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Income Taxes | 12 Months Ended
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Oct. 25, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes On December 22, 2017, the United States enacted comprehensive tax legislation into law, H.R. 1, commonly referred to as the Tax Cuts and Jobs Act (Tax Act). Except for certain provisions, the Tax Act is effective for tax years beginning on or after January 1, 2018. As a fiscal year U.S. taxpayer, the majority of the provisions, such as eliminating the domestic manufacturing deduction, creating new taxes on certain foreign sourced income, and introducing new limitations on certain business deductions, became effective for the Company in fiscal 2019. The global intangible low taxed income (GILTI) and foreign derived intangible income (FDII) provisions became effective for fiscal 2019 and resulted in an immaterial impact to the Company. For fiscal 2018, the most significant impacts included lowering of the U.S. federal corporate income tax rate, remeasuring certain net deferred tax liabilities, and the transition tax on the deemed repatriation of certain foreign earnings. The phase-in of the lower federal corporate income tax rate resulted in a 21.0 percent tax rate for fiscal 2019 and a blended tax rate of 23.4 percent for fiscal 2018, as compared to the pretax reform federal corporate income tax rate of 35.0 percent. The tax rate will continue to be 21.0 percent in subsequent fiscal years. In March 2018, the FASB issued ASU 2018-05, which provides guidance for companies related to the Tax Act. ASU 2018-05 allows for a measurement period of up to one year after the enactment date of the Tax Act to finalize the recording of the related tax impacts. The Company made reasonable estimates to record a net tax benefit of $72.9 million during fiscal 2018. This provisional net tax benefit included a benefit of $81.2 million from re-measuring the Company's net U.S. deferred tax liabilities, partially offset by the Company's accrual for the transition tax and other U.S. tax law changes of $8.3 million. The Company completed its provisional tax analysis during the first quarter of fiscal 2019 and did not record any significant adjustments to the provisional amounts booked in fiscal 2018. With respect to the Tax Act provision on GILTI, the Company has elected to treat GILTI as a period cost. The components of the Provision for Income Taxes are as follows:
(in thousands) |  | 2020 |  | 2019 |  | 2018
Current |  |  |  |  |  |
U.S. Federal |  | $ | 142,708 |  |  | $ | 161,233 |  |  | $ | 134,869 |
State |  | 13,353 |  |  | 30,774 |  |  | 27,782 |
Foreign |  | 18,293 |  |  | 9,919 |  |  | 13,492 |
Total Current |  | 174,354 |  |  | 201,926 |  |  | 176,143 |
Deferred |  |  |  |  |  |
U.S. Federal |  | 34,408 |  |  | 27,817 |  |  | (15,573) |
State |  | 4,937 |  |  | 1,473 |  |  | 10,975 |
Foreign |  | (7,306) |  |  | (649) |  |  | (2,843) |
Total Deferred |  | 32,039 |  |  | 28,641 |  |  | (7,441) |
Total Provision for Income Taxes |  | $ | 206,393 |  |  | $ | 230,567 |  |  | $ | 168,702 |
Deferred Income Taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the deferred income tax liabilities and assets are as follows:
(in thousands) |  | October 25, 2020 |  | October 27, 2019
Deferred Tax Liabilities |  |  |  |
Goodwill and Intangible Assets |  | $ | (269,218) |  |  | $ | (240,935) |
Tax over Book Depreciation and Basis Differences |  | (164,911) |  |  | (153,104) |
Other, net |  | (24,316) |  |  | (11,844) |
Deferred Tax Assets |  |  |  |
Pension and Other Post-retirement Benefits |  | 97,129 |  |  | 105,948 |
Employee Compensation Related Liabilities |  | 65,024 |  |  | 65,887 |
Marketing and Promotional Accruals |  | 20,783 |  |  | 15,581 |
Other, net |  | 62,302 |  |  | 41,893 |
Net Deferred Tax (Liabilities) Assets |  | $ | (213,207) |  |  | $ | (176,574) |
Reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:
|  | 2020 |  | 2019 |  | 2018
U.S. Statutory Rate |  | 21.0 | % |  | 21.0 | % |  | 23.4 | %
State Taxes on Income, Net of Federal Tax Benefit |  | 1.6 |  |  | 2.5 |  |  | 2.6 |
Domestic Production Activities Deduction |  | — |  |  | — |  |  | (1.5) |
Divestitures |  | — |  |  | (1.4) |  |  | — |
