Income Taxes (Tables)

12 Months Ended

Jul. 27, 2024

Income Tax Disclosure [Abstract]

Provision for Income Taxes

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

Years Ended	July 27, 2024		July 29, 2023		July 30, 2022
Federal:
Current	$	1,939	$	3,754	$	2,203
Deferred	(883)		(1,955)		(176)
	1,056		1,799		2,027
State:
Current	388		623		458
Deferred	11		(175)		(156)
	399		448		302
Foreign:
Current	559		412		313
Deferred	(100)		46		23
	459		458		336
Total	$	1,914	$	2,705	$	2,665

Income Before Provision for Income Taxes

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

Years Ended	July 27, 2024		July 29, 2023		July 30, 2022
United States	$	10,790	$	14,074	$	13,550
International	1,444		1,244		927
Total	$	12,234	$	15,318	$	14,477

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 27, 2024		July 29, 2023		July 30, 2022
Federal statutory rate	21.0	%	21.0	%	21.0	%
Effect of:
State taxes, net of federal tax benefit	2.8		2.4		1.7
Foreign income at other than U.S. rates	(0.3)		(0.1)		0.8
Tax credits	(2.4)		(0.3)		(1.6)
Foreign-derived intangible income deduction	(5.5)		(5.8)		(3.9)
Stock-based compensation	0.7		1.1		0.3
Other, net	(0.7)		(0.6)		0.1
Total	15.6	%	17.7	%	18.4	%

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 27, 2024		July 29, 2023		July 30, 2022
Beginning balance	$	2,137	$	3,101	$	3,106
Additions based on tax positions related to the current year	205		159		157
Additions for tax positions of prior years	256		261		74
Reductions for tax positions of prior years	(344)		(265)		(81)
Settlements	(53)		(1,063)		(69)
Lapse of statute of limitations	(45)		(56)		(86)
Ending balance	$	2,156	$	2,137	$	3,101

Components of Deferred Tax Assets and Liabilities

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

	July 27, 2024		July 29, 2023
Deferred tax assets	$	6,262	$	6,576
Deferred tax liabilities	(76)		(62)
Total net deferred tax assets	$	6,186	$	6,514

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

	July 27, 2024		July 29, 2023
ASSETS
Allowance for accounts receivable and returns	$	94	$	81
Sales-type and direct-financing leases	23		22
Inventory write-downs and capitalization	530		452
Deferred foreign income	277		218
IPR&D and purchased intangible assets	1,039		1,082
Depreciation	184		16
Deferred revenue	2,034		1,801
Credits and net operating loss carryforwards	1,863		1,218
Share-based compensation expense	297		198
Accrued compensation	275		328
Lease liabilities	308		246
Capitalized research expenditures	3,030		2,042
Other	442		484
Gross deferred tax assets	10,396		8,188
Valuation allowance	(1,024)		(754)
Total deferred tax assets	9,372		7,434
LIABILITIES
Goodwill and purchased intangible assets	(2,808)		(602)
ROU lease assets	(259)		(234)
Other	(119)		(84)
Total deferred tax liabilities	(3,186)		(920)
Total net deferred tax assets	$	6,186	$	6,514

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 27, 2024		July 29, 2023		July 30, 2022
Balance at beginning of fiscal year	$	754	$	834	$	771
Additions	148		35		84
Additions from Splunk	147		—		—
Deductions	(4)		(18)		(10)
Write-offs	(20)		(93)		(12)
Foreign exchange and other	(1)		(4)		1
Balance at end of fiscal year	$	1,024	$	754	$	834