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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Intuit Inc | NASDAQ:INTU | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
15.23 | 2.48% | 629.27 | 628.64 | 640.47 | 631.39 | 622.15 | 623.78 | 1,109,514 | 01:00:00 |
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þ
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Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the quarterly period ended October 31, 2017
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o
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Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
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For the transition period from ____________ to ____________ .
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Delaware
(State of incorporation)
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77-0034661
(IRS employer identification no.)
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2700 Coast Avenue, Mountain View, CA 94043
(Address of principal executive offices)
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(650) 944-6000
(Registrant’s telephone number, including area code)
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Large accelerated
filer
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þ
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Accelerated filer
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o
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Non-accelerated filer
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Smaller reporting
company
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o
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Emerging growth
company
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o
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(Do not check if a smaller reporting company)
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INTUIT INC.
FORM 10-Q
INDEX
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Page
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EX-10.01
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EX-10.02
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EX-10.03
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EX-10.04
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EX-31.01
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EX-31.02
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EX-32.01
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EX-32.02
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EX-101.INS XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
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EX-101.SCH XBRL Taxonomy Extension Schema
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EX-101.CAL XBRL Taxonomy Extension Calculation Linkbase
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EX-101.LAB XBRL Taxonomy Extension Label Linkbase
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EX-101.PRE XBRL Taxonomy Extension Presentation Linkbase
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EX-101.DEF XBRL Taxonomy Extension Definition Linkbase
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Intuit Q1 Fiscal 2018 Form 10-Q
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2
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•
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our expectations and beliefs regarding future conduct and growth of the business;
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•
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our beliefs and expectations regarding seasonality, competition and other trends that affect our business;
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•
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our expectation that we will solve problems faster and more efficiently for our growing base of customers by moving to more open platforms with application programming interfaces that enable the contributions of end users and third-party developers;
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•
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our expectation that we will continue to invest significant resources in our product development, marketing and sales capabilities;
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•
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our expectation that we will continue to invest significant management attention and resources in our information technology infrastructure and in our privacy and security capabilities;
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•
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our expectation that we will work with the broader industry and government to protect our customers from fraud;
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•
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our expectation that we will be able to protect our customers’ data and prevent third parties from using stolen customer information to perpetrate fraud in our tax and other offerings;
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•
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our expectation that we will generate significant cash from operations;
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•
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our expectation that connected services revenue as a percentage of our total revenue will continue to grow;
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•
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our expectations regarding the development of future products, services, business models and technology platforms and our research and development efforts;
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•
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our assumptions underlying our critical accounting policies and estimates, including our estimates regarding promotional and return reserves; the collectability of accounts receivable; 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;
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•
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our plans with respect to the adoption of Topic 606, including the adoption timing and methodology, as well our expectations and beliefs with respect to its impact on our revenue growth rates and on the timing of our quarterly revenue recognition;
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•
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our intention not to sell our investments and our belief that it is more likely than not that we will not be required to sell them before recovery at par;
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•
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our belief that the investments we hold are not other-than-temporarily impaired;
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•
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our belief that we take prudent measures to mitigate investment related risks;
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•
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our belief that our exposure to currency exchange fluctuation risk will not be significant in the future;
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•
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our assessments and estimates that determine our effective tax rate;
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•
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our belief that it is not 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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•
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our intent to permanently reinvest a significant portion of our earnings from foreign operations, and our belief that we will not need funds generated from foreign operations to fund our domestic operations;
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•
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our belief that our cash and cash equivalents, investments and cash generated from operations will be sufficient to meet our seasonal working capital needs, capital expenditure requirements, contractual obligations, debt service requirements and other liquidity requirements associated with our operations for at least the next 12 months;
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•
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our expectation that we will return excess cash generated by operations to our stockholders through repurchases of our common stock and the payment of cash dividends;
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•
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our belief that the credit facility will be available to us should we choose to borrow under it; and
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•
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our assessments and beliefs regarding the future outcome of pending legal proceedings and inquiries by regulatory authorities, the liability, if any, that Intuit may incur as a result of those proceedings and inquiries, and the impact of any potential losses associated with such proceedings or inquiries on our financial statements.
