Intuit (INTU) 10-Q 20 Nov 17 2018 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Oct. 31, 2017	Nov. 14, 2017
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, 2017
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		255,649,800

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Net revenue:
Product	$ 319	$ 297
Service and other	567	481
Total net revenue	886	778
Cost of revenue:
Cost of product revenue	24	29
Cost of service and other revenue	170	151
Amortization of acquired technology	2	3
Selling and marketing	308	283
Research and development	293	246
General and administrative	145	126
Amortization of other acquired intangible assets	1	1
Total costs and expenses	943	839
Operating loss	(57)	(61)
Interest expense	(5)	(9)
Interest and other income (expense), net	3	(2)
Loss before income taxes	(59)	(72)
Income tax benefit	(42)	(42)
Net loss	$ (17)	$ (30)
Earnings Per Share, Basic
Basic net loss per share (in dollars per share)	$ (0.07)	$ (0.12)
Shares used in basic per share calculations (in shares)	256	258
Earnings Per Share, Diluted
Diluted net loss per share (in dollars per share)	$ (0.07)	$ (0.12)
Shares used in diluted per share calculations (in shares)	256	258
Dividends
Cash dividends declared per common share (in dollars per share)	$ 0.39	$ 0.34

Condensed Consolidated Stateme3

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (17)	$ (30)
Other comprehensive income (loss), net of income taxes:
Unrealized losses on available-for-sale debt securities	0	(1)
Foreign currency translation losses	(6)	(4)
Total other comprehensive income (loss), net	(6)	(5)
Comprehensive loss	$ (23)	$ (35)

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Current assets:
Cash and cash equivalents	$ 529	$ 529
Investments	248	248
Accounts receivable, net	116	103
Income taxes receivable	61	63
Prepaid expenses and other current assets	142	100
Current assets before funds held for customers	1,096	1,043
Funds held for customers	319	372
Total current assets	1,415	1,415
Long-term investments	31	31
Property and equipment, net	1,016	1,030
Goodwill	1,294	1,295
Acquired intangible assets, net	18	22
Long-term deferred income taxes	144	132
Other assets	146	143
Total assets	4,064	4,068
Current liabilities:
Short-term debt	450	50
Accounts payable	220	157
Accrued compensation and related liabilities	146	300
Deferred revenue	799	887
Other current liabilities	183	178
Current liabilities before customer fund deposits	1,798	1,572
Customer fund deposits	319	372
Total current liabilities	2,117	1,944
Long-term debt	425	438
Long-term deferred revenue	191	202
Other long-term obligations	128	130
Total liabilities	2,861	2,714
Commitments and contingencies
Stockholders’ equity:
Preferred stock	0	0
Common stock and additional paid-in capital	4,999	4,857
Treasury stock, at cost	(10,948)	(10,778)
Accumulated other comprehensive loss	(28)	(22)
Retained earnings	7,180	7,297
Total stockholders’ equity	1,203	1,354
Total liabilities and stockholders’ equity	$ 4,064	$ 4,068

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
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 2		$ 6			$ (4)
Beginning Balance, in shares at Jul. 31, 2016		257,853
Beginning Balance at Jul. 31, 2016	1,161		4,445	$ (9,939)	$ (32)	6,687
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive loss	(35)				(5)	(30)
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		975
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	(2)		(2)
Stock repurchases under stock repurchase programs (in shares)		(1,760)
Stock repurchases under stock repurchase programs	(192)			(192)
Dividends and dividend rights declared	(89)					(89)
Share-based compensation expense	91		91
Ending Balance, in shares at Oct. 31, 2016		257,068
Ending Balance at Oct. 31, 2016	936		4,540	(10,131)	(37)	6,564
Beginning Balance, in shares at Jul. 31, 2017		255,668
Beginning Balance at Jul. 31, 2017	1,354		4,857	(10,778)	(22)	7,297
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive loss	(23)				(6)	(17)
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		1,224
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	$ 44		44
Stock repurchases under stock repurchase programs (in shares)	(1,200)	(1,225)
Stock repurchases under stock repurchase programs	$ (170)			(170)
Dividends and dividend rights declared	(100)					(100)
Share-based compensation expense	98		98
Ending Balance, in shares at Oct. 31, 2017		255,667
Ending Balance at Oct. 31, 2017	$ 1,203		$ 4,999	$ (10,948)	$ (28)	$ 7,180

Condensed Consolidated Stateme6

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.39	$ 0.34

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Cash flows from operating activities:
Net loss	$ (17)	$ (30)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	60	49
Amortization of acquired intangible assets	5	6
Share-based compensation expense	97	89
Deferred income taxes	(11)	(9)
Other	2	1
Total adjustments	153	136
Changes in operating assets and liabilities:
Accounts receivable	(14)	(14)
Income taxes receivable	2	(38)
Prepaid expenses and other assets	(25)	(50)
Accounts payable	61	(2)
Accrued compensation and related liabilities	(147)	(148)
Deferred revenue	(99)	(67)
Other liabilities	8	8
Total changes in operating assets and liabilities	(214)	(311)
Net cash used in operating activities	(78)	(205)
Cash flows from investing activities:
Purchases of corporate and customer fund investments	(86)	(125)
Sales of corporate and customer fund investments	38	298
Maturities of corporate and customer fund investments	46	22
Net change in cash and cash equivalents held to satisfy customer fund obligations	53	(22)
Net change in customer fund deposits	(53)	22
Purchases of property and equipment	(50)	(86)
Other	(23)	(11)
Net cash provided by (used in) investing activities	(75)	98
Cash flows from financing activities:
Proceeds from borrowings under revolving credit facility	400	100
Repayment of debt	(13)	0
Proceeds from issuance of stock under employee stock plans	83	43
Payments for employee taxes withheld upon vesting of restricted stock units	(39)	(45)
Cash paid for purchases of treasury stock	(168)	(175)
Dividends and dividend rights paid	(105)	(89)
Net cash provided by (used in) financing activities	158	(166)
Effect of exchange rates on cash and cash equivalents	(5)	(5)
Net decrease in cash and cash equivalents	0	(278)
Cash and cash equivalents at beginning of period	529	638
Cash and cash equivalents at end of period	$ 529	$ 360

