Income Taxes (Tables)

12 Months Ended

Apr. 25, 2014

Income Tax Disclosure [Abstract]

Components of Earnings from Continuing Operations before Income Taxes, Based on Tax Jurisdiction

The components of earnings from continuing operations before income taxes, based on tax jurisdiction, are as follows:

	Fiscal Year
(in millions)	2014		2013		2012
U.S.	$	1,690	$	1,806	$	1,620
International	2,015		2,445		2,525
Earnings from continuing operations before income taxes	$	3,705	$	4,251	$	4,145

Provision for Income Taxes

The provision for income taxes from continuing operations consists of the following:

	Fiscal Year
(in millions)	2014			2013		2012
Current tax expense:
U.S.	$	532		$	509	$	664
International	248			219		231
Total current tax expense	780			728		895
Deferred tax expense (benefit):
U.S.	(175		)	46		(138		)
International	35			10		(27		)
Net deferred tax expense (benefit)	(140		)	56		(165		)
Total provision for income taxes	$	640		$	784	$	730

Schedule of Deferred Tax Assets and Liabilities

Tax assets (liabilities), shown before jurisdictional netting of deferred tax assets (liabilities), are comprised of the following:

(in millions)	April 25, 2014			April 26, 2013
Deferred tax assets:
Net operating loss, capital loss, and credit carryforwards	$	487		$	423
Other accrued liabilities	205			140
Accrued compensation	201			98
Pension and post-retirement benefits	194			239
Stock-based compensation	171			223
Other	142			200
Inventory	118			121
Federal and state benefit on uncertain tax positions	79			57
Unrealized loss on available-for-sale securities and derivative financial instruments	29			—
Gross deferred tax assets	1,626			1,501
Valuation allowance	(397		)	(313		)
Total deferred tax assets	1,229			1,188
Deferred tax liabilities:
Intangible assets	(652		)	(712		)
Basis impairment	(225		)	(214		)
Realized loss on derivative financial instruments	(110		)	(110		)
Other	(24		)	(29		)
Accumulated depreciation	(20		)	(56		)
Unrealized gain on available-for-sale securities and derivative financial instruments	—			(87		)
Total deferred tax liabilities	(1,031		)	(1,208		)
Prepaid income taxes	320			321
Income tax receivables	113			114
Tax assets, net	$	631		$	415
Reported as (after valuation allowance and jurisdictional netting):
Tax assets	$	736		$	539
Long-term tax assets	300			232
Deferred tax liabilities	(19		)	(16		)
Long-term deferred tax liabilities	(386		)	(340		)
Tax assets, net	$	631		$	415

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective income tax rate from continuing operations varied from the U.S. federal statutory tax rate as follows:

	Fiscal Year
	2014		2013		2012
U.S. federal statutory tax rate	35.0	%	35.0	%	35.0	%
Increase (decrease) in tax rate resulting from:
U.S. state taxes, net of federal tax benefit	0.6		0.5		0.9
Research and development credit	(0.5	)	(1.1	)	(0.6	)
Domestic production activities	(0.4	)	(0.3	)	(0.5	)
International	(17.7	)	(16.7	)	(16.9	)
Puerto Rico Excise Tax	(1.6	)	(1.3	)	(1.4	)
Impact of restructuring charges, net, certain litigation charges, net, and acquisition-related items	5.6		2.0		0.3
Reversal of excess tax accruals	(1.9	)	—		(0.8	)
Valuation allowance release	—		(0.2	)	(0.8	)
Other, net	(1.8	)	0.5		2.4
Effective tax rate	17.3	%	18.4	%	17.6	%

Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of unrecognized tax benefits for fiscal years 2014, 2013, and 2012 is as follows:

	Fiscal Year
(in millions)	2014			2013			2012
Gross unrecognized tax benefits at beginning of fiscal year	$	1,068		$	917		$	769
Gross increases:
Prior year tax positions	64			12			47
Current year tax positions	166			169			171
Gross decreases:
Prior year tax positions	(58		)	(21		)	(53		)
Settlements	(66		)	(6		)	(4		)
Statute of limitation lapses	(2		)	(3		)	(13		)
Gross unrecognized tax benefits at end of fiscal year	$	1,172		$	1,068		$	917