Income Taxes (Tables)

12 Months Ended

Nov. 28, 2014

Income before income taxes, domestic and foreign

Income before income taxes for fiscal 2014, 2013 and 2012 consisted of the following (in thousands):



	2014		2013		2012
Domestic	$	191,563	$	132,916	$	512,987
Foreign	169,813		223,225		605,807
Income before income taxes	$	361,376	$	356,141	$	1,118,794

Provision for income taxes, current

The provision for income taxes for fiscal 2014, 2013 and 2012 consisted of the following (in thousands):



	2014			2013			2012
Current:
United States federal	$	26,822		$	(53,985	)	$	162,574
Foreign	51,684			65,609			59,255
State and local	4,713			3,317			(2,244		)
Total current	83,219			14,941			219,585
Deferred:
United States federal	(24,090		)	24,139			69,374
Foreign	(12,895		)	(6,215		)	(6,082		)
State and local	(6,476		)	(7,328		)	3,142
Total deferred	(43,461		)	10,596			66,434
Tax expense attributable to employee stock plans	53,223			40,619			—
Provision for income taxes	$	92,981		$	66,156		$	286,019

Income tax expense differs from the expected tax expense

Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 35% by income before income taxes) as a result of the following (in thousands):



	2014			2013			2012
Computed “expected” tax expense	$	126,481		$	124,649		$	391,578
State tax expense, net of federal benefit	(4,411		)	(6,304		)	11,320
Tax credits	(1,166		)	(29,087		)	(1,226		)
Differences between statutory rate and foreign effective tax rate	(33,769		)	(39,678		)	(122,999		)
Change in deferred tax asset valuation allowance	—			514			(2,144		)
Stock-based compensation (net of tax deduction)	8,688			9,783			10,976
Resolution of income tax examinations	(1,896		)	(8,421		)	(26,687		)
Domestic manufacturing deduction benefit	(6,272		)	(2,929		)	(17,010		)
Tax charge for licensing acquired company technology to foreign subsidiaries	—			18,935			38,849
Other, net	5,326			(1,306		)	3,362
Provision for income taxes	$	92,981		$	66,156		$	286,019

Deferred tax assets and liabilities

The tax effects of the temporary differences that gave rise to significant portions of the deferred tax assets and liabilities as of November 28, 2014 and November 29, 2013 are presented below (in thousands):



	2014			2013
Deferred tax assets:
Acquired technology	$	9,477		$	14,379
Reserves and accruals	56,109			67,753
Deferred revenue	16,311			10,218
Unrealized losses on investments	6,723			9,793
Stock-based compensation	58,501			64,244
Net operating loss carryforwards of acquired companies	9,082			9,222
Credit carryforwards	41,419			43,175
Capitalized expenses	—			188
Other	10,974			6,788
Total gross deferred tax assets	208,596			225,760
Deferred tax asset valuation allowance	(22,100		)	(21,493		)
Total deferred tax assets	186,496			204,267
Deferred tax liabilities:
Depreciation and amortization	73,295			89,611
Undistributed earnings of foreign subsidiaries	221,845			211,417
Acquired intangible assets	138,392			176,626
Total deferred tax liabilities	433,532			477,654
Net deferred tax liabilities	$	247,036		$	273,387

Gross amount of unrecognized tax benefits

During fiscal 2014 and 2013, our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows (in thousands):



	2014			2013
Beginning balance	$	136,098		$	160,468
Gross increases in unrecognized tax benefits – prior year tax positions	144			20,244
Gross increases in unrecognized tax benefits – current year tax positions	18,877			16,777
Settlements with taxing authorities	(995		)	(55,851		)
Lapse of statute of limitations	(1,630		)	(4,066		)
Foreign exchange gains and losses	(3,646		)	(1,474		)
Ending balance	$	148,848		$	136,098

- Definition

Tabular disclosure of tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities (i.e., uncertain tax positions) and other types of income tax contingencies, including: (1) the policy on classification of interest and penalties; (2) a tabular reconciliation of the total amounts of unrecognized tax benefits at the beginning and end of the period; the total amount(s) of: (3) unrecognized tax benefits that, if recognized, would affect the effective tax rate, and (4) interest and penalties recognized in each of the income statement and balance sheet; (5) for positions for which it is reasonably possible that the total amounts unrecognized will significantly change within 12 months of the reporting date the: (i) nature of the uncertainty, (ii) nature of the event that could occur that would cause the change, and (iii) an estimate of the range of the reasonably possible change or a statement that an estimate of the range cannot be made; and (6) a description of tax years that remain subject to examination by major tax jurisdictions.

+ References+ Details