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Income Taxes | 12 Months Ended
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Oct. 31, 2021
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The following table provides a reconciliation of our effective tax rate from the federal statutory tax rate for the fiscal years ended October 31, 2021, 2020, and 2019 ($ amounts in thousands):
| 2021 |  | 2020 |  | 2019
| $ |  | %* |  | $ |  | %* |  | $ |  | %*
Federal tax provision at statutory rate | 231,066 |  |  | 21.0 |  |  | 123,249 |  |  | 21.0 |  |  | 165,306 |  |  | 21.0 |
State tax provision, net of federal benefit | 50,153 |  |  | 4.6 |  |  | 25,793 |  |  | 4.4 |  |  | 37,898 |  |  | 4.8 |
Other permanent differences | 8,388 |  |  | 0.8 |  |  | 4,755 |  |  | 0.8 |  |  | 4,866 |  |  | 0.6 |
Reversal of accrual for uncertain tax positions | (993) |  |  | (0.1) |  |  | (1,749) |  |  | (0.3) |  |  | (5,348) |  |  | (0.7) |
Accrued interest on anticipated tax assessments | 297 |  |  | — |  |  | 404 |  |  | 0.1 |  |  | 453 |  |  | 0.1 |
Increase in unrecognized tax benefits | — |  |  | — |  |  | — |  |  | — |  |  | 2,153 |  |  | 0.3 |
Changes in tax law | — |  |  | — |  |  | — |  |  | — |  |  | (523) |  |  | (0.1) |
Excess stock compensation benefit | (4,698) |  |  | (0.4) |  |  | (3,339) |  |  | (0.6) |  |  | (2,143) |  |  | (0.3) |
Energy tax credits | (24,343) |  |  | (2.2) |  |  | (11,467) |  |  | (2.0) |  |  | (3,123) |  |  | (0.4) |
Other | 6,818 |  |  | 0.6 |  |  | 2,631 |  |  | 0.5 |  |  | (2,376) |  |  | (0.3) |
Income tax provision* | 266,688 |  |  | 24.2 |  |  | 140,277 |  |  | 23.9 |  |  | 197,163 |  |  | 25.0 |
* Due to rounding, percentages may not add We are subject to state tax in the jurisdictions in which we operate. We estimate our state tax liability based upon the individual taxing authorities’ regulations, estimates of income by taxing jurisdiction, and our ability to utilize certain tax-saving strategies. Based on our estimate of the allocation of income or loss among the various taxing jurisdictions and changes in tax regulations and their impact on our tax strategies, we estimated that our rate for state income taxes, before federal benefit, will be 5.8% in fiscal 2021. Our state income tax rate, before federal benefit, was 5.6% and 6.1% in fiscal 2020 and 2019, respectively The following table provides information regarding the provision for income taxes for each of the fiscal years ended October 31, 2021, 2020, and 2019 (amounts in thousands):
| 2021 |  | 2020 |  | 2019
Federal | $ | 213,314 |  |  | $ | 114,204 |  |  | $ | 161,904 |
State | 53,374 |  |  | 26,073 |  |  | 35,259 |
| $ | 266,688 |  |  | $ | 140,277 |  |  | $ | 197,163 |
Current | $ | 254,873 |  |  | $ | 42,497 |  |  | $ | 94,399 |
Deferred | 11,815 |  |  | 97,780 |  |  | 102,764 |
| $ | 266,688 |  |  | $ | 140,277 |  |  | $ | 197,163 |
The components of income taxes payable at October 31, 2021 and 2020 are set forth below (amounts in thousands):
| 2021 |  | 2020
Current | $ | 8,047 |  |  | $ | 6,591 |
Deferred | 207,233 |  |  | 192,383 |
| $ | 215,280 |  |  | $ | 198,974 |
The following table provides a reconciliation of the change in the unrecognized tax benefits for the years ended October 31, 2021, 2020, and 2019 (amounts in thousands):
| 2021 |  | 2020 |  | 2019
Balance, beginning of year | $ | 6,591 |  |  | $ | 7,897 |  |  | $ | 12,222 |
Increase in benefit as a result of tax positions taken in prior years | 624 |  |  | 512 |  |  | 2,148 |
Increase in benefit as a result of tax positions taken in current year | — |  |  | 306 |  |  | 1,126 |
Decrease in benefit as a result of settlements | — |  |  | — |  |  | (2,670) |
Decrease in benefit as a result of lapse of statute of limitations | (1,435) |  |  | (2,124) |  |  | (4,929) |
Balance, end of year | $ | 5,780 |  |  | $ | 6,591 |  |  | $ | 7,897 |
The statute of limitations has expired on our federal tax returns for fiscal years through 2017. The statue of limitations for our major state tax jurisdictions remains open for examination for fiscal year 2016 and subsequent years. Our unrecognized tax benefits are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. If these unrecognized tax benefits reverse in the future, they would have a beneficial impact on our effective tax rate at that time. During the next 12 months, it is reasonably possible that the amount of unrecognized tax benefits will change, but we are not able to provide a range of such change. The anticipated changes will be principally due to the expiration of tax statutes, settlements with taxing jurisdictions, increases due to new tax positions taken, and the accrual of estimated interest and penalties. The amounts accrued for interest and penalties are included in the current portion of “Income taxes payable” on our Consolidated Balance Sheets. 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, 2021, 2020, and 2019, and the amounts accrued for potential interest and penalties at October 31, 2021 and 2020 (amounts in thousands):
Expense recognized in the Consolidated Statements of Operations and Comprehensive Income |
Fiscal year |
2021 | $ | 376 |
2020 | $ | 512 |
2019 | $ | 593 |
Accrued at: |
October 31, 2021 | $ | 1,385 |
October 31, 2020 | $ | 1,270 |
The components of net deferred tax assets and liabilities at October 31, 2021 and 2020 are set forth below (amounts in thousands):
| 2021 |  | 2020
Deferred tax assets: |  |  |
Accrued expenses | $ | 55,904 |  |  | $ | 57,089 |
Impairment charges | 40,410 |  |  | 42,956 |
Inventory valuation differences | 29,285 |  |  | 48,276 |
Stock-based compensation expense | 16,543 |  |  | 19,905 |
Amounts related to unrecognized tax benefits | 262 |  |  | 319 |
State tax, net operating loss carryforwards | 46,339 |  |  | 68,705 |
Other | 1,877 |  |  | 1,830 |
Total assets | 190,620 |  |  | 239,080 |
Deferred tax liabilities: |  |  |
Capitalized interest | 37,475 |  |  | 37,697 |
Deferred income | 319,587 |  |  | 351,589 |
Expenses taken for tax purposes not for book | 4,716 |  |  | 5,346 |
Depreciation | 18,689 |  |  | 23,567 |
Deferred marketing | 17,386 |  |  | 13,264 |
Total liabilities | 397,853 |  |  | 431,463 |
Net deferred tax liabilities | $ | (207,233) |  |  | $ | (192,383) |
In accordance with GAAP, we assess whether a valuation allowance should be established based on our determination of whether it is more-likely-than-not that some portion or all of the deferred tax assets would not be realized. At October 31, 2021 and 2020, we determined that it was more-likely-than-not that our deferred tax assets would be realized. Accordingly, at October 31, 2021 and 2020, we did not have valuation allowances recorded against our federal or state deferred tax assets. We file tax returns in the various states in which we do business. Each state has its own statutes regarding the use of tax loss carryforwards. Some of the states in which we do business do not allow for the carryforward of losses, while others allow for carryforwards for 5 years to 20 years.

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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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
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