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Income Taxes | 12 Months Ended
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Oct. 31, 2020
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes A reconciliation of income before income taxes for domestic and foreign locations for the years ended October 31, 2020, 2019 and 2018 are as follows (in thousands):
| 2020 |  | 2019 |  | 2018
United States | $ | (23,195) |  |  | $ | (6,285) |  |  | $ | 13,099 |
Foreign | (3,240) |  |  | (278) |  |  | 384 |
Income before income taxes | $ | (26,435) |  |  | $ | (6,563) |  |  | $ | 13,483 |
16. Income Taxes (continued) The components of the provisions for income taxes for fiscal years 2020, 2019 and 2018 are as follows (in thousands):
| 2020 |  | 2019 |  | 2018
Current: |  |  |  |  |
Federal | $ | 5,835 |  |  | $ | (7) |  |  | $ | 35 |
State | 332 |  |  | 563 |  |  | (444) |
Foreign | 194 |  |  | (232) |  |  | (169) |
Total current benefit (provision) | 6,361 |  |  | 324 |  |  | (578) |
Deferred: |  |  |  |  |
Federal | 640 |  |  | 998 |  |  | 7,393 |
State | 1,177 |  |  | (302) |  |  | (212) |
Foreign | 316 |  |  | 77 |  |  | 126 |
Total deferred benefit | 2,133 |  |  | 773 |  |  | 7,307 |
Total income tax benefit | $ | 8,494 |  |  | $ | 1,097 |  |  | $ | 6,729 |
Deferred income taxes reflect the net of temporary differences between the carrying amount of the assets and liabilities for financial reporting and income tax purposes. The components of deferred income tax assets at October 31, 2020 and 2019 are as follows (in thousands):
| 2020 |  | 2019
Deferred income tax assets: |  |  |
Reserve and other accruals | $ | 643 |  |  | $ | 823 |
Net operating losses | 4,983 |  |  | 1,112 |
Right-of-use asset | 578 |  |  | — |
Minimum pension liability adjustment | 962 |  |  | 820 |
Amortization | 325 |  |  | 295 |
Interest expense limitation | 306 |  |  | — |
Stock based compensation | 549 |  |  | 554 |
Total deferred income tax assets | 8,346 |  |  | 3,604 |
Valuation allowance | (540) |  |  | (362) |
Total net deferred income tax assets | 7,806 |  |  | 3,242 |
Deferred income tax liabilities: |  |  |
Property taxes | (173) |  |  | (150) |
Depreciation | (16,930) |  |  | (13,630) |
Land and other indefinite life assets | (6,905) |  |  | (6,887) |
Investment in joint ventures and other basis adjustments | (4,097) |  |  | (2,105) |
Right-of-use asset | (557) |  |  | — |
Unrealized net gain on Calavo investment | — |  |  | (4,142) |
Other | (1,241) |  |  | (674) |
Total deferred income tax liabilities | (29,903) |  |  | (27,588) |
Net deferred income tax liabilities | $ | (22,097) |  |  | $ | (24,346) |
Deferred income taxes — noncurrent assets | $ | 333 |  |  | $ | — |
Deferred income taxes — noncurrent liabilities | $ | (22,430) |  |  | $ | (24,346) |
16. Income Taxes (continued) The Company periodically evaluates the recoverability of the deferred tax assets. The Company recognized deferred tax assets to the extent that it believes that these assets are more likely than not to be realized. In making such a determination, the Company considers all available positive and negative evidence, including future reversals of existing taxable temporary differences, projected future taxable income, tax-planning strategies, and results of recent operations. The Company has recorded a valuation allowance of $540,000 on two Chilean subsidiaries deferred tax assets as of October 31, 2020 as the Company does not believe it is more likely than not that these deferred tax assets will be realized due to the recent history of cumulative pre-tax book losses and lack of objectively verifiable future source of taxable income. At October 31, 2020, the Company recorded a deferred tax asset of $4,983,000 related to its federal, state, and foreign net operating carryforwards. The entire federal net operating loss is subject to the 80% taxable income limitation. The net operating losses begin to expire as follows (in thousands):
Jurisdiction |  | Gross Amount |  | Begin to Expire
Federal |  | 12,161 |  |  | Indefinite
State |  | 15,190 |  |  | 10/31/2039
Chile |  | 3,662 |  |  | Indefinite
Argentina |  | 1,684 |  |  | 10/31/2025
At October 31, 2020, the Company had disallowed federal and state interest expense carryforwards of approximately $1,442,000 and $2,454,000, respectively, that do not expire. Because of the change of ownership provisions of the Tax Reform Act of 1986, use of a portion of the domestic net operating loss and disallowed interest expense carryforwards may be limited in future periods. Further, a portion of the carryforwards may expire before being applied to reduce future income tax liabilities.
