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Stockholders' Equity (Tables)
 12 Months Ended
Jul. 31, 2012
Equity [Abstract]  
Total share-based compensation expense
The following table summarizes the total share-based compensation expense that we recorded for the periods shown.

 
Twelve Months Ended July 31,
(In millions except per share amounts)
2012
 
2011
 
2010
 
 
 
 
 
 
Cost of product revenue
$
—

 
$
1

 
$
1

Cost of service and other revenue
7

 
6

 
7

Selling and marketing
60

 
46

 
41

Research and development
52

 
51

 
41

General and administrative
50

 
49

 
44

Discontinued operations
—

 
—

 
1

Total share-based compensation expense
169

 
153

 
135

Income tax benefit
(54
)
 
(53
)
 
(48
)
Decrease in net income
$
115

 
$
100

 
$
87

 
 
 
 
 
 
Decrease in net income per share:
 
 
 
 
 
Basic
$
0.39

 
$
0.33

 
$
0.28

Diluted
$
0.38

 
$
0.32

 
$
0.27
Assumptions used to estimate the fair value of stock options granted and shares purchased under Employee Stock Purchase Plan
We used the following assumptions to estimate the fair value of stock options granted and shares purchased under our Employee Stock Purchase Plan for the periods indicated:

 
Twelve Months Ended July 31,
 
2012
 
2011
 
2010
Assumptions for stock options:
 
 
 
 
 
Expected volatility (range)
27% - 33%

 
27% - 30%

 
24% - 30%

Weighted average expected volatility
29
%
 
28
%
 
28
%
Risk-free interest rate (range)
0.43% - 0.85%

 
0.87% - 1.91%

 
1.37% - 2.82%

Expected dividend yield (1)
1.02% - 1.20%

 
0% - 1.20%

 
0
%
 
 
 
 
 
 
Assumptions for ESPP:
 
 
 
 
 
Expected volatility (range)
24% - 33%

 
27% - 33%

 
22% - 29%

Weighted average expected volatility
29
%
 
29
%
 
26
%
Risk-free interest rate (range)
0.00% - 0.10%

 
0.05% - 0.16%

 
0.04% - 0.16%

Expected dividend yield
1.00% - 1.20%

 
0
%
 
0
%

__________________
(1)
Expected dividend yield assumption was zero for fiscal 2011 option grants prior to July 2011. In July 2011 we determined that it was probable that we would pay cash dividends in the future and as a result we began using an expected dividend yield assumption in our valuation models. See "Dividends on Common Stock" above for more information.
Activity under all share based compensation plans

A summary of activity under all share-based compensation plans for the fiscal periods indicated was as follows:

 
 
 
Options Outstanding
(Shares in thousands)
Shares
Available
for Grant
 
Number of
Shares
 
Weighted Average
Exercise Price
Per Share
Balance at July 31, 2009
8,086

 
45,674

 

$26.00

Additional shares authorized
9,000

 
—

 
—

Options assumed and converted in connection with acquisitions
—

 
372

 
3.08

Options granted
(6,338
)
 
6,338

 
35.93

Restricted stock units granted
(5,253
)
 
—

 
—

Options exercised
—

 
(17,212
)
 
24.00

Options canceled or expired (1)
2,089

 
(2,579
)
 
29.46

Restricted stock units forfeited (1)
1,177

 
—

 
—

Balance at July 31, 2010
8,761

 
32,593

 
28.45

Additional shares authorized
31,000

 
—

 
—

Options granted
(3,055
)
 
3,055

 
47.70

Restricted stock units granted
(8,501
)
 
—

 
—

Options exercised
—

 
(11,997
)
 
25.68

Options canceled or expired (1)
915

 
(972
)
 
31.44

Restricted stock units forfeited (1)
1,596

 
—

 
—

Balance at July 31, 2011
30,716

 
22,679

 
32.38

Options assumed and converted in connection with acquisitions
—

 
282

 
54.51

Options granted
(3,167
)
 
3,167

 
51.36

Restricted stock units granted (2)
(7,902
)
 
—

 
—

Options exercised
—

 
(7,513
)
 
28.41

Options canceled or expired (1)
559

 
(554
)
 
39.43

Restricted stock units forfeited (1)(2)
1,554

 
—

 
—

Balance at July 31, 2012
21,760

 
18,061

 

$37.49


__________________
(1)
Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
(2)
Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.
Options outstanding, exercisable and expected to vest, and exercisable
Options outstanding, exercisable and expected to vest, and exercisable as of July 31, 2012 were as follows:

 
Number
of Shares
(in thousands)
 
Weighted
Average
Remaining
Contractual
Life
(in Years)    
 
Weighted
Average
Exercise
Price per
Share      
 
Aggregate
Intrinsic
Value
(in millions)    
Options outstanding
18,061

 
4.91
 

$37.49

 

$344

Options exercisable and expected to vest
17,443

 
4.80
 

$37.07

 

$339

Options exercisable
10,926

 
3.45
 

$31.82

 

$270
Additional Information Regarding Stock Options Restricted Stock and Espp [Table Text Block]
Additional information regarding our stock options and ESPP shares is shown in the table below.

 
Twelve Months Ended July 31,
(In millions except per share amounts)
2012
 
2011
 
2010
 
 
 
 
 
 
Weighted average fair value of options granted (per share)
$
15.22

 
$
10.44

 
$
8.73

Total fair value of options vested
$
39

 
$
53

 
$
57

 
 
 
 
 
 
Aggregate intrinsic value of options exercised
$
202

 
$
261

 
$
157

 
 
 
 
 
 
Share-based compensation expense for stock options and ESPP
$
56

 
$
53

 
$
67

Total tax benefit for stock option and ESPP share-based compensation
$
15

 
$
17

 
$
24

 
 
 
 
 
 
Cash received from option exercises
$
213

 
$
308

 
$
413

Cash tax benefits realized related to tax deductions for non-qualified option exercises and disqualifying dispositions under all share-based payment arrangements
$
72

 
$
99

 
$
61
Summary of restricted stock unit activity
A summary of restricted stock unit (RSU) activity for the periods indicated was as follows:

(Shares in thousands)
Number
of Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested at July 31, 2009
9,398

 

$27.06

Granted
5,253

 
36.24

Restricted stock units assumed and converted in connection with acquisitions
231

 
29.14

Vested
(2,172
)
 
29.30

Forfeited
(1,179
)
 
26.46

Nonvested at July 31, 2010
11,531

 
30.93

Granted
3,855

 
47.02

Vested
(3,474
)
 
26.33

Forfeited
(857
)
 
31.73

Nonvested at July 31, 2011
11,055

 
37.92

Granted
3,436

 
55.02

Restricted stock units assumed and converted in connection with acquisitions
575

 
54.51

Vested
(4,763
)
 
34.13

Forfeited
(696
)
 
39.56

Nonvested at July 31, 2012
9,607

 
$
46.79
Additional information regarding restricted stock units
Additional information regarding our RSUs and restricted stock is shown in the table below.

 
Twelve Months Ended July 31,
(In millions)
2012
 
2011
 
2010
 
 
 
 
 
 
Total fair value of RSUs vested
$
258

 
$
150

 
$
64

 
 
 
 
 
 
Share-based compensation for RSUs and restricted stock
$
113

 
$
100

 
$
68

Total tax benefit related to RSU and restricted stock share-based compensation expense
$
39

 
$
36

 
$
25

 
 
 
 
 
 
Cash tax benefits realized for tax deductions for RSUs and restricted stock
$
46

 
$
36

 
$
24