XML 50 R37.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Income Taxes (Tables) | 12 Months Ended
--- | ---
Oct. 30, 2022
Income Tax Disclosure [Abstract] |
Schedule of Income before Income Tax, Domestic and Foreign |
|  | Fiscal Year
|  | 2022 |  | 2021 |  | 2020
|  | (In millions)
Domestic loss |  | $ | (2,020) |  |  | $ | (3,103) |  |  | $ | (4,221) |
Foreign income |  | 14,454 |  |  | 9,868 |  |  | 6,664 |
Income from continuing operations before income taxes |  | $ | 12,434 |  |  | $ | 6,765 |  |  | $ | 2,443 |
Schedule of Components of Income Tax Expense (Benefit) | The components of the provision for and benefit from income taxes were as follows:
|  | Fiscal Year
|  | 2022 |  | 2021 |  | 2020
|  | (In millions)
Current tax expense: |  |  |  |  |  |
Federal |  | $ | 174 |  |  | $ | 446 |  |  | $ | 7 |
State |  | 48 |  |  | 46 |  |  | 51 |
Foreign |  | 762 |  |  | 534 |  |  | 506 |
Total |  | 984 |  |  | 1,026 |  |  | 564 |
Deferred tax expense (benefit from): |  |  |  |  |  |
Federal |  | 68 |  |  | (876) |  |  | (627) |
State |  | (15) |  |  | (114) |  |  | (161) |
Foreign |  | (98) |  |  | (7) |  |  | (294) |
Total |  | (45) |  |  | (997) |  |  | (1,082) |
Total provision for (benefit from) income taxes |  | $ | 939 |  |  | $ | 29 |  |  | $ | (518) |
Schedule of Effective Income Tax Rate Reconciliation | The following is a reconciliation of our effective tax rate to the statutory federal tax rate:
|  | Fiscal Year
|  | 2022 |  | 2021 |  | 2020
Statutory tax rate |  | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State, net of federal benefit |  | 0.2 |  |  | (0.8) |  |  | (3.6) |
Foreign income taxed at different rates |  | (19.1) |  |  | (22.8) |  |  | (48.6) |
Deemed inclusion of foreign earnings |  | 9.4 |  |  | 12.7 |  |  | 23.3 |
Foreign-derived intangible income deduction |  | — |  |  | (3.1) |  |  | (1.5) |
Deferred taxes on unremitted foreign earnings |  | 0.1 |  |  | (0.7) |  |  | (1.1) |
Excess tax benefits from stock-based compensation |  | (3.0) |  |  | (4.6) |  |  | (6.0) |
Research and development credit |  | (1.4) |  |  | (2.3) |  |  | (4.3) |
Other, net |  | 0.3 |  |  | 1.0 |  |  | (0.4) |
Effective tax rate on income before income taxes |  | 7.5 | % |  | 0.4 | % |  | (21.2) | %
The increase in provision for income taxes in fiscal year 2022 compared to fiscal year 2021 was primarily due to higher income from continuing operations. The provision for income taxes in fiscal year 2021 compared to the benefit from income taxes in fiscal year 2020 was primarily due to higher income from continuing operations, offset in part by higher excess tax benefits from stock-based awards. The benefit from income taxes in fiscal year 2020 was primarily due to jurisdictional mix of income and expenses, discrete benefits from the remeasurement of certain deferred tax assets and liabilities in a foreign jurisdiction, and excess tax benefits from stock-based awards. Our tax incentives from the Singapore Economic Development Board provide that any qualifying income earned in Singapore is subject to tax incentives or reduced rates of Singapore income tax, subject to our compliance with the conditions specified in these incentives and legislative developments. These Singapore tax incentives are expected to expire in November 2025. We have also obtained a tax holiday on our qualifying income in Malaysia, which is scheduled to expire in fiscal year 2028. The tax holiday that we negotiated in Malaysia is also subject to our compliance with various operating and other conditions. If we cannot, or elect not to, comply with any such conditions specified, we will lose the related tax benefits and we could be required to refund previously realized material tax benefits. Before taking into consideration the effects of the U.S. Tax Cuts and Jobs Act and other indirect tax impacts, the effect of these tax incentives and tax holiday was to decrease the provision for income taxes by approximately $1,821 million and $1,156 million for fiscal years 2022 and 2021, respectively, and increase the benefit from income taxes by approximately $833 million for fiscal year 2020.