| 2020 |  | 2019 |  | 2018
| Amount |  | % |  | Amount |  | % |  | Amount |  | %
Provision at statutory rates | $ | 5,551 |  |  | (21.0) | % |  | $ | 1,351 |  |  | (21.0) | % |  | $ | (3,125) |  |  | (23.3) | %
State income tax, net of federal benefit | 1,431 |  |  | (5.4) | % |  | 316 |  |  | (4.9) | % |  | (768) |  |  | (5.7) | %
Dividend exclusion | 27 |  |  | (0.1) | % |  | 28 |  |  | (0.4) | % |  | 49 |  |  | 0.4 | %
Meals and entertainment | (18) |  |  | 0.1 | % |  | (90) |  |  | 1.4 | % |  | — |  |  | — |
Transaction costs | — |  |  | — |  |  | (137) |  |  | 2.1 | % |  | — |  |  | — |
Tax law change | 1,948 |  |  | (7.4) | % |  | — |  |  | — |  |  | 10,295 |  |  | 76.4 | %
State rate adjustment | (82) |  |  | 0.3 | % |  | (109) |  |  | 1.7 | % |  | — |  |  | — |
Valuation allowance | (168) |  |  | 0.6 | % |  | (393) |  |  | 6.1 | % |  | — |  |  | — |
Noncontrolling interest | (305) |  |  | 1.1 | % |  | 116 |  |  | (1.8) | % |  | — |  |  | — |
Other permanent items | 110 |  |  | (0.4) | % |  | 15 |  |  | (0.3) | % |  | 278 |  |  | 2.1 | %
Total income tax benefit | $ | 8,494 |  |  | (32.2) | % |  | $ | 1,097 |  |  | (17.1) | % |  | $ | 6,729 |  |  | 49.9 | %
At October 31, 2020 and 2019, the Company had no unrecognized tax benefits. The Company files income tax returns in the U.S., California, Arizona, Chile, Argentina and Holland. The Company is no longer subject to significant U.S., state and Chilean income tax examinations for years prior to the statutory periods of three years for federal, four years for state and three years for Chilean tax jurisdictions. The Company recognizes interest expense and penalties related to income tax matters as a component of income tax expense. There was no accrued interest or penalties associated with uncertain tax positions as of October 31, 2020. 16. Income Taxes (continued) On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) was signed into law. The CARES Act includes numerous tax provisions and other stimulus measures, including temporary changes regarding the prior and future utilization of net operating losses, temporary changes to the prior and future limitations on interest deductions, temporary suspension of certain payment requirements for the employer portion of Social Security taxes, the creation of certain refundable employee retention credits, and technical corrections from prior tax legislation for tax depreciation of certain qualified improvement property. The Company evaluated the impact of the CARES Act and has recorded a tax benefit of $1,948,000 and an income tax refund of $5,801,000 due to our ability to carryback and obtain federal tax refund by utilizing net operating losses under the provisions of the CARES Act, of which $841,000 and $4,960,000 were received in October 2020 and December 2020, respectively. On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was enacted into law. The TCJA made significant changes to U.S. tax laws, including, but not limited to, the following: (a) reducing the federal corporate income tax rate from 35% to a flat 21%, effective January 1, 2018, (b) including two new U.S. tax base erosion provisions and the global intangible low-taxed income ("GILTI") provisions and (c) expanding the number of individuals whose compensation is subject to a $1,000,000 cap on deductibility under Section 162(m) and includes performance-based compensation such as stock options and stock appreciation rights in the calculation. As a result of the rate reduction, the Company recorded an income tax benefit of $10,295,000 related to the remeasurement of the Company's deferred tax balance as of October 31, 2018.

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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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