INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2023

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Income before Taxes

The domestic and foreign components of income before taxes are:

	Years Ended October 31,
	2023		2022		2021
	(in millions)
U.S. operations	$	614	$	858	$	876
Non-U.S. operations	725		646		484
Total income before taxes	$	1,339	$	1,504	$	1,360

Provision for income taxes

The provision for income taxes is comprised of:

	Years Ended October 31,
	2023		2022		2021
	(in millions)
U.S. federal taxes:
Current	$	117	$	173	$	122
Deferred	(84)		(28)		(1)
Non-U.S. taxes:
Current	26		47		(3)
Deferred	38		35		14
State taxes, net of federal benefit:
Current	12		22		17
Deferred	(10)		1		1
Total provision for income taxes	$	99	$	250	$	150

Tax rate reconciliation, U.S. federal statutory rate to effective tax rate from operations

The differences between the U.S. federal statutory income tax rate and our effective tax rate are:

	Years Ended October 31,
	2023			2022			2021
	(in millions)
Profit before tax times statutory rate	$	281		$	316		$	286
State income taxes, net of federal benefit	2			23			18
Non-U.S. income taxed at different rates	20			(18)			5
Change in unrecognized tax benefits	(35)			(6)			(84)
Foreign-derived intangible income deduction	(41)			(46)			(35)
Realized loss on divestiture of business	(104)			—			—
Excess tax benefits from stock-based compensation	(14)			(19)			(29)
Other, net	(10)			—			(11)
Provision (benefit) for income taxes	$	99		$	250		$	150
Effective tax rate	7.4		%	16.6		%	11.0		%

Significant components of deferred tax assets and deferred tax liabilities

The significant components of deferred tax assets and deferred tax liabilities included on the consolidated balance sheet are:

	Years Ended October 31,
	2023		2022
	(in millions)
Deferred Tax Assets
Intangibles	$	102	$	62
Employee benefits, other than retirement	36		45
Net operating loss, capital loss, and credit carryforwards	152		157
Share-based compensation	24		23
Capitalized R&D	41		—
Lease obligations	37		29
Other	58		58
Deferred tax assets	$	450	$	374
Tax valuation allowance	(112)		(115)
Deferred tax assets, net of valuation allowance	$	338	$	259
Deferred Tax Liabilities
Property, plant and equipment	$	(26)	$	(11)
Pension benefits and retiree medical benefits	(25)		(24)
Right-of-use asset	(37)		(29)
Other	(4)		(7)
Deferred tax liabilities	$	(92)	$	(71)
Net deferred tax assets (liabilities)	$	246	$	188

The breakdown between long-term deferred tax assets and deferred tax liabilities was as follows:

	October 31,
	2023		2022
	(in millions)
Long-term deferred tax assets (included within other assets)	$	284	$	246
Long-term deferred tax liabilities (included within other long-term liabilities)	(38)		(58)
Total	$	246	$	188

Current and Long Term Tax Assets and Liabilities [Table Text Block]

The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows:

	October 31,
	2023		2022
	(in millions)
Current income tax assets (included within other current assets)	$	100	$	87
Long-term income tax assets (included within other assets)	3		11
Current income tax liabilities (included within other accrued liabilities)	(73)		(51)
Long-term income tax liabilities (included within other long-term liabilities)	(162)		(216)
Total	$	(132)	$	(169)

Aggregate Changes in Gross Unrecognized Tax Benefits

The aggregate changes in the balances of our gross unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows:

	2023		2022		2021
	(in millions)
Balance, beginning of year	$	123	$	133	$	195
Additions for tax positions related to the current year	5		5		6
Additions for tax positions from prior years	3		—		4
Reductions for tax positions from prior years	(27)		(9)		—
Settlements with taxing authorities	—		—		(30)
Statute of limitations expirations	(6)		(6)		(42)
Balance, end of year	$	98	$	123	$	133