Schedule of Deferred Tax Assets and Liabilities |
|  | October 30, 2022 |  | October 31, 2021
|  | (In millions)
Deferred income tax assets: |  |  |  |
Net operating loss, credit and other carryforwards |  | $ | 1,808 |  |  | $ | 1,774 |
Deferred revenue |  | 645 |  |  | 1,332 |
Employee stock awards |  | 183 |  |  | 192 |
Other deferred income tax assets |  | 499 |  |  | 446 |
Gross deferred income tax assets |  | 3,135 |  |  | 3,744 |
Less: valuation allowance |  | (1,777) |  |  | (1,782) |
Deferred income tax assets |  | 1,358 |  |  | 1,962 |
Deferred income tax liabilities: |  |  |  |
Depreciation and amortization |  | 341 |  |  | 847 |
Unamortized discount and issuance costs |  | 322 |  |  | 374 |
Foreign earnings not indefinitely reinvested |  | 86 |  |  | 73 |
Other deferred income tax liabilities |  | 36 |  |  | — |
Deferred income tax liabilities |  | 785 |  |  | 1,294 |
Net deferred income tax assets |  | $ | 573 |  |  | $ | 668 |
Summary of Positions for which Significant Change in Unrecognized Tax Benefits is Reasonably Possible | The following table reconciles the beginning and ending balance of gross unrecognized tax benefits:
|  | Fiscal Year
|  | 2022 |  | 2021 |  | 2020
|  | (In millions)
Beginning balance |  | $ | 5,030 |  |  | $ | 4,748 |  |  | $ | 4,422 |
Lapses of statutes of limitations |  | (50) |  |  | (58) |  |  | (95) |
Increases in balances related to tax positions taken during prior periods (including those related to acquisitions made during the year) |  | — |  |  | 41 |  |  | 98 |
Decreases in balances related to tax positions taken during prior periods |  | (113) |  |  | — |  |  | (14) |
Increases in balances related to tax positions taken during current period |  | 288 |  |  | 337 |  |  | 379 |
Decreases in balances related to settlements with taxing authorities |  | (38) |  |  | (38) |  |  | (42) |
Ending balance |  | $ | 5,117 |  |  | $ | 5,030 |  |  | $ | 4,748 |
We recognize interest and penalties related to unrecognized tax benefits within the provision for (benefit from) income taxes. Accrued interest and penalties were included within other long-term liabilities. During fiscal years 2022 and 2021, we recognized interest and penalties of $25 million and $46 million, respectively, within the provision for income taxes. During fiscal year 2020, we recognized interest and penalties of $37 million within the benefit from income taxes. As of October 30, 2022 and October 31, 2021, the combined amount of cumulative accrued interest and penalties was approximately $411 million and $386 million, respectively. As of October 30, 2022 and October 31, 2021, approximately $5,528 million and $5,416 million, respectively, of the unrecognized tax benefits and accrued interest and penalties would, if recognized, benefit our effective income tax rate. We are subject to U.S. income tax examination for fiscal years 2015 and later. Certain of our acquired companies are subject to tax examinations in major jurisdictions outside of the U.S. for fiscal years 2008 and later. It is possible that our existing unrecognized tax benefits may change up to $163 million as a result of lapses of the statute of limitations for certain audit periods and/or audit examinations expected to be completed within the next 12 months.

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32639-109319 + Details
Name: | us-gaap_ScheduleOfComponentsOfIncomeTaxExpenseBenefitTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32537-109319 + Details
Name: | us-gaap_ScheduleOfDeferredTaxAssetsAndLiabilitiesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 12 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32687-109319 + Details
Name: | us-gaap_ScheduleOfEffectiveIncomeTaxRateReconciliationTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of income before income tax between domestic and foreign jurisdictions. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(1)(Note 1)) -URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 + Details
Name: | us-gaap_ScheduleOfIncomeBeforeIncomeTaxDomesticAndForeignTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of unrecognized tax benefits for which a material change is reasonably possible in the next twelve months, typically including the nature of the uncertainty, the event(s) that could cause a material change, and an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made. An unrecognized tax benefit is the difference between a tax position taken in a tax return and the amounts recognized in the financial statements for which it is more likely than not, based on the technical merits of the position, that the tax position will not be sustained upon examination. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 + Details
Name: | us-gaap_SummaryOfPositionsForWhichSignificantChangeInUnrecognizedTaxBenefitsIsReasonablyPossibleTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration