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Income Taxes | 12 Months Ended
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Oct. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | INCOME TAXES Geographic Sources of Income from Continuing Operations Before Income Taxes
| Years Ended October 31,
(in millions) | 2020 |  | 2019 |  | 2018
United States | $ | 45.2 |  |  | $ | 137.1 |  |  | $ | 94.8 |
Foreign | 8.1 |  |  | 23.1 |  |  | (7.1) |
Income from continuing operations before income taxes | $ | 53.3 |  |  | $ | 160.2 |  |  | $ | 87.7 |
Components of Income Tax (Provision) Benefit
| Years Ended October 31,
(in millions) | 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | (59.3) |  |  | $ | (6.4) |  |  | $ | (4.3) |
State | (28.6) |  |  | (10.7) |  |  | (7.3) |
Foreign | (1.7) |  |  | (5.9) |  |  | (3.9) |
Deferred: |  |  |  |  |
Federal | 23.2 |  |  | (8.5) |  |  | 21.8 |
State | 12.5 |  |  | (1.6) |  |  | 0.2 |
Foreign | 0.9 |  |  | 0.4 |  |  | 1.7 |
Income tax (provision) benefit | $ | (53.1) |  |  | $ | (32.7) |  |  | $ | 8.2 |
Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate
| Years Ended October 31,
| 2020 |  | 2019 |  | 2018
U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 23.3 | %
State and local income taxes, net of federal tax benefit | (0.6) |  |  | 5.9 |  |  | 6.9 |
Federal and state tax credits | (4.7) |  |  | (3.9) |  |  | (7.8) |
Impact of foreign operations | 1.3 |  |  | (1.0) |  |  | 1.3 |
Changes in uncertain tax positions | (2.0) |  |  | (0.8) |  |  | (6.7) |
Incremental tax benefit from share-based compensation awards | (1.6) |  |  | (0.7) |  |  | (3.9) |
Energy efficiency incentives | (3.8) |  |  | — |  |  | (3.2) |
Impact from goodwill impairment | 81.7 |  |  | — |  |  | 4.4 |
Transition tax on foreign earnings | — |  |  | (1.1) |  |  | 5.1 |
Remeasurement of U.S. deferred taxes | — |  |  | (0.3) |  |  | (31.5) |
Nondeductible expenses | 4.4 |  |  | 2.1 |  |  | 2.4 |
Other, net | 3.9 |  |  | (0.8) |  |  | 0.3 |
Effective tax rate | 99.6 | % |  | 20.4 | % |  | (9.4) | %
On December 22, 2017, the Tax Act was enacted into law. Among other provisions, it reduced the federal corporate income tax rate from 35% to 21% and required companies to pay a one-time transition tax on the deemed repatriation of indefinitely reinvested earnings of international subsidiaries. Our U.S. statutory federal tax rate for fiscal 2019 and future years was reduced to 21% from our blended rate of 23.3% in fiscal 2018. Other provisions under the Tax Act became effective for us in fiscal 2019, including limitations on deductibility of interest and executive compensation, as well as a new minimum tax on Global Intangible Low-Taxed Income (“GILTI”), which we have elected to account for as a period cost. During 2018, we finalized our analysis of the transitional impacts of the Tax Act. As a result, we recorded a one-time tax benefit of $29.6 million from the remeasurement of certain deferred tax assets and liabilities based on the new tax rates at which they are expected to reverse in the future. In addition, we recorded an expense of $4.5 million for the one-time transition tax on the deemed repatriation of indefinitely reinvested earnings of our international subsidiaries. Upon finalizing our tax filings, the impact of the transition tax was ultimately an expense of $2.7 million, which resulted in a benefit of $1.8 million that was recorded in the fourth quarter of 2019. We continue planning to reinvest our foreign earnings to fund future non-U.S. growth and expansion, and we do not anticipate remitting such earnings to the United States. While U.S. federal tax expense has been recognized as a result of the Tax Act, no deferred tax liabilities with respect to federal and state income taxes or foreign withholding taxes have been recognized. During 2020 and 2019, we had effective tax rates of 99.6% and 20.4%, respectively, resulting in a provision for tax of $53.1 million and $32.7 million, respectively. The effective tax rate for the year ended October 31, 2020, excluding a nondeductible impairment loss of $163.8 million, was 24.4%. Our effective tax rate for 2020 was also impacted by the following discrete items: a $5.7 million benefit from true-ups; a $2.3 million provision related to WOTC; a $2.1 million benefit from energy efficiency incentives; and a $1.1 million benefit from change of tax reserves. Our effective tax rate for 2019 was impacted by the following discrete items: a $1.8 million benefit from the transition tax (including foreign tax credits); a $1.7 million benefit from state true-ups; a $1.6 million benefit from federal true-ups; a $1.3 million provision related to WOTC; a $1.3 million benefit from expiring statutes of limitations; a $1.1 million benefit from the vesting of share-based compensation awards; and a $0.9 million benefit from research and development credits. Components of Deferred Tax Assets and Liabilities
