|
|
|
|
|
Delaware
|
|
000-21180
|
|
77-0034661
|
(State or other Jurisdiction
of Incorporation)
|
|
(Commission
File Number)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
||
|
|
2700 Coast Avenue
Mountain View, CA 94043
|
|
|
|
|
(Address of Principal Executive Offices)
(Zip Code)
|
|
|
¨
|
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
¨
|
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
¨
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
¨
|
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
|
Title of Each Class
|
|
Trading Symbol
|
|
Name of Exchange on Which Registered
|
|
Common Stock, $0.01 par value
|
|
INTU
|
|
Nasdaq Global Select Market
|
|
|
|
99.01
|
|
Press release issued on August 22, 2019, reporting financial results for the quarter and year ended July 31, 2019 and announcing the cash dividend.*
|
|
|
|
|
|
|
*
|
This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Date: August 22, 2019
|
|
INTUIT INC.
|
||
|
|
|
||
|
|
By:
|
|
/s/ Michelle M. Clatterbuck
|
|
|
|
|
Michelle M. Clatterbuck
|
|
|
|
|
Executive Vice President and Chief Financial Officer
|
*
|
This exhibit is intended to be furnished and shall not be deemed “filed” for purposes of the Securities Exchange Act of 1934, as amended.
|
|
|
|
|
|
Contacts:
|
|
Investors
|
|
Media
|
|
|
Kim Watkins
|
|
Kali Fry
|
|
|
Intuit Inc.
|
|
Intuit Inc.
|
|
|
650-944-3324
|
|
650-944-3036
|
|
|
kim_watkins@intuit.com
|
|
kali_fry@intuit.com
|
•
|
Grew revenue to $994 million, up 15 percent year-over-year.
|
•
|
Grew Online Ecosystem revenue by 35 percent.
|
•
|
Grew revenue to nearly $6.8 billion, up 13 percent year-over-year.
|
•
|
Grew combined QBO and TTO platform revenue over 23 percent, totaling approximately $3.9 billion.1
|
•
|
Grew Online Ecosystem revenue by 38 percent.
|
•
|
Finished the year with over 4.5 million QuickBooks Online subscribers, growth of 33 percent.
|
•
|
Grew Consumer Group revenue 11 percent.
|
•
|
Increased GAAP operating income to $1.9 billion, up from $1.6 billion in the prior year, growth of 19 percent.
|
•
|
Increased non-GAAP operating income to $2.3 billion, up 12 percent.
|
•
|
Increased GAAP and non-GAAP earnings per share by 16 percent and 17 percent respectively.
|
GAAP
|
Non-GAAP
|
|||||
|
FY19
|
FY18
|
Change
|
FY19
|
FY18
|
Change
|
Revenue 1
|
$6,784
|
$6,025
|
13%
|
$6,784
|
$6,025
|
13%
|
Operating Income
|
$1,854
|
$1,560
|
19%
|
$2,282
|
$2,044
|
12%
|
Earnings Per Share
|
$5.89
|
$5.09
|
16%
|
$6.75
|
$5.78
|
17%
|
•
|
Grew total Small Business and Self-Employed Group revenue 16 percent for the quarter and 15 percent for the year.
|
•
|
Increased the QuickBooks Online subscriber base in the U.S. 25 percent, to over 3.2 million, and outside the U.S. 58 percent to 1.3 million, for the year.
|
•
|
Increased QuickBooks Self-Employed subscribers to over 1 million this year.
|
•
|
QuickBooks Capital has funded $441 million in cumulative loans in less than two years. At the end of the fourth quarter, the net loans receivable balance was $95 million.
|
•
|
Grew Consumer Group revenue by 11 percent for the year.
|
•
|
Increased professional tax revenue in the Strategic Partner Group by 4 percent for the year.
|
•
|
Repurchased $561 million of stock during fiscal year 2019, with $2.7 billion remaining on the company's authorization.
|
•
|
Received Board approval for a quarterly dividend of $0.53 per share, payable October 18, 2019. This represents a 13 percent increase versus last year.
|
•
|
Small Business and Self-Employed Group: growth of 12 to 14 percent.
