10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

________________________________________

FORM 10-Q

þ	Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the quarterly period ended October 31, 2014

OR

o	Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
	For the transition period from ____________ to ____________ .

Commission File Number 0-21180

INTUIT INC.

(Exact name of registrant as specified in its charter)

Delaware (State of incorporation)		77-0034661 (IRS employer identification no.)
	2700 Coast Avenue, Mountain View, CA 94043 (Address of principal executive offices)
	(650) 944-6000 (Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 285,496,420shares of Common Stock, $0.01 par value, were outstanding at November 14, 2014.

INTUIT INC.

FORM 10-Q

INDEX

	Page Number
PART I FINANCIAL INFORMATION
ITEM 1: Financial Statements (Unaudited)
Condensed Consolidated Statements of Operations for the three months ended October 31, 2014 and 2013	3
Condensed Consolidated Statements of Comprehensive Loss for the three months ended October 31, 2014 and 2013	4
Condensed Consolidated Balance Sheets at October 31, 2014 and July 31, 2014	5
Condensed Consolidated Statements of Stockholders’ Equity for the three months ended October 31, 2014 and 2013	6
Condensed Consolidated Statements of Cash Flows for the three months ended October 31, 2014 and 2013	7
Notes to Condensed Consolidated Financial Statements	8
ITEM 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
ITEM 3: Quantitative and Qualitative Disclosures about Market Risk	32
ITEM 4: Controls and Procedures	33
PART II OTHER INFORMATION
ITEM 1: Legal Proceedings	34
ITEM 1A: Risk Factors	34
ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds	45
ITEM 6: Exhibits	45
Signatures	46
EX-10.01
EX-31.01
EX-31.02
EX-32.01
EX-32.02
EX-101.INS XBRL Instance Document
EX-101.SCH XBRL Taxonomy Extension Schema
EX-101.CAL XBRL Taxonomy Extension Calculation Linkbase
EX-101.LAB XBRL Taxonomy Extension Label Linkbase
EX-101.PRE XBRL Taxonomy Extension Presentation Linkbase
EX-101.DEF XBRL Taxonomy Extension Definition Linkbase

Intuit, the Intuit logo, QuickBooks, TurboTax, Lacerte, ProSeries, Quicken, and Mint, among others, are registered trademarks and/or registered service marks of Intuit Inc., or one of its subsidiaries, in the United States and other countries. Other parties’ marks are the property of their respective owners.

2

PART I

ITEM 1

FINANCIAL STATEMENTS

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Net revenue:
Product	$	233		$	229
Service and other	439			393
Total net revenue	672			622
Costs and expenses:
Cost of revenue:
Cost of product revenue	34			29
Cost of service and other revenue	131			108
Amortization of acquired technology	10			6
Selling and marketing	281			258
Research and development	200			176
General and administrative	124			118
Amortization of other acquired intangible assets	6			4
Total costs and expenses	786			699
Operating loss from continuing operations	(114		)	(77		)
Interest expense	(7		)	(8		)
Interest and other income, net	—			5
Loss before income taxes	(121		)	(80		)
Income tax benefit	(37		)	(23		)
Net loss from continuing operations	(84		)	(57		)
Net income from discontinued operations	—			46
Net loss	$	(84	)	$	(11	)
Basic net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Basic net income per share from discontinued operations	—			0.16
Basic net loss per share	$	(0.29	)	$	(0.04	)
Shares used in basic per share calculations	286			288
Diluted net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Diluted net income per share from discontinued operations	—			0.16
Diluted net loss per share	$	(0.29	)	$	(0.04	)
Shares used in diluted per share calculations	286			288
Dividends declared per common share	$	0.25		$	0.19

See accompanying notes.

3

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS

(Unaudited)

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Net loss	$	(84	)	$	(11	)
Other comprehensive income (loss), net of income taxes:
Unrealized gains on available-for-sale debt securities	—			2
Unrealized losses on available-for-sale equity securities	—			(1		)
Foreign currency translation losses	(5		)	(2		)
Total other comprehensive loss, net	(5		)	(1		)
Comprehensive loss	$	(89	)	$	(12	)

See accompanying notes.

4

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions)	October 31, 2014			July 31, 2014
ASSETS
Current assets:
Cash and cash equivalents	$	542		$	849
Investments	1,047			1,065
Accounts receivable, net	140			134
Income taxes receivable	91			35
Deferred income taxes	140			133
Prepaid expenses and other current assets	119			116
Current assets before funds held for customers	2,079			2,332
Funds held for customers	358			289
Total current assets	2,437			2,621
Long-term investments	31			31
Property and equipment, net	629			606
Goodwill	1,639			1,635
Acquired intangible assets, net	186			199
Other assets	116			109
Total assets	$	5,038		$	5,201
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	198		$	161
Accrued compensation and related liabilities	139			278
Deferred revenue	511			526
Other current liabilities	154			167
Current liabilities before customer fund deposits	1,002			1,132
Customer fund deposits	358			289
Total current liabilities	1,360			1,421
Long-term debt	499			499
Long-term deferred revenue	52			10
Other long-term obligations	200			193
Total liabilities	2,111			2,123
Commitments and contingencies
Stockholders’ equity:
Preferred stock	—			—
Common stock and additional paid-in capital	3,687			3,561
Treasury stock, at cost	(6,544		)	(6,430		)
Accumulated other comprehensive loss	(7		)	(2		)
Retained earnings	5,791			5,949
Total stockholders’ equity	2,927			3,078
Total liabilities and stockholders’ equity	$	5,038		$	5,201

See accompanying notes.

5

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

(In millions, except shares in thousands)	Shares of Common Stock		Common Stock and Additional Paid-In Capital		Treasury Stock			Accumulated Other Comprehensive Loss			Retained Earnings			Total Stockholders' Equity
Balance at July 31, 2014	284,950		$	3,561	$	(6,430	)	$	(2	)	$	5,949		$	3,078
Comprehensive loss	—		—		—			(5		)	(84		)	(89		)
Issuance of stock under employee stock plans	1,787		47		—			—			—			47
Stock repurchases under stock repurchase programs	(1,318	)	—		(114		)	—			—			(114		)
Cash dividends declared ($0.25 per share)	—		—		—			—			(74		)	(74		)
Tax benefit from share-based compensation plans	—		18		—			—			—			18
Share-based compensation expense	—		61		—			—			—			61
Balance at October 31, 2014	285,419		$	3,687	$	(6,544	)	$	(7	)	$	5,791		$	2,927

(In millions, except shares in thousands)	Shares of Common Stock		Common Stock and Additional Paid-In Capital			Treasury Stock			Accumulated Other Comprehensive Income			Retained Earnings			Total Stockholders' Equity
Balance at July 31, 2013	299,503		$	3,201		$	(4,952	)	$	20		$	5,262		$	3,531
Comprehensive loss	—		—			—			(1		)	(11		)	(12		)
Issuance of treasury stock under employee stock plans	2,801		(6		)	86			—			—			80
Stock repurchases under stock repurchase programs	(17,607	)	(280		)	(1,120		)	—			—			(1,400		)
Cash dividends declared ($0.19 per share)	—		—			—			—			(55		)	(55		)
Tax benefit from share-based compensation plans	—		33			—			—			—			33
Share-based compensation expense	—		47			—			—			—			47
Balance at October 31, 2013	284,697		$	2,995		$	(5,986	)	$	19		$	5,196		$	2,224

See accompanying notes.

6

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Cash flows from operating activities:
Net loss	$	(84	)	$	(11	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	36			39
Amortization of acquired intangible assets	18			11
Share-based compensation expense	61			47
Pre-tax gain on sale of discontinued operations	—			(40		)
Deferred income taxes	(6		)	77
Tax benefit from share-based compensation plans	18			33
Excess tax benefit from share-based compensation plans	(18		)	(33		)
Other	12			5
Total adjustments	121			139
Changes in operating assets and liabilities:
Accounts receivable	(4		)	(11		)
Income taxes receivable	(56		)	(143		)
Prepaid expenses and other assets	(3		)	(44		)
Accounts payable	32			32
Accrued compensation and related liabilities	(139		)	(103		)
Deferred revenue	28			(29		)
Other liabilities	(13		)	(20		)
Total changes in operating assets and liabilities	(155		)	(318		)
Net cash used in operating activities	(118		)	(190		)
Cash flows from investing activities:
Purchases of available-for-sale debt securities	(365		)	(163		)
Sales of available-for-sale debt securities	147			71
Maturities of available-for-sale debt securities	229			79
Net change in money market funds and other cash equivalents held  to satisfy customer fund obligations	(69		)	7
Net change in customer fund deposits	69			(7		)
Purchases of property and equipment	(55		)	(47		)
Acquisitions of businesses, net of cash acquired	(9		)	(9		)
Proceeds from divestiture of businesses	—			1,025
Other	(8		)	(7		)
Net cash provided by (used in) investing activities	(61		)	949
Cash flows from financing activities:
Net proceeds from issuance of stock under employee stock plans	47			72
Purchases of treasury stock	(114		)	(1,400		)
Cash dividends paid to stockholders	(74		)	(55		)
Excess tax benefit from share-based compensation plans	18			33
Net cash used in financing activities	(123		)	(1,350		)
Effect of exchange rates on cash and cash equivalents	(5		)	(1		)
Net decrease in cash and cash equivalents	(307		)	(592		)
Cash and cash equivalents at beginning of period	849			1,009
Cash and cash equivalents at end of period	$	542		$	417

See accompanying notes.

7

INTUIT INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals. With flagship products and services that include QuickBooks, TurboTax, Quicken and Mint, we help customers solve important business and financial management problems such as running a small business, paying bills, filing income tax returns, and managing personal finances. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented.

On June 16, 2014 we acquired Check Inc. We have included the results of operations for this company in our consolidated results of operations from the date of acquisition.

As discussed in Note 4, we sold our Intuit Financial Services (IFS) and Intuit Health businesses in August 2013. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. Results for the three months ended October 31, 2014 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2015 or any other future period.

Seasonality

Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels.

Significant Accounting Policies

We describe our significant accounting policies in Note 1 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. See the discussion of changes to our policy for recognizing product revenue below. There have been no other changes to our significant accounting policies during the first three months of fiscal 2015.

Revenue Recognition - Product Revenue

Prior to fiscal 2015, we recognized revenue from the sale of our packaged software products when legal title transferred. This was generally when our customers downloaded products from the Web, when we shipped the products or, in the case of certain agreements, when products were delivered to retailers. Beginning in fiscal 2015, we began delivering ongoing releases for our future QuickBooks and Quicken desktop products and for our future Professional Tax solutions. As a result, revenue for these QuickBooks and Quicken offerings will be recognized as services are provided over approximately three years and revenue for our Professional Tax solutions will be recognized as services are provided over the tax year.

8

Use of Estimates

In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of reserves for product returns and rebates, the collectibility of accounts receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

All of the RSUs we grant have dividend rights. Since the dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per share.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

9

The following table presents the composition of shares used in the computation of basic and diluted net loss per share for the periods indicated.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Numerator:
Net loss from continuing operations	$	(84	)	$	(57	)
Net income from discontinued operations	—			46
Net loss	$	(84	)	$	(11	)
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding	286			288
Shares used in diluted per share amounts:
Weighted average common shares outstanding	286			288
Dilutive common equivalent shares from stock options
and restricted stock awards	—			—
Dilutive weighted average common shares outstanding	286			288
Basic and diluted net loss per share:
Basic net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Basic net income per share from discontinued operations	—			0.16
Basic net loss per share	$	(0.29	)	$	(0.04	)
Diluted net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Diluted net income per share from discontinued operations	—			0.16
Diluted net loss per share	$	(0.29	)	$	(0.04	)
Shares excluded from computation of diluted net loss per share:
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period	16			17
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect	2			3

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three months ended October 31, 2014 or October 31, 2013. No customer accounted for 10% or more of gross accounts receivable at October 31, 2014 or July 31, 2014.

Recent Accounting Pronouncements

ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”

In April 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures for discontinued operations and disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those

10

years, beginning after December 15, 2014, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2015.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”

In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than is required under present U.S. GAAP. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is not permitted under U.S. GAAP. ASU 2014-09 allows adoption using either of two methods: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.

2. Fair Value Measurements

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.

The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:

• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.

• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.

• Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

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Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Assets:
Cash equivalents, primarily money market funds	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale debt securities:
Municipal bonds	—		647		—		647		—		701		—		701
Corporate notes	—		565		—		565		—		466		—		466
U.S. agency securities	—		10		—		10		—		42		—		42
Municipal auction rate securities	—		—		21		21		—		—		21		21
Total available-for-sale securities	—		1,222		21		1,243		—		1,209		21		1,230
Total assets measured at fair value on a recurring basis	$	431	$	1,222	$	21	$	1,674	$	652	$	1,209	$	21	$	1,882
Liabilities:
Senior notes (1)	$	—	$	550	$	—	$	550	$	—	$	556	$	—	$	556

______________________________

(1) Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Cash equivalents:
In cash and cash equivalents	$	248	$	—	$	—	$	248	$	507	$	—	$	—	$	507
In funds held for customers	183		—		—		183		145		—		—		145
Total cash equivalents	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale securities:
In investments	$	—	$	1,047	$	—	$	1,047	$	—	$	1,065	$	—	$	1,065
In funds held for customers	—		175		—		175		—		144		—		144
In long-term investments	—		—		21		21		—		—		21		21
Total available-for-sale securities	$	—	$	1,222	$	21	$	1,243	$	—	$	1,209	$	21	$	1,230

We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes, and U.S. agency securities. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Our fair value processes include controls that are designed to ensure that we record appropriate fair values for our Level 2 investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of pricing sources and models, review of key model inputs, analysis of period-over-period price fluctuations, and independent recalculation of prices where appropriate.

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Financial liabilities whose fair values we measure using Level 2 inputs consist of debt. See Note 6, “Long-Term Obligations,” for more information. We measure the fair value of our senior notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms.

Financial assets whose fair values we measure using significant unobservable (Level 3) inputs consist of municipal auction rate securities that are no longer liquid. We estimate the fair values of these auction rate securities using a discounted cash flow model. We continue to classify them as long-term investments based on the maturities of the underlying securities at that date. We do not intend to sell our municipal auction rate securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.

There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the three months ended October 31, 2014.

3. Cash and Cash Equivalents, Investments and Funds Held for Customers

We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments at October 31, 2014 consist of available-for-sale investment-grade debt securities that we carry at fair value. Funds held for customers consist of cash and cash equivalents and investment grade available-for-sale debt securities in all periods presented. Long-term investments at October 31, 2014 consist primarily of municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments in debt securities by limiting our holdings with any individual issuer.

The following table summarizes our cash and cash equivalents, investments, and funds held for customers by balance sheet classification at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	542	$	542	$	849	$	849
Investments	1,046		1,047		1,064		1,065
Funds held for customers	358		358		289		289
Long-term investments	31		31		31		31
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

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The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. See Note 2, “Fair Value Measurements,” for more information on our municipal auction rate securities.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	725	$	725	$	994	$	994
Available-for-sale debt securities:
Municipal bonds	647		647		700		701
Corporate notes	564		565		466		466
U.S. agency securities	10		10		42		42
Municipal auction rate securities	21		21		21		21
Total available-for-sale debt securities	1,242		1,243		1,229		1,230
Other long-term investments	10		10		10		10
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2014 and October 31, 2013 were not significant.

We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income or loss in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at October 31, 2014 and July 31, 2014 were not significant.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at October 31, 2014 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at October 31, 2014 were not significant and were due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.

The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	399	$	399	$	363	$	363
Due within two years	471		472		443		443
Due within three years	292		292		303		303
Due after three years	80		80		120		121
Total available-for-sale debt securities	$	1,242	$	1,243	$	1,229	$	1,230

Available-for-sale debt securities due after three years in the table above include our municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. All of the remaining securities in that category had interest reset dates or mandatory call dates within three years of the dates indicated in the table.

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4. Discontinued Operations

Intuit Financial Services

On August 1, 2013 we completed the sale of our Intuit Financial Services (IFS) business for approximately $1.025 billion in cash. We recorded a gain on the disposal of IFS of approximately $36 million, net of income taxes, in the first quarter of fiscal 2014. The IFS business comprised substantially all of our former Financial Services reportable segment.

We classified our IFS business as discontinued operations and have therefore segregated its operating results from continuing operations in our statements of operations for all periods presented. Because operating cash flows from the IFS business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Intuit Health

On August 19, 2013 we completed the sale of our Intuit Health business for cash consideration that was not significant. We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014. Intuit Health was part of our former Other Businesses reportable segment.

We classified our Intuit Health business as discontinued operations and have therefore segregated its operating results in our statements of operations for all periods presented. Because operating cash flows from the Intuit Health business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

5. Current Liabilities

Unsecured Revolving Credit Facility

On February 17, 2012 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on February 17, 2017. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either JP Morgan's alternate base rate plus a margin that ranges from 0.0% to 0.5% or London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.9% to 1.5%. Actual margins under either election will be based on our senior debt credit ratings. The agreement includes customary affirmative and negative covenants, including financial covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00 as of the last day of each fiscal quarter. We remained in compliance with these covenants at all times during the quarter ended October 31, 2014. We may use amounts borrowed under this credit facility for general corporate purposes, including future acquisitions. To date we have not borrowed under this credit facility.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

(In millions)	October 31, 2014		July 31, 2014
Reserve for product returns	$	19	$	24
Reserve for rebates	15		23
Current portion of license fee payable	10		10
Current portion of deferred rent	7		7
Interest payable	3		10
Executive deferred compensation plan liabilities	71		63
Other	29		30
Total other current liabilities	$	154	$	167

The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,” for more information.

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6. Long-Term Obligations

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the Notes). We carried the Notes at face value less the unamortized discount in long-term debt on our balance sheets at October 31, 2014 and July 31, 2014. The 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. Interest on the Notes is payable semi-annually on March 15 and September 15. We paid $14 million in cash for interest on the Notes during the three months ended October 31, 2014 and $14 million in cash for interest on the Notes during the three months ended October 31, 2013.

Other Long-Term Obligations

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

(In millions)	October 31, 2014			July 31, 2014
Total deferred rent	$	61		$	62
Total license fee payable	42			41
Long-term income tax liabilities	33			32
Long-term deferred income tax liabilities	62			61
Other	21			14
Total long-term obligations	219			210
Less current portion (included in other current liabilities)	(19		)	(17		)
Long-term obligations due after one year	$	200		$	193

Operating Lease Commitments

We describe our operating lease commitments in Note 9 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. There were no significant changes in those commitments during the first three months of fiscal 2015.

7. Income Taxes

Effective Tax Rate

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.

Our effective tax rate for the three months ended October 31, 2014 was approximately 31%. Excluding discrete tax items primarily related to share-based compensation and a state tax law change as well as including the effects of losses in certain jurisdictions where we do not recognize a tax benefit, our effective tax rate for the period was approximately 37% and did not differ significantly from the federal statutory rate of 35%. Tax expense related to share based compensation, state income taxes, and the effects of losses in certain jurisdictions where we do not recognize a tax benefit were partially offset by the benefit we received from the domestic production activities deduction.

Our effective tax rate for the three months ended October 31, 2013 was approximately 29%. Excluding the impact of discrete tax items primarily related to share-based compensation, our effective tax rate for that period was approximately 34% and did not differ significantly from the federal statutory rate of 35%. The benefit we received from the domestic production activities deduction and the federal research and experimentation credit were substantially offset by tax expense related to state income taxes.

Unrecognized Tax Benefits and Other Considerations

The total amount of our unrecognized tax benefits at July 31, 2014 was $40 million. Net of related deferred tax assets, unrecognized tax benefits were $26 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $26 million. There were no material changes to these amounts during the three months ended October 31, 2014. We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months.

