XML 43 R23.htm IDEA: XBRL DOCUMENT v3.19.2
Income Taxes
6 Months Ended
Apr. 30, 2019
Income Tax Disclosure [Abstract]  
Income Taxes

Note 16.  Income Taxes

The Company recorded income tax expense of $0.1 million for the three and six months ended April 30, 2019 compared to an income tax benefit totaling $3.0 million for the six months ended April 30, 2018.  There was no income tax expense recorded for the three months ended April 30, 2018.  The income tax benefit for the six months ended April 30, 2018 primarily related to the Tax Cuts and Jobs Act (the “Act”) that was enacted on December 22, 2017. The Act reduced the U.S. federal corporate tax rate from 34% to 21% effective January 1, 2018 which resulted in a deferred tax benefit of $1.0 million primarily related to a reduction of the Company’s deferred tax liability for an in process research and development asset (“IPR&D”).  The Act also established an unlimited carryforward period for the net operating loss (“NOL”) the Company generated in fiscal year 2018.  This provision of the Act resulted in a reduction of the valuation allowance attributable to deferred tax assets at the enactment date by $2.0 million based on the indefinite life of the resulting NOL as well as the deferred tax liability for its IPR&D asset.