Plaintiff’s Exhibits — Federal Trade Commission v. Intuit Inc. (Document 12)
- Date
- 2022-03-28
Summary
Volume 7 of the plaintiff's exhibits in Federal Trade Commission v. Intuit Inc., Case No. 5:22-cv-1973, in the United States District Court for the Northern District of California, San Jose Division, filed March 28, 2022 as Document 12. The cover page identifies the volume as Exhibits GX 200-306, and an exhibit list gives a short description for each entry. Listed items include TurboTax television and online advertisements as video and screenshots, sets of screen recordings and PDFs labelled TY18, TY19, TY20 and TY21, Intuit privacy and terms documents, and survey and expert materials; several entries are marked under seal or intentionally omitted. The filing is stamped Page 1 of 690 and closes with lease and income-tax tables from Intuit's Fiscal 2021 Form 10-K.
Summary drafted by a model from the document's text below and checked by script against that text before publication. It is a navigation aid, not a reading of what the document proves. Where AI is used
Cite this document
“Plaintiff’s Exhibits — Federal Trade Commission v. Intuit Inc. (Document 12).”
Original at www.courtlistener.com, dated 2022-03-28. Archived at Pandemic Darlings, https://pandemicdarlings.com/source-documents/2022-03-28-plaintiff-v-intuit-inc/
, SHA-256 06cec37039cbe665bd4fd292c1a470f34018c48a1d91ed2155eb46992a771c2b.Full text
Full text shows the first 300 of 690 pages; the complete document is the PDF above.
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 1 of 690
1 Roberto Anguizola (IL Bar No. 6270874)
Frances Kern (MN Bar No. 395233)
2 Rebecca Plett (VA Bar No. 90988)
James Evans (VA Bar No. 83866)
3 Federal Trade Commission
600 Pennsylvania Ave., NW, Mailstop CC-5201
4 Washington, DC 20580
(202) 326-3284 / ranguizola@ftc.gov
5 (202) 326-2391 / fkern@ftc.gov
(202) 326-3664 / rplett@ftc.gov
6 (202) 326-2026 / james.evans@ftc.gov
7 Attorneys for Plaintiff
Federal Trade Commission
8
9 UNITED STATES DISTRICT COURT
NORTHERN DISTRICT OF CALIFORNIA
10 SAN JOSE DIVISION
11 Federal Trade Commission,
Case No.: 5:22-cv-1973
12 Plaintiff,
Plaintiff’s Exhibits
13 v.
14 Intuit Inc.,
15 Defendant.
16
17
18
Volume 7
19
20
21
Exhibits GX 200–306
22
23
24
25
26
27
28
Plaintiff’s Exhibits
No. 5:22-cv-1973
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 2 of 690
1 VOLUME 7 – EXHIBIT LIST
2 GX Description
3 200 2022 Auctioneer YouTube (Video)
201 Intentionally Omitted
4 202 2022 Auctioneer Kantar (Video) (25438069_TVAd_Free Edition 166)
5 203 2022 Auctioneer Kantar (Screenshots) (25438069_TVAd_Free Edition 166)
204 2022 Dog Show Kantar (Video) (25533561_TV_Free_Edition_181)
6
205 2022 Dog Show Kantar (Screenshots) (25533561_TV_Free_Edition_181)
7 206 2022 Dance Workout YouTube (Video)
207 [Intentionally Omitted]
8
208 2022 Dance Workout Kanter (Video) (25364805_TVAd_No Title Assigned -
9 #25364805)
209 2022 Dance Workout Kantar (Screenshots) (25364805_TVAd_No Title
10 Assigned - #25364805)
11 210 TY18 Alimony Paid Hard Stop (Video)
211 TY18 Alimony Paid Hard Stop (PDF)
12 212 TY18 Alimony Received Hard Stop (Video)
13 213 TY18 Alimony Received Hard Stop (PDF)
214 TY18 Educator Expenses Hard Stop (Video)
14
215 TY18 Educator Expenses Hard Stop (PDF)
15 216 TY18 Health Insurance Without An Excuse Hard Stop (Video)
16 217 TY18 Health Insurance Without An Excuse Hard Stop (PDF)
218 TY18 Higher Education Expenses (Video)
17 219 TY18 Higher Education Expenses Hard Stop (PDF)
18 220 TY18 Independent Contractor Hard Stop (Video)
221 TY18 Independent Contractor Hard Stop (PDF)
19
222 TY18 Student Loan Interest Hard Stop (Video)
20 223 TY18 Student Loan Interest Hard Stop (PDF)
224 TY18 Unemployment Hard Stop (Video)
21
225 TY18 Unemployment Hard Stop (PDF)
22 226 TY18 Unreported Tips (Video)
23 227 TY18 Unreported Tips (PDF)
228 TY19 Alimony Paid Hard Stop (Video)
24 229 TY19 Alimony Paid Hard Stop (PDF)
25 230 TY19 Alimony Received Hard Stop (Video)
231 TY19 Alimony Received Hard Stop (PDF)
26
232 TY19 Debt Cancellation Hard Stop (Video)
27 233 TY19 Debt Cancellation Hard Stop (PDF)
28 234 TY19 Educator Expenses Hard Stop (Video)
235 TY19 Educator Expenses Hard Stop (PDF)
Plaintiff’s Exhibits
No. 5:22-cv-1973
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 3 of 690
1 GX Description
2 236 TY19 Higher Education Expenses (Video)
237 TY19 Higher Education Expenses Hard Stop (PDF)
3 238 TY19 Self-Employment Hard Stop (Video)
4 239 TY19 Self-Employment Hard Stop (PDF)
240 TY19 Student Loan Interest Hard Stop (Video)
5
241 TY19 Student Loan Interest Hard Stop (PDF)
6 242 TY19 Unemployment Hard Stop (Video)
243 TY19 Unemployment Hard Stop (PDF)
7
244 TY19 Unreported Tips (Video)
8 245 TY19 Unreported Tips (PDF)
9 246 TY20 Alimony Paid Hard Stop (Video)
247 TY20 Alimony Paid Hard Stop (PDF)
10 248 TY20 Alimony Received Hard Stop (Video)
11 249 TY20 Alimony Received Hard Stop (PDF)
250 TY20 Child Under 24yo with Income Hard Stop (Video)
12
251 TY20 Child Under 24yo with Income Hard Stop (PDF)
13 252 TY20 Debt Cancellation Hard Stop (Video)
14 253 TY20 Debt Cancellation Hard Stop (PDF)
254 TY20 Educator Expenses Hard Stop (Video)
15 255 TY20 Educator Expenses Hard Stop (PDF)
16 256 TY20 Health Care Insurance Advanced Premiums Hard Stop (Video)
257 TY20 Health Care Insurance Advanced Premiums Hard Stop (PDF)
17
258 TY20 Higher Education Expenses (Video)
18 259 TY20 Higher Education Expenses Hard Stop (PDF)
260 TY20 Self-Employment Hard Stop (Video)
19
261 TY20 Self-Employment Hard Stop (PDF)
20 262 TY20 Student Loan Interest Hard Stop (Video)
21 263 TY20 Student Loan Interest Hard Stop (PDF)
264 TY20 Unreported Tips (Video)
22 265 TY20 Unreported Tips (PDF)
23 266 TY21 Alimony Paid Hard Stop (Video)
267 TY21 Alimony Paid Hard Stop (PDF)
24
268 TY21 Alimony Received Hard Stop (Video)
25 269 TY21 Alimony Received Hard Stop (PDF)
26 270 TY21 Child with Income Hard Stop (Video)
271 TY21 Child with Income Hard Stop (PDF)
27 272 TY21 Debt Cancellation Hard Stop (Video)
28 273 TY21 Debt Cancellation Hard Stop (PDF)
Plaintiff’s Exhibits
No. 5:22-cv-1973
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 4 of 690
1 GX Description
2 274 TY21 Educator Expenses Hard Stop (Video)
275 TY21 Educator Expenses Hard Stop (PDF)
3 276 TY21 Higher Education Hard Stop (Video)
4 277 TY21 Higher Education Hard Stop (PDF)
278 TY21 Self-Employment Hard Stop (Video)
5
279 TY21 Self-Employment Hard Stop (PDF)
6 280 TY21 Unemployment Hard Stop (Video)
281 TY21 Unemployment Hard Stop (PDF)
7
282 TY21 Unreported Tips (Video)
8 283 TY21 Unreported Tips (PDF)
9 284 [under seal]
285 2022 Global Privacy Statement
10 286 2022 Terms and Conditions
11 287 2022 Consent for use of tax return information
288 July 31, 2021 Intuit SEC 10K and Exhibits
12
289 Bloomberg Second Measure: TurboTax Market Share Rises in 2021
13 290 [under seal]
14 291 [under seal]
292 [under seal]
15 293 [under seal]
16 294 [under seal]
295 [under seal]
17
296 [under seal]
18 297 [under seal]
298 [under seal]
19
299 2019 “Credits” Advertisement (Video)
20 300 2020 “Courtroom” Advertisement (Video)
21 301 March 28, 2022; Declaration of Diana Shiller
302 March 28, 2022; Declaration of Nathan Novemsky
22 303 [intentionally omitted]
23 304 Curriculum Vitae Nathan Novemsky
305 Perception Survey Questionnaire
24
306 Perception Survey Tables
25
26
27
28
Plaintiff’s Exhibits
No. 5:22-cv-1973
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 5 of 690
200
Government Exhibit
200
Auctioneer Commercial (YouTube) Video
(electronic filename: 2022-03-26_TurboTax Free
Edition 2022 Commercial “Auctioneer” (Official Ad
30)_YouTube_Video and Subtitles.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 6 of 690
201
Government Exhibit
201
(intentionally omitted)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 7 of 690
202
Government Exhibit
202
Auctioneer Commercial (Kantar) Video
(electronic filename: 25438069_TVAd_FreeEdition
166.mp4)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 8 of 690
25438069_TVAd_FreeEdition 166 – Auctioneer KANTAR 203
0:00
0:03
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 9 of 690
0:06
0:09
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0:12
0:14
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 11 of 690
204
Government Exhibit
204
Dog Show Commercial (Kantar) Video
(electronic filename:
25533561_TV_Free_Edition_181.mp4)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 12 of 690
25533561_TV_Free_Edition_181 – Dog Show KANTAR 205
0:00
0:03
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 13 of 690
0:06
0:09
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0:12
0:15
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 15 of 690
206
Government Exhibit
206
Workout Commercial (YouTube) Video
(electronic filename: 2022-03-26_TurboTax Free
Edition 2022 Commercial Dance Workout (Official
Ad 30)_YouTube_Videoand Subtitles.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 16 of 690
207
Government Exhibit
207
(intentionally omitted)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 17 of 690
208
Government Exhibit
208
Workout Commercial (Kantar) Video
(electronic filename: 25364805_TVAd_No Title
Assigned - #25364805.mp4)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 18 of 690
209
25364805_TVAd_No Title Assigned - #25364805 – Workout KANTAR
0:00
0:03
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 19 of 690
0:06
0:09
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 20 of 690
0:12
0:14
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 21 of 690
210
Government Exhibit
210
TY18 Alimony Paid Hard Stop Video
(electronic filename:
Alimony_Paid_[2019-12-18_WC]_Redacted.wmv
)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 22 of 690
211
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 23 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 24 of 690
212
Government Exhibit
212
TY18 Alimony Received Hard Stop Video
(electronic filename: Alimony_Receive_[2019-12-
18_WC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 25 of 690
213
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 26 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 27 of 690
214
Government Exhibit
214
TY18 Educator Expenses Hard Stop
Video
(electronic filename: EducatorExpenses_IL
[2019-10-30_EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 28 of 690
215
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 29 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 30 of 690
216
Government Exhibit
216
TY18 Health Insurance Without An
Excuse Hard Stop Video
(electronic filename: Health Insurance without
an Excuse [2019-11-05_EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 31 of 690
217
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 32 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 33 of 690
218
Government Exhibit
218
TY18 Higher Education Expenses Video
(electronic filename: Higher Educations
Expeses_[2019-10-22_WC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 34 of 690
219
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 35 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 36 of 690
220
Government Exhibit
220
TY18 Independent Contractor Hard Stop
Video
(electronic filename: Independent Contractor [2019-
12-31_EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 37 of 690
221
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 38 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 39 of 690
222
Government Exhibit
222
TY18 Student Loan Interest Hard Stop
Video
(electronic filename: Student Loan Interest_WI
[2019-12-31__EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 40 of 690
223
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 41 of 690
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Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 44 of 690
224
Government Exhibit
224
TY18 Unemployment Hard Stop Video
(electronic filename: Unemployment
[2019-10-30_EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 45 of 690
225
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 46 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 47 of 690
226
Government Exhibit
226
TY18 Unreported Tips Video
(electronic filename: Wages_Tips [2019-10-
30_EC]_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 48 of 690
227
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 49 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 50 of 690
228
Government Exhibit
228
TY19 Alimony Paid Hard Stop Video
(electronic filename: 2020-07-
14_TT_TY2019_AlimonyPaid_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 51 of 690
229
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 52 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 53 of 690
230
Government Exhibit
230
TY19 Alimony Received Hard Stop Video
(electronic filename:
2020_07_13_TT_TY2019_AlimonyReceived_Redacted
.wmv )
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 54 of 690
231
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 55 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 56 of 690
232
Government Exhibit
232
TY19 Debt Cancellation Hard Stop Video
(electronic filename: 2020-07-14_TT_TY2019_Debt
Cancelation_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 57 of 690
233
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 58 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 59 of 690
234
Government Exhibit
234
TY19 Educator Expenses Hard Stop
Video
(electronic filename: 2020-07-
14_TT_TY2019_Educator
Expenses_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 60 of 690
235
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 61 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 62 of 690
236
Government Exhibit
236
TY19 Higher Education Expenses Video
(electronic filename:
2020-07-14_TT_TY2019_Higher
Education_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 63 of 690
237
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 64 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 65 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 66 of 690
238
Government Exhibit
238
TY19 Self-Employment Hard Stop Video
(electronic filename: 2020-07-
13_TT_TY2019_SelEmployed_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 67 of 690
239
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 68 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 69 of 690
240
Government Exhibit
240
TY19 Student Loan Interest Hard Stop
Video
(electronic filename:
2020_07_13_TT_TY2019_Account and
SL_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 70 of 690
241
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 71 of 690
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Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 77 of 690
242
Government Exhibit
242
TY19 Unemployment Hard Stop Video
(electronic filename: 2020-07-
13_TT_TY2019_Unemployment_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 78 of 690
243
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 79 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 80 of 690
244
Government Exhibit
244
TY19 Unreported Tips Video
(electronic filename: 2020-07-
13_TT_TY2019_UnreportedTips_Redacted.wmv
)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 81 of 690
245
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 82 of 690
246
Government Exhibit
246
TY20 Alimony Paid Hard Stop Video
(electronic filename: 2021-01-12_TT-
TY2020_AlimonyPaid.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 83 of 690
247
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 84 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 85 of 690
248
Government Exhibit
248
TY20 Alimony Received Hard Stop Video
(electronic filename: 2021-01-12_TT-
TY2020_AlimonyReceived.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 86 of 690
249
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 87 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 88 of 690
250
Government Exhibit
250
TY20 Child Under 24yo with Income
Hard Stop Video
(electronic filename: 2021-01-13_TT-
TY2020_ChildUnder24withIncome.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 89 of 690
251
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 90 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 91 of 690
252
Government Exhibit
252
TY20 Debt Cancellation Hard Stop Video
(electronic filename: 2021-01-12_TT-
TY2020_DebtCancellation.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 92 of 690
253
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 93 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 94 of 690
254
Government Exhibit
254
TY20 Educator Expenses Hard Stop
Video
(electronic filename: 2021-01-12_TT-
TY2020_Educator Expenses.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 95 of 690
255
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 96 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 97 of 690
256
Government Exhibit
256
TY20 Health Care Insurance Advanced
Premiums Hard Stop (Video)
(electronic filename: 2021-04-
16_TT_TY2020_HealthInsurance_AdvancePremiums
_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 98 of 690
257
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 99 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 100 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 101 of 690
258
Government Exhibit
258
TY20 Higher Education Expenses Video
(electronic filename: 2021-01-12_TT-
TY2020_HigherEducationExpenses.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 102 of 690
259
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 103 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 104 of 690
260
Government Exhibit
260
TY20 Self-Employment Hard Stop Video
(electronic filename: 2021-01-12_TT-TY2020_Self-
Employed.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 105 of 690
261
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 106 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 107 of 690
262
Government Exhibit
262
TY20 Student Loan Interest Hard Stop
Video
(electronic filename: 2021-01-
13_TT_TY2020_StudentLoan_2_Redacted.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 108 of 690
263
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 109 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 110 of 690
264
Government Exhibit
264
TY20 Unreported Tips Video
(electronic filename: 2021-01-12_TT-
TY2020_UnreportedTips.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 111 of 690
265
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 112 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 113 of 690
266
Government Exhibit
266
TY21 Alimony Paid Hard Stop Video
(electronic filename: 2022-02-
18_TT_TY2021_AlimonyPaid.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 114 of 690
267
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 115 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 116 of 690
268
Government Exhibit
268
TY21 Alimony Received Hard Stop Video
(electronic filename: 2022-02-
18_TT_TY2021_AlimonyReceived.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 117 of 690
269
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 118 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 119 of 690
270
Government Exhibit
270
TY21 Child with Income Hard Stop
Video
(electronic filename: 2022-02-
18_TT_TY2021_ChildIncome.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 120 of 690
271
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 121 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 122 of 690
272
Government Exhibit
272
TY21 Debt Cancellation Hard Stop Video
(electronic filename: 2022-02-
18_TT_TY2021_DebtCancellation.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 123 of 690
273
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 124 of 690
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 125 of 690
274
Government Exhibit
274
TY21 Educator Expenses Hard Stop
Video
(electronic filename: 2022-02-
18_TT_TY2021_EducatorExpenses.wmv)
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 126 of 690
275
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 127 of 690
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You deserve transparency into our data use
Our privacy statement spells out exactly what we do with your data after you share it with us. It has all the details about what we
collect, who we share it with, and how we use it.
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Intuit Global Privacy Statement
Last Updated: January 10, 2022
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Introduction
Products and overview
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Intuit leverages technology responsibly to power prosperity around the world, and we believe that everyone has a right to privacy. At Intuit, we view privacy as a key part of the value that
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we deliver to our customers. Intuit’s Data Stewardship Principles were developed to describe Intuit’s values regarding the data our customers entrust to us.
Scope of this Privacy Statement and our role
As a financial services and technology company, we’re providing this Global Privacy Statement (which we’ll refer to as “Privacy Statement”) to explain how we, Intuit Inc. and the Intuit group
companies (collectively “Intuit”, “we” and “us”) collect, use, share or otherwise process information when you interact with us and our offerings, services and experiences, or when
businesses provide us with your information. This Privacy Statement is global in nature, meaning that it is applicable to all Intuit websites and offerings, and it describes our privacy
practices when we process:
a) Personal information for the purposes of preparing a tax return or in connection with the preparation of a tax return (collectively, “Tax Preparation Information”) as part of providing
TurboTax tax preparation services;
b) Personal information for the purposes of providing the benefits of the Intuit platform, which is collectively, all of Intuit’s services, sites, experiences and software (including through our
mobile applications and desktop applications) other than Tax Preparation Information (the “Intuit Platform”); and/or
c) Personal information as necessary to manage, run, improve and develop our business and personalize your experience while interacting with the Intuit Platform.
Intuit determines the purposes and means of the processing of personal information, as described in this Privacy Statement, and therefore acts as ‘data controller’ (or equivalent/similar
terms) for purposes recognized by certain data privacy laws. We may share your personal information within the Intuit group companies and conduct processing activities as controllers or
joint controllers for the purposes set out in this Privacy Statement. If you have any questions about the processing of your personal information, please contact us in the section “How to
Contact Us” below.
This Privacy Statement does not apply where Intuit processes personal information as a service provider (or equivalent role under data privacy laws, such as data processor) on behalf of a
customer or entity who acts as the data controller, for example, the customers of our professional tax software products. When we act as a service provider, the privacy statement of the
relevant data controller and our agreements with such business or entity will govern our processing of such personal information.
In certain circumstances, there may be more than one data controller processing your information. For example, your employer or a financial partner may also act as a data controller. In
these situations, we act as an independent data controller over our processing activities – meaning that we make determinations over how your personal information will be processed
independently from the other data controllers. The other data controllers have their own obligations under applicable information privacy laws. Intuit is not responsible for the processing
of other data controllers (including our customers) and you should contact them directly for questions on how they process your personal information and for exercising your privacy rights
in relation to such processing.
The Intuit Platform
The Intuit Platform and your information
When we say “platform” we mean that when you choose to share data with us, or bring over information from third parties (like a bank or loan provider), we use that data together, not just
within the individual offering(s) you’re using. This means that, for example, your bookkeeping details from QuickBooks, budgets from Mint, contact and purchase history details from
Mailchimp, and recommendations from Credit Karma all live together.
The personal information we use in this centralized way is all the information that Intuit knows about you, either because you are an end user of our services or a customer contact (like a
subscriber to a customer's email list) whose personal information has been included in the Intuit Platform. It includes information such as your credentials; your name and contact details;
payment information; information about your activities, behavior, your interests and preferences (including purchase history with Intuit or if you're a customer contact, our customers);
insights about your finances, business or preferences or your contacts; the content you or others place about you in our Platform; and information we have collected about you from third-
party sources.
Organizational account information
Some experiences and services within the Intuit Platform allow you to interact with an organization (such as your employer). If you are granted access to an organization or household
account (for example, a business's account in QuickBooks), the owner of the organization or a designated administrator may control and administer details of your account, for example,
by deciding your access rights; making decisions about your personal information (such as details about your payroll); or requiring you to take certain actions (for example, use location
tracking to clock in for a shift). If your access rights are amended by the owner or designated administrator, then you may lose access to the information that is in the control of the
organization.
Your use of the Intuit Platform as part of an organization’s account may be subject to the organization’s policies, which may be different from this Statement. We are not responsible for the
privacy or security practices of other organizations, and you should consider both the organization's policies and whether you are comfortable enabling the organization with access to
your information prior to connecting to their services.
Information we collect
Information we receive from you
The personal information that we receive about you depends on the context of your interactions with Intuit, how you configure your account and the choices that you make, including your
privacy settings. Personal information that we receive from you may also depend upon what services, functionalities or experiences you use, your location and applicable law.
• Creating an account. We collect information when you (or your organization) create an account, interact with the Intuit Platform or activate a subscription. Personal information may
include your name, address, phone number and email, country, profile photo, billing information (your payment information), usernames and credentials.
• When a business provides it. We collect information when a business you interact with provides us with information about you (for example, when you are a customer contact),
including information such as your name, email address and telephone number.
• Identification information. We collect information to verify your identity, including your name, social security number, social insurance number, driver’s license numbers,
government-issued identification details, for example to verify your identity in order to help you file your tax return.
• Customer support, product research, training and feedback. We may collect personal information such as your name, email address, telephone number and any other personal
information you choose to share when you reach out to us for support, give us feedback, participate in optional surveys, subscribe to marketing, attend our events, participate in
product research or training or otherwise interact or communicate with us.
• Social and community content. We receive content you post on our social media pages and our community pages.
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• Online behavioral data. We may automatically collect certain information about your use and interactions with our websites, customers’ websites or e-commerce stores, Platform,
social mediaProducts Support and
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organize, including device information (such as your IP address and unique device IDs), page view Sign In
information and search results, links and if you are a customer contact, whether or not a campaign presented or sent to you using our offerings has been viewed, delivered, opened,
clicked
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• Device information. We may collect information about your device such as Internet Protocol (“IP”) addresses, log information, error messages, device type, and unique device
identifiers. For example, we may collect IP addresses from you as part of our sign in and security features.
• Business and financial information. We may receive information about your business, your finances, expenses, invoices, financial statements, details of your financial transactions,
payroll details, payment details, tax return details, details about your customers or vendors or employees, income and wage information, and/or investment information.
• Third-party service content. We receive information about you when you sign into a third-party service with your account or when you connect your account to a third-party service.
For example, you may choose to connect your account with your bank accounts or social media platforms. To sync your financial account information, we must access your financial
account information.
• Usage information. We may collect information about your usage of the Platform, such as the pages you viewed, the services and features you used or interacted with, your browser
type and details about any links or communications with which you interacted.
• Location information. Certain features in the Intuit Platform may collect your precise location information, device motion information, or both, if you grant permission to do so in
your device settings. For example, if you use our time-tracking service.
• Expert advice. The Intuit Platform provides many opportunities for you to connect with live experts, including, for example, accountants or tax preparers. When you interact with
these experts, we may receive information about the questions you ask, the details of your accounts and the guidance provided to you.
• Camera and contacts. Certain features may have access to your camera and contacts if you grant permission in your device settings.
• Information from cookies and other technologies. Intuit and our service providers may use commonly used tools such as cookies, web beacons, pixels, local shared objects and
similar technologies (collectively "cookies") to collect information about you (“Cookie Information”) so we can provide the experiences you request, recognize your visit, track your
interactions, and improve your and other customers' experience. You have control over some of the information we collect from Cookies and how we use it. For full details on how we
use cookies and similar technologies please see our Intuit Cookies Policy. For full details on how we use cookies and similar technologies when you use or interact with our Mailchimp
offerings, please also see our Mailchimp Cookie Policy.
• Information stored locally. Some of our web-enabled desktop services and offerings synchronize with the information on your computer. In doing so, we may collect information
such as device information, product usage, and error reports. We may also store personal information locally on your device.
Biometric Information
Certain parts of the Intuit Platform make use of biometric personal information (“Biometric Information“). Biometric Information can be subject to additional laws and regulations.
We collect Biometric Information from you when you enroll in our biometric identity program available through certain of our services and automatically as part of our anti-fraud
protection, authentication and customer support activities. These identifiers may include facial recognition information, voiceprints and key-stroke information, as well as mathematical
representations of your biometric identifier, such as the template maintained for comparison. We use Biometric Information to identify and authenticate you, and for security and similar
purposes. We share Biometric Information with third-party service providers who assist with our information technology, security and fraud programs, our professional advisors, and as
required by law or regulation. Intuit does not sell your Biometric Information.
When we collect Biometric Information, you will receive a specific notice and consent request at the time of that collection. You are not required to consent to the collection of Biometric
Information in order to use our services, although some functionality may not be available if you decline and you may withdraw your consent at any time.
Intuit will retain Biometric Information until the purposes for which it was collected have been satisfied or three years from your or your organizational account manager’s last interaction
with Intuit, whichever comes first.
Information provided by others
Our Platform is designed to help you connect with other people and organizations. As a result of those connections, others may be able to input information about you, including business
customers using the Intuit Platform. For example, one of Intuit’s customers may share information about you with us in order to use and benefit from the Intuit Platform, such as information
relevant to your or other customer contacts’ interactions with a business that is using Mailchimp. You may also be able to input or process information about others, for example, if you are
an account administrator of one of our products or use Intuit to manage customer lists. If you input information about others into our platform, you must only do so if you have first
provided sufficient notice and received the appropriate rights and permissions to do so, including having an appropriate legal basis for doing so, such as getting advanced written
consent, if required by applicable law.
We may also get information about you from others where permitted by applicable law. We protect and process information obtained from those parties as described in this Privacy
Statement, consistent with any additional restrictions imposed by the source of the information. Our sources may vary over time and depend upon how you use the Intuit Platform. For
example, we receive information from:
• Your service providers. If you choose to sync a non-Intuit account/service with your account, we will receive information from that account/service according to your settings with
that account/service. For example, if you connect a point of sale application to your account, we may receive details of your business’s sales records.
• Supplemental information and identity verification providers. Service providers who help us verify your identity, the specifics of your business and/or supplement the
information you have provided and ensure the accuracy of your information. For example, we use third-party service providers to validate your mailing address, phone number or
provide additional details about your business. These providers may include, for example, your financial institution, telecommunications provider or email provider.
• Customer Support providers. Service providers who provide us with information about you or your interaction with the Intuit Platform for troubleshooting purposes. For example,
we may obtain support information or technical issues you have raised with these third parties.
• Credit bureaus and other third parties. Many of our features rely on information about you that we receive from third parties. For example, in some countries we may offer free
credit reports and credit scores we request on your behalf from credit bureau partners, like TransUnion, Experian and Equifax. Our partners may also provide information such as
employment or income data, vehicle or driver information, or information about special offers available based on your credit profile so that we can give you more personalized
recommendations.
• Other users. As described above, we may get information about you from other users, such as your accountant, bookkeeper, tax preparer, your spouse, your head of household,
your employer or other business customers using the Intuit Platform (e.g. businesses from which you buy products or services, or with which you otherwise interact). We may also
collect such information through features like member referral programs.
• Risk management, cybersecurity & anti-fraud providers. We may receive information from service providers who help us assess risks associated with our offerings, including to
help combat fraud, illegal activity and to help protect your personal information.
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• Content providers. We may receive information from software providers that make user-generated content from their service available to others, such as local business reviews or
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• Communication providers & social networks. We or our third party service providers may collect information from email providers, communication providers and social networks,
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including to monitor public discussion about our brands. Where we are legally required, we ask for your permission to collect this information.
• Joint offering partners. We may offer co-branded services or experiences or engage in joint-marketing activities with others, including through our conferences or live events.
• Publicly-available and third-party sources. We collect information from publicly available and other third-party sources, such as open government databases.
• Government agencies. We receive information from government agencies, including from various tax agencies.
• Required information. Some services and experiences in the Intuit Platform require you to provide information for it to function. If you do not wish to provide the required
information, you may not be able to use certain features.
How we use personal information
We collect and process personal information about you where:
• We have your consent to do so;
• We have a contract with you and it is necessary to process your personal information to perform our contract with you, including to provide you with the benefits of the Intuit Platform
and operate our business;
• The processing is in our legitimate business interests (in those jurisdictions where legitimate business interest is a legitimate basis for processing) such as operating our businesses,
improving and developing the Intuit Platform, communicating with you, marketing our offerings and services and personalizing your experience, and to detect illegal activities; or
• We need to comply with legal requirements, including applicable laws and regulations.
Personal information is used for the following purposes including to:
• Provide you with the Intuit Platform, create your account and manage our relationship with you
• Improve and develop our products and services by analyzing how they are used and interacted with, as well as by assessing the use of and interactions with our Platform and certain
content our customers send or display through the Platform, including by conducting data analytics to develop insights about you, your needs and preferences so we can make more
informed predictions, recommendations and products for our customers
• Run and manage our business, including resolving billing and financial disputes
• Evaluate your eligibility for financial or other marketing offers, products and services
• Provide features to you, such as your free credit reports and scores
• Connect you with experts and other users
• Communicate with you, such as sending you electronic notifications concerning your financial privacy
• Protect against misuse or abuse of our services and ensure compliance with our terms, including in relation to content our customers send or display through the Platform
• Market our services, products and experiences, including to deliver gifts and promotional materials, product recommendations and other non-transactional communications via
email, post, telephone, SMS or push notifications, in accordance with your marketing preferences
• Personalize your experience and tailor recommendations, advertising and offers presented to you, including through the development of insights about you and your needs based on
your interactions with the products, services and offerings of our platform
• Combine and anonymize information about your interactions with Intuit to create aggregate, anonymized statistics for use in research and for marketing, promoting, improving and
developing our platform
• Provide you with support and resolve disputes
• Conduct research, including by partnering with academic institutions
• Comply with our legal and regulatory requirements
• Authenticate your identity, including through the use of Biometric Data
• Manage event registrations and attendance, including sending related communications to you
• Register visitors to our offices for security reasons and manage non-disclosure agreements that visitors may be required to sign
• Protect the rights, property, safety or security of the Intuit Platform, our customers, employees or others and prevent fraudulent or illegal activity
• Exercise our rights in the course of judicial, administrative or arbitration proceedings
• Enforce, remedy or apply our Terms of Service or other agreements and/or
• Process your information for other purposes that are compatible with the disclosed purposes if and where this is permitted by applicable law.
Automated Processing
To provide you with valuable personalized advice, recommendations and experiences, we may process your personal information using automated and manual (human) methods. Our
automated methods include artificial intelligence (AI) and a range of technologies that help our services learn and reason to improve our ability to personalize and enhance your
experience in the Intuit Platform.
How we share your information
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We may share your information in the following circumstances:
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With your consent. In accordance with our Data Stewardship Principles, except for as outlined below, we only share your information with third parties when you have directed us to do
so.
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When you connect with an Intuit Platform partner. You may be provided with offers, products, and services from third-party companies who integrate with our Intuit Platform (“Platform
Partner”). If you choose to interact with a Platform Partner, apply for their services or offerings or otherwise link or sync your account to a Platform Partner’s product or service, you consent
and direct Intuit to share your information, including personal information, to the Platform Partner providing the service or offering. For example, when we send your personal information
to partners in order to generate offers for you to review, when we send your application information directly to our partners, or when we send you to the partner’s site for you to provide
the information directly to them.
In some cases, if you click through to go to a Platform Partner’s site, you will automatically be sending your personal information to that Platform Partner. When this happens, you will still
have to submit your application on the Platform Partner’s site. Remember that any information you provide to a Platform Partner, whether through us or on your own, will be subject to their
privacy practices and terms and conditions.
For certain product features. We may use third party API services, such as YouTube and Twilio, for certain product features. If you choose to use those features, you acknowledge and
agree that you are also bound by the third party’s privacy policy, such as Google’s Privacy Policy for YouTube API services. You may manage your YouTube API data by visiting Google’s
security settings page at https://security.google.com/settings/security/permissions. For more information about Twilio’s privacy practices, please visit https://www.twilio.com/legal/privacy.
When you connect to your social media account. Some of our features enable you to connect to a social media account or share information on social media platforms, like Facebook
and Twitter. Any information you choose to share on social media may potentially be visible to a global audience and will be subject to the social media provider's privacy policies (not this
Privacy Statement). You should take care only to share information on social media that you are comfortable sharing.
For research. With appropriate controls, we may share information with third-parties, such as academic institutions, government and non-profit organizations, for research purposes or to
publish academic or policy-related materials. We only share information in a way that would not allow any individual to be identified.
For joint features, sales, promotions and events. We may share your information with third-parties companies who are jointly providing features, sales initiatives, promotions or events
with us.
With financial services providers. In connection with our financial products, we may share personal information with collection agencies, credit bureaus and loan services providers, and
payment card association members. We may also share your personal information with other companies, lawyers, credit bureaus, agents, government agencies, and card associations in
connection with issues related to fraud, credit, defaults, or debt collection.
When you publicly post the information. We may provide opportunities for you to publicly post reviews, questions, comments, suggestions or other content, which may include
personal information, such as your name or user name. Anything you share in a public forum is public, and you should think carefully before you decide to share.
With service providers or agents. We share personal information with our service providers or agents who provide services on our behalf for the purposes described in this Privacy
Statement. Service providers or agents are required to implement reasonable privacy and information protection controls to maintain the privacy and security of information provided to
them consistent with the privacy practices outlined in this Statement. Service providers or agents may include companies that assist us with our advertising, marketing and sales efforts,
help us with our technology offerings (such as a hosting, security or anti-fraud providers) and help us run our business.
For mergers and acquisitions. If we are involved with a merger, asset sale, financing, liquidation, bankruptcy, or the acquisition of all or part of our business to another company, we may
share your information with that company and its advisors before and after the transaction date.
No sale of personal information to third parties. We do not and will not sell personal information to third parties. We do share personal information with third parties for the business
purposes described in this Statement.
With our affiliates and subsidiaries and your right to limit information sharing. We may share your information with our affiliates and subsidiaries for everyday business purposes as
described in this Statement, including for marketing purposes, for improving and developing our offerings and for personalizing your experience on our Platform. Certain laws may
provide you with the right to limit our information sharing activities in certain circumstances. Please review these rights in the “Country and Region-Specific Terms” section below.
Cookies and other tracking technologies. You can find information on changing your browser settings to opt-out of cookies in your browser settings. In certain countries, you may also
be able to make changes to your cookies settings by using our cookie preferences tool. If you disable some or all of the cookies the service, or parts of the service may not work. For more
information, please see Intuit’s Cookies Policy and, for Mailchimp offerings, please also see the Mailchimp Cookies Policy.
For advertising and analytics. Intuit may use advertising networks and other providers to display advertising on our Intuit Platform or to manage our advertising on other sites. Our
advertising partners may place cookies on unaffiliated websites in order to serve advertisements that may be relevant to you based on your browsing activities and interests and determine
the effectiveness of such advertisements. See also the “Country and Region-Specific Terms” section below for additional pages.
The Intuit Platform is not currently configured to respond to browsers’ “Do Not Track” signals because at this time no formal “Do Not Track” standard has been adopted.
For legal reasons. We may share your information with third-parties for legal reasons without your consent, and as permitted by law, including:
• When we reasonably believe disclosure is required in order to comply with a subpoena, court order, or other applicable law, regulation or legal process
• To protect the rights, property, or safety of Intuit, TurboTax, the Intuit Platform, our customers or others
• To protect or defend against attacks
• To enforce, remedy, or apply our Terms of Service or other agreements
• To prevent fraud, cybersecurity attacks or illegal activity
• For debt collection
• With regulatory agencies, including government tax agencies, as necessary to help detect and combat fraud and/or protect our customers, users and/or the Intuit Platform, or in
required institutional risk control programs.
Your information rights and choices
Your rights
At Intuit, we believe that you have rights to information that pertains to you, your household and/or your business. If another person has input or processed information in the Intuit
Platform about you or on behalf of you, your family or your business (and we are processing such information as data controller), you may ask to receive a copy of your information, even if
you do not have an account with us.
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Depending on where you live, you may have certain state- or nation-specific rights with respect to your personal information that we collect and process.
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For specific information on what steps you can take to manage your privacy, please see the “Country and Region-Specific Terms” section for your country, below.
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To help protect privacy and the security of your information, you may be asked to provide additional information to verify your identity and/or ownership rights prior to us exercising your
data rights. If we are unable to verify your identity or ownership rights to the data, we may not be able to provide you with data rights until you are able to provide us with proper
documents.
Information retention
Unless you specifically ask us to delete your personal information, we retain your personal information as long as it is necessary to comply with our data retention requirements and
provide you with services and the benefits of the Intuit Platform and successfully run our business. However, even if you request a deletion, we may be required to maintain your
information for as long as necessary to:
1. comply with our legal or regulatory compliance needs (e.g. maintaining records of transactions you have made with us);
2. to exercise, establish or defend legal claims; and/or
3. to protect against fraudulent or abusive activity on our service.
This means we may keep different information for different periods. If your account is canceled because you’ve not used it in a long time, we may delete this information straight away.
There may be occasions where we are unable to fully delete, anonymize, or de-identify your information due to technical, legal, regulatory compliance or other operational reasons.
Where this is the case, we will take reasonable measures to securely isolate your personal information from any further processing until such time as we are able to delete, anonymize, or
de-identify it.
International data transfers
Unless you have provided us with consent to transfer your information, US Tax Preparation Information shall be processed and stored in the United States in accordance with applicable
law.
If you were a TurboTax Canada customer before tax year 2013 and we still house any of your tax return(s) for any of those previous years, your Tax Preparation Information for those
previous years will continue to remain in Canada except by your express consent.
With the exceptions noted above, you agree and Intuit reserves the right to store and process your personal information in the United States and in any other country where Intuit or its
affiliates, subsidiaries, or service providers operate facilities in accordance with and as permitted by applicable laws and regulations. Some of these countries may have data protection
laws that are different from the laws of your country (and, in some cases, may not be as protective).
When we transfer, store or process personal information outside of your jurisdiction, we take appropriate safeguards to require that your personal information remain protected in
accordance with this Privacy Statement and applicable law. We may use contracts or the Standard Contractual Clauses approved by the European Commission or, as may be applicable,
the equivalent clauses approved by the UK Government, to help ensure your information is protected. For more information on the transfer safeguards we rely on and where they have
been made available please contact us by using the details in the “How to contact us” section below.
Although not relied on for data transfers, Intuit (excluding Credit Karma) complies with the EU-U.S. Privacy Shield Framework and the Swiss-U.S. Privacy Shield Framework as set forth by
U.S. Department of Commerce regarding the collection, use, and retention of personal information transferred from the European Union (EU), the United Kingdom (UK), and Switzerland to
the United States. We are subject to the investigatory and enforcement powers of the Federal Trade Commission. You can find more information about Intuit’s and Mailchimp’s EU-U.S. and
Swiss-U.S. Privacy Shield certification here.
Security of your personal information
We use physical, technical and organizational safeguards designed to protect your information. However, despite these controls, we cannot completely ensure or warrant the security of
your information. You can find out more about how we protect your information and the steps you can take to help protect your information here.
Changes to our Privacy Statements
From time to time we may change or update our Privacy Statement. We reserve the right to make changes or updates at any time. If we make material changes to the way we process your
personal information, we will notify you by posting a notice in our platform or on a community post; by sending you a notification; or by other means consistent with applicable law.
You can see when this Privacy Statement was last updated by checking the “last updated” date displayed at the top of this Privacy Statement. Please review this Privacy Statement
periodically to stay informed about how Intuit protects your privacy.
Collection and use of children’s personal information
Our services are not intended for or directed to children. We do not knowingly collect personal information from children. If you believe we may have information from a child, please
contact us.
Country and Region-Specific Terms
Additional terms may apply to you based upon the country you reside in or the products you use. Please click the country or region that applies to you to learn more about additional
terms and rights that may apply to you.
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If you have an unresolved privacy or information use concern or complaint that we have not addressed satisfactorily, please contact our U.S.-based third party dispute resolution provider
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INTUIT TERMS OF SERVICE FOR
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SECTION A TERMS
Introduction and Overview
Thank you for choosing Intuit. We provide a platform (the “Platform”) that encompasses a variety of services, including TurboTax, QuickBooks, and Mint (each, a “Service”). You are entering into a
contract with Intuit Consumer Group LLC. Intuit Consumer Group LLC, along with any parent, subsidiary, affiliate or related companies (including those listed here and at
https://www.intuit.com/legal/intuit-group-companies/) are referred to in these provisions as “Intuit Group Companies” or simply “Intuit” or “us.”
When you use the Platform, you enter into a binding contract with us. Each part of Section A of the agreement begins with an italicized annotation that is intended to help you navigate the agreement.
The annotations do not completely summarize the agreement, though, and you should read each section carefully and in full. We’ve also bolded a few areas that talk about important legal rights,
and you should be sure to read those sections carefully. These provisions in Section A apply to the Platform generally and are separate from the provisions in Section B which include additional
provisions for your use of specific Intuit products or Services.
If you are an individual acting on your company’s or client’s behalf, you accept these provisions on their behalf, and the term “you” will refer to you, your company or your client.
Agreement to these Terms
You need to agree to these terms to use our services. By using Intuit services, you are instructing us to share your data across our platform for marketing, eligibility and other purposes described in
our Global Privacy Statement, consistent with applicable law. This data may include credit information and other information we obtain from third parties. As always, TurboTax will not share your tax
preparation data without your explicit consent, as required by law.
To access and/or use the Platform, you acknowledge and agree:
To the terms and conditions of this agreement (“Agreement”), which includes:
Intuit’s Global Privacy Statement
The current version of the terms set out in Section A and Section B; and
Any additional provisions and conditions provided separately to you for your use of the Platform, which may include terms and conditions from third parties (which we refer to as
“Additional Terms”)
You are at least 18 years of age;
You are capable of forming a binding contract with Intuit; and
You are not a person who is prohibited from using the Platform under the laws of the U.S. or any other applicable jurisdiction.
You understand that by using certain Services, you are providing written instructions in accordance with the Fair Credit Reporting Act and other applicable law to permit Intuit Inc. and its affiliated
companies to obtain and periodically refresh your credit information and other information about you from third parties for marketing, eligibility and other purposes described in Intuit's Global
Privacy Statement. You understand that your instructions authorize Intuit and its affiliated companies to obtain such information now and periodically in the future for as long as you have a registered
Intuit account. We will stop refreshing your credit information when you cancel your account through your account settings.
Your Personal Information
We want to be transparent about how we use personal information and about your rights in our Privacy Statement. You should only provide us with personal information of others if you have
received permission to do so.
You agree that Intuit may use and maintain your personal information according to Intuit’s Global Privacy Statement and any changes published by Intuit.
To the extent we allow you to input personal information (as the term is defined under applicable law) about individuals other than yourself, you represent and warrant that you have complied with all
applicable laws and received the proper authority or consent to allow us to collect and process such information to operate our business, in accordance with our Global Privacy Statement. You
further agree that, other than with respect to information furnished to TurboTax in connection with the preparation of an individual or business tax return, any sharing of personal information among
Intuit Group Companies is contemplated as part of the Platform. You agree such sharing does not constitute a “sale” of information as defined under the California Consumer Privacy Act.
Changes
Change happens. When it does happen, we will update this agreement. If the changes are material, you may need to accept the changes to use the Platform.
We may modify the provisions of this Agreement at any time. We may notify you of such modifications by posting through the Platform or on our website or by other means. It is important that you
review this Agreement whenever we modify it because your continued use of the Platform indicates your agreement to the modifications. We may modify, suspend or discontinue the Platform at any
time. You agree that we will not be liable to you or any third party for any modification, suspensions or discontinuance of the Platform.
In some cases, you may need to accept changes to this Agreement to continue using the Platform. If you do not agree to the changes, you may stop using the Platform or terminate your account.
Your Rights to Use the Platform
You can use our Platform for your own personal and lawful use or as otherwise permitted under this agreement.
Except as set forth in the Section B terms, you may access and use the Platform for your own internal, lawful and non-commercial purposes only.
Beta Features
We may provide you with access to beta features in the Platform. You are free to use them, but they are provided as-is.
We may include new and/or updated pre-release and trial features in the Platform, and such features are provided as-is. Your use of such features is at no additional cost, but you must follow
additional rules or restrictions that we may place on their use.
Account
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You will manage your passwords and accept updates to the Platform.
You may need to sign up for an account to use the Platform. We may need to verify your identity, and you authorize us to collect information (e.g., date of birth, address) from you to do so. You may
be unable to use the Service if you do not provide this information, can not authenticate into the account or can not verify your identity. If you believe that your account information or the device that
you use to access the Platform has been lost or stolen, or that someone is using your account without your permission, you must notify us immediately.
You are responsible for securely managing your password(s) for the Platform and contacting Intuit if you become aware of any unauthorized access to your account.
From time to time, we may update the Platform, including with tools, utilities, improvements or third party applications. You agree to receive these updates.
Payment and Cancellations
Some services may be free, others may have costs associated. For those with costs, we may charge your payment method for fees or on a subscription basis. You may cancel your subscription at
any time (but you may not receive a refund).
We may require payment of fees or a subscription charge for use of the Platform (or certain portions of the Platform), and you agree to pay such fees. If you registered for a trial, you may need to
purchase the Platform before the trial ends in order to retain access to any content provided to, or created through, the Platform.
Payments will be billed in U.S. dollars, and your account will be charged upon purchase and when you provide your payment information, unless stated otherwise in applicable payment provisions. If
your payment information is not accurate, current and complete, we may suspend or terminate your account. If you do not notify us of updates to your payment information, we may participate in
programs supported by your card provider to try to update your payment information, and you authorize us to continue billing your account with the updated information that we obtain.
You may be charged a subscription fee in advance on an annual basis or other recurring interval disclosed to you prior to your purchase. For annual subscriptions, we will send you a reminder with
the then-current subscription fee no less than thirty (30) days and no more than sixty (60) days before your subscription term ends, or otherwise as required by applicable law. Intuit may change the
price for recurring subscription fees from time to time with notice to you. Price changes will take effect at the start of the next subscription period following the date of the price change. If you do not
agree with the price change, you may unsubscribe prior to the price change going into effect.
Your payment to Intuit will automatically renew at the end of the applicable subscription period, but you can cancel a subscription at any time. For subscription-based versions of the Services,
Subscription cancellations will take effect the day after the last day of the current subscription period. If you cancel in the middle of a subscription period, you will be able to continue to access and
use the applicable Service until the end of your subscription period. We do not provide refunds or credits for any cancellations or partial subscription period.
Mobile App Use
Mobile versions of our Platform may be available for download, but you must follow applicable third-party terms when using them.
The Platform may be available through an app for a compatible mobile device. You agree that you are solely responsible for any applicable changes, updates and fees as well as complying with the
provisions of your agreement with your telecommunications provider and any third-party mobile app marketplace.
Third Party Advice and Products
You may have access to professional advice and third-party products. Any such advice and products are not covered under this agreement.
From time to time, we may offer specific functionality in the Platform that provides you with the opportunity to seek professional advice, for example, the ability to speak with a tax expert. Unless
specifically disclosed, Intuit is not in the business of providing legal, financial, accounting, tax, health care, insurance, real estate or other professional service or advice, and you should consult with
professionals for advice prior to making important decisions in these areas.
The Platform may include information about or offers for third-party services or products or allow you to access or connect your account to third-party services or products. Intuit does not warrant,
and is not responsible for, the services and products or claims made about them, or the actions or inactions of any third party. You must review and comply with the third-party’s services and product
provisions. Intuit may be compensated by those third parties, which could impact whether, how and where the services and products are displayed.
Content and Data
What’s yours remains yours, what’s ours remains ours, but we may use information you provide to improve our Platform.
You are solely responsible for anything you write, submit, receive, share and store or any data you input into the Platform (collectively, your “Content”). Content includes, but is not limited to, data,
information, materials, text, graphics, images, audio or video that are uploaded, transmitted, posted, generated, stored or otherwise made available through the Platform. You have no obligation to
provide any content to the Platform, and you’re free to choose the content that you want to provide. You acknowledge certain functionality in the Platform may be dependent on the provision of
Content and may not be available without such Content.
Your Content remains yours, which means that you retain any intellectual property rights that you have in your Content. By sharing your Content on the Service, you hereby grant Intuit a license to use
your Content, as described in more detail below.
What’s Covered
These licenses cover your Content to the extent your Content is protected by intellectual property rights.
Scope
This license is:
● worldwide, which means it’s valid anywhere in the world;
● non-exclusive, which means you can license your Content to others; and
● royalty-free, which means there are no fees for this license.
Rights
This license allows Intuit to:
● host, reproduce, distribute, communicate, sublicense and use your Content — for example, to save your Content on our systems and make it accessible from anywhere you go;
● publish or publicly display your Content, if you’ve made it visible to others; and
● modify and create derivative works based on your Content, such as reformatting or translating it.
Purpose
This license is for the limited purpose of:
Operating, providing and improving the Platform, which means allowing the Platform to work as designed and creating new features and functionalities.
Duration
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This license lasts for as long as your Content is protected by intellectual property rights.
Intuit may collect, derive or generate de-identified and/or aggregated data regarding your usage of or the performance of the Service, including data derived from your Content. Intuit will own
all such data and may use this data without restriction, including, but not limited to, operating, analyzing, improving or marketing Intuit’s products and services, including the Platform.
As between you and Intuit, Intuit and its licensors retain all right, title or interest in and to the Platform, except for the rights granted to you.
Prohibited Uses
We expect you to obey the law and follow certain rules in using the Platform.
Intuit does not condone or support any activity that is illegal, violates the rights of others, harms or damages Intuit’s reputation or could cause Intuit to be liable to a third party. At minimum, you may
not use the Platform to:
● Violate any law, regulation, executive order or ordinance, including through actions that give rise to criminal, civil, administrative or regulatory liability and/or fines;
● Post or share Content that is or may be illegal or inappropriate, including material that may be defamatory, obscene, harassing, offensive, fraudulent, objectionable or infringing;
● Transmit any virus, trojan horse or other disruptive or harmful software or data;
● Send any unsolicited or unauthorized advertising, such as spam;
● Impersonate or misrepresent your affiliation with Intuit;
● Resell, license or provide free or unauthorized access to the Platform or make the Platform available on any file-sharing, virtual desktop or application hosting service;
● Attempt to reverse engineer in any way any of the Platform;
● Engage in unauthorized access, monitoring, interference with or use of the Platform or third party accounts, information (including personal information), computers, systems or networks,
including scraping or downloading content that doesn’t belong to you;
● Use the Platform for general archiving or back-up purposes; or
● Encourage or enable any other individual to do any of the above or otherwise violate this Agreement.
We take copyright seriously at Intuit. We respect the copyrights of others and expect you to do the same. If you repeatedly infringe the copyrights of others, we may terminate your account.
Intuit may terminate your use of the Platform based on our reasonable suspicion that your activities, business or products are objectionable or promote, support or engage in any of the prohibited
uses described above.
Intuit may (but has no obligation to) monitor the use of the Platform or Content and may edit or remove any Content. We may disclose any information necessary to satisfy our legal obligations,
protect Intuit or its customers or operate the Platform properly.
Community Forums; Feedback
You may be able to communicate with others through our Platform, but please be respectful. Suggestions you provide for improving our Platform may be used freely by us.
The Platform may include a community forum or other social features that enable you to exchange Content and information with other users of the Platform and the public. Intuit does not support
and is not responsible for the Content in these community forums. Please be respectful when you interact with other users. Do not reveal information that you do not want to make public. Users may
post hypertext links to content of third parties for which Intuit is not responsible.
You may provide Intuit your feedback, suggestions or ideas for the Platform. You grant Intuit a perpetual, worldwide, fully transferable, sublicensable, irrevocable, fully paid-up, royalty free license to
use your feedback, suggestions and ideas in any way, including in future modifications of the Platform, other products or services, advertising or marketing materials.
Termination
You may cancel your account, and Intuit may suspend or terminate your use of the Platform.
This Agreement is effective until your subscription expires or you cancel your account or Intuit terminates this Agreement (or your account). Intuit may terminate this Agreement (and your account) or
suspend the Platform at any time at our discretion.
Effect of Termination
You must stop using the Platform once your subscription expires or you cancel your account (or if this Agreement or your account is terminated).
Upon expiration of your subscription or cancellation of your account, or Intuit’s termination of your account or this Agreement, you must immediately stop using the Platform and pay all fees for
Platform used. No expiration or termination will affect your obligation to pay all fees due or that may have accrued through the effective date of expiration or termination or entitle you to any refund.
Survival
There are a few parts of this Agreement that will continue to apply after termination.
The following Sections will survive any termination, discontinuation or cancellation of the Platform or your account: “Your Personal Information,” “Payment and Cancellations” (with respect to fees due
and unpaid), “Content and Data,” “Community Forums; Feedback,” “Effect of Termination,” “Disclaimers,” “Limitation of Liability,” “Indemnity Obligations,” “Disputes” and “General Terms
(Miscellaneous)”.
Intuit Communications
We may contact you from time to time to support your use of the Platform.
In order to properly support and serve you, we occasionally need to reach out and contact you and may do so in a variety of ways such as via text message, email or messaging functionality in the
Platform. We want to provide you options for receiving communications from us, and as such, you may opt-in or opt-out of receiving certain types of communications from us or sign up to receive
certain kinds of messages from us, depending on the Platform. You will need to notify us of any changes to your contact details to ensure your preferences are updated.
Disclaimers
We don’t make any warranties about the Platform except as expressly stated in this Agreement.
The only warranties we make about the Platform are (1) stated in this Agreement, or (2) as provided under applicable laws. The Platform is otherwise provided “as-is,” and we do not
make any other warranties about the Platform. Unless required by law, we do not provide implied warranties, such as the implied warranties of merchantability, fitness for a particular
purpose, data loss, merchantability or non-infringement, or any warranties with respect to the accuracy, reliability or availability of any content (including any Content) or information
made available in the Platform. If the exclusions for implied warranties do not apply to you, any implied warranties are limited to 60 days from the date of purchase or delivery of the
Platform, whichever is sooner.
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Limitation of Liability
Our liability is limited when it comes to issues you may encounter with our Platform.
Other than the rights and responsibilities described in this Agreement and as allowed by applicable law, Intuit won’t be responsible for any losses.
● The total aggregate liability of Intuit and our third party providers, licensors, distributors or suppliers (“Intuit Parties”) arising out of or relating to this Agreement is limited to the greater of:
(1) the fees that you paid to use the relevant Service(s) in the 12 months before the breach or (2) $100.
● The Intuit Parties won’t be responsible for the following:
○ loss of data, profits, revenues, business opportunities, goodwill or anticipated savings;
○ indirect or consequential loss; or
○ punitive damages.
The above limitations apply even if the Intuit Parties have been advised of the possibility of such damages. This Agreement sets forth your exclusive remedy with respect to the Platform and its use.
If you’re legally exempt from certain responsibilities, including indemnification, then those responsibilities don’t apply to you under this Agreement. For example, the United Nations enjoys certain
immunities from legal obligations, and this Agreement doesn’t override those immunities.
Indemnity Obligations
If someone sues us because you used the Platform unlawfully or didn’t follow our rules, you will be responsible for any harm to us.
You will indemnify and hold harmless the Intuit Parties for any losses, damages, judgments, fines, costs and expenses (including legal fees) in connection with any claims arising out of or relating to
your unlawful or unauthorized use of the Platform or violation of this Agreement. Intuit reserves the right, in its sole discretion and at its own expense, to assume the exclusive defense and control of
any claims. You agree to reasonably cooperate as requested by Intuit in the defense of any claims.
Disputes
In the event we are unable to resolve any dispute through an informal dialogue, a third-party arbitrator or small claims court will help us resolve any disputes we might have, and any disputes
will be resolved on an individual basis rather than as a class action.
If you are a U.S. customer:
You and Intuit agree that, except as provided below, any dispute, claim or controversy arising out of or relating in any way to the Platform, its Services or this Agreement (a “Claim”)
will be determined by binding arbitration or small claims court, instead of in courts of general jurisdiction.
Either you or Intuit can seek to have a Claim resolved in small claims court if all the requirements of the small claims court are satisfied. Either you or Intuit may seek to have a Claim resolved in small
claims court in your county of residence or the small claims court in closest proximity to your residence, and you may also bring a Claim in small claims court in the Superior Court of California,
County of Santa Clara.
Arbitration is more informal than a lawsuit in court. Arbitration uses a neutral arbitrator instead of a judge or jury, may allow for more limited discovery than in court and is subject to very limited
review by courts. Arbitrators can award the same damages and relief that a court can award. You agree that the U.S. Federal Arbitration Act governs the interpretation and enforcement of this
arbitration provision and that you and Intuit are each waiving the right to a trial by jury or to participate in a class action. This arbitration provision shall survive termination of this Agreement and/or
the termination of your Platform.
If you elect to seek arbitration, you must first send to Intuit a written Notice of your Claim ("Notice of Claim"). The Notice of Claim to Intuit should be sent in care of our registered agent Corporation
Service Company, 251 Little Falls Drive, Wilmington, DE 19808. The Notice of Claim should include both the mailing address and email address you would like Intuit to use to contact you. If Intuit
elects to seek arbitration, it will send, by certified mail, a written Notice of Claim to your address on file. A Notice of Claim, whether sent by you or by Intuit, must (a) describe the nature and basis of
the claim or dispute; and (b) set forth the specific amount of damages or other relief sought.
You and Intuit agree that good-faith informal efforts to resolve disputes often can result in a prompt, low-cost and mutually beneficial outcome. You and Intuit therefore agree that, after a Notice of
Claim is sent but before either you or Intuit commence arbitration or file a claim in small claims court against the other, we will personally meet, via telephone or videoconference, in a good-faith
effort to confer with each other and try to resolve informally any Claim covered by this Agreement. If you are represented by counsel, your counsel may participate in the conference as well, but you
agree to fully participate in the conference. Likewise, if Intuit is represented by counsel, its counsel may participate in the conference as well, but Intuit agrees to have a company representative fully
participate in the conference. The statute of limitations and any filing fee deadlines shall be tolled while the parties engage in the informal dispute resolution process required by this paragraph.
If we do not reach an agreement to resolve the Claim within sixty (60) days after the Notice of Claim is received, you or Intuit may commence an arbitration proceeding by filing a Demand for
Arbitration or, alternatively, by filing a Claim in small claims court. You agree that you may not commence any arbitration or file a claim in small claims court unless you and Intuit are unable to resolve
the claim within 60 days after we receive your completed Notice of Claim and you have made a good faith effort to resolve your claim directly with Intuit during that time. If a Claim qualifies for small
claims court, but a party commences an arbitration proceeding, you and Intuit agree that either party may elect instead to have the Claim resolved in small claims court, and upon written notice of a
party’s election, the American Arbitration Association (“AAA”) will administratively close the arbitration proceeding. Any dispute about whether a Claim qualifies for small claims court shall be
resolved by that court, not by an arbitrator. In the event of any such dispute, the arbitration proceeding shall remain closed unless and until a decision by the small claims court that the Claim should
proceed in arbitration. You may download or copy a form of notice and a form to initiate arbitration at www.adr.org or by calling 1-800-778-7879. The arbitration will be conducted by the AAA
before a single AAA arbitrator under the AAA’s rules, which are available at www.adr.org or by calling 1-800-778-7879, except as modified by this Agreement. Unless Intuit and you agree otherwise,
any arbitration hearings will take place in the county (or parish) of either your residence or of the mailing address you provided in your Notice of Claim.
The arbitrator will be either (1) a retired judge or (2) an attorney specifically licensed to practice law in the state of California or the state of your residence and will be selected by the parties from the
AAA’s National Roster of arbitrators. The arbitrator will be selected using the following procedure: (a) the AAA will send the parties a list of five candidates meeting this criteria; (b) if the parties
cannot agree on an arbitrator from the list, each party shall return its list to the AAA within 10 days, striking up to two candidates, and ranking the remaining candidates in order of preference; (c) the
AAA shall appoint as arbitrator the candidate with the highest aggregate ranking; and (d) if for any reason the appointment cannot be made according to this procedure, the AAA may exercise its
discretion in appointing the arbitrator. The arbitrator is bound by this Agreement. Except as otherwise provided below, all issues are for the arbitrator to decide, including issues relating to the scope
and enforceability of this arbitration provision.
The parties agree that an administrative conference with the AAA shall be conducted in each arbitration proceeding, and you and an Intuit company representative shall appear at the administrative
conference via telephone. If you fail to appear at the administrative conference, regardless of whether your counsel attends, the AAA will administratively close the arbitration proceeding without
prejudice, unless you show good cause as to why you were not able to attend the conference.
The arbitrator shall issue a reasoned written decision sufficient to explain the essential findings and conclusions on which the award is based. The award shall be binding only among the parties and
shall have no preclusive effect in any other arbitration or other proceeding involving a different party. Intuit will not seek to recover its attorneys’ fees and costs in arbitration from you unless the
arbitrator finds that either the substance of your claim or the relief sought in your Demand for Arbitration was frivolous or was brought for an improper purpose (as measured by the standards set
forth in Federal Rule of Civil Procedure 11(b)). Judgment on any award may be entered in any court having jurisdiction. This agreement to arbitrate shall not preclude any party to the arbitration from
at any time seeking injunctions or other forms of equitable relief in aid of arbitration from a court of appropriate jurisdiction including whether a Demand for Arbitration is filed in violation of this
Agreement.
Unless you or Intuit seek to have a Claim resolved in small claims court, the arbitrator shall determine all issues of liability on the merits of any Claim asserted by you or Intuit and may award
declaratory or injunctive relief only in favor of the individual party seeking relief and only to the extent necessary to provide relief warranted by that party's individual claim. To the extent that you or
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Intuit prevail on a Claim and seek public injunctive relief (that is, injunctive relief that has the primary purpose and effect of prohibiting unlawful acts that threaten future injury to the public), the
entitlement to and extent of such relief must be litigated in a civil court of competent jurisdiction and not in arbitration. The parties agree that litigation of any issues of public injunctive relief shall be
stayed pending the outcome of the merits of any individual Claims in arbitration. Before a court of competent jurisdiction issues any public injunctive relief, it shall review the factual findings of the
arbitration award on which any injunction would issue with no deference to the arbitrator.
Payment of all filing, administration and arbitrator fees will be governed by the AAA Rules. You are required to pay AAA’s initial filing fee, but Intuit will reimburse you for this filing fee at the
conclusion of the arbitration to the extent it exceeds the fee for filing a complaint in a federal or state court in your county of residence or in Santa Clara County, California. If the arbitrator finds that
either the substance of your Claim or the relief sought in your Demand for Arbitration was frivolous or was brought for an improper purpose (as measured by the standards set forth in Federal Rule
of Civil Procedure 11(b)), then the payment of all fees will be governed by the AAA Rules and Intuit will not reimburse your initial filing fee. The parties agree that the AAA has discretion to modify the
amount or timing of any administrative or arbitration fees due under the AAA Rules where it deems appropriate, provided that such modification does not increase the AAA fees to you or Intuit and
you and Intuit waive any objection to such fee modification.
You and Intuit agree that each may bring claims against the other only in your or its individual capacity and not as a plaintiff or class member in any purported class or representative
proceeding. Further, if you have elected arbitration, unless both you and Intuit agree otherwise, the arbitrator may not consolidate any other person's Claims with your Claims and may not otherwise
preside over any form of a representative or class proceeding. If Intuit believes that any Claim you have filed in arbitration or in court is inconsistent with the limitations in this paragraph, then you
agree that Intuit may seek an order from a court determining whether your Claim is within the scope of the Class Action Waiver. If this Class Action Waiver is found to be unenforceable, then the
entirety of this Disputes Section shall be null and void.
General Terms (Miscellaneous)
Governing Law
The laws of California govern this agreement and any disputes that may arise.
California law and the Federal Arbitration Act will govern all disputes arising out of or relating to the Platform, this Agreement and any Additional Terms, regardless of conflict of laws rules.
Global Trade and Export Restrictions
You are allowed to use the Platform under the laws of the U.S. and other applicable territories. The Platform shall not be exported to countries that are embargoed by the U.S. government.
You agree that you and anyone who uses the Platform, including the related website, online services and mobile application, are not prohibited from using the Platform under the laws and
regulations of the U.S. or other applicable jurisdiction. For example, you are not on the U.S. Treasury Department’s list of Specially Designated Nationals or any other similar prohibition. You
acknowledge that the Platform may be subject to restrictions under applicable U.S. export control laws and regulations. You agree that you will comply with these export control and sanctions laws
and regulations and will not transfer or provide any part of the Platform, in violation of these laws and regulations, directly or indirectly.
Waiver
If we waive some of our rights under this agreement, it doesn’t mean we waive our rights in other circumstances.
Intuit’s failure to act or enforce any of its rights does not constitute a waiver of any of our rights. Any waiver by Intuit of any of the provisions in the Agreement must be made in writing and signed by a
duly authorized officer of Intuit.
Assignment
You can’t transfer this agreement or your right to use the Platform to someone else without our permission.
Intuit may assign this Agreement to any party at any time without notice to you. You may not assign your rights under this Agreement, by operation of law or otherwise, without our consent. Any
attempts to do so without our consent will be void.
Severability
If a court voids a term of this agreement, the other terms will not be affected.
If any provision of this Agreement is unlawful, void or unenforceable for any reason, then that provision will be severed and the remaining provisions will remain in full force and effect.
Contact Information
If you have any questions about the Platform or this Agreement, please contact Intuit support.
B. ADDITIONAL TERMS AND CONDITIONS FOR TURBOTAX ONLINE TAX PREPARATION SERVICES
The definition of the “Services” includes TurboTax Online (including TurboTax Free Edition, Deluxe, Premier and Self-Employed), TurboTax Live and TurboTax Live Full Service, which
are each versions of the Services. Your use of the Services provided by Intuit are subject to the General Terms of Service above and these Additional Terms and Conditions which
govern your use of the Services indicated below. These Additional Terms and Conditions shall prevail over any conflict or inconsistency with the General Terms of Service above.
1. License Grant and Restrictions
1.1 Personal License. Intuit hereby grants you a limited personal license to use the version of the Services for which you have paid Intuit the applicable fee(s), if any, and, after proper registration,
solely to prepare or have prepared your valid 2021 federal and state tax return(s), to file the same electronically after any payment of applicable additional fees and/or to print such federal and state
tax return(s).
1.2 Number of Returns. You may use certain versions of the Services to self-prepare and electronically file your federal tax return and/or state tax return. After proper registration and payment is
made, you may file your return electronically or by printing and mailing it to the Internal Revenue Service ("IRS") and/or appropriate state agency. No more than five (5) accounts and five (5)
corresponding federal and/or state tax returns (e.g., for a family of five) may be created, purchased and filed using any one email address.
1.3 No Professional Use. You may not use the Services to prepare tax returns, schedules or worksheets on a professional or commercial basis (i.e., for a preparer's or other fee or consideration).
2. ADDITIONAL SERVICES
2.1 State Services. The term “Services” includes any state version of TurboTax Online software made available through this website, through the TurboTax Live version of the Services and/or through
the TurboTax Live Full Service version of the Services, which state version may be subject to additional fees as described on the website.
2.2 Electronic Filing Services.
1. If you choose to file your return electronically, the tax return will be forwarded to Intuit's Electronic Filing Center, where it will be converted to and stored in a standardized format and then
transmitted to the applicable federal and/or state taxing authority. You are responsible for verifying the status of your return to confirm that it has been received and accepted by the
applicable taxing authority and, if necessary, for filing it manually in the event that the taxing authority rejects your electronically filed return (e.g., taxpayer name and SSN don't match). You
agree to review your tax return for indications of obvious errors before electronically filing or mailing it. To the extent required by applicable law and regulation, Intuit stores and maintains
information that you provide to Intuit. Intuit is not required or obligated to provide you with a copy of your tax return if you are using a free version of TurboTax or at any time after October 15
of the applicable tax filing season unless otherwise included with the version of TurboTax you selected or required to be provided by law in response to a valid data rights request. In the event
your tax return is not accessible from Intuit and you have not downloaded a copy, you must contact the IRS.
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2. The IRS typically begins accepting electronically filed returns in or around mid-January of the applicable tax filing season. If you complete a federal tax return prior to when Turbotax begins
accepting and processing electronically filed returns and you want to file it electronically, you will need to log in to TurboTax Online on or after the date Intuit first begins processing electronic
filings to complete the electronic filing process. You can file a Tax Year 2021 federal tax return through the Services through October 15, 2022 or as otherwise permitted by the IRS and
supported by Intuit. The IRS requires Intuit to notify it, in connection with the electronic filing of your tax return, of certain information about the computer and account from which the return
originated (for example, Internet Protocol (“IP”) address) and whether the email address of the person electronically filing the return has been collected. By using this Service to prepare and
submit your tax return, you consent to the disclosure to the IRS and any other taxing or revenue authority of all information relating to your access and use of the Electronic Filing Services.
3. Amended Returns. For paid versions of the Services, you can file an amended tax return for Tax Year 2021 through the Services through October 15, 2022 or as otherwise permitted by the IRS
and supported by Intuit. Users of paid versions of the Services who have used the Services for preparing the two immediate prior tax years’ returns and who need to file an amended tax return
for either of the two immediate prior tax years will, at Intuit’s discretion, be provided a link to a downloadable version of TurboTax desktop software and tax information may be transferred via
your tax data file, at no additional cost. For such users of paid versions of the Software, your amended return may need to be completed in the downloadable version of TurboTax desktop and
not in TurboTax Online. You agree to this process for amended tax returns and, if you choose to utilize it, you agree you will accept the then-current terms of the downloadable TurboTax End
User License Agreement. Filing of amended returns via the Services and/or TurboTax desktop software is not included with free versions of the Service.
4. If you are filing one or more state tax returns, then by using a computer system and software to prepare and transmit return(s) electronically, you consent to the disclosure of all information
pertaining to your access and use of the system and software to the state taxing authority in which you are filing the returns, as applicable by law, and to the transmission of your tax return(s).
2.3 Pricing.
Pricing for the various versions of the Services is determined based on the time when you pay to use a version of the Services. Depending on the version you choose, this will occur either when
starting your use of the Services, when the preparation of your return is complete, or when your return is otherwise ready to be printed or filed. For TurboTax Live and TurboTax Live Full Service, Intuit
may charge you for these Services before the Services are performed or once our expert prepares your return, whether or not you choose to file it. All prices are subject to change without notice. If
you chose a version of the Services that doesn’t require you to pay until your return is prepared and ready to file you should confirm that the pricing for your use of the Services has not changed since
you first started using the Services, particularly if some time has passed between the date you started your tax return and the date you or Intuit finished preparing it and/or you are ready to pay for
and file (or print) it. The price for your use of various part(s) or version(s) of the Services is the published price at the time you pay for such part(s) or version(s) of the Services. Your price will not
change once you pay for your use of such part(s) or version(s) of the Services.
2.4 Import Services.
(a) The Services may include a feature that allows you to import, where applicable, certain information from participating financial institutions, payroll processors, personal financial software,
business financial software such as QuickBooks and charitable deduction information from ItsDeductible branded service. You are responsible for verifying the accuracy of the information that is
imported.
(b) The Services also may include functionality designed to read data from images (for example, W-2s, other tax forms or credit cards used for payment) photographed using a mobile device or
computer. This functionality is limited to those forms or items that the Services can read. If the form or other item you photograph and submit through the Services is not supported or unreadable,
you may need to manually enter your data.
(c) You may be offered the ability to import data from other sources in addition to those above. You may provide us with your authorization and information to allow us to obtain your data from third
parties on your behalf to use the Services or any third party service that you select. You represent that you have the necessary rights to grant us access to your accounts with third parties. Third parties
are not affiliated with or endorsed or sponsored by us.
2.5 TurboTax Live. You may choose to purchase the TurboTax Live version of the Services, wherein an Intuit representative and/or outsourced tax preparer (together, “Expert(s)”) will assist with
preparation of your federal and/or state tax return(s) and/or prepare your return for you with your active participation and answer certain questions you may have about your tax return. If you choose
to use TurboTax Live versions of the Services, you agree:
a) Some tax topics or situations may not be included as part of the Service, which shall be determined in Intuit’s sole discretion. The tax assistance provided to you by the Expert will be based on
information you provide. You understand and agree that if you provide incorrect or incomplete information, the assistance provided to you may not be accurate. You agree you are responsible for
the overall accuracy of the data in your final tax return(s).
b) If you request a full review of your tax return or if the assistance with your tax return requires significant oversight and actual preparation, or you choose to use the TurboTax Live Full Service
product, an Expert may be obligated under IRS rules to sign your return as the preparer and will then have primary responsibility for the preparation of your return. You are still responsible for the
information you provide, for providing all necessary information and documents and for reviewing your return before it is filed to verify its overall completeness and accuracy. You also understand
and agree that once you delegate preparation of your tax return to the Expert, you will no longer be able to prepare your tax return yourself using the Services. You will be required to timely provide
your Expert with access to all necessary supporting tax documentation (W-2s, 1099s, etc.) as may be requested by the Expert, as well as to provide or enter any other necessary information at your
Expert’s request.
(c) Tax returns prepared by an Expert shall be subject to the following additional terms and conditions:
1. No Tax Planning. The Services do not include tax planning services. Your Expert may provide suggestions or guidance or recommend tax savings strategies, however it is up to you to decide
whether to follow such suggestions, and it is your sole decision and responsibility whether to act on any recommended actions. Where applicable, we may recommend estimated quarterly tax
payment amounts based on your current year tax return and information you provide about future income. You are responsible for deciding whether and how to make such payments and for
adjusting such payments if your financial situation changes.
2. Not All Tax Situations Included. Intuit, in its sole discretion and at any time, may determine that certain tax topics, forms and/or situations are not included as part of the Services and may
decline to provide such Services.
3. No Legal Advice. The Services do not provide or include any legal or investment advice, tax, estate or investment planning, or other areas of advice other than the federal and state income tax
preparation and filing advice included with the Services.
4. Your Expert. Your engagement with your assigned Expert will conclude with either your Expert notifying you that your tax returns are ready to file within TurboTax Online, notifying you that
additional information is needed and you timely fail to respond to such requests, e-filed tax returns being sent and accepted by the taxing authority or delivery of electronic copies of completed
tax returns to you (if you are paper filing by mail). Intuit may from time to time, in its sole discretion, need to assign another Expert to complete your tax return due to expertise, volume,
availability or other circumstances. More than one Expert or other Intuit employee, assistant or contractor may work with your Expert to assist with collecting and reviewing your documents and
other information, entering data, scheduling any contact with you and/or reviewing your tax return for accuracy. Intuit and/or its Expert may terminate your engagement, access to, and use of
the Services if you do not respond to Expert requests within a reasonable amount of time.
5. Information You Provide. We will assist in the preparation of your tax returns solely based on the information you have provided. You will provide this information by uploading relevant
documents in an acceptable electronic format and in written responses to your Expert’s questions and/or requests through our secure portal. It is your responsibility to promptly provide all
information that we require for the preparation of complete and accurate tax returns. You represent that all information you provide is true and accurate and that you have the right to share the
information with Intuit. We have the right, in our sole discretion, to cancel your TurboTax Live Services if you fail to provide requested information or do not respond to the Expert’s requests in a
timely manner. If you provide any of your information within less than 10 days of the tax filing deadline, we may ask you to file an extension. If you decline to file an extension we have the right to
decline to provide TurboTax Live Services to you. Through the TurboTax Live Services, the preparation of tax returns cannot be relied upon to discover errors, fraud or other irregularities in prior
year tax returns or other documents, should any exist. We will not independently audit or otherwise verify the information you submit, although we may ask you for clarification of some of the
information.
6. Record Keeping. You are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of your tax returns. While Intuit will store certain tax records in
accordance with IRS and/or state rules, you acknowledge and agree that you must comply with federal and state recordkeeping requirements, including those of the IRS. Intuit has no obligation
to store your tax documents other than to the extent required by applicable law and regulation. You agree to hold Intuit harmless from any liability, including but not limited to, additional tax,
penalties, interest and professional fees resulting from the disallowance of tax deductions due to inadequate documentation.
7. Approval of Final Tax Returns. You are responsible for the overall accuracy of the data in your final tax return(s). We will not file any tax returns until we receive your payment for the Services and
your consent to e-file/submit your tax return(s). Your Expert will notify you when your tax return(s) is/are ready to file and Intuit may charge you for the Services at that time, regardless of
whether you decide to proceed with filing. After payment, you will need to download and carefully review an electronic copy of your completed tax return(s) for accuracy and completeness. If
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you identify any errors in your tax return during your review (and before you approve), you agree to promptly notify your Expert and work with the Expert to correct the errors. To approve your
return, you will electronically sign a completed Form 8879, IRS e-file Signature Authorization and any additional applicable state and local authorization forms required to allow Intuit to
electronically file your tax return(s) or to be the preparer of your printed and mailed returns. These forms may use a third party e-signature provider which you agree to use. You agree that with
your electronic signature on these forms you represent that you and any joint filer have received a copy of, reviewed and approved the final tax return(s) as complete and accurate. You and any
joint filer or spouse also agree that, in the case of a jointly-filed return, you and such joint filer or spouse must both sign Form 8879 to complete the approval process.
8. Electronic Filing. Electronic filing may not be available for certain tax returns or in some states. Intuit’s responsibility with respect to e-filing your tax return(s) is limited to using commercially
reasonable efforts to facilitate your transmission of your tax return(s) to the applicable taxing authority who accepts them. If we cannot electronically transmit your tax return, you agree to
manually print and sign the tax return and mail the tax return directly to the respective taxing authority in a timely manner. You will be responsible for postage and mailing of such tax return(s).
When paper tax returns are used, the TurboTax Live Services shall be considered completed when your Expert notifies you that your return(s) are ready to file and access to the final electronic
copies of your return(s) (along with any filing-by-mail instructions) are provided to you.
9. Joint Filers. You agree that for returns with “married filing jointly” filing status, both spouses are deemed to be customers of Intuit and subject to the terms of this Agreement. Both individuals
acknowledge that there is no expectation of privacy between the spouses by Intuit concerning the Services in connection with this Agreement. We shall be at liberty to share with either of you,
without prior consent of the other, partial or completed tax returns, tax documents and other information concerning the preparation of your tax return(s).
10. Specific Tax Situations. We will use reasonable judgment to resolve questions where a tax law may be unclear, to the extent permitted by professional conduct and applicable law and provided
there is substantial authority for doing so. You may request a specific position, provided it is consistent with our understanding of the Internal Revenue Code (“IRC”), tax regulations, Revenue
Rulings, Revenue Procedures, Private Letter Rulings and any related court cases or laws. For tax returns where the Expert is the preparer, if we disagree with the position you request, we may
decline to prepare and sign your return, and you may cease use of the Services and complete your tax return(s) yourself using a method or service other than TurboTax Live.
11. Foreign Account Reporting. The U.S. imposes reporting requirements with respect to persons having certain direct and indirect interests in a foreign bank account or other foreign financial
assets. Failure to comply with these reporting requirements may result in substantial civil and criminal penalties. You are responsible for informing us of all foreign assets, and we may determine
that you are not eligible for TurboTax Live based on your situation with such foreign assets. If we prepare your individual income tax return, you will be responsible for filing any required foreign
tax returns or required foreign account reporting, including FBAR Form 114. You, and not Intuit, assume all liability for any penalties associated with the failure to file, or untimely filing, of any of
these forms.
12. Change or Termination of Services. Intuit reserves the right to refuse to prepare a tax return for any reason in its sole discretion. Additionally, the availability of TurboTax Live Experts or their
ability to meet your tax filing deadlines is subject to reasonable timing allowed, prompt submission and presentation of documents and your prompt response to inquiries or requests for
materials required for your tax return(s). Intuit reserves the right to revoke a delegated tax return for any reason in its sole discretion. TurboTax Live Services for tax preparation and filing of Tax
Year 2021 returns are available through October 15, 2022, and paper filing of any required amended returns by mail, where the Expert is the preparer, are available through November 30,
2022. TurboTax Live also permits you to speak with an Expert regarding supported tax-related Tax Year 2021 questions you may have through December 30, 2022.
2.6 TurboTax Live Full Service. With the TurboTax Live Full Service version of the Services, an Intuit representative and/or outsourced tax preparer (“Expert”) will prepare and electronically file your
federal and/or state tax return(s) for you, subject to the following additional terms and conditions:
a. Service Description.
(i) TurboTax Live Full Service is available only for preparation of your federal and/or state individual income tax return(s) for Tax Year 2021 through October 15, 2022 and paper filing by mail for
any required amended returns is available through November 30, 2022. TurboTax Live Full Service does not include preparation of any prior year returns or other types of tax returns that may be due
to any taxing authority such as property, estate, business, local or sales tax returns. You are solely responsible for determining any other tax filing obligations you may have with the respective taxing
authorities.
(ii) TurboTax Live Full Service also permits you to speak with an Expert regarding supported federal and state individual income tax-related Tax Year 2021 questions you may have through
December 30, 2022.
(iii) TurboTax Live Full Service does not include tax planning services. Your Expert may provide suggestions or guidance or recommend tax savings strategies, however it is up to you to decide
whether to follow such suggestions, and it is your sole decision and responsibility whether to act on any recommended actions. Where applicable, we may recommend estimated quarterly tax
payment amounts based on your current year tax return and information you provide about future income. You are responsible for deciding whether and how to make such payments and for
adjusting such payments if your financial situation changes.
(iv) Intuit, in its sole discretion and at any time, may determine that certain tax topics, forms and/or situations are not included as part of TurboTax Live Full Service and may decline to provide
such Services.
(v) TurboTax Live Full Service does not include any legal or investment advice; tax, estate or investment planning; or other areas of advice.
b. Your Expert. Your engagement with your assigned Expert will conclude with either your Expert notifying you that your tax returns ready to file within TurboTax Online, notifying you that additional
information is needed and you timely fail to respond to such requests, e-filed tax returns being sent and accepted by the taxing authority or delivery of electronic copies of completed tax returns to
you (if you are paper filing by mail). Intuit may from time to time, in its sole discretion, need to assign another Expert to complete your tax return due to expertise, volume, availability or other
circumstances. More than one Expert or other Intuit employee, assistant or contractor may work with your Expert to assist with collecting and reviewing your documents and other information,
entering data, scheduling any contact with you and/or reviewing your tax return for accuracy. Intuit and/or its Expert may terminate your engagement, access to, and use of the Services if you do not
respond to Expert requests within a reasonable amount of time.
c. Information You Provide:
(i) We will prepare your tax returns solely based on the information you have provided. You will provide this information by uploading relevant documents in an acceptable electronic format and
in written responses to your Expert’s questions and/or requests through our secure portal. It is your responsibility to promptly provide all information that we require for the preparation of complete
and accurate tax returns. You represent that all information you provide is true and accurate and that you have the right to share the information with Intuit.
(ii) We have the right, in our sole discretion, to cancel your TurboTax Live Full Service version of the Services if you fail to provide requested information or do not respond to the Expert’s requests
in a timely manner. If you provide any of your information within less than 10 days of the tax filing deadline, we may ask you to file an extension. If you decline to file an extension we have the right to
decline to provide TurboTax Live Full Service to you.
