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INCOME TAXES (Notes)
9 Months Ended
Jul. 31, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES

For the three and nine months ended July 31, 2020, the company's income tax expense was $20 million with an effective tax rate of 9.1 percent and $62 million with an effective tax rate of 11.1 percent, respectively. For the three and nine months ended July 31, 2020, our effective tax rate and the resulting provision for income taxes were impacted by the expiration of the U.S. statute of limitations in July 2020 for fiscal year 2016, which resulted in the recognition of previously unrecognized tax benefits of $16 million. For the nine months ended July 31, 2020, our effective tax rate and the resulting provision for income taxes were also impacted by the excess tax benefits from stock-based compensation of $15 million.

Our calculation of income tax expense for the three and nine months ended July 31, 2020 is dependent in part on forecasts of full year results. The impact of the COVID-19 outbreak on the economic environment is uncertain and may change these forecasts, which could impact tax expense.

For the three and nine months ended July 31, 2019, the company's income tax expense was $31 million with an effective tax rate of 14.0 percent and an income tax benefit of $189 million with an effective tax rate of (27.5) percent, respectively. For the nine months ended July 31, 2019, our effective tax rate and the resulting provision for income taxes were significantly impacted by a discrete benefit of $299 million related to the extension of the company’s tax incentive in Singapore.

In the U.S., tax years remain open back to the year 2017 for federal income tax purposes and the year 2015 for significant states. In other major jurisdictions where the company conducts business, the tax years generally remain open back to the year 2009.

It is reasonably possible there could be significant changes to our unrecognized tax benefits in the next twelve months due to either the expiration of a statute of limitation or a tax audit settlement. Given the number of years and numerous matters that remain subject to examination in various tax jurisdictions, management is unable to estimate the range of possible changes to the balance of our unrecognized tax benefits. The company will continue to assess the impact of further guidance from federal and state tax authorities on its business and consolidated financial statements. Any future adjustments will be recognized as discrete income tax expense or benefit in the period the adjustments are determined.