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Intuit Q1 Fiscal 2018 Form 10-Q
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3
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PART I - FINANCIAL INFORMATION
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ITEM 1 - FINANCIAL STATEMENTS
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INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|||||||
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||||||
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Three Months Ended
|
||||||
(In millions, except per share amounts)
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October 31,
2017 |
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October 31,
2016 |
||||
Net revenue:
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||||
Product
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$
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319
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$
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297
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Service and other
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567
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481
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Total net revenue
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886
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778
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Costs and expenses:
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||||
Cost of revenue:
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||||
Cost of product revenue
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24
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29
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Cost of service and other revenue
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170
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151
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Amortization of acquired technology
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2
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3
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Selling and marketing
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308
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283
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Research and development
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293
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246
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General and administrative
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145
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126
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Amortization of other acquired intangible assets
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1
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1
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Total costs and expenses
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943
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839
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Operating loss
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(57
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)
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(61
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)
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Interest expense
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(5
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)
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(9
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)
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Interest and other income (expense), net
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3
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(2
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)
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Loss before income taxes
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(59
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)
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(72
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)
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Income tax benefit
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(42
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)
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(42
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)
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Net loss
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$
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(17
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)
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$
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(30
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)
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||||
Basic net loss per share
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$
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(0.07
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)
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$
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(0.12
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)
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Shares used in basic per share calculations
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256
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258
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||||
Diluted net loss per share
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$
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(0.07
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)
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$
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(0.12
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)
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Shares used in diluted per share calculations
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256
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258
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||||
Cash dividends declared per common share
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$
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0.39
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$
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0.34
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Intuit Q1 Fiscal 2018 Form 10-Q
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4
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INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(unaudited)
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|||||||
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||||||
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Three Months Ended
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||||||
(In millions)
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October 31,
2017 |
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October 31,
2016 |
||||
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Net loss
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$
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(17
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$
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(30
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)
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Other comprehensive income (loss), net of income taxes:
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||||
Unrealized losses on available-for-sale debt securities
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—
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(1
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)
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Foreign currency translation losses
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(6
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)
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(4
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)
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Total other comprehensive loss, net
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(6
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)
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(5
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)
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Comprehensive loss
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$
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(23
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)
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$
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(35
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)
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Intuit Q1 Fiscal 2018 Form 10-Q
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5
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INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
|
|||||||
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||||
(In millions)
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October 31,
2017 |
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July 31,
2017 |
||||
ASSETS
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||||
Current assets:
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||||
Cash and cash equivalents
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$
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529
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$
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529
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Investments
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248
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248
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Accounts receivable, net
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116
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103
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||
Income taxes receivable
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61
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63
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||
Prepaid expenses and other current assets
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142
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100
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||
Current assets before funds held for customers
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1,096
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1,043
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||
Funds held for customers
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319
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|
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372
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|
||
Total current assets
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1,415
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1,415
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||
Long-term investments
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31
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31
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||
Property and equipment, net
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1,016
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1,030
|
|
||
Goodwill
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1,294
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1,295
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|
||
Acquired intangible assets, net
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18
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|
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22
|
|
||
Long-term deferred income taxes
|
144
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|
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132
|
|
||
Other assets
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146
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|
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143
|
|
||
Total assets
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$
|
4,064
|
|
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$
|
4,068
|
|
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|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
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450
|
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$
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50
|
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Accounts payable
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220
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|
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157
|
|
||
Accrued compensation and related liabilities
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146
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300
|
|
||
Deferred revenue
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799
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887
|
|
||
Other current liabilities
|
183
|
|
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178
|
|
||
Current liabilities before customer fund deposits
|
1,798
|
|
|
1,572
|
|
||
Customer fund deposits
|
319
|
|
|
372
|
|
||
Total current liabilities
|
2,117
|
|
|
1,944
|
|
||
Long-term debt
|
425
|
|
|
438
|
|
||
Long-term deferred revenue
|
191
|
|
|
202
|
|
||
Other long-term obligations
|
128
|
|
|
130
|
|
||
Total liabilities
|
2,861
|
|
|
2,714
|
|
||
Commitments and contingencies
|
|
|
|
||||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock
|
—
|
|
|
—
|
|
||
Common stock and additional paid-in capital
|
4,999
|
|
|
4,857
|
|
||
Treasury stock, at cost
|
(10,948
|
)
|
|
(10,778
|
)
|
||
Accumulated other comprehensive loss
|
(28
|
)
|
|
(22
|
)
|
||
Retained earnings
|
7,180
|
|
|
7,297
|
|
||
Total stockholders’ equity
|
1,203
|
|
|
1,354
|
|
||
Total liabilities and stockholders’ equity
|
$
|
4,064
|
|
|
$
|
4,068
|
|
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Intuit Q1 Fiscal 2018 Form 10-Q
|
6
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|
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
(unaudited)
|
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
(In millions, except shares in thousands)
|
Shares of
Common
Stock
|
|
Common
Stock and
Additional
Paid-In
Capital
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Stockholders'
Equity
|
|||||||||||
Balance at July 31, 2017
|
255,668
|
|
|
$
|
4,857
|
|
|
$
|
(10,778
|
)
|
|
$
|
(22
|
)
|
|
$
|
7,297
|
|
|
$
|
1,354
|
|
Comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(6
|
)
|
|
(17
|
)
|
|
(23
|
)
|
|||||
Issuance of stock under employee stock plans, net of shares withheld for employee taxes
|
1,224
|
|
|
44
|
|
|
|
|
|
—
|
|
|
—
|
|
|
44
|
|
|||||
Stock repurchases under stock repurchase programs
|
(1,225
|
)
|
|
—
|
|
|
(170
|
)
|
|
—
|
|
|
—
|
|
|
(170
|
)
|
|||||
Dividends and dividend rights declared ($0.39 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(100
|
)
|
|
(100
|
)
|
|||||
Share-based compensation expense
|
—
|
|
|
98
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
98
|
|
|||||
Balance at October 31, 2017
|
255,667
|
|
|
$
|
4,999
|
|
|
$
|
(10,948
|
)
|
|
$
|
(28
|
)
|
|
$
|
7,180
|
|
|
$
|
1,203
|
|
(In millions, except shares in thousands)
|
Shares of
Common
Stock
|
|
Common
Stock and
Additional
Paid-In
Capital
|
|
Treasury
Stock
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained
Earnings
|
|
Total
Stockholders'
Equity
|
|||||||||||
Balance at July 31, 2016
|
257,853
|
|
|
$
|
4,445
|
|
|
$
|
(9,939
|
)
|
|
$
|
(32
|
)
|
|
$
|
6,687
|
|
|
$
|
1,161
|
|
Comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
|
(30
|
)
|
|
(35
|
)
|
|||||
Issuance of stock under employee stock plans, net of shares withheld for employee taxes
|
975
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2
|
)
|
|||||
Stock repurchases under stock repurchase programs
|
(1,760
|
)
|
|
—
|
|
|
(192
|
)
|
|
—
|
|
|
—
|
|
|
(192
|
)
|
|||||
Dividends and dividend rights declared ($0.34 per share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(89
|
)
|
|
(89
|
)
|
|||||
Cumulative effect of change in
accounting principle |
—
|
|
|
6
|
|
|
—
|
|
|
—
|
|
|
(4
|
)
|
|
2
|
|
|||||
Share-based compensation expense
|
—
|
|
|
91
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
91
|
|
|||||
Balance at October 31, 2016
|
257,068
|
|
|
$
|
4,540
|
|
|
$
|
(10,131
|
)
|
|
$
|
(37
|
)
|
|
$
|
6,564
|
|
|
$
|
936
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
7
|
|
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
|
|||||||
|
|
|
|
||||
|
Three Months Ended
|
||||||
(In millions)
|
October 31,
2017 |
|
October 31,
2016 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net loss
|
$
|
(17
|
)
|
|
$
|
(30
|
)
|
Adjustments to reconcile net loss to net cash used in operating activities:
|
|
|
|
||||
Depreciation
|
60
|
|
|
49
|
|
||
Amortization of acquired intangible assets
|
5
|
|
|
6
|
|
||
Share-based compensation expense
|
97
|
|
|
89
|
|
||
Deferred income taxes
|
(11
|
)
|
|
(9
|
)
|
||
Other
|
2
|
|
|
1
|
|
||
Total adjustments
|
153
|
|
|
136
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
(14
|
)
|
|
(14
|
)
|
||
Income taxes receivable
|
2
|
|
|
(38
|
)
|
||
Prepaid expenses and other assets
|
(25
|
)
|
|
(50
|
)
|
||
Accounts payable
|
61
|
|
|
(2
|
)
|
||
Accrued compensation and related liabilities
|
(147
|
)
|
|
(148
|
)
|
||
Deferred revenue
|
(99
|
)
|
|
(67
|
)
|
||
Other liabilities
|
8
|
|
|
8
|
|
||
Total changes in operating assets and liabilities
|
(214
|
)
|
|
(311
|
)
|
||
Net cash used in operating activities
|
(78
|
)
|
|
(205
|
)
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of corporate and customer fund investments
|
(86
|
)
|
|
(125
|
)
|
||
Sales of corporate and customer fund investments
|
38
|
|
|
298
|
|
||
Maturities of corporate and customer fund investments
|
46
|
|
|
22
|
|
||
Net change in cash and cash equivalents held to satisfy customer fund obligations
|
53
|
|
|
(22
|
)
|
||
Net change in customer fund deposits
|
(53
|
)
|
|
22
|
|
||
Purchases of property and equipment
|
(50
|
)
|
|
(86
|
)
|
||
Other
|
(23
|
)
|
|
(11
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)
|
||
Net cash provided by (used in) investing activities
|
(75
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)
|
|
98
|
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from borrowings under revolving credit facility
|
400
|
|
|
100
|
|
||
Repayment of debt
|
(13
|
)
|
|
—
|
|
||
Proceeds from issuance of stock under employee stock plans
|
83
|
|
|
43
|
|
||
Payments for employee taxes withheld upon vesting of restricted stock units
|
(39
|
)
|
|
(45
|
)
|
||
Cash paid for purchases of treasury stock
|
(168
|
)
|
|
(175
|
)
|
||
Dividends and dividend rights paid
|
(105
|
)
|
|
(89
|
)
|
||
Net cash provided by (used in) financing activities
|
158
|
|
|
(166
|
)
|
||
Effect of exchange rates on cash and cash equivalents
|
(5
|
)
|
|
(5
|
)
|
||
Net decrease in cash and cash equivalents
|
—
|
|
|
(278
|
)
|
||
Cash and cash equivalents at beginning of period
|
529
|
|
|
638
|
|
||
Cash and cash equivalents at end of period
|
$
|
529
|
|
|
$
|
360
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
8
|
|
1. Description of Business and Summary of Significant Accounting Policies
|
Description of Business
|
Basis of Presentation
|
Seasonality
|
Significant Accounting Policies
|
Use of Estimates
|
Computation of Net Income (Loss) Per Share
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
9
|
|
|
Three Months Ended
|
||||||
(In millions, except per share amounts)
|
October 31,
2017 |
|
October 31,
2016 |
||||
Numerator:
|
|
|
|
||||
Net loss
|
$
|
(17
|
)
|
|
$
|
(30
|
)
|
|
|
|
|
||||
Denominator:
|
|
|
|
||||
Shares used in basic per share amounts:
|
|
|
|
||||
Weighted average common shares outstanding
|
256
|
|
|
258
|
|
||
|
|
|
|
||||
Shares used in diluted per share amounts:
|
|
|
|
||||
Weighted average common shares outstanding
|
256
|
|
|
258
|
|
||
Dilutive common equivalent shares from stock options
|
|
|
|
||||
and restricted stock awards
|
—
|
|
|
—
|
|
||
Dilutive weighted average common shares outstanding
|
256
|
|
|
258
|
|
||
|
|
|
|
||||
Basic and diluted net loss per share:
|
|
|
|
||||
Basic net loss per share
|
$
|
(0.07
|
)
|
|
$
|
(0.12
|
)
|
|
|
|
|
||||
Diluted net loss per share
|
$
|
(0.07
|
)
|
|
$
|
(0.12
|
)
|
|
|
|
|
||||
Shares excluded from computation of diluted net loss per share:
|
|
|
|
||||
Weighted average stock options and restricted stock units that would have been included in the computation of dilutive common equivalent shares outstanding if net income had been reported in the period
|
12
|
|
|
12
|
|
||
|
|
|
|
||||
Weighted average stock options and restricted stock units that would have been excluded from the computation of dilutive common equivalent shares outstanding if net income had been reported in the period due to their anti-dilutive effect
|
2
|
|
|
4
|
|
Concentration of Credit Risk and Significant Customers
|
Accounting Standards Not Yet Adopted
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
10
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
11
|
|
2. Fair Value Measurements
|
Fair Value Hierarchy
|
•
|
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 unobservable 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 values 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
|
|
October 31, 2017
|
|
July 31, 2017
|
||||||||||||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||||||||||
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Cash equivalents, primarily time deposits
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Municipal bonds
|
—
|
|
|
55
|
|
|
—
|
|
|
55
|
|
|
—
|
|
|
63
|
|
|
—
|
|
|
63
|
|
||||||||
Corporate notes
|
—
|
|
|
383
|
|
|
—
|
|
|
383
|
|
|
—
|
|
|
382
|
|
|
—
|
|
|
382
|
|
||||||||
U.S. agency securities
|
—
|
|
|
10
|
|
|
—
|
|
|
10
|
|
|
—
|
|
|
3
|
|
|
—
|
|
|
3
|
|
||||||||
