XML 75 R15.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Stockholders' Equity | 6 Months Ended
--- | ---
Jan. 31, 2020
Equity [Abstract] |
Stockholders' Equity |
8. Stockholders’ Equity
Stock Repurchase Programs and Treasury Shares
Intuit’s Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. We repurchased 1.0 million shares for $278 million under these programs during the six months ended January 31, 2020. Included in this amount were $5 million of repurchases which occurred in late January 2020 and were settled in early February 2020. At January 31, 2020, we had authorization from our Board of Directors to expend up to an additional $2.4 billion for stock repurchases. Future stock repurchases under the current programs are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors. Our treasury shares are repurchased at the market price on the trade date; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock on our condensed consolidated balance sheets. Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount. In the past we have satisfied option exercises and restricted stock unit vesting under our employee equity incentive plans by reissuing treasury shares, and we may do so again in the future. During the second quarter of fiscal 2014 we began issuing new shares of common stock to satisfy option exercises and RSU vesting under our 2005 Equity Incentive Plan. We have not yet determined the ultimate disposition of the shares that we have repurchased in the past, and consequently we continue to hold them as treasury shares.
Dividends on Common Stock
During the six months ended January 31, 2020 we declared quarterly cash dividends that totaled $1.06 per share of outstanding common stock for a total of $281 million. In February 2020 our Board of Directors declared a quarterly cash dividend of $0.53 per share of outstanding common stock payable on April 20, 2020 to stockholders of record at the close of business on April 13, 2020. Future declarations of dividends and the establishment of future record dates and payment dates are subject to the final determination of our Board of Directors.
Share-Based Compensation Expense
The following table summarizes the total share-based compensation expense that we recorded in operating income for the periods shown.
| Three Months Ended |  | Six Months Ended
(In millions) | January 31, 2020 |  | January 31, 2019 |  | January 31, 2020 |  | January 31, 2019
Cost of revenue | $ | 14 |  |  | $ | 15 |  |  | $ | 29 |  |  | $ | 29 |
Selling and marketing | 29 |  |  | 25 |  |  | 59 |  |  | 55 |
Research and development | 37 |  |  | 34 |  |  | 75 |  |  | 69 |
General and administrative | 27 |  |  | 26 |  |  | 55 |  |  | 52 |
Total share-based compensation expense | $ | 107 |  |  | $ | 100 |  |  | $ | 218 |  |  | $ | 205 |
We capitalized $1 million and $2 million in share-based compensation related to internal use software projects during the three and six months ended January 31, 2020 and $1 million and $2 million during the three and six months ended January 31, 2019.
Share-Based Awards Available for Grant
A summary of share-based awards available for grant under our 2005 Equity Incentive Plan for the six months ended January 31, 2020 was as follows:
(Shares in thousands) | Shares Available for Grant
Balance at July 31, 2019 | 21,058 |
Restricted stock units granted (1) | (855 | )
Options granted | — |
Share-based awards canceled/forfeited/expired (1) (2) | 1,823 |
Balance at January 31, 20 20 | 22,026 |
(1) | RSUs granted from the pool of shares available for grant under our 2005 Equity Incentive Plan reduce the pool by 2.3 shares for each share granted. RSUs forfeited and returned to the pool of shares available for grant increase the pool by 2.3 shares for each share forfeited.
(2) | Stock options and RSUs canceled, expired or forfeited under our 2005 Equity Incentive Plan are returned to the pool of shares available for grant. Shares withheld for income taxes upon vesting of RSUs that were granted on or after July 21, 2016 are also returned to the pool of shares available for grant. Stock options and RSUs canceled, expired or forfeited under older expired plans are not returned to the pool of shares available for grant.
Restricted Stock Unit Activity and Related Share-Based Compensation Expense
A summary of restricted stock unit (RSU) activity for the six months ended January 31, 2020 was as follows:
| Restricted Stock Units
(Shares in thousands) | Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested at July 31, 2019 | 5,683 |  |  | $ | 186.22 |
Granted | 372 |  |  | 268.94 |
Vested | (734 | ) |  | 157.39 |
Forfeited | (434 | ) |  | 132.98 |
Nonvested at January 31, 20 20 | 4,887 |  |  | $ | 201.56 |
At January 31, 2020, there was approximately $801 million of unrecognized compensation cost related to non-vested RSUs with a weighted average vesting period of 2.9 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.
Stock Option Activity and Related Share-Based Compensation Expense
A summary of stock option activity for the six months ended January 31, 2020 was as follows:
| Options Outstanding
(Shares in thousands) | Number of Shares |  | Weighted Average Exercise Price Per Share
Balance at July 31, 2019 | 3,374 |  |  | $ | 150.75 |
Granted | — |  |  | — |
Exercised | (695 | ) |  | 104.31 |
Canceled or expired | (41 | ) |  | 154.69 |
Balance at January 31, 20 20 | 2,638 |  |  | $ | 162.92 |
Exercisable at January 31, 20 20 | 1,759 |  |  | $ | 129.31 |
At January 31, 2020, there was approximately $42 million of unrecognized compensation cost related to non-vested stock options with a weighted average vesting period of 2.8 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.

X
- References No definition available. + Details
Name: | us-gaap_EquityAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
Name: | us-gaap_StockholdersEquityNoteDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration