Income Taxes (Tables)

12 Months Ended

Oct. 31, 2018

Income Tax Disclosure [Abstract]

Domestic and Foreign Components of Total Income Before Provision for Income Tax

The domestic and foreign components of the Company’s total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2018			2017			2016
	(in thousands)
United States	$	(18,029	)	$	(2,702	)	$	22,134
Foreign	381,572			385,800			307,414
Total income (loss) before provision for income taxes	$	363,543		$	383,098		$	329,548

Components of (Benefit) Provision for Income Taxes

The components of the provision (benefit) for income taxes were as follows:

	Year Ended October 31,
	2018			2017		2016
	(in thousands)
Current:
Federal	$	(1,120	)	$	25,420	$	(6,106	)
State	2,025			5,565		2,670
Foreign	140,430			92,498		80,195
	141,335			123,483		76,759
Deferred:
Federal	(139,547		)	95,003		(23,510		)
State	(25,661		)	24,440		11,950
Foreign	(45,102		)	3,609		(2,477		)
	(210,310		)	123,052		(14,037		)
Provision (benefit) for income taxes	$	(68,975	)	$	246,535	$	62,722

Rate Reconciliation Between Provision for Income Taxes and Taxes Computed at Statutory Federal Rate

The provision (benefit) for income taxes differs from the taxes computed with the statutory federal income tax rate as follows:

	Year Ended October 31,
	2018			2017			2016
	(in thousands)
Statutory federal tax	$	85,142		$	134,084		$	115,343
State tax (benefit), net of federal effect	(32,351		)	(20,071		)	(14,492		)
Tax credits	(35,142		)	(24,365		)	(36,979		)
Tax on foreign earnings less than U.S. statutory tax	(104,252		)	(52,413		)	(68,246		)
Tax settlements	(14,691		)	(7,057		)	(16,479		)
Stock-based compensation	(19,293		)	(26,205		)	5,709
Changes in valuation allowance	78,192			47,745			25,590
Integration of acquired technologies	27,927			36,443			37,525
Undistributed earnings of foreign subsidiaries	(974		)	(9,610		)	9,940
Tax impact of repatriation	—			166,152			—
Impact of tax restructuring	(171,979		)	—			—
Impact of Tax Act rate change	51,075			—			—
Transition tax	63,107			—			—
Other	4,264			1,832			4,811
Provision (benefit) for income taxes	$	(68,975	)	$	246,535		$	62,722

Components of Deferred Tax Assets and Liabilities

The significant components of deferred tax assets and liabilities were as follows:

	October 31,
	2018			2017
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Accruals and reserves	$	17,766		$	36,906
Deferred revenue	37,072			42,420
Deferred compensation	50,096			67,145
Intangible and depreciable assets	185,940			51,679
Capitalized research and development costs	4,817			12,508
Stock-based compensation	19,825			23,679
Tax loss carryovers	37,029			23,623
Foreign tax credit carryovers	64,803			7,662
Research and other tax credit carryovers	250,069			157,817
Other	4,480			—
Gross deferred tax assets	671,897			423,439
Valuation allowance	(201,258		)	(121,770		)
Total deferred tax assets	470,639			301,669
Deferred tax liabilities:
Intangible assets	72,682			62,299
Undistributed earnings of foreign subsidiaries	523			1,300
Other	—			1,758
Total deferred tax liabilities	73,205			65,357
Net deferred tax assets	$	397,434		$	236,312

Tax Loss and Credit Carryforwards Available to Offset Future Income Tax Liabilities

The Company has the following tax loss and credit carryforwards available to offset future income tax liabilities:

Carryforward	Amount		Expiration Date
	(in thousands)
Federal net operating loss carryforward	$	139,526	2019-2037
Federal research credit carryforward	109,760		2019-2037
Federal foreign tax credit carryforward	2,427		2019-2027
International foreign tax credit carryforward	12,943		Indefinite
California research credit carryforward	188,826		Indefinite
Other state research credit carryforward	10,873		2023-2033
State net operating loss carryforward	104,174		2024-2037

Summary of Reconciliation of Beginning and Ending Balance of Gross Unrecognized Tax Benefit

A reconciliation of the beginning and ending balance of gross unrecognized tax benefits is summarized as follows:

	As of October 31, 2018			As of October 31, 2017
	(in thousands)
Beginning balance	$	91,637		$	106,542
Increases in unrecognized tax benefits related to prior year tax positions	2,572			3,117
Decreases in unrecognized tax benefits related to prior year tax positions	(27,615		)	(49,456		)
Increases in unrecognized tax benefits related to current year tax positions	67,961			31,007
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(175		)	(784		)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(8,828		)	(2,635		)
Increases in unrecognized tax benefits acquired	7,886			1,934
Changes in unrecognized tax benefits due to foreign currency translation	(2,419		)	1,912
Ending balance	$	131,019		$	91,637

Subsidiaries Remain Subject to Tax Examination

The Company and/or its subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States	Fiscal 2018
California	Fiscal years after 2014
Hungary and Ireland	Fiscal years after 2013
Japan and Taiwan	Fiscal years after 2011