Income Taxes (Tables)

12 Months Ended

Oct. 31, 2021

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,
	2021		2020		2019
	(in thousands)
United States	$	640,531	$	544,391	$	487,430
Foreign	164,983		93,768		58,076
Total income (loss) before provision for income taxes	$	805,514	$	638,159	$	545,506

Components of (Benefit) Provision for Income Taxes

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

	Year Ended October 31,
	2021		2020		2019
	(in thousands)
Current:
Federal	$	85,950	$	29,272	$	22,821
State	11,898		1,863		11,846
Foreign	79,890		55,103		61,092
	177,738		86,238		95,759
Deferred:
Federal	(108,530)		(84,739)		(41,219)
State	1,796		(20,233)		(7,227)
Foreign	(21,849)		(6,554)		(34,174)
	(128,583)		(111,526)		(82,620)
Provision (benefit) for income taxes	$	49,155	$	(25,288)	$	13,139

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,
	2021		2020		2019
	(in thousands)
Statutory federal tax	$	168,745	$	133,979	$	114,557
State tax (benefit), net of federal effect	(2,419)		(29,096)		6,529
Federal Tax credits	(45,503)		(39,206)		(34,485)
Tax on foreign earnings	7,988		(3,980)		23,467
Foreign-derived intangible income deduction	(31,214)		(24,282)		(26,615)
Tax settlements	(7,134)		(13,167)		(10,953)
Stock-based compensation	(62,620)		(50,047)		(25,356)
Changes in valuation allowance	15,232		(614)		(42,144)
Undistributed earnings of foreign subsidiaries	—		—		6,341
Other	6,080		1,125		1,798
Provision (benefit) for income taxes	$	49,155	$	(25,288)	$	13,139

Components of Deferred Tax Assets and Liabilities

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

	October 31,
	2021		2020
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Deferred revenue	30,113		2,367
Deferred compensation	59,823		55,172
Intangible and depreciable assets	117,211		115,097
Capitalized research and development costs	203,052		118,857
Stock-based compensation	40,922		28,478
Tax loss carryovers	30,305		35,571
Foreign tax credit carryovers	32,498		18,645
Research and other tax credit carryovers	326,164		320,317
Operating Lease Liabilities	94,519		101,386
Gross deferred tax assets	934,607		795,890
Valuation allowance	(174,117)		(158,895)
Total deferred tax assets	760,490		636,995
Deferred tax liabilities:
Intangible assets	61,448		45,915
Operating lease Right-of-Use-Assets	77,877		84,716
Accruals and reserves	6,216		7,780
Undistributed earnings of foreign subsidiaries	7,580		3,063
Other	628		372
Total deferred tax liabilities	153,749		141,846
Net deferred tax assets	$	606,741	$	495,149

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	$	43,778	2022-2040
Federal research credit carryforward	158,143		2022-2041
Federal foreign tax credit carryforward	12,153		2027-2032
International foreign tax credit carryforward	17,364		Indefinite
International net operating loss carryforward	55,342		2027-Indefinite
California research credit carryforward	193,404		Indefinite
Other state research credit carryforward	17,767		2024-2041
State net operating loss carryforward	79,621		2023-2044

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, 2021		As of October 31, 2020
	(in thousands)
Beginning balance	$	83,149	$	116,212
Increases in unrecognized tax benefits related to prior year tax positions	794		5,390
Decreases in unrecognized tax benefits related to prior year tax positions	(7,372)		(43,783)
Increases in unrecognized tax benefits related to current year tax positions	9,168		9,226
Decreases in unrecognized tax benefits related to settlements with taxing authorities	(1,538)		(1,411)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(1,235)		(2,472)
Increases in unrecognized tax benefits acquired	—		778
Changes in unrecognized tax benefits due to foreign currency translation	(606)		(791)
Ending balance	$	82,360	$	83,149

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 2020
California	Fiscal years after 2017
Hungary	Fiscal years after 2018
Ireland	Fiscal years after 2017
Japan and Taiwan	Fiscal years after 2016
Korea	Fiscal years after 2016