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8. 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. We repurchased 1.3 million shares for $114 million under these programs during the three months ended October 31, 2014 and 17.6 million shares for $1.4 billion under these programs during the three months ended October 31, 2013. At October 31, 2014, we had authorization from our Board of Directors to expend up to an additional $1.8 billion for stock repurchases through August 19, 2017. 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 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, 2014 we declared and paid a quarterly cash dividend of $0.25 per share of outstanding common stock or $74 million. In November 2014 our Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock payable on January 20, 2015 to stockholders of record at the close of business on January 9, 2015. 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 loss from continuing operations for the periods shown.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Cost of revenue	$	2		$	2
Selling and marketing	18			15
Research and development	20			14
General and administrative	21			16
Total share-based compensation expense	61			47
Income tax benefit	(19		)	(15		)
Increase in net loss from continuing operations	$	42		$	32
Increase in net loss per share:
Basic	$	0.15		$	0.11
Diluted	$	0.15		$	0.11

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Share-Based Awards Available for Grant

A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the three months ended October 31, 2014 was as follows:

(Shares in thousands)	Shares Available for Grant
Balance at July 31, 2014	24,203
Options granted	—
Restricted stock units granted (1)	(604	)
Share-based awards canceled/forfeited/expired (1)(2)	1,791
Balance at October 31, 2014	25,390

________________________________

(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 increase the pool by 2.3 shares for each share forfeited.

(2) Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

Stock Option Activity and Related Share-Based Compensation Expense

A summary of stock option activity for the three months ended October 31, 2014 was as follows:

	Options Outstanding
(Shares in thousands)	Number of Shares		Weighted Average Exercise Price Per Share
Balance at July 31, 2014	10,938		$	52.67
Options granted	—		—
Options exercised	(1,085	)	47.78
Options canceled or expired	(291	)	63.73
Balance at October 31, 2014	9,562		$	52.89
Exercisable at October 31, 2014	5,252		$	40.48

At October 31, 2014, there was approximately $59 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.3 years.

Restricted Stock Unit Activity and Related Share-Based Compensation Expense

A summary of restricted stock unit activity for the three months ended October 31, 2014 was as follows:

	Restricted Stock Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at July 31, 2014	9,455		$	62.46
Granted	263		82.98
Vested	(709	)	53.93
Forfeited	(718	)	55.31
Nonvested at October 31, 2014	8,291		$	64.46

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At October 31, 2014, there was approximately $349 million of unrecognized compensation cost related to non-vested RSUs that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.2 years.

9. Litigation

Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that, in addition to any amounts accrued, the amount of potential losses, if any, for any pending claims of any type (either alone or combined) will not have a material impact on our consolidated financial statements. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims could adversely affect our business.

10. 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.

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• 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 all periods presented.

We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses that 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 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014 and in Note 1, "Description of Business and Summary of Significant Accounting Policies - Significant Accounting Policies" in this Quarterly Report on Form 10-Q. Except for goodwill and purchased intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets by reportable segment.

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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 and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Net revenue:
Small Business segment	$	548		$	520
Consumer segment:
Consumer Tax	57			42
Consumer Ecosystem	31			35
Total Consumer segment	88			77
Professional Tax segment	36			25
Total net revenue	$	672		$	622
Operating loss from continuing operations:
Small Business segment	$	192		$	190
Consumer segment	(34		)	(24		)
Professional Tax segment	(3		)	(9		)
Total segment operating income	155			157
Unallocated corporate items:
Share-based compensation expense	(61		)	(47		)
Other common expenses	(192		)	(177		)
Amortization of acquired technology	(10		)	(6		)
Amortization of other acquired intangible assets	(6		)	(4		)
Total unallocated corporate items	(269		)	(234		)
Total operating loss from continuing operations	$	(114	)	$	(77	)

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ITEM 2

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) includes the following sections:

• Executive Overview that discusses at a high level our operating results and some of the trends that affect our business.

• Significant changes since our most recent Annual Report on Form 10-K in the Critical Accounting Policies and Estimates that we believe are important to understanding the assumptions and judgments underlying our financial statements.

• Results of Operations that includes a more detailed discussion of our revenue and expenses.

• Liquidity and Capital Resources which discusses key aspects of our statements of cash flows, changes in our balance sheets, and our financial commitments.

You should note that this MD&A discussion contains forward-looking statements that involve risks and uncertainties. Please see Item 1A in Part II of this Quarterly Report on Form 10-Q for important information to consider when evaluating such statements.

You should read this MD&A in conjunction with the financial statements and related notes in Part I, Item 1 of this Quarterly Report and our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. In August 2013 we completed the sales of our Intuit Financial Services (IFS) business and our Intuit Health business. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the operating cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows. See “Results of Operations – Discontinued Operations” later in this Item 2 for more information. Unless otherwise noted, the following discussion pertains only to our continuing operations.

Executive Overview

This overview provides a high-level discussion of our business and growth strategy as well as the trends, opportunities, challenges, and risks that affect our performance and operating results. Understanding our growth strategy and the trends that affect our business provides context for the discussion of financial results and future opportunities which follows this overview. This summary is not intended to be exhaustive, nor is it a substitute for the detailed discussion and analysis provided elsewhere in this Quarterly Report on Form 10-Q.

About Intuit

Intuit creates business and financial management solutions that help simplify the business of life for small businesses, consumers, and accounting professionals. We organize our businesses into three reportable segments – Small Business, Consumer, and Professional Tax.

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

• QuickBooks financial and business management online services and desktop software for small businesses and the accounting professionals who serve small businesses.

• Small business payroll and employee management products and services.

• 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; and GoPayment mobile payment processing services.

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

Consumer: This 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.

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

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Professional Tax: This segment targets professional accountants and includes Lacerte, ProSeries, and Intuit Tax Online professional tax products and services.

Our Growth Strategy

Based on our assessment of key technology and demographic trends – an increasingly borderless world, the prevalence of mobile devices, and the scalability of the cloud – we see significant opportunities to drive future growth by continuing to solve the unmet needs of small businesses, consumers, and accounting professionals. Our evolving growth strategy includes three key elements:

• Focus on the product – we call it “Delivering awesome product experiences.” Computing devices are moving to the palm of our hands in the form of tablets and smart phones. Therefore, we are increasingly focused on reimagining our products with a mobile-first, and in some cases mobile-only, design. Our TurboTax solutions, for example, let customers prepare and file their entire tax returns online, via tablet, mobile phone or desktop computer. We also believe that a key factor in growing our customer base is delivering an amazing first-use experience so our customers can get the value they expect from our offerings as quickly and easily as possible.

• Creating network effect platforms – we call it “Enabling the contributions of others.” We expect to solve problems faster and more efficiently for our growing base of customers by moving to more open platforms with application programming interfaces that enable the contributions of end users and third-party developers. One example of this is QuickBooks Online, which allows small business customers all over the world to localize, configure, and add value to the offering.

• Leveraging our data for our customers' benefit – we call it “Using data to create delight.” Our customers generate valuable data that we seek to appropriately use to deliver better products and breakthrough benefits by eliminating the need to enter data, helping them make better decisions and improving transactions and interactions.

Industry Trends and Seasonality

The industry in which we operate is dynamic and highly competitive, and we expect it to remain so in the future. The markets for software and related services, especially highly-available connected services, are characterized by rapid technological change, shifting customer needs, and frequent new product introductions and enhancements. Competitive interest and expertise in many of the markets we serve have grown markedly over the past few years and we expect this trend to continue. There are also large, cloud-based service companies who innovate quickly and serve small businesses and consumers. While today our competition with such companies may be limited, as we and those companies grow, our competition with them may increase. In recent years the widespread availability of the Internet, the emergence of mobile devices, and the explosion of social media have accelerated the pace of change and revolutionized the way that people throughout the world manage important financial tasks. The result is a global market that is shifting from traditional services that are paper-based, human-produced, and brick-and-mortar bound, to one where people understand, demand, and embrace the benefits of connected services. This trend toward connected services is the primary driver of the strategies in all of our businesses.

Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products have tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated from November through April. In our Consumer Tax business, a greater proportion of our revenue has shifted to later in this seasonal period due in part to the growth in sales of TurboTax Online, for which we recognize revenue when tax returns are printed or electronically filed. The seasonality of our Consumer Tax and Professional Tax revenue is also affected by the timing of the availability of tax forms from taxing agencies and the ability of those agencies to receive electronic tax return submissions. Delays in the availability of tax forms or the ability of taxing agencies to receive submissions can cause revenue to shift between our fiscal quarters. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels. In our MD&A we often focus on year-to-date results for our seasonal businesses as they are generally more meaningful than quarterly results.

In August 2014 we announced that we would begin delivering ongoing releases for our future desktop software offerings in order to improve the product experience, accommodate operating system updates, and provide access to connected services. We believe that providing more frequent releases will create a better experience for customers who choose our desktop offerings, as well as a more seamless transition to our online offerings in the future. This decision affects the timing of revenue recognition for future sales of our QuickBooks and Quicken desktop products, where revenue will be recognized as services are provided over approximately three years, and our Professional Tax solutions, where revenue will be recognized as services are provided

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over the tax year. We expect the seasonality of our Small Business and Professional Tax offerings to be partially mitigated by this change beginning in fiscal 2015.

Key Challenges and Risks

Our growth strategy depends upon our ability to initiate and embrace disruptive technology trends, to enter new markets, and to drive broad adoption of the products and services we develop and market. Our future growth also increasingly depends on the strength of our third-party business relationships and our ability to continue to develop, maintain and strengthen new and existing relationships. To remain competitive and continue to grow, we are investing significant resources in our product development, marketing, and sales capabilities, and we expect to continue to do so in the future.

As we continue transitioning to offer more connected services, the ongoing operation and availability of our information technology and communication systems and those of our external service providers is becoming increasingly important. Because we help customers manage their financial lives, we face risks associated with the hosting, collection, use and retention of personal customer information and data. We are investing significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities, and we expect to continue to do so in the future.

For a complete discussion of the most significant risks and uncertainties affecting our business, please see “Forward-Looking Statements and Risk Factors” in Item 1A of this Quarterly Report.

Overview of Financial Results

The most important financial indicators that we use to assess our business are revenue growth for the company as a whole, for each reportable segment, and for product lines within each reportable segment; operating income growth and operating income margins for the company as a whole and for each reportable segment; earnings per share; and cash flow from operations. We also track certain non-financial drivers of revenue growth and, when material, identify them in the applicable discussions of segment results below. These non-financial drivers include, for example, customer growth and retention for all of our businesses and transaction volume for our payment processing business. Total credit and debit card transaction volume correlates strongly with the macroeconomic environment and is one of the key drivers of revenue growth in our payment processing business. Customers for our connected services offerings have generally grown faster than those for our traditional desktop software offerings, reflecting our strategic focus on connected services over the past few years. Connected services (total service and other revenue) generated $3.0 billion or 66% of our total revenue in fiscal 2014, compared with 50% of our total revenue six years ago. We expect connected services revenue as a percentage of our total revenue to continue to grow in the future.

Total net revenue for the first three months of fiscal 2015 was $672 million, an increase of 8% compared with the same period of fiscal 2014. Total net revenue growth was affected by the change to our desktop software offerings described in “Industry Trends and Seasonality” above. Our Small Business segment was the key driver of higher revenue in the first three months of fiscal 2015, growing 5% compared with the same period a year ago. Small Business segment revenue growth was driven by customer growth in our Small Business Online Ecosytem.

Operating loss from continuing operations for the first three months of fiscal 2015 was $114 million, an increase of 48% compared with the same period of fiscal 2014. Our operating loss was higher in fiscal 2015 due to the impact of the change to our desktop software offerings on fiscal 2015 revenue and due to higher expenses for staffing, outside services, and other operating expenses and due to higher share-based compensation expenses.

Net loss from continuing operations increased 47% in the first three months of fiscal 2015 compared with the same period of fiscal 2014 due to the higher operating loss. Basic and diluted net loss per share from continuing operations for the first three months of fiscal 2015 increased 45% to $0.29, in line with the increase in the net loss for that period.

We ended the first three months of fiscal 2015 with cash, cash equivalents and investments totaling $1.6 billion. During the first three months of fiscal 2015 we generated cash from the issuance of common stock under employee stock plans. During the same period we used cash for operations, the repurchase of shares of our common stock under our stock repurchase programs, the payment of cash dividends, and capital expenditures.

At October 31, 2014, we had authorization from our Board of Directors to expend up to an additional $1.8 billion for stock repurchases through August 19, 2017.

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Critical Accounting Policies and Estimates

In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss, and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet. We believe that the estimates, assumptions and judgments involved in the accounting policies described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting policies and estimates. Except for the changes to our policy for recognizing product revenue described in “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2, we believe that there were no significant changes in those critical accounting policies and estimates during the first three months of fiscal 2015. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.

Results of Operations

Financial Overview

(Dollars in millions, except per share amounts)	Q1 FY15			Q1 FY14			$ Change			% Change
Total net revenue	$	672		$	622		$	50		8	%
Operating loss from continuing operations	(114		)	(77		)	(37		)	48	%
Net loss from continuing operations	(84		)	(57		)	(27		)	47	%
Basic and diluted net loss per share from continuing operations	$	(0.29	)	$	(0.20	)	$	(0.09	)	45	%

Total net revenue increased $50 million or 8% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014. Total net revenue growth was affected by the change to our desktop software offerings described in “Industry Trends and Seasonality” above. Our Small Business segment was the key driver of higher revenue in the first three months of fiscal 2015, growing 5% compared with the same period a year ago. Small Business segment revenue growth was driven by customer growth in our Small Business Online Ecosytem. See “Segment Results” later in this Item 2 for more information about the results for all of our reportable segments.

Operating loss from continuing operations increased 48% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014. Our operating loss was higher in fiscal 2015 due to the impact of the change to our desktop software offerings on fiscal 2015 revenue and due to higher expenses for staffing, outside services, and other operating expenses and due to higher share-based compensation expenses. See “Operating Expenses” later in this Item 2 for more information.

Net loss from continuing operations increased 47% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014 due to the higher operating loss, partially offset by the effect of a slightly higher effective tax rate in the fiscal 2015 period. See “Non-Operating Income and Expenses – Income Taxes” later in this Item 2 for more information. Basic and diluted net loss per share from continuing operations for the first quarter of fiscal 2015 increased 45% to $0.29, in line with the increase in the net loss for that period.

Segment Results

The information below is organized in accordance with our three reportable segments. See “Executive Overview – About Intuit” earlier in this Item 2 and Note 10 to the financial statements in Part I, Item 1 of this Quarterly Report for more information. 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 all periods presented.

Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2 for a description of the seasonality of our business. Segment expenses do not include certain costs, 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. These unallocated costs totaled $253 million in the first three months of fiscal 2015 and $224 million in the first three months of fiscal 2014. Unallocated costs increased in the fiscal 2015 period due to increases in corporate product development and selling and marketing expenses in support of the growth of our businesses and to higher share-based compensation expenses. Segment expenses also do not include amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges. See Note 10 to the financial statements in Part I, Item 1 of this Quarterly

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Report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.

We calculate revenue growth rates and segment operating margin figures using dollars in thousands. Those results may vary from figures calculated using the dollars in millions presented below.

Small Business

(Dollars in millions)	Q1 FY15			Q1 FY14			% Change
Product revenue	$	187		$	192		(3	)%
Service and other revenue	361			328			10	%
Total segment revenue	$	548		$	520		5	%
% of total revenue	82		%	84		%
Segment operating income	$	192		$	190		1	%
% of related revenue	35		%	37		%

Service and other revenue in our Small Business segment is derived primarily from QuickBooks Online and QuickBooks Online Accountant, our hosted financial and business management offerings; QuickBooks Pro Plus, QuickBooks Premier Plus, and QuickBooks Accountant Plus, our subscription offerings; QuickBooks technical support plans; small business payroll services, including Quickbooks Online Payroll, Intuit Online Payroll, Intuit Full Service Payroll, and QuickBooks Assisted Payroll; payment processing services for small businesses; Demandforce; and QuickBase. Product revenue in our Small Business segment is derived primarily from QuickBooks desktop software products, including QuickBooks Pro, QuickBooks Premier, QuickBooks Accountant, and QuickBooks Enterprise Solutions; QuickBooks Basic Payroll and QuickBooks Enhanced Payroll; QuickBooks Point of Sale solutions; ProAdvisor Program subscriptions for the accounting professionals who serve small businesses; and financial supplies.

As part of our connected services strategy, over the past several quarters we have been focusing Small Business segment resources on the enhancement and marketing of our QuickBooks Online and QuickBooks desktop subscription offerings. As a result, QuickBooks desktop license units and revenue have been declining as more customers choose our hosted and subscription offerings and we expect this trend to continue. In our payments business we are focusing resources on core offerings for QuickBooks merchants in support of our small business ecosystem approach. Over the next few quarters we anticipate declining revenue for certain non-QuickBooks payments offerings that may slow overall revenue growth in our payments business.

Small Business segment total net revenue increased $28 million or 5% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014. Small Business segment revenue growth was affected by the change to our desktop software offerings described in “Industry Trends and Seasonality” above. Small Business Online Ecosystem revenue grew 30%, driven by customer acquisition. QuickBooks Online customers grew 43% and online payroll customers grew 24%. Active online payments customers grew 3% and online payments charge volume grew 22%. In our Small Business Desktop Ecosystem revenue declined 2%. QuickBooks desktop unit sales were 23% lower as we continued to emphasize QuickBooks Online while QuickBooks Enterprise Solutions revenue grew 29%.

Small Business segment operating income as a percentage of related revenue decreased in the first quarter of fiscal 2015 compared with the same period of fiscal 2014. The increase in segment revenue described above was nearly offset by higher segment operating expenses, including $20 million for outside services and marketing programs.

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Consumer

(Dollars in millions)	Q1 FY15			Q1 FY14			% Change
Product revenue	$	16		$	19		(15	)%
Service and other revenue	72			58			24	%
Total segment revenue	$	88		$	77		15	%
% of total revenue	13		%	12		%
Segment operating loss	$	(34	)	$	(24	)	40	%
% of related revenue	(39		)%	(32		)%

Our Consumer segment includes our Consumer Tax and Consumer Ecosystem product lines. Consumer Tax service and other revenue is derived primarily from TurboTax Online tax return preparation services and electronic tax filing services.

Consumer Tax product revenue is derived primarily from TurboTax desktop tax return preparation software. Consumer Ecosystem product revenue is derived primarily from Quicken desktop personal finance software products. Consumer Ecosystem service and other revenue is derived primarily from mobile and online consumer finance offerings as well as from online lead generation fees from our Mint personal finance offerings.

Due to the seasonal nature of our Consumer Tax offerings, we typically generate nominal revenue from consumer tax products and services in our first fiscal quarter compared with our second and third fiscal quarters. The majority of Consumer Tax product line revenue for the first quarter of each fiscal year is for the filing of extended returns for the previous tax year. Consumer segment total net revenue increased $11 million or 15% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014 primarily due to TurboTax Online offering mix. Because of the seasonality of our Consumer Tax revenue, we do not believe that first fiscal quarter revenue in our Consumer segment is indicative of revenue trends for the current fiscal year. We will not have substantially complete results for the 2014 tax season until the third quarter of fiscal 2015.

In our first fiscal quarter our Consumer segment typically generates operating losses because Consumer Tax revenue is nominal while segment operating expenses for functions such as research and development continue at relatively consistent levels. We do not believe that Consumer segment operating results for the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014 are indicative of trends for the full fiscal year.

Professional Tax

(Dollars in millions)	Q1 FY15			Q1 FY14			% Change
Product revenue	$	30		$	18		66	%
Service and other revenue	6			7			(8	)%
Total segment revenue	$	36		$	25		46	%
% of total revenue	5		%	4		%
Segment operating loss	$	(3	)	$	(9	)	(66	)%
% of related revenue	(8		)%	(35		)%

Professional Tax segment product revenue is derived primarily from ProSeries and Lacerte professional tax preparation software products. Professional Tax service and other revenue is derived primarily from Intuit Tax Online tax return preparation services, electronic tax filing services, bank product transmission services, and training services.

Due to the seasonal nature of our Professional Tax offerings, we typically generate nominal revenue from professional tax products and services in our first fiscal quarter compared with our second and third fiscal quarters. The majority of Professional Tax revenue for the first quarter of each fiscal year is for the filing of extended returns for the previous tax year. Professional Tax total net revenue increased $11 million or 46% in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014. Professional Tax revenue increased primarily because customers filed more extended tax returns in the fiscal 2015 quarter compared with the same quarter of fiscal 2014. We do not believe that first fiscal quarter revenue in this segment is indicative of revenue trends for the current fiscal year. We will not have substantially complete results for the 2014 tax season until the third quarter of fiscal 2015.

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In our first fiscal quarter our Professional Tax segment typically generates operating losses because revenue is nominal while operating expenses for functions such as research and development continue at relatively consistent levels. We do not believe that Professional Tax operating results for the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014 are indicative of trends for the full fiscal year.

Cost of Revenue

(Dollars in millions)	Q1 FY15		% of Related Revenue		Q1 FY14		% of Related Revenue
Cost of product revenue	$	34	15	%	$	29	13	%
Cost of service and other revenue	131		30	%	108		27	%
Amortization of acquired technology	10		n/a		6		n/a
Total cost of revenue	$	175	26	%	$	143	23	%

Cost of product revenue as a percentage of product revenue increased in the first three months of fiscal 2015 compared with the same period of fiscal 2014 due to the deferral of QuickBooks and Quicken revenue described in “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2. We expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product revenue is deferred. Cost of service and other revenue as a percentage of service and other revenue increased in the first three months of fiscal 2015 compared with the same period of fiscal 2014 due to higher data center costs for our online offerings.

Operating Expenses

(Dollars in millions)	Q1 FY15		% of Total Net Revenue		Q1 FY14		% of Total Net Revenue
Selling and marketing	$	281	42	%	$	258	41	%
Research and development	200		30	%	176		28	%
General and administrative	124		18	%	118		19	%
Amortization of other acquired intangible assets	6		1	%	4		1	%
Total operating expenses	$	611	91	%	$	556	89	%

Total operating expenses as a percentage of total net revenue increased to 91% in the first quarter of fiscal 2015 compared with 89% in the same quarter of fiscal 2014. Total net revenue for the first quarter of fiscal 2015 increased $50 million or 8% and total operating expenses for that quarter increased $55 million. Total net revenue growth was affected by the change to our desktop software offerings described in “Executive Overview - Industry Trends and Seasonality” earlier in this Item 2. Staffing expenses increased about $20 million due to annual salary increases, sales commissions, and benefits. Operating expenses also increased about $29 million for outside services, equipment leases and facilities, and marketing programs, and about $14 million for share-based compensation expenses. Share-based compensation expenses increased due to our assumption of certain equity awards in connection with business combinations during fiscal 2014. Share-based compensation expenses have also been increasing over time because the market price of our common stock has generally been increasing.

Non-Operating Income and Expenses

Interest Expense

Interest expense of $7 million for the first three months of fiscal 2015 and $8 million for the first three months of fiscal 2014 consisted primarily of interest on senior notes that we issued in March 2007. See Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.

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Interest and Other Income, Net

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Interest income	$	2		$	1
Net gain on executive deferred compensation plan assets	1			3
Other	(3		)	1
Total interest and other income, net	$	—		$	5

Interest and other income, net consists primarily of interest income and net gains on executive deferred compensation plan assets. Higher average invested balances and slightly higher average interest rates resulted in higher interest income in the first quarter of fiscal 2015 compared with the same quarter of fiscal 2014. In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating expenses. The total amounts recorded in operating expenses for each period are approximately equal to the total amounts recorded in interest and other income in those periods.

Income Taxes

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period. Our effective tax rate for the first quarter of fiscal 2015 was approximately 31%. Excluding discrete tax items primarily related to share-based compensation and a state tax law change as well as including the effects of losses in certain jurisdictions where we do not recognize a tax benefit, our effective tax rate for the period was approximately 37% and did not differ significantly from the federal statutory rate of 35%.

Our effective tax rate for the first quarter of fiscal 2014 was approximately 29%. Excluding the impact of discrete tax items primarily related to share-based compensation, our effective tax rate was approximately 34% and did not differ significantly from the federal statutory rate of 35%. See Note 7 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.

Discontinued Operations

We sold our Intuit Financial Services (IFS) business in August 2013 for approximately $1.025 billion in cash and recorded a gain on disposal of approximately $36 million, net of income taxes, in the first quarter of fiscal 2014. We also sold our Intuit Health business in August 2013 for cash consideration that was not significant and recorded a $4 million pre-tax loss on disposal that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. See Note 4 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.

Liquidity and Capital Resources

Overview

At October 31, 2014, our cash, cash equivalents and investments totaled $1.6 billion, a decrease of $325 million from July 31, 2014 due to the factors discussed under “Statements of Cash Flows” below. Our primary source of liquidity has been cash from operations, which entails the collection of accounts receivable for products and services. Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs, repurchases of our common stock under our stock repurchase programs, and the payment of cash dividends. As discussed in “Executive Overview – Industry Trends and Seasonality” earlier in this Item 2, our business is subject to significant seasonality. The balance of our cash, cash equivalents, and investments generally fluctuates with that seasonal pattern. We believe the seasonality of our business is likely to continue in the future.

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The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:

(Dollars in millions)	October 31, 2014		July 31, 2014		$ Change			% Change
Cash, cash equivalents, and investments	$	1,589	$	1,914	$	(325	)	(17	)%
Long-term investments	31		31		—			—	%
Long-term debt	499		499		—			—	%
Working capital	1,077		1,200		(123		)	(10	)%
Ratio of current assets to current liabilities	1.8 : 1		1.8 : 1

We have historically generated significant cash from operations and we expect to continue to do so during fiscal 2015. Since our operations are primarily domestic, approximately 89% of our cash, cash equivalents and investments at October 31, 2014 were located in the U.S. and none of those funds were restricted. Our only significant debt consists of $500 million in senior unsecured notes due in March 2017. We also have an unused $500 million unsecured revolving line of credit facility available to us for general corporate purposes, including future acquisitions.

We evaluate, on an ongoing basis, the merits of acquiring technology or businesses, or establishing strategic relationships with and investing in other companies. Our strong liquidity profile enables us to respond nimbly to these kinds of opportunities.

Based on past performance and current expectations, we believe that our cash and cash equivalents, investments, and cash generated from operations will be sufficient to meet anticipated seasonal working capital needs, capital expenditure requirements, contractual obligations, commitments, debt service requirements, and other liquidity requirements associated with our operations for at least the next 12 months. We expect to return excess cash generated by operations to our stockholders through repurchases of our common stock and payment of cash dividends, after taking into account our operating and strategic cash needs.

Statements of Cash Flows

The following table summarizes selected items from our statements of cash flows for the first three months of fiscal 2015 and fiscal 2014. See the financial statements in Part I, Item 1 of this Quarterly Report for complete statements of cash flows for those periods.

	Three Months Ended
(Dollars in millions)	October 31, 2014			October 31, 2013			$ Change
Net cash provided by (used in):
Operating activities	$	(118	)	$	(190	)	$	72
Investing activities	(61		)	949			(1,010		)
Financing activities	(123		)	(1,350		)	1,227
Effect of exchange rate changes on cash	(5		)	(1		)	(4		)
Total decrease in cash and cash equivalents	$	(307	)	$	(592	)	$	285

During the first three months of fiscal 2015 we generated cash from the issuance of common stock under employee stock plans. During the same period we used cash for operations, including the payment of accrued bonuses for fiscal 2014, for the repurchase of shares of our common stock under our stock repurchase programs, for the payment of cash dividends, and for capital expenditures.

During the first three months of fiscal 2014 we generated $1.0 billion in cash from the sale of our Intuit Financial Services business and used $1.4 billion in cash to repurchase shares of our common stock under our stock repurchase programs. During the same period we also generated cash from the issuance of common stock under employee stock plans and used cash for operations, including the payment of accrued bonuses for fiscal 2013, for the payment of cash dividends, and for capital expenditures.

Stock Repurchase Programs, Treasury Shares, and Dividends on Common Stock

As described in Note 8 to the financial statements in Part I, Item 1 of this Quarterly Report, during the first three months of fiscal 2015 we continued to repurchase shares of our common stock under repurchase programs that our Board of Directors has authorized. At October 31, 2014, we had authorization from our Board of Directors to expend up to an additional $1.8 billion

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for stock repurchases through August 19, 2017. We currently expect to continue repurchasing our common stock on a quarterly basis; however, 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.

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.

During the first three months of fiscal 2015 we also continued to pay quarterly cash dividends on shares of our outstanding common stock. In November 2014 our Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock payable on January 20, 2015 to stockholders of record at the close of business on January 9, 2015. We currently expect to continue paying comparable cash dividends on a quarterly basis; however, 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.

Unsecured Revolving Credit Facility

On February 17, 2012 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on February 17, 2017. See Note 5 to the financial statements in Part I, Item 1 of this Quarterly Report for a description of the key terms of this agreement, including the covenants. We remained in compliance with those covenants at all times during the quarter ended October 31, 2014. We may use amounts borrowed under this credit facility for general corporate purposes, including future acquisitions. To date we have not borrowed under the credit facility. We monitor counterparty risk associated with the institutional lenders that are providing the credit facility. We currently believe that the credit facility will be available to us should we choose to borrow under it.

Cash Held by Foreign Subsidiaries

Our cash, cash equivalents, and investments totaled $1.6 billion at October 31, 2014. Of this amount, approximately 11% was held by our foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were located primarily in Canada, India, and the United Kingdom. We intend to permanently reinvest a significant portion of our earnings from foreign operations, and we currently do not anticipate that we will need funds generated from foreign operations to fund our domestic operations. In the event that funds from foreign operations are needed to fund operations in the United States, if U.S. taxes have not been previously provided on the related earnings we would provide for and pay additional U.S. taxes at the time we change our intention with regard to the reinvestment of those earnings.

Off-Balance Sheet Arrangements

At October 31, 2014, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.

Contractual Obligations

We presented our contractual obligations at July 31, 2014 in our Annual Report on Form 10-K for the fiscal year then ended. There were no significant changes in those obligations during the first three months of fiscal 2015.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements, if any, and the potential impact of these pronouncements on our consolidated financial statements, see Note 1 to the financial statements in Part I, Item 1 of this Quarterly Report.

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ITEM 3

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Investment Risk

We actively monitor market conditions and developments specific to the securities in which we invest. We believe that we take a conservative approach to investing our funds in that we invest only in highly-rated securities and diversify our portfolio of investments. While we believe we take prudent measures to mitigate investment related risks, such risks cannot be fully eliminated because of market circumstances that are outside our control.

Our investments consist of instruments that meet quality standards that are consistent with our investment policy. This policy specifies that, except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer. We do not hold derivative financial instruments or European sovereign debt in our portfolio of investments. See Note 3 to the financial statements in Part I, Item 1 of this Quarterly Report for a summary of the cost and fair value of our investments by type of issue.

Interest Rate Risk

Our cash equivalents and investments are subject to market risk due to changes in interest rates. Interest rate movements affect the interest income we earn on cash equivalents and investments and the fair value of those investments. If the Federal Reserve Target Rate had increased by 25 basis points from the level of October 31, 2014, the value of our investments at that date would have decreased by approximately $3 million. If the Federal Reserve Target Rate had increased by 100 basis points from the level of October 31, 2014, the value of our investments at that date would have decreased by approximately $13 million.

We are also exposed to the impact of changes in interest rates as they affect our $500 million revolving credit facility. Advances under the credit facility accrue interest at rates that are equal to JP Morgan's alternate base rate plus a margin that ranges from 0.0% to 0.5% or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.9% to 1.5%, in both cases based on our senior debt credit ratings. Consequently, our interest expense would fluctuate with changes in the general level of these interest rates if we were to borrow any amounts under the credit facility. At October 31, 2014, no amounts were outstanding under the credit facility.

On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017. We carry these senior notes at face value less unamortized discount on our balance sheets. Since these senior notes bear interest at fixed rates, we have no financial statement risk associated with changes in interest rates. However, the fair value of these notes fluctuates when interest rates change. See Note 2 and Note 6 to the financial statements in Part I, Item 1 of this Quarterly Report for more information.

Impact of Foreign Currency Rate Changes

The functional currencies of our international operating subsidiaries are the local currencies. We translate the assets and liabilities of our foreign subsidiaries at the exchange rates in effect on the balance sheet date. We translate their revenue, costs and expenses at the average rates of exchange in effect during the period. We include translation gains and losses in the stockholders’ equity section of our balance sheets. We include net gains and losses resulting from foreign exchange transactions in interest and other income in our statements of operations.

Since we translate foreign currencies (primarily Canadian dollars, Indian rupees, and British pounds) into U.S. dollars for financial reporting purposes, currency fluctuations can have an impact on our financial results. The historical impact of currency fluctuations on our financial results has generally been immaterial. We believe that our exposure to currency exchange fluctuation risk is not significant primarily because our global subsidiaries invoice customers and satisfy their financial obligations almost exclusively in their local currencies. Although the impact of currency fluctuations on our financial results has generally been immaterial in the past and we believe that for the reasons cited above currency fluctuations will not be significant in the future, there can be no guarantee that the impact of currency fluctuations will not be material in the future. As of October 31, 2014, we did not engage in foreign currency hedging activities.

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ITEM 4

CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based upon an evaluation of the effectiveness of disclosure controls and procedures, Intuit’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) have concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q, our disclosure controls and procedures as defined under Exchange Act Rule 13a-15(e) and 15d-15(e) were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During our most recent fiscal quarter, there has not occurred any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

Inherent Limitations on Effectiveness of Controls

Our management, including our Chief Executive Officer and Chief Financial Officer, believes that our disclosure controls and procedures and internal control over financial reporting are designed to provide reasonable assurance of achieving their objectives and that they are effective at the reasonable assurance level. However, no matter how well conceived and executed, a control system can provide only reasonable and not absolute assurance that the objectives of the control system are met. The design of any control system must reflect the fact that there are resource constraints and the benefits of controls must be considered relative to their costs. There are also limitations that are inherent in any control system. These limitations include the realities that breakdowns can occur because of errors in judgment or mistakes, and that controls can be circumvented by individual persons, by collusion of two or more people, or by management override of the controls. Because of these inherent limitations in a cost effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II

ITEM 1

LEGAL PROCEEDINGS

See Note 9 to the financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of legal proceedings.

ITEM 1A

RISK FACTORS

Forward-Looking Statements and Risk Factors

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements in this report, other than statements that are purely historical, are forward-looking statements. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “forecast,” “estimate,” “seek,” and similar expressions also identify forward-looking statements. In this report, forward-looking statements include, without limitation, the following:

• our expectations and beliefs regarding future conduct and growth of the business;

• our beliefs and expectations regarding seasonality, competition and other trends that affect our businesses;

• our expectation that we will solve problems faster and more efficiently for our growing base of customers by moving to more open platforms with application programming interfaces that enable the contributions of end users and third-party developers;

• our expectation that we will continue to invest significant resources in our product development, marketing and sales capabilities in the future;

• our expectation that we will continue to invest significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities;

• our expectation that we will continue to generate significant cash from operations in the future;

• our expectation that connected services revenue as a percentage of our total revenue will continue to grow in the future;

• the assumptions underlying our Critical Accounting Policies and Estimates, including our estimates regarding product rebate and return reserves; the collectability of accounts receivable; stock volatility and other assumptions used to estimate the fair value of share-based compensation; the fair value of goodwill; and expected future amortization of acquired intangible assets;

• our belief that the investments we hold are not other-than-temporarily impaired;

• our belief that our exposure to currency exchange fluctuation risk will not be significant in the future;

• our assessments and estimates that determine our effective tax rate;

• our belief that it is not reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months;

• our belief that we will not need funds generated from foreign operations to fund our domestic operations;

• our belief that our cash and cash equivalents, investments and cash generated from operations will be sufficient to meet our seasonal working capital needs, capital expenditure requirements, contractual obligations, commitments, debt service requirements and other liquidity requirements associated with our operations for at least the next 12 months;

• our expectation that we will return excess cash generated by operations to our stockholders through repurchases of our common stock and payment of cash dividends; and

• our assessments and beliefs regarding the future outcome of pending legal proceedings and the liability, if any, that Intuit may incur as a result of those proceedings.

We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. We encourage you to read carefully all information provided in this Quarterly Report and in our other filings with the Securities and Exchange Commission before deciding to invest in our stock or to

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maintain or change your investment. These forward-looking statements are based on information as of the filing date of this Quarterly Report, and we undertake no obligation to publicly revise or update any forward-looking statement for any reason.

Because forward-looking statements involve risks and uncertainties, there are important factors that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include the following:

We face intense competitive pressures that may harm our operating results.

We face intense competition in all of our businesses, and we expect competition to remain intense in the future. Our competitors and potential competitors range from large and established entities to emerging start-ups. Our competitors may introduce superior products and services, reduce prices, have greater technical, marketing and other resources, have greater name recognition, have larger installed bases of customers, have well-established relationships with our current and potential customers, advertise aggressively or beat us to market with new products and services. In addition, we may face competition from existing companies, with large established consumer user-bases and broad-based platforms, who may change or expand the focus of their business strategies and marketing to target our customers, including small businesses and tax customers. We also face intensified competition from providers of free accounting, tax, payments, and other financial services. In order to compete, we have also introduced free offerings in several categories, but we may not be able to attract customers or effectively monetize all of these offerings, and customers who have formerly paid for Intuit’s products and services may elect to use free offerings instead. These competitive factors may diminish our revenue and profitability and harm our ability to acquire and retain customers.

Our consumer tax business also faces significant competition from the public sector, where we face the risk of federal and state taxing authorities developing software or other systems to facilitate tax return preparation and electronic filing at no charge to taxpayers. These or similar programs may be introduced or expanded in the future, which may cause us to lose customers and revenue. Although the Free File Alliance has kept the federal government from being a direct competitor to Intuit’s tax offerings, it has fostered additional online competition and may cause us to lose significant revenue opportunities. The current agreement with the Free File Alliance is scheduled to expire in October 2015. We anticipate that governmental encroachment at both the federal and state levels may present a continued competitive threat to our business for the foreseeable future.

Future revenue growth depends upon our ability to adapt to technological change and successfully introduce new and enhanced products, services and business models.

The software as a service (SaaS), desktop software and mobile technology industries are characterized by rapidly changing technology, evolving industry standards and frequent new product introductions. As we continue to grow our software as a service, mobile and other offerings, we must continue to innovate and develop new products and features to meet changing customer needs and attract and retain talented software developers. We need to continue to develop our skills, tools and capabilities to capitalize on existing and emerging technologies, which require us to devote significant resources.

A number of our businesses also derive a significant amount of their revenue from one-time upfront license fees and rely on customer upgrades and service offerings to generate a significant portion of their revenues. In addition, our consumer and professional tax businesses depend significantly on revenue from customers who return each year to use our updated tax preparation and filing software and services. As our existing products mature, encouraging customers to purchase product upgrades becomes more challenging unless new product releases provide features and functionality that have meaningful incremental value. If we are not able to develop and clearly demonstrate the value of new or upgraded products or services to our customers, our revenues may be harmed. In addition, as we continue to introduce and expand our new business models, including offerings that are subscription-based or that are free to end users, we may be unsuccessful in monetizing or increasing customer adoption of these offerings.

The number of people who access products and services through devices other than personal computers, including mobile phones, smartphones, and handheld computers such as tablets, continues to increase. We have devoted significant resources to develop products and services for users of these alternative devices, but the versions of our products and services developed for these devices may not be compelling to users. Even if we are able to attract new users through these mobile offerings, the amount of revenue that we derive per user from mobile offerings may be less than the revenue that we have historically derived from users of personal computers. As new devices and new platforms are continually being released, it is difficult to predict the problems we may encounter in developing versions of our products and services for use on these alternative devices and we may need to devote significant resources to the creation, support, and maintenance of such offerings. If we are slow to develop products and technologies that are compatible with these alternative devices, or if our competitors are able to achieve those results more quickly than us, we will fail to capture a significant share of an increasingly important portion of the market for online services, which could adversely affect our business.

