INTUIT INC, 10-Q filed on 11/21/2014
Quarterly Report
Document and Entity Information Document
3 Months Ended
Oct. 31, 2014
Nov. 14, 2014
Document and Entity Information [Abstract]
 
 
Entity Registrant Name
INTUIT INC 
 
Entity Central Index Key
0000896878 
 
Current Fiscal Year End Date
--07-31 
 
Entity Filer Category
Large Accelerated Filer 
 
Document Type
10-Q 
 
Document Period End Date
Oct. 31, 2014 
 
Document Fiscal Year Focus
2015 
 
Document Fiscal Period Focus
Q1 
 
Amendment Flag
false 
 
Entity Common Stock, Shares Outstanding
 
285,496,420 
Condensed Consolidated Statements of Operations (Unaudited) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Net revenue:
 
 
Product
$ 233 
$ 229 
Service and other
439 
393 
Total net revenue
672 
622 
Cost of revenue:
 
 
Cost of product revenue
34 
29 
Cost of service and other revenue
131 
108 
Amortization of acquired technology
10 
6 
Selling and marketing
281 
258 
Research and development
200 
176 
General and administrative
124 
118 
Amortization of other acquired intangible assets
6 
4 
Total costs and expenses
786 
699 
Operating loss from continuing operations
(114)
(77)
Interest expense
(7)
(8)
Interest and other income, net
0 
5 
Loss before income taxes
(121)
(80)
Income tax benefit
(37)
(23)
Net loss from continuing operations
(84)
(57)
Net income from discontinued operations
0 
46 
Net loss
$ (84)
$ (11)
Basic net loss per share from continuing operations (in dollars per share)
$ (0.29)
$ (0.20)
Basic net income per share from discontinued operations (in dollars per share)
$ 0.00 
$ 0.16 
Basic net loss per share (in dollars per share)
$ (0.29)
$ (0.04)
Shares used in basic per share calculations (in shares)
286 
288 
Diluted net loss per share from continuing operations (in dollars per share)
$ (0.29)
$ (0.20)
Diluted net income per share from discontinued operations (in dollars per share)
$ 0.00 
$ 0.16 
Diluted net loss per share (in dollars per share)
$ (0.29)
$ (0.04)
Shares used in diluted per share calculations (in shares)
286 
288 
Dividends declared per common share (in dollars per share)
$ 0.25 
$ 0.19 
Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Statement of Comprehensive Income [Abstract]
 
 
Net loss
$ (84)
$ (11)
Other comprehensive income (loss), net of income taxes:
 
 
Unrealized gains on available-for-sale debt securities
0 
2 
Unrealized gains on available-for-sale equity securities
0 
(1)
Foreign currency translation gains (losses)
(5)
(2)
Total other comprehensive income (loss), net
(5)
(1)
Comprehensive loss
$ (89)
$ (12)
Condensed Consolidated Balance Sheets (Unaudited) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Current assets:
 
 
Cash and cash equivalents
$ 542 
$ 849 
Investments
1,047 
1,065 
Accounts receivable, net
140 
134 
Income taxes receivable
91 
35 
Deferred income taxes
140 
133 
Prepaid expenses and other current assets
119 
116 
Current assets before funds held for customers
2,079 
2,332 
Funds held for customers
358 
289 
Total current assets
2,437 
2,621 
Long-term investments
31 
31 
Property and equipment, net
629 
606 
Goodwill
1,639 
1,635 
Acquired intangible assets, net
186 
199 
Other assets
116 
109 
Total assets
5,038 
5,201 
Current liabilities:
 
 
Accounts payable
198 
161 
Accrued compensation and related liabilities
139 
278 
Deferred revenue
511 
526 
Other current liabilities
154 
167 
Current liabilities before customer fund deposits
1,002 
1,132 
Customer fund deposits
358 
289 
Total current liabilities
1,360 
1,421 
Long-term debt
499 
499 
Long-term deferred revenue
52 
10 
Other long-term obligations
200 
193 
Total liabilities
2,111 
2,123 
Commitments and contingencies
   
   
Stockholders’ equity:
 
 
Preferred stock
0 
0 
Common stock and additional paid-in capital
3,687 
3,561 
Treasury stock, at cost
(6,544)
(6,430)
Accumulated other comprehensive loss
(7)
(2)
Retained earnings
5,791 
5,949 
Total stockholders’ equity
2,927 
3,078 
Total liabilities and stockholders’ equity
$ 5,038 
$ 5,201 
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $)
In Millions, except Share data in Thousands, unless otherwise specified
Total
USD ($)
Shares of Common Stock [Member]
Common Stock and Additional Paid In Capital [Member]
USD ($)
Treasury Stock [Member]
USD ($)
Accumulated Other Comprehensive Loss [Member]
USD ($)
Retained Earnings [Member]
USD ($)
Beginning Balance at Jul. 31, 2013
$ 3,531 
 
$ 3,201 
$ (4,952)
$ 20 
$ 5,262 
Beginning Balance, shares at Jul. 31, 2013
 
299,503 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive loss
(12)
 
 
 
(1)
(11)
Issuance of stock under employee stock plans, shares
 
2,801 
 
 
 
 
Issuance of stock under employee stock plans
80 
 
(6)
86 
 
 
Stock repurchases under stock repurchase programs, shares
(17,600)
(17,607)
 
 
 
 
Stock repurchases under stock repurchase programs
(1,400)
 
(280)
(1,120)
 
 
Cash dividends declared
(55)
 
 
 
 
(55)
Tax benefit from share-based compensation plans
33 
 
33 
 
 
 
Share-based compensation expense
47 
 
47 
 
 
 
Ending Balance at Oct. 31, 2013
2,224 
 
2,995 
(5,986)
19 
5,196 
Ending Balance, shares at Oct. 31, 2013
 
284,697 
 
 
 
 
Beginning Balance at Jul. 31, 2014
3,078 
 
3,561 
(6,430)
(2)
5,949 
Beginning Balance, shares at Jul. 31, 2014
 
284,950 
 
 
 
 
Increase (Decrease) in Stockholders' Equity [Roll Forward]
 
 
 
 
 
 
Comprehensive loss
(89)
 
 
 
(5)
(84)
Issuance of stock under employee stock plans, shares
 
1,787 
 
 
 
 
Issuance of stock under employee stock plans
47 
 
47 
 
 
 
Stock repurchases under stock repurchase programs, shares
(1,300)
(1,318)
 
 
 
 
Stock repurchases under stock repurchase programs
(114)
 
 
(114)
 
 
Cash dividends declared
(74)
 
 
 
 
(74)
Tax benefit from share-based compensation plans
18 
 
18 
 
 
 
Share-based compensation expense
61 
 
61 
 
 
 
Ending Balance at Oct. 31, 2014
$ 2,927 
 
$ 3,687 
$ (6,544)
$ (7)
$ 5,791 
Ending Balance, shares at Oct. 31, 2014
 
285,419 
 
 
 
 
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical)
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Statement of Stockholders' Equity [Abstract]
 
 
Dividends declared per common share (in dollars per share)
$ 0.25 
$ 0.19 
Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Cash flows from operating activities:
 
 
Net loss
$ (84)
$ (11)
Adjustments to reconcile net loss to net cash used in operating activities:
 
 
Depreciation
36 
39 
Amortization of acquired intangible assets
18 
11 
Share-based compensation expense
61 
47 
Pre-tax gain on sale of discontinued operations
0 
(40)
Deferred income taxes
(6)
77 
Tax benefit from share-based compensation plans
18 
33 
Excess tax benefit from share-based compensation plans
(18)
(33)
Other
12 
5 
Total adjustments
121 
139 
Changes in operating assets and liabilities:
 
 
Accounts receivable
(4)
(11)
Income taxes receivable
(56)
(143)
Prepaid expenses and other assets
(3)
(44)
Accounts payable
32 
32 
Accrued compensation and related liabilities
(139)
(103)
Deferred revenue
28 
(29)
Other liabilities
(13)
(20)
Total changes in operating assets and liabilities
(155)
(318)
Net cash used in operating activities
(118)
(190)
Cash flows from investing activities:
 
 
Purchases of available-for-sale debt securities
(365)
(163)
Sales of available-for-sale debt securities
147 
71 
Maturities of available-for-sale debt securities
229 
79 
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations
(69)
7 
Net change in customer fund deposits
69 
(7)
Purchases of property and equipment
(55)
(47)
Acquisitions of businesses, net of cash acquired
(9)
(9)
Proceeds from divestiture of businesses
0 
1,025 
Other
(8)
(7)
Net cash provided by (used in) investing activities
(61)
949 
Cash flows from financing activities:
 
 
Net proceeds from issuance of stock under employee stock plans
47 
72 
Purchases of treasury stock
(114)
(1,400)
Cash dividends paid to stockholders
(74)
(55)
Excess tax benefit from share-based compensation plans
18 
33 
Net cash used in financing activities
(123)
(1,350)
Effect of exchange rates on cash and cash equivalents
(5)
(1)
Net decrease in cash and cash equivalents
(307)
(592)
Cash and cash equivalents at beginning of period
849 
1,009 
Cash and cash equivalents at end of period
$ 542 
$ 417 
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies
Description of Business and Summary of Significant Accounting Policies
Description of Business
Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals. With flagship products and services that include QuickBooks, TurboTax, Quicken and Mint, we help customers solve important business and financial management problems such as running a small business, paying bills, filing income tax returns, and managing personal finances. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.
Basis of Presentation
These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented.
On June 16, 2014 we acquired Check Inc. We have included the results of operations for this company in our consolidated results of operations from the date of acquisition.
As discussed in Note 4, we sold our Intuit Financial Services (IFS) and Intuit Health businesses in August 2013. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows. Unless noted otherwise, discussions in these notes pertain to our continuing operations.
These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. Results for the three months ended October 31, 2014 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2015 or any other future period.
Seasonality
Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels.
Significant Accounting Policies
We describe our significant accounting policies in Note 1 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. See the discussion of changes to our policy for recognizing product revenue below. There have been no other changes to our significant accounting policies during the first three months of fiscal 2015.
Revenue Recognition - Product Revenue
Prior to fiscal 2015, we recognized revenue from the sale of our packaged software products when legal title transferred. This was generally when our customers downloaded products from the Web, when we shipped the products or, in the case of certain agreements, when products were delivered to retailers. Beginning in fiscal 2015, we began delivering ongoing releases for our future QuickBooks and Quicken desktop products and for our future Professional Tax solutions. As a result, revenue for these QuickBooks and Quicken offerings will be recognized as services are provided over approximately three years and revenue for our Professional Tax solutions will be recognized as services are provided over the tax year.
Use of Estimates

In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of reserves for product returns and rebates, the collectibility of accounts receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.
Computation of Net Income (Loss) Per Share
We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.
We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.
All of the RSUs we grant have dividend rights. Since the dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per share.
In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.
The following table presents the composition of shares used in the computation of basic and diluted net loss per share for the periods indicated.
 
Three Months Ended
(In millions, except per share amounts)
October 31,
2014
 
October 31,
2013
Numerator:
 
 
 
Net loss from continuing operations
$
(84
)
 
$
(57
)
Net income from discontinued operations
—

 
46

Net loss
$
(84
)
 
$
(11
)
 
 
 
 
Denominator:
 
 
 
Shares used in basic per share amounts:
 
 
 
Weighted average common shares outstanding
286

 
288

 
 
 
 
Shares used in diluted per share amounts:
 
 
 
Weighted average common shares outstanding
286

 
288

Dilutive common equivalent shares from stock options
 
 
 
and restricted stock awards
—

 
—

Dilutive weighted average common shares outstanding
286

 
288

 
 
 
 
Basic and diluted net loss per share:
 
 
 
Basic net loss per share from continuing operations
$
(0.29
)
 
$
(0.20
)
Basic net income per share from discontinued operations
—

 
0.16

Basic net loss per share
$
(0.29
)
 
$
(0.04
)
 
 
 
 
Diluted net loss per share from continuing operations
$
(0.29
)
 
$
(0.20
)
Diluted net income per share from discontinued operations
—

 
0.16

Diluted net loss per share
$
(0.29
)
 
$
(0.04
)
 
 
 
 
Shares excluded from computation of diluted net loss per share:
 
 
 
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding
if net income had been reported in the period
16

 
17

 
 
 
 
Weighted average stock options and restricted stock units excluded from
computation due to anti-dilutive effect
2

 
3


Concentration of Credit Risk and Significant Customers
No customer accounted for 10% or more of total net revenue in the three months ended October 31, 2014 or October 31, 2013. No customer accounted for 10% or more of gross accounts receivable at October 31, 2014 or July 31, 2014.
Recent Accounting Pronouncements
ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”
In April 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures for discontinued operations and disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2015.
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”
In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than is required under present U.S. GAAP. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is not permitted under U.S. GAAP. ASU 2014-09 allows adoption using either of two methods: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements
The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.
The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:
•
Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.
•
Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.
•
Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.
Assets and Liabilities Measured at Fair Value on a Recurring Basis
The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.
 
October 31, 2014
 
July 31, 2014
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents, primarily money market funds
$
431

 
$
—

 
$
—

 
$
431

 
$
652

 
$
—

 
$
—

 
$
652

Available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
—

 
647

 
—

 
647

 
—

 
701

 
—

 
701

Corporate notes
—

 
565

 
—

 
565

 
—

 
466

 
—

 
466

U.S. agency securities
—

 
10

 
—

 
10

 
—

 
42

 
—

 
42

Municipal auction rate securities
—

 
—

 
21

 
21

 
—

 
—

 
21

 
21

Total available-for-sale securities
—

 
1,222

 
21

 
1,243

 
—

 
1,209

 
21

 
1,230

Total assets measured at fair value on a recurring basis
$
431

 
$
1,222

 
$
21

 
$
1,674

 
$
652

 
$
1,209

 
$
21

 
$
1,882

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes (1)
$
—

 
$
550

 
$
—

 
$
550

 
$
—

 
$
556

 
$
—

 
$
556

______________________________
(1)
Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In cash and cash equivalents
$
248

 
$
—

 
$
—

 
$
248

 
$
507

 
$
—

 
$
—

 
$
507

In funds held for customers
183

 
—

 
—

 
183

 
145

 
—

 
—

 
145

Total cash equivalents
$
431

 
$
—

 
$
—

 
$
431

 
$
652

 
$
—

 
$
—

 
$
652

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In investments
$
—

 
$
1,047

 
$
—

 
$
1,047

 
$
—

 
$
1,065

 
$
—

 
$
1,065

In funds held for customers
—

 
175

 
—

 
175

 
—

 
144

 
—

 
144

In long-term investments
—

 
—

 
21

 
21

 
—

 
—

 
21

 
21

Total available-for-sale securities
$
—

 
$
1,222

 
$
21

 
$
1,243

 
$
—

 
$
1,209

 
$
21

 
$
1,230


We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes, and U.S. agency securities. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Our fair value processes include controls that are designed to ensure that we record appropriate fair values for our Level 2 investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of pricing sources and models, review of key model inputs, analysis of period-over-period price fluctuations, and independent recalculation of prices where appropriate.
Financial liabilities whose fair values we measure using Level 2 inputs consist of debt. See Note 6, “Long-Term Obligations,” for more information. We measure the fair value of our senior notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms.
Financial assets whose fair values we measure using significant unobservable (Level 3) inputs consist of municipal auction rate securities that are no longer liquid. We estimate the fair values of these auction rate securities using a discounted cash flow model. We continue to classify them as long-term investments based on the maturities of the underlying securities at that date. We do not intend to sell our municipal auction rate securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the three months ended October 31, 2014.
Cash and Cash Equivalents, Investments and Funds Held for Customers
Cash and Cash Equivalents, Investments and Funds Held for Customers
Cash and Cash Equivalents, Investments and Funds Held for Customers
We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments at October 31, 2014 consist of available-for-sale investment-grade debt securities that we carry at fair value. Funds held for customers consist of cash and cash equivalents and investment grade available-for-sale debt securities in all periods presented. Long-term investments at October 31, 2014 consist primarily of municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments in debt securities by limiting our holdings with any individual issuer.
The following table summarizes our cash and cash equivalents, investments, and funds held for customers by balance sheet classification at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Classification on balance sheets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
542

 
$
542

 
$
849

 
$
849

Investments
1,046

 
1,047

 
1,064

 
1,065

Funds held for customers
358

 
358

 
289

 
289

Long-term investments
31

 
31

 
31

 
31

Total cash and cash equivalents, investments, and funds
held for customers
$
1,977

 
$
1,978

 
$
2,233

 
$
2,234


The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. See Note 2, “Fair Value Measurements,” for more information on our municipal auction rate securities.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Type of issue:
 
 
 
 
 
 
 
Total cash and cash equivalents
$
725

 
$
725

 
$
994

 
$
994

Available-for-sale debt securities:
 
 
 
 
 
 
 
Municipal bonds
647

 
647

 
700

 
701

Corporate notes
564

 
565

 
466

 
466

U.S. agency securities
10

 
10

 
42

 
42

Municipal auction rate securities
21

 
21

 
21

 
21

Total available-for-sale debt securities
1,242

 
1,243

 
1,229

 
1,230

Other long-term investments
10

 
10

 
10

 
10

Total cash and cash equivalents, investments, and funds
held for customers
$
1,977

 
$
1,978

 
$
2,233

 
$
2,234


We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2014 and October 31, 2013 were not significant.
We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income or loss in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at October 31, 2014 and July 31, 2014 were not significant.
We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at October 31, 2014 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at October 31, 2014 were not significant and were due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.
The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Due within one year
$
399

 
$
399

 
$
363

 
$
363

Due within two years
471

 
472

 
443

 
443

Due within three years
292

 
292

 
303

 
303

Due after three years
80

 
80

 
120

 
121

Total available-for-sale debt securities
$
1,242

 
$
1,243

 
$
1,229

 
$
1,230


Available-for-sale debt securities due after three years in the table above include our municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. All of the remaining securities in that category had interest reset dates or mandatory call dates within three years of the dates indicated in the table.
Discontinued Operations
Discontinued Operations
Discontinued Operations
Intuit Financial Services
On August 1, 2013 we completed the sale of our Intuit Financial Services (IFS) business for approximately $1.025 billion in cash. We recorded a gain on the disposal of IFS of approximately $36 million, net of income taxes, in the first quarter of fiscal 2014. The IFS business comprised substantially all of our former Financial Services reportable segment.
We classified our IFS business as discontinued operations and have therefore segregated its operating results from continuing operations in our statements of operations for all periods presented. Because operating cash flows from the IFS business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.
Intuit Health
On August 19, 2013 we completed the sale of our Intuit Health business for cash consideration that was not significant. We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014. Intuit Health was part of our former Other Businesses reportable segment.
We classified our Intuit Health business as discontinued operations and have therefore segregated its operating results in our statements of operations for all periods presented. Because operating cash flows from the Intuit Health business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.
Current Liabilities
Current Liabilities
Current Liabilities
Unsecured Revolving Credit Facility
On February 17, 2012 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on February 17, 2017. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either JP Morgan's alternate base rate plus a margin that ranges from 0.0% to 0.5% or London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.9% to 1.5%. Actual margins under either election will be based on our senior debt credit ratings. The agreement includes customary affirmative and negative covenants, including financial covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00 as of the last day of each fiscal quarter. We remained in compliance with these covenants at all times during the quarter ended October 31, 2014. We may use amounts borrowed under this credit facility for general corporate purposes, including future acquisitions. To date we have not borrowed under this credit facility.
Other Current Liabilities
Other current liabilities were as follows at the dates indicated:
(In millions)
October 31,
2014
 
July 31,
2014
Reserve for product returns
$
19

 
$
24

Reserve for rebates
15

 
23

Current portion of license fee payable
10

 
10

Current portion of deferred rent
7

 
7

Interest payable
3

 
10

Executive deferred compensation plan liabilities
71

 
63

Other
29

 
30

Total other current liabilities
$
154

 
$
167


The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,” for more information.
Long-Term Obligations
Long-Term Obligations
Long-Term Obligations
Long-Term Debt
On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the Notes). We carried the Notes at face value less the unamortized discount in long-term debt on our balance sheets at October 31, 2014 and July 31, 2014. The Notes are redeemable by Intuit at any time, subject to a make-whole premium, and include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. Interest on the Notes is payable semi-annually on March 15 and September 15. We paid $14 million in cash for interest on the Notes during the three months ended October 31, 2014 and $14 million in cash for interest on the Notes during the three months ended October 31, 2013.
Other Long-Term Obligations
Other long-term obligations were as follows at the dates indicated:
(In millions)
October 31,
2014
 
July 31,
2014
Total deferred rent
$
61

 
$
62

Total license fee payable
42

 
41

Long-term income tax liabilities
33

 
32

Long-term deferred income tax liabilities
62

 
61

Other
21

 
14

Total long-term obligations
219

 
210

Less current portion (included in other current liabilities)
(19
)
 
(17
)
Long-term obligations due after one year
$
200

 
$
193


Operating Lease Commitments
We describe our operating lease commitments in Note 9 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. There were no significant changes in those commitments during the first three months of fiscal 2015.
Income Taxes
Income Taxes
Income Taxes
Effective Tax Rate
We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.
Our effective tax rate for the three months ended October 31, 2014 was approximately 31%. Excluding discrete tax items primarily related to share-based compensation and a state tax law change as well as including the effects of losses in certain jurisdictions where we do not recognize a tax benefit, our effective tax rate for the period was approximately 37% and did not differ significantly from the federal statutory rate of 35%. Tax expense related to share based compensation, state income taxes, and the effects of losses in certain jurisdictions where we do not recognize a tax benefit were partially offset by the benefit we received from the domestic production activities deduction.
Our effective tax rate for the three months ended October 31, 2013 was approximately 29%. Excluding the impact of discrete tax items primarily related to share-based compensation, our effective tax rate for that period was approximately 34% and did not differ significantly from the federal statutory rate of 35%. The benefit we received from the domestic production activities deduction and the federal research and experimentation credit were substantially offset by tax expense related to state income taxes.
Unrecognized Tax Benefits and Other Considerations
The total amount of our unrecognized tax benefits at July 31, 2014 was $40 million. Net of related deferred tax assets, unrecognized tax benefits were $26 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $26 million. There were no material changes to these amounts during the three months ended October 31, 2014. We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months.
Stockholders' Equity
Stockholders' Equity
Stockholders’ Equity
Stock Repurchase Programs and Treasury Shares
Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. We repurchased 1.3 million shares for $114 million under these programs during the three months ended October 31, 2014 and 17.6 million shares for $1.4 billion under these programs during the three months ended October 31, 2013. At October 31, 2014, we had authorization from our Board of Directors to expend up to an additional $1.8 billion for stock repurchases through August 19, 2017. Future stock repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.
Our treasury shares are repurchased at the market price on the trade date; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock on our balance sheets. Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.
In the past we have satisfied option exercises and restricted stock unit vesting under our employee equity incentive plans by reissuing treasury shares, and we may do so again in the future. During the second quarter of fiscal 2014 we began issuing new shares of common stock to satisfy option exercises and RSU vesting under our 2005 Equity Incentive Plan. We have not yet determined the ultimate disposition of the shares that we have repurchased in the past, and consequently we continue to hold them as treasury shares.
Dividends on Common Stock
During the three months ended October 31, 2014 we declared and paid a quarterly cash dividend of $0.25 per share of outstanding common stock or $74 million. In November 2014 our Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock payable on January 20, 2015 to stockholders of record at the close of business on January 9, 2015. Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors.
Share-Based Compensation Expense
The following table summarizes the total share-based compensation expense that we recorded in operating loss from continuing operations for the periods shown.
 
