Income Taxes (Tables)

12 Months Ended

Oct. 28, 2017

Schedule of income tax provision reconciliation

The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense for fiscal 2017, fiscal 2016 and fiscal 2015 is as follows:



	2017			2016			2015
U.S. federal statutory tax rate	35.0		%	35.0		%	35.0		%
Income tax provision reconciliation:
Tax at statutory rate:	$	289,970		$	334,922		$	283,540
Net foreign income subject to lower tax rate	(385,189		)	(264,157		)	(198,061		)
State income taxes, net of federal benefit	(8,801		)	(10,821		)	(4,425		)
Valuation allowance	(7,778		)	13,658			4,875
Federal research and development tax credits	(16,475		)	(16,237		)	(8,232		)
Change in uncertain tax positions	(51,088		)	4,797			2,449
Amortization of purchased intangibles	159,466			35,641			38,973
Acquisition and integration costs	109,040			—			—
Other, net	12,081			(2,546		)	(5,883		)
Total income tax provision	$	101,226		$	95,257		$	113,236

Schedule of income before income tax domestic and foreign

For financial reporting purposes, income before income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 includes the following components:



	2017		2016		2015
Pretax income:
Domestic	$	109,565	$	2,642	$	110,710
Foreign	718,920		954,279		699,404
Income before income taxes	$	828,485	$	956,921	$	810,114

Schedule of components of the provision for income taxes

The components of the provision for income taxes for fiscal 2017, fiscal 2016 and fiscal 2015 are as follows:



	2017			2016		2015
Current:
Federal tax	$	857,664		$	27,790	$	65,942
State	7,335			1,409		695
Foreign	62,096			57,934		98,813
Total current	$	927,095		$	87,133	$	165,450
Deferred:
Federal	$	(795,478	)	$	325	$	(27,933	)
State	(24,285		)	2,820		541
Foreign	(6,106		)	4,979		(24,822		)
Total deferred	$	(825,869	)	$	8,124	$	(52,214	)

Schedule of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities for fiscal 2017 and fiscal 2016 are as follows:



	2017			2016
Deferred tax assets:
Inventory reserves	$	28,137		$	22,527
Deferred income on shipments to distributors	62,923			49,455
Reserves for compensation and benefits	84,096			48,062
Tax credit carryovers	68,317			68,669
Stock-based compensation	99,815			56,345
Depreciation	2,659			3,078
Net operating losses	11,158			8,225
Acquisition-related costs	3,384			13,336
Other	34,737			39,256
Total gross deferred tax assets	395,226			308,953
Valuation allowance	(53,787		)	(67,094		)
Total deferred tax assets	341,439			241,859
Deferred tax liabilities:
Depreciation	(64,868		)	(59,218		)
Undistributed earnings of foreign subsidiaries	(64,067		)	(60,986		)
Acquisition-related intangibles	(1,851,818		)	(193,059		)
Other	(3,047		)	(2,522		)
Total gross deferred tax liabilities	(1,983,800		)	(315,785		)
Net deferred tax liabilities	$	(1,642,361	)	$	(73,926	)

Schedule of changes in unrealized tax benefits

The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2015 through fiscal 2017:



	Unrealized Tax Benefits
Balance, November 1, 2014	$	65,464
Additions for tax positions related to current year	524
Additions for tax positions related to prior years	9,799
Reductions for tax positions related to prior years	(2,745		)
Reductions due to lapse of applicable statute of limitations	(1,260		)
Balance, October 31, 2015	$	71,782
Additions for tax positions related to current year	2,539
Reductions for tax positions related to prior years	(4,475		)
Reductions due to lapse of applicable statute of limitations	(1,311		)
Balance, October 29, 2016	$	68,535
Additions for tax positions related to current year	1,742
Additions for tax positions related to acquisition	12,332
Reductions for tax positions related to prior years	(43,186		)
Reductions due to lapse of applicable statute of limitations	(1,566		)
Balance, October 28, 2017	$	37,857