Income tax provision

9 Months Ended

Jul. 31, 2015

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/(benefit) for income taxes was (32)% and 44% of income before income taxes for the three months ended July 31, 2015 and July 31, 2014, respectively, and 24% and 38% of income before income taxes for the nine months ended July 31, 2015 and July 31, 2014, respectively. The decrease in the effective income tax rate from period to period was primarily driven by the recognition of discrete benefits related to the reapportionment of state income.

The Company recorded income from discontinued operations, net of tax, as disclosed in Note 3.

There were no unrecognized tax benefits as of either July 31, 2015 or October 31, 2014. The total balance of accrued interest and penalties related to uncertain tax positions was $0 as of July 31, 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 July 31, 2015.