Income Taxes (Tables)

12 Months Ended

Oct. 31, 2019

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Total Income Before Provision for Income Tax

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2019		2018			2017
	(in thousands)
United States	$	487,430	$	(18,029	)	$	(2,702	)
Foreign	58,076		381,572			385,800
Total income (loss) before provision for income taxes	$	545,506	$	363,543		$	383,098

Components of (Benefit) Provision for Income Taxes

The components of the provision (benefit) for income taxes were as follows:

	Year Ended October 31,
	2019			2018			2017
	(in thousands)
Current:
Federal	$	22,821		$	(1,120	)	$	25,420
State	11,846			2,025			5,565
Foreign	61,092			140,430			92,498
	95,759			141,335			123,483
Deferred:
Federal	(41,219		)	(139,547		)	95,003
State	(7,227		)	(25,661		)	24,440
Foreign	(34,174		)	(45,102		)	3,609
	(82,620		)	(210,310		)	123,052
Provision (benefit) for income taxes	$	13,139		$	(68,975	)	$	246,535

Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows: 

	Year Ended October 31,
	2019			2018			2017
	(in thousands)
Statutory federal tax	$	114,557		$	85,142		$	134,084
State tax (benefit), net of federal effect	6,529			(32,351		)	(20,071		)
Tax credits	(34,485		)	(35,142		)	(24,365		)
Tax on foreign earnings	23,467			(104,252		)	(52,413		)
Foreign-derived intangible income deduction	(26,615		)	—			—
Tax settlements	(10,953		)	(14,691		)	(7,057		)
Stock-based compensation	(25,356		)	(19,293		)	(26,205		)
Changes in valuation allowance	(42,144		)	78,192			47,745
Integration of acquired technologies	—			27,927			36,443
Undistributed earnings of foreign subsidiaries	6,341			(974		)	(9,610		)
Tax impact of repatriation	—			—			166,152
Impact of tax restructuring	—			(171,979		)	—
Impact of Tax Act rate change	—			51,075			—
Transition tax	—			63,107			—
Other	1,798			4,264			1,832
Provision (benefit) for income taxes	$	13,139		$	(68,975	)	$	246,535

Components of Deferred Tax Assets and Liabilities

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

	October 31,
	2019			2018
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	—		$	17,766
Deferred revenue	—			37,072
Deferred compensation	56,483			50,096
Intangible and depreciable assets	160,072			185,940
Capitalized research and development costs	48,804			4,817
Stock-based compensation	20,372			19,825
Tax loss carryovers	40,068			37,029
Foreign tax credit carryovers	20,187			64,803
Research and other tax credit carryovers	278,382			250,069
Other	—			4,480
Gross deferred tax assets	624,368			671,897
Valuation allowance	(157,343		)	(201,258		)
Total deferred tax assets	467,025			470,639
Deferred tax liabilities:
Intangible assets	58,697			72,682
Accruals and reserves	4,450			—
Deferred revenue	6,611			—
Undistributed earnings of foreign subsidiaries	6,864			523
Other	1,762			—
Total deferred tax liabilities	78,384			73,205
Net deferred tax assets	$	388,641		$	397,434

Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount		Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	82,002	2020-2037
Federal research credit carryforward	144,672		2020-2039
Federal foreign tax credit carryforward	7,014		2020-2029
International foreign tax credit carryforward	15,522		Indefinite
International net operating loss carryforward	85,785		2021-Indefinite
California research credit carryforward	187,685		Indefinite
Other state research credit carryforward	13,429		2023-2034
State net operating loss carryforward	71,709		2027-2037

Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit

A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2019			As of October 31, 2018
	(in thousands)
Beginning balance	$	131,019		$	91,637
Increases in unrecognized tax benefits related to prior year tax positions	41,346			2,572
Decreases in unrecognized tax benefits related to prior year tax positions	(71,092		)	(27,615		)
Increases in unrecognized tax benefits related to current year tax positions	16,927			67,961
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(1,624		)	(175		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(964		)	(8,828		)
Increases in unrecognized tax benefits acquired	—			7,886
Changes in unrecognized tax benefits due to foreign currency translation	600			(2,419		)
Ending balance	$	116,212		$	131,019

Subsidiaries Remain Subject to Tax Examination

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States	Fiscal 2019
California	Fiscal years after 2014
Hungary and Ireland	Fiscal years after 2013
Japan and Taiwan	Fiscal years after 2014
Korea	Fiscal years after 2016