Income Taxes (Tables)

12 Months Ended

Jul. 25, 2015

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



Years Ended	July 25, 2015			July 26, 2014			July 27, 2013
Federal:
Current	$	1,583		$	1,672		$	601
Deferred	43			(383		)	152
	1,626			1,289			753
State:
Current	130			176			81
Deferred	(20		)	(64		)	48
	110			112			129
Foreign:
Current	530			692			599
Deferred	(46		)	(231		)	(237		)
	484			461			362
Total	$	2,220		$	1,862		$	1,244

Income Before Provision For Income Taxes

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



Years Ended	July 25, 2015		July 26, 2014		July 27, 2013
United States	$	3,570	$	2,734	$	3,716
International	7,631		6,981		7,511
Total	$	11,201	$	9,715	$	11,227

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 25, 2015		July 26, 2014		July 27, 2013
Federal statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
State taxes, net of federal tax benefit	0.8		0.5		0.8
Foreign income at other than U.S. rates	(15.2	)	(16.4	)	(16.4	)
Tax credits	(1.2	)	(0.7	)	(1.6	)
Domestic manufacturing deduction	(0.7	)	(0.9	)	(1.0	)
Nondeductible compensation	2.0		3.3		1.3
Tax audit settlement	—		—		(7.1	)
Other, net	(0.9	)	(1.6	)	0.1
Total	19.8	%	19.2	%	11.1	%

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 25, 2015			July 26, 2014			July 27, 2013
Beginning balance	$	1,938		$	1,775		$	2,819
Additions based on tax positions related to the current year	276			262			138
Additions for tax positions of prior years	137			64			187
Reductions for tax positions of prior years	(30		)	(13		)	(1,027		)
Settlements	(165		)	(17		)	(199		)
Lapse of statute of limitations	(127		)	(133		)	(143		)
Ending balance	$	2,029		$	1,938		$	1,775

Components Of Deferred Tax Assets And Liabilities

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



	July 25, 2015			July 26, 2014
Deferred tax assets—current	$	2,915		$	2,808
Deferred tax liabilities—current	(212		)	(134		)
Deferred tax assets—noncurrent	1,648			1,700
Deferred tax liabilities—noncurrent	(246		)	(369		)
Total net deferred tax assets	$	4,105		$	4,005

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



	July 25, 2015			July 26, 2014
ASSETS
Allowance for doubtful accounts and returns	$	417		$	464
Sales-type and direct-financing leases	266			231
Inventory write-downs and capitalization	345			307
Investment provisions	112			212
IPR&D, goodwill, and purchased intangible assets	134			135
Deferred revenue	1,795			1,689
Credits and net operating loss carryforwards	746			796
Share-based compensation expense	520			661
Accrued compensation	467			496
Other	670			676
Gross deferred tax assets	5,472			5,667
Valuation allowance	(84		)	(114		)
Total deferred tax assets	5,388			5,553
LIABILITIES
Purchased intangible assets	(950		)	(1,229		)
Depreciation	(143		)	(48		)
Unrealized gains on investments	(175		)	(245		)
Other	(15		)	(26		)
Total deferred tax liabilities	(1,283		)	(1,548		)
Total net deferred tax assets	$	4,105		$	4,005