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INCOME TAXES (Tables) | 12 Months Ended
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Oct. 31, 2012
Provision for Income Taxes | The provision for income taxes consists of the following (Dollars in millions):
For the years ended October 31, |  | 2012 |  |  | 2011 |  |  | 2010 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 19.7 |  |  | $ | 25.6 |  |  | $ | 15.2 |
State and local |  |  | 5.4 |  |  |  | 4.4 |  |  |  | 5.8 |
Non-U.S. |  |  | 11.5 |  |  |  | 25.2 |  |  |  | 14.9 |
|  |  | 36.6 |  |  |  | 55.2 |  |  |  | 35.9 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 10.3 |  |  |  | 11.0 |  |  |  | (0.4 | )
State and local |  |  | 2.7 |  |  |  | 5.0 |  |  |  | 0.7 |
Non-U.S. |  |  | 7.2 |  |  |  | (6.2 | ) |  |  | 7.3 |
|  |  | 20.2 |  |  |  | 9.8 |  |  |  | 7.6 |
|  | $ | 56.8 |  |  | $ | 65.0 |  |  | $ | 43.5 |
Reconciliation of Effective Income Tax Rate | The following is a reconciliation of the provision for income taxes based on the federal statutory rate to the Company’s effective income tax rate:
For the years ended October 31, |  | 2012 |  |  | 2011 |  |  | 2010 |
United States federal tax rate |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Non-U.S. tax rates |  |  | -1.40 | % |  |  | -10.00 | % |  |  | -15.00 | %
State and local taxes, net of federal tax benefit |  |  | 2.20 | % |  |  | 1.90 | % |  |  | 1.30 | %
United States tax credits |  |  | -0.70 | % |  |  | -0.80 | % |  |  | -4.00 | %
Unrecognized tax benefits |  |  | -5.60 | % |  |  | 12.40 | % |  |  | -1.50 | %
Valuation allowance |  |  | 1.50 | % |  |  | -14.40 | % |  |  | 1.90 | %
Withholding tax |  |  | 1.10 | % |  |  | 1.10 | % |  |  | 1.30 | %
Foreign partnerships |  |  | -4.20 | % |  |  | -1.00 | % |  |  | — |
Other items |  |  | 2.50 | % |  |  | 2.80 | % |  |  | -1.50 | %
|  |  | 30.40 | % |  |  | 27.00 | % |  |  | 17.50 | %
Significant Components of the Company's Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of October 31 for the years indicated were as follows (Dollars in millions):
|  | 2012 |  |  | 2011 |
Deferred Tax Assets |  |  |  |  |  |  |  |
Net operating loss carryforwards |  | $ | 89.5 |  |  | $ | 132.3 |
Minimum pension liabilities |  |  | 61.9 |  |  |  | 51.0 |
Insurance operations |  |  | 9.1 |  |  |  | 9.7 |
Incentives |  |  | 4.1 |  |  |  | 6.6 |
Environmental reserves |  |  | 7.4 |  |  |  | 7.1 |
Inventories |  |  | 2.7 |  |  |  | — |
State income tax |  |  | 9.2 |  |  |  | 9.0 |
Postretirement |  |  | 7.4 |  |  |  | 9.5 |
Other |  |  | 5.7 |  |  |  | 4.1 |
Derivatives instruments |  |  | 0.5 |  |  |  | — |
Interest |  |  | 6.2 |  |  |  | 7.0 |
Allowance for doubtful accounts |  |  | 4.5 |  |  |  | 3.3 |
Restructuring reserves |  |  | 1.1 |  |  |  | 2.6 |
Deferred compensation |  |  | 2.5 |  |  |  | 2.9 |
Foreign tax credits |  |  | 1.8 |  |  |  | 1.8 |
Vacation accruals |  |  | 1.4 |  |  |  | 1.2 |
Stock options |  |  | 1.4 |  |  |  | 2.1 |
Severance |  |  | 0.2 |  |  |  | — |
Workers compensation accruals |  |  | 2.5 |  |  |  | 1.0 |
Total Deferred Tax Assets |  |  | 219.1 |  |  |  | 251.2 |
Valuation allowance |  |  | (56.6 | ) |  |  | (45.0 | )
Net Deferred Tax Assets |  |  | 162.5 |  |  |  | 206.2 |
Deferred Tax Liabilities |  |  |  |  |  |  |  |
Properties, plants and equipment |  |  | 121.6 |  |  |  | 108.4 |
Goodwill and other intangible assets |  |  | 96.4 |  |  |  | 80.0 |
Inventories |  |  | — |  |  |  | 1.0 |
Derivative instruments |  |  | — |  |  |  | 0.3 |
Foreign exchange |  |  | 7.8 |  |  |  | 1.2 |
Timberland transactions |  |  | 95.7 |  |  |  | 95.7 |
Pension |  |  | 13.6 |  |  |  | 22.6 |
Total Deferred Tax Liabilities |  |  | 335.1 |  |  |  | 309.2 |
Net Deferred Tax Liability |  | $ | (172.6 | ) |  | $ | (103.0 | )
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ended amount of unrecognized tax benefits is as follows:
|  | 2012 |  |  | 2011 |  |  | 2010 |
Balance at November 1 |  | $ | 79.6 |  |  | $ | 35.4 |  |  | $ | 45.5 |
Increases in tax provisions for prior years |  |  | 6.8 |  |  |  | 49.7 |  |  |  | 0.1 |
Decreases in tax provisions for prior years |  |  | (2.1 | ) |  |  | (1.6 | ) |  |  | (2.7 | )
Increases in tax positions for current years |  |  | 3.9 |  |  |  | — |  |  |  | 1.5 |
Settlements with taxing authorities |  |  | (32.5 | ) |  |  | (4.5 | ) |  |  | (6.7 | )
Lapse in statute of limitations |  |  | (0.3 | ) |  |  | — |  |  |  | — |
Currency translation |  |  | (6.6 | ) |  |  | 0.6 |  |  |  | (2.3 | )
Balance at October 31 |  | $ | 48.8 |  |  | $ | 79.6 |  |  | $ | 35.4 |

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- 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=6907707&loc=d3e32537-109319 + Details
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- 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=6907707&loc=d3e32687-109319 + Details
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- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References No definition available. + Details
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- Definition Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name FASB Interpretation (FIN) -Number 48 -Paragraph 21 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
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