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Income Taxes | 12 Months Ended
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Oct. 31, 2023
Income Tax Disclosure [Abstract] |
Income Taxes | Income taxes Income before income taxes and income tax expense (benefit) are comprised of the following:
| 2023 |  | 2022 |  | 2021
Income before income taxes: |  |  |  |  |
Domestic | $ | 269,934 |  |  | $ | 302,549 |  |  | $ | 279,701 |
Foreign | 345,405 |  |  | 346,730 |  |  | 294,475 |
Total income before income taxes | $ | 615,339 |  |  | $ | 649,279 |  |  | $ | 574,176 |
Current: |  |  |  |  |
U.S. federal | $ | 54,157 |  |  | $ | 59,639 |  |  | $ | 40,879 |
State and local | 285 |  |  | 7,535 |  |  | 4,429 |
Foreign | 89,520 |  |  | 79,734 |  |  | 70,429 |
Total current | 143,962 |  |  | 146,908 |  |  | 115,737 |
Deferred: |  |  |  |  |
U.S. federal | (9,119) |  |  | (9,408) |  |  | 6,371 |
State and local | (1,279) |  |  | (596) |  |  | 1,470 |
Foreign | (5,718) |  |  | (728) |  |  | (3,770) |
Total deferred | (16,116) |  |  | (10,732) |  |  | 4,071 |
| $ | 127,846 |  |  | $ | 136,176 |  |  | $ | 119,808 |
A reconciliation of the U.S. statutory federal rate to the worldwide consolidated effective tax rate follows:
| 2023 |  | 2022 |  | 2021
Statutory federal income tax rate | 21.00 | % |  | 21.00 | % |  | 21.00 | %
Share-based and other compensation | (0.25) |  |  | 0.26 |  |  | (0.30) |
Foreign tax rate variances | 1.83 |  |  | 0.95 |  |  | 0.84 |
State and local taxes, net of federal income tax benefit | (0.13) |  |  | 0.84 |  |  | 0.81 |
Foreign-Derived Intangible Income Deduction | (2.24) |  |  | (1.59) |  |  | (1.19) |
Global Intangible Low-Taxed Income net of foreign tax credits | 0.71 |  |  | 0.23 |  |  | 0.44 |
Other – net | (0.14) |  |  | (0.72) |  |  | (0.73) |
Effective tax rate | 20.78 | % |  | 20.97 | % |  | 20.87 | %
Deferred income taxes are not provided on undistributed earnings of international subsidiaries that are intended to be permanently invested in their operations. These undistributed earnings represent the post-income tax earnings under U.S. GAAP not adjusted for previously taxed income which aggregated approximately $1,533,889 and $1,485,360 at October 31, 2023 and 2022, respectively. Should these earnings be distributed, applicable foreign tax credits, distributions of previously taxed income and utilization of other attributes would substantially offset taxes due upon the distribution. It is not practical to estimate the amount of additional taxes that might be payable on these basis differences because of the multiple methods by which these differences could reverse and the impact of withholding, U.S. state and local taxes and currency translation considerations. At October 31, 2023 and 2022, total unrecognized tax benefits were $8,002 and $2,872, respectively. The amounts that, if recognized, would impact the effective tax rate were $4,497 and $2,769 at October 31, 2023 and 2022, respectively. During 2023, unrecognized tax benefits related primarily to domestic positions and, as recognized, a substantial portion of the gross unrecognized tax benefits were offset against assets recorded in the Consolidated Balance Sheets. A reconciliation of the beginning and ending amount of unrecognized tax benefits for 2023, 2022 and 2021 is as follows:
| 2023 |  | 2022 |  | 2021
Gross balance at beginning of year | $ | 2,872 |  |  | $ | 3,720 |  |  | $ | 6,717 |
Additions based on tax positions related to the current year | 410 |  |  | 310 |  |  | 370 |
Additions for tax positions of prior years | 10 |  |  | — |  |  | — |
Increases related to acquired businesses | 6,602 |  |  | — |  |  | — |
Reductions for tax positions of prior years | — |  |  | (70) |  |  | (350) |
Lapse of statute of limitations | (1,892) |  |  | (1,088) |  |  | (3,017) |
Gross balance at end of year | $ | 8,002 |  |  | $ | 2,872 |  |  | $ | 3,720 |
At October 31, 2023 and 2022, we had accrued interest and penalty expense related to unrecognized tax benefits of $401 and $541, respectively. We include interest accrued related to unrecognized tax benefits in interest expense. Penalties, if incurred, would be recognized as other income (expense). We are subject to United States Federal income tax as well as income taxes in numerous state and foreign jurisdictions. We are subject to examination in the U.S. by the Internal Revenue Service ("IRS") for the years 2020 through 2023; years prior to 2020 year are closed to further examination by the IRS. Generally, major state and foreign jurisdiction tax years remain open to examination for years after 2017. Within the next twelve months, it is reasonably possible that certain statute of limitations periods would expire, which could result in a minimal decrease in our unrecognized tax benefits. Significant components of deferred tax assets and liabilities are as follows:
| 2023 |  | 2022
Deferred tax assets: |  |  |
Lease Liabilities | $ | 26,678 |  |  | $ | 28,413 |
Employee benefits | 26,680 |  |  | 22,079 |
Tax credit and loss carryforwards | 28,667 |  |  | 11,336 |
Other accruals not currently deductible for taxes | 8,944 |  |  | 15,616 |
Inventory adjustments | 5,932 |  |  | 6,423 |
Total deferred tax assets | 96,901 |  |  | 83,867 |
Valuation allowance | (23,732) |  |  | (10,130) |
Total deferred tax assets | 73,169 |  |  | 73,737 |
Deferred tax liabilities: |  |  |
Depreciation and amortization | 238,210 |  |  | 145,285 |
Lease right-of-use assets | 25,925 |  |  | 27,548 |
Other - net | 3,649 |  |  | 1,238 |
Total deferred tax liabilities | 267,784 |  |  | 174,071 |
Net deferred tax liabilities | $ | (194,615) |  |  | $ | (100,334) |
At October 31, 2023, we had $19,299 of tax credit carryforwards, $11,831 of which expires in 2028-2033 and $7,468 of which has an indefinite carryforward period. We also had $35,906 of state operating loss carryforwards, $36,850 of foreign operating loss carryforwards, and a $3,570 capital loss carryforward, of which $52,330 will expire in 2024 through 2038, and $23,997 of which has an indefinite carryforward period. The net change in the valuation allowance was an increase of $13,602 in 2023 and a decrease of $4,011 in 2022. The valuation allowance of $23,732 at October 31, 2023, related primarily to tax credits and loss carryforwards that may expire before being realized. We continue to assess the need for valuation allowances against deferred tax assets based on determinations of whether it is more likely than not that deferred tax benefits will be realized.

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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 -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org//1943274/2147480990/946-20-50-13 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org//1943274/2147480678/235-10-S99-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//740/tableOfContent Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-14 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-21 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482526/740-270-50-1 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482685/740-10-50-17 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB TOPIC 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org//1943274/2147479360/740-10-S99-2 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482603/740-30-50-2 + Details
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