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Segment Information
9 Months Ended
Apr. 30, 2018
Segment Reporting [Abstract]  
Segment Information
10. Segment Information
In August 2017, we aligned our segment reporting for fiscal 2018 with our core customers and business partners. The Consumer Ecosystem offering moved from the Small Business segment into the Consumer Tax segment. The company also renamed the Small Business, Consumer Tax, and ProConnect segments as the Small Business & Self-Employed, Consumer, and Strategic Partner segments. The Strategic Partner segment will continue to manage our professional tax offerings while now focusing on partners instrumental to the success of Intuit’s ecosystem.
We have defined our 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 & Self-Employed:  This segment targets small businesses, the self-employed, and the accounting professionals who serve and advise them around the globe. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions.
Consumer:  This segment targets consumers and includes TurboTax income tax preparation products and services sold in the U.S. and Canada.
Strategic Partner:  This segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online.
 
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, 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, 2017 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. Segment results for fiscal 2017 have been reclassified to conform to the fiscal 2018 segment presentation, as described earlier in this footnote.
 
Three Months Ended
 
Nine Months Ended
(In millions)
April 30,
2018
 
April 30,
2017
 
April 30,
2018
 
April 30,
2017
Net revenue:
 
 
 
 
 
 
 
Small Business & Self-Employed
$
759

 
$
655

 
$
2,189

 
$
1,866

Consumer
2,035

 
1,770

 
2,447

 
2,142

Strategic Partner
131

 
116

 
340

 
327

Total net revenue
$
2,925

 
$
2,541

 
$
4,976

 
$
4,335

 
 
 
 
 
 
 
 
Operating income:
 
 
 
 
 
 
 
Small Business & Self-Employed
$
292

 
$
276

 
$
874

 
$
756

Consumer
1,636

 
1,429

 
1,650

 
1,446

Strategic Partner
89

 
73

 
210

 
193

Total segment operating income
2,017

 
1,778

 
2,734

 
2,395

Unallocated corporate items:
 
 
 
 
 
 
 
Share-based compensation expense
(92
)
 
(71
)
 
(283
)
 
(241
)
Other common expenses
(303
)
 
(259
)
 
(859
)
 
(738
)
Amortization of acquired technology
(5
)
 
(3
)
 
(10
)
 
(9
)
Amortization of other acquired intangible assets
(2
)
 
(1
)
 
(4
)
 
(2
)
Total unallocated corporate items
(402
)
 
(334
)
 
(1,156
)
 
(990
)
Total operating income
$
1,615

 
$
1,444

 
$
1,578

 
$
1,405