INCOME TAXES	6 Months Ended
May 03, 2020
INCOME TAXES
INCOME TAXES	(9) Income Taxes The lower effective tax rate in the first six months of 2020 primarily resulted from two discrete items. In January 2020, the Company changed the corporate structure of two foreign holding subsidiaries to be indirect branches of Deere & Company. The change in tax status generated a capital loss that will be carried back in the Company’s U.S. income tax return resulting in a $43 million benefit. In addition, a discrete benefit of $28 million was recognized for the excess tax benefits related to vesting or exercise of share-based compensation awards. The Company’s unrecognized tax benefits at May 3, 2020, November 3, 2019, and April 28, 2019 were $610 million, $553 million, and $285 million. The liability at May 3, 2020, November 3, 2019, and April 28, 2019 consisted of approximately $145 million, $153 million, and $133 million, respectively, which would affect the effective tax rate if the tax benefits were recognized. The increase from the prior year primarily relates to the interpretation of a repatriation tax regulation for fiscal year end companies. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. The Company expects that any reasonably possible change in the amounts of unrecognized tax benefits in the next 12 months would not be significant.

INCOME TAXES

6 Months Ended

May 03, 2020

(9) Income Taxes

The lower effective tax rate in the first six months of 2020 primarily resulted from two discrete items. In January 2020, the Company changed the corporate structure of two foreign holding subsidiaries to be indirect branches of Deere & Company. The change in tax status generated a capital loss that will be carried back in the Company’s U.S. income tax return resulting in a $43 million benefit. In addition, a discrete benefit of $28 million was recognized for the excess tax benefits related to vesting or exercise of share-based compensation awards.

The Company’s unrecognized tax benefits at May 3, 2020, November 3, 2019, and April 28, 2019 were $610 million, $553 million, and $285 million. The liability at May 3, 2020, November 3, 2019, and April 28, 2019 consisted of approximately $145 million, $153 million, and $133 million, respectively, which would affect the effective tax rate if the tax benefits were recognized. The increase from the prior year primarily relates to the interpretation of a repatriation tax regulation for fiscal year end companies. The remaining liability was related to tax positions for which there are offsetting tax receivables, or the uncertainty was only related to timing. The Company expects that any reasonably possible change in the amounts of unrecognized tax benefits in the next 12 months would not be significant.