Income Taxes (Tables)

12 Months Ended

Oct. 31, 2020

Income Tax Disclosure [Abstract]

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 2020, fiscal 2019 and fiscal 2018 is as follows:

	2020			2019			2018 (1)
U.S. federal statutory tax rate	21.0		%	21.0		%	23.4		%
Income tax provision reconciliation:
Tax at statutory rate	$	275,439		$	312,003		$	387,343
Net foreign income subject to lower tax rate	(225,937)			(242,893)			(420,756)
State income taxes, net of federal benefit	(23,537)			(31,265)			4,428
Valuation allowance	13,655			34,069			2,232
Federal research and development tax credits	(31,055)			(50,769)			(33,602)
Change in uncertain tax positions	(13,304)			7,233			(32,945)
Amortization of purchased intangibles	101,906			111,547			213,198
Taxes attributable to the Tax Cuts and Jobs Act of 2017	—			(7,500)			56,608
U.S. effects of international operations	11,903			19,782			—
Windfalls (under ASU 2016-09)	(16,240)			(28,677)			(26,237)
Other, net	(1,974)			(813)			(1,935)
Total income tax provision	$	90,856		$	122,717		$	148,334

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(1)Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, of the Notes to Consolidated Financial Statements.

Schedule of income before income tax domestic and foreign

Income before income taxes for fiscal 2020, fiscal 2019 and fiscal 2018 includes the following components:

Income before income taxes (1)	2020		2019		2018 (2)
Domestic	$	355,442	$	484,876	$	615,238
Foreign	956,175		1,000,852		1,040,076
Income before income taxes	$	1,311,617	$	1,485,728	$	1,655,314

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(1)Income before income taxes reflects deemed intercompany royalties in all periods presented.

(2)Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, of the Notes to Consolidated Financial Statements

Schedule of components of the provision for income taxes

The components of the provision for income taxes for fiscal 2020, fiscal 2019 and fiscal 2018 are as follows:

	2020		2019		2018 (1)
Current:
Federal tax	$	64,876	$	74,049	$	824,848
State	4,882		2		6,043
Foreign	135,046		139,919		47,819
Total current	$	204,804	$	213,970	$	878,710
Deferred:
Federal	$	(159,229)	$	(158,472)	$	(738,163)
State	(12,684)		(3,627)		1,092
Foreign	57,965		70,846		6,695
Total deferred	$	(113,948)	$	(91,253)	$	(730,376)
Provision for income tax	$	90,856	$	122,717	$	148,334

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(1)Balances have been restated to reflect the adoption of ASU 2014-09. See Note 2a, Principles of Consolidation, of the Notes to Consolidated Financial Statements.

Schedule of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities for fiscal 2020 and fiscal 2019 are as follows:

	2020		2019
Deferred tax assets:
Inventory reserves	$	17,074	$	21,081
Reserves for compensation and benefits	54,428		53,090
Tax credit carryovers	163,507		133,485
Stock-based compensation	12,758		63,589
Net operating losses	8,546		5,299
Intra-entity transfer of intangible assets	1,479,944		1,567,536
Lease liability	55,250		—
Other	159,838		70,974
Total gross deferred tax assets	1,951,345		1,915,054
Valuation allowance	(154,130)		(116,349)
Total deferred tax assets	1,797,215		1,798,705
Deferred tax liabilities:
Depreciation	(7,409)		(38,464)
Deferred GILTI tax liabilities	(1,183,955)		(1,254,029)
Right of use asset	(51,055)		—
Acquisition-related intangible	(971,327)		(1,012,042)
Total gross deferred tax liabilities	(2,213,746)		(2,304,535)
Net deferred tax liabilities	$	(416,531)	$	(505,830)

Schedule of changes in unrealized tax benefits

The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2018 through fiscal 2020:

	Unrealized Tax Benefits
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
Additions for tax positions related to current year	3,398
Additions for tax positions related to prior years	18,613
Reductions due to lapse of applicable statute of limitations	(924)
Balance, November 2, 2019	$	34,343
Additions for tax positions related to current year	3,270
Reductions for tax positions related to prior years	(16,152)
Reductions due to lapse of applicable statute of limitations	(170)
Balance, October 31, 2020	$	21,291