Segment Information

6 Months Ended

Jan. 31, 2017

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 targets small businesses and the accounting professionals who serve and advise them. Our Small Business offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions. They also include third-party applications that integrate with our offerings.

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

ProConnect: Our ProConnect segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and doing the nations' taxes. Our ProConnect professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online, 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 all periods presented.

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 to the financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2016 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 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 and sold during fiscal 2016. See Note 4, “Discontinued Operations,” for more information.

	Three Months Ended						Six Months Ended
(In millions)	January 31, 2017			January 31, 2016			January 31, 2017			January 31, 2016
Net revenue:
Small Business	$	632		$	564		$	1,238		$	1,110
Consumer Tax	285			275			345			332
ProConnect	99			84			211			194
Total net revenue	$	1,016		$	923		$	1,794		$	1,636
Operating income (loss) from continuing operations:
Small Business	$	241		$	204		$	481		$	420
Consumer Tax	55			63			16			35
ProConnect	50			41			120			113
Total segment operating income	346			308			617			568
Unallocated corporate items:
Share-based compensation expense	(81		)	(65		)	(170		)	(132		)
Other common expenses	(240		)	(194		)	(479		)	(408		)
Amortization of acquired technology	(3		)	(6		)	(6		)	(12		)
Amortization of other acquired intangible assets	—			(1		)	(1		)	(3		)
Total unallocated corporate items	(324		)	(266		)	(656		)	(555		)
Total operating income (loss) from continuing operations	$	22		$	42		$	(39	)	$	13