(iii) Through TurboTax Live Full Service, the preparation of tax returns cannot be relied upon to discover errors, fraud or other irregularities in prior year tax returns or other documents, should
any exist. We will not independently audit or otherwise verify the information you submit, although we may ask you for clarification of some of the information.
d. Record Keeping. You are responsible for maintaining adequate documentation to substantiate the accuracy and completeness of your tax returns. While Intuit will store certain tax records in
accordance with IRS and/or state rules, you acknowledge and agree that you must comply with federal and state recordkeeping requirements, including those of the IRS. Intuit has no obligation to
store your tax documents other than to the extent required by applicable law and regulation. You agree to hold Intuit harmless from any liability, including but not limited to, additional tax, penalties,
interest and professional fees resulting from the disallowance of tax deductions due to inadequate documentation.
e) Approval of Final Tax Returns. You are responsible for the overall accuracy of the data in your final tax return(s). We will not file any tax returns until we receive your payment for the Services and
your consent to e-file/submit your tax return(s). Your Expert will notify you when your tax return is ready to file, and Intuit may charge you for the Services at that time, regardless of whether you
decide to proceed with filing. After payment, you will need to download and carefully review an electronic copy of your completed tax return(s) for accuracy and completeness. If you identify any
errors in your tax return during your review (and before you approve), you agree to promptly notify your Expert and work with the Expert to correct the errors. To approve your return, you will
electronically sign a completed Form 8879, IRS e-file Signature Authorization and any additional applicable state and local authorization forms required to allow Intuit to electronically file your tax
return(s). These forms may use a third party e-signature provider which you agree to use. You agree that with your electronic signature on these forms you represent that you and any joint filer have
received a copy of, reviewed and approved the final tax return(s) as complete and accurate. You and any joint filer or spouse also agree that, in the case of a jointly-filed return, you and such joint filer
or spouse must both sign Form 8879 to complete the approval process.
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f) Electronic Filing. Electronic filing may not be available for certain tax returns or in some states. Intuit’s responsibility with respect to e-filing your tax return(s) is limited to using commercially
reasonable efforts to facilitate your transmission of your tax return(s) to the applicable taxing authority who accepts them. If we cannot electronically transmit your tax return, you agree to manually
print and sign the tax return and mail the tax return directly to the respective taxing authority in a timely manner. You will be responsible for postage and mailing of such tax return(s). When paper tax
returns are used, the Services shall be considered completed when your Expert notifies you that your return is ready to file and access to the final electronic copies of your return (along with any
filing-by-mail instructions) are provided to you.
g) Joint Filers. You agree that for returns with “married filing jointly” filing status, both spouses are deemed to be customers of Intuit and subject to the terms of this Agreement. Both individuals
acknowledge that there is no expectation of privacy between the spouses by Intuit concerning the Services, in connection with this Agreement. We shall be at liberty to share with either of you,
without prior consent of the other, partial or completed tax returns, tax documents and other information concerning the preparation of your tax return(s).
h) Specific Tax Situations. We will use reasonable judgment to resolve questions where a tax law may be unclear, to the extent permitted by professional conduct and applicable law and provided
there is substantial authority for doing so. You may request a specific position, provided it is consistent with our understanding of the IRC, tax regulations, Revenue Rulings, Revenue Procedures,
Private Letter Rulings and any related court cases or laws. For TurboTax Full Service, where the Expert is the preparer, if we disagree with the position you request, we may decline to prepare and sign
your return and you may cease use of the Services and complete your return(s) yourself using a method or service other than TurboTax Live Full Service.
i) Foreign Account Reporting. The U.S. imposes reporting requirements with respect to persons having certain direct and indirect interests in a foreign bank account or other foreign financial assets.
Failure to comply with these reporting requirements may result in substantial civil and criminal penalties. You are responsible for informing us of all foreign assets and we may determine that you are
not eligible for TurboTax Live Full Service based on your situation with such foreign assets. If we prepare your individual income tax return, you will be responsible for filing any required foreign tax
returns or required foreign account reporting, including FBAR Form 114. You, and not Intuit, assume all liability for any penalties associated with the failure to file, or untimely filing, of any of these
forms.
j) Change or Termination of Services. Intuit reserves the right to refuse to prepare a tax return for any reason in its sole discretion. Additionally, the availability of TurboTax Live Full Service Experts or
their ability to meet your tax filing deadlines is subject to reasonable timing allowed, prompt submission and presentation of documents and your prompt response to inquiries or requests for
materials required for your tax return(s).
3. HELP AND SUPPORT
Intuit may use a variety of methods (e.g., in-product, widgets, Internet, remote access, online community, chat, e-mail, video and phone) to provide technical support and customer service in
connection with the Services. The terms and conditions governing the offering of this support, which may require the payment of an additional fee, are subject to change as announced by Intuit from
time to time. If you choose to allow an Intuit agent to have remote access to your computer via the Internet to provide help, you should close other browsers or applications or follow other
instructions to enable such access. Consult the TurboTax Online Help and Support website for the most up-to-date information relating to this support and any associated charges. Except as
otherwise provided herein, the Services are not accessible after October 15 of each applicable year and shall not be supported beyond that date.
4. GUARANTEES
(a) TurboTax Accurate Calculation Guarantee. Intuit works to ensure the accuracy of the calculations on every form prepared using the Services.
(i) If you are a registered user and you pay an IRS or state penalty and/or interest solely because of a calculation error on a form prepared for you using TurboTax Online, and not as a result of,
among other things, your failure to enter all required information accurately, willful or fraudulent omission or inclusion of information on your tax return, misclassification of information on the tax
return or failure to file an amended return to avoid or reduce an applicable penalty/interest after Intuit announced updates or corrections to the TurboTax Online software in time for you to file an
amended return, then Intuit will pay you in the amount of the IRS or state penalty and/or interest paid by you to the IRS or state. In this regard, you are responsible for keeping Intuit apprised promptly
of any change in your email address, mailing address and/or phone number so that you can be notified of such updates or corrections. The Accurate Calculation Guarantee does not apply to tax
forms completed in which the data is entered directly by you, rather than through the use of the in-product TurboTax interview guidance. You are responsible for paying any additional tax liability you
may owe and providing any other information Intuit reasonably requests to validate your claim. A "registered user" is a user from whom Intuit has received the information necessary to permit such
person to print or electronically file a tax return prepared using the TurboTax Online Services and who complies with the terms and conditions of this Agreement.
(ii) If you believe such a calculation error occurred, you must notify Intuit as soon as you learn of the mistake (and in no event later than thirty (30) days after the penalty or interest is assessed and
within the applicable federal and/or state tax filing statute of limitation). For the most current information go to https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-
under-the-turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065 or send by mail to TurboTax Accuracy Guarantee, 2800 E Commerce Center Place, Tucson, AZ 85726-8867.
Intuit will then contact you promptly to resolve the issue. To validate the claim, Intuit may require your TurboTax tax data file (particularly if you did not electronically file), a copy of the IRS/state
notice and any other documents to support the income or deduction.
(b) Maximum Refund (or Tax Savings) Guarantee or Your Money Back.
(i) If you are a registered user of TurboTax and you receive a larger refund amount or pay a smaller tax due amount using a tax preparation method other than TurboTax, then Intuit will refund to
you the applicable purchase price paid by you for the federal and/or state TurboTax Services you purchased. TurboTax Free Edition customers are entitled to payment of $30. Claims must be
submitted within sixty (60) days of the date you filed your tax return using TurboTax but no later than December 15 of the applicable tax filing season. All other fees are excluded, including electronic
filing fees, Audit Defense, Refund Processing Service and technical support fees. This guarantee cannot be combined with the Satisfaction Guarantee below.
(ii) To qualify, the larger refund or smaller tax due cannot be attributed to variations in data you provided for tax preparation or for positions taken by you or your preparer that are contrary to
the law. If you received a larger refund amount or pay a smaller tax due using a tax preparation method other than TurboTax, you must notify Intuit within sixty (60) days of the date you filed your tax
return with the following documents: (1) copy of your TurboTax store sales receipt or shipment packing slip, (2) copy of your proof of payment for another tax preparation method (if applicable), (3)
copy of your TurboTax data file, (4) copy of the printed return from the other tax preparation method and (5) letter stating your refund or tax due amount using TurboTax and your refund or tax due
amount using another tax preparation method. For the most current information available, go to https://ttlc.intuit.com/questions/1908546-maximum-refund-or-tax-savings-guarantee-or-your-money-
back or send by mail to TurboTax Maximum Refund Guarantee, 2800 E Commerce Center Place, Tucson AZ 85726-8867. Please use a traceable mailing method and maintain copies of submitted
items for your records. Claims of non-payment will require photocopy substantiation of all required items. Please allow up to 6 weeks for processing and delivery. If after 8 weeks you have not
received your check, contact us at the TurboTax support website. Any materials submitted to Intuit are understood to be non-returnable.
(c) ) Satisfaction Guaranteed (or Guaranteed Easy). Some versions of the Services may allow you to use the TurboTax Services without charge up to the point you decide to print or electronically file
your tax return. Printing or electronically filing your return reflects your satisfaction with Service and your acknowledgement that you understand that you are voluntarily paying for the Service, at
which time you will be required to pay or register for the Services.
(d) Audit Support Guarantee.
(i) If you are a registered user of TurboTax and you receive an audit letter from the IRS or State Department of Revenue relating to your current year TurboTax return, then Intuit will provide free
audit guidance (what to expect and how to prepare) from a tax professional available to help answer your audit questions regarding your audited returns filed with TurboTax for the current tax year
(2021) and the past two tax years (2020 and 2019). Audit Support Guarantee is applicable to Federal and State audit letters and/or notices. We will not be your representative or provide legal advice.
If we are not able to connect you to one of our tax professionals for audit guidance, then you are entitled to a refund of the applicable purchase price paid by you for the federal and/or state
TurboTax Services you purchased for the applicable tax year. TurboTax Federal Free Edition customers are entitled to payment of $30. Claims must be submitted within sixty (60) days of the date you
received your audit guidance but no later than June 15, three years following the applicable tax filing season. All other fees are excluded, including electronic filing fees, Audit Defense, Refund
Processing Service and technical support fees. This Guarantee cannot be combined with any other Guarantee. Excludes TurboTax Business (forms 1065, 1120, 1120S, and 1041).
(ii) To qualify, you must successfully e-file or print and mail your individual federal and any state income tax return(s) (with paid or qualifying free federal return) using TurboTax. Claims must be
submitted to Intuit within sixty (60) days of the date you received your audit guidance but no later than June 15, three years following the applicable tax filing season, by submitting a claim with the
following documents: (1) copy of your TurboTax proof of payment and (2) IRS or State audit letter. Send the claim by mail to TurboTax Audit Support Guarantee, 2800 E Commerce Center Place,
Tucson, AZ 85726-8867. For the most current information available, go to https://ttlc.intuit.com/questions/1901504-what-is-the-turbotax-audit-support-guarantee. Please use a traceable mailing
method and maintain copies of submitted items for your records. Claims of non-payment will require photocopy substantiation of all required items. Please allow up to 6 weeks for processing and
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delivery. If after 8 weeks you have not received your check, contact us. To validate your claim, and as a precondition of refund payment, Intuit may require your TurboTax data file for the applicable
tax year and/or other supporting information such as copies of your printed tax returns. Any materials submitted to Intuit are understood to be non-returnable.
(e) TurboTax 100% Accurate, Expert Approved Guarantee. The following guarantee shall apply only to TurboTax Live and TurboTax Live Full Service.
(i) If you are a registered user of TurboTax Live or TurboTax Live Full Service and you pay an IRS or state penalty and/or interest solely because of an error the Expert made while preparing your
return, providing topic-specific tax advice, a section review or on a form signed by the Expert and not as a result of, among other things, your failure to provide all required information accurately,
willful or fraudulent omission or inclusion of information for your tax return, misrepresentation of your tax information or failure to file your tax return on time or to take other action requested by the
Expert, then Intuit will pay you the amount of the IRS or state penalty and/or interest paid by you to the IRS or state. If applicable, at Intuit’s reasonable sole discretion, we may also provide you with
an amended tax return with no additional fee. You are responsible for keeping Intuit apprised promptly of any change in your email address, mailing address and/or phone number so that you can
be notified of updates or corrections. You are also responsible for paying the TurboTax Live or TurboTax Live Full Service fees, any tax liability you still may owe and providing any other information
Intuit reasonably requests to validate your claim. A "registered user" is a user from whom Intuit has received the information necessary to provide TurboTax Live Full Service and who complies with the
terms and conditions of this Agreement.
(ii) If you believe such an error occurred, you must notify Intuit as soon as you learn of the mistake (and in no event later than thirty (30) days after the penalty or interest is assessed and within the
applicable federal and/or state tax filing statute of limitation). For the most current information go to https://ttlc.intuit.com/community/charges-and-fees/help/how-do-i-submit-a-claim-under-the-
turbotax-100-accurate-calculation-guarantee-or-100-accurate-expert/00/26065, or send by mail to TurboTax 100% Accurate, Expert Approved Guarantee, 2800 E Commerce Center Place, Tucson, AZ
85706. Intuit will then contact you promptly to resolve the issue. To validate the claim, Intuit may require a copy of the IRS/state notice and any other documents that support the information on your
tax return.
(f) TurboTax Free. Federal and state tax returns filed through TurboTax Free Edition are guaranteed to be free. TurboTax Free Edition is for simple tax returns only. A simple tax return is Form 1040 only
(without any additional schedules). Situations covered:
W-2 income
Limited interest and dividend income reported on a 1099-INT or 1099-DIV
Claiming the standard deduction
Earned Income Tax Credit (EITC)
Child tax credits
Student Loan Interest deduction
Your specific tax return may not qualify based on the additional details of your return.
5. THIRD PARTY SERVICES
To facilitate Third Party Services, Intuit may be required to obtain your explicit consent for disclosure and/or use of your information. By accepting these Third Party Services agreements and consents,
you authorize Intuit to use and disclose your information, including name and address, to the third party for the purpose of making the Third Party Services you choose available to you. For some
Third Party Services, we may submit an application on your behalf using your information to assist you in obtaining a benefit provided by a third party. You acknowledge that Intuit does not determine
if you receive the benefit and that you are solely responsible for meeting the third party’s requirements and complying with applicable laws and regulations. You may need to provide us with your
account number, password, security questions and answers and other necessary login information (“Login Details”). You hereby represent that you have the authority to provide the Login Details to
Intuit, and you expressly appoint Intuit as your, or the third party who owns the Login Details, agent with limited power of attorney to access any Third Party Services on your behalf. You must provide
true and accurate information. A third party’s terms and conditions are generally found on the third party’s website. However, the applicable terms and conditions for the audit defense memberships
are accessible on the TurboTax website. Your participation in Third Party Services indicates your acceptance of such terms and conditions for such Third Party Services. If you sign up for a Third Party
Service that requires access to your information on an ongoing basis and you subsequently want us to stop making your information available to such third party, you should discontinue use of the
Third Party Services. If you sign up for the Refund Processing Service, which may enable you to deduct certain fees and any applicable tax from the proceeds of your tax refund, you
authorize Intuit (and its third party processor) to debit these amounts (excluding the Refund Processing Service Fee) from the bank account you identify as your Direct Deposit Bank
Account in the event that you do not receive a tax refund that is sufficient to pay for them or in the event that your tax refund is delayed. Note that the Refund Processing Service fee is
payable to the bank whether or not your refund is large enough to cover your TurboTax fees. You should evaluate all Third Party Services based on your own assessment and review of their
terms and conditions.
6. User ID and Password Security
You are the only person authorized to use your user ID and password and are responsible for maintaining the confidentiality of your user ID and password. You shall not permit or allow other persons
to have access to or use your user ID and password. You are responsible for the use of the Services under your user ID. If you have not electronically filed or printed your tax return, you must create a
user ID and password in order for you to access your tax return data at a later date. You must remember your user ID and password to electronically transfer your tax return information into next
year's tax return. If you do not complete your Tax Year 2021 return prior to October 15, 2022, your tax return information will be deleted from our systems.
7. Privacy of Personal and Tax Return Information
At Intuit, we place the highest importance on respecting and protecting the privacy of our customers. Our most important asset is our relationship with you. We want you to feel comfortable and
confident when using our products and services and when entrusting your personal and tax return information to us. Our full Global Privacy Statement can be found on the Intuit website. To contact us
with a question, visit our website or write to us at: Privacy Team, TurboTax, 2800 E Commerce Center Place, Tucson, AZ 85706.
You are responsible for protecting the information on your computer such as by installing anti-virus software, updating your software, password protecting your files and not permitting third party
physical or electronic access to your computer or tax files.
You may provide us with your telephone number as part of your customer record or registration or via other methods. You understand and agree that the Services may require multiple sources of
information about you to confirm your identity and help ensure the security of your personal use of TurboTax, often referred to as “multi-factor authentication” (“MFA”). Part of the MFA identity
authentication and verification process may involve Intuit sending text message(s) containing security code(s) to your telephone number. You agree to receive these text message(s) from Intuit
containing security code(s) as part of the MFA process.
With MFA, you also agree and consent to us obtaining and using information from your mobile phone service provider, solely for the purposes of verifying your identity and to compare information
you have provided to Intuit (such information may include from your mobile phone service provider account record: your name, address, email, customer type, customer role, billing type, mobile
device identifiers (IMSI and IMEI) and other mobile phone subscriber details). You also agree that your acceptance of a Third Party Refund Processing Service Agreement will authorize the sharing of
the bank account information you provide to the provider and your authorization to debit your bank account for fees, charges and any applicable taxes owed to Intuit if your tax refund is not
sufficient in amount to pay for those fees, charges and taxes (if any).
By providing a telephone number in connection with the Services, you verify that you are the current subscriber or owner of that number. In addition, you expressly agree that Intuit and its affiliates
may contact you by telephone or text message (including through the use of artificial voices, prerecorded voice messages and/or autodialed calls and text messages) to the telephone number you
provide or to any number provided to us on your behalf, for various purposes including verifying your identity, providing you with important notices regarding your account or use of the Services,
fulfilling your requests or letting you know about promotions or Other Intuit Services we think we may be of interest to you. Your consent to receive automated calls and texts is completely voluntary,
and you may opt out any time. You acknowledge that if you do not opt out, we may contact you even if your number is listed on a do-not-call list or if you cancel your account or terminate your
relationship with us. You do not have to agree to receive promotional calls or texts as a condition of purchasing any goods or services.
You understand and agree, for any text messages sent to you in connection with the Services, that: (a) message frequency may vary, (b) message and data rates may apply, and Intuit is not
responsible for these charges, (c) you may reply HELP for information, (d) you can reply STOP to opt out at any time (though if you do, you agree to receive a single message confirming your opt-out)
and (e) neither Intuit nor mobile carriers involved in the text messaging are liable for delayed or undelivered messages. To opt out of automated voice calls, you must provide us with written notice
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revoking your consent by contacting us as described in the “How to Contact Us” section of our Privacy Statement, and including your full name, mailing address, account number and the specific
phone number(s) you wish to opt out of such calls.
You also acknowledge and agree that your telephone calls to or from Intuit or its affiliates may be monitored and recorded. You must notify us immediately of any breach of security or unauthorized
use of your telephone. Although we will not be liable for losses caused by any unauthorized use of your telephone, you may be liable for our losses due to such unauthorized use.
8. USE WITH YOUR MOBILE DEVICE.
8.1 Mobile access to the Services requires a compatible mobile browser and/or the download and installation of an authorized mobile app and may not be available for all mobile devices or
telecommunication providers. You will need to check the Services website to ensure your mobile device and telecommunications provider are compatible with TurboTax Online. Intuit is not obligated
to provide a compatible version of the Services (including but not limited to a compatible mobile app) for all mobile devices, operating systems or telecommunication providers, all of which are
subject to change by Intuit at any time without notice to you.
8.1(a) If you choose to access and use the Services through a mobile app provided by Intuit (“Mobile App”), solely as part of the Services, Intuit hereby grants you a limited, personal, non-exclusive,
revocable, non-transferable license to download, install and use a single copy of the Mobile App on your own personal mobile device(s) solely for the purpose of preparing and filing your own Tax
Year 2021 personal federal and state income tax return(s) via the Services, where and if made available by Intuit. You agree that your access to and use of the Services via, through, by or within the
Mobile App is governed by this Agreement. You further agree that your download, installation and use of the Mobile App is also governed by this Agreement, including but not limited to the
disclaimer(s) of warranties, limitation(s) of liability and damages, dispute resolution and other terms of this Agreement.
8.1(b) You acknowledge and agree that the Mobile App is licensed, not sold. You agree not to use, nor permit any third party to use, the Mobile App in a manner that violates any applicable law,
regulation or this Agreement. You agree you will not:
Provide access to or give the Mobile App or any part of the Mobile App to any third party;
Reproduce, duplicate, modify, copy, sell, trade, lease, rent or resell the Mobile App;
Transfer your license to the Mobile App to any other party;
Attempt unauthorized access to any Intuit systems that are not part of the Services;
Permit any third party to benefit from the use or functionality of the Mobile App via a rental, lease, timesharing, service bureau, hosting service or other arrangement;
Decompile, disassemble or reverse engineer the Mobile App; or
Make the Mobile App available on any file-sharing or application hosting service.
8.2 Apple Requirements. If you downloaded the Services from the Apple iTunes App Store, the following terms also apply to you:
A. Acknowledgement: You acknowledge that this Agreement is between you and Intuit only, and not with Apple, and Intuit, not Apple, is solely responsible for the Services and the content thereof.
B. Scope of License: The license granted to you for the Services is a limited, non-transferable license to use the Services on an iPhone OS Product that you own or control and as permitted by the
Usage Rules set forth in the Apple iTunes App Store Terms of Service.
C. Maintenance and Support: Intuit and not Apple is solely responsible for providing any maintenance and support services with respect to the Services. You acknowledge that Apple has no
obligation whatsoever to furnish any maintenance and support services with respect to the Services.
D. Warranty: Intuit is solely responsible for any product warranties, whether express or implied by law, to the extent not effectively disclaimed. In the event of any failure of the Services to conform to
any applicable warranty, you may notify Apple, and Apple will refund the purchase price for the Services to you. To the maximum extent permitted by applicable law, Apple will have no other
warranty obligation whatsoever with respect to the Services, and any other claims, losses, liabilities, damages, costs or expenses attributable to any failure to conform to any warranty will be Intuit’s
sole responsibility.
E. Product Claims: Intuit, not Apple, is responsible for addressing any user or third party claims relating to the Services or the user’s possession and/or use of the Services, including, but not limited to:
(i) product liability claims; (ii) any claim that the Services fail to conform to any applicable legal or regulatory requirement; and (iii) claims arising under consumer protection or similar legislation.
F. Intellectual Property Rights: You acknowledge that, in the event of any third party claim that the Services or your possession and use of the Services infringes that third party’s intellectual property
rights, Intuit, not Apple, will be solely responsible for the investigation, defense, settlement and discharge of any such intellectual property infringement claim.
G. Legal Compliance: You represent and warrant that (i) you are not located in a country that is subject to a U.S. Government embargo, or that has been designated by the U.S. Government as a
“terrorist supporting” country; and (ii) you are not listed on any U.S. Government list of prohibited or restricted parties.
H. Developer Contact Info: You may direct any questions, complaints or claims to: Intuit Inc., 2632 Marine Way, Mountain View, CA 94043.
I. Third Party Terms of Agreement: You must comply with any applicable third party terms of agreement when using the Services, e.g., if you are using a VoIP application, then you must not be in
violation of their wireless data service agreement when using the Services.
J. Third Party Beneficiary: You acknowledge and agree that Apple and Apple’s subsidiaries are third party beneficiaries of this Agreement, and that, upon your acceptance of the terms and conditions
of the Agreement, Apple will have the right (and will be deemed to have accepted the right) to enforce the Agreement against you as a third party beneficiary thereof.
9. LIMITATION OF LIABILITY AND DAMAGES.
YOU UNDERSTAND THAT INTUIT WILL NOT AUDIT OR OTHERWISE VERIFY ANY INFORMATION YOU PROVIDE AND IS NOT RESPONSIBLE FOR DISALLOWED DEDUCTIONS OR THE INCLUSION
OF ADDITIONAL UNREPORTED INCOME OR RESULTING TAXES, PENALTIES OR INTEREST.
EXCEPT FOR THE REIMBURSEMENT FOR CALCULATION ERRORS DESCRIBED IN SECTION 4 OF THESE SUPPLEMENTAL TERMS, THE ENTIRE CUMULATIVE LIABILITY OF INTUIT AND ITS SUPPLIERS
FOR ANY REASON ARISING FROM OR RELATING TO THIS AGREEMENT SHALL BE LIMITED AS SET FORTH IN SECTION 9 OF THE GENERAL TERMS.
INTUIT SHALL NOT BE LIABLE FOR LOSS OF PROFITS OR INVESTMENT, TAX POSITIONS TAKEN BY YOU, INABILITY TO FILE YOUR RETURN, DELAY IN PREPARING YOUR TAX RETURN, INCORRECT
OR INCOMPLETE INFORMATION PROVIDED TO INTUIT OR ANY ACCESS TO, OR USE OF, YOUR PASSWORD AND USER ID BY AN UNAUTHORIZED PERSON.
Intuit shall not be liable for any default or delay in the performance of its obligations under this Agreement to the extent its performance is delayed or prevented due to causes beyond its reasonable
control, such as acts of God, natural disasters, terrorist acts, war or other hostilities, labor disputes, civil disturbances, the actions or omissions of third parties, electrical or communication system
failures or governmental action.
THE FINANCIAL INSTITUTIONS THROUGH WHICH YOU ACCESS TURBOTAX FOR ONLINE BANKING SHALL NOT HAVE LIABILITY RESULTING FROM YOUR USE OF THE SERVICES.
10. MISCELLANEOUS MATTERS.
You agree that Intuit is not acting as your agent or fiduciary in connection with your use of any Services.
You can contact Intuit Inc. by mail at TurboTax, Intuit Inc., 2800 E Commerce Center Place, Tucson, AZ 85706 or by calling 888-777-3066 if you have a question or concern about any product or service
we sell over the Internet. The address and telephone number of the Complaint Assistance Unit of the Division of Consumer Services of the California Department of Consumer Affairs is: 400 R Street,
Suite 1080, Sacramento, CA 95814-6200, 800-952-5210.
10.1 Additional Third Party Software Licensing Terms. The Services and corresponding mobile app may contain third party software components which are governed by and subject to commercial
terms and licenses as provided below. You must comply with any such commercial terms and licenses with regard to these separate third party software components. Intuit makes no warranty
concerning these third party software components.
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10.1.1. Some versions of TurboTax Online may contain Xerces-C, Copyright © 1999-2009 The Apache Software Foundation. Licensed under the Apache License, Version 2.0 (the "License"); you may
not use this file except in compliance with the License. You may obtain a copy of the License at http://www.apache.org/licenses/LICENSE-2.0. Unless required by applicable law or agreed to in writing,
software distributed under the License is distributed on an "AS IS" BASIS, WITHOUT WARRANTIES OR CONDITIONS OF ANY KIND, either express or implied. See the License for the specific language
governing permissions and limitations under the License.
Updated October 2021
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288
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________________
FORM 10-K
☑ Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
For the fiscal year ended July 31, 2021
OR
☐ 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 or other jurisdiction of incorporation or organization) (IRS Employer Identification No.)
2700 Coast Avenue, Mountain View, CA 94043
(Address of principal executive offices, including zip code)
(650) 944-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol Name of each exchange on which registered
Common Stock, $0.01 par value INTU Nasdaq Global Select Market
Securities registered pursuant to Section 12(g) of the Act: None.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes ☐ No ☑
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 ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant
to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes ☑ No ☐
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 169 of 690
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company, or an emerging growth company. See definition of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one)
Large accelerated Smaller reporting Emerging growth
filer ☑ Accelerated filer ☐ Non-accelerated filer ☐ company ☐ company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report. ☑
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
The aggregate market value of Intuit Inc. outstanding common stock held by non-affiliates of Intuit as of January 31, 2021, the last
business day of our most recently completed second fiscal quarter, based on the closing price of $361.23 reported by the Nasdaq Global
Select Market on that date, was $96.2 billion.
There were 273,091,929 shares of Intuit voting common stock outstanding as of August 31, 2021.
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the registrant’s definitive proxy statement for its Annual Meeting of Stockholders to be held on January 20, 2022 are
incorporated by reference in Part III of this Annual Report on Form 10-K.
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Tables of Contents
INTUIT INC.
FISCAL 2021 FORM 10-K
INDEX
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 171 of 690
Page
PART I
ITEM 1: Business 5
ITEM 1A: Risk Factors 18
ITEM 1B: Unresolved Staff Comments 31
ITEM 2: Properties 31
ITEM 3: Legal Proceedings 31
ITEM 4: Mine Safety Disclosures 31
PART II
ITEM 5: Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32
ITEM 6: Selected Financial Data 33
ITEM 7: Management’s Discussion and Analysis of Financial Condition and Results of Operations 34
ITEM 7A: Quantitative and Qualitative Disclosures About Market Risk 52
ITEM 8: Financial Statements and Supplementary Data 53
ITEM 9: Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 97
ITEM 9A: Controls and Procedures 97
ITEM 9B: Other Information 98
ITEM 9C: Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 98
PART III
ITEM 10: Directors, Executive Officers and Corporate Governance 99
ITEM 11: Executive Compensation 99
ITEM 12: Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 99
ITEM 13: Certain Relationships and Related Transactions, and Director Independence 99
ITEM 14: Principal Accountant Fees and Services 99
PART IV
ITEM 15: Exhibits and Financial Statement Schedules 100
ITEM 16: Form 10-K Summary 103
Signatures 104
Intuit, the Intuit logo, QuickBooks, TurboTax, Mint, Lacerte, ProSeries, Intuit ProConnect, Credit Karma, and the Credit Karma logo, 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.
Intuit Fiscal 2021 Form 10-K 2
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Tables of Contents
Forward-Looking Statements
This Annual Report on Form 10-K contains forward-looking statements that involve risks and uncertainties. These risks and
uncertainties may be amplified by the coronavirus (“COVID-19”) pandemic, which has caused significant global economic instability and
uncertainty. The extent to which the COVID-19 pandemic impacts Intuit’s business, operations, financial results, and financial condition,
including the duration and magnitude of such effects, will depend on numerous evolving factors, which are highly uncertain and cannot
be predicted, including, but not limited to, the duration and spread of the pandemic, its severity, the actions to contain the virus or
respond to its impact, and how quickly and to what extent normal economic and operating conditions can resume. Please also see the
section entitled “Risk Factors” in Item 1A of Part I of this Annual Report for important information to consider when evaluating these
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;
• statements regarding the impact of the COVID-19 pandemic on our business;
• our beliefs and expectations regarding seasonality, competition and other trends that affect our business;
• our expectation that we will continue to invest significant resources in our product development, marketing and sales
capabilities;
• 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;
• our expectation that we will work with the broader industry and government to protect our customers from fraud;
• our expectation that we will generate significant cash from operations;
• our expectation that total service and other revenue as a percentage of our total revenue will continue to grow;
• our expectations regarding the development of future products, services, business models and technology platforms and our
research and development efforts;
• our assumptions underlying our critical accounting policies and estimates, including our judgments and estimates regarding
revenue recognition; the fair value of goodwill; and expected future amortization of acquired intangible assets;
• 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;
• our belief that the investments we hold are not other-than-temporarily impaired;
• our belief that we take prudent measures to mitigate investment related risks;
• our belief that our exposure to currency exchange fluctuation risk will not be significant in the future;
• our assessments and estimates that determine our effective tax rate;
• our belief that our income tax valuation allowance is sufficient;
• 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;
• 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;
• 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, after taking into account our operating and strategic cash needs;
• our plan to continue to provide ongoing enhancements and certain connected services for all future versions of our QuickBooks
Desktop software products;
• our judgments and assumptions relating to our loan portfolio;
• our belief that the credit facilities will be available to us should we choose to borrow under them; and
• our assessments and beliefs regarding the future developments and outcomes 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 or expenses associated with such proceedings or inquiries on our financial statements.
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 report and in our other
filings with the Securities and Exchange Commission before deciding to invest in our stock or to
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maintain or change your investment. These forward-looking statements are based on information as of the filing date of this Annual
Report, and we undertake no obligation to revise or update any forward-looking statement for any reason.
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PART I
ITEM 1 - BUSINESS
CORPORATE BACKGROUND
General
Intuit helps consumers, small businesses, and the self-employed prosper by delivering financial management and compliance products
and services. We also provide specialized tax products to accounting professionals, who are key partners that help us serve small
business customers.
Our global products and platforms, including TurboTax, QuickBooks, Mint, and Credit Karma, are designed to help consumers and small
businesses manage their finances, save money, pay off debt and do their taxes with ease and confidence so they are receiving the
maximum refund they deserve. For those customers who run small businesses, we are focused on helping them get paid faster, pay
their employees, access capital, ensure their books are done right and find and keep customers. We serve approximately 100 million
customers across our product offerings and platforms. We had revenue of $9.6 billion in our fiscal year which ended July 31, 2021.
Intuit Inc. was incorporated in California in March 1984. We reincorporated in Delaware and completed our initial public offering in
March 1993. Our principal executive offices are located at 2700 Coast Avenue, Mountain View, California, 94043, and our main
telephone number is 650-944-6000. When we refer to “we,” “our” or “Intuit” in this Annual Report on Form 10-K, we mean the current
Delaware corporation (Intuit Inc.) and its California predecessor, as well as all of our consolidated subsidiaries.
Available Information
Our corporate website, www.intuit.com, provides materials for investors and information relating to Intuit’s corporate governance. The
content on any website referred to in this filing is not incorporated by reference into this filing unless expressly noted otherwise.
We file reports required of public companies with the Securities and Exchange Commission (SEC). These include annual reports on
Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, proxy statements and other reports, and amendments to these
reports. The SEC maintains a website at www.sec.gov that contains reports, proxy and information statements, and other information
regarding issuers that file electronically with the SEC. We make available free of charge on the Investor Relations section of our
corporate website all of the reports we file with or furnish to the SEC as soon as reasonably practicable after the reports are filed or
furnished. Copies of this Annual Report on Form 10-K may also be obtained without charge by contacting Investor Relations, Intuit Inc.,
P.O. Box 7850, Mountain View, California 94039-7850 or by calling 650-944-6000 or by emailing investor_relations@intuit.com.
BUSINESS OVERVIEW
Intuit’s Mission
At Intuit, our mission is to power prosperity around the world. All of our customers have a common set of needs. They are trying to make
ends meet, maximize their tax refund, save money and pay off debt.
Those who have made the bold decision to become entrepreneurs, and go into business for themselves, have an additional set of
needs. They want to find and keep customers, get paid for their hard work, access capital to grow and ensure their books are right.
Across our platform, we use the power of technology to deliver three core benefits to our customers: helping put more money in their
pockets, eliminating work and saving people time so they can focus on what matters to them, and ensuring that they have complete
confidence in every financial decision they make.
The rise of Artificial Intelligence (AI) is fundamentally reshaping our world — and Intuit is taking advantage of this technological
revolution to find new ways to deliver on our mission. We are focused on capitalizing on this opportunity to improve prosperity globally
and inspire our workforce, while investing in our company’s reputation and durable growth in the future.
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Our Business Portfolio
We organize our businesses into four reportable segments:
Small Business & Self-Employed: This segment serves small businesses and the self-employed around the world, and the
accounting professionals who assist and advise them. Our offerings include QuickBooks financial and business management
online services and desktop software, payroll solutions, time tracking, merchant payment processing solutions, and financing for
small businesses.
Consumer: This segment serves consumers and includes do-it-yourself and assisted TurboTax income tax preparation products
and services sold in the U.S. and Canada. Our Mint offering is a personal finance offering which helps customers track their
finances and daily financial behaviors.
Credit Karma: This segment serves consumers with a personal finance platform that provides personalized recommendations of
credit card, home, auto and personal loan, and insurance products; online savings and checking accounts through our partner,
MVB Bank, Inc., member FDIC; and access to their credit scores and reports, credit and identity monitoring, credit report dispute,
and data-driven resources.
ProConnect: This segment serves 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, and ProConnect Tax Online in the
U.S., and ProFile and ProTax Online in Canada.
Our Growth Strategy
At Intuit, our strategy starts with customer obsession. We listen to and observe our customers, understand their challenges, and then
use advanced technology, including AI, to develop innovative solutions designed to solve their most important financial problems. For
more than three decades, we have reinvented and disrupted ourselves in order to ensure our customers are armed with the technology
they need to grow and prosper.
Our strategy for delivering on our bold goals is to become an AI-driven expert platform where we and others can solve our customers’
most important problems. We plan to accelerate the development of the platform by applying AI in three key areas:
• An Open Platform: None of us can do it alone, including Intuit. The best way to deliver for customers is by creating an open,
collaborative platform. It’s the power of partnerships that accelerates the world’s success. Our open technology platform
integrates with partners so together we can deliver value and benefits that matter the most to our customers.
• Application of AI: AI helps our customers work smarter because we can automate, predict and personalize their experience.
Using AI technologies, we are: leveraging machine learning to build decision engines and algorithms that learn from rich
datasets to transform user experiences; applying knowledge engineering and turning compliance rules into code; and using
natural language processing to revolutionize how customers interact with products and services.
• Incorporating Experts: One of the biggest problems our customers face is confidence. Even with current advances in
technology that deliver personalized tools and insights, many people want to connect with a real person to help give them the
confidence they are making the right decision. By bringing experts onto our platform we can solve this massive problem for
customers. The power of our virtual expert platform allows us to scale the intelligence of our products, elevating experts to
advisors and delivering big benefits for customers.
As we build our AI-driven expert platform, we are prioritizing our resources on five strategic priorities across the company. These
priorities focus on solving the problems that matter most to customers and include:
• Revolutionizing speed to benefit: When customers use our products and services, we aim to deliver value instantly by
making the interactions with our offerings frictionless, without the need for customers to manually enter data. We are
accelerating the application of AI with a goal to revolutionize the customer experience. This priority is foundational across our
business, and execution against it positions us to succeed with our other four strategic priorities.
• Connecting people to experts: The largest problem our customers face is lack of confidence to file their own taxes or to
manage their books. To build their confidence, we are connecting our customers to experts. We offer customers access to
experts to help them make important decisions – and experts, such as accountants, gain access to new customers so they can
grow their businesses.
• Unlocking smart money decisions: Crippling high-cost debt and lack of savings are at unprecedented levels across the U.S.
To address these challenges, we are creating a personal financial assistant that helps consumers find the right financial
products, put more money in their pockets and access financial expertise and advice. Our acquisition of Credit Karma
accelerates our ability to achieve this vision, by combining two trusted brands, customer reach, data and platform capabilities to
deliver breakthrough benefits that will power prosperity for customers around the world.
• Be the center of small business growth: We are focused on helping customers grow their businesses by offering a broad,
seamless set of tools that are designed to help them get paid faster, manage and get access to capital, pay
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employees with confidence, and use third-party apps to help run their businesses. At the same time, we want to position
ourselves to better serve product-based businesses to benefit customers who sell products through multiple channels.
• Disrupt the small business mid-market: We aim to disrupt the mid-market with QuickBooks Online Advanced, our online
offering designed to address the needs of small business customers with 10 to 100 employees. This offering enables us to
increase retention of these larger customers, and attract new mid-market customers who are over-served by available
offerings.
As the external environment evolves, we continue to innovate and adapt our strategy and anticipate our customers’ needs. For more
than 35 years, we have been dedicated to developing innovative financial and compliance products and services that are easy to use
and are available where and when customers need them. As a result, our customers actively recommend our products and solutions to
others, which is one important way that we measure the success of our strategy.
PRODUCTS AND SERVICES
During fiscal 2021 we offered our products and services in the four segments described in “Business Overview” above. The following
table shows the revenue for each of these segments over the last three fiscal years.
Fiscal 2021 Fiscal 2020 Fiscal 2019
Small Business & Self-Employed 49 % 53 % 52 %
Consumer 37 % 41 % 41 %
Credit Karma (1) 9% —% —%
ProConnect 5% 6% 7%
(1) Credit Karma revenue from December 3, 2020
Total international net revenue was less than 5% of consolidated total net revenue for the twelve months ended July 31, 2021, 2020 and
2019.
For financial information about our reportable segments, see “Management’s Discussion and Analysis of Financial Condition and
Results of Operations” in Item 7 and Note 14 to the financial statements in Item 8 of this Annual Report.
Small Business & Self-Employed
Our Small Business & Self-Employed segment serves small businesses and the self-employed around the world, and the accounting
professionals who assist and advise them. Our goal is for QuickBooks to be the source of truth for each small business customer who
uses our integrated platform. We work to make this a reality through our three-pillared growth strategy: Grow the Core by transforming
financial management software and meeting customers where they are; Connect the Ecosystem, by meeting a wider range of customer
needs with a single integrated platform; and expand our geographic footprint globally, by serving small businesses around the world.
With this strategy we enable a powerful ecosystem, personalized using artificial intelligence, to deliver a suite of right-for-me solutions to
a wide range of customers globally.
Our integrated platform includes:
QuickBooks Online. Our QuickBooks financial management solutions help small businesses, the self-employed, and accountants
solve financial and compliance problems, make more money and reduce unnecessary work, while giving them complete confidence in
their actions and decisions. Users can track income and expenses, create and send invoices and estimates, manage and pay bills, and
review a variety of financial reports. QuickBooks Live enables our customers to obtain live bookkeeping advice from professionals.
QuickBooks Online also comes with a powerful mobile app available on iOS and Android which enables customers to run their entire
business from their phone. The app provides the customers instant access to their QuickBooks data and includes powerful features that
take advantage of mobile technology such as automatically tracking business miles or the ability to upload a picture of a receipt.
QuickBooks Online is an open platform, enabling third-party developers to create online and mobile applications that integrate with our
offering. A growing number of companies offer applications built for our QuickBooks platform, including PayPal, Shopify and Square.
QuickBooks Desktop Software. Our QuickBooks financial management solutions are also available as desktop versions for small
businesses.
In addition to our core QuickBooks offering, we also offer specific solutions for the following customer segments:
• Mid-Market Small Businesses. Our QuickBooks Online Advanced and QuickBooks Enterprise offerings are designed for small
businesses with 10 to 100 employees that have more complex needs. QuickBooks Online Advanced, Intuit’s cloud-based
offering, is specifically designed for high-growth, mid-market small businesses and leverages AI, automation and data insights
to deliver more ways for them to grow and scale. QuickBooks Enterprise is available for
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download and can also be provided as a hosted solution. This offering provides industry-specific reports and features for a
range of industries, including Contractor, Manufacturing and Wholesale, Nonprofit, and Retail.
• Self-Employed. QuickBooks Self-Employed is designed specifically for self-employed customers whose needs are different than
small businesses that use QuickBooks. Features include categorizing business and personal transactions, identifying and
classifying tax deductible expenses, tracking mileage, calculating estimated quarterly taxes and sending invoices. QuickBooks
Self-Employed can be combined with TurboTax to export and pay year-end taxes. QuickBooks Self-Employed is available both
online and via a mobile application.
• Product-Based Businesses. With QuickBooks Commerce, product-based businesses such as online sellers are able to access
inventory and sales from multiple sales channels, manage orders and fulfillment, sync inventory across online and offline
channels to avoid stockouts and gain profitability insights. QuickBooks Commerce also helps small businesses attract and sell
to new customers across multiple channels and ultimately grow their business.
• Accountants. QuickBooks Online Accountant and QuickBooks Accountant Desktop Plus are available to accounting
professionals who use QuickBooks offerings and recommend them to their small business clients. These offerings provide the
tools and file-sharing capabilities that accounting professionals need to efficiently complete bookkeeping and financial reporting
tasks as well as manage their practices. We also offer memberships to the QuickBooks ProAdvisor program, which provides
accountants access to QuickBooks Online Accountant, QuickBooks Accountant Desktop Plus, QuickBooks Desktop Enterprise
Accountant, QuickBooks Point of Sale Desktop, technical support, training, product certification, marketing tools, and discounts
on Intuit products and services purchased on behalf of clients.
Ecosystem Services
Employer Solutions (Payroll and Time Tracking). Our payroll solutions are sold on a subscription basis and integrate with our
QuickBooks Online and QuickBooks Desktop offerings. All of our payroll offerings allow customers to perform payroll processing, direct
deposit of employee paychecks, payroll reports, electronic payment of federal and state payroll taxes, and electronic filing of federal and
state payroll tax forms. Our QuickBooks Online payroll offerings include automated tax payments and filings, as well as access to
employee benefits offerings like health insurance and 401ks. Certain online offerings also include same day direct deposit, access to
human resource advice, and access to additional expert-powered services like Tax Penalty Protection. QuickBooks Desktop payroll is
available in both a self-service and an assisted version, depending on whether customers want to do their own taxes or leverage
automated tax payments and filings. We also offer QuickBooks Time which seamlessly integrates with QuickBooks Payroll and third-
party payroll products to help businesses easily and accurately track time across a mobile workforce, including tools for project planning,
job costing, and tracking per-client billable hours.
Payment Processing Solutions. Our full range of merchant services for small businesses includes credit card, debit card, Apple Pay,
and ACH payment services for in person and card not present payments. We offer instant deposit options for eligible customers.
QuickBooks Payments is deeply integrated into QuickBooks through seamless onboarding and automated transaction reconciliation,
and is the default payment solution for QuickBooks invoicing. Our Payments offering is also connected with QuickBooks Cash, our small
business banking solution, through integrated onboarding and instant funds availability. In addition to transaction processing services,
our services include broad customer support, merchant and consumer collections, chargeback and retrieval support, and fraud and loss
prevention screening.
Capital for Small Businesses. We offer financing options for small businesses to help them get the capital they need to succeed. The
financing process provides small businesses the ability to use their QuickBooks data to qualify to borrow capital.
QuickBooks Cash. The QuickBooks Cash business bank account with debit card adds banking capabilities to QuickBooks’ robust
business offerings. QuickBooks Cash, when used with the QuickBooks suite of business services, takes the complexity and latency out
of managing finances for small business owners. QuickBooks Cash has no account opening fees, maintenance fees, minimum
balances, overdraft fees, or other recurring fees. QuickBooks Cash includes a machine-learning powered finance planner which helps
small businesses plan for the future by making 90-day cash flow projections, including predictions on when invoices are likely to be paid,
enabling small business customers to better manage their cash flow.
Financial Supplies. We offer a range of financial supplies designed for individuals and small businesses that use our QuickBooks
offerings. These include standard paper checks and Secure Plus checks with CheckLock fraud protection features, a variety of
stationery, tax forms and related supplies.
Consumer
Our Consumer segment includes our TurboTax products and services that are designed to enable customers to prepare and file their
federal and state income tax returns quickly and accurately. These offerings are available either online or as desktop versions. They are
designed to be easy to use, yet sophisticated enough for complex tax returns. For customers using our online offerings and looking for
additional advice or guidance along the way, we have experts standing by to offer tax review and advice all year round. We also have
experts available to prepare, sign and file tax returns for customers who prefer to have
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their taxes prepared for them. Within this segment, we also offer Mint, which is an online personal finance offering aimed at helping
customers track their finances and daily financial behaviors. Our online offerings can be accessed on mobile devices.
Tax Return Preparation Offerings. For the 2020 tax season, we offered a variety of commercial software products and tax filing
services to meet the different needs of our customers, including those filing simple returns, those who itemize deductions, own
investments or rental property, and small business owners. Customers can electronically file their federal and state income tax returns
through our electronic filing service. We also offered TurboTax Live for customers seeking to obtain tax advice from professionals,
TurboTax Live Full Service for customers seeking to have their tax returns prepared for them, as well as audit defense and audit support
services. Our online tax preparation and filing services were offered through the websites of thousands of financial institutions, electronic
retailers, and other online merchants. Financial institutions can offer our online tax preparation and filing services to their customers
through a link to TurboTax Online. Our TurboTax U.S. and Canada offerings consist of desktop, online, and mobile offerings. In addition
to our commercial product offerings, for the 2020 tax season we were a member of the Free File Alliance, a consortium of private sector
companies that has entered into an agreement with the federal government to donate free online federal tax preparation and filing
services to the IRS, which the IRS then markets to eligible consumers on an IRS website. At the conclusion of this tax season in
October, we will no longer participate in the Free File Alliance. See also “Competition – Consumer Segment” later in this Item 1 for more
information on the Free File Alliance.
Credit Karma
Our Credit Karma segment provides consumers with a financial platform that helps them find the right financial products and put more
money in their pockets. The platform offers a number of free services to its members: access to their credit scores and reports, credit
and identity monitoring, credit report dispute, data-driven resources, personalized recommendations of credit card, loan, and insurance
products and online savings and checking accounts through our bank partner, MVB Bank, Inc., Member FDIC. To provide these services
to its members, Credit Karma works with a variety of partners, including credit bureaus, banks, credit card issuers, and other financial
institutions and lending partners. Additionally, Credit Karma leverages Lightbox, a first-of-its-kind enterprise platform which allows
lenders to leverage thousands of de-identified data points from Credit Karma members to help provide its members with greater
certainty that they will be approved if they apply for a financial product.
ProConnect
Our ProConnect segment includes our professional tax offerings and serves 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 consist of Lacerte, ProSeries, and
ProConnect Tax Online in the U.S., and ProFile and ProTax Online in Canada. These offerings enable accountants to accurately and
efficiently complete and electronically file a full range of consumer, small business, and commercial federal and state tax
returns. Lacerte is designed for full-service year-round accounting firms who handle more complex returns. ProSeries is designed for
year-round tax practices handling moderately complex tax returns. ProConnect Tax Online is our cloud-based solution, which is
designed for full-service year-round practices who prepare all forms of consumer and small business returns and integrates with our
QuickBooks Online offerings. ProFile is our Canadian desktop tax offering, which serves year-round full-service accounting firms for both
consumer and business tax returns. ProTax Online is our Canadian cloud based tax solution, which is designed for full-service year-
round practices who prepare all forms of consumer and business tax returns, and is fully integrated into QuickBooks Online Accountant
to provide seamless integration of data across books and tax through our Workpapers solution. We also offer a variety of tax-related
services that complement the tax return preparation process including year-round document storage, collaboration services, e-signature,
and bank products, and additional capabilities such as fixed asset management, desktop hosting, and third party solutions for practice
management for some of our U.S. tax offerings.
PRODUCT DEVELOPMENT
The markets for software and related services are characterized by rapid technological change, shifting customer needs and frequent
new product introductions and enhancements. Continuous investment is required to innovate and develop new products and services as
well as enhance existing offerings to be successful in these markets. Our product development efforts are more important than ever as
we pursue our growth strategy.
We develop many of our products and services internally, and we have a number of United States and foreign patents and pending
applications that relate to various aspects of our products and technology. We also supplement our internal development efforts by
acquiring or licensing products and technology from third parties, and establishing other relationships that enable us to enhance or
expand our offerings more rapidly. We expect to expand our third-party technology relationships as we continue to pursue our growth
strategy.
Our online offerings and mobile applications have rapid development cycles, while our traditional desktop software products tend to
have predictable annual development and product release cycles. In addition, developing consumer and professional tax software and
services presents unique challenges because of the demanding development cycle required to accurately incorporate federal and state
tax law and tax form changes within a rigid timetable. The development timing for our small
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business payroll and merchant payment processing services offerings varies with business needs and regulatory requirements, and the
length of the development cycle depends on the scope and complexity of each project.
We continue to make substantial investments in research and development, and we expect to focus our future research and
development efforts on enhancing existing products and services with financial recommendations, personalization, and ease of use
enabled by AI and other advanced technologies. We continue to focus on developing new products and services, including new mobile
and global offerings, and significant research and development efforts for ongoing projects to update the technology platforms for
several of our offerings.
SEASONALITY
Our Consumer and ProConnect offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax
preparation products and services are typically concentrated in the period from November through April. This seasonal pattern typically
results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.
Due to the COVID-19 pandemic, the timing of tax filing seasons for fiscal 2021 and fiscal 2020 varied significantly. In fiscal 2019, the IRS
began accepting returns on January 28, 2019 and the tax filing deadline was April 15, 2019. In fiscal 2020, the IRS began accepting
returns on January 27, 2020 and the tax filing deadline was July 15, 2020. In fiscal 2021, the IRS began accepting returns on February
12, 2021 and the tax filing deadline was May 17, 2021. These changes to the tax filing seasons impacted our quarterly financial results
during fiscal 2021 and fiscal 2020.
We expect the seasonality of our Consumer and ProConnect businesses to continue to have a significant impact on our quarterly
financial results in the future.
MARKETING, SALES AND DISTRIBUTION CHANNELS
Markets
Our primary customers are consumers, small businesses, and the self-employed. We also provide specialized tax and accounting
products to professional accountants, who are key partners to help us reach small business customers. The markets in which we
compete have always been characterized by rapid technological change, shifting customer needs, and frequent new product
introductions and enhancements by competitors. Over the past several years, the widespread usage of mobile devices and the
explosion of social media have accelerated the pace of change and revolutionized the way that customers learn about, evaluate, and
purchase products and services.
Real-time, personalized online and mobile shopping experiences are the standard. In addition, many customers now begin shopping in
one channel and ultimately purchase in another. This has created a need for integrated, multi-channel, shop-and-buy experiences.
Market and industry changes quickly make existing products and services obsolete. Our success depends on our ability to respond
rapidly to these changes with new business models, updated competitive strategies, new or enhanced products and services, alternative
distribution methods, and other changes in the way we do business.
Marketing Programs
We use a variety of marketing programs to generate direct sales, develop leads, increase general awareness of our product portfolio,
and drive sales in retail. These programs include digital marketing such as display and pay-per-click advertising, search engine
optimization, and social and affiliate marketing; mobile marketing through online app stores; email marketing; offline marketing such as
TV, radio, billboard, magazine and newspaper advertising; retail marketing; public relations; and in product marketing to drive awareness
of related products and services. Our campaigns are designed to attract new users, retain existing users, and cross sell additional
offerings.
Sales and Distribution Channels
Multi-Channel Shop-and-Buy Experiences. Our customers use the web and mobile devices to research products and services. Some
customers buy and use our products and services entirely online or through their mobile devices. Others research online but make their
purchase at a retail location. Because many customers shop across multiple channels, we continue to coordinate our online, offline, and
retail presence and promotions to support an integrated, multi-channel, shop-and-buy model. We also focus on cross-selling
complementary Intuit and third-party offerings online and in-product.
Direct Sales Channel. We sell many of our products and services directly through our websites and call centers. Direct, online sales are
an effective channel for customers who can make purchase decisions based on content provided on our websites, via other online
content or word of mouth recommendations. Telesales continues to be an effective channel for serving customers that want live help to
select the products and services that are right for their needs. We also have a direct sales force that calls on U.S. and international
accounting firms and seeks to increase their awareness, usage, and recommendation of our small business and professional tax
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solutions. For mid-market businesses, we have implemented and expanded on our omni channel go to market strategy by diversifying
and growing our technology partner channel and industry focused direct sales teams.
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Mobile Application Stores. We distribute many of our offerings for mobile devices through proprietary online stores that provide
applications for specific devices. These include the Apple App Store and Google’s Play Store.
Partner and Other Channels. We sell our products and services through partners including value-added resellers, system integrators
(including accountants), and managed service providers who help us reach new customers at the point of need and drive growth and
market share by extending our online reach. These partners combine our products and services with marketing, sales, and technical
expertise to deliver a complete solution at the local level. We also sell our QuickBooks and TurboTax desktop software as well as payroll
services at retail locations across the United States and Canada and on retailer websites. In Canada, we also rely on distributors who
sell products into the retail channel.
COMPETITION
Overview
We face intense competition in all of our businesses, both domestically and internationally. Competitive interest and expertise in many of
the markets we serve have grown markedly over the past few years and we expect this trend to continue. Some of our existing
competitors have significantly greater financial, technical and marketing resources than we do. In addition, the competitive landscape
can shift rapidly as new companies enter and existing companies expand their businesses to include the markets in which we compete.
This is particularly true for online and mobile products and services, where the barriers to entry are lower than they are for desktop
software products and services. To attract customers, many online and mobile competitors are offering free or low-priced products which
we must take into account in our pricing strategies.
Given the breadth of the products and services that we offer as a global technology company, we compete with the offerings from a
variety of companies across a range of industries. Our most obvious competition comes from other companies that currently offer
technology solutions similar to ours. In our Small Business & Self-Employed segment, we face competition from a variety of companies
that provide products or services to address the problems that we help our customers to solve, including getting paid faster, paying their
employees, accessing capital and ensuring their books are done right. Our Consumer segment competes with companies that offer
products and services to help customers file their taxes, better manage their money and reduce their debt. We may also face
competition from companies with platforms that could be developed to offer competing technology solutions to any of the problems that
our customers may face, such as Facebook, Amazon and Google. In addition, for many of our products and services, other competitive
alternatives for customers are third-party service providers such as professional accountants and seasonal tax preparation businesses.
Manual tools and processes, or general-purpose software, are also important competitive alternatives. In some cases, a competitor in
one of our segments may be our partner in another one of our segments. In other cases, a company may compete with us in more than
one of our segments.
Competition Specific to Segments
Small Business & Self-Employed Segment. QuickBooks is a leading small business financial management software in the U.S. Small
businesses often look to several companies to address their problems. Therefore, our small business products and services face
competitive challenges from a variety of companies that provide products or services that address one or more of their problems. We
compete to help small businesses get their books right with Xero, The Sage Group plc, and FreshBooks, among others, which offer
software and associated services as well as online accounting offerings that directly serve small business customers. For small
businesses with more complex financial management needs, our competitors include The Sage Group plc’s Intacct offering and
Microsoft Dynamics. We also compete with free or low-cost online accounting offerings, and free online banking and bill payment
services offered by financial institutions and others. In our payroll business we compete directly with Automatic Data Processing, Inc.
(ADP), Paychex, Gusto, and many other companies that help small businesses to pay their employees. In our merchant services
business we help our customers get paid faster and compete directly with large financial institutions such as Wells Fargo, JP Morgan
Chase, and Bank of America and with many payment processors, including First Data Corporation, Elavon, Global Payments, Fidelity
National Information Services, PayPal, and Square. Our QuickBooks Capital offering, which helps small businesses to access capital,
competes with a range of lending enterprises, including large financial institutions, such as the ones listed above, fintech companies,
such as Square and PayPal, and others.
Consumer Segment. In our Consumer segment, we compete to help our customers to file their taxes. Our future growth depends on our
ability to attract new customers to the self-preparation tax category and to our assisted offering, TurboTax Live, from tax stores and other
tax preparers. In the U.S. private sector we face intense competition from H&R Block, which provides tax preparation services in its
stores and a competing software offering. We also face competition from several other large tax preparation service providers, from a
myriad of small tax preparers, and from numerous online self-preparation offerings, including Blucora’s TaxAct, Free Tax USA,
TaxSlayer, and Square. Some of these competitors are offering electronic tax preparation and filing services at no cost to individual
taxpayers. In Canada, our TurboTax Canada offerings face competition from H&R Block, SimpleTax, StudioTax, and UFile, among
others. These competing offerings subject us to significant price pressure in both the U.S. and Canada. We also face competitive
challenges from government entities that offer publicly funded electronic tax preparation and filing services with no fees to individual
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taxpayers. Our Mint offering competes with numerous personal financial management companies and large financial institutions to help
our customers track their finances and better manage their money.
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For the 2020 tax season, we were a member of the Free File Alliance, a consortium of private sector companies that has entered into an
agreement with the federal government. Under this agreement, the member companies donate online federal tax preparation and filing
services to eligible users at no cost to the government or individual users separate and apart from the member companies’ commercial
free offerings, which the IRS then offers to eligible consumers on an IRS website. Approximately 22 states and the District of Columbia
have also entered public-private partnerships with the Free File Alliance. Additionally, certain member companies, including Intuit,
provided online state tax preparation and filing services at no cost if the taxpayer qualified for the free federal return under this program.
We will no longer participate in the Free File Alliance after the conclusion of the 2020 tax season in October. We continue to actively
work with others in the private and public sectors to support successful public-private partnerships that reinforce the voluntary
compliance tax system, encourage electronic filing, and inform consumers of free filing options. However, future administrative,
regulatory, or legislative activity in this area could seek to replace the voluntary compliance tax system with return preparation, or self
preparation options, provided by government agencies which could harm our Consumer business.
Credit Karma Segment. Credit Karma faces significant competition for member growth and partnerships. Credit Karma competes
against many companies to attract and engage members, including the credit bureaus as well as companies that provide personal
finance management products and tools which offer a variety of credit-score monitoring and personal finance services and content.
Credit Karma faces competition with some elements of businesses of LendingTree, Red Ventures, NerdWallet, Square, Chime, among
others. However, the personal finance industry is evolving rapidly and is becoming increasingly competitive. An increasing number of
companies are competing directly with Credit Karma.
ProConnect Segment. In the U.S., Lacerte professional tax offerings face competition from competitively-priced tax and accounting
solutions that include integration with non-tax functionality. These include CCH’s ProSystem fx Office Suite and Thomson Reuters’ CS
Professional Suite and GoSystem Tax. Our ProSeries professional tax offerings face competition from CCH’s ATX and TaxWise
offerings, Drake, and other smaller providers. In Canada, our ProFile professional tax offerings face competition from CCH’s Cantax and
Taxprep offerings, TaxCycle, and Thomson Reuters’ DTMax and UFile Pro offerings. We also face growing competition from online tax
and accounting offerings in the U.S. and Canada, which may be marketed more effectively or have lower pricing than our offerings for
accounting professionals.
Competitive Factors
We believe the most important competitive factors for our core offerings – QuickBooks, TurboTax, Lacerte, ProSeries, and Credit Karma
– are ease of use, product features, size of the installed customer base, size of membership base, member engagement, brand name
recognition, value proposition, cost, reliability, security, and product and support quality. Access to distribution channels is also important
for our QuickBooks and TurboTax desktop software products. In addition, support from accounting professionals and the ability for
customers to upgrade within product families as their businesses grow are significant competitive factors for our QuickBooks products.
Productivity is an important competitive factor for the full-service accounting firms to which we market our Lacerte software products. We
believe we compete effectively on these factors as our QuickBooks and TurboTax products are the leading products in the U.S. for their
respective categories.
For our service offerings such as small business payroll and merchant payment processing, we believe the most important competitive
factors are functionality, ease of use, high availability, security, the integration of these products with related software, brand name
recognition, effective distribution, quality of support, and cost.
CUSTOMER SUCCESS
For our QuickBooks, TurboTax, ProConnect and Mint offerings, we provide product support and technical support through channels
including telephone, e-mail, online and video chat, text messaging, our customer support websites, self-help assets embedded in our
products, and online communities where consumers can share knowledge and product advice with each other.
We also provide access to experts, through our TurboTax and QuickBooks Live offerings, who provide tax advice, tax preparation and
bookkeeping services.
Our customer success staff predominantly consists of Intuit-employed and outsourced experts. We supplement with seasonal
employees and additional outsourcing during periods of peak call volumes, such as during the tax return filing season or following a
major product launch. We outsource to several firms domestically and internationally. Most of our internationally outsourced small
business customer success personnel are currently located in the Philippines.
We also source staff through our Prosperity Hub program, which is designed to spark economic prosperity for people and communities
in need. One part of this program is our socially responsible sourcing model, where we both directly and through customer success
partner-employers, hire, train, and retain workers who deliver support and services for our customers.
Self-help information is offered for free in-product and on our support websites for our QuickBooks, TurboTax, Mint and professional tax
offerings. Support alternatives and fees vary by product. For example, some product subscriptions receive 24x7 support and additional
contact channel options.
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PARTNER SUCCESS
For our Credit Karma offerings we have a Partner Success team that is dedicated to ensuring that our financial institution partners
operate efficiently and safely on our platform. This team consists of program management, operations, and compliance professionals,
who interface directly with lending partners to facilitate new product launches; maintain product offers, including any updates to existing
offers and compliance monitoring; manage and maintain data required for offers and partner invoicing; support audits and compliance
reviews; and manage and resolve incidents to mitigate any potential negative impact on either Credit Karma’s or the partner’s platform.
MANUFACTURING AND DISTRIBUTION
Online Products and Services
Our online offerings include QuickBooks Online, online payroll services, merchant payment processing services, TurboTax Online,
ProConnect Tax Online, consumer and professional electronic tax filing services, Mint, and Turbo. We recently completed the transition
of our systems, networks and databases used to operate these online offerings to public cloud providers, such as Amazon Web Services
(AWS). Currently, all of our online offerings are operating using AWS.
Desktop Software and Supplies
Although an increasing proportion of our desktop software customers choose to electronically download software, many customers
continue to choose to purchase these products in the form of physical media. The key processes in manufacturing desktop software are
manufacturing compact discs (CDs) and digital video discs (DVDs), printing boxes and related materials, and assembling and shipping
the final products.
For retail manufacturing and distribution, we have agreements with Arvato Digital Services, Inc. (Arvato), a division of Bertelsmann AG,
under which Arvato provides a majority of the manufacturing volume for our launches of QuickBooks and TurboTax and day-to-day
replenishment after product launches, as well as our retail distribution logistics. Arvato also provides most of the manufacturing volume
and distribution services for our direct desktop software orders.
Customers typically receive desktop software electronically. However, when physical product is ordered, we typically ship the physical
product within a few days of receiving an order and backlog is minimal.
PRIVACY AND SECURITY OF CUSTOMER AND WORKFORCE INFORMATION AND TRANSACTIONS
We are stewards of our customers’ data and have designed data stewardship principles to align our organization in collecting, using and
protecting such information. As we believe strongly in being good stewards of our customers’ data, we operate our program to comply
with laws and regulations that govern our use, sharing and protection of customers’ personal information, including, for example, laws
with respect to financial services and the handling of tax data. We have established guidelines and practices to help ensure that
customers and members of our workforce are aware of, and can control, how we use information about them. We also use privacy
statements to provide notice to customers of our privacy practices, as well as provide them the opportunity to furnish instructions with
respect to use of their personal information. We participate in industry groups whose purpose is to develop or shape industry best
practices, and to inform public policy for privacy and security.
We use security safeguards to help protect the systems and the information that customers and members of our workforce give to us
from loss, misuse and unauthorized alteration. We use technical, logical and procedural measures, such as multi-factor authentication,
which are designed to help detect and prevent fraud and misuse of customer information. Whenever customers transmit sensitive
information to us, such as credit card information or tax return data, through one of our websites or products, we follow current industry
standards to encrypt the data as it is transmitted to us, and when we store it at rest. We routinely patch our systems with security
updates and we work to protect our systems from unauthorized internal or external access using numerous commercially available
computer security products as well as internally developed security procedures and practices.
GOVERNMENT REGULATION
Our Consumer and ProConnect segments are subject to federal, state and international government requirements, including regulations
related to the electronic filing of tax returns, the provision of tax preparer assistance, and the use and disclosure of customer
information. Our Small Business & Self-Employed segment offers products and services to small businesses and consumers, such as
payroll, payments, and financing, which are also subject to certain regulatory requirements. Our Credit Karma segment offers personal
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finance products and services to consumers, such as recommendations of credit card, loan and insurance products and access to credit
scores and reports, which are also subject to certain regulatory requirements.
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INTELLECTUAL PROPERTY
Our success depends on the proprietary technology embodied in our offerings. We protect this proprietary technology by relying on a
variety of intellectual property mechanisms, including copyright, patent, trade secret and trademark laws, restrictions on disclosure and
other methods. For example, we regularly file applications for patents, copyrights and trademarks and service marks in order to protect
intellectual property that we believe is important to our business. We hold a growing patent portfolio that we believe is important to
Intuit’s overall competitive advantage, although we are not materially dependent on any one patent or particular group of patents in our
portfolio at this time. We also have a number of registered trademarks that include Intuit, QuickBooks, Lacerte, TurboTax, QB,
ProSeries, ProConnect, Mint, and Credit Karma. We have registered these and other trademarks and service marks in the United States
and, depending on the relevance of each brand to other markets, in many foreign countries. Most registrations can be renewed
perpetually at 10-year intervals. We also license intellectual property from third parties for use in our products.
Although our portfolio of patents is growing, the patents that have been issued to us could be determined to be invalid and may not be
enforceable against competitive products in every jurisdiction. In addition, third parties have asserted and may, in the future, assert
infringement claims against us and our customers. These claims and any litigation may result in invalidation of our proprietary rights or a
finding of infringement along with an assessment of damages. Litigation, even if without merit, could result in substantial costs and
diversion of resources and management attention. In addition, third-party licenses may not continue to be available to us on
commercially acceptable terms, or at all.
HUMAN CAPITAL
We consider our employees one of our four True North key stakeholders because they help us deliver for the customers, shareholders
and the communities we serve. As of July 31, 2021, we had approximately 13,500 employees in 10 countries. During fiscal 2021, we
employed on average approximately 7,700 seasonal employees from January to May primarily to support our Consumer segment
customers during the peak of tax season. We believe our future success and growth will depend on our ability to attract and retain a
qualified workforce in all areas of our business.
Intuit’s workforce development strategies are developed and managed by our Chief People & Places Officer, who reports to the CEO.
The Compensation and Organizational Development Committee of the Board of Directors has oversight with respect to company-wide
organization and talent assessment, employee recruitment, engagement and retention, leadership development, management depth
and strength assessment, workplace environment and culture, employee health and safety, and pay equity. Of the total number of
employees, approximately 1,300 are employed by Credit Karma, which was acquired by Intuit in December 2020 and has certain unique
compensation and workforce development programs. We regularly collect, measure and share the sentiment of our workforce through
multiple channels, including engagement surveys, and other touch points, which help to guide the work we do to support our workforce.
Culture and Values
In order to deliver on our mission to power prosperity around the world, we are guided by our company values as we strive to create a
culture where employees can do the best work of their lives. Our value of Courage means being bold and fearless in how we think and
act, holding a high bar for performance and valuing speed, a bias for learning and action. Our value of Stronger Together means
championing diversity, inclusion and a respectful environment, thriving on diverse voices to challenge and inform decisions and
delivering exceptional work so others can count on us. Consistent with our value of We Care and Give Back, we provide eligible full-time
employees five days of paid time off every year that can be used to do volunteer work during normal work hours for vetted non-profits.
Our We Care and Give Back program also provides donation matching up to an annual limit.
Diversity, Equity and Inclusion1
At the foundation of our culture is a commitment to diversity, equity and inclusion (“DEI”). We believe that diversity is a fact, but treating
people equitably and inclusively are choices we make. To deliver for our customers, we seek to foster a workforce that is as diverse as
the communities we serve. When we do this, we believe we develop deeper empathy, accelerating innovation to solve the biggest
problems our customers face. We have had a designated role dedicated to diversity and inclusion since 2015. In fiscal 2021, we
invested additional resources into DEI and appointed our first Chief Diversity, Equity & Inclusion Officer (“CDEIO”) who leads a new
dedicated and specialized team in our DEI efforts. Our Compensation and Organizational Development Committee oversees Intuit’s DEI
initiatives in support of organizational development. Our strategy is operationalized through the following elements:
• Goals and transparency: We have set short- and long-term goals for increasing the representation of women and under-
represented minorities (which we define as Black/African-American, Latino/Hispanic, Native American, Native Alaskan and
Native Hawaiian) in our workforce. Our progress is reviewed monthly with all executives and we have shared our diversity
externally since 2015;
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1
Excludes Credit Karma, which we acquired in December 2020.
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• Center of Excellence: We have a cross-functional team led by the CDEIO with expertise in enterprise leadership, strategy,
human resources and communications all focused on driving a more diverse and inclusive workplace;
• Employee Resource Groups: 13 employee resource groups aid in creating community, recruiting, on-boarding and providing
safe spaces for our diverse workforce;
• Engagement: A dedicated DEI survey focused on the experiences of our workforce;
• REAL Team: A Racial Equity Leadership Team focused on helping us drive durable change as we strive to continue advancing
racial equity and equality;
• Education: All senior leaders have attended multiple DEI workshops, including C-suite training on racial equity. We have
manager and employee training on leading inclusively and a guide for managers on how to have conversations about difficult
and polarizing external events;
• Assessment: Biannual formal talent reviews, including succession plans and diversity assessments;
• Talent acquisition: We have developed a program team to drive diversity strategy and initiatives; and
• Accountability: The Compensation and Organizational Development Committee reviews our progress towards our goals and
workforce diversity initiatives at least annually.
As of July 31, 2021:
• Women constituted 40% of our total employees, 35% of our leadership roles, and 30% of our technology roles; and
• Our under-represented minority employees represent 13% of our U.S. employees, 8% of our U.S. leadership roles, and 7% of
our U.S. technology roles.
The company performs an ongoing pay equity analysis, conducted twice a year by an independent, third-party vendor. This analysis
allows us to review each job code where there are enough employees that have the same or similar job duties and compensation mix.
We compare base pay by gender and ethnicity, while factoring in location and time spent in the role, and make adjustments when there
are unexplained statistical differences. We are transparent about our pay equity results and have multiple avenues for employees to use
for any questions about their pay.
Developing Talent and Training
We are committed to creating a high-performing culture that consistently delivers for our customers, shareholders and communities
while providing an experience for our workforce that values leadership, innovation, and collaboration. We promote the development of all
of our employees through our One Intuit Learning Vision that every employee has a personalized learning plan based on their needs
and interests, and are provided the resources they need to grow, thrive and reinvent themselves over time.
In addition, we are invested in growing our current and future leaders. Our Learning and Development teams design programs and
resources to develop our employees and measure their progress.
All full-time employees have access to opportunities to develop and learn through over 1,400 Intuit-sponsored learning paths and online
courses on topics ranging from artificial intelligence to manager essentials in support of an employee’s ability to adapt to any work
environment. In fiscal 2021, our full-time employees completed over 170,000 pieces of learning content.
Employees set goals and measure progress through our goal setting tool and have opportunities to focus on growth both during year-
end conversations and ongoing monthly check-ins.
Total Rewards
Our compensation philosophy aims to attract and retain top talent for today and the future. Intuit’s total target compensation includes
base hourly pay or salary at market-competitive rates, equity and a range of incentive plans that vary based on role. Incentive
compensation plans are part of our pay for performance philosophy and closely align with company performance and reward top
performance. Most year-round employees are eligible for equity, which allows the majority of our employees to share in the company’s
success.
Additional benefits and rewards include an employee stock purchase plan, healthcare and retirement benefits, paid time off, annual paid
recharge days, family and parental leave.
COVID Response and Well-being
The health and well-being of our employees and their families has never been more important. We offer our employees (excluding
experts) a reimbursement incentive to cover the costs of purchases made to support their physical, emotional and financial well-being.
Employees also have access to other resources to help with their well-being, including a well-minds program for resilience, mindfulness
and counseling, back-up childcare, financial education programs and access to an Employee Assistance Program.
Amid the unprecedented environment caused by the COVID-19 pandemic, management’s top priority has been the health and safety of
our employees. We shifted nearly all our workforce from office locations to work from home environments. We also increased leave
benefits for all employees to allow them to take care of what matters most to them. We provided our
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employees with resources to have a complete and comfortable home workspace, to offset certain pandemic-related expenses and to
promote physical and emotional health.
INFORMATION ABOUT OUR EXECUTIVE OFFICERS
The following table shows Intuit’s executive officers and their areas of responsibility as of July 31, 2021 . Their biographies follow the
table.
Name Age Position
Sasan K. Goodarzi 53 President, Chief Executive Officer and Director
Brad D. Smith 57 Executive Chairman of the Board of Directors
Scott D. Cook 69 Chairman of the Executive Committee
Michelle M. Clatterbuck 53 Executive Vice President and Chief Financial Officer
J. Alexander Chriss 44 Executive Vice President and General Manager, Small Business & Self-Employed Group
Laura A. Fennell 60 Executive Vice President, Chief People & Places Officer
Gregory N. Johnson 53 Executive Vice President and General Manager, Consumer Group
Marianna Tessel 54 Executive Vice President and Chief Technology Officer
Kerry J. McLean 57 Executive Vice President, General Counsel and Corporate Secretary
Mark J. Flournoy 55 Senior Vice President and Chief Accounting Officer
Mr. Goodarzi has been President and Chief Executive Officer and a member of the Board of Directors since January 2019 and
previously served as Executive Vice President and General Manager of Intuit’s Small Business Group since May 2016. He previously
was Executive Vice President and General Manager of Intuit’s Consumer Tax Group from August 2015 through April 2016 and from
August 2013 to July 2015 served as Senior Vice President and General Manager of the Consumer Tax Group. He served as Intuit’s
Senior Vice President and Chief Information Officer from August 2011 to July 2013, having rejoined Intuit after serving as CEO of Nexant
Inc., a privately held provider of intelligent grid software and clean energy solutions, beginning in November 2010. During his previous
tenure at Intuit from 2004 to 2010, Mr. Goodarzi led several business units including Intuit Financial Services and the professional tax
division. Prior to joining Intuit, Mr. Goodarzi worked for Invensys, a global provider of industrial automation, transportation and controls
technology, serving as global president of the products group. He also held a number of senior leadership roles in the automation control
division at Honeywell Inc. He serves on the board of Atlassian Corporation Plc and chairs the Compensation and Leadership
Development Committee. Mr. Goodarzi holds a Bachelor’s degree in Electrical Engineering from the University of Central Florida and a
Master’s degree in Business Administration from the Kellogg School of Management at Northwestern University.
Mr. Smith has been an Intuit director since 2008, Chairman of the Board from January 2016 through December 2018, and Executive
Chairman from January 2019. He served as President and CEO of the Company from January 2008 through December 2018. Mr. Smith
joined Intuit in 2003 and has served as Senior Vice President and General Manager, Small Business Division from 2006 to 2007, Senior
Vice President and General Manager, QuickBooks from 2005 to 2006, Senior Vice President and General Manager, Consumer Tax
Group from 2004 to 2005 and as Vice President and General Manager of Intuit’s Accountant Central and Developer Network from 2003
to 2004. Before joining Intuit, Mr. Smith held the position of Senior Vice President of Marketing and Business Development of ADP,
where he held several executive positions from 1996 to 2003. Mr. Smith served on the board of directors of Yahoo! Inc. from 2010 until
2012. Mr. Smith was elected to the board of directors of Nordstrom, Inc. in June 2013, where he is a member of the Compensation
Committee and Corporate Governance and Nominating Committee and has served as Chairman of the Board since November 2018.
Mr. Smith was also elected to the board of directors of Momentive (formerly known as SurveyMonkey) in May 2017 and is chair of its
Compensation Committee. Mr. Smith holds a Bachelor’s degree in Business Administration from Marshall University and a Master’s
degree in Management from Aquinas College.
Mr. Cook, a founder of Intuit, has been an Intuit director since March 1984 and is currently Chairman of the Executive Committee. He
served as Intuit’s Chairman of the Board from February 1993 to July 1998. From April 1984 to April 1994, he served as Intuit’s President
and Chief Executive Officer. Mr. Cook served on the board of directors of The Procter & Gamble Company from 2000 to 2020. Mr. Cook
was also a director of eBay Inc. from 1998 to 2015. Mr. Cook holds a Bachelor of Arts degree in Economics and Mathematics from the
University of Southern California and a Master’s degree in Business Administration from Harvard Business School.
Ms. Clatterbuck has been Executive Vice President and Chief Financial Officer since February 2018. She manages the financial strategy
and operations across the company, including Treasury, Procurement, Investor Relations and Finance Operations. Ms. Clatterbuck
served as acting finance leader for Intuit’s Small Business Group from June 2017 through January 2018, led finance for the Consumer
Tax Group beginning in September 2012 and was promoted to Senior Vice President for that group in August 2016. Her earlier roles at
Intuit include Vice President of finance for the Professional Tax business in 2006 and finance director in October 2004. Ms. Clatterbuck
joined Intuit in March 2003 as a senior finance manager. Prior to Intuit, Ms.
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Clatterbuck held various financial management roles at General Electric. Before that, she was a financial litigation consultant at The
Barrington Consulting Group. Ms. Clatterbuck holds a Bachelor’s degree in commerce with a concentration in finance from the
University of Virginia.
Mr. Chriss has been Executive Vice President and General Manager of Intuit’s Small Business & Self-Employed Group since January
2019. He previously was Senior Vice President and Chief Product Officer of Intuit’s Small Business Group from January 2017 through
December 2018 and Vice President of Intuit’s Self-Employed business from August 2013 through December 2016. Prior to that, Mr.
Chriss held various other roles at Intuit since he joined in July 2004. He has served on the board of directors of Houzz Inc. since
December 2020. Mr. Chriss holds a Bachelor’s degree in Economics from Tufts University.
Ms. Fennell has been Executive Vice President, Chief People & Places Officer since August 2018 and previously served as Executive
Vice President, General Counsel and Corporate Secretary. Prior to that, she served as Senior Vice President, General Counsel and
Corporate Secretary since February 2007. Ms. Fennell joined Intuit as Vice President, General Counsel and Corporate Secretary in April
2004. She leads the team responsible for acquiring, developing, mobilizing and rewarding the company's global workforce. Prior to
joining Intuit, Ms. Fennell spent nearly eleven years at Sun Microsystems, Inc., most recently as Vice President of Corporate Legal
Resources, as well as Acting General Counsel. Prior to joining Sun, she was an associate attorney at Wilson Sonsini, Goodrich & Rosati
PC. Ms. Fennell sits on the board of directors of the Children’s Discovery Museum of San Jose. Ms. Fennell holds a Bachelor of Science
degree in Business Administration from California State University, Chico and a Juris Doctor from Santa Clara University.
Mr. Johnson has been Executive Vice President and General Manager of Intuit's Consumer Group since August 2018. He joined Intuit in
2012 as Senior Vice President of marketing. Mr. Johnson leads an organization that offers a suite of consumer tax and financial products
and services in the U.S. and Canada. He has more than 20 years’ experience in marketing, which spans across consumer packaged
goods, retail, and international and emerging markets. Prior to joining Intuit, Mr. Johnson worked for various organizations, including
Kraft Foods, SC Johnson, Kodak, Gillette, Best Buy, and the United States Air Force. He has served on the board of directors of
QUALCOMM Incorporated since November 2020. Mr. Johnson holds a Bachelor of Science degree in Operations Research from the
United States Air Force Academy.
Ms. Tessel has been Executive Vice President and Chief Technology Officer of Intuit since January 2019 and previously served as Chief
Product Development Officer of Intuit’s Small Business & Self-Employed Group from June 2017 to December 2018. Prior to joining
Intuit, Ms.Tessel worked for Docker Inc., a software containerization platform, serving as Senior Vice President of Engineering and
Executive Vice President of Strategic Development from November 2014 to June 2017, and VMware, which provides cloud computing
and related services, from June 2008 through November 2014, most recently serving as Vice President of Engineering. She has served
on the board of directors of Cisco Systems, Inc. since March 2021. Ms.Tessel holds a Bachelor’s of Science degree in Computing from
Technion – Israel Institute of Technology.
Ms. McLean has been Executive Vice President, General Counsel and Corporate Secretary since August 2020. Prior to that, she served
as Senior Vice President, General Counsel and Corporate Secretary from August 2018 to July 2020 and Vice President, Deputy General
Counsel from August 2010 to July 2018. She joined Intuit in 2006 as Director, Deputy General Counsel. Ms. McLean leads Intuit’s legal,
privacy, compliance, and global corporate affairs teams. Prior to joining Intuit, Ms. McLean spent over six years at Wind River Systems,
Inc., most recently as the Director of Legal. Prior to joining Wind River, she was an associate at Howard, Rice, Nemerovski, Canady,
Falk & Rabkin PC (now Arnold & Porter Kaye Scholer LLP). Ms. McLean holds a Bachelor of Arts degree in International Relations from
University of California, Davis and a Juris Doctor from University of California, Hastings College of Law.
Mr. Flournoy has been Senior Vice President and Chief Accounting Officer since August 2020. Prior to that, he served as Vice President
and Chief Accounting Officer since February 2014. He joined Intuit in 2003 as director of general accounting and internal controls and
served as Corporate Controller from 2012 to August 2020. From 1996 to 2003, Mr. Flournoy served as a corporate controller for various
private and public companies in California. He began his career in public accounting at Ernst & Young, where he served from 1992 to
1996. He is a California Certified Public Accountant (inactive) since 1997. Mr. Flournoy holds a Bachelor’s degree in Business
Administration – Finance from the University of Southern California and a secondary Bachelor’s degree in Accounting from San Diego
State University.
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ITEM 1A - RISK FACTORS
Our businesses routinely encounter and address risks, many of which could cause our future results to be materially different than we
presently anticipate. Below, we describe significant factors, events and uncertainties that make an investment in our securities risky,
categorized solely for ease of reference as strategic, operational, legal and compliance, and financial risks. The following events and
consequences could have a material adverse effect on our business, growth, prospects, financial condition, results of operations, cash
flows, liquidity, credit rating and reputation, and the trading price of our common stock could decline. These risks are not the only ones
we face. We could also be affected by other events, factors or uncertainties that are presently unknown to us or that we do not currently
consider to present significant risks to our business. These risks may be amplified by the COVID-19 pandemic, which has caused
significant global economic instability and uncertainty. The manner in which we respond to future developments as well as our
competitors’ reactions to those developments may affect our future operating results.
The COVID-19 pandemic has caused significant economic instability and uncertainty and the extent to which it
will impact our business, results of operations and financial condition is uncertain and difficult to predict.
The COVID-19 pandemic has caused economic instability and uncertainty globally and, during its initial phase, had a temporary
negative impact on our business. The pandemic may, in the future, have a material adverse impact on our business and financial
performance, the severity and duration of which will depend on many factors beyond our control, including the actions of governments,
businesses and other enterprises in response to the pandemic, the effectiveness of those actions, and vaccine availability, distribution
and adoption. Potential and current negative impacts of the pandemic include, but are not limited to, the following:
• The extension of federal and state tax filing deadlines for the 2019 and 2020 tax years changed the seasonality of our business,
making our revenue and operating results more difficult to predict. Any future regulatory decisions could further increase the
difficulty of forecasting our revenue and operating results, which could cause our business to materially suffer.
• There are new and more frequent attempts by malicious third parties seeking to take advantage of the pandemic to fraudulently
gain access to our systems, which could cause us to expend significant resources to remediate and could damage our
reputation.
• Changes to our business operations and the operations of our third-party partners, such as increased use of videoconferencing,
the shift to working from home, and the complexity of resuming operations in our offices under a new workplace model, has
introduced security and execution risks that could cause us to experience substantial financial losses, lose the confidence of
our customers and government agencies and harm our revenues and earnings.
• Potential disruption of services on which we rely to deliver our services to our customers, including our third-party customer
success partners and financial institutions, could prevent us or our service providers from delivering critical services to our
customers or accepting and fulfilling customer orders, any of which could materially and adversely affect our business or
reputation.
• Increased, divergent and changing governmental regulations, such as those relating to the re-opening of work facilities,
schools, public buildings and businesses, could make it considerably more difficult to develop, enhance and support our
products and services, which may cause our results of operations and financial condition to suffer.
• Failure to realize some or all of the anticipated benefits of our mergers and acquisitions activities for reasons related to the
pandemic may cause us to experience losses that result in significant harm to our operating results or financial condition.
• There could be increased volatility in our stock price related to the pandemic, which could result in the loss of some or all of the
value of an investment in Intuit.
These and other potential negative impacts relating to the COVID-19 pandemic are described further in the risk factors that follow.
STRATEGIC RISKS
Strategic risks relate to our current and future operating model, business plans and growth strategy, including the risks associated with
the following: competitive pressures on our product offerings and business models; our ability to adapt to technological changes and
global trends; our reliance on third-party intellectual property and our ability to protect our own intellectual property rights; the value of
our brand; and mergers, acquisitions and divestiture activity that may have unanticipated costs and expenses.
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 and
potential competitors range from large and established entities to emerging start-ups. Our competitors may
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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. In addition, we face competition from existing companies,
with large established consumer user-bases and broad-based platforms, who may change or expand the focus of their business
strategies and marketing to target our customers, including small businesses, tax and personal financial management customers.
We also face competition from companies with a variety of business models, including increased competition from providers of free
offerings, particularly in our tax, accounting, payments and personal finance platform businesses. In order to compete, we have also
introduced free offerings in several categories, but we may not be able to attract customers as effectively as competitors with different
business models. In addition, other providers of free offerings may provide features that we do not offer and customers who have
formerly paid for Intuit’s products and services may elect to use our competitors’ 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 potential competition from the public sector, where we face the risk of federal and state
taxing authorities proposing revenue raising strategies that involve developing and providing government tax software or other
government return preparation systems at public expense. These or similar programs may be introduced or expanded in the future,
which may change the voluntary compliance tax system in ways that could cause us to lose customers and revenue. The IRS Free File
Program is currently the sole means by which the IRS offers tax software directly to taxpayers and, in December 2019, the agreement
governing the program was amended to eliminate the pledge by the IRS that it would not offer a duplicative or competing service. Under
this program, the IRS has worked with private industry to provide more than 60 million free returns since 2003, utilizing donated private
sector tax software and e-filing services, including software that we donated to the Free File Program, for low and middle income
taxpayers at no cost to the government or individual users. However, we will no longer be participating in the IRS Free File Program, and
its continuation depends on a number of factors, including continued broad public awareness of and access to the free program and
continued private industry donations, as well as continued government support. The current agreement is scheduled to expire in October
2022. Our departure from the Free File Program may increase the likelihood that such program is terminated or is not extended beyond
October 2022. If the Free File Program were to be terminated or the IRS were to enter the software development and return preparation
space, the federal government could become a publicly funded direct competitor of the U.S. tax services industry and of Intuit.
Government funded services that curtail or eliminate the role of taxpayers in preparing their own taxes could potentially have material
and adverse revenue implications.
Future revenue growth depends upon our ability to adapt to technological change as well as global trends in the
way customers access software offerings and successfully introduce new and enhanced products, services and
business models.
We operate in industries that are characterized by rapidly changing technology, evolving industry standards and frequent new product
introductions. We must continue to innovate and develop new products and features to meet the changing needs of our customers and
partners 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 requires us to devote significant resources.
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. We also provide additional customer benefits by utilizing customer data available to us through our existing offerings. If we are not
able to develop and clearly demonstrate the value of new or upgraded products or services to our customers, or effectively utilize our
customers’ data to provide them with value, our revenues may be harmed. In addition, as we continue to introduce and expand our new
business models, including offerings that are free to end users, our customers may not perceive value in the additional benefits and
services we offer beyond our free offering and may choose not to pay for those additional benefits or we may be unsuccessful in
increasing customer adoption of these offerings or our risk profile may change, resulting in loss of revenue.
We have devoted significant resources to develop products and services for users of mobile devices, but the versions of our products
and services developed for these devices may not be compelling to users. Even if we are able to attract new users through these mobile
offerings, the amount of revenue that we derive per user from mobile offerings may be less than the revenue that we have historically
derived from users of personal computers. As new devices and new platforms are continually being released, it is difficult to predict the
problems we may encounter in developing versions of our products and services for use on mobile devices and we may need to devote
significant resources to the creation, support, and maintenance of such offerings. If we are slow to develop products and technologies
that are compatible with mobile devices, or if our competitors are able to achieve those results more quickly than us, we will fail to
capture a significant share of an increasingly important portion of the market for online services, which could adversely affect our
business. Further, legislation or regulatory changes may mandate changes in our products that make them less attractive to users.
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
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be harmed. We have also invested, and in the future, expect to invest in new business models, geographies, strategies and initiatives.
Such endeavors may involve significant risks and uncertainties, including distraction of management from current operations, expenses
associated with the initiatives 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.
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 may need to 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, and customers who are currently using the affected product may be disrupted, which
may in turn harm our future financial results, damage our brand, and result in customer loss. 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 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
cannot 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.
Our intellectual property rights are valuable, and any inability to protect them could reduce the value of our
products, services and brand.
Our patents, trademarks, trade secrets, copyrights, domain names and other intellectual property rights are important assets for us. We
aggressively protect our intellectual property rights by relying on federal, state and common law rights in the U.S. and internationally, as
well as a variety of administrative procedures. We also rely on contractual restrictions to protect our proprietary rights in products and
services. The efforts that we take to protect our proprietary rights may not always be sufficient or effective. Protecting our intellectual
property rights is costly and time consuming and may not be successful in every location. Any significant impairment of our intellectual
property rights could harm our business, our brand and our ability to compete.
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.
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 events or
activities attributed to us, members of our workforce, agents, third parties we rely on, or our users, may tarnish our reputation and
reduce the value of our brands. Our brand value also depends on our ability to provide secure and trustworthy products and services as
well as our ability to protect and use our customers’ data in a manner that meets their expectations. In addition, a security incident that
results in unauthorized disclosure of our customers’ sensitive data could cause material reputational harm. 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 and could also reduce our
stock price.
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, technologies and talent that complement our strategic direction,
both in and outside the United States. Acquisitions, such as our acquisition of Credit Karma, involve significant risks and uncertainties,
including:
• 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;
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• 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;
• risks associated with businesses we acquire or invest in, which may differ from or be more significant than the risks our other
businesses face;
• in the case of foreign acquisitions and investments, the impact of particular economic, tax, currency, political, legal and
regulatory risks associated with specific countries; and
• to the extent we use debt to fund acquisitions or for other purposes, our interest expense and leverage will increase
significantly, and to the extent we issue equity securities as consideration in an acquisition, current shareholders’ percentage
ownership and earnings per share will be diluted.
We have divested and may in the future divest certain assets or businesses that no longer fit with our strategic direction or growth
targets. Divestitures involve significant risks and uncertainties, including:
• 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 property and data to be divested from the intellectual property 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 us as a result of a divestiture; and
• 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.
In addition, any acquisition or divestiture that we announce may not be completed if closing conditions are not satisfied. 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. In particular, if we are unable to successfully operate together with Credit Karma to achieve shared growth
opportunities or combine reporting or other processes within the expected time frame, such delay may materially and adversely affect
the benefits that we expect to achieve as a result of the Credit Karma acquisition and could result in additional costs or loss of revenue.
Moreover, the impact of COVID-19, adverse changes in market conditions and other factors, such as the failure to realize some or all of
the anticipated benefits of the Credit Karma acquisition, may cause the acquisition to be dilutive to Intuit’s operating earnings per share
beyond the first fiscal year after close. Any dilution of our non-GAAP diluted earnings per share could cause the price of shares of Intuit
Common Stock to decline or grow at a reduced rate.
OPERATIONAL RISKS
Operational risks arise from internal and external events relating to systems, processes and people. Risks that affect the operation of
our businesses include the following: potential security incidents; privacy and cybersecurity concerns relating to online offerings;
fraudulent activities by third parties; relationships with third parties; competition for and retention of key talent; issues with our product
launches; problems with our information technology infrastructure; and risks associated with operating internationally.
Security incidents, improper access to or disclosure of our data or customers’ data, or other cyberattacks on our
systems could harm our reputation and adversely affect our business.
We host, collect, use and retain large amounts of sensitive and personal customer and workforce data, including credit card information,
tax return information, bank account numbers, credit report information, login credentials and passwords, personal and business
financial data and transactions data, social security numbers and payroll information, as well as our confidential, nonpublic business
information. We use commercially available security technologies and security and business
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controls to limit access to and use of such sensitive data. Although we expend significant resources to create security protections
designed to shield this data against potential theft and security breaches, such measures cannot provide absolute security.
Our technologies, systems, and networks have been subject to, and are increasingly likely to continue to be the target of, cyberattacks,
computer viruses, ransomware or other malware, worms, social engineering, malicious software programs, insider threats, and other
cybersecurity incidents that could result in the unauthorized release, gathering, monitoring, use, loss or destruction of sensitive and
personal data of our customers and members of our workforce, or Intuit's sensitive business data or cause temporary or sustained
unavailability of our software and systems. While we maintain cybersecurity insurance, our insurance may not be sufficient to cover all
liabilities described herein. These types of incidents can be made by individuals, groups of hackers, and sophisticated organizations
including state-sponsored organizations or nation-states themselves. Customers who fail to update their systems, continue to run
software that we no longer support, fail to install security patches on a timely basis or inadequately use security controls create
vulnerabilities and make it more difficult for us to detect and prevent these kinds of attacks. We are increasingly incorporating open
source software into our products and there may be vulnerabilities in open source software that make it susceptible to cyberattacks. In
addition, because the techniques used to obtain unauthorized access to sensitive information change frequently, and are becoming
more sophisticated and are often not able to be detected until after a successful attack, we may be unable to anticipate these techniques
or implement adequate preventive measures. Although this is an industry-wide problem that affects software and hardware across
platforms, it may increasingly affect our offerings because cyber-criminals tend to focus their efforts on well-known offerings that are
popular among customers and hold sensitive information and we expect them to continue to do so.
Further, the security measures that we implement may not be able to prevent unauthorized access to our products and our customers’
account data. While we provide resources like mandatory annual security training for our workforce, third parties may still be able to
fraudulently induce members of our workforce, customers or users by social engineering means, such as email phishing, to disclose
sensitive information in order to gain access to our systems. It is also possible that unauthorized access to or disclosure of customer
data may occur due to inadequate use of security controls by our customers or members of our workforce. Accounts created with weak
or recycled passwords could allow cyberattackers to gain access to customer data. Unauthorized persons could gain access to
customer accounts if customers do not maintain effective access controls of their systems and software. In addition, we are experiencing
new and more frequent attempts by third parties to use the COVID-19 pandemic to fraudulently gain access to our systems, such as
through increased email phishing of our workforce.
Criminals may also use stolen identity information obtained outside of our systems to gain unauthorized access to our customers’ data.
We have experienced such instances in the past and as the accessibility of stolen identity information increases, generally, we may
experience further instances of unauthorized access to our systems through the use of stolen identity information of our customers or
members of our workforce in the future. Further, our customers may choose to use the same login credentials across multiple products
and services unrelated to our products. Such customers’ login credentials may be stolen from products offered by third-party service
providers unrelated to us and the stolen identity information may be used by a malicious third party to access our products, which could
result in disclosure of confidential information. In addition, in response to the COVID-19 pandemic, we shifted nearly all our workforce
from office locations to work from home environments. We expect to resume operations in our offices under a hybrid model where our
workforce will spend a portion of their time working in our offices and a portion of their time working from home. This model increases
our exposure to security-related risks due to operational changes, such as the increased use of videoconferencing.
Our efforts to protect data may also be unsuccessful due to software bugs (whether open source or proprietary code), break-ins,
workforce member error or other threats that evolve.
Further, because we have created an ecosystem where customers can have one identity across multiple Intuit products, a security
incident may give access to increased amounts of customer data. This may result in disclosure of confidential information, loss of
customer confidence in our products, possible litigation, material harm to our reputation and financial condition, disruption of our or our
customers’ business operations and a decline in our stock price. From time to time, we detect, or receive notices from customers or
public or private agencies that they have detected, actual or perceived vulnerabilities in our servers, our software or third-party software
components that are distributed with our products or fraudulent activity by unauthorized persons utilizing our products with stolen
customer identity information. The existence of such vulnerabilities or fraudulent activity, even if they do not result in a security breach,
may undermine customer confidence as well as the confidence of government agencies that regulate our offerings. Such perceived
vulnerabilities could also seriously harm our business by tarnishing our reputation and brand and/or limiting the adoption of our products
and services and could cause our stock price to decline.
Additionally, Credit Karma is subject to an order issued in 2014 by the Federal Trade Commission ("FTC") that, among other things,
requires maintenance of a comprehensive security program relating to the development and management of new and existing products
and services and biannual independent security assessments for 20 years from the date of the order. To the extent Credit Karma shares
data covered by the order with Intuit, the order may apply to Intuit with respect to such data. Credit Karma’s failure to fulfill the
requirements of the FTC’s order could results in fines, penalties, regulatory inquiries, investigations and claims, and negatively impact
our business and reputation.
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A cybersecurity incident affecting the third parties we rely on could expose us or our customers to a risk of loss
or misuse of confidential information and significantly damage our reputation.
We depend on a number of third parties, including vendors, developers and partners who are critical to our business. We or our
customers may grant access to customer data to these third parties to help deliver customer benefits, or to host certain of our and our
customers' sensitive and personal data. In addition, we share sensitive, nonpublic business information (including, for example,
materials relating to financial, business and legal strategies) with other vendors in the ordinary course of business.
While we conduct background checks of our workforce, conduct reviews of partners, developers and vendors and use commercially
available technologies to limit access to systems and data, it is possible that one or more of these individuals or third parties may
misrepresent their intended use of data or may circumvent our controls, resulting in accidental or intentional disclosure or misuse of our
customer or workforce data. Further, while we conduct due diligence on these third parties with respect to their security and business
controls, we may not have the ability to effectively monitor or oversee the implementation of these control measures. Individuals or third
parties may be able to circumvent these security and business controls and/or exploit vulnerabilities that may exist in these controls,
resulting in the disclosure or misuse of sensitive business and personal customer or workforce information and data. In addition,
malicious actors may attempt to use the information technology supply chain to compromise our systems by, for example, introducing
malware through software updates.
A security incident involving third parties whom we rely on may have serious negative consequences for our businesses, including
disclosure of sensitive customer or workforce data, or confidential or competitively sensitive information regarding our business,
including intellectual property and other proprietary data; make our products more vulnerable to fraudulent activity; cause temporary or
sustained unavailability of our software and systems; result in possible litigation, fines, penalties and damages; result in loss of customer
confidence; cause material harm to our reputation and brands; lead to further regulation and oversight by federal or state agencies;
cause adverse financial condition; and result in a reduced stock price.
Concerns about the current privacy and cybersecurity environment, generally, could deter current and potential
customers from adopting our products and services and damage our reputation.
The continued occurrence of cyberattacks and data breaches on governments, businesses and consumers in general indicates that we
operate in an external environment where cyberattacks and data breaches are becoming increasingly common. If the global
cybersecurity environment worsens, and there are increased instances of security breaches of third-party offerings where consumers’
data and sensitive information is compromised, consumers may be less willing to use online offerings, particularly offerings like ours in
which customers often share sensitive financial data. In addition, the increased availability of data obtained as a result of breaches of
third-party offerings could make our own products more vulnerable to fraudulent activity. Even if our products are not affected directly by
such incidents, any such incident could damage our reputation and deter current and potential customers from adopting our products
and services or lead customers to cease using online and connected software products to transact financial business altogether.
If we are unable to effectively combat the increasing amount and sophistication of fraudulent activities by third
parties using our offerings, we may suffer losses, which may be substantial, and lose the confidence of our
customers and government agencies and our revenues and earnings may be harmed.
The online tax preparation, payroll administration, online payments, lending and personal financial management industries have been
experiencing an increasing amount of fraudulent activities by third parties, and those fraudulent activities are becoming increasingly
sophisticated. Although we do not believe that any of this activity is uniquely targeted at our products or businesses, this type of
fraudulent activity may adversely impact our tax, payroll, payments, lending and personal financial management businesses and is
heightened when our workforce is working from home. In addition to any losses that may result from such fraud, which may be
substantial, a loss of confidence by our customers or by governmental agencies in our ability to prevent fraudulent activity that is
perpetrated through our offerings may seriously harm our business and damage our brand. If we cannot adequately combat such
fraudulent activity that is perpetrated through our offerings, governmental authorities may refuse to allow us to continue to offer such
services, or these services may otherwise be adversely impacted, which could include federal or state tax authorities refusing to allow us
to process our customers’ tax returns electronically, resulting in a significant adverse impact on our earnings and revenue. As fraudulent
activities become more pervasive and increasingly sophisticated, and fraud detection and prevention measures must become
correspondingly more complex to combat them across the various industries in which we operate, we may implement risk control
mechanisms that could make it more difficult for legitimate customers to obtain and use our products, which could result in lost revenue
and negatively impact our earnings.
If we fail to process transactions effectively or fail to adequately protect against disputed or potential fraudulent
activities, our business may be harmed.
Our operations process a significant volume and dollar value of transactions on a daily basis, especially in our payroll, payments and
personal financial management businesses. Despite our efforts to ensure that effective processing systems and controls are in place to
handle transactions appropriately, it is possible that we may make errors or that funds may be misappropriated due to fraud. The
likelihood of any such error or misappropriation may increase as we accelerate the speed at which we process transactions. The
systems supporting our business are comprised of multiple technology platforms that are sometimes difficult to scale. If we are unable to
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effectively manage our systems and processes, or if there is an error in our products, we may be unable to process customer data in an
accurate, reliable and timely manner, which may harm our
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reputation, the willingness of customers to use our products, and our financial results. 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.
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.
Our reputation and ability to attract, retain and serve our customers is dependent upon the reliable performance of our products and our
underlying technical infrastructure. As we continue to grow our online services, we become more dependent on the continuing operation
and availability of our information technology and communications systems and those of our external service providers, including, for
example, third-party Internet-based or cloud computing services. We do not have redundancy for all of our systems, and our disaster
recovery planning may not account for all eventualities. We have designed a significant portion of our software and computer systems to
utilize data processing and storage capabilities provided by public cloud providers, such as Amazon Web Services. If any public cloud
service that we use is unavailable to us for any reason, our customers may not be able to access certain of our cloud products or
features, which could significantly impact our operations, business, and financial results.
Failure of our systems or those of our third-party service providers, may result in interruptions in our service and loss of data or
processing capabilities, all of which may cause a loss in customers, refunds of product fees, material harm to our reputation and
operating results.
Our tax businesses must effectively handle extremely heavy customer demand during critical peak periods, which typically occur from
January until April of each year. We face significant risks in maintaining adequate service levels during these peak periods when we
derive a substantial portion of our overall revenue from the tax businesses. Any interruptions in our online tax preparation or electronic
filing service at any time during the tax season, particularly during a peak period, could result in significantly decreased revenue, lost
customers, unexpected refunds of customer charges, negative publicity and increased operating costs, any of which could significantly
harm our business, financial condition and results of operations.
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 are costly, and problems with the design or implementation of system enhancements may
harm our business and our results of operations.
Our business operations, information technology and communications systems are vulnerable to damage or interruption from natural
disasters, climate change, human error, malicious attacks, fire, power loss, telecommunications failures, computer viruses and malware,
computer denial of service attacks, terrorist attacks, public health emergencies and other events beyond our control. For example, we
modified our business practices in response to the COVID-19 pandemic (including employee travel, employee work locations and
cancellation of physical participation in meetings, events and conferences) and we expect to resume operations in our offices under a
hybrid model where our workforce will spend a portion of their time working in our offices and a portion of their time working from home.
The implementation of this hybrid model will introduce new execution risks and we may experience longer-term disruptions to our
operations as we evolve our workplace model. We may take further actions as may be required by government authorities or that we
determine are in the best interests of our employees, customers or third-party partners. We cannot predict how long any such measures
will be in place and whether we would reimplement or enhance any such measures in one or more locations in order to respond to the
effects of the pandemic or the rules, regulations or guidelines of any governmental authority. Any such measures may impair our ability
to perform critical functions or could make it considerably more difficult to develop, enhance and support our products and services.
In addition, our corporate headquarters and other critical business operations are located near major seismic faults. In the event of a
major natural or man-made disaster, our insurance coverage may not completely compensate us for our losses and our future financial
results may be materially harmed.
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 infrastructure, data hosting, public cloud and software-as-a-service providers, and internal technology systems
for many of our development, marketing, operational, support, sales, accounting and financial reporting activities. We are continually
investing resources to update and improve these systems and environments in order to meet existing needs, 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.
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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.
If we are unable to develop, manage and maintain critical third-party business relationships, our business may be
adversely affected.
Our growth is increasingly dependent on the strength of our business relationships and our ability to continue to develop, manage and
maintain new and existing relationships with third-party partners. We rely on various third-party partners, including software and service
providers, suppliers, credit reporting bureaus, vendors, manufacturers, distributors, accountants, contractors, 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. Credit Karma generates revenue from its relationships with financial institution partners, which are subject to
particular risks that affect their willingness to offer their products on Credit Karma's platform, such as adverse economic conditions and
an increasing complexity in the regulatory environment. 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. Further, there can be no assurance that we
will be able to adequately retain third-party contractors engaged to help us operate our business.
Additionally, the business operations of our third-party partners have been and could continue to be disrupted by the COVID-19
pandemic and the actions taken in response to it, including the pandemic’s effects on their third-party partners. If our third-party partners
are unable to help us operate our business as a result of the COVID-19 pandemic, our business and financial results may be negatively
impacted. For example, in the early stages of the COVID-19 pandemic, credit card companies and lenders initially and temporarily
reduced or suspended their activity on Credit Karma’s platform, which impacted Credit Karma’s revenue. 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 and our customers, 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 at all, or we may experience business interruptions upon a transition to an alternative partner.
Although we have strict standards for our suppliers and business partners to comply with the law and company policies regarding
workplace and employment practices, data use and security, environmental compliance, intellectual property licensing and other
applicable regulatory and compliance requirements, we cannot control their day-to-day practices. Any violation of laws or
implementation of practices regarded as unethical could result in supply chain disruptions, canceled orders, terminations of or damage
to key relationships, and damage to our reputation.
In particular, we have relationships with banks, credit unions and other financial institutions that support certain critical services we offer
to our customers. If macroeconomic conditions or other factors, including the effects of the COVID-19 pandemic, cause any of these
institutions to fail, consolidate, stop providing certain services or institute cost-cutting efforts, our business and financial results may
suffer and we may be unable to offer those services to our customers.
We increasingly utilize the distribution platforms of third parties like Apple’s App Store and Google’s Play Store for the distribution of
certain of our product offerings. Although we benefit from the strong brand recognition and large user base of these distribution
platforms to attract new customers, the platform owners have wide discretion to change the pricing structure, terms of service and other
policies with respect to us and other developers. Any adverse changes by these third parties could adversely affect our financial results.
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 and other key positions. Experienced personnel in the software, mobile technologies, data science, data
security, and software as a service industries are in high demand and competition for their talents is intense, especially in California and
India, where a significant number 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. The incentives we have available to attract, retain, and motivate employees provided by our
equity awards may become less effective, and if we were to issue significant equity to attract additional employees, the ownership of our
existing stockholders would be diluted. 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. Moreover, as social and economic conditions evolve
from the COVID-19 pandemic, current and prospective employees may seek new or different opportunities based on factors such as
compensation, benefits, mobility and flexibility that are different from what we offer, making it difficult to attract and retain them.
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If we experience significant product accuracy or quality problems or delays in product launches, 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 and potentially late tax law and tax form changes each year and because our customers expect high
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 may contain errors that could unexpectedly
interfere with the operation of the software or result in incorrect calculations. The complexity of the tax laws on which our products are
based 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, work with state tax administrators to
communicate with affected customers, assist customers with amendments, 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 either late in our development cycle or after release it may cause us to delay our product launch date or
suspend product availability until such issues can be fixed. Any major defects, launch delays or product suspensions 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 other payments, including those resulting from our
accuracy guarantee in our tax preparation products. For example, an error in our tax products could cause a compliance error for
taxpayers, including the over or underpayment of their federal or state tax liability. While our accuracy guarantee commits us to
reimburse penalties and interest paid by customers due solely to calculation errors in our tax preparation products, such errors may
result in additional burdens on third parties that we may need to address or that may cause us to suspend the availability of our products
until such errors are addressed. This could also affect our reputation, the willingness of customers to use our products, and our financial
results. Further, as we develop our platform to connect people to experts, such as connecting TurboTax customers with tax experts
through our TurboTax Live offering, or connecting QuickBooks customers with bookkeepers through our QuickBooks Live offering, we
face the risk that these experts may provide advice that is erroneous, ineffective or otherwise unsuitable. Any such deficiency in the
advice given by these experts may cause harm to our customers, a loss of customer confidence in our offerings or harm to our
reputation or financial results.
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:
• 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;
• 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, and public health emergencies, including divergent
governmental responses thereto across the jurisdictions in which we operate;
• import or export regulations;
• compliance with the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and laws and regulations of other jurisdictions
prohibiting corrupt payments to government officials and other third parties;
• 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.
Violations of the rapidly evolving and 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 broader workforce, prohibitions on the conduct of our business and
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damage to our reputation. Although we have implemented policies and procedures designed to promote compliance with these laws, we
cannot be sure that our workforce, contractors and agents are in compliance with our policies.
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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.
LEGAL AND COMPLIANCE RISKS
Legal and compliance risks arise from change in the government and regulatory environment, including complex and evolving
regulations relating to privacy and data security; potential litigation; regulatory inquiries and intellectual property infringement claims.
Increased government regulation of our businesses, or changes to existing regulations, may harm our operating
results.
The Company is subject to federal, state, local and international laws and regulations that affect the Company’s activities, including,
without limitation, areas of labor, advertising, tax, financial services, data privacy and security, electronic funds transfer, money
transmission, lending, digital content, consumer protection, real estate, billing, e-commerce, promotions, quality of services, intellectual
property ownership and infringement, import and export requirements, anti-corruption, foreign exchange controls and cash repatriation
restrictions, anti-competition, environmental, health and safety, and other regulated activities. There have been significant new
regulations and heightened focus by the government on many of these areas, as well as in areas such as insurance and privacy. As we
expand our products and services and revise our business models, both domestically and internationally, we may become subject to
additional government regulation or increased regulatory scrutiny. For example, in April 2020, one of our subsidiaries became a Small
Business Administration ("SBA") approved lender under the SBA’s recently established Paycheck Protection Program (“PPP”)
authorized by the Coronavirus Aid, Relief and Economic Security Act. Further, regulators (both in the U.S. and in other jurisdictions in
which we operate) may adopt new laws or regulations, change existing regulations, or their interpretation of existing laws or regulations
may differ from ours. In response to the COVID-19 pandemic, federal, state, local and foreign governmental authorities have imposed,
and may continue to impose, protocols and restrictions intended to contain the spread of the virus, including limitations on the reopening
of work facilities, schools, public buildings and businesses, quarantines, lockdowns and travel restrictions. Such restrictions have
disrupted and may continue to disrupt our business operations and limit our ability to perform critical functions.
The tax preparation industry continues to receive heightened attention from federal and state governments. New legislation, regulation,
public policy considerations, changes in the cybersecurity environment, litigation by the government or private entities, changes to or
new interpretations of existing laws 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. We may not be able to respond quickly to such regulatory, legislative and other developments, and these
changes may in turn increase our cost of doing business and limit our revenue opportunities. In addition, if our practices are not
consistent with new interpretations of existing laws, we may become subject to lawsuits, penalties, and other liabilities that did not
previously apply. 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.
Complex and evolving U.S. and international laws and regulation regarding privacy and data protection could
result in claims, changes to our business practices, penalties or increased cost of operations or otherwise harm
our business.
Regulations related to the provision of online services is evolving as federal, state and foreign governments continue to adopt new or
modify existing laws and regulations addressing data privacy and the collection, processing, storage, transfer and use of data. This
includes, for example, the EU's General Data Protection Regulation, the California Consumer Protection Act, the California Privacy
Rights Act, and the Virginia Consumer Data Protection Act, which will become effective in January 2023. In our efforts to meet the
GDPR, CCPA and other data privacy regulations, we have made and continue to make certain operational changes to our products and
business practices. If we are unable to engineer products that meet these evolving requirements or help our customers meet their
obligations under these or other new data regulations, we might experience reduced demand for our offerings. Further, penalties for
non-compliance with these laws may be significant.
In addition, the evolution of global privacy treaties and frameworks has created compliance uncertainty and increased complexity. For
example, the judicial invalidation of the EU-U.S. and Swiss-U.S. Privacy Shield frameworks that we relied on to transfer data has
created additional compliance challenges for the transfer of EU personal data to the U.S. While we rely on alternative methods for the
transfer of this data, ongoing legal challenges to these and other transfer mechanisms could cause us to incur costs or change our
business practices in a manner adverse to our business.
Other governmental authorities throughout the U.S. and around the world are considering similar types of legislative and regulatory
proposals concerning data protection. Each of these privacy, security and data protection laws and regulations could impose significant
limitations, require changes to our business, require notification to customers or workers of a security breach, restrict our use or storage
of personal information, or cause changes in customer purchasing behavior which may make our business more costly, less efficient or
impossible to conduct, and may require us to modify our current or future products
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or services, which may make customers less likely to purchase our products and may harm our future financial results. Additionally, any
actual or alleged noncompliance with these laws and regulations could result in negative publicity and subject us to investigations,
claims or other remedies, including demands that we modify or cease existing business practices, and expose us to significant fines,
penalties and other damages. We have incurred, and may continue to incur, significant expenses to comply with existing privacy and
security standards and protocols imposed by law, regulation, industry standards or contractual obligations.
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 (including class action lawsuits), 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 may increase as our businesses evolve. Any proceedings, claims or inquiries initiated by or
against us, whether successful or not, may be time consuming; result in costly litigation, damage awards, consent decrees, injunctive
relief or increased costs of business; require us to change our business practices or products; require significant amounts of
management time; result in diversion of significant operations resources; or otherwise harm our business and future financial results. For
further information about specific litigation, see Item 3, “Legal Proceedings.”
Third parties claiming that we infringe their proprietary rights may cause us to incur significant legal expenses
and prevent us from selling our products.
We may become increasingly subject to infringement claims, including patent, copyright, trade secret, and trademark infringement
claims. Litigation may be necessary to determine the validity and scope of the intellectual property rights of others. We have received a
number of allegations of intellectual property infringement claims in the past and expect to receive more claims in the future based on
allegations that our offerings infringe upon the intellectual property 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
intellectual property owners who have no relevant product revenues of their own, and against whom our own intellectual property 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 are subject to risks associated with information disseminated through our services.
The laws relating to the liability of online services companies for information such as online content disseminated through their services
are subject to frequent challenges. In spite of settled law in the U.S., claims are made against online services companies by parties who
disagree with the content. Where our online content is accessed on the internet outside of the U.S., challenges may be brought under
foreign laws which do not provide the same protections for online services companies as in the U.S. These challenges in either U.S. or
foreign jurisdictions may give rise to legal claims alleging defamation, libel, invasion of privacy, negligence, copyright or trademark
infringement, or other theories based on the nature and content of the materials disseminated through the services. Certain of our
services include content generated by users of our online services. 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.
FINANCIAL RISKS
Financial risks relate to our ability to meet financial obligations and mitigate exposure to financial impacts to our businesses or our
offerings. Financial risks arise from the following: seasonality; excessive subscription cancellations and product returns; unanticipated
changes in income tax rates; adverse global macro-economic conditions; credit risks; fluctuations in our net income; indebtedness; and
the fluctuation of our stock price.
Our tax business is highly seasonal and our quarterly results fluctuate significantly.
Our tax offerings have significant seasonal patterns. Revenue from income tax preparation products and services has historically been
heavily concentrated from November through April and this seasonality has been affected by changes to the opening and closing dates
of the tax season. For example, the IRS and many states extended their tax filing deadlines to May 17, 2021 for the 2020 tax year and to
July 15, 2020 for the 2019 tax year. This seasonality has caused significant fluctuations in our quarterly financial results. Our financial
results may also fluctuate from quarter to quarter and year to year due to a variety of factors, including factors that may affect the timing
of revenue recognition. These include the timing of the availability of federal and state tax forms from taxing agencies and the ability of
those agencies to receive electronic tax return submissions; changes to our offerings that result in the inclusion or exclusion of ongoing
services; changes in product pricing strategies or product sales mix; changes in customer behavior; and the timing of our discontinuation
of support for older product offerings. Other factors that may affect our quarterly or annual financial results include the timing of
acquisitions, divestitures, and
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goodwill and acquired intangible asset impairment charges. Any fluctuations in our operating results may adversely affect our stock
price.
If actual customer refunds for our offerings exceed the amount we have reserved our future financial results may
be harmed.
Like many software companies we refund customers for product returns and subscription cancellations. We establish reserves against
revenue in our financial statements based on estimated customer refunds. We closely monitor this refund activity in an effort to maintain
adequate reserves. In the past, customer refunds have not differed significantly from these reserves. However, if we experience actual
customer refunds or an increase in risks of collecting customer payments that significantly exceed the amount we have reserved, it may
result in lower net revenue.
Unanticipated changes in our income tax rates or other indirect tax 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, by changes in our stock price, or by changes in tax laws or their interpretation. There are several pending
proposed changes to U.S. and non-U.S. tax legislation and the ultimate enactment of any of them could have a negative impact on our
effective tax rate. Foreign governments may enact tax laws that could result in further changes to global taxation and materially affect
our financial position and results of operations. 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.
An increasing number of states and foreign jurisdictions have adopted laws or administrative practices, that impose new taxes on all or a
portion of gross revenue or other similar amounts or impose additional obligations to collect transaction taxes such as sales,
consumption, value added, or similar taxes. We may not have sufficient lead time to build systems and processes to collect these taxes
properly, or at all. Failure to comply with such laws or administrative practices, or a successful assertion by such states or foreign
jurisdictions requiring us to collect taxes where we do not, could result in material tax liabilities, including for past sales, as well as
penalties and interest.
Adverse global economic conditions could harm our business and financial condition.
Adverse macroeconomic developments could negatively affect our business and financial condition. Adverse global economic events
have caused, and could, in the future, cause disruptions and volatility in global financial markets and increased rates of default and
bankruptcy, and could impact consumer and small business spending. 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. Challenging economic times could cause potential new customers not to purchase or to delay purchasing our
products and services, and could cause our existing customers to discontinue purchasing or delay upgrades of our existing products and
services. In addition, financial institution partners may again decrease or suspend their activity on Credit Karma’s platform, Credit
Karma’s members may decrease their engagement on the platform or their creditworthiness could be negatively impacted, reducing
members' ability to qualify for credit cards and loans. Any of the foregoing may negatively impact our revenues and future financial
results. Decreased consumer spending levels could also reduce credit and debit card transaction processing volumes causing
reductions in our payments revenue. Poor economic conditions and high unemployment have caused, and could in the future 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 could negatively affect the cash flow of our distributors
and resellers who could, in turn, delay paying their obligations to us, which could increase our credit risk exposure and cause delays in
our recognition of revenue or future sales to these customers. Any of these events could harm our business and our future financial
results.
The COVID-19 pandemic and the actions taken in response to it have significantly increased economic and demand uncertainty.
Accordingly, the risks described in the paragraph above may be more likely to materialize, any of which could harm our business and
our future financial results.
We provide capital to small businesses, which exposes us to certain risk, and may cause us material financial or
reputational harm.
We provide capital to qualified small businesses, which exposes us to the risk of our borrowers’ inability to repay such loans. We have
also entered into credit arrangements with financial institutions to obtain the capital we provide under this offering. Any termination or
interruption in the financial institutions’ ability to lend to us could interrupt our ability to provide capital to qualified small businesses.
Further, our credit decisioning, pricing, loss forecasting, scoring and other models used to evaluate loan applications may contain errors
or may not adequately assess creditworthiness of our borrowers, or may be otherwise ineffective, resulting in incorrect approvals or
denials of loans. It is also possible that loan applicants could provide false or incorrect information. Moreover, the COVID-19 pandemic
and the actions taken in response to it have had a significant impact on small businesses and may increase the likelihood that our
borrowers are unable to repay their loans. If any of the foregoing events were to occur, our reputation, relationships with borrowers,
collections of loans receivable and financial results could be harmed. In addition, one of our subsidiaries is a lender and a servicer under
the PPP to support our small business customers and other eligible applicants during the pandemic. Our participation in this program
exposes us to many of the risks described
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above and additional risks, such as borrower default, the SBA declining to forgive or honor its guarantee with respect to PPP loans and
litigation or other disputes with borrowers or others related to our PPP activities.
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 $196 million in fiscal 2021; $28 million
in fiscal 2020; and $26 million in fiscal 2019. 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 July 31, 2021, we had $5.6 billion in goodwill and $3.3 billion in net acquired intangible assets on our consolidated 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.
We have incurred indebtedness and may incur other debt in the future, which may adversely affect our financial
condition and future financial results.
As of July 31, 2021, we had an aggregate of $2.0 billion of indebtedness outstanding under our credit facilities and our senior unsecured
notes. Under the agreements governing our indebtedness, we are permitted to incur additional debt. This debt, and any debt that we
may incur in the future, 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, share repurchases and acquisitions;
and
• limiting our flexibility in planning for, or reacting to, changes in our businesses and our industries.
If we are unable to generate sufficient cash flow from operations in the future to service our debt, we may be required, among other
things, to seek additional financing in the debt or equity markets, refinance or restructure all or a portion of our indebtedness, sell
selected assets or reduce or delay planned capital, operating or investment expenditures. Such measures may not be sufficient to
enable us to service our debt.
Additionally, the agreements governing our indebtedness impose restrictions on us and require us to comply with certain covenants. For
example, our credit facilities restrict 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 credit
facilities and the indenture governing our senior unsecured notes limit our ability to create liens our and subsidiaries’ assets and engage
in sale and leaseback transactions. If we breach any of these covenants and do not obtain a waiver from the lenders or the noteholders,
as applicable, then, subject to applicable cure periods, any or all of our outstanding indebtedness may be declared immediately due and
payable. There can be no assurance that any refinancing or additional financing would be available on terms that are favorable or
acceptable to us, if at all.
Under the terms of our outstanding senior unsecured notes, we may be required to repurchase the notes for cash prior to their maturity
in connection with the occurrence of certain changes of control that are accompanied by certain downgrades in the credit ratings of the
notes. The repayment obligations under the notes may have the effect of discouraging, delaying or preventing a takeover of our
company. If we were required to pay the notes prior to their scheduled maturity, it could have a negative impact on our cash position and
liquidity and impair our ability to invest financial resources in other strategic initiatives.
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 unsecured
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 negatively impact the terms of any such financing.
We cannot guarantee that our share repurchase program will be fully consummated or that it will enhance long-
term stockholder value.
We have a stock repurchase program under which we are authorized to repurchase our common stock. The repurchase program does
not have an expiration date and we are not obligated to repurchase a specified number or dollar value of shares. Our repurchase
program may be suspended or terminated at any time. Even if our stock repurchase program is fully implemented, it may not enhance
long-term stockholder value. Also, the amount, timing, and execution of our stock repurchase programs may fluctuate based on our
priorities for the use of cash for other purposes and because of changes in cash flows, tax laws, and the market price of our common
stock.
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Our stock price may be volatile and your investment could lose value.
Our stock price is subject to changes in recommendations or earnings estimates by financial analysts, changes in investors’ or analysts’
valuation measures for our stock, our credit ratings and market trends unrelated to our performance. Furthermore, speculation in the
press or investment community about our strategic position, financial condition, results of operations, business or security of our
products, can cause changes in our stock price. These factors, as well as general economic and political conditions, including the effects
of the COVID-19 pandemic, and the timing of announcements in the public market regarding new products, product enhancements or
technological advances by our competitors or us, and any announcements by us of acquisitions, major transactions, or management
changes may adversely affect our stock price. Moreover, the COVID-19 pandemic has caused significant volatility in the global financial
markets, which has resulted in significant volatility in our stock price recently. Further, any changes in the amounts or frequency of share
repurchases or dividends may also adversely affect our stock price. A significant drop in our stock price could expose us to the risk of
securities class actions lawsuits, which may result in substantial costs and divert management’s attention and resources, which may
adversely affect our business.
ITEM 1B - UNRESOLVED STAFF COMMENTS
None.
ITEM 2 - PROPERTIES
Our principal locations, their purposes, and the expiration dates for the leases on facilities at those locations as of July 31, 2021 are
shown in the table below. We have renewal options on many of our leases.
Principal
Approximate Lease
Square Expiration
Location Purpose Feet Dates
Mountain View, California Corporate headquarters and principal offices for Small Business & 487,000 2024 - 2026
Self-Employed segment
Mountain View, California Corporate headquarters and principal offices for Small Business & 185,000 Owned
Self-Employed segment
Bangalore, India Principal offices for Intuit India 478,000 2022 - 2025
San Diego, California Principal offices for Consumer segment 466,000 Owned
Oakland, California Principal offices for Credit Karma segment 167,000 2031
Plano, Texas Principal offices for ProConnect segment 166,000 2026
We also lease or own facilities in a number of domestic locations and lease facilities internationally in Canada, the United Kingdom,
Australia, Israel, and several other locations. We believe our facilities are suitable and adequate for our current and near-term needs,
and that we will be able to locate additional facilities as needed. See Note 9 to the financial statements in Item 8 of this Annual Report
for more information about our lease commitments.
ITEM 3 - LEGAL PROCEEDINGS
See Note 13 to the financial statements in Item 8 of this Annual Report for a description of legal proceedings.
ITEM 4 - MINE SAFETY DISCLOSURES
None.
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PART II
ITEM 5 - MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER
MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market Information for Common Stock
Intuit’s common stock is quoted on the Nasdaq Global Select Market under the symbol “INTU.”
Stockholders
As of August 31, 2021 we had approximately 490 record holders and approximately 700,000 beneficial holders of our common stock.
Dividends
We declared cash dividends that totaled $2.36 per share of outstanding common stock or $651 million during fiscal 2021 and $2.12 per
share of outstanding common stock or $562 million during fiscal 2020. In August 2021 our Board of Directors declared a quarterly cash
dividend of $0.68 per share of outstanding common stock payable on October 18, 2021 to stockholders of record at the close of
business on October 11, 2021. We currently expect to continue to pay comparable cash dividends on a quarterly basis in the future;
however, future declarations of dividends and the establishment of future record dates and payment dates are subject to the final
determination of our Board of Directors.
Recent Sales of Unregistered Securities
None.
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Stock repurchase activity during the three months ended July 31, 2021 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
May 1, 2021 through May 31, 2021 303,000 $416.09 303,000 $1,689,907,473
June 1, 2021 through June 30, 2021 354,266 $470.86 354,266 $1,523,097,184
July 1, 2021 through July 31, 2021 341,250 $510.62 341,250 $1,348,848,471
Total 998,516 $467.83 998,516
Note: All of the shares purchased during the three months ended July 31, 2021 were purchased under a plan we announced on August
21, 2018 pursuant to which we are authorized to repurchase up to $2 billion of our common stock. At July 31, 2021, authorization from
our Board of Directors to expend up to $1.3 billion remained available under that plan. On August 20, 2021 our Board approved a new
stock repurchase program under which we are authorized to repurchase up to an additional $2 billion of our common stock.
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Company Stock Price Performance
The graph below compares the cumulative total stockholder return on Intuit common stock for the last five full fiscal years with the
cumulative total returns on the S&P 500 Index and the Morgan Stanley Technology Index for the same period. The graph assumes that
$100 was invested in Intuit common stock and in each of the other indices on July 31, 2016 and that all dividends were reinvested. The
comparisons in the graph below are based on historical data – with Intuit common stock prices based on the closing price on the dates
indicated – and are not intended to forecast the possible future performance of Intuit’s common stock.
COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN*
Among Intuit Inc., the S&P 500 Index,
and Morgan Stanley Technology Index
*$100 invested on 07/31/16 in stock or index, including reinvestments of dividends.
Fiscal year ending July 31.
Copyright© 2021 Standard and Poor’s, a division of S&P Global. All rights reserved.
July 31, July 31, July 31, July 31, July 31, July 31,
2016 2017 2018 2019 2020 2021
Intuit Inc. $ 100.00 $ 125.05 $ 187.87 $ 257.14 $ 286.29 $ 498.18
S&P 500 $ 100.00 $ 116.04 $ 134.89 $ 145.66 $ 163.08 $ 222.51
Morgan Stanley Technology Index $ 100.00 $ 127.27 $ 167.75 $ 188.40 $ 273.69 $ 370.87
ITEM 6 - SELECTED FINANCIAL DATA
Omitted at registrant’s option.
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ITEM 7 - MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) is intended to provide readers of our
consolidated financial statements with the perspectives of management. This should allow the readers of this report to obtain a
comprehensive understanding of our businesses, strategies, current trends, and future prospects. Our MD&A includes the following
sections:
• Executive Overview: High level discussion of our operating results and some of the trends that affect our business.
• Critical Accounting Policies and Estimates: Policies and estimates 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 consolidated statements of cash flows, changes in our
consolidated balance sheets, and our financial commitments.
You should note that this MD&A contains forward-looking statements that involve risks and uncertainties. Please see the section entitled
“Forward-Looking Statements” immediately preceding Part I 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 Item 8 of this Annual Report.
Due to the COVID-19 pandemic we continue to conduct business with substantial modifications to employee work locations and
employee travel, among other modifications. In June 2021 a small number of employees started returning to work locations on a limited
basis. While we have not experienced significant disruptions to our operations from the COVID-19 pandemic, we are unable to predict
the full impact that the COVID-19 pandemic will have on our operations and future financial performance, including demand for our
offerings, impact to our customers and partners, actions that may be taken by governmental authorities, and other factors identified in
“Risk Factors” in Item 1A of Part I of this Report.
In April 2020, Intuit was approved as a non-bank Small Business Administration lender for the Paycheck Protection Program (PPP). The
PPP was authorized under the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) to provide small businesses loans to
pay payroll and group health costs, salaries and commissions, mortgage and rent payments, utilities, and interest on other debt which is
designed to provide assistance to small businesses during the COVID-19 pandemic.
In August 2020, we reorganized certain technology and customer success functions that support and benefit our overall platform.
Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no
longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31,
2020 and 2019, we reclassified $180 million and $172 million from Small Business & Self-Employed, $121 million and $78 million from
Consumer, and $13 million and $12 million from ProConnect to other corporate expenses. In August 2020, we also renamed our
Strategic Partner segment as the ProConnect segment. This segment continues to serve professional accountants.
In fiscal 2021 we acquired Credit Karma. We have included their results of operations in our consolidated results of operations from the
date of acquisition. Credit Karma operates as a separate reportable segment. Segment operating income for Credit Karma includes all
direct expenses related to selling and marketing, product development, and general and administrative, which is different from our other
reportable segments. See Note 6 in Item 8 of this Annual Report for more information.
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 fiscal 2021 as well as our future prospects.
This summary is not intended to be exhaustive, nor is it a substitute for the detailed discussion and analysis provided elsewhere in this
Annual Report on Form 10-K.
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Industry Trends and Seasonality
Industry Trends
Artificial Intelligence (AI) is transforming multiple industries, including financial technology. Disruptive start-ups, emerging ecosystems
and mega-platforms are harnessing new technology to create personalized experiences, deliver data-driven insights and increase speed
of service. These shifts are creating a more dynamic and highly competitive environment where customer expectations are shifting
around the world as more services become digitized and the array of choices continues to increase.
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Seasonality
Our Consumer and ProConnect offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax
preparation products and services are typically concentrated in the period from November through April. This seasonal pattern typically
results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.
Due to the COVID-19 pandemic, the timing of tax filing seasons for fiscal 2021 and fiscal 2020 varied significantly. In fiscal 2019, the IRS
began accepting returns on January 28, 2019 and the tax filing deadline was April 15, 2019. In fiscal 2020, the IRS began accepting
returns on January 27, 2020 and the tax filing deadline was July 15, 2020. In fiscal 2021, the IRS began accepting returns on February
12, 2021 and the tax filing deadline was May 17, 2021. These changes to the tax filing seasons impacted our quarterly financial results
during fiscal 2021 and fiscal 2020.
We expect the seasonality of our Consumer and ProConnect businesses to continue to have a significant impact on our quarterly
financial results in the future.
Key Challenges and Risks
Our growth strategy depends upon our ability to initiate and embrace disruptive technology trends, to enter new markets, and to drive
broad adoption of the products and services we develop and market. Our future growth also increasingly depends on the strength of our
third-party business relationships and our ability to continue to develop, maintain, and strengthen new and existing relationships. To
remain competitive and continue to grow, we are investing significant resources in our product development, marketing, and sales
capabilities, and we expect to continue to do so in the future.
As we offer more online services, the ongoing operation and availability of our platforms and systems and those of our external service
providers is becoming increasingly important. Because we help customers manage their financial lives, we face risks associated with the
hosting, collection, use, and retention of personal customer information and data. We are investing significant management attention
and resources in our information technology infrastructure and in our privacy and security capabilities, and we expect to continue to do
so in the future.
For our consumer and professional tax offerings, we have implemented additional security measures and are continuing to work with
state and federal governments to implement industry-wide security and anti-fraud measures, including sharing information regarding
suspicious filings. We received ISO 27001 certification for a portion of our systems and we continue to invest in security measures and
to work with the broader industry and government to protect our customers against this type of fraud. Additionally, Credit Karma’s
security measures are regularly reviewed and updated.
For a complete discussion of the most significant risks and uncertainties affecting our business, please see “Forward-Looking
Statements” immediately preceding Part I and “Risk Factors” in Item 1A of Part I of this Report
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Overview of Financial Results
The most important financial indicators that we use to assess our business are revenue growth for the company as a whole and for each
reportable segment; operating income growth for the company as a whole; earnings per share; and cash flow from operations. We also
track certain non-financial drivers of revenue growth and, when material, identify them in the applicable discussions of segment results
below. Service offerings are a significant part of our business. Our total service and other revenue was $7.9 billion or 82% of our total
revenue in fiscal 2021 and we expect our total service and other revenue to continue to grow in the future.
Key highlights for fiscal 2021 include the following:
Small Business & Self-Employed
Revenue of revenue of Consumer revenue of
$9.6 B $4.7 B $3.6 B
up 25% from fiscal 2020 up 16% from fiscal 2020 up 14% from fiscal 2020
Operating income of Net income of Diluted net income per share of
$2.5 B $2.1 B $7.56
up 15% from fiscal 2020 up 13% from fiscal 2020 up 9% from fiscal 2020
We ended fiscal 2021 with cash, cash equivalents and investments totaling $3.9 billion.
CRITICAL ACCOUNTING POLICIES AND ESTIMATES
In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we are
required to 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 consolidated balance sheets. We believe that
the estimates, assumptions, and judgments involved in the following accounting policies have the greatest potential impact on our
consolidated financial statements, so we consider these to be our critical accounting policies:
• Revenue Recognition
• Business Combinations
• Goodwill, Acquired Intangible Assets, and Other Long-Lived Assets – Impairment Assessments
• Legal Contingencies
• Accounting for Income Taxes – Estimates of Deferred Taxes, Valuation Allowances, and Uncertain Tax Positions
Our senior management has reviewed the development and selection of these critical accounting policies and their disclosure in this
Annual Report on Form 10-K with the Audit and Risk Committee of our Board of Directors.
Revenue Recognition
We derive our revenue primarily from the sale of online services such as tax, accounting, payroll, merchant payment processing,
delivery of qualified links and packaged desktop software products and desktop software subscriptions. Our contracts with customers
often include promises to transfer multiple products and services. In determining how revenue should be recognized, a five-step process
is used, which requires judgment and estimates within the revenue recognition process. The primary judgments include identifying the
performance obligations in the contract and determining whether the performance obligations are distinct. If any of these judgments
were to change it could cause a material increase or decrease in the amount
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of revenue we report in a particular period. For additional information, see “Revenue Recognition” in Note 1 to the financial statements in
Item 8 of this Annual Report.
Business Combinations
As described in “Description of Business and Summary of Significant Accounting Policies – Business Combinations,” in Note 1 to the
financial statements in Item 8 of this Annual Report, under the acquisition method of accounting we generally recognize the identifiable
assets acquired, the liabilities assumed, and any noncontrolling interests in an acquiree at their fair values as of the date of acquisition.
We measure goodwill as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition
date fair values of the identifiable assets acquired and liabilities assumed. The acquisition method of accounting requires us to exercise
judgment and make significant estimates and assumptions regarding the fair values of the elements of a business combination as of the
date of acquisition, including the fair values of identifiable intangible assets, deferred tax asset valuation allowances, liabilities related to
uncertain tax positions, and contingencies. This method also requires us to refine these estimates over a one-year measurement period
to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have
affected the measurement of the amounts recognized as of that date. If we are required to retroactively adjust provisional amounts that
we have recorded for the fair values of assets and liabilities in connection with acquisitions, these adjustments could materially decrease
our operating income and net income and result in lower asset values on our consolidated balance sheet.
Significant estimates and assumptions that we must make in estimating the fair value of acquired technology, customer lists, and other
identifiable intangible assets include future cash flows that we expect to generate from the acquired assets. If the subsequent actual
results and updated projections of the underlying business activity change compared with the assumptions and projections used to
develop these values, we could record impairment charges. In addition, we have estimated the economic lives of certain acquired assets
and these lives are used to calculate depreciation and amortization expense. If our estimates of the economic lives change, depreciation
or amortization expenses could be accelerated or slowed.
Goodwill, Acquired Intangible Assets and Other Long-Lived Assets – Impairment Assessments
We estimate the fair value of acquired intangible assets and other long-lived assets that have finite useful lives whenever an event or
change in circumstances indicates that the carrying value of the asset may not be recoverable. We test for potential impairment of
goodwill and other intangible assets that have indefinite useful lives annually in our fourth fiscal quarter or whenever indicators of
impairment arise. The timing of the annual test may result in charges to our consolidated statement of operations in our fourth fiscal
quarter that could not have been reasonably foreseen in prior periods.
As described in “Description of Business and Summary of Significant Accounting Policies – Goodwill, Acquired Intangible Assets and
Other Long-Lived Assets,” in Note 1 to the financial statements in Item 8 of this Annual Report, in order to estimate the fair value of
goodwill we use a weighted combination of a discounted cash flow model (known as the income approach) and comparisons to publicly
traded companies engaged in similar businesses (known as the market approach). The income approach requires us to use a number of
assumptions, including market factors specific to the business, the amount and timing of estimated future cash flows to be generated by
the business over an extended period of time, long-term growth rates for the business, and a rate of return that considers the relative
risk of achieving the cash flows and the time value of money. We evaluate cash flows at the reporting unit level. Although the
assumptions we use in our discounted cash flow model are consistent with the assumptions we use to generate our internal strategic
plans and forecasts, significant judgment is required to estimate the amount and timing of future cash flows from each reporting unit and
the relative risk of achieving those cash flows. When using the market approach, we make judgments about the comparability of publicly
traded companies engaged in similar businesses. We base our judgments on factors such as size, growth rates, profitability, risk, and
return on investment. We also make judgments when adjusting market multiples of revenue, operating income, and earnings for these
companies to reflect their relative similarity to our own businesses. See Note 5 to the financial statements in Item 8 of this Annual Report
for a summary of goodwill by reportable segment.
We estimate the recoverability of acquired intangible assets and other long-lived assets that have finite useful lives by comparing the
carrying amount of the asset to the future undiscounted cash flows that we expect the asset to generate. In order to estimate the fair
value of those assets, we estimate the present value of future cash flows from those assets. The key assumptions that we use in our
discounted cash flow model are the amount and timing of estimated future cash flows to be generated by the asset over an extended
period of time and a rate of return that considers the relative risk of achieving the cash flows and the time value of money. Significant
judgment is required to estimate the amount and timing of future cash flows and the relative risk of achieving those cash flows. We also
make judgments about the remaining useful lives of acquired intangible assets and other long-lived assets that have finite lives. See
Note 5 to the financial statements in Item 8 of this Annual Report for a summary of cost, accumulated amortization and weighted
average life in years for our acquired intangible assets.
Assumptions and estimates about future values and remaining useful lives 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, if our future operating results do not meet current forecasts or if we experience a
sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our
reporting units, we may be required to record future impairment charges for goodwill and
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acquired intangible assets. Impairment charges could materially decrease our future net income and result in lower asset values on our
consolidated balance sheet.
During the fourth quarters of fiscal 2021, fiscal 2020, and fiscal 2019 we performed our annual goodwill impairment tests. Using the
methodology described in “Description of Business and Summary of Significant Accounting Policies – Goodwill, Acquired Intangible
Assets and Other Long-Lived Assets,” in Note 1 to the financial statements in Item 8 of this Annual Report, we determined that the
estimated fair values of all of our reporting units exceeded their carrying values and that they were not impaired. In addition, during this
analysis we concluded that the estimated fair values of all of our reporting units substantially exceeded their carrying values.
Legal Contingencies
We are subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our
business. We review the status of each significant matter quarterly and assess our potential financial exposure. If the potential loss from
any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we record a liability and an expense
for the estimated loss. If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose
the range of the possible loss. Significant judgment is required in the determination of whether a potential loss is probable, reasonably
possible, or remote as well as in the determination of whether a potential exposure is reasonably estimable. Our accruals are based on
the best information available at the time. As additional information becomes available, we reassess the potential liability related to our
pending claims and litigation and may revise our estimates. Potential legal liabilities and the revision of estimates of potential legal
liabilities could have a material impact on our financial position and results of operations. See Note 13 to the financial statements in
Item 8 of this Annual Report for more information.
Accounting for Income Taxes – Estimates of Deferred Taxes, Valuation Allowances, and Uncertain Tax Positions
We estimate our income taxes based on the various jurisdictions where we conduct business. Significant judgment is required in
determining our worldwide income tax provision. The calculation of our tax liabilities involves dealing with uncertainties in the application
of complex tax rules and the potential for future adjustment of our uncertain tax positions by the United States Internal Revenue Service
or other taxing jurisdictions. We estimate our current tax liability and assess temporary differences that result from differing treatments of
certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which we show on our
consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be realized. To the extent we believe
that realization is not likely, we establish a valuation allowance. When we establish a valuation allowance or increase this allowance in
an accounting period, we record a corresponding tax expense in our consolidated statement of operations.
We record a valuation allowance to reflect uncertainties about whether we will be able to utilize our deferred tax assets before they
expire. We assess the need for an adjustment to the valuation allowance on a quarterly basis. The assessment is based on our
estimates of future sources of taxable income in the jurisdictions in which we operate and the periods over which our deferred tax assets
will be realizable. While we have considered future taxable income in assessing the need for a valuation allowance for the periods
presented, we could in the future be required to increase the valuation allowance to take into account additional deferred tax assets that
we may be unable to realize. An increase in the valuation allowance could have an adverse impact on our income tax provision and net
income in the period in which we record the change.
We recognize and measure benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not
that the tax position will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that
are more likely than not of being sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more
than 50% likely of being realized upon settlement. Significant judgment is required to evaluate uncertain tax positions. We evaluate our
uncertain tax positions on a quarterly basis. Our evaluations are based upon a number of factors, including changes in facts or
circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit
issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our
income tax expense in the period in which we make the change, which could have a material impact on our effective tax rate and
operating results. See Note 10 to the financial statements in Item 8 of this Annual Report for more information.
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RESULTS OF OPERATIONS
A discussion regarding our financial condition and results of operations for fiscal 2021 compared to fiscal 2020 is presented below. A
discussion regarding our financial condition and results of operations for fiscal 2020 compared to fiscal 2019 can be found under Item 7
of Part II in our Annual Report on Form 10-K for the fiscal year ended July 31, 2020, filed with the SEC on August 31, 2020, which is
available free of charge on the SEC’s website at www.sec.gov and on the Investor Relations section of our corporate website at
investors.intuit.com.
Financial Overview
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions, except per share amounts) 2021 2020 2019 % Change % Change
Total net revenue $9,633 $7,679 $6,784 25 % 13 %
Operating income 2,500 2,176 1,854 15 % 17 %
Net income 2,062 1,826 1,557 13 % 17 %
Diluted net income per share $7.56 $6.92 $5.89 9% 17 %
Total net revenue increased $2.0 billion or 25% in fiscal 2021 compared with fiscal 2020. The acquisition of Credit Karma contributed
$865 million to total revenue in fiscal 2021. Our Small Business & Self-Employed segment revenue increased 16% primarily due to
growth in our Online Ecosystem revenue. Our Consumer segment revenue increased 14% primarily due to a shift in mix to our higher
priced offerings including TurboTax Live and growth in TurboTax federal units. See “Segment Results” later in this Item 7 for more
information.
Operating income increased $324 million or 15% in fiscal 2021 compared with fiscal 2020. The increase was due to the higher revenue
described above partially offset by an increase in expenses primarily for staffing, marketing, share-based compensation, and
amortization of other acquired intangible assets. See “Operating Expenses” later in this Item 7 for more information.
Net income increased $236 million or 13% in fiscal 2021 compared with fiscal 2020 due to the increase in operating income described
above, a $30 million gain from the sale of a note receivable that was previously written off, and a $17 million gain on other long-term
investments. These increases were partially offset by a higher tax expense for the period. Diluted net income per share increased 9% to
$7.56 for fiscal 2021 due to the increase in net income, which was partially offset by an increase in the weighted average shares
outstanding due to the shares issued as part of the acquisition of Credit Karma in the second quarter of fiscal 2021.
Segment Results
The information below is organized in accordance with our four reportable segments. All of our segments operate and sell to customers
primarily in the United States. Total international net revenue was less than 5% of consolidated total net revenue for the twelve months
ended July 31, 2021, 2020 and 2019.
In August 2020, we reorganized certain technology and customer success functions that support and benefit our overall platform.
Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no
longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31,
2020 and 2019, we reclassified $180 million and $172 million from Small Business & Self-Employed, $121 million and $78 million from
Consumer, and $13 million and $12 million from ProConnect to other corporate expenses. In August 2020, we also renamed our
Strategic Partner segment as the ProConnect segment. This segment continues to serve professional accountants.
In December 2020 we acquired Credit Karma in a business combination and it operates as a separate reportable segment. We have
included the results of operations of Credit Karma in our consolidated statements of operations from the date of acquisition. See Note 6
to the financial statements in Item 8 of this Annual Report for more information. Segment operating income for Credit Karma includes all
direct expenses, which is different from our other reportable segments where we do not fully allocate corporate expenses.
Segment operating income is segment net revenue less segment cost of revenue and operating expenses. For our Small Business &
Self-Employed, Consumer, and ProConnect reportable segments, we include expenses such as corporate selling and marketing,
product development, and general and administrative, which are not allocated to specific segments, in unallocated corporate items as
part of other corporate expenses. For Credit Karma, segment expenses include all direct expenses related to selling and marketing,
product development, and general and administrative. Unallocated corporate items for all segments include share-based compensation,
amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment
charges. These unallocated costs for all segments totaled $2.9 billion in fiscal 2021, $2.3 billion in fiscal 2020, and $2.0 billion in fiscal
2019. Unallocated costs increased in fiscal 2021
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compared with fiscal 2020 due to increased corporate product development, selling and marketing, and general and administrative
expenses in support of the growth of our businesses, higher share-based compensation expenses, higher amortization of acquired
technology, and higher amortization of other acquired intangible assets. See Note 14 to the financial statements in Item 8 of this Annual
Report for reconciliations of total segment operating income to consolidated operating income for each fiscal year presented.
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Small Business & Self-Employed
Small Business & Self-Employed segment revenue includes
both Online Ecosystem and Desktop Ecosystem revenue.
Our Online Ecosystem includes revenue from QuickBooks
Online, QuickBooks Live, QuickBooks Online Advanced and
QuickBooks Self-Employed financial and business
management offerings; small business payroll services,
including QuickBooks Online Payroll, Intuit Online Payroll, Intuit
Full Service Payroll; merchant payment processing services for
small businesses who use online offerings; QuickBooks
Commerce, QuickBooks Cash, and financing for small
businesses.
Our Desktop Ecosystem includes revenue from our
QuickBooks Desktop packaged software products (Desktop
Pro, Desktop for Mac, Desktop Premier, and QuickBooks Point
of Sale); QuickBooks Desktop software subscriptions
(QuickBooks Desktop Pro Plus, QuickBooks Desktop Premier
Plus, and QuickBooks Enterprise, and ProAdvisor Program
memberships for the accounting professionals who serve small
businesses); desktop payroll products (QuickBooks Basic
Payroll, QuickBooks Assisted Payroll and QuickBooks
Enhanced Payroll); merchant payment processing services for
small businesses who use desktop offerings; financial supplies;
and financing for small businesses.
Segment product revenue is derived from revenue related to software license and version protection for our QuickBooks Desktop
products and subscriptions, license and related updates for our desktop payroll products and financial supplies, which are all part of our
Desktop Ecosystem. Segment service and other revenue is derived from our Online Ecosystem revenue; and Desktop Ecosystem
revenue related to support and connected services for our QuickBooks Desktop and desktop payroll products and subscriptions and
merchant payment processing services.
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions) 2021 2020 2019 % Change % Change
Product revenue $ 1,085 $ 1,032 $ 1,036
Service and other revenue 3,603 3,018 2,497
Total segment revenue $ 4,688 $ 4,050 $ 3,533 16 % 15 %
% of total revenue 49 % 53 % 52 %
Segment operating income $ 2,590 $ 2,091 $ 1,722 24 % 21 %
% of related revenue 55 % 52 % 49 %
Revenue classified by significant product and service offerings was as follows:
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions) 2021 2020 2019 % Change % Change
Net revenue:
QuickBooks Online Accounting $ 1,699 $ 1,354 $ 980 25 % 38 %
Online Services 1,051 828 683 27 % 21 %
Total Online Ecosystem 2,750 2,182 1,663 26 % 31 %
QuickBooks Desktop Accounting 789 755 732 5% 3%
Desktop Services and Supplies 1,149 1,113 1,138 3% (2 %)
Total Desktop Ecosystem 1,938 1,868 1,870 4% —%
Total Small Business & Self-Employed $ 4,688 $ 4,050 $ 3,533 16 % 15 %
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Revenue for our Small Business & Self-Employed segment increased $638 million or 16% in fiscal 2021 compared with fiscal 2020. The
increase was primarily due to growth in Online Ecosystem revenue. Fiscal 2021 and 2020 revenue includes $20 million and $30 million,
respectively, of nonrecurring revenue related to the Payroll Protection Program, of which $12 million and $16 million, respectively,
related to our Online Ecosystem and $8 million and $14 million, respectively, related to our Desktop Ecosystem.
Online Ecosystem
Online Ecosystem revenue increased $568 million or 26% in fiscal 2021 compared with fiscal 2020. QuickBooks Online Accounting
revenue increased 25% in fiscal 2021 compared with fiscal 2020 primarily due to an increase in customers, a shift in mix to our higher
priced offerings and higher effective prices. Online Services revenue increased 27% in fiscal 2021 compared with fiscal 2020 primarily
due to an increase in revenue from our payments and payroll offerings. Online payments revenue increased due to an increase in
customers and an increase in charge volume per customer. Online payroll revenue increased due to an increase in customers and a
shift in mix to our full service offering.
Desktop Ecosystem
Desktop Ecosystem revenue increased $70 million in fiscal 2021 compared with fiscal 2020 primarily due to growth in our QuickBooks
Desktop Enterprise subscription offering due to an increase in customers and higher revenue for our desktop payments offering due to
higher charge volume. Also, during fiscal 2021 there was an increase in revenue from license updates as a result of price increases that
occurred during fiscal 2020. These increases were partially offset by a decline in desktop unit revenue.
Small Business & Self-Employed segment operating income increased $499 million or 24% in fiscal 2021 compared with fiscal 2020
primarily due to the increase in revenue described above, partially offset by higher expenses. We incurred higher expenses for
marketing, outside services, and sales related expenses, which were partially offset by a decrease in depreciation.
In August 2020, we reorganized certain technology and customer success functions that support and benefit our overall platform.
Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no
longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31,
2020 and 2019, we reclassified $180 million and $172 million from Small Business & Self-Employed to other corporate expenses.
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Consumer
Consumer segment product revenue is derived primarily from
TurboTax desktop tax return preparation software and related
form updates.
Consumer segment service and other revenue is derived
primarily from TurboTax Online and TurboTax Live offerings,
electronic tax filing services and connected services, and also
from our Mint offering.
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions) 2021 2020 2019 % Change % Change
Product revenue $ 201 $ 203 $ 201
Service and other revenue 3,362 2,933 2,574
Total segment revenue $ 3,563 $ 3,136 $ 2,775 14 % 13 %
% of total revenue 37 % 41 % 41 %
Segment operating income $ 2,237 $ 2,063 $ 1,820 8% 13 %
% of related revenue 63 % 66 % 66 %
Revenue for our Consumer segment increased $427 million or 14% in fiscal 2021 compared with fiscal 2020 primarily due to a shift in
mix to our higher priced product offerings including TurboTax Live and a 6% growth in TurboTax federal units.
Consumer segment operating income increased $174 million or 8% in fiscal 2021 compared with fiscal 2020 due to the higher revenue
described above, which was partially offset by higher expenses for staffing, marketing, and outside services.
In August 2020, we reorganized certain technology and customer success functions that support and benefit our overall platform.
Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no
longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31,
2020 and 2019, we reclassified $121 million and $78 million from Consumer to other corporate expenses.
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Credit Karma
Credit Karma revenue is derived from cost-per-action
transactions, which include the delivery of qualified links that
result in completed actions such as credit card issuances and
personal loan funding; and cost-per-click and cost-per-lead
transactions, which include user clicks on advertisements or
advertisements that allow for the generation of leads, and
primarily relate to mortgage and insurance businesses.
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions) 2021 2020 2019 % Change % Change
Product revenue $ — $ — $ —
Service and other revenue 865 — —
Total segment revenue $ 865 $ — $ — N/A N/A
% of total revenue 9% —% —%
Segment operating income $ 182 $ — $ — N/A N/A
% of related revenue 21 % N/A N/A
On December 3, 2020 we acquired Credit Karma. Our results of operations include the operations of Credit Karma beginning on the
date of acquisition.
Credit Karma contributed $865 million in revenue in fiscal 2021. Revenue is primarily generated from cost-per-action transactions which
are related to credit card issuances and personal loan funding.
Segment operating income was $182 million in fiscal 2021. Expenses were primarily related to staffing and marketing.
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ProConnect
ProConnect segment product revenue is derived primarily from
Lacerte, ProSeries, and ProFile desktop tax preparation
software products and related form updates.
ProConnect segment service and other revenue is derived
primarily from ProConnect Tax Online tax products, electronic
tax filing service, connected services, and bank products.
Fiscal Fiscal Fiscal 2021-2020 2020-2019
(Dollars in millions) 2021 2020 2019 % Change % Change
Product revenue $ 412 $ 400 $ 386
Service and other revenue 105 93 90
Total segment revenue $ 517 $ 493 $ 476 5% 4%
% of total revenue 5% 6% 7%
Segment operating income $ 372 $ 346 $ 330 8% 5%
% of related revenue 72 % 70 % 69 %
In August 2020, we renamed our Strategic Partner segment as the ProConnect segment. This segment continues to serve professional
accountants.
Revenue for our ProConnect segment increased $24 million or 5% in fiscal 2021 compared with fiscal 2020 primarily due to a higher
average revenue per customer and customer growth.
ProConnect segment operating income increased $26 million or 8% in fiscal 2021 compared with fiscal 2020 primarily due to the higher
revenue described above and slightly lower spending.
In August 2020, we reorganized certain technology and customer success functions that support and benefit our overall platform.
Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no
longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31,
2020 and 2019, we reclassified $13 million and $12 million from ProConnect to other corporate expense
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Cost of Revenue
% of % of % of
Fiscal Related Fiscal Related Fiscal Related
(Dollars in millions) 2021 Revenue 2020 Revenue 2019 Revenue
Cost of product revenue $ 69 4% $ 72 4% $ 77 5%
Cost of service and other revenue 1,564 20 % 1,284 21 % 1,070 21 %
Amortization of acquired technology 50 n/a 22 n/a 20 n/a
Total cost of revenue $ 1,683 17 % $ 1,378 18 % $ 1,167 17 %
Our cost of revenue has three components: (1) cost of product revenue, which includes the direct costs of manufacturing and shipping
or electronically downloading our desktop software products; (2) cost of service and other revenue, which includes the direct costs
associated with our online and service offerings, such as costs for data processing and storage capabilities from cloud providers,
customer support costs, and costs for the tax and bookkeeping experts that support our TurboTax Live and QuickBooks Live offerings,
costs related to credit score providers, and depreciation expense for developed technology; and (3) amortization of acquired technology,
which represents the cost of amortizing developed technologies that we have obtained through acquisitions over their useful lives.
Cost of product revenue as a percentage of product revenue was relatively consistent in fiscal 2021 compared with fiscal 2020. We
expense costs of product revenue as they are incurred for delivered software and we do not defer any of these costs when product
revenue is deferred.
Cost of service and other revenue as a percentage of service and other revenue decreased slightly in fiscal 2021 compared with fiscal
2020. The acquisition of Credit Karma contributed $209 million to cost of service and other revenue for fiscal 2021. The decrease in cost
of service and other revenue as a percentage of service and other revenue is primarily due to the increase in revenue described above.
Additionally, during fiscal 2021 we experienced an increase in customer success costs for TurboTax Live due to customer growth,
partially offset by a decrease in depreciation expense.
Operating Expenses
% of % of % of
Total Total Total
Fiscal Net Fiscal Net Fiscal Net
(Dollars in millions) 2021 Revenue 2020 Revenue 2019 Revenue
Selling and marketing $ 2,644 28 % $ 2,048 27 % $ 1,927 28 %
Research and development 1,678 17 % 1,392 18 % 1,233 18 %
General and administrative 982 10 % 679 9% 597 9%
Amortization of other acquired intangible assets 146 2% 6 —% 6 —%
Total operating expenses $ 5,450 57 % $ 4,125 54 % $ 3,763 55 %
Total operating expenses as a percentage of total net revenue increased in fiscal 2021 compared to fiscal 2020. Total net revenue
increased $2.0 billion or 25% and total operating expenses increased $1.3 billion or 32%, which includes $616 million of operating
expenses related to Credit Karma. Total share-based compensation expense increased $309 million; total staffing increased $396
million, including $246 million related to Credit Karma; total marketing increased $383 million, including $197 million related to Credit
Karma; and total amortization of other acquired intangible assets increased $140 million, which was primarily related to Credit Karma.
Non-Operating Income and Expenses
Interest Expense
Interest expense of $29 million in fiscal 2021 consisted primarily of interest on our senior unsecured notes, secured revolving credit
facility, unsecured term loan, and unsecured revolving credit facility. Interest expense of $14 million in fiscal 2020 consisted primarily of
interest on our unsecured term loan, unsecured revolving credit facility, secured revolving credit facility, and senior unsecured notes. See
Note 7 and Note 8 to the financial statements in Item 8 of this Annual Report for more information.
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Interest and Other Income, Net
(In millions) Fiscal 2021 Fiscal 2020 Fiscal 2019
Interest income (1) $ 11 $ 39 $ 46
Net gain on executive deferred compensation plan assets (2) 28 5 3
Other (3) 46 (8) (7)
Total interest and other income, net $ 85 $ 36 $ 42
(1) Interest income decreased in fiscal 2021 compared to fiscal 2020 due to lower average invested balances and lower average interest rates.
(2) 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 total amounts recorded in operating
expenses for each period are approximately equal to the total amounts recorded in interest and other income in those periods.
(3) In fiscal 2021 we recorded a $30 million gain from the sale of a note receivable that was previously written off and gains on other long-term
investments of $17 million.
Income Taxes
Our effective tax rates for fiscal 2021 and fiscal 2020 were approximately 19% and 17%, respectively. Excluding the tax benefits related
to share-based compensation, our effective tax rate for fiscal 2021 was approximately 24%. This rate differed from the federal statutory
rate of 21% primarily due to state income taxes and non-deductible share-based compensation, which were partially offset by the benefit
we received from the federal research and experimentation credit. Excluding the tax benefits related to share-based compensation, our
effective tax rate for fiscal 2020 was approximately 21%. This rate did not differ significantly from the federal statutory rate of 21% as
state income taxes and non-deductible share-based compensation were substantially offset by the benefit we received from the federal
research and experimentation credit. See Note 10 to the financial statements in Item 8 of this Annual Report for more information about
our effective tax rates.
At July 31, 2021, we had net deferred tax liabilities of $517 million which included a valuation allowance for state research and
experimentation tax credit carryforwards, foreign loss carryforwards, foreign intangible deferred tax assets and state operating and
capital loss carryforwards. See “Critical Accounting Policies and Estimates” earlier in this Item 7 and Note 10 to the financial statements
in Item 8 of this Annual Report for more information.
In the current global tax policy environment, the U.S. and other domestic and foreign governments continue to consider, and in some
cases enact, changes in corporate tax laws. As changes occur, we account for finalized legislation in the period of enactment.
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LIQUIDITY AND CAPITAL RESOURCES
Overview
At July 31, 2021, our cash, cash equivalents and investments totaled $3.9 billion, a decrease of $3.2 billion from July 31, 2020 due to
the factors described in “Statements of Cash Flows” below. Our primary sources of liquidity have been cash from operations, which
includes the collection of accounts receivable for products and services, the issuance of senior unsecured notes, and borrowings under
our credit facilities. Our primary uses of cash have been for research and development programs, selling and marketing activities,
repurchases of our common stock under our stock repurchase programs, the payment of cash dividends, debt service costs and debt
repayment, acquisitions of businesses, and capital projects. As discussed in “Executive Overview – Industry Trends and Seasonality”
earlier in this Item 7, our business is subject to significant seasonality. The balance of our cash, cash equivalents and investments
generally fluctuates with that seasonal pattern. We believe the seasonality of our business is likely to continue in the future.
The following table summarizes selected measures of our liquidity and capital resources at the dates indicated:
July 31, July 31, $ %
(Dollars in millions) 2021 2020 Change Change
Cash, cash equivalents and investments $ 3,870 $ 7,050 $ (3,180) (45)%
Long-term investments 43 19 24 126 %
Short-term debt — 1,338 (1,338) (100)%
Long-term debt 2,034 2,031 3 —%
Working capital 2,502 4,451 (1,949) (44)%
Ratio of current assets to current liabilities 1.9 : 1 2.3 : 1
We have historically generated significant cash from operations and we expect to continue to do so during fiscal 2022. Our cash, cash
equivalents, and investments totaled $3.9 billion at July 31, 2021, none of those funds were restricted, and approximately 92% of those
funds were located in the U.S.
On December 3, 2020 we acquired Credit Karma. The fair value of the purchase consideration totaled $7.2 billion and included $3.4
billion in cash, 10.6 million shares of Intuit common stock with a fair value of $3.8 billion and assumed equity awards for services
rendered through the acquisition date of $47 million. See "Business Combinations" below for more information.
In the fourth quarter of fiscal 2020, we borrowed the full $1 billion under our unsecured revolving credit facility which we repaid In August
2020. The unsecured revolving credit facility is available to us for general corporate purposes. In the fourth quarter of fiscal 2020, we
also issued $2 billion in senior unsecured notes for general corporate purposes, which was used to fund a portion of the acquisition of
Credit Karma. See “Commitments for Senior Unsecured Notes” later in this Item 7 for more information.
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, debt service requirements, and other liquidity requirements associated with our operations for at least the
next 12 months. We believe that our financial resources will allow us to manage any impact of COVID-19 on our business operations for
the foreseeable future, which could include potential reductions in revenue and delays in payments from customers and partners.
We expect to return excess cash generated by operations to our stockholders through payment of cash dividends, after taking into
account our operating and strategic cash needs.
Our secured revolving credit facility is available to fund a portion of our loans to qualified small businesses. At July 31, 2021, $48 million
was outstanding under the secured revolving credit facility. See “Credit Facilities” later in this Item 7 for more information.
We evaluate, on an ongoing basis, the merits of acquiring technology or businesses, or establishing strategic relationships with and
investing in other companies. Our strong liquidity profile enables us to quickly respond to these kinds of opportunities.
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Statements of Cash Flows
The following table summarizes selected items from our consolidated statements of cash flows for fiscal 2021, fiscal 2020, and fiscal
2019. See the financial statements in Item 8 of this Annual Report for complete consolidated statements of cash flows for those periods.
Fiscal Fiscal Fiscal
(Dollars in millions) 2021 2020 2019
Net cash provided by (used in):
Operating activities $ 3,250 $ 2,414 $ 2,324
Investing activities (3,965) (97) (635)
Financing activities (3,176) 2,034 (965)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash
equivalents 13 (6) (3)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted cash
equivalents $ (3,878) $ 4,345 $ 721
During fiscal 2021 we generated $3.3 billion in cash from operations and $196 million from the issuance of common stock under
employee stock plans. During the same period we used $3.1 billion for the acquisitions of businesses, $1.3 billion for the repayment of
debt, $1.0 billion for the repurchase of shares of our common stock under our stock repurchase programs, $710 million for the net
purchases of investments, $646 million for the payment of cash dividends, $383 million for payments for employee taxes withheld upon
vesting of restricted stock units, $125 million for capital expenditures, and $96 million for net originations of term loans.
During fiscal 2020 we generated $2.4 billion in cash from operations. We also received $2 billion from the issuance of senior unsecured
notes, $1 billion from borrowings under our unsecured revolving credit facility, $44 million for net principal repayments of term loans, and
$25 million from the net sales and maturities of investments. During the same period we used $561 million for the payment of cash
dividends, $323 million for the repurchase of shares of our common stock under our stock repurchase programs, $137 million for capital
expenditures, $50 million for the repayment of debt, and $33 million from the issuance of common stock under employee stock plans,
net of payments for employee taxes withheld upon vesting of restricted stock units.
Stock Repurchase Programs and Dividends on Common Stock
As described in Note 11 to the financial statements in Item 8 of this Annual Report, during fiscal 2021 and fiscal 2020 we continued to
repurchase shares of our common stock under a series of repurchase programs that our Board of Directors has authorized. At July 31,
2021, we had authorization from our Board of Directors to expend up to an additional $1.3 billion for stock repurchases. On August 20,
2021 our Board approved a new stock repurchase program under which we are authorized to repurchase up to an additional $2 billion of
our common stock. We currently expect to continue repurchasing our common stock on a quarterly basis; however, future stock
repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is
subject to the final determination of our Board of Directors.
We have continued to pay quarterly cash dividends on shares of our outstanding common stock. During fiscal 2021 we declared cash
dividends that totaled $2.36 per share of outstanding common stock or approximately $651 million. In August 2021 our Board of
Directors declared a quarterly cash dividend of $0.68 per share of outstanding common stock payable on October 18, 2021 to
stockholders of records at the close of business on October 11, 2021. We currently expect to continue paying comparable cash
dividends on a quarterly basis; however, future declarations of dividends and the establishment of future record dates and payment
dates are subject to the final determination of our Board of Directors.
