XML 57 R15.htm IDEA: XBRL DOCUMENT v2.4.1.9
Income tax provision
 6 Months Ended
Apr. 30, 2015
Income Tax Disclosure [Abstract]  
Income tax provision
Note 9 -Income tax provision
 
The Company uses an estimated annual effective tax rate, which is based on expected annual income, statutory tax rates and tax planning opportunities available in the various jurisdictions in which the Company operates, to determine its quarterly provision for income taxes. Certain significant or unusual items are separately recognized in the quarter in which they occur and can be a source of variability in the effective tax rates from quarter to quarter.
 
The provision for income taxes was 39% and 40% of income before income taxes for the three months ended April 30, 2015 and April 30, 2014, respectively, and 35% and 35% of income before income taxes for the six months ended April 30, 2015 and April 30, 2014, respectively. The decrease in the effective income tax rate from period to period was primarily driven by the discrete benefit from R&D credits related to the tax year ended October 31, 2014 which were recognized in the first quarter due to the change in tax law taking effect on December 19, 2014.
 
The Company recorded income from discontinued operations, net of tax, as disclosed in Note 3.
 
The total amount of unrecognized tax benefits was $0 as of April 30, 2015 and October 31, 2014. The total balance of accrued interest and penalties related to uncertain tax positions was $0 as of April 30, 2015 and October 31, 2014. The Company recognizes interest and penalties related to uncertain tax positions as a component of income tax expense and the accrued interest and penalties are included in deferred and other long-term liabilities in the Company's condensed consolidated balance sheets. There were no material interest or penalties included in income tax expense for the three months ended April 30, 2015.