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 (the 2012 Notes) and $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the 2017 Notes) (together, the Notes), for a total principal amount of $1 billion. We transferred the 2012 Notes from long-term liabilities to current liabilities during fiscal 2011 and repaid them when they became due in March 2012 using cash from operations. The 2017 Notes are redeemable by Intuit at any time, subject to a make-whole premium. The 2017 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, 2012, 2011 and 2010.

The following table summarizes our senior unsecured notes at the dates indicated:



	July 31,
(In millions)	2012			2011
Senior notes:
5.40% fixed-rate notes, due 2012	$	—		$	500
5.75% fixed-rate notes, due 2017	500			500
Total senior notes	500			1,000
Unamortized discount	(1		)	(1		)
Total senior notes	$	499		$	999

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

Other Long-Term Obligations

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



	July 31,
(In millions)	2012			2011
Total license fee payable	$	54		$	60
Total deferred rent	53			52
Long-term deferred revenue	42			40
Long-term income tax liabilities	41			42
Other	5			13
Total long-term obligations	195			207
Less current portion (included in other current liabilities)	(19		)	(17		)
Long-term obligations due after one year	$	176		$	190

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, 2012, 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, 2012 were as shown in the table below.



(In millions)	Operating Lease Commitments		Purchase Obligations
Fiscal year ending July 31,
2013	$	57	$	89
2014	56		77
2015	53		53
2016	43		41
2017	44		37
Thereafter	174		—
Total commitments	$	427	$	297

Rent expense totaled $51 million for the twelve months ended July 31, 2012; $48 million for the twelve months ended July 31, 2011; and $43 million for the twelve months ended July 31, 2010. Rent expense includes base contractual rent and contractual variable expenses such as building maintenance, utilities, property taxes and insurance.