Income Taxes (Tables)

12 Months Ended

Jul. 31, 2015

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)	2015		2014		2013
Current:
Federal	$	253	$	358	$	328
State	20		21		30
Foreign	7		10		5
Total current	280		389		363
Deferred:
Federal	14		51		4
State	1		5		1
Foreign	4		2		10
Total deferred	19		58		15
Total provision for income taxes from continuing operations	$	299	$	447	$	378

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)	2015			2014		2013
United States	$	716		$	1,276	$	1,140
Foreign	(4		)	24		45
Total	$	712		$	1,300	$	1,185

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)	2015			2014			2013
Income from continuing operations before income taxes	$	712		$	1,300		$	1,185

Statutory federal income tax	$	249		$	455		$	415
State income tax, net of federal benefit	15			17			17
Federal research and experimentation credits	(19		)	(7		)	(23		)
Domestic production activities deduction	(19		)	(25		)	(29		)
Share-based compensation	15			8			6
Effects of non-U.S. operations	12			1			(2		)
Non-deductible goodwill	40			—			—
Other, net	6			(2		)	(6		)
Total provision for income taxes from continuing operations	$	299		$	447		$	378

Components of deferred tax assets and liabilities

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



	July 31,
(In millions)	2015			2014
Deferred tax assets:
Accruals and reserves not currently deductible	$	36		$	53
Deferred rent	10			8
Accrued and deferred compensation	52			48
Loss and tax credit carryforwards	44			41
Share-based compensation	52			50
Net basis difference in investments held for sale	122			—
Other, net	6			1
Total deferred tax assets	322			201
Deferred tax liabilities:
Intangible assets	87			97
Property and equipment	20			4
Total deferred tax liabilities	107			101
Total net deferred tax assets	215			100
Valuation allowance	(30		)	(20		)
Total net deferred tax assets, net of valuation allowance	$	185		$	80

Components of Net Deferred Tax Assets and Liabilities

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)	2015			2014
Current deferred income taxes	$	231		$	124
Long-term deferred income taxes included in other assets	4			—
Long-term deferred income taxes included in other long-term obligations	(50		)	(44		)
Total net deferred tax assets, net of valuation allowance	$	185		$	80

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)	2015			2014			2013
Gross unrecognized tax benefits, beginning balance	$	40		$	39		$	38
Increases related to tax positions from prior fiscal years, including acquisitions	15			4			5
Decreases related to tax positions from prior fiscal years	(1		)	(8		)	(12		)
Increases related to tax positions taken during current fiscal year	5			5			9
Settlements with tax authorities	(3		)	—			(1		)
Gross unrecognized tax benefits, ending balance	$	56		$	40		$	39