Income Taxes

3 Months Ended

Feb. 02, 2020

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

The benefit from income taxes was $76 million and $203 million for the fiscal quarters ended February 2, 2020 and February 3, 2019, respectively.

The benefit from income taxes for the fiscal quarter ended February 2, 2020 was primarily due to the remeasurement of certain foreign deferred tax assets and liabilities and excess tax benefits from stock-based awards that vested or were exercised during the period.

The benefit from income taxes for the fiscal quarter ended February 3, 2019 was primarily due to the resolution of uncertain tax positions as a result of audit settlements and lapses of statutes of limitations, partial release of our valuation allowance as a result of the CA Merger, and excess tax benefits from stock-based awards that were vested or exercised during the period.

In connection with the Symantec Asset Purchase, we established $28 million of net deferred tax assets primarily as a result of the difference in the book basis and tax basis related to acquired assets. The deferred tax assets are based upon certain assumptions underlying our preliminary purchase price allocation. Upon finalization of the purchase price allocation, additional adjustments to the amount of our net deferred taxes may be required, provided we are in the measurement period.

Uncertain Tax Positions

The balance of gross unrecognized tax benefits was $4,483 million and $4,422 million as of February 2, 2020 and November 3, 2019, respectively. This increase was primarily due to changes in uncertain tax positions from audit adjustments.

Accrued interest and penalties are included in other long-term liabilities on the condensed consolidated balance sheets. As of February 2, 2020 and November 3, 2019, the combined amount of cumulative accrued interest and penalties was approximately $315 million and $303 million, respectively.

As of February 2, 2020 and November 3, 2019, approximately $4,798 million and $4,725 million, respectively, of the unrecognized tax benefits, including accrued interest and penalties, would affect our effective tax rate if favorably resolved.

We are subject to U.S. income tax examination for fiscal years 2013 and later. Certain of our acquired companies are subject to tax examinations in major jurisdictions outside of the U.S. for fiscal years 2008 and later. It is possible that our existing unrecognized tax benefits may change up to $168 million as a result of lapses of the statute of limitations for certain audit periods and/or audit examinations expected to be completed within the next 12 months.