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INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income (loss) before taxes are:



	Year Ended October 31,
	2019		2018			2017
	(in millions)
U.S. operations	$	20	$	(532	)	$	(147	)
Non-U.S. operations	695		121			326
Total income (loss) before taxes	$	715	$	(411	)	$	179

Components Of Income Tax Expense Disclosure

The provision (benefit) for income taxes is comprised of:



	Year Ended October 31,
	2019			2018			2017
	(in millions)
U.S. federal taxes:
Current	$	10		$	131		$	21
Deferred	(8		)	46			(56		)
Non-U.S. taxes:
Current	91			75			101
Deferred	14			(832		)	9
State taxes, net of federal benefit:
Current	(5		)	7			2
Deferred	(8		)	(3		)	—
Total provision (benefit) for income taxes	$	94		$	(576	)	$	77

Income Tax Effects On Net Deferred Tax Assets Liabilities Disclosure

The significant components of deferred tax assets and deferred tax liabilities included in the consolidated balance sheet are:



	October 31,
	2019						2018
	Deferred Tax Assets			Deferred Tax Liabilities			Deferred Tax Assets			Deferred Tax Liabilities
	(in millions)
Inventory	$	10		$	(2	)	$	14		$	—
Intangibles	630			(38		)	664			(66		)
Property, plant and equipment	17			(24		)	14			(23		)
Warranty reserves	9			(1		)	11			(1		)
Pension benefits	86			(76		)	47			(67		)
Employee benefits, other than retirement	29			(1		)	27			(1		)
Net operating loss, capital loss, and credit carryforwards	116			—			120			—
Unremitted earnings of foreign subsidiaries	—			(12		)	—			(5		)
Share-based compensation	15			—			14			—
Deferred revenue	25			(5		)	37			(1		)
Other	14			(12		)	11			(1		)
Subtotal	951			(171		)	959			(165		)
Tax valuation allowance	(73		)	—			(79		)	—
Total deferred tax assets or deferred tax liabilities	$	878		$	(171	)	$	880		$	(165	)

Current And Long Term Tax Assets And Current And Long Term Tax Liabilities Disclosure

Summary Of Income Tax Expense Reconciliation

The differences between the U.S. federal statutory income tax rate and our effective tax rate are:



	Year Ended October 31,
	2019			2018			2017
	(in millions)
Profit(loss) before tax times statutory rate	$	150		$	(96	)	$	63
State income taxes, net of federal benefit	(6		)	2			1
US tax on non-US entity income	48			210			5
US benefit on foreign sales	(13		)	—			—
U.S. research credits	(12		)	(10		)	(7		)
Non-US income taxed at different rates	(70		)	16			(83		)
Change in unrecognized tax benefits	(12		)	86			23
Share-based compensation	(5		)	(1		)	7
Singapore tax incentive and amortization	—			(591		)	—
Reversal of deferred taxes on foreign earnings not considered indefinitely reinvested	—			(304		)	—
Goodwill impairment	—			99			—
U.S. federal statutory tax rate change	—			10			—
Malaysia tax assessment	—			—			68
Other, net	14			3			—
Provision (benefit) for income taxes	$	94		$	(576	)	$	77
Effective tax rate	13		%	140		%	43		%

Current and Long Term Tax Assets and Liabilities

The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2019 and 2018:



	October 31,
	2019			2018
	(in millions)
Current income tax assets (included within other current assets)	$	40		$	32
Current income tax liabilities (included within income and other taxes payable)	(35		)	(18		)
Long-term income tax assets (included within other assets)	—			—
Long-term income tax liabilities (included within other long-term liabilities)	(198		)	(205		)
Total	$	(193	)	$	(191	)

Summary of Income Tax Contingencies

The aggregate changes in the balances of our unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows:



	2019			2018			2017
	(in millions)
Gross Balance, beginning of year	$	234		$	146		$	51
Additions due to acquisition	9			—			22
Additions for tax positions related to the current year	18			100			31
Additions for tax positions from prior years	—			2			52
Reductions for tax positions from prior years	(32		)	(1		)	(9		)
Settlements with taxing authorities	—			(12		)	—
Statute of limitations expirations	(3		)	(1		)	(1		)
Gross Balance, end of year	$	226		$	234		$	146