Income Taxes (Tables)

12 Months Ended

Nov. 29, 2019

Income Tax Disclosure [Abstract]

Income before income taxes, domestic and foreign

Income before income taxes for fiscal 2019, 2018 and 2017 consisted of the following:

(in thousands)	2019		2018		2017
Domestic	$	437,603	$	542,948	$	1,056,156
Foreign	2,767,138		2,250,928		1,081,485
Income before income taxes	$	3,204,741	$	2,793,876	$	2,137,641

Provision for income taxes, current and deferred

The provision for income taxes for fiscal 2019, 2018 and 2017 consisted of the following:

(in thousands)	2019			2018			2017
Current:
United States federal	$	6,563		$	501,272		$	298,802
Foreign	211,174			140,308			60,962
State and local	30,893			28,612			33,578
Total current	248,630			670,192			393,342
Deferred:
United States federal	22,528			(466,113		)	48,905
Foreign	(11,675		)	(9,734		)	(4,242		)
State and local	(6,200		)	8,757			5,682
Total deferred	4,653			(467,090		)	50,345
Provision for income taxes	$	253,283		$	203,102		$	443,687

Reconciliation of provision for income taxes

Total income tax expense differs from the expected tax expense (computed by multiplying the U.S. federal statutory rate of 21% in 2019, 22.2% in 2018 and 35% in 2017 by income before income taxes) as a result of the following:

(in thousands)	2019			2018			2017
Computed “expected” tax expense	$	672,996		$	620,240		$	748,174
State tax expense, net of federal benefit	23,510			25,214			25,131
Tax credits	(99,772		)	(110,849		)	(38,000		)
Effects of non-U.S. operations	(224,214		)	(384,393		)	(215,490		)
Stock-based compensation, net of tax deduction	(85,944		)	(95,372		)	(42,512		)
Resolution of income tax examinations	(39,291		)	(42,432		)	(31,358		)
Domestic manufacturing deduction benefit	—			(13,098		)	(32,200		)
Impacts of the U.S. Tax Act	2,955			185,997			—
Tax charge for licensing acquired company technology to foreign subsidiaries	—			—			24,771
Other	3,043			17,795			5,171
Provision for income taxes	$	253,283		$	203,102		$	443,687

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 29, 2019 and November 30, 2018 are presented below:

(in thousands)	2019			2018
Deferred tax assets:
Acquired technology	$	4,568		$	9,561
Reserves and accruals	53,796			59,100
Deferred revenue	12,036			37,690
Stock-based compensation	106,911			89,240
Net operating loss carryforwards of acquired companies	137,151			209,445
Credit carryforwards	252,074			173,748
Capitalized expenses	44,912			19,074
Benefits relating to tax positions	47,458			51,965
Other	32,794			37,160
Total gross deferred tax assets	691,700			686,983
Deferred tax asset valuation allowance	(244,432		)	(174,496		)
Total deferred tax assets	447,268			512,487
Deferred tax liabilities:
Depreciation and amortization	36,458			40,425
Undistributed earnings of foreign subsidiaries	51,883			17,556
Prepaid expenses	86,279			—
Acquired intangible assets	413,146			501,208
Total deferred tax liabilities	587,766			559,189
Net deferred tax liabilities	$	140,498		$	46,702

Gross amount of unrecognized tax benefits

During fiscal 2019 and 2018, our aggregate changes in our total gross amount of unrecognized tax benefits are summarized as follows:

(in thousands)	2019			2018
Beginning balance	$	196,152		$	172,945
Gross increases in unrecognized tax benefits – prior year tax positions	14,850			16,191
Gross decreases in unrecognized tax benefits – prior year tax positions	(2,282		)	(4,000		)
Gross increases in unrecognized tax benefits – current year tax positions	18,526			60,721
Gross decreases in unrecognized tax benefits – current year tax positions	(2,879		)	—
Settlements with taxing authorities	(230		)	—
Lapse of statute of limitations	(49,813		)	(45,922		)
Foreign exchange gains and losses	(987		)	(3,783		)
Ending balance	$	173,337		$	196,152