| As of October 31,
(in millions) | 2020 |  | 2019
Deferred tax assets attributable to: |  |  |
Self-insurance claims (net of recoverables) | $ | 74.7 |  |  | $ | 83.6 |
Deferred and other compensation | 28.6 |  |  | 25.6 |
Accounts receivable allowances | 8.8 |  |  | 5.6 |
Settlement liabilities | 5.0 |  |  | 3.1 |
Other accruals | 1.5 |  |  | 1.8 |
Other comprehensive income | 2.7 |  |  | 0.5 |
State taxes | 1.4 |  |  | 0.4 |
State net operating loss carryforwards | 5.9 |  |  | 11.2 |
Tax credits | 3.7 |  |  | 6.3 |
Unrecognized tax benefits | 3.2 |  |  | 3.0 |
Deferred payroll taxes | 26.9 |  |  | — |
Operating lease liabilities | 38.2 |  |  | — |
Gross deferred tax assets | 200.6 |  |  | 141.2 |
Valuation allowance | (4.1) |  |  | (8.4) |
Total deferred tax assets | 196.5 |  |  | 132.8 |
Deferred tax liabilities attributable to: |  |  |
Property, plant and equipment | (1.2) |  |  | (4.8) |
Goodwill and other acquired intangibles | (159.4) |  |  | (170.6) |
Right-of-use assets | (38.2) |  |  | — |
Other | (8.5) |  |  | (5.2) |
Total deferred tax liabilities | (207.3) |  |  | (180.6) |
Net deferred tax liabilities | $ | (10.8) |  |  | $ | (47.7) |
Net Operating Loss Carryforwards and Credits State net operating loss carryforwards totaling $102.3 million at October 31, 2020, are being carried forward in several state jurisdictions where we are permitted to use net operating losses from prior periods to reduce future taxable income. These losses will expire between 2021 and 2040. Federal net operating loss carryforwards were fully utilized during 2020. Federal and state tax credit carryforwards totaling $4.4 million are available to reduce future cash taxes and will expire between 2021 and 2040. The valuation allowance represents the amount of tax benefits related to state net operating loss carryforwards that are not likely to be realized. We believe the remaining deferred tax assets are more likely than not to be realizable based on estimates of future taxable income. Changes to the Valuation Allowance
| Years Ended October 31,
(in millions) | 2020 |  | 2019 |  | 2018
Valuation allowance at beginning of year | $ | 8.4 |  |  | $ | 12.0 |  |  | $ | 7.7 |
GCA acquisition | — |  |  | — |  |  | 2.4 |
Other, net | (4.3) |  |  | (3.6) |  |  | 1.8 |
Valuation allowance at end of year | $ | 4.1 |  |  | $ | 8.4 |  |  | $ | 12.0 |
Unrecognized Tax Benefits At October 31, 2020, 2019, and 2018, there were $35.5 million, $35.3 million, and $35.8 million, respectively, of unrecognized tax benefits that if recognized in the future would impact our effective tax rate. We estimate that a decrease in unrecognized tax benefits of up to approximately $0.6 million is reasonably possible over the next twelve months due to lapses of applicable statutes of limitations. At October 31, 2020 and 2019, accrued interest and penalties were $1.5 million and $1.2 million, respectively. For interest and penalties, we recognized an expense of $0.4 million and $0.2 million in 2020 and 2019, respectively, and a benefit of $1.0 million in 2018. Reconciliation of Total Unrecognized Tax Benefits
| Years Ended October 31,
(in millions) | 2020 |  | 2019 |  | 2018
Balance at beginning of year | $ | 35.3 |  |  | $ | 35.8 |  |  | $ | 53.4 |
Additions for tax positions related to the current year | 2.1 |  |  | — |  |  | 0.2 |
Additions for tax positions related to prior years | 1.6 |  |  | 3.6 |  |  | — |
Reductions for tax positions related to prior years | — |  |  | — |  |  | (9.0) |
Reductions for lapse of statute of limitations | (3.0) |  |  | (3.9) |  |  | (8.7) |
Settlements | (0.5) |  |  | (0.3) |  |  | (0.1) |
Balance at end of year | $ | 35.5 |  |  | $ | 35.3 |  |  | $ | 35.8 |
Jurisdictions We conduct business in all 50 states, significantly in California, Texas, and New York, as well as in various foreign jurisdictions. Our most significant income tax jurisdiction is the United States. Due to expired statutes and closed audits, our federal income tax returns for years prior to fiscal 2016 are no longer subject to examination by the U.S. Internal Revenue Service. Generally, for the majority of state and foreign jurisdictions where we do business, periods prior to fiscal 2016 are no longer subject to examination. We are currently being examined by the IRS and tax authorities of California, New York City, and Wisconsin.

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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=84230637&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=116825942&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=84230637&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=116825942&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=84230637&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 + Details
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