Three Months Ended
(In millions, except per share amounts)
October 31,
2014
 
October 31,
2013
Cost of revenue
$
2

 
$
2

Selling and marketing
18

 
15

Research and development
20

 
14

General and administrative
21

 
16

Total share-based compensation expense
61

 
47

Income tax benefit
(19
)
 
(15
)
Increase in net loss from continuing operations
$
42

 
$
32

Increase in net loss per share:
 
 
 
Basic
$
0.15

 
$
0.11

Diluted
$
0.15

 
$
0.11




Share-Based Awards Available for Grant
A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the three months ended October 31, 2014 was as follows:
(Shares in thousands)
Shares
Available
for Grant
Balance at July 31, 2014
24,203

Options granted
—

Restricted stock units granted (1)
(604
)
Share-based awards canceled/forfeited/expired (1)(2)
1,791

Balance at October 31, 2014
25,390

________________________________
(1)
RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan 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.
(2)
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.
Stock Option Activity and Related Share-Based Compensation Expense
A summary of stock option activity for the three months ended October 31, 2014 was as follows:
 
Options Outstanding
(Shares in thousands)
Number
of Shares
 
Weighted
Average
Exercise
Price
Per Share
Balance at July 31, 2014
10,938

 
$
52.67

Options granted
—

 
—

Options exercised
(1,085
)
 
47.78

Options canceled or expired
(291
)
 
63.73

Balance at October 31, 2014
9,562

 
$
52.89

 
 
 
 
Exercisable at October 31, 2014
5,252

 
$
40.48



At October 31, 2014, there was approximately $59 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.3 years.
Restricted Stock Unit Activity and Related Share-Based Compensation Expense
A summary of restricted stock unit activity for the three months ended October 31, 2014 was as follows:
 
Restricted Stock Units
(Shares in thousands)
Number
of Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested at July 31, 2014
9,455

 
$
62.46

Granted
263

 
82.98

Vested
(709
)
 
53.93

Forfeited
(718
)
 
55.31

Nonvested at October 31, 2014
8,291

 
$
64.46



At October 31, 2014, there was approximately $349 million of unrecognized compensation cost related to non-vested RSUs that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.2 years.
Litigation
Litigation
Litigation
Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that, in addition to any amounts accrued, the amount of potential losses, if any, for any pending claims of any type (either alone or combined) will not have a material impact on our consolidated financial statements. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims could adversely affect our business.
Segment Information
Segment Information
Segment Information
We have defined three reportable segments, described below, based on factors such as how we manage our operations and how our chief operating decision maker views results. We define the chief operating decision maker as our Chief Executive Officer and our Chief Financial Officer. Our chief operating decision maker organizes and manages our business primarily on the basis of product and service offerings.

Small Business. Our Small Business segment includes the following offerings, all targeting the small business market.
•
QuickBooks financial and business management online services and desktop software; QuickBooks technical support; and financial supplies.
•
QuickBooks Accountant, QuickBooks Accountant Plus, and QuickBooks Online Accountant as well as the QuickBooks ProAdvisor Program and Cloud ProAdvisor Program, all of which are intended for the accounting professionals who serve small businesses.
•
Small business payroll products and services, including online payroll offerings such as Quickbooks Online Payroll and Intuit Online Payroll; desktop payroll offerings such as QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; and full service payroll offerings such as Intuit Full Service Payroll and QuickBooks Assisted Payroll.
•
Payment processing services for small businesses, including merchant services such as credit and debit card processing; Web-based transaction processing services for online merchants; secure online payments for small businesses and their customers through the Intuit Payment Network; GoPayment mobile payment processing services; and QuickBooks Point of Sale solutions.
•
Demandforce, which provides online marketing and customer communication solutions for small businesses, and QuickBase.
Consumer. Our Consumer segment includes two product lines – Consumer Tax and Consumer Ecosystem – both of which target consumers.
•
Consumer Tax includes TurboTax income tax preparation products and services and electronic tax filing services.
•
Consumer Ecosystem includes our personal finance offerings, Quicken, Mint and Check.
Professional Tax. Our Professional Tax segment targets professional accountants and includes Lacerte, ProSeries, and Intuit Tax Online professional tax preparation products and services, electronic tax filing services, bank product transmission services, and training services.
All of our segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was approximately 5% of consolidated total net revenue for all periods presented.
We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses that are not allocated to specific segments in unallocated corporate items. Unallocated corporate items also include amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges.
The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014 and in Note 1, "Description of Business and Summary of Significant Accounting Policies - Significant Accounting Policies" in this Quarterly Report on Form 10-Q. Except for goodwill and purchased intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets by reportable segment.
The following table shows our financial results by reportable segment for the periods indicated. Results for all periods presented exclude results for our Intuit Financial Services and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.
 
Three Months Ended
(In millions)
October 31,
2014
 
October 31,
2013
Net revenue:
 
 
 
Small Business segment
$
548

 
$
520

 
 
 
 
Consumer segment:
 
 
 
Consumer Tax
57

 
42

Consumer Ecosystem
31

 
35

  Total Consumer segment
88

 
77

 
 
 
 
Professional Tax segment
36

 
25

Total net revenue
$
672

 
$
622

 
 
 
 
Operating loss from continuing operations:
 
 
 
Small Business segment
$
192

 
$
190

Consumer segment
(34
)
 
(24
)
Professional Tax segment
(3
)
 
(9
)
Total segment operating income
155

 
157

Unallocated corporate items:
 
 
 
Share-based compensation expense
(61
)
 
(47
)
Other common expenses
(192
)
 
(177
)
Amortization of acquired technology
(10
)
 
(6
)
Amortization of other acquired intangible assets
(6
)
 
(4
)
Total unallocated corporate items
(269
)
 
(234
)
Total operating loss from continuing operations
$
(114
)
 
$
(77
)
Description of Business and Summary of Significant Accounting Policies (Policies)
Basis of Presentation 
Basis of Presentation
These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented.
On June 16, 2014 we acquired Check Inc. We have included the results of operations for this company in our consolidated results of operations from the date of acquisition.
As discussed in Note 4, we sold our Intuit Financial Services (IFS) and Intuit Health businesses in August 2013. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows. Unless noted otherwise, discussions in these notes pertain to our continuing operations.
These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. Results for the three months ended October 31, 2014 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2015 or any other future period.
Seasonality 
Seasonality
Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels.
Revenue Recognition - Product Revenue 
Revenue Recognition - Product Revenue
Prior to fiscal 2015, we recognized revenue from the sale of our packaged software products when legal title transferred. This was generally when our customers downloaded products from the Web, when we shipped the products or, in the case of certain agreements, when products were delivered to retailers. Beginning in fiscal 2015, we began delivering ongoing releases for our future QuickBooks and Quicken desktop products and for our future Professional Tax solutions. As a result, revenue for these QuickBooks and Quicken offerings will be recognized as services are provided over approximately three years and revenue for our Professional Tax solutions will be recognized as services are provided over the tax year.
Use of Estimates 
Use of Estimates

In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of reserves for product returns and rebates, the collectibility of accounts receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.
Computation of Net Income (Loss) Per Share 
Computation of Net Income (Loss) Per Share
We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.
We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.
All of the RSUs we grant have dividend rights. Since the dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per share.
In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.
Recent Accounting Pronouncements 
Recent Accounting Pronouncements
ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”
In April 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures for discontinued operations and disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2015.
ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”
In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than is required under present U.S. GAAP. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is not permitted under U.S. GAAP. ASU 2014-09 allows adoption using either of two methods: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.
Fair Value Measurements 
Fair Value Measurements
The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.
The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:
•
Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.
•
Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.
•
Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.
Description of Business and Summary of Significant Accounting Policies (Tables)
Composition of shares used in the computation of basic and diluted net income per share
The following table presents the composition of shares used in the computation of basic and diluted net loss per share for the periods indicated.
 
