Income Taxes (Tables)

12 Months Ended

Oct. 31, 2023

Income Tax Disclosure [Abstract]

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

The domestic and foreign components of our total income (loss) before provision for income taxes are as follows:

	Year Ended October 31,
	2023		2022		2021
	(in thousands)
United States	$	1,142,132	$	1,036,279	$	640,531
Foreign	159,650		79,235		164,983
Total income (loss) before provision for income taxes	$	1,301,782	$	1,115,514	$	805,514

Components of (Benefit) Provision for Income Taxes

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

	Year Ended October 31,
	2023		2022		2021
	(in thousands)
Current:
Federal	$	244,523	$	105,493	$	85,950
State	22,193		23,201		11,898
Foreign	27,986		45,297		79,890
	294,702		173,991		177,738
Deferred:
Federal	(192,762)		(42,086)		(108,530)
State	(1,842)		1,519		1,796
Foreign	(16,441)		3,654		(21,849)
	(211,045)		(36,913)		(128,583)
Provision (benefit) for income taxes	$	83,657	$	137,078	$	49,155

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,
	2023		2022		2021
	(in thousands)
Statutory federal tax	$	273,374	$	234,257	$	168,745
State tax (benefit), net of federal effect	617		(2,514)		(2,419)
Federal tax credits	(65,878)		(61,582)		(45,503)
Tax (benefit) on foreign earnings	(12,454)		25,930		7,988
Foreign-derived intangible income deduction	(82,436)		(38,924)		(31,214)
Tax settlements	(23,752)		—		(7,134)
Stock-based compensation	(43,153)		(52,625)		(62,620)
Changes in valuation allowance	29,631		19,794		15,232
Other	7,708		12,742		6,080
Provision (benefit) for income taxes	$	83,657	$	137,078	$	49,155

Components of Deferred Tax Assets and Liabilities

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

	As of October 31,
	2023		2022
	(in thousands)
Net deferred tax assets:
Deferred tax assets:
Deferred revenue	37,641		41,941
Deferred compensation	69,824		67,782
Intangible and depreciable assets	94,564		119,791
Capitalized research and development costs	592,536		231,733
Stock-based compensation	65,039		60,537
Tax loss carryovers	62,779		59,754
Foreign tax credit carryovers	41,972		27,153
Research and other tax credit carryovers	182,999		316,650
Operating Lease Liabilities	118,679		119,575
Accruals and reserves	27,636		—
Other	—		16,887
Gross deferred tax assets	1,293,669		1,061,803
Valuation allowance	(229,259)		(198,213)
Total deferred tax assets	1,064,410		863,590
Deferred tax liabilities:
Intangible assets	116,465		102,796
Operating lease Right-of-Use-Assets	94,068		96,598
Accruals and reserves	—		5,998
Undistributed earnings of foreign subsidiaries	8,900		1,000
Other	18,006		—
Total deferred tax liabilities	237,439		206,392
Net deferred tax assets	$	826,971	$	657,198

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

We have 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	$	156,991	2024-2042
Federal research credit carryforward	14,705		2024-2038
Federal foreign tax credit carryforward	27,522		2027-2033
International foreign tax credit carryforward	10,929		Indefinite
International net operating loss carryforward	48,823		2027-Indefinite
California research credit carryforward	243,960		Indefinite
Other state research credit carryforward	25,176		2025-2043
State net operating loss carryforward	236,391		2024-2045

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,
	2023		2022
	(in thousands)
Beginning balance	$	81,183	$	82,360
Increases in unrecognized tax benefits related to prior year tax positions	211		435
Decreases in unrecognized tax benefits related to prior year tax positions	(25,678)		(9,791)
Increases in unrecognized tax benefits related to current year tax positions	8,223		6,794
Decreases in unrecognized tax benefits related to settlements with taxing authorities	—		(1,104)
Reductions in unrecognized tax benefits due to lapse of applicable statute of limitations	(249)		(2,601)
Increases in unrecognized tax benefits acquired	165		14,121
Changes in unrecognized tax benefits due to foreign currency translation	10,504		(9,031)
Ending balance	$	74,359	$	81,183

Subsidiaries Remain Subject to Tax Examination

We and/or our subsidiaries remain subject to tax examination in the following jurisdictions:

Jurisdiction	Year(s) Subject to Examination
United States	Fiscal years after 2020
California	Fiscal years after 2018
Hungary	Fiscal years after 2018
Ireland	Fiscal years after 2018
Japan	Fiscal years after 2017
Korea and Taiwan	Fiscal years after 2021
China	Fiscal years after 2013
India	Fiscal years after 2019