Intuit Inc. (INTU)

Intuit estimates the income taxes based on the various jurisdictions where Intuit conducts business. Significant judgment is required in determining Intuit’s worldwide income tax provision. Intuit estimates the 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 Intuit shows on the consolidated balance sheet. Intuit must then assess the likelihood that the deferred tax assets will be realized. To the extent Intuit believes that realization is not likely, Intuit establishes a valuation allowance. When Intuit establishes a valuation allowance or increases this allowance in an accounting period, Intuit records a corresponding income tax expense in the consolidated statement of operations.

Intuit reviews the need for a valuation allowance to reflect uncertainties about whether Intuit will be able to utilize some of the deferred tax assets before they expire. The valuation allowance analysis is based on the estimates of taxable income for the jurisdictions in which Intuit operates and the periods over which the deferred tax assets will be realizable. While Intuit has considered future taxable income in assessing the need for a valuation allowance for the periods presented, Intuit could be required to record a valuation allowance to take into account additional deferred tax assets that Intuit may be unable to realize. An increase in the valuation allowance would have an adverse impact, which could be material, on the income tax provision and net income in the period in which Intuit records the increase.

Intuit recognizes and measures 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. Intuit evaluates the uncertain tax positions on a quarterly basis. Intuit’s 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 the income tax expense in the period in which Intuit makes the change, which could have a material impact on the effective tax rate and operating results.

Source: 10-K (filing date: 2019-08-30).

Intuit Inc., income tax expense (benefit), continuing operations

US$ in millions

	12 months ended	Jul 31, 2019		Jul 31, 2018		Jul 31, 2017		Jul 31, 2016		Jul 31, 2015		Jul 31, 2014
	Federal
	State
	Foreign
	Current
	Federal
	State
	Foreign
	Deferred
	Provision for income taxes

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., effective income tax rate (EITR) reconciliation

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	U.S. federal statutory income tax rate
	Annual effective tax rate, before Tax Cuts and Jobs Act (2017 Tax Act)
	Annual effective tax rate

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., components of deferred tax assets and liabilities

US$ in millions

		Jul 31, 2019		Jul 31, 2018		Jul 31, 2017		Jul 31, 2016		Jul 31, 2015		Jul 31, 2014
	Accruals and reserves not currently deductible
	Deferred revenue
	Deferred rent
	Accrued and deferred compensation
	Loss and tax credit carryforwards
	Share-based compensation
	Net basis difference in investments held for sale
	Other, net
	Gross deferred tax assets
	Valuation allowance
	Deferred tax assets
	Deferred revenue
	Intangible assets
	Property and equipment
	Other, net
	Deferred tax liabilities
	Net deferred tax assets (liabilities)

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., deferred tax assets and liabilities, classification

US$ in millions

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	Current deferred tax assets
	Long-term deferred income taxes included in other assets
	Long-term deferred income tax liabilities

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., adjustments to financial statements

US$ in millions

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	Adjustment to Current Assets
	Current assets (as reported)
	Less: Current deferred tax assets, net
	Current assets (adjusted)
	Adjustment to Total Assets
	Total assets (as reported)
	Less: Current deferred tax assets, net
	Less: Noncurrent deferred tax assets, net
	Total assets (adjusted)
	Adjustment to Total Liabilities
	Total liabilities (as reported)
	Less: Noncurrent deferred tax liabilities, net
	Total liabilities (adjusted)
	Adjustment to Stockholders’ Equity
	Stockholders’ equity (as reported)
	Less: Net deferred tax assets (liabilities)
	Stockholders’ equity (adjusted)
	Adjustment to Net Income
	Net income (as reported)
	Add: Deferred income tax expense (benefit)
	Net income (adjusted)

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., Financial Data: Reported vs. Adjusted

Intuit Inc., adjusted financial ratios

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	Current Ratio
	Reported current ratio
	Adjusted current ratio
	Net Profit Margin
	Reported net profit margin
	Adjusted net profit margin
	Total Asset Turnover
	Reported total asset turnover
	Adjusted total asset turnover
	Financial Leverage
	Reported financial leverage
	Adjusted financial leverage
	Return on Equity (ROE)
	Reported ROE
	Adjusted ROE
	Return on Assets (ROA)
	Reported ROA
	Adjusted ROA

Based on: 10-K (filing date: 2019-08-30), 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).

Intuit Inc., Financial Ratios: Reported vs. Adjusted

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Current assets
	Current liabilities
	Liquidity Ratio
	Current ratio1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Adjusted current assets
	Current liabilities
	Liquidity Ratio
	Adjusted current ratio2

Based on: 10-K (filing date: 2019-08-30), 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).

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income
	Net revenue
	Profitability Ratio
	Net profit margin1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Adjusted net income
	Net revenue
	Profitability Ratio
	Adjusted net profit margin2

Based on: 10-K (filing date: 2019-08-30), 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).

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net revenue
	Total assets
	Activity Ratio
	Total asset turnover1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Net revenue
	Adjusted total assets
	Activity Ratio
	Adjusted total asset turnover2

Based on: 10-K (filing date: 2019-08-30), 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).

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Total assets
	Stockholders’ equity
	Solvency Ratio
	Financial leverage1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Adjusted total assets
	Adjusted stockholders’ equity
	Solvency Ratio
	Adjusted financial leverage2

Based on: 10-K (filing date: 2019-08-30), 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).

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income
	Stockholders’ equity
	Profitability Ratio
	ROE1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Adjusted net income
	Adjusted stockholders’ equity
	Profitability Ratio
	Adjusted ROE2

Based on: 10-K (filing date: 2019-08-30), 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).

		Jul 31, 2019	Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	As Reported
	Selected Financial Data (US$ in millions)
	Net income
	Total assets
	Profitability Ratio
	ROA1
	Adjusted for Deferred Taxes
	Selected Financial Data (US$ in millions)
	Adjusted net income
	Adjusted total assets
	Profitability Ratio
	Adjusted ROA2

Based on: 10-K (filing date: 2019-08-30), 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).