Three Months Ended
(In millions, except per share amounts)
October 31,
2014
 
October 31,
2013
Numerator:
 
 
 
Net loss from continuing operations
$
(84
)
 
$
(57
)
Net income from discontinued operations
—

 
46

Net loss
$
(84
)
 
$
(11
)
 
 
 
 
Denominator:
 
 
 
Shares used in basic per share amounts:
 
 
 
Weighted average common shares outstanding
286

 
288

 
 
 
 
Shares used in diluted per share amounts:
 
 
 
Weighted average common shares outstanding
286

 
288

Dilutive common equivalent shares from stock options
 
 
 
and restricted stock awards
—

 
—

Dilutive weighted average common shares outstanding
286

 
288

 
 
 
 
Basic and diluted net loss per share:
 
 
 
Basic net loss per share from continuing operations
$
(0.29
)
 
$
(0.20
)
Basic net income per share from discontinued operations
—

 
0.16

Basic net loss per share
$
(0.29
)
 
$
(0.04
)
 
 
 
 
Diluted net loss per share from continuing operations
$
(0.29
)
 
$
(0.20
)
Diluted net income per share from discontinued operations
—

 
0.16

Diluted net loss per share
$
(0.29
)
 
$
(0.04
)
 
 
 
 
Shares excluded from computation of diluted net loss per share:
 
 
 
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding
if net income had been reported in the period
16

 
17

 
 
 
 
Weighted average stock options and restricted stock units excluded from
computation due to anti-dilutive effect
2

 
3

Fair Value Measurements (Tables)
Financial assets and liabilities measured at fair value on recurring basis 
The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.
 
October 31, 2014
 
July 31, 2014
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Assets:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash equivalents, primarily money market funds
$
431

 
$
—

 
$
—

 
$
431

 
$
652

 
$
—

 
$
—

 
$
652

Available-for-sale debt securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
—

 
647

 
—

 
647

 
—

 
701

 
—

 
701

Corporate notes
—

 
565

 
—

 
565

 
—

 
466

 
—

 
466

U.S. agency securities
—

 
10

 
—

 
10

 
—

 
42

 
—

 
42

Municipal auction rate securities
—

 
—

 
21

 
21

 
—

 
—

 
21

 
21

Total available-for-sale securities
—

 
1,222

 
21

 
1,243

 
—

 
1,209

 
21

 
1,230

Total assets measured at fair value on a recurring basis
$
431

 
$
1,222

 
$
21

 
$
1,674

 
$
652

 
$
1,209

 
$
21

 
$
1,882

Liabilities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Senior notes (1)
$
—

 
$
550

 
$
—

 
$
550

 
$
—

 
$
556

 
$
—

 
$
556

______________________________
(1)
Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.
Cash equivalents and available-for-sale debt and equity securities by balance sheet classification and level in the fair value hierarchy 
The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
Total
Fair Value
Cash equivalents:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In cash and cash equivalents
$
248

 
$
—

 
$
—

 
$
248

 
$
507

 
$
—

 
$
—

 
$
507

In funds held for customers
183

 
—

 
—

 
183

 
145

 
—

 
—

 
145

Total cash equivalents
$
431

 
$
—

 
$
—

 
$
431

 
$
652

 
$
—

 
$
—

 
$
652

Available-for-sale securities:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
In investments
$
—

 
$
1,047

 
$
—

 
$
1,047

 
$
—

 
$
1,065

 
$
—

 
$
1,065

In funds held for customers
—

 
175

 
—

 
175

 
—

 
144

 
—

 
144

In long-term investments
—

 
—

 
21

 
21

 
—

 
—

 
21

 
21

Total available-for-sale securities
$
—

 
$
1,222

 
$
21

 
$
1,243

 
$
—

 
$
1,209

 
$
21

 
$
1,230

Cash and Cash Equivalents, Investments and Funds Held for Customers (Tables)
Cash and cash equivalents, investments and funds held for customers by balance sheet classification 
The following table summarizes our cash and cash equivalents, investments, and funds held for customers by balance sheet classification at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Classification on balance sheets:
 
 
 
 
 
 
 
Cash and cash equivalents
$
542

 
$
542

 
$
849

 
$
849

Investments
1,046

 
1,047

 
1,064

 
1,065

Funds held for customers
358

 
358

 
289

 
289

Long-term investments
31

 
31

 
31

 
31

Total cash and cash equivalents, investments, and funds
held for customers
$
1,977

 
$
1,978

 
$
2,233

 
$
2,234

Cash and cash equivalents, investments and funds held for customers by investment category 
The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. See Note 2, “Fair Value Measurements,” for more information on our municipal auction rate securities.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Type of issue:
 
 
 
 
 
 
 
Total cash and cash equivalents
$
725

 
$
725

 
$
994

 
$
994

Available-for-sale debt securities:
 
 
 
 
 
 
 
Municipal bonds
647

 
647

 
700

 
701

Corporate notes
564

 
565

 
466

 
466

U.S. agency securities
10

 
10

 
42

 
42

Municipal auction rate securities
21

 
21

 
21

 
21

Total available-for-sale debt securities
1,242

 
1,243

 
1,229

 
1,230

Other long-term investments
10

 
10

 
10

 
10

Total cash and cash equivalents, investments, and funds
held for customers
$
1,977

 
$
1,978

 
$
2,233

 
$
2,234

Available-for-sale debt securities classified by the stated maturity date of the security 
The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.
 
October 31, 2014
 
July 31, 2014
(In millions)
Amortized
Cost
 
Fair Value
 
Amortized
Cost
 
Fair Value
Due within one year
$
399

 
$
399

 
$
363

 
$
363

Due within two years
471

 
472

 
443

 
443

Due within three years
292

 
292

 
303

 
303

Due after three years
80

 
80

 
120

 
121

Total available-for-sale debt securities
$
1,242

 
$
1,243

 
$
1,229

 
$
1,230

Current Liabilities (Tables)
Other current liabilities
Other current liabilities were as follows at the dates indicated:
(In millions)
October 31,
2014
 
July 31,
2014
Reserve for product returns
$
19

 
$
24

Reserve for rebates
15

 
23

Current portion of license fee payable
10

 
10

Current portion of deferred rent
7

 
7

Interest payable
3

 
10

Executive deferred compensation plan liabilities
71

 
63

Other
29

 
30

Total other current liabilities
$
154

 
$
167

Long-Term Obligations (Tables)
Other long-term obligations
Other long-term obligations were as follows at the dates indicated:
(In millions)
October 31,
2014
 
July 31,
2014
Total deferred rent
$
61

 
$
62

Total license fee payable
42

 
41

Long-term income tax liabilities
33

 
32

Long-term deferred income tax liabilities
62

 
61

Other
21

 
14

Total long-term obligations
219

 
210

Less current portion (included in other current liabilities)
(19
)
 
(17
)
Long-term obligations due after one year
$
200

 
$
193

Stockholders' Equity (Tables)
Total share-based compensation expense 
The following table summarizes the total share-based compensation expense that we recorded in operating loss from continuing operations for the periods shown.
 
