Segment Information

12 Months Ended

Jul. 31, 2014

Segment Reporting [Abstract]

Segment Information

Segment Information

We have defined three reportable segments, described below, based on factors such as how we manage our operations and how our chief operating decision maker views results. We define the chief operating decision maker as our Chief Executive Officer and our Chief Financial Officer. Our chief operating decision maker organizes and manages our business primarily on the basis of product and service offerings.

Small Business. Our Small Business segment includes the following offerings, all targeting the small business market.

• QuickBooks financial and business management online services and desktop software; QuickBooks technical support; and financial supplies.

• QuickBooks Accountant, QuickBooks Accountant Plus, and QuickBooks Online Accountant as well as the QuickBooks ProAdvisor Program and Cloud ProAdvisor Program, all of which are intended for the accounting professionals who serve small businesses.

• Small business payroll products and services, including online payroll offerings such as Quickbooks Online Payroll and Intuit Online Payroll; desktop payroll offerings such as QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; and full service payroll offerings such as Intuit Full Service Payroll and QuickBooks Assisted Payroll.

• Payment processing services for small businesses, including merchant services such as credit and debit card processing; Web-based transaction processing services for online merchants; secure online payments for small businesses and their customers through the Intuit Payment Network; GoPayment mobile payment processing services; and QuickBooks Point of Sale solutions.

• Demandforce, which provides online marketing and customer communication solutions for small businesses, and QuickBase.

Consumer. Our Consumer segment includes two product lines – Consumer Tax and Consumer Ecosystem – both of which target consumers.

• Consumer Tax includes TurboTax income tax preparation products and services and electronic tax filing services.

• Consumer Ecosystem includes our personal finance offerings, Quicken, Mint and Check.

Professional Tax. Our Professional Tax segment targets professional accountants and includes Lacerte, ProSeries, and Intuit Tax Online professional tax preparation products and services, electronic tax filing services, bank product transmission services, and training services.

All of our segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was approximately 5% of consolidated total net revenue for the twelve months ended July 31, 2014, 2013 and 2012.

We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses, which are not allocated to specific segments, in unallocated corporate items. Unallocated corporate items also include amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges.

The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies in Note 1. Except for goodwill and acquired intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets by reportable segment. See Note 5, "Goodwill and Acquired Intangible Assets," for goodwill by reportable segment.

The following table shows our financial results by reportable segment for the periods indicated. Results for all periods presented exclude results for our Intuit Financial Services, Intuit Health, and Intuit Websites businesses. See Note 7, “Discontinued Operations,” for more information.

	Twelve Months Ended July 31,
(In millions)	2014			2013			2012
Net revenue:
Small Business segment	$	2,253		$	2,057		$	1,779
Consumer segment:
Consumer Tax	1,663			1,552			1,488
Consumer Ecosystem	168			156			153
Total Consumer segment	1,831			1,708			1,641
Professional Tax segment	422			406			388
Total net revenue	$	4,506		$	4,171		$	3,808
Operating income from continuing operations:
Small Business segment	843			800			712
Consumer segment	1,139			1,035			965
Professional Tax segment	268			260			248
Total segment operating income	2,250			2,095			1,925
Unallocated corporate items:
Share-based compensation expense	(204		)	(184		)	(159		)
Other common expenses	(686		)	(625		)	(565		)
Amortization of acquired technology	(26		)	(18		)	(10		)
Amortization of other acquired intangible assets	(20		)	(35		)	(23		)
Total unallocated corporate items	(936		)	(862		)	(757		)
Total operating income from continuing operations	$	1,314		$	1,233		$	1,168