Intuit (INTU) 10-Q 20 Nov 15 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2015	Nov. 16, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	INTUIT INC
Entity Central Index Key	896,878
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 31, 2015
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		264,004,330

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Net revenue:
Product	$ 271	$ 228
Service and other	442	384
Total net revenue	713	612
Cost of revenue:
Cost of product revenue	29	33
Cost of service and other revenue	131	119
Amortization of acquired technology	6	7
Selling and marketing	244	251
Research and development	213	189
General and administrative	117	119
Amortization of other acquired intangible assets	2	3
Total costs and expenses	742	721
Operating loss from continuing operations	(29)	(109)
Interest expense	(7)	(7)
Interest and other income (expense), net	(4)	0
Loss before income taxes	(40)	(116)
Income tax benefit	(9)	(35)
Net loss from continuing operations	(31)	(81)
Net loss from discontinued operations	0	(3)
Net loss	$ (31)	$ (84)
Earnings Per Share, Basic [Abstract]
Basic net income per share from continuing operations (in dollars per share)	$ (0.11)	$ (0.28)
Basic net income per share from discontinued operations (in dollars per share)	0	(0.01)
Basic net income per share (in dollars per share)	$ (0.11)	$ (0.29)
Shares used in basic per share calculations (in shares)	272	286
Earnings Per Share, Diluted [Abstract]
Diluted net income per share from continuing operations (in dollars per share)	$ (0.11)	$ (0.28)
Diluted net income per share from discontinued operations (in dollars per share)	0	(0.01)
Diluted net income per share (in dollars per share)	$ (0.11)	$ (0.29)
Shares used in diluted per share calculations (in shares)	272	286
Dividends [Abstract]
Cash dividends declared per common share (in dollars per share)	$ 0.30	$ 0.25

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Statement of Comprehensive Income [Abstract]
Net loss	$ (31)	$ (84)
Other comprehensive loss, net of income taxes:
Foreign currency translation losses	(2)	(5)
Total other comprehensive income (loss), net	(2)	(5)
Comprehensive loss	$ (33)	$ (89)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015
Current assets:
Cash and cash equivalents	$ 474	$ 808
Investments	0	889
Accounts receivable, net	124	91
Income taxes receivable	100	84
Deferred income taxes	244	231
Prepaid expenses and other current assets	121	94
Current assets of discontinued operations	17	26
Current assets before funds held for customers	1,080	2,223
Funds held for customers	347	337
Total current assets	1,427	2,560
Long-term investments	28	27
Property and equipment, net	701	682
Goodwill	1,274	1,266
Acquired intangible assets, net	77	87
Other assets	107	111
Long-term assets of discontinued operations	219	235
Total assets	3,833	4,968
Current liabilities:
Borrowings under credit facility	350	0
Accounts payable	178	190
Accrued compensation and related liabilities	139	283
Deferred revenue	635	691
Other current liabilities	165	150
Current liabilities of discontinued operations	73	93
Current liabilities before customer fund deposits	1,540	1,407
Customer fund deposits	347	337
Total current liabilities	1,887	1,744
Long-term debt	500	500
Long-term deferred revenue	157	152
Other long-term obligations	184	172
Long-term obligations of discontinued operations	54	68
Total liabilities	$ 2,782	$ 2,636
Commitments and contingencies
Stockholders’ equity:
Preferred stock	$ 0	$ 0
Common stock and additional paid-in capital	4,114	4,010
Treasury stock, at cost	(8,945)	(7,675)
Accumulated other comprehensive loss	(32)	(30)
Retained earnings	5,914	6,027
Total stockholders’ equity	1,051	2,332
Total liabilities and stockholders’ equity	$ 3,833	$ 4,968

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Millions	Total	Shares of Common Stock	Common Stock and Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning Balance, shares at Jul. 31, 2014		284,950
Beginning Balance at Jul. 31, 2014	$ 3,078		$ 3,561	$ (6,430)	$ (2)	$ 5,949
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)
Dividends and dividend rights declared	(74)					(74)
Tax benefit from share-based compensation plans	18		18
Share-based compensation expense	61		61
Ending Balance, shares at Oct. 31, 2014		285,419
Ending Balance at Oct. 31, 2014	2,927		3,687	(6,544)	(7)	5,791
Beginning Balance, shares at Jul. 31, 2015		277,706
Beginning Balance at Jul. 31, 2015	2,332		4,010	(7,675)	(30)	6,027
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive loss	(33)				(2)	(31)
Issuance of stock under employee stock plans, shares		998
Issuance of stock under employee stock plans	$ 24		24
Stock repurchases under stock repurchase programs, shares	(14,400)	(14,359)
Stock repurchases under stock repurchase programs	$ (1,270)			(1,270)
Dividends and dividend rights declared	(82)					(82)
Tax benefit from share-based compensation plans	9		9
Share-based compensation expense	71		71
Ending Balance, shares at Oct. 31, 2015		264,345
Ending Balance at Oct. 31, 2015	$ 1,051		$ 4,114	$ (8,945)	$ (32)	$ 5,914

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.30	$ 0.25

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Cash flows from operating activities:
Net loss	$ (31)	$ (84)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	45	36
Amortization of acquired intangible assets	10	18
Share-based compensation expense	69	61
Deferred income taxes	(2)	(6)
Tax benefit from share-based compensation plans	9	18
Excess tax benefit from share-based compensation plans	(9)	(18)
Other	10	12
Total adjustments	132	121
Changes in operating assets and liabilities:
Accounts receivable	(28)	(4)
Income taxes receivable	(17)	(56)
Prepaid expenses and other assets	(29)	(3)
Accounts payable	(6)	32
Accrued compensation and related liabilities	(145)	(139)
Deferred revenue	(54)	28
Other liabilities	(19)	(13)
Total changes in operating assets and liabilities	(298)	(155)
Net cash used in operating activities	(197)	(118)
Cash flows from investing activities:
Purchases of available-for-sale debt securities	(117)	(365)
Sales of available-for-sale debt securities	940	147
Maturities of available-for-sale debt securities	64	229
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations	(10)	(69)
Net change in customer fund deposits	10	69
Purchases of property and equipment	(70)	(55)
Acquisitions of businesses, net of cash acquired	0	(9)
Other	(1)	(8)
Net cash provided by (used in) investing activities	816	(61)
Cash flows from financing activities:
Proceeds from borrowings under credit facility	350	0
Net proceeds from issuance of stock under employee stock plans	24	47
Cash paid for purchases of treasury stock	(1,253)	(114)
Dividends and dividend rights paid	(82)	(74)
Excess tax benefit from share-based compensation plans	9	18
Net cash used in financing activities	(952)	(123)
Effect of exchange rates on cash and cash equivalents	(1)	(5)
Net decrease in cash and cash equivalents	(334)	(307)
Cash and cash equivalents at beginning of period	808	849
Cash and cash equivalents at end of period	$ 474	$ 542

