Income Taxes |
9 Months Ended |
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Aug. 03, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes On July 4, 2025, the United States enacted the One Big Beautiful Bill Act, which allows for the immediate expensing of domestic research and development costs, certain capital expenditures, and changes to the United States taxation of profits derived from foreign operations. As a result, it is no longer more-likely-than-not that we are able to utilize our federal corporate alternative minimum tax (“CAMT”) credits, and we established a $1,058 million valuation allowance against our CAMT credit carryforwards and CAMT credits generated in the current fiscal year. Our policy is to not consider the impact of future years’ CAMT in our valuation allowance assessment for regular deferred tax assets. Most of the provisions are effective beginning in our fiscal years ending November 1, 2026 or October 31, 2027, with immediate expensing of qualifying property being effective in fiscal year 2025. We will continue to evaluate the full impact of these legislative changes as more guidance becomes available. The provision for income taxes was $1,145 million and $1,252 million for the fiscal quarter and three fiscal quarters ended August 3, 2025, respectively, and was primarily due to the impact from a valuation allowance against our CAMT credits, income before income taxes, and the jurisdictional mix of income, partially offset by excess tax benefits from stock-based awards. The provision for income taxes was $4,238 million and $4,190 million for the fiscal quarter and three fiscal quarters ended August 4, 2024, respectively, and was primarily due to an intra-group transfer of certain IP rights during the fiscal quarter ended August 4, 2024 to the United States as a result of supply chain realignment and the resulting shift in the jurisdictional mix of income, partially offset by excess tax benefits from stock-based awards. As of August 3, 2025, we had $6,930 million of gross unrecognized tax benefits and accrued interest and penalties. Subsequent to the fiscal quarter ended August 3, 2025, certain statutes of limitations have lapsed. This is expected to reduce unrecognized tax benefits by approximately $3.1 billion in the fiscal quarter ending November 2, 2025, and by up to $3.5 billion within the next 12 months. As a result of these lapses of statutes of limitations, we estimate that we will recognize a discrete tax benefit of up to $2.1 billion during the fiscal quarter ending November 2, 2025. We are continuing to evaluate the impact of these lapses of statutes of limitations on our estimated annual effective tax rate and income tax provision.
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