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 repaid the 2012 Notes when they became due using cash from operations. We carried the 2017 Notes at face value less the unamortized discount in long-term debt on our balance sheets at July 31, 2013 and July 31, 2012. The 2017 Notes are redeemable by Intuit at any time, subject to a make-whole premium, and 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 $29 million in cash for interest on the Notes during the twelve months ended July 31, 2013 and $56 million during each of the twelve months ended July 31, 2012 and July 31, 2011.

Other Long-Term Obligations

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



	July 31,
(In millions)	2013			2012
Total deferred rent	$	55		$	53
Total license fee payable	48			54
Long-term income tax liabilities	38			41
Long-term deferred revenue	32			32
Long-term deferred income tax liabilities	6			—
Other	7			5
Total long-term obligations	186			185
Less current portion (included in other current liabilities)	(19		)	(19		)
Long-term obligations due after one year	$	167		$	166

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 at inception 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.

Annual minimum commitments under operating leases and purchase obligations at July 31, 2013 were as shown in the table below. The table excludes facilities leases and purchase obligations assumed by the purchasers of our Intuit Financial Services and Intuit Health businesses. We classified these businesses as discontinued operations at July 31, 2013 and sold them in August 2013.



(In millions)	Operating Lease Commitments		Purchase Obligations
Fiscal year ending July 31,
2014	$	63	$	18
2015	58		18
2016	47		5
2017	45		1
2018	30		—
Thereafter	160		1
Total commitments	$	403	$	43

Rent expense for continuing operations totaled $53 million for the twelve months ended July 31, 2013, $47 million for the twelve months ended July 31, 2012, and $44 million for the twelve months ended July 31, 2011. Rent expense includes base contractual rent and contractual variable expenses such as building maintenance, utilities, property taxes and insurance.