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
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 and TurboTax, we help customers solve important business and financial management problems such as running a small business, paying bills, and filing income taxes. 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. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to discontinued operations and reportable segments. See Note 4, “Discontinued Operations,” and Note 10, “ Segment Information ,” for more information. As discussed in Note 4, we classified our Demandforce, QuickBase, and Quicken businesses as discontinued operations in the fourth quarter of fiscal 2015. We have reclassified our statements of operations and balance sheets for all periods presented to reflect these businesses as discontinued operations. Because the cash flows of these businesses were not material for any period presented, we have not segregated them 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, 2015 . Results for the three months ended October 31, 2015 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2016 or any other future period. Seasonality Our Consumer Tax offerings have significant seasonal patterns and revenue from those income tax preparation products and services is heavily concentrated in our third fiscal quarter ending April 30. 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, 2015 . There have been no changes to our significant accounting policies during the first three months of fiscal 2016 . 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. Dividend rights are accumulated and paid when the underlying RSUs vest. 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, October 31, Numerator: Net loss from continuing operations $ (31 ) $ (81 ) Net loss from discontinued operations — (3 ) Net loss $ (31 ) $ (84 ) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 272 286 Shares used in diluted per share amounts: Weighted average common shares outstanding 272 286 Dilutive common equivalent shares from stock options and restricted stock awards — — Dilutive weighted average common shares outstanding 272 286 Basic and diluted net loss per share: Basic net loss per share from continuing operations $ (0.11 ) $ (0.28 ) Basic net loss per share from discontinued operations — (0.01 ) Basic net loss per share $ (0.11 ) $ (0.29 ) Diluted net loss per share from continuing operations $ (0.11 ) $ (0.28 ) Diluted net loss per share from discontinued operations — (0.01 ) Diluted net loss per share $ (0.11 ) $ (0.29 ) Shares excluded from computation of diluted net income 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 12 16 Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect 4 2 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, 2015 or October 31, 2014 . No customer accounted for 10% or more of gross accounts receivable at October 31, 2015 or July 31, 2015 . Accounting Pronouncements Not Yet Adopted ASU 2015-16 , “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” In September 2015, the FASB issued ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ” ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is permitted under U.S. GAAP. We are currently evaluating the impact of our pending adoption of ASU 2015-16 on our consolidated financial statements. 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) ,” and in August 2015 the FASB issued ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ,” which defers the effective date of ASU 2014-09 by one year. ASU 2014-09 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, 2017, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2018. Early adoption of one year prior to the required effective date is permitted. 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. Accounting Pronouncements Recently Adopted 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 became effective for our fiscal year that began August 1, 2015. Our adoption of ASU 2014-08 did not have an impact on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 2015
Fair Value Disclosures [Abstract]
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 unobservable 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 values 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, 2015 July 31, 2015 (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 $ 262 $ — $ — $ 262 $ 695 $ — $ — $ 695 Available-for-sale debt securities: Municipal bonds — 6 — 6 — 506 — 506 Corporate notes — 169 — 169 — 546 — 546 U.S. agency securities — — — — — 12 — 12 Municipal auction rate securities — — 15 15 — — 15 15 Total available-for-sale securities — 175 15 190 — 1,064 15 1,079 Total assets measured at fair value on a recurring basis $ 262 $ 175 $ 15 $ 452 $ 695 $ 1,064 $ 15 $ 1,774 Liabilities: Senior notes (1) $ — $ 530 $ — $ 530 $ — $ 531 $ — $ 531 ______________________________ (1) Carrying value on our balance sheets at October 31, 2015 was $500 million and at July 31, 2015 was $500 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, 2015 July 31, 2015 (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 $ 90 $ — $ — $ 90 $ 533 $ — $ — $ 533 In funds held for customers 172 — — 172 162 — — 162 Total cash equivalents $ 262 $ — $ — $ 262 $ 695 $ — $ — $ 695 Available-for-sale securities: In investments $ — $ — $ — $ — $ — $ 889 $ — $ 889 In funds held for customers — 175 — 175 — 175 — 175 In long-term investments — — 15 15 — — 15 15 Total available-for-sale securities $ — $ 175 $ 15 $ 190 $ — $ 1,064 $ 15 $ 1,079 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. In addition, it is more likely than not that we will not 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, 2015 .

Cash and Cash Equivalents, Inve

Cash and Cash Equivalents, Investments and Funds Held for Customers	3 Months Ended
	Oct. 31, 2015
Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]
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, 2015 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. 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, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 474 $ 474 $ 808 $ 808 Investments — — 890 889 Funds held for customers 347 347 337 337 Long-term investments 28 28 27 27 Total cash and cash equivalents, investments, and funds held for customers $ 849 $ 849 $ 2,062 $ 2,061 The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. October 31, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash and cash equivalents $ 646 $ 646 $ 970 $ 970 Available-for-sale debt securities: Municipal bonds 6 6 507 506 Corporate notes 169 169 546 546 U.S. agency securities — — 12 12 Municipal auction rate securities 15 15 15 15 Total available-for-sale debt securities 190 190 1,080 1,079 Other long-term investments 13 13 12 12 Total cash and cash equivalents, investments, and funds held for customers $ 849 $ 849 $ 2,062 $ 2,061 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, 2015 and October 31, 2014 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, 2015 and July 31, 2015 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, 2015 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at October 31, 2015 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. In addition, it is more likely than not that we will not 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, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 99 $ 99 $ 434 $ 435 Due within two years 31 31 443 442 Due within three years 45 45 156 156 Due after three years 15 15 47 46 Total available-for-sale debt securities $ 190 $ 190 $ 1,080 $ 1,079 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	3 Months Ended
	Oct. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Discontinued Operations	Discontinued Operations In the fourth quarter of fiscal 2015 management having the authority to do so formally approved a plan to sell our Demandforce, QuickBase, and Quicken businesses. The decision was a result of management’s desire to focus resources on our core small business and tax strategies. We determined that these businesses became long-lived assets held for sale in the fourth quarter of fiscal 2015. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying values of these three businesses at October 31, 2015 and July 31, 2015 were less than the estimated fair values less cost to sell, no adjustments to the carrying values of these long-lived assets were necessary at those dates. We also classified our Demandforce, QuickBase, and Quicken businesses as discontinued operations in the fourth quarter of fiscal 2015 and have therefore segregated their operating results from continuing operations in our statements of operations and on our balance sheets for all periods presented. Because the cash flows of these businesses were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows. Demandforce and QuickBase were part of our Small Business segment and Quicken was part of our former Consumer segment. The carrying amounts of the major classes of assets and liabilities of Demandforce, QuickBase, and Quicken at October 31, 2015 and July 31, 2015 were as shown in the following table. (In millions) October 31, July 31, Accounts receivable $ 14 $ 19 Deferred income taxes — 5 Prepaid and other current assets 3 2 Property and equipment, net 18 25 Goodwill 156 165 Purchased intangible assets, net 43 43 Other assets 2 2 Total assets 236 261 Accounts payable 7 7 Accrued compensation 13 21 Deferred revenue 45 48 Other current liabilities 8 17 Long-term deferred revenue 38 39 Long-term obligations 16 29 Total liabilities 127 161 Net assets $ 109 $ 100 Net revenue from discontinued operations, income or loss from discontinued operations before income taxes, and the components of net income (loss) from discontinued operations were as follows for the periods indicated: Three Months Ended (In millions) October 31, October 31, Net revenue from discontinued operations: Demandforce $ 25 $ 31 QuickBase 20 17 Quicken 14 13 Total net revenue from discontinued operations $ 59 $ 61 Income (loss) from discontinued operations before income taxes: Demandforce $ (4 ) $ (14 ) QuickBase 4 3 Quicken 4 6 Total income (loss) from discontinued operations before income taxes $ 4 $ (5 ) Net income (loss) from discontinued operations: Net loss from Demandforce operations $ (3 ) $ (9 ) Net income from QuickBase operations 3 2 Net income from Quicken operations 3 4 Tax expense from discontinued operations (3 ) — Total net loss from discontinued operations $ — $ (3 )

Current Liabilities

Current Liabilities	3 Months Ended
	Oct. 31, 2015
Other Liabilities Disclosure [Abstract]
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 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 are 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, 2015 . As of October 31, 2015, there was $350 million in outstanding borrowings on this credit facility, and we had $150 million of borrowings available. Other Current Liabilities Other current liabilities were as follows at the dates indicated: (In millions) October 31, July 31, Reserve for product returns $ 9 $ 12 Reserve for rebates 13 12 Current portion of license fee payable 10 10 Current portion of deferred rent 11 8 Interest payable 3 10 Amounts due for share repurchases 17 — Executive deferred compensation plan liabilities 69 63 Other 33 35 Total other current liabilities $ 165 $ 150 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 and Commi

Long-Term Obligations and Commitments	3 Months Ended
	Oct. 31, 2015
Long-Term Obligations [Abstract]
Long-Term Obligations and Commitments	Long-Term Obligations and Commitments 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, 2015 and July 31, 2015 . 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, 2015 and $14 million in cash for interest on the Notes during the three months ended October 31, 2014 . Other Long-Term Obligations Other long-term obligations were as follows at the dates indicated: (In millions) October 31, July 31, Total deferred rent $ 63 $ 49 Total license fee payable 35 34 Long-term income tax liabilities 45 45 Long-term deferred income tax liabilities 51 50 Other 12 13 Total long-term obligations 206 191 Less current portion (included in other current liabilities) (22 ) (19 ) Long-term obligations due after one year $ 184 $ 172 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, 2015 . On September 9, 2015 we entered into an agreement to purchase certain leased facilities for $262 million in cash and on November 9, 2015 we notified the seller of our unconditional acceptance of those facilities. Escrow is expected to close in January 2016.

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2015
Income Tax Disclosure [Abstract]
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, 2015 was approximately 22% . Excluding discrete tax items primarily related to share-based compensation 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 three months ended October 31, 2015 was approximately 36% 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, 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. Unrecognized Tax Benefits and Other Considerations The total amount of our unrecognized tax benefits at July 31, 2015 was $56 million. Net of related deferred tax assets, unrecognized tax benefits were $37 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $37 million. There were no material changes to these amounts during the three months ended October 31, 2015 . 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	3 Months Ended
	Oct. 31, 2015
Equity [Abstract]
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 14.4 million shares for $1.3 billion under these programs during the three months ended October 31, 2015 . Included in this amount were $17 million of repurchases which occurred in late October 2015 and were settled in early November 2015. We repurchased 1.3 million shares for $114 million under these programs during the three months ended October 31, 2014 . At October 31, 2015 , we had authorization from our Board of Directors to expend up to an additional $1.4 billion for stock repurchases through May 19, 2019 . 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, 2015 we declared and paid quarterly cash dividends that totaled $0.30 per share of outstanding common stock or $82 million. In November 2015 our Board of Directors declared a quarterly cash dividend of $0.30 per share of outstanding common stock payable on January 19, 2016 to stockholders of record at the close of business on January 11, 2016 . 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 income from continuing operations for the periods shown. Three Months Ended (In millions, except per share amounts) October 31, October 31, Cost of revenue $ 2 $ 1 Selling and marketing 19 16 Research and development 21 19 General and administrative 25 21 Total share-based compensation expense 67 57 Income tax benefit (20 ) (18 ) Increase in net loss from continuing operations $ 47 $ 39 Increase in net loss per share: Basic $ 0.17 $ 0.14 Diluted $ 0.17 $ 0.14 We capitalized $2 million in share-based compensation related to internal use software projects during the three months ended October 31, 2015 . The table above also excludes share-based compensation expense for our discontinued operations, which totaled $2 million during the three months ended October 31, 2015 and $4 million during the three months ended October 31, 2014 . Because we have not reclassified our statements of cash flows to segregate discontinued operations, these amounts are included in share-based compensation expense on our statements of cash flows for those periods. 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, 2015 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2015 17,183 Options granted (3 ) Restricted stock units granted (1) (433 ) Share-based awards canceled/forfeited/expired (1)(2) 2,244 Balance at October 31, 2015 18,991 ________________________________ (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, 2015 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2015 8,713 $ 69.13 Granted 3 88.30 Exercised (357 ) 53.17 Canceled or expired (210 ) 70.78 Balance at October 31, 2015 8,149 $ 69.79 Exercisable at October 31, 2015 4,367 $ 52.27 At October 31, 2015 , there was approximately $56 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 2.2 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, 2015 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2015 8,916 $ 76.64 Granted 188 96.08 Vested (407 ) 66.43 Forfeited (947 ) 65.70 Nonvested at October 31, 2015 7,750 $ 78.99 At October 31, 2015 , there was approximately $392 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 2.1 years.

Litigation

Litigation	3 Months Ended
	Oct. 31, 2015
Commitments and Contingencies Disclosure [Abstract]
Litigation	Litigation In fiscal 2015 Intuit was contacted by regulatory authorities, including Congress, the Federal Trade Commission, the SEC, the Department of Justice and certain state Attorneys General, which are conducting inquiries in connection with the increase during the 2015 tax season in attempts by criminals using stolen identity information to file fraudulent tax returns and claim refunds at the state and federal levels. Intuit is cooperating with all such government inquiries, including formal requests for information. In addition, we are the subject of certain actions, including a consolidated putative class action lawsuit by individuals who claim to have suffered damages in connection with the foregoing events. We believe that the allegations contained within these lawsuits are without merit, and we intend to vigorously defend against them. Intuit is subject to certain routine legal proceedings, including class action lawsuits like those described above, as well as demands, claims, government inquiries 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	3 Months Ended
	Oct. 31, 2015
Segment Reporting [Abstract]
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, which target small businesses and the accounting professionals who serve them. • 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, 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 Commerce Network; GoPayment mobile payment processing services; and QuickBooks Point of Sale solutions. Consumer Tax. Consumer Tax targets consumers and includes TurboTax income tax preparation products and services and electronic tax filing services. Professional Tax. Our Professional Tax segment targets professional accountants in the U.S. and Canada and includes Lacerte, ProSeries, ProFile, 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, which 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, 2015 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 have been adjusted to exclude results for our Demandforce, QuickBase, and Quicken businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2015. See Note 4, “Discontinued Operations,” for more information. Three Months Ended (In millions) October 31, October 31, Net revenue: Small Business segment $ 546 $ 519 Consumer Tax segment 57 57 Professional Tax segment 110 36 Total net revenue $ 713 $ 612 Operating loss from continuing operations: Small Business segment $ 211 $ 188 Consumer Tax segment (28 ) (36 ) Professional Tax segment 72 (3 ) Total segment operating income 255 149 Unallocated corporate items: Share-based compensation expense (67 ) (57 ) Other common expenses (209 ) (191 ) Amortization of acquired technology (6 ) (7 ) Amortization of other acquired intangible assets (2 ) (3 ) Total unallocated corporate items (284 ) (258 ) Total operating loss from continuing operations $ (29 ) $ (109 )

Description of Business and S18

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
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. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to discontinued operations and reportable segments. See Note 4, “Discontinued Operations,” and Note 10, “ Segment Information ,” for more information. As discussed in Note 4, we classified our Demandforce, QuickBase, and Quicken businesses as discontinued operations in the fourth quarter of fiscal 2015. We have reclassified our statements of operations and balance sheets for all periods presented to reflect these businesses as discontinued operations. Because the cash flows of these businesses were not material for any period presented, we have not segregated them 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, 2015 . Results for the three months ended October 31, 2015 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2016 or any other future period.
Seasonality	Seasonality Our Consumer Tax offerings have significant seasonal patterns and revenue from those income tax preparation products and services is heavily concentrated in our third fiscal quarter ending April 30.
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. Dividend rights are accumulated and paid when the underlying RSUs vest. 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.
Concentration of Credit Risk and Significant Customers	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, 2015 or October 31, 2014 . No customer accounted for 10% or more of gross accounts receivable at October 31, 2015 or July 31, 2015 .
Recent Accounting Pronouncements	Accounting Pronouncements Not Yet Adopted ASU 2015-16 , “Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments.” In September 2015, the FASB issued ASU 2015-16, “ Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. ” ASU 2015-16 eliminates the requirement for an acquirer to retrospectively adjust provisional amounts recorded in a business combination to reflect new information about the facts and circumstances that existed as of the acquisition date and that, if known, would have affected measurement or recognition of amounts initially recognized. As an alternative, the amendment requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments require that the acquirer record, in the financial statements of the period in which adjustments to provisional amounts are determined, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. ASU 2015-16 is effective prospectively for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is permitted under U.S. GAAP. We are currently evaluating the impact of our pending adoption of ASU 2015-16 on our consolidated financial statements. 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) ,” and in August 2015 the FASB issued ASU 2015-14, “ Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date ,” which defers the effective date of ASU 2014-09 by one year. ASU 2014-09 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, 2017, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2018. Early adoption of one year prior to the required effective date is permitted. 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. Accounting Pronouncements Recently Adopted 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 became effective for our fiscal year that began August 1, 2015. Our adoption of ASU 2014-08 did not have an impact on our consolidated financial statements.
Fair Value Measurement	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 unobservable 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 values are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

Description of Business and S19

Description of Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Oct. 31, 2015
Accounting Policies [Abstract]
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, October 31, Numerator: Net loss from continuing operations $ (31 ) $ (81 ) Net loss from discontinued operations — (3 ) Net loss $ (31 ) $ (84 ) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 272 286 Shares used in diluted per share amounts: Weighted average common shares outstanding 272 286 Dilutive common equivalent shares from stock options and restricted stock awards — — Dilutive weighted average common shares outstanding 272 286 Basic and diluted net loss per share: Basic net loss per share from continuing operations $ (0.11 ) $ (0.28 ) Basic net loss per share from discontinued operations — (0.01 ) Basic net loss per share $ (0.11 ) $ (0.29 ) Diluted net loss per share from continuing operations $ (0.11 ) $ (0.28 ) Diluted net loss per share from discontinued operations — (0.01 ) Diluted net loss per share $ (0.11 ) $ (0.29 ) Shares excluded from computation of diluted net income 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 12 16 Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect 4 2

