INCOME TAXES |
9 Months Ended |
|---|---|
Jul. 31, 2025 | |
| Income Tax Disclosure [Abstract] | |
| INCOME TAXES |
NOTE 17 – INCOME TAXES
Our tax provision or benefit from income taxes for interim periods is determined using an estimate of our annual effective tax rate, adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter we may update our estimate of the annual effective tax rate, and if our estimated tax rate changes, we make a cumulative adjustment.
Our quarterly tax provision, and our quarterly estimate of our annual effective tax rate, is subject to significant variation, due to several factors including variability in accurately predicting our pre-tax income and/or loss and the mix of jurisdictions to which they relate, intercompany transactions, the applicability of special tax regimes, changes in how we do business, acquisitions, investments, changes in our stock price, foreign currency gains (losses), changes in regulations and administrative practices. Our effective tax rate can be more or less volatile based on the amount of pre-tax income or loss.
The One Big Beautiful Bill Act of 2025 (the “2025 Tax Act”) was signed into law on July 4, 2025. The 2025 Tax Act makes changes to the U.S corporate income tax, including reinstating the option to claim 100% accelerated depreciation deductions on qualified property, with retroactive application beginning January 20,2025 and immediate expensing of domestic research and development costs, with retroactive application beginning January 1, 2025. While we are still carefully evaluating the full extent of the 2025 Tax Act’s impact, in 2025 we do not anticipate major changes to our U.S cash taxes.
In the future (2027) we expect our income tax provision to increase primarily due to a decrease in our foreign income deduction under the Act’s global intangible low-taxed income (“GILTI”) provisions.
We estimate that the Company’s effective tax rate for the three months ended July 31, 2025, and 2024, was 16.9% and 21.9%, respectively, and for the nine months ended July 31, 2025, and 2024, was 17.1% and 18.1%, respectively. In the three and nine months ended July 31, 2025, we made an income tax provision of $268,786 and $692,361, respectively. In the three and nine months ended July 31, 2024, we made an income tax provision of $325,625 and $482,683, respectively.
In the three and nine months ended July 31, 2025, the Company made awards of restricted stock and recorded a deferred tax benefit of $8,022 and $52,864, respectively, compared to a deferred tax expense in the previous three and nine months ended July 31, 2024, of $30,963 and $252,938 respectively. |