Income Taxes (Tables)

12 Months Ended

Oct. 31, 2023

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, 2023, 2022, and 2021 ($ amounts in thousands):


	2023		2022		2021
	$	%*	$	%*	$	%*
Federal tax provision at statutory rate	386,898	21.0	357,782	21.0	231,066	21.0
State tax provision, net of federal benefit	90,698	4.9	75,465	4.4	50,153	4.6
Other permanent differences	(2,782)	(0.2)	4,386	0.3	8,388	0.8
Reversal of accrual for uncertain tax positions	(621)	—	(1,690)	(0.1)	(993)	(0.1)
Accrued interest on anticipated tax assessments	403	—	234	—	297	—
Increase in unrecognized tax benefits	2,209	0.1	658	—	—	—



Excess stock compensation benefit	(7,320)	(0.4)	(3,012)	(0.2)	(4,698)	(0.4)
Energy tax credits	(2,348)	(0.1)	(22,153)	(1.3)	(24,343)	(2.2)
Other	3,163	0.2	5,556	0.3	6,818	0.6
Income tax provision*	470,300	25.5	417,226	24.5	266,688	24.2

* Due to rounding, percentages may not add

Schedule of Components of Income Tax Expense (Benefit)

The following table provides information regarding the provision (benefit) for income taxes for each of the fiscal years ended October 31, 2023, 2022, and 2021 (amounts in thousands):


	2023		2022		2021
Federal	$	385,650	$	343,524	$	213,314
State	84,650		73,702		53,374
	$	470,300	$	417,226	$	266,688

Current	$	433,837	$	513,075	$	254,873
Deferred	36,463		(95,849)		11,815
	$	470,300	$	417,226	$	266,688

Schedule of Components of Income Taxes Payable

The components of income taxes payable at October 31, 2023 and 2022 are set forth below (amounts in thousands):


	2023		2022
Current	$	5,978	$	168,548
Deferred	160,290		122,931
	$	166,268	$	291,479

Schedule of Unrecognized Tax Benefits Roll Forward

The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2023, 2022, and 2021 (amounts in thousands):


	2023		2022		2021
Balance, beginning of year	$	4,922	$	5,780	$	6,591
Increase in benefit as a result of tax positions taken in prior years	3,633		296		624
Increase in benefit as a result of tax positions taken in current year	2,733		833		—


Decrease in benefit as a result of lapse of statute of limitations	(776)		(1,987)		(1,435)
Balance, end of year	$	10,512	$	4,922	$	5,780

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 each of the three fiscal years ended October 31, 2023, 2022, and 2021, and the amounts accrued for potential interest and penalties at October 31, 2023 and 2022 (amounts in thousands):


Expense recognized in the Consolidated Statements of Operations and Comprehensive Income
Fiscal year
2023	$	332
2022	$	296
2021	$	376


Accrued at:
October 31, 2023	$	1,259
October 31, 2022	$	1,157

Schedule of Deferred Tax Assets and Liabilities

The components of net deferred tax assets and liabilities at October 31, 2023 and 2022 are set forth below (amounts in thousands):


	2023		2022
Deferred tax assets:
Accrued expenses	$	48,088	$	50,164
Impairment charges	25,005		37,418
Inventory valuation differences	20,690		41,154
Stock-based compensation expense	12,603		17,064
Amounts related to unrecognized tax benefits	1,385		203
State tax, net operating loss carryforwards	11,129		24,185

Other	1,709		1,691
Total assets	120,609		171,879
Deferred tax liabilities:
Capitalized interest	22,909		26,791
Deferred income	223,225		226,929
Expenses taken for tax purposes not for book	3,143		2,961
Depreciation	14,484		19,391
Deferred marketing	17,138		18,738

Total liabilities	280,899		294,810
Net deferred tax liabilities	$	(160,290)	$	(122,931)