|
•
|
Consumer Group: growth of 9 to 10 percent.
|
•
|
Strategic Partner Group: growth of 1 to 2 percent.
|
|
Three Months Ended
|
|
Twelve Months Ended
|
||||||||||||
|
July 31,
2019 |
|
July 31,
2018 |
|
July 31,
2019 |
|
July 31,
2018 |
||||||||
|
|
|
*As Adjusted
|
|
|
|
*As Adjusted
|
||||||||
Net revenue:
|
|
|
|
|
|
|
|
||||||||
Product
|
$
|
245
|
|
|
$
|
246
|
|
|
$
|
1,623
|
|
|
$
|
1,624
|
|
Service and other
|
749
|
|
|
618
|
|
|
5,161
|
|
|
4,401
|
|
||||
Total net revenue
|
994
|
|
|
864
|
|
|
6,784
|
|
|
6,025
|
|
||||
Costs and expenses:
|
|
|
|
|
|
|
|
||||||||
Cost of revenue:
|
|
|
|
|
|
|
|
||||||||
Cost of product revenue
|
17
|
|
|
17
|
|
|
77
|
|
|
82
|
|
||||
Cost of service and other revenue
|
259
|
|
|
207
|
|
|
1,070
|
|
|
881
|
|
||||
Amortization of acquired technology
|
5
|
|
|
5
|
|
|
20
|
|
|
15
|
|
||||
Selling and marketing
|
381
|
|
|
305
|
|
|
1,927
|
|
|
1,631
|
|
||||
Research and development
|
333
|
|
|
311
|
|
|
1,233
|
|
|
1,186
|
|
||||
General and administrative
|
150
|
|
|
217
|
|
|
597
|
|
|
664
|
|
||||
Amortization of other acquired intangible assets
|
2
|
|
|
2
|
|
|
6
|
|
|
6
|
|
||||
Total costs and expenses [A]
|
1,147
|
|
|
1,064
|
|
|
4,930
|
|
|
4,465
|
|
||||
Operating income (loss)
|
(153
|
)
|
|
(200
|
)
|
|
1,854
|
|
|
1,560
|
|
||||
Interest expense
|
(3
|
)
|
|
(4
|
)
|
|
(15
|
)
|
|
(20
|
)
|
||||
Interest and other income, net
|
19
|
|
|
11
|
|
|
42
|
|
|
26
|
|
||||
Income (loss) before income taxes
|
(137
|
)
|
|
(193
|
)
|
|
1,881
|
|
|
1,566
|
|
||||
Income tax provision (benefit) [B]
|
(93
|
)
|
|
(155
|
)
|
|
324
|
|
|
237
|
|
||||
Net income (loss)
|
$
|
(44
|
)
|
|
$
|
(38
|
)
|
|
$
|
1,557
|
|
|
$
|
1,329
|
|
|
|
|
|
|
|
|
|
||||||||
Basic net income (loss) per share
|
$
|
(0.17
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
5.99
|
|
|
$
|
5.18
|
|
Shares used in basic per share calculations
|
260
|
|
|
258
|
|
|
260
|
|
|
256
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Diluted net income (loss) per share
|
$
|
(0.17
|
)
|
|
$
|
(0.15
|
)
|
|
$
|
5.89
|
|
|
$
|
5.09
|
|
Shares used in diluted per share calculations
|
260
|
|
|
258
|
|
|
264
|
|
|
261
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Cash dividends declared per common share
|
$
|
0.47
|
|
|
$
|
0.39
|
|
|
$
|
1.88
|
|
|
$
|
1.56
|
|
[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
|
||||||||||||
(in millions)
|
July 31, 2019
|
|
July 31, 2018
|
|
July 31, 2019
|
|
July 31, 2018
|
||||||||
Cost of revenue
|
$
|
14
|
|
|
$
|
13
|
|
|
$
|
58
|
|
|
$
|
43
|
|
Selling and marketing
|
25
|
|
|
26
|
|
|
103
|
|
|
101
|
|
||||
Research and development
|
35
|
|
|
34
|
|
|
136
|
|
|
133
|
|
||||
General and administrative
|
24
|
|
|
26
|
|
|
104
|
|
|
105
|
|
||||
Total share-based compensation expense
|
$
|
98
|
|
|
$
|
99
|
|
|
$
|
401
|
|
|
$
|
382
|
|
[B]
|
Our effective tax rate for the twelve months ended July 31, 2018 has been restated to reflect the full retrospective application of ASU 2014-09, “Revenue from Contracts with Customers (Topic 606).”
