10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

þ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended April 30, 2011

OR

o Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     .

Commission File Number 0-21180

INTUIT INC.

(Exact name of registrant as specified in its charter)

Delaware	77-0034661
(State of incorporation)	(IRS employer identification no.)

2700 Coast Avenue, Mountain View, CA 94043
(Address of principal executive offices)

(650) 944-6000
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes þ No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer þ	Accelerated filer o	Non-accelerated filer o	Smaller reporting company o
		(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 304,000,417 shares of Common Stock, $0.01 par value, were outstanding at May 23, 2011.

INTUIT INC.
FORM 10-Q
INDEX

	Page
	Number
PART I FINANCIAL INFORMATION
ITEM 1: Financial Statements
Condensed Consolidated Statements of Operations for the three and nine months ended April 30, 2011 and 2010		3
Condensed Consolidated Balance Sheets at April 30, 2011 and July 31, 2010		4
Condensed Consolidated Statements of Stockholders’ Equity for the nine months ended April 30, 2011 and 2010		5
Condensed Consolidated Statements of Cash Flows for the three and nine months ended April 30, 2011 and 2010		6
Notes to Condensed Consolidated Financial Statements		7
ITEM 2: Management’s Discussion and Analysis of Financial Condition and Results of Operations		19
ITEM 3: Quantitative and Qualitative Disclosures about Market Risk		32
ITEM 4: Controls and Procedures		33
PART II OTHER INFORMATION
ITEM 1: Legal Proceedings		34
ITEM 1A: Risk Factors		35
ITEM 2: Unregistered Sales of Equity Securities and Use of Proceeds		44
ITEM 6: Exhibits		45
Signatures		46
EX-31.01
EX-31.02
EX-32.01
EX-32.02
EX-101 INSTANCE DOCUMENT
EX-101 SCHEMA DOCUMENT
EX-101 CALCULATION LINKBASE DOCUMENT
EX-101 LABELS LINKBASE DOCUMENT
EX-101 PRESENTATION LINKBASE DOCUMENT
EX-101 DEFINITION LINKBASE DOCUMENT

Intuit, the Intuit logo, QuickBooks, TurboTax, ProSeries, Lacerte, Quicken and Mint, among others, are registered trademarks and/or registered service marks of Intuit Inc., or one of its subsidiaries, in the United States and other countries. Other parties’ marks are the property of their respective owners.

2

PART I

ITEM 1

FINANCIAL STATEMENTS

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions, except per share amounts)	2011			2010			2011			2010
Net revenue:
Product	$	602		$	564		$	1,248		$	1,191
Service and other		1,246			1,043			2,010			1,727
Total net revenue		1,848			1,607			3,258			2,918
Costs and expenses:
Cost of revenue:
Cost of product revenue		32			34			110			117
Cost of service and other revenue		132			118			384			341
Amortization of acquired technology		4			5			13			43
Selling and marketing		351			309			901			766
Research and development		164			141			478			426
General and administrative		93			102			271			267
Amortization of other acquired intangible assets		11			10			33			31
Total costs and expenses		787			719			2,190			1,991
Operating income from continuing operations		1,061			888			1,068			927
Interest expense		(15	)		(15	)		(45	)		(46	)
Interest and other income, net		6			5			20			12
Income from continuing operations before income taxes		1,052			878			1,043			893
Income tax provision		364			302			352			306
Net income from continuing operations		688			576			691			587
Net income from discontinued operations		—			—			—			35
Net income	$	688		$	576		$	691		$	622
Basic net income per share from continuing operations	$	2.27		$	1.83		$	2.23		$	1.86
Basic net income per share from discontinued operations		—			—			—			0.11
Basic net income per share	$	2.27		$	1.83		$	2.23		$	1.97
Shares used in basic per share calculations		303			314			309			316
Diluted net income per share from continuing operations	$	2.20		$	1.78		$	2.16		$	1.80
Diluted net income per share from discontinued operations		—			—			—			0.11
Diluted net income per share	$	2.20		$	1.78		$	2.16		$	1.91
Shares used in diluted per share calculations		313			323			319			325

See accompanying notes.

3

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

	April 30,			July 31,
(In millions)	2011			2010
ASSETS
Current assets:
Cash and cash equivalents	$	1,369		$	214
Investments		459			1,408
Accounts receivable, net		266			135
Income taxes receivable		2			27
Deferred income taxes		100			117
Prepaid expenses and other current assets		65			57
Current assets before funds held for customers		2,261			1,958
Funds held for customers		383			337
Total current assets		2,644			2,295
Long-term investments		81			91
Property and equipment, net		565			510
Goodwill		1,910			1,914
Acquired intangible assets, net		203			256
Long-term deferred income taxes		53			41
Other assets		111			91
Total assets	$	5,567		$	5,198
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt	$	500		$	—
Accounts payable		196			143
Accrued compensation and related liabilities		201			206
Deferred revenue		337			387
Income taxes payable		209			14
Other current liabilities		218			134
Current liabilities before customer fund deposits		1,661			884
Customer fund deposits		383			337
Total current liabilities		2,044			1,221
Long-term debt		498			998
Other long-term obligations		204			158
Total liabilities		2,746			2,377
Commitments and contingencies
Stockholders’ equity:
Preferred stock		—			—
Common stock and additional paid-in capital		2,835			2,728
Treasury stock, at cost		(4,117	)		(3,315	)
Accumulated other comprehensive income		15			11
Retained earnings		4,088			3,397
Total stockholders’ equity		2,821			2,821
Total liabilities and stockholders’ equity	$	5,567		$	5,198

See accompanying notes.

4

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)

				Common
				Stock and						Accumulated
	Shares of			Additional						Other				Total
(In millions, except shares in	Common			Paid-In			Treasury			Comprehensive		Retained		Stockholders’
thousands)	Stock			Capital			Stock			Income		Earnings		Equity
Balance at July 31, 2010		313,861		$	2,728		$	(3,315	)	$	11	$	3,397	$	2,821
Components of comprehensive net income:
Net income		—			—			—			—		691		691
Other comprehensive income, net of tax		—			—			—			4		—		4
Comprehensive net income															695
Issuance of common stock under employee stock plans		10,968			30			258			—		—		288
Restricted stock units released, net of taxes		2,101			(103	)		50			—		—		(53	)
Stock repurchases under stock repurchase programs		(23,349	)		—			(1,110	)		—		—		(1,110	)
Tax benefit from share-based compensation plans		—			68			—			—		—		68
Share-based compensation expense		—			112			—			—		—		112
Balance at April 30, 2011		303,581		$	2,835		$	(4,117	)	$	15	$	4,088	$	2,821

				Common
				Stock and						Accumulated
	Shares of			Additional						Other					Total
(In millions, except shares in	Common			Paid-In			Treasury			Comprehensive		Retained			Stockholders’
thousands)	Stock			Capital			Stock			Income		Earnings			Equity
Balance at July 31, 2009		322,766		$	2,547		$	(2,846	)	$	7	$	2,849		$	2,557
Components of comprehensive net income:
Net income		—			—			—			—		622			622
Other comprehensive income, net of tax		—			—			—			4		—			4
Comprehensive net income																626
Issuance of common stock under employee stock plans		13,808			26			302			—		(2	)		326
Restricted stock units released, net of taxes		1,517			(24	)		28			—		(24	)		(20	)
Stock repurchases under stock repurchase programs		(24,624	)		—			(750	)		—		—			(750	)
Tax benefit from share-based compensation plans		—			23			—			—		—			23
Share-based compensation expense		—			99			—			—		—			99
Other		—			(3	)		—			—		—			(3	)
Balance at April 30, 2010		313,467		$	2,668		$	(3,266	)	$	11	$	3,445		$	2,858

See accompanying notes.

5

INTUIT INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions)	2011			2010			2011			2010
Cash flows from operating activities:
Net income	$	688		$	576		$	691		$	622
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		42			36			120			111
Amortization of acquired intangible assets		19			19			58			87
Share-based compensation expense		39			34			112			99
Pre-tax gain on sale of discontinued operations		—			—			—			(58	)
Deferred income taxes		9			(39	)		25			(61	)
Tax benefit from share-based compensation plans		20			13			68			23
Excess tax benefit from share-based compensation plans		(18	)		(6	)		(59	)		(11	)
Other		3			5			14			15
Total adjustments		114			62			338			205
Changes in operating assets and liabilities:
Accounts receivable		215			264			(130	)		(67	)
Prepaid expenses, income taxes receivable and other assets		132			48			17			43
Accounts payable		(4	)		7			42			63
Accrued compensation and related liabilities		53			51			(6	)		13
Deferred revenue		(226	)		(201	)		(41	)		(45	)
Income taxes payable		208			280			195			282
Other liabilities		(42	)		(43	)		79			33
Total changes in operating assets and liabilities		336			406			156			322
Net cash provided by operating activities		1,138			1,044			1,185			1,149
Cash flows from investing activities:
Purchases of available-for-sale debt securities		(80	)		(1,169	)		(803	)		(1,719	)
Sales of available-for-sale debt securities		55			205			1,470			623
Maturities of available-for-sale debt securities		33			69			254			112
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations		(46	)		39			(20	)		146
Net change in customer fund deposits		46			(38	)		46			3
Purchases of property and equipment		(31	)		(34	)		(166	)		(100	)
Acquisitions of intangible assets		—			(3	)		(3	)		(3	)
Acquisitions of businesses, net of cash acquired		—			—			—			(141	)
Proceeds from divestiture of businesses		—			—			—			122
Other		(1	)		(3	)		2			(9	)
Net cash provided by (used in) investing activities		(24	)		(934	)		780			(966	)
Cash flows from financing activities:
Net proceeds from issuance of common stock under stock plans		70			176			288			326
Tax payments related to issuance of restricted stock units		(22	)		—			(53	)		(20	)
Purchases of treasury stock		(250	)		(200	)		(1,110	)		(750	)
Excess tax benefit from share-based compensation plans		18			6			59			11
Other		—			(1	)		—			(2	)
Net cash used in financing activities		(184	)		(19	)		(816	)		(435	)
Effect of exchange rates on cash and cash equivalents		6			2			6			3
Net increase (decrease) in cash and cash equivalents		936			93			1,155			(249	)
Cash and cash equivalents at beginning of period		433			337			214			679
Cash and cash equivalents at end of period	$	1,369		$	430		$	1,369		$	430

See accompanying notes.

6

INTUIT INC.

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(UNAUDITED)

1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Intuit Inc. provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. Our flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Our Financial Services business provides online banking solutions and services to banks and credit unions. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. In November 2009 we acquired Mint Software Inc. for total consideration of approximately $170 million and in May 2010 we acquired Medfusion, Inc. for total consideration of approximately $89 million. We have included the results of operations for Mint and Medfusion in our consolidated results of operations from their respective dates of acquisition. In January 2010 we sold our Intuit Real Estate Solutions (IRES) business. We have reclassified our financial statements for all periods prior to the sale to reflect IRES as discontinued operations. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

We have included all adjustments, consisting only of normal recurring items and the reclassifications for discontinued operations discussed above, which we considered necessary for a fair presentation of our financial results for the interim periods presented. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2010. Results for the nine months ended April 30, 2011 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2011 or any other future period.

We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to reportable segments and discontinued operations.

Seasonality

Our QuickBooks, Consumer Tax and Accounting Professionals businesses are highly seasonal. Revenue from our QuickBooks software products tends to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. Seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31, when revenue from our tax businesses is minimal while operating expenses continue at relatively consistent levels.

Significant Accounting Policies

We describe our 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, 2010. As discussed below, on August 1, 2010 we adopted authoritative guidance on multiple-deliverable revenue arrangements. There have been no other changes to our significant accounting policies during the first nine months of fiscal 2011.

Multiple-Deliverable Revenue Arrangements

In October 2009 the Financial Accounting Standards Board (FASB) amended the accounting standards applicable to revenue recognition for multiple-deliverable revenue arrangements that are outside the scope of industry-specific software revenue recognition guidance. This new guidance amends the criteria for allocating consideration in multiple-deliverable revenue arrangements by establishing a selling price hierarchy. The selling price used for each deliverable will be based on vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. The guidance also eliminates the use of the residual method of allocation and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method.

We adopted this guidance on a prospective basis on August 1, 2010, and therefore applied it to relevant revenue arrangements originating or materially modified on or after that date.

7

VSOE generally exists when we sell the deliverable separately and we are normally able to establish VSOE for all deliverables in these multiple-element arrangements; however, in certain limited instances VSOE cannot be established. This may be because we infrequently sell each element separately, do not price products within a narrow range, or have a limited sales history, such as in the case of our emerging market offerings. When VSOE cannot be established, we attempt to establish selling price for each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately.

When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. We determine ESP for a product or service by considering multiple factors, including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices.

Our adoption of this new accounting guidance did not have a significant impact on the timing and pattern of revenue recognition when applied to multiple-element arrangements because our multiple-element offerings are predominantly software or software-related and VSOE exists for most of these offerings.

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

8

The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated.

	Three Months Ended				Nine Months Ended
	April 30,		April 30,		April 30,		April 30,
(In millions, except per share amounts)	2011		2010		2011		2010
Numerator:
Net income from continuing operations	$	688	$	576	$	691	$	587
Net income from discontinued operations		—		—		—		35
Net income	$	688	$	576	$	691	$	622
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding		303		314		309		316
Shares used in diluted per share amounts:
Weighted average common shares outstanding		303		314		309		316
Dilutive common equivalent shares from stock options and restricted stock awards		10		9		10		9
Dilutive weighted average common shares outstanding		313		323		319		325
Basic and diluted net income per share:
Basic net income per share from continuing operations	$	2.27	$	1.83	$	2.23	$	1.86
Basic net income per share from discontinued operations		—		—		—		0.11
Basic net income per share	$	2.27	$	1.83	$	2.23	$	1.97
Diluted net income per share from continuing operations	$	2.20	$	1.78	$	2.16	$	1.80
Diluted net income per share from discontinued operations		—		—		—		0.11
Diluted net income per share	$	2.20	$	1.78	$	2.16	$	1.91
Weighted average stock options and restricted stock units excluded from calculation due to anti-dilutive effect		1		7		—		13

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three or nine months ended April 30, 2011 or April 30, 2010. No customer accounted for 10% or more of total accounts receivable at April 30, 2011 or July 31, 2010.

Recent Accounting Pronouncements

ASU 2011-04, “Fair Value Measurement (Topic 820)”

On May 12, 2011 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04). This update amends Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurement and Disclosure.” ASU 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 is effective for annual and interim reporting periods beginning on or after December 15, 2011, which means that it will be effective for our fiscal quarter beginning February 1, 2012. The new guidance is to be adopted prospectively and early adoption is not permitted. We do not believe that adoption of ASU 2011-04 will have a significant impact on our financial position, results of operations or cash flows.

9

2. Fair Value Measurements

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.

The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:

• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.

• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.

• Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents, primarily money market funds	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
Municipal bonds		—		357		—		357		—		1,050		—		1,050
Municipal auction rate securities		—		—		77		77		—		—		87		87
Corporate notes		—		200		—		200		—		334		—		334
U.S. agency securities		—		77		—		77		—		174		—		174
Total available-for-sale debt securities		—		634		77		711		—		1,558		87		1,645
Total assets measured at fair value on a recurring basis	$	1,447	$	634	$	77	$	2,158	$	330	$	1,558	$	87	$	1,975
Liabilities:
Senior notes (1)	$	—	$	1,075	$	—	$	1,075	$	—	$	1,086	$	—	$	1,086

(1) Carrying value on our balance sheets at April 30, 2011 and July 31, 2010 was $998 million. See Note 8.

10

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
In cash and cash equivalents	$	1,239	$	—	$	—	$	1,239	$	143	$	—	$	—	$	143
In funds held for customers		208		—		—		208		187		—		—		187
Total cash equivalents	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
In investments	$	—	$	459	$	—	$	459	$	—	$	1,408	$	—	$	1,408
In funds held for customers		—		175		—		175		—		150		—		150
In long-term investments		—		—		77		77		—		—		87		87
Total available-for-sale debt securities	$	—	$	634	$	77	$	711	$	—	$	1,558	$	87	$	1,645

We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes and U.S. agency securities. We measure the fair values of these assets using quoted prices in active markets for similar instruments. Financial liabilities whose fair values we measure using Level 2 inputs consist of debt. See Note 8. We measure the fair value of our senior notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms. Financial assets whose fair values we measure using significant unobservable (Level 3) inputs consist of municipal auction rate securities that are no longer liquid. These securities are included in long-term investments on our balance sheets at April 30, 2011 and July 31, 2010 based on the maturities of the underlying securities. There were no significant transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the nine months ended April 30, 2011.

The following table presents a reconciliation of activity for our Level 3 assets for the nine months ended April 30, 2011.

	Nine Months Ended
	April 30,
(In millions)	2011
Beginning balance	$	87
Settlements at par		(10	)
Ending balance	$	77

We estimated the fair values of these municipal auction rate securities at April 30, 2011 and July 31, 2010 using a discounted cash flow model that we prepared. Using our discounted cash flow model we determined that the fair values of the municipal auction rate securities we held at April 30, 2011 were approximately equal to their par values. As a result, we recorded no decrease in the fair values of those securities for the nine months then ended. We do not intend to sell our municipal auction rate securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity. Based on our expected operating cash flows and our other sources of cash, we do not believe that the reduction in liquidity of our municipal auction rate securities will have a material impact on our overall ability to meet our liquidity needs.

3. Cash and Cash Equivalents, Investments and Funds Held for Customers

We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments consist of available-for-sale investment-grade debt securities that we carry at fair value. Funds held for customers consist of cash and cash equivalents and available-for-sale investment-grade debt securities. Long-term investments consist primarily of municipal auction rate securities that we carry at fair value. See Note 2. Except for direct obligations of the United States government,

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securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer.

The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet classification at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	1,369	$	1,369	$	214	$	214
Investments		458		459		1,407		1,408
Funds held for customers		382		383		336		337
Long-term investments		81		81		91		91
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	1,577	$	1,577	$	401	$	401
Available-for-sale debt securities:
Municipal bonds		357		357		1,049		1,050
Municipal auction rate securities		77		77		87		87
Corporate notes		199		200		333		334
U.S. agency securities		76		77		174		174
Total available-for-sale debt securities		709		711		1,643		1,645
Other long-term investments		4		4		4		4
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three and nine months ended April 30, 2011 and April 30, 2010 were not significant. We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at April 30, 2011 and July 31, 2010 were not significant.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at April 30, 2011 were not other-than-temporarily impaired. While 52 available-for-sale debt securities had fair values that were a total of $0.4 million below amortized cost at that date, we do not intend to sell these securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity. Two of these securities had been in an unrealized loss position for more than 12 months at April 30, 2011. The unrealized losses at April 30, 2011 are due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with the specific securities.

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The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Due within one year	$	283	$	283	$	432	$	433
Due within two years		182		183		365		366
Due within three years		109		110		164		164
Due after three years		135		135		682		682
Total available-for-sale debt securities	$	709	$	711	$	1,643	$	1,645

Available-for-sale debt securities due after three years in the table above included $77 million in municipal auction rate securities at April 30, 2011 and $87 million in municipal auction rate securities at July 31, 2010. See Note 2. Of the remaining available-for-sale debt securities, 83% and 89% had an interest reset date, put date or mandatory call date within two years of those dates.

4. Accumulated Other Comprehensive Income

We add components of other comprehensive income, such as changes in the fair value of available-for-sale debt securities and foreign currency translation adjustments, to our net income or loss to arrive at comprehensive net income or loss. For the three and nine months ended April 30, 2011 and April 30, 2010, other comprehensive income was not significant.

The balances in accumulated other comprehensive income in the equity section of our balance sheets at April 30, 2011 and July 31, 2010 consisted primarily of cumulative foreign currency translation adjustments and were not significant.

5. Business Combinations

We completed the business combinations described below during fiscal 2010. We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition. Their results of operations for periods prior to the dates of acquisition were not material, individually or in the aggregate, when compared with our consolidated results of operations. The fair values assigned to the identifiable intangible assets acquired were based on estimates and assumptions determined by management.

Medfusion, Inc.

On May 21, 2010 we acquired privately held Medfusion, Inc. for total consideration of approximately $89 million. The total consideration included approximately $10 million for the fair value of cash retention bonuses that is being charged to expense over a three year service period. Medfusion is a provider of online patient-to-provider communication solutions and became part of our Other Businesses segment. We acquired Medfusion to expand our online healthcare offerings in support of our Connected Services strategy.

Under the acquisition method of accounting we allocated the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. We recorded the excess of consideration over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $8 million of the consideration to net tangible liabilities and approximately $23 million of the consideration to identified intangible assets. We recorded the excess consideration of approximately $62 million as goodwill, none of which is deductible for income tax purposes. The identified intangible assets are being amortized over a weighted average life of six years.

Mint Software Inc.

On November 2, 2009 we acquired all of the outstanding equity interests of Mint Software Inc. for total consideration of approximately $170 million. The total consideration included approximately $24 million for cash retention bonuses and the fair value of assumed equity awards and Intuit common stock issued to the holder of Mint Series D Preferred Stock. The total of $24 million is being charged to expense over a three year service period. Mint is a provider of online personal finance services and became part of our Other Businesses segment. We acquired Mint to expand our online personal finance offerings in support of our Connected Services strategy.

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Under the acquisition method of accounting we allocated the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. We recorded the excess of consideration over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $1 million of the consideration to tangible assets and liabilities and approximately $43 million of the consideration to identified intangible assets. We recorded the excess consideration of approximately $102 million as goodwill, none of which is deductible for income tax purposes. The identified intangible assets are being amortized over a weighted average life of seven years.

6. Discontinued Operations

On January 15, 2010 we sold our Intuit Real Estate Solutions (IRES) business for approximately $128 million in cash and recorded a net gain on disposal of $35 million. The decision to sell IRES was a result of management’s desire to focus resources on Intuit’s core products and services. IRES was part of our Other Businesses segment.

We accounted for IRES as a discontinued operation and have therefore segregated the operating results of IRES from continuing operations in our statements of operations for all periods prior to the sale. For the nine months ended April 30, 2010, net revenue from IRES was $33 million and net income from IRES was less than $1 million, excluding the net gain on disposal. Because IRES operating cash flows were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

7. Current Liabilities

Current Portion of Long-Term Debt

The current portion of long-term debt consists of $500 million of 5.40% senior unsecured notes due on March 15, 2012, less the unamortized discount. Because their contractual maturities are now within one year, we transferred these notes from long-term liabilities to current liabilities during the third quarter of fiscal 2011. See Note 8, “Long-Term Obligations — Long-Term Debt,” for more information.