Municipal auction rate securities
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||
Total available-for-sale securities
|
—
|
|
|
448
|
|
|
15
|
|
|
463
|
|
|
—
|
|
|
448
|
|
|
15
|
|
|
463
|
|
||||||||
Total assets measured at fair value on a recurring basis
|
$
|
28
|
|
|
$
|
448
|
|
|
$
|
15
|
|
|
$
|
491
|
|
|
$
|
181
|
|
|
$
|
448
|
|
|
$
|
15
|
|
|
$
|
644
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
12
|
|
|
October 31, 2017
|
|
July 31, 2017
|
||||||||||||||||||||||||||||
(In millions)
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
Fair Value
|
||||||||||||||||
Cash equivalents:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
In cash and cash equivalents
|
$
|
28
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
28
|
|
|
$
|
181
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
181
|
|
Available-for-sale securities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
In investments
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
248
|
|
|
$
|
—
|
|
|
$
|
248
|
|
In funds held for customers
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
||||||||
In long-term investments
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
|
—
|
|
|
—
|
|
|
15
|
|
|
15
|
|
||||||||
Total available-for-sale securities
|
$
|
—
|
|
|
$
|
448
|
|
|
$
|
15
|
|
|
$
|
463
|
|
|
$
|
—
|
|
|
$
|
448
|
|
|
$
|
15
|
|
|
$
|
463
|
|
3. Cash and Cash Equivalents, Investments, and Funds Held for Customers
|
|
October 31, 2017
|
|
July 31, 2017
|
||||||||||||
(In millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Classification on balance sheets:
|
|
|
|
|
|
|
|
||||||||
Cash and cash equivalents
|
$
|
529
|
|
|
$
|
529
|
|
|
$
|
529
|
|
|
$
|
529
|
|
Investments
|
248
|
|
|
248
|
|
|
247
|
|
|
248
|
|
||||
Funds held for customers
|
319
|
|
|
319
|
|
|
372
|
|
|
372
|
|
||||
Long-term investments
|
31
|
|
|
31
|
|
|
31
|
|
|
31
|
|
||||
Total cash and cash equivalents, investments, and funds
held for customers
|
$
|
1,127
|
|
|
$
|
1,127
|
|
|
$
|
1,179
|
|
|
$
|
1,180
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
13
|
|
|
October 31, 2017
|
|
July 31, 2017
|
||||||||||||
(In millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Type of issue:
|
|
|
|
|
|
|
|
||||||||
Total cash and cash equivalents
|
$
|
648
|
|
|
$
|
648
|
|
|
$
|
701
|
|
|
$
|
701
|
|
Available-for-sale debt securities:
|
|
|
|
|
|
|
|
||||||||
Municipal bonds
|
55
|
|
|
55
|
|
|
63
|
|
|
63
|
|
||||
Corporate notes
|
383
|
|
|
383
|
|
|
381
|
|
|
382
|
|
||||
U.S. agency securities
|
10
|
|
|
10
|
|
|
3
|
|
|
3
|
|
||||
Municipal auction rate securities
|
15
|
|
|
15
|
|
|
15
|
|
|
15
|
|
||||
Total available-for-sale debt securities
|
463
|
|
|
463
|
|
|
462
|
|
|
463
|
|
||||
Other long-term investments
|
16
|
|
|
16
|
|
|
16
|
|
|
16
|
|
||||
Total cash and cash equivalents, investments, and funds
held for customers
|
$
|
1,127
|
|
|
$
|
1,127
|
|
|
$
|
1,179
|
|
|
$
|
1,180
|
|
|
October 31, 2017
|
|
July 31, 2017
|
||||||||||||
(In millions)
|
Amortized
Cost
|
|
Fair Value
|
|
Amortized
Cost
|
|
Fair Value
|
||||||||
Due within one year
|
$
|
197
|
|
|
$
|
197
|
|
|
$
|
209
|
|
|
$
|
209
|
|
Due within two years
|
162
|
|
|
162
|
|
|
164
|
|
|
164
|
|
||||
Due within three years
|
70
|
|
|
70
|
|
|
59
|
|
|
60
|
|
||||
Due after three years
|
34
|
|
|
34
|
|
|
30
|
|
|
30
|
|
||||
Total available-for-sale debt securities
|
$
|
463
|
|
|
$
|
463
|
|
|
$
|
462
|
|
|
$
|
463
|
|
4. Current Liabilities
|
Short-Term Debt
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
14
|
|
Unsecured Revolving Credit Facility
|
Other Current Liabilities
|
(In millions)
|
October 31,
2017 |
|
July 31,
2017 |
||||
Executive deferred compensation plan liabilities
|
$
|
95
|
|
|
$
|
83
|
|
Reserve for promotional discounts and rebates
|
18
|
|
|
19
|
|
||
Reserve for product returns
|
7
|
|
|
7
|
|
||
Current portion of license fee payable
|
10
|
|
|
10
|
|
||
Current portion of deferred rent
|
5
|
|
|
6
|
|
||
Current portion of dividend payable
|
5
|
|
|
9
|
|
||
Other
|
43
|
|
|
44
|
|
||
Total other current liabilities
|
$
|
183
|
|
|
$
|
178
|
|
5. Long-Term Obligations and Commitments
|
Long-Term Debt
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
15
|
|
Other Long-Term Obligations
|
(In millions)
|
October 31,
2017 |
|
July 31,
2017 |
||||
Total deferred rent
|
$
|
48
|
|
|
$
|
49
|
|
Long-term income tax liabilities
|
54
|
|
|
53
|
|
||
Total license fee payable
|
18
|
|
|
18
|
|
||
Total dividend payable
|
9
|
|
|
13
|
|
||
Long-term deferred income tax liabilities
|
7
|
|
|
7
|
|
||
Other
|
15
|
|
|
16
|
|
||
Total long-term obligations
|
151
|
|
|
156
|
|
||
Less current portion (included in other current liabilities)
|
(23
|
)
|
|
(26
|
)
|
||
Long-term obligations due after one year
|
$
|
128
|
|
|
$
|
130
|
|
Operating Lease Commitments and Unconditional Purchase Obligations
|
6. Income Taxes
|
Effective Tax Rate
|
Unrecognized Tax Benefits and Other Considerations
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
16
|
|
7. Stockholders’ Equity
|
Stock Repurchase Programs and Treasury Shares
|
Dividends on Common Stock
|
Share-Based Compensation Expense
|
|
Three Months Ended
|
||||||
(In millions)
|
October 31,
2017 |
|
October 31,
2016 |
||||
Cost of revenue
|
$
|
3
|
|
|
$
|
2
|
|
Selling and marketing
|
25
|
|
|
25
|
|
||
Research and development
|
39
|
|
|
36
|
|
||
General and administrative
|
30
|
|
|
26
|
|
||
Total share-based compensation expense
|
$
|
97
|
|
|
$
|
89
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
17
|
|
Share-Based Awards Available for Grant
|
(Shares in thousands)
|
Shares
Available
for Grant
|
|
Balance at July 31, 2017
|
25,164
|
|
Options granted
|
—
|
|
Restricted stock units granted (1)
|
(521
|
)
|
Share-based awards canceled/forfeited/expired (1)(2)
|
1,536
|
|
Balance at October 31, 2017
|
26,179
|
|
(1)
|
RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan 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 RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
|
Stock Option Activity and Related Share-Based Compensation Expense
|
|
Options Outstanding
|
|||||
(Shares in thousands)
|
Number
of Shares
|
|
Weighted
Average
Exercise
Price
Per Share
|
|||
Balance at July 31, 2017
|
7,488
|
|
|
$
|
104.50
|
|
Granted
|
—
|
|
|
—
|
|
|
Exercised
|
(671
|
)
|
|
80.33
|
|
|
Canceled or expired
|
(109
|
)
|
|
115.17
|
|
|
Balance at October 31, 2017
|
6,708
|
|
|
$
|
106.74
|
|
|
|
|
|
|||
Exercisable at October 31, 2017
|
3,262
|
|
|
$
|
88.83
|
|
Restricted Stock Unit Activity and Related Share-Based Compensation Expense
|
|
Restricted Stock Units
|
|||||
(Shares in thousands)
|
Number
of Shares
|
|
Weighted
Average
Grant Date
Fair Value
|
|||
Nonvested at July 31, 2017
|
8,636
|
|
|
$
|
98.76
|
|
Granted
|
226
|
|
|
140.80
|
|
|
Vested
|
(681
|
)
|
|
65.30
|
|
|
Forfeited
|
(568
|
)
|
|
76.70
|
|
|
Nonvested at October 31, 2017
|
7,613
|
|
|
$
|
104.65
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
18
|
|
8. Litigation
|
9. Segment Information
|
Small Business & Self-Employed
:
This segment targets small businesses, the self-employed, and the accounting professionals who serve and advise them around the globe. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions.
Consumer
:
This segment targets consumers and includes TurboTax income tax preparation products and services sold in the U.S. and Canada.
Strategic Partner
:
This segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online.
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
19
|
|
|
Three Months Ended
|
||||||
(In millions)
|
October 31,
2017 |
|
October 31,
2016 |
||||
Net revenue:
|
|
|
|
||||
Small Business & Self-Employed
|
$
|
694
|
|
|
$
|
593
|
|
Consumer
|
78
|
|
|
73
|
|
||
Strategic Partner
|
114
|
|
|
112
|
|
||
Total net revenue
|
$
|
886
|
|
|
$
|
778
|
|
|
|
|
|
||||
Operating income (loss):
|
|
|
|
||||
Small Business & Self-Employed
|
$
|
301
|
|
|
$
|
239
|
|
Consumer
|
(55
|
)
|
|
(38
|
)
|
||
Strategic Partner
|
72
|
|
|
70
|
|
||
Total segment operating income
|
318
|
|
|
271
|
|
||
Unallocated corporate items:
|
|
|
|
||||
Share-based compensation expense
|
(97
|
)
|
|
(89
|
)
|
||
Other common expenses
|
(275
|
)
|
|
(239
|
)
|
||
Amortization of acquired technology
|
(2
|
)
|
|
(3
|
)
|
||
Amortization of other acquired intangible assets
|
(1
|
)
|
|
(1
|
)
|
||
Total unallocated corporate items
|
(375
|
)
|
|
(332
|
)
|
||
Total operating loss
|
$
|
(57
|
)
|
|
$
|
(61
|
)
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
20
|
|
ITEM 2 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
•
Executive Overview:
High level discussion of our operating results and some of the trends that affect our business.
•
Critical Accounting Policies and Estimates:
Significant changes since our most recent Annual Report on Form 10-K that we believe are important to understanding the assumptions and judgments underlying our financial statements.
•
Results of Operations:
A more detailed discussion of our revenue and expenses.
•
Liquidity and Capital Resources:
Discussion of key aspects of our statements of cash flows, changes in our balance sheets, and our financial commitments.
|
EXECUTIVE OVERVIEW
|
About Intuit
|
Small Business & Self-Employed
:
This segment targets small businesses, the self-employed, and the accounting professionals who serve and advise them around the globe. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, and payment processing solutions.
Consumer
:
This segment targets consumers and includes TurboTax income tax preparation products and services sold in the U.S. and Canada.
Strategic Partner
:
This segment targets professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online.
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
21
|
|
Our Growth Strategy
|
As emerging technology and market trends change the way people live and work, we change too. For more than three decades, we have continuously re-invented ourselves from a desktop business to the web and mobile. Our assessment of external trends – the emergence and influence of the digital generation, the evolution of social networks as a means to accomplish important financial tasks and growth in the self-employed workforce – reveals significant opportunities to drive future growth. The result is a global market that is shifting from traditional services that are manual in nature to more automated, interconnected services that work on platforms and increasingly rely on artificial intelligence and machine learning.
Our strategy is built on the strength of our One Intuit Ecosystem, a connected, one-stop destination for customers to make their financial lives easier. Our evolving strategy focuses on three elements:
|
•
Personalized experiences
:
With deep expertise and customer-provided data, we can create increasingly valuable personalized experiences that delight and serve our customers. For example, our TurboTax solutions use machine learning to create a customized interview, asking questions uniquely tailored to each individual situation. By delivering an amazing end-to-end experience, we offer customers the value they expect from our offerings as quickly and easily as possible.
•
Trusted open platform
:
With a secure, open platform, we allow real-time access to – and use of – high-quality data to internal and external developers, speeding our ability to embrace new technology, such as artificial intelligence and machine learning. One example of this is our QuickBooks open platform, where small businesses and accountants can install apps created by third-party developers to enhance the functionality and personalization of the QuickBooks experience.
•
Indispensable connections
:
Within our One Intuit Ecosystem we strive to build connections between customers, partners, and products on our platform. We also focus on building relationships with strategic partners critical to providing key customer benefits. These include accountants, developers, financial institutions, schools, governments, and other platform companies.
|
Industry Trends and Seasonality
|
Key Challenges and Risks
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
22
|
|
Overview of Financial Results
|
|
|
|
|
|
Revenue of
|
|
Small Business & Self-Employed revenue of
|
|
Operating loss of
|
$886 M
|
|
$694 M
|
|
$57 M
|
up 14% from same period of fiscal 2017
|
|
up 17% from same period of fiscal 2017
|
|
down 7% from same period of fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss of
|
|
Basic and diluted net loss per share of
|
|
Cash, cash equivalents and investments of
|
$17 M
|
|
$0.07
|
|
$777 M
|
down 43% from same period of fiscal 2017
|
|
down 42% from same period of fiscal 2017
|
|
|
|
|
|
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
23
|
|
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
|
RESULTS OF OPERATIONS
|
Financial Overview
|
||||||||||||||
|
|
|
|
|
|
|
|
|||||||
(Dollars in millions, except per share amounts)
|
Q1
FY18 |
|
Q1
FY17 |
|
$
Change
|
|
%
Change
|
|||||||
Total net revenue
|
$
|
886
|
|
|
$
|
778
|
|
|
$
|
108
|
|
|
14
|
%
|
Operating loss
|
(57
|
)
|
|
(61
|
)
|
|
4
|
|
|
(7
|
)%
|
|||
Net loss
|
(17
|
)
|
|
(30
|
)
|
|
13
|
|
|
(43
|
)%
|
|||
Basic and diluted net loss per share
|
$
|
(0.07
|
)
|
|
$
|
(0.12
|
)
|
|
$
|
0.05
|
|
|
(42
|
)%
|
Segment Results
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
24
|
|
Small Business & Self-Employed