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	3 Months Ended
	Oct. 31, 2017
Accounting Policies [Abstract]
Description of Business and Summary of Significant Accounting Policies	1. Description of Business and Summary of Significant Accounting Policies Description of Business Intuit helps consumers, small businesses, and the self-employed prosper by delivering financial management and compliance products and services. We also provide specialized tax products to accounting professionals, who are key partners that help us reach small business customers. Our flagship brands, QuickBooks and TurboTax, help customers run their small businesses, pay employees and bills, separate business and personal expenses, track their money, and file income taxes. ProSeries and Lacerte are our leading 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 reportable segments. See Note 9, “ Segment Information ,” for more information. 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, 2017 . Results for the three months ended October 31, 2017 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2018 or any other future period. Seasonality Our Consumer 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, 2017 . There have been no changes to our significant accounting policies during the first three months of fiscal 2018 . 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, promotional discounts 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 and unrecognized compensation expense that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense that is 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 and unrecognized compensation expense that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense that is 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 and the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs 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 $ (17 ) $ (30 ) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 256 258 Shares used in diluted per share amounts: Weighted average common shares outstanding 256 258 Dilutive common equivalent shares from stock options and restricted stock awards — — Dilutive weighted average common shares outstanding 256 258 Basic and diluted net loss per share: Basic net loss per share $ (0.07 ) $ (0.12 ) Diluted net loss per share $ (0.07 ) $ (0.12 ) Shares excluded from computation of diluted net loss per share: Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period 12 12 Weighted average stock options and restricted stock units that would have been excluded from the computation of dilutive common equivalent shares outstanding if net income had been reported in the period due to their anti-dilutive effect 2 4 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, 2017 or October 31, 2016 . No customer accounted for 10% or more of gross accounts receivable at October 31, 2017 or July 31, 2017 . Accounting Standards Not Yet Adopted Goodwill Impairment - In January 2017 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard is effective for fiscal years beginning after December 15, 2019, 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, 2020. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2017-04 on our consolidated financial statements. Business Combinations - In January 2017 the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business . ” This new standard clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, 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, 2018. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2017-01 on our consolidated financial statements. Statement of Cash Flows - In August 2016 the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years 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. The standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the impact of our pending adoption of ASU 2016-15 on our consolidated financial statements. Financial Instruments - In June 2016 the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). ” This new standard requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard is effective for fiscal years beginning after December 15, 2019, 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, 2020. Earlier adoption is permitted in the first quarter of our fiscal year beginning August 1, 2019. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements. Leases - In February 2016 the FASB issued ASU 2016-02, “ Leases (Topic 842). ” This new standard amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The standard is effective for fiscal years beginning after December 15, 2018, 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, 2019. Early adoption is permitted. This standard is required to be adopted using a modified retrospective approach. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements. Revenue Recognition - In May 2014 the FASB issued ASU 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. This new standard supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the new standard 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. The new standard 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. We plan to adopt Topic 606 utilizing the full retrospective transition method when it becomes effective for us in the first fiscal quarter beginning August 1, 2018. We have completed our preliminary assessment of the new standard and are continuing to assess all potential impacts of the standard. We currently believe the most significant changes will be the timing of revenue recognition related to our QuickBooks desktop solutions and our consumer and professional tax desktop solutions. Under the current standard, we recognize substantially all of the revenue for QuickBooks desktop solutions ratably over the period that enhancements and connected services are provided, which is approximately three years. Under the new standard, we will recognize software license revenue for QuickBooks desktop solutions at the time the license is delivered. Due to the upfront recognition of Quickbooks desktop solutions, upon adoption, we will remove deferred revenue from our liabilities through a cumulative adjustment to retained earnings. We expect the timing of QuickBooks desktop revenue in our Small Business & Self-Employed reporting segment to shift to earlier quarters within each fiscal year as a result of these changes. With respect to our consumer and professional tax desktop solutions, under the current standard, we recognize all revenue related to the desktop solutions as services are provided. Under the new standard, we will recognize revenue for the desktop tax preparation software license and related tax form updates as they are delivered. We will recognize revenue for our electronic filing and connected services as those services are provided. As sales and delivery of desktop tax preparation software solutions are concentrated from November through April, we expect the timing of the related desktop revenue for our Consumer and Strategic Partner reporting segments to shift to earlier quarters within each fiscal year as a result of these changes. Under Topic 606 we do not expect our annual total and reporting segment revenue growth rates to be significantly different as compared to growth rates under the current standard. Accounting for commissions under the new standard will result in the deferral of incremental commission costs for obtaining contracts, which we do not expect to be material.

Fair Value Measurements

Fair Value Measurements	3 Months Ended
	Oct. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	2. Fair Value Measurements Fair Value Hierarchy 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, 2017 July 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents, primarily time deposits $ 28 $ — $ — $ 28 $ 181 $ — $ — $ 181 Available-for-sale debt securities: Municipal bonds — 55 — 55 — 63 — 63 Corporate notes — 383 — 383 — 382 — 382 U.S. agency securities — 10 — 10 — 3 — 3 Municipal auction rate securities — — 15 15 — — 15 15 Total available-for-sale securities — 448 15 463 — 448 15 463 Total assets measured at fair value on a recurring basis $ 28 $ 448 $ 15 $ 491 $ 181 $ 448 $ 15 $ 644 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, 2017 July 31, 2017 (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 $ 28 $ — $ — $ 28 $ 181 $ — $ — $ 181 Available-for-sale securities: In investments $ — $ 248 $ — $ 248 $ — $ 248 $ — $ 248 In funds held for customers — 200 — 200 — 200 — 200 In long-term investments — — 15 15 — — 15 15 Total available-for-sale securities $ — $ 448 $ 15 $ 463 $ — $ 448 $ 15 $ 463 We value our Level 1 assets, consisting primarily of time deposits, 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 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 the 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, 2017

Cash and Cash Equivalents, Inve

Cash and Cash Equivalents, Investments and Funds Held for Customers	3 Months Ended
	Oct. 31, 2017
Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]
Cash and Cash Equivalents, Investments and Funds Held for Customers	3. 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 time deposits in all periods presented. Investments at October 31, 2017 consisted of available-for-sale investment-grade debt securities that we carried 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, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 529 $ 529 $ 529 $ 529 Investments 248 248 247 248 Funds held for customers 319 319 372 372 Long-term investments 31 31 31 31 Total cash and cash equivalents, investments, and funds held for customers $ 1,127 $ 1,127 $ 1,179 $ 1,180 The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. October 31, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash and cash equivalents $ 648 $ 648 $ 701 $ 701 Available-for-sale debt securities: Municipal bonds 55 55 63 63 Corporate notes 383 383 381 382 U.S. agency securities 10 10 3 3 Municipal auction rate securities 15 15 15 15 Total available-for-sale debt securities 463 463 462 463 Other long-term investments 16 16 16 16 Total cash and cash equivalents, investments, and funds held for customers $ 1,127 $ 1,127 $ 1,179 $ 1,180 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 or expense on our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2017 and October 31, 2016 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, 2017 and July 31, 2017 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, 2017 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at October 31, 2017 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, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 197 $ 197 $ 209 $ 209 Due within two years 162 162 164 164 Due within three years 70 70 59 60 Due after three years 34 34 30 30 Total available-for-sale debt securities $ 463 $ 463 $ 462 $ 463