Provisional Tax Law Change |  | — |  |  | — |  |  | (6.3) |
Stock-based Compensation |  | (3.1) |  |  | (2.2) |  |  | (3.4) |
All Other, net |  | (1.0) |  |  | (0.8) |  |  | (0.5) |
Effective Tax Rate |  | 18.5 | % |  | 19.1 | % |  | 14.3 | %
In fiscal 2019, the Company recorded a net tax benefit of $17.5 million related to the divestiture of CytoSport. As of October 25, 2020, the Company had $162.0 million of undistributed earnings from non-U.S. subsidiaries. The Company maintains all earnings are permanently reinvested. Accordingly, no additional income taxes have been provided for withholding tax, state tax or other taxes. Total income taxes paid during fiscal years 2020, 2019, and 2018 were $169.7 million, $221.4 million, and $147.5 million, respectively. The following table sets forth changes in the unrecognized tax benefits, excluding interest and penalties, for fiscal years 2020 and 2019.
(in thousands) |  |
Balance as of October 28, 2018 |  | $ | 33,117 |
Tax Positions Related to the Current Period |  |
Increases |  | 4,885 |
Tax Positions Related to Prior Periods |  |
Increases |  | 2,997 |
Decreases |  | (9,585) |
Settlements |  | (927) |
Decreases Related to a Lapse of Applicable Statute of Limitations |  | (2,661) |
Balance as of October 27, 2019 |  | $ | 27,826 |
Tax Positions Related to the Current Period |  |
Increases |  | 3,177 |
Tax Positions Related to Prior Periods |  |
Increases |  | 8,299 |
Decreases |  | (2,549) |
Settlements |  | (1,107) |
Decreases Related to a Lapse of Applicable Statute of Limitations |  | (2,404) |
Balance as of October 25, 2020 |  | $ | 33,242 |
The amount of unrecognized tax benefits, including interest and penalties, is recorded in Other Long-term Liabilities. If recognized as of October 25, 2020, and October 27, 2019, $29.1 million, and $22.5 million, respectively, would impact the Company’s effective tax rate. The Company includes accrued interest and penalties related to uncertain tax positions in income tax expense, with losses of $1.9 million and $0.1 million included in expense for fiscal 2020 and 2019, respectively. The amount of accrued interest and penalties at October 25, 2020, and October 27, 2019, associated with unrecognized tax benefits was $7.2 million and $6.2 million, respectively. The Company is regularly audited by federal and state taxing authorities. The U.S. Internal Revenue Service (I.R.S.) concluded their examination of fiscal 2018 in the fourth quarter of fiscal 2020. The Company has elected to participate in the Compliance Assurance Process (CAP) for fiscal years through 2021. The objective of CAP is to contemporaneously work with the I.R.S. to achieve federal tax compliance and resolve all or most of the issues prior to filing of the tax return. The Company may elect to continue participating in CAP for future tax years; the Company may withdraw from the program at any time. The Company is in various stages of audit by several state taxing authorities on a variety of fiscal years, as far back as 2011. While it is reasonably possible that one or more of these audits may be completed within the next 12 months and the related unrecognized tax benefits may change based on the status of the examinations, it is not possible to reasonably estimate the effect of any amount of such change to previously recorded uncertain tax positions.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 21 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32857-109319 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330215-122817 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 17 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32809-109319 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -URI http://asc.fasb.org/extlink&oid=116825942&loc=d3e330036-122817 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 14 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32705-109319 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 270 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -URI http://asc.fasb.org/topic&trid=2144680 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 30 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331 + Details
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