| Document and Company Information (USD $) | |||
| In Billions, except Share data | 6 Months Ended
Jan. 31, 2010 | Feb. 22, 2010
| 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 | 2010-01-31 | ||
| 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 | 313,918,834 |
| Condensed Consolidated Statements of Operations (Unaudited) (USD $) | ||||
| In Millions, except Per Share data | 3 Months Ended
Jan. 31, 2010 | 3 Months Ended
Jan. 31, 2009 | 6 Months Ended
Jan. 31, 2010 | 6 Months Ended
Jan. 31, 2009 |
| Net revenue: | ||||
| Product | $422 | $433 | $627 | $651 |
| Service and other | 415 | 340 | 684 | 584 |
| Total net revenue | 837 | 773 | 1,311 | 1,235 |
| Costs and expenses: | ||||
| Cost of product revenue | 48 | 56 | 83 | 88 |
| Cost of service and other revenue | 114 | 98 | 223 | 200 |
| Amortization of purchased intangible assets | 16 | 14 | 38 | 29 |
| Selling and marketing | 277 | 271 | 457 | 451 |
| Research and development | 144 | 140 | 285 | 274 |
| General and administrative | 88 | 70 | 165 | 134 |
| Acquisition-related charges | 11 | 13 | 21 | 23 |
| Total costs and expenses | 698 | 662 | 1,272 | 1,199 |
| Operating income from continuing operations | 139 | 111 | 39 | 36 |
| Interest expense | (15) | (12) | (31) | (24) |
| Interest and other income, net | 2 | 6 | 7 | 5 |
| Income from continuing operations before income taxes | 126 | 105 | 15 | 17 |
| Income tax provision (benefit) | 46 | 19 | 4 | (17) |
| Net income from continuing operations | 80 | 86 | 11 | 34 |
| Net income (loss) from discontinued operations | 34 | (1) | 35 | (1) |
| Net income | $114 | $85 | $46 | $33 |
| Basic net income per share from continuing operations | 0.25 | 0.27 | 0.04 | 0.1 |
| Basic net income (loss) per share from discontinued operations | 0.11 | $0 | 0.11 | $0 |
| Basic net income per share | 0.36 | 0.27 | 0.15 | 0.1 |
| Shares used in basic per share calculations | 314 | 321 | 317 | 322 |
| Diluted net income per share from continuing operations | 0.25 | 0.26 | 0.03 | 0.1 |
| Diluted net income (loss) per share from discontinued operations | 0.1 | $0 | 0.11 | $0 |
| Diluted net income per share | 0.35 | 0.26 | 0.14 | 0.1 |
| Shares used in diluted per share calculations | 323 | 326 | 326 | 329 |
| Condensed Consolidated Balance Sheets (Unaudited) (USD $) | ||
| In Millions | Jan. 31, 2010
| Jul. 31, 2009
|
| Assets: | ||
| Cash and cash equivalents | $337 | $679 |
| Investments | 609 | 668 |
| Accounts receivable, net | 468 | 135 |
| Income taxes receivable | 23 | 67 |
| Deferred income taxes | 80 | 92 |
| Prepaid expenses and other current assets | 86 | 43 |
| Current assets of discontinued operations | 0 | 12 |
| Current assets before funds held for customers | 1,603 | 1,696 |
| Funds held for customers | 313 | 272 |
| Total current assets | 1,916 | 1,968 |
| Long-term investments | 92 | 97 |
| Property and equipment, net | 518 | 527 |
| Goodwill | 1,853 | 1,754 |
| Purchased intangible assets, net | 269 | 291 |
| Long-term deferred income taxes | 43 | 36 |
| Other assets | 87 | 77 |
| Long-term assets of discontinued operations | 0 | 76 |
| Total assets | 4,778 | 4,826 |
| Liabilities: | ||
| Accounts payable | 159 | 103 |
| Accrued compensation and related liabilities | 135 | 171 |
| Deferred revenue | 511 | 360 |
| Income taxes payable | 2 | 0 |
| Other current liabilities | 234 | 153 |
| Current liabilities of discontinued operations | 0 | 25 |
| Current liabilities before customer fund deposits | 1,041 | 812 |
| Customer fund deposits | 313 | 272 |
| Total current liabilities | 1,354 | 1,084 |
| Long-term debt | 998 | 998 |
| Other long-term obligations | 170 | 187 |
| Total liabilities | 2,522 | 2,269 |
| Stockholders' equity: | ||
| Preferred stock | 0 | 0 |
| Common stock and additional paid-in capital | 2,599 | 2,547 |
| Treasury stock, at cost | (3,220) | (2,846) |
| Accumulated other comprehensive income | 8 | 7 |
| Retained earnings | 2,869 | 2,849 |
| Total stockholders' equity | 2,256 | 2,557 |
| Total liabilities and stockholders' equity | $4,778 | $4,826 |
