INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2024

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,
	2024		2023		2022
	(in millions)
U.S. operations	$	391	$	614	$	858
Non-U.S. operations	1,130		725		646
Total income before taxes	$	1,521	$	1,339	$	1,504

Provision for income taxes

The provision for income taxes is comprised of:

	Years Ended October 31,
	2024		2023		2022
	(in millions)
U.S. federal taxes:
Current	$	182	$	117	$	173
Deferred	(104)		(84)		(28)
Non-U.S. taxes:
Current	87		26		47
Deferred	60		38		35
State taxes, net of federal benefit:
Current	27		12		22
Deferred	(20)		(10)		1
Total provision for income taxes	$	232	$	99	$	250

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,
	2024			2023			2022
	(in millions)
Profit before tax times statutory rate	$	319		$	281		$	316
State income taxes, net of federal benefit	7			2			23
Non-U.S. income taxed at different rates	(14)			20			(18)
Change in unrecognized tax benefits	(8)			(35)			(6)
Foreign-derived intangible income deduction	(47)			(41)			(46)
Realized loss on divestiture of business	—			(104)			—
Excess tax benefits from stock-based compensation	(4)			(14)			(19)
Other, net	(21)			(10)			—
Provision (benefit) for income taxes	$	232		$	99		$	250
Effective tax rate	15.3		%	7.4		%	16.6		%

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,
	2024		2023
	(in millions)
Deferred Tax Assets
Intangibles	$	20	$	102
Employee benefits, other than retirement	31		36
Net operating loss, capital loss, and credit carryforwards	184		152
Deferred revenue	98		16
Share-based compensation	25		24
Capitalized R&D	93		41
Lease obligations	39		37
Other	35		42
Deferred tax assets	$	525	$	450
Tax valuation allowance	(113)		(112)
Deferred tax assets, net of valuation allowance	$	412	$	338
Deferred Tax Liabilities
Property, plant and equipment	$	(62)	$	(26)
Pension benefits and retiree medical benefits	(41)		(25)
Right-of-use asset	(39)		(37)
Other	(4)		(4)
Deferred tax liabilities	$	(146)	$	(92)
Net deferred tax assets (liabilities)	$	266	$	246

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

	October 31,
	2024		2023
	(in millions)
Long-term deferred tax assets (included within other assets)	$	351	$	284
Long-term deferred tax liabilities (included within other long-term liabilities)	(85)		(38)
Total	$	266	$	246

Current and Long Term Tax Assets and Liabilities

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

	October 31,
	2024		2023
	(in millions)
Current income tax assets (included within other current assets)	$	147	$	100
Long-term income tax assets (included within other assets)	3		3
Current income tax liabilities (included within other accrued liabilities)	(152)		(73)
Long-term income tax liabilities (included within other long-term liabilities)	(115)		(162)
Total	$	(117)	$	(132)

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:

	2024		2023		2022
	(in millions)
Balance, beginning of year	$	98	$	123	$	133
Additions for tax positions related to the current year	6		5		5
Additions for tax positions from prior years	3		3		—
Reductions for tax positions from prior years	(1)		(27)		(9)
Statute of limitations expirations	(9)		(6)		(6)
Balance, end of year	$	97	$	98	$	123