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INCOME TAXES (Tables) | 12 Months Ended
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Nov. 03, 2019
INCOME TAXES |
Tax Reform Measurement Period Adjustments and Effects on Results | The income tax expense (benefit) for the net deferred tax asset remeasurement and the repatriation tax adjustments in millions of dollars follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Equipment | ​ | Financial | ​ | ​ | ​
​ | ​ | Operations | ​ | Services | ​ | Total | ​
2019 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax asset remeasurement | ​ | $ | 1 | ​ | $ | 5 | ​ | $ | 6 | ​
Deemed earnings repatriation tax | ​ | ​ | (66) | ​ | ​ | (8) | ​ | ​ | (74) | ​
Total discrete tax expense (benefit) | ​ | $ | (65) | ​ | $ | (3) | ​ | $ | (68) | ​
2018 | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net deferred tax asset remeasurement |  | $ | 768 |  | $ | (354) |  | $ | 414 | ​
Deemed earnings repatriation tax | ​ | ​ | 277 | ​ | ​ | 13 | ​ |  | 290 | ​
Total discrete tax expense (benefit) | ​ | $ | 1,045 | ​ | $ | (341) | ​ | $ | 704 | ​
​
Provision for Income Taxes by Taxing Jurisdiction and by Significant Component | The provision for income taxes by taxing jurisdiction and by significant component consisted of the following in millions of dollars: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 |  | 2017 |
Current: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 545 | ​ | $ | (268) | ​ | $ | 360 | ​
State | ​ |  | 72 | ​ |  | 123 | ​ |  | 48 | ​
Foreign | ​ |  | 700 | ​ |  | 392 | ​ |  | 463 | ​
Total current | ​ |  | 1,317 | ​ |  | 247 | ​ |  | 871 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | (345) | ​ |  | 1,233 | ​ |  | 59 | ​
State | ​ |  | (26) | ​ |  | (40) | ​ |  | 7 | ​
Foreign | ​ |  | (94) | ​ |  | 287 | ​ |  | 34 | ​
Total deferred | ​ |  | (465) | ​ |  | 1,480 | ​ |  | 100 | ​
Provision for income taxes | ​ | $ | 852 | ​ | $ | 1,727 | ​ | $ | 971 | ​
​
Comparison of Statutory and Effective Income Tax Provision | A comparison of the statutory and effective income tax provision and reasons for related differences in millions of dollars follow: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 |  | 2017 |
U.S. federal income tax provision at the U.S. statutory rate (2019 - 21 percent, 2018 - 23.3 percent, 2017 - 35 percent) | ​ | $ | 859 | ​ | $ | 950 | ​ | $ | 1,104 | ​
Increase (decrease) resulting from: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
Net deferred tax asset remeasurement | ​ | ​ | 6 | ​ | ​ | 414 | ​ | ​ | ​ | ​
Deemed earnings repatriation tax | ​ | ​ | (74) | ​ | ​ | 290 | ​ | ​ | ​ | ​
Other effects of tax reform | ​ | ​ | (33) | ​ | ​ | 42 | ​ | ​ | ​ | ​
Differences in taxability of foreign earnings | ​ |  | (94) | ​ |  | (92) | ​ |  | (83) | ​
Valuation allowance on deferred taxes | ​ |  | 28 | ​ |  | 50 | ​ |  | 89 | ​
Research and business tax credits | ​ |  | (85) | ​ |  | (43) | ​ |  | (63) | ​
State and local income taxes, net of federal income tax benefit | ​ |  | 47 | ​ |  | 59 | ​ |  | 37 | ​
Excess tax benefits on equity compensation | ​ | ​ | (40) | ​ | ​ | (49) | ​ | ​ | (30) | ​
Tax rates on foreign earnings | ​ |  | 183 | ​ |  | 44 | ​ |  | (84) | ​
Unrecognized tax benefits | ​ | ​ | (28) | ​ | ​ | 30 | ​ | ​ | 9 | ​
