Income Taxes (Tables)

12 Months Ended

Jul. 31, 2012

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)	2012			2011		2010
Current:
Federal	$	375		$	279	$	245
State	30			44		46
Foreign	2			5		33
Total current	407			328		324
Deferred:
Federal	(27		)	3		(15		)
State	(4		)	7		(1		)
Foreign	8			6		(16		)
Total deferred	(23		)	16		(32		)
Total provision for income taxes from continuing operations	$	384		$	344	$	292

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)	2012		2011		2010
United States	$	1,109	$	949	$	820
Foreign	42		47		36
Total	$	1,151	$	996	$	856

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)	2012			2011			2010
Income from continuing operations before income taxes	$	1,151		$	996		$	856

Statutory federal income tax	$	403		$	348		$	300
State income tax, net of federal benefit	16			34			29
Federal research and experimentation credits	(9		)	(25		)	(8		)
Domestic production activities deduction	(27		)	(25		)	(14		)
Share-based compensation	7			6			4
Effects of non-U.S. operations	(5		)	(4		)	(20		)
Non-deductible goodwill	4			8			—
Other, net	(5		)	2			1
Total provision for income taxes from continuing operations	$	384		$	344		$	292

Components of deferred tax assets and liabilities

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



	July 31,
(In millions)	2012			2011
Deferred tax assets:
Accruals and reserves not currently deductible	$	45		$	28
Deferred rent	11			9
Accrued and deferred compensation	50			33
Loss and tax credit carryforwards	45			39
Property and equipment	14			11
Share-based compensation	98			88
Net basis difference in investment held for sale	36			—
Other, net	—			1
Total deferred tax assets	299			209
Deferred tax liabilities:
Intangible assets	90			51
Other, net	11			1
Total deferred tax liabilities	101			52
Total net deferred tax assets	198			157
Valuation allowance	(8		)	(8		)
Total net deferred tax assets, net of valuation allowance	$	190		$	149

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)	2012		2011
Current deferred income taxes	$	184	$	94
Long-term deferred income taxes	6		55
Total net deferred tax assets, net of valuation allowance	$	190	$	149

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)	2012			2011		2010
Gross unrecognized tax benefits, beginning balance	$	41		$	35	$	40
Increases related to tax positions from prior fiscal years, including acquisitions	3			2		3
Decreases related to tax positions from prior fiscal years	(9		)	—		(5		)
Increases related to tax positions taken during current fiscal year	3			4		3
Lapses of statutes of limitations	—			—		(6		)
Gross unrecognized tax benefits, ending balance	$	38		$	41	$	35