|
|
Fiscal 2019
|
||||||||||||||||||
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
Full Year
|
||||||||||
GAAP operating income (loss)
|
$
|
(10
|
)
|
|
$
|
233
|
|
|
$
|
1,784
|
|
|
$
|
(153
|
)
|
|
$
|
1,854
|
|
Amortization of acquired technology
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
20
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Share-based compensation expense
|
105
|
|
|
100
|
|
|
98
|
|
|
98
|
|
|
401
|
|
|||||
Non-GAAP operating income (loss)
|
$
|
102
|
|
|
$
|
339
|
|
|
$
|
1,888
|
|
|
$
|
(47
|
)
|
|
$
|
2,282
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP net income (loss)
|
$
|
34
|
|
|
$
|
189
|
|
|
$
|
1,378
|
|
|
$
|
(44
|
)
|
|
$
|
1,557
|
|
Amortization of acquired technology
|
5
|
|
|
5
|
|
|
5
|
|
|
5
|
|
|
20
|
|
|||||
Amortization of other acquired intangible assets
|
2
|
|
|
1
|
|
|
1
|
|
|
2
|
|
|
6
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
1
|
|
|
1
|
|
|||||
Share-based compensation expense
|
105
|
|
|
100
|
|
|
98
|
|
|
98
|
|
|
401
|
|
|||||
Net (gain) loss on debt securities and other investments
|
1
|
|
|
2
|
|
|
2
|
|
|
1
|
|
|
6
|
|
|||||
Other income tax effects and adjustments [A]
|
(71
|
)
|
|
(33
|
)
|
|
(19
|
)
|
|
(86
|
)
|
|
(209
|
)
|
|||||
Non-GAAP net income (loss)
|
$
|
76
|
|
|
$
|
264
|
|
|
$
|
1,465
|
|
|
$
|
(23
|
)
|
|
$
|
1,782
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
GAAP diluted net income (loss) per share
|
$
|
0.13
|
|
|
$
|
0.72
|
|
|
$
|
5.22
|
|
|
$
|
(0.17
|
)
|
|
$
|
5.89
|
|
Amortization of acquired technology
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
|
0.08
|
|
|||||
Amortization of other acquired intangible assets
|
0.01
|
|
|
—
|
|
|
—
|
|
|
0.01
|
|
|
0.03
|
|
|||||
Professional fees for business combinations
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Share-based compensation expense
|
0.40
|
|
|
0.38
|
|
|
0.38
|
|
|
0.38
|
|
|
1.52
|
|
|||||
Net (gain) loss on debt securities and other investments
|
—
|
|
|
0.01
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|||||
Other income tax effects and adjustments [A]
|
(0.27
|
)
|
|
(0.13
|
)
|
|
(0.08
|
)
|
|
(0.33
|
)
|
|
(0.79
|
)
|
|||||
Non-GAAP diluted net income (loss) per share
|
$
|
0.29
|
|
|
$
|
1.00
|
|
|
$
|
5.55
|
|
|
$
|
(0.09
|
)
|
|
$
|
6.75
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in GAAP diluted per share calculation
|
264
|
|
|
264
|
|
|
264
|
|
|
260
|
|
|
264
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Shares used in non-GAAP diluted per share calculation
|
264
|
|
|
264
|
|
|
264
|
|
|
260
|
|
|
264
|
|
|
Fiscal 2018
|
||||||||||||||||||
|
* As Adjusted
|
||||||||||||||||||
|
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
|
)
|
|||||
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.
|
[C]
|
As discussed in “About Non-GAAP Financial Measures - Income Tax Effects and Adjustments” following Table E, 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.