In some cases, we may expend a significant amount of resources and management attention on offerings that do not ultimately succeed in their markets. We have encountered difficulty in launching new products and services in the past. If we misjudge

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customer needs in the future, our new products and services may not succeed and our revenues and earnings may be harmed. We have also invested, and in the future expect to invest, in new business models, geographies, strategies and initiatives. Such endeavors may involve significant risks and uncertainties, including distraction of management from current operations, expenses associated with the initiatives and inadequate return on investments. Because these new initiatives are inherently risky, they may not be successful and may harm our financial condition and operating results.

Business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results.

As we continue to transition our business to more connected services, we become more dependent on the continuing operation and availability of our information technology and communication systems and those of our external service providers, including, for example, third party Internet-based or “cloud” computing services. We do not have redundancy for all of our systems, many of our critical applications reside in only one of our data centers, and our disaster recovery planning may not account for all eventualities. We also do not maintain real-time back-up of all our data, and in the event of significant system disruption we may experience loss of data or processing capabilities, which may cause us to lose customers and may materially harm our reputation and our operating results. In addition, we are in the process of updating our customer facing applications and the supporting information technology infrastructure to meet our customers’ expectations for continuous service availability. Any difficulties in upgrading these applications or infrastructure or failure of our systems or those of our third-party service providers may result in interruptions in our service, which may reduce our revenues and profits, cause us to lose customers and damage our reputation. Any prolonged interruptions at any time may result in lost customers, additional refunds of customer charges, negative publicity and increased operating costs, any of which may significantly harm our business, financial condition and results of operations.

We are in the process of migrating our applications and infrastructure to new data centers and to third party hosted environments. If we do not execute the transition to these new environments in an effective manner, we may experience unplanned service disruptions or unforeseen increases in costs which may harm our operating results and our business.

Our business operations, data centers, information technology and communications systems are vulnerable to damage or interruption from natural disasters, human error, malicious attacks, fire, power loss, telecommunications failures, computer viruses, computer denial of service attacks, terrorist attacks and other events beyond our control. The majority of our activities, our corporate headquarters, our principal information technology systems, and other critical business operations are located near major seismic faults. We do not carry earthquake insurance for direct quake-related losses. Our future financial results may be materially harmed in the event of a major earthquake or other natural or man-made disaster.

We rely on internal systems and external systems maintained by manufacturers, distributors and other service providers to take and fulfill customer orders, handle customer service requests and host certain online activities. Any interruption or failure of our internal or external systems may prevent us or our service providers from accepting and fulfilling customer orders or cause company and customer data to be unintentionally disclosed. Our continuing efforts to upgrade and expand our network security and other information systems as well as our high-availability capabilities may be costly, and problems with the design or implementation of system enhancements may harm our business and our results of operations.

We host, collect, use and retain sensitive and personal customer information and data. A security breach resulting in third party access to this information and data could materially disrupt our businesses, result in the disclosure of confidential information, significantly damage our reputation and cause material losses.

We host, collect, use and retain large amounts of sensitive and personal customer information and data, including credit card numbers, tax return information, bank account numbers and passwords, personal and business financial data and transactions, social security numbers, healthcare information and payroll information. In addition, we collect and maintain sensitive and personal information of our employees in the ordinary course of our business. The volume of sensitive and personal information that we collect has been increasing and will continue to increase as we further transition our businesses to connected services. We and our vendors use commercially available security technologies to protect this information and data, and we also use security and business controls to limit access to and use of such sensitive and personal customer information and data. However, a major breach of our security measures or those of third parties that provide hosting services or have access to our sensitive and personal customer information may have serious negative consequences for our businesses, including possible fines, penalties and damages, reduced customer demand for our services, material harm to our reputation and brands, further regulation and oversight by federal or state agencies, and loss of our ability to provide financial transaction services or accept and process customer credit card orders or tax returns.

From time to time, we detect, or receive notices from customers or public or private agencies that they have detected, vulnerabilities in our servers, our software or third-party software components that are distributed with our products. The existence of vulnerabilities, even if they do not result in a security breach, may harm customer confidence and require

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substantial resources to address, and we may not be able to discover or remediate such security vulnerabilities before they are exploited. In addition, our technologies, systems, and networks and our customers' devices have been subject to, and are likely to continue to be the target of, cyber attacks, computer viruses, worms, phishing attacks, malicious software programs and other information security breaches that could result in the unauthorized release, gathering, monitoring, misuse, loss or destruction of our customers' sensitive and personal information and data, or otherwise disrupt our or our customers' or other third parties' business operations. Although this is an industry-wide problem that affects software across platforms, it is increasingly affecting our offerings because cybercriminals tend to focus their efforts on well-known offerings that are popular among customers, and we expect them to continue to do so. If these cybercriminals are able to circumvent our security measures, or if we are unable to detect an intrusion into our systems and contain such intrusion in a reasonable amount of time, our customers' sensitive and personal information and data may be compromised.

In addition, our employees, contractors, temporary and seasonal employees may have access to sensitive and personal information of our customers and employees. While we conduct background checks of our employees and these other individuals and limit access to systems and data, it is possible that one or more of these individuals may circumvent these controls, resulting in a security breach. In addition, we rely on third party vendors to host certain of our sensitive and personal information and data. While we conduct due diligence on these third party partners with respect to their security and business controls, we may not have the ability to effectively monitor or oversee the implementation of these controls measures, and, in any event, individuals or third parties may be able to circumvent and/or exploit vulnerabilities that may exist in these security and business controls, resulting in a loss of sensitive and personal customer or employee information and data.

If we are unable to develop, manage and maintain critical third party business relationships, our business may be adversely affected.

Our growth is dependent on the strength of our business relationships and our ability to continue to develop, maintain and leverage new and existing relationships. We rely on various third party partners, including software and service providers, suppliers, vendors, manufacturers, distributors, contractors, financial institutions, core processors, licensing partners and development partners, among others, in many areas of our business in order to deliver our offerings and operate our business. We also rely on third parties to support the operation of our business by maintaining our physical facilities, equipment, power systems and infrastructure. In certain instances, these third party relationships are sole source or limited source relationships and can be difficult to replace or substitute depending on the level of integration of the third party’s products or services into, or with, our offerings and/or the general availability of such third party’s products and services. In addition, there may be few or no alternative third party providers or vendors in the market. Further, there can be no assurance that we will be able to adequately retain third party contractors engaged to help us operate our business. The failure of third parties to provide acceptable and high quality products, services and technologies or to update their products, services and technologies may result in a disruption to our business operations and our customers, which may reduce our revenues and profits, cause us to lose customers and damage our reputation. Alternative arrangements and services may not be available to us on commercially reasonable terms or we may experience business interruptions upon a transition to an alternative partner.

In particular, we have relationships with banks, credit unions and other financial institutions that support certain critical services we offer to our customers. If macroeconomic conditions or other factors cause any of these institutions to fail, consolidate, stop providing certain services or institute cost-cutting efforts, our business and financial results may suffer and we may be unable to offer those services to our customers.

We increasingly utilize the distribution platforms of third parties like Apple's App Store and Google Play for Android for the distribution of certain of our product offerings. Although we benefit from the strong brand recognition and large user base of these distribution platforms to attract new customers, the platform owners have wide discretion to change the pricing structure, terms of service and other policies with respect to us and other developers. Any adverse changes by these third parties could adversely affect our financial results.

Increased government regulation of our businesses may harm our operating results.

Many of our businesses are regulated under federal, state and local laws, including our tax, accounting professionals, payroll and payments businesses. There have been significant new regulations and heightened focus by the government on many of these areas, as well as in areas such as insurance and healthcare (including, for example, the Affordable Care Act) and the collection, use and security of user data. As we expand our products and services and revise our business models, both domestically and internationally, we may become subject to additional government regulation or increased regulatory scrutiny. Further, regulators may adopt new laws or regulations or their interpretation of existing laws or regulations may differ from ours as well as the laws of other jurisdictions in which we operate. These regulatory requirements could impose significant limitations, require changes to our business, require notification to customers or employees of a security breach, restrict our use of personal information, or cause changes in customer purchasing behavior which may make our business more costly, less

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efficient or impossible to conduct, and may require us to modify our current or future products or services, which may harm our future financial results. In particular, as our business continues to expand to new industry segments that may be more highly regulated for privacy and data security, and to countries outside the United States that have more strict data protection laws, our compliance requirements and costs may increase. We have incurred – and may continue to incur – significant expenses to comply with mandatory privacy and security standards and protocols imposed by law, regulation, industry standards or contractual obligations.

The tax preparation industry continues to receive heightened attention from federal and state governments. New legislation, regulation, public policy considerations, litigation by the government or private entities, or new interpretations of existing laws may result in greater oversight of the tax preparation industry, restrict the types of products and services that we can offer or the prices we can charge, or otherwise cause us to change the way we operate our tax businesses or offer our tax products and services. We may not be able to respond quickly to such regulatory, legislative and other developments, and these changes may in turn increase our cost of doing business and limit our revenue opportunities. In addition, if our practices are not consistent with new interpretations of existing laws, we may become subject to lawsuits, penalties, and other liabilities that did not previously apply. We are also required to comply with a variety of state revenue agency standards in order to successfully operate our tax preparation and electronic filing services. Changes in state-imposed requirements by one or more of the states, including the required use of specific technologies or technology standards, may significantly increase the costs of providing those services to our customers and may prevent us from delivering a quality product to our customers in a timely manner.

If we fail to process transactions effectively or fail to adequately protect against disputed or potential fraudulent activities, our revenue and earnings may be harmed.

Our operations process a significant volume and dollar value of transactions on a daily basis, especially in our payroll and payments businesses. Due to the size and volume of transactions that we handle, effective processing systems and controls are essential to ensure that transactions are handled appropriately. Despite our efforts, it is possible that we may make errors or that funds may be misappropriated due to fraud. The systems supporting our business are comprised of multiple technology platforms that are difficult to scale. If we are unable to effectively manage our systems and processes we may be unable to process customer data in an accurate, reliable and timely manner, which may harm our business. In our payments processing service business, if merchants for whom we process payment transactions are unable to pay refunds due to their customers in connection with disputed or fraudulent merchant transactions, we may be required to pay those amounts and our payments may exceed the amount of the customer reserves we have established to make such payments.

The online tax preparation, payroll administration and online payments industries have been experiencing an increasing amount of fraudulent activities by third parties. Although we do not believe that any of this activity is uniquely targeted at our business, this type of fraudulent activity may adversely impact our own operations in our consumer tax, payroll, and payments businesses. In addition to any direct damages and potential fines that may result from such fraud, which may be substantial, a loss of confidence in our controls may seriously harm our business and damage our brand. As fraud detection and prevention abilities improve across the various industries in which we operate, we may implement risk control mechanisms that could make it more difficult for legitimate customers to obtain and use our products as well as prevent the sale of our products to those parties seeking to facilitate fraudulent activity, which could result in lost revenue and negatively impact our operating results.

Third parties claiming that we infringe their proprietary rights may cause us to incur significant legal expenses and prevent us from selling our products.

We may become increasingly subject to infringement claims, including patent, copyright, trade secret, and trademark infringement claims. Litigation may be necessary to determine the validity and scope of the intellectual property rights of others. We have received a number of allegations of intellectual property infringement claims in the past and expect to receive more claims in the future based on allegations that our offerings infringe upon the intellectual property held by third parties. Some of these claims are the subject of pending litigation against us and against some of our customers. These claims may involve patent holding companies or other adverse intellectual property owners who have no relevant product revenues of their own, and against whom our own intellectual property may provide little or no deterrence. The ultimate outcome of any allegation is uncertain and, regardless of outcome, any such claim, with or without merit, may be time consuming to defend, result in costly litigation, divert management’s time and attention from our business, require us to stop selling, delay shipping or redesign our products, or require us to pay monetary damages for royalty or licensing fees, or to satisfy indemnification obligations that we have with some of our customers. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims may harm our business.

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We rely on third party intellectual property in our products and services.

Many of our products and services include intellectual property of third parties, which we license under agreements that may need to be renewed or renegotiated from time to time. We may not be able to obtain licenses to these third party technologies or content on reasonable terms, or at all. If we are unable to obtain the rights necessary to use this intellectual property in our products and services, we may not be able to sell the affected offerings, and customers who are currently using the affected product may be disrupted, which may in turn harm our future financial results, damage our brand, and result in customer loss. Also, we and our customers have been and may continue to be subject to infringement claims as a result of the third party intellectual property incorporated in to our offerings. Although we try to mitigate this risk and we may not be ultimately liable for any potential infringement, pending claims require us to use significant resources, require management attention and could result in loss of customers.

Some of our offerings include third-party software that is licensed under so-called “open source” licenses, some of which may include a requirement that, under certain circumstances, we make available, or grant licenses to, any modifications or derivative works we create based upon the open source software. Although we have established internal review and approval processes to mitigate these risks, we may not be sure that all open source software is submitted for approval prior to use in our products. Many of the risks associated with usage of open source may not be eliminated, and may, if not properly addressed, harm our business.

Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our products, services, and brand.

Our patents, trademarks, trade secrets, copyrights and other intellectual property rights are important assets for us. We aggressively protect our intellectual property rights by relying on federal, state and common law rights in the U.S. and internationally, as well as a variety of administrative procedures. We also rely on contractual restrictions to protect our proprietary rights in products and services. The efforts that we take to protect our proprietary rights may not always be sufficient or effective. Protecting our intellectual property rights is costly and time consuming and may not be successful in every location. Any significant impairment of our intellectual property rights could harm our business, our brand and our ability to compete.

Policing unauthorized use and copying of our products is difficult, expensive, and time consuming. Current U.S. laws that prohibit copying give us only limited practical protection from software piracy and the laws of many other countries provide very little protection. We frequently encounter unauthorized copies of our software being sold through online marketplaces. Although we continue to evaluate and put in place technology solutions to attempt to lessen the impact of piracy and engage in efforts to educate consumers and public policy leaders on these issues and cooperate with industry groups in their efforts to combat piracy, we expect piracy to be a persistent problem that results in lost revenues and increased expenses.

Because competition for our key employees is intense, we may not be able to attract, retain and develop the highly skilled employees we need to support our planned growth.

Much of our future success depends on the continued service and availability of skilled personnel, including members of our executive team, and those in technical, marketing and staff positions. Experienced personnel in the software, mobile technologies, data science, data security, and software as a service industries are in high demand and competition for their talents is intense, especially in California and India, where the majority of our employees are located. Also, as we strive to continue to adapt to technological change and introduce new and enhanced products and business models, we must be able to secure, maintain and develop the right quality and quantity of engaged and committed talent. Although we strive to be an employer of choice, we may not be able to continue to successfully attract, retain and develop key personnel which may cause our business to suffer.

As our product and service offerings become more tightly integrated, we may be required to recognize the related revenue over relatively longer periods of time.

Our expanding range of products and services, and the combinations in which we offer them, generate different revenue streams than our traditional desktop software businesses, and the accounting policies that apply to revenue from these offerings are complex. For example, as we offer more online services bundled with software products, we may be required to defer a higher percentage of our software product revenue into future fiscal periods. In addition, as we offer more services on a subscription basis, we recognize revenue from those services over the periods in which the services are provided. This may result in significant shifts of revenue from quarter to quarter, or from one fiscal year to the next.

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The nature of our products and services necessitates timely product launches, and if we experience significant product quality problems or delays, it may harm our revenue, earnings and reputation.

All of our tax products and many of our non-tax products have rigid development timetables that increase the risk of errors in our products and the risk of launch delays. Our tax preparation software product development cycle is particularly challenging due to the need to incorporate unpredictable tax law and tax form changes each year and because our customers expect high levels of accuracy and a timely launch of these products to prepare and file their taxes by the tax filing deadline. Due to the complexity of our products and the condensed development cycles under which we operate, our products sometimes contain glitches that may unexpectedly interfere with the operation of the software. The complexity of our products may also make it difficult for us to consistently deliver offerings that contain the features, functionality and level of accuracy that our customers expect. When we encounter problems we may be required to modify our code, distribute patches to customers who have already purchased the product and recall or repackage existing product inventory in our distribution channels. If we encounter development challenges or discover errors in our products late in our development cycle it may cause us to delay our product launch date. Any major defects or launch delays may lead to loss of customers and revenue, negative publicity, customer and employee dissatisfaction, reduced retailer shelf space and promotions, and increased operating expenses, such as inventory replacement costs, legal fees or payments resulting from our commitment to reimburse penalties and interest paid by customers due solely to calculation errors in our consumer tax preparation products.

Our businesses are highly seasonal and our quarterly results could fluctuate significantly.

Historically, several of our businesses have been highly seasonal and this has caused significant fluctuations in our quarterly financial results. Due to the timing of annual product releases, revenue from our QuickBooks desktop software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated from November through April. These seasonal patterns mean that our total revenue is usually highest during the second and third fiscal quarters ending January 31 and April 30. We typically experience lower revenues, and operating losses, in the first and fourth fiscal quarters ending October 31 and July 31. Although in the longer term we expect the seasonality of certain of our businesses to diminish due to our decision to deliver ongoing releases for our future desktop offerings and due to increasing customer preference for online and subscription versions of our offerings, we expect the seasonality of certain other businesses, particularly our consumer tax business, to continue. In the near term we expect the seasonality of our overall business to continue. Our financial results may also fluctuate from quarter to quarter and year to year due to a variety of factors, including factors that may affect the timing of revenue recognition. These include changes to our offerings that result in the inclusion or exclusion of ongoing services; changes in product pricing strategies or product sales mix; the timing of the availability of federal and state tax forms from taxing agencies and the ability of those agencies to receive electronic tax return submissions; changes in consumer behavior; and the timing of our discontinuation of support for older product offerings. Other factors that may affect our quarterly or annual financial results include the timing of acquisitions, divestitures, and goodwill and acquired intangible asset impairment charges. Any fluctuations in our operating results may adversely affect our stock price.

We are frequently a party to litigation and regulatory inquiries which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operation and cash flows.

We are subject to various legal proceedings, claims and regulatory inquiries that have arisen out of the ordinary conduct of our business and are not yet resolved and additional claims and inquiries may arise in the future. The number and significance of these claims and inquiries have increased as our businesses have evolved. Any proceedings, claims or inquiries initiated by or against us, whether successful or not, may be time consuming; result in costly litigation, damage awards, consent decrees, injunctive relief or increased costs of business; require us to change our business practices or products; require significant amounts of management time; result in diversion of significant operations resources; or otherwise harm our business and future financial results. For further information about specific litigation, see Part II, Item 1, “Legal Proceedings.”

Adverse global economic conditions could harm our business and financial condition.

The onset or continuation of adverse macroeconomic developments could negatively affect our business and financial condition. Adverse global economic events have caused, and could, in the future, cause disruptions and volatility in global financial markets and increased rates of default and bankruptcy, and could impact consumer and small business spending. In particular, because the majority of our revenue is derived from sales within the U.S., economic conditions in the U.S. have an even greater impact on us than companies with a more diverse international presence. Challenging economic times could cause potential new customers not to purchase or to delay purchasing of our products and services, and could cause our existing customers to discontinue purchasing or delay upgrades of our existing products and services, thereby negatively impacting our revenues and future financial results. Decreased consumer spending levels could also reduce credit and debit card transaction processing volumes causing reductions in our payments revenue. Poor economic conditions and high unemployment have caused, and could in the future cause, a significant decrease in the number of tax returns filed, which may have a significant

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effect on the number of tax returns we prepare and file. In addition, weakness in the end-user consumer and small business markets could negatively affect the cash flow of our distributors and resellers who could, in turn, delay paying their obligations to us, which could increase our credit risk exposure and cause delays in our recognition of revenue or future sales to these customers. Any of these events could harm our business and our future financial results.

We regularly invest resources to update and improve our internal information technology systems and software platforms. Should our investments not succeed, or if delays or other issues with new or existing internal technology systems and software platforms disrupt our operations, our business could be harmed.

