Goodwill and Acquired Intangible Assets (Tables)

12 Months Ended

Jul. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying value of goodwill by reportable segment during the twelve months ended July 31, 2016 and July 31, 2015 were as shown in the following table. Our reportable segments are described in Note 14, “Segment Information.”



(In millions)	Balance July 31, 2014		Goodwill Acquired/ Adjusted			Goodwill Impairment Charges			Balance July 31, 2015		Goodwill Acquired/ Adjusted		Balance July 31, 2016
Small Business	$	1,213	$	58		$	(114	)	$	1,157	$	16	$	1,173
Consumer Tax	17		1			—			18		—		18
ProConnect	93		(2		)	—			91		—		91
Totals	$	1,323	$	57		$	(114	)	$	1,266	$	16	$	1,282

Schedule of acquired finite-lived intangible assets by major class

The following table shows the cost, accumulated amortization and weighted average life in years for our acquired intangible assets at the dates indicated. The weighted average lives are calculated for assets that are not fully amortized.



(Dollars in millions)	Customer Lists			Purchased Technology			Trade Names and Logos			Covenants Not to Compete or Sue			Total

At July 31, 2016:
Cost	$	241		$	369		$	23		$	32		$	665
Accumulated amortization	(240		)	(329		)	(23		)	(29		)	(621		)
Acquired intangible assets, net	$	1		$	40		$	—		$	3		$	44
Weighted average life in years	5			6			NA			9			6

At July 31, 2015:
Cost	$	243		$	371		$	24		$	32		$	670
Accumulated amortization	(239		)	(294		)	(23		)	(27		)	(583		)
Acquired intangible assets, net	$	4		$	77		$	1		$	5		$	87
Weighted average life in years	5			5			4			9			5

Schedule of finite-lived intangible assets, future amortization expense

The following table shows the expected future amortization expense for our acquired intangible assets at July 31, 2016. Amortization of purchased technology is charged to cost of service and other revenue and to amortization of acquired technology in our statements of operations. Amortization of other acquired intangible assets such as customer lists is charged to amortization of other acquired intangible assets in our statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.



(In millions)	Expected Future Amortization Expense

Twelve months ending July 31,
2017	$	21
2018	14
2019	6
2020	3
2021	—
Thereafter	—
Total expected future amortization expense	$	44