Segment Information

12 Months Ended

Jul. 31, 2015

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, which target small businesses and the accounting professionals who serve them.

• 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, 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 Commerce Network; GoPayment mobile payment processing services; and QuickBooks Point of Sale solutions.

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

Professional Tax. Our Professional Tax segment targets professional accountants in the U.S. and Canada and includes Lacerte, ProSeries, ProFile 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 less than 5% of consolidated total net revenue for the twelve months ended July 31, 2015, 2014 and 2013.

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

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

The following table shows our financial results by reportable segment for the periods indicated. Results for all periods presented have been adjusted to exclude results for our Demandforce, QuickBase, and Quicken businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2015. Demandforce and QuickBase were part of the Small Business segment, and Quicken was part of the Consumer Ecosystem product line in the former Consumer segment. The remaining components of the Consumer Ecosystem product line are included in the Small Business segment for all periods presented and the former Consumer segment is now called the Consumer Tax segment. Results for all periods presented also exclude results for our Intuit Financial Services and Intuit Health businesses, which we classified as discontinued operations in the fourth quarter of fiscal 2013, and our Intuit Websites business, which we classified as discontinued operations in the fourth quarter of fiscal 2012. See Note 7, “Discontinued Operations,” for more information.

	Twelve Months Ended July 31,
(In millions)	2015			2014			2013
Net revenue:
Small Business segment	$	2,108		$	2,158		$	1,988
Consumer Tax segment	1,800			1,663			1,552
Professional Tax segment	284			422			406
Total net revenue	$	4,192		$	4,243		$	3,946
Operating income from continuing operations:
Small Business segment	696			852			806
Consumer Tax segment	1,131			1,075			964
Professional Tax segment	108			268			260
Total segment operating income	1,935			2,195			2,030
Unallocated corporate items:
Share-based compensation expense	(242		)	(186		)	(166		)
Other common expenses	(765		)	(684		)	(626		)
Amortization of acquired technology	(30		)	(18		)	(13		)
Amortization of other acquired intangible assets	(12		)	(7		)	(17		)
Goodwill and intangible asset impairment charges	(148		)	—			—
Total unallocated corporate items	(1,197		)	(895		)	(822		)
Total operating income from continuing operations	$	738		$	1,300		$	1,208