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Income Taxes Income Taxes (Tables)

12 Months Ended

Oct. 26, 2013

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 26, 2013, October 27, 2012, and October 29, 2011, are presented as follows (in thousands):



	Fiscal Year Ended
	October 26, 2013		October 27, 2012		October 29, 2011 ⁽¹⁾
United States	$	176,536	$	115,736	$	(42,118	)
International	153,925		108,665		121,546
Total	$	330,461	$	224,401	$	79,428


⁽¹⁾	Excludes the impact of repatriation of $200.0 million from offshore operations to the United States.

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) for the years ended October 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following (in thousands):



	Fiscal Year Ended
	October 26, 2013			October 27, 2012			October 29, 2011
U.S. federal taxes:
Current	$	(13,666	)	$	(11,750	)	$	774
Deferred	46,313			33,981			28,111
Total U.S. federal taxes	32,647			22,231			28,885
State taxes:
Current	8,091			613			1,250
Deferred	78,106			(2,412		)	(9,187		)
Total state taxes	86,197			(1,799		)	(7,937		)
Non-U.S. taxes:
Current	2,837			8,770			7,854
Deferred	157			18			16
Total non-U.S. taxes	2,994			8,788			7,870
Total	$	121,838		$	29,220		$	28,818

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 26, 2013, October 27, 2012, and October 29, 2011, consisted of the following:



	Fiscal Year Ended
	October 26, 2013		October 27, 2012		October 29, 2011
U.S. Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal tax benefit	4.1		3.8		3.3
Foreign income taxed at other than U.S. rates	(17.6	)	(17.7	)	(48.2	)
Stock-based compensation	1.9		3.5		11.8
Research and development credit	(5.6	)	(3.5	)	(17.6	)
Permanent items	0.3		0.3		1.2
Change in liabilities for uncertain tax positions	(5.1	)	(6.5	)	2.5
Repatriation from offshore operations	—		—		62.6
Audit settlement and reinstated tax credit	1.3		(2.9	)	(11.7	)
Change in valuation allowance	23.7		—		—
Other	(1.1	)	1.0		(2.6	)
Effective tax rate	36.9	%	13.0	%	36.3	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and deferred tax liabilities for the years ended October 26, 2013, and October 27, 2012, are presented as follows (in thousands):



	October 26, 2013			October 27, 2012
Net operating loss carryforwards	$	10,525		$	63,750
Stock-based compensation expense	17,664			22,582
Tax credit carryforwards	141,975			145,688
Reserves and accruals	63,765			94,755
Capitalized research and development expenditures	621			3,232
Net unrealized losses on investments	396			468
Gross deferred tax assets	234,946			330,475
Less: Valuation allowance	(81,116		)	(22,269		)
Total deferred tax assets	153,830			308,206
Acquired intangibles and goodwill	(22,307		)	(50,266		)
Fixed assets	(29,878		)	(28,110		)
Other	(2,042		)	(2,116		)
Total deferred tax liabilities	(54,227		)	(80,492		)
Total net deferred tax assets	$	99,603		$	227,714

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 26, 2013			October 27, 2012
Unrecognized tax benefits, beginning balance	$	119,253		$	149,430
Gross increases for tax positions taken in prior periods	3,472			797
Gross decreases for tax positions taken in prior periods	(12,970		)	(26,001		)
Gross increases for tax positions taken in current period	14,875			6,633
Changes due to settlements with taxing authorities	(9,442		)	(6,771		)
Reductions resulting from lapses of statutes of limitations	(2,709		)	(4,835		)
Unrecognized tax benefits, ending balance	$	112,479		$	119,253

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

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