| Consolidated Statements of Stockholders Equity (Unaudited) (USD $) | ||||||
| In Millions, except Share data in Thousands | Common Stock
| Common Stock and Additional Paid-In Capital
| Treasury Stock
| Accumulated Other Comprehensive Income (Loss)
| Retained Earnings
| Total
|
| Beginning Balance, shares at Jul. 31, 2008 | 322,600 | |||||
| Beginning Balance at Jul. 31, 2008 | $2,415 | ($2,787) | $8 | $2,444 | $2,080 | |
| Components of comprehensive net income: | ||||||
| Net income | 33 | 33 | ||||
| Other comprehensive income (loss), net of tax | (16) | (16) | ||||
| Issuance of common stock under employee stock plans | 106 | (11) | 95 | |||
| Issuance of common stock under employee stock plans, shares | 4,911 | |||||
| Restricted stock units released, net of taxes | (14) | 20 | (20) | (14) | ||
| Restricted stock units released, net of taxes, shares | 919 | |||||
| Stock repurchases under stock repurchase programs | (200) | (200) | ||||
| Stock repurchases under stock repurchase programs, shares | (7,383) | |||||
| Tax benefit from employee stock option transactions | 7 | 7 | ||||
| Share-based compensation | 57 | 57 | ||||
| Other | (6) | (6) | ||||
| Ending Balance at Jan. 31, 2009 | 2,459 | (2,861) | (8) | 2,446 | 2,036 | |
| Ending Balance, shares at Jan. 31, 2009 | 321,047 | |||||
| Components of comprehensive net income: | ||||||
| Beginning Balance, shares at Jul. 31, 2009 | 322,766 | |||||
| Beginning Balance at Jul. 31, 2009 | 2,547 | (2,846) | 7 | 2,849 | 2,557 | |
| Components of comprehensive net income: | ||||||
| Net income | 46 | 46 | ||||
| Other comprehensive income (loss), net of tax | 1 | 1 | ||||
| Issuance of common stock under employee stock plans | 2 | 150 | (2) | 150 | ||
| Issuance of common stock under employee stock plans, shares | 6,851 | |||||
| Restricted stock units released, net of taxes | (22) | 26 | (24) | (20) | ||
| Restricted stock units released, net of taxes, shares | 1,430 | |||||
| Stock repurchases under stock repurchase programs | (550) | (550) | ||||
| Stock repurchases under stock repurchase programs, shares | (18,814) | |||||
| Tax benefit from employee stock option transactions | 10 | 10 | ||||
| Share-based compensation | 65 | 65 | ||||
| Other | (3) | (3) | ||||
| Ending Balance at Jan. 31, 2010 | $2,599 | ($3,220) | $8 | $2,869 | $2,256 | |
| Ending Balance, shares at Jan. 31, 2010 | 312,233 |
| Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) | |||||||||||||||||||
| In Millions | 3 Months Ended
Jan. 31, 2010 | 3 Months Ended
Jan. 31, 2009 | 6 Months Ended
Jan. 31, 2010 | 6 Months Ended
Jan. 31, 2009 | |||||||||||||||
| Cash flows from operating activities: | |||||||||||||||||||
| Net income | $114 | $85 | $46 | $33 | |||||||||||||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||||
| Depreciation | 36 | 36 | 75 | 69 | |||||||||||||||
| Amortization of intangible assets | 32 | 30 | 68 | 57 | |||||||||||||||
| Share-based compensation | 38 | 35 | 65 | 57 | |||||||||||||||
| Pre-tax gain on sale of IRES (1) | (58) | [1] | 0 | [1] | (58) | [1] | 0 | [1] | |||||||||||
| Deferred income taxes | 2 | (1) | (22) | 44 | |||||||||||||||
| Tax benefit from share-based compensation plans | 4 | (4) | 10 | 7 | |||||||||||||||
| Excess tax benefit from share-based compensation plans | (2) | 0 | (5) | (6) | |||||||||||||||
| Other | 6 | 2 | 10 | 7 | |||||||||||||||
| Total adjustments | 58 | 98 | 143 | 235 | |||||||||||||||
| Changes in operating assets and liabilities: | |||||||||||||||||||
| Accounts receivable | (318) | (300) | (331) | (317) | |||||||||||||||
| Prepaid expenses, income taxes receivable and other assets | 51 | 7 | (5) | (114) | |||||||||||||||
| Accounts payable | 47 | (7) | 56 | 15 | |||||||||||||||
| Accrued compensation and related liabilities | 19 | 16 | (38) | (97) | |||||||||||||||
| Deferred revenue | 180 | 140 | 156 | 122 | |||||||||||||||
| Income taxes payable | 2 | 1 | 2 | (13) | |||||||||||||||
| Other liabilities | 92 | 103 | 76 | 79 | |||||||||||||||
| Total changes in operating assets and liabilities | 73 | (40) | (84) | (325) | |||||||||||||||