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2015
Fair Value Disclosures [Abstract]
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, 2015 July 31, 2015 (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 $ 262 $ — $ — $ 262 $ 695 $ — $ — $ 695 Available-for-sale debt securities: Municipal bonds — 6 — 6 — 506 — 506 Corporate notes — 169 — 169 — 546 — 546 U.S. agency securities — — — — — 12 — 12 Municipal auction rate securities — — 15 15 — — 15 15 Total available-for-sale securities — 175 15 190 — 1,064 15 1,079 Total assets measured at fair value on a recurring basis $ 262 $ 175 $ 15 $ 452 $ 695 $ 1,064 $ 15 $ 1,774 Liabilities: Senior notes (1) $ — $ 530 $ — $ 530 $ — $ 531 $ — $ 531 ______________________________ (1) Carrying value on our balance sheets at October 31, 2015 was $500 million and at July 31, 2015 was $500 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, 2015 July 31, 2015 (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 $ 90 $ — $ — $ 90 $ 533 $ — $ — $ 533 In funds held for customers 172 — — 172 162 — — 162 Total cash equivalents $ 262 $ — $ — $ 262 $ 695 $ — $ — $ 695 Available-for-sale securities: In investments $ — $ — $ — $ — $ — $ 889 $ — $ 889 In funds held for customers — 175 — 175 — 175 — 175 In long-term investments — — 15 15 — — 15 15 Total available-for-sale securities $ — $ 175 $ 15 $ 190 $ — $ 1,064 $ 15 $ 1,079

Cash and Cash Equivalents, In21

Cash and Cash Equivalents, Investments and Funds Held for Customers (Tables)	3 Months Ended
	Oct. 31, 2015
Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]
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, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 474 $ 474 $ 808 $ 808 Investments — — 890 889 Funds held for customers 347 347 337 337 Long-term investments 28 28 27 27 Total cash and cash equivalents, investments, and funds held for customers $ 849 $ 849 $ 2,062 $ 2,061
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. October 31, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash and cash equivalents $ 646 $ 646 $ 970 $ 970 Available-for-sale debt securities: Municipal bonds 6 6 507 506 Corporate notes 169 169 546 546 U.S. agency securities — — 12 12 Municipal auction rate securities 15 15 15 15 Total available-for-sale debt securities 190 190 1,080 1,079 Other long-term investments 13 13 12 12 Total cash and cash equivalents, investments, and funds held for customers $ 849 $ 849 $ 2,062 $ 2,061
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, 2015 July 31, 2015 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 99 $ 99 $ 434 $ 435 Due within two years 31 31 443 442 Due within three years 45 45 156 156 Due after three years 15 15 47 46 Total available-for-sale debt securities $ 190 $ 190 $ 1,080 $ 1,079

Discontinued Operations (Tables

Discontinued Operations (Tables)	3 Months Ended
	Oct. 31, 2015
Discontinued Operations and Disposal Groups [Abstract]
Disposal groups, including discontinued operations	The carrying amounts of the major classes of assets and liabilities of Demandforce, QuickBase, and Quicken at October 31, 2015 and July 31, 2015 were as shown in the following table. (In millions) October 31, July 31, Accounts receivable $ 14 $ 19 Deferred income taxes — 5 Prepaid and other current assets 3 2 Property and equipment, net 18 25 Goodwill 156 165 Purchased intangible assets, net 43 43 Other assets 2 2 Total assets 236 261 Accounts payable 7 7 Accrued compensation 13 21 Deferred revenue 45 48 Other current liabilities 8 17 Long-term deferred revenue 38 39 Long-term obligations 16 29 Total liabilities 127 161 Net assets $ 109 $ 100 Net revenue from discontinued operations, income or loss from discontinued operations before income taxes, and the components of net income (loss) from discontinued operations were as follows for the periods indicated: Three Months Ended (In millions) October 31, October 31, Net revenue from discontinued operations: Demandforce $ 25 $ 31 QuickBase 20 17 Quicken 14 13 Total net revenue from discontinued operations $ 59 $ 61 Income (loss) from discontinued operations before income taxes: Demandforce $ (4 ) $ (14 ) QuickBase 4 3 Quicken 4 6 Total income (loss) from discontinued operations before income taxes $ 4 $ (5 ) Net income (loss) from discontinued operations: Net loss from Demandforce operations $ (3 ) $ (9 ) Net income from QuickBase operations 3 2 Net income from Quicken operations 3 4 Tax expense from discontinued operations (3 ) — Total net loss from discontinued operations $ — $ (3 )

Current Liabilities (Tables)

Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2015
Other Liabilities Disclosure [Abstract]
Other current liabilities	Other current liabilities were as follows at the dates indicated: (In millions) October 31, July 31, Reserve for product returns $ 9 $ 12 Reserve for rebates 13 12 Current portion of license fee payable 10 10 Current portion of deferred rent 11 8 Interest payable 3 10 Amounts due for share repurchases 17 — Executive deferred compensation plan liabilities 69 63 Other 33 35 Total other current liabilities $ 165 $ 150

Long-Term Obligations and Com24

Long-Term Obligations and Commitments (Tables)	3 Months Ended
	Oct. 31, 2015
Long-Term Obligations [Abstract]
Other long-term obligations	Other long-term obligations were as follows at the dates indicated: (In millions) October 31, July 31, Total deferred rent $ 63 $ 49 Total license fee payable 35 34 Long-term income tax liabilities 45 45 Long-term deferred income tax liabilities 51 50 Other 12 13 Total long-term obligations 206 191 Less current portion (included in other current liabilities) (22 ) (19 ) Long-term obligations due after one year $ 184 $ 172

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Oct. 31, 2015
Equity [Abstract]
Total share-based compensation expense	The following table summarizes the total share-based compensation expense that we recorded in operating income from continuing operations for the periods shown. Three Months Ended (In millions, except per share amounts) October 31, October 31, Cost of revenue $ 2 $ 1 Selling and marketing 19 16 Research and development 21 19 General and administrative 25 21 Total share-based compensation expense 67 57 Income tax benefit (20 ) (18 ) Increase in net loss from continuing operations $ 47 $ 39 Increase in net loss per share: Basic $ 0.17 $ 0.14 Diluted $ 0.17 $ 0.14
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, 2015 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2015 17,183 Options granted (3 ) Restricted stock units granted (1) (433 ) Share-based awards canceled/forfeited/expired (1)(2) 2,244 Balance at October 31, 2015 18,991 ________________________________ (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, 2015 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2015 8,713 $ 69.13 Granted 3 88.30 Exercised (357 ) 53.17 Canceled or expired (210 ) 70.78 Balance at October 31, 2015 8,149 $ 69.79 Exercisable at October 31, 2015 4,367 $ 52.27
Summary of restricted stock unit activity	A summary of restricted stock unit activity for the three months ended October 31, 2015 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2015 8,916 $ 76.64 Granted 188 96.08 Vested (407 ) 66.43 Forfeited (947 ) 65.70 Nonvested at October 31, 2015 7,750 $ 78.99

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Oct. 31, 2015
Segment Reporting [Abstract]
Financial results by reportable segment	The following table shows our financial results by reportable segment for the periods indicated. Results for all periods presented have been adjusted to exclude results for our Demandforce, QuickBase, and Quicken businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2015. See Note 4, “Discontinued Operations,” for more information. Three Months Ended (In millions) October 31, October 31, Net revenue: Small Business segment $ 546 $ 519 Consumer Tax segment 57 57 Professional Tax segment 110 36 Total net revenue $ 713 $ 612 Operating loss from continuing operations: Small Business segment $ 211 $ 188 Consumer Tax segment (28 ) (36 ) Professional Tax segment 72 (3 ) Total segment operating income 255 149 Unallocated corporate items: Share-based compensation expense (67 ) (57 ) Other common expenses (209 ) (191 ) Amortization of acquired technology (6 ) (7 ) Amortization of other acquired intangible assets (2 ) (3 ) Total unallocated corporate items (284 ) (258 ) Total operating loss from continuing operations $ (29 ) $ (109 )

Description of Business and S27

Description of Business and Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2015USD ($)customer$ / sharesshares	Oct. 31, 2014USD ($)customer$ / sharesshares
Numerator:
Net loss from continuing operations | $	$ (31)	$ (81)
Net loss from discontinued operations | $	0	(3)
Net loss | $	$ (31)	$ (84)
Shares used in basic per share amounts:
Weighted average common shares outstanding (in shares) | shares	272	286
Shares used in diluted per share amounts:
Weighted average common shares outstanding (in shares) | shares	272	286
Dilutive common equivalent shares from stock options and restricted stock awards (in shares) | shares	0	0
Dilutive weighted average common shares outstanding (in shares) | shares	272	286
Basic and diluted net loss per share:
Basic net income per share from continuing operations (in dollars per share)	$ (0.11)	$ (0.28)
Basic net income per share from discontinued operations (in dollars per share)	0	(0.01)
Basic net income per share (in dollars per share)	(0.11)	(0.29)
Diluted net income per share from continuing operations (in dollars per share)	(0.11)	(0.28)
Diluted net income per share from discontinued operations (in dollars per share)	0	(0.01)
Diluted net income per share (in dollars per share)	$ (0.11)	$ (0.29)
Shares excluded from computation of diluted net income 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 | shares	12	16
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect | shares	4	2
Customer Concentration Risk | Sales Revenue, Services, Net
Concentration Risk [Line Items]
Concentration risk, number of customers | customer	0	0
Customer Concentration Risk | Accounts Receivable
Concentration Risk [Line Items]
Concentration risk, number of customers | customer	0	0

Fair Value Measurements (Detail

Fair Value Measurements (Details) - USD ($) $ in Millions		Oct. 31, 2015	Jul. 31, 2015
Liabilities:
Long-term debt		$ 500	$ 500
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Assets:
Total cash equivalents		262	695
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis		452	1,774
Liabilities:
Senior notes	[1]	530	531
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities		6	506
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities		169	546
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities		0	12
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities		15	15
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities		190	1,079
Fair Value, Measurements, Recurring | Level 1
Assets:
Total cash equivalents		262	695
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis		262	695
Liabilities:
Senior notes	[1]	0	0
Fair Value, Measurements, Recurring | Level 1 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 1 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 1 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 1 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 1 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 2
Assets:
Total cash equivalents		0	0
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis		175	1,064
Liabilities:
Senior notes	[1]	530	531
Fair Value, Measurements, Recurring | Level 2 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities		6	506
Fair Value, Measurements, Recurring | Level 2 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities		169	546
Fair Value, Measurements, Recurring | Level 2 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities		0	12
Fair Value, Measurements, Recurring | Level 2 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 2 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities		175	1,064
Fair Value, Measurements, Recurring | Level 3
Assets:
Total cash equivalents		0	0
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis		15	15
Liabilities:
Senior notes	[1]	0	0
Fair Value, Measurements, Recurring | Level 3 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 3 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 3 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities		0	0
Fair Value, Measurements, Recurring | Level 3 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities		15	15
Fair Value, Measurements, Recurring | Level 3 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities		$ 15	$ 15
[1]	Carrying value on our balance sheets at October 31, 2015 was $500 million and at July 31, 2015 was $500 million. See Note 6.

Fair Value Measurements (Deta29

Fair Value Measurements (Details 1) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015
Cash and cash equivalents
Cash equivalents:
Total cash equivalents	$ 474	$ 808
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement
Cash equivalents:
Total cash equivalents	262	695
Available-for-sale securities:
Total available-for-sale securities	190	1,079
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Cash and cash equivalents
Cash equivalents:
Total cash equivalents	90	533
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Cash equivalents in funds held for customers
Cash equivalents:
Total cash equivalents	172	162
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Available For Sale Debt Securities In Investments
Available-for-sale securities:
Total available-for-sale securities	0	889
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Available For Sale Debt Securities In Funds Held For Customers
Available-for-sale securities:
Total available-for-sale securities	175	175
Fair Value, Measurements, Recurring | Estimate of Fair Value Measurement | Available For Sale Debt Securities In long term investments
Available-for-sale securities:
Total available-for-sale securities	15	15
Fair Value, Measurements, Recurring | Level 1
Cash equivalents:
Total cash equivalents	262	695
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Cash and cash equivalents
Cash equivalents:
Total cash equivalents	90	533
Fair Value, Measurements, Recurring | Level 1 | Cash equivalents in funds held for customers
Cash equivalents:
Total cash equivalents	172	162
Fair Value, Measurements, Recurring | Level 1 | Available For Sale Debt Securities In Investments
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Available For Sale Debt Securities In Funds Held For Customers
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 1 | Available For Sale Debt Securities In long term investments
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 2
Cash equivalents:
Total cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	175	1,064
Fair Value, Measurements, Recurring | Level 2 | Cash and cash equivalents
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 2 | Cash equivalents in funds held for customers
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 2 | Available For Sale Debt Securities In Investments
Available-for-sale securities:
Total available-for-sale securities	0	889
Fair Value, Measurements, Recurring | Level 2 | Available For Sale Debt Securities In Funds Held For Customers
Available-for-sale securities:
Total available-for-sale securities	175	175
Fair Value, Measurements, Recurring | Level 2 | Available For Sale Debt Securities In long term investments
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3
Cash equivalents:
Total cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	15	15
Fair Value, Measurements, Recurring | Level 3 | Cash and cash equivalents
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 3 | Cash equivalents in funds held for customers
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Measurements, Recurring | Level 3 | Available For Sale Debt Securities In Investments
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Available For Sale Debt Securities In Funds Held For Customers
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Measurements, Recurring | Level 3 | Available For Sale Debt Securities In long term investments
Available-for-sale securities:
Total available-for-sale securities	$ 15	$ 15

Cash and Cash Equivalents, In30

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classification on Balance Sheets (Details) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014	Jul. 31, 2014
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	$ 474	$ 808	$ 542	$ 849
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	849	2,062
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	849	2,061
Cash and cash equivalents
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	474	808
Cash and cash equivalents, Fair Value Disclosure	474	808
Investments
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	0	890
Investments and funds, Fair Value	0	889
Funds held for customers
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	347	337
Investments and funds, Fair Value	347	337
Long-term investments
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	28	27
Investments and funds, Fair Value	$ 28	$ 27

Cash and Cash Equivalents, In31

Cash and Cash Equivalents, Investments and Funds Held for Customers - Type of issue (Details) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015	Oct. 31, 2014	Jul. 31, 2014
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	$ 474	$ 808	$ 542	$ 849
Available-for-sale securities:
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	849	2,062
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	849	2,061
Total cash and cash equivalents
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	646	970
Cash and cash equivalents, Fair Value Disclosure	646	970
Municipal bonds
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	6	507
Available-for-sale securities, Fair Value Disclosure	6	506
Corporate notes
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	169	546
Available-for-sale securities, Fair Value Disclosure	169	546
U.S. agency securities
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	0	12
Available-for-sale securities, Fair Value Disclosure	0	12
Municipal auction rate securities
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	15	15
Available-for-sale securities, Fair Value Disclosure	15	15
Total available-for-sale debt securities
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	190	1,080
Available-for-sale securities, Fair Value Disclosure	190	1,079
Other long-term investments
Available-for-sale securities:
Other long-term investments	13	12
Available-for-sale securities, Fair Value Disclosure	$ 13	$ 12

Cash and Cash Equivalents, In32

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classified by the stated maturity date (Details) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015
Available-for-sale Securities, Debt Maturities
Due within one year, Amortized Cost	$ 99	$ 434
Due within one year, Fair Value	99	435
Due within two years, Amortized Cost	31	443
Due within two years, Fair Value	31	442
Due within three years, Amortized Cost	45	156
Due within three years, Fair Value	45	156
Due after three years, Amortized Cost	15	47
Due after three years, Fair Value	15	46
Total available-for-sale debt securities, Amortized Cost	190	1,080
Total available-for-sale debt securities, Fair Value	$ 190	$ 1,079

Discontinued Operations Carryin

Discontinued Operations Carrying Amounts of Major Assets and Liabilities (Details) $ in Millions	Oct. 31, 2015USD ($)business	Jul. 31, 2015USD ($)
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of businesses held for sale | business	3
Demandforce, QuickBase, and Quicken
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Accounts receivable	$ 14	$ 19
Deferred income taxes	0	5
Prepaid and other current assets	3	2
Property and equipment, net	18	25
Goodwill	156	165
Purchased intangible assets, net	43	43
Other assets	2	2
Total assets	236	261
Accounts payable	7	7
Accrued compensation	13	21
Deferred revenue	45	48
Other current liabilities	8	17
Long-term deferred revenue	38	39
Long-term obligations	16	29
Total liabilities	127	161
Net assets	$ 109	$ 100

Discontinued Operations Net Inc

Discontinued Operations Net Income (Loss) from Discontinued Operations (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue from discontinued operations	$ 59	$ 61
Income (loss) from discontinued operations before income taxes	4	(5)
Net income (loss) from discontinued operations	0	(3)
Income tax (expense) benefit from discontinued operations	(3)	0
Demandforce
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue from discontinued operations	25	31
Income (loss) from discontinued operations before income taxes	(4)	(14)
Net income (loss) from discontinued operations	(3)	(9)
QuickBase
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue from discontinued operations	20	17
Income (loss) from discontinued operations before income taxes	4	3
Net income (loss) from discontinued operations	3	2
Quicken
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net revenue from discontinued operations	14	13
Income (loss) from discontinued operations before income taxes	4	6
Net income (loss) from discontinued operations	$ 3	$ 4

Current Liabilities (Details)

Current Liabilities (Details)	Feb. 17, 2012USD ($)	Oct. 31, 2015USD ($)	Jul. 31, 2015USD ($)
Current Liabilities (Textuals)
Unsecured revolving credit facility	$ 500,000,000
Borrowings under credit facility		$ 350,000,000	$ 0
Line of Credit New
Current Liabilities (Textuals)
Maximum ratio of debt to annual earnings before interest, taxes, depreciation and amortization as per agreement (not greater than)	3.25
Minimum ratio of annual earnings before interest, taxes, depreciation and amortization to interest payable as per agreement (not less than)	3
JP Morgan Alternate Base | Line of Credit | Minimum
Current Liabilities (Textuals)
Basis spread on variable rate	0.00%
JP Morgan Alternate Base | Line of Credit | Maximum
Current Liabilities (Textuals)
Basis spread on variable rate	0.50%
LIBOR | Line of Credit | Minimum
Current Liabilities (Textuals)
Basis spread on variable rate	0.90%
LIBOR | Line of Credit | Maximum
Current Liabilities (Textuals)
Basis spread on variable rate	1.50%
Revolving Credit Facility | Unsecured Debt
Current Liabilities (Textuals)
Borrowings under credit facility		350,000,000
Line of credit facility, remaining borrowing capacity		$ 150,000,000

Current Liabilities - Other cur

Current Liabilities - Other current liabilities (Details) - USD ($) $ in Millions	Oct. 31, 2015	Jul. 31, 2015
Other Liabilities, Current [Abstract]
Reserve for product returns	$ 9	$ 12
Reserve for rebates	13	12
Current portion of license fee payable	10	10
Current portion of deferred rent	11	8
Interest payable	3	10
Amounts due for share repurchases	17	0
Executive deferred compensation plan liabilities	69	63
Other	33	35
Total other current liabilities	$ 165	$ 150

