Income Taxes (Tables)

12 Months Ended

Jul. 31, 2013

Provision For Income Taxes From Continuing Operations

The provision for income taxes from continuing operations consisted of the following for the periods indicated:



	Twelve Months Ended July 31,
(In millions)	2013		2012			2011
Current:
Federal	$	307	$	363		$	273
State	28		28			46
Foreign	5		2			5
Total current	340		393			324
Deferred:
Federal	34		(23		)	16
State	2		(4		)	8
Foreign	11		8			6
Total deferred	47		(19		)	30
Total provision for income taxes from continuing operations	$	387	$	374		$	354

Sources of Income From Continuing Operations Before The Provision For Income Taxes

The sources of income from continuing operations before the provision for income taxes consisted of the following for the periods indicated:



	Twelve Months Ended July 31,
(In millions)	2013		2012		2011
United States	$	1,165	$	1,096	$	995
Foreign	45		42		47
Total	$	1,210	$	1,138	$	1,042

Differences Between Income Taxes Calculated Using The Federal Statutory Income Tax Rate And The Provision For Income Taxes From Continuing Operations

Differences between income taxes calculated using the federal statutory income tax rate of 35% and the provision for income taxes from continuing operations were as follows for the periods indicated:



	Twelve Months Ended July 31,
(In millions)	2013			2012			2011
Income from continuing operations before income taxes	$	1,210		$	1,138		$	1,042

Statutory federal income tax	$	424		$	398		$	365
State income tax, net of federal benefit	17			16			36
Federal research and experimentation credits	(24		)	(8		)	(23		)
Domestic production activities deduction	(29		)	(27		)	(25		)
Share-based compensation	7			8			6
Effects of non-U.S. operations	(2		)	(5		)	(4		)
Other, net	(6		)	(8		)	(1		)
Total provision for income taxes from continuing operations	$	387		$	374		$	354

Components of deferred tax assets and liabilities

Significant deferred tax assets and liabilities were as follows at the dates indicated:



	July 31,
(In millions)	2013			2012
Deferred tax assets:
Accruals and reserves not currently deductible	$	51		$	46
Deferred rent	11			11
Accrued and deferred compensation	50			48
Loss and tax credit carryforwards	36			41
Property and equipment	12			15
Share-based compensation	97			97
Net basis difference in investments held for sale	41			38
Total deferred tax assets	298			296
Deferred tax liabilities:
Intangible assets	93			92
Other, net	10			11
Total deferred tax liabilities	103			103
Total net deferred tax assets	195			193
Valuation allowance	(25		)	(10		)
Total net deferred tax assets, net of valuation allowance	$	170		$	183

Components of Net Deferred Tax Assets and Liabilities

The components of total net deferred tax assets, net of valuation allowances, as shown on our balance sheets were as follows at the dates indicated:



	July 31,
(In millions)	2013			2012
Current deferred income taxes	$	166		$	183
Long-term deferred income taxes included in other assets	10			—
Long-term deferred income taxes included in other long-term obligations	(6		)	—
Total net deferred tax assets, net of valuation allowance	$	170		$	183

Aggregate changes in the balance of gross unrecognized tax benefits

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows for the periods indicated:



	Twelve Months Ended July 31,
(In millions)	2013			2012			2011
Gross unrecognized tax benefits, beginning balance	$	38		$	41		$	35
Increases related to tax positions from prior fiscal years, including acquisitions	5			3			2
Decreases related to tax positions from prior fiscal years	(12		)	(9		)	—
Increases related to tax positions taken during current fiscal year	9			3			4
Settlements with tax authorities	(1		)	—			—
Gross unrecognized tax benefits, ending balance	$	39		$	38		$	41