Unsecured Revolving Credit Facility

On March 22, 2007 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on March 22, 2012. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings. The applicable interest rate will be increased by 0.05% for any period in which the total principal amount of advances and letters of credit under the credit facility exceeds $250 million. The agreement includes covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We were in compliance with these covenants at April 30, 2011. We may use amounts borrowed under this credit facility for general corporate purposes or for future acquisitions or expansion of our business. To date we have not borrowed under this credit facility.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

	April 30,		July 31,
(In millions)	2011		2010
Reserve for product returns	$	57	$	20
Reserve for rebates		48		11
Current portion of license fee payable		10		10
Current portion of deferred rent		7		7
Interest payable		7		21
Executive deferred compensation plan liabilities		54		43
Other		35		22
Total other current liabilities	$	218	$	134

The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Seasonality.”

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8. Long-Term Obligations

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.40% senior unsecured notes due on March 15, 2012 and $500 million of 5.75% senior unsecured notes due on March 15, 2017 (together, the Notes), for a total principal amount of $1 billion. We carried the Notes at face value less the unamortized discount of $2 million on our balance sheets at April 30, 2011 and July 31, 2010. Because their contractual maturities are now within one year, we transferred the March 2012 notes from long-term liabilities to current liabilities during the third quarter of fiscal 2011. The Notes are redeemable by Intuit at any time, subject to a make-whole premium. The Notes include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. We paid $56 million in cash for interest on the Notes during the nine months ended April 30, 2011 and April 30, 2010.

Other Long-Term Obligations

Other long-term obligations were as follows at the dates indicated:

	April 30,			July 31,
(In millions)	2011			2010
Total license fee payable	$	69		$	65
Total deferred rent		53			60
Long-term deferred revenue		39			29
Long-term income tax liabilities		40			20
Long-term payables		19			—
Other		2			3
Total long-term obligations		222			177
Less current portion (included in other current liabilities)		(18	)		(19	)
Long-term obligations due after one year	$	204		$	158

9. Income Taxes

Effective Tax Rate

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period. Our effective tax rate for the three months ended April 30, 2011 was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the three months ended April 30, 2010 was approximately 34%. In that quarter we recorded discrete tax benefits that were primarily related to foreign tax credit benefits associated with the distribution of profits from our non-U.S. subsidiaries and our plans to indefinitely reinvest substantially all remaining non-U.S. earnings in support of our international expansion plans. Excluding those discrete benefits, our effective tax rate for that period was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

Our effective tax rate for the nine months ended April 30, 2011 was approximately 34%. Excluding discrete tax benefits primarily related to the retroactive reinstatement of the federal research and experimentation credit as described below, our effective tax rate for that period was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the nine months ended April 30, 2010 was approximately 34%. In that period we recorded discrete tax benefits as described above. Excluding those discrete tax benefits, our effective tax rate for that period was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

In December 2010 the Tax Relief, Unemployment Insurance Reauthorization, and Jobs Creation Act of 2010 was signed into law. The Act includes a reinstatement of the federal research and experimentation credit through December 31, 2011 that was

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retroactive to January 1, 2010. We recorded a discrete tax benefit of approximately $9 million for the retroactive amount related to fiscal 2010 and the first quarter of fiscal 2011 during the second quarter of fiscal 2011.

Unrecognized Tax Benefits and Other Considerations

The total amount of our unrecognized tax benefits at July 31, 2010 was $35 million. Net of related deferred tax assets, unrecognized tax benefits were $30 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $30 million. There were no material changes to these amounts during the nine months ended April 30, 2011. We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months.

10. Stockholders’ Equity

Stock Repurchase Programs

Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. We repurchased 23.3 million shares for $1.11 billion under these programs during the nine months ended April 30, 2011 and 24.6 million shares for $750 million under these programs during the nine months ended April 30, 2010. At April 30, 2011, we had authorization from our Board of Directors to expend up to an additional $890 million for stock repurchases through August 16, 2013.

To facilitate the stock repurchase program described above, from time to time we repurchase shares in the open market. On January 3, 2011 we entered into an accelerated share repurchase (ASR) agreement with a large financial institution to repurchase $250 million of Intuit’s common stock on an accelerated basis. We entered into this ASR agreement in order to repurchase shares at a guaranteed discount from the average price of our stock over a specified period of time. We had the contractual right to cancel the ASR agreement without any financial or other obligation at any time prior to February 2, 2011. On February 2, 2011 we paid $250 million to the financial institution and received an initial delivery of 4.2 million shares of Intuit common stock. On April 21, 2011 we received a final delivery of 0.7 million shares for a total of 4.9 million shares at $51.12 per share. The total number of shares delivered generally was determined by applying an agreed discount to the average of the daily volume weighted average price of Intuit common shares traded during the pricing period. We reflected the shares delivered to us by the financial institution as treasury shares as of the dates they were delivered in computing weighted average shares outstanding for both basic and diluted net income per share.

Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.

Share-Based Compensation Expense

The following table summarizes the total share-based compensation expense that we recorded for the periods shown.

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions, except per share amounts)	2011			2010			2011			2010
Cost of revenue	$	2		$	2		$	5		$	7
Selling and marketing		12			11			33			30
Research and development		13			10			38			30
General and administrative		12			11			36			31
Discontinued operations		—			—			—			1
Total share-based compensation expense		39			34			112			99
Income tax benefit		(14	)		(12	)		(39	)		(35	)
Decrease in net income	$	25		$	22		$	73		$	64
Decrease in net income per share:
Basic	$	0.08		$	0.07		$	0.24		$	0.20
Diluted	$	0.08		$	0.07		$	0.23		$	0.20

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Stock Option Activity and Related Share-Based Compensation Expense

A summary of activity under all share-based compensation plans for the nine months ended April 30, 2011 was as follows:

				Options Outstanding
							Weighted
							Average
	Shares						Exercise
	Available			Number			Price
(Shares in thousands)	for Grant			of Shares			Per Share
Balance at July 31, 2010		8,761			32,593		$	28.45
Additional shares authorized		31,000			—			—
Options granted		(772	)		772			47.22
Restricted stock units granted (2)		(982	)		—			—
Options exercised		—			(10,361	)		25.68
Options canceled or expired (1)		749			(787	)		31.08
Restricted stock units forfeited (1)(2)		1,217			—			—
Balance at April 30, 2011		39,973			22,217		$	30.30
Exercisable at April 30, 2011					13,342		$	27.36

(1)	Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
(2)	Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.

At April 30, 2011, there was approximately $62 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 1.9 years.

Restricted Stock Unit Activity and Related Share-Based Compensation Expense

A summary of restricted stock unit activity for the nine months ended April 30, 2011 was as follows:

	Restricted Stock Units
				Weighted
				Average
	Number			Grant Date
(Shares in thousands)	of Shares			Fair Value
Nonvested at July 31, 2010		11,531		$	30.93
Granted		585			42.34
Vested		(3,379	)		26.21
Forfeited		(692	)		31.23
Nonvested at April 30, 2011		8,045		$	33.71

At April 30, 2011, there was approximately $142 million of unrecognized compensation cost related to non-vested RSUs and restricted stock that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.0 years.

11. Litigation

Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that the ultimate amount of liability, if any, for any pending claims of any type (either alone or combined) will not materially affect our financial position, results of operations or cash flows. The ultimate outcome of any

17

litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect our business.

12. Segment Information

We have defined seven reportable segments 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.

All of our business segments except Other Businesses 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 that are not allocated to specific segments in unallocated corporate items. Unallocated corporate items also include amortization of acquired technology and amortization of other acquired intangible assets.

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, 2010. 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 our Other Businesses segment for the nine months ended April 30, 2010 have been adjusted to exclude results for our Intuit Real Estate Solutions business, which we sold in January 2010. See Note 6.

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions)	2011			2010			2011			2010
Net revenue:
Financial Management Solutions	$	183		$	164		$	524		$	452
Employee Management Solutions		115			103			338			305
Payment Solutions		93			79			258			233
Consumer Tax		1,036			880			1,270			1,120
Accounting Professionals		225			205			372			351
Financial Services		89			85			254			247
Other Businesses		107			91			242			210
Total net revenue	$	1,848		$	1,607		$	3,258		$	2,918
Operating income:
Financial Management Solutions	$	61		$	44		$	154		$	106
Employee Management Solutions		70			63			197			180
Payment Solutions		20			15			44			50
Consumer Tax		853			714			877			771
Accounting Professionals		187			167			241			229
Financial Services		20			18			57			57
Other Businesses		42			38			59			63
Total segment operating income		1,253			1,059			1,629			1,456
Unallocated corporate items:
Share-based compensation expense		(39	)		(34	)		(112	)		(98	)
Other common expenses		(138	)		(122	)		(403	)		(357	)
Amortization of acquired technology		(4	)		(5	)		(13	)		(43	)
Amortization of other acquired intangible assets		(11	)		(10	)		(33	)		(31	)
Total unallocated corporate items		(192	)		(171	)		(561	)		(529	)
Total operating income from continuing operations	$	1,061		$	888		$	1,068		$	927

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ITEM 2
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS

Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) includes the following sections:

• Executive Overview that discusses at a high level our operating results and some of the trends that affect our business.

• Significant changes since our most recent Annual Report on Form 10-K in the Critical Accounting Policies and Estimates that we believe are important to understanding the assumptions and judgments underlying our financial statements.

• Results of Operations that includes a more detailed discussion of our revenue and expenses.

• Liquidity and Capital Resources which discusses key aspects of our statements of cash flows, changes in our balance sheets, and our financial commitments.

You should note that this MD&A discussion contains forward-looking statements that involve risks and uncertainties. Please see Item 1A in Part II of this Quarterly Report on Form 10-Q for important information to consider when evaluating such statements.

You should read this MD&A in conjunction with the financial statements and related notes in Part I, Item 1 of this report and our Annual Report on Form 10-K for the fiscal year ended July 31, 2010. In November 2009 we acquired Mint Software Inc. for total consideration of approximately $170 million and in May 2010 we acquired Medfusion, Inc. for total consideration of approximately $89 million. We have included the results of operations for Mint and Medfusion in our consolidated results of operations from their respective dates of acquisition. In January 2010 we sold our Intuit Real Estate Solutions (IRES) business. We have reclassified our financial statements for all periods prior to the sale to reflect IRES as discontinued operations. Unless noted otherwise, the following discussion pertains to our continuing operations.

Executive Overview

This overview provides a high level discussion of our operating results and some of the trends that affect our business. We believe that an understanding of these trends is important in order to understand our financial results for the first nine months of fiscal 2011 as well as our future prospects. This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Quarterly Report on Form 10-Q.

About Intuit

Intuit is a leading provider of business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. We organize our portfolio of businesses into four principal categories — Small Business Group, Tax, Financial Services and Other Businesses. These categories include seven financial reporting segments.

Small Business Group: This category includes three segments — Financial Management Solutions, Employee Management Solutions, and Payment Solutions.

• Our Financial Management Solutions segment includes QuickBooks financial and business management software and services; technical support; financial supplies; and Intuit Websites, which provides website design and hosting services for small and medium-sized businesses.

• Our Employee Management Solutions segment provides payroll products and services for small businesses.

• Our Payment Solutions segment provides merchant services for small businesses, including credit and debit card processing, electronic check conversion and automated clearing house services.

Tax: This category includes two segments — Consumer Tax and Accounting Professionals.

• Our Consumer Tax segment includes TurboTax income tax preparation products and services for consumers and small businesses.

• Our Accounting Professionals segment includes ProSeries and Lacerte professional tax products and services. This segment also includes QuickBooks Premier Accountant Edition and the QuickBooks ProAdvisor Program for accounting professionals.

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Financial Services: This segment consists primarily of outsourced online services for banks and credit unions provided by our Intuit Financial Services business. These include comprehensive online financial management solutions for consumers and businesses.

Other Businesses: This segment includes Quicken personal finance products and services; Mint.com online personal finance services; Intuit Health online patient-to-provider communication solutions; and our businesses in Canada and the United Kingdom.

Seasonality and Trends

Our QuickBooks, Consumer Tax and Accounting Professionals businesses are highly seasonal. Revenue from our QuickBooks software products tends to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. In our Consumer Tax business, a greater proportion of our revenue has been occurring later in this seasonal period due in part to the growth in sales of TurboTax Online, for which revenue is recognized upon printing or electronic filing of a tax return. The seasonality of our Consumer Tax and Accounting Professionals revenue is also affected by the timing of the availability of tax forms from taxing agencies and the ability of those agencies to receive electronic tax return submissions. Delays in the availability of tax forms or the ability of taxing agencies to receive submissions can cause revenue to shift from our second fiscal quarter to our third fiscal quarter. These seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31, when revenue from our tax businesses is minimal while operating expenses continue at relatively consistent levels. We believe the seasonality of our revenue is likely to continue in the future. In our MD&A we often focus on year-to-date results for our seasonal businesses as they are generally more meaningful than quarterly results.

Overview of Financial Results

Total net revenue for the first nine months of fiscal 2011 was $3.3 billion, an increase of 12% compared with the same period of fiscal 2010. Our Consumer Tax segment and our Small Business Group were the key drivers of revenue growth. About 45% of the revenue growth for the first nine months of fiscal 2011 came from our Consumer Tax segment, which increased revenue by 13% compared with the same period a year ago due to growth in TurboTax Online federal units. Almost 40% of the revenue growth for the first nine months of fiscal 2011 came from our Small Business Group, which increased revenue by 13% compared with the same period a year ago due to growth in connected services offerings and improved offering mix. Operating income increased 15% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to higher revenue partially offset by higher costs and expenses. Higher costs and expenses included higher spending for staffing expenses and marketing programs, the addition of costs and expenses for acquired businesses, and higher share-based compensation expense. Net income from continuing operations increased 18% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010, in line with the increase in operating income. Diluted net income per share from continuing operations for the first nine months of fiscal 2011 increased 20% to $2.16 as a result of the increase in net income and the decline in weighted average diluted shares compared with the same period of fiscal 2010.

We ended the first nine months of fiscal 2011 with cash, cash equivalents and investments totaling $1.8 billion. At that date we also held $77 million in municipal auction rate securities that we classified as long-term investments. In the first nine months of fiscal 2011 we generated cash from operations, from net sales of investments, and from the issuance of common stock under employee stock plans. During the same period we used cash for the repurchase of shares of our common stock under our stock repurchase programs and for capital expenditures. At April 30, 2011, we had authorization from our Board of Directors to expend up to an additional $890 million for stock repurchases through August 16, 2013.

Critical Accounting Policies and Estimates

In preparing our financial statements, we make estimates, assumptions and judgments that can have a significant impact on our net revenue, operating income or loss and net income or loss, as well as on the value of certain assets and liabilities on our balance sheet. We believe that the estimates, assumptions and judgments involved in the accounting policies described in Management’s Discussion and Analysis of Financial Condition and Results of Operations in Item 7 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2010 have the greatest potential impact on our financial statements, so we consider them to be our critical accounting policies and estimates. Except for the changes to our critical accounting policies and estimates discussed below, we believe that there were no significant changes in those critical accounting policies and estimates during the first nine months of fiscal 2011. Senior management has reviewed the development and selection of our critical accounting policies and estimates and their disclosure in this Quarterly Report on Form 10-Q with the Audit and Risk Committee of our Board of Directors.

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Multiple-Deliverable Revenue Arrangements

On August 1, 2010 we adopted new accounting guidance for multiple-deliverable revenue arrangements that are outside the scope of industry-specific software revenue recognition guidance on a prospective basis. This guidance amends the criteria for allocating consideration in multiple-deliverable revenue arrangements by establishing a selling price hierarchy. The selling price used for each deliverable will be based on vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. See Note 1 to the financial statements in Part I, Item 1 of this report for more information. We regularly review VSOE, TPE, and ESP and maintain internal controls over the establishment and updates of these estimates.

When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. ESP is a more subjective measure than either VSOE or TPE, and determining ESP requires significant judgment. We determine ESP for a product or service by considering multiple factors including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices.

Goodwill — Impairment Assessments

In the third quarter of fiscal 2011 we performed our quarterly assessment of indicators of impairment for goodwill by reviewing events or circumstances that would more likely than not reduce the fair value of a reporting unit below its carrying value. We concluded that the estimated fair values of all of our reporting units continued to exceed their carrying values and that they were not impaired. While we concluded that the estimated fair values of all of our reporting units substantially exceeded their carrying values, the estimated fair value of our Intuit Health reporting unit exceeded its carrying value of $82 million by approximately 5% to 10%. In estimating the fair value of our Intuit Health reporting unit we considered the extent to which it was consistently meeting or exceeding internal financial expectations and key business milestones. We will perform our annual goodwill impairment test in the fourth quarter of fiscal 2011 in conjunction with our annual planning and budgeting process. For this annual test we will use a weighted combination of a discounted cash flow model and comparisons to publicly traded companies engaged in similar businesses to estimate the fair value of each of our reporting units.

Assumptions and estimates about future values are complex and often subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts. For example, recent U.S. legislation is expected to result in profound changes in the U.S. healthcare industry. Potential events or circumstances that could reasonably be expected to negatively affect the key assumptions we used in estimating the fair value of our Intuit Health reporting unit include our ability to obtain new customers through our third party reseller channels; our ability to develop high quality, timely offerings and market them effectively; and new offerings or pricing actions by competitors. If the estimated fair value of our Intuit Health reporting unit declines due to any of these factors, we may be required to record future goodwill impairment charges.

Results of Operations

Financial Overview

										YTD		YTD
	Q3		Q3		$		%			Q3		Q3		$		%
(Dollars in millions, except per share amounts)	FY11		FY10		Change		Change			FY11		FY10		Change		Change
Total net revenue	$	1,848	$	1,607	$	241		15	%	$	3,258	$	2,918	$	340		12	%
Operating income from continuing operations		1,061		888		173		19	%		1,068		927		141		15	%
Net income from continuing operations		688		576		112		19	%		691		587		104		18	%
Diluted net income per share from continuing operations	$	2.20	$	1.78	$	0.42		24	%	$	2.16	$	1.80	$	0.36		20	%

Current Fiscal Quarter

Total net revenue increased $241 million or 15% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010. In our Small Business Group, revenue was up 13%. Financial Management Solutions segment revenue increased 11% due to growth in QuickBooks Online, QuickBooks Enterprise, and Intuit Websites revenue. Employee Management Solutions segment revenue increased 12% due to favorable offering mix, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers. Payment Solutions segment revenue increased 17% due to growth in the merchant customer base and certain security and compliance fees that we passed through to our customers during the quarter. Consumer Tax segment revenue increased 18% due to growth in TurboTax Online federal units and to a delay in the Internal Revenue Service’s acceptance of certain electronically filed tax returns that we believe shifted revenue from the second quarter

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of fiscal 2011 to the third quarter of fiscal 2011. Accounting Professionals segment revenue increased 10% due to price increases, increased pay-per-return usage, and new offerings. Financial Services segment revenue increased 5% due to growth in bill-pay revenue partially offset by the effect of the sale of that segment’s lending business in the fourth quarter of fiscal 2010. Other Businesses segment revenue increased 17% due to strong performance in our Canadian and United Kingdom small business offerings, our fiscal 2010 acquisition of Medfusion, and a favorable currency impact.

Operating income from continuing operations increased 19% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010. Total cost of revenue as a percent of revenue decreased slightly due to product cost efficiencies and growth in high-margin TurboTax Online units. Total operating expenses were $57 million higher in the fiscal 2011 quarter, including about $23 million for higher staffing expenses and about $14 million for higher marketing program expenses in our Consumer Tax segment. See “Cost of Revenue” and “Operating Expenses” later in this Item 2 for more information.

Net income from continuing operations increased 19% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010, in line with the increase in operating income for that quarter. Diluted net income per share from continuing operations for the third quarter of fiscal 2011 increased 24% to $2.20 as a result of the increase in net income and the decline in weighted average diluted shares compared with the same quarter of fiscal 2010.

Fiscal Year to Date

Total net revenue increased $340 million or 12% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. In our Small Business Group, revenue was up 13%. Financial Management Solutions segment revenue increased 16% due to growth in QuickBooks Online, QuickBooks Enterprise, and Intuit Websites revenue and to a lesser extent to higher QuickBooks desktop revenue. Employee Management Solutions segment revenue increased 11% due to favorable offering mix, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers. Payment Solutions segment revenue increased 11% due to growth in the merchant customer base that was partially offset by a slight decline in transaction volume per merchant. Consumer Tax segment revenue increased 13% due to 11% growth in total TurboTax federal units that was driven by 18% higher TurboTax Online federal units, improved offering mix, and a price increase for TurboTax Basic. Accounting Professionals segment revenue increased 6% due to price increases, increased pay-per-return usage, and new offerings. Financial Services segment revenue increased 3% due to growth in bill-pay revenue partially offset by the effect of the sale of that segment’s lending business in the fourth quarter of fiscal 2010. Other Businesses segment revenue increased 15% due to strong performance in our Canadian and United Kingdom small business offerings and our fiscal 2010 acquisitions of Mint and Medfusion.

Operating income from continuing operations increased 15% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. Total cost of revenue as a percent of revenue decreased slightly due to product cost efficiencies, growth in high-margin TurboTax Online units and $30 million lower amortization expense for acquired intangible assets. Total operating expenses were $193 million higher in the fiscal 2011 period, including about $65 million for higher staffing expenses, about $50 million for higher marketing program expenses in our Small Business Group and our Consumer Tax segment, about $36 million due to operating expenses for Mint and Medfusion, and about $16 million for higher share-based compensation expense. See “Cost of Revenue” and “Operating Expenses” later in this Item 2 for more information.

Net income from continuing operations increased 18% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010, in line with the increase in operating income for that period. Diluted net income per share from continuing operations for the first nine months of fiscal 2011 increased 20% to $2.16 as a result of the increase in net income and the decline in weighted average diluted shares compared with the same period of fiscal 2010.

Business Segment Results

The information below is organized in accordance with our seven reportable business segments. Results for our Other Businesses segment for the nine months ended April 30, 2010 have been adjusted to exclude results for our Intuit Real Estate Solutions business, which we sold in January 2010. See Note 6 to the financial statements in Part 1, Item 1 of this report for more information.

Segment operating income or loss is segment net revenue less segment cost of revenue and operating expenses. See “Executive Overview — Seasonality and Trends” earlier in this Item 2 for a description of the seasonality of our business. Segment expenses do not include certain costs, 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. These unallocated costs totaled $515 million in the first nine months of fiscal 2011 and $455 million in the first nine months of fiscal 2010. Unallocated costs increased in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to increases in corporate selling and marketing expenses in support of the growth of our businesses and increases in share-based compensation expense.

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Segment expenses also do not include amortization of acquired technology and amortization of other acquired intangible assets. See Note 12 to the financial statements in Part I, Item 1 of this report for reconciliations of total segment operating income or loss to consolidated operating income or loss for each fiscal period presented.

We calculate revenue growth rates and segment operating margin figures using dollars in thousands. Those results may vary from figures calculated using the dollars in millions presented below.

