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Income Taxes (Tables) | 12 Months Ended
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Jul. 31, 2021
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The provision for income taxes consists of the following (in millions):
Years Ended | July 31, 2021 |  | July 25, 2020 |  | July 27, 2019
Federal: |  |  |  |  |
Current | $ | 1,959 |  |  | $ | 1,101 |  |  | $ | 1,760 |
Deferred | (203) |  |  | (374) |  |  | (84) |
| 1,756 |  |  | 727 |  |  | 1,676 |
State: |  |  |  |  |
Current | 513 |  |  | 264 |  |  | 302 |
Deferred | (46) |  |  | 287 |  |  | (2) |
| 467 |  |  | 551 |  |  | 300 |
Foreign: |  |  |  |  |
Current | 583 |  |  | 1,429 |  |  | 1,238 |
Deferred | (135) |  |  | 49 |  |  | (264) |
| 448 |  |  | 1,478 |  |  | 974 |
Total | $ | 2,671 |  |  | $ | 2,756 |  |  | $ | 2,950 |
Income Before Provision for Income Taxes | Income before provision for income taxes consists of the following (in millions):
Years Ended | July 31, 2021 |  | July 25, 2020 |  | July 27, 2019
United States | $ | 12,335 |  |  | $ | 7,534 |  |  | $ | 7,611 |
International | 927 |  |  | 6,436 |  |  | 6,960 |
Total | $ | 13,262 |  |  | $ | 13,970 |  |  | $ | 14,571 |
Difference Between Income Taxes at Federal Statutory Rate and Provision for Income Taxes | The items accounting for the difference between income taxes computed at the federal statutory rate and the provision for income taxes consist of the following:
Years Ended | July 31, 2021 |  | July 25, 2020 |  | July 27, 2019
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of: |  |  |  |  |
State taxes, net of federal tax benefit | 2.7 |  |  | 3.5 |  |  | 2.0 |
Foreign income at other than U.S. rates | 1.5 |  |  | (1.5) |  |  | (4.5) |
Tax credits | (1.4) |  |  | (0.9) |  |  | (1.7) |
Foreign-derived intangible income deduction | (4.2) |  |  | (2.6) |  |  | (1.3) |
Stock-based compensation | 0.6 |  |  | (0.1) |  |  | (0.6) |
Impact of the Tax Act | — |  |  | — |  |  | 6.1 |
Other, net | (0.1) |  |  | 0.3 |  |  | (0.8) |
Total | 20.1 | % |  | 19.7 | % |  | 20.2 | %
Aggregate Changes in Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows (in millions):
Years Ended | July 31, 2021 |  | July 25, 2020 |  | July 27, 2019
Beginning balance | $ | 2,518 |  |  | $ | 1,925 |  |  | $ | 2,000 |
Additions based on tax positions related to the current year | 224 |  |  | 188 |  |  | 185 |
Additions for tax positions of prior years | 618 |  |  | 554 |  |  | 84 |
Reductions for tax positions of prior years | (122) |  |  | (136) |  |  | (283) |
Settlements | (93) |  |  | (4) |  |  | (38) |
Lapse of statute of limitations | (39) |  |  | (9) |  |  | (23) |
Ending balance | $ | 3,106 |  |  | $ | 2,518 |  |  | $ | 1,925 |
Components of Deferred Tax Assets and Liabilities | The following table presents the breakdown for net deferred tax assets (in millions):
| July 31, 2021 |  | July 25, 2020
Deferred tax assets | $ | 4,360 |  |  | $ | 3,990 |
Deferred tax liabilities | (134) |  |  | (81) |
Total net deferred tax assets | $ | 4,226 |  |  | $ | 3,909 |
The following table presents the components of the deferred tax assets and liabilities (in millions):
| July 31, 2021 |  | July 25, 2020
ASSETS |  |  |
Allowance for accounts receivable and returns | $ | 68 |  |  | $ | 110 |
Sales-type and direct-financing leases | 157 |  |  | 179 |
Inventory write-downs and capitalization | 392 |  |  | 350 |
Deferred foreign income | 164 |  |  | 253 |
IPR&D and purchased intangible assets | 1,195 |  |  | 1,289 |
Deferred revenue | 1,526 |  |  | 1,182 |
Credits and net operating loss carryforwards | 1,264 |  |  | 1,105 |
Share-based compensation expense | 123 |  |  | 135 |
Accrued compensation | 333 |  |  | 353 |
Lease liabilities | 277 |  |  | 240 |
Capitalized research expenditures | 303 |  |  | 223 |
Other | 454 |  |  | 348 |
Gross deferred tax assets | 6,256 |  |  | 5,767 |
Valuation allowance | (771) |  |  | (700) |
Total deferred tax assets | 5,485 |  |  | 5,067 |
LIABILITIES |  |  |
Goodwill and purchased intangible assets | (686) |  |  | (577) |
Depreciation | (164) |  |  | (179) |
Unrealized gains on investments | (112) |  |  | (119) |
ROU lease assets | (260) |  |  | (222) |
Other | (37) |  |  | (61) |
Total deferred tax liabilities | (1,259) |  |  | (1,158) |
Total net deferred tax assets | $ | 4,226 |  |  | $ | 3,909 |

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