Three Months Ended
(In millions, except per share amounts)
October 31,
2014
 
October 31,
2013
Cost of revenue
$
2

 
$
2

Selling and marketing
18

 
15

Research and development
20

 
14

General and administrative
21

 
16

Total share-based compensation expense
61

 
47

Income tax benefit
(19
)
 
(15
)
Increase in net loss from continuing operations
$
42

 
$
32

Increase in net loss per share:
 
 
 
Basic
$
0.15

 
$
0.11

Diluted
$
0.15

 
$
0.11

Summary of share-based awards available for grant 
A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the three months ended October 31, 2014 was as follows:
(Shares in thousands)
Shares
Available
for Grant
Balance at July 31, 2014
24,203

Options granted
—

Restricted stock units granted (1)
(604
)
Share-based awards canceled/forfeited/expired (1)(2)
1,791

Balance at October 31, 2014
25,390

________________________________
(1)
RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan 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.
(2)
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.
Summary of stock option activity 
A summary of stock option activity for the three months ended October 31, 2014 was as follows:
 
Options Outstanding
(Shares in thousands)
Number
of Shares
 
Weighted
Average
Exercise
Price
Per Share
Balance at July 31, 2014
10,938

 
$
52.67

Options granted
—

 
—

Options exercised
(1,085
)
 
47.78

Options canceled or expired
(291
)
 
63.73

Balance at October 31, 2014
9,562

 
$
52.89

 
 
 
 
Exercisable at October 31, 2014
5,252

 
$
40.48

Summary of restricted stock unit activity 
A summary of restricted stock unit activity for the three months ended October 31, 2014 was as follows:
 
Restricted Stock Units
(Shares in thousands)
Number
of Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested at July 31, 2014
9,455

 
$
62.46

Granted
263

 
82.98

Vested
(709
)
 
53.93

Forfeited
(718
)
 
55.31

Nonvested at October 31, 2014
8,291

 
$
64.46

Segment Information (Tables)
Financial results by reportable segment
The following table shows our financial results by reportable segment for the periods indicated. Results for all periods presented exclude results for our Intuit Financial Services and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.
 
Three Months Ended
(In millions)
October 31,
2014
 
October 31,
2013
Net revenue:
 
 
 
Small Business segment
$
548

 
$
520

 
 
 
 
Consumer segment:
 
 
 
Consumer Tax
57

 
42

Consumer Ecosystem
31

 
35

  Total Consumer segment
88

 
77

 
 
 
 
Professional Tax segment
36

 
25

Total net revenue
$
672

 
$
622

 
 
 
 
Operating loss from continuing operations:
 
 
 
Small Business segment
$
192

 
$
190

Consumer segment
(34
)
 
(24
)
Professional Tax segment
(3
)
 
(9
)
Total segment operating income
155

 
157

Unallocated corporate items:
 
 
 
Share-based compensation expense
(61
)
 
(47
)
Other common expenses
(192
)
 
(177
)
Amortization of acquired technology
(10
)
 
(6
)
Amortization of other acquired intangible assets
(6
)
 
(4
)
Total unallocated corporate items
(269
)
 
(234
)
Total operating loss from continuing operations
$
(114
)
 
$
(77
)
Description of Business and Summary of Significant Accounting Policies (Details) (USD $)
In Millions, except Per Share data, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 31, 2014
Business_unit
Oct. 31, 2013
Oct. 31, 2014
Customer Concentration Risk [Member]
Sales Revenue, Services, Net [Member]
customers
Oct. 31, 2013
Customer Concentration Risk [Member]
Sales Revenue, Services, Net [Member]
customers
Oct. 31, 2014
Customer Concentration Risk [Member]
Accounts Receivable [Member]
customers
Jul. 31, 2014
Customer Concentration Risk [Member]
Accounts Receivable [Member]
customers
Composition of shares used in the computation of basic and diluted net income per share
 
 
 
 
 
 
Number of businesses discontinued
2 
 
 
 
 
 
Numerator:
 
 
 
 
 
 
Net loss from continuing operations
$ (84)
$ (57)
 
 
 
 
Net income from discontinued operations
0 
46 
 
 
 
 
Net loss
$ (84)
$ (11)
 
 
 
 
Shares used in basic per share amounts:
 
 
 
 
 
 
Weighted average common shares outstanding
286 
288 
 
 
 
 
Shares used in diluted per share amounts:
 
 
 
 
 
 
Weighted average common shares outstanding
286 
288 
 
 
 
 
Dilutive common equivalent shares from stock options and restricted stock awards
0 
0 
 
 
 
 
Dilutive weighted average common shares outstanding
286 
288 
 
 
 
 
Basic and diluted net loss per share:
 
 
 
 
 
 
Basic net loss per share from continuing operations (in dollars per share)
$ (0.29)
$ (0.20)
 
 
 
 
Basic net income per share from discontinued operations (in dollars per share)
$ 0.00 
$ 0.16 
 
 
 
 
Basic net loss per share (in dollars per share)
$ (0.29)
$ (0.04)
 
 
 
 
Diluted net loss per share from continuing operations (in dollars per share)
$ (0.29)
$ (0.20)
 
 
 
 
Diluted net income per share from discontinued operations (in dollars per share)
$ 0.00 
$ 0.16 
 
 
 
 
Diluted net loss per share (in dollars per share)
$ (0.29)
$ (0.04)
 
 
 
 
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period (in shares)
16 
17 
 
 
 
 
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect (in shares)
2 
3 
 
 
 
 
Concentration Risk, Number of Customers
 
 
0 
0 
0 
0 
Fair Value Measurements (Details) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Available-for-sale debt securities:
 
 
Total available-for-sale securities
$ 1,978 
$ 2,234 
Liabilities:
 
 
Long-term debt
499 
499 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
 
Assets:
 
 
Cash equivalents, primarily money market funds
431 
652 
Available-for-sale debt securities:
 
 
Total assets measured at fair value on a recurring basis
431 
652 
Liabilities:
 
 
Senior notes
0 1
0 1
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Municipal bonds [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Corporate notes [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
U.S. agency securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Municipal auction rate securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member] |
Available-for-sale corporate equity securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
 
Assets:
 
 
Cash equivalents, primarily money market funds
0 
0 
Available-for-sale debt securities:
 
 
Total assets measured at fair value on a recurring basis
1,222 
1,209 
Liabilities:
 
 
Senior notes
550 1
556 1
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Municipal bonds [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
647 
701 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Corporate notes [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
565 
466 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
U.S. agency securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
10 
42 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Municipal auction rate securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member] |
Available-for-sale corporate equity securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
1,222 
1,209 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
 
Assets:
 
 
Cash equivalents, primarily money market funds
0 
0 
Available-for-sale debt securities:
 
 
Total assets measured at fair value on a recurring basis
21 
21 
Liabilities:
 
 
Senior notes
0 1
0 1
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Municipal bonds [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Corporate notes [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
U.S. agency securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Municipal auction rate securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
21 
21 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member] |
Available-for-sale corporate equity securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
21 
21 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Assets:
 
 
Cash equivalents, primarily money market funds
431 
652 
Available-for-sale debt securities:
 
 
Total assets measured at fair value on a recurring basis
1,674 
1,882 
Liabilities:
 
 
Senior notes
550 1
556 1
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Municipal bonds [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
647 
701 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Corporate notes [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
565 
466 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
U.S. agency securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
10 
42 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Municipal auction rate securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
21 
21 
Estimate of Fair Value Measurement [Member] |
Fair Value, Measurements, Recurring [Member] |
Available-for-sale corporate equity securities [Member]
 
 
Available-for-sale debt securities:
 
 
Total available-for-sale securities
$ 1,243 
$ 1,230 
Fair Value Measurements (Details 1) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Cash and Cash Equivalents [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
$ 542 
$ 849 
Fair Value, Measurements, Recurring [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
431 
652 
Available-for-sale securities:
 
