Goodwill and Acquired Intangible Assets (Tables)

12 Months Ended

Jul. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Carrying value of goodwill by reportable segment

Changes in the carrying value of goodwill by reportable segment during the twelve months ended July 31, 2017 and July 31, 2016 were as shown in the following table. Our reportable segments are described in Note 13, “Segment Information.”

(In millions)	Balance July 31, 2015		Goodwill Acquired/ Adjusted		Balance July 31, 2016		Goodwill Acquired/ Adjusted		Balance July 31, 2017
Small Business	$	1,157	$	16	$	1,173	$	12	$	1,185
Consumer Tax	18		—		18		—		18
ProConnect	91		—		91		1		92
Totals	$	1,266	$	16	$	1,282	$	13	$	1,295

Cost, accumulated amortization and weighted average life in years for acquired intangible assets

The following table shows the cost, accumulated amortization and weighted average life in years for our acquired intangible assets at the dates indicated. The weighted average lives are calculated for assets that are not fully amortized.

(Dollars in millions)	Customer Lists			Purchased Technology			Trade Names and Logos			Covenants Not to Compete or Sue			Total
At July 31, 2017:
Cost	$	240		$	367		$	23		$	32		$	662
Accumulated amortization	(240		)	(346		)	(23		)	(31		)	(640		)
Acquired intangible assets, net	$	—		$	21		$	—		$	1		$	22
Weighted average life in years	NA			6			NA			9			6
At July 31, 2016:
Cost	$	241		$	369		$	23		$	32		$	665
Accumulated amortization	(240		)	(329		)	(23		)	(29		)	(621		)
Acquired intangible assets, net	$	1		$	40		$	—		$	3		$	44
Weighted average life in years	5			6			NA			9			6

Expected future amortization expense for acquired intangible assets

The following table shows the expected future amortization expense for our acquired intangible assets at July 31, 2017. Amortization of purchased technology is charged to cost of service and other revenue and to amortization of acquired technology in our statements of operations. Amortization of other acquired intangible assets such as customer lists is charged to amortization of other acquired intangible assets in our statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.

(In millions)	Expected Future Amortization Expense
Twelve months ending July 31,
2018	$	13
2019	6
2020	3
2021	—
2022	—
Thereafter	—
Total expected future amortization expense	$	22