Segment Information

9 Months Ended

Apr. 30, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

See Note 4, “Discontinued Operations,” for information about our Intuit Financial Services and Intuit Health businesses, which we classified as discontinued operations during fiscal 2013. Effective August 1, 2013, we reorganized our continuing businesses to align with our strategic focus on small businesses, consumers, and professional accountants. We also aligned our international businesses, all of which were in our former Other Businesses segment, into their respective lines of business and we are now managing those international businesses within their respective reportable segments. As a result of this reorganization, we have defined three 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 (CODM) as our Chief Executive Officer and our Chief Financial Officer. Our CODM organizes and manages our business primarily on the basis of product and service offerings. The CODM reviews revenue by reportable segment and by product line within each reportable segment, but reviews operating income or loss only at the reportable segment level.

Small Business. Our Small Business segment includes three main product lines – Small Business Financial Solutions, Small Business Management Solutions, and Accountant and Advisor – targeting the small business market.

• Our Small Business Financial Solutions product line includes QuickBooks financial and business management software and services; QuickBooks technical support; and financial supplies. This product line also includes several payment processing services for small businesses, including merchant services such as credit and debit card processing; Web-based transaction processing services for online merchants; GoPayment mobile payment processing services; QuickBooks Point of Sale solutions; and secure online payments for small businesses and their customers through the Intuit Payment Network.

• Our Small Business Management Solutions product line includes small business payroll products and services, including desktop payroll offerings such as QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; online payroll offerings such as Quickbooks Online Payroll and Intuit Online Payroll; and full service payroll offerings such as QuickBooks Assisted Payroll and Intuit Full Service Payroll. This product line also includes Demandforce, which provides online marketing and customer communication solutions, and QuickBase.

• Our Accountant and Advisor product line includes QuickBooks Accountant, QuickBooks Accountant Plus, and QuickBooks Online Accountant as well as the QuickBooks ProAdvisor Program and Cloud ProAdvisor Program, all of which are intended for the accounting professionals who serve small businesses.

Consumer. Our Consumer segment includes two product lines – Consumer Tax and Consumer Ecosystem – targeting consumers.

• Consumer Tax includes TurboTax income tax preparation products and services and electronic tax filing services.

• Consumer Ecosystem includes our personal finance offerings, Quicken and Mint.

Professional Tax. Our Professional Tax segment targets professional accountants and includes Lacerte, ProSeries, and Intuit Tax Online professional tax preparation products and services, electronic tax filing services, bank product transmission services, and training services.

All of our business 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, 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 acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies in Note 1 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2013. 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. Results for all periods presented have been adjusted to exclude results for our Intuit Websites, Intuit Financial Services, and Intuit Health businesses, which we have classified as discontinued operations for all periods presented. See Note 4, “Discontinued Operations,” for more information. Segment results for fiscal 2013 have also been reclassified to conform to the fiscal 2014 segment presentation, as described earlier in this footnote.

	Three Months Ended						Nine Months Ended
(In millions)	April 30, 2014			April 30, 2013			April 30, 2014			April 30, 2013
Net revenue:
Small Business segment:
Small Business Financial Solutions	$	347		$	336		$	1,003		$	950
Small Business Management Solutions	204			177			595			516
Accountant and Advisor	18			17			51			51
Total Small Business segment revenue	569			530			1,649			1,517
Consumer segment:
Consumer Tax	1,437			1,261			1,617			1,515
Consumer Ecosystem	48			47			132			124
Total Consumer segment revenue	1,485			1,308			1,749			1,639
Professional Tax segment revenue	334			253			394			381
Total net revenue	$	2,388		$	2,091		$	3,792		$	3,537
Operating income from continuing operations:
Small Business segment	$	224		$	223		$	611		$	578
Consumer segment	1,199			1,033			1,172			1,054
Professional Tax segment	294			215			276			270
Total segment operating income	1,717			1,471			2,059			1,902
Unallocated corporate items:
Share-based compensation expense	(49		)	(43		)	(148		)	(133		)
Other common expenses	(163		)	(134		)	(508		)	(441		)
Amortization of acquired technology	(6		)	(5		)	(18		)	(14		)
Amortization of other acquired intangible assets	(5		)	(7		)	(14		)	(21		)
Total unallocated corporate items	(223		)	(189		)	(688		)	(609		)
Total operating income from continuing operations	$	1,494		$	1,282		$	1,371		$	1,293