Income Taxes (Tables)

12 Months Ended

Jul. 28, 2012

Provision For Income Taxes

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

Years Ended	July 28, 2012			July 30, 2011			July 31, 2010
Federal:
Current	$	1,836		$	914		$	1,469
Deferred		(270	)		(168	)		(435	)
		1,566			746			1,034
State:
Current		119			49			186
Deferred		(53	)		83			—
		66			132			186
Foreign:
Current		477			529			470
Deferred		9			(72	)		(42	)
		486			457			428
Total	$	2,118		$	1,335		$	1,648

Income Before Provision For Income Taxes

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

Years Ended	July 28, 2012		July 30, 2011		July 31, 2010
United States	$	3,235	$	1,214	$	1,102
International		6,924		6,611		8,313
Total	$	10,159	$	7,825	$	9,415

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 28, 2012			July 30, 2011			July 31, 2010
Federal statutory rate		35.0	%		35.0	%		35.0	%
Effect of:
State taxes, net of federal tax benefit		0.4			1.5			1.4
Foreign income at other than U.S. rates		(15.6	)		(19.4	)		(19.3	)
Tax credits		(0.4	)		(3.0	)		(0.5	)
Transfer pricing adjustment related to share-based compensation		—			—			(1.7	)
Nondeductible compensation		1.8			2.5			2.0
Other, net		(0.4	)		0.5			0.6
Total		20.8	%		17.1	%		17.5	%

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 28, 2012			July 30, 2011			July 31, 2010
Beginning balance	$	2,948		$	2,677		$	2,816
Additions based on tax positions related to the current year		155			374			246
Additions for tax positions of prior years		54			93			60
Reductions for tax positions of prior years		(226	)		(60	)		(250	)
Settlements		(41	)		(56	)		(140	)
Lapse of statute of limitations		(71	)		(80	)		(55	)
Ending balance	$	2,819		$	2,948		$	2,677

Breakdown Between Current And Noncurrent Net Deferred Tax Assets

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

	July 28, 2012			July 30, 2011
Deferred tax assets—current	$	2,294		$	2,410
Deferred tax liabilities—current		(123	)		(131	)
Deferred tax assets—noncurrent		2,270			1,864
Deferred tax liabilities—noncurrent		(133	)		(264	)
Total net deferred tax assets	$	4,308		$	3,879

Components Of Deferred Tax Assets And Liabilities

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

	July 28, 2012			July 30, 2011
ASSETS
Allowance for doubtful accounts and returns	$	433		$	413
Sales-type and direct-financing leases		162			178
Inventory write-downs and capitalization		127			160
Investment provisions		261			226
IPR&D, goodwill, and purchased intangible assets		119			106
Deferred revenue		1,618			1,634
Credits and net operating loss carryforwards		721			713
Share-based compensation expense		1,059			1,084
Accrued compensation		481			507
Other		583			590
Gross deferred tax assets		5,564			5,611
Valuation allowance		(60	)		(82	)
Total deferred tax assets		5,504			5,529
LIABILITIES
Purchased intangible assets		(809	)		(997	)
Depreciation		(131	)		(298	)
Unrealized gains on investments		(222	)		(265	)
Other		(34	)		(90	)
Total deferred tax liabilities		(1,196	)		(1,650	)
Total net deferred tax assets	$	4,308		$	3,879