Business Combinations
On December 3, 2020 we acquired Credit Karma for total consideration of $8.1 billion which included assumed equity awards and
restricted shares subject to a revest provision.
The fair value of the purchase consideration totaled $7.2 billion and included $3.4 billion in cash, 10.6 million shares of Intuit common
stock with a fair value of $3.8 billion and assumed equity awards for services rendered through the acquisition date of $47 million.
We also issued shares of common stock with a fair value of $275 million which are restricted due to a revest provision, and will be
expensed over a service period of three years. The share-based compensation expense related to these restricted shares is non-
deductible for income tax purposes. Additionally, we assumed equity awards for future services with a fair value of $663 million that are
being charged to expense over the remaining service periods, which average approximately three years.
The fair value of the stock consideration is based on the December 2, 2020 closing price of Intuit common stock of $355.49.
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As part of the merger agreement, following the close of the transaction, we issued approximately $300 million of restricted stock units to
the employees of Credit Karma, which will be charged to expense over a service period of four years.
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Credit Karma operates as a separate reportable segment. We have included the financial results of Credit Karma in the consolidated
financial statements from the date of acquisition. See Note 6 to the financial statements in Item 8 of this Annual Report for more
information.
Commitments for Senior Unsecured Notes
In June 2020, we issued $2 billion of senior unsecured notes comprised of the following:
• $500 million of 0.650% notes due July 2023;
• $500 million of 0.950% notes due July 2025;
• $500 million of 1.350% notes due July 2027; and
• $500 million of 1.650% notes due July 2030 (together, the Notes).
Interest is payable semiannually on January 15 and July 15 of each year. At July 31, 2021, our maximum commitment for interest
payments under the Notes was $140 million through the maturity dates.
The Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated
indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of
control transactions that are accompanied by certain downgrades in the credit ratings of the Notes, we will be required to repurchase the
Notes at a repurchase price equal to 101% of the aggregate outstanding principal plus any accrued and unpaid interest to but not
including the date of repurchase. The indenture governing the Notes requires us to comply with certain covenants. For example, the
Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of July 31, 2021 we were compliant with
all covenants governing the Notes. See Note 8 to the financial statements in Item 8 of this Annual Report for more information.
Credit Facilities
Unsecured Revolving Credit Facility and Term Loan
On May 2, 2019 we entered into an amended and restated credit agreement with certain institutional lenders for a credit facility with an
aggregate principal amount of $1.4 billion, including a $1 billion unsecured revolving credit facility that matures on May 2, 2024 and a
$400 million unsecured term loan that matured on February 1, 2021.
Under the amended and restated credit agreement we may, subject to certain customary conditions including lender approval, on one or
more occasions increase commitments under the unsecured revolving credit facility in an amount not to exceed $250 million in the
aggregate and may extend the maturity date up to two times. Advances under the unsecured revolving credit facility accrue interest at
rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.0% to 0.1% or the
London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.69% to 1.1%. Actual margins under either election will be
based on our senior debt credit ratings. In May 2020, we borrowed the full $1 billion under the unsecured revolving credit facility and
during the first quarter of fiscal 2021 we repaid the outstanding balance. At July 31, 2021, no amounts were outstanding under the
unsecured revolving credit facility. We currently believe that the credit facility will be available to us should we choose to borrow under it.
We monitor counterparty risk associated with the institutional lenders that are providing the credit facility.
On February 1, 2021, we paid the $325 million remaining balance of the term loan upon maturity and at July 31, 2021, no amount was
outstanding.The term loan accrued interest at rates that are equal to, at our election, either Bank of America's alternate base rate plus a
margin that ranges from 0.0% to 0.125% or LIBOR plus a margin that ranges from 0.625% to 1.125%. Under this agreement we may,
subject to certain customary conditions including lender approval, on one or more occasions increase commitments under the term loan
in an amount not to exceed $400 million in the aggregate. This option continues to be available to us through the maturity of the
amended and restated credit agreement.
The amended and restated credit agreement includes customary affirmative and negative covenants, including financial covenants that
require us to maintain a ratio of total gross debt to annual earnings before interest, taxes, depreciation and amortization (EBITDA) of not
greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to annual interest expense of not less than 3.00 to 1.00 as of the
last day of each fiscal quarter. As of July 31, 2021 we were compliant with all required covenants.
Secured Revolving Credit Facility
On February 19, 2019 a subsidiary of Intuit entered into a $300 million secured revolving credit facility with a lender to fund a portion of
our loans to qualified small businesses. The revolving credit facility is secured by cash and receivables of the subsidiary and is non-
recourse to Intuit Inc. We have entered into several amendments to the secured revolving credit facility, most recently on July 16, 2021,
primarily to extend the commitment term and maturity date. Under the amended agreement, $150 million of the facility is committed and
$150 million is uncommitted. Advances accrue interest at LIBOR plus 1.5%. Unused portions of the committed credit facility accrue
interest at a rate ranging from 0.25% to 0.75%, depending on the total unused committed balance. The commitment term is through July
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17, 2023 and the final maturity date is January 17, 2024. The amended agreement allows for the transition of the benchmark interest
rate used to calculate finance charges from
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LIBOR to the Secured Overnight Finance Rate (SOFR) plus related benchmark adjustments that represent the prevailing market
convention for dollar-denominated syndicated credit facilities. The agreement includes certain affirmative and negative covenants,
including financial covenants that require the subsidiary to maintain specified financial ratios. As of July 31, 2021 we were compliant with
all required covenants. At July 31, 2021, $48 million was outstanding under this facility and the weighted-average interest rate was
3.21%, which includes the interest on the unused committed portion. The outstanding balance is secured by cash and receivables of the
subsidiary totaling $199 million.
Cash Held by Foreign Subsidiaries
Our cash, cash equivalents and investments totaled $3.9 billion at July 31, 2021. Approximately 8% of those funds were held by our
foreign subsidiaries and subject to repatriation tax considerations. These foreign funds were located primarily in Canada, the United
Kingdom, and India. As a result of the 2017 Tax Act we do not expect to pay incremental U.S. taxes on repatriation. We have recorded
income tax expense for Canada and India withholding taxes on earnings that are not permanently reinvested. In the event that funds
from foreign operations are repatriated to the United States, we would pay withholding taxes at that time.
CONTRACTUAL OBLIGATIONS
The following table summarizes our known contractual obligations to make future payments at July 31, 2021:
Payments Due by Period
Less than 1-3 3-5 More than
(In millions) 1 year years years 5 years Total
Amounts due under executive deferred compensation plan $ 153 $ — $ — $ — $ 153
Senior unsecured notes — 500 500 1,000 2,000
Secured revolving credit facility — 48 — — 48
Interest and fees due on debt 25 48 35 40 148
Operating leases (1) 76 159 107 139 481
Purchase obligations (2) 205 215 111 — 531
Total contractual obligations (3) $ 459 $ 970 $ 753 $ 1,179 $ 3,361
(1) Includes operating leases for facilities and equipment. Amounts do not include $41 million of future sublease income or $43
million in minimum lease payments for leases signed but not yet commenced. We had no significant finance leases at July 31,
2021. See Note 9 to the financial statements in Item 8 of this Annual Report for more information.
(2) Represents agreements to purchase products and services that are enforceable, legally binding and specify terms, including:
fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the
payments.
(3) Other long-term obligations on our consolidated balance sheet at July 31, 2021 included long-term income tax liabilities of $24
million which related primarily to unrecognized tax benefits. We have not included this amount in the table above because we
cannot make a reasonably reliable estimate regarding the timing of settlements with taxing authorities, if any.
RECENT ACCOUNTING PRONOUNCEMENTS
For a description of recent accounting pronouncements and the potential impact of these pronouncements on our consolidated financial
statements, see Note 1 to the financial statements in Item 8 of this Annual Report.
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ITEM 7A - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Investment Portfolio and Interest Rate Risk
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 that are 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 or European sovereign debt in our portfolio of investments. See Note 2 and Note 3 to the financial statements in Item 8 of
this Annual Report for a summary of the amortized cost and fair value of our investments by type of issue.
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 value of those investments. At July 31, 2021, our cash
equivalents and investments totaled $3.2 billion and had a weighted average pre-tax yield of 0.356%. Total interest income for fiscal
2021 was $11 million. If the Federal Reserve Target Rate had increased by 25 basis points from the level of July 31, 2021, the value of
our investments at that date would have decreased by approximately $5 million. If the Federal Reserve Target Rate had increased by
100 basis points from the level of July 31, 2021, the value of our investments at that date would have decreased by approximately
$18 million.
We are also exposed to the impact of changes in interest rates as they affect our $1 billion unsecured revolving credit facility and $300
million secured revolving credit facility. Advances under the unsecured revolving credit facility accrue interest at rates that are equal to
Bank of America’s alternate base rate plus a margin that ranges from 0.0% to 0.1% or the London Interbank Offered Rate (LIBOR) plus
a margin that ranges from 0.69% to 1.1%. Actual margins under are based on our senior debt credit ratings. Advances under the
secured revolving credit facility accrue interest at a rate of LIBOR plus 1.5%. Consequently, our interest expense fluctuates with
changes in the general level of these interest rates. At July 31, 2021 no amounts were outstanding under the unsecured revolving credit
facility and $48 million was outstanding under the secured revolving credit facility. See Note 7 and Note 8 to the financial statements in
Item 8 of this Annual Report for more information.
In June 2020 we issued $2 billion of senior unsecured notes which was comprised of the following: $500 million of 0.650% notes due in
July 2023, $500 million of 0.950% notes due in July 2025, $500 million of 1.350% notes due in July 2027, and $500 million of 1.650%
notes due in July 2030. We carry these Notes at face value less unamortized discount and unamortized debt issuance costs on our
consolidated balance sheet. Since these 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 Item 8 of this report for more information.
Impact of Foreign Currency Rate Changes
The functional currencies of our international operating subsidiaries are generally 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 consolidated balance sheets. We include net gains and losses resulting from foreign exchange transactions in
interest and other income in our consolidated statements of operations.
Since we translate foreign currencies (primarily Canadian dollars, Indian rupees, and British pounds) 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 global subsidiaries invoice customers and satisfy their financial obligations almost exclusively in their local currencies. We
believe the impact of currency fluctuations will continue to not be significant in the foreseeable future due to the reasons cited above. As
of July 31, 2021, we did not engage in foreign currency hedging activities.
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ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
1. INDEX TO CONSOLIDATED FINANCIAL STATEMENTS
The following financial statements are filed as part of this Report:
Page
Reports of Independent Registered Public Accounting Firm 54
Consolidated Statements of Operations for each of the three years in the period ended July 31, 2021 57
Consolidated Statements of Comprehensive Income for each of the three years in the period ended July 31, 2021 58
Consolidated Balance Sheets as of July 31, 2021 and 2020 59
Consolidated Statements of Stockholders’ Equity for each of the three years in the period ended July 31, 2021 60
Consolidated Statements of Cash Flows for each of the three years in the period ended July 31, 2021 61
Notes to Consolidated Financial Statements 63
2. INDEX TO FINANCIAL STATEMENT SCHEDULES
The following financial statement schedule is filed as part of this Report and should be read in conjunction with the
Consolidated Financial Statements:
Schedule Page
II Valuation and Qualifying Accounts 96
All other schedules not listed above have been omitted because they are inapplicable or are not required.
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Intuit Inc.
Opinion on the Financial Statements
We have audited the accompanying consolidated balance sheets of Intuit Inc. (the Company) as of July 31, 2021 and 2020, and the
related consolidated statements of operations, comprehensive income, stockholders' equity and cash flows for each of the three years in
the period ended July 31, 2021, and the related notes and the financial statement schedule listed in the Index at Item 15(a) (collectively
referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material
respects, the financial position of the Company at July 31, 2021 and 2020, and the results of its operations and its cash flows for each of
the three years in the period ended July 31, 2021, in conformity with U.S. generally accepted accounting principles.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the Company’s internal control over financial reporting as of July 31, 2021, based on criteria established in Internal Control-Integrated
Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated
September 8, 2021 expressed an unqualified opinion thereon.
Basis for Opinion
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be
independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of
the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud.
Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error
or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence
regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used
and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe
that our audits provide a reasonable basis for our opinion.
Critical Audit Matters
The critical audit matters communicated below are matters arising from the current period audit of the financial statements that were
communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are material to
the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of critical
audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by
communicating the critical audit matters below, providing separate opinions on the critical audit matters or on the accounts or
disclosures to which they relate.
Determination of Distinct Performance Obligations in Revenue Contracts
Description of the Matter As described in Note 1 to the consolidated financial statements, the Company enters into contracts with
customers that often include promises to transfer multiple products and services. The Company has
generally concluded that software licenses and services are separate performance obligations and
revenues from software licenses and services are recognized as those products and services are
provided.
Given the nature of the Company’s product and service offerings, there is complexity in determining
whether software licenses and services are considered performance obligations that should be
accounted for separately or together. Auditing the Company’s determination of distinct performance
obligations related to its various product and service offerings involved complex auditor judgment. In
particular, significant judgment was required when assessing whether the promised products and
services are separate performance obligations or inputs to a combined performance obligation due to
the evaluation of the interdependency or interrelation of the promised products and services within each
contract.
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How we Addressed the We obtained an understanding, evaluated the design and tested the operating effectiveness of internal
Matter in Our Audit controls over the Company’s processes, as they relate to the determination of distinct performance
obligations. We also obtained an understanding of the Company’s product and service offerings and
tested the application of the revenue recognition accounting model to determine distinct performance
obligations.
Among other audit procedures, we evaluated whether the performance obligations identified by the
Company were capable of being distinct and distinct in the context of the contract through review of
contracts, discussions with management, observing product demonstrations and review of the
Company’s website and other marketing materials. More specifically, we evaluated the Company’s
determination of whether the contract was to deliver (1) multiple promised products or services that
constitute separate performance obligations or (2) a single performance obligation that is comprised of
the combined products or services. That is, considering the utility, integration, interrelation or
interdependence of the products and services, we evaluated whether the multiple promised products
and services that were delivered to the customer were outputs or inputs to a combined item.
Accounting for Acquisition of Credit Karma
Description of the Matter As described in Note 6 to the consolidated financial statements, during the year ended July 31, 2021,
the Company completed its acquisition of Credit Karma for a total purchase price of $7.2 billion. The
transaction was accounted for as a business combination.
Auditing the Company's accounting for its acquisition of Credit Karma was complex due to the significant
estimation uncertainty in determining the fair value of identified intangible assets, which primarily
consisted of user relationships of $2,781 million, trade names/trademarks of $375 million, and
purchased technology of $216 million. The significant estimation uncertainty was primarily due to the
sensitivity of the respective fair values to underlying assumptions about the future performance of the
acquired business. The significant assumptions used to estimate the fair values of the intangible assets
included certain assumptions that form the basis of the forecasted results including revenue growth
rates and operating margins. Each of these assumptions was subjective and involved significant
judgment as they are forward looking and could be affected by future economic and market conditions.
How we Addressed the We obtained an understanding, evaluated the design and tested the operating effectiveness of internal
Matter in Our Audit controls over the Company’s process for accounting for the acquisition. For example, we tested the
controls over the recognition and determination of the fair values of the acquired intangible assets,
including the development and review of the valuation models and underlying assumptions used to
develop such estimates.
To test the estimated fair value of the user relationships, trade name/trademark and purchased
technology intangible assets, we performed substantive audit procedures that included, among others,
evaluating the Company’s selection of valuation methodologies with the assistance of our valuation
specialists, and evaluating the significant assumptions used by the Company to develop the forecasted
results of Credit Karma including projected revenue growth rates and projected operating margins. For
example, we compared the significant assumptions to current industry, market and economic trends,
and to the historical results of the acquired business. We tested the completeness and accuracy of the
underlying data used in the valuation.
/s/ Ernst & Young LLP
We have served as the Company’s auditor since 1990.
San Jose, California
September 8, 2021
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REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Stockholders and the Board of Directors of Intuit Inc.
Opinion on Internal Control Over Financial Reporting
We have audited Intuit Inc.’s internal control over financial reporting as of July 31, 2021, based on criteria established in Internal Control
—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), (the
COSO criteria). In our opinion, Intuit Inc. (the Company) maintained, in all material respects, effective internal control over financial
reporting as of July 31, 2021, based on the COSO criteria.
As indicated in the accompanying Management’s Report on Internal Control over Financial Reporting, management’s assessment of
and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of Credit Karma, which
is included in the July 31, 2021 consolidated financial statements of the Company and constituted nine percent of both total and net
assets, respectively, as of July 31, 2021 and nine percent of both revenues and net income, respectively, for the year then ended. Our
audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial
reporting of Credit Karma.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB),
the 2021 consolidated financial statements of the Company and our report dated September 8, 2021 expressed an unqualified opinion
thereon.
Basis for Opinion
The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of
the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control over
Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our
audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in
accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission
and the PCAOB.
We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects.
Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such
other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our
opinion.
Definition and Limitations of Internal Control Over Financial Reporting
A company’s internal control over financial reporting is a process designed 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. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of
any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
/s/ Ernst & Young LLP
San Jose, California
September 8, 2021
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INTUIT INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
Twelve Months Ended July 31,
(In millions, except per share amounts) 2021 2020 2019
Net revenue:
Product $ 1,698 $ 1,635 $ 1,623
Service and other 7,935 6,044 5,161
Total net revenue 9,633 7,679 6,784
Costs and expenses:
Cost of revenue:
Cost of product revenue 69 72 77
Cost of service and other revenue 1,564 1,284 1,070
Amortization of acquired technology 50 22 20
Selling and marketing 2,644 2,048 1,927
Research and development 1,678 1,392 1,233
General and administrative 982 679 597
Amortization of other acquired intangible assets 146 6 6
Total costs and expenses 7,133 5,503 4,930
Operating income 2,500 2,176 1,854
Interest expense (29) (14) (15)
Interest and other income, net 85 36 42
Income before income taxes 2,556 2,198 1,881
Income tax provision 494 372 324
Net income $ 2,062 $ 1,826 $ 1,557
Basic net income per share $ 7.65 $ 6.99 $ 5.99
Shares used in basic per share calculations 270 261 260
Diluted net income per share $ 7.56 $ 6.92 $ 5.89
Shares used in diluted per share calculations 273 264 264
Cash dividends declared per common share $ 2.36 $ 2.12 $ 1.88
See accompanying notes.
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INTUIT INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Twelve Months Ended July 31,
(In millions) 2021 2020 2019
Net income $ 2,062 $ 1,826 $ 1,557
Other comprehensive income (loss), net of income taxes:
Unrealized gain (loss) on available-for-sale debt securities (3) 5 3
Foreign currency translation gain (loss) 11 (1) (3)
Total other comprehensive income, net 8 4 —
Comprehensive income $ 2,070 $ 1,830 $ 1,557
See accompanying notes.
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INTUIT INC.
CONSOLIDATED BALANCE SHEETS
July 31,
(Dollars in millions, except par value; shares in thousands) 2021 2020
ASSETS
Current assets:
Cash and cash equivalents $ 2,562 $ 6,442
Investments 1,308 608
Accounts receivable, net of allowance for doubtful accounts of $96 and $12 391 149
Income taxes receivable 123 12
Prepaid expenses and other current assets 316 314
Current assets before funds held for customers 4,700 7,525
Funds held for customers 457 455
Total current assets 5,157 7,980
Long-term investments 43 19
Property and equipment, net 780 734
Operating lease right-of-use assets 380 226
Goodwill 5,613 1,654
Acquired intangible assets, net 3,252 28
Long-term deferred income taxes 8 65
Other assets 283 225
Total assets $ 15,516 $ 10,931
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Short-term debt $ — $ 1,338
Accounts payable 623 305
Accrued compensation and related liabilities 530 482
Deferred revenue 684 652
Other current liabilities 361 297
Current liabilities before customer fund deposits 2,198 3,074
Customer fund deposits 457 455
Total current liabilities 2,655 3,529
Long-term debt 2,034 2,031
Long-term deferred income tax liabilities 525 2
Operating lease liabilities 380 221
Other long-term obligations 53 42
Total liabilities 5,647 5,825
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value
Authorized - 1,345 shares total; 145 shares designated Series A;
250 shares designated Series B Junior Participating
Issued and outstanding - None — —
Common stock, $0.01 par value
Authorized - 750,000 shares
Outstanding - 273,235 shares at July 31, 2021 and 261,740 shares at July 31, 2020 3 3
Additional paid-in capital 10,545 6,179
Treasury stock, at cost (12,951) (11,929)
Accumulated other comprehensive loss (24) (32)
Retained earnings 12,296 10,885
Total stockholders’ equity 9,869 5,106
Total liabilities and stockholders’ equity $ 15,516 $ 10,931
See accompanying notes.
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INTUIT INC.
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY
Accumulated
Common Stock Additional Other Total
Paid-In Treasury Comprehensive Retained Stockholders’
(Dollars in millions, shares in thousands) Shares Amount Capital Stock Loss Earnings Equity
Balance at July 31, 2018 258,616 $ 3 $ 5,335 $ (11,050) $ (36) $ 8,564 $ 2,816
Comprehensive income — — — — — 1,557 1,557
Issuance of stock under employee stock plans, net
of shares withheld for employee taxes 4,019 — 32 — — — 32
Stock repurchases under stock repurchase
programs (2,455) — — (561) — — (561)
Dividends and dividend rights declared ($1.88 per
share) — — — — — (500) (500)
Share-based compensation expense — — 405 — — — 405
Balance at July 31, 2019 260,180 3 5,772 (11,611) (36) 9,621 3,749
Comprehensive income — — — — 4 1,826 1,830
Issuance of stock under employee stock plans, net
of shares withheld for employee taxes 2,736 — (31) — — — (31)
Stock repurchases under stock repurchase
programs (1,176) — — (318) — — (318)
Dividends and dividend rights declared ($2.12 per
share) — — — — — (562) (562)
Share-based compensation expense — — 438 — — — 438
Balance at July 31, 2020 261,740 3 6,179 (11,929) (32) 10,885 5,106
Comprehensive income — — — — 8 2,062 2,070
Issuance of stock under employee stock plans, net
of shares withheld for employee taxes 2,593 — (187) — — — (187)
Stock repurchases under stock repurchase
programs (2,422) — — (1,022) — — (1,022)
Dividends and dividend rights declared ($2.36 per
share) — — — — — (651) (651)
Share-based compensation expense — — 755 — — — 755
Issuance of stock in business combination 11,324 — 3,798 — — — 3,798
Balance at July 31, 2021 273,235 $ 3 $ 10,545 $ (12,951) $ (24) $ 12,296 $ 9,869
See accompanying notes.
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INTUIT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Twelve Months Ended July 31,
(In millions) 2021 2020 2019
Cash flows from operating activities:
Net income $ 2,062 $ 1,826 $ 1,557
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 166 189 199
Amortization of acquired intangible assets 197 29 26
Non-cash operating lease cost 62 60 —
Share-based compensation expense 753 435 401
Deferred income taxes (42) (179) (7)
Other (39) 6 15
Total adjustments 1,097 540 634
Originations of loans held for sale (41) (566) —
Sale and principal payments of loans held for sale 143 482 —
Changes in operating assets and liabilities:
Accounts receivable (104) (59) 11
Income taxes receivable (51) 53 5
Prepaid expenses and other assets 30 (31) (37)
Accounts payable 206 33 90
Accrued compensation and related liabilities (70) 100 16
Deferred revenue 22 38 39
Operating lease liabilities (66) (61) —
Other liabilities 22 59 9
Total changes in operating assets and liabilities (11) 132 133
Net cash provided by operating activities 3,250 2,414 2,324
Cash flows from investing activities:
Purchases of corporate and customer fund investments (1,489) (701) (752)
Sales of corporate and customer fund investments 229 130 84
Maturities of corporate and customer fund investments 550 596 303
Purchases of property and equipment (53) (59) (76)
Capitalization of internal use software (72) (78) (79)
Acquisitions of businesses, net of cash acquired (3,064) — (64)
Originations of term loans to small businesses (232) (243) (316)
Principal repayments of term loans from small businesses 136 287 267
Other 30 (29) (2)
Net cash used in investing activities (3,965) (97) (635)
Cash flows from financing activities:
Proceeds from issuance of long-term debt, net of discount and issuance costs — 1,983 —
Proceeds from borrowings under unsecured revolving credit facility — 1,000 —
Repayments on borrowings under unsecured revolving credit facility (1,000) — —
Proceeds from borrowings under secured revolving credit facility — — 48
Repayment of debt (338) (50) (50)
Proceeds from issuance of stock under employee stock plans 196 211 284
Payments for employee taxes withheld upon vesting of restricted stock units (383) (244) (251)
Cash paid for purchases of treasury stock (1,005) (323) (556)
Dividends and dividend rights paid (646) (561) (501)
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INTUIT INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
Net change in customer fund deposits 2 19 69
Other (2) (1) (8)
Net cash provided by (used in) financing activities (3,176) 2,034 (965)
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash
equivalents 13 (6) (3)
Net increase (decrease) in cash, cash equivalents, restricted cash, and restricted
cash equivalents (3,878) 4,345 721
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of
period 6,697 2,352 1,631
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of
period $ 2,819 $ 6,697 $ 2,352
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents
reported within the consolidated balance sheets to the total amounts reported on the
consolidated statements of cash flows
Cash and cash equivalents $ 2,562 $ 6,442 $ 2,116
Restricted cash and restricted cash equivalents included in funds held for customers 257 255 236
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at
end of period $ 2,819 $ 6,697 $ 2,352
Supplemental disclosure of cash flow information:
Interest paid $ 30 $ 14 $ 17
Income taxes paid $ 578 $ 493 $ 325
Supplemental schedule of non-cash investing activities:
Issuance of common stock in a business combination $ 3,798 $ — $ —
See accompanying notes.
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INTUIT INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Description of Business and Summary of Significant Accounting Policies
Description of Business
Intuit helps consumers, small businesses, and the self-employed prosper by delivering financial management and compliance products
and services. We also provide specialized tax products to accounting professionals, who are key partners that help us serve small
business customers.
Our flagship brands, QuickBooks, TurboTax and Mint, help customers run their small businesses, pay employees and send invoices,
separate business and personal expenses, track their money, and file income taxes. ProSeries and Lacerte are our leading tax
preparation offerings for professional accountants. On December 3, 2020 we acquired Credit Karma, Inc. (Credit Karma), a consumer
technology platform that enables us to provide personalized financial offers to members including credit cards, loans, insurance, and
savings and checking accounts through an FDIC member bank partner. Incorporated in 1984 and headquartered in Mountain View,
California, we sell our products and services primarily in the United States.
Basis of Presentation
These 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. We have reclassified certain amounts previously reported in our
financial statements to conform to the current presentation, including amounts related to reportable segments. In August 2020, we
reorganized certain technology and customer success functions that support and benefit our overall platform. Additionally, certain legal,
facility and employee service costs are now managed at the corporate level. As a result, these costs are no longer included in segment
operating income and are now included in other corporate expenses. For the twelve months ended July 31, 2020 and 2019, we
reclassified $180 million and $172 million from Small Business & Self-Employed, $121 million and $78 million from Consumer, and
$13 million and $12 million from ProConnect to other corporate expenses. In August 2020, we also renamed our Strategic Partner
segment as the ProConnect segment. This segment continues to serve professional accountants. See Note 14, "Segment Information,"
for more information.
On December 3, 2020 we acquired Credit Karma, a consumer technology platform. We have included the results of operations for Credit
Karma in our consolidated statements of operations from the date of acquisition. Credit Karma operates as a separate reportable
segment. See Note 14, "Segment Information," for more information.
Seasonality
Our Consumer and ProConnect offerings have a significant and distinct seasonal pattern as sales and revenue from our income tax
preparation products and services are typically concentrated in the period from November through April. This seasonal pattern typically
results in higher net revenues during our second and third quarters ending January 31 and April 30, respectively.
Due to the COVID-19 pandemic, the timing of tax filing seasons for fiscal 2021 and fiscal 2020 varied significantly. In fiscal 2019, the IRS
began accepting returns on January 28, 2019 and the tax filing deadline was April 15, 2019. In fiscal 2020, the IRS began accepting
returns on January 27, 2020 and the tax filing deadline was July 15, 2020. In fiscal 2021, the IRS began accepting returns on February
12, 2021 and the tax filing deadline was May 17, 2021. These changes to the tax filing seasons impacted our quarterly financial results
during fiscal 2021 and fiscal 2020.
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Use of Estimates
In preparing our consolidated financial statements in accordance with U.S. generally accepted accounting principles (GAAP), we make
certain judgments, estimates, and assumptions that affect the amounts reported in our financial statements and the disclosures made in
the accompanying notes. For example, we use judgments and estimates in determining how revenue should be recognized. These
judgments and estimates include identifying performance obligations, determining if the performance obligations are distinct,
determining the standalone sales price (SSP) and timing of revenue recognition for each distinct performance obligation, and estimating
variable consideration to be included in the transaction price. We use estimates in determining the collectibility of accounts receivable
and notes receivable, the appropriate levels of various accruals including accruals for litigation contingencies, the discount rate used to
calculate lease liabilities, the amount of our worldwide tax provision, the realizability of deferred tax assets, the credit losses of available-
for-sale debt securities, and the fair value of assets acquired and liabilities assumed for business combinations. We also use estimates
in determining the remaining economic lives and fair values of acquired intangible assets, property and equipment, and other long-lived
assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Despite our
intention to establish accurate estimates and use reasonable assumptions, actual results may differ from our estimates. Additionally, in
the context of the ongoing global COVID-19 pandemic, while there has been no material impact on our estimates to date, in future
periods, facts and circumstances could change and impact our estimates.
Revenue Recognition
We derive revenue from the sale of software subscriptions, hosted services, payroll services, merchant payment processing services,
packaged software products, live expert advice, financing for small businesses, delivery of qualified links, financial supplies and
hardware. We enter into contracts with customers that include promises to transfer various products and services, which are generally
capable of being distinct and accounted for as separate performance obligations. Revenue is recognized when the promised goods or
services are transferred to customers, in an amount that reflects the consideration allocated to the respective performance obligation.
Nature of Products and Services
Desktop Offerings
Our desktop offerings consist of our QuickBooks Desktop products, which include both packaged software products and software
subscriptions, our consumer and professional tax desktop products, which include TurboTax, Lacerte and ProSeries, our desktop payroll
products, and merchant payment processing services for small businesses who use our desktop offerings.
Our QuickBooks Desktop packaged software products include a perpetual software license as well as enhancements and connected
services. We recognize revenue for our QuickBooks Desktop packaged software products at the time the software license is delivered.
We have determined that the enhancements and connected services included in our QuickBooks Desktop packaged software products
are immaterial within the context of the contract.
Our QuickBooks Desktop software subscriptions include a term software license, version protection, enhancements, support and various
connected services. We recognize revenue for the software license and version protection at the time they are delivered and recognize
revenue for support and connected services over the subscription term as the services are provided. We have determined that the
enhancements included in our QuickBooks Desktop software subscriptions are immaterial within the context of the contract.
Our consumer and professional tax packaged desktop software products include an on-premise tax software license, related tax form
updates, electronic filing service and connected services. We recognize revenue for the software license and related tax form updates,
as one performance obligation, over the period the forms and updates are delivered. We recognize revenue for our electronic filings
service and connected services as those services are provided.
We also sell some of our QuickBooks Desktop packaged software products and consumer tax packaged desktop software products in
non-consignment and consignment arrangements to certain retailers. For non-consignment retailers, we begin recognizing revenue
when control has transferred to the retailer. For consignment retailers, we begin recognizing revenue when control has transferred to the
customer, at the time the end-user sale has occurred.
Our desktop payroll products are sold as software subscriptions and include a term software license with a stand-ready obligation to
maintain compliance with current payroll tax laws, support and connected services. The term software license and stand-ready
obligation to maintain compliance with current payroll tax laws is considered one performance obligation. Each of the performance
obligations is considered distinct and control is transferred to the customer over the subscription term. As a result, revenue is recognized
ratably over the subscription term as services are provided.
We offer merchant payment processing services as a separately paid connected service for our QuickBooks Desktop packaged software
products and software subscriptions, and revenue is recognized as the services are provided to the customers.
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Online Offerings
Our online offerings include TurboTax Online and TurboTax Live, ProConnect Tax Online, QuickBooks Online, online payroll, and
merchant payment processing services for small businesses who use our online offerings.
These online offerings provide customers with the right to use the hosted software over the contract period without taking possession of
the software and are billed on either a subscription or consumption basis. Revenue related to our online offerings that are billed on a
subscription basis is recognized ratably over the contract period. Revenue related to online offerings that are billed on a consumption
basis, is recognized when the customer consumes the related service.
Other Solutions
Revenue from our Credit Karma segment is primarily comprised of revenue from the delivery of qualified links that result in completed
actions, or cost-per-action transactions. Credit Karma also generates revenue from cost-per-click and cost-per-lead transactions. All
revenue from our Credit Karma segment is included in service and other revenue on our consolidated statement of operations.
Cost-per-action revenue is earned based on a pre-determined fee for approved actions such as when credit cards are issued or when
personal loans and other loans to businesses are funded and is recognized as the actions are completed.
Cost-per-click and cost-per-lead revenue is primarily related to mortgage and insurance businesses. Cost-per-click revenue is earned as
users click on our customers' advertisements and is recognized based on the number of clicks recorded each month. Cost-per-lead
revenue is earned via customer advertisements that allow the generation of leads from consumers interested in the advertised products
and is recognized at the time a consumer request or lead is delivered to the customer.
Revenue from the sale of our financial supplies, such as printed check stock and hardware, such as retail point-of-sale equipment and
credit card readers for mobile phones, is recognized when control is transferred to the customer which is generally when the products
are shipped.
We also have revenue-sharing and royalty arrangements with third-party partners and recognize this revenue as earned based upon
reporting provided to us by our partners. In instances where we do not have reporting from our partners, we estimate revenue based on
information available to us at the time.
Product Revenue and Service and Other Revenue
Product revenue includes revenue from: QuickBooks Desktop software licenses and version protection; consumer and professional tax
desktop licenses and the related form updates; desktop payroll licenses and related updates; and financial supplies.
Service and other revenue includes revenue from: our online offerings discussed above; support, electronic filing services and
connected services included with our desktop offerings; merchant payment processing services for our desktop offerings; and revenue-
sharing and royalty arrangements.
We record revenue net of sales tax obligations. For payroll services, we generally require customers to remit payroll tax funds to us in
advance of the payroll date via electronic funds transfer. We include in total net revenue the interest earned on these funds between the
time that we collect them from customers and the time that we remit them to outside parties. Revenue for electronic payment processing
services that we provide to merchants is recorded net of interchange fees charged by credit card associations.
Judgments and Estimates
Our contracts with customers often include promises to transfer multiple products and services to a customer. In determining how
revenue should be recognized, a five-step process is used, which requires judgment and estimates. These judgments and estimates
include identifying performance obligations in the contract, determining whether the performance obligations are distinct, determining the
SSP for each distinct performance obligation, determining the timing of revenue recognition for distinct performance obligations and
estimating the amount of variable consideration to include in the transaction price.
The functionality of the software licenses included in our consumer and professional tax and payroll desktop offerings is dependent on
the related enhancements and updates included in these offerings. Judgment is required to determine whether the software license is
considered distinct and accounted for separately, or not distinct and accounted for together with the related updates and recognized
over time.
Our contracts with customers include promises to transfer various products and services, which are generally capable of being distinct
performance obligations. In many cases SSPs for distinct performance obligations are based on directly observable pricing. In instances
where the SSP is not directly observable, such as when we do not sell the product or service separately, we determine the SSP using
information that may include market conditions and other observable inputs.
Our consumer and professional tax desktop products include an on-premise tax software license and related tax form updates that are
recognized as the forms and updates are delivered. We measure progress towards complete satisfaction of the software license and
related tax form updates using an output method based on the timing of when the tax forms are delivered.
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We generally provide refunds to customers for product returns and subscription cancellations. We also provide promotional discounts
and incentive rebates on retail and distribution sales. These refunds, discounts and incentive rebates are accounted for as variable
consideration when estimating the amount of revenue to recognize. Refunds are estimated based on historical experience and current
business and economic indicators and updated at the end of each reporting period as additional information becomes available to the
extent that it is probable that a significant reversal of any incremental revenue will not occur. Discounts and incentive rebates are
estimated based on distributors' and retailers' performance against the terms and conditions of the rebate programs.
Deferred Revenue
We record deferred revenue when we have entered into a contract with a customer and cash payments are received or due prior to
transfer of control or satisfaction of the related performance obligation. During the twelve months ended July 31, 2021, we recognized
revenue of $652 million, that was included in deferred revenue at July 31, 2020. During the twelve months ended July 31, 2020, we
recognized revenue of $619 million, that was included in deferred revenue at July 31, 2019.
Our performance obligations are generally satisfied within 12 months of the initial contract date. As of July 31, 2021 and 2020, the
deferred revenue balance related to performance obligations that will be satisfied after 12 months was $8 million and $13 million,
respectively, and is included in other long-term obligations on our consolidated balance sheets.
Assets Recognized from the Costs to Obtain a Contract with a Customer
Our internal sales commissions are considered incremental costs of obtaining the contract with a customer. Internal sales commissions
for subscription offerings where we expect the benefit of those costs to continue longer than one year are capitalized and amortized
ratably over the period of benefit, which ranges from three to four years. Total capitalized costs to obtain a contract are not significant
and are included in prepaid expenses and other current assets and other assets on our consolidated balance sheets.
We apply a practical expedient to expense costs incurred to obtain a contract with a customer when the period of benefit is less than
one year. These costs primarily include internal and external sales commissions for our consumer and professional tax offerings.
Shipping and Handling
We record the amounts we charge our customers for the shipping and handling of our software products as product revenue and we
record the related costs as cost of product revenue in our consolidated statements of operations.
Customer Service and Technical Support
We include the costs of customer service and technical support associated with our online or hosted offerings in cost of service and
other revenue line in our consolidated statements of operations. We also include the costs of providing technical support for our desktop
offerings in cost of service and other revenue. We include the costs of customer service related to desktop offerings in selling and
marketing expense in our consolidated statements of operations. Customer service and technical support costs include costs associated
with performing order processing, answering customer inquiries by telephone and through websites, e-mail and other electronic means,
and providing technical support assistance to customers. We expense the cost of providing this support as incurred.
Software Development Costs
We expense software development costs as we incur them until technological feasibility has been established, at which time those costs
are capitalized until the product is available for general release to customers. To date, our software has been available for general
release concurrent with the establishment of technological feasibility and, accordingly, we have not capitalized any development costs.
Costs we incur to enhance our existing products or after the general release of the service using the product are expensed in the period
they are incurred and included in research and development expense in our consolidated statements of operations.
Internal Use Software
We capitalize costs related to development of hosted services that we provide to our customers and internal use of enterprise-level
business and finance software in support of our operational needs. Costs incurred in the application development phase are capitalized
and amortized on a straight-line basis over their useful lives, which are generally three to six years. Costs related to planning and other
preliminary project activities and to post-implementation activities are expensed as incurred. We test these assets for impairment
whenever events or changes in circumstances occur that could impact their recoverability.
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Advertising
We expense all advertising costs as we incur them to selling and marketing expense in our consolidated statements of operations. We
recorded advertising expense of approximately $1.1 billion for the twelve months ended July 31, 2021, $778 million for the twelve
months ended July 31, 2020, and $800 million for the twelve months ended July 31, 2019.
Leases
Our leases are primarily operating leases for office facilities. We do not have significant finance leases. We determine if an arrangement
is a lease and classify it as either a finance or operating lease at lease inception. Operating leases are included in operating lease right-
of-use (ROU) assets, other current liabilities, and operating lease liabilities on our consolidated balance sheets.
Operating lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease
payments over the lease term. Our leases generally do not have a readily determinable implicit rate, therefore we use our incremental
borrowing rate at the commencement date in determining the present value of future payments. Our incremental borrowing rate is
determined based on a yield curve derived from publicly traded bond offerings for companies with similar credit ratings to us. Our lease
terms may include options to purchase, extend or terminate the lease when it is reasonably certain that we will exercise that option. We
account for the lease and non-lease components as a single lease component.
We measure ROU assets based on the corresponding lease liabilities adjusted for any initial direct costs and prepaid lease payments
made to the lessor before or at the commencement date, net of lease incentives. Lease expense for minimum lease payments is
recognized on a straight-line basis over the lease term. Variable lease payments are not included in the calculation of the ROU asset
and lease liability and are recognized as lease expense is incurred. Our variable lease payments generally relate to amounts paid to
lessors for common area maintenance under our real estate leases.
Our subleases generally do not relieve us of our primary obligations under the corresponding head lease. As a result, we account for the
head lease based on the original assessment at inception. We determine if the sublease arrangement is either a sales-type, direct
financing, or operating lease at inception. If the total remaining lease cost on the head lease for the term of the sublease is greater than
the anticipated sublease income, the ROU asset is assessed for impairment. Our subleases are generally operating leases and we
recognize sublease income on a straight-line basis over the sublease term.
Capitalization of Interest Expense
We capitalize interest on capital projects, including facilities build-out projects and internal use computer software projects. Capitalization
commences with the first expenditure for the project and continues until the project is substantially complete and ready for its intended
use. We amortize capitalized interest to depreciation expense using the straight-line method over the same lives as the related assets.
Capitalized interest was not significant for any period presented.
Foreign Currency
The functional currencies of our international operating subsidiaries are generally 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 consolidated balance sheets. We include net gains and losses resulting from foreign exchange transactions in
interest and other income in our consolidated statements of operations. Translation gains and losses and transaction gains and losses
were not significant for any period presented.
Income Taxes
We estimate our income taxes based on the various jurisdictions where we conduct business. Significant judgment is required in
determining our worldwide income tax provision. We estimate our current tax liability and assess temporary differences that result from
differing treatments of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities, which
we show on our consolidated balance sheet. We must then assess the likelihood that our deferred tax assets will be realized. To the
extent we believe that realization is not likely, we establish a valuation allowance. When we establish a valuation allowance or increase
this allowance in an accounting period, we record a corresponding income tax expense in our consolidated statement of operations.
