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Income Taxes (Tables)
 12 Months Ended
Oct. 27, 2019
Income Tax Disclosure [Abstract]  
Components of income from operations before income taxes
The components of income before income taxes for each fiscal year were as follows:
 
201920182017
 (In millions)
U.S.$363  $389  $510  
Foreign2,906  4,007  3,306  
$3,269  $4,396  $3,816  
Components of the provision for income taxes
The components of the provision for income taxes for each fiscal year were as follows:
201920182017
 (In millions)
Current:
U.S.$240  $1,021  $64  
Foreign260  117  236  
State12  22  9  
512  1,160  309  
Deferred:
U.S.8  151  (11) 
Foreign46  57  (7) 
State(3) (10) 6  
51  198  (12) 
$563  $1,358  $297  
Effective income tax rate continuing operations tax rate reconciliation
A reconciliation between the statutory U.S. federal income tax rate and Applied’s actual effective income tax rate for each fiscal year is presented below:
 
201920182017
Tax provision at U.S. statutory rate21.0 %23.4 %35.0 %
Changes in U.S. tax law—  25.3  —  
Effect of foreign operations taxed at various rates(5.9) (15.6) (25.3) 
Changes in prior years' unrecognized tax benefits2.6  (0.9) 0.1  
Resolutions of prior years' income tax filings(0.1) 0.2  (1.8) 
Research and other tax credits(1.1) (0.8) (0.7) 
Other0.7  (0.7) 0.5  
17.2 %30.9 %7.8 %
Components of deferred income tax assets and liabilities The components of deferred income tax assets and liabilities were as follows: 
October 27,
2019		October 28,
2018
 (In millions)
Deferred tax assets:
Allowance for doubtful accounts$8  $8  
Inventory reserves and basis difference117  117  
Installation and warranty reserves11  7  
Intangible assets1,472  —  
Accrued liabilities15  20  
Deferred revenue36  12  
Tax credits 264  236  
Deferred compensation98  79  
Share-based compensation36  37  
Other58  45  
Gross deferred tax assets2,115  561  
Valuation allowance(257) (230) 
Total deferred tax assets1,858  331  
Deferred tax liabilities:
Fixed assets(65) (48) 
Intangible assets—  (38) 
Undistributed foreign earnings(38) (32) 
Total deferred tax liabilities(103) (118) 
Net deferred tax assets$1,755  $213  

The following table presents a summary of non-current deferred tax assets and liabilities:
 
October 27,
2019		October 28,
2018
 (In millions)
Non-current deferred tax asset$1,766  $225  
Non-current deferred tax liability(11) (12) 
$1,755  $213  
Summary of valuation allowance Changes in the valuation allowance in each fiscal year were as follows:
201920182017
(In millions)
Beginning balance$230  $227  $207  
Increases27  8  20  
Decreases—  (5) —  
Ending balance$257  $230  $227  
A reconciliation of gross unrecognized tax benefits A reconciliation of the beginning and ending balances of gross unrecognized tax benefits in each fiscal year is as follows: 
201920182017
 (In millions)
Beginning balance of gross unrecognized tax benefits$374  $391  $320  
Settlements with tax authorities(1) (152) (42) 
Lapses of statutes of limitation(2) (37) (15) 
Increases in tax positions for current year33  91  95  
Increases in tax positions for prior years441  83  33  
Decreases in tax positions for prior years—  (2) —  
Ending balance of gross unrecognized tax benefits$845  $374  $391