|
|
(Dollars in millions)
|
Q1
FY18 |
|
Q1
FY17 |
|
%
Change
|
|||||
Product revenue
|
$
|
208
|
|
|
$
|
188
|
|
|
11
|
%
|
Service and other revenue
|
486
|
|
|
405
|
|
|
20
|
%
|
||
Total segment revenue
|
$
|
694
|
|
|
$
|
593
|
|
|
17
|
%
|
% of total revenue
|
78
|
%
|
|
76
|
%
|
|
|
|||
|
|
|
|
|
|
|||||
Segment operating income
|
$
|
301
|
|
|
$
|
239
|
|
|
26
|
%
|
% of related revenue
|
43
|
%
|
|
40
|
%
|
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
25
|
|
Consumer
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
26
|
|
Strategic Partner
|
|
(Dollars in millions)
|
Q1
FY18 |
|
Q1
FY17 |
|
%
Change
|
|||||
Product revenue
|
$
|
100
|
|
|
$
|
98
|
|
|
2
|
%
|
Service and other revenue
|
14
|
|
|
14
|
|
|
1
|
%
|
||
Total segment revenue
|
$
|
114
|
|
|
$
|
112
|
|
|
2
|
%
|
% of total revenue
|
13
|
%
|
|
14
|
%
|
|
|
|||
|
|
|
|
|
|
|||||
Segment operating income
|
$
|
72
|
|
|
$
|
70
|
|
|
3
|
%
|
% of related revenue
|
63
|
%
|
|
62
|
%
|
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
27
|
|
Cost of Revenue
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Q1
FY18 |
|
% of
Related
Revenue
|
|
Q1
FY17 |
|
% of
Related
Revenue
|
||||||
Cost of product revenue
|
$
|
24
|
|
|
8
|
%
|
|
$
|
29
|
|
|
10
|
%
|
Cost of service and other revenue
|
170
|
|
|
30
|
%
|
|
151
|
|
|
31
|
%
|
||
Amortization of acquired technology
|
2
|
|
|
n/a
|
|
|
3
|
|
|
n/a
|
|
||
Total cost of revenue
|
$
|
196
|
|
|
22
|
%
|
|
$
|
183
|
|
|
24
|
%
|
Operating Expenses
|
|||||||||||||
|
|
|
|
|
|
|
|
||||||
(Dollars in millions)
|
Q1
FY18 |
|
% of
Total
Net
Revenue
|
|
Q1
FY17 |
|
% of
Total
Net
Revenue
|
||||||
Selling and marketing
|
$
|
308
|
|
|
35
|
%
|
|
$
|
283
|
|
|
36
|
%
|
Research and development
|
293
|
|
|
33
|
%
|
|
246
|
|
|
32
|
%
|
||
General and administrative
|
145
|
|
|
16
|
%
|
|
126
|
|
|
16
|
%
|
||
Amortization of other acquired intangible assets
|
1
|
|
|
—
|
%
|
|
1
|
|
|
—
|
%
|
||
Total operating expenses
|
$
|
747
|
|
|
84
|
%
|
|
$
|
656
|
|
|
84
|
%
|
Non-Operating Income and Expenses
|
(In millions)
|
Q1
FY18 |
|
Q1
FY17 |
||||
Interest income
(1)
|
$
|
2
|
|
|
$
|
1
|
|
Net gain (loss) on executive deferred compensation plan assets
(2)
|
2
|
|
|
(1
|
)
|
||
Other
|
(1
|
)
|
|
(2
|
)
|
||
Total interest and other income (expense), net
|
$
|
3
|
|
|
$
|
(2
|
)
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
28
|
|
LIQUIDITY AND CAPITAL RESOURCES
|
Overview
|
(Dollars in millions)
|
October 31,
2017 |
|
July 31,
2017 |
|
$
Change
|
|
%
Change
|
|||||||
Cash, cash equivalents, and investments
|
$
|
777
|
|
|
$
|
777
|
|
|
$
|
—
|
|
|
—
|
%
|
Long-term investments
|
31
|
|
|
31
|
|
|
—
|
|
|
—
|
%
|
|||
Short-term debt
|
450
|
|
|
50
|
|
|
400
|
|
|
800
|
%
|
|||
Long-term debt
|
425
|
|
|
438
|
|
|
(13
|
)
|
|
(3
|
)%
|
|||
Working capital (deficit)
|
(702
|
)
|
|
(529
|
)
|
|
(173
|
)
|
|
33
|
%
|
|||
Ratio of current assets to current liabilities
|
0.7 : 1
|
|
|
0.7 : 1
|
|
|
|
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
29
|
|
Statements of Cash Flows
|
|
Three Months Ended
|
||||||||||
(Dollars in millions)
|
October 31,
2017 |
|
October 31,
2016 |
|
$
Change
|
||||||
Net cash provided by (used in):
|
|
|
|
|
|
||||||
Operating activities
|
$
|
(78
|
)
|
|
$
|
(205
|
)
|
|
$
|
127
|
|
Investing activities
|
(75
|
)
|
|
98
|
|
|
(173
|
)
|
|||
Financing activities
|
158
|
|
|
(166
|
)
|
|
324
|
|
|||
Effect of exchange rates on cash and cash equivalents
|
(5
|
)
|
|
(5
|
)
|
|
—
|
|
|||
Net increase (decrease) in cash and cash equivalents
|
$
|
—
|
|
|
$
|
(278
|
)
|
|
$
|
278
|
|
Our primary sources and uses of cash were as follows:
|
||
Three Months Ended
|
||
October 31, 2017
|
|
October 31, 2016
|
Sources of cash:
•
Borrowings under revolving credit facility
•
Issuance of common stock under employee stock plans
Uses of cash:
•
Operations
•
Payment of accrued bonuses for fiscal 2017
•
Repurchases of shares of our common stock
•
Payments of cash dividends
•
Capital expenditures
•
Repayment of debt
|
|
Sources of cash:
•
Net sales of investments
•
Borrowings under revolving credit facility
•
Issuance of common stock under employee stock plans
Uses of cash:
•
Operations
•
Payment of accrued bonuses for fiscal 2016
•
Repurchases of shares of our common stock
•
Payment of cash dividends
•
Capital expenditures
|
Stock Repurchase Programs, Treasury Shares, and Dividends on Common Stock
|
Credit Facility
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
30
|
|
Cash Held by Foreign Subsidiaries
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
31
|
|
ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
32
|
|
ITEM 4 - CONTROLS AND PROCEDURES
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
33
|
|
PART II - OTHER INFORMATION
|
ITEM 1 - LEGAL PROCEEDINGS
|
ITEM 1A - RISK FACTORS
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
34
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
35
|
|
•
|
inability to successfully integrate the acquired technology, data assets and operations into our business and maintain uniform standards, controls, policies, and procedures;
|
•
|
inability to realize synergies expected to result from an acquisition;
|
•
|
disruption of our ongoing business and distraction of management;
|
•
|
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 or with regulatory requirements, and may require significant time and resources to align or rectify;
|
•
|
unidentified issues not discovered in our due diligence process, including product or service quality issues, intellectual property issues and legal contingencies;
|
•
|
failure to successfully further develop an acquired business or technology and any resulting impairment of amounts currently capitalized as intangible assets;
|
•
|
in the case of foreign acquisitions and investments, the impact of particular economic, tax, currency, political, legal and regulatory risks associated with specific countries.