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We review the need for a valuation allowance to reflect uncertainties about whether we will be able to utilize some of our deferred tax
assets before they expire. The valuation allowance analysis is based on our estimates of taxable income for the jurisdictions in which we
operate and the periods over which our deferred tax assets will be realizable. While we have considered future taxable income in
assessing the need for a valuation allowance for the periods presented, we could be required to record a valuation allowance to take
into account additional deferred tax assets that we may be unable to realize. An increase in the valuation allowance would have an
adverse impact, which could be material, on our income tax provision and net income in the period in which we record the increase.
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We recognize and measure benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position
taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not
that the tax position will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions that
are more likely than not of being sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more
than 50% likely of being realized upon settlement. Significant judgment is required to evaluate uncertain tax positions. We evaluate our
uncertain tax positions on a quarterly basis. Our evaluations are based upon a number of factors, including changes in facts or
circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit
issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our
income tax expense in the period in which we make the change, which could have a material impact on our effective tax rate and
operating results.
A description of our accounting policies associated with tax-related contingencies and valuation allowances assumed as part of a
business combination is provided under “Business Combinations” below.
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 consist of the 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 and unrecognized compensation expense that are less than the average market
price for our common stock, and RSUs with unrecognized compensation expense that is 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 and
unrecognized compensation expense that are greater than the average market price for our common stock, and RSUs with
unrecognized compensation expense that is 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 and the amount of compensation expense for future service that we have not yet recognized for stock options and RSUs
are assumed to be used to repurchase shares.
All of the RSUs we grant have dividend rights. Dividend rights are accumulated and paid when the underlying RSUs vest. Since the
dividend rights are subject to the same vesting requirements as the underlying equity awards they are considered a contingent transfer
of value. Consequently, the RSUs are not considered participating securities and we do not present them separately in earnings per
share.
The following table presents the composition of shares used in the computation of basic and diluted net income per share for the periods
indicated.
Twelve Months Ended July 31,
(In millions, except per share amounts) 2021 2020 2019
Numerator:
Net income $ 2,062 $ 1,826 $ 1,557
Denominator:
Shares used in basic per share amounts:
Weighted average common shares outstanding 270 261 260
Shares used in diluted per share amounts:
Weighted average common shares outstanding 270 261 260
Dilutive common equivalent shares from stock options and restricted stock awards 3 3 4
Dilutive weighted average common shares outstanding 273 264 264
Basic and diluted net income per share:
Basic net income per share $ 7.65 $ 6.99 $ 5.99
Diluted net income per share $ 7.56 $ 6.92 $ 5.89
Shares excluded from diluted net income per share:
Weighted average stock options and restricted stock units that have been excluded from
dilutive common equivalent shares outstanding due to their anti-dilutive effect — — 1
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Cash Equivalents and Investments
We consider highly liquid investments with maturities of three months or less at the date of purchase to be cash equivalents. In all
periods presented, cash equivalents consist primarily of money market funds and time deposits. Investments consist primarily of
investment-grade available-for-sale debt securities. 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 use the specific identification method to compute gains and losses on investments. We record unrealized gains and losses on
investments, net of tax, in accumulated other comprehensive income in the stockholders’ equity section of our consolidated balance
sheets and reflect unrealized gain and loss activity in other comprehensive income on our consolidated statement of comprehensive
income. We generally classify available-for-sale debt securities as current assets based upon our ability and intent to use any and all of
these securities as necessary to satisfy the significant short-term liquidity requirements that may arise from the highly seasonal nature of
our businesses. Because of our significant business seasonality, stock repurchase programs, and acquisition opportunities, cash flow
requirements may fluctuate dramatically from quarter to quarter and require us to use a significant amount of the investments we hold as
available-for-sale.
Accounts Receivable and Allowances for Doubtful Accounts
Accounts receivable are recorded at the invoiced amount and are not interest bearing. We maintain an allowance for doubtful accounts
to reserve for credit losses. In determining the amount of the allowance, we consider our historical level of credit losses, current
economic trends that might impact the level of future credit losses, customer-specific information, and reasonable and supportable
forecasts of future economic conditions to inform adjustments to historical loss data. We make judgments about the creditworthiness of
significant customers based on ongoing credit evaluations. When we determine that amounts are uncollectible we write them off against
the allowance.
Notes Receivable and Allowances for Loan Losses
Notes receivable consist of term loans to small businesses and are included in prepaid expenses and other current assets and other
assets on our consolidated balance sheets. As of July 31, 2021 and July 31, 2020, the notes receivable balance was $139 million and
$40 million, respectively, and the allowances for loan losses were not material. The term loans are not secured and are recorded at
amortized cost, net of allowances for loan losses. We maintain an allowance for loan losses to reserve for potentially uncollectible notes
receivable. We evaluate the creditworthiness of our loan portfolio on a pooled basis due to its composition of small, homogeneous loans
with similar general credit risk and characteristics and apply a loss rate at the time of loan origination. The loss rate and underlying
model are updated periodically to reflect actual loan performance and changes in assumptions. We make judgments about the known
and inherent risks in the loan portfolio, adverse situations that may affect borrowers’ ability to repay and current economic conditions.
When we determine that amounts are uncollectible, we write them off against the allowance.
Paycheck Protection Program - In April 2020, Intuit was approved as a non-bank Small Business Administration (SBA) lender for the
Paycheck Protection Program (PPP). The PPP was authorized under the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act) to provide small businesses loans to pay payroll and group health costs, salaries and commissions, mortgage and rent payments,
utilities, and interest on other debt which is designed to provide assistance to small businesses during the COVID-19 pandemic. Lending
under the program expired on August 8, 2020. As of July 31, 2021, all of the loans held for sale under this program have been sold.
When loans under this program do not qualify to be sold, they are held for investment. As of July 31, 2021 and July 31, 2020, PPP loans
held for investment were not material and are included in prepaid expenses and other current assets and other assets on our
consolidated balance sheets. The SBA re-opened the PPP in January 2021 under the Coronavirus Response and Relief Supplemental
Appropriations Act of 2021. We marketed and referred small businesses to another lender under the re-opened program, but did not
originate or service loans in this round of the program, which ended in May 2021.
Funds Held for Customers and Customer Fund Deposits
Funds held for customers represent cash held on behalf of our customers that is invested in cash and cash equivalents and investment-
grade available-for-sale debt securities, restricted for use solely for the purpose of satisfying amounts we owe on behalf of our
customers. Customer fund deposits consist of amounts we owe on behalf of our customers, such as direct deposit payroll funds and
payroll taxes.
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Property and Equipment
Property and equipment is stated at the lower of cost or realizable value, net of accumulated depreciation. We calculate depreciation
using the straight-line method over the estimated useful lives of the assets, which range from two to 30 years. We amortize leasehold
improvements using the straight-line method over the lesser of their estimated useful lives or remaining lease terms. We include the
amortization of assets that are recorded under finance leases in depreciation expense. We review property and equipment for
impairment whenever events or changes in circumstances indicate that the carrying amount of an
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asset may not be recoverable. We did not record any significant property impairment charges during the twelve months ended July 31,
2021, 2020, or 2019.
Business Combinations
The acquisition method of accounting for business combinations requires us to use significant estimates and assumptions, including fair
value estimates, as of the business combination date and to refine those estimates as necessary during the measurement period
(defined as the period, not to exceed one year, in which we may adjust the provisional amounts recognized for a business combination).
Under the acquisition method of accounting we recognize separately from goodwill the identifiable assets acquired, the liabilities
assumed, and any noncontrolling interests in an acquiree, generally at the acquisition date fair value. We measure goodwill as of the
acquisition date as the excess of consideration transferred, which we also measure at fair value, over the net of the acquisition date
amounts of the identifiable assets acquired and liabilities assumed. Costs that we incur to complete the business combination such as
investment banking, legal and other professional fees are not considered part of consideration and we charge them to general and
administrative expense as they are incurred. Under the acquisition method we also account for acquired company restructuring activities
that we initiate separately from the business combination.
Should the initial accounting for a business combination be incomplete by the end of a reporting period that falls within the measurement
period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts
recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition
date that, if known, would have affected the measurement of the amounts recognized as of that date and we record those adjustments
to our financial statements. We apply those measurement period adjustments that we determine to be significant retrospectively to
comparative information in our financial statements, including adjustments to depreciation and amortization expense.
Under the acquisition method of accounting for business combinations, if we identify changes to acquired deferred tax asset valuation
allowances or liabilities related to uncertain tax positions during the measurement period and they relate to new information obtained
about facts and circumstances that existed as of the acquisition date, those changes are considered a measurement period adjustment
and we record the offset to goodwill. We record all other changes to deferred tax asset valuation allowances and liabilities related to
uncertain tax positions in current period income tax expense. This accounting applies to all of our acquisitions regardless of acquisition
date.
Goodwill, Acquired Intangible Assets and Other Long-Lived Assets
Goodwill
We record goodwill when the fair value of consideration transferred in a business combination exceeds the fair value of the identifiable
assets acquired and liabilities assumed. Goodwill and other intangible assets that have indefinite useful lives are not amortized, but we
test them for impairment annually during our fourth fiscal quarter and whenever an event or change in circumstances indicates that the
carrying value of the asset may not be recoverable.
In accordance with authoritative guidance, we define fair value as the price that would be received from the sale of an asset or paid to
transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market
participants on the measurement date. We consider and use all valuation methods that are appropriate in estimating the fair value of our
reporting units and generally use a weighted combination of income and market approaches. Under the income approach, we estimate
the fair value of each reporting unit based on the present value of future cash flows. We use a number of assumptions in our discounted
cash flow model, including market factors specific to the business, the amount and timing of estimated future cash flows to be generated
by the business over an extended period of time, long-term growth rates for the business, and a rate of return that considers the relative
risk of achieving the cash flows and the time value of money. Under the market approach, we estimate the fair value of each reporting
unit based on market multiples of revenue, operating income, and earnings for comparable publicly traded companies engaged in similar
businesses. If the estimated fair value of the reporting unit exceeds the carrying value of the net assets assigned to that unit, goodwill is
not impaired.
If the carrying value of the net assets assigned to a reporting unit exceeds the estimated fair value of the unit, we would record an
impairment loss equal to the difference. We recorded no goodwill impairment charges for the twelve months ended July 31, 2021, 2020
or 2019.
Acquired Intangible Assets and Other Long-Lived Assets
We generally record acquired intangible assets that have finite useful lives, such as purchased technology, in connection with business
combinations. We amortize the cost of acquired intangible assets on a straight-line basis over their estimated useful lives, which range
from two to fifteen years. We review intangible assets that have finite useful lives and other long-lived assets whenever an event or
change in circumstances indicates that the carrying value of the asset may not be recoverable. We estimate the recoverability of these
assets by comparing the carrying amount of the asset to the future undiscounted cash flows that we expect the asset to generate. We
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estimate the fair value of assets that have finite useful lives based on the present value of future cash flows for those assets. If the
carrying value of an asset with a finite life exceeds its estimated fair
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value, we would record an impairment loss equal to the difference. Impairment charges for acquired intangible assets were not
significant for the twelve months ended July 31, 2021, 2020 or 2019.
Share-Based Compensation Plans
We estimate the fair value of stock options granted using a lattice binomial model and a multiple option award approach. We amortize
the fair value of stock options on a straight-line basis over the requisite service periods of the awards, which are generally the vesting
periods.
Restricted stock units (RSUs) granted typically vest based on continued service. We value these time-based RSUs at the date of grant
using the intrinsic value method. We amortize the fair value of time-based RSUs on a straight-line basis over the service period. Certain
RSUs granted to senior management vest based on the achievement of pre-established performance or market goals. We estimate the
fair value of performance-based RSUs at the date of grant using the intrinsic value method and the probability that the specified
performance criteria would be met. Each quarter we update our assessment of the probability that the specified performance criteria will
be achieved and adjust our estimate of the fair value of the performance-based RSUs if necessary. We amortize the fair values of
performance-based RSUs over the requisite service period for each separately vesting tranche of the award. We estimate the fair value
of market-based RSUs at the date of grant using a Monte Carlo valuation methodology and amortize those fair values over the requisite
service period for each separately vesting tranche of the award. The Monte Carlo methodology that we use to estimate the fair value of
market-based RSUs at the date of grant incorporates into the valuation the possibility that the market condition may not be satisfied.
Provided that the requisite service is rendered, the total fair value of the market-based RSUs at the date of grant must be recognized as
compensation expense even if the market condition is not achieved. However, the number of shares that ultimately vest can vary
significantly with the performance of the specified market criteria. All of the RSUs we grant have dividend rights that are subject to the
same vesting requirements as the underlying equity awards, so we do not adjust the intrinsic (market) value of our RSUs for dividends.
See Note 11, “Stockholders’ Equity,” for a description of our share-based compensation plans and more information on the assumptions
we use to calculate the fair value of share-based compensation.
Concentration of Credit Risk and Significant Customers and Suppliers
We operate in markets that are highly competitive and rapidly changing. Significant technological changes, shifting customer needs, the
emergence of competitive products or services with new capabilities and other factors could negatively impact our operating results.
We are also subject to risks related to changes in the value of our significant balance of investments. Our portfolio of investments
consists of investment-grade securities. 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 sell a portion of our products through third-party retailers and distributors. As a result, we face risks related to the collectibility of our
accounts receivable. To appropriately manage this risk, we perform ongoing evaluations of customer credit and limit the amount of credit
extended as we deem appropriate, but generally do not require collateral. We maintain reserves for estimated credit losses and these
losses have historically been within our expectations. However, since we cannot predict future changes in the financial stability of our
customers, we cannot guarantee that our reserves will continue to be adequate. No customer accounted for 10% or more of total net
revenue for the twelve months ended July 31, 2021, 2020 or 2019, nor did any customer account for 10% or more of total accounts
receivable at July 31, 2021 or July 31, 2020.
We rely primarily on one third-party vendor to perform the manufacturing and distribution functions for our retail desktop software
products. We also have a key single-source vendor that prints and fulfills orders for most of our financial supplies business. While we
believe that relying on key vendors improves the efficiency and reliability of our business operations, relying on any one vendor for a
significant aspect of our business can have a significant negative impact on our revenue and profitability if that vendor fails to perform at
acceptable service levels for any reason, including financial difficulties of the vendor.
Accounting Standards Recently Adopted
Internal-Use Software - In August 2018 the Financial Accounting Standards Board (FASB) issued Accounting Standards Update
(ASU) 2018-15, “Intangibles—Goodwill and Other (Topic 350): Internal-Use Software.” This standard aligns the requirements for
capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for
capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted this standard in the first quarter of our
fiscal year beginning August 1, 2020 on a prospective basis. The adoption did not have a material impact on our consolidated financial
statements.
Goodwill Impairment - In January 2017 the FASB issued ASU 2017-04, “Intangibles—Goodwill and Other (Topic 350): Simplifying the
Test for Goodwill Impairment.” This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should compare the
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fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount
exceeds the reporting unit's fair value, not to exceed the total amount of goodwill
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allocated to the reporting unit. We adopted this standard in the first quarter of our fiscal year beginning August 1, 2020 on a prospective
basis. The adoption did not have a material impact on our consolidated financial statements.
Financial Instruments - In June 2016 the FASB issued ASU 2016-13, “Financial Instruments—Credit Losses (Topic 326).” This
standard requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical
experience, current conditions, and reasonable and supportable forecasts. We adopted this standard in the first quarter of our fiscal year
beginning August 1, 2020. The adoption did not have a material impact on our consolidated financial statements.
Accounting Standards Not Yet Adopted
We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements.
2. Fair Value Measurements
Fair Value Hierarchy
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 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.
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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.
At July 31, 2021 At July 31, 2020
Total Total
(In millions) Level 1 Level 2 Fair Value Level 1 Level 2 Fair Value
Assets:
Cash equivalents, primarily money market funds and time $ 1,660 $ — $ 1,660 $ 5,765 $ — $ 5,765
deposits
Available-for-sale debt securities:
Municipal bonds — 38 38 — 9 9
Corporate notes — 1,400 1,400 — 752 752
U.S. agency securities — 70 70 — 47 47
Total available-for-sale securities — 1,508 1,508 — 808 808
Total assets measured at fair value on a recurring basis $ 1,660 $ 1,508 $ 3,168 $ 5,765 $ 808 $ 6,573
Liabilities:
Senior unsecured notes(1) $ — $ 1,986 $ 1,986 $ — $ 2,042 $ 2,042
(1)
Carrying value on our balance sheet at July 31, 2021 and July 31, 2020 was $1.99 billion and $1.98 billion, respectively. See Note 8, “Long-Term
Obligations and Commitments” for more information.
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 shown:
At July 31, 2021 At July 31, 2020
Total Total
(In millions) Level 1 Level 2 Fair Value Level 1 Level 2 Fair Value
Cash equivalents:
In cash and cash equivalents $ 1,660 $ — $ 1,660 $ 5,765 $ — $ 5,765
Available-for-sale debt securities:
In investments $ — $ 1,308 $ 1,308 $ — $ 608 $ 608
In funds held for customers — 200 200 — 200 200
Total available-for-sale debt securities $ — $ 1,508 $ 1,508 $ — $ 808 $ 808
We value our Level 1 assets, consisting primarily of money market funds and time deposits, 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 with the help of a pricing service that either provides quoted
market prices in active markets for identical or similar securities or uses observable inputs for their pricing without applying significant
adjustments. Our fair value processes include controls designed to ensure that we record appropriate fair values for our Level 2
investments. These controls include comparison to pricing provided by a secondary pricing service or investment manager, validation of
pricing sources and models, review of key model inputs, analysis of period-over-period price fluctuations, and independent recalculation
of prices where appropriate.
Financial assets whose fair values we measure using Level 3 inputs consist of loans held for sale. These loans are recorded at the lower
of cost or fair value. We had no loans held for sale at July 31, 2021 and $98 million at July 31, 2020. The difference between cost and
fair value was not material.
Financial liabilities whose fair values we measure using Level 2 inputs consist of senior unsecured notes. See Note 8, “Long-Term
Obligations and Commitments” for more information. We measure the fair value of our senior unsecured notes based on their trading
prices and the interest rates we could obtain for other borrowings with similar terms.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the twelve months ended July 31, 2021,
2020 or 2019.
Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis
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Assets measured at fair value on a non-recurring basis include reporting units measured at fair value in a goodwill impairment test and
our long-term investments.
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Estimates of fair value for reporting units fall under Level 3 of the fair value hierarchy. During the fourth quarters of fiscal 2021, fiscal
2020, and fiscal 2019 we performed our annual goodwill impairment tests. Using the methodology described in Note 1, we determined
that the estimated fair values of all of our reporting units exceeded their carrying values and that they were not impaired.
Long-term investments represent non-marketable equity securities in privately held companies that do not have a readily determinable
fair value. They are accounted for at cost and adjusted based on observable price changes from orderly transactions for identical or
similar investments of the same issuer or impairment. These investments are classified as Level 3 in the fair value hierarchy because we
estimate the value based on valuation methods which may include a combination of the observable transaction price at the transaction
date and other unobservable inputs including volatility, rights, and obligations of the investments we hold. As of July 31, 2021 and
July 31, 2020, the carrying value of long-term investments was $43 million and $19 million, respectively, and adjustments to the carrying
value of these investments for the twelve months ended July 31, 2021 were not significant.
3. Cash and Cash Equivalents, Investments, and Funds Held for Customers
The following table summarizes our cash and cash equivalents, investments and funds held for customers by balance sheet
classification at the dates indicated.
July 31, 2021 July 31, 2020
Amortized Amortized
(In millions) Cost Fair Value Cost Fair Value
Classification on consolidated balance sheets:
Cash and cash equivalents $ 2,562 $ 2,562 $ 6,442 $ 6,442
Investments 1,305 1,308 600 608
Funds held for customers 456 457 455 455
Total cash and cash equivalents, investments, and funds
held for customers $ 4,323 $ 4,327 $ 7,497 $ 7,505
The following table summarizes our cash and cash equivalents, investments and funds held for customers by investment category at the
dates indicated.
July 31, 2021 July 31, 2020
Amortized Amortized
(In millions) Cost Fair Value Cost Fair Value
Type of issue:
Total cash, cash equivalents, restricted cash, and restricted cash
equivalents $ 2,819 $ 2,819 $ 6,697 $ 6,697
Available-for-sale debt securities:
Municipal bonds 37 38 9 9
Corporate notes 1,397 1,400 744 752
U.S. agency securities 70 70 47 47
Total available-for-sale debt securities 1,504 1,508 800 808
Total cash, cash equivalents, restricted cash, restricted cash
equivalents, and investments $ 4,323 $ 4,327 $ 7,497 $ 7,505
We include realized gains and losses on our available-for-sale debt securities in interest and other income or expense on our
consolidated statements of operations. Gross realized gains and losses on our available-for-sale debt securities for the twelve months
ended July 31, 2021, 2020 and 2019 were not significant.
We accumulate unrealized gains and losses on our available-for-sale debt securities, net of tax, in accumulated other comprehensive
income or loss in the stockholders’ equity section of our consolidated balance sheets, except for certain unrealized losses described
below. Gross unrealized gains and losses on our available-for-sale debt securities at July 31, 2021 and July 31, 2020 were not
significant.
For available-for sale debt securities in an unrealized loss position, we determine whether a credit loss exists. The estimate of the credit
loss is determined by considering available information relevant to the collectibility of the security and information about past events,
current conditions, and reasonable and supportable forecasts. The allowance for credit loss is recorded to interest and other income on
our consolidated statement of operations, not to exceed the amount of the unrealized loss. Any excess unrealized loss greater than the
credit loss at a security level is recognized in accumulated other comprehensive income or loss in the stockholders' equity section of our
consolidated balance sheets. We determined there were no credit losses related to available-for-sale securities as of July 31, 2021.
Unrealized losses on available-for-sale debt securities at July 31,
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2021 were not significant. We do not intend to sell these investments. In addition, it is more likely than not that we will not be required to
sell them before recovery of the amortized cost basis, which may be at maturity.
The following table summarizes our available-for-sale debt securities, included in investments and funds held for customers, classified
by the stated maturity date of the security at the dates indicated.
July 31, 2021 July 31, 2020
Amortized Amortized
(In millions) Cost Fair Value Cost Fair Value
Due within one year $ 551 $ 553 $ 389 $ 390
Due within two years 550 551 256 261
Due within three years 398 398 137 139
Due after three years 5 6 18 18
Total available-for-sale debt securities $ 1,504 $ 1,508 $ 800 $ 808
The following table summarizes our funds held for customers by investment category at the dates indicated.
(In millions) July 31, 2021 July 31, 2020 July 31, 2019 July 31, 2018
Restricted cash and restricted cash equivalents $ 257 $ 255 $ 236 $ 167
Restricted available-for-sale debt securities 200 200 200 200
Total funds held for customers $ 457 $ 455 $ 436 $ 367
4. Property and Equipment
Property and equipment consisted of the following at the dates indicated:
Life in July 31,
(Dollars in millions) Years 2021 2020
Equipment 3-5 $ 199 $ 226
Computer software 2-6 899 870
Furniture and fixtures 5 96 93
Leasehold improvements 2-16 350 298
Land NA 79 79
Buildings 5-30 375 372
Capital in progress NA 122 90
2,120 2,028
Less accumulated depreciation and amortization (1,340) (1,294)
Total property and equipment, net $ 780 $ 734
__________________________
NA = Not Applicable
Capital in progress at July 31, 2021 and 2020 consisted primarily of costs related to various buildings and site improvements that have
not yet been placed into service.
As discussed in Note 1, “Description of Business and Summary of Significant Accounting Policies – Internal Use Software,” we capitalize
costs related to the development of computer software for internal use. We capitalized internal use software costs totaling $72 million for
the twelve months ended July 31, 2021; $78 million for the twelve months ended July 31, 2020; and $79 million for the twelve months
ended July 31, 2019. These amounts included capitalized labor costs of $30 million, $40 million, and $43 million, respectively. Costs
related to internal use software projects are included in the capital in progress category of property and equipment until project
completion, at which time they are transferred to the computer software category.
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5. Goodwill and Acquired Intangible Assets
Goodwill
Changes in the carrying value of goodwill by reportable segment during the twelve months ended July 31, 2021 and July 31, 2020 were
as shown in the following table. Our reportable segments are described in Note 14, “Segment Information.”
Balance Foreign Foreign
July 31, Goodwill Currency Balance Goodwill Currency Balance
(In millions) 2019 Acquired Translation July 31, 2020 Acquired Translation July 31, 2021
Small Business & Self-Employed $ 1,518 $ — $ — $ 1,518 $ 59 $ 1 $ 1,578
Consumer 42 — — 42 — — 42
ProConnect 95 — (1) 94 — 1 95
Credit Karma — — — — 3,898 — 3,898
Totals $ 1,655 $ — $ (1) $ 1,654 $ 3,957 $ 2 $ 5,613
Goodwill is net of accumulated impairment losses of $114 million, which were recorded prior to July 31, 2019 and are included in our
Consumer segment. The increase in goodwill during the twelve months ended July 31, 2021 was primarily due to the acquisition of
Credit Karma.
Acquired Intangible Assets
The following table shows the cost, accumulated amortization and weighted average life in years for our acquired intangible assets at
the dates indicated. The increases in intangible assets during the twelve months ended July 31, 2021 were primarily related to the
acquisition of Credit Karma. See Note 6, “Business Combinations.” The weighted average lives are calculated for assets that are not
fully amortized.
Covenants
Customer Trade Not to
Lists / User Purchased Names Compete
(Dollars in millions) Relationships Technology and Logos or Sue Total
At July 31, 2021:
Cost $ 3,038 $ 686 $ 400 $ 42 $ 4,166
Accumulated amortization (377) (455) (41) (41) (914)
Acquired intangible assets, net $ 2,661 $ 231 $ 359 $ 1 $ 3,252
Weighted average life in years 15 5 15 3 14
At July 31, 2020:
Cost $ 256 $ 421 $ 25 $ 42 $ 744
Accumulated amortization (248) (404) (25) (39) (716)
Acquired intangible assets, net $ 8 $ 17 $ — $ 3 $ 28
Weighted average life in years 5 3 0 3 4
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The following table shows the expected future amortization expense for our acquired intangible assets at July 31, 2021. Amortization of
purchased technology is charged to amortization of acquired technology in our consolidated statements of operations. Amortization of
other acquired intangible assets such as customer lists is charged to amortization of other acquired intangible assets in our consolidated
statements of operations. If impairment events occur, they could accelerate the timing of acquired intangible asset charges.
Expected
Future
Amortization
(In millions) Expense
Twelve months ending July 31,
2022 $ 274
2023 264
2024 248
2025 247
2026 247
Thereafter 1,972
Total expected future amortization expense $ 3,252
6. Business Combinations
Credit Karma
On December 3, 2020 we acquired all of the outstanding shares of Credit Karma, a consumer technology platform. We acquired Credit
Karma to help consumers unlock smart money decisions and accelerate our mission of powering prosperity around the world, by
creating a personal financial assistant that helps consumers find the right financial products, put more money in their pockets and
access financial expertise and advice. Credit Karma is a separate reportable segment. See Note 14, "Segment Information," for more
information. We have included the financial results of Credit Karma in the consolidated financial statements from the date of acquisition.
For the twelve months ended July 31, 2021 and July 31, 2020, the transaction costs associated with the acquisition were approximately
$31 million and $28 million, respectively, and were recorded in general and administrative expenses.
We acquired Credit Karma for total consideration of $8.1 billion which included assumed equity awards and restricted shares subject to
a revest provision.
The fair value of the purchase consideration totaled $7.2 billion and included $3.4 billion in cash, 10.6 million shares of Intuit common
stock with a fair value of $3.8 billion and assumed equity awards for services rendered through the acquisition date of $47 million.
We also issued shares of common stock with a fair value of $275 million which are restricted due to a revest provision, and are being be
expensed over a service period of three years. The share-based compensation expense related to these restricted shares is non-
deductible for income tax purposes. Additionally, we assumed equity awards for future services with a fair value of $663 million that are
being charged to expense over the remaining service periods, which average approximately three years.
The fair value of the stock consideration is based on the December 2, 2020 closing price of Intuit common stock of $355.49.
As part of the merger agreement, following the close of the transaction, we issued approximately $300 million of restricted stock units to
the employees of Credit Karma, which is being charged to expense over a service period of four years.
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The preliminary allocation of the Credit Karma purchase price is as follows:
(In millions) Amount
Cash and cash equivalents $ 436
Accounts receivable, net 141
Income taxes receivable 59
Prepaid expenses and other current assets 7
Long-term investments 3
Property and equipment, net 63
Operating lease right-of-use assets 167
Goodwill 3,898
Intangible assets 3,372
Other assets 81
Accounts payable (86)
Accrued compensation and related liabilities (113)
Other current liabilities (24)
Operating lease liabilities (172)
Long-term deferred income tax liabilities (627)
Other long-term obligations (10)
Total preliminary purchase price allocation $ 7,195
The excess of purchase consideration over the fair value of the net assets acquired was recorded as goodwill, which is primarily
attributed to the assembled workforce of Credit Karma and the synergies expected to be achieved. This goodwill is assigned to the new
Credit Karma segment and is non-deductible for income tax purposes. The fair values assigned to tangible assets acquired and liabilities
assumed are preliminary based on management's estimates and assumptions and may be subject to change as additional information is
received and certain tax returns are finalized. We expect to finalize the valuation as soon as practicable, but not later than one year from
the acquisition date.
Intangible assets consist of user relationships, trade names/trademarks, purchased technology, and partner relationships. We amortize
purchased intangible assets on a straight-line basis over their respective useful lives. The weighted average life of the total acquired
identifiable intangible assets is 14.4 years. The following table presents the details of identifiable intangible assets acquired.
Estimated Useful
(In millions, except years) Life Amount
User relationships 15 years $ 2,781
Trade names/Trademarks 15 years 375
Purchased technology 6 years 216
Total identifiable intangible assets $ 3,372
The following table summarizes the long-term deferred income tax assets and liabilities included in the purchase price allocation above:
(In millions) Amount
Intangibles $ (851)
Federal and state net operating loss carryforwards 138
Federal research and experimentation credit carryforwards 51
Other, net 35
Total net long-term deferred income tax liabilities $ (627)
The unaudited financial information in the table below summarizes the combined results of operations of Intuit and Credit Karma on a
pro forma basis, as though the companies had been combined as of the beginning of our fiscal 2020. These pro forma results were
based on estimates and assumptions, which we believe are reasonable. The pro forma financial information is presented for
informational purposes only and is not indicative of the results of operations that would have been achieved if the acquisition had taken
place at the beginning of our fiscal 2020. The pro forma financial information assumes our senior unsecured notes were issued as of the
beginning of our fiscal 2020 and includes adjustments to share-based compensation
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expense, amortization for acquired intangible assets, interest expense, transaction costs, capitalization and amortization of certain
activities associated with the development of internal use software to conform with Intuit's accounting policy, and related tax effects.
The pro forma financial information for the twelve months ended July 31, 2021 combines our results for the twelve months ended
July 31, 2021, which include the results of Credit Karma subsequent to December 3, 2020, and the historical results for Credit Karma for
the three months ended September 30, 2020 and one month ended November 30, 2020. The pro forma financial information for the
twelve months ended July 31, 2020 combines our results for the twelve months ended July 31, 2020 and the historical results for Credit
Karma for the twelve months ended June 30, 2020.
The following table summarizes the pro forma financial information:
Twelve Months Ended July 31,
(In millions) 2021 2020
Total revenue $ 9,876 $ 8,549
Net income $ 1,977 $ 1,319
Basic net income per share $ 7.21 $ 4.85
Diluted net income per share $ 7.11 $ 4.80
7. Current Liabilities
Short-Term Debt
On May 2, 2019 we entered into an amended and restated credit agreement with certain institutional lenders with an aggregate principal
amount of $1.4 billion, including a $1 billion unsecured revolving credit facility that matures on May 2, 2024 and a $400 million
unsecured term loan that was due on February 1, 2021.
Unsecured Revolving Credit Facility
The amended and restated credit agreement we entered into on May 2, 2019 includes a $1 billion unsecured revolving credit facility that
will expire on May 2, 2024. Under this agreement we may, subject to certain customary conditions including lender approval, on one or
more occasions increase commitments under the unsecured revolving credit facility in an amount not to exceed $250 million in the
aggregate and may extend the maturity date up to two times. Advances under the unsecured revolving credit facility accrue interest at
rates that are equal to, at our election, either Bank of America's alternate base rate plus a margin that ranges from 0.0% to 0.1% or the
London Interbank Offered Rate (LIBOR) plus a margin that ranges from 0.69% to 1.1%. Actual margins under either election will be
based on our senior debt credit ratings. The amended and restated credit agreement includes customary affirmative and negative
covenants, including financial covenants that require us to maintain a ratio of total gross debt to annual earnings before interest, taxes,
depreciation and amortization (EBITDA) of not greater than 3.25 to 1.00 as of any date and a ratio of annual EBITDA to annual interest
expense of not less than 3.00 to 1.00 as of the last day of each fiscal quarter. As of July 31, 2021 we were compliant with all required
covenants. We repaid the $1 billion that was outstanding as of July 31, 2020 under this unsecured revolving credit facility during the first
quarter of fiscal 2021, and at July 31, 2021 no amounts were outstanding. We paid $1 million for interest on the unsecured revolving
credit facility during the twelve months ended July 31, 2021 and $2 million during the twelve months ended July 31, 2020. We paid no
interest on the unsecured revolving credit facility during the twelve months ended July 31, 2019.
Term Loan
On February 1, 2021, we paid the $325 million remaining balance of the term loan upon maturity and at July 31, 2021, no amount was
outstanding. The term loan accrued interest at rates that were equal to, at our election, either Bank of America's alternate base rate plus
a margin that ranges from 0.0% to 0.125% or LIBOR plus a margin that ranges from 0.625% to 1.125%. Interest on the term loan was
payable monthly. We paid $2 million for interest on the term loan during the twelve months ended July 31, 2021, $9 million during the
twelve months ended July 31, 2020, and $15 million during the twelve months ended July 31, 2019. Under the amended and restated
agreement we may, subject to certain customary conditions including lender approval, on one or more occasions increase commitments
under the term loan in an amount not to exceed $400 million in the aggregate. This option continues to be available to us through the
expiration of the amended and restated credit agreement on May 2, 2024.
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Other Current Liabilities
Other current liabilities were as follows at the dates indicated:
July 31,
(In millions) 2021 2020
Executive deferred compensation plan liabilities $ 153 $ 123
Current portion of operating lease liabilities 66 46
Reserve for returns and credits 21 24
Amounts due for share repurchases 17 —
Reserve for promotional discounts and rebates 10 11
Current portion of dividend payable 9 6
Interest payable 1 3
Other 84 84
Total other current liabilities $ 361 $ 297
8. Long-Term Obligations and Commitments
Senior Unsecured Notes
In June 2020 we issued four series of senior unsecured notes (together, the Notes) pursuant to a public debt offering. The proceeds
from the issuance were $1.98 billion, net of debt discount of $2 million and debt issuance costs of $15 million.
The carrying value of the Notes was as follows at the date indicated:
July 31, July 31, Effective
(In millions) 2021 2020 Interest Rate
Senior unsecured notes issued June 2020:
0.650% notes due July 2023 $ 500 $ 500 0.837%
0.950% notes due July 2025 500 500 1.127%
1.350% notes due July 2027 500 500 1.486%
1.650% notes due July 2030 500 500 1.767%
Total senior unsecured notes 2,000 2,000
Unamortized discount and debt issuance costs (14) (17)
Net carrying value senior unsecured notes $ 1,986 $ 1,983
Interest is payable semiannually on January 15 and July 15 of each year. The discount and debt issuance costs are amortized to interest
expense over the term of the Notes under the effective interest method. We paid $24 million for interest on the Notes during the twelve
months ended July 31, 2021 and no interest during the twelve months ended July 31, 2020.
The Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated
indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of
control transactions that are accompanied by certain downgrades in the credit ratings of the Notes, we will be required to repurchase the
Notes at a repurchase price equal to 101% of the aggregate outstanding principal plus any accrued and unpaid interest to but not
including the date of repurchase. The indenture governing the Notes requires us to comply with certain covenants. For example, the
Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of July 31, 2021 we were compliant with
all covenants governing the Notes.
Secured Revolving Credit Facility
On February 19, 2019 a subsidiary of Intuit entered into a $300 million secured revolving credit facility with a lender to fund a portion of
our loans to qualified small businesses. The revolving credit facility is secured by cash and receivables of the subsidiary and is non-
recourse to Intuit Inc. We have entered into several amendments to the secured revolving credit facility, most recently on July 16, 2021,
primarily to extend the commitment term and maturity date. Under the amended agreement, $150 million of the facility is committed and
$150 million is uncommitted. Advances accrue interest at LIBOR plus 1.5%. Unused portions of the committed credit facility accrue
Case 5:22-cv-01973-EJD Document 12 Filed 03/28/22 Page 297 of 690
interest at a rate ranging from 0.25% to 0.75%, depending on the total unused committed balance. The commitment term is through July
17, 2023 and the final maturity date is January 17, 2024. The amended agreement allows for the transition of the benchmark interest
rate used to calculate finance charges from LIBOR to the Secured Overnight Finance Rate (SOFR) plus related benchmark adjustments
that represent the prevailing
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market convention for dollar-denominated syndicated credit facilities. The agreement includes certain affirmative and negative
covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of July 31, 2021 we were
compliant with all required covenants. At July 31, 2021, $48 million was outstanding under this facility and the weighted-average interest
rate was 3.21%, which includes the interest on the unused committed portion. The outstanding balance is secured by cash and
receivables of the subsidiary totaling $199 million. Interest on the facility is payable monthly. We paid $3 million for interest on the
secured revolving credit facility during each of the twelve months ended July 31, 2021 and 2020.
Future principal payments for long-term debt at July 31, 2021 were as shown in the table below.
(In millions)
Fiscal year ending July 31,
2022 $ —
2023 500
2024 48
2025 500
2026 —
Thereafter 1,000
Total commitments $ 2,048
Other Long-Term Obligations
Other long-term obligations were as follows at the dates indicated:
July 31,
(In millions) 2021 2020
Long-term income tax liabilities $ 24 $ 10
Total dividend payable 17 12
Long-term deferred revenue 8 13
Other 15 17
Total long-term obligations 64 52
Less current portion (included in other current liabilities) (11) (10)
Long-term obligations due after one year $ 53 $ 42
Unconditional Purchase Obligations
In the ordinary course of business we enter into certain unconditional purchase obligations with our suppliers. These are agreements to
purchase products and services that are enforceable, legally binding, and specify terms that include fixed or minimum quantities to be
purchased; fixed, minimum or variable price provisions; and the approximate timing of the payments.
Annual minimum commitments under purchase obligations at July 31, 2021 were as shown in the table below.
Purchase
(In millions) Obligations
Fiscal year ending July 31,
2022 $ 205
2023 147
2024 68
2025 58
2026 53
Thereafter —
Total commitments $ 531
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9. Leases
We lease office facilities under non-cancellable operating lease arrangements. Our facility leases generally provide for periodic rent
increases and may contain escalation clauses and renewal options. Our leases have remaining lease terms of up to 10 years, some of
which include one or more options to extend the leases for up to 10 years per option, generally at rates to be determined in accordance
with the agreements. Options to extend the lease are included in the lease liability if they are reasonably certain of being exercised. We
do not have significant finance leases.
We sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 4 years, some of which
include one or more options to extend the subleases for up to 5 years per option.
In March 2020, we entered into an agreement to terminate an office facility lease and related sublease, which were due to expire in 2025
and 2022, respectively. As a result, we reduced our operating lease right-of-use assets and lease liabilities by $61 million during the
twelve months ended July 31, 2020.
The components of lease expense were as follows:
Twelve Months Ended July 31,
(In millions) 2021 2020
Operating lease cost (1) $ 75 $ 69
Variable lease cost 11 13
Sublease income (16) (22)
Total net lease cost $ 70 $ 60
(1) Includes short-term leases, which are not significant for the twelve months ended July 31, 2021 or 2020.
Prior to the adoption of ASC 842 on August 1, 2019, rent expense under operating leases, net of sublease income was $42 million for
the twelve months ended July 31, 2019. Sublease income was $24 million for the twelve months ended July 31, 2019.
Supplemental cash flow information related to operating leases was as follows:
Twelve Months Ended July 31,
2021 2020
(In millions)
Cash paid for amounts included in the measurement of operating lease liabilities $ 76 $ 70
Right-of-use assets obtained in exchange for new operating lease liabilities (1) $ 60 $ 346
(1)
For the twelve months ended July 31, 2020, this includes $319 million for operating leases existing on August 1, 2019 and $27 million for
operating leases that commenced during fiscal 2020.
Other information related to operating leases was as follows at the dates indicated:
July 31,
2021 2020
Weighted-average remaining lease term for operating leases 6.8 years 5.5 years
Weighted-average discount rate for operating leases 2.3 % 3.1 %
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Future minimum lease payments under non-cancellable operating leases as of July 31, 2021 were as follows:
Operating
(In millions) Leases (1)
Fiscal year ending July 31,
2022 $ 76
2023 81
2024 78
2025 62
2026 45
Thereafter 139
Total future minimum lease payments 481
Less imputed interest (35)
Present value of lease liabilities $ 446
(1) Non-cancellable sublease proceeds for the fiscal years ending July 31, 2022, 2023, 2024, and 2025 of $18 million, $11 million, $8 million, and $4
million, respectively, are not included in the table above.
Supplemental balance sheet information related to operating leases was as follows at the date indicated:
July 31,
(In millions) 2021 2020
Operating lease right-of-use assets $ 380 $ 226
Other current liabilities $ 66 $ 46
Operating lease liabilities 380 221
Total operating lease liabilities $ 446 $ 267
As of July 31, 2021, we have additional operating leases of $43 million, primarily for office facilities, that have not yet commenced and
therefore are not reflected on the consolidated balance sheet nor in the tables above. These operating leases will commence in fiscal
year 2022 with lease terms of 1 to 11 years.
10. Income Taxes
The provision for income taxes consisted of the following for the periods indicated:
Twelve Months Ended July 31,
(In millions) 2021 2020 2019
Current:
Federal $ 399 $ 372 $ 271
State 121 79 67
Foreign 17 21 14
Total current 537 472 352
Deferred:
Federal (33) (47) (23)
State (11) (47) (4)
Foreign 1 (6) (1)
Total deferred (43) (100) (28)
Total provision for income taxes $ 494 $ 372 $ 324
We recognized excess tax benefits on share-based compensation of $126 million, $90 million, and $120 million in the provision for
income taxes for the twelve months ended July 31, 2021, 2020, and 2019, respectively.
Intuit Fiscal 2021 Form 10-K 83
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