XML 34 R20.htm IDEA: XBRL DOCUMENT
v3.21.2

INCOME TAXES | 12 Months Ended
--- | ---
Oct. 31, 2021
INCOME TAXES [Abstract] |
INCOME TAXES | NOTE 12 - INCOME TAXES Income before the income tax provisions consists of the following:
|  | Year Ended |
|  | October 31, 2021 |  |  | October 31, 2020 |  |  | October 31, 2019 |
United States |  | $ | (19,447 | ) |  | $ | (10,672 | ) |  | $ | (8,379 | )
Foreign |  |  | 121,453 |  |  |  | 72,273 |  |  |  | 59,080 |
|  | $ | 102,006 |  |  | $ | 61,601 |  |  | $ | 50,701 |
The income tax provisions consist of the following:
|  | Year Ended |
|  | October 31, 2021 |  |  | October 31, 2020 |  |  | October 31, 2019 |
Current: |  |  |  |  |  |  |  |  |
Federal |  | $ | - |  |  | $ | - |  |  | $ | (3,916 | )
State |  |  | 4 |  |  |  | 4 |  |  |  | 11 |
Foreign |  |  | 25,296 |  |  |  | 21,698 |  |  |  | 17,777 |
|  |  | 25,300 |  |  |  | 21,702 |  |  |  | 13,872 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | - |  |  |  | - |  |  |  | 3,673 |
State |  |  | 103 |  |  |  | 8 |  |  |  | 10 |
Foreign |  |  | (2,213 | ) |  |  | (452 | ) |  |  | (7,345 | )
|  |  | (2,110 | ) |  |  | (444 | ) |  |  | (3,662 | )
Total |  | $ | 23,190 |  |  | $ | 21,258 |  |  | $ | 10,210 |
The income tax provisions differ from the amount computed by applying the statutory U.S. federal income tax rate to income before income taxes as a result of the following:
|  | Year Ended |
|  | October 31, 2021 |  |  | October 31, 2020 |  |  | October 31, 2019 |
U.S. federal income tax at statutory rate |  | $ | 21,421 |  |  | $ | 12,936 |  |  | $ | 10,647 |
Changes in valuation allowances |  |  | 364 |  |  |  | 6,942 |  |  |  | 2,673 |
Foreign tax rate differentials |  |  | 3,244 |  |  |  | 1,718 |  |  |  | 218 |
Tax credits |  |  | (3,942 | ) |  |  | (1,562 | ) |  |  | (1,268 | )
Uncertain tax positions, including reserves, settlements and resolutions |  |  | 1,037 |  |  |  | 1,637 |  |  |  | 134 |
Income tax holiday |  |  | - |  |  |  | (318 | ) |  |  | (2,234 | )
Other, net |  |  | 1,066 |  |  |  | (95 | ) |  |  | 40 |
|  | $ | 23,190 |  |  | $ | 21,258 |  |  | $ | 10,210 |
Effective tax rate |  |  | 22.7 | % |  |  | 34.5 | % |  |  | 20.1 | %
The 2021 effective tax rate differs from the U.S. federal blended rate of 21% primarily due to loss jurisdiction pre-tax losses not being benefited due to valuation allowances, non-U.S. pre-tax income being taxed at higher statutory rates in the non-U.S. jurisdictions, and investment credits in foreign jurisdictions. The 2020 effective tax rate differs from the U.S. statutory rate of 21% primarily due to loss jurisdiction pre-tax losses not being benefited due to valuation allowances, non-U.S. pre-tax income being taxed at higher statutory rates in the non-U.S. jurisdictions (partially offset by the benefits of a tax holiday), and investment credits in foreign jurisdictions. The 2019 effective tax rate differs from the U.S. statutory rate of 21% due to the recognition of a benefit related to previously unrecognized tax positions, loss jurisdiction pre-tax losses being benefited at higher statutory rates than pre-tax income in income jurisdictions was taxed, changes in deferred tax asset valuation allowance, the benefits of a tax holiday, and investment credits in foreign jurisdictions. We were granted a five-year tax holiday in Taiwan that expired on December 31, 2019. This tax holiday reduced foreign taxes by $0.1 million and $2.2 million in 2020 and 2019, respectively, with a two cents per share impact in 2019, and an immaterial per share effect in 2020. The net deferred income tax assets consist of the following:
|  | As of |
|  | October 31, 2021 |  |  | October 31, 2020 |
Deferred income tax assets: |  |  |  |  |  |
Net operating losses |  | $ | 31,657 |  |  | $ | 34,457 |
Reserves not currently deductible |  |  | 8,201 |  |  |  | 6,287 |
Tax credit carryforwards |  |  | 9,877 |  |  |  | 9,481 |
Share-based compensation |  |  | 1,500 |  |  |  | 1,306 |
Property, plant and equipment |  |  | 7,566 |  |  |  | 3,887 |
Lease liabilities |  |  | 9,134 |  |  |  | - |
Other |  |  | 157 |  |  |  | 398 |
|  |  | 68,092 |  |  |  | 55,816 |
Valuation allowances |  |  | (34,337 | ) |  |  | (33,973 | )
|  |  | 33,755 |  |  |  | 21,843 |
Deferred income tax liabilities: |  |  |  |  |  |  |  |
ROU assets |  |  | (9,698 | ) |  |  | - |
|  |  | (9,698 | ) |  |  | - |
Net deferred income tax assets |  | $ | 24,057 |  |  | $ | 21,843 |
Classification |  |  |  |  |  |  |  |
Deferred income tax assets |  | $ | 24,353 |  |  | $ | 22,070 |
Other liabilities |  |  | (296 | ) |  |  | (227 | )