Current Liabilities

Current Liabilities	3 Months Ended
	Oct. 31, 2017
Other Liabilities Disclosure [Abstract]
Current Liabilities	4. Current Liabilities Short-Term Debt On February 1, 2016 we entered into a master credit agreement with certain institutional lenders for a five -year credit facility in an aggregate principal amount of $1.5 billion . The master credit agreement includes a $500 million unsecured term loan and a $1 billion unsecured revolving credit facility. At October 31, 2017 , $475 million was outstanding under the term loan, of which $50 million was classified as short-term debt. See Note 5, “ Long-Term Obligations and Commitments – Long-Term Debt,” for more information regarding the term loan. Unsecured Revolving Credit Facility The master credit agreement we entered into on February 1, 2016 includes a $1 billion unsecured revolving credit facility that will expire on February 1, 2021. Under the master credit agreement we may, subject to certain customary conditions, on one or more occasions increase commitments under the revolving credit facility in an amount not to exceed $250 million in the aggregate and may extend the maturity date up to two times. Advances under the revolving credit facility accrue interest at rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.0% to 0.5% or the London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.9% to 1.5% . Actual margins under either election will be based on our senior debt credit ratings. The master credit 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 annual interest expense 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, 2017 . During the three months ended October 31, 2017 we borrowed $400 million under this revolving credit facility and at October 31, 2017 $400 million was outstanding. We paid $1 million in cash for interest on the revolving credit facility during the three months ended October 31, 2017 . Cash paid for interest on the revolving credit facility during the three months ended October 31, 2016 was not significant. Other Current Liabilities Other current liabilities were as follows at the dates indicated: (In millions) October 31, July 31, Executive deferred compensation plan liabilities $ 95 $ 83 Reserve for promotional discounts and rebates 18 19 Reserve for product returns 7 7 Current portion of license fee payable 10 10 Current portion of deferred rent 5 6 Current portion of dividend payable 5 9 Other 43 44 Total other current liabilities $ 183 $ 178 The balances of several of our other current liabilities, particularly our reserves for product returns and promotional discounts and rebates, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,”

Long-Term Obligations and Commi

Long-Term Obligations and Commitments	3 Months Ended
	Oct. 31, 2017
Long-Term Obligations [Abstract]
Long-Term Obligations and Commitments	5. Long-Term Obligations and Commitments Long-Term Debt On February 1, 2016 we entered into a master credit agreement with certain institutional lenders for a five-year credit facility in an aggregate principal amount of $1.5 billion , which includes a $500 million unsecured term loan. Under the master credit agreement we may, subject to certain customary conditions, on one or more occasions increase commitments under the term loan in an amount not to exceed $500 million in the aggregate. The term loan accrues interest at rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.125% to 0.875% or LIBOR plus a margin that ranges from 1.125% to 1.875% . Actual margins under either election will be based on our senior debt credit ratings. The master credit agreement includes customary affirmative and negative covenants. See Note 4, “ Current Liabilities – Unsecured Revolving Credit Facility,” for more information. The term loan is subject to quarterly principal payments, which began in July 2017, of 2.5% of the original loan amount, with the balance payable on February 1, 2021. At October 31, 2017 , $475 million was outstanding under the term loan, of which $50 million was classified as short-term debt. Interest on the term loan is payable monthly. We paid $3 million and $2 million in cash for interest on the term loan during the three months ended October 31, 2017 and October 31, 2016 respectively. Other Long-Term Obligations Other long-term obligations were as follows at the dates indicated: (In millions) October 31, July 31, Total deferred rent $ 48 $ 49 Long-term income tax liabilities 54 53 Total license fee payable 18 18 Total dividend payable 9 13 Long-term deferred income tax liabilities 7 7 Other 15 16 Total long-term obligations 151 156 Less current portion (included in other current liabilities) (23 ) (26 ) Long-term obligations due after one year $ 128 $ 130 Operating Lease Commitments and Unconditional Purchase Obligations We describe our operating lease commitments and purchase obligations in Note 8 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2017 . On September 13, 2017 we signed an agreement that includes a minimum purchase commitment of $450 million through August 31, 2022. There were no other significant changes in our operating lease commitments or purchase obligations during the three months ended October 31, 2017

Income Taxes

Income Taxes	3 Months Ended
	Oct. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	6. 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. In the first quarter of fiscal 2017 we adopted ASU 2016-09, “Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” As a result, we recognized excess tax benefits on share-based compensation of $25 million and $19 million in our provision for income taxes for the three months ended October 31, 2017 and 2016 respectively. Our effective tax rate for the three months ended October 31, 2017 was approximately 72% . Excluding discrete tax items primarily related to share-based compensation tax benefits resulting from the adoption of ASU 2016-09, our effective tax rate for the period was 33% and did not differ significantly from the federal statutory rate of 35% . The tax benefit we received from the domestic production activities deduction and the federal research and experimentation credit were partially offset by the tax expense related to state income taxes and nondeductible share-based compensation. Our effective tax rate for the three months ended October 31, 2016 was approximately 58% . Excluding discrete tax items primarily related to share-based compensation tax benefits resulting from the adoption of ASU 2016-09, our effective tax rate for the period was 34% and did not differ significantly from the federal statutory rate of 35% . The tax benefit we received from the domestic production activities deduction and the federal research and experimentation credit were partially offset by the tax expense related to state income taxes and nondeductible share-based compensation. Unrecognized Tax Benefits and Other Considerations The total amount of our unrecognized tax benefits at July 31, 2017 was $61 million. Net of related deferred tax assets, unrecognized tax benefits were $38 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $38 million. There were no material changes to these amounts during the three months ended October 31, 2017

