INCOME TAXES |
9 Months Ended | ||||||||||||
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Jul. 31, 2026 | |||||||||||||
| Income Tax Disclosure [Abstract] | |||||||||||||
| INCOME TAXES | INCOME TAXES Our quarterly tax provision is calculated using an estimated annual effective tax rate that is adjusted for discrete items occurring during the period to arrive at our effective tax rate. During the three and nine months ended July 31, 2026, we had effective tax rates of 21.3% and 24.8%, respectively. During the three and nine months ended July 31, 2025, we had effective tax rates of 29.6% and 26.9%, respectively. The difference between the estimated annual effective tax rate before discrete items and statutory rate is primarily related to state income taxes, non-deductible compensation, and tax credits. Our effective tax rate for the three months ended July 31, 2026, was reduced by discrete items, primarily research and development tax credits and enhanced Work Opportunity Tax Credits (“WOTC”). Our effective tax rate for the three months ended July 31, 2025, was not impacted by any significant discrete items. Our effective tax rate for the nine months ended July 31, 2026, was reduced by discrete items, primarily research and development tax credits, enhanced WOTC, and share-based compensation. Our effective tax rate for the nine months ended July 31, 2025, benefited from discrete items, primarily from return to provision adjustments related to our non-U.S operations. The WOTC and Federal Empowerment Zone (“FEZ”) credit are federal tax credits available to employers for hiring individuals from certain targeted groups. The Company has historically benefited from these tax credits, which expired on December 31, 2025. As of July 31, 2026, the credits have not been renewed, and our effective tax rate for the three and nine months ended July 31, 2026, only includes a benefit for those employees who started work before December 31, 2025. The Organisation for Economic Co-operation and Development (“OECD”) Pillar Two Model Rules established a minimum global effective tax rate of 15% on country-by-country profits of large multinational companies. European Union member states along with many other countries have adopted or expect to adopt the OECD Pillar Two Model effective January 1, 2024, or thereafter. The OECD and other countries continue to publish guidelines and legislation that include transition and safe harbor rules. We continue to monitor new legislative changes and assess the global impact of the Pillar Two Model Rules. Based on our initial assessment, Pillar Two should not have a material impact to the Company’s income tax provision. We plan to reinvest our foreign earnings to fund future non-U.S. growth and expansion, and we do not anticipate remitting such earnings to the United States.
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