 
Total available-for-sale securities
1,243 
1,230 
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
248 
507 
Fair Value, Measurements, Recurring [Member] |
Cash equivalents in funds held for customers [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
183 
145 
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Investments [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
1,047 
1,065 
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Funds Held For Customers [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
175 
144 
Fair Value, Measurements, Recurring [Member] |
In long term investments [Member] |
Estimate of Fair Value Measurement [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
21 
21 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
431 
652 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
248 
507 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash equivalents in funds held for customers [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
183 
145 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Funds Held For Customers [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 1 [Member] |
Fair Value, Measurements, Recurring [Member] |
In long term investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Available-for-sale securities:
 
 
Total available-for-sale securities
1,222 
1,209 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash equivalents in funds held for customers [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
1,047 
1,065 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Funds Held For Customers [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
175 
144 
Fair Value, Inputs, Level 2 [Member] |
Fair Value, Measurements, Recurring [Member] |
In long term investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Available-for-sale securities:
 
 
Total available-for-sale securities
21 
21 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash and Cash Equivalents [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member] |
Cash equivalents in funds held for customers [Member]
 
 
Cash equivalents:
 
 
Total cash equivalents
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member] |
Available For Sale Debt Securities In Funds Held For Customers [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
0 
0 
Fair Value, Inputs, Level 3 [Member] |
Fair Value, Measurements, Recurring [Member] |
In long term investments [Member]
 
 
Available-for-sale securities:
 
 
Total available-for-sale securities
$ 21 
$ 21 
Cash and Cash Equivalents, Investments and Funds Held for Customers - Classification on Balance Sheets (Details) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Oct. 31, 2013
Jul. 31, 2013
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Cash and cash equivalents, Amortized Cost
$ 542 
$ 849 
$ 417 
$ 1,009 
Investments and funds, Fair Value
1,978 
2,234 
 
 
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost
1,977 
2,233 
 
 
Total cash and cash equivalents, investments, and funds held for customers, Fair Value
1,978 
2,234 
 
 
Cash and Cash Equivalents [Member]
 
 
 
 
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Cash and cash equivalents, Amortized Cost
542 
849 
 
 
Cash and Cash Equivalents, Fair Value Disclosure
542 
849 
 
 
Investments [Member]
 
 
 
 
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Investments and funds, Amortized Cost
1,046 
1,064 
 
 
Investments and funds, Fair Value
1,047 
1,065 
 
 
Funds held for customers [Member]
 
 
 
 
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Investments and funds, Amortized Cost
358 
289 
 
 
Investments and funds, Fair Value
358 
289 
 
 
Long-term investments [Member]
 
 
 
 
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Investments and funds, Amortized Cost
31 
31 
 
 
Investments and funds, Fair Value
$ 31 
$ 31 
 
 
Cash and Cash Equivalents, Investments and Funds Held for Customers - Type of issue (Details) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Oct. 31, 2013
Jul. 31, 2013
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Cash and cash equivalents, Amortized Cost
$ 542 
$ 849 
$ 417 
$ 1,009 
Available-for-sale securities:
 
 
 
 
Total cash and cash equivalents, investments, and funds held for customers
1,977 
2,233 
 
 
Available-for-sale securities, Fair Value Disclosure
1,978 
2,234 
 
 
Total cash and cash equivalents [Member]
 
 
 
 
Cash and Cash Equivalents Items [Line Items]
 
 
 
 
Cash and cash equivalents, Amortized Cost
725 
994 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale securities, Fair Value Disclosure
725 
994 
 
 
Municipal bonds [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale debt securities, Amortized Cost Basis
647 
700 
 
 
Available-for-sale securities, Fair Value Disclosure
647 
701 
 
 
Corporate notes [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale debt securities, Amortized Cost Basis
564 
466 
 
 
Available-for-sale securities, Fair Value Disclosure
565 
466 
 
 
U.S. agency securities [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale debt securities, Amortized Cost Basis
10 
42 
 
 
Available-for-sale securities, Fair Value Disclosure
10 
42 
 
 
Municipal auction rate securities [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale debt securities, Amortized Cost Basis
21 
21 
 
 
Available-for-sale securities, Fair Value Disclosure
21 
21 
 
 
Total available-for-sale debt securities [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Available-for-sale debt securities, Amortized Cost Basis
1,242 
1,229 
 
 
Available-for-sale securities, Fair Value Disclosure
1,243 
1,230 
 
 
Other long-term investments [Member]
 
 
 
 
Available-for-sale securities:
 
 
 
 
Other long-term investments
10 
10 
 
 
Available-for-sale securities, Fair Value Disclosure
$ 10 
$ 10 
 
 
Cash and Cash Equivalents, Investments and Funds Held for Customers - Classified by the stated maturity date (Details) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Available-for-sale Securities, Debt Maturities
 
 
Due within one year, Amortized Cost
$ 399 
$ 363 
Due within one year, Fair Value
399 
363 
Due within two years, Amortized Cost
471 
443 
Due within two years, Fair Value
472 
443 
Due within three years, Amortized Cost
292 
303 
Due within three years, Fair Value
292 
303 
Due after three years, Amortized Cost
80 
120 
Due after three years, Fair Value
80 
121 
Total available-for-sale debt securities, Amortized Cost
1,242 
1,229 
Total available-for-sale debt securities, Fair Value
$ 1,243 
$ 1,230 
Discontinued Operations (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 0 Months Ended 3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Aug. 1, 2013
Intuit Financial Services [Member]
Oct. 31, 2013
Intuit Financial Services [Member]
Oct. 31, 2013
Intuit Health [Member]
Discontinued Operations (Textuals)
 
 
 
 
 
Gross proceeds from sale of business
$ 0 
$ 1,025 
$ 1,025 
 
 
Net gain on disposal of business
 
 
 
36 
10 
Pre-tax gain (loss) on sale of discontinued operations
0 
40 
 
 
(4)
Tax effect on sale of discontinued operations
 
 
 
 
$ (14)
Current Liabilities (Details) (USD $)
0 Months Ended
Feb. 17, 2012
Current Liabilities (Textuals)
 
Unsecured revolving credit facility
$ 500,000,000 
Line of Credit New [Member]
 
Current Liabilities (Textuals)
 
Maximum ratio of debt to annual earnings before interest, taxes, depreciation and amortization as per agreement
3.25 
Minimum ratio of annual earnings before interest, taxes, depreciation and amortization to interest payable as per agreement
3.00 
Line of Credit [Member] |
Minimum [Member] |
JP Morgan Alternate Base [Member]
 
Current Liabilities (Textuals)
 
Basis spread on variable rate
0.00% 
Line of Credit [Member] |
Minimum [Member] |
LIBOR [Member]
 
Current Liabilities (Textuals)
 
Basis spread on variable rate
0.90% 
Line of Credit [Member] |
Maximum [Member] |
JP Morgan Alternate Base [Member]
 
Current Liabilities (Textuals)
 
Basis spread on variable rate
0.50% 
Line of Credit [Member] |
Maximum [Member] |
LIBOR [Member]
 
Current Liabilities (Textuals)
 
Basis spread on variable rate
1.50% 
Current Liabilities - Other current liabilities (Details) (USD $)
In Millions, unless otherwise specified
Oct. 31, 2014
Jul. 31, 2014
Other Liabilities, Current [Abstract]
 
 
Reserve for product returns
$ 19 
$ 24 
Reserve for rebates
15 
23 
Current portion of license fee payable
10 
10 
Current portion of deferred rent
7 
7 
Interest payable
3 
10 
Executive deferred compensation plan liabilities
71 
63 
Other
29 
30 
Total other current liabilities
$ 154 
$ 167 
Long-Term Obligations (Details) (USD $)
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Jul. 31, 2014
Mar. 12, 2007
5.75 percent fixed-rate notes due 2017 [Member]
Long Term Obligations (Textuals)
 
 
 
 
Senior notes
 
 
 
$ 500,000,000 
Senior notes, rate
 
 
 
