Discontinued Operations

Demandforce, QuickBase, and Quicken

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. On February 1, 2016 we completed the sale of our Demandforce business. On April 1, 2016 we completed the sales of our QuickBase and Quicken businesses. We received $463 million in cash and recorded a pre-tax gain of $354 million and a net gain of $173 million on the disposal of these three businesses in fiscal 2016. The decision to sell these businesses was a result of management’s desire to focus resources on our core small business and tax strategy. Demandforce and QuickBase were part of our Small Business segment and Quicken was part of our former Consumer segment.

We determined that our Demandforce, QuickBase, and Quicken 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 value of these three businesses at July 31, 2015 was less than the estimated fair value less cost to sell, no adjustments to the carrying values of these long-lived assets were necessary.

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 for all periods presented. We have also segregated the net assets of these businesses from continuing operations on our balance sheet at July 31, 2015. Because the cash flows of these businesses were not material for any period presented, we have not segregated them on our statements of cash flows.

See the table later in this Note 7 for more information on the operating results of Demandforce, QuickBase, and Quicken. The carrying amounts of the major classes of assets and liabilities of Demandforce, QuickBase, and Quicken at July 31, 2015 are shown in the following table.



	July 31,
(In millions)	2015
Accounts receivable	$	19
Deferred income taxes	5
Prepaid and other current assets	2
Property and equipment, net	25
Goodwill	165
Purchased intangible assets, net	43
Other assets	2
Total assets	261

Accounts payable	7
Accrued compensation	21
Deferred revenue	48
Other current liabilities	17
Long-term deferred revenue	39
Long-term obligations	29
Total liabilities	161
Net assets	$	100

Intuit Financial Services

On July 1, 2013 we signed a definitive agreement to sell our Intuit Financial Services (IFS) business and on August 1, 2013 we completed the sale for approximately $1.025 billion in cash. We recorded a $44 million pre-tax gain on the disposal of IFS that was partially offset by a related income tax provision of approximately $8 million, resulting in a net gain on disposal of approximately $36 million in the first quarter of fiscal 2014. The decision to sell the IFS business was a result of management’s desire to focus resources on our offerings for small businesses, consumers, and accounting professionals. The IFS business comprised substantially all of our former Financial Services reportable segment.

We determined that our IFS business became a long-lived asset held for sale in the fourth quarter of fiscal 2013. 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 value of IFS at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary.

We also classified our IFS business as discontinued operations in the fourth quarter of fiscal 2013 and have therefore segregated its operating results from continuing operations in our statements of operations for all periods presented. See the table later in this Note for more information. Because operating cash flows from the IFS business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Intuit Health

In July 2013 management having the authority to do so formally approved a plan to sell our Intuit Health business and on August 19, 2013 we completed the sale for cash consideration that was not significant. We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014. The decision to sell the Intuit Health business was a result of management’s desire to focus resources on our offerings for small businesses, consumers, and accounting professionals. Intuit Health was part of our former Other Businesses reportable segment.

We determined that our Intuit Health business became a long-lived asset held for sale in the fourth quarter of fiscal 2013. 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 value of Intuit Health at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary.

We also classified our Intuit Health business as discontinued operations in the fourth quarter of fiscal 2013 and have segregated its operating results in our statements of operations for all periods presented. See the table later in this Note for more information. Because operating cash flows from the Intuit Health business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Net Income (Loss) from Discontinued Operations

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:



	Twelve Months Ended July 31,
(In millions)	2016			2015			2014
Net revenue from discontinued operations:
Intuit Financial Services	$	—		$	—		$	—
Intuit Health	—			—			1
Demandforce	49			115			107
QuickBase	54			70			57
Quicken	34			51			98
Total net revenue from discontinued operations	$	137		$	236		$	263

Income (loss) from discontinued operations before income taxes:
Intuit Financial Services	$	—		$	—		$	—
Intuit Health	—			—			(1		)
Demandforce	(10		)	(63		)	(51		)
QuickBase	10			11			7
Quicken	(2		)	(136		)	57
Total income (loss) from discontinued operations before income taxes	$	(2	)	$	(188	)	$	12

Net income (loss) from discontinued operations:
Net income from Intuit Financial Services operations	$	—		$	—		$	—
Net gain on disposal of Intuit Financial Services discontinued operations	—			—			36
Net loss from Intuit Health operations	—			—			—
Net gain on disposal of Intuit Health discontinued operations	—			—			10
Net loss from Demandforce operations	(6		)	(39		)	(30		)
Net income from QuickBase operations	6			7			4
Net income (loss) from Quicken operations	—			(140		)	34
Net gain on disposal of Demandforce, QuickBase, and Quicken	173			124			—
Total net income (loss) from discontinued operations	$	173		$	(48	)	$	54

The net gain on disposal of Demandforce, QuickBase, and Quicken for the twelve months ended July 31, 2015 was comprised of tax benefits from the anticipated sales of those businesses. See Note 10, “Income Taxes,” for more information.