Income Taxes (Tables)

12 Months Ended

Oct. 28, 2016

The provision for income taxes for continuing operations included in the Consolidated Statements of Operations consists of the following:



In thousands	October 28, 2016			October 30, 2015			October 31, 2014
Current (benefit) provision
Federal	$	(46,843	)	$	23,673		$	82,618
State	(3,506		)	937			5,888
Foreign	32,096			53,278			52,029
Total current (benefit) provision	(18,253		)	77,888			140,535
Deferred (benefit) provision
Federal	9,203			(59,088		)	2,821
State	1,984			(1,393		)	948
Foreign	(16,260		)	(16,532		)	(10,244		)
Total deferred benefit	(5,073		)	(77,013		)	(6,475		)
Total (benefit) provision for income taxes	$	(23,326	)	$	875		$	134,060

Domestic and Foreign Components of Income From Continuing Operations Before Income Taxes

The domestic and foreign components of (loss) income from continuing operations before income taxes are as follows:



In thousands	October 28, 2016			October 30, 2015			October 31, 2014
Domestic (loss) income from continuing operations	$	(120,092	)	$	(73,408	)	$	304,060
Foreign income (loss) from continuing operations	32,921			(1,103,721		)	168,118
Pre-tax (loss) income from continuing operations	$	(87,171	)	$	(1,177,129	)	$	472,178

Income Tax Reconciliation

The reconciliation between the income tax (benefit) provision recognized in our Consolidated Statements of Operations and the income tax (benefit) provision computed by applying the statutory federal income tax rate to the (loss) income from continuing operations are as follows:



In thousands	October 28, 2016		October 30, 2015		October 31, 2014
Income tax computed at federal statutory tax rate	35.0	%	35.0	%	35.0	%
Sub-part F income and foreign dividends, net of foreign tax credits	—		3.5		0.1
Differences in foreign and U.S. tax rates	8.7		(8.1	)	(5.1	)
State income taxes, net of federal tax impact	3.2		—		0.9
Valuation allowance	(22.9	)	(3.5	)	2.2
IRC 199 manufacturing deduction	—		0.6		(2.0	)
Non-deductible impairment charges	—		(26.6	)	—
Other items, net	2.8		(1.0	)	(2.7	)
Effective income tax rate	26.8	%	(0.1	)%	28.4	%

Net Deferred Tax Asset

The components of the net deferred tax asset are as follows:



In thousands	October 28, 2016			October 30, 2015
Deferred tax assets:
Employee benefit related items	$	130,919		$	118,915
Tax credit carryforwards	61,201			46,235
Tax loss carryforwards	164,244			149,024
Inventories	21,580			19,478
Other deferred tax assets, net	56,414			56,030
Valuation allowance, current assets	—			(66,543		)
Valuation allowance, non-current assets	(192,941		)	(110,182		)
Total deferred tax assets	241,417			212,957
Deferred tax liabilities:
Depreciation and amortization in excess of book expense	42,198			51,830
Intangibles	42,629			31,410
Total deferred tax liabilities	84,827			83,240
Net deferred tax asset	$	156,590		$	129,717

The net deferred tax assets are reflected in the Consolidated Balance Sheets as follows:



In thousands	October 28, 2016			October 30, 2015
Current deferred tax assets, included in Other current assets	$	—		$	39,464
Long-term deferred tax asset, included in Deferred income taxes	171,775			118,913
Current deferred tax liability, included in Other accrued liabilities	—			(1,672		)
Long-term deferred tax liability, included in Other liabilities	(15,185		)	(26,988		)
Net deferred tax asset	$	156,590		$	129,717

Loss and Credit Carryforward Summary

The following table summarizes the components of our loss and credit carryforward:



Loss and Credit Carryforward Summary
	Amount
Description - In millions	Gross		Benefit		Valuation Allowance		Expiration Date(s)
Foreign capital losses	$	47.3	$	8.2	$	8.2	None
U.S. state operating losses	1,947.4		106.8		97.5		Various
Foreign operating losses	196.9		49.3		48.3		$4.1 - None $45.2 - 2017 to 2021
State tax credits	N/A		2.1		2.1		Various
Foreign tax credits	N/A		58.1		0.9		$0.9 - 2017 to 2018 $57.2 - 2025 to 2026
Various international tax credits	N/A		1.0		—		None

Net Unrecognized Tax Benefit

Unrecognized tax benefits are as follows:



In thousands	October 28, 2016			October 30, 2015
Balance, beginning of year	$	82,587		$	77,766
Additions for current year tax positions and acquisition	—			3,490
Additions for prior year tax positions	4,095			3,207
Reductions for prior year tax positions	(10,740		)	(1,876		)
Reclassification to uncertain tax positions	(3,226		)	—
Balance, end of year	$	72,716		$	82,587