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Stockholders' Equity (Tables)
12 Months Ended
Jul. 31, 2013
Equity [Abstract]  
Total share-based compensation expense
The following table summarizes the total share-based compensation expense that we recorded in operating income from continuing operations for the periods shown.

 
Twelve Months Ended July 31,
(In millions except per share amounts)
2013
 
2012
 
2011
 
 
 
 
 
 
Cost of product revenue
$

 
$

 
$
1

Cost of service and other revenue
6

 
4

 
3

Selling and marketing
64

 
56

 
43

Research and development
55

 
49

 
48

General and administrative
59

 
50

 
49

Total share-based compensation expense from continuing operations
184

 
159

 
144

Income tax benefit
(61
)
 
(51
)
 
(49
)
Decrease in net income from continuing operations
$
123

 
$
108

 
$
95

 
 
 
 
 
 
Decrease in net income per share from continuing operations:
 
 
 
 
 
Basic
$
0.41

 
$
0.36

 
$
0.31

Diluted
$
0.41

 
$
0.35

 
$
0.30

Assumptions used to estimate the fair value of stock options granted and shares purchased under Employee Stock Purchase Plan
We used the following assumptions to estimate the fair value of stock options granted and shares purchased under our Employee Stock Purchase Plan for the periods indicated:

 
Twelve Months Ended July 31,
 
2013
 
2012
 
2011
Assumptions for stock options:
 
 
 
 
 
Expected volatility (range)
22% - 27%

 
27% - 33%

 
27% - 30%

Weighted average expected volatility
23
%
 
29
%
 
28
%
Risk-free interest rate (range)
0.49% - 1.05%

 
0.43% - 0.85%

 
0.87% - 1.91%

Expected dividend yield (1)
1.02% - 1.18%

 
1.02% - 1.20%

 
0% - 1.20%

 
 
 
 
 
 
Assumptions for ESPP:
 
 
 
 
 
Expected volatility (range)
20% - 24%

 
24% - 33%

 
27% - 33%

Weighted average expected volatility
22
%
 
29
%
 
29
%
Risk-free interest rate (range)
0.05% - 0.11%

 
0.00% - 0.10%

 
0.05% - 0.16%

Expected dividend yield (1)
1.04% - 1.17%

 
1.00% - 1.20%

 
0
%

__________________
(1)
Expected dividend yield assumption was zero for fiscal 2011 option grants prior to July 2011. In July 2011 we determined that it was probable that we would pay cash dividends in the future and as a result we began using an expected dividend yield assumption in our valuation models. See “Dividends on Common Stock” above for more information.
Share-based Awards Available for Grant
A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the fiscal periods indicated was as follows:
 
 
(Shares in thousands)
Shares
Available
for Grant
Balance at July 31, 2010
8,761

Additional shares authorized
31,000

Options granted
(3,055
)
Restricted stock units granted (1)
(8,501
)
Share-based awards canceled/forfeited/expired (1)(2)
2,511

Balance at July 31, 2011
30,716

Options granted
(3,167
)
Restricted stock units granted (1)
(7,902
)
Share-based awards canceled/forfeited/expired (1)(2)
2,113

Balance at July 31, 2012
21,760

Options granted
(2,607
)
Restricted stock units granted (1)
(9,310
)
Share-based awards canceled/forfeited/expired (1)(2)
2,277

Balance at July 31, 2013
12,120


________________________________
(1)
Under the terms of our Amended and Restated 2005 Equity Incentive Plan, as amended through July 24, 2012 (2005 Equity Incentive Plan), RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.
(2)
Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan, are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
Activity under all share based compensation plans

A summary of activity under all share-based compensation plans for the fiscal periods indicated was as follows:

 
Options Outstanding
(Shares in thousands)
Number of
Shares
 
Weighted Average
Exercise Price
Per Share
Balance at July 31, 2010
32,593

 

$28.45

Options granted
3,055

 
47.70

Options exercised
(11,997
)
 
25.68

Options canceled or expired
(972
)
 
31.44

Balance at July 31, 2011
22,679

 
32.38

Options assumed and converted in connection with acquisitions
282

 
54.51

Options granted
3,167

 
51.36

Options exercised
(7,513
)
 
28.41

Options canceled or expired
(554
)
 
39.43

Balance at July 31, 2012
18,061

 
37.49

Options granted
2,607

 
62.93

Options exercised
(5,826
)
 
32.79

Options canceled or expired
(636
)
 
44.60

Balance at July 31, 2013
14,206

 

$43.77



Options outstanding, exercisable and expected to vest, and exercisable
Options outstanding, exercisable and expected to vest, and exercisable as of July 31, 2013 were as follows:

 
Number
of Shares
(in thousands)
 
Weighted
Average
Remaining
Contractual
Life
(in Years)    
 
Weighted
Average
Exercise
Price per
Share      
 
Aggregate
Intrinsic
Value
(in millions)    
Options outstanding
14,206

 
4.93
 

$43.77

 

$276

Options exercisable and expected to vest
13,697

 
4.81
 

$43.24

 

$273

Options exercisable
8,731

 
3.29
 

$35.80

 

$239

Additional Information Regarding Stock Options Restricted Stock and Espp [Table Text Block]
Additional information regarding our stock options and ESPP shares is shown in the table below.

 
Twelve Months Ended July 31,
(In millions except per share amounts)
2013
 
2012
 
2011
 
 
 
 
 
 
Weighted average fair value of options granted (per share)
$
11.24

 
$
15.22

 
$
10.44

Total fair value of options vested
$
41

 
$
39

 
$
53

 
 
 
 
 
 
Aggregate intrinsic value of options exercised
$
166

 
$
202

 
$
261

 
 
 
 
 
 
Share-based compensation expense for stock options and ESPP
$
49

 
$
53

 
$
51

Total tax benefit for stock option and ESPP share-based compensation
$
15

 
$
14

 
$
16

 
 
 
 
 
 
Cash received from option exercises
$
191

 
$
213

 
$
308

Cash tax benefits realized related to tax deductions for non-qualified option exercises and disqualifying dispositions under all share-based payment arrangements
$
60

 
$
72

 
$
99

Summary of restricted stock unit activity
A summary of restricted stock unit (RSU) activity for the periods indicated was as follows:

(Shares in thousands)
Number
of Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested at July 31, 2010
11,531

 

$30.93

Granted
3,855

 
47.02

Vested
(3,474
)
 
26.33

Forfeited
(857
)
 
31.73

Nonvested at July 31, 2011
11,055

 
37.92

Granted
3,436

 
55.02

Restricted stock units assumed and converted in connection with acquisitions
575

 
54.51

Vested
(4,763
)
 
34.13

Forfeited
(696
)
 
39.56

Nonvested at July 31, 2012
9,607

 
46.79

Granted
4,048

 
62.76

Vested
(3,670
)
 
43.00

Forfeited
(801
)
 
48.16

Nonvested at July 31, 2013
9,184

 

$55.23

Additional information regarding restricted stock units
Additional information regarding our RSUs is shown in the table below.

 
Twelve Months Ended July 31,
(In millions)
2013
 
2012
 
2011
 
 
 
 
 
 
Total fair value of RSUs vested
$
224

 
$
258

 
$
150

 
 
 
 
 
 
Share-based compensation for RSUs
$
135

 
$
106

 
$
93

Total tax benefit related to RSU share-based compensation expense
$
46

 
$
37

 
$
33

 
 
 
 
 
 
Cash tax benefits realized for tax deductions for RSUs
$
77

 
$
46

 
$
36