EX-1.01 2 exhibit101-calendaryear202.htm EX-1.01 Document

Exhibit 1.01
 

Intuit Inc.
Conflict Minerals Report
For The Year Ended December 31, 2020

Conflict Minerals Rule

This Conflict Minerals Report (the “CMR”) of Intuit Inc. (“Intuit”) for the year ended December 31, 2020 is presented to comply with Rule 13p-1 (“Rule 13p-1”) under the Securities Exchange Act of 1934, as amended (the “Conflict Mineral Rules”). Rule 13p-1 imposes certain reporting obligations on U.S. Securities and Exchange Commission (“SEC”) registrants that manufacture or contract to manufacture products containing certain minerals which are necessary to the functionality or production of those products. These minerals are cassiterite, columbite-tantalite (coltan), gold, wolframite, and their derivatives, which are limited to tin, tantalum and tungsten (“3TG” or “Conflict Minerals”). Rule 13p-1 focuses on 3TG originating from the Democratic Republic of Congo (“DRC”) and nine adjoining countries (together, the “Covered Countries”). If, based on a Reasonable Country of Origin Inquiry (“RCOI”), a registrant has reason to believe that any of the necessary Conflict Minerals contained in its products may have originated in the Covered Countries and may not be from recycled or scrap sources, then the registrant must exercise due diligence on such Conflict Minerals’ source and chain of custody.


Company Overview

Intuit helps consumers, small businesses and the self-employed prosper by delivering financial management and compliance products and services. Our flagship brands, QuickBooks, TurboTax and Mint, help customers run their small businesses, pay employees and bills, separate business and personal expenses, track their money, and file income taxes (“Core Products”). Intuit’s Core Products account for majority of our total annual revenue. These offerings include software products distributed through downloading, cloud-based services and CDs. In addition to these core software offerings, Intuit also contracts to manufacture a bluetooth card reader that connects to smart phones and tablets and allows merchants to process credit card payments (the “Intuit Payment Devices”).


Conflict Minerals Rule Applicability

Intuit has reviewed the products it manufactures or contracts to manufacture and has confirmed that none of its Core Products described above contain Conflict Minerals. For the 2020 reporting period, the Intuit
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Payment Devices are the only products that Intuit contracted to manufacture which contain Conflict Minerals that are necessary to their functionality or production. This CMR relates to the due diligence process undertaken for the Intuit Payment Devices.

Intuit contracts to manufacture the Intuit Payment Devices with one direct supplier (the “Tier One Supplier”). Intuit does not directly purchase raw minerals, including 3TG, and is many steps removed from the mines, smelters and refiners that supply the conflict minerals contained in the Intuit Payment Devices.

Statements in this CMR are based on our due diligence activities performed in good faith for the calendar year 2020. Factors that could affect the accuracy of the statements in this CMR include but are not limited to, incomplete supplier or smelter data available through suppliers or smelters, on-going certification of smelters, continued guidance or amendments to the Conflict Minerals Rules and other factors.

Reasonable Country of Origin Inquiry

Intuit conducted an RCOI to determine whether any of the necessary Conflict Minerals in the Intuit Payment Devices originated in the Covered Countries, or were Conflict Minerals from recycled or scrap sources by surveying our supply base for the Intuit Payment Devices. Based on its RCOI, Intuit was unable to determine that such Conflict Minerals did not originate in the Covered Countries or came from recycled or scrap sources, and, accordingly, we conducted due diligence on the source and chain of custody of such Conflict Minerals, as discussed below.


Due Diligence Program

Intuit’s due diligence program was designed to conform, in all material respects, to the five-step framework laid out in the Organization for Economic Co-operation and Development (“OECD”) Due Diligence Guidance for Responsible Supply Chains of Minerals from Conflict-Affected and High-Risk Areas, Third Edition and related Supplements on Tin, Tantalum and Tungsten and on Gold (collectively, the “OECD Guidance”). Below is a summary of the design of our due diligence program as it relates to the five-step framework under the OECD Guidance.

Step 1: Establish Strong Company Management Systems

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Intuit has established strong company management systems relating to conflict minerals. In January 2013, we formed a dedicated working group comprised of subject matter experts within the Supply Chain organization and Legal teams, and this working group has met regularly since its formation. The working group reports regularly on progress to a disclosure committee of senior executives, including the Chief Financial Officer, Chief Accounting Officer and General Counsel, and also updates the Audit and Risk Committee of the Board of Directors. Management has also developed a Conflict Minerals Policy that is posted at https://www.intuit.com/company/supplier-programs/policies/conflict-mineral-policy/ to clearly communicate Intuit’s commitment to developing and maintaining a conflict free mineral supply chain to its suppliers and the public.

In addition, in order to improve on the quality of information provided by its supply chain, Intuit has amended its agreements with its suppliers to strengthen the contractual requirements to source from certified conflict-free sources wherever possible. Intuit requires the inclusion of similar provisions in its agreements with new suppliers.

Finally, we maintain a company-level grievance mechanism, as described in our Code of Conduct & Ethics, that enables employees to report concerns, including any concerns regarding Intuit’s Conflict Minerals supply chain. Intuit also maintains an integrity hotline that third parties can use to report on financial and ethical issues, including issues concerning our Conflict Minerals supply chain. The number for this hotline is 1-877-379-3939.

Step 2: Identify and Assess Risk in the Supply Chain

Intuit relies on the Tier One Supplier to provide information regarding the 3TG contained in our products, and the Tier One Supplier is similarly reliant upon information provided by its suppliers. In this process, Intuit used the due diligence tools developed by the Responsible Minerals Initiative (“RMI”), including the RMI’s Conflict Minerals Reporting Template (the “Template”), which is designed to identify the smelters that process the Conflict Minerals in a company’s supply chain.

Intuit reviewed the Templates provided by the Tier One Supplier for completeness, accuracy and consistency. Intuit compared the identified smelters against the RMI’s standard smelter list and the list of compliant smelters published by the Responsible Minerals Assurance Process (“RMAP”).

We are a member of the Responsible Business Alliance (“RBA”) and the RMI working groups. As a member of the RMI, a leading industry program that helps its members to manage risk by improving
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supply chain transparency with respect to Conflict Minerals, Intuit has access to RMI RCOI data that aids us in determining the mine or location of origin of the Conflict Minerals in our supply chain.

Step 3: Design and Implement a Strategy to Respond to Identified Risks

Intuit’s strategy to respond to the identified risks in its supply chain focuses on implementing requirements that its Tier One Supplier source the components in the Intuit Payment Devices from smelters certified under RMAP wherever possible. In this regard, where Template responses indicate that suppliers are not using sources that have been certified as conformant to an independent third-party audit program such as RMAP, we engaged with the Tier One Supplier and/or Original Equipment Manufacturer (“OEM”) to encourage them to establish an alternative source of Conflict Minerals. Intuit holds regular meetings with its Tier One Supplier to discuss and assess whether all of the suppliers in the supply chain are diligently working to get the Template completed in an accurate and timely manner. We also update our Audit and Risk Committee at least annually on our conflict minerals reporting.

Step 4: Support Independent Third-Party Audit of Supply Chain Due Diligence

Intuit does not have direct relationships with smelters and is many steps removed from the mines, smelters and refiners. We do not perform direct audits of these entities’ supply chains for 3TGs. However, Intuit supports the development of, and smelters’ participation in, independent third party audits of smelters’ sourcing practices, such as the RMAP.

Step 5: Report on Supply Chain Diligence

Intuit is committed to full and transparent disclosure of its efforts to facilitate the responsible sourcing of minerals for its products. This CMR is available on Intuit’s website at https://www.intuit.com/company/supplier-programs/policies/conflict-mineral-policy/.

Results of Due Diligence

For the 2020 reporting period, we had reason to believe that the Conflict Minerals contained in the Intuit Payment Devices may have originated from the Covered Countries and may not have come from recycled or scrap sources. Intuit exercised vigilant due diligence as described above on the source and chain of custody of these necessary Conflict Minerals.

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Intuit’s efforts to determine the mine or location of origin of the Conflict Minerals in the Intuit Payment Devices with the greatest possible specificity consisted of the due diligence measures described in this CMR, including our efforts to seek information from our suppliers using the Template. Based on responses we received from our Tier One Supplier, 134 smelters were identified in Intuit’s supply chain. All of the identified smelters have been audited by the RMAP.

The table below illustrates our results by providing, for each relevant metal, the number and percentage of identified 3TG smelters that were RMAP-conformant during the 2020 reporting period.