|  | $ | 24,057 |  |  | $ | 21,843 |
We have established a valuation allowance for a portion of our deferred tax assets because we believe, based on the weight of all available evidence, that it is more likely than not that a portion of our deferred tax assets will expire prior to utilization. In 2021 the valuation allowance decreased as a result of management’s determination that tax benefits on deferred tax assets in a non-U.S. jurisdiction would more likely than not be realized and, therefore, decreased the valuation allowance to include these deferred tax assets. Due to the Tax Cuts and Jobs Act, which was signed into law in December 2017, as of fiscal year end 2018, U.S. deferred taxes were no longer provided on the undistributed earnings of non-U.S. subsidiaries. Our policy to indefinitely reinvest these earnings in non-U.S. operations remains unchanged for the purpose of determining deferred tax liabilities for U.S. state and foreign withholding taxes. Therefore, should we elect in the future to repatriate the remaining foreign earnings deemed to be indefinitely reinvested, we may incur additional state and foreign withholding tax expense on those earnings, the amount of which is not practicable to compute. The following tables present our available operating loss and credit carryforwards as of October 31, 2021, and their related expiration periods:
Operating Loss Carryforwards |  | Amount |  |  | Expiration Period |
Federal |  | $ | 99,636 |  |  | 2029-Indefinite |
State |  |  | 187,044 |  |  |  | 2022-Indefinite |
Foreign |  |  | 113 |  |  |  | 2024-2031 |
Tax Credit Carryforwards |  | Amount |  |  | Expiration Period |
Federal research and development |  | $ | 5,204 |  |  |  | 2024-2041 |
State |  | $ | 5,915 |  |  |  | 2022-2035 |
A reconciliation of the beginning and ending amounts of unrecognized tax benefits is presented below.
|  | Year Ended |
|  | October 31, 2021 |  |  | October 31, 2020 |  |  | October 31, 2019 |
Balance at beginning of year before interest and penalties |  | $ | 2,550 |  |  | $ | 1,758 |  |  | $ | 1,775 |
Additions (reductions) for tax positions in prior years |  |  | 181 |  |  |  | 227 |  |  |  | (466 | )
Additions based on current year tax positions |  |  | 1,313 |  |  |  | 1,576 |  |  |  | 1,286 |
Settlements |  |  | (489 | ) |  |  | (992 | ) |  |  | (204 | )
Lapses of statutes of limitations |  |  | (21 | ) |  |  | (19 | ) |  |  | (633 | )
Balance at end of year before interest and penalties |  |  | 3,534 |  |  |  | 2,550 |  |  |  | 1,758 |
Interest and penalties |  |  | 223 |  |  |  | 131 |  |  |  | 177 |
Balance at end of year including interest and penalties |  | $ | 3,757 |  |  | $ | 2,681 |  |  | $ | 1,935 |
At October 31, 2021, October 31, 2020 and October 31, 2019, unrecognized tax benefits, which are included in Other liabilities, include $3.8 million, $2.0 million, and $1.9 million, respectively, that, if recognized, would impact the effective tax rates. We include any applicable interest and penalties related to uncertain tax positions in our income tax provision. The amounts reflected in the table above include settlements of non-U.S. audits. Although the timing of the reversal of uncertain tax positions may be uncertain, as they can be dependent upon the settlement of tax audits or expirations of statutes of limitations, the Company believes that the amount of uncertain tax positions (including accrued interest and penalties, and net of tax benefits) that may be resolved over the next twelve months is $0.5 million. Resolution of these uncertain tax positions may result from either or both the lapses of statutes of limitations and tax settlements. The Company is no longer subject to tax authority examinations in the U.S., major foreign, or state tax jurisdictions for years prior to fiscal year 2016. Income tax payments were $22.7 million, $23.0 million and $15.9 million in 2021, 2020 and 2019, respectively. Cash received as refunds of income taxes paid in prior years amounted to $0.7 million in 2021, $4.3 million in 2020, and an immaterial amount in 2019.

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 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=121826272&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=122134291&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=121826272&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=122134291&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=121826272&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 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration