Strong Fourth Quarter Performance Led By 43
Percent Online Ecosystem Revenue Growth: Company Sets
Guidance for Fiscal 2019
Intuit Inc. (Nasdaq: INTU) announced financial results for the
fourth quarter and full fiscal year 2018, which ended July 31.
"Growth accelerated across our businesses this year, fueled by
18 percent growth in the Small Business and Self-Employed Group,
and 14 percent growth in the Consumer Group,” said Brad Smith,
Intuit's chairman and chief executive officer.
"Both Online Ecosystem revenue and QuickBooks Online subscribers
grew at a rapid pace. We are also pleased with the strong product
innovation in our Consumer business, focused on better serving our
customers.
"One year into our focus on the One Intuit Ecosystem, our
results affirm that our strategy is working and is positioning the
company for durable growth," said Smith.
Financial Highlights
For the fourth quarter, Intuit:
- Grew revenue to $988 million, up 17
percent year-over-year.
- Grew Online Ecosystem revenue by 43
percent.
For the full year, Intuit:
- Grew revenue to nearly $6.0 billion, up
15 percent year-over-year.
- Grew Online Ecosystem revenue by 40
percent.
- Finished the year with over 3.4 million
QuickBooks Online subscribers, growth of 43 percent.
- Grew Consumer Group revenue 14
percent.
- Increased GAAP operating income to $1.5
billion, up from $1.4 billion in the prior year.
- Increased non-GAAP operating income to
$2.0 billion, up 14 percent.
- Increased GAAP and non-GAAP earnings
per share by 25 percent and 27 percent respectively.
Unless otherwise noted, all growth rates refer to the current
period versus the comparable prior-year period, and the business
metrics and associated growth rates refer to worldwide business
metrics.
Snapshot of Fourth-quarter Results
GAAP
Non-GAAP
Q4
FY 18
Q4
FY 17
Change Q4
FY 18
Q4
FY 17
Change Revenue
$988 $842 17%
$988 $842
17%
Operating Income (Loss)
$(81) $(10) NM
$104 $78
33%
Earnings Per Share $0.18
$0.09 100%
$0.32 $0.20 60%
NM = Not meaningful.
Dollars are in millions, except earnings per share. See “About
Non-GAAP Financial Measures” below for more information regarding
financial measures not prepared in accordance with Generally
Accepted Accounting Principles (GAAP). GAAP earnings per share for
the fourth quarter include a $79 million charge from the sale of
our data center in Quincy, Washington. The impact of this charge on
net income and EPS was offset by recognized tax benefits.
Snapshot of FY ’18 Full-year Results
GAAP
Non-GAAP
FY 18 FY 17
Change FY 18
FY 17 Change
Revenue $5,964
$5,177 15% $5,964
$5,177 15%
Operating
Income $1,497 $1,395
7% $1,981
$1,735 14%
Earnings Per Share
$4.64 $3.72
25% $5.61 $4.41
27%
Dollars are in millions, except earnings per share. See “About
Non-GAAP Financial Measures” below for more information regarding
financial measures not prepared in accordance with Generally
Accepted Accounting Principles (GAAP). GAAP earnings per share for
the fiscal year 2018 include a $79 million charge from the sale of
our data center in Quincy, Washington. The impact of this charge on
net income and EPS was offset by recognized tax benefits.
Business Segment Results
Small Business and Self-Employed
Group
- Grew total Small Business and
Self-Employed Group revenue 20 percent for the quarter and 18
percent for the year.
- Added over 1 million QuickBooks Online
subscribers during fiscal year 2018.
- Increased the QuickBooks Online
subscriber base in the U.S. 38 percent, to approximately 2.6
million, and outside the U.S. 62 percent to over 800,000
subscribers.
- Increased QuickBooks Self-Employed
subscribers to nearly 720,000.
Consumer and Strategic Partner
Groups
- Grew Consumer Group revenue by 14
percent for the year.
- Increased professional tax revenue in
the Strategic Partner Group by 4 percent for the year.
Capital Allocation Summary
- Repurchased over $270 million of stock
during fiscal year 2018.
- Received board approval for a new $2
billion repurchase authorization, bringing the total authorization
to $3.2 billion to repurchase shares, including the remaining
amount on the prior authorization.
- The board approved a quarterly dividend
of $0.47 per share, payable October 18, 2018. This represents a 21
percent increase versus last year.
New Accounting Standard
Intuit adopted the new revenue recognition standard, ASC606, in
fiscal year 2019, which began August 1, 2018. The company elected
to adopt ASC606 under the full retrospective method for
comparability, and is providing restated financial information for
fiscal years 2017 and 2018. The impact of adopting the new standard
is an increase to reported revenue in fiscal years 2017 and 2018 of
$19 million and $61 million, respectively, and a decrease to
expected revenue for fiscal year 2019 of $30 million.
“While we are changing how we account for revenue under ASC606,
this is an accounting change only, and has no impact on customer
billings or cash flow,” said Intuit CFO Michelle Clatterbuck. “In
addition, how we recognize revenue for all online offerings,
supplies, and desktop payroll and payments will not change.”
What will change under the new standard is how the company
accounts for revenue associated with QuickBooks Desktop units,
QuickBooks desktop subscription offerings, and consumer and
professional tax desktop offerings.
In the Small Business and Self-Employed Group the timing of
revenue for QuickBooks desktop solutions is expected to shift to
earlier quarters within each fiscal year.
In the Consumer and Strategic Partner Groups, more revenue will
be recognized at the beginning of the tax season for consumer and
professional desktop solutions.
Additional details presenting restated information based on the
adoption of the new standard are in Table E, Table F1, Table F2,
Table G, Table H and Table I.
Additional information highlighting the significant changes
under ASC606 can be found on Intuit’s Investor Relations site.
Forward-looking Guidance
First quarter and full-year fiscal 2019 guidance are reported
under ASC606.
Intuit announced guidance for the first quarter of fiscal year
2019, which ends Oct. 31. The company expects:
- Revenue of $955 million to $975
million, growth of 5 to 7 percent.
- GAAP operating loss of $70 million to
$80 million.
- Non-GAAP operating income of $30
million to $40 million.
- GAAP loss per share of $0.17 to
$0.19.
- Non-GAAP diluted earnings per share of
$0.09 to $0.11.
First quarter fiscal year 2019 revenue guidance would have been
approximately $30 million higher under 605 than it is under
606.
Intuit also announced guidance for full fiscal year 2019. The
company expects:
- Revenue of $6.530 billion to $6.630
billion, growth of 8 to 10 percent.
- GAAP operating income of $1.725 billion
to $1.775 billion, growth of 11 to 14 percent.
- Non-GAAP operating income of $2.165
billion to $2.215 billion, growth of 6 to 8 percent.
- GAAP diluted earnings per share of
$5.25 to $5.35, growth of 3 to 5 percent.
- Non-GAAP diluted earnings per share of
$6.40 to $6.50, growth of 11 to 12 percent.
The company expects the following segment revenue results under
ASC606 for fiscal year 2019:
- Small Business and Self-Employed Group:
growth of 9 to 11 percent.
- Consumer Group: growth of 9 to 10
percent.
- Strategic Partner Group: growth of 2 to
4 percent.
Intuit also provided fiscal 2019 guidance under ASC605 in order
to compare with the previous year. Full year fiscal 2019 guidance
under the historical ASC605 standard includes:
- Total company revenue growth range of
10 to 12 percent,
- GAAP diluted earnings per share of
$5.35 to $5.45, and
- Non-GAAP diluted earnings per share of
$6.50 to $6.60.
Going forward, guidance will only be provided in accordance with
ASC606.
Conference Call Details
Intuit executives will discuss the financial results on a
conference call at 1:30 p.m. Pacific time on Aug. 23. To hear the
call, dial 844-246-4601 in the United States or 703-639-1172 from
international locations. No reservation or access code is needed.
The conference call can also be heard live at http://investors.intuit.com/Events/default.aspx.
Prepared remarks for the call will be available on Intuit’s website
after the call ends.
Replay Information
A replay of the conference call will be available for one week
by calling 855-859-2056, or 404-537-3406 from international
locations. The access code for this call is 8395535.
The audio webcast will remain available on Intuit’s website for
one week after the conference call.
Investor Day 2018
Intuit will host its annual Investor Day at its Mountain View,
Calif., headquarters on Sept. 27 at 8 a.m. Pacific time. The
half-day event will include presentations from Brad Smith, chairman
and chief executive officer, Michelle Clatterbuck, chief financial
officer, and other leaders.
About Intuit
Intuit’s mission is to Power Prosperity Around
the World. Our global products and platforms, including
TurboTax, QuickBooks, Mint and Turbo, are
designed to empower consumers, self-employed and small
businesses to improve their financial lives, finding them more
money with the least amount of work, while giving them complete
confidence in their actions and decisions. Our innovative
ecosystem of financial management solutions
serves approximately 50 million customers worldwide,
unleashing the power of many for the prosperity of one. Please
visit us for the latest news and in-depth information about Intuit
and its brands and find us on social.
About Non-GAAP Financial Measures
This press release and the accompanying tables include non-GAAP
financial measures. For a description of these non-GAAP financial
measures, including the reasons management uses each measure, and
reconciliations of these non-GAAP financial measures to the most
directly comparable financial measures prepared in accordance with
Generally Accepted Accounting Principles, please see the section of
the accompanying tables titled "About Non-GAAP Financial Measures"
as well as the related Table B1, Table B2, Table F1, Table F2, and
Table J. A copy of the press release issued by Intuit today can be
found on the investor relations page of Intuit's website.
Cautions About Forward-looking Statements
This press release contains forward-looking statements,
including forecasts of expected growth and future financial results
of Intuit and its reporting segments; Intuit’s prospects for the
business in fiscal 2019 and beyond; expectations regarding timing
and growth of revenue for each of Intuit’s reportable segments, the
Online Ecosystem and from current or future products and services;
expectations regarding the impact of the One Intuit Ecosystem
strategy on Intuit’s business; expectations regarding changes to
our products and their impact on Intuit’s business; expectations
regarding the amount and timing of any future dividends or share
repurchases; expectations regarding availability of our offerings;
expectations regarding the impact of our strategic decisions on
Intuit’s business; and all of the statements under the heading
“Forward-looking Guidance”.
Because these forward-looking statements involve risks and
uncertainties, there are important factors that could cause our
actual results to differ materially from the expectations expressed
in the forward-looking statements. These factors include, without
limitation, the following: inherent difficulty in predicting
consumer behavior; difficulties in receiving, processing, or filing
customer tax submissions; consumers may not respond as we expected
to our advertising and promotional activities; the competitive
environment; governmental encroachment in our tax businesses or
other governmental activities or public policy affecting the
preparation and filing of tax returns or any of our businesses; our
ability to innovate and adapt to technological change; availability
of our products and services could be impacted by business
interruption or failure of our information technology and
communication systems; any problems with implementing upgrades to
our customer facing applications and supporting information
technology infrastructure; any failure to properly use and protect
personal customer and our business information and data; our
ability to develop, manage and maintain critical third-party
business relationships; our dependence on third party technology
and services; increases in or changes to government regulation
affecting our businesses; any failure to process transactions
effectively or to adequately protect against potential fraudulent
activities; any loss of confidence in using our software as a
result of publicity regarding fraudulent activity, even if it does
not directly involve our products or services; any significant
product accuracy or quality problems or delays; any lost revenue
opportunities or cannibalization of our traditional paid franchise
due to our participation in the Free File Alliance; the global
economic environment may impact consumer and small business
spending, financial institutions and tax filings; changes in the
total number of tax filings that are submitted to government
agencies due to economic conditions or otherwise; the seasonal and
unpredictable nature of our revenue; our ability to attract, retain
and develop highly skilled employees; increased risks associated
with international operations; unanticipated changes in our income
tax rates; the effect of tax reform legislation; changes in the
amounts or frequency of share repurchases or dividends; we may
issue additional shares in an acquisition causing our number of
outstanding shares to grow; our inability to adequately protect our
intellectual property rights may weaken our competitive position;
disruptions, expenses and risks associated with our acquisitions
and divestitures; amortization of acquired intangible assets and
impairment charges; our use of significant amounts of debt to
finance acquisitions or other activities; and the cost of, and
potential adverse results in, litigation involving intellectual
property, antitrust, shareholder and other matters. More details
about the risks that may impact our business are included in our
Form 10-K for fiscal 2017 and in our other SEC filings. You can
locate these reports through our website at
http://investors.intuit.com. Forward-looking statements are based
on information as of August 23, 2018, and we do not undertake
any duty to update any forward-looking statement or other
information in these materials.
TABLE A
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF
OPERATIONS
(In millions, except per share
amounts)
(Unaudited)
Three Months Ended Twelve Months
Ended July 31, July 31, July 31,
July 31, 2018 2017 2018
2017 Net revenue: Product $ 322 $ 313 $ 1,462 $ 1,376
Service and other 666 529 4,502 3,801
Total net revenue 988 842 5,964 5,177
Costs and expenses: Cost of revenue: Cost of product revenue 25 25
112 120 Cost of service and other revenue 201 155 850 677
Amortization of acquired technology 5 3 15 12 Selling and marketing
308 265 1,634 1,420 Research and development 311 263 1,186 998
General and administrative 217 141 664 553 Amortization of other
acquired intangible assets 2 — 6 2
Total costs and expenses [A] 1,069 852 4,467
3,782 Operating income (loss) (81 ) (10 ) 1,497 1,395
Interest expense (4 ) (3 ) (20 ) (31 ) Interest and other income
(expense), net 11 3 26 3 Income (loss)
before income taxes (74 ) (10 ) 1,503 1,367 Income tax provision
(benefit) [B] (123 ) (34 ) 292 396 Net income $ 49
$ 24 $ 1,211 $ 971 Basic net
income per share $ 0.19 $ 0.09 $ 4.72 $ 3.78
Shares used in basic per share calculations 258 257
256 257 Diluted net income per share $
0.18 $ 0.09 $ 4.64 $ 3.72 Shares used
in diluted per share calculations 263 261 261
261 Cash dividends declared per common share $ 0.39
$ 0.34 $ 1.56 $ 1.36
See accompanying Notes.
INTUIT INC.NOTES TO TABLE A
[A] The following table summarizes the total share-based
compensation expense that we recorded in operating income (loss)
for the periods shown.
Three Months Ended Twelve Months
Ended July 31, July 31, July 31,
July 31,
(in millions)
2018 2017 2018 2017 Cost of revenue $
13 $ 2 $ 43 $ 8 Selling and marketing 26 22 101 88 Research and
development 34 33 133 122 General and administrative 26 28
105 108 Total share-based compensation expense $ 99
$ 85 $ 382 $ 326
[B] We compute our provision for or benefit from income taxes by
applying the estimated annual effective tax rate to income or loss
from recurring operations and adding the effects of any discrete
income tax items specific to the period.
The Tax Cuts and Jobs Act (2017 Tax Act) was enacted on December
22, 2017 and reduced the U.S. statutory federal corporate tax rate
from 35% to 21%. The effective date of the tax rate change was
January 1, 2018. With our fiscal year ending July 31, the change
resulted in a blended lower U.S. statutory federal rate of 26.9%
for fiscal year 2018. As a result, we adjusted our annual effective
tax rate for the twelve months ended July 31, 2018, as well as
adjusted our U.S. net deferred tax asset balance at the lower
rate.
As of July 31, 2018, we have not completed our accounting for
the tax effects of enactment of the 2017 Tax Act; however, we have
made a reasonable estimate of the effects on our existing deferred
tax balances for the twelve months ended July 31, 2018. We recorded
a provisional charge of $43 million related to the re-measurement
of certain deferred tax balances.
We recognized excess tax benefits on share-based compensation of
$100 million in our provision for income taxes for the twelve
months ended July 31, 2018 and $72 million for the twelve months
ended July 31, 2017.
During fiscal year 2018, we completed a reorganization which
resulted in a taxable liquidation of a subsidiary. The transaction
gave rise to a capital loss that resulted in a tax benefit of
approximately $35 million.
Our effective tax rate for the twelve months ended July 31, 2018
was approximately 19%. Excluding the tax benefits related to
share-based compensation, the reorganization of a subsidiary, and
the charge related to the re-measurement of our deferred tax asset
balances, our effective tax rate was approximately 26% and did not
differ significantly from the federal statutory rate of 26.9%.
Our effective tax rate for the twelve months ended July 31, 2017
was approximately 29%. Excluding the tax benefits related to
share-based compensations, our effective tax rate was 34% and did
not differ significantly from the federal statutory rate of
35%.
TABLE B1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL
MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2018 Q1 Q2
Q3 Q4 Full Year GAAP
operating income (loss) $ (57 ) $ 20 $ 1,615 $ (81 ) $ 1,497
Amortization of acquired technology 2 3 5 5 15 Amortization of
other acquired intangible assets 1 1 2 2 6 Professional fees for
business combinations — 2 — — 2 Loss on sale of long-lived assets —
— — 79 79 Share-based compensation expense 97 94 92
99 382
Non-GAAP operating income (loss)
$ 43 $ 120 $ 1,714 $ 104 $ 1,981
GAAP net income (loss) $ (17 ) $ (21 ) $ 1,200 $ 49 $
1,211 Amortization of acquired technology 2 3 5 5 15 Amortization
of other acquired intangible assets 1 1 2 2 6 Professional fees for
business combinations — 2 — — 2 Loss on sale of long-lived assets —
— — 79 79 Share-based compensation expense 97 94 92 99 382 Net
(gain) loss on debt securities and other investments 2 2 — 2 6
Other income from divested businesses [A] — — (8 ) — (8 ) 2017 Tax
Act [B] — 39 5 (1 ) 43 Other income tax effects and adjustments [C]
$ (56 ) $ (29 ) $ (36 ) $ (150 ) $ (271 )
Non-GAAP net income
(loss) $ 29 $ 91 $ 1,260 $ 85 $
1,465
GAAP diluted net income (loss) per share
$ (0.07 ) $ (0.08 ) $ 4.59 $ 0.18 $ 4.64 Amortization of acquired
technology 0.01 0.01 0.02 0.02 0.06 Amortization of other acquired
intangible assets — — 0.01 0.01 0.02 Professional fees for business
combinations — 0.01 — — 0.01 Loss on sale of long-lived assets — —
— 0.30 0.30 Share-based compensation expense 0.38 0.36 0.35 0.38
1.46 Net (gain) loss on debt securities and other investments 0.01
0.01 — 0.01 0.02 Other income from divested businesses [A] — —
(0.03 ) — (0.03 ) 2017 Tax Act [B] — 0.15 0.02 — 0.17 Other income
tax effects and adjustments [C] (0.22 ) (0.11 ) (0.14 ) (0.58 )
(1.04 )
Non-GAAP diluted net income (loss) per share $ 0.11
$ 0.35 $ 4.82 $ 0.32 $ 5.61
Shares used in GAAP diluted per share calculation 256
256 262 263 261
Shares
used in non-GAAP diluted per share calculation 259 260
262 263 261 [A] During the three
months ended April 30, 2018, we received payments from contingent
earn out provisions related to businesses we previously divested.
[B] The 2017 Tax Act adjustments relate to the provisional tax
expense for the re-measurement of deferred tax balances at the
enacted lower tax rates. [C] As discussed in “About Non-GAAP
Financial Measures - Income Tax Effects and Adjustments” following
Table J, our non-GAAP tax rate eliminates the effects of
non-recurring and period specific items. Other income tax
adjustments consist primarily of the tax impact of the non-GAAP
pre-tax adjustments, which includes the loss on the sale of
long-lived assets; the excess tax benefits on share-based
compensation; and the tax benefits on a loss from a subsidiary
reorganization.
See “About Non-GAAP Financial Measures” immediately following
Table J for information on these measures, the items excluded from
the most directly comparable GAAP measures in arriving at non-GAAP
financial measures, and the reasons management uses each measure
and excludes the specified amounts in arriving at each non-GAAP
financial measure.
TABLE B2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES
TO MOST DIRECTLY COMPARABLE GAAP FINANCIAL
MEASURES
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2017 Q1 Q2
Q3 Q4 Full Year GAAP
operating income (loss) $ (61 ) $ 22 $ 1,444 $ (10 ) $ 1,395
Amortization of acquired technology 3 3 3 3 12 Amortization of
other acquired intangible assets 1 — 1 — 2 Share-based compensation
expense 89 81 71 85 326
Non-GAAP operating income (loss) $ 32 $ 106 $
1,519 $ 78 $ 1,735
GAAP net income
(loss) $ (30 ) $ 13 $ 964 $ 24 $ 971 Amortization of acquired
technology 3 3 3 3 12 Amortization of other acquired intangible
assets 1 — 1 — 2 Share-based compensation expense 89 81 71 85 326
Net (gain) loss on debt securities and other investments 1 6 1 1 9
Income tax effects and adjustments [A] (49 ) (36 ) (25 ) (60 ) (170
)
Non-GAAP net income (loss) $ 15 $ 67 $ 1,015
$ 53 $ 1,150
GAAP diluted net income
(loss) per share $ (0.12 ) $ 0.05 $ 3.70 $ 0.09 $ 3.72
Amortization of acquired technology 0.01 0.01 0.01 0.01 0.05
Amortization of other acquired intangible assets 0.01 — 0.01 — 0.01
Share-based compensation expense 0.34 0.31 0.27 0.33 1.25 Net
(gain) loss on debt securities and other investments 0.01 0.03 0.01
— 0.03 Income tax effects and adjustments [A] (0.19 ) (0.14 ) (0.10
) (0.23 ) (0.65 )
Non-GAAP diluted net income (loss) per
share $ 0.06 $ 0.26 $ 3.90 $ 0.20 $
4.41
Shares used in GAAP diluted per share
calculation 258 260 260 261 261
Shares used in non-GAAP diluted per share
calculation 261 260 260 261 261
[A]
As discussed in “About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments” following Table J,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period specific items. Consequently, our non-GAAP
results have been adjusted to exclude the excess tax benefits
related to share-based compensation. See note B to Table A for more
information.
See “About Non-GAAP Financial Measures” immediately following
Table J for information on these measures, the items excluded from
the most directly comparable GAAP measures in arriving at non-GAAP
financial measures, and the reasons management uses each measure
and excludes the specified amounts in arriving at each non-GAAP
financial measure.
TABLE C
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions)
(Unaudited)
July 31, July 31, 2018
2017 ASSETS Current assets: Cash and cash equivalents $
1,464 $ 529 Investments 252 248 Accounts receivable, net 98 103
Income taxes receivable 39 63 Prepaid expenses and other current
assets 184 100 Current assets before funds held for
customers 2,037 1,043 Funds held for customers 367 372 Total
current assets 2,404 1,415 Long-term investments 13 31
Property and equipment, net 812 1,030 Goodwill 1,611 1,295 Acquired
intangible assets, net 61 22 Long-term deferred income taxes 87 132
Other assets 190 143 Total assets $ 5,178 $ 4,068
LIABILITIES AND STOCKHOLDERS’ EQUITY Current liabilities:
Short-term debt $ 50 $ 50 Accounts payable 178 157 Accrued
compensation and related liabilities 369 300 Deferred revenue 961
887 Other current liabilities 191 178 Current liabilities
before customer fund deposits 1,749 1,572 Customer fund deposits
367 372 Total current liabilities 2,116 1,944
Long-term debt 388 438 Long-term deferred revenue 197 202 Other
long-term obligations 123 130 Total liabilities 2,824
2,714 Stockholders’ equity 2,354 1,354 Total
liabilities and stockholders’ equity $ 5,178 $ 4,068
TABLE D
INTUIT INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(In millions)
(Unaudited)
Twelve Months Ended July 31,
July 31, 2018 2017 Cash flows from
operating activities: Net income $ 1,211 $ 971 Adjustments to
reconcile net income to net cash provided by operating activities:
Depreciation 228 214 Amortization of acquired intangible assets 25
22 Share-based compensation expense 382 326 Loss on sale of
long-lived assets 79 — Deferred income taxes 51 8 Other 6 13
Total adjustments 771 583 Changes in operating
assets and liabilities: Accounts receivable 5 5 Income taxes
receivable (1 ) (44 ) Prepaid expenses and other assets (31 ) (9 )
Accounts payable 12 — Accrued compensation and related liabilities
75 10 Deferred revenue 66 83 Other liabilities 4 —
Total changes in operating assets and liabilities 130 45
Net cash provided by operating activities
2,112 1,599 Cash flows from
investing activities: Purchases of corporate and customer fund
investments (407 ) (352 ) Sales of corporate and customer fund
investments 128 359 Maturities of corporate and customer fund
investments 286 183 Net change in cash and cash equivalents held to
satisfy customer fund obligations 5 (68 ) Net change in customer
fund deposits (5 ) 68 Purchases of property and equipment (124 )
(230 ) Acquisitions of businesses, net of cash acquired (363 ) —
Originations of term loans to small businesses (137 ) — Principal
repayments of term loans from small businesses 82 — Other 3
(45 )
Net cash used in investing activities (532
) (85 ) Cash flows from financing
activities: Proceeds from borrowings under revolving credit
facilities 800 150 Repayments on borrowings under revolving credit
facilities (800 ) (150 ) Repayment of debt (50 ) (512 ) Proceeds
from issuance of stock under employee stock plans 295 226 Payments
for employee taxes withheld upon vesting of restricted stock units
(199 ) (153 ) Cash paid for purchases of treasury stock (272 ) (839
) Dividends and dividend rights paid (407 ) (353 ) Other (1 ) (1 )
Net cash used in financing activities (634 )
(1,632 ) Effect of exchange rates on cash and cash
equivalents (11 ) 9
Net increase (decrease) in cash and
cash equivalents 935 (109 ) Cash and cash
equivalents at beginning of period 529 638
Cash
and cash equivalents at end of period $ 1,464
$ 529 TABLE E
INTUIT INC.
GAAP CONSOLIDATED STATEMENTS OF OPERATIONS
RESTATED FOR NEW REVENUE STANDARD
(In millions, except per share
amounts)
(Unaudited)
Restated for New Revenue
Standard As Reported Change Twelve Months
Ended Twelve Months Ended Twelve Months Ended
July 31, July 31, July 31, 2018
2017 2018 2017 2018
2017 Net revenue: Product $ 1,624 $ 1,483 $ 1,462 $ 1,376 $
162 $ 107 Service and other 4,401 3,713 4,502
3,801 (101 ) (88 ) Total net revenue 6,025 5,196
5,964 5,177 61 19 Costs and
expenses: Cost of revenue: Cost of product revenue 82 89 112 120
(30 ) (31 ) Cost of service and other revenue 881 709 850 677 31 32
Amortization of acquired technology 15 12 15 12 — — Selling and
marketing 1,631 1,415 1,634 1,420 (3 ) (5 ) Research and
development 1,186 998 1,186 998 — — General and administrative 664
553 664 553 — — Amortization of other acquired intangible assets 6
2 6 2 — — Total costs and
expenses 4,465 3,778 4,467 3,782 (2 )
(4 ) Operating income from continuing operations 1,560 1,418 1,497
1,395 63 23 Interest expense (20 ) (31 ) (20 ) (31 ) — — Interest
and other income (expense), net 26 3 26 3
— — Income before income taxes 1,566 1,390
1,503 1,367 63 23 Income tax provision 237 405 292
396 (55 ) 9 Net income $ 1,329 $ 985
$ 1,211 $ 971 $ 118 $ 14
Basic net income per share $ 5.18 $ 3.83 $ 4.72
$ 3.78 $ 0.46 $ 0.05 Diluted net income
per share $ 5.09 $ 3.78 $ 4.64 $ 3.72 $
0.45 $ 0.06
TABLE F1
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES TO MOST DIRECTLY
COMPARABLE GAAP FINANCIAL MEASURES
RESTATED FOR NEW REVENUE STANDARD
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2018 (ASC 606) Q1 Q2
Q3 Q4 Full Year GAAP
operating income (loss) $ (35 ) $ 194 $ 1,601 $ (200 ) $ 1,560
Amortization of acquired technology 2 3 5 5 15 Amortization of
other acquired intangible assets 1 1 2 2 6 Professional fees for
business combinations — 2 — — 2 Loss on sale of long-lived assets —
— — 79 79 Share-based compensation expense 97 94 92
99 382
Non-GAAP operating income (loss)
$ 65 $ 294 $ 1,700 $ (15 ) $ 2,044
GAAP net income (loss) $ (2 ) $ 183 $ 1,186 $ (38 ) $
1,329 Amortization of acquired technology 2 3 5 5 15 Amortization
of other acquired intangible assets 1 1 2 2 6 Professional fees for
business combinations — 2 — — 2 Loss on sale of long-lived assets —
— — 79 79 Share-based compensation expense 97 94 92 99 382 Net
(gain) loss on debt securities and other investments 2 2 — 2 6
Other income from divested businesses [A] — — (8 ) — (8 ) 2017 Tax
Act [B] — (37 ) 10 (2 ) (29 ) Other income tax effects and
adjustments [C] (56 ) (29 ) (36 ) (150 ) (271 )
Non-GAAP net
income (loss) $ 44 $ 219 $ 1,251 $ (3 ) $
1,511
GAAP diluted net income (loss) per share
$ (0.01 ) $ 0.70 $ 4.53 $ (0.15 ) $ 5.09 Amortization of acquired
technology 0.01 0.01 0.02 0.02 0.06 Amortization of other acquired
intangible assets — — 0.01 0.01 0.02 Professional fees for business
combinations — 0.01 — — 0.01 Loss on sale of long-lived assets — —
— 0.31 0.30 Share-based compensation expense 0.38 0.36 0.35 0.38
1.46 Net (gain) loss on debt securities and other investments 0.01
0.01 — 0.01 0.02 Other income from divested businesses [A] — —
(0.03 ) — (0.03 ) 2017 Tax Act [B] — (0.14 ) 0.04 (0.01 ) (0.11 )
Other income tax effects and adjustments [C] (0.22 ) (0.11 ) (0.14
) (0.58 ) (1.04 )
Non-GAAP diluted net income (loss) per
share $ 0.17 $ 0.84 $ 4.78 $ (0.01 ) $
5.78
Shares used in GAAP diluted per share
calculation 256 260 262 258 261
Shares used in non-GAAP diluted per share
calculation 259 260 262 258 261
[A] During the three months ended April 30, 2018, we
received payments from contingent earn out provisions related to
businesses we previously divested. [B] The 2017 Tax Act adjustments
relate to the provisional tax benefit for the re-measurement of our
deferred tax balances at the enacted lower tax rate. Our deferred
tax balance was a net deferred tax liability due to the
acceleration of profits under the new revenue standard. [C] As
discussed in “About Non-GAAP Financial Measures - Income Tax
Effects and Adjustments” following Table J, our non-GAAP tax rate
eliminates the effects of non-recurring and period specific items.
Other income tax adjustments consist primarily of the tax impact of
the non-GAAP pre-tax adjustments, which includes the loss on the
sale of long-lived assets; the excess tax benefits on share-based
compensation; and the tax benefits on a loss from a subsidiary
reorganization.
See “About Non-GAAP Financial Measures” immediately following
Table J for information on these measures, the items excluded from
the most directly comparable GAAP measures in arriving at non-GAAP
financial measures, and the reasons management uses each measure
and excludes the specified amounts in arriving at each non-GAAP
financial measure.
TABLE F2
INTUIT INC.
RECONCILIATION OF NON-GAAP FINANCIAL
MEASURES TO MOST DIRECTLY
COMPARABLE GAAP FINANCIAL MEASURES
RESTATED FOR NEW REVENUE STANDARD
(In millions, except per share
amounts)
(Unaudited)
Fiscal 2017 (ASC 606) Q1
Q2 Q3 Q4 Full Year
GAAP operating income (loss) $ (29 ) $ 201 $ 1,385 $ (139 )
$ 1,418 Amortization of acquired technology 3 3 3 3 12 Amortization
of other acquired intangible assets 1 — 1 — 2 Share-based
compensation expense 89 81 71 85 326
Non-GAAP operating income (loss) $ 64 $ 285
$ 1,460 $ (51 ) $ 1,758
GAAP net
income (loss) $ (10 ) $ 125 $ 927 $ (57 ) $ 985 Amortization of
acquired technology 3 3 3 3 12 Amortization of other acquired
intangible assets 1 — 1 — 2 Share-based compensation expense 89 81
71 85 326 Net (gain) loss on debt securities and other investments
1 6 1 1 9 Income tax effects and adjustments [A] (48 ) (28 ) (27 )
(65 ) (168 )
Non-GAAP net income (loss) $ 36 $ 187
$ 976 $ (33 ) $ 1,166
GAAP diluted
net income (loss) per share $ (0.04 ) $ 0.48 $ 3.56 $ (0.22 ) $
3.78 Amortization of acquired technology 0.01 0.01 0.01 0.01 0.05
Amortization of other acquired intangible assets 0.01 — 0.01 — 0.01
Share-based compensation expense 0.34 0.31 0.27 0.33 1.25 Net
(gain) loss on debt securities and other investments 0.01 0.03 0.01
— 0.03 Income tax effects and adjustments [A] (0.19 ) (0.11 ) (0.11
) (0.25 ) (0.65 )
Non-GAAP diluted net income (loss) per
share $ 0.14 $ 0.72 $ 3.75 $ (0.13 ) $
4.47
Shares used in GAAP diluted per share
calculation 258 260 260 257 261
Shares used in non-GAAP diluted per share
calculation 261 260 260 257 261
[A]
As discussed in “About Non-GAAP Financial
Measures - Income Tax Effects and Adjustments” following Table J,
our long-term non-GAAP tax rate eliminates the effects of
non-recurring and period specific items. Consequently, our non-GAAP
results have been adjusted to exclude the excess tax benefits
related to share-based compensation. See note B to Table A for more
information.
See “About Non-GAAP Financial Measures” immediately following
Table J for information on these measures, the items excluded from
the most directly comparable GAAP measures in arriving at non-GAAP
financial measures, and the reasons management uses each measure
and excludes the specified amounts in arriving at each non-GAAP
financial measure.
TABLE G
INTUIT INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
RESTATED FOR NEW REVENUE STANDARD
(In millions)
(Unaudited)
Restated for New Revenue
Standard As Reported Change July 31,
July 31, July 31, 2018 2017
2018 2017 2018 2017
ASSETS Current assets: Cash and cash equivalents $
1,464 $ 529 $ 1,464 $ 529 $ — $ — Investments 252 248 252 248 — —
Accounts receivable, net 98 103 98 103 — — Income taxes receivable
39 63 39 63 — — Prepaid expenses and other current assets 202
118 184 100 18
18 Current assets before funds held for customers
2,055 1,061 2,037 1,043 18 18 Funds held for customers 367
372 367 372 — —
Total current assets 2,422 1,433 2,404 1,415 18 18
Long-term investments 13 31 13 31 — — Property and equipment, net
812 1,030 812 1,030 — — Goodwill 1,611 1,295 1,611 1,295 — —
Acquired intangible assets, net 61 22 61 22 — — Long-term deferred
income taxes 2 2 87 132 (85 ) (130 ) Other assets 213
164 190 143 23 21 Total
assets $ 5,134 $ 3,977 $ 5,178 $ 4,068
$ (44 ) $ (91 ) LIABILITIES AND STOCKHOLDERS’
EQUITY Current liabilities: Short-term debt $ 50 $ 50 $ 50 $ 50 $ —
$ — Accounts payable 178 157 178 157 — — Accrued compensation and
related liabilities 369 300 369 300 — — Deferred revenue 581 574
961 887 (380 ) (313 ) Other current liabilities 198
185 191 178 7 7 Current
liabilities before customer fund deposits 1,376 1,266 1,749 1,572
(373 ) (306 ) Customer fund deposits 367 372
367 372 — — Total current
liabilities 1,743 1,638 2,116 1,944 (373 ) (306 ) Long-term
debt 388 438 388 438 — — Long-term deferred revenue 3 1 197 202
(194 ) (201 ) Other long-term obligations 184 201
123 130 61 71 Total
liabilities 2,318 2,278 2,824 2,714
(506 ) (436 ) Stockholders’ equity 2,816
1,699 2,354 1,354 462
345 Total liabilities and stockholders’ equity $
5,134 $ 3,977 $ 5,178 $ 4,068 $
(44 ) $ (91 )
TABLE H
GAAP SEGMENT INFORMATION RESTATED FOR NEW
REVENUE STANDARD
(In millions)
(Unaudited)
Restated for New Revenue
Standard As Reported Change Twelve Months
Ended Twelve Months Ended Twelve Months Ended
July 31, July 31, July 31, 2018
2017 2018 2017 2018
2017 Net revenue: Small Business & Self-Employed
$ 3,061 $ 2,574 $ 2,994 $ 2,539 $ 67 $ 35 Consumer 2,508 2,182
2,517 2,201 (9 ) (19 ) Strategic Partner 456 440 453
437 3 3
Total net revenue $
6,025 $ 5,196 $ 5,964 $ 5,177 $ 61
$ 19
Operating income from continuing
operations: Small Business & Self-Employed $ 1,326 $ 1,111
$ 1,257 $ 1,072 $ 69 $ 39 Consumer 1,587 1,376 1,596 1,395 (9 ) (19
) Strategic Partner 284 266 281 263 3
3
Total segment operating income
3,197 2,753 3,134 2,730 63 23 Unallocated corporate items:
Share-based compensation expense (382 ) (326 ) (382 ) (326 ) — —
Other common expenses (1,234 ) (995 ) (1,234 ) (995 ) — —
Amortization of acquired technology (15 ) (12 ) (15 ) (12 ) — —
Amortization of other acquired intangible assets (6 ) (2 ) (6 ) (2
) — — Goodwill and intangible asset impairment charges — —
— — — — Total unallocated
corporate items (1,637 ) (1,335 ) (1,637 ) (1,335 ) — —
Total operating income from continuing operations $
1,560 $ 1,418 $ 1,497 $ 1,395 $ 63
$ 23
TABLE I
GAAP QUARTERLY INFORMATION RESTATED FOR NEW REVENUE STANDARD (In
millions, except per share amounts) (Unaudited)
Fiscal 2018 Quarter Ended October 31
January 31 April 30 July 31
Restated Restated Restated
Restated for New for New for
New for New Revenue As Revenue
As Revenue As Revenue As
Standard Reported Standard
Reported Standard Reported
Standard Reported Total net revenue $ 910 $
886 $ 1,339 $ 1,165 $ 2,912 $ 2,925 $ 864 $ 988 Cost of revenue 198
196 246 246 305 304 229 231 All other costs and expenses 747 747
899 899 1,006 1,006 835 838 Operating income (loss) (35 ) (57 ) 194
20 1,601 1,615 (200 ) (81 ) Net income (loss) (2 ) (17 ) 183 (21 )
1,186 1,200 (38 ) 49 Basic net income (loss) per share $
(0.01 ) $ (0.07 ) $ 0.72 $ (0.08 ) $ 4.62 $ 4.68
$ (0.15 ) $ 0.19 Diluted net income (loss) per
share $ (0.01 ) $ (0.07 ) $ 0.70 $ (0.08 ) $ 4.53 $
4.59 $ (0.15 ) $ 0.18
Fiscal
2017 Quarter Ended October 31 January 31
April 30 July 31 Restated
Restated Restated Restated
for New for New for New for New
Revenue As Revenue As Revenue
As Revenue As Standard Reported
Standard Reported Standard
Reported Standard Reported Total net
revenue $ 810 $ 778 $ 1,193 $ 1,016 $ 2,481 $ 2,541 $ 712 $ 842
Cost of revenue 184 183 206 206 237 237 183 183 All other costs and
expenses 655 656 786 788 859 860 668 669 Operating income (loss)
(29 ) (61 ) 201 22 1,385 1,444 (139 ) (10 ) Net income (loss) (10 )
(30 ) 125 13 927 964 (57 ) 24 Basic net income (loss) per
share $ (0.04 ) $ (0.12 ) $ 0.49 $ 0.05 $ 3.61
$ 3.76 $ (0.22 ) $ 0.09 Diluted net income
(loss) per share $ (0.04 ) $ (0.12 ) $ 0.48 $ 0.05 $
3.56 $ 3.70 $ (0.22 ) $ 0.09
TABLE J
INTUIT INC. RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR NON-GAAP
FINANCIAL MEASURES TO PROJECTED GAAP REVENUE, OPERATING INCOME
(LOSS), AND EPS (In millions, except per share amounts) (Unaudited)
Forward-Looking Guidance GAAP
Non-GAAP Range of Estimate Range of
Estimate From To Adjmts From
To New Revenue Standard (ASC 606)
Three Months Ending October 31, 2018 Revenue $ 955 $ 975 $ —
$ 955 $ 975 Operating income (loss) $ (80 ) $ (70 ) $ 110 [a] $ 30
$ 40 Diluted earnings (loss) per share $ (0.19 ) $ (0.17 ) $ 0.28
[b] $ 0.09 $ 0.11
Twelve Months Ending July 31, 2019
Revenue $ 6,530 $ 6,630 $ — $ 6,530 $ 6,630 Operating income $
1,725 $ 1,775 $ 440 [c] $ 2,165 $ 2,215 Diluted earnings per share
$ 5.25 $ 5.35 $ 1.15 [d] $ 6.40 $ 6.50
Previous
Revenue Standard (ASC 605) Twelve Months Ending July 31,
2019 Revenue $ 6,560 $ 6,660 $ — $ 6,560 $ 6,660 Operating
income $ 1,755 $ 1,805 $ 440 [c] $ 2,195 $ 2,245 Diluted earnings
per share $ 5.35 $ 5.45 $ 1.15 [d] $ 6.50 $ 6.60
Note: Fiscal 2019 guidance under
ASC 605 presented for comparison with prior year. Going forward,
guidance will only be provided in accordance with ASC 606.
See “About Non-GAAP Financial Measures” immediately following
this Table J for information on these measures, the items excluded
from the most directly comparable GAAP measures in arriving at
non-GAAP financial measures, and the reasons management uses each
measure and excludes the specified amounts in arriving at each
non-GAAP financial measure.
[a] Reflects estimated adjustments for share-based
compensation expense of approximately $104 million; amortization of
acquired technology of approximately $4 million; and amortization
of other acquired intangible assets of approximately $2 million.
[b] Reflects the estimated adjustments in item [a], income
taxes related to these adjustments, and other income tax effects
related to the use of the long-term non-GAAP tax rate. [c]
Reflects estimated adjustments for share-based compensation expense
of approximately $416 million; amortization of acquired technology
of approximately $19 million; and amortization of other acquired
intangible assets of approximately $5 million. [d] Reflects
the estimated adjustments in item [c], income taxes related to
these adjustments, and other income tax effects related to the use
of the long-term non-GAAP tax rate.
INTUIT INC.ABOUT NON-GAAP FINANCIAL
MEASURES
The accompanying press release dated August 23, 2018
contains non-GAAP financial measures. Table B1, Table B2, Table F1,
Table F2, and Table J reconcile the non-GAAP financial measures in
that press release to the most directly comparable financial
measures prepared in accordance with Generally Accepted Accounting
Principles (GAAP). These non-GAAP financial measures include
non-GAAP operating income (loss), non-GAAP net income (loss) and
non-GAAP net income (loss) per share.
Non-GAAP financial measures should not be considered as a
substitute for, or superior to, measures of financial performance
prepared in accordance with GAAP. These non-GAAP financial measures
do not reflect a comprehensive system of accounting, differ from
GAAP measures with the same names, and may differ from non-GAAP
financial measures with the same or similar names that are used by
other companies.
We compute non-GAAP financial measures using the same consistent
method from quarter to quarter and year to year. We may consider
whether other significant items that arise in the future should be
excluded from our non-GAAP financial measures.
We exclude the following items from all of our non-GAAP
financial measures:
- Share-based compensation expense
- Amortization of acquired
technology
- Amortization of other acquired
intangible assets
- Goodwill and intangible asset
impairment charges
- Gains and losses on disposals of
businesses and long-lived assets
- Professional fees for business
combinations
We also exclude the following items from non-GAAP net income
(loss) and diluted net income (loss) per share:
- Gains and losses on debt and equity
securities and other investments
- Income tax effects and adjustments
- Discontinued operations
We believe that these non-GAAP financial measures provide
meaningful supplemental information regarding Intuit’s operating
results primarily because they exclude amounts that we do not
consider part of ongoing operating results when planning and
forecasting and when assessing the performance of the organization,
our individual operating segments, or our senior management.
Segment managers are not held accountable for share-based
compensation expense, amortization, or the other excluded items
and, accordingly, we exclude these amounts from our measures of
segment performance. We believe that our non-GAAP financial
measures also facilitate the comparison by management and investors
of results for current periods and guidance for future periods with
results for past periods.
The following are descriptions of the items we exclude from our
non-GAAP financial measures.
Share-based compensation expenses. These consist of non-cash
expenses for stock options, restricted stock units, and our
Employee Stock Purchase Plan. When considering the impact of equity
awards, we place greater emphasis on overall shareholder dilution
rather than the accounting charges associated with those
awards.
Amortization of acquired technology and amortization of other
acquired intangible assets. When we acquire an entity, we are
required by GAAP to record the fair values of the intangible assets
of the entity and amortize them over their useful lives.
Amortization of acquired technology in cost of revenue includes
amortization of software and other technology assets of acquired
entities. Amortization of other acquired intangible assets in
operating expenses includes amortization of assets such as customer
lists, covenants not to compete, and trade names.
Goodwill and intangible asset impairment charges. We exclude
from our non-GAAP financial measures non-cash charges to adjust the
carrying values of goodwill and other acquired intangible assets to
their estimated fair values.
Gains and losses on disposals of businesses and long-lived
assets. We exclude from our non-GAAP financial measures gains and
losses on disposals of businesses and long-lived assets because
they are unrelated to our ongoing business operating results.
Professional fees for business combinations. We exclude from our
non-GAAP financial measures the professional fees we incur to
complete business combinations. These include investment banking,
legal, and accounting fees.
Gains and losses on debt and equity securities and other
investments. We exclude from our non-GAAP financial measures gains
and losses that we record when we sell or impair available-for-sale
debt and equity securities and other investments.
Income tax effects and adjustments. In fiscal 2017 and the first
quarter of fiscal 2018 we used a long-term non-GAAP tax rate for
evaluating operating results and for planning, forecasting, and
analyzing future periods. This long-term non-GAAP tax rate excluded
the income tax effects of the non-GAAP pre-tax adjustments
described above and eliminates the effects of non-recurring and
period specific items which can vary in size and frequency. Based
on our current long-term projections at that time we used a
long-term non-GAAP tax rate of 33%. This rate was consistent with
the average of our normalized fiscal year tax rate over a four year
period that included the past three fiscal years plus the current
fiscal year forecast.
In the second quarter of our fiscal 2018, we revised our
estimated annual non-GAAP tax rate to reflect the change in the
U.S. federal statutory rate, as a result of the 2017 Tax Cuts and
Jobs Act (2017 Tax Act). The federal statutory rate change, to 21%,
was effective January 1, 2018, and therefore, the change resulted
in a blended U.S. federal statutory rate of 26.9% for our fiscal
year 2018. In the fourth quarter of fiscal 2018, we adjusted our
non-GAAP tax rate from 26.3% to 26.2% based on continued analysis
of the impacts from the 2017 Tax Act. Because of the transitional
impact of the 2017 Tax Act provisions, the fiscal 2018 non-GAAP tax
rate is based on our current year results only, without reference
to long-term forecasts. This non-GAAP tax rate excludes the income
tax effects of the non-GAAP pre-tax adjustments described above and
eliminates the effects of the non-recurring and period specific
items. We have applied this tax rate to year to date pre-tax
income, after the elimination of the effects of the non-GAAP
adjustments described above.
In fiscal 2019, we will fully benefit from the U.S. federal
statutory rate change and will use a long-term non-GAAP tax rate
for evaluating operating results and for planning, forecasting, and
analyzing future periods. This long-term non-GAAP tax rate excludes
the income tax effects of the non-GAAP pre-tax adjustments
described above and eliminates the effects of non-recurring and
period specific items which can vary in size and frequency. Due to
the changes in the U.S. federal statutory rate in fiscal 2018, as a
result of the 2017 Tax Act, the calculation of the fiscal 2019
long-term non-GAAP rate includes only our current forecast
considerations and is equal to the average of our forecasted tax
rates over our long term forecast period. Based on these current
projections, we are using a long-term non-GAAP tax rate of 23% for
fiscal 2019. This long-term non-GAAP tax rate could be subject to
change for various reasons including significant changes in our
geographic earnings mix or fundamental tax law changes in major
jurisdictions in which we operate. We will evaluate this long-term
non-GAAP tax rate on an annual basis and whenever any significant
events occur which may materially affect this rate.
Operating results and gains and losses on the sale of
discontinued operations. From time to time, we sell or otherwise
dispose of selected operations as we adjust our portfolio of
businesses to meet our strategic goals. In accordance with GAAP, we
segregate the operating results of discontinued operations as well
as gains and losses on the sale of these discontinued operations
from continuing operations on our GAAP statements of operations but
continue to include them in GAAP net income or loss and net income
or loss per share. We exclude these amounts from our non-GAAP
financial measures.
The reconciliations of the forward-looking non-GAAP financial
measures to the most directly comparable GAAP financial measures in
Table J include all information reasonably available to Intuit at
the date of this press release. These tables include adjustments
that we can reasonably predict. Events that could cause the
reconciliation to change include acquisitions and divestitures of
businesses, goodwill and other asset impairments, sales of
available-for-sale debt securities and other investments, and
disposals of businesses and long-lived assets.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180823005712/en/
Intuit Inc.InvestorsKim Watkins,
650-944-3324kim_watkins@intuit.comMediaDiane Carlini,
650-944-6251diane_carlini@intuit.com
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