Conflict MineralsTotal Smelters in Supply ChainTotal RMAP - Compliant Smelters% of RMAP- Compliant Smelters
Gold62 62 100 
Tantalum26 26 100 
Tin25 25 100 
Tungsten21 21 100 
Grand total134 134 100 

The percentage of Intuit’s RMAP-conformant smelters reflects our commitment to the Conflict Minerals Rules. For the 2019 reporting period, we disclosed in our CMR that 99% of the identified smelters were RMAP-conformant. This is because one gold smelter shut down during 2019 and therefore was not classified as conformant. The percentage of RMAP-conformant smelters was 100% in the 2020 reporting period. This is reflected in the table above.

Intuit cannot be certain that the list of 134 smelters is comprehensive and that there are no other smelters that contribute to the components in the Intuit Payment Devices. Consequently, we are unable to determine that the Conflict Minerals utilized in the Intuit Payment Devices did not originate in the Covered Countries or directly or indirectly benefit armed groups.

Although Intuit requested information from the suppliers at a product level, almost all supplier responses provided information at a company or division level, but not at a product level, and, therefore, the information provided was not necessarily limited to smelters confirmed to be in Intuit’s supply chain. As a result, Intuit is unable to validate whether the facilities identified by the OEMs, which are listed in Annex A below, in fact contributed Conflict Minerals to Intuit Payment Devices.  Annex B below includes an aggregated list of the countries of origin from which the facilities listed in Annex A are believed to source Conflict Minerals, based on information provided by suppliers and the RMI, of which Intuit is a member.

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Additional Mitigation Efforts

Intuit is committed to responsible sourcing and has been dedicated to ensuring that any Conflict Minerals contained in its products do not finance armed groups. Towards this end, Intuit has made notable progress in ensuring that Conflict Minerals are responsibly sourced from smelters that are conformant with RMAP.

Intuit is also a member of the RBA and has developed procedures consistent with the RBA recommendations for responsible sourcing of Conflict Minerals, as set forth in the OECD Guidance. Intuit also attends the bi-weekly RBA Conflict Minerals Due Diligence Calls chaired by the RBA and has implemented the best practices that are relevant to its supply chain that have been developed by the RMI. As an active member of the RBA, Intuit will continue to monitor and implement relevant best practices recommendations from the RBA as well as Conflict Minerals trends that impact Intuit’s business.

Further, Intuit:

while on-boarding our Tier One Supplier, included a provision in the supplier contract to ensure that it is committed to responsible sourcing of Conflict Minerals;
conducts benchmarking sessions with manufacturers and other technology companies in Silicon Valley;
sets up webinars with its suppliers to address concerns and questions; and
continues to work with suppliers to see that they have robust due diligence practices.

We also continue to work with our Tier One Supplier and the RBA to ensure that our Tier One Supplier continues to make all reasonable efforts to work with OEMs to source from smelters that are compliant with the RMAP.

Finally, while we are pleased with our progress in developing a conflict-free supply chain of Conflict Minerals in our existing products, we may continue to introduce new products, including devices which may contain certain Conflict Minerals necessary to their functionality or production. To that extent, we will continue to take all reasonable efforts to source such Conflict Minerals from smelters that are compliant with the RMAP.