Stockholders' Equity

Stockholders' Equity	3 Months Ended
	Oct. 31, 2017
Equity [Abstract]
Stockholders' Equity	7. Stockholders’ Equity Stock Repurchase Programs and Treasury Shares Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. We repurchased 1.2 million shares for $170 million under these programs during the three months ended October 31, 2017 . Included in this amount were $2 million of repurchases which occurred in late October 2017 and were settled in early November 2017. At October 31, 2017 , we had authorization from our Board of Directors to expend up to an additional $1.4 billion for stock repurchases. Future stock repurchases under the current programs 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, 2017 we declared and paid quarterly cash dividends that totaled $0.39 per share of outstanding common stock or $105 million. In November 2017 our Board of Directors declared a quarterly cash dividend of $0.39 per share of outstanding common stock payable on January 18, 2018 to stockholders of record at the close of business on January 10, 2018 . Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors. Share-Based Compensation Expense The following table summarizes the total share-based compensation expense that we recorded in operating loss for the periods shown. Three Months Ended (In millions) October 31, October 31, Cost of revenue $ 3 $ 2 Selling and marketing 25 25 Research and development 39 36 General and administrative 30 26 Total share-based compensation expense $ 97 $ 89 We capitalized $1 million in share-based compensation related to internal use software projects during the three months ended October 31, 2017 and $2 million during the three months ended October 31, 2016 . 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, 2017 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2017 25,164 Options granted — Restricted stock units granted (1) (521 ) Share-based awards canceled/forfeited/expired (1)(2) 1,536 Balance at October 31, 2017 26,179 ____________________________________________________ (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 RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs 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, 2017 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2017 7,488 $ 104.50 Granted — — Exercised (671 ) 80.33 Canceled or expired (109 ) 115.17 Balance at October 31, 2017 6,708 $ 106.74 Exercisable at October 31, 2017 3,262 $ 88.83 At October 31, 2017 , there was approximately $73 million of unrecognized compensation cost related to non-vested stock options with a weighted average vesting period of 2.2 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur. Restricted Stock Unit Activity and Related Share-Based Compensation Expense A summary of restricted stock unit (RSU) activity for the three months ended October 31, 2017 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2017 8,636 $ 98.76 Granted 226 140.80 Vested (681 ) 65.30 Forfeited (568 ) 76.70 Nonvested at October 31, 2017 7,613 $ 104.65 At October 31, 2017 , there was approximately $626 million of unrecognized compensation cost related to non-vested RSUs with a weighted average vesting period of 2.2

Litigation

Litigation	3 Months Ended
	Oct. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Litigation	8. Litigation In fiscal 2015 Intuit was contacted by certain state and federal regulatory authorities in connection with inquiries regarding an increase during the 2015 tax season in attempts by criminals using stolen identity information to file fraudulent tax returns and claim refunds. Intuit provided information in response to those inquiries. A consolidated putative class action lawsuit was filed by individuals who claim to have suffered damages in connection with the 2015 events. We believe that the allegations in that lawsuit are without merit, and we intend to vigorously defend against them.

Segment Information

Segment Information	3 Months Ended
	Oct. 31, 2017
Segment Reporting [Abstract]
Segment Information	9. Segment Information In August 2017, we aligned our segment reporting for fiscal 2018 with our core customers and business partners. The Consumer Ecosystem offering moved from the Small Business segment into the Consumer Tax segment. The company also renamed the Small Business, Consumer Tax, and ProConnect segments as the Small Business & Self-Employed, Consumer, and Strategic Partner segments. The Strategic Partner segment will continue to manage our professional tax offerings while now focusing on partners instrumental to the success of Intuit’s ecosystem. We have defined our 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 & Self-Employed : This segment targets small businesses, the self-employed, and the accounting professionals who serve and advise them around the globe. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. Consumer : This segment targets consumers and includes TurboTax income tax preparation products and services sold in the U.S. and Canada. Strategic Partner : This segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online. All of our segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was less than 5% of consolidated total net revenue for all periods presented. We include expenses such as corporate selling and marketing, product development, 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, 2017 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. Segment results for fiscal 2017 have been reclassified to conform to the fiscal 2018 segment presentation, as described earlier in this footnote. Three Months Ended (In millions) October 31, October 31, Net revenue: Small Business & Self-Employed $ 694 $ 593 Consumer 78 73 Strategic Partner 114 112 Total net revenue $ 886 $ 778 Operating income (loss): Small Business & Self-Employed $ 301 $ 239 Consumer (55 ) (38 ) Strategic Partner 72 70 Total segment operating income 318 271 Unallocated corporate items: Share-based compensation expense (97 ) (89 ) Other common expenses (275 ) (239 ) Amortization of acquired technology (2 ) (3 ) Amortization of other acquired intangible assets (1 ) (1 ) Total unallocated corporate items (375 ) (332 ) Total operating loss $ (57 ) $ (61 )

Description of Business and S17

Description of Business and Summary of Significant Accounting Policies (Policies)	3 Months Ended
	Oct. 31, 2017
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 reportable segments. See Note 9, “ Segment Information ,” for more information. 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, 2017 . Results for the three months ended October 31, 2017 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2018
Seasonality	Seasonality
Use of Estimates	Use of 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 and unrecognized compensation expense that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense that is 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 and unrecognized compensation expense that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense that is 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 and the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs 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.
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, 2017 or October 31, 2016 . No customer accounted for 10% or more of gross accounts receivable at October 31, 2017 or July 31, 2017
Accounting Standards Not Yet Adopted	Accounting Standards Not Yet Adopted Goodwill Impairment - In January 2017 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This new standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The standard is effective for fiscal years beginning after December 15, 2019, 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, 2020. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2017-04 on our consolidated financial statements. Business Combinations - In January 2017 the FASB issued ASU 2017-01, “ Business Combinations (Topic 805): Clarifying the Definition of a Business . ” This new standard clarifies the definition of a business in order to allow for the evaluation of whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, 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, 2018. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of ASU 2017-01 on our consolidated financial statements. Statement of Cash Flows - In August 2016 the FASB issued ASU 2016-15, “ Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments.” This new standard will make eight targeted changes to how cash receipts and cash payments are presented and classified in the statement of cash flows. The standard is effective for fiscal years 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. The standard will require adoption on a retrospective basis unless it is impracticable to apply, in which case we would be required to apply the amendments prospectively as of the earliest date practicable. We are currently evaluating the impact of our pending adoption of ASU 2016-15 on our consolidated financial statements. Financial Instruments - In June 2016 the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). ” This new standard requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. The standard is effective for fiscal years beginning after December 15, 2019, 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, 2020. Earlier adoption is permitted in the first quarter of our fiscal year beginning August 1, 2019. We are currently evaluating the impact of our pending adoption of ASU 2016-13 on our consolidated financial statements. Leases - In February 2016 the FASB issued ASU 2016-02, “ Leases (Topic 842). ” This new standard amends a number of aspects of lease accounting, including requiring lessees to recognize operating leases with a term greater than one year on their balance sheet as a right-of-use asset and corresponding lease liability, measured at the present value of the lease payments. The standard is effective for fiscal years beginning after December 15, 2018, 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, 2019. Early adoption is permitted. This standard is required to be adopted using a modified retrospective approach. We are currently evaluating the impact of our pending adoption of ASU 2016-02 on our consolidated financial statements. Revenue Recognition - In May 2014 the FASB issued ASU 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. This new standard supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of the new standard 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. The new standard 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. We plan to adopt Topic 606 utilizing the full retrospective transition method when it becomes effective for us in the first fiscal quarter beginning August 1, 2018. We have completed our preliminary assessment of the new standard and are continuing to assess all potential impacts of the standard. We currently believe the most significant changes will be the timing of revenue recognition related to our QuickBooks desktop solutions and our consumer and professional tax desktop solutions. Under the current standard, we recognize substantially all of the revenue for QuickBooks desktop solutions ratably over the period that enhancements and connected services are provided, which is approximately three years. Under the new standard, we will recognize software license revenue for QuickBooks desktop solutions at the time the license is delivered. Due to the upfront recognition of Quickbooks desktop solutions, upon adoption, we will remove deferred revenue from our liabilities through a cumulative adjustment to retained earnings. We expect the timing of QuickBooks desktop revenue in our Small Business & Self-Employed reporting segment to shift to earlier quarters within each fiscal year as a result of these changes. With respect to our consumer and professional tax desktop solutions, under the current standard, we recognize all revenue related to the desktop solutions as services are provided. Under the new standard, we will recognize revenue for the desktop tax preparation software license and related tax form updates as they are delivered. We will recognize revenue for our electronic filing and connected services as those services are provided. As sales and delivery of desktop tax preparation software solutions are concentrated from November through April, we expect the timing of the related desktop revenue for our Consumer and Strategic Partner reporting segments to shift to earlier quarters within each fiscal year as a result of these changes. Under Topic 606 we do not expect our annual total and reporting segment revenue growth rates to be significantly different as compared to growth rates under the current standard. Accounting for commissions under the new standard will result in the deferral of incremental commission costs for obtaining contracts, which we do not expect to be material.
Fair Value Measurement	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

Description of Business and S18

Description of Business and Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Oct. 31, 2017
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 $ (17 ) $ (30 ) Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 256 258 Shares used in diluted per share amounts: Weighted average common shares outstanding 256 258 Dilutive common equivalent shares from stock options and restricted stock awards — — Dilutive weighted average common shares outstanding 256 258 Basic and diluted net loss per share: Basic net loss per share $ (0.07 ) $ (0.12 ) Diluted net loss per share $ (0.07 ) $ (0.12 ) Shares excluded from computation of diluted net loss per share: Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period 12 12 Weighted average stock options and restricted stock units that would have been excluded from the computation of dilutive common equivalent shares outstanding if net income had been reported in the period due to their anti-dilutive effect 2 4

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	3 Months Ended
	Oct. 31, 2017
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, 2017 July 31, 2017 (In millions) Level 1 Level 2 Level 3 Total Fair Value Level 1 Level 2 Level 3 Total Fair Value Assets: Cash equivalents, primarily time deposits $ 28 $ — $ — $ 28 $ 181 $ — $ — $ 181 Available-for-sale debt securities: Municipal bonds — 55 — 55 — 63 — 63 Corporate notes — 383 — 383 — 382 — 382 U.S. agency securities — 10 — 10 — 3 — 3 Municipal auction rate securities — — 15 15 — — 15 15 Total available-for-sale securities — 448 15 463 — 448 15 463 Total assets measured at fair value on a recurring basis $ 28 $ 448 $ 15 $ 491 $ 181 $ 448 $ 15 $ 644
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, 2017 July 31, 2017 (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 $ 28 $ — $ — $ 28 $ 181 $ — $ — $ 181 Available-for-sale securities: In investments $ — $ 248 $ — $ 248 $ — $ 248 $ — $ 248 In funds held for customers — 200 — 200 — 200 — 200 In long-term investments — — 15 15 — — 15 15 Total available-for-sale securities $ — $ 448 $ 15 $ 463 $ — $ 448 $ 15 $ 463

Cash and Cash Equivalents, In20

Cash and Cash Equivalents, Investments and Funds Held for Customers (Tables)	3 Months Ended
	Oct. 31, 2017
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, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 529 $ 529 $ 529 $ 529 Investments 248 248 247 248 Funds held for customers 319 319 372 372 Long-term investments 31 31 31 31 Total cash and cash equivalents, investments, and funds held for customers $ 1,127 $ 1,127 $ 1,179 $ 1,180
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, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash and cash equivalents $ 648 $ 648 $ 701 $ 701 Available-for-sale debt securities: Municipal bonds 55 55 63 63 Corporate notes 383 383 381 382 U.S. agency securities 10 10 3 3 Municipal auction rate securities 15 15 15 15 Total available-for-sale debt securities 463 463 462 463 Other long-term investments 16 16 16 16 Total cash and cash equivalents, investments, and funds held for customers $ 1,127 $ 1,127 $ 1,179 $ 1,180
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, 2017 July 31, 2017 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 197 $ 197 $ 209 $ 209 Due within two years 162 162 164 164 Due within three years 70 70 59 60 Due after three years 34 34 30 30 Total available-for-sale debt securities $ 463 $ 463 $ 462 $ 463

Current Liabilities (Tables)

Current Liabilities (Tables)	3 Months Ended
	Oct. 31, 2017
Other Liabilities Disclosure [Abstract]
Other current liabilities	Other current liabilities were as follows at the dates indicated: (In millions) October 31, July 31, Executive deferred compensation plan liabilities $ 95 $ 83 Reserve for promotional discounts and rebates 18 19 Reserve for product returns 7 7 Current portion of license fee payable 10 10 Current portion of deferred rent 5 6 Current portion of dividend payable 5 9 Other 43 44 Total other current liabilities $ 183 $ 178

Long-Term Obligations and Com22

Long-Term Obligations and Commitments (Tables)	3 Months Ended
	Oct. 31, 2017
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 $ 48 $ 49 Long-term income tax liabilities 54 53 Total license fee payable 18 18 Total dividend payable 9 13 Long-term deferred income tax liabilities 7 7 Other 15 16 Total long-term obligations 151 156 Less current portion (included in other current liabilities) (23 ) (26 ) Long-term obligations due after one year $ 128 $ 130

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	3 Months Ended
	Oct. 31, 2017
Equity [Abstract]
Total share-based compensation expense	The following table summarizes the total share-based compensation expense that we recorded in operating loss for the periods shown. Three Months Ended (In millions) October 31, October 31, Cost of revenue $ 3 $ 2 Selling and marketing 25 25 Research and development 39 36 General and administrative 30 26 Total share-based compensation expense $ 97 $ 89
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, 2017 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2017 25,164 Options granted — Restricted stock units granted (1) (521 ) Share-based awards canceled/forfeited/expired (1)(2) 1,536 Balance at October 31, 2017 26,179 ____________________________________________________ (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)
Summary of stock option activity	A summary of stock option activity for the three months ended October 31, 2017 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2017 7,488 $ 104.50 Granted — — Exercised (671 ) 80.33 Canceled or expired (109 ) 115.17 Balance at October 31, 2017 6,708 $ 106.74 Exercisable at October 31, 2017 3,262 $ 88.83
Summary of restricted stock unit activity	A summary of restricted stock unit (RSU) activity for the three months ended October 31, 2017 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2017 8,636 $ 98.76 Granted 226 140.80 Vested (681 ) 65.30 Forfeited (568 ) 76.70 Nonvested at October 31, 2017 7,613 $ 104.65

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Oct. 31, 2017
Segment Reporting [Abstract]
Financial results by reportable segment	The following table shows our financial results by reportable segment for the periods indicated. Segment results for fiscal 2017 have been reclassified to conform to the fiscal 2018 segment presentation, as described earlier in this footnote. Three Months Ended (In millions) October 31, October 31, Net revenue: Small Business & Self-Employed $ 694 $ 593 Consumer 78 73 Strategic Partner 114 112 Total net revenue $ 886 $ 778 Operating income (loss): Small Business & Self-Employed $ 301 $ 239 Consumer (55 ) (38 ) Strategic Partner 72 70 Total segment operating income 318 271 Unallocated corporate items: Share-based compensation expense (97 ) (89 ) Other common expenses (275 ) (239 ) Amortization of acquired technology (2 ) (3 ) Amortization of other acquired intangible assets (1 ) (1 ) Total unallocated corporate items (375 ) (332 ) Total operating loss $ (57 ) $ (61 )

Description of Business and S25

Description of Business and Summary of Significant Accounting Policies (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Numerator:
Net loss	$ (17)	$ (30)
Shares used in basic per share amounts:
Weighted average common shares outstanding (in shares)	256	258
Shares used in diluted per share amounts:
Weighted average common shares outstanding (in shares)	256	258
Dilutive common equivalent shares from stock options and restricted stock awards (in shares)	0	0
Dilutive weighted average common shares outstanding (in shares)	256	258
Basic and diluted net loss per share:
Basic net loss per share (in dollars per share)	$ (0.07)	$ (0.12)
Diluted net loss per share (in dollars per share)	$ (0.07)	$ (0.12)
Shares excluded from computation of diluted net loss per share:
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period (in shares)	12	12
Weighted average stock options and restricted stock units that would have been excluded from the computation of dilutive common equivalent shares outstanding if net income had been reported in the period due to their anti-dilutive effect (in shares)	2	4

Fair Value Measurements - Fair

Fair Value Measurements - Fair Value Measurements on Recurring Basis (Details) - Fair value, measurements, recurring - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Estimate of fair value measurement
Assets:
Total cash equivalents	$ 28	$ 181
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	491	644
Estimate of fair value measurement | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities	55	63
Estimate of fair value measurement | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities	383	382
Estimate of fair value measurement | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities	10	3
Estimate of fair value measurement | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities	15	15
Estimate of fair value measurement | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities	463	463
Level 1
Assets:
Total cash equivalents	28	181
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	28	181
Level 1 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 1 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 1 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 1 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 1 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 2
Assets:
Total cash equivalents	0	0
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	448	448
Level 2 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities	55	63
Level 2 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities	383	382
Level 2 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities	10	3
Level 2 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 2 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities	448	448
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
Level 3 | Municipal bonds
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 3 | Corporate notes
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 3 | U.S. agency securities
Available-for-sale debt securities:
Total available-for-sale securities	0	0
Level 3 | Municipal auction rate securities
Available-for-sale debt securities:
Total available-for-sale securities	15	15
Level 3 | Available-for-sale corporate equity securities
Available-for-sale debt securities:
Total available-for-sale securities	$ 15	$ 15

Fair Value Measurements - Balan

Fair Value Measurements - Balance Sheet Classification (Details ) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	$ 529	$ 529
Fair value, measurements, recurring | Estimate of fair value measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	28	181
Total available-for-sale securities	463	463
Fair value, measurements, recurring | Estimate of fair value measurement | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	28	181
Fair value, measurements, recurring | Estimate of fair value measurement | Available for sale debt securities in investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	248	248
Fair value, measurements, recurring | Estimate of fair value measurement | Available for sale debt securities in funds held for customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	200	200
Fair value, measurements, recurring | Estimate of fair value measurement | Available for sale debt securities in long term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	15	15
Fair value, measurements, recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	28	181
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 1 | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	28	181
Fair value, measurements, recurring | Level 1 | Available for sale debt securities in investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 1 | Available for sale debt securities in funds held for customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 1 | Available for sale debt securities in long term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Total available-for-sale securities	448	448
Fair value, measurements, recurring | Level 2 | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair value, measurements, recurring | Level 2 | Available for sale debt securities in investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	248	248
Fair value, measurements, recurring | Level 2 | Available for sale debt securities in funds held for customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	200	200
Fair value, measurements, recurring | Level 2 | Available for sale debt securities in long term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Total available-for-sale securities	15	15
Fair value, measurements, recurring | Level 3 | Cash and cash equivalents
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total cash equivalents	0	0
Fair value, measurements, recurring | Level 3 | Available for sale debt securities in investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 3 | Available for sale debt securities in funds held for customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	0	0
Fair value, measurements, recurring | Level 3 | Available for sale debt securities in long term investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total available-for-sale securities	$ 15	$ 15

Cash and Cash Equivalents, In28

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classification on Balance Sheets (Details) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017	Oct. 31, 2016	Jul. 31, 2016
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, amortized cost	$ 529	$ 529	$ 360	$ 638
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	1,127	1,179
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	1,127	1,180
Cash and cash equivalents
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, amortized cost	529	529
Cash and cash equivalents, fair value disclosure	529	529
Investments
Cash and Cash Equivalents Items [Line Items]
Investments and funds, amortized cost	248	247
Investments and funds, fair value	248	248
Funds held for customers
Cash and Cash Equivalents Items [Line Items]
Investments and funds, amortized cost	319	372
Investments and funds, fair value	319	372
Long-term investments
Cash and Cash Equivalents Items [Line Items]
Investments and funds, amortized cost	31	31
Investments and funds, fair value	$ 31	$ 31

Cash and Cash Equivalents, In29

Cash and Cash Equivalents, Investments and Funds Held for Customers - Type of issue (Details) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017	Oct. 31, 2016	Jul. 31, 2016
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, amortized cost	$ 529	$ 529	$ 360	$ 638
Available-for-sale securities:
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	1,127	1,179
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	1,127	1,180
Total cash and cash equivalents
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, amortized cost	648	701
Cash and cash equivalents, fair value disclosure	648	701
Municipal bonds
Available-for-sale securities:
Investments and funds, amortized cost	55	63
Investments and funds, fair value	55	63
Corporate notes
Available-for-sale securities:
Investments and funds, amortized cost	383	381
Investments and funds, fair value	383	382
U.S. agency securities
Available-for-sale securities:
Investments and funds, amortized cost	10	3
Investments and funds, fair value	10	3
Municipal auction rate securities
Available-for-sale securities:
Investments and funds, amortized cost	15	15
Investments and funds, fair value	15	15
Total available-for-sale debt securities
Available-for-sale securities:
Investments and funds, amortized cost	463	462
Investments and funds, fair value	463	463
Other long-term investments
Available-for-sale securities:
Other long-term investments, amortized cost	16	16
Investments and funds, fair value	$ 16	$ 16

Cash and Cash Equivalents, In30

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classified by the stated maturity date (Details) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Available-for-sale Securities, Debt Maturities
Due within one year, amortized cost	$ 197	$ 209
Due within one year, fair value	197	209
Due within two years, amortized cost	162	164
Due within two years, fair value	162	164
Due within three years, amortized cost	70	59
Due within three years, fair value	70	60
Due after three years, amortized cost	34	30
Due after three years, fair value	34	30
Total available-for-sale debt securities, amortized cost	463	462
Total available-for-sale debt securities, fair value	$ 463	$ 463

Current Liabilities - Additiona

Current Liabilities - Additional Information (Details)	Feb. 01, 2016USD ($)extension	Oct. 31, 2017USD ($)	Oct. 31, 2016USD ($)	Jul. 31, 2017USD ($)
Debt Instrument [Line Items]
Short-term debt		$ 450,000,000		$ 50,000,000
Proceeds from borrowings under revolving credit facility		400,000,000	$ 100,000,000
Term Loan
Debt Instrument [Line Items]
Interest Paid		3,000,000	2,000,000
February 1, 2016 Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term	5 years
Master credit agreement	$ 1,500,000,000
February 1, 2016 Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Proceeds from borrowings under revolving credit facility		400,000,000
February 1, 2016 Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Debt to EBITDA ratio (not greater than)	3.25
EBITDA to interest payable ratio (not less than)	3
February 1, 2016 Credit Agreement | Line of Credit | Revolving Credit Facility
Debt Instrument [Line Items]
Unsecured revolving credit facility	$ 1,000,000,000
Revolving credit facility, increase limit	$ 250,000,000
Unsecured revolving credit facility extension | extension	2
Fair value of amount outstanding		400,000,000
Interest Paid		1,000,000	$ 0
February 1, 2016 Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.00%
February 1, 2016 Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.50%
February 1, 2016 Credit Agreement | Line of Credit | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.90%
February 1, 2016 Credit Agreement | Line of Credit | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.50%
February 1, 2016 Credit Agreement | Line of Credit | Term Loan
Debt Instrument [Line Items]
Unsecured term loan	$ 500,000,000	475,000,000
Short-term debt		$ 50,000,000
February 1, 2016 Credit Agreement | Line of Credit | Term Loan | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
February 1, 2016 Credit Agreement | Line of Credit | Term Loan | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.875%
February 1, 2016 Credit Agreement | Line of Credit | Term Loan | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
February 1, 2016 Credit Agreement | Line of Credit | Term Loan | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.875%

Current Liabilities - Other Cur

Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Other Liabilities, Current [Abstract]
Executive deferred compensation plan liabilities	$ 95	$ 83
Reserve for promotional discounts and rebates	18	19
Reserve for product returns	7	7
Current portion of license fee payable	10	10
Current portion of deferred rent	5	6
Current portion of dividend payable	5	9
Other	43	44
Total other current liabilities	$ 183	$ 178

Long-Term Obligations and Com33

Long-Term Obligations and Commitments - Additional Information (Details) - USD ($)	Feb. 01, 2016	Oct. 31, 2017	Oct. 31, 2016	Sep. 13, 2017	Jul. 31, 2017
Debt Instrument [Line Items]
Short-term debt		$ 450,000,000			$ 50,000,000
Minimum purchase commitment				$ 450,000,000
Term Loan
Debt Instrument [Line Items]
Interest Paid		3,000,000	$ 2,000,000
February 1, 2016 Credit Agreement
Debt Instrument [Line Items]
Debt instrument, term	5 years
Master credit agreement	$ 1,500,000,000
February 1, 2016 Credit Agreement | Line of Credit
Debt Instrument [Line Items]
Periodic payment, principal, percent	2.50%
February 1, 2016 Credit Agreement | Term Loan | Line of Credit
Debt Instrument [Line Items]
Unsecured term loan	$ 500,000,000	475,000,000
Term Loan, increase limit	$ 500,000,000
Short-term debt		$ 50,000,000
February 1, 2016 Credit Agreement | Term Loan | Line of Credit | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
February 1, 2016 Credit Agreement | Term Loan | Line of Credit | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.875%
February 1, 2016 Credit Agreement | Term Loan | Line of Credit | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
February 1, 2016 Credit Agreement | Term Loan | Line of Credit | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.875%

