Intuit INTU · USD

14. Segment InformationWe have defined our four reportable segments, described below, based on factors such as how we manage our operations and how our chief operating decision maker (CODM) views results. We define the CODM as our Chief Executive Officer and our Chief Financial Officer. Our CODM uses regularly provided segment revenue and segment operating income to assess operating performance and allocate company resources.On August 1, 2024, we renamed our Small Business & Self-Employed segment as the Global Business Solutions segment. This new name better aligns with the global reach of the Mailchimp and QuickBooks platform, our focus on serving both small and mid-market businesses, and our vision to become the all-in-one platform that customers use to grow and run their business.On August 1, 2024, we reorganized certain technology and customer success functions in our Global Business Solutions, Consumer, and ProTax segments that support and benefit our overall platform and are managed at the corporate level rather than at the segment level. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For the twelve months ended July 31, 2024 and 2023, we reclassified expenses totaling $1.4 billion and $1.3 billion from Global Business Solutions, $573 million and $475 million from Consumer, and $33 million and $34 million from ProTax to other corporate expenses, respectively, to conform to the current presentation.Consistent with our vision to deliver one consumer platform, effective August 1, 2025, we combined the Consumer, Credit Karma, and ProTax businesses into a single Consumer business. We will reflect this new organization in our fiscal 2026 segment reporting.Global Business Solutions: This segment serves small and mid-market businesses around the world, and the accounting professionals who assist and advise them. QuickBooks and Intuit Enterprise Suite are offerings powered by our all-in-one business platform which includes financial management services, human capital management solutions such as payroll and time tracking, money solutions, such as merchant payment processing, bill pay, checking accounts through an FDIC-member bank partner, and financing for small and mid-market businesses.

7. DebtThe carrying value of our debt was as follows at the dates indicated: July 31,July 31,Effective(Dollars in millions)20252024Interest RateSenior unsecured notes issued June 2020:0.950% notes due July 2025$— $500 1.127%1.350% notes due July 2027500 500 1.486%1.650% notes due July 2030500 500 1.767%Senior unsecured notes issued September 2023:5.250% notes due September 2026750 750 5.325%5.125% notes due September 2028750 750 5.258%5.200% notes due September 20331,250 1,250 5.312%5.500% notes due September 20531,250 1,250 5.576%Secured revolving credit facilities1,014 585 Total principal balance of debt6,014 6,085 Unamortized discount and debt issuance costs(41)(47)Net carrying value of debt$5,973 $6,038 Short-term debt$— $499 Long-term debt$5,973 $5,539 Future principal payments for debt at July 31, 2025 were as shown in the table below.(In millions)Fiscal year ending July 31,2026$— 20271,250 2028300 20291,464 2030500 Thereafter2,500 Total future principal payments for debt$6,014 Senior Unsecured Notes2020 Notes. In June 2020, we issued four series of senior unsecured notes (together, the 2020 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. During the fourth quarter of fiscal 2025, we repaid the $500 million in notes due in July 2025 when they became due using cash from operations. As of July 31, 2025, $1.0 billion of the 2020 Notes remained outstanding.Interest is payable semiannually on January 15 and July 15 of each year. The discount and debt issuance costs are amortized to interest expense using the effective interest method over the term of the 2020 Notes.The 2020 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 2020 Notes, we will be required to repurchase the 2020 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 2020 Notes requires us to comply with certain covenants. For example, the 2020 Notes limit our ability to create certain liens and enter into sale and leaseback transactions.

10. Income TaxesThe provision for income taxes consisted of the following for the periods indicated: Twelve Months Ended July 31,(In millions)202520242023Current: Federal$1,219 $984 $970 State237 202 208 Foreign25 36 86 Total current1,481 1,222 1,264 Deferred: Federal(453)(523)(559)State(70)(97)(99)Foreign7 (15)(1)Total deferred(516)(635)(659)Total provision for income taxes$965 $587 $605 We recognized excess tax benefits on share-based compensation of $143 million, $183 million, and $32 million in the provision for income taxes for the twelve months ended July 31, 2025, 2024, and 2023, respectively. The sources of income before the provision for income taxes consisted of the following for the periods indicated: Twelve Months Ended July 31,(In millions)202520242023United States$4,700 $3,449 $2,798 Foreign134 101 191 Total$4,834 $3,550 $2,989 Differences between income taxes calculated using the federal statutory income tax rate and the provision for income taxes were as follows for the periods indicated: Twelve Months Ended July 31,(In millions)202520242023Income before income taxes$4,834 $3,550 $2,989 Statutory federal income tax$1,015 $746 $628 State income tax, net of federal benefit132 83 86 Federal research and experimentation credits(113)(109)(106)Share-based compensation47 43 58 Excess tax benefits related to share-based compensation(120)(153)(26)Effects of non-U.S. operations1 — (28)Other, net3 (23)(7)Total provision for income taxes$965 $587 $605 The state income tax line in the table above includes excess tax benefits related to share-based compensation of $23 million, $30 million, and $6 million for the twelve months ended July 31, 2025, 2024, and 2023, respectively.On July 4, 2025, the U.S. federal government enacted the One Big Beautiful Bill Act (OBBBA), which includes significant tax law changes. The OBBBA has multiple effective dates from fiscal 2025 through fiscal 2027. The provisions effective during fiscal 2025 did not have a significant impact on our consolidated financial statements.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.

