
16.	Income Taxes

The following table provides details of income taxes (in millions, except percentages):



	Three Months Ended						Nine Months Ended
	April 26, 2014			April 27, 2013			April 26, 2014			April 27, 2013
Income before provision for income taxes	$	2,642		$	2,945		$	6,937		$	8,356
Provision for income taxes	$	461		$	467		$	1,331		$	643
Effective tax rate	17.4		%	15.9		%	19.2		%	7.7		%

As of April 26, 2014, the Company had $1.9 billion of unrecognized tax benefits, of which $1.6 billion, if recognized, would favorably impact the effective tax rate. The Company regularly engages in discussions and negotiations with tax authorities regarding tax matters in various jurisdictions. The Company believes it is reasonably possible that certain federal, foreign, and state tax matters may be concluded in the next 12 months. Specific positions that may be resolved include issues involving transfer pricing and various other matters. The Company estimates that it is reasonably possible that the unrecognized tax benefits at April 26, 2014 could be reduced by $300 million in the next 12 months.