INCOME TAXES (Tables)

12 Months Ended

Oct. 31, 2017

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income before taxes are:



	Year Ended October 31,
	2017			2016			2015
	(in millions)
U.S. operations	$	(147	)	$	(30	)	$	(6	)
Non-U.S. operations	326			396			394
Total income before taxes	$	179		$	366		$	388

Components Of Income Tax Expense Disclosure

The provision (benefit) for income taxes is comprised of:



	Year Ended October 31,
	2017			2016			2015
	(in millions)
U.S. federal taxes:
Current	$	21		$	(15	)	$	12
Deferred	(56		)	(13		)	(7		)
Non-U.S. taxes:
Current	101			32			24
Deferred	9			28			(158		)
State taxes, net of federal benefit:
Current	2			(1		)	1
Deferred	—			—			3
Total provision (benefit) for income taxes	$	77		$	31		$	(125	)

Income Tax Effects On Net Deferred Tax Assets Liabilities Disclosure

The significant components of deferred tax assets and deferred tax liabilities included in the consolidated balance sheet are:



	October 31,
	2017						2016
	Deferred Tax Assets			Deferred Tax Liabilities			Deferred Tax Assets			Deferred Tax Liabilities
	(in millions)
Inventory	$	16		$	(3	)	$	14		$	(1	)
Intangibles	55			(158		)	88			(15		)
Property, plant and equipment	16			(20		)	15			(13		)
Warranty reserves	17			(1		)	17			—
Pension benefits	90			(58		)	110			(3		)
Employee benefits, other than retirement	29			(1		)	25			—
Net operating loss, capital loss, and credit carryforwards	257			—			165			—
Unremitted earnings of foreign subsidiaries	—			(305		)	—			(38		)
Share-based compensation	26			—			23			—
Deferred revenue	24			(3		)	38			(1		)
Other	10			(10		)	10			(5		)
Subtotal	540			(559		)	505			(76		)
Tax valuation allowance	(63		)	—			(38		)	—
Total deferred tax assets or deferred tax liabilities	$	477		$	(559	)	$	467		$	(76	)

Current And Long Term Tax Assets And Current And Long Term Tax Liabilities Disclosure

Summary Of Income Tax Expense Reconciliation

The differences between the U.S. federal statutory income tax rate and our effective tax rate are:



	Year Ended October 31,
	2017			2016			2015
	(in millions)
Profit before tax times statutory rate	$	63		$	128		$	136
State income taxes, net of federal benefit	1			(1		)	3
Non-U.S. income taxed at different rates	(83		)	(88		)	(107		)
Singapore tax incentives through amortization	—			—			(219		)
Retroactive Singapore tax rate incentive impact	—			—			(15		)
Repatriation of foreign earnings	—			(45		)	—
Foreign earnings not considered indefinitely reinvested	3			39			33
Change in unrecognized tax benefits	23			1			33
U.S. research credits	(7		)	(5		)	(1		)
Share-based compensation adjustment for non-U.S. employees	6			4			4
Deemed repatriation of foreign earnings	5			3			3
Malaysia tax assessment	68			—			—
Other, net	(2		)	(5		)	5
Provision (benefit) for income taxes	$	77		$	31		$	(125	)
Effective tax rate	43		%	8		%	(32		)%

Current and Long Term Tax Assets and Liabilities

The breakdown between current and long-term income tax assets and liabilities, excluding deferred tax assets and liabilities, was as follows for the years 2017 and 2016:



	October 31,
	2017			2016
	(in millions)
Current income tax assets (included within other current assets)	$	40		$	29
Current income tax liabilities (included within income and other taxes payable)	(7		)	(19		)
Long-term income tax assets (included within other assets)	—			6
Long-term income tax liabilities (included within other long-term liabilities)	(39		)	(21		)
Total	$	(6	)	$	(5	)

Summary of Income Tax Contingencies

The aggregate changes in the balances of our unrecognized tax benefits including all federal, state and foreign tax jurisdictions are as follows:



	2017			2016			2015
	(in millions)
Balance, beginning of year	$	51		$	50		$	129
Reductions due to spin transaction	—			—			(113		)
Additions due to acquisition	22			—			2
Additions for tax positions related to the current year	31			5			34
Additions for tax positions from prior years	52			1			2
Reductions for tax positions from prior years	(9		)	(4		)	(4		)
Settlements with taxing authorities	—			—			—
Statute of limitations expirations	(1		)	(1		)	—
Balance, end of year	$	146		$	51		$	50