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Income Taxes (Tables)

12 Months Ended

Jul. 29, 2023

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


Years Ended	July 29, 2023		July 30, 2022		July 31, 2021
Federal:
Current	$	3,754	$	2,203	$	1,959
Deferred	(1,955)		(176)		(203)
	1,799		2,027		1,756
State:
Current	623		458		513
Deferred	(175)		(156)		(46)
	448		302		467
Foreign:
Current	412		313		583
Deferred	46		23		(135)
	458		336		448
Total	$	2,705	$	2,665	$	2,671

Income Before Provision for Income Taxes

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


Years Ended	July 29, 2023		July 30, 2022		July 31, 2021
United States	$	14,074	$	13,550	$	12,335
International	1,244		927		927
Total	$	15,318	$	14,477	$	13,262

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 29, 2023		July 30, 2022		July 31, 2021
Federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
State taxes, net of federal tax benefit	2.4		1.7		2.7
Foreign income at other than U.S. rates	(0.1)		0.8		1.5
Tax credits	(0.3)		(1.6)		(1.4)
Foreign-derived intangible income deduction	(5.8)		(3.9)		(4.2)
Stock-based compensation	1.1		0.3		0.6
Other, net	(0.6)		0.1		(0.1)
Total	17.7	%	18.4	%	20.1	%

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 29, 2023		July 30, 2022		July 31, 2021
Beginning balance	$	3,101	$	3,106	$	2,518
Additions based on tax positions related to the current year	159		157		224
Additions for tax positions of prior years	261		74		618
Reductions for tax positions of prior years	(265)		(81)		(122)
Settlements	(1,063)		(69)		(93)
Lapse of statute of limitations	(56)		(86)		(39)
Ending balance	$	2,137	$	3,101	$	3,106

Components of Deferred Tax Assets and Liabilities

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


	July 29, 2023		July 30, 2022
Deferred tax assets	$	6,576	$	4,449
Deferred tax liabilities	(62)		(55)
Total net deferred tax assets	$	6,514	$	4,394

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


	July 29, 2023		July 30, 2022
ASSETS
Allowance for accounts receivable and returns	$	81	$	90
Sales-type and direct-financing leases	22		29
Inventory write-downs and capitalization	452		430
Deferred foreign income	218		210
IPR&D and purchased intangible assets	1,082		1,184
Depreciation	16		10
Deferred revenue	1,801		1,744
Credits and net operating loss carryforwards	1,218		1,336
Share-based compensation expense	198		138
Accrued compensation	328		333
Lease liabilities	246		248
Capitalized research expenditures	2,042		149
Other	484		439
Gross deferred tax assets	8,188		6,340
Valuation allowance	(754)		(834)
Total deferred tax assets	7,434		5,506
LIABILITIES
Goodwill and purchased intangible assets	(602)		(767)

Unrealized gains on investments	—		(26)
ROU lease assets	(234)		(237)
Other	(84)		(82)
Total deferred tax liabilities	(920)		(1,112)
Total net deferred tax assets	$	6,514	$	4,394

Change in Valuation Allowance for Deferred Tax Assets

The changes in the valuation allowance for deferred tax assets are summarized as follows (in millions):


	July 29, 2023		July 30, 2022		July 31, 2021
Balance at beginning of fiscal year	$	834	$	771	$	700
Additions	35		84		91
Deductions	(18)		(10)		(5)
Write-offs	(93)		(12)		(16)
Foreign exchange and other	(4)		1		1
Balance at end of fiscal year	$	754	$	834	$	771