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Income Taxes (Tables)

12 Months Ended

Oct. 31, 2016

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Total Income Before Provision for Income Tax

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2016				2015				2014
	(in thousands)
United States	$	22,134			$	42,571			$	(7,638	)
Foreign	307,414				239,039				279,780
Total income (loss) before provision for income taxes	$	329,548			$	281,610			$	272,142

Components of (Benefit) Provision for Income Taxes

The components of the (benefit) provision for income taxes were as follows:

	Year Ended October 31,
	2016				2015				2014
	(in thousands)
Current:
Federal	$	(6,106	)		$	(21,911	)		$	(14,951	)
State	2,670				1,385				279
Foreign	80,195				39,319				42,085
	76,759				18,793				27,413
Deferred:
Federal	(23,510		)		44,462				(4,612		)
State	11,950				(2,282		)		(4,141		)
Foreign	(2,477		)		(5,297		)		(5,642		)
	(14,037		)		36,883				(14,395		)
Provision (benefit) for income taxes	$	62,722			$	55,676			$	13,018

Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:

	Year Ended October 31,
	2016				2015				2014
	(in thousands)
Statutory federal tax	$	115,343			$	98,564			$	95,251
State tax (benefit), net of federal effect (1)	11,015				(4,764		)		(4,306		)
Tax credits (2)	(36,979		)		(13,301		)		(5,153		)
Tax on foreign earnings less than U.S. statutory tax	(68,246		)		(56,536		)		(61,376		)
Tax settlements	(16,479		)		(6,251		)		(19,645		)
Stock based compensation	5,709				5,406				5,675
Changes in valuation allowance	428				(216		)		(235		)
Federal statute lapses	—				(2,265		)		(6,746		)
Integration of acquired technologies	37,525				33,015				4,715
Undistributed earnings of foreign subsidiaries	9,595				—				—
Other	4,811				2,024				4,838
Provision (benefit) for income taxes	$	62,722			$	55,676			$	13,018

(1) State tax (benefit), net of federal effect, includes changes in valuation allowance of $25.1 million, $2.4 million and $1.9 million for fiscal years 2016, 2015 and 2014, respectively.

(2) Tax credits include benefits from the retroactive reinstatement of the U.S. federal research tax credit.

Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were as follows:

	October 31,
	2016				2015
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	34,324			$	40,373
Deferred revenue	42,497				36,460
Deferred compensation	64,321				69,716
Capitalized costs	54,123				60,998
Capitalized research and development costs	18,896				24,748
Stock compensation	22,298				18,001
Tax loss carryovers	31,748				50,987
Foreign tax credit carryovers	10,369				1,064
Research and other tax credit carryovers	136,690				80,327
Other	5,161				5,340
Gross deferred tax assets	420,427				388,014
Valuation allowance	(73,909		)		(48,700		)
Total deferred tax assets	346,518				339,314
Deferred tax liabilities:
Intangible assets	54,604				66,345
Undistributed earnings of foreign subsidiaries	10,888				933
Total deferred tax liabilities	65,492				67,278
Net deferred tax assets	$	281,026			$	272,036

Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount				Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	73,226			2018-2034
Federal research credit carryforward	172,959				2019-2036
Federal foreign tax credit carryforward	2,946				2019-2022
International foreign tax credit carryforward	9,445				Indefinite
California research credit carryforward	160,442				Indefinite
Other state research credit carryforward	7,145				2017-2031
State net operating loss carryforward	36,735				2017-2036

Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit

A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2016				As of October 31, 2015
	(in thousands)
Beginning balance	$	132,054			$	124,102
Increases in unrecognized tax benefits related to prior year tax positions	7,205				10,922
Decreases in unrecognized tax benefits related to prior year tax positions	(43,944		)		(7,526		)
Increases in unrecognized tax benefits related to current year tax positions	13,880				13,232
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(333		)		—
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(2,659		)		(5,996		)
Increases in unrecognized tax benefits acquired	49				976
Changes in unrecognized tax benefits due to foreign currency translation	290				(3,656		)
Ending balance	$	106,542			$	132,054

Subsidiaries Remain Subject to Tax Examination

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States	Fiscal 2016
California	Fiscal years after 2011
Hungary and Ireland	Fiscal years after 2009
Japan and Taiwan	Fiscal years after 2010

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