| Net cash provided by (used in) operating activities (1) | 245 | [1] | 143 | [1] | 105 | [1] | (57) | [1] | |||||||||||
| Cash flows from investing activities: | |||||||||||||||||||
| Purchases of available-for-sale debt securities | (162) | (31) | (550) | (67) | |||||||||||||||
| Sales of available-for-sale debt securities | 96 | 117 | 418 | 264 | |||||||||||||||
| Maturities of available-for-sale debt securities | 7 | 13 | 43 | 24 | |||||||||||||||
| Net change in funds held for customers' money market funds and other cash equivalents | 41 | 34 | 107 | 317 | |||||||||||||||
| Purchases of property and equipment | (34) | (50) | (66) | (117) | |||||||||||||||
| Net change in customer fund deposits | 20 | (34) | 41 | (317) | |||||||||||||||
| Acquisitions of businesses, net of cash acquired | (141) | 0 | (141) | 0 | |||||||||||||||
| Proceeds from divestiture of business | 122 | 0 | 122 | 0 | |||||||||||||||
| Other | (3) | 1 | (6) | 4 | |||||||||||||||
| Net cash provided by (used in) investing activities | (54) | 50 | (32) | 108 | |||||||||||||||
| Cash flows from financing activities: | |||||||||||||||||||
| Net proceeds from issuance of common stock under stock plans | 85 | 18 | 150 | 95 | |||||||||||||||
| Tax payments related to issuance of restricted stock units | (5) | (2) | (20) | (14) | |||||||||||||||
| Purchase of treasury stock | (250) | (35) | (550) | (200) | |||||||||||||||
| Excess tax benefit from share-based compensation plans | 2 | 0 | 5 | 6 | |||||||||||||||
| Other | 0 | (2) | (1) | (2) | |||||||||||||||
| Net cash used in financing activities | (168) | (21) | (416) | (115) | |||||||||||||||
| Effect of exchange rates on cash and cash equivalents | 1 | (2) | 1 | (10) | |||||||||||||||
| Net increase (decrease) in cash and cash equivalents | 24 | 170 | (342) | (74) | |||||||||||||||
| Cash and cash equivalents at beginning of period | 313 | 169 | 679 | 413 | |||||||||||||||
| Cash and cash equivalents at end of period | $337 | $339 | $337 | $339 | |||||||||||||||
| [1]Because the operating cash flows of our Intuit Real Estate Solutions (IRES) discontinued operations were not material for any period presented, we have not segregated them from continuing operations on these statements of cash flows. We have presented the effect of the gain on disposal of IRES on the statement of cash flows for the three and six months ended January 31, 2010. See Note 6. | |||||||||||||||||||
| Description of Business, Basis of Presentation and Summary of Significant Accounting Policies | |
| 6 Months Ended
Jan. 31, 2010 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 and in November2009 we acquired Mint Software Inc. for total consideration of approximately $170million. Accordingly, we have included the results of operations for PayCycle and Mint in our consolidated results of operations from their respective dates of acquisition. In January2010 we sold our Intuit Real Estate Solutions (IRES)business. Accordingly, we have reclassified our financial statements for all periods prior to the sale to reflect IRES as discontinued operations. Unless noted otherwise, discussions in these notes pertain to our continuing operations. 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 acquired merchant accounts for our Payment Solutions business. We were 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 eliminated the portion of the SBS financial results that pertained to the noncontrolling interests in our statements of operations and on our balance sheets. The amounts eliminated were not material for any period presented. On December7, 2009 we purchased all of the noncontrolling members interests in SBS for a total price of approximately $9million, net of loan repayments. See Note 8. 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 and six months ended January 31, 2010 do not necessarily indicate the results we expect for the fiscal year ending July31, 2010 or any other future period. We have reclassified cert |
| Fair Value Measurements | |
| 6 Months Ended
Jan. 31, 2010 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. January 31, 2010 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) $ 439 $ $ $ 439 $ 893 $ $ $ 893 Available-for-sale debt securities: Municipal bonds (2) 409 409 448 448 Corporate notes (2) 152 152 |
| Cash and Cash Equivalents, Investments and Funds Held for Customers | |
| 6 Months Ended
Jan. 31, 2010 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. January 31, 2010 July 31, 2009 (In millions) Cost Fair Value Cost Fair Value Classification on balance sheets: Cash and cash equivalents $ 337 $ 337 $ 679 $ 679 Investments 607 609 666 668 Funds held for customers 313 313 272 272 Long-term investments 92 92 97 97 Total cash and cash equivalents, investments and funds held for customers $ 1,349 $ 1,351 $ 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. January 31, 2010 July 31, 2009 (In millions) Cost Fair Value Cost Fair Value Type of issue: Total cash and cash equivalents $ 502 $ 502 $ 951 $ 951 Available-for-sale debt securities: Municipal bonds 408 409 447 448 Municipal auction rate securities 216 216 245 245 Corporate notes 151 152 43 44 U.S. agency securities 60 60 25 25 U.S. treasuries 9 9 Total available-for-sale debt securities 844 846 760 762 Other long-term investments 3 3 3 3 Total cash and cash equivalents, investments and funds held for customers $ 1,349 $ 1,351 $ 1,714 $ 1,716 We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securit |
| Comprehensive Net Income (Loss) | |
| 6 Months Ended
Jan. 31, 2010 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 income, net of income taxes, were as shown in the following table for the periods indicated. Three Months Ended Six Months Ended January 31, January 31, January 31, January 31, (In millions) 2010 2009 2010 2009 Net income $ 114 $ 85 $ 46 $ 33 Components of other comprehensive income (loss): Changes in net unrealized gains (losses)on investments, net of reclassification adjustment for realized gains (losses), net of income taxes (9 ) (10 ) Foreign currency translation adjustment, net of income taxes 1 1 (6 ) Total other comprehensive income (loss), net of income taxes 1 (9 ) 1 (16 ) Comprehensive net income, net of income taxes $ 115 $ 76 $ 47 $ 17 Income tax provision (benefit)netted against other comprehensive income (loss) $ $ (6 ) $ $ (10 ) |
| Business Combinations | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Business Combinations [Abstract] | |
| Business Combinations | 5. Business Combinations Mint Software Inc. On November2, 2009 we acquired all of the outstanding equity interests of Mint Software Inc. for total consideration of approximately $170million. The total consideration included approximately $24million 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. Under the acquisition method of accounting we allocated the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. We recorded the excess of consideration over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $1 million of the consideration to tangible assets and liabilities and approximately $43million of the consideration to identified intangible assets. We recorded the excess consideration of approximately $102million as goodwill, none of which is deductible for income tax purposes. The identified intangible assets are being amortized over a weighted average life of seven years. We have included 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. 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. 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 in |
| Discontinued Operations | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Discontinued Operations [Abstract] | |