Other—net | ​ |  | 83 | ​ |  | 32 | ​ |  | (8) | ​
Provision for income taxes | ​ | $ | 852 | ​ | $ | 1,727 | ​ | $ | 971 | ​
​
Analysis of the Deferred Income Tax Assets and Liabilities | Deferred income taxes arise because there are certain items that are treated differently for financial accounting than for income tax reporting purposes. An analysis of the deferred income tax assets and liabilities at November 3, 2019 and October 28, 2018 in millions of dollars follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2019 | ​ | 2018 | ​
​ | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​
​ | ​ | Tax | ​ | Tax | ​ | Tax | ​ | Tax | ​
​ |  | Assets |  | Liabilities |  | Assets |  | Liabilities |
OPEB liabilities | ​ | $ | 1,015 | ​ | ​ | ​ | ​ | $ | 984 | ​ | ​ | ​ | ​
Lease transactions | ​ | ​ | ​ | ​ | $ | 599 | ​ | ​ | ​ | ​ | $ | 850 | ​
Tax loss and tax credit carryforwards | ​ |  | 781 | ​ | ​ | ​ | ​ |  | 713 | ​ | ​ | ​ | ​
Accrual for sales allowances | ​ |  | 518 | ​ | ​ | ​ | ​ |  | 464 | ​ | ​ | ​ | ​
Tax over book depreciation | ​ | ​ | ​ | ​ | ​ | 339 | ​ | ​ | ​ | ​ | ​ | 357 | ​
Goodwill and other intangible assets | ​ | ​ | ​ | ​ |  | 378 | ​ | ​ | ​ | ​ |  | 458 | ​
Pension liability - net | ​ |  | 186 | ​ | ​ | ​ | ​ | ​ | 45 | ​ | ​ | ​ | ​
Allowance for credit losses | ​ |  | 70 | ​ | ​ | ​ | ​ |  | 115 | ​ | ​ | ​ | ​
Accrual for employee benefits | ​ |  | 207 | ​ | ​ | ​ | ​ |  | 72 | ​ | ​ | ​ | ​
Share-based compensation | ​ |  | 68 | ​ | ​ | ​ | ​ |  | 58 | ​ | ​ | ​ | ​
Deferred compensation | ​ |  | 39 | ​ | ​ | ​ | ​ |  | 35 | ​ | ​ | ​ | ​
Undistributed foreign earnings | ​ | ​ | ​ | ​ |  | ​ | ​ | ​ | ​ | ​ |  | 6 | ​
Foreign unrealized losses | ​ | ​ | 8 | ​ | ​ | ​ | ​ | ​ | 10 | ​ | ​ | ​ | ​
Other items | ​ |  | 367 | ​ |  | 311 | ​ |  | 346 | ​ |  | 261 | ​
Less valuation allowances | ​ |  | (661) | ​ | ​ | ​ | ​ |  | (658) | ​ | ​ | ​ | ​
Deferred income tax assets and liabilities | ​ | $ | 2,598 | ​ | $ | 1,627 | ​ | $ | 2,184 | ​ | $ | 1,932 | ​
​
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits at November 3, 2019, October 28, 2018, and October 29, 2017 in millions of dollars follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2019 |  | 2018 |  | 2017 |
Beginning of year balance | ​ | $ | 279 | ​ | $ | 221 | ​ | $ | 198 | ​
Increases to tax positions taken during the current year | ​ |  | 30 | ​ |  | 36 | ​ |  | 35 | ​
Increases to tax positions taken during prior years | ​ |  | 357 | ​ |  | 62 | ​ |  | 13 | ​
Decreases to tax positions taken during prior years | ​ |  | (30) | ​ |  | (39) | ​ |  | (17) | ​
Decreases due to lapse of statute of limitations | ​ |  | (6) | ​ |  | (15) | ​ |  | (11) | ​
Acquisitions* | ​ | ​ | ​ | ​ | ​ | 31 | ​ | ​ | ​ | ​
Settlements | ​ |  | (75) | ​ |  | (5) | ​ |  | (1) | ​
Foreign exchange | ​ |  | (2) | ​ |  | (12) | ​ |  | 4 | ​
End of year balance | ​ | $ | 553 | ​ | $ | 279 | ​ | $ | 221 | ​
* See Note 4. ​

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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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- 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 http://asc.fasb.org/extlink&oid=84230637&loc=d3e32687-109319 + Details
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