Financial Management Solutions

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	107		$	103					$	306		$	288
Service and other revenue		76			61						218			164
Total segment revenue	$	183		$	164			11	%	$	524		$	452			16	%
% of total revenue		10	%		10	%					16	%		16	%
Segment operating income	$	61		$	44			36	%	$	154		$	106			46	%
% of related revenue		33	%		27	%					29	%		23	%

Financial Management Solutions (FMS) product revenue is derived primarily from QuickBooks desktop software products and financial supplies such as paper checks, envelopes, invoices, business cards and business stationery. FMS service and other revenue is derived primarily from QuickBooks Online; QuickBooks support plans; Intuit Websites, which provides website design and hosting services for small and medium-sized businesses; QuickBase; and royalties from small business online services.

FMS total net revenue increased $19 million or 11% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010, driven about equally by strong growth in QuickBooks Online, QuickBooks Enterprise, and Intuit Websites revenue. Higher average selling prices for the QuickBooks business more than offset an 8% decline in total QuickBooks software units in the third quarter of fiscal 2011. FMS total net revenue increased $72 million or 16% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. Higher FMS revenue in that period was driven by strong growth in QuickBooks Online, QuickBooks Enterprise, and Intuit Websites revenue, and to a lesser extent by growth in QuickBooks desktop revenue. Higher average selling prices for the QuickBooks business more than offset an 11% decline in total QuickBooks software units for the first nine months of fiscal 2011.

FMS segment operating income as a percentage of related revenue increased to 33% in the third quarter of fiscal 2011 from 27% in the same quarter of fiscal 2010 and increased to 29% in the first nine months of fiscal 2011 from 23% in the same period of fiscal 2010. Operating income increased in the first nine months of fiscal 2011 due to the increase in revenue described above partially offset by about $16 million in higher expenses for advertising and other marketing programs and, to a lesser extent, higher cost of revenue associated with revenue growth.

Employee Management Solutions

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	66		$	61					$	193		$	181
Service and other revenue		49			42						145			124
Total segment revenue	$	115		$	103			12	%	$	338		$	305			11	%
% of total revenue		6	%		6	%					10	%		10	%
Segment operating income	$	70		$	63			11	%	$	197		$	180			9	%
% of related revenue		61	%		61	%					58	%		59	%

Employee Management Solutions (EMS) product revenue is derived primarily from QuickBooks Basic Payroll and QuickBooks Enhanced Payroll, which are products sold on a subscription basis that offer payroll tax tables, payroll reports, federal and state payroll tax forms, and electronic tax payment and filing to small businesses that prepare their own payrolls. EMS service and other revenue is derived from QuickBooks Online Payroll, Intuit Online Payroll, fees for payroll direct

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deposit services, and other small business payroll and employee management services. Service and other revenue for this segment also includes interest earned on funds held for customers.

EMS total net revenue increased $12 million or 12% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 and $33 million or 11% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. Revenue was higher in the fiscal 2011 periods due to more customers choosing our Enhanced desktop payroll and online payroll solutions, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers. At April 30, 2011 total payroll customers were up 1% while online payroll customers were up 11% compared with April 30, 2010.

EMS segment operating income as a percentage of related revenue was flat at 61% in the third quarter of fiscal 2011 and the same quarter of fiscal 2010 and decreased slightly to 58% in the first nine months of fiscal 2011 from 59% in the same period of fiscal 2010. Revenue growth as described above was partially offset by higher cost of revenue associated with offering mix.

Payment Solutions

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	8		$	8					$	24		$	24
Service and other revenue		85			71						234			209
Total segment revenue	$	93		$	79			17	%	$	258		$	233			11	%
% of total revenue		5	%		5	%					8	%		8	%
Segment operating income	$	20		$	15			33	%	$	44		$	50			(9	)%
% of related revenue		22	%		19	%					17	%		21	%

Payment Solutions product revenue is derived primarily from Point of Sale solutions. Payment Solutions service and other revenue is derived primarily from merchant services for small businesses that include credit card, debit card, electronic benefits, and gift card processing services; check verification, check guarantee and electronic check conversion, including automated clearing house (ACH) and Check21 capabilities; and Web-based transaction processing services for online merchants.

Payment Solutions total net revenue increased $14 million or 17% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 and increased $25 million or 11% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. The increases in both periods were driven by 12% growth in the merchant customer base. In the third quarter of fiscal 2011 we also passed certain security and compliance fees through to our Payment Solutions customers, which accounted for about six points of the revenue growth in that quarter. Transaction volume per merchant was flat in the third quarter of fiscal 2011 and declined 1% in the first nine months of fiscal 2011 compared with the same periods of fiscal 2010.

Payment Solutions segment operating income as a percentage of related revenue increased to 22% in the third quarter of fiscal 2011 from 19% in the same quarter of fiscal 2010 due to higher revenue partially offset by higher interchange fees in cost of revenue. Payment Solutions segment operating income as a percentage of related revenue decreased to 17% in the first nine months of fiscal 2011 from 21% in the same period of fiscal 2010 due to higher interchange fees in cost of revenue and higher expenses for staffing and advertising and other marketing programs, which more than offset the increase in revenue described above.

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Consumer Tax

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	168		$	178					$	254		$	268
Service and other revenue		868			702						1,016			852
Total segment revenue	$	1,036		$	880			18	%	$	1,270		$	1,120			13	%
% of total revenue		56	%		55	%					39	%		38	%
Segment operating income	$	853		$	714			19	%	$	877		$	771			14	%
% of related revenue		82	%		81	%					69	%		69	%

Consumer Tax product revenue is derived primarily from TurboTax federal and state consumer and small business desktop tax return preparation software. Consumer Tax service and other revenue is derived primarily from TurboTax Online tax return preparation services and electronic tax filing services.

Consumer Tax segment revenue increased $156 million or 18% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 due to growth in TurboTax Online federal units and to a delay in the Internal Revenue Service’s acceptance of certain electronically filed tax returns that we believe shifted revenue from the second quarter of fiscal 2011 to the third quarter of fiscal 2011. Consumer Tax total net revenue increased $150 million or 13% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. Total TurboTax federal units were up 11% in that period, driven by TurboTax Online federal unit growth of 18%, improved offering mix and a price increase for TurboTax Basic. Online federal units represented approximately 74% of total federal TurboTax units for the 2010 tax season to date, up from approximately 70% for the comparable portion of the 2009 tax season.

Consumer Tax segment operating income as a percentage of related revenue was flat at 69% in the first nine months of fiscal 2011 and in the same period of fiscal 2010. The revenue increase described above was partially offset by about $30 million in higher expenses for advertising and other marketing programs.

Accounting Professionals

										YTD			YTD
	Q3			Q3			%			Q3			Q3			Q3%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	178		$	145					$	315		$	283
Service and other revenue		47			60						57			68
Total segment revenue	$	225		$	205			10	%	$	372		$	351			6	%
% of total revenue		12	%		13	%					12	%		12	%
Segment operating income	$	187		$	167			12	%	$	241		$	229			5	%
% of related revenue		83	%		81	%					65	%		65	%

Accounting Professionals product revenue is derived primarily from ProSeries and Lacerte professional tax preparation software products and from QuickBooks Premier Accountant Edition and ProAdvisor Program for professional accountants. Accounting Professionals service and other revenue is derived primarily from electronic tax filing services, bank product transmission services and training services.

Accounting Professionals total net revenue increased $20 million or 10% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 and $21 million or 6% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to price increases, increased pay-per-return usage, and new offerings.

Accounting Professionals segment operating income as a percentage of related revenue was flat at 65% in the first nine months of fiscal 2011 and the same period of fiscal 2010. Higher revenue for the fiscal 2011 period was partially offset by modestly higher staffing and other operating expenses.

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Financial Services

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	—		$	—					$	—		$	—
Service and other revenue		89			85						254			247
Total segment revenue	$	89		$	85			5	%	$	254		$	247			3	%
% of total revenue		5	%		5	%					8	%		9	%
Segment operating income	$	20		$	18			8	%	$	57		$	57			(1	)%
% of related revenue		22	%		22	%					22	%		23	%

Financial Services service and other revenue is derived primarily from outsourced online banking software products that are hosted in our data centers and delivered as on-demand service offerings to medium-sized banks and credit unions.

Financial Services total net revenue increased $4 million or 5% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 and increased $7 million or 3% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. Revenue growth in the fiscal 2011 periods was driven by higher bill-pay revenue, partially offset by the effect of the sale of this segment’s lending business in the fourth quarter of fiscal 2010. Revenue from the lending business was less than $10 million for all of fiscal 2010. Bill-pay revenue grew due to a 23% increase in bill-pay end users and higher transaction volumes for the first nine months of fiscal 2011. Continuing downward price pressure that resulted in lower revenue per user partially offset growth in the bill-pay end user customer base.

Financial Services segment operating income as a percentage of related revenue was flat at 22% in the third quarter of fiscal 2011 and the third quarter of fiscal 2010 and decreased slightly to 22% in the first nine months of fiscal 2011 from 23% the same period of fiscal 2010 due to higher staffing expenses that partially offset higher revenue.

Other Businesses

										YTD			YTD
	Q3			Q3			%			Q3			Q3			%
(Dollars in millions)	FY11			FY10			Change			FY11			FY10			Change
Product revenue	$	75		$	69					$	156		$	147
Service and other revenue		32			22						86			63
Total segment revenue	$	107		$	91			17	%	$	242		$	210			15	%
% of total revenue		6	%		6	%					7	%		7	%
Segment operating income	$	42		$	38			11	%	$	59		$	63			(6	)%
% of related revenue		40	%		42	%					25	%		30	%

Other Businesses consist primarily of Quicken, Mint.com, Intuit Health, and our businesses in Canada and the United Kingdom. Quicken product revenue is derived primarily from Quicken desktop software products. Quicken service and other revenue is derived primarily from Quicken Online, fees from consumer online transactions, and Quicken Loans trademark royalties. Mint.com service revenue is derived primarily from lead generation fees. Intuit Health service revenue is derived from online patient-to-provider communication services. In Canada, product revenue is derived primarily from localized versions of QuickBooks and Quicken as well as consumer desktop tax return preparation software and professional tax preparation products. Service revenue in Canada consists primarily of revenue from payroll services and QuickBooks support plans. In the United Kingdom, product revenue is derived primarily from localized versions of QuickBooks and QuickBooks Payroll.

Other Businesses total net revenue increased $16 million or 17% in the third quarter of fiscal 2011 compared with the same quarter of fiscal 2010 and $32 million or 15% in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to strong performance in our Canadian and United Kingdom small business offerings and our fiscal 2010 acquisitions of Mint and Medfusion. In addition, favorable currency impacts in our Canadian and United Kingdom businesses accounted for about five points of Other Businesses revenue growth in the third quarter of fiscal 2011 and about two points of revenue growth in the first nine months of fiscal 2011.

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Other Businesses segment operating income as a percentage of related revenue decreased to 40% in the third quarter of fiscal 2011 from 42% in the same quarter of fiscal 2010 and decreased to 25% in the first nine months of fiscal 2011 from 30% in the same period of fiscal 2010. Higher fiscal 2011 revenue as described above was offset by higher costs and expenses associated with our fiscal 2010 acquisitions of Mint and Medfusion and by our continued investment in emerging market opportunities.

Cost of Revenue

			% of					% of			YTD		% of			YTD		% of
	Q3		Related			Q3		Related			Q3		Related			Q3		Related
(Dollars in millions)	FY11		Revenue			FY10		Revenue			FY11		Revenue			FY10		Revenue
Cost of product revenue	$	32		5	%	$	34		6	%	$	110		9	%	$	117		10	%
Cost of service and other revenue		132		11	%		118		11	%		384		19	%		341		20	%
Amortization of acquired technology		4		n/a			5		n/a			13		n/a			43		n/a
Total cost of revenue	$	168		9	%	$	157		10	%	$	507		16	%	$	501		17	%

Cost of product revenue as a percentage of product revenue decreased slightly in the third quarter and first nine months of fiscal 2011 compared with the same periods of fiscal 2010 due to cost efficiencies in our Small Business Group and in our Consumer Tax and Accounting Professionals segments.

Cost of service and other revenue as a percentage of service and other revenue decreased slightly in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to unit growth in TurboTax Online, which has relatively lower costs than our other service offerings.

Amortization of acquired technology decreased in the first nine months of fiscal 2011 compared with the same period of fiscal 2010 due to the completion of the amortization for certain Intuit Financial Services intangible assets that we acquired in the third quarter of fiscal 2007.

Operating Expenses

			% of					% of					% of					% of
			Total					Total			YTD		Total			YTD		Total
	Q3		Net			Q3		Net			Q3		Net			Q3		Net
(Dollars in millions)	FY11		Revenue			FY10		Revenue			FY11		Revenue			FY10		Revenue
Selling and marketing	$	351		19	%	$	309		19	%	$	901		28	%	$	766		26	%
Research and development		164		9	%		141		9	%		478		15	%		426		15	%
General and administrative		93		5	%		102		6	%		271		8	%		267		9	%
Amortization of other acquired intangible assets		11		1	%		10		1	%		33		1	%		31		1	%
Total operating expenses	$	619		34	%	$	562		35	%	$	1,683		52	%	$	1,490		51	%

Current Fiscal Quarter

Total operating expenses as a percentage of total net revenue decreased slightly to 34% in the third quarter of fiscal 2011 from 35% in the same quarter of fiscal 2010. Revenue grew $241 million while total operating expenses increased $57 million in the fiscal 2011 quarter. Total operating expenses increased about $23 million for higher staffing expenses and about $14 million for higher marketing program expenses in our Consumer Tax segment.

Fiscal Year to Date

Total operating expenses as a percentage of total net revenue increased slightly to 52% in the first nine months of fiscal 2011 from 51% in the same period of fiscal 2010. Revenue grew $340 million while total operating expenses increased $193 million in the fiscal 2011 period. Total operating expenses increased about $65 million for staffing expenses, about $50 million for higher marketing program expenses in our Small Business Group and in our Consumer Tax segment, about $36 million for the operating expenses of acquired businesses, and about $16 million for higher share-based compensation expense. Share-based compensation expense increased because the market price of our common stock was higher at the time of our broad-based July 2010 grants of options and restricted stock units compared with the prior fiscal year. This increased the total fair value of these awards at the time of grant, which is being recognized as expense over the related service periods.

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Non-Operating Income and Expenses

Interest Expense

Interest expense of $45 million and $46 million for the first nine months of fiscal 2011 and 2010 consisted primarily of interest on $1 billion in senior notes that we issued in March 2007. The senior notes are due in March 2012 and March 2017 and are redeemable by Intuit at any time, subject to a make-whole premium.

Interest and Other Income, Net

	Three Months Ended				Nine Months Ended
	April 30,		April 30,		April 30,		April 30,
(In millions)	2011		2010		2011		2010
Interest income	$	2	$	2	$	8	$	7
Net gains on executive deferred compensation plan assets		3		3		8		5
Other		1		—		4		—
Total interest and other income, net	$	6	$	5	$	20	$	12

Interest and other income, net consists primarily of interest income and net gains on executive deferred compensation plan assets. Higher average invested balances and higher interest rates resulted in slightly higher interest income in the first nine months of fiscal 2011 compared with the same period of fiscal 2010. In accordance with authoritative guidance, we record gains and losses associated with executive deferred compensation plan assets in interest and other income and gains and losses associated with the related liabilities in operating expenses. The amounts recorded in operating expenses generally offset the amounts recorded in interest and other income.

Income Taxes

Our effective tax rate for the third quarter of fiscal 2011 was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the third quarter of fiscal 2010 was approximately 34%. In that quarter we recorded discrete tax benefits that were primarily related to foreign tax credit benefits associated with the distribution of profits from our non-U.S. subsidiaries and our plans to indefinitely reinvest substantially all remaining non-U.S. earnings in support of our international expansion plans. Excluding those discrete benefits, our effective tax rate was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

Our effective tax rate for the first nine months of fiscal 2011 was approximately 34%. Excluding discrete tax benefits primarily related to the retroactive reinstatement of the federal research and experimentation credit as described below, our effective tax rate for that period was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the first nine months of fiscal 2010 was approximately 34%. In that period we recorded discrete tax benefits as described above. Excluding those discrete tax benefits, our effective tax rate for that period was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

In December 2010 the Tax Relief, Unemployment Insurance Reauthorization, and Jobs Creation Act of 2010 was signed into law. The Act includes a reinstatement of the federal research and experimentation credit through December 31, 2011 that was retroactive to January 1, 2010. We recorded a discrete tax benefit of approximately $9 million for the retroactive amount related to fiscal 2010 and the first quarter of fiscal 2011 during the second quarter of fiscal 2011.

Discontinued Operations

In January 2010 we sold our Intuit Real Estate Solutions (IRES) business for approximately $128 million in cash and recorded a net gain on disposal of $35 million. IRES was part of our Other Businesses segment. We accounted for IRES as a discontinued operation and have therefore segregated its operating results from continuing operations in our statements of operations for all periods prior to the sale. For the first nine months of fiscal 2010, net revenue from IRES was $33 million and net income from IRES was less than $1 million, excluding the net gain on disposal.

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Liquidity and Capital Resources

Overview

At April 30, 2011, our cash, cash equivalents and investments totaled $1.8 billion, an increase of $206 million from July 31, 2010 due to the factors noted under “Statements of Cash Flows” below. At that date we also held $77 million in municipal auction rate securities that we classified as long-term investments on our balance sheet. See “Auction Rate Securities” below for more information. Our primary source of liquidity has been cash from operations, which entails the collection of accounts receivable for products and services. Our primary uses of cash have been for research and development programs, selling and marketing activities, capital projects, acquisitions of businesses, debt service costs and repurchases of our common stock.

In March 2007 we issued five-year and ten-year senior unsecured notes totaling $1 billion. See “Contractual Obligations — Commitments for Senior Unsecured Notes” later in this Item 2 for more information. Because their contractual maturities are now within one year, we transferred the $500 million in notes due in March 2012 from long-term liabilities to current liabilities during the third quarter of fiscal 2011. We also have a $500 million unsecured revolving line of credit facility that is described later in this Item 2. To date we have not borrowed under the facility.

The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:

	April 30,		July 31,		$			%
(Dollars in millions)	2011		2010		Change			Change
Cash, cash equivalents and investments	$	1,828	$	1,622	$	206			13	%
Long-term investments		81		91		(10	)		(11	)%
Current portion of long-term debt		500		—		500			100	%
Long-term debt		498		998		(500	)		(50	)%
Working capital		600		1,074		(474	)		(44	)%
Ratio of current assets to current liabilities		1.3 : 1		1.9 : 1

Auction Rate Securities

At April 30, 2011, we held a total of $77 million in municipal auction rate securities that we classified as long-term investments on our balance sheet based on the maturities of the underlying securities. All of these securities are rated A or better by the major credit rating agencies and the majority of the securities are collateralized by student loans guaranteed by the U.S. Department of Education. Due to a decrease in liquidity in the global credit markets, in February 2008 auctions began failing for the municipal auction rate securities we held and in accordance with authoritative guidance we began estimating their fair value based on a discounted cash flow model that we prepared. Based on our expected operating cash flows and our other sources of cash, we do not believe that the reduction in liquidity of the municipal auction rate securities we held at April 30, 2011 will have a material impact on our overall ability to meet our liquidity needs.

Statements of Cash Flows

The following table summarizes selected items from our statements of cash flows for the first nine months of fiscal 2011 and 2010. See the financial statements in Part I, Item 1 of this report for complete statements of cash flows for those periods.

	Nine Months Ended
	April 30,			April 30,			$			%
(Dollars in millions)	2011			2010			Change			Change
Net cash provided by (used in):
Operating activities	$	1,185		$	1,149		$	36			3	%
Investing activities		780			(966	)		1,746			181	%
Financing activities		(816	)		(435	)		(381	)		(88	)%
Effect of exchange rate changes on cash		6			3			3			100	%
Increase (decrease) in cash and cash equivalents	$	1,155		$	(249	)

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Operating Activities

During the first nine months of fiscal 2011 we generated $1.19 billion in cash from our operations. This included net income of $691 million and adjustments for depreciation and amortization of $178 million and share-based compensation expense of $112 million. Amortization expense was lower in the fiscal 2011 period compared with the same period of fiscal 2010 due to the completion of the amortization for certain Intuit Financial Services intangible assets that we acquired in fiscal 2007. Included in income taxes payable at April 30, 2011 is approximately $230 million in income taxes that we expect to pay during the fourth quarter of fiscal 2011.

During the first nine months of fiscal 2010 we generated $1.15 billion in cash from our operations. This included net income of $622 million and adjustments for depreciation and amortization of $198 million and share-based compensation expense of $99 million.

Investing Activities

Investing activities generated $780 million in cash during the first nine months of fiscal 2011. We received $921 million in cash from net sales of investments and used $166 million in cash for capital expenditures.

We used $966 million in cash for investing activities during the first nine months of fiscal 2010. We received a net $122 million in cash from the sale of our Intuit Real Estate Solutions business. We used $984 million in cash for net purchases of investments, $141 million in cash for acquisitions (primarily Mint Software Inc.) and $100 million in cash for capital expenditures.

Financing Activities

We used $816 million in cash for financing activities during the first nine months of fiscal 2011, including $1.11 billion for the repurchase of common stock under our stock repurchase programs partially offset by the receipt of $288 million in cash from the issuance of common stock under employee stock plans.

We used $435 million in cash for financing activities during the first nine months of fiscal 2010, including $750 million for the repurchase of common stock under our stock repurchase programs partially offset by the receipt of $326 million in cash from the issuance of common stock under employee stock plans.

Stock Repurchase Programs

Our Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. During the first nine months of fiscal 2011 and 2010 we repurchased 23.3 million and 24.6 million shares of our common stock for $1.11 billion and $750 million under these programs. At April 30, 2011, we had authorization from our Board of Directors to expend up to an additional $890 million for stock repurchases through August 16, 2013.

To facilitate the stock repurchase program described above, from time to time we repurchase shares in the open market. On January 3, 2011 we entered into an accelerated share repurchase (ASR) agreement with a large financial institution to repurchase $250 million of Intuit’s common stock on an accelerated basis. We entered into this ASR agreement in order to repurchase shares at a guaranteed discount from the average price of our stock over a specified period of time. We had the contractual right to cancel the ASR agreement without any financial or other obligation at any time prior to February 2, 2011. On February 2, 2011 we paid $250 million to the financial institution and received an initial delivery of 4.2 million shares of Intuit common stock. On April 21, 2011 we received a final delivery of 0.7 million shares for a total of 4.9 million shares at $51.12 per share. The total number of shares delivered generally was determined by applying an agreed discount to the average of the daily volume weighted average price of Intuit common shares traded during the pricing period.