We rely on our network and data center infrastructure and internal technology systems for many of our development, marketing, operational, support, sales, accounting and financial reporting activities. We are continually investing resources to update and improve these systems and environments in order to meet existing, as well as the growing and changing requirements of our business and customers. If we experience prolonged delays or unforeseen difficulties in updating and upgrading our systems and architecture, we may experience outages and may not be able to deliver certain offerings and develop new offerings and enhancements that we need to remain competitive. Such improvements and upgrades are often complex, costly and time consuming. In addition such improvements can be challenging to integrate with our existing technology systems, or may uncover problems with our existing technology systems. Unsuccessful implementation of hardware or software updates and improvements could result in outages, disruption in our business operations, loss of revenue or damage to our reputation.

Our international operations are subject to increased risks which may harm our business, operating results, and financial condition.

In addition to uncertainty about our ability to generate revenues from our foreign operations and expand into international markets, there are risks inherent in doing business internationally, including:

• trade barriers and changes in trade regulations;

• difficulties in developing, staffing, and simultaneously managing a large number of varying foreign operations as a result of distance, language, and cultural differences;

• stringent local labor laws and regulations;

• credit risk and higher levels of payment fraud;

• profit repatriation restrictions, and foreign currency exchange restrictions;

• political or social unrest, economic instability, repression, or human rights issues;

• geopolitical events, including natural disasters, acts of war and terrorism;

• import or export regulations;

• compliance with U.S. laws such as the Foreign Corrupt Practices Act, and local laws prohibiting corrupt payments to government officials;

• antitrust and competition regulations;

• potentially adverse tax developments;

• economic uncertainties relating to European sovereign and other debt;

• different, uncertain or more stringent user protection, data protection, privacy and other laws; and

• risks related to other government regulation or required compliance with local laws.

Violations of the complex foreign and U.S. laws and regulations that apply to our international operations may result in fines, criminal actions or sanctions against us, our officers or our employees, prohibitions on the conduct of our business and damage to our reputation. Although we have implemented policies and procedures designed to promote compliance with these laws, there can be no assurance that our employees, contractors or agents will not violate our policies. These risks inherent in our international operations and expansion increase our costs of doing business internationally and may result in harm to our business, operating results, and financial condition.

If actual product returns exceed returns reserves, our future financial results may be harmed.

We ship more desktop software products to our distributors and retailers than we expect them to sell, in order to reduce the risk that distributors or retailers may run out of products. This is particularly true for our Consumer Tax products, which have a short selling season and for which returns occur primarily in our fiscal third and fourth quarters. Like many software companies

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that sell their products through distributors and retailers, we have historically accepted significant product returns. We establish reserves against revenue for product returns in our financial statements based on estimated returns and we closely monitor product sales and inventory in the retail channel in an effort to maintain adequate reserves. In the past, returns have not differed significantly from these reserves. However, if we experience actual returns that significantly exceed reserves, it may result in lower net revenue.

Unanticipated changes in our income tax rates may affect our future financial results.

Our future effective income tax rates may be favorably or unfavorably affected by unanticipated changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws or their interpretation. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. These continuous examinations may result in unforeseen tax-related liabilities, which may harm our future financial results.

Amortization of acquired intangible assets and impairment charges may cause significant fluctuation in our net income.

Our acquisitions have resulted in significant expenses, including amortization and impairment of acquired technology and other acquired intangible assets, and impairment of goodwill. Total costs and expenses in these categories were approximately $46 million in fiscal 2014, $99 million in fiscal 2013, and $33 million in fiscal 2012. Although under current accounting rules goodwill is not amortized, we may incur impairment charges related to the goodwill already recorded and to goodwill arising out of future acquisitions. We test the impairment of goodwill annually in our fourth fiscal quarter or more frequently if indicators of impairment arise. The timing of the formal annual test may result in charges to our statement of operations in our fourth fiscal quarter that may not have been reasonably foreseen in prior periods. The total costs and expenses for fiscal 2013 included goodwill and intangible asset impairment charges of $46 million that reduced the carrying value of our Intuit Health goodwill and intangible assets to zero. We completed the sale of that business in the first quarter of fiscal 2014. At October 31, 2014, we had $1.6 billion in goodwill and $186 million in net acquired intangible assets on our balance sheet, both of which may be subject to impairment charges in the future. New acquisitions, and any impairment of the value of acquired intangible assets, may have a significant negative impact on our future financial results.

Our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions.

We have acquired and may continue to acquire companies, products and technologies that complement our strategic direction. Acquisitions involve significant risks and uncertainties, including:

• inability to successfully integrate the acquired technology and operations into our business and maintain uniform standards, controls, policies, and procedures;

• inability to realize synergies expected to result from an acquisition;

• disruption of our ongoing business and distraction of management;

• challenges retaining the key employees, customers, resellers and other business partners of the acquired operation;

• the internal control environment of an acquired entity may not be consistent with our standards and may require significant time and resources to improve;

• unidentified issues not discovered in our due diligence process, including product or service quality issues, intellectual property issues and legal contingencies;

• failure to successfully further develop an acquired business or technology and any resulting impairment of amounts currently capitalized as intangible assets;

• in the case of foreign acquisitions and investments, the impact of particular economic, tax, currency, political, legal and regulatory risks associated with specific countries.

We have divested and may in the future divest certain assets or businesses that no longer fit with our strategic direction or growth targets. Divestitures involve significant risks and uncertainties, including:

• inability to find potential buyers on favorable terms;

• failure to effectively transfer liabilities, contracts, facilities and employees to buyers;

• requirements that we retain or indemnify buyers against certain liabilities and obligations in connection with any such divestiture;

• the possibility that we will become subject to third-party claims arising out of such divestiture;

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• challenges in identifying and separating the intellectual properties to be divested from the intellectual properties that we wish to retain;

• inability to reduce fixed costs previously associated with the divested assets or business;

• challenges in collecting the proceeds from any divestiture;

• disruption of our ongoing business and distraction of management;

• loss of key employees who leave the Company as a result of a divestiture;

• if customers or partners of the divested business do not receive the same level of service from the new owners, our other businesses may be adversely affected, to the extent that these customers or partners also purchase other products offered by us or otherwise conduct business with our retained business.

Because acquisitions and divestitures are inherently risky, our transactions may not be successful and may, in some cases, harm our operating results or financial condition. Although we typically fund our acquisitions through cash available from operations, if we were to use debt to fund acquisitions or for other purposes, our interest expense and leverage would increase significantly, and if we were to issue equity securities as consideration in an acquisition, current shareholders’ percentage ownership and earnings per share would be diluted.

We have $500 million in debt outstanding and may incur other debt in the future, which may adversely affect our financial condition and future financial results.

In fiscal 2007 we issued $500 million in senior unsecured notes due in March 2012 and $500 million in senior unsecured notes due in March 2017. We repaid the March 2012 notes when they became due using cash from operations. As the March 2017 debt matures, we will have to expend significant resources to either repay or refinance these notes. If we decide to refinance the notes, we may be required to do so on different or less favorable terms or we may be unable to refinance the notes at all, both of which may adversely affect our financial condition.

We have also entered into a $500 million five-year revolving credit facility. Although we have no current plans to request any advances under this credit facility, we may use the proceeds of any future borrowing for general corporate purposes, including future acquisitions.

This debt may adversely affect our financial condition and future financial results by, among other things:

• increasing our vulnerability to downturns in our business, to competitive pressures and to adverse economic and industry conditions;

• requiring the dedication of a portion of our expected cash from operations to service our indebtedness, thereby reducing the amount of expected cash flow available for other purposes, including capital expenditures and acquisitions; and

• limiting our flexibility in planning for, or reacting to, changes in our businesses and our industries.

Our current revolving credit facility imposes restrictions on us, including restrictions on our ability to create liens on our assets and the ability of our subsidiaries to incur indebtedness, and require us to maintain compliance with specified financial ratios. Our ability to comply with these ratios may be affected by events beyond our control. In addition, our short- and long-term debt includes covenants that may adversely affect our ability to incur certain liens or engage in certain types of sale and leaseback transactions. If we breach any of the covenants under our short- and long-term debt or our revolving credit facility and do not obtain a waiver from the lenders, then, subject to applicable cure periods, any outstanding indebtedness may be declared immediately due and payable.

In addition, changes by any rating agency to our credit rating may negatively impact the value and liquidity of both our debt and equity securities. If our credit ratings are downgraded or other negative action is taken, the interest rate payable by us under our revolving credit facility may increase. In addition, any downgrades in our credit ratings may affect our ability to obtain additional financing in the future and may affect the terms of any such financing.

We are subject to risks associated with information disseminated through our services.

The laws relating to the liability of online services companies for information such as online content disseminated through their services are subject to frequent challenges. In spite of settled law in the U.S., claims are made against online services companies by parties who disagree with the content. Where our online content is accessed on the internet outside of the U.S., challenges may be brought under foreign laws which do not provide the same protections for online services companies as in the U.S. These challenges in either U.S. or foreign jurisdictions may rise to legal claims alleging defamation, libel, invasion of privacy, negligence, copyright or trademark infringement, or other theories based on the nature and content of the materials

43

disseminated through the services. Certain of our services include content generated by users of our online services. Although this content is not generated by us, claims of defamation or other injury may be made against us for that content. Any costs incurred as a result of this potential liability may harm our business.

Our stock price may be volatile and your investment could lose value.

Our stock price is subject to changes in recommendations or earnings estimates by financial analysts, changes in investors' or analysts' valuation measures for our stock, our credit ratings and market trends unrelated to our performance. Furthermore, speculation in the press or investment community about our strategic position, financial condition, results of operations, business or security of our products, can cause changes in our stock price. These factors, as well as general economic and political conditions and the timing of announcements in the public market regarding new products, product enhancements or technological advances by our competitors or us, and any announcements by us of acquisitions, major transactions, or management changes may adversely affect our stock price. Further, any changes in the amounts or frequency of share repurchases or dividends may also adversely affect our stock price. A significant drop in our stock price could expose us to the risk of securities class actions lawsuits, which may result in substantial costs and divert management's attention and resources, which may adversely affect our business.

Our business depends on our strong reputation and the value of our brands.

Developing and maintaining awareness of our brands is critical to achieving widespread acceptance of our existing and future products and services and is an important element in attracting new customers. Adverse publicity (whether or not justified) relating to events or activities attributed to us, our employees or agents may tarnish our reputation and reduce the value of our brands. Damage to our reputation and loss of brand equity may reduce demand for our products and services and thus have an adverse effect on our future financial results, as well as require additional resources to rebuild our reputation and restore the value of the brands.

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ITEM 2

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Stock repurchase activity during the three months ended October 31, 2014 was as follows:

Period	Total Number of Shares Purchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans
August 1, 2014 through August 31, 2014	—	$	—	—	$	1,870,088,800
September 1, 2014 through September 30, 2014	1,037,522	$	86.41	1,037,522	$	1,780,436,914
October 1, 2014 through October 31, 2014	280,700	$	85.04	280,700	$	1,756,565,937
Total	1,318,222	$	86.12	1,318,222

Note: All of the shares purchased as part of publicly announced plans during the three months ended October 31, 2014 were purchased under a plan we announced on August 19, 2013 under which we were authorized to repurchase up to $2 billion of our common stock from time to time over a four-year period ending on August 19, 2017. At October 31, 2014, authorization from our Board of Directors to expend up to $1.8 billion remained available under that plan.

ITEM 6

EXHIBITS

See the Exhibit Index immediately following the signature page of this Quarterly Report on Form 10-Q.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		INTUIT INC. (Registrant)
Date:	November 21, 2014	By:	/s/ R. NEIL WILLIAMS
			R. Neil Williams
			Senior Vice President and Chief Financial Officer (Authorized Officer and Principal Financial Officer)

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EXHIBIT INDEX

Exhibit Number	Exhibit Description	Filed Herewith	Incorporated by Reference
10.01+	Intuit Inc. Amended and Restated 2005 Equity Incentive Plan Grant Agreement - Restricted Stock Unit (Performance-Based Vesting QBO Subscriptions)	X
31.01	Certification of Chief Executive Officer	X
31.02	Certification of Chief Financial Officer	X
32.01*	Section 1350 Certification (Chief Executive Officer)	X
32.02*	Section 1350 Certification (Chief Financial Officer)	X
101.INS	XBRL Instance Document	X
101.SCH	XBRL Taxonomy Extension Schema	X
101.CAL	XBRL Taxonomy Extension Calculation Linkbase	X
101.LAB	XBRL Taxonomy Extension Label Linkbase	X
101.PRE	XBRL Taxonomy Extension Presentation Linkbase	X
101.DEF	XBRL Taxonomy Extension Definition Linkbase	X

________________________________

+	Indicates a management contract or compensatory plan or arrangement.
*	This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.

47

EX-10.01

Exhibit 10.01

Award No. «GrantNumber»

INTUIT INC. AMENDED AND RESTATED 2005 EQUITY INCENTIVE PLAN GRANT AGREEMENT

Restricted Stock Unit

(Performance-Based Vesting: QuickBooks Online Subscriptions)

Intuit Inc., a Delaware corporation (“Intuit” or the “Company”), hereby grants you a restricted stock unit award (“Award”) pursuant to the Company’s Amended and Restated 2005 Equity Incentive Plan (the “Plan”), of the Company’s common stock, $0.01 par value per share (“Common Stock”). The maximum number of Shares that are subject to the Award and may be earned by you (“Target Shares”) is set forth below. All capitalized terms in this Grant Agreement (“Agreement”) that are not defined herein have the meanings given to them in the Plan. This Award is subject to the terms and conditions of the Plan, which is incorporated herein by reference. This Agreement is not meant to interpret, extend, or change the Plan in any way, or to represent the full terms of the Plan. If there is any discrepancy, conflict or omission between this Agreement and the provisions of the Plan, the provisions of the Plan will apply.

Name of Participant:

Address:

Target Shares:

Date of Grant:October 29, 2014

Vesting Date: September 1, 2015

Vesting Based on Achievement of Threshold Performance and QBO Subscription Goals.

(a) Threshold OperatingIncome Goal: This Award will be eligible to vest only if the goal of [*] (“Threshold Goal”) is achieved and is certified by the Compensation and Organizational Development Committee (the “Committee”). “Operating Income” will be calculated consistent with the Company’s definition, which is based on GAAP financial measures. If the Threshold Goal is not achieved and/or certified by the Committee, this Award will immediately terminate and you will not be entitled to receive Shares.

(b) QBO SubscriptionGoal: If the Threshold Goal is achieved and certified by the Committee, then you will have the opportunity to vest in this Award based on Intuit’s level of achievement of the QuickBooks Online subscription goals set forth on Exhibit A (the “QBO Goals”). Actual performance against the QBO Goals is measured over the period beginning on August 1, 2014 and ending on July 31, 2015 (the “Performance Period”) and must be certified by the Compensation and Organizational Development Committee (“Committee”) in order for any portion of this Award to vest. The Committee will certify the results of the QBO Goals as soon as reasonably possible (the date of such certification the “Certification Date”) after the Performance Period. Any portion of this Award that is eligible to vest based on the Committee’s certification will vest on the Vesting Date. Any portion of this Award that is not eligible to vest based on the Committee’s certification will terminate on the Certification Date. Notwithstanding the foregoing, Sections 1(c) through 1(f) provide certain circumstances in which you may vest in this Award before the Vesting Date and/or without certification of the QBO Goals by the Committee. If any of Sections 1(c) through 1(f) apply, then any portion of the Award that does not vest pursuant to those sections will terminate.

1. In the event of your Termination before the Vesting Date, the following provisions will govern the vesting of this Award:

(a) Termination Generally. In the event of your Termination before the Vesting Date for any reason other than as expressly set forth in the other subsections of this Section 1, including, without limitation, your Termination by the Company for Cause or your resignation for Good Reason (each as defined in Section 1(d)), this Award will terminate without having vested as to any of the Shares and you will have no right or claim to anything under this Award.

(b) Retirement. In the event of your Retirement before the Vesting Date, a pro rata portion of this Award will vest on the Vesting Date based on the achievement of the Threshold Goal and actual level of achievement of the QBO Goals, as certified by the Committee. The pro rata portion will be a percentage equal to your number of full months of service since the first date of the Performance Period divided by twelve months, rounded down to the nearest whole Share. Shares will be distributed to you at the same time as other Participants after the Vesting Date. “Retirement” means the Termination of your employment with the Company after you have reached age

1

fifty-five (55) and completed ten full years of consecutive service with the Company (including any parent or Subsidiary).

(c) Death or Disability. In the event of your death or Disability before the Vesting Date, and after you have been actively employed by the Company for one year or more, this Award will vest immediately as to 100% of the Target Shares on your Termination Date. “Disability” is defined in Section 27(i) of the Plan.

(d) Involuntary Termination. In the event of your Involuntary Termination before the Vesting Date, a pro rata portion of this Award will vest immediately on your Termination Date based on the Target Shares. The pro rata portion will be a percentage equal to your number of full months of service since the first date of the Performance Period divided by twelve months, rounded down to the nearest whole Share. Shares will be distributed to you as soon as reasonably possible after the effective date of a waiver and general release of claims executed by you in favor of the Company and certainrelated persons determined by the Company in the form presented by the Company (“Release”). If you do not execute the Release within forty-five (45) days following your Termination Date, then you will not be entitled to the receipt of any Shares under this Section 1(d). Involuntary Termination means, for purposes of this Agreement, either (A) your Termination by the Company without Cause, or (B) your resignation for Good Reason. “Cause” means, for purposes of this Agreement, (i) gross negligence or willful misconduct in the performance of your duties to the Company (other than as a result of a Disability) that has resulted or is likely to result in material damage to the Company, after a written demand for substantial performance is delivered to you by the Chief Executive Officer which specifically identifies the manner in which you have not substantially performed your duties and you have been provided with a reasonable opportunity of not less than 30 days to cure any alleged gross negligence or willful misconduct; (ii) commission of any act of fraud with respect to the Company; or (iii) conviction of a felony or a crime involving moral turpitude. No act or failure to act by you will be considered “willful” if done or omitted by you in good faith with reasonable belief that your action or omission was in the best interests of the Company. “Good Reason” means, for the purposes of this Agreement, your resignation within sixty (60) days after the occurrence any of the following events without your consent: (i) a material reduction in your duties that is inconsistent with your position at the time of the Date of Grant, (ii) any material reduction in your base annual salary or target annual bonus (other than in connection with a general decrease in the salary or target bonuses for all officers of Intuit), or (iii) a requirement by Intuit that you relocate your principal office to a facility more than 50 miles from your principal office on the Date of Grant; provided however, that with regard to (i) through (iii) you must provide Intuit with written notice of the event allegedly constituting “Good Reason,” and Intuit will have 15 days from the date it receives such written notice to cure such event. Notwithstanding anything in this Section 1(d) to the contrary, if you are a “covered employee” under Section 162(m)(3) of the Internal Revenue Code of 1986, as amended (the “Code”) either on the Date of Grant or at any time during the Performance Period, then your Award will not be treated as described above in this Section 1(d), but instead, a pro rata portion of this Award will vest on the Vesting Date based on the achievement of the Threshold Goal and actual level of achievement of the QBO Goals, as certified by the Committee. The pro rata portion will be a percentage equal to your number of full months of service since the first date of the Performance Period divided by twelve months, rounded down to the nearest whole Share. Shares will be distributed to you at the same time as other Participants after the Vesting Date, provided that the Release has become effective. If you do not execute the Release before the time that Shares are distributed to other Participants, then you will not be entitled to the receipt of any Shares under this Section 1(d).

(e) Termination on or Within One Year After Corporate Transaction. In the event of your Involuntary Termination (including your Termination without Cause by the Company’s successor) on or within one year following the date of a Corporate Transaction and before the Vesting Date, this Award will vest immediately on your Termination Date as to a pro rata portion of the Target Shares. The pro rata portion will be a percentage equal to your number of full months of service since the first date of the Performance Period divided by twelve months, rounded down to the nearest whole Share.

