Segment Information

12 Months Ended

Jul. 31, 2016

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 and advise them.

• QuickBooks financial and business management online services and desktop software; QuickBooks technical support; financial supplies; and third-party applications that integrate with our offerings.

• QuickBooks Online Accountant, QuickBooks Accountant Desktop, and QuickBooks Desktop Accountant Plus, as well as the QuickBooks 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 QuickBooks Assisted Payroll and Intuit Full Service 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.

Consumer Tax. Our Consumer Tax segment targets consumers and includes TurboTax income tax preparation products and services and electronic tax filing services.

ProConnect. Our ProConnect segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and doing the nations’ taxes. Our ProConnect professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online, 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 5% of consolidated total net revenue for the twelve months ended July 31, 2016, 2015 and 2014.

We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses, which 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. Except for goodwill and acquired intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets by reportable segment. See Note 5, “Goodwill and Acquired Intangible Assets,” for goodwill 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 Demandforce, QuickBase, and Quicken businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2015. Results for all periods presented also exclude results for our Intuit Financial Services and Intuit Health businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2013. See Note 7, “Discontinued Operations,” for more information.

	Twelve Months Ended July 31,
(In millions)	2016			2015			2014
Net revenue:
Small Business	$	2,293		$	2,108		$	2,158
Consumer Tax	1,973			1,800			1,663
ProConnect	428			284			422
Total net revenue	$	4,694		$	4,192		$	4,243
Operating income from continuing operations:
Small Business	874			696			852
Consumer Tax	1,287			1,131			1,075
ProConnect	268			108			268
Total segment operating income	2,429			1,935			2,195
Unallocated corporate items:
Share-based compensation expense	(278		)	(242		)	(186		)
Other common expenses	(875		)	(765		)	(684		)
Amortization of acquired technology	(22		)	(30		)	(18		)
Amortization of other acquired intangible assets	(12		)	(12		)	(7		)
Goodwill and intangible asset impairment charges	—			(148		)	—
Total unallocated corporate items	(1,187		)	(1,197		)	(895		)
Total operating income from continuing operations	$	1,242		$	738		$	1,300