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Income Taxes | 12 Months Ended
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Oct. 31, 2015
Income Tax Disclosure [Abstract] |
Income Taxes | 10. Income Taxes The income tax provision (benefit) consists of the following for the years ended October 31, (in thousands):
|  | 2015 |  | 2014 |  | 2013 |
Current: |  |  |  |  |  |  |  |  |  |
Federal |  | $ | 10,150 |  | $ | 7,379 |  | $ | 5,587 |
State |  |  | 1,650 |  |  | 939 |  |  | 1,261 |
Foreign |  |  | 1,110 |  |  | 842 |  |  | 549 |
Total current |  |  | 12,910 |  |  | 9,160 |  |  | 7,397 |
Deferred: |  |  |  |  |  |  |  |  |  |
Federal |  |  | 3,314 |  |  | (10,392) |  |  | (9,536) |
State |  |  | 98 |  |  | (2,870) |  |  | (2,548) |
Foreign |  |  | (229) |  |  | 186 |  |  | (28) |
Total deferred |  |  | 3,183 |  |  | (13,076) |  |  | (12,112) |
Total income tax provision |  | $ | 16,093 |  | $ | (3,916) |  | $ | (4,715) |
At October 31, 2015 and 2014, gross deferred tax assets totaled approximately $36.1 million and $39.7 million, while gross deferred tax liabilities totaled approximately $17.0 million and $24.1 million. Deferred income taxes reflect the net of temporary differences between the carrying amount of assets and liabilities for financial reporting and income tax purposes. During November 2015, the FASB issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes”, which simplifies the presentation of deferred income taxes. This ASU requires that deferred tax assets and liabilities be classified as non-current in a statement of financial position. We early adopted ASU 2015-17 effective October 31, 2015 on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax asset to the net non-current deferred tax asset in our Consolidated Balance Sheet as of October 31, 2015. No prior periods were retrospectively adjusted. Significant components of our deferred taxes assets (liabilities) as of October 31, are as follows (in thousands):
|  | 2015 |  | 2014 |
Allowances for accounts receivable |  | $ | — |  | $ | 1,312 |
Inventories |  |  | — |  |  | 478 |
State taxes |  |  | — |  |  | 202 |
Credits and incentives |  |  | — |  |  | 300 |
Accrued liabilities |  |  | — |  |  | 1,002 |
Current deferred income taxes |  | $ | — |  | $ | 3,294 |
Property, plant, and equipment |  |  | (6,877) |  |  | (6,373) |
Intangible assets |  |  | 31,432 |  |  | 34,697 |
Unrealized gain, Limoneira investment |  |  | (1,553) |  |  | (8,199) |
Investment in FreshRealm |  |  | (7,024) |  |  | (7,594) |
Stock-based compensation |  |  | 556 |  |  | 355 |
State taxes |  |  | (1,358) |  |  | (1,690) |
Credits and incentives |  |  | 2,044 |  |  | 1,287 |
Allowance for accounts receivable |  |  | 662 |  |  |  |
Inventories |  |  | 495 |  |  |  |
Accrued liabilities |  |  | 885 |  |  |  |
Other |  |  | (219) |  |  | (196) |
Long-term deferred income taxes |  | $ | 19,043 |  | $ | 12,287 |
A reconciliation of the significant differences between the federal statutory income tax rate and the effective income tax rate on pretax income for the years ended October 31, is as follows:
|  | 2015 |  | 2014 |  | 2013 |
Federal statutory tax rate |  | 35.0 | % | 35.0 | % | 35.0 | %
State taxes, net of federal effects |  | 3.0 |  | 22.3 |  | 11.8 |
Foreign income taxes greater (less) than U.S. |  | 0.7 |  | 5.8 |  | 6.1 |
Section 199 deduction |  | (0.8) |  | 15.8 |  | 8.2 |
Tax Credits |  | — |  | 15.2 |  | (0.9) |
Other |  | (0.7) |  | 0.7 |  | 3.5 |
|  | 37.2 | % | 94.8 | % | 63.7 | %
We intend to reinvest our accumulated foreign earnings, which approximated $14.2 million at October 31, 2015, indefinitely. As a result, we have not provided any deferred income taxes on such unremitted earnings. For fiscal years 2015, 2014 and 2013, income (loss) before income taxes related to domestic operations was approximately $41.5 million, $(0.6) million, and $(10.6) million. For fiscal years 2015, 2014 and 2013, income before income taxes related to foreign operations was approximately $1.8 million, $3.6 million and $2.9 million. As of October 31, 2015 and 2014, we did not have a liability for unrecognized tax benefits related to various federal and state income tax matters. The tax effected amount would reduce our effective income tax rate if recognized. In fiscal 2014, the benefit for income taxes of $3.9 million is attributable to the revaluation adjustment of $88.1 million related to contingent consideration which was spread between fiscal year 2014 through fiscal year 2011. The revalued contingent consideration and non-cash compensation expense resulted in $53.6 million, and $32.0 million additional GAAP expense recorded in fiscal years 2014 and 2013, respectively. In fiscal 2014, the revaluation expense drove pre-tax book income into a loss position, thus causing a benefit for income taxes as this revaluation adjustment is capitalized and amortized as goodwill over the remaining useful life for income tax purposes resulting in a taxable income position for the current year. We are subject to U.S. federal income tax as well as income of multiple state tax jurisdictions. We are no longer subject to U.S. income tax examinations for the fiscal years prior to October 31, 2012, and are no longer subject to state income tax examinations for fiscal years prior to October 31, 2011.

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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/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: 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 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: 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
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