Income Taxes (Tables)

12 Months Ended

Oct. 27, 2024

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:

 

	2024		2023		2022
	(In millions)
U.S.	$	833	$	1,234	$	1,171
Foreign	7,319		6,482		6,428
Total	$	8,152	$	7,716	$	7,599

Components of the provision for income taxes

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

	2024		2023		2022
	(In millions)
Current:
U.S.	$	1,254	$	708	$	590
Foreign	366		456		275
State	33		54		14
	1,653		1,218		879
Deferred:
U.S.	(697)		(255)		(62)
Foreign	30		(61)		265
State	(11)		(42)		(8)
	(678)		(358)		195
Total	$	975	$	860	$	1,074

Effective income 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:

 

	2024		2023		2022
Tax provision at U.S. statutory rate	21.0	%	21.0	%	21.0	%
Effect of foreign operations taxed at various rates	(7.6)		(8.2)		(4.4)
Changes in prior years’ unrecognized tax benefits	—		(0.2)		(0.9)
Resolutions of prior years’ income tax filings	(0.1)		(0.1)		(0.2)
Research and other tax credits	(1.4)		(1.6)		(1.0)
Other	0.1		0.2		(0.4)
Total	12.0	%	11.1	%	14.1	%

Components of deferred income tax assets and liabilities

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

	October 27, 2024		October 29, 2023
	(In millions)
Deferred tax assets:
Corporate Alternative Minimum Tax	$	410	$	—
Capitalized R&D expenses	217		83
Allowance for doubtful accounts	4		4
Inventory reserves and basis difference	127		125
Installation and warranty reserves	70		35
Intangible assets	977		1,031
Accrued liabilities	24		19
Deferred revenue	72		72
Tax credits	592		536
Deferred compensation	261		217
Share-based compensation	44		50
Property, plant and equipment	101		9
Lease liability	72		98
Other	79		96
Gross deferred tax assets	3,050		2,375
Valuation allowance	(569)		(530)
Total deferred tax assets	2,481		1,845
Deferred tax liabilities:
Right of use assets	(76)		(103)
Undistributed foreign earnings	(23)		(23)
Total deferred tax liabilities	(99)		(126)
Net deferred tax assets	$	2,382	$	1,719

Summary of valuation allowance

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

	2024		2023		2022
	(In millions)
Beginning balance	$	530	$	460	$	361
Increases	39		70		99
Ending balance	$	569	$	530	$	460

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: 

	2024		2023		2022
	(In millions)
Beginning balance of gross unrecognized tax benefits	$	510	$	498	$	537
Settlements with tax authorities	—		—		(25)
Increases in tax positions for current year	25		28		26
Increases in tax positions for prior years	13		—		28
Decreases in tax positions for prior years	(4)		(16)		(68)
Ending balance of gross unrecognized tax benefits	$	544	$	510	$	498