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INCOME TAXES | 12 Months Ended
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Oct. 31, 2023
Income Tax Disclosure [Abstract] |
INCOME TAXES | INCOME TAXES Geographic Sources of Income Before Income Taxes
| Years Ended October 31,
(in millions) | 2023 |  | 2022 |  | 2021
United States | $ | 294.3 |  |  | $ | 278.5 |  |  | $ | 152.8 |
Foreign | 36.8 |  |  | 31.5 |  |  | 27.0 |
Income before income taxes | $ | 331.1 |  |  | $ | 310.0 |  |  | $ | 179.8 |
Components of Income Tax Provision
| Years Ended October 31,
(in millions) | 2023 |  | 2022 |  | 2021
Current: |  |  |  |  |
Federal | $ | (50.6) |  |  | $ | 3.5 |  |  | $ | (66.3) |
State | (25.0) |  |  | (6.0) |  |  | (27.4) |
Foreign | (9.0) |  |  | (9.4) |  |  | (7.8) |
Deferred: |  |  |  |  |
Federal | (0.5) |  |  | (46.1) |  |  | 34.9 |
State | 5.3 |  |  | (22.1) |  |  | 13.2 |
Foreign | 0.1 |  |  | 0.5 |  |  | (0.1) |
Income tax provision | $ | (79.7) |  |  | $ | (79.6) |  |  | $ | (53.5) |
Reconciliation of the U.S. Statutory Tax Rate to Annual Effective Tax Rate
| Years Ended October 31,
| 2023 |  | 2022 |  | 2021
U.S. statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State and local income taxes, net of federal tax benefit | 6.9 |  |  | 7.7 |  |  | 6.8 |
Federal and state tax credits | (1.0) |  |  | (1.5) |  |  | (2.6) |
Impact of foreign operations | 0.8 |  |  | (0.1) |  |  | 0.3 |
Changes in uncertain tax positions | 0.1 |  |  | (2.5) |  |  | 1.5 |
Incremental tax benefit from share-based compensation awards | (0.7) |  |  | (0.5) |  |  | (0.4) |
Energy efficiency incentives | (0.1) |  |  | (0.3) |  |  | (0.7) |
Nondeductible executive compensation | 1.4 |  |  | 1.4 |  |  | 0.4 |
Nontaxable RavenVolt contingent consideration | (3.9) |  |  | — |  |  | — |
Other nondeductible expenses | 0.6 |  |  | 0.3 |  |  | 2.3 |
Other, net | (1.0) |  |  | 0.2 |  |  | 1.2 |
Effective tax rate | 24.1 | % |  | 25.7 | % |  | 29.8 | %
During 2023 and 2022, we had effective tax rates of 24.1% and 25.7%, respectively, resulting in a provision for tax of $79.7 million and $79.6 million, respectively. Our effective tax rate for 2023 was impacted by a $12.8 million benefit related to the non-taxable change in the fair value of the contingent consideration related to the RavenVolt Acquisition, a $2.2 million benefit for share-based compensation; and a $1.5 million benefit for return to provision adjustment primarily related to state and local deferred income taxes; partially offset by a $4.8 million expense related to non-deductible executive compensation. Our effective tax rate for 2022 was impacted by the following items: an $8.1 million benefit for uncertain tax positions with expiring statutes; a $1.4 million benefit for share-based compensation; and a $1.3 million return to provision adjustments. Under various payroll tax provisions included in the CARES Act, through December 31, 2020, we deferred approximately $132 million of payroll tax. The deferred payroll tax has been remitted in full: $66 million was paid in December 2021 and the remaining $66 million was paid in December 2022. The CARES Act did not have a material impact on our income tax provision. Components of Deferred Tax Assets and Liabilities
| As of October 31,
(in millions) | 2023 |  | 2022
Deferred tax assets attributable to: |  |  |
Self-insurance claims (net of recoverables) | $ | 95.2 |  |  | $ | 96.1 |
Deferred and other compensation | 31.4 |  |  | 33.0 |
Accounts receivable allowances | 7.8 |  |  | 5.8 |
Settlement liabilities | 4.5 |  |  | 10.4 |
Other accruals | 4.3 |  |  | 4.8 |
State taxes | 1.5 |  |  | 1.2 |
State net operating loss carryforwards | 2.6 |  |  | 3.2 |
Tax credits | 2.3 |  |  | 3.1 |
Unrecognized tax benefits | 3.6 |  |  | 3.3 |
Deferred payroll taxes | — |  |  | 18.1 |
Operating lease liabilities | 27.3 |  |  | 31.0 |
Gross deferred tax assets | 180.5 |  |  | 210.0 |
Valuation allowance | (1.2) |  |  | (1.6) |
Total deferred tax assets | 179.3 |  |  | 208.4 |
Deferred tax liabilities attributable to: |  |  |
Property, plant and equipment | (4.3) |  |  | (5.4) |
Goodwill and other acquired intangibles | (200.0) |  |  | (222.9) |
Right-of-use assets | (28.6) |  |  | (31.9) |
Tax accounting method change | (11.7) |  |  | (17.1) |
Other comprehensive Income | (8.4) |  |  | (9.0) |
Other | (11.3) |  |  | (11.8) |
Total deferred tax liabilities | (264.3) |  |  | (298.1) |
Net deferred tax liabilities | $ | (85.0) |  |  | $ | (89.7) |
Net Operating Loss Carryforwards and Credits State net operating loss carryforwards totaling $48.7 million at October 31, 2023, 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 2024 and 2043. Federal net operating loss carryforwards were fully utilized during 2022. Federal and state tax credit carryforwards totaling $2.7 million are available to reduce future cash taxes and will expire between 2024 and 2043. 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) | 2023 |  | 2022 |  | 2021
Valuation allowance at beginning of year | $ | 1.6 |  |  | $ | 2.2 |  |  | $ | 4.1 |
Other, net | (0.4) |  |  | (0.6) |  |  | (1.9) |
Valuation allowance at end of year | $ | 1.2 |  |  | $ | 1.6 |  |  | $ | 2.2 |
Unrecognized Tax Benefits At October 31, 2023, 2022, and 2021, there were $20.7 million, $22.0 million, and $30.4 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 $0.7 million is reasonably possible over the next 12 months due to lapses of applicable statutes of limitations. At October 31, 2023 and 2022, accrued interest and penalties were $1.4 million and $0.7 million, respectively. For interest and penalties, we recognized a $0.7 million expense, a $0.9 million benefit, and a $0.1 million expense in 2023, 2022, and 2021, respectively. Reconciliation of Total Unrecognized Tax Benefits
| Years Ended October 31,
(in millions) | 2023 |  | 2022 |  | 2021
Balance at beginning of year | $ | 22.0 |  |  | $ | 30.4 |  |  | $ | 35.5 |
Additions for tax positions related to the current year | — |  |  | — |  |  | 3.7 |
Additions for tax positions related to prior years | 2.1 |  |  | 0.3 |  |  | 0.3 |
Reductions for tax positions related to prior years | (1.5) |  |  | (1.5) |  |  | (5.3) |
Reductions for lapse of statute of limitations | (1.9) |  |  | (7.2) |  |  | (2.5) |
Settlements | — |  |  | — |  |  | (1.3) |
Balance at end of year | $ | 20.7 |  |  | $ | 22.0 |  |  | $ | 30.4 |
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 2020 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 2020 are no longer subject to examination. We are currently being examined by the tax authorities of California, New York City, Montana, Massachusetts, and Oregon.

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