Unsecured Revolving Credit Facility

On March 22, 2007 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on March 22, 2012. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings. The applicable interest rate will be increased by 0.05% for any period in which the total principal amount of advances and letters of credit under the credit facility exceeds $250 million. The agreement includes covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We were in compliance with these covenants at April 30, 2011. We may use amounts borrowed under this credit facility for general corporate purposes or for future acquisitions or expansion of our business. To date we have not borrowed under the credit facility. We monitor counterparty risk associated with the institutional lenders that are providing the

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credit facility. We currently believe that the credit facility will be available to us should we choose to borrow under it.

Liquidity and Capital Resource Requirements

We evaluate, on an ongoing basis, the merits of acquiring technology or businesses, or establishing strategic relationships with and investing in other companies. We may decide to use cash and cash equivalents, investments, and our revolving line of credit facility to fund such activities in the future.

Based on past performance and current expectations, we believe that our cash and cash equivalents, investments, and cash generated from operations will be sufficient to meet anticipated seasonal working capital needs, capital expenditure requirements, contractual obligations, commitments and other liquidity requirements associated with our operations for at least the next 12 months.

Off-Balance Sheet Arrangements

At April 30, 2011, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of Regulation S-K.

Contractual Obligations

We presented our contractual obligations at January 31, 2011 in our Quarterly Report on Form 10-Q for the fiscal quarter then ended. Except as discussed below, there have been no significant changes in those obligations during the third quarter of fiscal 2011.

Commitments for Senior Unsecured Notes

On March 12, 2007 we issued $500 million of 5.40% senior unsecured notes due on March 15, 2012 (the 2012 Notes) and $500 million of 5.75% senior unsecured notes due on March 15, 2017 (the 2017 Notes) (together, the Notes). Because their contractual maturities are now within one year, we transferred the $500 million in notes due in March 2012 from long-term liabilities to current liabilities in the third quarter of fiscal 2011. The Notes are redeemable by Intuit at any time, subject to a make-whole premium. Interest is payable semiannually on March 15 and September 15. At April 30, 2011, our maximum commitment for interest payments under the Notes was $199 million.

We monitor the credit markets as part of our ongoing cash management activities. We currently intend to either pay off the 2012 Notes when they become due using operating cash or refinance those notes if the credit markets are favorable at that time.

Recent Accounting Pronouncements

For a description of recent accounting pronouncements and the potential impact of these pronouncements on our financial position, results of operations and cash flows, see Note 1 to the financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.

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ITEM 3
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Investment Risk

There has been significant instability in the financial markets during fiscal 2009, 2010 and 2011. This period of extraordinary disruption and readjustment in the financial markets exposes us to additional investment risk. The value and liquidity of the securities in which we invest could deteriorate rapidly and the issuers of these securities could be subject to credit rating downgrades. In light of the current market conditions and these additional risks, we actively monitor market conditions and developments specific to the securities in which we invest. We believe that we take a conservative approach to investing our funds in that we invest only in highly-rated securities and diversify our portfolio of investments. While we believe we take prudent measures to mitigate investment related risks, such risks cannot be fully eliminated because of market circumstances that are outside our control.

Our investments consist of instruments that meet quality standards consistent with our investment policy. This policy specifies that, except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer. We do not hold derivative financial instruments in our portfolio of investments. See Note 3 to the financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a summary of the cost and fair value of our investments by type of issue.

Interest Rate Risk

Our cash equivalents and investments are subject to market risk due to changes in interest rates. Interest rate movements affect the interest income we earn on cash equivalents and investments and the fair value of those investments. Should the Federal Reserve Target Rate increase by 25 basis points from the level of April 30, 2011, the value of our investments would decrease by approximately $2 million. Should the Federal Reserve Target Rate increase by 100 basis points from the level of April 30, 2011, the value of our investments would decrease by approximately $6 million.

We are also exposed to the impact of changes in interest rates as they affect our $500 million revolving credit facility. Advances under the credit facility accrue interest at rates that are equal to Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings. Consequently, our interest expense would fluctuate with changes in the general level of these interest rates if we were to borrow any amounts under the credit facility. At April 30, 2011, no amounts were outstanding under the credit facility.

On March 12, 2007 we issued $500 million of 5.40% senior unsecured notes due on March 15, 2012 and $500 million of 5.75% senior unsecured notes due on March 15, 2017. We carry these senior notes at face value less unamortized discount on our balance sheets. Since these senior notes bear interest at fixed rates, we have no financial statement risk associated with changes in interest rates. However, the fair value of these notes fluctuates when interest rates change. See Note 2 and Note 8 to the financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for more information.

Impact of Foreign Currency Rate Changes

The functional currencies of our international operating subsidiaries are the local currencies. We translate the assets and liabilities of our foreign subsidiaries at the exchange rates in effect on the balance sheet date. We translate their revenue, costs and expenses at the average rates of exchange in effect during the period. We include translation gains and losses in the stockholders’ equity section of our balance sheets. We include net gains and losses resulting from foreign exchange transactions in interest and other income, net in our statements of operations.

Since we translate foreign currencies (primarily Canadian dollars, British pounds, Indian rupees and Singapore dollars) into U.S. dollars for financial reporting purposes, currency fluctuations can have an impact on our financial results. The historical impact of currency fluctuations on our financial results has generally been immaterial. We believe that our exposure to currency exchange fluctuation risk is not significant because our international subsidiaries invoice customers and satisfy their financial obligations almost exclusively in their local currencies.

Although the impact of currency fluctuations on our financial results has generally been immaterial in the past and we believe that for the reasons cited above currency fluctuations will not be significant in the future, there can be no guarantee that the impact of currency fluctuations will not be material in the future. As of April 30, 2011, we did not engage in foreign currency hedging activities.

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ITEM 4
CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Based upon an evaluation of the effectiveness of disclosure controls and procedures, Intuit’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO) have concluded that as of the end of the period covered by this Quarterly Report on Form 10-Q our disclosure controls and procedures as defined under Exchange Act Rule 13a-15(e) and 15d-15(e) were effective to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized and reported within the time periods specified by the Securities and Exchange Commission and is accumulated and communicated to management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure.

Changes in Internal Control over Financial Reporting

During our most recent fiscal quarter, there has not occurred any change in our internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II

ITEM 1
LEGAL PROCEEDINGS

See Note 11 to the financial statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a description of legal proceedings.

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ITEM 1A
RISK FACTORS

This Quarterly Report on Form 10-Q contains forward-looking statements. All statements in this report, other than statements that are purely historical, are forward-looking statements. Words such as “expect,” “anticipate,” “intend,” “plan,” “believe,” “forecast,” “estimate,” “seek,” and similar expressions also identify forward-looking statements. In this report, forward-looking statements include, without limitation, the following:

• our expectations and beliefs regarding future conduct and growth of the business;

• the assumptions underlying our Critical Accounting Policies and Estimates, including our estimates regarding product rebate and return reserves; stock volatility and other assumptions used to estimate the fair value of share-based compensation; the fair value of goodwill; and expected future amortization of acquired intangible assets;

• our belief that the investments we hold are not other-than-temporarily impaired;

• our belief that the reduction in liquidity of the municipal auction rate securities we hold will not have a material impact on our overall ability to meet our liquidity needs;

• our belief that our exposure to currency exchange fluctuation risk will not be significant in the future;

• our expectations regarding future payment or refinancing of the 2012 Notes;

• our assessments and estimates that determine our effective tax rate;

• our belief that our cash and cash equivalents, investments and cash generated from operations will be sufficient to meet our working capital, capital expenditure and other liquidity requirements for at least the next 12 months;

• our beliefs regarding seasonality and other trends for our businesses; and

• our assessments and beliefs regarding the future outcome of pending legal proceedings and the liability, if any, that Intuit may incur as a result of those proceedings.

We caution investors that forward-looking statements are only predictions based on our current expectations about future events and are not guarantees of future performance. We encourage you to read carefully all information provided in this Quarterly Report and in our other filings with the Securities and Exchange Commission before deciding to invest in our stock or to maintain or change your investment. These forward-looking statements are based on information as of the filing date of this Quarterly Report, and we undertake no obligation to publicly revise or update any forward-looking statement for any reason.

Because forward-looking statements involve risks and uncertainties, there are important factors that may cause actual results to differ materially from those contained in the forward-looking statements. These factors include the following:

We face intense competitive pressures that may harm our operating results.

We face intense competition in all of our businesses, and we expect competition to remain intense in the future. Our competitors may introduce superior products and services, reduce prices, have greater technical, marketing and other resources, have greater name recognition, have larger installed bases of customers, have well-established relationships with our current and potential customers, advertise aggressively or beat us to market with new products and services. We also face intensified competition from providers of free accounting, tax, banking and other financial services. In order to compete, we have also introduced free offerings in several categories, but we may not be able to attract customers or effectively monetize all of these offerings, and customers who have formerly paid for Intuit’s products and services may elect to use free offerings instead. These competitive factors may diminish our revenue and profitability, and harm our ability to acquire and retain customers.

Our consumer tax business also faces significant competition from the public sector, where we face the risk of federal and state taxing authorities developing software or other systems to facilitate tax return preparation and electronic filing at no charge to taxpayers. These or similar programs may be introduced or expanded in the future, which may cause us to lose customers and revenue. Although the Free File Alliance has kept the federal government from being a direct competitor to Intuit’s tax offerings, it has fostered additional online competition and may cause us to lose significant revenue opportunities. The current agreement with the Free File Alliance is scheduled to expire in October 2014. We anticipate that governmental encroachment at both the federal and state levels may present a continued competitive threat to our business for the foreseeable future.

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Future revenue growth depends upon our ability to adapt to technological change and successfully introduce new and enhanced products, services and business models.

The Software as a Service (SaaS), desktop software and mobile technology industries are characterized by rapidly changing technology, evolving industry standards and frequent new product introductions. As we continue to grow our SaaS and other offerings, we must continue to innovate and develop new products and features to meet changing customer needs and attract and retain talented software developers. We need to continue to develop our skills, tools and capabilities to capitalize on existing and emerging technologies, which require us to devote significant resources.

A number of our businesses also derive a significant amount of their revenue from one-time upfront license fees and rely on customer upgrades and service offerings to generate a significant portion of their revenues. In addition, our consumer and professional tax businesses depend significantly on revenue from customers who return each year to use our updated tax preparation and filing software and services. As our existing products mature, encouraging customers to purchase product upgrades becomes more challenging unless new product releases provide features and functionality that have meaningful incremental value. If we are not able to develop and clearly demonstrate the value of new or upgraded products or services to our customers, our revenues may be harmed. In addition, as we continue to introduce and expand our new business models, including offerings that are subscription-based or that are free to end users, we may be unsuccessful in monetizing or increasing customer adoption of these offerings.

In some cases, we may expend a significant amount of resources and management attention on offerings that do not ultimately succeed in their markets. We have encountered difficulty in launching new products and services in the past. If we misjudge customer needs in the future, our new products and services may not succeed and our revenues and earnings may be harmed. We have also invested, and in the future expect to invest, in new business models, strategies and initiatives. Such endeavors may involve significant risks and uncertainties, including distraction of management from current operations, expenses associated with the strategies and inadequate return on investments. Because these new initiatives are inherently risky, they may not be successful and may harm our financial condition and operating results.

Business interruption or failure of our information technology and communication systems may impair the availability of our products and services, which may damage our reputation and harm our future financial results.

As we continue to transition our business to more connected services, we become more dependent on the continuing operation and availability of our information technology and communication systems and those of our external service providers. We do not have redundancy for all of our systems, many of our critical applications reside in only one of our data centers, and our disaster recovery planning may not account for all eventualities. In addition, we are in the process of updating our customer facing applications and the supporting information technology infrastructure to meet our customers’ expectations for continuous service availability. Any difficulties in upgrading these applications or infrastructure or failure of our systems or those of our service providers may result in interruptions in our service, which may reduce our revenues and profits, cause us to lose customers and damage our reputation. Any prolonged interruptions at any time may result in lost customers, additional refunds of customer charges, negative publicity and increased operating costs, any of which may significantly harm our business, financial condition and results of operations.

We are in the process of migrating our applications and infrastructure to new data centers. If we do not execute the transition to the new data centers in an effective manner, we may experience unplanned service disruptions or unforeseen increases in costs which may harm our operating results and our business. We do not maintain real-time back-up of all our data, and in the event of significant system disruption we may experience loss of data or processing capabilities, which may cause us to lose customers and may materially harm our reputation and our operating results.

Our business operations, data centers, information technology and communications systems are vulnerable to damage or interruption from natural disasters, human error, malicious attacks, fire, power loss, telecommunications failures, computer viruses, computer denial of service attacks, terrorist attacks and other events beyond our control. The majority of our research and development activities, our corporate headquarters, our principal information technology systems, and other critical business operations are located near major seismic faults. We do not carry earthquake insurance for direct quake-related losses. Our future financial results may be materially harmed in the event of a major earthquake or other natural or man-made disaster.

We rely on internal systems and external systems maintained by manufacturers, distributors and other service providers to take and fulfill customer orders, handle customer service requests and host certain online activities. Any interruption or failure of our internal or external systems may prevent us or our service providers from accepting and fulfilling customer orders or cause company and customer data to be unintentionally disclosed. Our continuing efforts to upgrade and expand our network security and other information systems as well as our high-availability capabilities may be costly, and problems with the design or implementation of system enhancements may harm our business and our results of operations.

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Our hosting, collection, use and retention of personal customer information and data create risk that may harm our business.

A number of our businesses collect, use and retain large amounts of personal customer information and data, including credit card numbers, tax return information, bank account numbers and passwords, personal and business financial data, social security numbers, healthcare information and payroll information. We may also develop new business models that use certain personal information, or data derived from personal information. In addition, we collect and maintain personal information of our employees in the ordinary course of our business. Some of this personal customer and employee information is held and some transactions are executed by third parties. In addition, as many of our products and services are Web-based, the amount of data we store for our users on our servers (including personal information) has been increasing. We and our vendors use commercially available security technologies to protect transactions and personal information. We use security and business controls to limit access and use of personal information. However, individuals or third parties may be able to circumvent these security and business measures, and errors in the storage, use or transmission of personal information may result in a breach of customer or employee privacy or theft of assets, which may require notification under applicable data privacy regulations. We employ contractors, temporary and seasonal employees who may have access to the personal information of customers and employees or who may execute transactions in the normal course of their duties. While we conduct background checks of our employees and other individuals and limit access to systems and data, it is possible that one or more of these individuals may circumvent these controls, resulting in a security breach.

The ability to execute transactions and the possession and use of personal information and data in conducting our business subjects us to legislative and regulatory burdens that may require notification to customers or employees of a security breach, restrict our use of personal information and hinder our ability to acquire new customers or market to existing customers. As our business continues to expand to new industry segments that may be more highly regulated for privacy and data security, and to countries outside the United States that have more strict data protection laws, our compliance requirements and costs may increase. We have incurred — and may continue to incur — significant expenses to comply with mandatory privacy and security standards and protocols imposed by law, regulation, industry standards or contractual obligations.

A major breach of our security measures or those of third parties that execute transactions or hold and manage personal information may have serious negative consequences for our businesses, including possible fines, penalties and damages, reduced customer demand for our services, harm to our reputation and brands, further regulation and oversight by federal or state agencies, and loss of our ability to provide financial transaction services or accept and process customer credit card orders or tax returns. From time to time, we detect, or receive notices from customers or public or private agencies that they have detected, vulnerabilities in our servers, our software or third-party software components that are distributed with our products. The existence of vulnerabilities, even if they do not result in a security breach, may harm customer confidence and require substantial resources to address, and we may not be able to discover or remediate such security vulnerabilities before they are exploited. In addition, hackers develop and deploy viruses, worms and other malicious software programs that may attack our offerings. Although this is an industry-wide problem that affects software across platforms, it is increasingly affecting our offerings because hackers tend to focus their efforts on the more popular programs and offerings and we expect them to continue to do so. If hackers were able to circumvent our security measures, we may lose personal information. Although we have commercially available network and application security, internal control measures, and physical security procedures to safeguard our systems, there can be no assurance that a security breach, loss or theft of personal information will not occur, which may harm our business, customer reputation and future financial results and may require us to expend significant resources to address these problems, including notification under data privacy regulations.

If we are unable to develop, manage and maintain critical third party business relationships, our business may be adversely affected.

Our growth is dependent on the strength of our business relationships and our ability to continue to develop, maintain and leverage new and existing relationships. We rely on various third party partners, including software and service providers, suppliers, vendors, manufacturers, distributors, financial institutions, core processors, licensing partners and development partners, among others, in many areas of our business in order to deliver our offerings and operate our business. We also rely on third parties to support the operation of our business by maintaining our physical facilities, equipment, power systems and infrastructure. In certain instances, these third party relationships are sole source or limited source relationships and can be difficult to replace or substitute depending on the level of integration of the third party’s products or services into, or with, our offerings and/or the general availability of such third party’s products and services. In addition, there may be few or no alternative third party providers or vendors in the market. The failure of third parties to provide acceptable and high quality products, services and technologies or to update their products, services and technologies may result in a disruption to our business operations, which may reduce our revenues and profits, cause us to lose customers and damage our reputation. Alternative arrangements and services may not be available to us on commercially reasonable terms or we may experience business interruptions upon a transition to an alternative partner.

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In particular, we have relationships with banks, credit unions or other financial institutions, both as customers and as suppliers of certain critical services we offer to our other customers. If macroeconomic conditions or other factors cause any of these institutions to fail, consolidate or institute cost-cutting efforts, our business and financial results may suffer and we may be unable to offer those services to our customers.

Increased government regulation of our businesses may harm our operating results.

Many of our businesses are in highly regulated areas, including our tax, payroll, payments, financial services and healthcare businesses. The application of these laws and regulations to our businesses is often unclear and compliance with these regulations may involve significant costs or require changes to our business practices that result in reduced revenue. In addition, there have been significant new regulations and heightened focus by the government on many of these areas.

In addition, as we seek to grow our business, we may expand into more highly-regulated businesses or countries, which may require increased investment in compliance and auditing functions or new technologies in order to meet regulatory standards. Government authorities may enact other laws, rules or regulations that place new burdens or restrictions on our business or determine that our operations are directly subject to existing rules or regulations, such as requirements related to data collection, use, transmission, retention and processing, which may make our business more costly, less efficient or impossible to conduct, and may require us to modify our current or future products or services, which may harm our future financial results.

The tax preparation industry continues to receive heightened attention from federal and state governments. New legislation, regulation, public policy considerations or litigation by the government or private entities may result in greater oversight of the tax preparation industry, restrict the types of products and services that we can offer or the prices we can charge, or otherwise cause us to change the way we operate our tax businesses or offer our tax products and services. This in turn may increase our cost of doing business and limit our revenue opportunities. We are also required to comply with a variety of state revenue agency standards in order to successfully operate our tax preparation and electronic filing services. Changes in state-imposed requirements by one or more of the states, including the required use of specific technologies or technology standards, may significantly increase the costs of providing those services to our customers and may prevent us from delivering a quality product to our customers in a timely manner.

Our Financial Services business provides services to banks, credit unions and other financial institutions that are subject to extensive and complex federal and state regulation. As a result, our financial institution customers require that our products and services comply with the regulations applicable to these customers. If we are unable to comply with these regulations, we may incur significant costs and penalties, face litigation or governmental proceedings, and lose our ability to sell to these customers. Any of these adverse events may harm our future financial results and our reputation.

If we fail to process transactions effectively or fail to adequately protect against disputed or potential fraudulent activities, our revenue and earnings may be harmed.

Our operations process a significant volume and dollar value of transactions on a daily basis, especially in our payroll and payments businesses. Due to the size and volume of transactions that we handle, effective processing systems and controls are essential to ensure that transactions are handled appropriately. Despite our efforts, it is possible that we may make errors or that funds may be misappropriated due to fraud. In our payroll and payments businesses, we have been experiencing an increasing amount of fraudulent activities not only by our customers, but also targeted fraud by third parties aimed directly at our offerings. In addition to any direct damages and fines that any such problems may create, which may be substantial, the loss of customer confidence in our controls may seriously harm our business. The systems supporting our business are comprised of multiple technology platforms that are difficult to scale. If we are unable to effectively manage our systems and processes we may be unable to process customer data in an accurate, reliable and timely manner, which may harm our business. In our payments processing service business if merchants for whom we process payment transactions are unable to pay refunds due to their customers in connection with disputed or fraudulent merchant transactions, we may be required to pay those amounts and our payments may exceed the amount of the customer reserves we have established to make such payments.

Third parties claiming that we infringe their proprietary rights may cause us to incur significant legal expenses and prevent us from selling our products.

As the number of products in the software industry increases and the functionality of these products further overlap, and as we acquire technology through acquisitions or licenses, we may become increasingly subject to infringement claims, including patent, copyright, and trademark infringement claims. Litigation may be necessary to determine the validity and scope of the patent rights of others. We have received an increasing number of allegations of patent infringement claims in the past and expect to receive more claims in the future based on allegations that our offerings infringe upon patents held by third parties. Some of these claims are the subject of pending litigation against us and against some of our customers. These claims may involve patent holding companies or other adverse patent owners who have no relevant product revenues of their own, and

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against whom our own patents may provide little or no deterrence. The ultimate outcome of any allegation is uncertain and, regardless of outcome, any such claim, with or without merit, may be time consuming to defend, result in costly litigation, divert management’s time and attention from our business, require us to stop selling, delay shipping or redesign our products, or require us to pay monetary damages for royalty or licensing fees, or to satisfy indemnification obligations that we have with some of our customers. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims may harm our business.

We rely on third party intellectual property in our products and services.

Many of our products and services include intellectual property of third parties, which we license under agreements that must be renewed or renegotiated from time to time. We may not be able to obtain licenses to these third party technologies or content on reasonable terms, or at all. If we are unable to obtain the rights necessary to use this intellectual property in our products and services, we may not be able to sell the affected offerings, which may in turn harm our future financial results. Also, we and our customers have been and may continue to be subject to infringement claims as a result of the third party intellectual property incorporated in to our offerings. Although we try to mitigate this risk and we may not be ultimately liable for any potential infringement, pending claims require us to use significant resources, require management attention and could result in loss of customers.

Some of our offerings include third-party software that is licensed under so-called “open source” licenses, some of which may include a requirement that, under certain circumstances, we make available, or grant licenses to, any modifications or derivative works we create based upon the open source software. Although we have established internal review and approval processes to mitigate these risks, we may not be sure that all open source software is submitted for approval prior to use in our products. Many of the risks associated with usage of open source may not be eliminated, and may, if not properly addressed, harm our business.

We expect copying and misuse of our intellectual property to be a persistent problem which may cause lost revenue and increased expenses.

Policing unauthorized use and copying of our products is difficult, expensive, and time consuming. Current U.S. laws that prohibit copying give us only limited practical protection from software piracy and the laws of many other countries provide very little protection. We frequently encounter unauthorized copies of our software being sold through online marketplaces. Although we continue to evaluate and put in place technology solutions to attempt to lessen the impact of piracy and engage in efforts to educate consumers and public policy leaders on these issues and cooperate with industry groups in their efforts to combat piracy, we expect piracy to be a persistent problem that results in lost revenues and increased expenses.

