Taxes On Earnings (Tables)

12 Months Ended

Jul. 29, 2012

The provision for income taxes on earnings consists of the following:



	2012		2011			2010
Income taxes:
Currently Payable
Federal	$	213	$	215		253
State	29		27			46
Non-U.S.	55		78			45
	297		320			344

Deferred
Federal	37		47			38
State	2		(2		)	1
Non-U.S.	6		1			15
	45		46			54
	$	342	$	366		$	398

Earnings before income taxes:
United States	$	922	$	944		$	1,051
Non-U.S.	184		224			191
	$	1,106	$	1,168		$	1,242

The following is a reconciliation of the effective income tax rate to the U.S. federal statutory income tax rate:



	2012		2011		2010
Federal statutory income tax rate	35.0	%	35.0	%	35.0	%
State income taxes (net of federal tax benefit)	1.9		1.4		2.5
Tax effect of international items	(3.8	)	(2.1	)	(2.5	)
Settlement of tax contingencies	(0.1	)	(0.5	)	(0.7	)
Federal manufacturing deduction	(1.8	)	(1.8	)	(1.3	)
Other	(0.3	)	(0.7	)	(1.0	)
Effective income tax rate	30.9	%	31.3	%	32.0	%

Deferred tax liabilities and assets are comprised of the following:



	2012			2011
Depreciation	$	279		$	253
Amortization	474			474
Other	20			14
Deferred tax liabilities	773			741
Benefits and compensation	311			307
Pension benefits	194			93
Tax loss carryforwards	69			84
Capital loss carryforwards	117			122
Other	79			83
Gross deferred tax assets	770			689
Deferred tax asset valuation allowance	(142		)	(156		)
Net deferred tax assets	628			533
Net deferred tax liability	$	145		$	208

A reconciliation of the activity related to unrecognized tax benefits follows:



	2012			2011			2010
Balance at beginning of year	$	43		$	36		$	42
Increases related to prior-year tax positions	2			6			14
Decreases related to prior-year tax positions	(1		)	(4		)	(11		)
Increases related to current-year tax positions	9			9			4
Settlements	—			—			(11		)
Lapse of statute	(5		)	(4		)	(2		)
Balance at end of year	$	48		$	43		$	36