Discontinued Operations

Demandforce, QuickBase, and Quicken

In the fourth quarter of fiscal 2015 management having the authority to do so formally approved a plan to sell our Demandforce, QuickBase, and Quicken businesses. The decision was a result of management’s desire to focus resources on our core small business and tax strategy. We determined that these businesses became long-lived assets held for sale in the fourth quarter of fiscal 2015. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying value of these three businesses at July 31, 2015 was less than the estimated fair value less cost to sell, no adjustments to the carrying values of these long-lived assets were necessary at that date.

We also classified our Demandforce, QuickBase, and Quicken businesses as discontinued operations in the fourth quarter of fiscal 2015 and have therefore segregated their operating results from continuing operations in our statements of operations and on our balance sheets for all periods presented. Because operating cash flows from these businesses were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows. Demandforce and QuickBase were part of our Small Business segment and Quicken was part of our former Consumer segment.

See the table later in this Note 7 for more information on the operating results of Demandforce, QuickBase, and Quicken. The carrying amounts of the major classes of assets and liabilities of Demandforce, QuickBase, and Quicken at July 31, 2015 and July 31, 2014 were as shown in the following table.



	July 31,
(In millions)	2015		2014
Accounts receivable	$	19	$	19
Deferred income taxes	5		9
Prepaid and other current assets	2		1
Property and equipment, net	25		17
Goodwill	165		312
Purchased intangible assets, net	43		66
Other assets	2		1
Total assets	261		425

Accounts payable	7		16
Accrued compensation	21		16
Deferred revenue	48		31
Other current liabilities	17		17
Long-term deferred revenue	39		7
Long-term obligations	29		27
Total liabilities	161		114
Net assets	$	100	$	311

Intuit Financial Services

On July 1, 2013 we signed a definitive agreement to sell our Intuit Financial Services (IFS) business and on August 1, 2013 we completed the sale for approximately $1.025 billion in cash. We recorded a $44 million pre-tax gain on the disposal of IFS that was partially offset by a related income tax provision of approximately $8 million, resulting in a net gain on disposal of approximately $36 million in the first quarter of fiscal 2014. The decision to sell the IFS business was a result of management’s desire to focus resources on our offerings for small businesses, consumers, and accounting professionals. The IFS business comprised substantially all of our former Financial Services reportable segment.

We determined that our IFS business became a long-lived asset held for sale in the fourth quarter of fiscal 2013. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying value of IFS at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.

We also classified our IFS business as discontinued operations in the fourth quarter of fiscal 2013 and have therefore segregated its operating results from continuing operations in our statements of operations for all periods presented. See the table later in this Note for more information. 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

In July 2013 management having the authority to do so formally approved a plan to sell our Intuit Health business and on August 19, 2013 we completed the sale 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. The decision to sell the Intuit Health business was a result of management’s desire to focus resources on our offerings for small businesses, consumers, and accounting professionals. Intuit Health was part of our former Other Businesses reportable segment.

We determined that our Intuit Health business became a long-lived asset held for sale in the fourth quarter of fiscal 2013. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying value of Intuit Health at July 31, 2013 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.

We also classified our Intuit Health business as discontinued operations in the fourth quarter of fiscal 2013 and have segregated its operating results in our statements of operations for all periods presented. See the table later in this Note for more information. Because operating cash flows from the Intuit Health business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Intuit Websites

In July 2012 management having the authority to do so formally approved a plan to sell our Intuit Websites business, which was a component of our Small Business segment. The decision was the result of a shift in our strategy for helping small businesses to establish an online presence. On August 10, 2012 we signed a definitive agreement to sell our Intuit Websites business and on September 17, 2012 we completed the sale for approximately $60 million in cash. We recorded a gain on disposal of approximately $32 million, net of income taxes.

We determined that our Intuit Websites business became a long-lived asset held for sale in the fourth quarter of fiscal 2012. A long-lived asset classified as held for sale is measured at the lower of its carrying amount or fair value less cost to sell. Since the carrying value of Intuit Websites at July 31, 2012 was less than the estimated fair value less cost to sell, no adjustment to the carrying value of this long-lived asset was necessary at that date.

We also classified our Intuit Websites business as discontinued operations in the fourth quarter of fiscal 2012 and have segregated its operating results in our statements of operations for all periods presented. See the table later in this Note for more information. Because operating cash flows from the Intuit Websites business were also not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

Net Income (Loss) from Discontinued Operations

Net revenue from discontinued operations, income or loss from discontinued operations before income taxes, and the components of net income (loss) from discontinued operations were as follows for the periods indicated:



	Twelve Months Ended July 31,
(In millions)	2015			2014			2013
Net revenue from discontinued operations:
Intuit Financial Services	$	—		$	—		$	325
Intuit Health	—			1			16
Intuit Websites	—			—			10
Demandforce	115			107			80
QuickBase	70			57			47
Quicken	51			98			99
Total net revenue from discontinued operations	$	236		$	263		$	577

Income (loss) from discontinued operations before income taxes:
Intuit Financial Services	$	—		$	—		$	52
Intuit Health	—			(1		)	(71		)
Demandforce	(63		)	(51		)	(41		)
QuickBase	11			7			10
Quicken	(136		)	57			58
Total income (loss) from discontinued operations before income taxes	$	(188	)	$	12		$	8

Net income (loss) from discontinued operations:
Net income from Intuit Financial Services operations	$	—		$	—		$	34
Net gain on disposal of Intuit Financial Services discontinued operations	—			36			8
Net loss from Intuit Health operations	—			—			(57		)
Net gain on disposal of Intuit Health discontinued operations	—			10			18
Net gain on disposal of Intuit Websites discontinued operations	—			—			32
Net loss from Demandforce operations	(39		)	(30		)	(27		)
Net income from QuickBase operations	7			4			6
Net income (loss) from Quicken operations	(140		)	34			37
Tax benefit from discontinued operations	124			—			—
Total net income (loss) from discontinued operations	$	(48	)	$	54		$	51

The tax benefit from discontinued operations for the twelve months ended July 31, 2015 and the net gains on disposal of Intuit Financial Services and Intuit Health for the twelve months ended July 31, 2013 were comprised of tax benefits from the anticipated sales of those businesses. See Note 10, “Income Taxes,” for more information.