|
|
July 31, 2019
|
|
July 31, 2018
|
||||
|
|
|
* As Adjusted
|
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,116
|
|
|
$
|
1,464
|
|
Investments
|
624
|
|
|
252
|
|
||
Accounts receivable, net
|
87
|
|
|
98
|
|
||
Income taxes receivable
|
65
|
|
|
39
|
|
||
Prepaid expenses and other current assets
|
266
|
|
|
202
|
|
||
Current assets before funds held for customers
|
3,158
|
|
|
2,055
|
|
||
Funds held for customers
|
436
|
|
|
367
|
|
||
Total current assets
|
3,594
|
|
|
2,422
|
|
||
|
|
|
|
||||
Long-term investments
|
13
|
|
|
13
|
|
||
Property and equipment, net
|
780
|
|
|
812
|
|
||
Goodwill
|
1,655
|
|
|
1,611
|
|
||
Acquired intangible assets, net
|
54
|
|
|
61
|
|
||
Other assets
|
187
|
|
|
215
|
|
||
Total assets
|
$
|
6,283
|
|
|
$
|
5,134
|
|
|
|
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Short-term debt
|
$
|
50
|
|
|
$
|
50
|
|
Accounts payable
|
274
|
|
|
178
|
|
||
Accrued compensation and related liabilities
|
385
|
|
|
369
|
|
||
Deferred revenue
|
619
|
|
|
581
|
|
||
Other current liabilities
|
202
|
|
|
198
|
|
||
Current liabilities before customer fund deposits
|
1,530
|
|
|
1,376
|
|
||
Customer fund deposits
|
436
|
|
|
367
|
|
||
Total current liabilities
|
1,966
|
|
|
1,743
|
|
||
|
|
|
|
||||
Long-term debt
|
386
|
|
|
388
|
|
||
Long-term deferred income tax liabilities
|
37
|
|
|
68
|
|
||
Other long-term obligations
|
145
|
|
|
119
|
|
||
Total liabilities
|
2,534
|
|
|
2,318
|
|
||
|
|
|
|
||||
Stockholders’ equity
|
3,749
|
|
|
2,816
|
|
||
Total liabilities and stockholders’ equity
|
$
|
6,283
|
|
|
$
|
5,134
|
|
|
Twelve Months Ended
|
||||||
|
July 31, 2019
|
|
July 31, 2018
|
||||
|
|
|
* As Adjusted
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
1,557
|
|
|
$
|
1,329
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation
|
199
|
|
|
228
|
|
||
Amortization of acquired intangible assets
|
26
|
|
|
25
|
|
||
Share-based compensation expense
|
401
|
|
|
382
|
|
||
Loss on sale of long-lived assets
|
—
|
|
|
79
|
|
||
Deferred income taxes
|
(7
|
)
|
|
(5
|
)
|
||
Other
|
15
|
|
|
6
|
|
||
Total adjustments
|
634
|
|
|
715
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable
|
11
|
|
|
5
|
|
||
Income taxes receivable
|
5
|
|
|
(1
|
)
|
||
Prepaid expenses and other assets
|
(37
|
)
|
|
(33
|
)
|
||
Accounts payable
|
90
|
|
|
12
|
|
||
Accrued compensation and related liabilities
|
16
|
|
|
75
|
|
||
Deferred revenue
|
39
|
|
|
6
|
|
||
Other liabilities
|
9
|
|
|
4
|
|
||
Total changes in operating assets and liabilities
|
133
|
|
|
68
|
|
||
Net cash provided by operating activities
|
2,324
|
|
|
2,112
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchases of corporate and customer fund investments
|
(752
|
)
|
|
(407
|
)
|
||
Sales of corporate and customer fund investments
|
84
|
|
|
128
|
|
||
Maturities of corporate and customer fund investments
|
303
|
|
|
286
|
|
||
Net change in customer fund deposits
|
69
|
|
|
(5
|
)
|
||
Purchases of property and equipment
|
(155
|
)
|
|
(124
|
)
|
||
Acquisitions of businesses, net of cash acquired
|
(64
|
)
|
|
(363
|
)
|
||
Originations of term loans to small businesses
|
(316
|
)
|
|
(137
|
)
|
||
Principal repayments of term loans from small businesses
|
267
|
|
|
82
|
|
||
Other
|
(2
|
)
|
|
3
|
|
||
Net cash used in investing activities
|
(566
|
)
|
|
(537
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Proceeds from borrowings under unsecured revolving credit facility
