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Income Taxes | 12 Months Ended
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Nov. 01, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Income Taxes The Company’s effective tax rate reflects the applicable tax rate in effect in the various tax jurisdictions around the world where the Company’s income is earned. The reconciliation of income tax computed at the U.S. federal statutory rates to income tax expense for fiscal 2025, fiscal 2024 and fiscal 2023 is as follows:
| 2025 |  | 2024 |  | 2023
U.S. federal statutory tax rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Income tax provision reconciliation: |  |  |  |  |
Tax at statutory rate | $ | 569,544 |  |  | $ | 373,241 |  |  | $ | 757,681 |
Net foreign income subject to lower tax rate | (391,616) |  |  | (219,294) |  |  | (358,944) |
State income taxes, net of federal benefit | 79,000 |  |  | (10,646) |  |  | 4,453 |
Valuation allowance | (79,204) |  |  | 10,615 |  |  | (6,641) |
Federal research and development tax credits | (36,014) |  |  | (53,420) |  |  | (65,391) |
Change in uncertain tax positions | 14,179 |  |  | (19,514) |  |  | 17,985 |
Amortization of purchased intangibles | 106,611 |  |  | 114,679 |  |  | 142,358 |
Taxes attributable to the Tax Cuts and Jobs Act of 2017 | (4,101) |  |  | (3,977) |  |  | (81,695) |
Taxes attributable to the One Big Beautiful Bill Act | 153,763 |  |  | — |  |  | — |
U.S. effects of international operations | 51,314 |  |  | (6,300) |  |  | (98,286) |
Windfalls (under ASU 2016-09) | (18,304) |  |  | (22,985) |  |  | (24,211) |
Other, net | (402) |  |  | (20,332) |  |  | 6,115 |
Total income tax provision | $ | 444,770 |  |  | $ | 142,067 |  |  | $ | 293,424 |
Income before income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 includes the following components:
Income before income taxes (1) | 2025 |  | 2024 |  | 2023
Domestic | $ | 520,188 |  |  | $ | 517,555 |  |  | $ | 846,592 |
Foreign | 2,191,924 |  |  | 1,259,785 |  |  | 2,761,411 |
Income before income taxes | $ | 2,712,112 |  |  | $ | 1,777,340 |  |  | $ | 3,608,003 |
_______________________________________ (1)Income before income taxes reflects deemed intercompany royalties in all periods presented. The components of the provision for income taxes for fiscal 2025, fiscal 2024 and fiscal 2023 are as follows:
| 2025 |  | 2024 |  | 2023
Current: |  |  |  |  |
Federal tax | $ | 492,570 |  |  | $ | 348,144 |  |  | $ | 303,146 |
State | 14,175 |  |  | 14,399 |  |  | 11,772 |
Foreign | 184,670 |  |  | 147,087 |  |  | 431,452 |
Total current | $ | 691,415 |  |  | $ | 509,630 |  |  | $ | 746,370 |
Deferred: |  |  |  |  |
Federal | $ | (455,194) |  |  | $ | (492,578) |  |  | $ | (508,741) |
State | (7,018) |  |  | 3,579 |  |  | 2,063 |
Foreign | 215,567 |  |  | 121,436 |  |  | 53,732 |
Total deferred | $ | (246,645) |  |  | $ | (367,563) |  |  | $ | (452,946) |
Provision for income taxes | $ | 444,770 |  |  | $ | 142,067 |  |  | $ | 293,424 |
The Company accounts for global intangible low-taxed income (GILTI) under the deferred method. In fiscal 2025, the One Big Beautiful Bill Act (OBBBA) was enacted, which revised the applicable GILTI tax rate for the Company’s fiscal years beginning in 2027. As a result, in fiscal 2025, the Company recorded a net deferred tax expense of $153.8 million related to the remeasurement of its GILTI-related deferred tax assets and liabilities. The Company’s effective tax rate for fiscal 2023 was impacted by a discrete income tax benefit recorded of $81.7 million resulting from the approval granted by the Joint Committee on Taxation of its federal corporate income tax relief claim which reduced the amount of transition tax owed under the Tax Cuts and Jobs Act. The Company carries other outside basis differences in its subsidiaries, primarily arising from acquisition accounting adjustments and certain undistributed earnings that are considered indefinitely reinvested. As of November 1, 2025, the Company has not recognized deferred income tax on $33.6 billion of outside basis differences because of its intent and ability to indefinitely reinvest these basis differences. These basis differences could be reversed through a sale of the subsidiaries or the receipt of dividends from the subsidiaries, as well as various other events, none of which are considered probable at this time. Determination of the amount of unrecognized deferred income tax liability related to these outside basis differences is not practicable. The significant components of the Company’s deferred tax assets and liabilities for fiscal 2025 and fiscal 2024 are as follows:
| 2025 |  | 2024
Deferred tax assets: |  |  |
Inventory reserves | $ | 35,338 |  |  | $ | 29,139 |
Reserves for compensation and benefits | 56,983 |  |  | 48,801 |
Tax credit carryovers | 241,678 |  |  | 318,469 |
Stock-based compensation | 23,812 |  |  | 22,290 |
Net operating losses | 33,461 |  |  | 41,340 |
Intangible assets | 1,684,244 |  |  | 1,871,218 |
Lease liability | 71,335 |  |  | 74,715 |
Capitalization of R&D expenses (1) | 804,017 |  |  | 624,682 |
Other | 68,118 |  |  | 71,049 |
Total gross deferred tax assets | 3,018,986 |  |  | 3,101,703 |
Valuation allowance | (263,875) |  |  | (343,079) |
Total deferred tax assets | 2,755,111 |  |  | 2,758,624 |
Deferred tax liabilities: |  |  |
Depreciation | (142,031) |  |  | (139,556) |
