Income Taxes (Tables)

12 Months Ended

Nov. 03, 2018

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 2018, fiscal 2017 and fiscal 2016 is as follows:



	2018			2017			2016
U.S. federal statutory tax rate	23.4		%	35.0		%	35.0		%
Income tax provision reconciliation:
Tax at statutory rate:	$	383,413		$	289,970		$	334,922
Net foreign income subject to lower tax rate	(434,834		)	(385,189		)	(264,157		)
State income taxes, net of federal benefit	4,015			(8,801		)	(10,821		)
Valuation allowance	2,232			(7,778		)	13,658
Federal research and development tax credits	(33,602		)	(16,475		)	(16,237		)
Change in uncertain tax positions	(32,945		)	(51,088		)	4,797
Amortization of purchased intangibles	213,198			159,466			35,641
Acquisition and integration costs	—			109,040			—
Taxes attributable to the Tax Cuts and Jobs Act of 2017	70,029			—			—
Windfalls (Under ASU 2016-09)	(26,237		)	—			—
Other, net	(2,184		)	12,081			(2,546		)
Total income tax provision	$	143,085		$	101,226		$	95,257

Schedule of income before income tax domestic and foreign

For financial reporting purposes, income before income taxes for fiscal 2018, fiscal 2017 and fiscal 2016 includes the following components:



	2018		2017		2016
Pretax income:
Domestic	$	590,190	$	109,565	$	2,642
Foreign	1,048,327		718,920		954,279
Income before income taxes	$	1,638,517	$	828,485	$	956,921

Schedule of components of the provision for income taxes

The components of the provision for income taxes for fiscal 2018, fiscal 2017 and fiscal 2016 are as follows:



	2018			2017			2016
Current:
Federal tax	$	826,294		$	857,664		$	27,790
State	5,917			7,335			1,409
Foreign	47,633			62,096			57,934
Total current	$	879,844		$	927,095		$	87,133
Deferred:
Federal	$	(744,260	)	$	(795,478	)	$	325
State	806			(24,285		)	2,820
Foreign	6,695			(6,106		)	4,979
Total deferred	$	(736,759	)	$	(825,869	)	$	8,124

Schedule of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities for fiscal 2018 and fiscal 2017 are as follows:



	2018			2017
Deferred tax assets:
Inventory reserves	$	22,184		$	28,137
Deferred income on shipments to distributors	46,168			62,923
Reserves for compensation and benefits	39,185			84,096
Tax credit carryovers	112,851			68,317
Stock-based compensation	53,105			99,815
Depreciation	1,707			2,659
Net operating losses	5,997			11,158
Acquisition-related costs	—			3,384
Other	34,031			34,737
Total gross deferred tax assets	315,228			395,226
Valuation allowance	(82,280		)	(53,787		)
Total deferred tax assets	232,948			341,439
Deferred tax liabilities:
Depreciation	(37,023		)	(64,868		)
Undistributed earnings of foreign subsidiaries	—			(64,067		)
Acquisition-related intangibles	(1,099,998		)	(1,851,818		)
Other	(1,914		)	(3,047		)
Total gross deferred tax liabilities	(1,138,935		)	(1,983,800		)
Net deferred tax liabilities	$	(905,987	)	$	(1,642,361	)

Schedule of changes in unrealized tax benefits

The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2016 through fiscal 2018:



	Unrealized Tax Benefits
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
Additions for tax positions related to current year	1,334
Reductions for tax positions related to prior years	(295		)
Reductions due to lapse of applicable statute of limitations	(25,640		)
Balance, November 3, 2018	$	13,256