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ANNEX A
2020 Facility List

The following is a list of the facilities that the suppliers we surveyed reported as being in their supply chains.
MineralSmelter NameCountry
TungstenA.L.M.T. Corp.JAPAN
TungstenChenzhou Diamond Tungsten Products Co., Ltd.CHINA
TungstenChongyi Zhangyuan Tungsten Co., Ltd.CHINA
TungstenFujian Jinxin Tungsten Co., Ltd.CHINA
TungstenGlobal Tungsten & Powders Corp.UNITED STATES OF AMERICA
TungstenGanzhou Jiangwu Ferrotungsten Co., Ltd.CHINA
TungstenGuangdong Xianglu Tungsten Co., Ltd.CHINA
TungstenGanzhou Huaxing Tungsten Products Co., Ltd.CHINA
TungstenH.C. Starck Tungsten GmbHGERMANY
TungstenH.C. Starck Smelting GmbH & Co. KGGERMANY
TungstenHunan Chenzhou Mining Co., Ltd.CHINA
TungstenHydrometallurg, JSCRUSSIAN FEDERATION
TungstenJapan New Metals Co., Ltd.JAPAN
TungstenJiangxi Xinsheng Tungsten Industry Co., Ltd.CHINA
TungstenKennametal HuntsvilleUNITED STATES OF AMERICA
TungstenKennametal FallonUNITED STATES OF AMERICA
TungstenMasan Tungsten Chemical LLC (MTC)VIET NAM
TungstenTejing (Vietnam) Tungsten Co., Ltd.VIET NAM
TungstenWolfram Bergbau und Hutten AGAUSTRIA
TungstenXiamen Tungsten Co., Ltd.CHINA
TungstenXiamen Tungsten (H.C.) Co., Ltd.CHINA
TinAlphaUNITED STATES OF AMERICA
TinChina Tin Group Co., Ltd.CHINA
TinYunnan Chengfeng Non-ferrous Metals Co., Ltd.CHINA
TinYunnan Tin Company LimitedCHINA
TinDowaJAPAN
TinEM VintoBOLIVIA (PLURINATIONAL STATE OF)
TinFenix MetalsPOLAND
TinGejiu Kai Meng Industry and Trade LLCCHINA
TinGejiu Non-Ferrous Metal Processing Co., Ltd.CHINA
TinHuichang Jinshunda Tin Co., Ltd.CHINA
TinMagnu's Minerais Metais e Ligas Ltda.BRAZIL
TinMalaysia Smelting Corporation (MSC)MALAYSIA
TinMelt Metais e Ligas S.A.BRAZIL
TinMineracao Taboca S.A.BRAZIL
TinPT ATD Makmur Mandiri JayaINDONESIA
TinPT Mitra Stania PrimaINDONESIA
TinPT Refined Bangka TinINDONESIA
TinPT Timah Tbk KundurINDONESIA
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TinPT Timah Tbk MentokINDONESIA
TinRui Da HungTAIWAN, PROVINCE OF CHINA
TinSoft Metais Ltda.BRAZIL
TinThaisarcoTHAILAND
TinWhite Solder Metalurgia e Mineracao Ltda.BRAZIL
TinYunnan Chengfeng Non-ferrous Metals Co., Ltd.CHINA
TinYunnan Tin Company LimitedCHINA
TantalumChangsha South Tantalum Niobium Co., Ltd.CHINA
TantalumExotech Inc.UNITED STATES OF AMERICA
TantalumF&X Electro-Materials Ltd.CHINA
TantalumGlobal Advanced Metals BoyertownUNITED STATES OF AMERICA
TantalumGlobal Advanced Metals AizuJAPAN
TantalumGuangdong Zhiyuan New Material Co., Ltd.CHINA
TantalumH.C. Starck Co., Ltd.THAILAND
TantalumH.C. Starck Tantalum and Niobium GmbHGERMANY
TantalumH.C. Starck Hermsdorf GmbHGERMANY
TantalumH.C. Starck Inc.UNITED STATES OF AMERICA
TantalumH.C. Starck Smelting GmbH & Co. KGGERMANY
TantalumHengyang King Xing Lifeng New Materials Co., Ltd.CHINA
TantalumJiuJiang JinXin Nonferrous Metals Co., Ltd.CHINA
TantalumJiujiang Tanbre Co., Ltd.CHINA
TantalumKEMET Blue MetalsMEXICO
TantalumLSM Brasil S.A.BRAZIL
TantalumMineracao Taboca S.A.BRAZIL
TantalumMitsui Mining and Smelting Co., Ltd.JAPAN
TantalumMetallurgical Products India Pvt., Ltd.INDIA
TantalumNPM Silmet ASESTONIA
TantalumNingxia Orient Tantalum Industry Co., Ltd.CHINA
TantalumQuantumCleanUNITED STATES OF AMERICA
TantalumYanling Jincheng Tantalum & Niobium Co., Ltd.CHINA
TantalumSolikamsk Magnesium Works OAORUSSIAN FEDERATION
TantalumTaki Chemical Co., Ltd.JAPAN
TantalumTelex MetalsUNITED STATES OF AMERICA
GoldAida Chemical Industries Co., Ltd.JAPAN
GoldAllgemeine Gold-und Silberscheideanstalt A.G.GERMANY
GoldAngloGold Ashanti Corrego do Sitio MineracaoBRAZIL
GoldArgor-Heraeus S.A.SWITZERLAND
GoldAsahi Pretec Corp.JAPAN
GoldAsahi Refining Canada Ltd.CANADA
GoldAsahi Refining USA Inc.UNITED STATES OF AMERICA
GoldAsaka Riken Co., Ltd.JAPAN
GoldAurubis AGGERMANY
GoldBangko Sentral ng Pilipinas (Central Bank of the Philippines)PHILIPPINES




