Income Taxes (Tables)

12 Months Ended

Oct. 31, 2020

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,
	2020		2019		2018
	(in thousands)
United States	$	544,391	$	487,430	$	(18,029	)
Foreign	93,768		58,076		381,572
Total income (loss) before provision for income taxes	$	638,159	$	545,506	$	363,543

Components of (Benefit) Provision for Income Taxes

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

	Year Ended October 31,
	2020			2019			2018
	(in thousands)
Current:
Federal	$	29,272		$	22,821		$	(1,120	)
State	1,863			11,846			2,025
Foreign	55,103			61,092			140,430
	86,238			95,759			141,335
Deferred:
Federal	(84,739		)	(41,219		)	(139,547		)
State	(20,233		)	(7,227		)	(25,661		)
Foreign	(6,554		)	(34,174		)	(45,102		)
	(111,526		)	(82,620		)	(210,310		)
Provision (benefit) for income taxes	$	(25,288	)	$	13,139		$	(68,975	)

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,
	2020			2019			2018
	(in thousands)
Statutory federal tax	$	133,979		$	114,557		$	85,142
State tax (benefit), net of federal effect	(29,096		)	6,529			(32,351		)
Tax credits	(39,206		)	(34,485		)	(35,142		)
Tax on foreign earnings	(3,980		)	23,467			(104,252		)
Foreign-derived intangible income deduction	(24,282		)	(26,615		)	—
Tax settlements	(13,167		)	(10,953		)	(14,691		)
Stock-based compensation	(50,047		)	(25,356		)	(19,293		)
Changes in valuation allowance	(614		)	(42,144		)	78,192
Integration of acquired technologies	—			—			27,927
Undistributed earnings of foreign subsidiaries	—			6,341			(974		)
Impact of tax restructuring	—			—			(171,979		)
Impact of Tax Act rate change	—			—			51,075
Transition tax	—			—			63,107
Other	1,125			1,798			4,264
Provision (benefit) for income taxes	$	(25,288	)	$	13,139		$	(68,975	)

Components of Deferred Tax Assets and Liabilities

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

	October 31,
	2020			2019
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Deferred revenue	2,367			—
Deferred compensation	55,172			56,483
Intangible and depreciable assets	115,097			160,072
Capitalized research and development costs	118,857			48,804
Stock-based compensation	28,478			20,372
Tax loss carryovers	35,571			40,068
Foreign tax credit carryovers	18,645			20,187
Research and other tax credit carryovers	320,317			278,382
Operating Lease Liabilities	101,386			—
Gross deferred tax assets	795,890			624,368
Valuation allowance	(158,895		)	(157,343		)
Total deferred tax assets	636,995			467,025
Deferred tax liabilities:
Intangible assets	45,915			58,697
Operating lease Right-of-Use-Assets	84,716			—
Accruals and reserves	7,780			4,450
Deferred revenue	—			6,611
Undistributed earnings of foreign subsidiaries	3,063			6,864
Other	372			1,762
Total deferred tax liabilities	141,846			78,384
Net deferred tax assets	$	495,149		$	388,641

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	$	41,757	2021-2037
Federal research credit carryforward	176,616		2021-2040
Federal foreign tax credit carryforward	1,921		2021-2029
International foreign tax credit carryforward	15,681		Indefinite
International net operating loss carryforward	81,069		2021-Indefinite
California research credit carryforward	173,600		Indefinite
Other state research credit carryforward	15,486		2024-2035
State net operating loss carryforward	70,251		2027-2039

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, 2020			As of October 31, 2019
	(in thousands)
Beginning balance	$	116,212		$	131,019
Increases in unrecognized tax benefits related to prior year tax positions	5,390			41,346
Decreases in unrecognized tax benefits related to prior year tax positions	(43,783		)	(71,092		)
Increases in unrecognized tax benefits related to current year tax positions	9,226			16,927
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(1,411		)	(1,624		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(2,472		)	(964		)
Increases in unrecognized tax benefits acquired	778			—
Changes in unrecognized tax benefits due to foreign currency translation	(791		)	600
Ending balance	$	83,149		$	116,212

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 and 2020
California	Fiscal years after 2017
Hungary	Fiscal years after 2018
Ireland	Fiscal years after 2016
Japan and Taiwan	Fiscal years after 2015
Korea	Fiscal years after 2016