Income Taxes (Tables)

12 Months Ended

Jul. 31, 2011

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)	2011		2010			2009
Current:
Federal	$	268	$	231		$	160
State	43		44			7
Foreign	5		33			12
Total current	316		308			179
Deferred:
Federal	3		(15		)	24
State	7		(1		)	7
Foreign	6		(16		)	(4		)
Total deferred	16		(32		)	27
Total provision for income taxes from continuing operations	$	332	$	276		$	206

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)	2011		2010		2009
United States	$	919	$	779	$	627
Foreign	47		36		26
Total	$	966	$	815	$	653

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)	2011			2010			2009
Income from continuing operations before income taxes	$	966		$	815		$	653

Statutory federal income tax	$	338		$	285		$	229
State income tax, net of federal benefit	33			27			9
Federal research and experimentation credits	(25		)	(8		)	(20		)
Domestic production activities deduction	(25		)	(14		)	(11		)
Share-based compensation	6			4			4
Tax exempt interest	(1		)	(2		)	(5		)
Effects of non-U.S. operations	(4		)	(20		)	—
Non-deductible goodwill impairment charge	8			—			—
Other, net	2			4			—
Total provision for income taxes from continuing operations	$	332		$	276		$	206

Components of deferred tax assets and liabilities

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



	July 31,
(In millions)	2011			2010
Deferred tax assets:
Accruals and reserves not currently deductible	$	28		$	30
Deferred rent	9			10
Accrued and deferred compensation	33			18
Loss and tax credit carryforwards	39			63
Property and equipment	11			8
Share-based compensation	88			89
Other, net	1			4
Total deferred tax assets	209			222
Deferred tax liabilities:
Intangible assets	51			55
Other, net	1			1
Total deferred tax liabilities	52			56
Total net deferred tax assets	157			166
Valuation allowance	(8		)	(8		)
Total net deferred tax assets, net of valuation allowance	$	149		$	158

Components of total net deferred tax assets net of valuation allowance

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)	2011		2010
Current deferred income taxes	$	94	$	117
Long-term deferred income taxes	55		41
Total net deferred tax assets, net of valuation allowance	$	149	$	158

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)	2011		2010			2009
Gross unrecognized tax benefits, beginning balance	$	35	$	40		$	45
Increases related to tax positions from prior fiscal years, including acquisitions	2		3			10
Decreases related to tax positions from prior fiscal years	—		(5		)	(10		)
Increases related to tax positions taken during current fiscal year	4		3			4
Settlements with tax authorities	—		—			(8		)
Lapses of statutes of limitations	—		(6		)	(1		)
Gross unrecognized tax benefits, ending balance	$	41	$	35		$	40