Income Taxes (Tables)

6 Months Ended

Jan. 31, 2016

Provision for Income Taxes and Effective Tax Rate

The following table presents the provision for income taxes and our effective tax rate for the three and six months ended January 31, 2016 and 2015:

	Three Months Ended						Six Months Ended
	January 31,						January 31,
(in millions except percentages)	2016			2015			2016			2015
Provision for income taxes	$	1.0		$	2.3		$	1.1		$	3.7
Effective tax rate		-51	%		19	%		-244	%		22	%

Reconciliation of Income Taxes at United States Rate to Effective Tax Rate

A reconciliation of income taxes at the U.S. statutory rate to the effective tax rate follows:

	Six Months Ended			Six Months Ended
	January 31,			January 31,
(in %)	2016			2015
U.S. Federal statutory tax rate (%)		35			35
State income taxes, net of federal tax benefit		(2	)		(1	)
Domestic production benefit		—			(1	)
General business credit (U.S. R&D)		81			(6	)
Valuation allowance		1			1
Effect of international operations		(106	)		(8	)
(Increase) decrease in tax reserves		(332	)		—
Other items, net		79			2
Effective tax rate (%)		(244	)		22

Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes

“Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” The effects of the accounting change on the July 31, 2015 Consolidated Balance Sheets were as follows:

	July 31,
(in millions)	2015
	Revised		Reported
Current deferred tax asset	$	—	$	7,987
Non-current deferred tax asset		9,904		5,308
Non-current deferred tax liability		—		(3,391	)
Net deferred tax assets	$	9,904	$	9,904