Because competition for our key employees is intense, we may not be able to attract, retain and develop the highly skilled employees we need to support our planned growth.

Much of our future success depends on the continued service and availability of skilled personnel, including members of our executive team, and those in technical, marketing and staff positions. Experienced personnel in the software and Software as a Service industries are in high demand and competition for their talents is intense, especially in California and India, where the majority of our employees are located. Also, as we strive to continue to adapt to technological change and introduce new and enhanced products and business models, we must be able to secure, maintain and develop the right quality and quantity of engaged and committed talent. Although we strive to be an employer of choice, we may not be able to continue to successfully attract, retain and develop key personnel which may cause our business to suffer.

As our product and service offerings become more tightly integrated, we may be required to recognize the related revenue over relatively longer periods of time.

Our expanding range of products and services, and the combinations in which we offer them, generate different revenue streams than our traditional desktop software businesses, and the accounting policies that apply to revenue from these offerings are complex. For example, as we offer online services bundled with other products, we may be required to defer a higher percentage of our product revenue into future fiscal periods. In addition, as we offer more services on a subscription basis, we recognize revenue from those services over the periods in which the services are provided. This may result in significant shifts of revenue from quarter to quarter, or from one fiscal year to the next.

The nature of our products and services necessitates timely product launches and if we experience significant product quality problems or delays, it may harm our revenue, earnings and reputation.

All of our tax products and many of our non-tax products have rigid development timetables that increase the risk of errors in our products and the risk of launch delays. Our tax preparation software product development cycle is particularly challenging due to the need to incorporate unpredictable tax law and tax form changes each year and because our customers expect high

39

levels of accuracy and a timely launch of these products to prepare and file their taxes by the tax filing deadline. Due to the complexity of our products and the condensed development cycles under which we operate, our products sometimes contain “bugs” that may unexpectedly interfere with the operation of the software. The complexity of our products may also make it difficult for us to consistently deliver offerings that contain the features, functionality and level of accuracy that our customers expect. When we encounter problems we may be required to modify our code, distribute patches to customers who have already purchased the product and recall or repackage existing product inventory in our distribution channels. If we encounter development challenges or discover errors in our products late in our development cycle it may cause us to delay our product launch date. Any major defects or launch delays may lead to loss of customers and revenue, negative publicity, customer and employee dissatisfaction, reduced retailer shelf space and promotions, and increased operating expenses, such as inventory replacement costs, legal fees or payments resulting from our commitment to reimburse penalties and interest paid by customers due solely to calculation errors in our consumer tax preparation products.

Our revenue and earnings are highly seasonal and our quarterly results fluctuate significantly.

Several of our businesses are highly seasonal causing significant quarterly fluctuations in our financial results. Revenue and operating results are usually strongest during the second and third fiscal quarters ending January 31 and April 30 due to our tax businesses contributing most of their revenue during those quarters and the timing of the release of our small business software products and upgrades. We experience lower revenues, and significant operating losses, in the first and fourth quarters ending October 31 and July 31. Our financial results may also fluctuate from quarter to quarter and year to year due to a variety of factors, including changes in product sales mix that affect average selling prices; product release dates; the timing of delivery of federal and state tax forms; the timing of our discontinuation of support for older product offerings; changes to our bundling strategy, such as the inclusion of upgrades with certain offerings; changes to how we communicate the availability of new functionality in the future (any of which may impact the pattern of revenue recognition); and the timing of acquisitions, divestitures, and goodwill and acquired intangible asset impairment charges.

We are frequently a party to litigation and regulatory inquiries which could result in an unfavorable outcome and have an adverse effect on our business, financial condition, results of operation and cash flows.

We are subject to various legal proceedings, claims and regulatory inquiries that have arisen out of the ordinary conduct of our business and are not yet resolved and additional claims and inquiries may arise in the future. The number and significance of these claims and inquiries have increased as our businesses have evolved. Any proceedings, claims or inquiries initiated by or against us, whether successful or not, may be time consuming; result in costly litigation, damage awards, injunctive relief or increased costs of business; require us to change our business practices; require significant amounts of management time; result in diversion of significant operations resources; or otherwise harm of business and future financial results.

The continued global economic downturn may harm our business and financial condition.

The continued global economic downturn has caused disruptions and extreme volatility in global financial markets and increased rates of default and bankruptcy, and has impacted consumer and small business spending. These macroeconomic developments have affected and may continue to negatively affect our business and financial condition. In particular, because the majority of our revenue is derived from sales within the U.S., economic conditions in the U.S. have an even greater impact on us than companies with a more diverse international presence. Potential new customers may not purchase or delay purchase of our products and services, and many of our existing customers may discontinue purchasing or delay upgrades of our existing products and services, thereby negatively impacting our revenues and future financial results. Decreased consumer spending levels may also reduce credit and debit card transaction processing volumes causing reductions in our payments revenue. Poor economic conditions and high unemployment has caused, and may continue to cause, a significant decrease in the number of tax returns filed, which may have a significant effect on the number of tax returns we prepare and file. In addition, weakness in the end-user consumer and small business markets may negatively affect the cash flow of our distributors and resellers who may, in turn, delay paying their obligations to us, which may increase our credit risk exposure and cause delays in our recognition of revenue or future sales to these customers. Additionally, if macroeconomic or other factors continue to cause banks, credit unions, mortgage lenders and other financial institutions to fail, or result in further cost-cutting efforts or consolidation of these entities, we may lose current or potential customers, achieve less revenue per customer and/or lose valuable relationships with such of these entities that provide critical services to our customers. Any of these events may harm our business and our future financial results.

We regularly invest resources to update and improve our internal information technology systems and software platforms. Should our investments not succeed, or if delays or other issues with new or existing internal technology systems and software platforms disrupt our operations, our business could be harmed.

We rely on our network and data center infrastructure and internal technology systems for many of our development, marketing, operational, support, sales, accounting and financial reporting activities. We are continually investing resources to

40

update and improve these systems and environments in order to meet existing, as well as the growing and changing requirements of our business and customers. If we experience prolonged delays or unforeseen difficulties in updating and upgrading our systems and architecture, we may experience outages and may not be able to deliver certain offerings and develop new offerings and enhancements that we need to remain competitive. Such improvements and upgrades are often complex, costly and time consuming. In addition such improvements can be challenging to integrate with our existing technology systems, or may uncover problems with our existing technology systems. Unsuccessful implementation of hardware or software updates and improvements could result in outages, disruption in our business operations, loss of revenue or damage to our reputation.

Our international operations are subject to increased risks which may harm our business, operating results, and financial condition.

In addition to uncertainty about our ability to generate revenues from our foreign operations and expand into international markets, there are risks inherent in doing business internationally, including:

• trade barriers and changes in trade regulations;

• difficulties in developing, staffing, and simultaneously managing a large number of varying foreign operations as a result of distance, language, and cultural differences;

• stringent local labor laws and regulations;

• profit repatriation restrictions, and foreign currency exchange restrictions;

• political or social unrest, economic instability, repression, or human rights issues;

• geopolitical events, including acts of war and terrorism;

• import or export regulations;

• compliance with U.S. laws such as the Foreign Corrupt Practices Act, and local laws prohibiting corrupt payments to government officials;

• different and more stringent user protection, data protection, privacy and other laws; and

• risks related to other government regulation or required compliance with local laws.

Violations of the complex foreign and U.S. laws and regulations that apply to our international operations may result in fines, criminal actions or sanctions against us, our officers or our employees, prohibitions on the conduct of our business and damage to our reputation. Although we have implemented policies and procedures designed to promote compliance with these laws, there can be no assurance that our employees, contractors or agents will not violate our policies. These risks inherent in our international operations and expansion increase our costs of doing business internationally and may result in harm to our business, operating results, and financial condition.

If actual product returns exceed returns reserves our future financial results may be harmed.

We ship more desktop software products to our distributors and retailers than we expect them to sell, in order to reduce the risk that distributors or retailers may run out of products. This is particularly true for our Consumer Tax products, which have a short selling season and for which returns occur primarily in our fiscal third and fourth quarters. Like many software companies that sell their products through distributors and retailers, we have historically accepted significant product returns. We establish reserves against revenue for product returns in our financial statements based on estimated returns and we closely monitor product sales and inventory in the retail channel in an effort to maintain adequate reserves. In the past, returns have not differed significantly from these reserves. However, if we experience actual returns that significantly exceed reserves, it may result in lower net revenue.

Unanticipated changes in our income tax rates may affect our future financial results.

Our future effective income tax rates may be favorably or unfavorably affected by unanticipated changes in the valuation of our deferred tax assets and liabilities, or by changes in tax laws or their interpretation. In addition, we are subject to the continuous examination of our income tax returns by the Internal Revenue Service and other tax authorities. We regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of our provision for income taxes. These continuous examinations may result in unforeseen tax-related liabilities, which may harm our future financial results.

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Amortization of acquired intangible assets and impairment charges may cause significant fluctuation in our net income.

Our acquisitions have resulted in significant expenses, including amortization and impairment of acquired technology and other acquired intangible assets, and impairment of goodwill. Total costs and expenses in these categories were approximately $91 million in fiscal 2010, $101 million in fiscal 2009, and $90 million in fiscal 2008. Although under current accounting rules goodwill is not amortized, we may incur impairment charges related to the goodwill already recorded and to goodwill arising out of future acquisitions. We test the impairment of goodwill annually in our fourth fiscal quarter or more frequently if indicators of impairment arise. The timing of the formal annual test may result in charges to our statement of operations in our fourth fiscal quarter that may not have been reasonably foreseen in prior periods. At April 30, 2011, we had $1.9 billion in goodwill and $203 million in net acquired intangible assets on our balance sheet, both of which may be subject to impairment charges in the future. New acquisitions, and any impairment of the value of acquired intangible assets, may have a significant negative impact on our future financial results.

Our acquisition and divestiture activities may disrupt our ongoing business, may involve increased expenses and may present risks not contemplated at the time of the transactions.

We have acquired and may continue to acquire companies, products and technologies that complement our strategic direction. Acquisitions involve significant risks and uncertainties, including:

• inability to successfully integrate the acquired technology and operations into our business and maintain uniform standards, controls, policies, and procedures;

• inability to realize synergies expected to result from an acquisition;

• challenges retaining the key employees, customers, resellers and other business partners of the acquired operation;

• the internal control environment of an acquired entity may not be consistent with our standards and may require significant time and resources to improve;

• unidentified issues not discovered in our due diligence process, including product or service quality issues, intellectual property issues and legal contingencies.

Because acquisitions and divestitures are inherently risky, our transactions may not be successful and may, in some cases, harm our operating results or financial condition. If we use debt to fund acquisitions or for other purposes, our interest expense and leverage may increase significantly. If we issue equity securities as consideration in an acquisition, current shareholders’ percentage ownership and earnings per share may be diluted.

We have issued $1 billion in a debt offering and may incur other debt in the future, which may adversely affect our financial condition and future financial results.

In fiscal 2007 we issued $500 million in senior unsecured notes due in March 2012 and $500 million in senior unsecured notes due in March 2017. As this debt matures, we will have to expend significant resources to either repay or refinance these notes. If we decide to refinance the notes, we may be required to do so on different or less favorable terms or we may be unable to refinance the notes at all, both of which may adversely affect our financial condition.

We have also entered into a $500 million five-year revolving credit facility. Although we have no current plans to request any advances under this credit facility, we may use the proceeds of any future borrowing for general corporate purposes or for future acquisitions or expansion of our business.

This debt may adversely affect our financial condition and future financial results by, among other things:

• increasing our vulnerability to downturns in our business, to competitive pressures and to adverse economic and industry conditions;

• requiring the dedication of a portion of our expected cash from operations to service our indebtedness, thereby reducing the amount of expected cash flow available for other purposes, including capital expenditures and acquisitions; and

• limiting our flexibility in planning for, or reacting to, changes in our businesses and our industries.

Our current revolving credit facility imposes restrictions on us, including restrictions on our ability to create liens on our assets and the ability of our subsidiaries to incur indebtedness, and require us to maintain compliance with specified financial ratios. Our ability to comply with these ratios may be affected by events beyond our control. In addition, our long-term non-convertible debt includes covenants that may adversely affect our ability to incur certain liens or engage in certain types of sale and leaseback transactions. If we breach any of the covenants under our long-term debt or our revolving credit facility and do

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not obtain a waiver from the lenders, then, subject to applicable cure periods, any outstanding indebtedness may be declared immediately due and payable.

In addition, changes by any rating agency to our credit rating may negatively impact the value and liquidity of both our debt and equity securities. If our credit ratings are downgraded or other negative action is taken, the interest rate payable by us under our revolving credit facility may increase. In addition, any downgrades in our credit ratings may affect our ability to obtain additional financing in the future and may affect the terms of any such financing.

We are subject to risks associated with information disseminated through our services.

The law relating to the liability of online services companies for information carried on or disseminated through their services is often unsettled. Claims may be made against online services companies under both U.S. and foreign law for defamation, libel, invasion of privacy, negligence, copyright or trademark infringement, or other theories based on the nature and content of the materials disseminated through their services. Certain of our services include content generated by users. Although this content is not generated by us, claims of defamation or other injury may be made against us for that content. Any costs incurred as a result of this potential liability may harm our business.

Our business depends on our strong reputation and the value of our brands.

Developing and maintaining awareness of our brands is critical to achieving widespread acceptance of our existing and future products and services and is an important element in attracting new customers. Adverse publicity (whether or not justified) relating to activities by our employees or agents may tarnish our reputation and reduce the value of our brands. Damage to our reputation and loss of brand equity may reduce demand for our products and services and thus have an adverse effect on our future financial results, as well as require additional resources to rebuild our reputation and restore the value of the brands.

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ITEM 2
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS

Stock repurchase activity during the three months ended April 30, 2011 was as follows:

					Total Number		Approximate
					of Shares		Dollar Value
					Purchased		of Shares
					as Part of		That May Yet
	Total Number		Average		Publicly		Be Purchased
	of Shares		Price Paid		Announced		Under
Period	Purchased		per Share		Plans		the Plans
February 1, 2011 through February 28, 2011		4,889,988	$	51.12		4,889,988	$	890,053,279
March 1, 2011 through March 31, 2011		—	$	—		—	$	890,053,279
April 1, 2011 through April 30, 2011		—	$	—		—	$	890,053,279
Total		4,889,988	$	51.12		4,889,988

Notes:

1. All shares purchased as part of publicly announced plans during the three months ended April 30, 2011 were purchased under a plan we announced on August 18, 2010 under which we are authorized to repurchase up to $2 billion of our common stock from time to time over a three-year period ending on August 16, 2013.

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ITEM 6
EXHIBITS

We have filed the following exhibits as part of this report:

Exhibit		Filed	Incorporated by
Number	Exhibit Description	Herewith	Reference
31.01	Certification of Chief Executive Officer	X
31.02	Certification of Chief Financial Officer	X
32.01*	Section 1350 Certification (Chief Executive Officer)	X
32.02*	Section 1350 Certification (Chief Financial Officer)	X
101.INS*	XBRL Instance Document	X
101.SCH*	XBRL Taxonomy Extension Schema	X
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase	X
101.LAB*	XBRL Taxonomy Extension Label Linkbase	X
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase	X
101.DEF*	XBRL Taxonomy Extension Definition Linkbase	X

* This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	INTUIT INC. (Registrant)
Date: June 1, 2011	By:	/s/ R. NEIL WILLIAMS
		R. Neil Williams
		Senior Vice President and Chief Financial Officer (Authorized Officer and Principal Financial Officer)

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EXHIBIT INDEX

Exhibit		Filed	Incorporated by
Number	Exhibit Description	Herewith	Reference
31.01	Certification of Chief Executive Officer	X
31.02	Certification of Chief Financial Officer	X
32.01*	Section 1350 Certification (Chief Executive Officer)	X
32.02*	Section 1350 Certification (Chief Financial Officer)	X
101.INS*	XBRL Instance Document	X
101.SCH*	XBRL Taxonomy Extension Schema	X
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase	X
101.LAB*	XBRL Taxonomy Extension Label Linkbase	X
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase	X
101.DEF*	XBRL Taxonomy Extension Definition Linkbase	X

* This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.

47

EX-31.01

Exhibit 31.01

CERTIFICATION OF PRINCIPAL EXECUTIVE OFFICER PURSUANT TO
EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

I, Brad D. Smith, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Intuit Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 1, 2011

By:	/s/ Brad D. Smith
Brad D. Smith
President and Chief Executive Officer
(Principal Executive Officer)

EX-31.02

Exhibit 31.02

CERTIFICATION OF PRINCIPAL FINANCIAL OFFICER PURSUANT TO
EXCHANGE ACT RULE 13a-14(a)/15d-14(a)

I, R. Neil Williams, certify that:

1.	I have reviewed this quarterly report on Form 10-Q of Intuit Inc.;
2.	Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3.	Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4.	The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.	Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
b.	Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c.	Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d.	Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a.	All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
b.	Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: June 1, 2011

By:	/s/ R. NEIL WILLIAMS
R. Neil Williams
Senior Vice President and Chief Financial Officer
(Principal Financial Officer)

EX-32.01

EXHIBIT 32.01

Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Intuit Inc. (the “Company”) on Form 10-Q for the quarter ended April 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Brad D. Smith, President and Chief Executive Officer of the Company, certifies pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ BRAD D. SMITH Brad D. Smith

President and Chief Executive Officer

Date: June 1, 2011

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.02

EXHIBIT 32.02

Certification Pursuant to 18 U.S.C. Section 1350,
As Adopted Pursuant to
Section 906 of The Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Intuit Inc. (the “Company”) on Form 10-Q for the quarter ended April 30, 2011 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), R. Neil Williams, Senior Vice President and Chief Financial Officer of the Company, certifies pursuant to 18 U.S.C. § 1350, as adopted pursuant to § 906 of the Sarbanes-Oxley Act of 2002, that:

(1)	The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(2)	The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ R. Neil Williams R. Neil Williams

Senior Vice President and Chief Financial Officer

Date: June 1, 2011

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

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Condensed Consolidated Balance Sheets (Unaudited) (USD $) In Millions	Apr. 30, 2011	Jul. 31, 2010
Current assets:
Cash and cash equivalents	$ 1,369	$ 214
Investments	459	1,408
Accounts receivable, net	266	135
Income taxes receivable	2	27
Deferred income taxes	100	117
Prepaid expenses and other current assets	65	57
Current assets before funds held for customers	2,261	1,958
Funds held for customers	383	337
Total current assets	2,644	2,295
Long-term investments	81	91
Property and equipment, net	565	510
Goodwill	1,910	1,914
Acquired intangible assets, net	203	256
Long-term deferred income taxes	53	41
Other assets	111	91
Total assets	5,567	5,198
Current liabilities:
Current portion of long-term debt	500	0
Accounts payable	196	143
Accrued compensation and related liabilities	201	206
Deferred revenue	337	387
Income taxes payable	209	14
Other current liabilities	218	134
Current liabilities before customer fund deposits	1,661	884
Customer fund deposits	383	337
Total current liabilities	2,044	1,221
Long-term debt	498	998
Other long-term obligations	204	158
Total liabilities	2,746	2,377
Commitments and contingencies
Stockholders' equity:
Preferred stock	0	0
Common stock and additional paid-in capital	2,835	2,728
Treasury stock, at cost	(4,117)	(3,315)
Accumulated other comprehensive income	15	11
Retained earnings	4,088	3,397
Total stockholders' equity	2,821	2,821
Total liabilities and stockholders' equity	$ 5,567	$ 5,198

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Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (USD $) In Millions, except Share data in Thousands	Total USD ($)	Shares of Common Stock	Common Stock and Additional Paid In Capital USD ($)	Treasury Stock USD ($)	Accumulated Other Comprehensive Income USD ($)	Retained Earnings USD ($)
Beginning Balance at Jul. 31, 2009	$ 2,557		$ 2,547	$ (2,846)	$ 7	$ 2,849
Beginning Balance, shares at Jul. 31, 2009		322,766
Components of comprehensive net income:
Net income	622					622
Other comprehensive income, net of tax	4				4
Comprehensive net income	626
Issuance of common stock under employee stock plans	326		26	302		(2)
Issuance of common stock under employee stock plans, shares		13,808
Restricted stock units released, net of taxes	(20)		(24)	28		(24)
Restricted stock units released, net of taxes, shares		1,517
Stock repurchases under stock repurchase programs	(750)			(750)
Stock repurchases under stock repurchase programs, shares	24,600	(24,624)
Tax benefit from share-based compensation plans	23		23
Share-based compensation expense	99		99
Other	(3)		(3)
Ending Balance at Apr. 30, 2010	2,858		2,668	(3,266)	11	3,445
Ending Balance, shares at Apr. 30, 2010		313,467
Beginning Balance at Jul. 31, 2010	2,821		2,728	(3,315)	11	3,397
Beginning Balance, shares at Jul. 31, 2010		313,861
Components of comprehensive net income:
Net income	691					691
Other comprehensive income, net of tax	4				4
Comprehensive net income	695
Issuance of common stock under employee stock plans	288		30	258
Issuance of common stock under employee stock plans, shares		10,968
Restricted stock units released, net of taxes	(53)		(103)	50
Restricted stock units released, net of taxes, shares		2,101
Stock repurchases under stock repurchase programs	(1,110)			(1,110)
Stock repurchases under stock repurchase programs, shares	23,300	(23,349)
Tax benefit from share-based compensation plans	68		68
Share-based compensation expense	112		112
Ending Balance at Apr. 30, 2011	$ 2,821		$ 2,835	$ (4,117)	$ 15	$ 4,088
Ending Balance, shares at Apr. 30, 2011		303,581

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Long-Term Obligations (Tables)

9 Months Ended

Apr. 30, 2011

Long-Term Obligations [Abstract]

Other long-term obligations

	April 30,			July 31,
(In millions)	2011			2010
Total license fee payable	$	69		$	65
Total deferred rent		53			60
Long-term deferred revenue		39			29
Long-term income tax liabilities		40			20
Long-term payables		19			—
Other		2			3
Total long-term obligations		222			177
Less current portion (included in other current liabilities)		(18	)		(19	)
Long-term obligations due after one year	$	204		$	158

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Document and Entity Information (USD $) In Billions, except Share data	9 Months Ended
	Apr. 30, 2011	May 23, 2011	Jan. 31, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	INTUIT INC
Entity Central Index Key	0000896878
Document Type	10-Q
Document Period End Date	Apr. 30, 2011
Amendment Flag	false
Document Fiscal Year Focus	2011
Document Fiscal Period Focus	Q3
Current Fiscal Year End Date	--07-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 8.3
Entity Common Stock, Shares Outstanding		304,000,417

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Description of Business and Summary of Significant Accounting Policies (Details) (USD $) In Millions, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011	Apr. 30, 2010	Jul. 31, 2010	Nov. 02, 2009 Mint Software Inc. [Member]	May 21, 2010 Medfusion Inc. [Member]
Basis of Presentation (Textuals)
Acquisition of companies						$ 170	$ 89
Numerator:
Net income from continuing operations	688	576	691	587
Net income from discontinued operations				35
Net income	$ 688	$ 576	$ 691	$ 622
Shares used in basic per share amounts:
Weighted average common shares outstanding	303	314	309	316
Shares used in diluted per share amounts:
Weighted average common shares outstanding	303	314	309	316
Dilutive common equivalent shares from stock options and restricted stock awards	10	9	10	9
Dilutive weighted average common shares outstanding	313	323	319	325
Basic and diluted net income per share:
Basic net income per share from continuing operations	$ 2.27	$ 1.83	$ 2.23	$ 1.86
Basic net income per share from discontinued operations				$ 0.11
Basic net income per share	$ 2.27	$ 1.83	$ 2.23	$ 1.97
Diluted net income per share from continuing operations	$ 2.20	$ 1.78	$ 2.16	$ 1.80
Diluted net income per share from discontinued operations				$ 0.11
Diluted net income per share	$ 2.20	$ 1.78	$ 2.16	$ 1.91
Weighted average stock options and restricted stock units excluded from calculation due to anti-dilutive effect	1	7		13
Description of Business and Summary of Significant Accounting Policies (Textuals)
Maximum limit of customer accountable for total net revenue	10.00%	10.00%	10.00%	10.00%
Maximum limit of customer accountable for total accounts receivable			10.00%		10.00%

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Current Liabilities

9 Months Ended

Apr. 30, 2011

Current Liabilities [Abstract]

Current Liabilities

7. Current Liabilities

Current Portion of Long-Term Debt

The current portion of long-term debt consists of $500 million of 5.40% senior unsecured notes due on March 15, 2012, less the unamortized discount. Because their contractual maturities are now within one year, we transferred these notes from long-term liabilities to current liabilities during the third quarter of fiscal 2011. See Note 8, “Long-Term Obligations — Long-Term Debt,” for more information.

