Segment Information

9 Months Ended

Apr. 30, 2015

Segment Reporting [Abstract]

Segment Information

Segment Information

We have defined 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. Our Small Business segment includes the following offerings, which target small businesses and the accounting professionals who serve them.

• QuickBooks financial and business management online services and desktop software; QuickBooks technical support; and financial supplies.

• 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.

• Small business payroll products and services, including online payroll offerings such as Quickbooks Online Payroll and Intuit Online Payroll; desktop payroll offerings such as QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; and full service payroll offerings such as Intuit Full Service Payroll and QuickBooks Assisted Payroll.

• Payment processing services for small businesses, including merchant services such as credit and debit card processing; Web-based transaction processing services for online merchants; secure online payments for small businesses and their customers through the Intuit Commerce Network; GoPayment mobile payment processing services; and QuickBooks Point of Sale solutions.

• Demandforce, which provides online marketing and customer communication solutions for small businesses, and QuickBase.

Consumer. Our Consumer segment includes two product lines – Consumer Tax and Consumer Ecosystem – both of which target consumers.

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

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

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 segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was less than 6% 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, 2014 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. Results for all periods presented exclude results for our Intuit Financial Services and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.

	Three Months Ended						Nine Months Ended
(In millions)	April 30, 2015			April 30, 2014			April 30, 2015			April 30, 2014
Net revenue:
Small Business segment	$	539		$	569		$	1,640		$	1,649
Consumer segment:
Consumer Tax	1,489			1,437			1,759			1,617
Consumer Ecosystem	36			48			98			132
Total Consumer segment	1,525			1,485			1,857			1,749
Professional Tax segment	130			334			177			394
Total net revenue	$	2,194		$	2,388		$	3,674		$	3,792
Operating income from continuing operations:
Small Business segment	$	162		$	224		$	526		$	611
Consumer segment	1,192			1,199			1,184			1,172
Professional Tax segment	83			294			43			276
Total segment operating income	1,437			1,717			1,753			2,059
Unallocated corporate items:
Share-based compensation expense	(62		)	(49		)	(184		)	(148		)
Other common expenses	(189		)	(163		)	(564		)	(508		)
Amortization of acquired technology	(11		)	(6		)	(30		)	(18		)
Amortization of other acquired intangible assets	(6		)	(5		)	(18		)	(14		)
Goodwill impairment charge	(263		)	—			(263		)	—
Total unallocated corporate items	(531		)	(223		)	(1,059		)	(688		)
Total operating income from continuing operations	$	906		$	1,494		$	694		$	1,371