| Document and Company Information (USD $) | |||
| In Billions, except Share data | 3 Months Ended
Oct. 31, 2009 | Nov. 23, 2009
| Jan. 30, 2009
|
| Document and Company Information [Abstract] | |||
| Entity Registrant Name | INTUIT INC | ||
| Entity Central Index Key | 0000896878 | ||
| Document Type | 10-Q | ||
| Document Period End Date | 2009-10-31 | ||
| Amendment Flag | false | ||
| Current Fiscal Year End Date | --07-31 | ||
| Entity Well-known Seasoned Issuer | Yes | ||
| Entity Current Reporting Status | Yes | ||
| Entity Filer Category | Large Accelerated Filer | ||
| Entity Public Float | 6.8 | ||
| Entity Common Stock, Shares Outstanding | 316,760,854 |
| Condensed Consolidated Statements of Operations (Unaudited) (USD $) | ||
| In Millions, except Per Share data | 3 Months Ended
Oct. 31, 2009 | 3 Months Ended
Oct. 31, 2008 |
| Net revenue: | ||
| Product | $206 | $220 |
| Service and other | 287 | 261 |
| Total net revenue | 493 | 481 |
| Costs and expenses: | ||
| Cost of product revenue | 35 | 33 |
| Cost of service and other revenue | 119 | 112 |
| Amortization of purchased intangible assets | 22 | 15 |
| Selling and marketing | 185 | 186 |
| Research and development | 143 | 136 |
| General and administrative | 78 | 65 |
| Acquisition-related charges | 10 | 10 |
| Total costs and expenses | 592 | 557 |
| Operating loss | (99) | (76) |
| Interest expense | (16) | (12) |
| Interest and other income (expense) | 5 | (1) |
| Loss before income taxes | (110) | (89) |
| Income tax benefit | (42) | (37) |
| Net loss | ($68) | ($52) |
| Basic net loss per share | -0.21 | -0.16 |
| Shares used in basic per share calculations | 320 | 323 |
| Diluted net loss per share | -0.21 | -0.16 |
| Shares used in diluted per share calculations | 320 | 323 |
| Condensed Consolidated Balance Sheets (Unaudited) (USD $) | ||
| In Millions | Oct. 31, 2009
| Jul. 31, 2009
|
| Assets: | ||
| Cash and cash equivalents | $313 | $679 |
| Investments | 614 | 668 |
| Accounts receivable, net | 160 | 147 |
| Income taxes receivable | 98 | 67 |
| Deferred income taxes | 91 | 92 |
| Prepaid expenses and other current assets | 67 | 43 |
| Current assets before funds held for customers | 1,343 | 1,696 |
| Funds held for customers | 293 | 272 |
| Total current assets | 1,636 | 1,968 |
| Long-term investments | 92 | 97 |
| Property and equipment, net | 522 | 529 |
| Goodwill | 1,824 | 1,826 |
| Purchased intangible assets, net | 258 | 293 |
| Long-term deferred income taxes | 41 | 36 |
| Other assets | 81 | 77 |
| Total assets | 4,454 | 4,826 |
| Liabilities: | ||
| Accounts payable | 114 | 105 |
| Accrued compensation and related liabilities | 118 | 175 |
| Deferred revenue | 355 | 378 |
| Other current liabilities | 140 | 154 |
| Current liabilities before customer fund deposits | 727 | 812 |
| Customer fund deposits | 293 | 272 |
| Total current liabilities | 1,020 | 1,084 |
| Long-term debt | 998 | 998 |
| Other long-term obligations | 164 | 187 |
| Total liabilities | 2,182 | 2,269 |
| Stockholders' equity: | ||
| Preferred stock | 0 | 0 |
| Common stock and additional paid-in capital | 2,565 | 2,547 |
| Treasury stock, at cost | (3,059) | (2,846) |
| Accumulated other comprehensive income | 7 | 7 |
| Retained earnings | 2,759 | 2,849 |
| Total stockholders' equity | 2,272 | 2,557 |
| Total liabilities and stockholders' equity | $4,454 | $4,826 |
| Consolidated Statements of Shareholders Equity (Unaudited) (USD $) | ||||||
| In Millions, except Share data in Thousands | Common Stock
| Common Stock and Additional Paid-in Capital
| Treasury Stock
| Retained Earnings
| Accumulated Other Comprehensive Income
| Total
|
| Beginning Balance, shares at Jul. 31, 2008 | 322,600 | |||||
| Beginning Balance at Jul. 31, 2008 | $2,415 | ($2,787) | $2,444 | $8 | $2,080 | |
| Components of comprehensive net loss: | ||||||
| Net loss | (52) | (52) | ||||
| Other comprehensive loss, net of tax | (7) | (7) | ||||
| Issuance of common stock under employee stock plans | 83 | (6) | 77 | |||
| Issuance of common stock under employee stock plans, shares | 3,864 | |||||
| Restricted stock units released, net of taxes | (12) | 16 | (16) | (12) | ||
| Restricted stock units released, net of taxes, shares | 723 | |||||
| Stock repurchases under stock repurchase programs | (165) | (165) | ||||
| Stock repurchases under stock repurchase programs, shares | (6,021) | |||||
| Tax benefit from employee stock option transactions | 11 | 11 | ||||
| Share-based compensation | 22 | 22 | ||||
| Ending Balance at Oct. 31, 2008 | 2,436 | (2,853) | 2,370 | 1 | 1,954 | |
| Ending Balance, shares at Oct. 31, 2008 | 321,166 | |||||
| Beginning Balance, shares at Jul. 31, 2009 | 322,766 | |||||
| Beginning Balance at Jul. 31, 2009 | 2,547 | (2,846) | 2,849 | 7 | 2,557 | |
| Components of comprehensive net loss: | ||||||
| Net loss | (68) | (68) | ||||
| Other comprehensive loss, net of tax | 0 | 0 | ||||
| Issuance of common stock under employee stock plans | 67 | (2) | 65 | |||
| Issuance of common stock under employee stock plans, shares | 3,056 | |||||
| Restricted stock units released, net of taxes | (15) | 20 | (20) | (15) | ||
