Income Taxes (Tables)

12 Months Ended

Jul. 31, 2014

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)	2014		2013		2012
Current:
Federal	$	324	$	307	$	363
State	20		28		28
Foreign	10		5		2
Total current	354		340		393
Deferred:
Federal	91		34		(23		)
State	6		2		(4		)
Foreign	2		11		8
Total deferred	99		47		(19		)
Total provision for income taxes from continuing operations	$	453	$	387	$	374

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)	2014		2013		2012
United States	$	1,290	$	1,165	$	1,096
Foreign	24		45		42
Total	$	1,314	$	1,210	$	1,138

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)	2014			2013			2012
Income from continuing operations before income taxes	$	1,314		$	1,210		$	1,138

Statutory federal income tax	$	460		$	424		$	398
State income tax, net of federal benefit	17			17			16
Federal research and experimentation credits	(8		)	(24		)	(8		)
Domestic production activities deduction	(25		)	(29		)	(27		)
Share-based compensation	9			7			8
Effects of non-U.S. operations	1			(2		)	(5		)
Other, net	(1		)	(6		)	(8		)
Total provision for income taxes from continuing operations	$	453		$	387		$	374

Components of deferred tax assets and liabilities

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



	July 31,
(In millions)	2014			2013
Deferred tax assets:
Accruals and reserves not currently deductible	$	60		$	51
Deferred rent	11			11
Accrued and deferred compensation	50			50
Loss and tax credit carryforwards	47			36
Property and equipment	—			12
Share-based compensation	50			97
Net basis difference in investments held for sale	—			41
Other, net	2			—
Total deferred tax assets	220			298
Deferred tax liabilities:
Intangible assets	120			93
Property and equipment	4			—
Other, net	—			10
Total deferred tax liabilities	124			103
Total net deferred tax assets	96			195
Valuation allowance	(24		)	(25		)
Total net deferred tax assets, net of valuation allowance	$	72		$	170

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)	2014			2013
Current deferred income taxes	$	133		$	166
Long-term deferred income taxes included in other assets	—			10
Long-term deferred income taxes included in other long-term obligations	(61		)	(6		)
Total net deferred tax assets, net of valuation allowance	$	72		$	170

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)	2014			2013			2012
Gross unrecognized tax benefits, beginning balance	$	39		$	38		$	41
Increases related to tax positions from prior fiscal years, including acquisitions	4			5			3
Decreases related to tax positions from prior fiscal years	(8		)	(12		)	(9		)
Increases related to tax positions taken during current fiscal year	5			9			3
Settlements with tax authorities	—			(1		)	—
Gross unrecognized tax benefits, ending balance	$	40		$	39		$	38