XML 45 R31.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Income Taxes (Tables) | 12 Months Ended
--- | ---
Oct. 31, 2017
Income Tax Disclosure [Abstract] |
Schedule of Income Before Income Tax, Domestic and Foreign | The components of income from continuing operations before income taxes and extraordinary items and the income tax provision related to income from all operations in our Consolidated Statements of Income consist of:
Years Ended October 31, (In millions) | 2017 |  | 2016 |  | 2015
Income before income taxes: |  |  |  |  |
United States | $ | 7.8 |  |  | $ | 31.5 |  |  | $ | 31.9 |
Foreign | 386.2 |  |  | 264.1 |  |  | 183.6 |
| $ | 394.0 |  |  | $ | 295.6 |  |  | $ | 215.5 |
Income tax provision | $ | 21.1 |  |  | $ | 20.7 |  |  | $ | 10.4 |
Schedule of Income Tax Provision Related to Income from Continuing Operations | The income tax provision (benefit) related to income from continuing operations in our Consolidated Statements of Income consists of:
Years Ended October 31, (In millions) | 2017 |  | 2016 |  | 2015
Current: |  |  |  |  |
Federal | $ | 6.9 |  |  | $ | 14.6 |  |  | $ | 0.2 |
State | 1.8 |  |  | 1.3 |  |  | 1.2 |
Foreign | 19.5 |  |  | 15.5 |  |  | 3.4 |
| 28.2 |  |  | 31.4 |  |  | 4.8 |
Deferred: |  |  |  |  |
Federal | (3.9 | ) |  | (3.9 | ) |  | 12.0 |
State | 1.4 |  |  | (0.7 | ) |  | (0.5 | )
Foreign | (4.6 | ) |  | (6.1 | ) |  | (5.9 | )
| (7.1 | ) |  | (10.7 | ) |  | 5.6 |
Income tax provision | $ | 21.1 |  |  | $ | 20.7 |  |  | $ | 10.4 |
Schedule of Provision for Income Taxes Attributable to Income from Operations and Amount Computed by Applying Statutory Federal Income Tax Rate | We reconcile the provision for income taxes attributable to income from operations and the amount computed by applying the statutory federal income tax rate of 35% to income before income taxes as follows:
Years Ended October 31, (In millions) | 2017 |  | 2016 |  | 2015
Computed expected provision for taxes | $ | 137.9 |  |  | $ | 103.5 |  |  | $ | 75.4 |
(Decrease) increase in taxes resulting from: |  |  |  |  |
Income earned outside the United States subject to different tax rates | (114.6 | ) |  | (81.2 | ) |  | (72.6 | )
State taxes, net of federal income tax benefit | 3.9 |  |  | 1.2 |  |  | 1.5 |
Research and development credit | (0.7 | ) |  | (1.2 | ) |  | (0.7 | )
Incentive stock option compensation and non-deductible employee compensation | (12.9 | ) |  | 0.5 |  |  | 0.4 |
Tax accrual adjustment | 5.0 |  |  | (5.0 | ) |  | 3.8 |
Other, net | 2.5 |  |  | 2.9 |  |  | 2.6 |
Actual provision for income taxes | $ | 21.1 |  |  | $ | 20.7 |  |  | $ | 10.4 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to the deferred tax assets and liabilities are:
Years Ended October 31, (In millions) | 2017 |  | 2016
Deferred tax assets: |  |  |
Accounts receivable, principally due to allowances for doubtful accounts | $ | 5.4 |  |  | $ | 3.3 |
Inventories | 6.1 |  |  | 6.2 |
Litigation settlements | 0.8 |  |  | 0.5 |
Accrued liabilities, reserves and compensation accruals | 50.4 |  |  | 50.3 |
Foreign deferred tax assets (Puerto Rico tax incentives) | 37.9 |  |  | — |
Restricted stock and stock option expenses | 39.7 |  |  | 24.5 |
Net operating loss carryforwards | 3.7 |  |  | 2.7 |
Plant and equipment | — |  |  | 0.4 |
Research and experimental expenses - Section 59(e) | 5.1 |  |  | 6.7 |
Tax credit carryforwards | 8.7 |  |  | 1.8 |
Total gross deferred tax assets | 157.8 |  |  | 96.4 |
Less valuation allowance | (59.1 | ) |  | (13.3 | )
Deferred tax assets | 98.7 |  |  | 83.1 |
Deferred tax liabilities: |  |  |
Tax deductible goodwill | (32.4 | ) |  | (29.5 | )
Plant and equipment | (4.8 | ) |  | — |
Transaction costs | (1.1 | ) |  | (1.1 | )
Foreign deferred tax liabilities | (13.0 | ) |  | (5.6 | )
Other intangible assets | (25.9 | ) |  | (31.2 | )
Total gross deferred tax liabilities | (77.2 | ) |  | (67.4 | )
Net deferred tax assets | $ | 21.5 |  |  | $ | 15.7 |
Schedule of Changes in Gross Unrecognized Tax Benefits | The aggregated changes in the balance of gross unrecognized tax benefits were as follows:
(In millions) |
Balance at October 31, 2015 | $ | 40.3 |
Increase from prior year's UTB's | 4.5 |
Increase from current year's UTB's | 6.7 |
UTB (decrease) from expiration of statute of limitations | (11.6 | )
Balance at October 31, 2016 | 39.9 |
Increase from prior year's UTB's | 12.9 |
Increase from current year's UTB's | 9.9 |
UTB (decrease) from expiration of statute of limitations | (2.8 | )
Balance at October 31, 2017 | $ | 59.9 |

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=65882285&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)(1)(i)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the change in unrecognized tax benefits. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 55 -Paragraph 217 -URI http://asc.fasb.org/extlink&oid=75116239&loc=d3e36027-109320 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI http://asc.fasb.org/extlink&oid=65882285&loc=SL6600010-109319 + Details
Name: | us-gaap_ScheduleOfUnrecognizedTaxBenefitsRollForwardTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration