Stockholders' Equity

3 Months Ended

Oct. 31, 2011

Equity [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchase Programs

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 5.2 million shares for $255 million under these programs during the three months ended October 31, 2011 and 7.3 million shares for $330 million under these programs during the three months ended October 31, 2010. At October 31, 2011, we had authorization from our Board of Directors to expend up to an additional $385 million for stock repurchases through August 16, 2013 and $2 billion for stock repurchases through August 15, 2014.

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.

Dividends on Common Stock

During the three months ended October 31, 2011 we declared and paid a quarterly cash dividend of $0.15 per share that totaled approximately $45 million. In November 2011 our Board of Directors declared a quarterly cash dividend of $0.15 per share of outstanding common stock payable on January 18, 2012 to stockholders of record at the close of business on January 10, 2012. 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 for the periods shown.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2011			October 31, 2010
Cost of revenue	$	1		$	1
Selling and marketing	14			9
Research and development	12			13
General and administrative	13			12
Total share-based compensation expense	40			35
Income tax benefit	(13		)	(12		)
Increase in net loss	$	27		$	23
Increase in net loss per share:
Basic	$	0.09		$	0.07
Diluted	$	0.09		$	0.07

Stock Option Activity and Related Share-Based Compensation Expense

A summary of activity under all share-based compensation plans for the three months ended October 31, 2011 was as follows:

			Options Outstanding
(Shares in thousands)	Shares Available for Grant		Number of Shares		Weighted Average Exercise Price Per Share
Balance at July 31, 2011	30,716		22,679		$	32.38
Options granted	(157	)	157		45.32
Restricted stock units granted (2)	(648	)	—		—
Options exercised	—		(1,882	)	27.49
Options canceled or expired (1)	197		(199	)	35.98
Restricted stock units forfeited (1)(2)	590		—		—
Balance at October 31, 2011	30,698		20,755		$	32.89
Exercisable at October 31, 2011			13,190		$	29.17

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(1) Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

(2) Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 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.

At October 31, 2011, there was approximately $60 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.0 years.

Restricted Stock Unit Activity and Related Share-Based Compensation Expense

A summary of restricted stock unit activity for the three months ended October 31, 2011 was as follows:

	Restricted Stock Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at July 31, 2011	11,055		$	37.92
Granted	220		43.34
Vested	(1,415	)	32.77
Forfeited	(241	)	36.35
Nonvested at October 31, 2011	9,619		$	38.84

At October 31, 2011, there was approximately $208 million of unrecognized compensation cost related to non-vested RSUs and restricted stock that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.3 years.