Interest and Other Income
Fiscal Fiscal Fiscal
(In millions) 2013 2012 2011
Gain on disposition of stock warrants - 10
Other (3 ) 1
Total interest and other income, net
$ 7 $ 20
Interest and other income, net consists primarily of interest income and net gains and losses on executive deferred compensation plan assets. Lower interest rates and stable average invested balances resulted in lower interest income in fiscal 2013 compared with fiscal 2012. Lower average invested balances and lower interest rates resulted in slightly lower interest income in fiscal 2012 compared with fiscal 2011. In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating costs and expenses. The total amounts recorded in operating costs and expenses are approximately equal to the total amounts recorded in interest and other income.
In connection with our acquisition of
Effective Tax Rate
Our effective tax rates for fiscal 2013, fiscal 2012, and fiscal 2011 were approximately 32%, 33%, and 34%. The differences between these rates and the federal statutory rate of 35% were primarily related to the tax benefit received from the domestic production activities deduction and the federal research and experimentation credit, partially offset by state income taxes. See Note 11 to the financial statements in Item 8 of this Report for more information about our effective tax rates. Net Deferred Tax Assets At
July 31, 2013, we had net deferred tax assets of $170 millionwhich included a valuation allowance of $25 millionfor the benefits of federal and state net basis difference in investments held for sale, state capital and operating loss carryforwards, and state tax credit carryforwards. We recorded the valuation allowance to reflect uncertainties about whether we will be able to utilize some of our deferred tax assets before they expire. While we believe our current valuation allowance is sufficient, we could in the future be required to increase the valuation allowance to take into account additional deferred tax assets that we 45
Tables of Contents
may be unable to realize. We assess the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on our estimates of future sources of taxable income for the jurisdictions in which we operate and the periods over which our deferred tax assets will be realizable. See Note 11 to the financial statements in Item 8 of this Report for more information.