INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2020

Schedule of Income before Income Tax, Domestic and Foreign

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



	Year Ended October 31,
	2020		2019		2018
	(in millions)
U.S. operations	$	68	$	20	$	(532	)
Non-U.S. operations	693		695		121
Total income (loss) before taxes	$	761	$	715	$	(411	)

Components Of Income Tax Expense Disclosure

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



	Year Ended October 31,
	2020		2019			2018
	(in millions)
U.S. federal taxes:
Current	$	16	$	10		$	131
Deferred	1		(8		)	46
Non-U.S. taxes:
Current	77		91			75
Deferred	36		14			(832		)
State taxes, net of federal benefit:
Current	—		(5		)	7
Deferred	4		(8		)	(3		)
Total provision (benefit) for income taxes	$	134	$	94		$	(576	)

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,
	2020						2019
	Deferred Tax Assets			Deferred Tax Liabilities			Deferred Tax Assets			Deferred Tax Liabilities
	(in millions)
Inventory	$	10		$	—		$	10		$	(2	)
Intangibles	597			(38		)	630			(38		)
Property, plant and equipment	21			(31		)	17			(24		)
Warranty reserves	8			(1		)	9			(1		)
Pension benefits	90			(84		)	86			(76		)
Employee benefits, other than retirement	28			(1		)	29			(1		)
Net operating loss, capital loss, and credit carryforwards	286			—			283			—
Unremitted earnings of foreign subsidiaries	—			(37		)	—			(12		)
Share-based compensation	16			—			15			—
Deferred revenue	32			(3		)	25			(5		)
Other	10			(11		)	14			(12		)
Subtotal	1,098			(206		)	1,118			(171		)
Tax valuation allowance	(238		)	—			(240		)	—
Total deferred tax assets or deferred tax liabilities	$	860		$	(206	)	$	878		$	(171	)

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,
	2020			2019			2018
	(in millions)
Profit(loss) before tax times statutory rate	$	160		$	150		$	(96	)
State income taxes, net of federal benefit	4			(6		)	2
Current U.S. tax on foreign earnings	39			48			210
Deferred taxes on foreign earnings not considered indefinitely reinvested	8			2			(300		)
U.S. benefit on foreign sales	(8		)	(13		)	—
U.S. research credits	(14		)	(12		)	(10		)
Non-U.S. income taxed at different rates	(64		)	(70		)	16
Change in unrecognized tax benefits	8			(12		)	86
Share-based compensation	(7		)	(5		)	(2		)
Officers’ compensation	5			4			2
Singapore tax incentive and amortization	—			—			(591		)
Goodwill impairment	—			—			99
U.S. federal statutory tax rate change	—			—			10
Other, net	3			8			(2		)
Provision (benefit) for income taxes	$	134		$	94		$	(576	)
Effective tax rate	18		%	13		%	140		%

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 2020 and 2019:



	October 31,
	2020			2019
	(in millions)
Current income tax assets (included within other current assets)	$	53		$	40
Current income tax liabilities (included within income and other taxes payable)	(40		)	(35		)
Long-term income tax assets (included within other assets)	—			—
Long-term income tax liabilities (included within other long-term liabilities)	(212		)	(198		)
Total	$	(199	)	$	(193	)

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:



	2020			2019			2018
	(in millions)
Gross Balance, beginning of year	$	226		$	234		$	146
Additions due to acquisition	—			9			—
Additions for tax positions related to the current year	13			18			100
Additions for tax positions from prior years	2			—			2
Reductions for tax positions from prior years	(1		)	(32		)	(1		)
Settlements with taxing authorities	—			—			(12		)
Statute of limitations expirations	(3		)	(3		)	(1		)
Gross Balance, end of year	$	237		$	226		$	234