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Income Taxes (Tables)

12 Months Ended

Oct. 28, 2023

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 2023, fiscal 2022 and fiscal 2021 is as follows:


	2023			2022			2021
U.S. federal statutory tax rate	21.0		%	21.0		%	21.0		%
Income tax provision reconciliation:
Tax at statutory rate	$	757,681		$	650,737		$	279,030
Net foreign income subject to lower tax rate	(358,944)			(358,725)			(227,470)
State income taxes, net of federal benefit	4,453			(15,615)			(28,052)
Valuation allowance	(6,641)			29,737			13,263
Federal research and development tax credits	(65,391)			(58,625)			(37,902)
Change in uncertain tax positions	17,985			19,394			(1,061)
Amortization of purchased intangibles	142,358			142,375			146,094
Acquisition and integration costs	—			—			11,367
Taxes attributable to the Tax Cuts and Jobs Act of 2017	(81,695)			—			—
U.S. effects of international operations	(98,286)			(47,665)			(24,624)
Windfalls (under ASU 2016-09)	(24,211)			(16,717)			(26,365)

Intra-entity transfer of intangible assets	—			—			(188,804)
Other, net	6,115			5,292			22,816
Total income tax provision (benefit)	$	293,424		$	350,188		$	(61,708)

Schedule of income before income tax domestic and foreign

Income before income taxes for fiscal 2023, fiscal 2022 and fiscal 2021 includes the following components:


Income before income taxes (1)	2023		2022		2021

Domestic	$	846,592	$	958,465	$	508,100
Foreign	2,761,411		2,140,284		820,614
Income before income taxes	$	3,608,003	$	3,098,749	$	1,328,714

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

Schedule of components of the provision for (benefit from) income taxes

The components of the provision for (benefit from) income taxes for fiscal 2023, fiscal 2022 and fiscal 2021 are as follows:


	2023		2022		2021
Current:
Federal tax	$	303,146	$	304,556	$	134,652
State	11,772		13,214		7,772
Foreign	431,452		359,173		202,790
Total current	$	746,370	$	676,943	$	345,214
Deferred:
Federal	$	(508,741)	$	(341,777)	$	515,541
State	2,063		(612)		(12,444)
Foreign	53,732		15,634		(910,019)
Total deferred	$	(452,946)	$	(326,755)	$	(406,922)
Provision for (benefit from) income tax	$	293,424	$	350,188	$	(61,708)

Schedule of deferred tax assets and liabilities

The significant components of the Company’s deferred tax assets and liabilities for fiscal 2023 and fiscal 2022 are as follows:


	2023		2022
Deferred tax assets:
Inventory reserves	$	20,159	$	16,584

Reserves for compensation and benefits	57,603		60,871
Tax credit carryovers	313,891		327,671

Stock-based compensation	10,734		25,059


Net operating losses	42,825		43,696
Intangible assets	1,955,752		1,975,096
Lease liability	82,305		76,709
Capitalization of R&D expenses (1)	421,485		155,099
Other	88,164		93,697
Total gross deferred tax assets	2,992,918		2,774,482
Valuation allowance	(332,464)		(339,105)
Total deferred tax assets	2,660,454		2,435,377
Deferred tax liabilities:

Depreciation	(122,125)		(96,660)
Deferred GILTI tax liabilities	(2,654,817)		(2,824,332)
Right of use asset	(60,343)		(55,858)
Acquisition-related intangibles	(727,749)		(816,177)

Total gross deferred tax liabilities	(3,565,034)		(3,793,027)
Net deferred tax liabilities	$	(904,580)	$	(1,357,650)

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(1) As of October 28, 2023, the Company included the effects of the mandatory capitalization and amortization of research and development expenses which began in fiscal 2023 under the Tax Cuts and Jobs Act.

Schedule of changes in unrealized tax benefits

The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2021 through fiscal 2023:


	Unrealized Tax Benefits

























Balance, October 31, 2020	$	21,291
Additions for tax positions related to current year	4,713

Additions for tax positions related to prior years	19,790
Additions for tax positions related to the Acquisition	91,179
Reductions due to lapse of applicable statute of limitations	(4,452)
Balance, October 30, 2021	$	132,521
Additions for tax positions related to the Acquisition	15,267
Additions for tax positions related to current year	11,800
Additions for tax positions related to prior years	9,704
Reductions due to lapse of applicable statute of limitations	(3,965)
Balance, October 29, 2022	$	165,327


Additions for tax positions related to current year	5,895
Additions for tax positions related to prior years	17,096
Reductions due to lapse of applicable statute of limitations	(903)
Balance, October 28, 2023	$	187,415