Intuit (INTU) 10-Q 24 Feb 20 2020 Q2 Quarterly report Financial data

Cover Page

Cover Page - shares	6 Months Ended
	Jan. 31, 2020	Feb. 18, 2020
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jan. 31, 2020
Document Transition Report	false
Entity File Number	0-21180
Entity Registrant Name	INTUIT INC
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	77-0034661
Entity Address, Address Line One	2700 Coast Avenue
Entity Address, City or Town	Mountain View
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	94043
City Area Code	650
Local Phone Number	944-6000
Title of 12(b) Security	Common Stock, $0.01 par value
Trading Symbol	INTU
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		260,489,463
Entity Central Index Key	0000896878
Amendement Flag	false
Current Fiscal Year End Date	--07-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Net revenue:
Revenues	$ 1,696	$ 1,502	$ 2,861	$ 2,518
Cost of revenue:
Amortization of acquired technology	6	5	12	10
Selling and marketing	593	548	976	894
Research and development	333	295	667	589
General and administrative	159	140	305	277
Amortization of other acquired intangible assets	1	1	3	3
Total costs and expenses	1,426	1,269	2,581	2,295
Operating income	270	233	280	223
Interest expense	(3)	(4)	(5)	(8)
Interest and other income, net	15	6	29	6
Income before income taxes	282	235	304	221
Income tax provision (benefit)	(42)	(46)	(7)	2
Net income	$ 240	$ 189	$ 297	$ 223
Earnings Per Share, Basic
Basic net income per share (in dollars per share)	$ 0.92	$ 0.73	$ 1.14	$ 0.86
Shares used in basic per share calculations (in shares)	261	260	261	260
Earnings Per Share, Diluted
Diluted net income per share (in dollars per share)	$ 0.91	$ 0.72	$ 1.13	$ 0.84
Shares used in diluted per share calculations (in shares)	264	264	264	264
Dividends
Cash dividends declared per common share (in dollars per share)	$ 0.53	$ 0.47	$ 1.06	$ 0.94
Product
Net revenue:
Revenues	$ 545	$ 533	$ 898	$ 880
Cost of revenue:
Cost of revenue	24	26	41	41
Service and other
Net revenue:
Revenues	1,151	969	1,963	1,638
Cost of revenue:
Cost of revenue	$ 310	$ 254	$ 577	$ 481

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 240	$ 189	$ 297	$ 223
Other comprehensive income (loss), net of income taxes:
Unrealized gain on available-for-sale debt securities	1	1	2	1
Foreign currency translation gain (loss)	(1)	3	(1)	(1)
Total other comprehensive income, net	0	4	1	0
Comprehensive income	$ 240	$ 193	$ 298	$ 223

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Current assets:
Cash and cash equivalents	$ 1,641	$ 2,116
Investments	625	624
Accounts receivable, net	603	87
Income taxes receivable	52	65
Prepaid expenses and other current assets	308	266
Current assets before funds held for customers	3,229	3,158
Funds held for customers	461	436
Total current assets	3,690	3,594
Long-term investments	13	13
Property and equipment, net	758	780
Operating lease right-of-use assets	297
Goodwill	1,655	1,655
Acquired intangible assets, net	41	54
Other assets	247	187
Total assets	6,701	6,283
Current liabilities:
Short-term debt	38	50
Accounts payable	455	274
Accrued compensation and related liabilities	261	385
Deferred revenue	671	619
Other current liabilities	318	202
Current liabilities before customer fund deposits	1,743	1,530
Customer fund deposits	461	436
Total current liabilities	2,204	1,966
Long-term debt	373	386
Long-term deferred income tax liabilities	55	37
Operating lease liabilities	286
Long-term obligations due after one year	56	145
Total liabilities	2,974	2,534
Commitments and contingencies
Stockholders’ equity:
Preferred stock	0	0
Common stock and additional paid-in capital	6,014	5,775
Treasury stock, at cost	(11,889)	(11,611)
Accumulated other comprehensive loss	(35)	(36)
Retained earnings	9,637	9,621
Total stockholders’ equity	3,727	3,749
Total liabilities and stockholders’ equity	$ 6,701	$ 6,283

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Millions	Total	Shares of Common Stock	Common Stock and Additional Paid-In Capital	Treasury Stock	Accumulated Other Comprehensive Loss	Retained Earnings
Beginning Balance (in shares) at Jul. 31, 2018		258,616
Beginning Balance at Jul. 31, 2018	$ 2,816		$ 5,338	$ (11,050)	$ (36)	$ 8,564
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	223				0	223
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		1,836
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	78		78
Stock repurchases under stock repurchase programs (in shares)		(1,342)
Stock repurchases under stock repurchase programs	(278)			(278)
Dividends and dividend rights declared	(250)					(250)
Share-based compensation expense	207		207
Ending Balance (in shares) at Jan. 31, 2019		259,110
Ending Balance at Jan. 31, 2019	2,796		5,623	(11,328)	(36)	8,537
Beginning Balance (in shares) at Oct. 31, 2018		259,571
Beginning Balance at Oct. 31, 2018	2,782		5,501	(11,151)	(40)	8,472
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	193				4	189
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		414
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	21		21
Stock repurchases under stock repurchase programs (in shares)		(875)
Stock repurchases under stock repurchase programs	(177)			(177)
Dividends and dividend rights declared	(124)					(124)
Share-based compensation expense	101		101
Ending Balance (in shares) at Jan. 31, 2019		259,110
Ending Balance at Jan. 31, 2019	2,796		5,623	(11,328)	(36)	8,537
Beginning Balance (in shares) at Jul. 31, 2019		260,180
Beginning Balance at Jul. 31, 2019	3,749		5,775	(11,611)	(36)	9,621
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	298				1	297
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		1,376
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	$ 19		19
Stock repurchases under stock repurchase programs (in shares)	(1,000)	(1,039)
Stock repurchases under stock repurchase programs	$ (278)			(278)
Dividends and dividend rights declared	(281)					(281)
Share-based compensation expense	220		220
Ending Balance (in shares) at Jan. 31, 2020		260,517
Ending Balance at Jan. 31, 2020	3,727		6,014	(11,889)	(35)	9,637
Beginning Balance (in shares) at Oct. 31, 2019		260,355
Beginning Balance at Oct. 31, 2019	3,633		5,881	(11,750)	(35)	9,537
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive income	240				0	240
Issuance of stock under employee stock plans, net of shares withheld for employee taxes (in shares)		686
Issuance of stock under employee stock plans, net of shares withheld for employee taxes	25		25
Stock repurchases under stock repurchase programs (in shares)		(524)
Stock repurchases under stock repurchase programs	(139)			(139)
Dividends and dividend rights declared	(140)					(140)
Share-based compensation expense	108		108
Ending Balance (in shares) at Jan. 31, 2020		260,517
Ending Balance at Jan. 31, 2020	$ 3,727		$ 6,014	$ (11,889)	$ (35)	$ 9,637

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Statement of Stockholders' Equity [Abstract]
Dividends declared (in dollars per share)	$ 0.53	$ 0.47	$ 1.06	$ 0.94

Condensed Consolidated Statem_5

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019
Cash flows from operating activities:
Net income	$ 297	$ 223
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	98	99
Amortization of acquired intangible assets	16	13
Non-cash operating lease cost	32
Share-based compensation expense	218	205
Deferred income taxes	(30)	(21)
Other	4	6
Total adjustments	338	302
Changes in operating assets and liabilities:
Accounts receivable	(516)	(456)
Income taxes receivable	13	(1)
Prepaid expenses and other assets	(82)	(54)
Accounts payable	175	210
Accrued compensation and related liabilities	(121)	(146)
Deferred revenue	51	58
Operating lease liabilities	(28)
Other liabilities	63	62
Total changes in operating assets and liabilities	(445)	(327)
Net cash provided by operating activities	190	198
Cash flows from investing activities:
Purchases of corporate and customer fund investments	(357)	(153)
Sales of corporate and customer fund investments	73	42
Maturities of corporate and customer fund investments	287	106
Purchases of property and equipment	(68)	(80)
Originations of term loans to small businesses	(166)	(152)
Principal repayments of term loans from small businesses	155	116
Other	(20)	13
Net cash used in investing activities	(96)	(108)
Cash flows from financing activities:
Repayment of debt	(25)	(25)
Proceeds from issuance of stock under employee stock plans	121	154
Payments for employee taxes withheld upon vesting of restricted stock units	(104)	(76)
Cash paid for purchases of treasury stock	(278)	(274)
Dividends and dividend rights paid	(280)	(251)
Net change in customer fund deposits	25	67
Other	(1)	(5)
Net cash used in financing activities	(542)	(410)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents	(2)	(2)
Net decrease in cash, cash equivalents, restricted cash, and restricted cash equivalents	(450)	(322)
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period	2,352	1,631
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	1,902	1,309
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$ 1,902	$ 1,309

Description of Business and Sum

Description of Business and Summary of Significant Accounting Policies	6 Months Ended
	Jan. 31, 2020
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 serve small business customers. Our flagship brands, QuickBooks, TurboTax and Mint, help customers run their small businesses, pay employees and send invoices, 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. Effective August 1, 2019, we adopted the requirements of Accounting Standards Update (ASU) 2016-02, "Leases (Topic 842)" (ASC 842) using the modified retrospective approach, under which financial results reported in prior periods were not restated. As a result, the condensed consolidated balance sheet as of January 31, 2020 is not comparable with that as of July 31, 2019 . Funds held for customers represent cash held on behalf of our customers that is invested in cash and cash equivalents and investment-grade available-for-sale debt securities. The purchases, sales and maturities of the investments for our funds held for customers are presented in investing activities in the condensed consolidated statements of cash flows. Customer fund deposits consist of amounts we owe on behalf of our customers. We present the net change in customer fund deposits in financing activities in the condensed consolidated statements of cash flows. For the six months ended January 31, 2019 , we reclassified $67 million from investing activities to financing activities to conform to the current presentation, resulting in a decrease in net cash used in financing activities with a corresponding offset to net cash used in investing activities. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . Results for the six months ended January 31, 2020 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2020 or any other future period. Seasonality Our Consumer and Strategic Partner offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax preparation products and services are heavily concentrated in the period from November through April. This seasonal pattern results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively. Significant Accounting Policies We describe our significant accounting policies in Note 1 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . See the discussion of changes to our lease accounting policy for the adoption of ASC 842, the new leases standard, below. There have been no other changes to our significant accounting policies during the first six months of fiscal 2020 . Leases Our leases are primarily operating leases for office facilities. We do not have significant finance leases. We determine if an arrangement is a lease and classify it as either a finance or operating lease at lease inception. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities, and operating lease liabilities on our condensed consolidated balance sheets. Operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. Our leases generally do not have a readily determinable implicit rate, therefore we use our incremental borrowing rate at the commencement date in determining the present value of future payments. Our incremental borrowing rate is determined based on a yield curve derived from publicly traded bond offerings for companies with similar credit ratings to us. Our lease terms may include options to purchase, extend or terminate the lease when it is reasonably certain that we will exercise that option. We account for the lease and non-lease components as a single lease component. We measure ROU assets based on the corresponding lease liabilities adjusted for any initial direct costs and prepaid lease payments made to the lessor before or at the commencement date, net of lease incentives. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the calculation of the ROU asset and lease liability and are recognized as lease expense is incurred. Our variable lease payments generally relate to amounts paid to lessors for common area maintenance under our real estate leases. Our subleases generally do not relieve us of our primary obligations under the corresponding head lease. As a result, we account for the head lease based on the original assessment at inception. We determine if the sublease arrangement is either a sales-type, direct financing, or operating lease at inception. If the total remaining lease cost on the head lease for the term of the sublease is greater than the anticipated sublease income, the ROU asset is assessed for impairment. Our subleases are generally operating leases and we recognize sublease income on a straight-line basis over the sublease term. Use of Estimates In preparing our condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain judgments, estimates, and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use judgments and estimates in determining how revenue should be recognized. These judgments and estimates include identifying performance obligations, determining if the performance obligations are distinct, determining the standalone sales price (SSP) and timing of revenue recognition for each distinct performance obligation, and estimating variable consideration to be included in the transaction price. We use estimates in determining the collectibility of accounts receivable and notes receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the discount rate used to calculate lease liabilities, 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 income per share for the periods indicated. Three Months Ended Six Months Ended (In millions, except per share amounts) January 31, January 31, January 31, January 31, Numerator: Net income $ 240 $ 189 $ 297 $ 223 Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 261 260 261 260 Shares used in diluted per share amounts: Weighted average common shares outstanding 261 260 261 260 Dilutive common equivalent shares from stock options and restricted stock awards 3 4 3 4 Dilutive weighted average common shares outstanding 264 264 264 264 Basic and diluted net income per share: Basic net income per share $ 0.92 $ 0.73 $ 1.14 $ 0.86 Diluted net income per share $ 0.91 $ 0.72 $ 1.13 $ 0.84 Shares excluded from diluted net income per share: Weighted average stock options and restricted stock units that have been excluded from dilutive common equivalent shares outstanding due to their anti-dilutive effect — 1 — 1 Deferred Revenue Generally, we receive payment at the time we enter into a contract with a customer. We record deferred revenue when we have entered into a contract with a customer and cash payments are received or due prior to transfer of control or satisfaction of the related performance obligation. During the three and six months ended January 31, 2020 , we recognized revenue of $154 million and $509 million , respectively, that was included in deferred revenue at July 31, 2019 . During the three and six months ended January 31, 2019 , we recognized revenue of $149 million and $476 million , respectively, that was included in deferred revenue at July 31, 2018 . Our performance obligations are generally satisfied within 12 months of the initial contract date. As of January 31, 2020 and July 31, 2019 , the deferred revenue balance related to performance obligations that will be satisfied after 12 months was $4 million and $4 million , respectively, and is included in other long-term obligations on our condensed consolidated balance sheets. Notes Receivable and Allowances for Loan Losses Notes receivable consist of term loans to small businesses and are included in prepaid expenses and other current assets on our condensed consolidated balance sheets. As of January 31, 2020 and July 31, 2019 , the notes receivable balance was $103 million and $95 million , respectively, and the allowances for loan losses were not significant. The term loans are not secured and are recorded at amortized cost, net of allowances for loan losses. We maintain an allowance for loan losses to reserve for potentially uncollectible notes receivable. We evaluate the creditworthiness of our loan portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk and characteristics and apply a loss rate at the time of loan origination. The loss rate and underlying model are updated periodically to reflect actual loan performance and changes in assumptions. We make judgments about the known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. When we determine that amounts are uncollectible, we write them off against the allowance. Concentration of Credit Risk and Significant Customers No customer accounted for 10% or more of total net revenue in the three or six months ended January 31, 2020 or January 31, 2019 . Due to the seasonality of our consumer tax offerings, one large retailer accounted for 11% of gross accounts receivable at January 31, 2020 . No customer accounted for 10% or more of gross accounts receivable at July 31, 2019 . Accounting Standards Recently Adopted Leases - In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) ”. This 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. We adopted this standard in the first quarter of our fiscal year beginning August 1, 2019 using the modified retrospective approach, under which financial results reported in prior periods were not adjusted. We elected certain practical expedients, including the relief package practical expedient which among other things allowed us to carry forward the historical lease classifications. We also elected the practical expedient to combine lease and non-lease components for all asset classes. The adoption of ASC 842 on August 1, 2019 resulted in the recognition of ROU assets and operating lease liabilities of $319 million and $361 million , respectively, related to our operating leases. Adoption of the standard also resulted in the elimination of deferred rent liabilities of $47 million and prepaid rent of $5 million . Adoption did not result in any cumulative-effect adjustments to retained earnings, and there was no material impact to our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. Accounting Standards Not Yet Adopted Internal-Use Software - In August 2018 the FASB issued Accounting Standards Update (ASU) 2018-15, “ Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. 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 2018-15 on our condensed consolidated financial statements. Goodwill Impairment - In January 2017 the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This 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 condensed consolidated financial statements. Financial Instruments - In June 2016 the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). ” This 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 condensed consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jan. 31, 2020
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. January 31, 2020 July 31, 2019 (In millions) Level 1 Level 2 Total Fair Value Level 1 Level 2 Total Fair Value Assets: Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds $ 1,222 $ — $ 1,222 $ 1,647 $ — $ 1,647 Available-for-sale debt securities: Municipal bonds — 1 1 — 5 5 Corporate notes — 794 794 — 800 800 U.S. agency securities — 30 30 — 19 19 Total available-for-sale debt securities — 825 825 — 824 824 Total assets measured at fair value on a recurring basis $ 1,222 $ 825 $ 2,047 $ 1,647 $ 824 $ 2,471 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. January 31, 2020 July 31, 2019 (In millions) Level 1 Level 2 Total Fair Value Level 1 Level 2 Total Fair Value Cash equivalents: In cash and cash equivalents $ 1,173 $ — $ 1,173 $ 1,647 $ — $ 1,647 In funds held for customers 49 — 49 — — — Total cash equivalents $ 1,222 $ — $ 1,222 $ 1,647 $ — $ 1,647 Available-for-sale debt securities: In investments $ — $ 625 $ 625 $ — $ 624 $ 624 In funds held for customers — 200 200 — 200 200 Total available-for-sale debt securities $ — $ 825 $ 825 $ — $ 824 $ 824 We value our Level 1 assets, consisting primarily of time deposits, savings deposit accounts, and money market funds using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes, and U.S. agency securities. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Our fair value processes include controls that are designed to ensure that we record appropriate fair values for our Level 2 investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of pricing sources and models, review of key model inputs, analysis of period-over-period price fluctuations, and independent recalculation of prices where appropriate. There were no transfers between Level 1 and Level 2 of the fair value hierarchy during the six months ended January 31, 2020 .

Cash and Cash Equivalents, Inve

Cash and Cash Equivalents, Investments, and Funds Held for Customers	6 Months Ended
	Jan. 31, 2020
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. In all periods presented, cash equivalents consist primarily of time deposits, savings deposit accounts, and money market funds. Investments consist primarily of investment-grade available-for-sale debt securities. Funds held for customers represent cash held on behalf of our customers that is invested in cash and cash equivalents and investment-grade available-for-sale securities, restricted for use solely for the purpose of satisfying amounts we owe on behalf of our customers. 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. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on condensed consolidated balance sheets: Cash and cash equivalents $ 1,641 $ 1,641 $ 2,116 $ 2,116 Investments 621 625 622 624 Funds held for customers 461 461 436 436 Long-term investments 13 13 13 13 Total cash and cash equivalents, investments, and funds held for customers $ 2,736 $ 2,740 $ 3,187 $ 3,189 The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 1,902 $ 1,902 $ 2,352 $ 2,352 Available-for-sale debt securities: Municipal bonds 1 1 5 5 Corporate notes 790 794 798 800 U.S. agency securities 30 30 19 19 Total available-for-sale debt securities 821 825 822 824 Other long-term investments 13 13 13 13 Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments $ 2,736 $ 2,740 $ 3,187 $ 3,189 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 on our condensed consolidated statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three and six months ended January 31, 2020 and January 31, 2019 were no t 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 condensed consolidated balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at January 31, 2020 and July 31, 2019 were no t 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 January 31, 2020 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at January 31, 2020 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, included in investments and funds held for customers, classified by the stated maturity date of the security at the dates indicated. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 397 $ 397 $ 415 $ 416 Due within two years 216 218 208 208 Due within three years 177 178 163 164 Due after three years 31 32 36 36 Total available-for-sale debt securities $ 821 $ 825 $ 822 $ 824 The following table summarizes our funds held for customers by investment category at the dates indicated. January 31, 2020 July 31, 2019 (In millions) Restricted cash and restricted cash equivalents $ 261 $ 236 Restricted available-for-sale debt securities 200 200 Total funds held for customers $ 461 $ 436 January 31, 2019 July 31, 2018 (In millions) Restricted cash and restricted cash equivalents $ 234 $ 167 Restricted available-for-sale debt securities 200 200 Total funds held for customers $ 434 $ 367

Current Liabilities

Current Liabilities	6 Months Ended
	Jan. 31, 2020
Other Liabilities Disclosure [Abstract]
Current Liabilities	4. Current Liabilities Short-Term Debt On May 2, 2019 we entered into an amended and restated credit agreement with certain institutional lenders with an aggregate principal amount of $1.4 billion , including a $400 million unsecured term loan that matures on February 1, 2021 and a $1 billion unsecured revolving credit facility that matures on May 2, 2024. This agreement amended and restated our prior unsecured revolving credit facility dated February 1, 2016. At January 31, 2020 , $363 million was outstanding under the term loan, of which $38 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 amended and restated credit agreement we entered into on May 2, 2019 includes a $1 billion unsecured revolving credit facility that will expire on May 2, 2024. Under this agreement we may, subject to certain customary conditions, on one or more occasions increase commitments under the unsecured 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 unsecured 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 0.1% or the London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.69% to 1.1% . Actual margins under either election will be based on our senior debt credit ratings. The amended and restated 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. As of January 31, 2020 we were compliant with all required covenants. At January 31, 2020 no amounts were outstanding under this unsecured revolving credit facility. We paid no interest on the unsecured revolving credit facility during both the six months ended January 31, 2020 and 2019 . Other Current Liabilities Other current liabilities were as follows at the dates indicated: (In millions) January 31, July 31, Executive deferred compensation plan liabilities $ 121 $ 108 Current portion of operating lease liabilities 57 — Reserve for promotional discounts and rebates 29 11 Reserve for returns and credits 52 24 Current portion of deferred rent — 6 Current portion of dividend payable 8 7 Other 51 46 Total other current liabilities $ 318 $ 202 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,” for more information.

Long-Term Obligations and Commi

Long-Term Obligations and Commitments	6 Months Ended
	Jan. 31, 2020
Debt Disclosure [Abstract]
Long-Term Obligations and Commitments	5. Long-Term Obligations and Commitments Long-Term Debt On May 2, 2019 we entered into an amended and restated credit agreement with certain institutional lenders for a credit facility with an aggregate principal amount of $1.4 billion , which includes a $400 million unsecured term loan. This agreement amended and restated our prior unsecured revolving credit facility dated February 1, 2016. Under this 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 $400 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 0.0% to 0.125% or LIBOR plus a margin that ranges from 0.625% to 1.125% . Actual margins under either election will be based on our senior debt credit ratings. The amended and restated 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 of $12.5 million through October 31, 2020, with the balance payable on February 1, 2021. At January 31, 2020 , $363 million was outstanding under the term loan, of which $38 million was classified as short-term debt. The carrying value of the term loan approximates its fair value. Interest on the term loan is payable monthly. We paid $6 million for interest on the term loan during the six months ended January 31, 2020 and $7 million during the six months ended January 31, 2019 . Secured Revolving Credit Facility On February 19, 2019, a subsidiary of Intuit entered into a $300 million secured revolving credit facility with a lender. The revolving credit facility is secured by cash and receivables of the subsidiary and is non-recourse to Intuit Inc. Advances under this secured revolving credit facility are used to fund a portion of our loans to qualified small businesses. The secured revolving credit facility is available for use for a term of two years and accrues interest at LIBOR plus 2.39% . Unused portions of the credit facility accrue interest at a rate of 0.50% . Outstanding advances mature on August 19, 2021 and payments made prior to February 19, 2020 are subject to a 1% prepayment fee. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of January 31, 2020 we were compliant with all required covenants. At January 31, 2020 , $48 million was outstanding under this facility, with a weighted-average interest rate of 7.24% , which includes the unused facility fee. The outstanding balance is secured by cash and receivables of the subsidiary totaling $123 million . Interest on the facility is payable monthly. We paid $2 million for interest on the secured revolving credit facility during the six months ended January 31, 2020 . Other Long-Term Obligations Other long-term obligations were as follows at the dates indicated: (In millions) January 31, July 31, Long-term income tax liabilities $ 40 $ 89 Total deferred rent — 47 Total dividend payable 13 11 Other 12 12 Total long-term obligations 65 159 Less current portion (included in other current liabilities) (9 ) (14 ) Long-term obligations due after one year $ 56 $ 145 Unconditional Purchase Obligations We describe our purchase obligations in Note 8 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . There were no significant changes in our purchase obligations during the six months ended January 31, 2020 .

Leases

Leases	6 Months Ended
	Jan. 31, 2020
Leases [Abstract]
Leases	6. Leases We lease office facilities under non-cancellable operating lease arrangements. Our facility leases generally provide for periodic rent increases and may contain escalation clauses and renewal options. Our leases have remaining lease terms of up to 11 years, some of which include one or more options to extend the leases for up to 10 years per option, generally at rates to be determined in accordance with the agreements. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. We do not have significant finance leases. We sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 5 years, and some include options to extend the leases for up to 4 years. The components of lease expense were as follows: Three Months Ended Six Months Ended (In millions) January 31, 2020 January 31, 2020 Operating lease cost (1) $ 19 $ 37 Variable lease cost 3 6 Sublease income (7 ) (14 ) Total net lease cost $ 15 $ 29 (1) Includes short-term leases, which are not significant for the three or six months ended January 31, 2020 . Supplemental cash flow information related to operating leases was as follows: Six Months Ended January 31, 2020 (In millions) Cash paid for amounts included in the measurement of operating lease liabilities $ 33 Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 328 (1) For the six months ended January 31, 2020 , this includes $319 million for operating leases existing on August 1, 2019 and $9 million for operating leases that commenced in the first six months of fiscal 2020. Other information related to operating leases was as follows at the date indicated: January 31, 2020 Weighted-average remaining lease term for operating leases 5.6 Weighted-average discount rate for operating leases 2.9 % Future minimum lease payments under non-cancellable operating leases as of January 31, 2020 were as follows: (In millions) Operating Leases (1) Fiscal year ending July 31, 2020 (excluding the six months ended January 31, 2020) $ 30 2021 74 2022 69 2023 61 2024 59 Thereafter 79 Total future minimum lease payments 372 Less imputed interest (29 ) Present value of lease liabilities $ 343 (1) Non-cancellable sublease proceeds for the remainder of the fiscal year ending July 31, 2020 and the fiscal years ending July 31, 2021 , 2022 , 2023 , 2024 , and thereafter of $11 million , $22 million , $10 million , $1 million , $1 million , and $1 million , respectively, are not included in the table above. Supplemental balance sheet information related to operating leases was as follows at the date indicated: (In millions) January 31, Operating lease right-of-use assets $ 297 Other current liabilities $ 57 Operating lease liabilities 286 Total operating lease liabilities $ 343 As of January 31, 2020 , we have additional operating leases of $27 million , primarily for office facilities, that have not yet commenced and therefore are not reflected on the condensed consolidated balance sheet nor in the tables above. These operating leases will commence between fiscal year 2020 and fiscal year 2022 with lease terms of 3 to 10 years.

Income Taxes

Income Taxes	6 Months Ended
	Jan. 31, 2020
Income Tax Disclosure [Abstract]
Income Taxes	7. 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. For the three and six months ended January 31, 2020 , we recognized excess tax benefits on share-based compensation of $23 million and $52 million , respectively, in our provision for income taxes. For the three and six months ended January 31, 2019 , we recognized excess tax benefits on share-based compensation of $8 million and $49 million , respectively, in our provision for income taxes. Our effective tax rates for the three and six months ended January 31, 2020 were approximately 15% and 2% , respectively. Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate for both periods was 24% . The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit. Our effective tax rate for the three months ended January 31, 2019 was approximately 20% . For the six months ended January 31, 2019 we recorded a tax benefit of $2 million on pretax income of $221 million . Excluding discrete tax items primarily related to share-based compensation tax benefits mentioned above, our effective tax rate for both periods was 23% . The difference from the federal statutory rate of 21% was primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the tax benefit we received from the federal research and experimentation credit. Unrecognized Tax Benefits and Other Considerations The total amount of our unrecognized tax benefits at July 31, 2019 was $120 million. Net of related deferred tax assets, unrecognized tax benefits were $75 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $75 million. There were no material changes to these amounts during the six months ended January 31, 2020 . We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months. We have offset a $52 million long-term income tax receivable against our long term liability for uncertain tax positions at January 31, 2020 . The long term income tax receivable is primarily related to the government’s approval of a method of accounting change request for fiscal 2018.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jan. 31, 2020
Equity [Abstract]
Stockholders' Equity	8. 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 1.0 million shares for $278 million under these programs during the six months ended January 31, 2020 . Included in this amount were $5 million of repurchases which occurred in late January 2020 and were settled in early February 2020. At January 31, 2020 , we had authorization from our Board of Directors to expend up to an additional $2.4 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 condensed consolidated 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 six months ended January 31, 2020 we declared quarterly cash dividends that totaled $1.06 per share of outstanding common stock for a total of $281 million . In February 2020 our Board of Directors declared a quarterly cash dividend of $0.53 per share of outstanding common stock payable on April 20, 2020 to stockholders of record at the close of business on April 13, 2020 . Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors. Share-Based Compensation Expense The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown. Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Cost of revenue $ 14 $ 15 $ 29 $ 29 Selling and marketing 29 25 59 55 Research and development 37 34 75 69 General and administrative 27 26 55 52 Total share-based compensation expense $ 107 $ 100 $ 218 $ 205 We capitalized $1 million and $2 million in share-based compensation related to internal use software projects during the three and six months ended January 31, 2020 and $1 million and $2 million during the three and six months ended January 31, 2019 . Share-Based Awards Available for Grant A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the six months ended January 31, 2020 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2019 21,058 Restricted stock units granted (1) (855 ) Options granted — Share-based awards canceled/forfeited/expired (1) (2) 1,823 Balance at January 31, 20 20 22,026 (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. Restricted Stock Unit Activity and Related Share-Based Compensation Expense A summary of restricted stock unit (RSU) activity for the six months ended January 31, 2020 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2019 5,683 $ 186.22 Granted 372 268.94 Vested (734 ) 157.39 Forfeited (434 ) 132.98 Nonvested at January 31, 20 20 4,887 $ 201.56 At January 31, 2020 , there was approximately $801 million of unrecognized compensation cost related to non-vested RSUs with a weighted average vesting period of 2.9 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur. Stock Option Activity and Related Share-Based Compensation Expense A summary of stock option activity for the six months ended January 31, 2020 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2019 3,374 $ 150.75 Granted — — Exercised (695 ) 104.31 Canceled or expired (41 ) 154.69 Balance at January 31, 20 20 2,638 $ 162.92 Exercisable at January 31, 20 20 1,759 $ 129.31 At January 31, 2020 , there was approximately $42 million of unrecognized compensation cost related to non-vested stock options with a weighted average vesting period of 2.8 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.

Litigation

Litigation	6 Months Ended
	Jan. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation	9. Litigation Beginning in May 2019, various legal proceedings were filed and certain regulatory inquiries were commenced in connection with the provision and marketing of our free online tax preparation programs. We believe that the allegations contained within the legal proceedings are without merit. We intend to vigorously defend against the legal proceedings and cooperate in the investigations. Intuit is subject to certain routine legal proceedings, including class action lawsuits, as well as demands, claims, government inquiries and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims could adversely affect our business. We currently believe that, in addition to any amounts accrued, the amount of potential losses, if any, for any pending claims of any type (either alone or combined) will not have a material impact on our condensed consolidated financial statements. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors.

Segment Information

Segment Information	6 Months Ended
	Jan. 31, 2020
Segment Reporting [Abstract]
Segment Information	10. Segment Information 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 serves small businesses and the self-employed around the world, and the accounting professionals who serve and advise them. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, merchant payment processing solutions, and financing for small businesses. Consumer : This segment serves consumers and includes do-it-yourself and assisted TurboTax income tax preparation products and services sold in the U.S. and Canada. Our Mint and Turbo offerings serve consumers and help them understand and improve their financial lives by offering a view of their financial health. Strategic Partner : This segment serves 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 approximately 5% of consolidated total net revenue for all periods presented. We include expenses such as corporate selling and marketing, product development, general and administrative, and share-based compensation, 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 Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 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. Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Net revenue: Small Business & Self-Employed $ 973 $ 833 $ 2,019 $ 1,741 Consumer 499 461 599 551 Strategic Partner 224 208 243 226 Total net revenue $ 1,696 $ 1,502 $ 2,861 $ 2,518 Operating income: Small Business & Self-Employed $ 402 $ 320 $ 952 $ 780 Consumer 163 164 118 123 Strategic Partner 182 166 161 146 Total segment operating income 747 650 1,231 1,049 Unallocated corporate items: Share-based compensation expense (107 ) (100 ) (218 ) (205 ) Other common expenses (363 ) (311 ) (718 ) (608 ) Amortization of acquired technology (6 ) (5 ) (12 ) (10 ) Amortization of other acquired intangible assets (1 ) (1 ) (3 ) (3 ) Total unallocated corporate items (477 ) (417 ) (951 ) (826 ) Total operating income $ 270 $ 233 $ 280 $ 223 Revenue classified by significant product and service offerings was as follows: Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Net revenue: QuickBooks Online Accounting $ 330 $ 231 $ 636 $ 448 Online Services 200 163 395 317 Total Online Ecosystem 530 394 1,031 765 QuickBooks Desktop Accounting 165 154 404 382 Desktop Services and Supplies 278 285 584 594 Total Desktop Ecosystem 443 439 988 976 Small Business & Self-Employed 973 833 2,019 1,741 Consumer 499 461 599 551 Strategic Partner 224 208 243 226 Total net revenue $ 1,696 $ 1,502 $ 2,861 $ 2,518 Revenue from our QuickBooks Desktop packaged software products was $34 million and $61 million for the three and six months ended January 31, 2020 , respectively, and $37 million and $66 million for the three and six months ended January 31, 2019 , respectively. These amounts are included in the QuickBooks Desktop Accounting revenue presented in the table above.

Subsequent Event

Subsequent Event	6 Months Ended
	Jan. 31, 2020
Subsequent Events [Abstract]
Subsequent Event	11. Subsequent Event On February 24, 2020, we entered into an agreement and plan of merger (the Merger Agreement) to acquire Credit Karma, Inc., (Credit Karma) for $7.1 billion , subject to certain customary adjustments set forth in the Merger Agreement. We are acquiring Credit Karma to expand our consumer finance platform and accelerate our mission of powering prosperity around the world and helping consumers to make ends meet. The purchase price for Credit Karma will be payable in equal portions of cash and Intuit common stock, with the shares being valued at $299.7306 per share (which price was calculated based on the daily volume-weighted average sales price per share for Intuit common stock for the ten trading days ending on February 21, 2020). The per share price of these shares has been fixed as of the Merger Agreement signing date. The aggregate value of these shares will fluctuate based on changes in our share price between the signing date and the closing date. The total consideration of $7.1 billion includes an estimated $1.0 billion for the fair value of equity awards that will be expensed over service periods of up to three years . Additionally, as part of the merger agreement, following the close of the transaction we have agreed to issue approximately $300 million of restricted stock units, which will be charged to expense over a service period of four years . The cash portion of the purchase price is expected to be financed with our existing cash and unsecured revolving credit facility. The Merger Agreement must be approved by Credit Karma shareholders and is subject to receipt of required regulatory approvals and satisfaction or waiver of other customary closing conditions. The transaction is expected to close before the end of calendar year 2020. Additionally, if the Merger Agreement is terminated as a result of reaching its termination date (10 months from the signing date unless extended by us by up to five additional months) without receiving clearance to close under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 or on the termination date there is in effect an order or injunction or similar restraint preventing consummation of the transaction under applicable U.S. antitrust laws, then under certain circumstances we would be obligated to pay Credit Karma a termination fee of between $230 million and $350 million .

Description of Business and S_2

Description of Business and Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jan. 31, 2020
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. Effective August 1, 2019, we adopted the requirements of Accounting Standards Update (ASU) 2016-02, "Leases (Topic 842)" (ASC 842) using the modified retrospective approach, under which financial results reported in prior periods were not restated. As a result, the condensed consolidated balance sheet as of January 31, 2020 is not comparable with that as of July 31, 2019 . Funds held for customers represent cash held on behalf of our customers that is invested in cash and cash equivalents and investment-grade available-for-sale debt securities. The purchases, sales and maturities of the investments for our funds held for customers are presented in investing activities in the condensed consolidated statements of cash flows. Customer fund deposits consist of amounts we owe on behalf of our customers. We present the net change in customer fund deposits in financing activities in the condensed consolidated statements of cash flows. For the six months ended January 31, 2019 , we reclassified $67 million from investing activities to financing activities to conform to the current presentation, resulting in a decrease in net cash used in financing activities with a corresponding offset to net cash used in investing activities. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2019 . Results for the six months ended January 31, 2020 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2020 or any other future period.
Seasonality	Seasonality Our Consumer and Strategic Partner offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax preparation products and services are heavily concentrated in the period from November through April. This seasonal pattern results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.
Leases	Leases Our leases are primarily operating leases for office facilities. We do not have significant finance leases. We determine if an arrangement is a lease and classify it as either a finance or operating lease at lease inception. Operating leases are included in operating lease right-of-use (ROU) assets, other current liabilities, and operating lease liabilities on our condensed consolidated balance sheets. Operating lease liabilities are recognized at commencement date based on the present value of the future minimum lease payments over the lease term. Our leases generally do not have a readily determinable implicit rate, therefore we use our incremental borrowing rate at the commencement date in determining the present value of future payments. Our incremental borrowing rate is determined based on a yield curve derived from publicly traded bond offerings for companies with similar credit ratings to us. Our lease terms may include options to purchase, extend or terminate the lease when it is reasonably certain that we will exercise that option. We account for the lease and non-lease components as a single lease component. We measure ROU assets based on the corresponding lease liabilities adjusted for any initial direct costs and prepaid lease payments made to the lessor before or at the commencement date, net of lease incentives. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Variable lease payments are not included in the calculation of the ROU asset and lease liability and are recognized as lease expense is incurred. Our variable lease payments generally relate to amounts paid to lessors for common area maintenance under our real estate leases. Our subleases generally do not relieve us of our primary obligations under the corresponding head lease. As a result, we account for the head lease based on the original assessment at inception. We determine if the sublease arrangement is either a sales-type, direct financing, or operating lease at inception. If the total remaining lease cost on the head lease for the term of the sublease is greater than the anticipated sublease income, the ROU asset is assessed for impairment. Our subleases are generally operating leases and we recognize sublease income on a straight-line basis over the sublease term.
Use of Estimates	Use of Estimates In preparing our condensed consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain judgments, estimates, and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use judgments and estimates in determining how revenue should be recognized. These judgments and estimates include identifying performance obligations, determining if the performance obligations are distinct, determining the standalone sales price (SSP) and timing of revenue recognition for each distinct performance obligation, and estimating variable consideration to be included in the transaction price. We use estimates in determining the collectibility of accounts receivable and notes receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the discount rate used to calculate lease liabilities, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.
Computation of Net Income (Loss) Per Share	Computation of Net Income (Loss) Per Share We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method. We include stock options with combined exercise prices 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.
Deferred Revenue	Deferred Revenue Generally, we receive payment at the time we enter into a contract with a customer. We record deferred revenue when we have entered into a contract with a customer and cash payments are received or due prior to transfer of control or satisfaction of the related performance obligation. During the three and six months ended January 31, 2020 , we recognized revenue of $154 million and $509 million , respectively, that was included in deferred revenue at July 31, 2019 . During the three and six months ended January 31, 2019 , we recognized revenue of $149 million and $476 million , respectively, that was included in deferred revenue at July 31, 2018 . Our performance obligations are generally satisfied within 12 months of the initial contract date. As of January 31, 2020 and July 31, 2019 , the deferred revenue balance related to performance obligations that will be satisfied after 12 months was $4 million and $4 million , respectively, and is included in other long-term obligations on our condensed consolidated balance sheets.
Notes Receivable and Allowances for Loan Losses	Notes Receivable and Allowances for Loan Losses Notes receivable consist of term loans to small businesses and are included in prepaid expenses and other current assets on our condensed consolidated balance sheets. As of January 31, 2020 and July 31, 2019 , the notes receivable balance was $103 million and $95 million , respectively, and the allowances for loan losses were not significant. The term loans are not secured and are recorded at amortized cost, net of allowances for loan losses. We maintain an allowance for loan losses to reserve for potentially uncollectible notes receivable. We evaluate the creditworthiness of our loan portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk and characteristics and apply a loss rate at the time of loan origination. The loss rate and underlying model are updated periodically to reflect actual loan performance and changes in assumptions. We make judgments about the known and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions. When we determine that amounts are uncollectible, we write them off against the allowance.
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 or six months ended January 31, 2020 or January 31, 2019 . Due to the seasonality of our consumer tax offerings, one large retailer accounted for 11% of gross accounts receivable at January 31, 2020 . No customer accounted for 10% or more of gross accounts receivable at July 31, 2019 .
Accounting Standards Recently Adopted and Accounting Standards Not Yet Adopted	Accounting Standards Recently Adopted Leases - In February 2016 the Financial Accounting Standards Board (FASB) issued ASU 2016-02, “ Leases (Topic 842) ”. This 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. We adopted this standard in the first quarter of our fiscal year beginning August 1, 2019 using the modified retrospective approach, under which financial results reported in prior periods were not adjusted. We elected certain practical expedients, including the relief package practical expedient which among other things allowed us to carry forward the historical lease classifications. We also elected the practical expedient to combine lease and non-lease components for all asset classes. The adoption of ASC 842 on August 1, 2019 resulted in the recognition of ROU assets and operating lease liabilities of $319 million and $361 million , respectively, related to our operating leases. Adoption of the standard also resulted in the elimination of deferred rent liabilities of $47 million and prepaid rent of $5 million . Adoption did not result in any cumulative-effect adjustments to retained earnings, and there was no material impact to our condensed consolidated statements of operations or our condensed consolidated statements of cash flows. Accounting Standards Not Yet Adopted Internal-Use Software - In August 2018 the FASB issued Accounting Standards Update (ASU) 2018-15, “ Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. 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 2018-15 on our condensed consolidated financial statements. Goodwill Impairment - In January 2017 the FASB issued ASU 2017-04, “ Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” This 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 condensed consolidated financial statements. Financial Instruments - In June 2016 the FASB issued ASU 2016-13, “ Financial Instruments—Credit Losses (Topic 326). ” This 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 condensed consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements.
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.

Description of Business and S_3

Description of Business and Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jan. 31, 2020
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 income per share for the periods indicated. Three Months Ended Six Months Ended (In millions, except per share amounts) January 31, January 31, January 31, January 31, Numerator: Net income $ 240 $ 189 $ 297 $ 223 Denominator: Shares used in basic per share amounts: Weighted average common shares outstanding 261 260 261 260 Shares used in diluted per share amounts: Weighted average common shares outstanding 261 260 261 260 Dilutive common equivalent shares from stock options and restricted stock awards 3 4 3 4 Dilutive weighted average common shares outstanding 264 264 264 264 Basic and diluted net income per share: Basic net income per share $ 0.92 $ 0.73 $ 1.14 $ 0.86 Diluted net income per share $ 0.91 $ 0.72 $ 1.13 $ 0.84 Shares excluded from diluted net income per share: Weighted average stock options and restricted stock units that have been excluded from dilutive common equivalent shares outstanding due to their anti-dilutive effect — 1 — 1

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jan. 31, 2020
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. January 31, 2020 July 31, 2019 (In millions) Level 1 Level 2 Total Fair Value Level 1 Level 2 Total Fair Value Assets: Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds $ 1,222 $ — $ 1,222 $ 1,647 $ — $ 1,647 Available-for-sale debt securities: Municipal bonds — 1 1 — 5 5 Corporate notes — 794 794 — 800 800 U.S. agency securities — 30 30 — 19 19 Total available-for-sale debt securities — 825 825 — 824 824 Total assets measured at fair value on a recurring basis $ 1,222 $ 825 $ 2,047 $ 1,647 $ 824 $ 2,471
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. January 31, 2020 July 31, 2019 (In millions) Level 1 Level 2 Total Fair Value Level 1 Level 2 Total Fair Value Cash equivalents: In cash and cash equivalents $ 1,173 $ — $ 1,173 $ 1,647 $ — $ 1,647 In funds held for customers 49 — 49 — — — Total cash equivalents $ 1,222 $ — $ 1,222 $ 1,647 $ — $ 1,647 Available-for-sale debt securities: In investments $ — $ 625 $ 625 $ — $ 624 $ 624 In funds held for customers — 200 200 — 200 200 Total available-for-sale debt securities $ — $ 825 $ 825 $ — $ 824 $ 824

Cash and Cash Equivalents, In_2

Cash and Cash Equivalents, Investments, and Funds Held for Customers (Tables)	6 Months Ended
	Jan. 31, 2020
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. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Classification on condensed consolidated balance sheets: Cash and cash equivalents $ 1,641 $ 1,641 $ 2,116 $ 2,116 Investments 621 625 622 624 Funds held for customers 461 461 436 436 Long-term investments 13 13 13 13 Total cash and cash equivalents, investments, and funds held for customers $ 2,736 $ 2,740 $ 3,187 $ 3,189
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. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Type of issue: Total cash, cash equivalents, restricted cash, and restricted cash equivalents $ 1,902 $ 1,902 $ 2,352 $ 2,352 Available-for-sale debt securities: Municipal bonds 1 1 5 5 Corporate notes 790 794 798 800 U.S. agency securities 30 30 19 19 Total available-for-sale debt securities 821 825 822 824 Other long-term investments 13 13 13 13 Total cash, cash equivalents, restricted cash, restricted cash equivalents, and investments $ 2,736 $ 2,740 $ 3,187 $ 3,189
Available-for-sale debt securities classified by the stated maturity date of the security	The following table summarizes our available-for-sale debt securities, included in investments and funds held for customers, classified by the stated maturity date of the security at the dates indicated. January 31, 2020 July 31, 2019 (In millions) Amortized Cost Fair Value Amortized Cost Fair Value Due within one year $ 397 $ 397 $ 415 $ 416 Due within two years 216 218 208 208 Due within three years 177 178 163 164 Due after three years 31 32 36 36 Total available-for-sale debt securities $ 821 $ 825 $ 822 $ 824
Schedule of funds held for customers	The following table summarizes our funds held for customers by investment category at the dates indicated. January 31, 2020 July 31, 2019 (In millions) Restricted cash and restricted cash equivalents $ 261 $ 236 Restricted available-for-sale debt securities 200 200 Total funds held for customers $ 461 $ 436 January 31, 2019 July 31, 2018 (In millions) Restricted cash and restricted cash equivalents $ 234 $ 167 Restricted available-for-sale debt securities 200 200 Total funds held for customers $ 434 $ 367

Current Liabilities (Tables)

Current Liabilities (Tables)	6 Months Ended
	Jan. 31, 2020
Other Liabilities Disclosure [Abstract]
Other current liabilities	Other current liabilities were as follows at the dates indicated: (In millions) January 31, July 31, Executive deferred compensation plan liabilities $ 121 $ 108 Current portion of operating lease liabilities 57 — Reserve for promotional discounts and rebates 29 11 Reserve for returns and credits 52 24 Current portion of deferred rent — 6 Current portion of dividend payable 8 7 Other 51 46 Total other current liabilities $ 318 $ 202

Long-Term Obligations and Com_2

Long-Term Obligations and Commitments (Tables)	6 Months Ended
	Jan. 31, 2020
Debt Disclosure [Abstract]
Other long-term obligations	Other long-term obligations were as follows at the dates indicated: (In millions) January 31, July 31, Long-term income tax liabilities $ 40 $ 89 Total deferred rent — 47 Total dividend payable 13 11 Other 12 12 Total long-term obligations 65 159 Less current portion (included in other current liabilities) (9 ) (14 ) Long-term obligations due after one year $ 56 $ 145

Leases (Tables)

Leases (Tables)	6 Months Ended
	Jan. 31, 2020
Leases [Abstract]
Components of Lease Expense	Supplemental balance sheet information related to operating leases was as follows at the date indicated: (In millions) January 31, Operating lease right-of-use assets $ 297 Other current liabilities $ 57 Operating lease liabilities 286 Total operating lease liabilities $ 343 The components of lease expense were as follows: Three Months Ended Six Months Ended (In millions) January 31, 2020 January 31, 2020 Operating lease cost (1) $ 19 $ 37 Variable lease cost 3 6 Sublease income (7 ) (14 ) Total net lease cost $ 15 $ 29 (1) Includes short-term leases, which are not significant for the three or six months ended January 31, 2020 . Supplemental cash flow information related to operating leases was as follows: Six Months Ended January 31, 2020 (In millions) Cash paid for amounts included in the measurement of operating lease liabilities $ 33 Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 328 (1) For the six months ended January 31, 2020 , this includes $319 million for operating leases existing on August 1, 2019 and $9 million for operating leases that commenced in the first six months of fiscal 2020. Other information related to operating leases was as follows at the date indicated: January 31, 2020 Weighted-average remaining lease term for operating leases 5.6 Weighted-average discount rate for operating leases 2.9 %
Future Minimum Lease Payments	Future minimum lease payments under non-cancellable operating leases as of January 31, 2020 were as follows: (In millions) Operating Leases (1) Fiscal year ending July 31, 2020 (excluding the six months ended January 31, 2020) $ 30 2021 74 2022 69 2023 61 2024 59 Thereafter 79 Total future minimum lease payments 372 Less imputed interest (29 ) Present value of lease liabilities $ 343 (1) Non-cancellable sublease proceeds for the remainder of the fiscal year ending July 31, 2020 and the fiscal years ending July 31, 2021 , 2022 , 2023 , 2024 , and thereafter of $11 million , $22 million , $10 million , $1 million , $1 million , and $1 million , respectively, are not included in the table above.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jan. 31, 2020
Equity [Abstract]
Total share-based compensation expense	The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown. Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Cost of revenue $ 14 $ 15 $ 29 $ 29 Selling and marketing 29 25 59 55 Research and development 37 34 75 69 General and administrative 27 26 55 52 Total share-based compensation expense $ 107 $ 100 $ 218 $ 205
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 six months ended January 31, 2020 was as follows: (Shares in thousands) Shares Available for Grant Balance at July 31, 2019 21,058 Restricted stock units granted (1) (855 ) Options granted — Share-based awards canceled/forfeited/expired (1) (2) 1,823 Balance at January 31, 20 20 22,026 (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 restricted stock unit activity	A summary of restricted stock unit (RSU) activity for the six months ended January 31, 2020 was as follows: Restricted Stock Units (Shares in thousands) Number of Shares Weighted Average Grant Date Fair Value Nonvested at July 31, 2019 5,683 $ 186.22 Granted 372 268.94 Vested (734 ) 157.39 Forfeited (434 ) 132.98 Nonvested at January 31, 20 20 4,887 $ 201.56
Summary of stock option activity	A summary of stock option activity for the six months ended January 31, 2020 was as follows: Options Outstanding (Shares in thousands) Number of Shares Weighted Average Exercise Price Per Share Balance at July 31, 2019 3,374 $ 150.75 Granted — — Exercised (695 ) 104.31 Canceled or expired (41 ) 154.69 Balance at January 31, 20 20 2,638 $ 162.92 Exercisable at January 31, 20 20 1,759 $ 129.31

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jan. 31, 2020
Segment Reporting [Abstract]
Financial results by reportable segment	The following table shows our financial results by reportable segment for the periods indicated. Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Net revenue: Small Business & Self-Employed $ 973 $ 833 $ 2,019 $ 1,741 Consumer 499 461 599 551 Strategic Partner 224 208 243 226 Total net revenue $ 1,696 $ 1,502 $ 2,861 $ 2,518 Operating income: Small Business & Self-Employed $ 402 $ 320 $ 952 $ 780 Consumer 163 164 118 123 Strategic Partner 182 166 161 146 Total segment operating income 747 650 1,231 1,049 Unallocated corporate items: Share-based compensation expense (107 ) (100 ) (218 ) (205 ) Other common expenses (363 ) (311 ) (718 ) (608 ) Amortization of acquired technology (6 ) (5 ) (12 ) (10 ) Amortization of other acquired intangible assets (1 ) (1 ) (3 ) (3 ) Total unallocated corporate items (477 ) (417 ) (951 ) (826 ) Total operating income $ 270 $ 233 $ 280 $ 223
Revenue classified by significant product and service offerings	Revenue classified by significant product and service offerings was as follows: Three Months Ended Six Months Ended (In millions) January 31, January 31, January 31, January 31, Net revenue: QuickBooks Online Accounting $ 330 $ 231 $ 636 $ 448 Online Services 200 163 395 317 Total Online Ecosystem 530 394 1,031 765 QuickBooks Desktop Accounting 165 154 404 382 Desktop Services and Supplies 278 285 584 594 Total Desktop Ecosystem 443 439 988 976 Small Business & Self-Employed 973 833 2,019 1,741 Consumer 499 461 599 551 Strategic Partner 224 208 243 226 Total net revenue $ 1,696 $ 1,502 $ 2,861 $ 2,518

Description of Business and S_4

Description of Business and Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Aug. 01, 2019	Jul. 31, 2019
Capitalized Contract Cost [Line Items]
Net change in customer fund deposits			$ 25	$ 67
Deferred revenue recognized	$ 154	$ 149	$ 509	476
Timing of performance obligation			12 months
Long-term deferred revenue	4		$ 4			$ 4
Notes receivable	103		103			95
Operating lease right-of-use assets	297		297
Present value of lease liabilities	343		343
Deferred rent liability	$ 0		$ 0			$ (47)
Accounting Standards Update 2016-02
Capitalized Contract Cost [Line Items]
Operating lease right-of-use assets					$ 319
Present value of lease liabilities					361
Deferred rent liability					47
Prepaid rent					$ 5
Restatement adjustment
Capitalized Contract Cost [Line Items]
Net change in customer fund deposits				$ 67
Largest Customer | Customer Concentration Risk | Accounts Receivable
Capitalized Contract Cost [Line Items]
Concentration risk, percentage			11.00%

Description of Business and S_5

Description of Business and Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Accounting Policies [Abstract]
Net income	$ 240	$ 189	$ 297	$ 223
Shares used in basic per share amounts:
Weighted average common shares outstanding (in shares)	261	260	261	260
Shares used in diluted per share amounts:
Weighted average common shares outstanding (in shares)	261	260	261	260
Dilutive common equivalent shares from stock options and restricted stock awards (in shares)	3	4	3	4
Dilutive weighted average common shares outstanding (in shares)	264	264	264	264
Basic and diluted net income per share:
Basic net income per share (in dollars per share)	$ 0.92	$ 0.73	$ 1.14	$ 0.86
Diluted net income per share (in dollars per share)	$ 0.91	$ 0.72	$ 1.13	$ 0.84
Shares excluded from diluted net income per share:
Weighted average stock options and restricted stock units that have been excluded from dilutive common equivalent shares outstanding due to their anti-dilutive effect (in shares)	0	1	0	1

Fair Value Measurements - Recur

Fair Value Measurements - Recurring Basis (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Assets:
Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds	$ 1,641	$ 2,116
Available-for-sale debt securities	825	824
Fair value, measurements, recurring
Assets:
Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds	1,222	1,647
Available-for-sale debt securities	825	824
Total assets measured at fair value on a recurring basis	2,047	2,471
Fair value, measurements, recurring | Level 1
Assets:
Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds	1,222	1,647
Available-for-sale debt securities	0	0
Total assets measured at fair value on a recurring basis	1,222	1,647
Fair value, measurements, recurring | Level 2
Assets:
Cash equivalents, primarily time deposits, savings deposit accounts, and money market funds	0	0
Available-for-sale debt securities	825	824
Total assets measured at fair value on a recurring basis	825	824
Fair value, measurements, recurring | Municipal bonds
Assets:
Available-for-sale debt securities	1	5
Fair value, measurements, recurring | Municipal bonds | Level 1
Assets:
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | Municipal bonds | Level 2
Assets:
Available-for-sale debt securities	1	5
Fair value, measurements, recurring | Corporate notes
Assets:
Available-for-sale debt securities	794	800
Fair value, measurements, recurring | Corporate notes | Level 1
Assets:
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | Corporate notes | Level 2
Assets:
Available-for-sale debt securities	794	800
Fair value, measurements, recurring | U.S. agency securities
Assets:
Available-for-sale debt securities	30	19
Fair value, measurements, recurring | U.S. agency securities | Level 1
Assets:
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | U.S. agency securities | Level 2
Assets:
Available-for-sale debt securities	$ 30	$ 19

Fair Value Measurements - Balan

Fair Value Measurements - Balance Sheet Classification (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	$ 1,641	$ 2,116
Available-for-sale debt securities	825	824
Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	1,222	1,647
Available-for-sale debt securities	825	824
Fair value, measurements, recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	1,222	1,647
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
Available-for-sale debt securities	825	824
Fair value, measurements, recurring | Available for sale debt securities in investments
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	625	624
Fair value, measurements, recurring | Available for sale debt securities in investments | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | Available for sale debt securities in investments | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	625	624
Fair value, measurements, recurring | Available for sale debt securities in funds held for customers
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	200	200
Fair value, measurements, recurring | Available for sale debt securities in funds held for customers | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	0	0
Fair value, measurements, recurring | Available for sale debt securities in funds held for customers | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale debt securities	200	200
In cash and cash equivalents | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	1,173	1,647
In cash and cash equivalents | Fair value, measurements, recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	1,173	1,647
In cash and cash equivalents | Fair value, measurements, recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	0	0
In funds held for customers | Fair value, measurements, recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	49	0
In funds held for customers | Fair value, measurements, recurring | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	49	0
In funds held for customers | Fair value, measurements, recurring | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and cash equivalents, fair value	$ 0	$ 0

Cash and Cash Equivalents, In_3

Cash and Cash Equivalents, Investments, and Funds Held for Customers - Classification on Balance Sheets (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019	Jan. 31, 2019
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents	$ 1,641	$ 2,116	$ 1,075
Available-for-sale debt securities, amortized cost	821	822
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	2,736	3,187
Cash and cash equivalents, fair value	1,641	2,116
Available-for-sale debt securities, fair value	825	824
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	2,740	3,189
Investments
Cash and Cash Equivalents Items [Line Items]
Available-for-sale debt securities, amortized cost	621	622
Available-for-sale debt securities, fair value	625	624
Funds held for customers
Cash and Cash Equivalents Items [Line Items]
Available-for-sale debt securities, amortized cost	461	436
Available-for-sale debt securities, fair value	461	436
Long-term investments
Cash and Cash Equivalents Items [Line Items]
Available-for-sale debt securities, amortized cost	13	13
Available-for-sale debt securities, fair value	$ 13	$ 13

Cash and Cash Equivalents, In_4

Cash and Cash Equivalents, Investments, and Funds Held for Customers - Type of issue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		12 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019	Jul. 31, 2018
Cash and Cash Equivalents Items [Line Items]
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	$ 1,902	$ 1,309	$ 1,902	$ 1,309	$ 2,352	$ 1,631
Available-for-sale securities:
Available-for-sale debt securities, amortized cost	821		821		822
Available-for-sale debt securities	825		825		824
Other long-term investments, amortized cost	13		13		13
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	2,736		2,736		3,187
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	2,740		2,740		3,189
Gross realized gains (losses) on available for sale debt securities	0	$ 0	0	$ 0
Unrealized gain (loss) on available for sale debt securities			0		0
Total cash, cash equivalents, restricted cash, and restricted cash equivalents
Cash and Cash Equivalents Items [Line Items]
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period	1,902		1,902		2,352
Cash, cash equivalents, restricted cash, and restricted cash equivalents, fair value	1,902		1,902		2,352
Municipal bonds
Available-for-sale securities:
Available-for-sale debt securities, amortized cost	1		1		5
Available-for-sale debt securities	1		1		5
Corporate notes
Available-for-sale securities:
Available-for-sale debt securities, amortized cost	790		790		798
Available-for-sale debt securities	794		794		800
U.S. agency securities
Available-for-sale securities:
Available-for-sale debt securities, amortized cost	30		30		19
Available-for-sale debt securities	$ 30		$ 30		$ 19

Cash and Cash Equivalents, In_5

Cash and Cash Equivalents, Investments, and Funds Held for Customers - Classified by the stated maturity date (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Amortized Cost
Due within one year	$ 397	$ 415
Due within two years	216	208
Due within three years	177	163
Due after three years	31	36
Total available-for-sale debt securities	821	822
Fair Value
Due within one year	397	416
Due within two years	218	208
Due within three years	178	164
Due after three years	32	36
Total available-for-sale debt securities	$ 825	$ 824

Cash and Cash Equivalents, In_6

Cash and Cash Equivalents, Investments, and Funds Held for Customers - Investments in Funds Held for Customers (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019	Jan. 31, 2019	Jul. 31, 2018
Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]
Restricted cash and restricted cash equivalents	$ 261	$ 236	$ 234	$ 167
Restricted available-for-sale debt securities	200	200	200	200
Total funds held for customers	$ 461	$ 436	$ 434	$ 367

Current Liabilities - Narrative

Current Liabilities - Narrative (Details)	May 02, 2019USD ($)extension	Jan. 31, 2020USD ($)	Jan. 31, 2019USD ($)	Jul. 31, 2019USD ($)
Debt Instrument [Line Items]
Short-term debt		$ 38,000,000		$ 50,000,000
Amendment to Master Credit Agreement
Debt Instrument [Line Items]
Master credit agreement	$ 1,400,000,000
Amendment to Master Credit Agreement | Term Loan
Debt Instrument [Line Items]
Interest paid		6,000,000	$ 7,000,000
Amendment to Master 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
Amendment to Master Credit Agreement | Line of Credit | Term Loan
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	$ 400,000,000
Unsecured term loan		363,000,000
Short-term debt		38,000,000
Amendment to Master Credit Agreement | Line of Credit | Term Loan | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.00%
Amendment to Master Credit Agreement | Line of Credit | Term Loan | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Amendment to Master Credit Agreement | Line of Credit | Term Loan | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.625%
Amendment to Master Credit Agreement | Line of Credit | Term Loan | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%
Amendment to Master 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		0
Interest paid		$ 0	$ 0
Amendment to Master Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.00%
Amendment to Master Credit Agreement | Line of Credit | Revolving Credit Facility | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.10%
Amendment to Master Credit Agreement | Line of Credit | Revolving Credit Facility | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.69%
Amendment to Master Credit Agreement | Line of Credit | Revolving Credit Facility | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.10%

Current Liabilities - Other Cur

Current Liabilities - Other Current Liabilities (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Other Liabilities, Current [Abstract]
Executive deferred compensation plan liabilities	$ 121	$ 108
Current portion of operating lease liabilities	57
Reserve for promotional discounts and rebates	29	11
Reserve for returns and credits	52	24
Current portion of deferred rent	0	6
Current portion of dividend payable	8	7
Other	51	46
Total other current liabilities	$ 318	$ 202

Long-Term Obligations and Com_3

Long-Term Obligations and Commitments - Long Term Debt (Details) - USD ($)	May 02, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019
Debt Instrument [Line Items]
Short-term debt		$ 38,000,000		$ 50,000,000
Amendment to Master Credit Agreement
Debt Instrument [Line Items]
Master credit agreement	$ 1,400,000,000
Amendment to Master Credit Agreement | Term Loan
Debt Instrument [Line Items]
Interest paid		6,000,000	$ 7,000,000
Amendment to Master Credit Agreement | Term Loan | Line of Credit
Debt Instrument [Line Items]
Line of credit, maximum borrowing capacity	400,000,000
Unsecured term loan		363,000,000
Term Loan, increase limit	400,000,000
Short-term debt		$ 38,000,000
Quarterly principal payment	$ 12,500,000
Amendment to Master Credit Agreement | Term Loan | Line of Credit | Base Rate | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.00%
Amendment to Master Credit Agreement | Term Loan | Line of Credit | Base Rate | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	0.125%
Amendment to Master Credit Agreement | Term Loan | Line of Credit | LIBOR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate	0.625%
Amendment to Master Credit Agreement | Term Loan | Line of Credit | LIBOR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate	1.125%

Long-Term Obligations and Com_4

Long-Term Obligations and Commitments - Secured Revolving Credit Facility (Details) - Revolving Credit Facility - 2019 Secured Revolving Credit Facility - USD ($)	Feb. 19, 2019	Jan. 31, 2020
Debt Instrument [Line Items]
Periodic interest payment		$ 2,000,000
Subsidiary | Line of Credit
Debt Instrument [Line Items]
Debt instrument term	2 years
Line of credit, maximum borrowing capacity	$ 300,000,000
Interest rate on unused portion of line of credit	0.50%
Prepayment fee percentage	1.00%
Fair value of amount outstanding		$ 48,000,000
Interest rate at period end		7.24%
Secured amount		$ 123,000,000
Subsidiary | Line of Credit | LIBOR
Debt Instrument [Line Items]
Basis spread on variable rate	2.39%

Long-Term Obligations and Com_5

Long-Term Obligations and Commitments - Other Long-Term Obligations (Details) - USD ($) $ in Millions	Jan. 31, 2020	Jul. 31, 2019
Debt Disclosure [Abstract]
Long-term income tax liabilities	$ 40	$ 89
Total deferred rent	0	47
Total dividend payable	13	11
Other	12	12
Total long-term obligations	65	159
Less current portion (included in other current liabilities)	(9)	(14)
Long-term obligations due after one year	$ 56	$ 145

Leases - Narrative (Details)

Leases - Narrative (Details) $ in Millions	6 Months Ended
	Jan. 31, 2020USD ($)
Lessee, Lease, Description [Line Items]
Option to extend operating leases	10 years
Option to extend operating subleases	4 years
Leases not yet commenced	$ 27
Minimum
Lessee, Lease, Description [Line Items]
Terms for leases not yet commenced	3 years
Maximum
Lessee, Lease, Description [Line Items]
Operating lease terms	11 years
Operating sublease terms	5 years
Terms for leases not yet commenced	10 years

Leases - Lease Cost (Details)

Leases - Lease Cost (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jan. 31, 2020	Jan. 31, 2020
Leases [Abstract]
Operating lease cost	$ 19	$ 37
Variable lease cost	3	6
Sublease income	(7)	(14)
Total net lease cost	$ 15	$ 29

Leases - Supplemental Cash Flow

Leases - Supplemental Cash Flows (Details) $ in Millions	6 Months Ended
	Jan. 31, 2020USD ($)
Leases [Abstract]
Cash paid for amounts included in the measurement of operating lease liabilities	$ 33
Right-of-use assets obtained in exchange for new operating lease liabilities	328
Right-of-use assets, obtained in exchange for new operating lease liabilities, existing prior to August 1, 2019	319
Right-of-use assets, obtained in exchange for new operating lease liabilities, operating leases not yet commenced	$ 9

Leases - Other Lease Informatio

Leases - Other Lease Information (Details)	Jan. 31, 2020
Leases [Abstract]
Weighted-average remaining lease term for operating leases	5 years 7 months 6 days
Weighted-average discount rate for operating leases	2.90%

Leases - Schedule of Future Pay

Leases - Schedule of Future Payments (Details) $ in Millions	Jan. 31, 2020USD ($)
Operating Lease Maturity
2020 (excluding the six months ended January 31, 2020)	$ 30
2021	74
2022	69
2023	61
2024	59
Thereafter	79
Total future minimum lease payments	372
Less imputed interest	(29)
Present value of lease liabilities	343
Sublease Income Maturity
Remainder of fiscal year 2020	11
2021	22
2022	10
2023	1
2024	1
Thereafter	$ 1

Leases - Supplemental Balance S

Leases - Supplemental Balance Sheet (Details) $ in Millions	Jan. 31, 2020USD ($)
Leases [Abstract]
Operating lease right-of-use assets	$ 297
Other current liabilities	57
Operating lease liabilities	286
Total operating lease liabilities	$ 343

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019	Jul. 31, 2019
Income Tax Disclosure [Abstract]
Tax benefit, share based compensation	$ 23	$ 8	$ 52	$ 49
Income tax provision (benefit)	(42)	(46)	(7)	2
Income (loss) before income taxes	$ 282	$ 235	$ 304	$ 221
Effective tax rate	15.00%	20.00%	2.00%
Effective tax rate, excluding discrete tax benefits			24.00%	23.00%
Federal statutory income tax rate			21.00%
Total amount of unrecognized tax benefits					$ 120
Unrecognized tax benefits, net of related deferred tax assets					75
Favorable net impact to income tax expense due to recognition of tax benefits					$ 75
Changes in unrecognized tax benefits			$ 0
Long-term income tax receivable	$ 52		$ 52

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		6 Months Ended
	Feb. 24, 2020	Jan. 31, 2020	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock repurchased (in shares)					1
Common stock repurchased, value		$ 5	$ 139	$ 177	$ 278	$ 278
Stock repurchase program, remaining authorized repurchase amount		$ 2,400	2,400		$ 2,400
Common stock, dividends, per share, cash paid (in dollars per share)					$ 1.06
Dividends declared			$ (140)	$ (124)	$ (281)	$ (250)
Cash dividends declared per common share (in dollars per share)			$ 0.53	$ 0.47	$ 1.06	$ 0.94
Subsequent event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Cash dividends declared per common share (in dollars per share)	$ 0.53
Retained Earnings
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Dividends declared			$ (140)	$ (124)	$ (281)	$ (250)

Stockholders' Equity - Share-Ba

Stockholders' Equity - Share-Based Compensation Expense (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 107	$ 100	$ 218	$ 205
Software and Software Development Costs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Capitalized computer software, gross	1	1	2	2
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	14	15	29	29
Selling and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	29	25	59	55
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	37	34	75	69
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation	$ 27	$ 26	$ 55	$ 52

Stockholders' Equity - Share-_2

Stockholders' Equity - Share-Based Awards Available for Grant (Details) shares in Thousands	6 Months Ended
	Jan. 31, 2020shares
Shares Available for Grant
Shares available for grant, beginning balance (in shares)	21,058
Restricted stock units granted (in shares)	(855)
Options granted (in shares)	0
Share-based awards canceled/forfeited/expired (in shares)	1,823
Shares available for grant, ending balance (in shares)	22,026
Pool shares reduced for each share granted (in shares)	2.3
Pool shares increased for each share forfeited (in shares)	2.3

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit Activity and Related Share-Based Compensation Expense (Details) - Restricted Stock Units (RSUs) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jan. 31, 2020USD ($)$ / sharesshares
Number of Shares
Nonvested at beginning of period (in shares) | shares	5,683
Granted (in shares) | shares	372
Vested (in shares) | shares	(734)
Forfeited (in shares) | shares	(434)
Nonvested at end of period (in shares) | shares	4,887
Weighted Average Grant Date Fair Value
Nonvested, Weighted Average Grant Date Fair Value, at beginning of period (in dollars per shares) | $ / shares	$ 186.22
Granted, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	268.94
Vested, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	157.39
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares) | $ / shares	132.98
Nonvested, Weighted Average Grant Date Fair Value, at end of period (in dollars per shares) | $ / shares	$ 201.56
Unrecognized compensation cost related to non-vested RSUs | $	$ 801
Weighted average vesting period, in years	2 years 10 months 24 days

Stockholders' Equity - Stock-Op

Stockholders' Equity - Stock-Option Activity and Related Share-Based Compensation Expense (Details) $ / shares in Units, shares in Thousands, $ in Millions	6 Months Ended
	Jan. 31, 2020USD ($)$ / sharesshares
Number of Shares
Options granted, number of shares (in shares)	0
Employee Stock Option
Number of Shares
Options outstanding, beginning balance (in shares)	3,374
Options granted, number of shares (in shares)	0
Options exercised, number of shares (in shares)	(695)
Options canceled or expired, number of shares (in shares)	(41)
Options outstanding, ending balance (in shares)	2,638
Weighted Average Exercise Price Per Share
Weighted average exercise price per share, Beginning Balance (in dollars per share) | $ / shares	$ 150.75
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	104.31
Options canceled or expired, weighted average exercise price per share (in dollars per share) | $ / shares	154.69
Weighted average exercise price per share, Ending Balance (in dollars per share) | $ / shares	$ 162.92
Exercisable (in shares)	1,759
Exercisable, Weighted average exercise price per share (in dollars per share) | $ / shares	$ 129.31
Unrecognized compensation cost related to non-vested share based compensation expense | $	$ 42
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years	2 years 9 months 18 days

Segment Information - Results b

Segment Information - Results by Reportable Segment (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020USD ($)	Jan. 31, 2019USD ($)	Jan. 31, 2020USD ($)segment	Jan. 31, 2019USD ($)
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%	5.00%
Financial results by reportable segment
Revenues	$ 1,696	$ 1,502	$ 2,861	$ 2,518
Total operating income	270	233	280	223
Unallocated corporate items:
Share-based compensation expense	(107)	(100)	(218)	(205)
Amortization of acquired technology	(6)	(5)	(12)	(10)
Amortization of other acquired intangible assets	(1)	(1)	(3)	(3)
Operating Segments
Financial results by reportable segment
Total operating income	747	650	1,231	1,049
Segment Reconciling Items
Unallocated corporate items:
Share-based compensation expense	(107)	(100)	(218)	(205)
Other common expenses	(363)	(311)	(718)	(608)
Amortization of acquired technology	(6)	(5)	(12)	(10)
Amortization of other acquired intangible assets	(1)	(1)	(3)	(3)
Total unallocated corporate items	(477)	(417)	(951)	(826)
Small Business & Self-Employed
Financial results by reportable segment
Revenues	973	833	2,019	1,741
Small Business & Self-Employed | Operating Segments
Financial results by reportable segment
Total operating income	402	320	952	780
Consumer
Financial results by reportable segment
Revenues	499	461	599	551
Consumer | Operating Segments
Financial results by reportable segment
Total operating income	163	164	118	123
Strategic Partner
Financial results by reportable segment
Revenues	224	208	243	226
Strategic Partner | Operating Segments
Financial results by reportable segment
Total operating income	$ 182	$ 166	$ 161	$ 146

Segment Information - Disaggreg

Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jan. 31, 2020	Jan. 31, 2019	Jan. 31, 2020	Jan. 31, 2019
Revenue from External Customer [Line Items]
Revenues	$ 1,696	$ 1,502	$ 2,861	$ 2,518
Small Business & Self-Employed
Revenue from External Customer [Line Items]
Revenues	973	833	2,019	1,741
Consumer
Revenue from External Customer [Line Items]
Revenues	499	461	599	551
Strategic Partner
Revenue from External Customer [Line Items]
Revenues	224	208	243	226
Online Ecosystem Subsegment | Small Business & Self-Employed
Revenue from External Customer [Line Items]
Revenues	530	394	1,031	765
Online Ecosystem Subsegment | Small Business & Self-Employed | QuickBooks
Revenue from External Customer [Line Items]
Revenues	330	231	636	448
Online Ecosystem Subsegment | Small Business & Self-Employed | Online Services
Revenue from External Customer [Line Items]
Revenues	200	163	395	317
Desktop Ecosystem Subsegment | Small Business & Self-Employed
Revenue from External Customer [Line Items]
Revenues	443	439	988	976
Desktop Ecosystem Subsegment | Small Business & Self-Employed | QuickBooks
Revenue from External Customer [Line Items]
Revenues	165	154	404	382
Desktop Ecosystem Subsegment | Small Business & Self-Employed | Desktop Services And Supplies
Revenue from External Customer [Line Items]
Revenues	278	285	584	594
Desktop Ecosystem Subsegment | Small Business & Self-Employed | QuickBooks Packaged Software
Revenue from External Customer [Line Items]
Revenues	$ 34	$ 37	$ 61	$ 66

Subsequent Event (Details)

Subsequent Event (Details) - Subsequent event - Credit Karma - USD ($) $ / shares in Units, $ in Millions	Feb. 24, 2020	Feb. 21, 2020
Business Acquisition [Line Items]
Consideration transferred	$ 7,100
Share price (in dollars per share)		$ 299.7306
Termination fee, minimum	230
Termination fee, maximum	350
Equity Award
Business Acquisition [Line Items]
Fair value of equity awards	$ 1,000
Period of recognition for equity awards	3 years
Restricted Stock Units (RSUs)
Business Acquisition [Line Items]
Fair value of equity awards	$ 300
Period of recognition for equity awards	4 years