INCOME TAXES (Tables)

12 Months Ended

Oct. 30, 2022

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:

	2022		2021		2020
Current:
U.S.:
Federal	$	514	$	899	$	400
State		136		183		53
Foreign		1,423		1,017		640
Total current		2,073		2,099		1,093
Deferred:
U.S.:
Federal		29		(303)		(68)
State		24		(45)		9
Foreign		(119)		(93)		48
Total deferred		(66)		(441)		(11)
Provision for income taxes	$	2,007	$	1,658	$	1,082

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:

	2022		2021		2020
U.S. federal income tax provision at the U.S. statutory rate (21 percent)	$	1,917	$	1,597	$	815
State and local taxes, net of federal effect		133		119		59
Other impacts of Tax Cuts and Jobs Act of 2017		(29)		(85)		39
Rate differential on foreign subsidiaries		121		148		106
Research and business tax credits		(65)		(48)		(50)
Excess tax benefits on equity compensation		(55)		(79)		(87)
Valuation allowances		179		18		139
Other - net		(194)		(12)		61
Provision for income taxes	$	2,007	$	1,658	$	1,082

Analysis of the Deferred Income Tax Assets and Liabilities

An analysis of the deferred income tax assets and liabilities at October 30, 2022 and October 31, 2021 in millions of dollars follows:

	2022				2021
	Deferred		Deferred		Deferred		Deferred
	Tax		Tax		Tax		Tax
	Assets		Liabilities		Assets		Liabilities
OPEB - net	$	213			$	676
Lessor lease transactions			$	310			$	399
Tax loss and tax credit carryforwards		1,405				1,542
Accrual for sales allowances		579				466
Tax over book depreciation				174				154
Goodwill and other intangible assets				178				337
Pension - net				532				448
Allowance for credit losses		90				78
Accrual for employee benefits		304				298
Share-based compensation		41				53
Deferred compensation		44				49
Lessee lease transactions		62		57		46		43
Unearned revenue		154				172
Other items		487		254		333		341
Less valuation allowances		(1,545)				(1,530)
Deferred income tax assets and liabilities	$	1,834	$	1,505	$	2,183	$	1,722

Reconciliation of Unrecognized Tax Benefits

A reconciliation of the total amounts of unrecognized tax benefits at October 30, 2022, October 31, 2021, and November 1, 2020 in millions of dollars follows:

	2022		2021		2020
Beginning of year balance	$	811	$	668	$	553
Increases to tax positions taken during the current year		98		81		63
Increases to tax positions taken during prior years		29		100		95
Decreases to tax positions taken during prior years		(18)		(23)		(30)
Decreases due to lapse of statute of limitations		(7)		(12)		(9)
Other		2		(3)		(1)
Foreign exchange		(24)				(3)
End of year balance	$	891	$	811	$	668