Stockholders' Equity

3 Months Ended

Oct. 31, 2023

Equity [Abstract]

Stockholders' Equity

10. Stockholders’ Equity

Stock Repurchase Programs and Treasury Shares

Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. During the three months ended October 31, 2023, we repurchased a total of 1.2 million shares for $603 million under these programs. Included in this amount were $27 million of repurchases, which occurred in late October 2023 and settled in early November 2023. On August 22, 2023, our Board approved an increase in the authorization under the existing stock repurchase program under which we are authorized to repurchase up to an additional $2.3 billion of our common stock. At October 31, 2023, we had authorization from our Board of Directors for up to $3.2 billion in stock repurchases. Future stock repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.

Our treasury shares are repurchased at the market price on the trade date; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock on our condensed consolidated balance sheets. Any direct costs to acquire treasury stock are recorded to treasury stock on our condensed consolidated balance sheets. Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares, we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.

In the past, we have satisfied option exercises and restricted stock unit vesting under our employee equity incentive plans by reissuing treasury shares, and we may do so again in the future. During the second quarter of fiscal 2014, we began issuing new shares of common stock to satisfy option exercises and RSU vesting under our 2005 Equity Incentive Plan. We have not yet determined the ultimate disposition of the shares that we have repurchased in the past, and consequently we continue to hold them as treasury shares.

Dividends on Common Stock

During the three months ended October 31, 2023, we declared quarterly cash dividends that totaled $0.90 per share of outstanding common stock for a total of $261 million. In November 2023, our Board of Directors declared a quarterly cash dividend of $0.90 per share of outstanding common stock payable on January 18, 2024 to stockholders of record at the close of business on January 10, 2024. Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors.

Share-Based Compensation Expense

The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.

	Three Months Ended
(In millions)	October 31, 2023		October 31, 2022
Cost of revenue	$	101	$	86
Selling and marketing	123		106
Research and development	161		136
General and administrative	110		94
Total share-based compensation expense	$	495	$	422

Share-Based Awards Available for Grant

A summary of share-based awards available for grant under our plans for the three months ended October 31, 2023 was as follows:

(Shares in thousands)	Shares Available for Grant
Balance at July 31, 2023	19,026
Restricted stock units granted (1)	(717)
Options granted	—
Share-based awards canceled/forfeited/expired (1) (2)	2,114
Balance at October 31, 2023	20,423

(1)RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant under the 2005 Equity Incentive Plan increase the pool by 2.3 shares for each share forfeited.

(2)Stock options and RSUs canceled, expired, or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Under the 2005 Equity Incentive Plan, shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs canceled, expired, or forfeited under older expired plans are not returned to the pool of shares available for grant.

Restricted Stock Unit and Restricted Stock Activity

A summary of RSU and restricted stock activity for the three months ended October 31, 2023 was as follows:

(Shares in thousands)	Number of Shares	Weighted- Average Grant Date Fair Value
Nonvested at July 31, 2023	11,894	$	433.70
Granted	312	526.66
Vested	(908)	409.95
Forfeited	(456)	340.35
Nonvested at October 31, 2023	10,842	$	442.29

At October 31, 2023, there was approximately $4.3 billion of unrecognized compensation cost related to non-vested RSUs and restricted stock with a weighted-average vesting period of 2.8 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.

Stock Option Activity

A summary of stock option activity for the three months ended October 31, 2023 was as follows:

	Options Outstanding
(Shares in thousands)	Number of Shares	Weighted- Average Exercise Price Per Share
Balance at July 31, 2023	2,130	$	360.17
Granted	—	—
Exercised	(153)	255.01
Canceled or expired	(83)	464.52
Balance at October 31, 2023	1,894	$	364.05
Exercisable at October 31, 2023	1,109	$	288.97

At October 31, 2023, there was approximately $102 million of unrecognized compensation cost related to non-vested stock options with a weighted-average vesting period of 3.0 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.