| Discontinued Operations | 6. Discontinued Operations In January2010 we sold our Intuit Real Estate Solutions (IRES)business for approximately $128 million in cash and recorded a net gain on disposal of $35million. The decision to sell IRES was a result of managements desire to focus resources on Intuits core products and services. IRES was part of our Other Businesses segment. We determined that IRES became a discontinued operation in the second quarter of fiscal 2010. We have therefore segregated the net assets and operating results of IRES from continuing operations on our balance sheets and in our statements of operations for all periods prior to the sale. Assets held for sale at July31, 2009 consisted primarily of goodwill. Because IRES operating cash flows were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows. We have presented the effect of the net gain on disposal of IRES in net income from discontinued operations on our statements of cash flows for the three and six months ended January31, 2010. Net revenue and net income (loss)from IRES discontinued operations were as shown in the following table for the periods indicated. Three Months Ended Six Months Ended January 31, January 31, January 31, January 31, (In millions) 2010 2009 2010 2009 Net revenue from discontinued operations $ 14 $ 18 $ 33 $ 37 Net income (loss)from discontinued operations Net loss from discontinued operations $ (1 ) $ (1 ) $ $ (1 ) Net gain on disposal of discontinued operations 35 35 Total net income (loss)from discontinued operations $ 34 $ (1 ) $ 35 $ (1 ) |
| Current Liabilities | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Current Liabilities [Abstract] | |
| Current Liabilities | 7. 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 January31, 2010. 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: January 31, July 31, (In millions) 2010 2009 Reserve for product returns $ 79 $ 22 Reserve for rebates 44 30 Interest payable 21 21 Executive deferred compensation plan 40 37 Current portion of license fee payable 10 10 Other 40 33 Total other current liabilities $ 234 $ 153 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 | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Long-Term Obligations [Abstract] | |
| Long-Term Obligations | 8. 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 six months ended January31, 2010 and 2009. Based on the trading prices of the Notes at January31, 2010 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 $1.1billion and $1.0billion. Other Long-Term Obligations Other long-term obligations were as follows at the dates indicated: January 31, July 31, (In millions) 2010 2009 Total license fee payable $ 73 $ 71 Total deferred rent 60 64 Long-term deferred revenue 26 20 Long-term income tax liabilities 27 48 Other 3 4 Total long-term obligations 189 207 Less current portion (included in other current liabilities) (19 ) (20 ) Long-term obligations due after one year $ 170 $ 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 acquired merchant accounts for our Payment Solutions business. 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. 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. Amounts outstanding under this agreement at July31, 2009 totaled $7million at interest rates of 4.3% to 5.0%. On December7, 2009 we purchased all of the noncontrolling members interests in SBS for a total price of approximately $9million, net of loan repayments. |
| Income Taxes | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Income Taxes [Abstract] | |
| Income Taxes | 9. 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 rate for the three months ended January31, 2010 was approximately 37%. This differed from the federal statutory rate of 35% 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 rate for the three months ended January31, 2009 was approximately 18%. Excluding discrete tax benefits primarily related to a favorable agreement we entered into with a tax authority with respect to tax years ended prior to fiscal 2009, our effective tax rate for that period was approximately 36% and did not differ significantly from the federal statutory rate of 35%. Our effective tax rate for the six months ended January31, 2010 was approximately 27%. Excluding discrete tax benefits primarily related to routine stock option deduction benefits, our effective tax rate for that period was approximately 37%. 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. We recorded a tax benefit of $17million on pre-tax income of $17million for the six months ended January31, 2009. Excluding discrete tax benefits primarily related to a favorable agreement we entered into with a tax authority as described above and the retroactive reinstatement of the federal research and experimentation credit, our effective tax rate for that period was approximately 36% and did not differ significantly from the federal statutory rate of 35%. 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 and six months ended January31, 2010. 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 12 months. |
