Long-Term Obligations and Commitments

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.40% senior unsecured notes due on March 15, 2012 and $500 million of 5.75% senior unsecured notes due on March 15, 2017 (together, the Notes), for a total principal amount of $1 billion. Because their contractual maturities are now within one year, we transferred the March 2012 notes from long-term liabilities to current liabilities during fiscal 2011. The Notes are redeemable by Intuit at any time, subject to a make-whole premium. The Notes include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. We paid $56 million in cash for interest on the Notes during each of the twelve months ended July 31, 2011, 2010 and 2009.

The following table summarizes our senior unsecured notes:



	July 31,
(In millions)	2011			2010
Senior notes:
5.40% fixed-rate notes, due 2012	$	500		$	500
5.75% fixed-rate notes, due 2017	500			500
Total senior notes	1,000			1,000
Unamortized discount	(1		)	(2		)
Total senior notes	$	999		$	998

Reported as:
Current portion of long-term debt	$	500		$	—
Long-term debt	499			998
Total senior notes	$	999		$	998

Other Long-Term Obligations

Other long-term obligations were as follows at the dates indicated:



	July 31,
(In millions)	2011			2010
Total license fee payable	$	60		$	65
Total deferred rent	52			60
Long-term deferred revenue	40			29
Long-term income tax liabilities	42			20
Long-term payables	12			—
Other	1			3
Total long-term obligations	207			177
Less current portion (included in other current liabilities)	(17		)	(19		)
Long-term obligations due after one year	$	190		$	158

In May 2009 we entered into an agreement to license certain technology for $20 million in cash and $100 million payable over ten fiscal years. The total present value of the arrangement was approximately $89 million. The total license fee payable in the table above includes imputed interest through the dates indicated.

Operating Lease Commitments and Unconditional Purchase Obligations

We lease office facilities and equipment under non-cancellable operating lease arrangements. Our facilities leases generally provide for periodic rent increases and many contain escalation clauses and renewal options. The leases for our corporate headquarters campus in Mountain View, California expire in 2024 and 2026, with options to extend the lease terms for an additional ten years at rates to be determined in accordance with the agreements.

In the ordinary course of business we enter into certain unconditional purchase obligations with our suppliers. These are agreements to purchase products and services that are enforceable, legally binding, and specify terms that include fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the payments. At July 31, 2011, the largest of these commitments related to future outsourced electronic payment fulfillment and bill management services for our Financial Services segment.

Annual minimum commitments under operating leases and purchase obligations at July 31, 2011 were as shown in the table below.



(In millions)	Operating Lease Commitments		Purchase Obligations
Fiscal year ending July 31,
2012	$	52	$	78
2013	46		48
2014	45		44
2015	43		40
2016	43		40
Thereafter	215		37
Total operating lease commitments	$	444	$	287

Rent expense totaled $48 million for the twelve months ended July 31, 2011; $43 million for the twelve months ended July 31, 2010; and $44 million for the twelve months ended July 31, 2009. Rent expense includes base contractual rent and contractual variable expenses such as building maintenance, utilities, property taxes and insurance.