| Restricted stock units released, net of taxes, shares | 954 | |||||
| Stock repurchases under stock repurchase programs | (300) | (300) | ||||
| Stock repurchases under stock repurchase programs, shares | (10,565) | |||||
| Tax benefit from employee stock option transactions | 6 | 6 | ||||
| Share-based compensation | 27 | 27 | ||||
| Ending Balance at Oct. 31, 2009 | $2,565 | ($3,059) | $2,759 | $7 | $2,272 | |
| Ending Balance, shares at Oct. 31, 2009 | 316,211 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | ||
| In Millions | 3 Months Ended
Oct. 31, 2009 | 3 Months Ended
Oct. 31, 2008 |
| Cash flows from operating activities: | ||
| Net loss | ($68) | ($52) |
| Adjustments to reconcile net loss to net cash used in operating activities: | ||
| Depreciation | 39 | 33 |
| Amortization of intangible assets | 36 | 27 |
| Share-based compensation | 27 | 22 |
| Deferred income taxes | (24) | 45 |
| Tax benefit from share-based compensation plans | 6 | 11 |
| Excess tax benefit from share-based compensation plans | (3) | (6) |
| Other | 4 | 5 |
| Total adjustments | 85 | 137 |
| Changes in operating assets and liabilities: | ||
| Accounts receivable | (13) | (17) |
| Prepaid expenses, income taxes receivable and other assets | (56) | (121) |
| Accounts payable | 9 | 22 |
| Accrued compensation and related liabilities | (57) | (113) |
| Deferred revenue | (24) | (18) |
| Income taxes payable | 0 | (14) |
| Other liabilities | (16) | (24) |
| Total changes in operating assets and liabilities | (157) | (285) |
| Net cash used in operating activities | (140) | (200) |
| Cash flows from investing activities: | ||
| Purchases of available-for-sale debt securities | (388) | (36) |
| Sales of available-for-sale debt securities | 322 | 148 |
| Maturities of available-for-sale debt securities | 36 | 11 |
| Net change in funds held for customers' money market funds and other cash equivalents | 66 | 283 |
| Purchases of property and equipment | (32) | (67) |
| Net change in customer fund deposits | 21 | (283) |
| Other | (3) | 2 |
| Net cash provided by investing activities | 22 | 58 |
| Cash flows from financing activities: | ||
| Net proceeds from issuance of common stock under stock plans | 65 | 77 |
| Tax payments related to restricted stock issuance | (15) | (12) |
| Purchase of treasury stock | (300) | (165) |
| Excess tax benefit from share-based compensation plans | 3 | 6 |
| Other | (1) | 0 |
| Net cash used in financing activities | (248) | (94) |
| Effect of exchange rates on cash and cash equivalents | 0 | (8) |
| Net decrease in cash and cash equivalents | (366) | (244) |
| Cash and cash equivalents at beginning of period | 679 | 413 |
| Cash and cash equivalents at end of period | $313 | $169 |
| Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Description of Business, Basis of Presentation and Summary of Significant Accounting Policies [Abstract] | |
| Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | 1. Description of Business, Basis of Presentation and Summary of Significant Accounting Policies Description of Business Intuit Inc. provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. Our flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuits tax preparation offerings for professional accountants. Our financial institutions division, anchored by Digital Insight, provides outsourced online banking services to banks and credit unions. 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. In July2009 we acquired PayCycle, Inc. for a total purchase price of approximately $169million. Accordingly, we have included the results of operations for PayCycle in our consolidated results of operations from the date of acquisition. These condensed consolidated financial statements also include the financial position, results of operations and cash flows of Superior Bankcard Services, LLC (SBS), an entity that acquires merchant accounts for our Innovative Merchant Solutions business. We are allocated 51% of the earnings and losses of this entity and 100% of the losses in excess of the noncontrolling interest capital balances. We therefore eliminate the portion of the SBS financial results that pertains to the noncontrolling interests in our statements of operations and on our balance sheets. The amounts eliminated were not material for any period presented. The operating agreement of SBS outlines a process for noncontrolling members and IMS to negotiate a buyout of the noncontrolling members interests. This process began in July 2009. If the parties are not able to reach agreement, the SBS operating agreement provides for a possible sale of SBS to a third party. See Note 7. We have included all adjustments, consisting only of normal recurring items, that we considered necessary for a fair presentation of our financial results for the interim periods presented. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended July31, 2009. Results for the three months ended October31, 2009 do not necessarily indicate the results we expect for the fiscal year ending July31, 2010 or any other future period. We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to reportable segments. We have evaluated subsequent events through the date and time these financial statements were issued on December4, 200 |