Unsecured Revolving Credit Facility

On March 22, 2007 we entered into an agreement with certain institutional lenders for a $500 million unsecured revolving credit facility that will expire on March 22, 2012. Advances under the credit facility will accrue interest at rates that are equal to, at our election, either Citibank’s base rate or the London InterBank Offered Rate (LIBOR) plus a margin that ranges from 0.18% to 0.575% based on our senior debt credit ratings. The applicable interest rate will be increased by 0.05% for any period in which the total principal amount of advances and letters of credit under the credit facility exceeds $250 million. The agreement includes covenants that require us to maintain a ratio of total debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 and a ratio of annual EBITDA to interest payable of not less than 3.00 to 1.00. We were in compliance with these covenants at April 30, 2011. We may use amounts borrowed under this credit facility for general corporate purposes or for future acquisitions or expansion of our business. To date we have not borrowed under this credit facility.

Other Current Liabilities

Other current liabilities were as follows at the dates indicated:

	April 30,		July 31,
(In millions)	2011		2010
Reserve for product returns	$	57	$	20
Reserve for rebates		48		11
Current portion of license fee payable		10		10
Current portion of deferred rent		7		7
Interest payable		7		21
Executive deferred compensation plan liabilities		54		43
Other		35		22
Total other current liabilities	$	218	$	134

The balances of several of our other current liabilities, particularly our reserves for product returns and rebates, are affected by the seasonality of our business. See Note 1, “Seasonality.”

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Fair Value Measurements (Details) (USD $) In Millions	Apr. 30, 2011	Jul. 31, 2010
Assets:
Cash equivalents	$ 1,447	$ 330
Fair Value, Measurements, Recurring [Member]
Assets:
Cash equivalents	1,447	330
Available-for-sale debt securities:
Total Assets	2,158	1,975
Liabilities:
Senior notes	1,075	1,086
Fair Value, Measurements, Recurring [Member] | Level 1 [Member]
Assets:
Cash equivalents	1,447	330
Available-for-sale debt securities:
Total Assets	1,447	330
Liabilities:
Senior notes	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | Available-for-sale debt securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member]
Assets:
Cash equivalents	0	0
Available-for-sale debt securities:
Total Assets	634	1,558
Liabilities:
Senior notes	1,075	1,086
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	357	1,050
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	200	334
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	77	174
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Available-for-sale debt securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	634	1,558
Fair Value, Measurements, Recurring [Member] | Level 3 [Member]
Assets:
Cash equivalents	0	0
Available-for-sale debt securities:
Total Assets	77	87
Liabilities:
Senior notes	0	0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	77	87
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	0	0
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | Available-for-sale debt securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	77	87
Fair Value, Measurements, Recurring [Member] | Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	357	1,050
Fair Value, Measurements, Recurring [Member] | Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	77	87
Fair Value, Measurements, Recurring [Member] | Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	200	334
Fair Value, Measurements, Recurring [Member] | U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	77	174
Fair Value, Measurements, Recurring [Member] | Available-for-sale debt securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities	711	1,645
Level 1 [Member]
Assets:
Cash equivalents	1,447	330
Level 2 [Member]
Assets:
Cash equivalents	0	0
Level 3 [Member]
Assets:
Cash equivalents	$ 0	$ 0

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Segment Information (Tables)

9 Months Ended

Apr. 30, 2011

Segment Information [Abstract]

Financial results by reportable segment

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions)	2011			2010			2011			2010
Net revenue:
Financial Management Solutions	$	183		$	164		$	524		$	452
Employee Management Solutions		115			103			338			305
Payment Solutions		93			79			258			233
Consumer Tax		1,036			880			1,270			1,120
Accounting Professionals		225			205			372			351
Financial Services		89			85			254			247
Other Businesses		107			91			242			210
Total net revenue	$	1,848		$	1,607		$	3,258		$	2,918
Operating income:
Financial Management Solutions	$	61		$	44		$	154		$	106
Employee Management Solutions		70			63			197			180
Payment Solutions		20			15			44			50
Consumer Tax		853			714			877			771
Accounting Professionals		187			167			241			229
Financial Services		20			18			57			57
Other Businesses		42			38			59			63
Total segment operating income		1,253			1,059			1,629			1,456
Unallocated corporate items:
Share-based compensation expense		(39	)		(34	)		(112	)		(98	)
Other common expenses		(138	)		(122	)		(403	)		(357	)
Amortization of acquired technology		(4	)		(5	)		(13	)		(43	)
Amortization of other acquired intangible assets		(11	)		(10	)		(33	)		(31	)
Total unallocated corporate items		(192	)		(171	)		(561	)		(529	)
Total operating income from continuing operations	$	1,061		$	888		$	1,068		$	927

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Segment Information

9 Months Ended

Apr. 30, 2011

Segment Information [Abstract]

Segment Information

12. Segment Information

We have defined seven reportable segments 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.

All of our business segments except Other Businesses 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 that are not allocated to specific segments in unallocated corporate items. Unallocated corporate items also include amortization of acquired technology and amortization of other acquired intangible assets.

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, 2010. 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 our Other Businesses segment for the nine months ended April 30, 2010 have been adjusted to exclude results for our Intuit Real Estate Solutions business, which we sold in January 2010. See Note 6.

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions)	2011			2010			2011			2010
Net revenue:
Financial Management Solutions	$	183		$	164		$	524		$	452
Employee Management Solutions		115			103			338			305
Payment Solutions		93			79			258			233
Consumer Tax		1,036			880			1,270			1,120
Accounting Professionals		225			205			372			351
Financial Services		89			85			254			247
Other Businesses		107			91			242			210
Total net revenue	$	1,848		$	1,607		$	3,258		$	2,918
Operating income:
Financial Management Solutions	$	61		$	44		$	154		$	106
Employee Management Solutions		70			63			197			180
Payment Solutions		20			15			44			50
Consumer Tax		853			714			877			771
Accounting Professionals		187			167			241			229
Financial Services		20			18			57			57
Other Businesses		42			38			59			63
Total segment operating income		1,253			1,059			1,629			1,456
Unallocated corporate items:
Share-based compensation expense		(39	)		(34	)		(112	)		(98	)
Other common expenses		(138	)		(122	)		(403	)		(357	)
Amortization of acquired technology		(4	)		(5	)		(13	)		(43	)
Amortization of other acquired intangible assets		(11	)		(10	)		(33	)		(31	)
Total unallocated corporate items		(192	)		(171	)		(561	)		(529	)
Total operating income from continuing operations	$	1,061		$	888		$	1,068		$	927

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Cash and Cash Equivalents, Investments and Funds Held for Customers

9 Months Ended

Apr. 30, 2011

Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]

Cash and Cash Equivalents, Investments and Funds Held for Customers

3. Cash and Cash Equivalents, Investments and Funds Held for Customers

We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. Cash equivalents consist primarily of AAA-rated money market funds in all periods presented. Investments consist of available-for-sale investment-grade debt securities that we carry at fair value. Funds held for customers consist of cash and cash equivalents and available-for-sale investment-grade debt securities. Long-term investments consist primarily of municipal auction rate securities that we carry at fair value. See Note 2. Except for direct obligations of the United States government, securities issued by agencies of the United States government, and money market funds, we diversify our investments by limiting our holdings with any individual issuer.

The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet classification at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	1,369	$	1,369	$	214	$	214
Investments		458		459		1,407		1,408
Funds held for customers		382		383		336		337
Long-term investments		81		81		91		91
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	1,577	$	1,577	$	401	$	401
Available-for-sale debt securities:
Municipal bonds		357		357		1,049		1,050
Municipal auction rate securities		77		77		87		87
Corporate notes		199		200		333		334
U.S. agency securities		76		77		174		174
Total available-for-sale debt securities		709		711		1,643		1,645
Other long-term investments		4		4		4		4
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

We use the specific identification method to compute gains and losses on investments. We include realized gains and losses on our available-for-sale debt securities in interest and other income, net in our statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the three and nine months ended April 30, 2011 and April 30, 2010 were not significant. We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive income in the stockholders’ equity section of our balance sheets. Gross unrealized gains and losses on our available-for-sale debt securities at April 30, 2011 and July 31, 2010 were not significant.

We periodically review our investment portfolios to determine if any investment is other-than-temporarily impaired due to changes in credit risk or other potential valuation concerns. We believe that the investments we held at April 30, 2011 were not other-than-temporarily impaired. While 52 available-for-sale debt securities had fair values that were a total of $0.4 million below amortized cost at that date, we do not intend to sell these securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity. Two of these securities had been in an unrealized loss position for more than 12 months at April 30, 2011. The unrealized losses at April 30, 2011 are due to changes in interest rates, including market credit spreads, and not due to increased credit risks associated with the specific securities.

The following table summarizes our available-for-sale debt securities classified by the stated maturity date of the security at the dates indicated.

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Due within one year	$	283	$	283	$	432	$	433
Due within two years		182		183		365		366
Due within three years		109		110		164		164
Due after three years		135		135		682		682
Total available-for-sale debt securities	$	709	$	711	$	1,643	$	1,645

Available-for-sale debt securities due after three years in the table above included $77 million in municipal auction rate securities at April 30, 2011 and $87 million in municipal auction rate securities at July 31, 2010. See Note 2. Of the remaining available-for-sale debt securities, 83% and 89% had an interest reset date, put date or mandatory call date within two years of those dates.

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Income Taxes (Details) (USD $) In Millions, unless otherwise specified	3 Months Ended		9 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011	Apr. 30, 2010	Jul. 31, 2010
Income Taxes (Textuals)
Effective tax rate	35.00%	34.00%	34.00%	34.00%
Effective tax rate excluding discrete tax benefits		37.00%	35.00%	37.00%
Federal statutory income tax rate	35.00%	35.00%		35.00%
Total amount of unrecognized tax benefits					$ 35
Unrecognized tax benefits net of related deferred tax assets					30
Favourable net impact to income tax expense due to recognition of tax benefits					30
Discrete tax benefit due to changes in federal tax law			$ 9

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Income Taxes

9 Months Ended

Apr. 30, 2011

Income Taxes [Abstract]

Income Taxes

9. Income Taxes

Effective Tax Rate

We compute our provision for or benefit from income taxes by applying the estimated annual effective tax rate to income or loss from recurring operations and adding the effects of any discrete income tax items specific to the period. Our effective tax rate for the three months ended April 30, 2011 was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the three months ended April 30, 2010 was approximately 34%. In that quarter we recorded discrete tax benefits that were primarily related to foreign tax credit benefits associated with the distribution of profits from our non-U.S. subsidiaries and our plans to indefinitely reinvest substantially all remaining non-U.S. earnings in support of our international expansion plans. Excluding those discrete benefits, our effective tax rate for that period was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

Our effective tax rate for the nine months ended April 30, 2011 was approximately 34%. Excluding discrete tax benefits primarily related to the retroactive reinstatement of the federal research and experimentation credit as described below, our effective tax rate for that period was approximately 35% and did not differ significantly from the statutory rate. State income taxes were substantially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit. Our effective tax rate for the nine months ended April 30, 2010 was approximately 34%. In that period we recorded discrete tax benefits as described above. Excluding those discrete tax benefits, our effective tax rate for that period was approximately 37%. This differed from the federal statutory rate of 35% primarily due to state income taxes, which were partially offset by the benefit we received from the domestic production activities deduction and the federal research and experimentation credit.

In December 2010 the Tax Relief, Unemployment Insurance Reauthorization, and Jobs Creation Act of 2010 was signed into law. The Act includes a reinstatement of the federal research and experimentation credit through December 31, 2011 that was retroactive to January 1, 2010. We recorded a discrete tax benefit of approximately $9 million for the retroactive amount related to fiscal 2010 and the first quarter of fiscal 2011 during the second quarter of fiscal 2011.

Unrecognized Tax Benefits and Other Considerations

The total amount of our unrecognized tax benefits at July 31, 2010 was $35 million. Net of related deferred tax assets, unrecognized tax benefits were $30 million at that date. If we were to recognize these net benefits, our income tax expense would reflect a favorable net impact of $30 million. There were no material changes to these amounts during the nine months ended April 30, 2011. We do not believe that it is reasonably possible that there will be a significant increase or decrease in our unrecognized tax benefits over the next 12 months.

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Description of Business and Summary of Significant Accounting Policies (Tables)

9 Months Ended

Apr. 30, 2011

Description of Business and Summary of Significant Accounting Policies [Abstract]

Composition of shares used in the computation of basic and diluted net income per share

	Three Months Ended				Nine Months Ended
	April 30,		April 30,		April 30,		April 30,
(In millions, except per share amounts)	2011		2010		2011		2010
Numerator:
Net income from continuing operations	$	688	$	576	$	691	$	587
Net income from discontinued operations		—		—		—		35
Net income	$	688	$	576	$	691	$	622
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding		303		314		309		316
Shares used in diluted per share amounts:
Weighted average common shares outstanding		303		314		309		316
Dilutive common equivalent shares from stock options and restricted stock awards		10		9		10		9
Dilutive weighted average common shares outstanding		313		323		319		325
Basic and diluted net income per share:
Basic net income per share from continuing operations	$	2.27	$	1.83	$	2.23	$	1.86
Basic net income per share from discontinued operations		—		—		—		0.11
Basic net income per share	$	2.27	$	1.83	$	2.23	$	1.97
Diluted net income per share from continuing operations	$	2.20	$	1.78	$	2.16	$	1.80
Diluted net income per share from discontinued operations		—		—		—		0.11
Diluted net income per share	$	2.20	$	1.78	$	2.16	$	1.91
Weighted average stock options and restricted stock units excluded from calculation due to anti-dilutive effect		1		7		—		13

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Stockholders' Equity

9 Months Ended

Apr. 30, 2011

Stockholders' Equity [Abstract]

Stockholders' Equity

10. Stockholders’ Equity

Stock Repurchase Programs

Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. We repurchased 23.3 million shares for $1.11 billion under these programs during the nine months ended April 30, 2011 and 24.6 million shares for $750 million under these programs during the nine months ended April 30, 2010. At April 30, 2011, we had authorization from our Board of Directors to expend up to an additional $890 million for stock repurchases through August 16, 2013.

To facilitate the stock repurchase program described above, from time to time we repurchase shares in the open market. On January 3, 2011 we entered into an accelerated share repurchase (ASR) agreement with a large financial institution to repurchase $250 million of Intuit’s common stock on an accelerated basis. We entered into this ASR agreement in order to repurchase shares at a guaranteed discount from the average price of our stock over a specified period of time. We had the contractual right to cancel the ASR agreement without any financial or other obligation at any time prior to February 2, 2011. On February 2, 2011 we paid $250 million to the financial institution and received an initial delivery of 4.2 million shares of Intuit common stock. On April 21, 2011 we received a final delivery of 0.7 million shares for a total of 4.9 million shares at $51.12 per share. The total number of shares delivered generally was determined by applying an agreed discount to the average of the daily volume weighted average price of Intuit common shares traded during the pricing period. We reflected the shares delivered to us by the financial institution as treasury shares as of the dates they were delivered in computing weighted average shares outstanding for both basic and diluted net income per share.

Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount.

Share-Based Compensation Expense

The following table summarizes the total share-based compensation expense that we recorded for the periods shown.

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions, except per share amounts)	2011			2010			2011			2010
Cost of revenue	$	2		$	2		$	5		$	7
Selling and marketing		12			11			33			30
Research and development		13			10			38			30
General and administrative		12			11			36			31
Discontinued operations		—			—			—			1
Total share-based compensation expense		39			34			112			99
Income tax benefit		(14	)		(12	)		(39	)		(35	)
Decrease in net income	$	25		$	22		$	73		$	64
Decrease in net income per share:
Basic	$	0.08		$	0.07		$	0.24		$	0.20
Diluted	$	0.08		$	0.07		$	0.23		$	0.20

Stock Option Activity and Related Share-Based Compensation Expense

A summary of activity under all share-based compensation plans for the nine months ended April 30, 2011 was as follows:

				Options Outstanding
							Weighted
							Average
	Shares						Exercise
	Available			Number			Price
(Shares in thousands)	for Grant			of Shares			Per Share
Balance at July 31, 2010		8,761			32,593		$	28.45
Additional shares authorized		31,000			—			—
Options granted		(772	)		772			47.22
Restricted stock units granted (2)		(982	)		—			—
Options exercised		—			(10,361	)		25.68
Options canceled or expired (1)		749			(787	)		31.08
Restricted stock units forfeited (1)(2)		1,217			—			—
Balance at April 30, 2011		39,973			22,217		$	30.30
Exercisable at April 30, 2011					13,342		$	27.36

(1)	Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
(2)	Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.

At April 30, 2011, there was approximately $62 million of unrecognized compensation cost related to non-vested stock options that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 1.9 years.

Restricted Stock Unit Activity and Related Share-Based Compensation Expense

A summary of restricted stock unit activity for the nine months ended April 30, 2011 was as follows:

	Restricted Stock Units
				Weighted
				Average
	Number			Grant Date
(Shares in thousands)	of Shares			Fair Value
Nonvested at July 31, 2010		11,531		$	30.93
Granted		585			42.34
Vested		(3,379	)		26.21
Forfeited		(692	)		31.23
Nonvested at April 30, 2011		8,045		$	33.71

At April 30, 2011, there was approximately $142 million of unrecognized compensation cost related to non-vested RSUs and restricted stock that we expect to recognize as expense in the future. We will adjust unrecognized compensation cost for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average vesting period of 2.0 years.

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Discontinued Operations (Details) (USD $) In Millions	9 Months Ended	12 Months Ended
	Apr. 30, 2010	Jul. 31, 2010 Intuit Real Estate Solutions [Member]
Discontinued Operations (Textuals)
Gross proceeds from sale of business		$ 128
Net gain on disposal of business		35
Net revenue from Intuit Real Estate Solutions	33
Net income (loss) from Intuit Real Estate Solutions, excluding the net gain on disposal	$ 1

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Long-Term Obligations

9 Months Ended

Apr. 30, 2011

Long-Term Obligations [Abstract]

Long-Term Obligations

8. Long-Term Obligations

Long-Term Debt

On March 12, 2007 we issued $500 million of 5.40% senior unsecured notes due on March 15, 2012 and $500 million of 5.75% senior unsecured notes due on March 15, 2017 (together, the Notes), for a total principal amount of $1 billion. We carried the Notes at face value less the unamortized discount of $2 million on our balance sheets at April 30, 2011 and July 31, 2010. Because their contractual maturities are now within one year, we transferred the March 2012 notes from long-term liabilities to current liabilities during the third quarter of fiscal 2011. The Notes are redeemable by Intuit at any time, subject to a make-whole premium. The Notes include covenants that limit our ability to grant liens on our facilities and to enter into sale and leaseback transactions, subject to significant allowances. We paid $56 million in cash for interest on the Notes during the nine months ended April 30, 2011 and April 30, 2010.

Other Long-Term Obligations

Other long-term obligations were as follows at the dates indicated:

	April 30,			July 31,
(In millions)	2011			2010
Total license fee payable	$	69		$	65
Total deferred rent		53			60
Long-term deferred revenue		39			29
Long-term income tax liabilities		40			20
Long-term payables		19			—
Other		2			3
Total long-term obligations		222			177
Less current portion (included in other current liabilities)		(18	)		(19	)
Long-term obligations due after one year	$	204		$	158

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Description of Business and Summary of Significant Accounting Policies

9 Months Ended

Apr. 30, 2011

Description of Business and Summary of Significant Accounting Policies [Abstract]

Description of Business and Summary of Significant Accounting Policies

1. Description of Business and Summary of Significant Accounting Policies

Description of Business

Intuit Inc. provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. Our flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Our Financial Services business provides online banking solutions and services to banks and credit unions. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. In November 2009 we acquired Mint Software Inc. for total consideration of approximately $170 million and in May 2010 we acquired Medfusion, Inc. for total consideration of approximately $89 million. We have included the results of operations for Mint and Medfusion in our consolidated results of operations from their respective dates of acquisition. In January 2010 we sold our Intuit Real Estate Solutions (IRES) business. We have reclassified our financial statements for all periods prior to the sale to reflect IRES as discontinued operations. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

We have included all adjustments, consisting only of normal recurring items and the reclassifications for discontinued operations discussed above, which we considered necessary for a fair presentation of our financial results for the interim periods presented. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2010. Results for the nine months ended April 30, 2011 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2011 or any other future period.

We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to reportable segments and discontinued operations.

Seasonality

Our QuickBooks, Consumer Tax and Accounting Professionals businesses are highly seasonal. Revenue from our QuickBooks software products tends to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. Seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31, when revenue from our tax businesses is minimal while operating expenses continue at relatively consistent levels.

Significant Accounting Policies

We describe our 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, 2010. As discussed below, on August 1, 2010 we adopted authoritative guidance on multiple-deliverable revenue arrangements. There have been no other changes to our significant accounting policies during the first nine months of fiscal 2011.

