
16.	Income Taxes

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



	Three Months Ended
	October 24, 2015			October 25, 2014
Income before provision for income taxes	$	3,137		$	2,360
Provision for income taxes	$	707		$	532
Effective tax rate	22.5		%	22.5		%

As of October 24, 2015, the Company had $2.1 billion of unrecognized tax benefits, of which $1.8 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. Accordingly, the Company estimates that it is reasonably possible that the unrecognized tax benefits at October 24, 2015 could be reduced in the next 12 months by approximately $825 million, a portion of which could increase earnings.