(f) Corporate Transaction. In the event of a Corporate Transaction before the Vesting Date, the Threshold Goal will be deemed to be achieved and the QBO Goals will be deemed to be achieved at 100% of the Target level as set forth in Exhibit A. The Vesting Date still will apply, and Shares will be distributed as soon as reasonably possible after the Vesting Date. For avoidance of doubt, this provision is intended to result in you earning the Target Shares, without Committee certification, provided that you are employed on the Vesting Date following a Corporate Transaction. In the event of an intervening Termination before the Vesting Date, the applicable provisions of Sections 1(a) through 1(e) will govern.

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(g) Recoupment. In the event that the Company issues a restatement of its financial results after the distribution of Shares, which restatement either (i) causes the Threshold Goal not to be achieved or (ii) decreases the level of achievement of the QBO Goals from the level(s) previously certified by the Committee, then you will be required to deliver to the Company, within 30 days after your receipt of written notification by the Company, an amount in cash or equivalent value in Shares (or a combination of the two) equal to the net proceeds realized by you on the issuance and, if applicable, subsequent sale of any Shares that would not have vested or been issued based on the restated financial results. This section 1(g) only will apply to you if it is determined by the Committee in good faith that fraud or misconduct engaged in by you (directly or indirectly) was a significant contributing factor to this restatement of financial results.

2. Issuance of Shares. Except as described in the next sentence, Shares will be distributed as soon as reasonably possible after the Vesting Date (but in no event later than March 15th after the calendar year in which the Vesting Date occurs). In the event of a Termination pursuant to Sections 1(c) through 1(e) (other than with respect to a “covered employee” under Section 1(d)), Shares will be distributed as soon as reasonably possible after the Termination Date or, if later, the date that the Release becomes effective in accordance with Section 1(d) (but in no event later than March 15th after the calendar year in which the Termination Date or the effective date of the Release occurs). Until the date the Shares are issued to you, you will have no rights as a stockholder of the Company.

3. Rights as a Stockholder; Dividend Equivalent Rights. You shall have no voting or other rights as a stockholder with respect to the Shares of Common Stock underlying the Award until such Shares of Common Stock have been issued to you. Notwithstanding the preceding sentence, you shall be entitled to receive payment of the equivalent of any and all dividends declared by the Company on its Common Stock on each date on which dividends are paid on and after the date of grant of the Award in an amount equal to the amount of such dividends multiplied by the number of Shares of Common Stock underlying the then outstanding portion of the Award. These dividend equivalents shall be paid upon the later of (a) the date dividends are paid to the common stockholders of the Company, or (b) the date the Restricted Stock Units with respect to which such dividend equivalents are payable become vested (it being understood that no dividend equivalents will be paid with respect to Shares underlying any Restricted Stock Units that do not vest, but that dividend equivalent rights equal to the dividends declared on the Company’s Common Stock from and after the date of grant of the unvested Restricted Stock Units shall be paid as and when such Restricted Stock Units vest).

4. Withholding Taxes. This Award is generally taxable for purposes of United States federal income and employment taxes on vesting based on the Fair Market Value on the Vesting Date. To the extent required by applicable federal, state or other law, you will make arrangements satisfactory to the Company for the payment and satisfaction of any income tax, social security tax, payroll tax, payment on account or other tax related to withholding obligations that arise under this Award and, if applicable, any sale of Shares. The Company will not be required to issue Shares pursuant to this Award or to recognize any purported transfer of Shares until such obligations are satisfied. Unless otherwise agreed to by the Company and you, these obligations will be satisfied by the Company withholding a number of Shares that would otherwise be issued under this Award that the Company determines has a Fair Market Value sufficient to meet the tax withholding obligations. “Fair Market Value” is defined in Section 27(l) of the Plan.

You are ultimately liable and responsible for all taxes owed by you in connection with this Award, regardless of any action the Company takes or any transaction pursuant to this section with respect to any tax withholding obligations that arise in connection with this Award. The Company makes no representation or undertaking regarding the treatment of any tax withholding in connection with the grant, issuance, vesting or settlement of this Award or the subsequent sale of any of the Shares. The Company does not commit and is under no obligation to structure this Award to reduce or eliminate your tax liability.

5. Disputes. Any question concerning the interpretation of this Agreement, any adjustments to made thereunder, and any controversy that may arise under this Agreement, will be determined by the Committee in accordance with its authority under Section 4 of the Plan. Such decision by the Committee will be final and binding.

6. Other Matters.

(a) The Award granted to an employee in any one year, or at any time, does not obligate the Company or any Subsidiary or other affiliate of the Company to grant an award in any future year or in any given amount and should not create an expectation that the Company (or any Subsidiary or other affiliate) might grant an award in any future year or in any given amount.

3

(b) Nothing contained in this Agreement creates or implies an employment contract or term of employment or any promise of specific treatment on which you may rely.

(c) Notwithstanding anything to the contrary in this Agreement, the Company may reduce your Award if you change classification from a full-time employee to a part-time employee.

(d) This Award is not part of your employment contract (if any) with the Company, your salary, your normal or expected compensation, or other remuneration for any purposes, including for purposes of computing benefits, severance pay or other termination compensation or indemnity.

(e) Because this Agreement relates to terms and conditions under which you may be issued Shares of Common Stock of Intuit Inc., a Delaware corporation, an essential term of this Agreement is that it will be governed by the laws of the State of Delaware, without regard to choice of law principles of Delaware or other jurisdictions. Any action, suit, or proceeding relating to this Agreement or the Award granted hereunder will be brought in the state or federal courts of competent jurisdiction in Santa Clara County in the State of California.

(f) This Award, and any issuance of Shares thereunder, is intended to comply and will be interpreted in accordance with Section 409A of the Code.

This Agreement (including the Plan, which is incorporated by reference) constitutes the entire agreement between you and the Company with respect to this Award, and supersedes all prior agreements or promises with respect to the Award. Except as provided in the Plan, this Agreement may be amended only by a written document signed by the Company and you. Subject to the terms of the Plan, the Company may assign any of its rights and obligations under this Agreement, and this Agreement will be binding on, and inure to the benefit of, the successors and assigns of the Company. Subject to the restrictions on transfer of an Award described in Section 13 of the Plan, this Agreement will be binding on your permitted successors and assigns (including heirs, executors, administrators and legal representatives). All notices required under this Agreement or the Plan must be mailed or hand-delivered, (1) in the case of the Company, to the Company at 2632 Marine Way, Mountain View, CA, 94043, or at such other address designated in writing by the Company to you, and (2) in the case of you, at the address recorded in the books and records of the Company as your then current home address.

4

The Company has signed this Award Agreement effective as the Date of Grant.

INTUIT INC.

By: /s/ Brad D. Smith

Brad D. Smith, President and Chief Executive Officer

5

EX-31.01

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO

EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

I, Brad D. Smith, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Intuit Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 21, 2014

By:     /s/ Brad D. Smith

Brad D. Smith

President and Chief Executive Officer

(Principal Executive Officer)

EX-31.02

Exhibit 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO

EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

I, R. Neil Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Intuit Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: November 21, 2014

By:     /s/ R. NEIL WILLIAMS

R. Neil Williams

Senior Vice President and Chief Financial Officer

(Principal Financial Officer)

EX-32.01

Exhibit 32.01

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Intuit Inc. (the “Company”) on Form 10-Q for the quarter ended October 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Brad D. Smith, President and Chief Executive Officer of the Company, certifies pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ BRAD D. SMITH

Brad D. Smith

President and Chief Executive Officer

Date: November 21, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.02

Exhibit 32.02

Certification Pursuant to 18 U.S.C. Section 1350,

As Adopted Pursuant to

Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Intuit Inc. (the “Company”) on Form 10-Q for the quarter ended October 31, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), R. Neil Williams, Senior Vice President and Chief Financial Officer of the Company, certifies pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ R. Neil Williams

R. Neil Williams

Senior Vice President and Chief Financial Officer

Date: November 21, 2014

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Current Liabilities (Details) (USD $)	0 Months Ended
	Feb. 17, 2012
Current Liabilities (Textuals)
Unsecured revolving credit facility	$ 500,000,000
Line of Credit New [Member]
Current Liabilities (Textuals)
Maximum ratio of debt to annual earnings before interest, taxes, depreciation and amortization as per agreement	3.25
Minimum ratio of annual earnings before interest, taxes, depreciation and amortization to interest payable as per agreement	3.00
Line of Credit [Member] | Minimum [Member] | JP Morgan Alternate Base [Member]
Current Liabilities (Textuals)
Basis spread on variable rate	0.00%
Line of Credit [Member] | Minimum [Member] | LIBOR [Member]
Current Liabilities (Textuals)
Basis spread on variable rate	0.90%
Line of Credit [Member] | Maximum [Member] | JP Morgan Alternate Base [Member]
Current Liabilities (Textuals)
Basis spread on variable rate	0.50%
Line of Credit [Member] | Maximum [Member] | LIBOR [Member]
Current Liabilities (Textuals)
Basis spread on variable rate	1.50%

XML

Segment Information (Tables)

3 Months Ended

Oct. 31, 2014

Segment Reporting [Abstract]

Financial results 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 and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Net revenue:
Small Business segment	$	548		$	520
Consumer segment:
Consumer Tax	57			42
Consumer Ecosystem	31			35
Total Consumer segment	88			77
Professional Tax segment	36			25
Total net revenue	$	672		$	622
Operating loss from continuing operations:
Small Business segment	$	192		$	190
Consumer segment	(34		)	(24		)
Professional Tax segment	(3		)	(9		)
Total segment operating income	155			157
Unallocated corporate items:
Share-based compensation expense	(61		)	(47		)
Other common expenses	(192		)	(177		)
Amortization of acquired technology	(10		)	(6		)
Amortization of other acquired intangible assets	(6		)	(4		)
Total unallocated corporate items	(269		)	(234		)
Total operating loss from continuing operations	$	(114	)	$	(77	)

XML

Stockholders' Equity (Details) (USD $)	3 Months Ended														1 Months Ended
	Oct. 31, 2014		Oct. 31, 2013	Oct. 31, 2014 Stock Options [Member]	Oct. 31, 2014 Restricted Stock Units (RSUs) [Member]	Oct. 31, 2014 Cost of revenue [Member]	Oct. 31, 2013 Cost of revenue [Member]	Oct. 31, 2014 Selling and marketing [Member]	Oct. 31, 2013 Selling and marketing [Member]	Oct. 31, 2014 Research and development [Member]	Oct. 31, 2013 Research and development [Member]	Oct. 31, 2014 General and administrative [Member]	Oct. 31, 2013 General and administrative [Member]	Oct. 31, 2014 New Program [Member]	Nov. 21, 2014 Dividend Declared [Member]
Stockholders' Equity (Textuals)
Common stock repurchased (in shares)	1,300,000		17,600,000
Common stock repurchased, value	$ 114,000,000		$ 1,400,000,000
Stock Repurchase Program, Remaining Authorized Repurchase Amount														1,800,000,000
Common Stock, Dividends, Per Share, Cash Paid (in dollars per share)	$ 0.25
Payments of dividends	74,000,000		55,000,000
Dividends declared per common share (in dollars per share)	$ 0.25		$ 0.19												$ 0.25
Total share-based compensation expense
Allocated Share-based Compensation Expense	61,000,000		47,000,000			2,000,000	2,000,000	18,000,000	15,000,000	20,000,000	14,000,000	21,000,000	16,000,000
Income tax benefit	(19,000,000)		(15,000,000)
Increase in net loss from continuing operations	42,000,000		32,000,000
Increase in net loss per share:
Basic (dollars per share)	$ 0.15		$ 0.11
Diluted (dollars per share)	$ 0.15		$ 0.11
Share-based awards available for grant
Shares Available for Grant, Beginning Balance (in shares)	24,203,000
Options granted (in shares)	0
Restricted stock units granted (in shares)	(604,000)	[1]
Share-based awards canceled/forfeited/expired (in shares)	1,791,000	[1],[2]
Shares Available for Grant, Ending Balance (in shares)	25,390,000
Pool Shares Reduced For Each Share Granted (in shares)	2.3
Pool Shares Increased For Each Share Forfeited (in shares)	2.3
Summary of stock option activity
Number of shares, Beginning Balance (in shares)	10,938,000
Weighted average exercise price per share, Beginning Balance (in dollars per share)	$ 52.67
Options granted, number of shares (in shares)	0
Options granted, weighted average exercise price per share (in dollars per share)	$ 0.00
Options exercised, number of shares (in shares)	(1,085,000)
Options exercised, weighted average exercise price per share (in dollars per share)	$ 47.78
Options canceled or expired, number of shares (in shares)	(291,000)
Options canceled or expired, weighted average exercise price per share (in dollars per share)	$ 63.73
Number of shares, Ending Balance (in shares)	9,562,000
Weighted average exercise price per share, Ending Balance (in dollars per share)	$ 52.89
Exercisable (in shares)	5,252,000
Exercisable, Weighted average exercise price per share (in dollars per share)	$ 40.48
Summary of restricted stock unit activity
Nonvested at beginning of period (in shares)	9,455,000
Nonvested, Weighted Average Grant Date Fair Value, at beginning of period (in dollars per shares)	$ 62.46
Granted, Number of shares (in shares)	263,000
Granted, Weighted Average Grant Date Fair Value (in dollars per shares)	$ 82.98
Vested, Number of Shares (in shares)	(709,000)
Vested, Weighted Average Grant Date Fair Value (in dollars per shares)	$ 53.93
Forfeited, Number of Shares (in shares)	(718,000)
Forfeited, Weighted Average Grant Date Fair Value (in dollars per shares)	$ 55.31
Nonvested at end of period (in shares)	8,291,000
Nonvested, Weighted Average Grant Date Fair Value, at end of period (in dollars per shares)	$ 64.46
Unrecognized compensation cost related to non-vested share based compensation expense				$ 59,000,000	$ 349,000,000
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years				2 years 3 months 6 days	2 years 2 months 12 days

[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 increase the pool by 2.3 shares for each share forfeited.

[2] Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

XML

Fair Value Measurements

3 Months Ended

Oct. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.

The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:

• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.

• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.

• Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Assets:
Cash equivalents, primarily money market funds	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale debt securities:
Municipal bonds	—		647		—		647		—		701		—		701
Corporate notes	—		565		—		565		—		466		—		466
U.S. agency securities	—		10		—		10		—		42		—		42
Municipal auction rate securities	—		—		21		21		—		—		21		21
Total available-for-sale securities	—		1,222		21		1,243		—		1,209		21		1,230
Total assets measured at fair value on a recurring basis	$	431	$	1,222	$	21	$	1,674	$	652	$	1,209	$	21	$	1,882
Liabilities:
Senior notes (1)	$	—	$	550	$	—	$	550	$	—	$	556	$	—	$	556

______________________________

(1) Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Cash equivalents:
In cash and cash equivalents	$	248	$	—	$	—	$	248	$	507	$	—	$	—	$	507
In funds held for customers	183		—		—		183		145		—		—		145
Total cash equivalents	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale securities:
In investments	$	—	$	1,047	$	—	$	1,047	$	—	$	1,065	$	—	$	1,065
In funds held for customers	—		175		—		175		—		144		—		144
In long-term investments	—		—		21		21		—		—		21		21
Total available-for-sale securities	$	—	$	1,222	$	21	$	1,243	$	—	$	1,209	$	21	$	1,230

We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes, and U.S. agency securities. We measure the fair values of these assets with the help of a pricing service that either provides quoted market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant adjustments. Our fair value processes include controls that are designed to ensure that we record appropriate fair values for our Level 2 investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of pricing sources and models, review of key model inputs, analysis of period-over-period price fluctuations, and independent recalculation of prices where appropriate.

Financial liabilities whose fair values we measure using Level 2 inputs consist of debt. See Note 6, “Long-Term Obligations,” for more information. We measure the fair value of our senior notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms.

Financial assets whose fair values we measure using significant unobservable (Level 3) inputs consist of municipal auction rate securities that are no longer liquid. We estimate the fair values of these auction rate securities using a discounted cash flow model. We continue to classify them as long-term investments based on the maturities of the underlying securities at that date. We do not intend to sell our municipal auction rate securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.

There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the three months ended October 31, 2014.

XML

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classification on Balance Sheets (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014	Oct. 31, 2013	Jul. 31, 2013
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	$ 542	$ 849	$ 417	$ 1,009
Investments and funds, Fair Value	1,978	2,234
Total cash and cash equivalents, investments, and funds held for customers, Amortized Cost	1,977	2,233
Total cash and cash equivalents, investments, and funds held for customers, Fair Value	1,978	2,234
Cash and Cash Equivalents [Member]
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	542	849
Cash and Cash Equivalents, Fair Value Disclosure	542	849
Investments [Member]
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	1,046	1,064
Investments and funds, Fair Value	1,047	1,065
Funds held for customers [Member]
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	358	289
Investments and funds, Fair Value	358	289
Long-term investments [Member]
Cash and Cash Equivalents Items [Line Items]
Investments and funds, Amortized Cost	31	31
Investments and funds, Fair Value	$ 31	$ 31

XML

Fair Value Measurements (Details 1) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014
Cash and Cash Equivalents [Member]
Cash equivalents:
Total cash equivalents	$ 542	$ 849
Fair Value, Measurements, Recurring [Member] | Estimate of Fair Value Measurement [Member]
Cash equivalents:
Total cash equivalents	431	652
Available-for-sale securities:
Total available-for-sale securities	1,243	1,230
Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member] | Estimate of Fair Value Measurement [Member]
Cash equivalents:
Total cash equivalents	248	507
Fair Value, Measurements, Recurring [Member] | Cash equivalents in funds held for customers [Member] | Estimate of Fair Value Measurement [Member]
Cash equivalents:
Total cash equivalents	183	145
Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Investments [Member] | Estimate of Fair Value Measurement [Member]
Available-for-sale securities:
Total available-for-sale securities	1,047	1,065
Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Funds Held For Customers [Member] | Estimate of Fair Value Measurement [Member]
Available-for-sale securities:
Total available-for-sale securities	175	144
Fair Value, Measurements, Recurring [Member] | In long term investments [Member] | Estimate of Fair Value Measurement [Member]
Available-for-sale securities:
Total available-for-sale securities	21	21
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Cash equivalents:
Total cash equivalents	431	652
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member]
Cash equivalents:
Total cash equivalents	248	507
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Total cash equivalents	183	145
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Investments [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Funds Held For Customers [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | In long term investments [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Cash equivalents:
Total cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	1,222	1,209
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member]
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Investments [Member]
Available-for-sale securities:
Total available-for-sale securities	1,047	1,065
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Funds Held For Customers [Member]
Available-for-sale securities:
Total available-for-sale securities	175	144
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | In long term investments [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Cash equivalents:
Total cash equivalents	0	0
Available-for-sale securities:
Total available-for-sale securities	21	21
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash and Cash Equivalents [Member]
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Total cash equivalents	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Investments [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Available For Sale Debt Securities In Funds Held For Customers [Member]
Available-for-sale securities:
Total available-for-sale securities	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | In long term investments [Member]
Available-for-sale securities:
Total available-for-sale securities	$ 21	$ 21

XML

Cash and Cash Equivalents, Investments and Funds Held for Customers - Type of issue (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014	Oct. 31, 2013	Jul. 31, 2013
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	$ 542	$ 849	$ 417	$ 1,009
Available-for-sale securities:
Total cash and cash equivalents, investments, and funds held for customers	1,977	2,233
Available-for-sale securities, Fair Value Disclosure	1,978	2,234
Total cash and cash equivalents [Member]
Cash and Cash Equivalents Items [Line Items]
Cash and cash equivalents, Amortized Cost	725	994
Available-for-sale securities:
Available-for-sale securities, Fair Value Disclosure	725	994
Municipal bonds [Member]
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	647	700
Available-for-sale securities, Fair Value Disclosure	647	701
Corporate notes [Member]
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	564	466
Available-for-sale securities, Fair Value Disclosure	565	466
U.S. agency securities [Member]
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	10	42
Available-for-sale securities, Fair Value Disclosure	10	42
Municipal auction rate securities [Member]
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	21	21
Available-for-sale securities, Fair Value Disclosure	21	21
Total available-for-sale debt securities [Member]
Available-for-sale securities:
Available-for-sale debt securities, Amortized Cost Basis	1,242	1,229
Available-for-sale securities, Fair Value Disclosure	1,243	1,230
Other long-term investments [Member]
Available-for-sale securities:
Other long-term investments	10	10
Available-for-sale securities, Fair Value Disclosure	$ 10	$ 10

XML

Cash and Cash Equivalents, Investments and Funds Held for Customers - Classified by the stated maturity date (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014
Available-for-sale Securities, Debt Maturities
Due within one year, Amortized Cost	$ 399	$ 363
Due within one year, Fair Value	399	363
Due within two years, Amortized Cost	471	443
Due within two years, Fair Value	472	443
Due within three years, Amortized Cost	292	303
Due within three years, Fair Value	292	303
Due after three years, Amortized Cost	80	120
Due after three years, Fair Value	80	121
Total available-for-sale debt securities, Amortized Cost	1,242	1,229
Total available-for-sale debt securities, Fair Value	$ 1,243	$ 1,230

XML

Description of Business and Summary of Significant Accounting Policies

3 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies

Description of Business and Summary of Significant Accounting Policies

Description of Business

Intuit Inc. provides business and financial management solutions for small businesses, consumers, and accounting professionals. With flagship products and services that include QuickBooks, TurboTax, Quicken and Mint, we help customers solve important business and financial management problems such as running a small business, paying bills, filing income tax returns, and managing personal finances. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented.