Multiple-Deliverable Revenue Arrangements

In October 2009 the Financial Accounting Standards Board (FASB) amended the accounting standards applicable to revenue recognition for multiple-deliverable revenue arrangements that are outside the scope of industry-specific software revenue recognition guidance. This new guidance amends the criteria for allocating consideration in multiple-deliverable revenue arrangements by establishing a selling price hierarchy. The selling price used for each deliverable will be based on vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. The guidance also eliminates the use of the residual method of allocation and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method.

We adopted this guidance on a prospective basis on August 1, 2010, and therefore applied it to relevant revenue arrangements originating or materially modified on or after that date.

VSOE generally exists when we sell the deliverable separately and we are normally able to establish VSOE for all deliverables in these multiple-element arrangements; however, in certain limited instances VSOE cannot be established. This may be because we infrequently sell each element separately, do not price products within a narrow range, or have a limited sales history, such as in the case of our emerging market offerings. When VSOE cannot be established, we attempt to establish selling price for each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately.

When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. We determine ESP for a product or service by considering multiple factors, including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices.

Our adoption of this new accounting guidance did not have a significant impact on the timing and pattern of revenue recognition when applied to multiple-element arrangements because our multiple-element offerings are predominantly software or software-related and VSOE exists for most of these offerings.

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods indicated.

	Three Months Ended				Nine Months Ended
	April 30,		April 30,		April 30,		April 30,
(In millions, except per share amounts)	2011		2010		2011		2010
Numerator:
Net income from continuing operations	$	688	$	576	$	691	$	587
Net income from discontinued operations		—		—		—		35
Net income	$	688	$	576	$	691	$	622
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding		303		314		309		316
Shares used in diluted per share amounts:
Weighted average common shares outstanding		303		314		309		316
Dilutive common equivalent shares from stock options and restricted stock awards		10		9		10		9
Dilutive weighted average common shares outstanding		313		323		319		325
Basic and diluted net income per share:
Basic net income per share from continuing operations	$	2.27	$	1.83	$	2.23	$	1.86
Basic net income per share from discontinued operations		—		—		—		0.11
Basic net income per share	$	2.27	$	1.83	$	2.23	$	1.97
Diluted net income per share from continuing operations	$	2.20	$	1.78	$	2.16	$	1.80
Diluted net income per share from discontinued operations		—		—		—		0.11
Diluted net income per share	$	2.20	$	1.78	$	2.16	$	1.91
Weighted average stock options and restricted stock units excluded from calculation due to anti-dilutive effect		1		7		—		13

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three or nine months ended April 30, 2011 or April 30, 2010. No customer accounted for 10% or more of total accounts receivable at April 30, 2011 or July 31, 2010.

Recent Accounting Pronouncements

ASU 2011-04, “Fair Value Measurement (Topic 820)”

On May 12, 2011 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04). This update amends Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurement and Disclosure.” ASU 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 is effective for annual and interim reporting periods beginning on or after December 15, 2011, which means that it will be effective for our fiscal quarter beginning February 1, 2012. The new guidance is to be adopted prospectively and early adoption is not permitted. We do not believe that adoption of ASU 2011-04 will have a significant impact on our financial position, results of operations or cash flows.

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Accumulated Other Comprehensive Income

9 Months Ended

Apr. 30, 2011

Accumulated Other Comprehensive Income [Abstract]

Accumulated Other Comprehensive Income

4. Accumulated Other Comprehensive Income

We add components of other comprehensive income, such as changes in the fair value of available-for-sale debt securities and foreign currency translation adjustments, to our net income or loss to arrive at comprehensive net income or loss. For the three and nine months ended April 30, 2011 and April 30, 2010, other comprehensive income was not significant.

The balances in accumulated other comprehensive income in the equity section of our balance sheets at April 30, 2011 and July 31, 2010 consisted primarily of cumulative foreign currency translation adjustments and were not significant.

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Business Combinations (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended		9 Months Ended
	Apr. 30, 2011 Mint Software Inc. [Member]	Nov. 02, 2009 Mint Software Inc. [Member]	Apr. 30, 2011 Medfusion Inc. [Member]	May 21, 2010 Medfusion Inc. [Member]
Business Combinations (Textuals)
Cost of acquired entity		$ 170		$ 89
Fair value of assumed equity awards and cash retention bonuses that will be charged to expense over a three year service period		24		10
Allocation of consideration to tangible assets and liabilities		1		8
Allocation of consideration to identified intangible assets		43		23
Excess consideration as goodwill		$ 102		$ 62
Amortization of identified intangible assets over weighted average life, in years	7		6
Period for charging total consideration as expense		3		3

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Business Combinations

9 Months Ended

Apr. 30, 2011

Business Combinations [Abstract]

Business Combinations

5. Business Combinations

We completed the business combinations described below during fiscal 2010. We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition. Their results of operations for periods prior to the dates of acquisition were not material, individually or in the aggregate, when compared with our consolidated results of operations. The fair values assigned to the identifiable intangible assets acquired were based on estimates and assumptions determined by management.

Medfusion, Inc.

On May 21, 2010 we acquired privately held Medfusion, Inc. for total consideration of approximately $89 million. The total consideration included approximately $10 million for the fair value of cash retention bonuses that is being charged to expense over a three year service period. Medfusion is a provider of online patient-to-provider communication solutions and became part of our Other Businesses segment. We acquired Medfusion to expand our online healthcare offerings in support of our Connected Services strategy.

Under the acquisition method of accounting we allocated the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. We recorded the excess of consideration over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $8 million of the consideration to net tangible liabilities and approximately $23 million of the consideration to identified intangible assets. We recorded the excess consideration of approximately $62 million as goodwill, none of which is deductible for income tax purposes. The identified intangible assets are being amortized over a weighted average life of six years.

Mint Software Inc.

On November 2, 2009 we acquired all of the outstanding equity interests of Mint Software Inc. for total consideration of approximately $170 million. The total consideration included approximately $24 million for cash retention bonuses and the fair value of assumed equity awards and Intuit common stock issued to the holder of Mint Series D Preferred Stock. The total of $24 million is being charged to expense over a three year service period. Mint is a provider of online personal finance services and became part of our Other Businesses segment. We acquired Mint to expand our online personal finance offerings in support of our Connected Services strategy.

Under the acquisition method of accounting we allocated the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. The fair values assigned to identifiable intangible assets acquired were based on estimates and assumptions determined by management. We recorded the excess of consideration over the aggregate fair values as goodwill. Using information available at the time the acquisition closed, we allocated approximately $1 million of the consideration to tangible assets and liabilities and approximately $43 million of the consideration to identified intangible assets. We recorded the excess consideration of approximately $102 million as goodwill, none of which is deductible for income tax purposes. The identified intangible assets are being amortized over a weighted average life of seven years.

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Fair Value Measurements (Details 1) (USD $) In Millions	Apr. 30, 2011	Jul. 31, 2010
Cash equivalents:
Cash equivalents	$ 1,447	$ 330
Level 1 [Member]
Cash equivalents:
Cash equivalents	1,447	330
Level 1 [Member] | Cash equivalents in cash and cash equivalents [Member]
Cash equivalents:
Cash equivalents	1,239	143
Level 1 [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Cash equivalents	208	187
Level 1 [Member] | In investments [Member]
Available-for-sale debt securities:
Investments	0	0
Level 1 [Member] | In funds held for customers [Member]
Available-for-sale debt securities:
Investments	0	0
Level 1 [Member] | In long-term investments [Member]
Available-for-sale debt securities:
Investments	0	0
Level 1 [Member] | Available-for-Sale Debt Securities [Member]
Available-for-sale debt securities:
Investments	0	0
Level 2 [Member]
Cash equivalents:
Cash equivalents	0	0
Level 2 [Member] | Cash equivalents in cash and cash equivalents [Member]
Cash equivalents:
Cash equivalents	0	0
Level 2 [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Cash equivalents	0	0
Level 2 [Member] | In investments [Member]
Available-for-sale debt securities:
Investments	459	1,408
Level 2 [Member] | In funds held for customers [Member]
Available-for-sale debt securities:
Investments	175	150
Level 2 [Member] | In long-term investments [Member]
Available-for-sale debt securities:
Investments	0	0
Level 2 [Member] | Available-for-Sale Debt Securities [Member]
Available-for-sale debt securities:
Investments	634	1,558
Level 3 [Member]
Cash equivalents:
Cash equivalents	0	0
Level 3 [Member] | Cash equivalents in cash and cash equivalents [Member]
Cash equivalents:
Cash equivalents	0	0
Level 3 [Member] | Cash equivalents in funds held for customers [Member]
Cash equivalents:
Cash equivalents	0	0
Level 3 [Member] | In investments [Member]
Available-for-sale debt securities:
Investments	0	0
Level 3 [Member] | In funds held for customers [Member]
Available-for-sale debt securities:
Investments	0	0
Level 3 [Member] | In long-term investments [Member]
Available-for-sale debt securities:
Investments	77	87
Level 3 [Member] | Available-for-Sale Debt Securities [Member]
Available-for-sale debt securities:
Investments	77	87
Cash equivalents in cash and cash equivalents [Member]
Cash equivalents:
Cash equivalents	1,239	143
Cash equivalents in funds held for customers [Member]
Cash equivalents:
Cash equivalents	208	187
In investments [Member]
Available-for-sale debt securities:
Investments	459	1,408
In funds held for customers [Member]
Available-for-sale debt securities:
Investments	175	150
In long-term investments [Member]
Available-for-sale debt securities:
Investments	77	87
Available-for-Sale Debt Securities [Member]
Available-for-sale debt securities:
Investments	$ 711	$ 1,645

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Current Liabilities (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended			3 Months Ended
	Apr. 30, 2011	Jul. 31, 2010	Mar. 22, 2007	Apr. 30, 2011 Senior Notes Due 2012 [Member]
Debt Instrument [Line Items]
Current portion of long-term debt	$ 500	$ 0		$ 500
Period for contractual maturities of senior notes				within 1 year
Senior notes, rate				5.40%
Other Current Liabilities
Reserve for product returns	57	20
Reserve for rebates	48	11
Current portion of license fee payable	10	10
Current portion of deferred rent	7	7
Interest payable	7	21
Executive deferred compensation plan liabilities	54	43
Other	35	22
Total other current liabilities	218	134
Current Liabilities (Textuals)
Unsecured revolving credit facility			500
Libor plus minimum interest rate on advances under credit facilities	0.18%
Libor plus maximum interest rate on advances under credit facilities	0.575%
Limit of amount of credit facility for incremental interest rate	$ 250
Incremental rate of interest if the credit facility exceeds the specified limit	0.05%
Minimum ratio of debt to annual earnings before interest, taxes, depreciation and amortization as per agreement	1.00
Maximum ratio of debt to annual earnings before interest, taxes, depreciation and amortization as per agreement	3.25
Minimum ratio of annual earnings before interest, taxes, depreciation and amortization to interest payable as per agreement	1.00
Maximum ratio of annual earnings before interest, taxes, depreciation and amortization to interest payable as per agreement	3.00

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Cash and Cash Equivalents, Investments and Funds Held for Customers (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended	12 Months Ended
	Apr. 30, 2011	Jul. 31, 2010	Jan. 31, 2011	Apr. 30, 2010	Jan. 31, 2010	Jul. 31, 2009
Classification On Balance Sheets Abstract
Cash and cash equivalents	$ 1,369	$ 214	$ 433	$ 430	$ 337	$ 679
Investments	459	1,408
Funds held for customers	383	337
Long-term investments	81	91
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	709	1,643
Total available-for-sale debt securities, fair value	711	1,645
Available-for-sale debt securities classified by the stated maturity date of the security
Due within one year, amortized cost	283	432
Due within one year, fair value	283	433
Due within two years, amortized cost	182	365
Due within two years, fair value	183	366
Due within three years, amortized cost	109	164
Due within three years, fair value	110	164
Due after three years, amortized cost	135	682
Due after three years, fair value	135	682
Total available-for-sale debt securities, amortized cost	709	1,643
Total available-for-sale debt securities, fair value	711	1,645
Cash and Cash Equivalents, Investments and Funds Held for Customers (Textuals)
Number of available-for-sale debt securities	52
Fair value below amortized cost for available for sale debt securities.	0.4
Municipal auction rate securities	77	87
Available-for-sale debt securities with an interest reset date, put date or mandatory call date, percentage	83.00%	89.00%
Mandatory call date	Within two years	Within two years
Cost [Member]
Classification On Balance Sheets Abstract
Cash and cash equivalents	1,369	214
Investments	458	1,407
Funds held for customers	382	336
Long-term investments	81	91
Total cash and cash equivalents, investments and funds held for customers	2,290	2,048
Type of issue:
Total cash and cash equivalents	1,577	401
Available-for-sale debt securities:
Other long-term investments	4	4
Total cash and cash equivalents, investments and funds held for customers	2,290	2,048
Fair Value [Member]
Classification On Balance Sheets Abstract
Cash and cash equivalents	1,369	214
Investments	459	1,408
Funds held for customers	383	337
Long-term investments	81	91
Total cash and cash equivalents, investments and funds held for customers	2,292	2,050
Type of issue:
Total cash and cash equivalents	1,577	401
Available-for-sale debt securities:
Other long-term investments	4	4
Total cash and cash equivalents, investments and funds held for customers	2,292	2,050
Municipal bonds [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	357	1,049
Total available-for-sale debt securities, fair value	357	1,050
Available-for-sale debt securities classified by the stated maturity date of the security
Total available-for-sale debt securities, amortized cost	357	1,049
Total available-for-sale debt securities, fair value	357	1,050
Municipal auction rate securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	77	87
Total available-for-sale debt securities, fair value	77	87
Available-for-sale debt securities classified by the stated maturity date of the security
Total available-for-sale debt securities, amortized cost	77	87
Total available-for-sale debt securities, fair value	77	87
Corporate notes [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	199	333
Total available-for-sale debt securities, fair value	200	334
Available-for-sale debt securities classified by the stated maturity date of the security
Total available-for-sale debt securities, amortized cost	199	333
Total available-for-sale debt securities, fair value	200	334
U.S. agency securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	76	174
Total available-for-sale debt securities, fair value	77	174
Available-for-sale debt securities classified by the stated maturity date of the security
Total available-for-sale debt securities, amortized cost	76	174
Total available-for-sale debt securities, fair value	77	174
Available-for-Sale Debt Securities [Member]
Available-for-sale debt securities:
Total available-for-sale debt securities, amortized cost	709	1,643
Total available-for-sale debt securities, fair value	711	1,645
Available-for-sale debt securities classified by the stated maturity date of the security
Total available-for-sale debt securities, amortized cost	709	1,643
Total available-for-sale debt securities, fair value	$ 711	$ 1,645

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Description of Business and Summary of Significant Accounting Policies (Policies)

9 Months Ended

Apr. 30, 2011

Description of Business and Summary of Significant Accounting Policies [Abstract]

Description of Business

Description of Business

Intuit Inc. provides business and financial management solutions for small and medium-sized businesses, consumers, accounting professionals and financial institutions. Our flagship products and services, including QuickBooks, Quicken and TurboTax, simplify small business management and payroll processing, personal finance, and tax preparation and filing. ProSeries and Lacerte are Intuit’s tax preparation offerings for professional accountants. Our Financial Services business provides online banking solutions and services to banks and credit unions. Incorporated in 1984 and headquartered in Mountain View, California, we sell our products and services primarily in the United States.

Basis of Presentation

Basis of Presentation

These condensed consolidated financial statements include the financial statements of Intuit and its wholly owned subsidiaries. We have eliminated all significant intercompany balances and transactions in consolidation. In November 2009 we acquired Mint Software Inc. for total consideration of approximately $170 million and in May 2010 we acquired Medfusion, Inc. for total consideration of approximately $89 million. We have included the results of operations for Mint and Medfusion in our consolidated results of operations from their respective dates of acquisition. In January 2010 we sold our Intuit Real Estate Solutions (IRES) business. We have reclassified our financial statements for all periods prior to the sale to reflect IRES as discontinued operations. Unless noted otherwise, discussions in these notes pertain to our continuing operations.

We have included all adjustments, consisting only of normal recurring items and the reclassifications for discontinued operations discussed above, which we considered necessary for a fair presentation of our financial results for the interim periods presented. These unaudited condensed consolidated financial statements and accompanying notes should be read together with the audited consolidated financial statements in Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2010. Results for the nine months ended April 30, 2011 do not necessarily indicate the results we expect for the fiscal year ending July 31, 2011 or any other future period.

We have reclassified certain amounts previously reported in our financial statements to conform to the current presentation, including amounts related to reportable segments and discontinued operations.

Seasonality

Seasonality

Our QuickBooks, Consumer Tax and Accounting Professionals businesses are highly seasonal. Revenue from our QuickBooks software products tends to be highest during our second and third fiscal quarters. Sales of income tax preparation products and services are heavily concentrated in the period from November through April. Seasonal patterns mean that our total net revenue is usually highest during our second quarter ending January 31 and third quarter ending April 30. We typically report losses in our first quarter ending October 31 and fourth quarter ending July 31, when revenue from our tax businesses is minimal while operating expenses continue at relatively consistent levels.

Significant Accounting Policies

Significant Accounting Policies

We describe our 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, 2010. As discussed below, on August 1, 2010 we adopted authoritative guidance on multiple-deliverable revenue arrangements. There have been no other changes to our significant accounting policies during the first nine months of fiscal 2011.

Multiple-Deliverable Revenue Arrangements

Multiple-Deliverable Revenue Arrangements

In October 2009 the Financial Accounting Standards Board (FASB) amended the accounting standards applicable to revenue recognition for multiple-deliverable revenue arrangements that are outside the scope of industry-specific software revenue recognition guidance. This new guidance amends the criteria for allocating consideration in multiple-deliverable revenue arrangements by establishing a selling price hierarchy. The selling price used for each deliverable will be based on vendor-specific objective evidence (VSOE) if available, third-party evidence (TPE) if VSOE is not available, or estimated selling price (ESP) if neither VSOE nor TPE is available. The guidance also eliminates the use of the residual method of allocation and requires that arrangement consideration be allocated at the inception of the arrangement to all deliverables using the relative selling price method.

We adopted this guidance on a prospective basis on August 1, 2010, and therefore applied it to relevant revenue arrangements originating or materially modified on or after that date.

VSOE generally exists when we sell the deliverable separately and we are normally able to establish VSOE for all deliverables in these multiple-element arrangements; however, in certain limited instances VSOE cannot be established. This may be because we infrequently sell each element separately, do not price products within a narrow range, or have a limited sales history, such as in the case of our emerging market offerings. When VSOE cannot be established, we attempt to establish selling price for each element based on TPE. TPE is determined based on competitor prices for similar deliverables when sold separately.

When we are unable to establish selling price using VSOE or TPE, we use ESP in our allocation of arrangement consideration. We determine ESP for a product or service by considering multiple factors, including, but not limited to, geographies, market conditions, competitive landscape, internal costs, gross margin objectives, and pricing practices.

Our adoption of this new accounting guidance did not have a significant impact on the timing and pattern of revenue recognition when applied to multiple-element arrangements because our multiple-element offerings are predominantly software or software-related and VSOE exists for most of these offerings.

Computation of Net Income (Loss) Per Share

Computation of Net Income (Loss) Per Share

We compute basic net income or loss per share using the weighted average number of common shares outstanding during the period. We compute diluted net income per share using the weighted average number of common shares and dilutive potential common shares outstanding during the period. Dilutive potential common shares include shares issuable upon the exercise of stock options and upon the vesting of restricted stock units (RSUs) under the treasury stock method.

We include stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are less than the average market price for our common stock, in the calculation of diluted net income per share. We exclude stock options with combined exercise prices, unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, and RSUs with unrecognized compensation expense and tax benefits that are greater than the average market price for our common stock, from the calculation of diluted net income per share because their effect is anti-dilutive. Under the treasury stock method, the amount that must be paid to exercise stock options, the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs, and the amount of tax benefits that will be recorded in additional paid-in capital when the awards become deductible are assumed to be used to repurchase shares.

In loss periods, basic net loss per share and diluted net loss per share are the same since the effect of potential common shares is anti-dilutive and therefore excluded.

Concentration of Credit Risk and Significant Customers

Concentration of Credit Risk and Significant Customers

No customer accounted for 10% or more of total net revenue in the three or nine months ended April 30, 2011 or April 30, 2010. No customer accounted for 10% or more of total accounts receivable at April 30, 2011 or July 31, 2010.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ASU 2011-04, “Fair Value Measurement (Topic 820)”

On May 12, 2011 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2011-04, “Fair Value Measurement (Topic 820): Amendments to Achieve Common Fair Value Measurement and Disclosure Requirements in U.S. GAAP and IFRSs” (ASU 2011-04). This update amends Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurement and Disclosure.” ASU 2011-04 clarifies the application of certain existing fair value measurement guidance and expands the disclosures for fair value measurements that are estimated using significant unobservable (Level 3) inputs. ASU 2011-04 is effective for annual and interim reporting periods beginning on or after December 15, 2011, which means that it will be effective for our fiscal quarter beginning February 1, 2012. The new guidance is to be adopted prospectively and early adoption is not permitted. We do not believe that adoption of ASU 2011-04 will have a significant impact on our financial position, results of operations or cash flows.

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Discontinued Operations

9 Months Ended

Apr. 30, 2011

Discontinued Operations [Abstract]

Discontinued Operations

6. Discontinued Operations

On January 15, 2010 we sold our Intuit Real Estate Solutions (IRES) business for approximately $128 million in cash and recorded a net gain on disposal of $35 million. The decision to sell IRES was a result of management’s desire to focus resources on Intuit’s core products and services. IRES was part of our Other Businesses segment.

We accounted for IRES as a discontinued operation and have therefore segregated the operating results of IRES from continuing operations in our statements of operations for all periods prior to the sale. For the nine months ended April 30, 2010, net revenue from IRES was $33 million and net income from IRES was less than $1 million, excluding the net gain on disposal. Because IRES operating cash flows were not material for any period presented, we have not segregated them from continuing operations on our statements of cash flows.