|
—
|
|
|
800
|
|
||
Repayments on borrowings under unsecured revolving credit facility
|
—
|
|
|
(800
|
)
|
||
Proceeds from borrowings under secured revolving credit facility
|
48
|
|
|
—
|
|
||
Repayment of debt
|
(50
|
)
|
|
(50
|
)
|
||
Proceeds from issuance of stock under employee stock plans
|
284
|
|
|
295
|
|
||
Payments for employee taxes withheld upon vesting of restricted stock units
|
(251
|
)
|
|
(199
|
)
|
||
Cash paid for purchases of treasury stock
|
(556
|
)
|
|
(272
|
)
|
||
Dividends and dividend rights paid
|
(501
|
)
|
|
(407
|
)
|
||
Other
|
(8
|
)
|
|
(1
|
)
|
||
Net cash used in financing activities
|
(1,034
|
)
|
|
(634
|
)
|
||
Effect of exchange rates on cash, cash equivalents, restricted cash, and restricted cash equivalents
|
(3
|
)
|
|
(11
|
)
|
||
Net increase in cash, cash equivalents, restricted cash, and restricted cash equivalents
|
721
|
|
|
930
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at beginning of period
|
1,631
|
|
|
701
|
|
||
Cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
|
$
|
2,352
|
|
|
$
|
1,631
|
|
|
|
|
|
||||
Reconciliation of cash, cash equivalents, restricted cash, and restricted cash equivalents reported within the consolidated balance sheet to the total amounts reported on the consolidated statement of cash flows
|
|
|
|
||||
Cash and cash equivalents
|
$
|
2,116
|
|
|
$
|
1,464
|
|
Restricted cash and restricted cash equivalents included in funds held for customers
|
236
|
|
|
167
|
|
||
Total cash, cash equivalents, restricted cash, and restricted cash equivalents at end of period
|
$
|
2,352
|
|
|
$
|
1,631
|
|
|
|
Forward-Looking Guidance
|
||||||||||||||||||||
|
|
GAAP
Range of Estimate
|
|
|
|
|
|
Non-GAAP
Range of Estimate
|
||||||||||||||
|
|
From
|
|
To
|
|
Adjmts
|
|
|
|
From
|
|
To
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Three Months Ending October 31, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
1,105
|
|
|
$
|
1,125
|
|
|
$
|
—
|
|
|
|
|
$
|
1,105
|
|
|
$
|
1,125
|
|
Operating income (loss)
|
|
$
|
(50
|
)
|
|
$
|
(40
|
)
|
|
$
|
115
|
|
|
[a]
|
|
$
|
65
|
|
|
$
|
75
|
|
Diluted earnings (loss) per share
|
|
$
|
(0.04
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
0.27
|
|
|
[b]
|
|
$
|
0.23
|
|
|
$
|
0.25
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Twelve Months Ending July 31, 2020
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue
|
|
$
|
7,440
|
|
|
$
|
7,540
|
|
|
$
|
—
|
|
|
|
|
$
|
7,440
|
|
|
$
|
7,540
|
|
Operating income
|
|
$
|
2,065
|
|
|
$
|
2,115
|
|
|
$
|
450
|
|
|
[c]
|
|
$
|
2,515
|
|
|
$
|
2,565
|
|
Diluted earnings per share
|
|
$
|
6.35
|
|
|
$
|
6.45
|
|
|
$
|
1.15
|
|
|
[d]
|
|
$
|
7.50
|
|
|
$
|
7.60
|
|
[a]
|
Reflects estimated adjustments for share-based compensation expense of approximately $109 million; amortization of acquired technology of approximately $5 million; and amortization of other acquired intangible assets of approximately $1 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 $423 million; amortization of acquired technology of approximately $21 million; and amortization of other acquired intangible assets of approximately $6 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.
|
•
|
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
|
•
|
Gains and losses on debt and equity securities and other investments
|
•
|
Income tax effects and adjustments
|
•
|
Discontinued operations
|