INCOME TAXES (Tables)

12 Months Ended

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