| Fair Value Measurements | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Fair Value Measurements [Abstract] | |
| Fair Value Measurements | 2. Fair Value Measurements The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. We measure and disclose the fair value of certain assets and liabilities on a recurring basis and other assets and liabilities on a non-recurring basis, as described below. The authoritative guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. 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 for similar assets or liabilities in active markets; 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. Level 3 uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. Assets and Liabilities Measured at Fair Value on a Recurring Basis Our cash equivalents, available-for-sale debt securities and long-term debt are measured at fair value on a recurring basis. We have classified these assets and liabilities in accordance with the fair value hierarchy. In instances where the inputs used to measure the fair value of an asset or liability fall into more than one level of the fair value hierarchy, we have classified them based on the lowest level input that is significant to the determination of the fair value. The following table presents financial assets and financial liabilities that we measured at fair value on a recurring basis at the date indicated. October 31, 2009 July 31, 2009 Total Total (In millions) Level 1 Level 2 Level 3 Fair Value Level 1 Level 2 Level 3 Fair Value Assets: Cash equivalents (1) $ 478 $ $ $ 478 $ 893 $ $ $ 893 Available-for-sale debt securities: Municipal bonds (2) 410 410 448 448 Corporate notes (2) 82 82 44 44 U.S. agency securities (2) |
| Cash and Cash Equivalents, Investments and Funds Held for Customers | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract] | |
| Cash and Cash Equivalents, Investments and Funds Held for Customers | 3. Cash and Cash Equivalents, Investments and Funds Held for Customers We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments consist of available-for-sale investment-grade debt securities and municipal auction rate securities that we carry at fair value. Funds held for customers consist of cash, AAA-rated money market funds and available-for-sale investment-grade debt securities. Long-term investments consist primarily of municipal auction rate securities that we carry at fair value. Due to a decrease in liquidity in the global credit markets, we estimate the fair values of our municipal auction rate securities based on a discounted cash flow model that we prepare. See Note 2 for more information. Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer. The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet classification at the dates indicated. October 31, 2009 July 31, 2009 (In millions) Cost Fair Value Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 313 $ 313 $ 679 $ 679 Investments 612 614 666 668 Funds held for customers 293 293 272 272 Long-term investments 92 92 97 97 Total cash and cash equivalents, investments and funds held for customers $ 1,310 $ 1,312 $ 1,714 $ 1,716 The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the dates indicated. October 31, 2009 July 31, 2009 (In millions) Cost Fair Value Cost Fair Value Type of issue: Total cash and cash equivalents $ 519 $ 519 $ 951 $ 951 Available-for-sale debt securities: Municipal bonds 409 410 447 448 Municipal auction rate securities 224 224 245 245 Corporate notes 81 82 43 44 U.S. agency securities 56 56 25 25 U.S. treasuries 18 18 Total available-for-sale debt securities 788 790 760 762 Other long-term investments 3 3 3 3 Total cash and cash equivalents, investments and funds held for customers $ 1,310 $ 1,312 $ 1,714 $ 1,716 We include realized gains and losses on our available-for-sale debt securities in interest and other income in our statements of operations. Gross realized gains and losses on our available-for-sale debt securit |
| Comprehensive Net Income (Loss) | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Comprehensive Net Income (Loss) [Abstract] | |
| Comprehensive Net Income (Loss) | 4. Comprehensive Net Income (Loss) We add components of other comprehensive income or loss, such as changes in the fair value of available-for-sale debt securities and foreign currency translation adjustments, to our net income or loss to arrive at comprehensive net income or loss. Other comprehensive income or loss items have no impact on our net income or loss as presented in our statements of operations. The components of comprehensive net loss, net of income taxes, were as shown in the following table for the periods indicated. Three Months Ended October 31, October 31, (In millions) 2009 2008 Net loss $ (68 ) $ (52 ) Components of other comprehensive loss: Changes in net unrealized gains (losses)on investments, net of reclassification adjustment for realized gains (losses), net of income taxes (1 ) Foreign currency translation adjustment, net of income taxes (6 ) Total other comprehensive loss, net of income taxes (7 ) Comprehensive net loss, net of income taxes $ (68 ) $ (59 ) Income tax benefit netted against other comprehensive loss $ $ (4 ) |
