Income Taxes

3 Months Ended

Jul. 27, 2012

Income Tax Disclsosure [Abstract]

Income Taxes

Note 15 – Income Taxes

The Company's effective tax rates from continuing operations forthe three months ended July 27, 2012 and July 29, 2011,were20.59 percent and 19.55 percent, respectively. The increase in the Company's effective tax rate for the three months endedJuly 27, 2012 was primarily due to the expiration of the U.S. federal research and development tax credit on December 31, 2011 and the tax cost associated with the finalization of certain income tax returns and changes to uncertain tax position reserves recorded during the quarter ended July 27, 2012.

During the three months ended July 27, 2012, the Company recorded a $5 million net cost associated with the finalization of certain income tax returns and changes to uncertain tax position reserves. These tax adjustments are operational in nature and are recorded in provision for income taxes on the condensed consolidated statement of earnings.

During the three months ended July 27, 2012, the Company's gross unrecognized tax benefits increased from $917 million to $932 million. In addition, the Company has accrued interest and penalties of $129million as of July 27, 2012. If all of the Company's unrecognized tax benefits were recognized, approximately $873 million would impact the Company's effective tax rate. The Company records the gross unrecognized tax benefit as a long-term liability as it does not expect significant payments to occur or the total amount of unrecognized tax benefits to change significantly over the next 12 months.

The Company will continue to recognize interest and penalties related to income tax matters in the provision for income taxes in the condensed consolidated statements of earnings and record the liability in the current or long-term accrued income taxes in the condensed consolidated balance sheets, as appropriate.

As of July 27, 2012, there were no changes to significant unresolved matters with the U.S. Internal Revenue Service or foreign tax authorities from what the Company disclosed in its Annual Report on Form 10-K for the year ended April 27, 2012.