Income Taxes

3 Months Ended

Oct. 27, 2012

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

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

	Three Months Ended
	October 27, 2012			October 29, 2011
Income before provision for income taxes	$	2,631		$	2,245
Provision for income taxes	$	539		$	468
Effective tax rate	20.5		%	20.8		%

As of October 27, 2012, the Company had $2.9 billion of unrecognized tax benefits, of which $2.5 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. The Company estimates that it is reasonably possible that the unrecognized tax benefits at October 27, 2012 could be reduced in the next 12 months by approximately $1.1 billion, of which approximately $0.9 billion could increase earnings.