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INCOME TAXES (Tables)

12 Months Ended

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

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.

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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

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X

- 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

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-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319



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-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.

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