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INCOME TAXES (Tables) | 12 Months Ended
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Oct. 31, 2021
INCOME TAXES |
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: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019 |
Current: | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ | $ | 899 | ​ | $ | 400 | ​ | $ | 545 | ​
State | ​ |  | 183 | ​ |  | 53 | ​ |  | 72 | ​
Foreign | ​ |  | 1,017 | ​ |  | 640 | ​ |  | 700 | ​
Total current | ​ |  | 2,099 | ​ |  | 1,093 | ​ |  | 1,317 | ​
Deferred: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S.: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Federal | ​ |  | (303) | ​ |  | (68) | ​ |  | (345) | ​
State | ​ |  | (45) | ​ |  | 9 | ​ |  | (26) | ​
Foreign | ​ |  | (93) | ​ |  | 48 | ​ |  | (94) | ​
Total deferred | ​ |  | (441) | ​ |  | (11) | ​ |  | (465) | ​
Provision for income taxes | ​ | $ | 1,658 | ​ | $ | 1,082 | ​ | $ | 852 | ​
​
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: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019 |
U.S. federal income tax provision at the U.S. statutory rate (21 percent) | ​ | $ | 1,597 | ​ | $ | 815 | ​ | $ | 859 | ​
State and local taxes, net of federal effect | ​ | ​ | 119 | ​ | ​ | 59 | ​ | ​ | 47 | ​
Other Impacts of Tax Cuts and Jobs Act of 2017 | ​ | ​ | (85) | ​ | ​ | 39 | ​ | ​ | (101) | ​
Rate differential on foreign subsidiaries | ​ |  | 148 | ​ |  | 106 | ​ |  | 89 | ​
Research and business tax credits | ​ |  | (48) | ​ |  | (50) | ​ |  | (85) | ​
Excess tax benefits on equity compensation | ​ | ​ | (79) | ​ | ​ | (87) | ​ | ​ | (40) | ​
Valuation allowances | ​ |  | 18 | ​ |  | 139 | ​ |  | 28 | ​
Other - net | ​ |  | (12) | ​ | ​ | 61 | ​ | ​ | 55 | ​
Provision for income taxes | ​ | $ | 1,658 | ​ | $ | 1,082 | ​ | $ | 852 | ​
​
Analysis of the Deferred Income Tax Assets and Liabilities | An analysis of the deferred income tax assets and liabilities at October 31, 2021 and November 1, 2020 in millions of dollars follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | 2021 | ​ | 2020 | ​
​ | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​ | Deferred | ​
​ | ​ | Tax | ​ | Tax | ​ | Tax | ​ | Tax | ​
​ |  | Assets |  | Liabilities |  | Assets |  | Liabilities |
OPEB liabilities | ​ | $ | 676 | ​ | ​ | ​ | ​ | $ | 804 | ​ | ​ | ​ | ​
Lessor lease transactions | ​ | ​ | ​ | ​ | $ | 399 | ​ | ​ | ​ | ​ | $ | 489 | ​
Tax loss and tax credit carryforwards | ​ |  | 1,542 | ​ | ​ | ​ | ​ |  | 937 | ​ | ​ | ​ | ​
Accrual for sales allowances | ​ |  | 466 | ​ | ​ | ​ | ​ |  | 362 | ​ | ​ | ​ | ​
Tax over book depreciation | ​ | ​ | ​ | ​ | ​ | 154 | ​ | ​ | ​ | ​ | ​ | 196 | ​
Goodwill and other intangible assets | ​ | ​ | ​ | ​ |  | 337 | ​ | ​ | ​ | ​ |  | 368 | ​
Pension - net | ​ |  | ​ | ​ | ​ | 448 | ​ |  | 316 | ​ | ​ | ​ | ​
Allowance for credit losses | ​ |  | 78 | ​ | ​ | ​ | ​ |  | 81 | ​ | ​ | ​ | ​
Accrual for employee benefits | ​ |  | 298 | ​ | ​ | ​ | ​ |  | 249 | ​ | ​ | ​ | ​
Share-based compensation | ​ |  | 53 | ​ | ​ | ​ | ​ |  | 41 | ​ | ​ | ​ | ​
Deferred compensation | ​ |  | 49 | ​ | ​ | ​ | ​ |  | 40 | ​ | ​ | ​ | ​
Lessee lease transactions | ​ | ​ | 46 | ​ | ​ | 43 | ​ | ​ | 56 | ​ | ​ | 56 | ​
Unearned revenue | ​ | ​ | 172 | ​ |  | ​ | ​ | ​ | 22 | ​ |  | ​ | ​
Other items | ​ |  | 333 | ​ |  | 341 | ​ |  | 344 | ​ |  | 305 | ​
Less valuation allowances | ​ |  | (1,530) | ​ | ​ | ​ | ​ |  | (858) | ​ | ​ | ​ | ​
Deferred income tax assets and liabilities | ​ | $ | 2,183 | ​ | $ | 1,722 | ​ | $ | 2,394 | ​ | $ | 1,414 | ​
​
Reconciliation of Unrecognized Tax Benefits | A reconciliation of the total amounts of unrecognized tax benefits at October 31, 2021, November 1, 2020, and November 3, 2019 in millions of dollars follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | 2021 |  | 2020 |  | 2019 |
Beginning of year balance | ​ | $ | 668 | ​ | $ | 553 | ​ | $ | 279 | ​
Increases to tax positions taken during the current year | ​ |  | 81 | ​ |  | 63 | ​ |  | 30 | ​
Increases to tax positions taken during prior years | ​ |  | 100 | ​ |  | 95 | ​ |  | 357 | ​
Decreases to tax positions taken during prior years | ​ |  | (23) | ​ |  | (30) | ​ |  | (30) | ​
Decreases due to lapse of statute of limitations | ​ |  | (12) | ​ |  | (9) | ​ |  | (6) | ​
Settlements | ​ |  | (3) | ​ |  | (1) | ​ |  | (75) | ​
Foreign exchange | ​ |  | ​ | ​ |  | (3) | ​ |  | (2) | ​
End of year balance | ​ | $ | 811 | ​ | $ | 668 | ​ | $ | 553 | ​
​

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