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Stockholders' Equity | 6 Months Ended
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Jan. 31, 2021
Equity [Abstract] |
Stockholders' Equity |
10. 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 470,000 shares for $175 million under these programs during the six months ended January 31, 2021. Included in this amount were $11 million of repurchases which occurred in late January 2021 and settled in early February 2021. At January 31, 2021, we had authorization from our Board of Directors to expend up to an additional $2.2 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, 2021 we declared quarterly cash dividends that totaled $1.18 per share of outstanding common stock for a total of $320 million. In February 2021 our Board of Directors declared a quarterly cash dividend of $0.59 per share of outstanding common stock payable on April 19, 2021 to stockholders of record at the close of business on April 12, 2021. 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 or loss for the periods shown.
| Three Months Ended |  | Six Months Ended
(In millions) | January 31, 2021 |  | January 31, 2020 |  | January 31, 2021 |  | January 31, 2020
Cost of revenue | $ | 16 |  |  | $ | 14 |  |  | $ | 31 |  |  | $ | 29 |
Selling and marketing | 44 |  |  | 29 |  |  | 76 |  |  | 59 |
Research and development | 67 |  |  | 37 |  |  | 105 |  |  | 75 |
General and administrative | 53 |  |  | 27 |  |  | 79 |  |  | 55 |
Total share-based compensation expense | $ | 180 |  |  | $ | 107 |  |  | $ | 291 |  |  | $ | 218 |
We capitalized $1 million in share-based compensation related to internal-use software projects during the six months ended January 31, 2021 and $2 million during the six months ended January 31, 2020.
Assumed Share-Based Compensation Plans
In connection with our acquisition of Credit Karma on December 3, 2020, we assumed the Credit Karma, Inc. 2015 Equity Incentive Plan, as amended (Credit Karma Plan), under which the assumed equity awards were granted. The assumed equity awards will be settled in shares of our common stock and will retain the terms and conditions under which they were originally granted. See Note 5, "Business Combinations," for more information on the Credit Karma acquisition and the related equity awards assumed. On December 3, 2020, we filed a Form S-8 to register a total of 4,298,127 shares of common stock. This includes 1,997,881 shares of common stock that are issuable upon vesting of assumed equity awards and 2,300,246 shares that are available for future issuance under the Credit Karma Plan.
Share-Based Awards Available for Grant
A summary of share-based awards available for grant under our plans for the six months ended January 31, 2021 was as follows:
(Shares in thousands) | Shares Available for Grant
Balance at July 31, 2020 | 18,047 |
Shares available for grant under an assumed plan | 4,298 |
Restricted stock units granted (1) | (3,710) |
Options granted | — |
Share-based awards canceled/forfeited/expired (1) (2) | 2,384 |
Balance at January 31, 2021 | 21,019 |
(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 under the 2005 Equity Incentive Plan 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 and Credit Karma Plan are returned to the pool of shares available for grant. Under the 2005 Equity Incentive Plan, 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 and Restricted Stock Activity and Related Share-Based Compensation Expense
A summary of restricted stock unit (RSU) and restricted stock activity for the six months ended January 31, 2021 was as follows:
(Shares in thousands) | Number of Shares |  | Weighted Average Grant Date Fair Value
Nonvested at July 31, 2020 | 5,664 |  |  | $ | 231.97 |
Assumed through acquisition | 1,998 |  |  | 355.49 |
Granted (1) | 1,306 |  |  | 364.24 |
Restricted stock subject to revest provisions issued in connection with acquisition | 775 |  |  | 355.49 |
Vested | (967) |  |  | 224.10 |
Forfeited | (644) |  |  | 222.92 |
Nonvested at January 31, 2021 | 8,132 |  |  | $ | 296.98 |
(1)This includes 809,000 shares related to $300 million of restricted stock units issued to the employees of Credit Karma in connection with the acquisition. See Note 5, "Business Combinations." At January 31, 2021, there was approximately $2.2 billion of unrecognized compensation cost related to non-vested RSUs and restricted stock 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, 2021 was as follows:
| Options Outstanding
(Shares in thousands) | Number of Shares |  | Weighted Average Exercise Price Per Share
Balance at July 31, 2020 | 2,681 |  |  | $ | 185.83 |
Granted | — |  |  | — |
Exercised | (454) |  |  | 126.52 |
Canceled or expired | (54) |  |  | 257.25 |
Balance at January 31, 2021 | 2,173 |  |  | $ | 196.45 |
Exercisable at January 31, 2021 | 1,446 |  |  | $ | 153.46 |
At January 31, 2021, there was approximately $46 million of unrecognized compensation cost related to non-vested stock options with a weighted average vesting period of 2.9 years. We will adjust unrecognized compensation cost for actual forfeitures as they occur.

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: 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
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