| Business Combinations | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Business Combinations [Abstract] | |
| Business Combinations | 5. Business Combinations PayCycle, Inc. On July23, 2009 we acquired all of the outstanding equity interests of PayCycle, Inc. for a total purchase price of approximately $169million, including the fair value of certain assumed stock options. PayCycle is a provider of online payroll solutions to small businesses and became part of our Employee Management Solutions segment. We acquired PayCycle to expand our online payroll offerings in support of our Connected Services strategy. Under the purchase method of accounting we allocated the total purchase price to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. We estimated the fair values with the assistance of a third party appraisal firm. The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. We recorded the excess of purchase price over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $5million of the purchase price to tangible assets and liabilities and approximately $42million of the purchase price to identified intangible assets. We recorded the excess purchase price of approximately $122million as goodwill, none of which is deductible for income tax purposes. We may adjust the preliminary purchase price allocation after obtaining more information about asset valuations and liabilities assumed. The identified intangible assets are being amortized over a weighted average life of seven years. We have included PayCycles results of operations in our consolidated results of operations from the date of acquisition. PayCycles results of operations for periods prior to the date of acquisition were not material when compared with our consolidated results of operations. |
| Current Liabilities | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Current Liabilities [Abstract] | |
| Current Liabilities | 6. Current Liabilities Unsecured Revolving Credit Facility On March22, 2007 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on March22, 2012. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either Citibanks base rate or the London InterBank Offered Rate (LIBOR)plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings. The applicable interest rate will be increased by 0.05% for any period in which the total principal amount of advances and letters of credit under the credit facility exceeds $250million. The agreement includes 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 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We were in compliance with these covenants at October31, 2009. We may use amounts borrowed under this credit facility for general corporate purposes or for future acquisitions or expansion of our business. To date we have not borrowed under this credit facility. Other Current Liabilities Other current liabilities were as follows at the dates indicated: October 31, July 31, (In millions) 2009 2009 Reserve for product returns $ 21 $ 22 Reserve for rebates 29 30 Interest payable 7 21 Executive deferred compensation plan 43 37 Current portion of license fee payable 10 10 Other 30 34 Total other current liabilities $ 140 $ 154 The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, Seasonality. |
| Long-Term Obligations | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Long-Term Obligations [Abstract] | |
| Long-Term Obligations | 7. Long-Term Obligations Senior Unsecured Notes On March12, 2007 we issued $500million of 5.40% senior unsecured notes due on March15, 2012 and $500million of 5.75% senior unsecured notes due on March15, 2017 (together, the Notes), for a total principal amount of $1billion. The Notes are redeemable by Intuit at any time, subject to a make-whole premium. We paid $28million in cash for interest on the Notes during the three months ended October31, 2009 and 2008. Based on the trading prices of the Notes at October31, 2009 and July31, 2009 and the interest rates we could obtain for other borrowings with similar terms at those dates, the estimated fair value of the Notes at those dates was approximately $1,046million and $1,001million. Other Long-Term Obligations Other long-term obligations were as follows at the dates indicated: October 31, July 31, (In millions) 2009 2009 Total license fee payable $ 72 $ 71 Total deferred rent 62 64 Long-term deferred revenue 19 20 Long-term income tax liabilities 27 48 Other 3 4 Total long-term obligations 183 207 Less current portion (included in other current liabilities) (19 ) (20 ) Long-term obligations due after one year $ 164 $ 187 Innovative Merchant Solutions Loan and Buyout Commitments In April2005 our wholly owned subsidiary, Innovative Merchant Solutions (IMS), became a member of Superior Bankcard Services, LLC (SBS), a newly formed entity that acquires merchant accounts for IMS. Our consolidated financial statements include the financial position, results of operations and cash flows of SBS, after elimination of all significant intercompany balances and transactions, including amounts outstanding under the credit agreement described below. See Note 1. In connection with the formation of this entity IMS agreed to provide to SBS revolving loans in an amount of up to $40million under the terms of a credit agreement. The credit agreement expires in July2013, although certain events, such as a sale of SBS, can trigger earlier termination. Amounts outstanding under this agreement at October31, 2009 totaled $7million at an interest rate of 4.3%. Amounts outstanding under this agreement at July31, 2009 totaled $7million at interest rates of 4.3% to 5.0%. There are no scheduled repayments on the outstanding loan balance. All unpaid principal amounts and the related accrued interest are due and payable in full at the loan expiration date. The operating agreement of SBS outlines a process for noncontrolling members and IMS to negotiate a buyout of the noncontrolling members interests. This process began in July 2009. If the parties are not able to reach agreement, the SBS operating agreement provides for a possible sale of SBS to a third party. |
| Income Taxes | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Income Taxes [Abstract] | |
| Income Taxes | 8. 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 other taxable items. Our effective tax benefit rate for the three months ended October31, 2009 was approximately 38%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal and state research and experimentation credits. Our effective tax benefit rate for the three months ended October31, 2008 was approximately 42%. Excluding net one-time benefits primarily related to the reinstatement of the federal research and experimentation credit, our effective tax benefit rate for that period was approximately 35% and did not differ significantly from the federal statutory rate of 35%. In October2008 changes in federal law resulted in the reinstatement of the federal research and experimentation credit through December31, 2009 that was retroactive to January1, 2008. Unrecognized Tax Benefits and Other Considerations The total amount of our unrecognized tax benefits at July31, 2009 was $40million. Net of related deferred tax assets, unrecognized tax benefits were $33million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $28 million. The recognition of the balance of these net benefits would result in an increase to stockholders equity of $5million. There were no material changes to these amounts during the three months ended October31, 2009. We do not believe that it is reasonably possible that there will be a significant increase or decrease in unrecognized tax benefits over the next 12months. |
| Stockholders' Equity | |
| 8/1/2009 - 10/31/2009
USD / shares | |
| Stockholders' Equity [Abstract] | |
| Stockholders' Equity | 9. Stockholders Equity Stock Repurchase Programs Intuits 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 10.6million and 6.0million shares for $300million and $165million under these programs during the three months ended October31, 2009 and 2008. At October31, 2009 we had expended all funds authorized by our Board of Directors for stock repurchases. On November19, 2009 we announced a new stock repurchase program under which we are authorized to repurchase up to an additional $600million of our common stock from time to time over a three-year period ending on November20, 2012. 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. Stock Option Activity A summary of activity under all share-based compensation plans for the three months ended October 31, 2009 was as follows: Options Outstanding Weighted Average Shares Exercise Available Number Price (Shares in thousands) for Grant of Shares Per Share Balance at July31, 2009 8,086 45,674 $ 26.00 Options granted (1,122 ) 1,122 30.02 Restricted stock units granted (794 ) Options exercised (2,758 ) 20.87 Options canceled or expired (1) 582 (630 ) 27.90 Restricted stock units forfeited (1) 480 Balance at October31, 2009 7,232 43,408 $ 26.40 Exercisable at October31, 2009 30,357 $ 25.52 (1) Stock options and restricted stock units canceled, expired or forfeited under expired plans are not returned to the pool of shares available for grant. Restricted Stock Unit Activity A summary of restricted stock unit activity for the three months ended October31, 2009 was as follows: Restricted Stock Units Weighted Average Number Grant Date (Shares in thousands) of Shares Fair Value Nonvested at July31, 2009 9,398 $ 27.06 Granted 794 29.84 Vested (1,566 ) 29.28 Forfeited (482 ) 26.53 Nonvested at October31, 2009 8,144 $ 26.94 Share-Based Compensation Expense The following table summarizes the total share-based compensation expense that we recorded for the periods shown. Three Months Ended October 31, October 31, (In millions, except per share amounts |
| Litigation | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Litigation [Abstract] | |
