Intuit Inc. (INTU)

Accounts and Notes Receivable, Allowances for Doubtful Accounts, and Allowances for Loan Losses

Accounts receivable are recorded at the invoiced amount and are not interest bearing. Intuit maintains an allowance for doubtful accounts to reserve for potentially uncollectible receivables. Intuit reviews the accounts receivable by aging category to identify significant customers or invoices with known disputes or collectibility issues. For those invoices not specifically identified as uncollectible, Intuit provides an allowance based on the age of the receivable. In determining the amount of the allowance, Intuit makes judgments about the creditworthiness of significant customers based on ongoing credit evaluations. Intuit also considers the historical level of credit losses and current economic trends that might impact the level of future credit losses. When Intuit determines that amounts are uncollectible Intuit writes them off against the allowance.

Notes receivable consist of term loans to small businesses, and are included in prepaid expenses and other current assets on Intuit’s consolidated balance sheets. The term loans are not secured and are recorded at amortized cost, reduced by an allowance for loan losses. Intuit maintains an allowance for loan losses to reserve for potentially uncollectible notes receivable. Intuit evaluates the creditworthiness of the loan portfolio on a pooled basis due to its composition of small, homogeneous loans with similar general credit risk and characteristics and applies 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. Intuit makes 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 Intuit determines that amounts are uncollectible Intuit writes them off against the allowance. As of July 31, 2018, the notes receivable balance was $55 million, net of allowances for loan losses which were not significant.

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

		Jul 31, 2018	Jul 31, 2017	Jul 31, 2016	Jul 31, 2015	Jul 31, 2014
	Selected Financial Data (USD $ in millions)
	Allowance for doubtful accounts
	Accounts receivable, gross
	Ratio
	Allowance as a percentage of accounts receivable, gross1

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).

2018 Calculations