Discontinued Operations

3 Months Ended

Oct. 31, 2015

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

In the fourth quarter of fiscal 2015 management having the authority to do so formally approved a plan to sell our Demandforce, QuickBase, and Quicken businesses. The decision was a result of management’s desire to focus resources on our core small business and tax strategies. We determined that these businesses became long-lived assets held for sale in the fourth quarter of fiscal 2015. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying values of these three businesses at October 31, 2015 and July 31, 2015 were less than the estimated fair values less cost to sell, no adjustments to the carrying values of these long-lived assets were necessary at those dates.

We also classified our Demandforce, QuickBase, and Quicken businesses as discontinued operations in the fourth quarter of fiscal 2015 and have therefore segregated their operating results from continuing operations in our statements of operations and on our balance sheets for all periods presented. Because the cash flows of these businesses were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows. Demandforce and QuickBase were part of our Small Business segment and Quicken was part of our former Consumer segment.

The carrying amounts of the major classes of assets and liabilities of Demandforce, QuickBase, and Quicken at October 31, 2015 and July 31, 2015 were as shown in the following table.

(In millions)	October 31, 2015		July 31, 2015
Accounts receivable	$	14	$	19
Deferred income taxes	—		5
Prepaid and other current assets	3		2
Property and equipment, net	18		25
Goodwill	156		165
Purchased intangible assets, net	43		43
Other assets	2		2
Total assets	236		261
Accounts payable	7		7
Accrued compensation	13		21
Deferred revenue	45		48
Other current liabilities	8		17
Long-term deferred revenue	38		39
Long-term obligations	16		29
Total liabilities	127		161
Net assets	$	109	$	100

Net revenue from discontinued operations, income or loss from discontinued operations before income taxes, and the components of net income (loss) from discontinued operations were as follows for the periods indicated:

	Three Months Ended
(In millions)	October 31, 2015			October 31, 2014
Net revenue from discontinued operations:
Demandforce	$	25		$	31
QuickBase	20			17
Quicken	14			13
Total net revenue from discontinued operations	$	59		$	61
Income (loss) from discontinued operations before income taxes:
Demandforce	$	(4	)	$	(14	)
QuickBase	4			3
Quicken	4			6
Total income (loss) from discontinued operations before income taxes	$	4		$	(5	)
Net income (loss) from discontinued operations:
Net loss from Demandforce operations	$	(3	)	$	(9	)
Net income from QuickBase operations	3			2
Net income from Quicken operations	3			4
Tax expense from discontinued operations	(3		)	—
Total net loss from discontinued operations	$	—		$	(3	)