GoldCCR Refinery - Glencore Canada CorporationCANADA
GoldCendres + Metaux S.A.SWITZERLAND
GoldChimet S.p.A.ITALY
GoldDSC (Do Sung Corporation)KOREA, REPUBLIC OF
GoldDODUCO Contacts and Refining GmbHGERMANY
GoldDowaJAPAN
GoldEco-System Recycling Co., Ltd. East PlantJAPAN
GoldHeraeus Metals Hong Kong Ltd.CHINA
GoldHeraeus Precious Metals GmbH & Co. KGGERMANY
GoldInner Mongolia Qiankun Gold and Silver Refinery Share Co., Ltd.CHINA
GoldIshifuku Metal Industry Co., Ltd.JAPAN
GoldIstanbul Gold RefineryTURKEY
GoldJapan MintJAPAN
GoldJiangxi Copper Co., Ltd.CHINA
GoldJSC UralelectromedRUSSIAN FEDERATION
GoldJX Nippon Mining & Metals Co., Ltd.JAPAN
GoldKazzincKAZAKHSTAN
GoldKennecott Utah Copper LLCUNITED STATES OF AMERICA
GoldKojima Chemicals Co., Ltd.JAPAN
GoldMatsuda Sangyo Co., Ltd.JAPAN
GoldMetalor Technologies (Hong Kong) Ltd.CHINA
GoldMetalor Technologies (Singapore) Pte., Ltd.SINGAPORE
GoldMetalor Technologies S.A.SWITZERLAND
GoldMetalor USA Refining CorporationUNITED STATES OF AMERICA
GoldMetalurgica Met-Mex Penoles S.A. De C.V.MEXICO
GoldMitsubishi Materials CorporationJAPAN
GoldMoscow Special Alloys Processing PlantRUSSIAN FEDERATION
GoldNadir Metal Rafineri San. Ve Tic. A.S.TURKEY
GoldNihon Material Co., Ltd.JAPAN
GoldOhura Precious Metal Industry Co., Ltd.JAPAN
GoldOJSC "The Gulidov Krasnoyarsk Non-Ferrous Metals Plant" (OJSC Krastsvetmet)RUSSIAN FEDERATION
GoldPAMP S.A.SWITZERLAND
GoldPX Precinox S.A.SWITZERLAND
GoldRoyal Canadian MintCANADA
GoldSamduck Precious MetalsKOREA, REPUBLIC OF
GoldSEMPSA Joyeria Plateria S.A.SPAIN
GoldShandong Zhaojin Gold & Silver Refinery Co., Ltd.CHINA
GoldSOE Shyolkovsky Factory of Secondary Precious MetalsRUSSIAN FEDERATION
GoldSolar Applied Materials Technology Corp.TAIWAN, PROVINCE OF CHINA
GoldSumitomo Metal Mining Co., Ltd.JAPAN
GoldTanaka Kikinzoku Kogyo K.K.JAPAN
GoldThe Refinery of Shandong Gold Mining Co., Ltd.CHINA
GoldUmicore S.A. Business Unit Precious Metals RefiningBELGIUM
GoldUmicore Precious Metals ThailandTHAILAND




GoldUnited Precious Metal Refining, Inc.UNITED STATES OF AMERICA
GoldValcambi S.A.SWITZERLAND
GoldWestern Australian Mint (T/a The Perth Mint)AUSTRALIA
GoldCCR Refinery - Glencore Canada CorporationCANADA
GoldYamakin Co., Ltd.JAPAN
GoldYokohama Metal Co., Ltd.JAPAN
GoldZhongyuan Gold Smelter of Zhongjin Gold CorporationCHINA
GoldGold Refinery of Zijin Mining Group Co., Ltd.CHINA






ANNEX B
Countries of origin of the Conflict Minerals that the facilities listed in Annex A process are believed to include the following countries, based on information provided by suppliers and RMI:
L1L2
Level 1 countries are not identified as conflict regions or plausible countries for smuggling, export or transit of materials containing tantalum, tin, tungsten or gold from the Covered Countries.Level 2 countries are known Covered Countries or plausible countries for smuggling, export or transit of materials containing tantalum, tin, tungsten or gold from the Covered Countries.
Australia
Austria
Belgium
Bolivia
Brazil
Canada
China
Estonia
Germany
Hong Kong
India
Indonesia
Italy
Japan
Kazakhstan
Korea
Malaysia
Mexico
Philippines
Poland
Russia
Singapore
Spain
Sweden
Switzerland
Taiwan
Thailand
Turkey
United States of America
Vietnam

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