On June 16, 2014 we acquired Check Inc. We have included the results of operations for this company in our consolidated results of operations from the date of acquisition.

As discussed in Note 4, we sold our Intuit Financial Services (IFS) and Intuit Health businesses in August 2013. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. Results for the three months ended October 31, 2014 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2015 or any other future period.

Seasonality

Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels.

Significant Accounting Policies

We describe our significant accounting policies in Note 1 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. See the discussion of changes to our policy for recognizing product revenue below. There have been no other changes to our significant accounting policies during the first three months of fiscal 2015.

Revenue Recognition - Product Revenue

Prior to fiscal 2015, we recognized revenue from the sale of our packaged software products when legal title transferred. This was generally when our customers downloaded products from the Web, when we shipped the products or, in the case of certain agreements, when products were delivered to retailers. Beginning in fiscal 2015, we began delivering ongoing releases for our future QuickBooks and Quicken desktop products and for our future Professional Tax solutions. As a result, revenue for these QuickBooks and Quicken offerings will be recognized as services are provided over approximately three years and revenue for our Professional Tax solutions will be recognized as services are provided over the tax year.

Use of Estimates

In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of reserves for product returns and rebates, the collectibility of accounts receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

All of the RSUs we grant have dividend rights. Since the dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per share.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

The following table presents the composition of shares used in the computation of basic and diluted net loss per share for the periods indicated.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Numerator:
Net loss from continuing operations	$	(84	)	$	(57	)
Net income from discontinued operations	—			46
Net loss	$	(84	)	$	(11	)
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding	286			288
Shares used in diluted per share amounts:
Weighted average common shares outstanding	286			288
Dilutive common equivalent shares from stock options
and restricted stock awards	—			—
Dilutive weighted average common shares outstanding	286			288
Basic and diluted net loss per share:
Basic net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Basic net income per share from discontinued operations	—			0.16
Basic net loss per share	$	(0.29	)	$	(0.04	)
Diluted net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Diluted net income per share from discontinued operations	—			0.16
Diluted net loss per share	$	(0.29	)	$	(0.04	)
Shares excluded from computation of diluted net loss per share:
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period	16			17
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect	2			3

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three months ended October 31, 2014 or October 31, 2013. No customer accounted for 10% or more of gross accounts receivable at October 31, 2014 or July 31, 2014.

Recent Accounting Pronouncements

ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”

In April 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures for discontinued operations and disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2015.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”

In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than is required under present U.S. GAAP. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is not permitted under U.S. GAAP. ASU 2014-09 allows adoption using either of two methods: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.

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Discontinued Operations (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		0 Months Ended	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Aug. 01, 2013 Intuit Financial Services [Member]	Oct. 31, 2013 Intuit Financial Services [Member]	Oct. 31, 2013 Intuit Health [Member]
Discontinued Operations (Textuals)
Gross proceeds from sale of business	$ 0	$ 1,025	$ 1,025
Net gain on disposal of business				36	10
Pre-tax gain (loss) on sale of discontinued operations	0	40			(4)
Tax effect on sale of discontinued operations					$ (14)

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Net revenue:
Product	$ 233	$ 229
Service and other	439	393
Total net revenue	672	622
Cost of revenue:
Cost of product revenue	34	29
Cost of service and other revenue	131	108
Amortization of acquired technology	10	6
Selling and marketing	281	258
Research and development	200	176
General and administrative	124	118
Amortization of other acquired intangible assets	6	4
Total costs and expenses	786	699
Operating loss from continuing operations	(114)	(77)
Interest expense	(7)	(8)
Interest and other income, net	0	5
Loss before income taxes	(121)	(80)
Income tax benefit	(37)	(23)
Net loss from continuing operations	(84)	(57)
Net income from discontinued operations	0	46
Net loss	$ (84)	$ (11)
Basic net loss per share from continuing operations (in dollars per share)	$ (0.29)	$ (0.20)
Basic net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.16
Basic net loss per share (in dollars per share)	$ (0.29)	$ (0.04)
Shares used in basic per share calculations (in shares)	286	288
Diluted net loss per share from continuing operations (in dollars per share)	$ (0.29)	$ (0.20)
Diluted net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.16
Diluted net loss per share (in dollars per share)	$ (0.29)	$ (0.04)
Shares used in diluted per share calculations (in shares)	286	288
Dividends declared per common share (in dollars per share)	$ 0.25	$ 0.19

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) (USD $)	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Statement of Stockholders' Equity [Abstract]
Dividends declared per common share (in dollars per share)	$ 0.25	$ 0.19

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Long-Term Obligations (Details) (USD $)	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Jul. 31, 2014	Mar. 12, 2007 5.75 percent fixed-rate notes due 2017 [Member]
Long Term Obligations (Textuals)
Senior notes				$ 500,000,000
Senior notes, rate				5.75%
Cash paid for interest on the Notes	14,000,000	14,000,000
Other long-term obligations
Total deferred rent	61,000,000		62,000,000
Total license fee payable	42,000,000		41,000,000
Long-term income tax liabilities	33,000,000		32,000,000
Long-term deferred income tax liabilities	62,000,000		61,000,000
Other	21,000,000		14,000,000
Total long-term obligations	219,000,000		210,000,000
Less current portion (included in other current liabilities)	(19,000,000)		(17,000,000)
Long-term obligations due after one year	$ 200,000,000		$ 193,000,000

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Current Liabilities (Tables)

3 Months Ended

Oct. 31, 2014

Other Liabilities Disclosure [Abstract]

Other current liabilities

Other current liabilities were as follows at the dates indicated:

(In millions)	October 31, 2014		July 31, 2014
Reserve for product returns	$	19	$	24
Reserve for rebates	15		23
Current portion of license fee payable	10		10
Current portion of deferred rent	7		7
Interest payable	3		10
Executive deferred compensation plan liabilities	71		63
Other	29		30
Total other current liabilities	$	154	$	167

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013	Jul. 31, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	31.00%	29.00%
Effective tax rate excluding the impact of discrete tax items	37.00%	34.00%
Federal statutory income tax rate	35.00%	35.00%
Total amount of unrecognized tax benefits			$ 40
Unrecognized tax benefits, net of related deferred tax assets			26
Favorable net impact to income tax expense due to recognition of tax benefits			$ 26

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Stockholders' Equity (Tables)

3 Months Ended

Oct. 31, 2014

Equity [Abstract]

Total share-based compensation expense

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

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Cost of revenue	$	2		$	2
Selling and marketing	18			15
Research and development	20			14
General and administrative	21			16
Total share-based compensation expense	61			47
Income tax benefit	(19		)	(15		)
Increase in net loss from continuing operations	$	42		$	32
Increase in net loss per share:
Basic	$	0.15		$	0.11
Diluted	$	0.15		$	0.11

Summary of share-based awards available for grant

A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the three months ended October 31, 2014 was as follows:

(Shares in thousands)	Shares Available for Grant
Balance at July 31, 2014	24,203
Options granted	—
Restricted stock units granted (1)	(604	)
Share-based awards canceled/forfeited/expired (1)(2)	1,791
Balance at October 31, 2014	25,390

________________________________

(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 increase the pool by 2.3 shares for each share forfeited.

(2) Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

Summary of stock option activity

A summary of stock option activity for the three months ended October 31, 2014 was as follows:

	Options Outstanding
(Shares in thousands)	Number of Shares		Weighted Average Exercise Price Per Share
Balance at July 31, 2014	10,938		$	52.67
Options granted	—		—
Options exercised	(1,085	)	47.78
Options canceled or expired	(291	)	63.73
Balance at October 31, 2014	9,562		$	52.89
Exercisable at October 31, 2014	5,252		$	40.48

Summary of restricted stock unit activity

A summary of restricted stock unit activity for the three months ended October 31, 2014 was as follows:

	Restricted Stock Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at July 31, 2014	9,455		$	62.46
Granted	263		82.98
Vested	(709	)	53.93
Forfeited	(718	)	55.31
Nonvested at October 31, 2014	8,291		$	64.46

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Cash flows from operating activities:
Net loss	$ (84)	$ (11)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation	36	39
Amortization of acquired intangible assets	18	11
Share-based compensation expense	61	47
Pre-tax gain on sale of discontinued operations	0	(40)
Deferred income taxes	(6)	77
Tax benefit from share-based compensation plans	18	33
Excess tax benefit from share-based compensation plans	(18)	(33)
Other	12	5
Total adjustments	121	139
Changes in operating assets and liabilities:
Accounts receivable	(4)	(11)
Income taxes receivable	(56)	(143)
Prepaid expenses and other assets	(3)	(44)
Accounts payable	32	32
Accrued compensation and related liabilities	(139)	(103)
Deferred revenue	28	(29)
Other liabilities	(13)	(20)
Total changes in operating assets and liabilities	(155)	(318)
Net cash used in operating activities	(118)	(190)
Cash flows from investing activities:
Purchases of available-for-sale debt securities	(365)	(163)
Sales of available-for-sale debt securities	147	71
Maturities of available-for-sale debt securities	229	79
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations	(69)	7
Net change in customer fund deposits	69	(7)
Purchases of property and equipment	(55)	(47)
Acquisitions of businesses, net of cash acquired	(9)	(9)
Proceeds from divestiture of businesses	0	1,025
Other	(8)	(7)
Net cash provided by (used in) investing activities	(61)	949
Cash flows from financing activities:
Net proceeds from issuance of stock under employee stock plans	47	72
Purchases of treasury stock	(114)	(1,400)
Cash dividends paid to stockholders	(74)	(55)
Excess tax benefit from share-based compensation plans	18	33
Net cash used in financing activities	(123)	(1,350)
Effect of exchange rates on cash and cash equivalents	(5)	(1)
Net decrease in cash and cash equivalents	(307)	(592)
Cash and cash equivalents at beginning of period	849	1,009
Cash and cash equivalents at end of period	$ 542	$ 417

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Condensed Consolidated Statements of Comprehensive Loss (Unaudited) (USD $) In Millions, unless otherwise specified	3 Months Ended
	Oct. 31, 2014	Oct. 31, 2013
Statement of Comprehensive Income [Abstract]
Net loss	$ (84)	$ (11)
Other comprehensive income (loss), net of income taxes:
Unrealized gains on available-for-sale debt securities	0	2
Unrealized gains on available-for-sale equity securities	0	(1)
Foreign currency translation gains (losses)	(5)	(2)
Total other comprehensive income (loss), net	(5)	(1)
Comprehensive loss	$ (89)	$ (12)

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Segment Information

3 Months Ended

Oct. 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 all periods presented.

We include expenses such as corporate selling and marketing, product development, and general and administrative expenses and share-based compensation expenses that 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 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014 and in Note 1, "Description of Business and Summary of Significant Accounting Policies - Significant Accounting Policies" in this Quarterly Report on Form 10-Q. Except for goodwill and purchased intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets 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 and Intuit Health businesses. See Note 4, “Discontinued Operations,” for more information.

	Three Months Ended
(In millions)	October 31, 2014			October 31, 2013
Net revenue:
Small Business segment	$	548		$	520
Consumer segment:
Consumer Tax	57			42
Consumer Ecosystem	31			35
Total Consumer segment	88			77
Professional Tax segment	36			25
Total net revenue	$	672		$	622
Operating loss from continuing operations:
Small Business segment	$	192		$	190
Consumer segment	(34		)	(24		)
Professional Tax segment	(3		)	(9		)
Total segment operating income	155			157
Unallocated corporate items:
Share-based compensation expense	(61		)	(47		)
Other common expenses	(192		)	(177		)
Amortization of acquired technology	(10		)	(6		)
Amortization of other acquired intangible assets	(6		)	(4		)
Total unallocated corporate items	(269		)	(234		)
Total operating loss from continuing operations	$	(114	)	$	(77	)

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Document and Entity Information Document	3 Months Ended
	Oct. 31, 2014	Nov. 14, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	INTUIT INC
Entity Central Index Key	0000896878
Current Fiscal Year End Date	--07-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 31, 2014
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		285,496,420

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Description of Business and Summary of Significant Accounting Policies (Policies)

3 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. We have included all adjustments, consisting only of normal recurring items, which we considered necessary for a fair presentation of our financial results for the interim periods presented.

On June 16, 2014 we acquired Check Inc. We have included the results of operations for this company in our consolidated results of operations from the date of acquisition.

As discussed in Note 4, we sold our Intuit Financial Services (IFS) and Intuit Health businesses in August 2013. We have reclassified our statements of operations for all periods presented to reflect these two businesses as discontinued operations. Because the cash flows of our IFS and Intuit Health discontinued operations were not material for any period presented, we have not segregated the cash flows of those businesses from continuing operations on our statements of cash flows. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. Results for the three months ended October 31, 2014 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2015 or any other future period.

Seasonality

Seasonality

Historically, our QuickBooks, Consumer Tax, and Professional Tax offerings have been highly seasonal. Revenue from our QuickBooks software products has tended to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31. During these quarters, revenue from our tax businesses is minimal while core operating expenses such as research and development continue at relatively consistent levels.

Revenue Recognition - Product Revenue

Revenue Recognition - Product Revenue

Prior to fiscal 2015, we recognized revenue from the sale of our packaged software products when legal title transferred. This was generally when our customers downloaded products from the Web, when we shipped the products or, in the case of certain agreements, when products were delivered to retailers. Beginning in fiscal 2015, we began delivering ongoing releases for our future QuickBooks and Quicken desktop products and for our future Professional Tax solutions. As a result, revenue for these QuickBooks and Quicken offerings will be recognized as services are provided over approximately three years and revenue for our Professional Tax solutions will be recognized as services are provided over the tax year.

Use of Estimates

Use of Estimates

In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make certain estimates and assumptions that affect the amounts reported in our financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of reserves for product returns and rebates, the collectibility of accounts receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the amount of our worldwide tax provision, and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates.

Computation of Net Income (Loss) Per Share

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares consist of the shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with combined unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

All of the RSUs we grant have dividend rights. Since the dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per share.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity”

In April 2014 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” This update raises the threshold for a disposal to qualify as a discontinued operation and requires new disclosures for discontinued operations and disposals that do not meet the definition of a discontinued operation. ASU 2014-08 is effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2014, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2015.

ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”

In May 2014 the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” This update supersedes nearly all existing revenue recognition guidance under U.S. GAAP. The core principle of ASU 2014-09 is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASU 2014-09 defines a five step process to achieve this core principle and, in doing so, it is possible that more judgment and estimates may be required within the revenue recognition process than is required under present U.S. GAAP. These may include identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The new standard also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments. ASU 2014-09 is effective for reporting periods beginning after December 15, 2016, which means that it will be effective for us in the first quarter of our fiscal year beginning August 1, 2017. Early adoption is not permitted under U.S. GAAP. ASU 2014-09 allows adoption using either of two methods: (i) retrospective to each prior reporting period presented, with the option to elect certain practical expedients; or (ii) retrospective with the cumulative effect of initially applying ASU 2014-09 recognized at the date of initial application and providing certain additional disclosures. We are currently evaluating the impact of our pending adoption of ASU 2014-09 on our consolidated financial statements.

Fair Value Measurements

Fair Value Measurements

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.

The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:

• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.

• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.

• Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014
Current assets:
Cash and cash equivalents	$ 542	$ 849
Investments	1,047	1,065
Accounts receivable, net	140	134
Income taxes receivable	91	35
Deferred income taxes	140	133
Prepaid expenses and other current assets	119	116
Current assets before funds held for customers	2,079	2,332
Funds held for customers	358	289
Total current assets	2,437	2,621
Long-term investments	31	31
Property and equipment, net	629	606
Goodwill	1,639	1,635
Acquired intangible assets, net	186	199
Other assets	116	109
Total assets	5,038	5,201
Current liabilities:
Accounts payable	198	161
Accrued compensation and related liabilities	139	278
Deferred revenue	511	526
Other current liabilities	154	167
Current liabilities before customer fund deposits	1,002	1,132
Customer fund deposits	358	289
Total current liabilities	1,360	1,421
Long-term debt	499	499
Long-term deferred revenue	52	10
Other long-term obligations	200	193
Total liabilities	2,111	2,123
Commitments and contingencies
Stockholders’ equity:
Preferred stock	0	0
Common stock and additional paid-in capital	3,687	3,561
Treasury stock, at cost	(6,544)	(6,430)
Accumulated other comprehensive loss	(7)	(2)
Retained earnings	5,791	5,949
Total stockholders’ equity	2,927	3,078
Total liabilities and stockholders’ equity	$ 5,038	$ 5,201

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Current Liabilities

3 Months Ended

Oct. 31, 2014

Other Liabilities Disclosure [Abstract]

Current Liabilities

Current Liabilities

Unsecured Revolving Credit Facility

On February 17, 2012 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on February 17, 2017. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either JP Morgan's alternate base rate plus a margin that ranges from 0.0% to 0.5% or London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.9% to 1.5%. Actual margins under either election will be based on our senior debt credit ratings. The agreement includes customary affirmative and negative covenants, including financial covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00 as of the last day of each fiscal quarter. We remained in compliance with these covenants at all times during the quarter ended October 31, 2014. We may use amounts borrowed under this credit facility for general corporate purposes, including future acquisitions. To date we have not borrowed under this credit facility.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

(In millions)	October 31, 2014		July 31, 2014
Reserve for product returns	$	19	$	24
Reserve for rebates	15		23
Current portion of license fee payable	10		10
Current portion of deferred rent	7		7
Interest payable	3		10
Executive deferred compensation plan liabilities	71		63
Other	29		30
Total other current liabilities	$	154	$	167

The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Description of Business and Summary of Significant Accounting Policies – Seasonality,” for more information.

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Discontinued Operations

3 Months Ended

Oct. 31, 2014

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

Intuit Financial Services

On August 1, 2013 we completed the sale of our Intuit Financial Services (IFS) business for approximately $1.025 billion in cash. We recorded a gain on the disposal of IFS of approximately $36 million, net of income taxes, in the first quarter of fiscal 2014. The IFS business comprised substantially all of our former Financial Services reportable segment.

We classified our IFS business as discontinued operations and have therefore segregated its operating results from continuing operations in our statements of operations for all periods presented. Because operating cash flows from the IFS business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Intuit Health

On August 19, 2013 we completed the sale of our Intuit Health business for cash consideration that was not significant. We recorded a $4 million pre-tax loss on the disposal of Intuit Health that was more than offset by a related income tax benefit of approximately $14 million, resulting in a net gain on disposal of approximately $10 million in the first quarter of fiscal 2014. Intuit Health was part of our former Other Businesses reportable segment.