| Stockholders Equity | |
| 8/1/2009 - 1/31/2010
USD / shares | |
| Stockholders' Equity [Abstract] | |
| Stockholders' Equity | 10. 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 8.2million and 18.8million shares for $250million and $550million under these programs during the three and six months ended January31, 2010. We repurchased 1.4million and 7.4million shares for $35 million and $200million under these programs during the three and six months ended January31, 2009. At January31, 2010, we had authorization from our Board of Directors to expend up to an additional $350million for stock repurchases through 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 six months ended January31, 2010 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 Additional shares authorized 9,000 Options assumed and converted related to business combinations 372 3.08 Options granted (1,390 ) 1,390 30.04 Restricted stock units granted (994 ) Options exercised (6,300 ) 21.80 Options canceled or expired (1) 1,612 (1,864 ) 28.94 Restricted stock units forfeited (1) 815 Balance at January31, 2010 17,129 39,272 $ 26.46 Exercisable at January31, 2010 27,467 $ 25.75 (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 six months ended January31, 2010 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 994 29.92 Restricted stock granted related to business combinations 231 29.14 Vested (1,973 ) 29.39 Forfeited (818 ) 26.38 Nonvested at January31, 2010 7,832 $ 26.97 Share-Based Compensation Expense Th |
| Litigation | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Litigation [Abstract] | |
| Litigation | 11. 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 | |
| 6 Months Ended
Jan. 31, 2010 USD / shares | |
| Segment Information [Abstract] | |
| Segment Information | 12. Segment Information We have defined seven reportable segments 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. All of our business segments except Other Businesses operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was less than 5% of consolidated total net revenue for all periods presented. We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses that are not allocated to specific segments in unallocated corporate items. Unallocated corporate items also include amortization of purchased intangible assets and acquisition-related 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 Item8 of our Annual Report on Form 10-K for the fiscal year ended July31, 2009. 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 three and six months ended January31, 2010 and 2009. Results for our Other Businesses segment have been adjusted for all periods presented to exclude results for our Intuit Real Estate Solutions business, which became a discontinued operation in the second quarter of fiscal 2010. See Note 6. Three Months Ended Six Months Ended January 31, January 31, January 31, January 31, (In millions) 2010 2009 2010 2009 Net revenue: Financial Management Solutions $ 154 $ 158 $ 288 $ 302 Employee Management Solutions 105 94 202 183 Payment Solutions 79 70 154 141 Consumer Tax 216 187 238 201 Accounting Professionals 124 133 146 154 Financial Institutions 84 76 164 151 Other Businesses 75 55 119 103 Total net revenue $ 837 $ 773 $ 1,311 $ 1,235 Operating income: Financial Management Solutions $ 37 $ 38 $ 62 $ 67 Employee Management Solutions 61 52 117 106 Payment Solutions 22 7 35 12 Consumer Tax 88 59 59 25 Accounting Professionals 77 83 62 66 Financial Institutions 20 16 37 31 Other Businesses 22 14 25 23 Total segment operating income 327 269 397 |
