929			721		17,762
	$	185,765		$	278,816	$	206,932

Current	$	207,695		$	93,106	$	186,662
Deferred	(21,930		)	185,710		20,270
	$	185,765		$	278,816	$	206,932

Schedule of Components of Income Taxes Payable [Table Text Block]

The components of income taxes payable at October 31, 2018 and 2017 are set forth below (amounts in thousands):



	2018		2017
Current	$	28,804	$	33,100
Deferred	2,155		24,409
	$	30,959	$	57,509

Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block]

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2018, 2017, and 2016 (amounts in thousands):



	2018			2017			2016
Balance, beginning of year	$	16,993		$	30,272		$	51,889
Increase in benefit as a result of tax positions taken in prior years	2,140			1,575			8,110
Increase in benefit as a result of tax positions taken in current year	949			431			694
Decrease in benefit as a result of settlements	(4,707		)	(9,174		)	(28,976		)
Decrease in benefit as a result of lapse of statute of limitations	(3,153		)	(6,111		)	(1,445		)
Balance, end of year	$	12,222		$	16,993		$	30,272

Tax Benefits potential interest and penalties

The following table provides information as to the amounts recognized in our tax provision, before reduction for applicable taxes and reversal of previously accrued interest and penalties, of potential interest and penalties in the fiscal years ended October 31, 2018, 2017, and 2016, and the amounts accrued for potential interest and penalties at October 31, 2018 and 2017 (amounts in thousands):



Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2018	$	1,152
2017	$	1,513
2016	$	3,426



Accrued at:
October 31, 2018	$	2,115
October 31, 2017	$	5,179

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

The components of net deferred tax assets and liabilities at October 31, 2018 and 2017 are set forth below (amounts in thousands):



	2018			2017
Deferred tax assets:
Accrued expenses	$	54,531		$	88,527
Impairment charges	51,124			84,534
Inventory valuation differences	42,765			80,224
Stock-based compensation expense	27,949			41,712
Amounts related to unrecognized tax benefits	1,197			3,800
State tax, net operating loss carryforwards	73,288			48,343
Other	125			1,303
Total assets	250,979			348,443
Deferred tax liabilities:
Capitalized interest	43,982			76,914
Deferred income	181,839			261,286
Expenses taken for tax purposes not for book	5,477			9,878
Depreciation	6,877			4,694
Deferred marketing	14,959			20,080
Total liabilities	253,134			372,852
Net deferred tax liabilities	(2,155		)	(24,409		)