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Cash and Cash Equivalents, Investments and Funds Held for Customers (Tables)

9 Months Ended

Apr. 30, 2011

Cash and Cash Equivalents, Investments and Funds Held for Customers [Abstract]

Cash and cash equivalents, investments and funds held for customers by balance sheet classification

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Classification on balance sheets:
Cash and cash equivalents	$	1,369	$	1,369	$	214	$	214
Investments		458		459		1,407		1,408
Funds held for customers		382		383		336		337
Long-term investments		81		81		91		91
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

Cash and cash equivalents, investments and funds held for customers by investment category

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Type of issue:
Total cash and cash equivalents	$	1,577	$	1,577	$	401	$	401
Available-for-sale debt securities:
Municipal bonds		357		357		1,049		1,050
Municipal auction rate securities		77		77		87		87
Corporate notes		199		200		333		334
U.S. agency securities		76		77		174		174
Total available-for-sale debt securities		709		711		1,643		1,645
Other long-term investments		4		4		4		4
Total cash and cash equivalents, investments and funds held for customers	$	2,290	$	2,292	$	2,048	$	2,050

Available-for-sale debt securities classified by the stated maturity date of the security

	April 30, 2011				July 31, 2010
	Amortized				Amortized
(In millions)	Cost		Fair Value		Cost		Fair Value
Due within one year	$	283	$	283	$	432	$	433
Due within two years		182		183		365		366
Due within three years		109		110		164		164
Due after three years		135		135		682		682
Total available-for-sale debt securities	$	709	$	711	$	1,643	$	1,645

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Fair Value Measurements (Details 2) (USD $) In Millions	9 Months Ended
	Apr. 30, 2011	Jul. 31, 2010
Reconciliation of activity for Level 3 assets
Beginning balance	$ 87
Settlements at par	(10)
Ending balance	77
Fair Value Measurements (Textuals)
Carrying value of senior notes	$ 998	$ 998

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Condensed Consolidated Statements of Cash Flows (Unaudited) (USD $) In Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011	Apr. 30, 2010
Cash flows from operating activities:
Net income	$ 688	$ 576	$ 691	$ 622
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	42	36	120	111
Amortization of acquired intangible assets	19	19	58	87
Share-based compensation expense	39	34	112	99
Pre-tax gain on sale of discontinued operations				(58)
Deferred income taxes	9	(39)	25	(61)
Tax benefit from share-based compensation plans	20	13	68	23
Excess tax benefit from share-based compensation plans	(18)	(6)	(59)	(11)
Other	3	5	14	15
Total adjustments	114	62	338	205
Changes in operating assets and liabilities:
Accounts receivable	215	264	(130)	(67)
Prepaid expenses, income taxes receivable and other assets	132	48	17	43
Accounts payable	(4)	7	42	63
Accrued compensation and related liabilities	53	51	(6)	13
Deferred revenue	(226)	(201)	(41)	(45)
Income taxes payable	208	280	195	282
Other liabilities	(42)	(43)	79	33
Total changes in operating assets and liabilities	336	406	156	322
Net cash provided by operating activities	1,138	1,044	1,185	1,149
Cash flows from investing activities:
Purchases of available-for-sale debt securities	(80)	(1,169)	(803)	(1,719)
Sales of available-for-sale debt securities	55	205	1,470	623
Maturities of available-for-sale debt securities	33	69	254	112
Net change in money market funds and other cash equivalents held to satisfy customer fund obligations	(46)	39	(20)	146
Net change in customer fund deposits	46	(38)	46	3
Purchases of property and equipment	(31)	(34)	(166)	(100)
Acquisitions of intangible assets		(3)	(3)	(3)
Acquisitions of businesses, net of cash acquired				(141)
Proceeds from divestiture of businesses				122
Other	(1)	(3)	2	(9)
Net cash provided by (used in) investing activities	(24)	(934)	780	(966)
Cash flows from financing activities:
Net proceeds from issuance of common stock under stock plans	70	176	288	326
Tax payments related to issuance of restricted stock units	(22)		(53)	(20)
Purchases of treasury stock	(250)	(200)	(1,110)	(750)
Excess tax benefit from share-based compensation plans	18	6	59	11
Other		(1)		(2)
Net cash used in financing activities	(184)	(19)	(816)	(435)
Effect of exchange rates on cash and cash equivalents	6	2	6	3
Net increase (decrease) in cash and cash equivalents	936	93	1,155	(249)
Cash and cash equivalents at beginning of period	433	337	214	679
Cash and cash equivalents at end of period	$ 1,369	$ 430	$ 1,369	$ 430

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Current Liabilities (Tables)

9 Months Ended

Apr. 30, 2011

Current Liabilities [Abstract]

Other current liabilities

	April 30,		July 31,
(In millions)	2011		2010
Reserve for product returns	$	57	$	20
Reserve for rebates		48		11
Current portion of license fee payable		10		10
Current portion of deferred rent		7		7
Interest payable		7		21
Executive deferred compensation plan liabilities		54		43
Other		35		22
Total other current liabilities	$	218	$	134

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Stockholders' Equity (Tables)

9 Months Ended

Apr. 30, 2011

Stockholders' Equity [Abstract]

Total share-based compensation expense

	Three Months Ended						Nine Months Ended
	April 30,			April 30,			April 30,			April 30,
(In millions, except per share amounts)	2011			2010			2011			2010
Cost of revenue	$	2		$	2		$	5		$	7
Selling and marketing		12			11			33			30
Research and development		13			10			38			30
General and administrative		12			11			36			31
Discontinued operations		—			—			—			1
Total share-based compensation expense		39			34			112			99
Income tax benefit		(14	)		(12	)		(39	)		(35	)
Decrease in net income	$	25		$	22		$	73		$	64
Decrease in net income per share:
Basic	$	0.08		$	0.07		$	0.24		$	0.20
Diluted	$	0.08		$	0.07		$	0.23		$	0.20

Activity under all share-based compensation plans

				Options Outstanding
							Weighted
							Average
	Shares						Exercise
	Available			Number			Price
(Shares in thousands)	for Grant			of Shares			Per Share
Balance at July 31, 2010		8,761			32,593		$	28.45
Additional shares authorized		31,000			—			—
Options granted		(772	)		772			47.22
Restricted stock units granted (2)		(982	)		—			—
Options exercised		—			(10,361	)		25.68
Options canceled or expired (1)		749			(787	)		31.08
Restricted stock units forfeited (1)(2)		1,217			—			—
Balance at April 30, 2011		39,973			22,217		$	30.30
Exercisable at April 30, 2011					13,342		$	27.36

(1)	Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
(2)	Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.

Summary of restricted stock unit activity

	Restricted Stock Units
				Weighted
				Average
	Number			Grant Date
(Shares in thousands)	of Shares			Fair Value
Nonvested at July 31, 2010		11,531		$	30.93
Granted		585			42.34
Vested		(3,379	)		26.21
Forfeited		(692	)		31.23
Nonvested at April 30, 2011		8,045		$	33.71

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Fair Value Measurements

9 Months Ended

Apr. 30, 2011

Fair Value Measurements [Abstract]

Fair Value Measurements

2. Fair Value Measurements

The authoritative guidance defines fair value as the price that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants on the measurement date. When determining fair value, we consider the principal or most advantageous market for an asset or liability and assumptions that market participants would use when pricing the asset or liability. In addition, we consider and use all valuation methods that are appropriate in estimating the fair value of an asset or liability.

The authoritative guidance establishes a fair value hierarchy that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. In general, the authoritative guidance requires us to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset or liability’s categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the measurement of its fair value. The three levels of input defined by the authoritative guidance are as follows:

• Level 1 uses unadjusted quoted prices that are available in active markets for identical assets or liabilities.

• Level 2 uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices in active markets for similar assets or liabilities; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data for substantially the full term of the assets or liabilities.

• Level 3 uses one or more significant inputs that are supported by little or no market activity and that are significant to the determination of fair value. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques and significant management judgment or estimation.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table summarizes financial assets and financial liabilities that we measured at fair value on a recurring basis at the dates indicated, classified in accordance with the fair value hierarchy described above.

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents, primarily money market funds	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
Municipal bonds		—		357		—		357		—		1,050		—		1,050
Municipal auction rate securities		—		—		77		77		—		—		87		87
Corporate notes		—		200		—		200		—		334		—		334
U.S. agency securities		—		77		—		77		—		174		—		174
Total available-for-sale debt securities		—		634		77		711		—		1,558		87		1,645
Total assets measured at fair value on a recurring basis	$	1,447	$	634	$	77	$	2,158	$	330	$	1,558	$	87	$	1,975
Liabilities:
Senior notes (1)	$	—	$	1,075	$	—	$	1,075	$	—	$	1,086	$	—	$	1,086

(1) Carrying value on our balance sheets at April 30, 2011 and July 31, 2010 was $998 million. See Note 8.

The following table summarizes our cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy at the dates indicated.

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
In cash and cash equivalents	$	1,239	$	—	$	—	$	1,239	$	143	$	—	$	—	$	143
In funds held for customers		208		—		—		208		187		—		—		187
Total cash equivalents	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
In investments	$	—	$	459	$	—	$	459	$	—	$	1,408	$	—	$	1,408
In funds held for customers		—		175		—		175		—		150		—		150
In long-term investments		—		—		77		77		—		—		87		87
Total available-for-sale debt securities	$	—	$	634	$	77	$	711	$	—	$	1,558	$	87	$	1,645

We value our Level 1 assets, consisting primarily of money market funds, using quoted prices in active markets for identical instruments. Financial assets whose fair values we measure on a recurring basis using Level 2 inputs consist of municipal bonds, corporate notes and U.S. agency securities. We measure the fair values of these assets using quoted prices in active markets for similar instruments. Financial liabilities whose fair values we measure using Level 2 inputs consist of debt. See Note 8. We measure the fair value of our senior notes based on their trading prices and the interest rates we could obtain for other borrowings with similar terms. Financial assets whose fair values we measure using significant unobservable (Level 3) inputs consist of municipal auction rate securities that are no longer liquid. These securities are included in long-term investments on our balance sheets at April 30, 2011 and July 31, 2010 based on the maturities of the underlying securities. There were no significant transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the nine months ended April 30, 2011.

The following table presents a reconciliation of activity for our Level 3 assets for the nine months ended April 30, 2011.

	Nine Months Ended
	April 30,
(In millions)	2011
Beginning balance	$	87
Settlements at par		(10	)
Ending balance	$	77

We estimated the fair values of these municipal auction rate securities at April 30, 2011 and July 31, 2010 using a discounted cash flow model that we prepared. Using our discounted cash flow model we determined that the fair values of the municipal auction rate securities we held at April 30, 2011 were approximately equal to their par values. As a result, we recorded no decrease in the fair values of those securities for the nine months then ended. We do not intend to sell our municipal auction rate securities and it is not more likely than not that we will be required to sell them before recovery at par, which may be at maturity. Based on our expected operating cash flows and our other sources of cash, we do not believe that the reduction in liquidity of our municipal auction rate securities will have a material impact on our overall ability to meet our liquidity needs.

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Litigation

9 Months Ended

Apr. 30, 2011

Litigation [Abstract]

Litigation

11. Litigation

Intuit is subject to certain routine legal proceedings, as well as demands, claims and threatened litigation, that arise in the normal course of our business, including assertions that we may be infringing patents or other intellectual property rights of others. We currently believe that the ultimate amount of liability, if any, for any pending claims of any type (either alone or combined) will not materially affect our financial position, results of operations or cash flows. The ultimate outcome of any litigation is uncertain and, regardless of outcome, litigation can have an adverse impact on Intuit because of defense costs, negative publicity, diversion of management resources and other factors. Our failure to obtain necessary license or other rights, or litigation arising out of intellectual property claims, could adversely affect our business.

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Long-Term Obligations (Details) (USD $) In Millions, unless otherwise specified	9 Months Ended				3 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Jul. 31, 2010	Mar. 12, 2007	Apr. 30, 2011 5.40% fixed-rate notes, due 2012 [Member]	Mar. 12, 2007 5.40% fixed-rate notes, due 2012 [Member]	Mar. 12, 2007 5.75% fixed-rate notes, due 2017 [Member]
Long Term Obligations (Textuals)
Senior notes				$ 1,000		$ 500	$ 500
Period for contractual maturities of senior notes					within 1 year
Unamortized discounts on senior notes	2		2
Senior notes, rate						5.40%	5.75%
Cash paid for interest on the Notes	56	56
Other long-term obligations
Total license fee payable	69		65
Total deferred rent	53		60
Long-term deferred revenue	39		29
Long-term income tax liabilities	40		20
Long-term payables	19		0
Other	2		3
Total long-term obligations	222		177
Less current portion (included in other current liabilities)	(18)		(19)
Long-term obligations due after one year	$ 204		$ 158

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Fair Value Measurements (Tables)

9 Months Ended

Apr. 30, 2011

Fair Value Measurements [Abstract]

Financial assets and liabilities measured at fair value on recurring basis

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Assets:
Cash equivalents, primarily money market funds	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
Municipal bonds		—		357		—		357		—		1,050		—		1,050
Municipal auction rate securities		—		—		77		77		—		—		87		87
Corporate notes		—		200		—		200		—		334		—		334
U.S. agency securities		—		77		—		77		—		174		—		174
Total available-for-sale debt securities		—		634		77		711		—		1,558		87		1,645
Total assets measured at fair value on a recurring basis	$	1,447	$	634	$	77	$	2,158	$	330	$	1,558	$	87	$	1,975
Liabilities:
Senior notes (1)	$	—	$	1,075	$	—	$	1,075	$	—	$	1,086	$	—	$	1,086

(1) Carrying value on our balance sheets at April 30, 2011 and July 31, 2010 was $998 million. See Note 8.

Cash equivalents and available-for-sale debt securities by balance sheet classification and level in the fair value hierarchy

	April 30, 2011								July 31, 2010
							Total								Total
(In millions)	Level 1		Level 2		Level 3		Fair Value		Level 1		Level 2		Level 3		Fair Value
Cash equivalents:
In cash and cash equivalents	$	1,239	$	—	$	—	$	1,239	$	143	$	—	$	—	$	143
In funds held for customers		208		—		—		208		187		—		—		187
Total cash equivalents	$	1,447	$	—	$	—	$	1,447	$	330	$	—	$	—	$	330
Available-for-sale debt securities:
In investments	$	—	$	459	$	—	$	459	$	—	$	1,408	$	—	$	1,408
In funds held for customers		—		175		—		175		—		150		—		150
In long-term investments		—		—		77		77		—		—		87		87
Total available-for-sale debt securities	$	—	$	634	$	77	$	711	$	—	$	1,558	$	87	$	1,645

Reconciliation of activity for Level 3 assets

	Nine Months Ended
	April 30,
(In millions)	2011
Beginning balance	$	87
Settlements at par		(10	)
Ending balance	$	77

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Condensed Consolidated Statements of Operations (Unaudited) (USD $) In Millions, except Per Share data	3 Months Ended		9 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011	Apr. 30, 2010
Net revenue:
Product	$ 602	$ 564	$ 1,248	$ 1,191
Service and other	1,246	1,043	2,010	1,727
Total net revenue	1,848	1,607	3,258	2,918
Cost of revenue:
Cost of product revenue	32	34	110	117
Cost of service and other revenue	132	118	384	341
Amortization of acquired technology	4	5	13	43
Selling and marketing	351	309	901	766
Research and development	164	141	478	426
General and administrative	93	102	271	267
Amortization of other acquired intangible assets	11	10	33	31
Total costs and expenses	787	719	2,190	1,991
Operating income from continuing operations	1,061	888	1,068	927
Interest expense	(15)	(15)	(45)	(46)
Interest and other income, net	6	5	20	12
Income from continuing operations before income taxes	1,052	878	1,043	893
Income tax provision	364	302	352	306
Net income from continuing operations	688	576	691	587
Net income from discontinued operations				35
Net income	$ 688	$ 576	$ 691	$ 622
Basic net income per share from continuing operations	$ 2.27	$ 1.83	$ 2.23	$ 1.86
Basic net income per share from discontinued operations				$ 0.11
Basic net income per share	$ 2.27	$ 1.83	$ 2.23	$ 1.97
Shares used in basic per share calculations	303	314	309	316
Diluted net income per share from continuing operations	$ 2.20	$ 1.78	$ 2.16	$ 1.80
Diluted net income per share from discontinued operations				$ 0.11
Diluted net income per share	$ 2.20	$ 1.78	$ 2.16	$ 1.91
Shares used in diluted per share calculations	313	323	319	325

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Stockholders' Equity (Details) (USD $) In Millions, except Share data in Thousands, unless otherwise specified	1 Months Ended	3 Months Ended		9 Months Ended			3 Months Ended		9 Months Ended		1 Months Ended		9 Months Ended
	Apr. 30, 2011	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011		Apr. 30, 2010	Apr. 30, 2011 Share Based Compensation Expense [Member]	Apr. 30, 2010 Share Based Compensation Expense [Member]	Apr. 30, 2011 Share Based Compensation Expense [Member]	Apr. 30, 2010 Share Based Compensation Expense [Member]	Feb. 28, 2011 Stock Options [Member]	Jan. 31, 2011 Stock Options [Member]	Apr. 30, 2011 Stock Options [Member]	Apr. 30, 2011 Restricted Stock [Member]
Total share-based compensation expense
Cost of product revenue		$ 32	$ 34	$ 110		$ 117	$ 2	$ 2	$ 5	$ 7
Selling and marketing		351	309	901		766	12	11	33	30
Research and development		164	141	478		426	13	10	38	30
General and administrative		93	102	271		267	12	11	36	31
Discontinued operations										1
Total share-based compensation expense		39	34	112		99	39	34	112	99
Income tax benefit		364	302	352		306	(14)	(12)	(39)	(35)
Decrease in net income							25	22	73	64
Decrease in net income per share:
Basic							$ 0.08	$ 0.07	$ 0.24	$ 0.2
Diluted							$ 0.08	$ 0.07	$ 0.23	$ 0.2
Stockholders' Equity (Textuals)
Common stock repurchased, share	700	4,900		23,300		24,600					4,200
Common stock repurchased, value				1,110		750						250
Additional stock available for repurchase	890	890		890
Accelerated Share Repurchases, Initial Price Paid Per Share		$ 51.12
Authorization from Board of Directors for additional stock repurchase, due date				Aug. 16, 2013
Unrecognized compensation cost related to non-vested share based compensation expense													$ 62	$ 142
Expected weighted average vesting period to recognize compensation cost related to share based compensation expense, in years													1.9	2.0
Terms of 2005 equity incentive plan as amended				Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.
Activity under all share-based compensation plans
Shares available for grant, Beginning Balance				8,761
Number of shares, Balance at July 31, 2010				32,593
Weighted average exercise price per share, Balance at July 31, 2010				$ 28.45
Additional shares authorized, shares available for grant	31,000	31,000		31,000
Options granted, shares available for grant				(772)
Options granted, number of shares				772
Options granted, weighted average exercise price per share	$ 47.22	$ 47.22		$ 47.22
Restricted stock units granted, shares available for grant				(982)	[1]
Options exercised, number of shares				(10,361)
Options exercised, weighted average exercise price per share	$ 25.68	$ 25.68		$ 25.68
Options canceled or expired, shares available for grant				749	[2]
Options canceled or expired, number of shares				(787)	[2]
Options canceled or expired, weighted average exercise price per share				$ 31.08	[2]
Restricted stock units forfeited, shares available for grant				1,217	[1],[2]
Shares available for grant, Ending Balance	39,973	39,973		39,973
Number of shares, Balance at April 30, 2011	22,217	22,217		22,217
Weighted average exercise price per share, Balance at April 30, 2011	$ 30.3	$ 30.3		$ 30.3
Exercisable at April 30, 2011	13,342	13,342		13,342
Weighted average exercise price per share, Exercisable at April 30, 2011	$ 27.36	$ 27.36		$ 27.36
Summary of restricted stock unit activity
Nonvested, Number of shares, Beginning of period at July 31, 2010				11,531
Nonvested, Weighted Average Grant Date Fair Value, Beginning of period at July 31, 2010				$ 30.93
Granted, Number of shares				585
Granted, Weighted Average Grant Date Fair Value				$ 42.34
Vested, Number of Shares				(3,379)
Vested, Weighted Average Grant Date Fair Value				$ 26.21
Forfeited, Number of Shares				(692)
Forfeited, Weighted Average Grant Date Fair Value	$ 31.23	$ 31.23		$ 31.23
Nonvested, Number of shares, End of period at April 30, 2011	8,045	8,045		8,045
Nonvested, Weighted Average Grant Date Fair Value, End of period at April 30, 2011	$ 33.71	$ 33.71		$ 33.71

[1] Under the terms of our 2005 Equity Incentive Plan as amended on January 19, 2011, RSUs granted from the pool of shares available for grant on or after November 1, 2010 reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.

[2] Stock options and restricted stock units canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Stock options and restricted stock units canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.

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Segment Information (Details) (USD $)	3 Months Ended		9 Months Ended
	Apr. 30, 2011	Apr. 30, 2010	Apr. 30, 2011	Apr. 30, 2010
Financial results by reportable segment
Total net revenue	$ 1,848,000,000	$ 1,607,000,000	$ 3,258,000,000	$ 2,918,000,000
Total operating income from continuing operations	1,061,000,000	888,000,000	1,068,000,000	927,000,000
Unallocated corporate items:
Share-based compensation expense	(39,000,000)	(34,000,000)	(112,000,000)	(98,000,000)
Other common expenses	(138,000,000)	(122,000,000)	(403,000,000)	(357,000,000)
Amortization of acquired technology	(4,000,000)	(5,000,000)	(13,000,000)	(43,000,000)
Amortization of other acquired intangible assets	(11,000,000)	(10,000,000)	(33,000,000)	(31,000,000)
Total unallocated corporate items	(192,000,000)	(171,000,000)	(561,000,000)	(529,000,000)
Segment Information (Textuals)
Portion of international net revenue to consolidated net revenue	less than 5%	less than 5%	less than 5%	less than 5%
Financial Management Solutions [Member]
Financial results by reportable segment
Net revenue	183,000,000	164,000,000	524,000,000	452,000,000
Total operating income from continuing operations	61,000,000	44,000,000	154,000,000	106,000,000
Employee Management Solutions [Member]
Financial results by reportable segment
Net revenue	115,000,000	103,000,000	338,000,000	305,000,000
Total operating income from continuing operations	70,000,000	63,000,000	197,000,000	180,000,000
Payment Solutions [Member]
Financial results by reportable segment
Net revenue	93,000,000	79,000,000	258,000,000	233,000,000
Total operating income from continuing operations	20,000,000	15,000,000	44,000,000	50,000,000
Consumer Tax [Member]
Financial results by reportable segment
Net revenue	1,036,000,000	880,000,000	1,270,000,000	1,120,000,000
Total operating income from continuing operations	853,000,000	714,000,000	877,000,000	771,000,000
Accounting Professionals [Member]
Financial results by reportable segment
Net revenue	225,000,000	205,000,000	372,000,000	351,000,000
Total operating income from continuing operations	187,000,000	167,000,000	241,000,000	229,000,000
Financial Services [Member]
Financial results by reportable segment
Net revenue	89,000,000	85,000,000	254,000,000	247,000,000
Total operating income from continuing operations	20,000,000	18,000,000	57,000,000	57,000,000
Other Businesses [Member]
Financial results by reportable segment
Net revenue	107,000,000	91,000,000	242,000,000	210,000,000
Total operating income from continuing operations	42,000,000	38,000,000	59,000,000	63,000,000
Reportable Segments [Member]
Financial results by reportable segment
Total operating income from continuing operations	$ 1,253,000,000	$ 1,059,000,000	$ 1,629,000,000	$ 1,456,000,000