9. LeasesWe 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 17 years, which include options to extend that are reasonably certain of being exercised. Some of our leases include one or more options to extend the lease for up to 10 years per option, which we are not reasonably certain to exercise. The options to extend are 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 sublease certain office facilities to third parties. These subleases have remaining lease terms of up to 5 years, one of which includes an option to extend the sublease for up to 5 years.The components of lease expense were as follows:Twelve Months Ended July 31,(In millions)202520242023Operating lease cost (1)$111 $108 $124 Variable lease cost22 23 20 Sublease income(10)(11)(12)Total net lease cost$123 $120 $132 (1) Includes short-term leases, which were not material for the twelve months ended July 31, 2025, 2024, or 2023.Supplemental cash flow information related to operating leases was as follows:Twelve Months Ended July 31,(In millions)202520242023Cash paid for amounts included in the measurement of operating lease liabilities$101 $89 $107 Right-of-use assets obtained in exchange for operating lease liabilities$212 $35 $28 Other information related to operating leases was as follows at the dates indicated:July 31,202520242023Weighted-average remaining lease term for operating leases8.1 years7.7 years7.9 yearsWeighted-average discount rate for operating leases3.8 %3.3 %3.0 %Future minimum lease payments under non-cancellable operating leases as of July 31, 2025 were as follows:(In millions)OperatingLeases (1)Fiscal year ending July 31, 2026$78 2027105 202897 2029100 203098 Thereafter314 Total future minimum lease payments792 Less imputed interest(126)Present value of lease liabilities$666 (1) Non-cancellable future sublease proceeds as of July 31, 2025 totaled $22 million through July 31, 2030 and $1 million thereafter, and are not included in the table above.

We host, collect, process, use, and retain large amounts of sensitive and personal data across an array of our own and third-party information systems. To help protect these systems and data, we have implemented a robust information security program that includes numerous administrative, technical, and physical safeguards. We strive to evolve our cyber defenses to help minimize impacts from cyber threats. In general, we seek to address cybersecurity risks through a cross-functional approach. This approach focuses on protecting business operations and preserving the confidentiality, integrity, and availability of systems and data by preventing and mitigating cybersecurity threats, as well as effectively responding to cybersecurity incidents when they occur. Our information security program includes:•Having designated information security personnel, led by our Chief Information Security and Fraud Prevention Officer (CISO), who has decades of relevant experience and also serves as Chief Information Officer. The CISO is supported primarily by our Cybersecurity, Compliance, Risk, and Fraud Team (CyberCRAFT), which consists of approximately 500 professionals as of July 31, 2025. In addition to bringing their current expertise to their roles, CyberCRAFT professionals have the ability to participate in our specialized training and development programs to further enhance their cybersecurity skill sets and cross-train on related capabilities. The CISO works closely with the Company’s internal legal team to oversee compliance with legal, regulatory and contractual security requirements;•Risk assessments designed to help identify and prioritize significant cybersecurity risks. Our process for identifying and assessing material risks from cybersecurity threats includes incorporation of an internally developed threat catalog and our tracking of trends for areas such as vulnerability management, our leverage of technical standards and guidance, input from our participation and collaboration with law enforcement and government initiatives, and our internal and vendor-supported threat intelligence initiatives.