Long-Term Obligations and Com37

Long-Term Obligations and Commitments (Details) - USD ($)	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Nov. 09, 2015	Jul. 31, 2015	Mar. 12, 2007
Long Term Obligations (Textuals)
Cash paid for interest on the Notes	$ 14,000,000	$ 14,000,000
Other long-term obligations
Total deferred rent	63,000,000			$ 49,000,000
Total license fee payable	35,000,000			34,000,000
Long-term income tax liabilities	45,000,000			45,000,000
Long-term deferred income tax liabilities	51,000,000			50,000,000
Other	12,000,000			13,000,000
Total long-term obligations	206,000,000			191,000,000
Less current portion (included in other current liabilities)	(22,000,000)			(19,000,000)
Long-term obligations due after one year	$ 184,000,000			$ 172,000,000
Capital Addition Purchase Commitments | Subsequent Event
Other long-term obligations
Payments to acquire buildings			$ 262,000,000
5.75 percent fixed-rate notes due 2017
Long Term Obligations (Textuals)
Senior notes					$ 500,000,000
Senior notes, rate					5.75%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	22.00%	31.00%
Effective income tax rate reconciliation, excluding discrete tax benefits, percent	36.00%	37.00%
Federal statutory income tax rate	35.00%	35.00%
Total amount of unrecognized tax benefits			$ 56
Unrecognized tax benefits, net of related deferred tax assets			37
Favorable net impact to income tax expense due to recognition of tax benefits			$ 37

Stockholders' Equity (Details)

Stockholders' Equity (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Nov. 20, 2015	Oct. 31, 2015	Oct. 31, 2014	Jul. 31, 2015
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchased (in shares)		14.4	1.3
Common stock repurchased, value		$ 1,270	$ 114
Amounts due for share repurchases		$ 17		$ 0
Common stock, dividends, per share, cash paid (in dollars per share)		$ 0.3
Payments of dividends		$ 82	$ 74
Dividends declared per common share (in dollars per share)		$ 0.30	$ 0.25
Allocated share-based compensation expense		$ 67	$ 57
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share based compensation expense		$ 56
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years		2 years 2 months
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized compensation cost related to non-vested share based compensation expense		$ 392
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years		2 years 1 month
Discontinued Operations, Disposed of by Sale
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense		$ 2	$ 4
Software and Software Development Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized computer software, gross		2
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared per common share (in dollars per share)	$ 0.3
New Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, remaining authorized repurchase amount		$ 1.4

Stockholders' Equity Share-Base

Stockholders' Equity Share-Based Compensation Expense (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Oct. 31, 2015	Oct. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 67	$ 57
Income tax benefit	(20)	(18)
Increase in net loss from continuing operations	$ 47	$ 39
Earnings Per Share, Increase (Decrease)
Basic (dollars per share)	$ 0.17	$ 0.14
Diluted (dollars per share)	$ 0.17	$ 0.14
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 2	$ 1
Selling and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	19	16
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	21	19
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 25	$ 21

Stockholders' Equity Share-Ba41

Stockholders' Equity Share-Based Awards Available for Grant (Details)	3 Months Ended
	Oct. 31, 2015shares
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant [Roll Forward]
Shares Available for Grant, Beginning Balance (in shares)	17,183,000
Options granted (in shares)	(3,000)
Restricted stock units granted (in shares)	(433,000)	[1]
Share-based awards canceled/forfeited/expired (in shares)	2,244,000	[1],[2]
Shares Available for Grant, Ending Balance (in shares)	18,991,000
Pool shares reduced for each share granted (in shares)	2.3
Pool shares increased for each share forfeited (in shares)	2.3
[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.

Stockholders' Equity Stock-Opti

Stockholders' Equity Stock-Option Activity and Related Share-Based Compensation Expense (Details) shares in Thousands	3 Months Ended
	Oct. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	8,713
Options granted, number of shares (in shares) | shares	3
Options exercised, number of shares (in shares) | shares	(357)
Options canceled or expired, number of shares (in shares) | shares	(210)
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | shares	8,149
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted average exercise price per share, Beginning Balance (in dollars per share)	$ 69.13
Options granted, weighted average exercise price per share (in dollars per share)	88.30
Options exercised, weighted average exercise price per share (in dollars per share)	53.17
Options canceled or expired, weighted average exercise price per share (in dollars per share)	70.78
Weighted average exercise price per share, Beginning Balance (in dollars per share)	$ 69.79
Exercisable (in shares) | shares	4,367
Exercisable, Weighted average exercise price per share (in dollars per share)	$ 52.27

Stockholders' Equity Restricted

Stockholders' Equity Restricted Stock Unit Activity and Related Share-Based Compensation Expense (Details) shares in Thousands	3 Months Ended
	Oct. 31, 2015$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested at beginning of period (in shares) | shares	8,916
Granted, Number of shares (in shares) | shares	188
Vested, Number of Shares (in shares) | shares	(407)
Forfeited, Number of Shares (in shares) | shares	(947)
Nonvested at end of period (in shares) | shares	7,750
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Nonvested, Weighted Average Grant Date Fair Value, at beginning of period (in dollars per shares)	$ 76.64
Granted, Weighted Average Grant Date Fair Value (in dollars per shares)	96.08
Vested, Weighted Average Grant Date Fair Value (in dollars per shares)	66.43
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares)	65.70
Nonvested, Weighted Average Grant Date Fair Value, at end of period (in dollars per shares)	$ 78.99

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended
	Oct. 31, 2015USD ($)segment	Oct. 31, 2014USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
International total net revenue as a percentage of total (less than)	5.00%
Financial results by reportable segment
Total net revenue	$ 713	$ 612
Total operating loss from continuing operations	(29)	(109)
Unallocated corporate items:
Share-based compensation expense	(69)	(61)
Amortization of other acquired intangible assets	(2)	(3)
Operating Segments
Financial results by reportable segment
Total operating loss from continuing operations	255	149
Corporate, Non-Segment
Financial results by reportable segment
Total operating loss from continuing operations	(284)	(258)
Unallocated corporate items:
Share-based compensation expense	(67)	(57)
Other common expenses	(209)	(191)
Corporate, Non-Segment | Technology-Based Intangible Assets
Unallocated corporate items:
Amortization of other acquired intangible assets	(6)	(7)
Corporate, Non-Segment | Other Intangible Assets
Unallocated corporate items:
Amortization of other acquired intangible assets	(2)	(3)
Small Business segment
Financial results by reportable segment
Total net revenue	546	519
Total operating loss from continuing operations	211	188
Consumer Tax segment
Financial results by reportable segment
Total net revenue	57	57
Total operating loss from continuing operations	(28)	(36)
Professional Tax segment
Financial results by reportable segment
Total net revenue	110	36
Total operating loss from continuing operations	$ 72	$ (3)