| Litigation | 10. Litigation Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that the ultimate amount of liability, if any, for any pending claims of any type (either alone or combined) will not materially affect our financial position, results of operations or cash flows. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect our business. |
| Segment Information | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Segment Information [Abstract] | |
| Segment Information | 11. Segment Information We have defined seven 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. Financial Management Solutions product revenue is derived primarily from QuickBooks desktop software products and financial supplies such as paper checks, envelopes, invoices, business cards and business stationery. Financial Management Solutions service and other revenue is derived primarily from QuickBooks Online, QuickBooks support plans, Web site design and hosting services for small and medium-sized businesses, and royalties from small business online services. Employee Management Solutions product revenue is derived primarily from QuickBooks Payroll, a family of products sold on a subscription basis offering payroll tax tables, federal and state payroll tax forms, and electronic tax payment and filing to small businesses that prepare their own payrolls. Employee Management Solutions service and other revenue is derived from small business payroll services. Service and other revenue for this segment also includes interest earned on funds held for customers. Payments Solutions service revenue is derived primarily from merchant services for small businesses that include credit card, debit card and gift card processing services; check verification, check guarantee and electronic check conversion, including automated clearing house (ACH)and Check21 capabilities; and Web-based transaction processing services for online merchants. Service and other revenue for this segment also includes interest earned on funds held for customers. Consumer Tax product revenue is derived primarily from TurboTax federal and state consumer and small business desktop tax return preparation software. Consumer Tax service and other revenue is derived primarily from TurboTax Online tax return preparation services and electronic tax filing services. Accounting Professionals product revenue is derived primarily from ProSeries and Lacerte professional tax preparation software products and from QuickBooks Premier Accountant Edition and ProAdvisor Program for professional accountants. Accounting Professionals service and other revenue is derived primarily from electronic tax filing services, bank product transmission services and training services. Financial Institutions service and other revenue is derived primarily from outsourced online banking software products that are hosted in our data centers and delivered as on-demand service offerings to banks and credit unions by our Digital Insight business. Other Businesses consist primarily of Quicken, Intuit Real Estate Solutions (IRES), and our business in Canada. Quicken product revenue is derived primarily from Quicken desktop software products. Quicken service and other revenue is derived primarily from Quicken Online and fees from consumer online transactions. I |
| Subsequent Events | |
| 3 Months Ended
Oct. 31, 2009 USD / shares | |
| Subsequent Events [Abstract] | |
| Subsequent Events | 12. Subsequent Events Acquisition of Mint Software Inc. On November2, 2009 we acquired all of the outstanding equity interests of Mint Software Inc. for total consideration of approximately $171million. The total consideration included about $26 million for the fair value of assumed equity awards and cash retention bonuses that will be charged to expense over a three year service period. Mint is a provider of online personal finance services and became part of our Other Businesses segment. We acquired Mint to expand our online personal finance offerings in support of our Connected Services strategy. We will include Mints results of operations in our consolidated results of operations from the date of acquisition. Mints results of operations for periods prior to the date of acquisition were not material when compared with our consolidated results of operations. Pending Disposition of Intuit Real Estate Solutions In November2009 the Acquisition Committee of our Board of Directors formally approved a plan to sell our Intuit Real Estate Solutions (IRES)business, which is part of our Other Businesses segment. On November23, 2009 we entered into a definitive agreement to sell IRES for approximately $128million in cash. The transaction is subject to regulatory approval and customary closing conditions and we expect it to close before the end of the second quarter of fiscal 2010. In accordance with authoritative guidance, we have determined that IRES became a discontinued operation in the second quarter of fiscal 2010. We will segregate the net assets and operating results of IRES from continuing operations on our balance sheets and in our statements of operations beginning in the second quarter of fiscal 2010. IRES had net assets of approximately $70 million at October31, 2009 and net revenue from IRES was $74million in fiscal 2009. |