12. Benefit PlansNon-Qualified Deferred Compensation PlanIntuit’s Executive Deferred Compensation Plan provides that executives who meet minimum compensation requirements are eligible to defer up to 75% of their salaries and up to 75% of their bonuses. We have agreed to credit the participants’ contributions with earnings that reflect the performance of certain independent investment funds. We do not guarantee above-market interest on account balances. We may also make discretionary employer contributions to participant accounts in certain circumstances. The timing, amounts, and vesting schedules of employer contributions are at the sole discretion of the Compensation and Organizational Development Committee of our Board of Directors or its delegate. The benefits under this plan are unsecured and are general assets of Intuit. Participants are generally eligible to receive payment of their vested benefit at the end of their elected deferral period or after termination of their employment with Intuit for any reason or at a later date to comply with the restrictions of Section 409A of the Internal Revenue Code. Participants may elect to receive their payments in a lump sum or installments. Discretionary company contributions and the related earnings vest completely upon the participant’s disability, death, or a change in control of Intuit. We made no employer contributions to the plan for any period presented.We had liabilities related to this plan of $248 million at July 31, 2025 and $207 million at July 31, 2024. We have matched the plan liabilities with similar-performing assets, which are primarily investments in life insurance contracts. These assets are recorded in other long-term assets, while liabilities related to obligations are recorded in other current liabilities on our consolidated balance sheets.401(k) PlansIn the U.S., employees who participate in the Intuit Inc. 401(k) Plan may currently contribute up to 50% of pre-tax compensation, subject to IRS limitations and the terms and conditions of the plan. We match a portion of employee contributions, currently 125% up to six percent of compensation, subject to maximum aggregate matching amounts and IRS limitations. Additionally, Credit Karma employees in the U.S. who participate in the Credit Karma 401(k) Plan may currently contribute up to 90% of pre-tax compensation, subject to IRS limitations and the terms and conditions of the plan.

15. RestructuringIn July 2024, our management approved, committed to, and initiated a plan of reorganization (the Plan) focused on reallocating resources to our key growth areas. The Plan included the exit of employees and the closing of real estate sites in certain markets to support growing technology teams and capabilities in strategic locations. The actions associated with the Plan were substantially complete in the first quarter of fiscal 2025. Total restructuring costs associated with the Plan were $238 million. During the twelve months ended July 31, 2025 and 2024, we recorded charges in connection with the Plan of $15 million and $223 million, respectively. These charges are primarily related to severance and employee benefits and are recorded to restructuring in our consolidated statements of operations. The following table summarizes the activity for the Plan by segment.(In millions)AccruedJuly 31, 2024Additional Costs/AdjustmentsCash PaymentsNon-Cash ItemsAccruedJuly 31, 2025Total Costs Incurred to DateTotal Expected Plan CostGlobal Business Solutions$84 $5 $(86)$— $3 $101 $101 Consumer9 — (9)— — 9 9 Credit Karma— — — — — — — ProTax2 — (2)— — 2 2 Corporate92 10 (97)(5)— 126 126 Totals$187 $15 $(194)$(5)$3 $238 $238 AccruedJuly 31, 2023Initial CostsCash PaymentsNon-Cash ItemsAccruedJuly 31, 2024Global Business Solutions$— $96 $— $(12)$84 Consumer— 9 — — 9 Credit Karma— — — — — ProTax— 2 — — 2 Corporate— 116 — (24)92 Totals$— $223 $— $(36)$187 The liability for restructuring charges is included in accrued compensation and related liabilities in the accompanying consolidated balance sheets.

13. Legal ProceedingsBeginning in May 2019, various legal proceedings were filed and certain regulatory inquiries were commenced in connection with our provision and marketing of free online tax preparation programs. We believe that the allegations contained within these legal proceedings are without merit and continue to defend our interests in them. These proceedings included, among others, multiple putative class actions that were consolidated into a single putative class action in the Northern District of California in September 2019 (the Intuit Free File Litigation). In August 2020, the Ninth Circuit Court of Appeals ordered that the putative class action claims be resolved through arbitration. In May 2021, the Intuit Free File Litigation was dismissed on a non-class basis after we entered into an agreement that resolved the matter on an individual non-class basis, without any admission of wrongdoing, for an amount that was not material. These proceedings also include a class action lawsuit that was filed in the Ontario (Canada) Superior Court of Justice on August 25, 2022.These proceedings also included individual demands for arbitration that were filed beginning in October 2019. As of January 31, 2023, we settled all of these arbitration claims, without any admission of wrongdoing, for an amount that was not material. In June 2021, we received a demand and draft complaint from the Federal Trade Commission (FTC) and certain state attorneys general relating to the ongoing inquiries described above. On March 29, 2022, the FTC filed an action in federal court seeking a temporary restraining order and a preliminary injunction enjoining certain Intuit business practices pending resolution of the FTC’s administrative complaint seeking to permanently enjoin certain Intuit business practices (the FTC Actions). On April 22, 2022, the Northern District of California denied the FTC’s requests for a temporary restraining order and a preliminary injunction. Beginning on March 27, 2023, a final hearing on the administrative action was held before an administrative law judge (ALJ) at the FTC and, on August 29, 2023, the FTC’s ALJ issued a decision in favor of the FTC and adverse to Intuit. On January 19, 2024, the FTC Commissioners affirmed the ALJ’s decision and issued a final order that requires us to adhere to certain marketing practices and does not contain any monetary penalties.