Income Taxes (Tables)

12 Months Ended

Jul. 27, 2013

The provision for income taxes consists of the following (in millions):



Years Ended	July 27, 2013			July 28, 2012			July 30, 2011
Federal:
Current	$	601		$	1,836		$	914
Deferred	152			(270		)	(168		)
	753			1,566			746
State:
Current	81			119			49
Deferred	48			(53		)	83
	129			66			132
Foreign:
Current	599			477			529
Deferred	(237		)	9			(72		)
	362			486			457
Total	$	1,244		$	2,118		$	1,335

Income Before Provision For Income Taxes

Income before provision for income taxes consists of the following (in millions):



Years Ended	July 27, 2013		July 28, 2012		July 30, 2011
United States	$	3,716	$	3,235	$	1,214
International	7,511		6,924		6,611
Total	$	11,227	$	10,159	$	7,825

Difference Between Income Taxes At Federal Statutory Rate And Provision For Income Taxes

The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:



Years Ended	July 27, 2013		July 28, 2012		July 30, 2011
Federal statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
State taxes, net of federal tax benefit	0.8		0.4		1.5
Foreign income at other than U.S. rates	(16.4	)	(15.6	)	(19.4	)
Tax credits	(1.6	)	(0.4	)	(3.0	)
Domestic manufacturing deduction	(1.0	)	(1.1	)	(0.3	)
Nondeductible compensation	1.3		1.8		2.5
Tax audit settlement	(7.1	)	—		—
Other, net	0.1		0.7		0.8
Total	11.1	%	20.8	%	17.1	%

Aggregate Changes In Gross Unrecognized Tax Benefits

The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):



Years Ended	July 27, 2013			July 28, 2012			July 30, 2011
Beginning balance	$	2,819		$	2,948		$	2,677
Additions based on tax positions related to the current year	138			155			374
Additions for tax positions of prior years	187			54			93
Reductions for tax positions of prior years	(1,027		)	(226		)	(60		)
Settlements	(199		)	(41		)	(56		)
Lapse of statute of limitations	(143		)	(71		)	(80		)
Ending balance	$	1,775		$	2,819		$	2,948

Components Of Deferred Tax Assets And Liabilities

The following table presents the breakdown between current and noncurrent net deferred tax assets (in millions):



	July 27, 2013			July 28, 2012
Deferred tax assets—current	$	2,616		$	2,294
Deferred tax liabilities—current	(114		)	(123		)
Deferred tax assets—noncurrent	1,539			2,270
Deferred tax liabilities—noncurrent	(399		)	(133		)
Total net deferred tax assets	$	3,642		$	4,308

The components of the deferred tax assets and liabilities are as follows (in millions):



	July 27, 2013			July 28, 2012
ASSETS
Allowance for doubtful accounts and returns	$	390		$	433
Sales-type and direct-financing leases	167			162
Inventory write-downs and capitalization	216			127
Investment provisions	214			261
IPR&D, goodwill, and purchased intangible assets	123			119
Deferred revenue	1,624			1,618
Credits and net operating loss carryforwards	681			721
Share-based compensation expense	783			1,059
Accrued compensation	486			481
Other	560			583
Gross deferred tax assets	5,244			5,564
Valuation allowance	(98		)	(60		)
Total deferred tax assets	5,146			5,504
LIABILITIES
Purchased intangible assets	(1,101		)	(809		)
Depreciation	(169		)	(131		)
Unrealized gains on investments	(211		)	(222		)
Other	(23		)	(34		)
Total deferred tax liabilities	(1,504		)	(1,196		)
Total net deferred tax assets	$	3,642		$	4,308