|
•
|
inability to find potential buyers on favorable terms;
|
•
|
failure to effectively transfer liabilities, contracts, facilities and employees to buyers;
|
•
|
requirements that we retain or indemnify buyers against certain liabilities and obligations;
|
•
|
the possibility that we will become subject to third-party claims arising out of such divestiture;
|
•
|
challenges in identifying and separating the intellectual properties and data to be divested from the intellectual properties and data that we wish to retain;
|
•
|
inability to reduce fixed costs previously associated with the divested assets or business;
|
•
|
challenges in collecting the proceeds from any divestiture;
|
•
|
disruption of our ongoing business and distraction of management;
|
•
|
loss of key employees who leave the Company as a result of a divestiture;
|
•
|
if customers or partners of the divested business do not receive the same level of service from the new owners, our other businesses may be adversely affected, to the extent that these customers or partners also purchase other products offered by us or otherwise conduct business with our retained business.
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
36
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
37
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
38
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
39
|
|
•
|
different or more restrictive privacy, data protection, data localization, and other laws that could require us to make changes to our products, services and operations, such as mandating that certain types of data collected in a particular country be stored and/or processed within that country;
|
•
|
difficulties in developing, staffing, and simultaneously managing a large number of varying foreign operations as a result of distance, language, and cultural differences;
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
40
|
|
•
|
stringent local labor laws and regulations;
|
•
|
credit risk and higher levels of payment fraud;
|
•
|
profit repatriation restrictions, and foreign currency exchange restrictions;
|
•
|
geopolitical events, including natural disasters, 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;
|
•
|
antitrust and competition regulations;
|
•
|
potentially adverse tax developments;
|
•
|
economic uncertainties relating to European sovereign and other debt;
|
•
|
trade barriers and changes in trade regulations;
|
•
|
political or social unrest, economic instability, repression, or human rights issues; and
|
•
|
risks related to other government regulation or required compliance with local laws.
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
41
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
42
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
43
|
|
•
|
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.
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
44
|
|
ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
Period
|
|
Total Number
of Shares
Purchased
|
|
Average
Price Paid
per Share
|
|
Total Number
of Shares Purchased as Part of Publicly Announced
Plans
|
|
Approximate
Dollar Value of Shares That May Yet Be Purchased Under
the Plans
|
||||||
August 1, 2017 through August 31, 2017
|
|
990,000
|
|
|
$
|
136.68
|
|
|
990,000
|
|
|
$
|
1,385,762,369
|
|
September 1, 2017 through September 30, 2017
|
|
129,000
|
|
|
$
|
142.84
|
|
|
129,000
|
|
|
$
|
1,367,336,059
|
|
October 1, 2017 through October 31, 2017
|
|
105,600
|
|
|
$
|
145.30
|
|
|
105,600
|
|
|
$
|
1,351,992,646
|
|
Total
|
|
1,224,600
|
|
|
$
|
138.07
|
|
|
1,224,600
|
|
|
|
ITEM 6 - EXHIBITS
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
45
|
|
SIGNATURES
|
|
|
INTUIT INC.
(Registrant)
|
|
||
Date:
|
November 20, 2017
|
By:
|
/s/ R. NEIL WILLIAMS
|
|
|
|
|
|
R. Neil Williams
|
|
|
|
|
|
Executive Vice President and Chief Financial Officer (Authorized Officer and Principal Financial Officer)
|
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
46
|
|
EXHIBIT INDEX
|
Exhibit
Number
|
|
Exhibit Description
|
|
Filed
Herewith
|
|
Incorporated by
Reference
|
|
|
|
|
|
|
|
10.01+
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
10.02+
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
10.03+
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
10.04+
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
31.01
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
31.02
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
32.01*
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
32.02*
|
|
|
X
|
|
|
|
|
|
|
|
|
|
|
101.INS
|
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL 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
|
|
|
+
|
Indicates a management contract or compensatory plan or arrangement.
|
*
|
This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Intuit Q1 Fiscal 2018 Form 10-Q
|
47
|
|
1 Year Intuit Chart |
1 Month Intuit Chart |
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