Long-Term Obligations and Com34

Long-Term Obligations and Commitments - Other Long-Term Obligations (Details) - USD ($) $ in Millions	Oct. 31, 2017	Jul. 31, 2017
Long-Term Obligations [Abstract]
Total deferred rent	$ 48	$ 49
Long-term income tax liabilities	54	53
Total license fee payable	18	18
Total dividend payable	9	13
Long-term deferred income tax liabilities	7	7
Other	15	16
Total long-term obligations	151	156
Less current portion (included in other current liabilities)	(23)	(26)
Long-term obligations due after one year	$ 128	$ 130

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016	Jul. 31, 2017
Income Tax Disclosure [Abstract]
Excess tax benefits for provision for income taxes	$ 25	$ 19
Effective tax rate	72.00%	58.00%
Effective income tax rate reconciliation, excluding discrete tax benefits, percent	33.00%	34.00%
Federal statutory income tax rate	35.00%	35.00%
Total amount of unrecognized tax benefits			$ 61
Unrecognized tax benefits, net of related deferred tax assets			38
Favorable net impact to income tax expense due to recognition of tax benefits			$ 38

Stockholders' Equity - Stock Re

Stockholders' Equity - Stock Repurchase Programs, Treasury Shares, and Dividends on Common Stock(Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	1 Months Ended	3 Months Ended
	Nov. 20, 2017	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchased (in shares)		1.2
Common stock repurchased, value		$ 170	$ 192
Amounts due for share repurchases		$ 2
Common stock, dividends, per share, cash paid (in dollars per share)		$ 0.39
Payments of dividends		$ 105
Cash dividends declared per common share (in dollars per share)		$ 0.39	$ 0.34
Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.39
New Program
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock repurchase program, remaining authorized repurchase amount		$ 1,400

Stockholders' Equity - Share-Ba

Stockholders' Equity - Share-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended
	Oct. 31, 2017	Oct. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 97	$ 89
Software and Software Development Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized computer software, gross	1	2
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	3	2
Selling and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	25	25
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	39	36
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Allocated share-based compensation expense	$ 30	$ 26

Stockholders' Equity - Share-38

Stockholders' Equity - Share-Based Awards Available for Grant (Details)	3 Months Ended
	Oct. 31, 2017shares
Shares Available for Grant
Shares available for grant, beginning balance (in shares)	25,164,000
Options granted (in shares)	0
Restricted stock units granted (in shares)	(521,000)	[1]
Share-based awards canceled/forfeited/expired (in shares)	1,536,000	[1],[2]
Shares available for grant, ending balance (in shares)	26,179,000
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
[2]	Stock options and RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs 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

Stockholders' Equity - Stock-Op

Stockholders' Equity - Stock-Option Activity and Related Share-Based Compensation Expense (Details) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Oct. 31, 2017USD ($)$ / sharesshares
Number of Shares
Options outstanding, beginning balance (in shares) | shares	7,488
Options granted, number of shares (in shares) | shares	0
Options exercised, number of shares (in shares) | shares	(671)
Options canceled or expired, number of shares (in shares) | shares	(109)
Options outstanding, ending balance (in shares) | shares	6,708
Weighted Average Exercise Price Per Share
Weighted average exercise price per share, Beginning Balance (in dollars per share) | $ / shares	$ 104.50
Options granted, weighted average exercise price per share (in dollars per share) | $ / shares	0
Options exercised, weighted average exercise price per share (in dollars per share) | $ / shares	80.33
Options canceled or expired, weighted average exercise price per share (in dollars per share) | $ / shares	115.17
Weighted average exercise price per share, Ending Balance (in dollars per share) | $ / shares	$ 106.74
Exercisable (in shares) | shares	3,262
Exercisable, Weighted average exercise price per share (in dollars per share) | $ / shares	$ 88.83
Employee Stock Option
Weighted Average Exercise Price Per Share
Unrecognized compensation cost related to non-vested share based compensation expense | $	$ 73
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years	2 years 2 months 12 days

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit Activity and Related Share-Based Compensation Expense (Details) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Oct. 31, 2017USD ($)$ / sharesshares
Number of Shares
Nonvested at beginning of period (in shares) | shares	8,636
Granted, Number of shares (in shares) | shares	226
Vested, Number of Shares (in shares) | shares	(681)
Forfeited, Number of Shares (in shares) | shares	(568)
Nonvested at end of period (in shares) | shares	7,613
Weighted Average Grant Date Fair Value
Nonvested, Weighted Average Grant Date Fair Value, at beginning of period (in dollars per shares) | $ / shares	$ 98.76
Granted, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	140.80
Vested, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	65.30
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	76.70
Nonvested, Weighted Average Grant Date Fair Value, at end of period (in dollars per shares) | $ / shares	$ 104.65
Restricted Stock Units (RSUs) [Member]
Weighted Average Grant Date Fair Value
Unrecognized compensation cost related to non-vested RSUs | $	$ 626
Weighted average vesting period, in years	2 years 2 months 12 days

Segment Information (Details)

Segment Information (Details) $ in Millions	3 Months Ended
	Oct. 31, 2017USD ($)segment	Oct. 31, 2016USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment	3
International total net revenue as a percentage of total (less than)	5.00%	5.00%
Financial results by reportable segment
Total net revenue	$ 886	$ 778
Total operating loss	(57)	(61)
Unallocated corporate items:
Share-based compensation expense	(97)	(89)
Amortization of other acquired intangible assets	(1)	(1)
Operating Segments
Financial results by reportable segment
Total operating loss	318	271
Corporate, Non-Segment
Financial results by reportable segment
Total operating loss	(375)	(332)
Unallocated corporate items:
Share-based compensation expense	(97)	(89)
Other common expenses	(275)	(239)
Corporate, Non-Segment | Technology-Based Intangible Assets
Unallocated corporate items:
Amortization of other acquired intangible assets	(2)	(3)
Corporate, Non-Segment | Other Intangible Assets
Unallocated corporate items:
Amortization of other acquired intangible assets	(1)	(1)
Small Business & Self-Employed
Financial results by reportable segment
Total net revenue	694	593
Small Business & Self-Employed | Operating Segments
Financial results by reportable segment
Total operating loss	301	239
Consumer
Financial results by reportable segment
Total net revenue	78	73
Consumer | Operating Segments
Financial results by reportable segment
Total operating loss	(55)	(38)
Strategic Partner
Financial results by reportable segment
Total net revenue	114	112
Strategic Partner | Operating Segments
Financial results by reportable segment
Total operating loss	$ 72	$ 70