We classified our Intuit Health business as discontinued operations and have therefore segregated its operating results in our statements of operations for all periods presented. Because operating cash flows from the Intuit Health business were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

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Long-Term Obligations (Tables)

3 Months Ended

Oct. 31, 2014

Long-Term Obligations [Abstract]

Other long-term obligations

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

(In millions)	October 31, 2014			July 31, 2014
Total deferred rent	$	61		$	62
Total license fee payable	42			41
Long-term income tax liabilities	33			32
Long-term deferred income tax liabilities	62			61
Other	21			14
Total long-term obligations	219			210
Less current portion (included in other current liabilities)	(19		)	(17		)
Long-term obligations due after one year	$	200		$	193

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Description of Business and Summary of Significant Accounting Policies (Tables)

3 Months Ended

Oct. 31, 2014

Accounting Policies [Abstract]

Composition of shares used in the computation of basic and diluted net income per share

The following table presents the composition of shares used in the computation of basic and diluted net loss per share for the periods indicated.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Numerator:
Net loss from continuing operations	$	(84	)	$	(57	)
Net income from discontinued operations	—			46
Net loss	$	(84	)	$	(11	)
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding	286			288
Shares used in diluted per share amounts:
Weighted average common shares outstanding	286			288
Dilutive common equivalent shares from stock options
and restricted stock awards	—			—
Dilutive weighted average common shares outstanding	286			288
Basic and diluted net loss per share:
Basic net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Basic net income per share from discontinued operations	—			0.16
Basic net loss per share	$	(0.29	)	$	(0.04	)
Diluted net loss per share from continuing operations	$	(0.29	)	$	(0.20	)
Diluted net income per share from discontinued operations	—			0.16
Diluted net loss per share	$	(0.29	)	$	(0.04	)
Shares excluded from computation of diluted net loss per share:
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period	16			17
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect	2			3

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Stockholders' Equity

3 Months Ended

Oct. 31, 2014

Equity [Abstract]

Stockholders' Equity

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. We repurchased 1.3 million shares for $114 million under these programs during the three months ended October 31, 2014 and 17.6 million shares for $1.4 billion under these programs during the three months ended October 31, 2013. At October 31, 2014, we had authorization from our Board of Directors to expend up to an additional $1.8 billion for stock repurchases through August 19, 2017. 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 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, 2014 we declared and paid a quarterly cash dividend of $0.25 per share of outstanding common stock or $74 million. In November 2014 our Board of Directors declared a quarterly cash dividend of $0.25 per share of outstanding common stock payable on January 20, 2015 to stockholders of record at the close of business on January 9, 2015. 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 loss from continuing operations for the periods shown.

	Three Months Ended
(In millions, except per share amounts)	October 31, 2014			October 31, 2013
Cost of revenue	$	2		$	2
Selling and marketing	18			15
Research and development	20			14
General and administrative	21			16
Total share-based compensation expense	61			47
Income tax benefit	(19		)	(15		)
Increase in net loss from continuing operations	$	42		$	32
Increase in net loss per share:
Basic	$	0.15		$	0.11
Diluted	$	0.15		$	0.11

Share-Based Awards Available for Grant

A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the three months ended October 31, 2014 was as follows:

(Shares in thousands)	Shares Available for Grant
Balance at July 31, 2014	24,203
Options granted	—
Restricted stock units granted (1)	(604	)
Share-based awards canceled/forfeited/expired (1)(2)	1,791
Balance at October 31, 2014	25,390

________________________________

(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 increase the pool by 2.3 shares for each share forfeited.

(2) Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

Stock Option Activity and Related Share-Based Compensation Expense

A summary of stock option activity for the three months ended October 31, 2014 was as follows:

	Options Outstanding
(Shares in thousands)	Number of Shares		Weighted Average Exercise Price Per Share
Balance at July 31, 2014	10,938		$	52.67
Options granted	—		—
Options exercised	(1,085	)	47.78
Options canceled or expired	(291	)	63.73
Balance at October 31, 2014	9,562		$	52.89
Exercisable at October 31, 2014	5,252		$	40.48

At October 31, 2014, there was approximately $59 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.3 years.

Restricted Stock Unit Activity and Related Share-Based Compensation Expense

A summary of restricted stock unit activity for the three months ended October 31, 2014 was as follows:

	Restricted Stock Units
(Shares in thousands)	Number of Shares		Weighted Average Grant Date Fair Value
Nonvested at July 31, 2014	9,455		$	62.46
Granted	263		82.98
Vested	(709	)	53.93
Forfeited	(718	)	55.31
Nonvested at October 31, 2014	8,291		$	64.46

At October 31, 2014, there was approximately $349 million of unrecognized compensation cost related to non-vested RSUs that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.2 years.

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Long-Term Obligations

3 Months Ended

Oct. 31, 2014

Long-Term Obligations [Abstract]

Long-Term Obligations

Long-Term Obligations

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the Notes). We carried the Notes at face value less the unamortized discount in long-term debt on our balance sheets at October 31, 2014 and July 31, 2014. The 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. Interest on the Notes is payable semi-annually on March 15 and September 15. We paid $14 million in cash for interest on the Notes during the three months ended October 31, 2014 and $14 million in cash for interest on the Notes during the three months ended October 31, 2013.

Other Long-Term Obligations

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

(In millions)	October 31, 2014			July 31, 2014
Total deferred rent	$	61		$	62
Total license fee payable	42			41
Long-term income tax liabilities	33			32
Long-term deferred income tax liabilities	62			61
Other	21			14
Total long-term obligations	219			210
Less current portion (included in other current liabilities)	(19		)	(17		)
Long-term obligations due after one year	$	200		$	193

Operating Lease Commitments

We describe our operating lease commitments in Note 9 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2014. There were no significant changes in those commitments during the first three months of fiscal 2015.

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Income Taxes

3 Months Ended

Oct. 31, 2014

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes

Effective Tax Rate

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period.

Our effective tax rate for the three months ended October 31, 2014 was approximately 31%. Excluding discrete tax items primarily related to share-based compensation and a state tax law change as well as including the effects of losses in certain jurisdictions where we do not recognize a tax benefit, our effective tax rate for the period was approximately 37% and did not differ significantly from the federal statutory rate of 35%. Tax expense related to share based compensation, state income taxes, and the effects of losses in certain jurisdictions where we do not recognize a tax benefit were partially offset by the benefit we received from the domestic production activities deduction.

Our effective tax rate for the three months ended October 31, 2013 was approximately 29%. Excluding the impact of discrete tax items primarily related to share-based compensation, our effective tax rate for that period was approximately 34% and did not differ significantly from the federal statutory rate of 35%. The benefit we received from the domestic production activities deduction and the federal research and experimentation credit were substantially offset by tax expense related to state income taxes.

Unrecognized Tax Benefits and Other Considerations

The total amount of our unrecognized tax benefits at July 31, 2014 was $40 million. Net of related deferred tax assets, unrecognized tax benefits were $26 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $26 million. There were no material changes to these amounts during the three months ended October 31, 2014. We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months.

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Litigation

3 Months Ended

Oct. 31, 2014

Commitments and Contingencies Disclosure [Abstract]

Litigation

Litigation

Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that, in addition to any amounts accrued, the amount of potential losses, if any, for any pending claims of any type (either alone or combined) will not have a material impact on our consolidated financial statements. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims could adversely affect our business.

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Current Liabilities - Other current liabilities (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014	Jul. 31, 2014
Other Liabilities, Current [Abstract]
Reserve for product returns	$ 19	$ 24
Reserve for rebates	15	23
Current portion of license fee payable	10	10
Current portion of deferred rent	7	7
Interest payable	3	10
Executive deferred compensation plan liabilities	71	63
Other	29	30
Total other current liabilities	$ 154	$ 167

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Cash and Cash Equivalents, Investments and Funds Held for Customers (Tables)

3 Months Ended

Oct. 31, 2014

Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]

Cash and cash equivalents, investments and funds held for customers by balance sheet classification

The following table summarizes our cash and cash equivalents, investments, and funds held for customers by balance sheet classification at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	542	$	542	$	849	$	849
Investments	1,046		1,047		1,064		1,065
Funds held for customers	358		358		289		289
Long-term investments	31		31		31		31
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

Cash and cash equivalents, investments and funds held for customers by investment category

The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. See Note 2, “Fair Value Measurements,” for more information on our municipal auction rate securities.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	725	$	725	$	994	$	994
Available-for-sale debt securities:
Municipal bonds	647		647		700		701
Corporate notes	564		565		466		466
U.S. agency securities	10		10		42		42
Municipal auction rate securities	21		21		21		21
Total available-for-sale debt securities	1,242		1,243		1,229		1,230
Other long-term investments	10		10		10		10
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

Available-for-sale debt securities classified by the stated maturity date of the security

The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	399	$	399	$	363	$	363
Due within two years	471		472		443		443
Due within three years	292		292		303		303
Due after three years	80		80		120		121
Total available-for-sale debt securities	$	1,242	$	1,243	$	1,229	$	1,230

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Description of Business and Summary of Significant Accounting Policies (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended					12 Months Ended
	Oct. 31, 2014 Business_unit	Oct. 31, 2013	Oct. 31, 2014 Customer Concentration Risk [Member] Sales Revenue, Services, Net [Member] customers	Oct. 31, 2013 Customer Concentration Risk [Member] Sales Revenue, Services, Net [Member] customers	Oct. 31, 2014 Customer Concentration Risk [Member] Accounts Receivable [Member] customers	Jul. 31, 2014 Customer Concentration Risk [Member] Accounts Receivable [Member] customers
Composition of shares used in the computation of basic and diluted net income per share
Number of businesses discontinued	2
Numerator:
Net loss from continuing operations	$ (84)	$ (57)
Net income from discontinued operations	0	46
Net loss	$ (84)	$ (11)
Shares used in basic per share amounts:
Weighted average common shares outstanding	286	288
Shares used in diluted per share amounts:
Weighted average common shares outstanding	286	288
Dilutive common equivalent shares from stock options and restricted stock awards	0	0
Dilutive weighted average common shares outstanding	286	288
Basic and diluted net loss per share:
Basic net loss per share from continuing operations (in dollars per share)	$ (0.29)	$ (0.20)
Basic net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.16
Basic net loss per share (in dollars per share)	$ (0.29)	$ (0.04)
Diluted net loss per share from continuing operations (in dollars per share)	$ (0.29)	$ (0.20)
Diluted net income per share from discontinued operations (in dollars per share)	$ 0.00	$ 0.16
Diluted net loss per share (in dollars per share)	$ (0.29)	$ (0.04)
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period (in shares)	16	17
Weighted average stock options and restricted stock units excluded from computation due to anti-dilutive effect (in shares)	2	3
Concentration Risk, Number of Customers			0	0	0	0

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	Total USD ($)	Shares of Common Stock [Member]	Common Stock and Additional Paid In Capital [Member] USD ($)	Treasury Stock [Member] USD ($)	Accumulated Other Comprehensive Loss [Member] USD ($)	Retained Earnings [Member] USD ($)
Beginning Balance at Jul. 31, 2013	$ 3,531		$ 3,201	$ (4,952)	$ 20	$ 5,262
Beginning Balance, shares at Jul. 31, 2013		299,503
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive loss	(12)				(1)	(11)
Issuance of stock under employee stock plans, shares		2,801
Issuance of stock under employee stock plans	80		(6)	86
Stock repurchases under stock repurchase programs, shares	(17,600)	(17,607)
Stock repurchases under stock repurchase programs	(1,400)		(280)	(1,120)
Cash dividends declared	(55)					(55)
Tax benefit from share-based compensation plans	33		33
Share-based compensation expense	47		47
Ending Balance at Oct. 31, 2013	2,224		2,995	(5,986)	19	5,196
Ending Balance, shares at Oct. 31, 2013		284,697
Beginning Balance at Jul. 31, 2014	3,078		3,561	(6,430)	(2)	5,949
Beginning Balance, shares at Jul. 31, 2014		284,950
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Comprehensive loss	(89)				(5)	(84)
Issuance of stock under employee stock plans, shares		1,787
Issuance of stock under employee stock plans	47		47
Stock repurchases under stock repurchase programs, shares	(1,300)	(1,318)
Stock repurchases under stock repurchase programs	(114)			(114)
Cash dividends declared	(74)					(74)
Tax benefit from share-based compensation plans	18		18
Share-based compensation expense	61		61
Ending Balance at Oct. 31, 2014	$ 2,927		$ 3,687	$ (6,544)	$ (7)	$ 5,791
Ending Balance, shares at Oct. 31, 2014		285,419

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Cash and Cash Equivalents, Investments and Funds Held for Customers

3 Months Ended

Oct. 31, 2014

Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]

Cash and Cash Equivalents, Investments and Funds Held for Customers

Cash and Cash Equivalents, Investments and Funds Held for Customers

We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments at October 31, 2014 consist of available-for-sale investment-grade debt securities that we carry at fair value. Funds held for customers consist of cash and cash equivalents and investment grade available-for-sale debt securities in all periods presented. Long-term investments at October 31, 2014 consist primarily of municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments in debt securities by limiting our holdings with any individual issuer.

The following table summarizes our cash and cash equivalents, investments, and funds held for customers by balance sheet classification at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	542	$	542	$	849	$	849
Investments	1,046		1,047		1,064		1,065
Funds held for customers	358		358		289		289
Long-term investments	31		31		31		31
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

The following table summarizes our cash and cash equivalents, investments, and funds held for customers by investment category at the dates indicated. See Note 2, “Fair Value Measurements,” for more information on our municipal auction rate securities.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	725	$	725	$	994	$	994
Available-for-sale debt securities:
Municipal bonds	647		647		700		701
Corporate notes	564		565		466		466
U.S. agency securities	10		10		42		42
Municipal auction rate securities	21		21		21		21
Total available-for-sale debt securities	1,242		1,243		1,229		1,230
Other long-term investments	10		10		10		10
Total cash and cash equivalents, investments, and funds held for customers	$	1,977	$	1,978	$	2,233	$	2,234

We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three months ended October 31, 2014 and October 31, 2013 were not significant.

We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income or loss in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at October 31, 2014 and July 31, 2014 were not significant.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at October 31, 2014 were not other-than-temporarily impaired. Unrealized losses on available-for-sale debt securities at October 31, 2014 were not significant and were due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with specific securities. We do not intend to sell these investments and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity.

The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.

	October 31, 2014				July 31, 2014
(In millions)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due within one year	$	399	$	399	$	363	$	363
Due within two years	471		472		443		443
Due within three years	292		292		303		303
Due after three years	80		80		120		121
Total available-for-sale debt securities	$	1,242	$	1,243	$	1,229	$	1,230

Available-for-sale debt securities due after three years in the table above include our municipal auction rate securities. See Note 2, “Fair Value Measurements,” for more information. All of the remaining securities in that category had interest reset dates or mandatory call dates within three years of the dates indicated in the table.

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Fair Value Measurements (Details) (USD $) In Millions, unless otherwise specified	Oct. 31, 2014		Jul. 31, 2014
Available-for-sale debt securities:
Total available-for-sale securities	$ 1,978		$ 2,234
Liabilities:
Long-term debt	499		499
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Assets:
Cash equivalents, primarily money market funds	431		652
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	431		652
Liabilities:
Senior notes	0	[1]	0	[1]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Available-for-sale corporate equity securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Assets:
Cash equivalents, primarily money market funds	0		0
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	1,222		1,209
Liabilities:
Senior notes	550	[1]	556	[1]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale securities	647		701
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale securities	565		466
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	10		42
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Available-for-sale corporate equity securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	1,222		1,209
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Assets:
Cash equivalents, primarily money market funds	0		0
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	21		21
Liabilities:
Senior notes	0	[1]	0	[1]
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	0		0
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	21		21
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Available-for-sale corporate equity securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	21		21
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents, primarily money market funds	431		652
Available-for-sale debt securities:
Total assets measured at fair value on a recurring basis	1,674		1,882
Liabilities:
Senior notes	550	[1]	556	[1]
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale securities	647		701
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale securities	565		466
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	10		42
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	21		21
Estimate of Fair Value Measurement [Member] | Fair Value, Measurements, Recurring [Member] | Available-for-sale corporate equity securities [Member]
Available-for-sale debt securities:
Total available-for-sale securities	$ 1,243		$ 1,230

[1] Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.

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Segment Information (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		12 Months Ended
	Oct. 31, 2014 Segment	Oct. 31, 2013	Jul. 31, 2014
Segment Reporting Information [Line Items]
Number of Reportable Segments	3
International Total Net Revenue As A Percentage Of Total	5.00%	5.00%	5.00%
Financial results by reportable segment
Total net revenue	$ 672	$ 622
Total operating loss from continuing operations	(114)	(77)
Unallocated corporate items:
Share-based compensation expense	(61)	(47)
Amortization of acquired technology	(10)	(6)
Amortization of other acquired intangible assets	(6)	(4)
Operating Segments [Member]
Financial results by reportable segment
Total operating loss from continuing operations	155	157
Small Business Segment [Member]
Financial results by reportable segment
Total operating loss from continuing operations	192	190
Small Business Segment [Member] | Small Business Financial Solutions [Member]
Financial results by reportable segment
Total net revenue	548	520
Consumer Segment [Member]
Segment Reporting Information [Line Items]
Number of Product Lines	2
Financial results by reportable segment
Total net revenue	88	77
Total operating loss from continuing operations	(34)	(24)
Consumer Segment [Member] | Consumer Tax [Member]
Financial results by reportable segment
Total net revenue	57	42
Consumer Segment [Member] | Consumer Ecosystem [Member]
Financial results by reportable segment
Total net revenue	31	35
Professional Tax Segment [Member]
Financial results by reportable segment
Total net revenue	36	25
Total operating loss from continuing operations	(3)	(9)
Segment Reconciling Items [Member]
Unallocated corporate items:
Share-based compensation expense	(61)	(47)
Other common expenses	(192)	(177)
Amortization of acquired technology	(10)	(6)
Amortization of other acquired intangible assets	(6)	(4)
Total unallocated corporate items	$ (269)	$ (234)

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Fair Value Measurements (Tables)

3 Months Ended

Oct. 31, 2014

Fair Value Disclosures [Abstract]

Financial assets and liabilities measured at fair value on recurring basis

The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Assets:
Cash equivalents, primarily money market funds	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale debt securities:
Municipal bonds	—		647		—		647		—		701		—		701
Corporate notes	—		565		—		565		—		466		—		466
U.S. agency securities	—		10		—		10		—		42		—		42
Municipal auction rate securities	—		—		21		21		—		—		21		21
Total available-for-sale securities	—		1,222		21		1,243		—		1,209		21		1,230
Total assets measured at fair value on a recurring basis	$	431	$	1,222	$	21	$	1,674	$	652	$	1,209	$	21	$	1,882
Liabilities:
Senior notes (1)	$	—	$	550	$	—	$	550	$	—	$	556	$	—	$	556

______________________________

(1) Carrying value on our balance sheet at October 31, 2014 was $499 million and at July 31, 2014 was $499 million. See Note 6.

Cash equivalents and available-for-sale debt and equity securities by balance sheet classification and level in the fair value hierarchy

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

	October 31, 2014								July 31, 2014
(In millions)	Level 1		Level 2		Level 3		Total Fair Value		Level 1		Level 2		Level 3		Total Fair Value
Cash equivalents:
In cash and cash equivalents	$	248	$	—	$	—	$	248	$	507	$	—	$	—	$	507
In funds held for customers	183		—		—		183		145		—		—		145
Total cash equivalents	$	431	$	—	$	—	$	431	$	652	$	—	$	—	$	652
Available-for-sale securities:
In investments	$	—	$	1,047	$	—	$	1,047	$	—	$	1,065	$	—	$	1,065
In funds held for customers	—		175		—		175		—		144		—		144
In long-term investments	—		—		21		21		—		—		21		21
Total available-for-sale securities	$	—	$	1,222	$	21	$	1,243	$	—	$	1,209	$	21	$	1,230