XML 60 R42.htm IDEA: XBRL DOCUMENT
v3.3.1.900

Income Taxes (Tables) | 12 Months Ended
--- | ---
Oct. 31, 2015
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The provision for income taxes consists of the following (Dollars in millions):
For the years ended October 31, |  | 2015 |  |  | 2014 |  |  | 2013 |
Current |  |  |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 18.3 |  |  | $ | 53.1 |  |  | $ | 54.3 |
State and local |  |  | 4.0 |  |  |  | 9.8 |  |  |  | 8.8 |
Non-U.S. |  |  | 29.6 |  |  |  | 38.0 |  |  |  | 33.1 |
|  |  | 51.9 |  |  |  | 100.9 |  |  |  | 96.2 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | 2.4 |  |  |  | 2.7 |  |  |  | (6.3 | )
State and local |  |  | 0.2 |  |  |  | (1.6 | ) |  |  | (0.3 | )
Non-U.S. |  |  | (6.1 | ) |  |  | 13.0 |  |  |  | 9.2 |
|  |  | (3.5 | ) |  |  | 14.1 |  |  |  | 2.6 |
|  | $ | 48.4 |  |  | $ | 115.0 |  |  | $ | 98.8 |
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, |  | 2015 |  |  | 2014 |  |  | 2013 |
United States federal tax rate |  |  | 35.00 | % |  |  | 35.00 | % |  |  | 35.00 | %
Non-U.S. tax rates |  |  | (4.30 | %) |  |  | 2.90 | % |  |  | 2.20 | %
State and local taxes, net of federal tax benefit |  |  | 2.80 | % |  |  | 4.20 | % |  |  | 2.50 | %
U.S. domestic production activity deduction |  |  | (0.90 | %) |  |  | (3.10 | %) |  |  | (2.00 | %)
Unrecognized tax benefits |  |  | 2.50 | % |  |  | 7.20 | % |  |  | 0.40 | %
Net impact of released and new valuation allowances |  |  | 3.00 | % |  |  | 12.70 | % |  |  | 0.50 | %
Withholding tax |  |  | 2.70 | % |  |  | 2.90 | % |  |  | 2.90 | %
Foreign partnerships |  |  | (5.80 | %) |  |  | (5.30 | %) |  |  | (3.60 | %)
Foreign income inclusion |  |  | 0.40 | % |  |  | — |  |  |  | 1.70 | %
Venezuela balance sheet remeasurement |  |  | 5.90 | % |  |  | — |  |  |  | — |
Nondeductible goodwill |  |  | 2.50 | % |  |  | 15.60 | % |  |  | — |
Other items |  |  | (1.60 | %) |  |  | 0.70 | % |  |  | 1.00 | %
|  |  | 42.20 | % |  |  | 72.80 | % |  |  | 40.60 | %
Significant Components of 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):
|  | 2015 |  |  | 2014 |
Deferred Tax Assets |  |  |  |  |  |  |  |
Net operating loss and other carryforwards |  | $ | 80.8 |  |  | $ | 108.5 |
Pension liabilities |  |  | 53.6 |  |  |  | 48.2 |
Insurance operations |  |  | 3.5 |  |  |  | 4.1 |
Incentive liabilities |  |  | 5.4 |  |  |  | 12.9 |
Environmental reserves |  |  | 0.4 |  |  |  | 5.4 |
Inventories |  |  | 6.5 |  |  |  | 5.7 |
State income taxes |  |  | 7.4 |  |  |  | 9.2 |
Postretirement benefit obligations |  |  | 3.5 |  |  |  | 4.1 |
Other |  |  | 11.3 |  |  |  | 7.6 |
Interest accrued |  |  | 1.6 |  |  |  | 2.3 |
Allowance for doubtful accounts |  |  | 3.4 |  |  |  | 4.6 |
Restructuring reserves |  |  | 6.0 |  |  |  | 1.4 |
Deferred compensation |  |  | 2.9 |  |  |  | 2.7 |
Foreign tax credits |  |  | 2.3 |  |  |  | 2.3 |
Vacation accruals |  |  | 1.5 |  |  |  | 1.8 |
Workers compensation accruals |  |  | 3.5 |  |  |  | 4.6 |
Total Deferred Tax Assets |  |  | 193.6 |  |  |  | 225.4 |
Valuation allowance |  |  | (89.5 | ) |  |  | (108.5 | )
Net Deferred Tax Assets |  |  | 104.1 |  |  |  | 116.9 |
Deferred Tax Liabilities |  |  |  |  |  |  |  |
Properties, plants and equipment |  |  | 84.7 |  |  |  | 109.0 |
Goodwill and other intangible assets |  |  | 80.1 |  |  |  | 79.9 |
Foreign Income Inclusion |  |  | 1.1 |  |  |  | 1.1 |
Foreign exchange gains |  |  | 6.1 |  |  |  | 7.4 |
Timberland transactions |  |  | 116.2 |  |  |  | 106.4 |
Total Deferred Tax Liabilities |  |  | 288.2 |  |  |  | 303.8 |
Net Deferred Tax Liability |  | $ | (184.1 | ) |  | $ | (186.9 | )
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Balance at November 1 |  | $ | 34.3 |  |  | $ | 30.5 |  |  | $ | 55.9 |
Increases in tax positions for prior years |  |  | 8.5 |  |  |  | 5.7 |  |  |  | 4.5 |
Decreases in tax positions for prior years |  |  | (2.2 | ) |  |  | (8.2 | ) |  |  | (11.0 | )
Increases in tax positions for current years |  |  | 6.2 |  |  |  | 10.3 |  |  |  | 8.8 |
Settlements with taxing authorities |  |  | (5.7 | ) |  |  | (0.6 | ) |  |  | (30.3 | )
Lapse in statute of limitations |  |  | (6.2 | ) |  |  | (0.8 | ) |  |  | — |
Currency translation |  |  | (5.3 | ) |  |  | (2.6 | ) |  |  | 2.6 |
Balance at October 31 |  | $ | 29.6 |  |  | $ | 34.3 |  |  | $ | 30.5 |

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 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
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=6907707&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 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 + Details
Name: | us-gaap_SummaryOfIncomeTaxContingenciesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration