Income Taxes (Tables)

12 Months Ended

Jul. 30, 2016

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



Years Ended	July 30, 2016			July 25, 2015			July 26, 2014
Federal:
Current	$	865		$	1,583		$	1,672
Deferred	(93		)	43			(383		)
	772			1,626			1,289
State:
Current	78			130			176
Deferred	13			(20		)	(64		)
	91			110			112
Foreign:
Current	1,432			530			692
Deferred	(114		)	(46		)	(231		)
	1,318			484			461
Total	$	2,181		$	2,220		$	1,862

Income Before Provision For Income Taxes

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



Years Ended	July 30, 2016		July 25, 2015		July 26, 2014
United States	$	2,907	$	3,570	$	2,734
International	10,013		7,631		6,981
Total	$	12,920	$	11,201	$	9,715

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 30, 2016		July 25, 2015		July 26, 2014
Federal statutory rate	35.0	%	35.0	%	35.0	%
Effect of:
State taxes, net of federal tax benefit	0.5		0.8		0.5
Foreign income at other than U.S. rates	(14.5	)	(15.2	)	(16.4	)
Tax credits	(1.7	)	(1.2	)	(0.7	)
Domestic manufacturing deduction	(0.6	)	(0.7	)	(0.9	)
Nondeductible compensation	1.4		2.0		3.3
Tax audit settlement	(2.8	)	—		—
Other, net	(0.4	)	(0.9	)	(1.6	)
Total	16.9	%	19.8	%	19.2	%

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 30, 2016			July 25, 2015			July 26, 2014
Beginning balance	$	2,029		$	1,938		$	1,775
Additions based on tax positions related to the current year	255			276			262
Additions for tax positions of prior years	116			137			64
Reductions for tax positions of prior years	(457		)	(30		)	(13		)
Settlements	(241		)	(165		)	(17		)
Lapse of statute of limitations	(75		)	(127		)	(133		)
Ending balance	$	1,627		$	2,029		$	1,938

Components Of Deferred Tax Assets And Liabilities

The following table presents the breakdown for net deferred tax assets (in millions):



	July 30, 2016			July 25, 2015
Deferred tax assets	$	4,299		$	4,454
Deferred tax liabilities	(278		)	(349		)
Total net deferred tax assets	$	4,021		$	4,105

The following table presents the components of the deferred tax assets and liabilities (in millions):



	July 30, 2016			July 25, 2015
ASSETS
Allowance for doubtful accounts and returns	$	524		$	417
Sales-type and direct-financing leases	289			266
Inventory write-downs and capitalization	417			345
Investment provisions	126			112
IPR&D, goodwill, and purchased intangible assets	139			134
Deferred revenue	1,858			1,795
Credits and net operating loss carryforwards	863			746
Share-based compensation expense	438			520
Accrued compensation	572			467
Other	516			670
Gross deferred tax assets	5,742			5,472
Valuation allowance	(134		)	(84		)
Total deferred tax assets	5,608			5,388
LIABILITIES
Purchased intangible assets	(995		)	(950		)
Depreciation	(289		)	(143		)
Unrealized gains on investments	(225		)	(175		)
Other	(78		)	(15		)
Total deferred tax liabilities	(1,587		)	(1,283		)
Total net deferred tax assets	$	4,021		$	4,105