Income Taxes Income Taxes (Tables)

12 Months Ended

Oct. 27, 2012

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and international components of income (loss) before provision for (benefit from) income taxes for the years ended October 27, 2012, October 29, 2011 and October 30, 2010 are presented as follows (in thousands):

	Fiscal Year Ended
	October 27, 2012		October 29, 2011 (1)			October 30, 2010
United States	$	115,736	$	(42,118	)	$	36,015
International	108,665		121,546			70,955
Total	$	224,401	$	79,428		$	106,970

(1) Excludes the impact of repatriation of $200 million from offshore operations to the United States.

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision (benefit) for the years ended October 27, 2012, October 29, 2011 and October 30, 2010 consisted of the following (in thousands):

	Fiscal Year Ended
	October 27, 2012			October 29, 2011			October 30, 2010
U.S. federal taxes:
Current	$	(11,750	)	$	774		$	(30,768	)
Deferred	33,981			28,111			19,390
Total U.S. federal taxes	22,231			28,885			(11,378		)
State taxes:
Current	613			1,250			4,282
Deferred	(2,412		)	(9,187		)	(10,506		)
Total state taxes	(1,799		)	(7,937		)	(6,224		)
Non-U.S. taxes:
Current	8,770			7,854			8,964
Deferred	18			16			(915		)
Total non-U.S. taxes	8,788			7,870			8,049
Total	$	29,220		$	28,818		$	(9,553	)

Schedule of Effective Income Tax Rate Reconciliation

The difference between the U.S. federal statutory income tax rate and the Company’s effective tax rate for the years ended October 27, 2012, October 29, 2011 and October 30, 2010 consisted of the following:

	Fiscal Year Ended
	October 27, 2012		October 29, 2011		October 30, 2010
U.S. federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal tax benefit	3.8		3.3		4.0
Foreign income taxed at other than U.S. rates	(17.7	)	(48.2	)	(32.6	)
Stock-based compensation	3.5		11.8		12.6
Research and development credit	(3.5	)	(17.6	)	(10.4	)
Permanent items	0.3		1.2		0.9
Change in liabilities for uncertain tax positions	(6.5	)	2.5		(29.0	)
Repatriation from offshore operations	—		62.6		—
Audit settlement and reinstated tax credit	(2.9	)	(11.7	)	10.2
Other	1.0		(2.6	)	0.4
Effective tax rate	13.0	%	36.3	%	(8.9	)%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and deferred tax liabilities for the years ended October 27, 2012 and October 29, 2011 are presented as follows (in thousands):

	October 27, 2012			October 29, 2011
Net operating loss carry forwards	$	63,750		$	132,765
Stock-based compensation expense	22,582			28,886
Tax credit carry forwards	145,688			141,209
Reserves and accruals	94,755			104,135
Capitalized research and development expenditures	3,232			8,475
Net unrealized losses on investments	468			330
Gross deferred tax assets	330,475			415,800
Less: Valuation allowance	(22,269		)	(22,566		)
Total deferred tax assets	308,206			393,234
Acquired intangibles and goodwill	(50,266		)	(92,481		)
Fixed assets	(28,110		)	(34,992		)
Other	(2,116		)	(2,129		)
Total deferred tax liabilities	(80,492		)	(129,602		)
Total net deferred tax assets	$	227,714		$	263,632

Summary of Income Tax Contingencies

A reconciliation of the beginning and ending amount of total gross unrecognized tax benefits, excluding accrued net interest and penalties, is as follows (in thousands):

	October 27, 2012			October 29, 2011
Unrecognized tax benefits, beginning balance	$	149,430		$	136,812
Gross increases for tax positions taken in prior periods	797			9,066
Gross decreases for tax positions taken in prior periods	(26,001		)	(1,730		)
Gross increases for tax positions taken in current period	6,633			9,601
Changes due to settlements with taxing authorities	(6,771		)	(1,051		)
Reductions resulting from lapses of statutes of limitations	(4,835		)	(3,268		)
Unrecognized tax benefits, ending balance	$	119,253		$	149,430