5.75% 
Cash paid for interest on the Notes
14,000,000 
14,000,000 
 
 
Other long-term obligations
 
 
 
 
Total deferred rent
61,000,000 
 
62,000,000 
 
Total license fee payable
42,000,000 
 
41,000,000 
 
Long-term income tax liabilities
33,000,000 
 
32,000,000 
 
Long-term deferred income tax liabilities
62,000,000 
 
61,000,000 
 
Other
21,000,000 
 
14,000,000 
 
Total long-term obligations
219,000,000 
 
210,000,000 
 
Less current portion (included in other current liabilities)
(19,000,000)
 
(17,000,000)
 
Long-term obligations due after one year
$ 200,000,000 
 
$ 193,000,000 
 
Income Taxes (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Jul. 31, 2014
Income Tax Disclosure [Abstract]
 
 
 
Effective tax rate
31.00% 
29.00% 
 
Effective tax rate excluding the impact of discrete tax items
37.00% 
34.00% 
 
Federal statutory income tax rate
35.00% 
35.00% 
 
Total amount of unrecognized tax benefits
 
 
$ 40 
Unrecognized tax benefits, net of related deferred tax assets
 
 
26 
Favorable net impact to income tax expense due to recognition of tax benefits
 
 
$ 26 
Stockholders' Equity (Details) (USD $)
3 Months Ended 1 Months Ended
Oct. 31, 2014
Oct. 31, 2013
Oct. 31, 2014
Stock Options [Member]
Oct. 31, 2014
Restricted Stock Units (RSUs) [Member]
Oct. 31, 2014
Cost of revenue [Member]
Oct. 31, 2013
Cost of revenue [Member]
Oct. 31, 2014
Selling and marketing [Member]
Oct. 31, 2013
Selling and marketing [Member]
Oct. 31, 2014
Research and development [Member]
Oct. 31, 2013
Research and development [Member]
Oct. 31, 2014
General and administrative [Member]
Oct. 31, 2013
General and administrative [Member]
Oct. 31, 2014
New Program [Member]
Nov. 21, 2014
Dividend Declared [Member]
Stockholders' Equity (Textuals)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock repurchased (in shares)
1,300,000 
17,600,000 
 
 
 
 
 
 
 
 
 
 
 
 
Common stock repurchased, value
$ 114,000,000 
$ 1,400,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
 
 
 
 
 
 
 
 
 
 
 
 
1,800,000,000 
 
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)
$ 0.25 
 
 
 
 
 
 
 
 
 
 
 
 
 
Payments of dividends
74,000,000 
55,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Dividends declared per common share (in dollars per share)
$ 0.25 
$ 0.19 
 
 
 
 
 
 
 
 
 
 
 
$ 0.25 
Total share-based compensation expense
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allocated Share-based Compensation Expense
61,000,000 
47,000,000 
 
 
2,000,000 
2,000,000 
18,000,000 
15,000,000 
20,000,000 
14,000,000 
21,000,000 
16,000,000 
 
 
Income tax benefit
(19,000,000)
(15,000,000)
 
 
 
 
 
 
 
 
 
 
 
 
Increase in net loss from continuing operations
42,000,000 
32,000,000 
 
 
 
 
 
 
 
 
 
 
 
 
Increase in net loss per share:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Basic (dollars per share)
$ 0.15 
$ 0.11 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted (dollars per share)
$ 0.15 
$ 0.11 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based awards available for grant
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares Available for Grant, Beginning Balance (in shares)
24,203,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted (in shares)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Restricted stock units granted (in shares)
(604,000)1
 
 
 
 
 
 
 
 
 
 
 
 
 
Share-based awards canceled/forfeited/expired (in shares)
1,791,000 1 2
 
 
 
 
 
 
 
 
 
 
 
 
 
Shares Available for Grant, Ending Balance (in shares)
25,390,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pool Shares Reduced For Each Share Granted (in shares)
2.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pool Shares Increased For Each Share Forfeited (in shares)
2.3 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of stock option activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares, Beginning Balance (in shares)
10,938,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average exercise price per share, Beginning Balance (in dollars per share)
$ 52.67 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted, number of shares (in shares)
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options granted, weighted average exercise price per share (in dollars per share)
$ 0.00 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercised, number of shares (in shares)
(1,085,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
Options exercised, weighted average exercise price per share (in dollars per share)
$ 47.78 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options canceled or expired, number of shares (in shares)
(291,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
Options canceled or expired, weighted average exercise price per share (in dollars per share)
$ 63.73 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of shares, Ending Balance (in shares)
9,562,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Weighted average exercise price per share, Ending Balance (in dollars per share)
$ 52.89 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable (in shares)
5,252,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Exercisable, Weighted average exercise price per share (in dollars per share)
$ 40.48 
 
 
 
 
 
 
 
 
 
 
 
 
 
Summary of restricted stock unit activity
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested at beginning of period (in shares)
9,455,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, Weighted Average Grant Date Fair Value, at beginning of period (in dollars per shares)
$ 62.46 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted, Number of shares (in shares)
263,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Granted, Weighted Average Grant Date Fair Value (in dollars per shares)
$ 82.98 
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested, Number of Shares (in shares)
(709,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
Vested, Weighted Average Grant Date Fair Value (in dollars per shares)
$ 53.93 
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited, Number of Shares (in shares)
(718,000)
 
 
 
 
 
 
 
 
 
 
 
 
 
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares)
$ 55.31 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested at end of period (in shares)
8,291,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
Nonvested, Weighted Average Grant Date Fair Value, at end of period (in dollars per shares)
$ 64.46 
 
 
 
 
 
 
 
 
 
 
 
 
 
Unrecognized compensation cost related to non-vested share based compensation expense
 
 
$ 59,000,000 
$ 349,000,000 
 
 
 
 
 
 
 
 
 
 
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years
 
 
2 years 3 months 6 days 
2 years 2 months 12 days 
 
 
 
 
 
 
 
 
 
 
Segment Information (Details) (USD $)
In Millions, unless otherwise specified
3 Months Ended 12 Months Ended
Oct. 31, 2014
Segment
Oct. 31, 2013
Jul. 31, 2014
Segment Reporting Information [Line Items]
 
 
 
Number of Reportable Segments
3 
 
 
International Total Net Revenue As A Percentage Of Total
5.00% 
5.00% 
5.00% 
Financial results by reportable segment
 
 
 
Total net revenue
$ 672 
$ 622 
 
Total operating loss from continuing operations
(114)
(77)
 
Unallocated corporate items:
 
 
 
Share-based compensation expense
(61)
(47)
 
Amortization of acquired technology
(10)
(6)
 
Amortization of other acquired intangible assets
(6)
(4)
 
Operating Segments [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total operating loss from continuing operations
155 
157 
 
Small Business Segment [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total operating loss from continuing operations
192 
190 
 
Small Business Segment [Member] |
Small Business Financial Solutions [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total net revenue
548 
520 
 
Consumer Segment [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Number of Product Lines
2 
 
 
Financial results by reportable segment
 
 
 
Total net revenue
88 
77 
 
Total operating loss from continuing operations
(34)
(24)
 
Consumer Segment [Member] |
Consumer Tax [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total net revenue
57 
42 
 
Consumer Segment [Member] |
Consumer Ecosystem [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total net revenue
31 
35 
 
Professional Tax Segment [Member]
 
 
 
Financial results by reportable segment
 
 
 
Total net revenue
36 
25 
 
Total operating loss from continuing operations
(3)
(9)
 
Segment Reconciling Items [Member]
 
 
 
Unallocated corporate items:
 
 
 
Share-based compensation expense
(61)
(47)
 
Other common expenses
(192)
(177)
 
Amortization of acquired technology
(10)
(6)
 
Amortization of other acquired intangible assets
(6)
(4)
 
Total unallocated corporate items
$ (269)
$ (234)