Deferred GILTI tax liabilities (2) | (2,272,775) |  |  | (2,442,068) |
Right of use asset | (50,965) |  |  | (53,303) |
Acquisition-related intangibles | (585,519) |  |  | (664,337) |
Total gross deferred tax liabilities | (3,051,290) |  |  | (3,299,264) |
Net deferred tax liabilities | $ | (296,179) |  |  | $ | (540,640) |
_______________________________________________ (1) The Company included the effects of the mandatory capitalization and amortization of research and development expenses which began in fiscal 2023 under the Tax Cuts and Jobs Act. (2) The Company’s effective tax rate for fiscal 2025 was impacted by a net deferred tax expense of $153.8 million recorded in fiscal 2025 related to the remeasurement of our GILTI-related deferred tax assets and liabilities attributable to the passage of the OBBBA. The valuation allowances of $263.9 million and $343.1 million as of November 1, 2025 and November 2, 2024, respectively, are primarily for the Company’s state R&D credit carryforwards, foreign net operating losses and international credit carryforwards. The Company believes that it is more-likely-than-not that these credit carryovers will not be realized and as a result has recorded a partial valuation allowance. The federal and state net operating losses of $21.0 million will begin to expire in fiscal 2027 while foreign net operating loss carryovers of $131.8 million have no expiration date. There are also $227.4 million of federal and state credit carryovers and $14.3 million of foreign investment tax credit carryovers that begin to expire in the fiscal year ending October 31, 2026. As of November 1, 2025 and November 2, 2024, the Company had unrealized tax benefits, net of indirect tax benefits, of $166.2 million and $162.7 million, respectively, which if settled in the Company’s favor, would lower the Company’s effective tax rate in the period recorded. Liabilities for unrealized tax benefits are primarily classified as non-current because the Company believes that the ultimate payment or settlement of these liabilities will not occur within the next twelve months. As of November 1, 2025 and November 2, 2024, the Company had liabilities of approximately $87.8 million and $73.7 million, respectively, for interest and penalties, which is included within the provision for income taxes in the Consolidated Statements of Income. The following table summarizes the changes in the total amounts of unrealized tax benefits for fiscal 2023 through fiscal 2025:
| Unrealized Tax Benefits
Balance, October 29, 2022 | $ | 165,327 |
Additions for tax positions related to current year | 5,895 |
Additions for tax positions related to prior years | 17,096 |
Reductions due to lapse of applicable statute of limitations | (903) |
Balance, October 28, 2023 | $ | 187,415 |
Additions for tax positions related to current year | 5,793 |
Reductions for tax positions related to prior years | (27,499) |
Reductions due to lapse of applicable statute of limitations | (3,013) |
Balance, November 2, 2024 | $ | 162,696 |
Additions for tax positions related to current year | 5,603 |
Additions for tax positions related to prior years | 38 |
Reductions due to lapse of applicable statute of limitations | (2,139) |
Balance, November 1, 2025 | $ | 166,198 |
In fiscal 2025, the Company continued to engage in discussions with tax authorities regarding tax matters in various jurisdictions. It is reasonably possible that the balance of unrealized tax benefits, including accrued interest and penalties, could decrease by up to $150.0 million within the next twelve months due to the completion of federal tax audits, including any administrative appeals. The $150.0 million primarily relates to matters involving federal taxation of international income and cross-border transactions. The Company has numerous audits ongoing throughout the world including: an IRS income tax audit for the fiscal years ended October 30, 2021 (fiscal 2021), November 2, 2019 (fiscal 2019) and November 3, 2018 (fiscal 2018); an IRS income tax audit for Maxim’s fiscal years ended June 27, 2015 through August 26, 2021; and various U.S. state and local audits and international audits, including Irish corporate tax audits for fiscal 2021. The Company’s U.S. federal income tax returns prior to fiscal 2018 are no longer subject to examination, except for the applicable Maxim fiscal years noted above. During fiscal 2025, the Company received an assessment from the U.S. Internal Revenue Service (IRS) for fiscal 2018 and fiscal 2019, totaling approximately $267.0 million, excluding penalties and interest. The assessment pertains to transfer pricing arrangements between the Company and one of its wholly-owned foreign subsidiaries. The Company firmly disagrees with this assessment and maintains that its transfer pricing is appropriate. Consequently, the Company has not recorded any additional tax liability related to fiscal 2018 and fiscal 2019 in relation to this issue, nor to any other periods. The Company intends to vigorously defend its original tax return position and is currently preparing for an appeal with the IRS. Should the IRS ultimately prevail regarding its assessments for fiscal 2018 and fiscal 2019, such a resolution, along with any potential impact on subsequent fiscal years, could have a material adverse effect on the Company’s income tax expense and net earnings in future periods.

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