Income Taxes (Tables)

12 Months Ended

Oct. 29, 2023

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:

 

	2023		2022		2021
	(In millions)
U.S.	$	1,234	$	1,171	$	512
Foreign	6,482		6,428		6,259
	$	7,716	$	7,599	$	6,771

Components of the provision for income taxes

The components of the provision for income taxes for each fiscal year were as follows:

	2023		2022		2021
	(In millions)
Current:
U.S.	$	708	$	590	$	462
Foreign	456		275		344
State	54		14		17
	1,218		879		823
Deferred:
U.S.	(255)		(62)		(3)
Foreign	(61)		265		67
State	(42)		(8)		(4)
	(358)		195		60
	$	860	$	1,074	$	883

Effective income tax rate continuing operations tax rate reconciliation

A reconciliation between the statutory U.S. federal income tax rate and our actual effective income tax rate for each fiscal year is presented below:

 

	2023		2022		2021
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations taxed at various rates	(8.2)		(4.4)		(7.0)
Changes in prior years’ unrecognized tax benefits	(0.2)		(0.9)		0.2
Resolutions of prior years’ income tax filings	(0.1)		(0.2)		(0.1)
Research and other tax credits	(1.6)		(1.0)		(0.9)
Other	0.2		(0.4)		(0.2)
	11.1	%	14.1	%	13.0	%

Components of deferred income tax assets and liabilities

The components of deferred income tax assets and liabilities were as follows: 

	October 29, 2023		October 30, 2022
	(In millions)
Deferred tax assets:
Capitalized R&D expenses	$	83	$	—
Allowance for doubtful accounts	4		5
Inventory reserves and basis difference	125		131
Installation and warranty reserves	35		29
Intangible assets	1,031		984
Accrued liabilities	19		35
Deferred revenue	72		82
Tax credits	536		453
Deferred compensation	217		125
Share-based compensation	50		42
Property, plant and equipment	9		—
Lease liability	98		81
Other	96		67
Gross deferred tax assets	2,375		2,034
Valuation allowance	(530)		(460)
Total deferred tax assets	1,845		1,574
Deferred tax liabilities:
Property, plant and equipment	—		(111)
Right of use assets	(103)		(80)
Undistributed foreign earnings	(23)		(39)
Total deferred tax liabilities	(126)		(230)
Net deferred tax assets	$	1,719	$	1,344

Summary of valuation allowance

Changes in the valuation allowance in each fiscal year were as follows:

	2023		2022		2021
	(In millions)
Beginning balance	$	460	$	361	$	314
Increases	70		99		47
Ending balance	$	530	$	460	$	361

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: 

	2023		2022		2021
	(In millions)
Beginning balance of gross unrecognized tax benefits	$	498	$	537	$	496
Settlements with tax authorities	—		(25)		—
Lapses of statutes of limitation	—		—		(4)
Increases in tax positions for current year	28		26		26
Increases in tax positions for prior years	—		28		23
Decreases in tax positions for prior years	(16)		(68)		(4)
Ending balance of gross unrecognized tax benefits	$	510	$	498	$	537