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Intuit Inc. (INTU)

Analysis of Debt

Difficulty: Advanced

Debt Accounting Policy

Capitalization of Interest Expense

Intuit capitalizes 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. Intuit amortizes 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.

Source: 10-K (filing date: 2018-08-31).

Total Debt (Carrying Amount)

Intuit Inc., Statement of Financial Position, Debt

USD $ in millions

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Jul 31, 2018 Jul 31, 2017 Jul 31, 2016 Jul 31, 2015 Jul 31, 2014
Short-term debt 50  50  512  —  — 
Long-term debt 388  438  488  500  499 
Total debt (carrying amount) 438  488  1,000  500  499 

Based on: 10-K (filing date: 2018-08-31), 10-K (filing date: 2017-09-01), 10-K (filing date: 2016-09-01), 10-K (filing date: 2015-09-01), 10-K (filing date: 2014-09-12).

Item Description The company
Total debt (carrying amount) Sum of the carrying values as of the balance sheet date of all debt plus capital lease obligations. Intuit Inc.’s total debt declined from 2016 to 2017 and from 2017 to 2018.

Total Debt (Fair Value)

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Jul 31, 2018
Selected Financial Data (USD $ in millions)
Short-term debt 50 
Long-term debt 388 
Total debt (fair value) 438 
Debt, fair value to carrying amount 1.00

Based on: 10-K (filing date: 2018-08-31).

Weighted-average Interest Rate on Debt

Weighted-average interest rate on debt:

Interest Rate Debt Amount1 Interest Rate × Debt Amount Weighted-average Interest Rate2
Total —  — 

Based on: 10-K (filing date: 2018-08-31).

1 USD $ in millions

2 Weighted-average interest rate = 100 × 0 ÷ 0 =