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Income Taxes Income Taxes (Tables)

12 Months Ended

Nov. 01, 2014

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and international components of income before income tax for the fiscal years ended November 1, 2014, October 26, 2013, and October 27, 2012, are presented as follows (in thousands):



	Fiscal Year Ended
	November 1, 2014		October 26, 2013		October 27, 2012
United States	$	192,730	$	176,536	$	115,736
International	160,891		153,925		108,665
Total	$	353,621	$	330,461	$	224,401

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) for the fiscal years ended November 1, 2014, October 26, 2013, and October 27, 2012, consisted of the following (in thousands):



	Fiscal Year Ended
	November 1, 2014			October 26, 2013			October 27, 2012
U.S. federal taxes:
Current	$	61,666		$	(13,666	)	$	(11,750	)
Deferred	33,065			46,313			33,981
Total U.S. federal taxes	94,731			32,647			22,231
State taxes:
Current	16,597			8,091			613
Deferred	(2,599		)	78,106			(2,412		)
Total state taxes	13,998			86,197			(1,799		)
Non-U.S. taxes:
Current	6,655			2,837			8,770
Deferred	266			157			18
Total non-U.S. taxes	6,921			2,994			8,788
Total	$	115,650		$	121,838		$	29,220

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 fiscal years ended November 1, 2014, October 26, 2013, and October 27, 2012, consisted of the following:



	Fiscal Year Ended
	November 1, 2014		October 26, 2013		October 27, 2012
U.S. Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State taxes, net of federal tax benefit	3.1		4.1		3.8
Foreign income taxed at other than U.S. rates	(16.9	)	(17.6	)	(17.7	)
Stock-based compensation	2.3		1.9		3.5
Research and development credit	(3.1	)	(5.6	)	(3.5	)
Permanent items	0.3		0.3		0.3
Change in liabilities for uncertain tax positions	0.5		(5.1	)	(6.5	)
Goodwill impairment charge	8.3		—		—
Audit settlement and reinstated tax credit	0.1		1.3		(2.9	)
Change in valuation allowance	1.6		23.7		—
Other	1.5		(1.1	)	1.0
Effective tax rate	32.7	%	36.9	%	13.0	%

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and deferred tax liabilities for the fiscal years ended November 1, 2014, and October 26, 2013, are presented as follows (in thousands):



	November 1, 2014			October 26, 2013
Net operating loss carryforwards	$	8,679		$	10,525
Stock-based compensation expense	14,202			17,664
Tax credit carryforwards	84,930			141,975
Reserves and accruals	101,301			63,765
Capitalized research and development expenditures	183			621
Net unrealized losses on investments	370			396
Gross deferred tax assets	209,665			234,946
Less: Valuation allowance	(83,489		)	(81,116		)
Total deferred tax assets	126,176			153,830
Acquired intangibles and goodwill	(15,433		)	(22,307		)
Fixed assets	(31,231		)	(29,878		)
Other	(13,368		)	(2,042		)
Total deferred tax liabilities	(60,032		)	(54,227		)
Total net deferred tax assets	$	66,144		$	99,603

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):



	November 1, 2014			October 26, 2013
Unrecognized tax benefits, beginning balance	$	112,479		$	119,253
Gross increases for tax positions taken in prior periods	3,325			3,472
Gross decreases for tax positions taken in prior periods	(4,784		)	(12,970		)
Gross increases for tax positions taken in current period	15,426			14,875
Changes due to settlements with taxing authorities	—			(9,442		)
Reductions resulting from lapses of statutes of limitations	(6,831		)	(2,709		)
Unrecognized tax benefits, ending balance	$	119,615		$	112,479

- 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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