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Income Taxes (Tables) | 12 Months Ended
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Jul. 27, 2024
Income Tax Disclosure [Abstract] |
Provision for Income Taxes | The provision for income taxes consists of the following (in millions):
Years Ended | July 27, 2024 |  | July 29, 2023 |  | July 30, 2022
Federal: |  |  |  |  |
Current | $ | 1,939 |  |  | $ | 3,754 |  |  | $ | 2,203 |
Deferred | (883) |  |  | (1,955) |  |  | (176) |
| 1,056 |  |  | 1,799 |  |  | 2,027 |
State: |  |  |  |  |
Current | 388 |  |  | 623 |  |  | 458 |
Deferred | 11 |  |  | (175) |  |  | (156) |
| 399 |  |  | 448 |  |  | 302 |
Foreign: |  |  |  |  |
Current | 559 |  |  | 412 |  |  | 313 |
Deferred | (100) |  |  | 46 |  |  | 23 |
| 459 |  |  | 458 |  |  | 336 |
Total | $ | 1,914 |  |  | $ | 2,705 |  |  | $ | 2,665 |
Income Before Provision for Income Taxes | Income before provision for income taxes consists of the following (in millions):
Years Ended | July 27, 2024 |  | July 29, 2023 |  | July 30, 2022
United States | $ | 10,790 |  |  | $ | 14,074 |  |  | $ | 13,550 |
International | 1,444 |  |  | 1,244 |  |  | 927 |
Total | $ | 12,234 |  |  | $ | 15,318 |  |  | $ | 14,477 |
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 27, 2024 |  | July 29, 2023 |  | July 30, 2022
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
Effect of: |  |  |  |  |
State taxes, net of federal tax benefit | 2.8 |  |  | 2.4 |  |  | 1.7 |
Foreign income at other than U.S. rates | (0.3) |  |  | (0.1) |  |  | 0.8 |
Tax credits | (2.4) |  |  | (0.3) |  |  | (1.6) |
Foreign-derived intangible income deduction | (5.5) |  |  | (5.8) |  |  | (3.9) |
Stock-based compensation | 0.7 |  |  | 1.1 |  |  | 0.3 |
Other, net | (0.7) |  |  | (0.6) |  |  | 0.1 |
Total | 15.6 | % |  | 17.7 | % |  | 18.4 | %
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 27, 2024 |  | July 29, 2023 |  | July 30, 2022
Beginning balance | $ | 2,137 |  |  | $ | 3,101 |  |  | $ | 3,106 |
Additions based on tax positions related to the current year | 205 |  |  | 159 |  |  | 157 |
Additions for tax positions of prior years | 256 |  |  | 261 |  |  | 74 |
Reductions for tax positions of prior years | (344) |  |  | (265) |  |  | (81) |
Settlements | (53) |  |  | (1,063) |  |  | (69) |
Lapse of statute of limitations | (45) |  |  | (56) |  |  | (86) |
Ending balance | $ | 2,156 |  |  | $ | 2,137 |  |  | $ | 3,101 |
Components of Deferred Tax Assets and Liabilities | The following table presents the breakdown for net deferred tax assets (in millions):
| July 27, 2024 |  | July 29, 2023
Deferred tax assets | $ | 6,262 |  |  | $ | 6,576 |
Deferred tax liabilities | (76) |  |  | (62) |
Total net deferred tax assets | $ | 6,186 |  |  | $ | 6,514 |
The following table presents the components of the deferred tax assets and liabilities (in millions):
| July 27, 2024 |  | July 29, 2023
ASSETS |  |  |
Allowance for accounts receivable and returns | $ | 94 |  |  | $ | 81 |
Sales-type and direct-financing leases | 23 |  |  | 22 |
Inventory write-downs and capitalization | 530 |  |  | 452 |
Deferred foreign income | 277 |  |  | 218 |
IPR&D and purchased intangible assets | 1,039 |  |  | 1,082 |
Depreciation | 184 |  |  | 16 |
Deferred revenue | 2,034 |  |  | 1,801 |
Credits and net operating loss carryforwards | 1,863 |  |  | 1,218 |
Share-based compensation expense | 297 |  |  | 198 |
Accrued compensation | 275 |  |  | 328 |
Lease liabilities | 308 |  |  | 246 |
Capitalized research expenditures | 3,030 |  |  | 2,042 |
Other | 442 |  |  | 484 |
Gross deferred tax assets | 10,396 |  |  | 8,188 |
Valuation allowance | (1,024) |  |  | (754) |
Total deferred tax assets | 9,372 |  |  | 7,434 |
LIABILITIES |  |  |
Goodwill and purchased intangible assets | (2,808) |  |  | (602) |
ROU lease assets | (259) |  |  | (234) |
Other | (119) |  |  | (84) |
Total deferred tax liabilities | (3,186) |  |  | (920) |
Total net deferred tax assets | $ | 6,186 |  |  | $ | 6,514 |
Change in Valuation Allowance for Deferred Tax Assets | The changes in the valuation allowance for deferred tax assets are summarized as follows (in millions):
|  | July 27, 2024 |  | July 29, 2023 |  | July 30, 2022
Balance at beginning of fiscal year |  | $ | 754 |  |  | $ | 834 |  |  | $ | 771 |
Additions |  | 148 |  |  | 35 |  |  | 84 |
Additions from Splunk |  | 147 |  |  | — |  |  | — |
Deductions |  | (4) |  |  | (18) |  |  | (10) |
Write-offs |  | (20) |  |  | (93) |  |  | (12) |
Foreign exchange and other |  | (1) |  |  | (4) |  |  | 1 |
Balance at end of fiscal year |  | $ | 1,024 |  |  | $ | 754 |  |  | $ | 834 |

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