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Long-Term Obligations and Commitments | 6 Months Ended
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Jan. 31, 2021
Debt Disclosure [Abstract] |
Long-Term Obligations and Commitments |
7. Long-Term Obligations and Commitments
Senior Unsecured Notes
In June 2020 we issued four series of senior unsecured notes (together, the Notes) pursuant to a public debt offering. The proceeds from the issuance were $1.98 billion, net of debt discount of $2 million and debt issuance costs of $15 million. The carrying value of the Notes was as follows at the dates indicated:
(In millions) | January 31, 2021 |  | July 31, 2020 |  | Effective Interest Rate
Senior unsecured notes issued June 2020: |  |  |  |  |
0.650% notes due July 2023 | $ | 500 |  |  | $ | 500 |  |  | 0.837%
0.950% notes due July 2025 | 500 |  |  | 500 |  |  | 1.127%
1.350% notes due July 2027 | 500 |  |  | 500 |  |  | 1.486%
1.650% notes due July 2030 | 500 |  |  | 500 |  |  | 1.767%
Total senior unsecured notes | 2,000 |  |  | 2,000 |  |  |
Unamortized discount and debt issuance costs | (15) |  |  | (17) |  |  |
Net carrying value senior unsecured notes | $ | 1,985 |  |  | $ | 1,983 |  |  |
Interest is payable semiannually on January 15 and July 15 of each year. The discount and debt issuance costs are amortized to interest expense over the term of the Notes under the effective interest method. We paid $12 million for interest on the Notes during the six months ended January 31, 2021. The Notes are senior unsecured obligations of Intuit and rank equally with all existing and future unsecured and unsubordinated indebtedness of Intuit and are redeemable by us at any time, subject to a make-whole premium. Upon the occurrence of change of control transactions that are accompanied by certain downgrades in the credit ratings of the Notes, we will be required to repurchase the Notes at a repurchase price equal to 101% of the aggregate outstanding principal plus any accrued and unpaid interest to but not including the date of repurchase. The indenture governing the Notes requires us to comply with certain covenants. For example, the Notes limit our ability to create certain liens and enter into sale and leaseback transactions. As of January 31, 2021 we were compliant with all covenants governing the Notes.
Secured Revolving Credit Facility
On February 19, 2019, a subsidiary of Intuit entered into a two-year $300 million secured revolving credit facility with a lender. The revolving credit facility is secured by cash and receivables of the subsidiary and is non-recourse to Intuit Inc. Advances under this secured revolving credit facility are used to fund a portion of our loans to qualified small businesses and accrue interest at LIBOR plus 2.39%. Unused portions of the credit facility accrue interest at a rate of 0.50%. On March 2, 2020, we amended the secured revolving credit facility to extend the commitment term from February 19, 2021 to February 19, 2022 and the final maturity date from August 19, 2021 to August 19, 2022. On October 13, 2020 the agreement was further amended to allow for the transition of the benchmark interest rate used to calculate finance charges from LIBOR to the Secured Overnight Financing Rate (SOFR) plus related benchmark adjustments that represent the prevailing market convention for dollar-denominated syndicated credit facilities. The agreement includes certain affirmative and negative covenants, including financial covenants that require the subsidiary to maintain specified financial ratios. As of January 31, 2021 we were compliant with all required covenants. At January 31, 2021, $48 million was outstanding under this facility, with a weighted-average interest rate of 5.69%, which includes the unused facility fee. The outstanding balance is secured by cash and receivables of the subsidiary totaling $157 million. Interest on the facility is payable monthly. We paid $1 million for interest on the secured revolving credit facility during the six months ended January 31, 2021 and $2 million during the six months ended January 31, 2020.
Other Long-Term Obligations
Other long-term obligations were as follows at the dates indicated:
(In millions) | January 31, 2021 |  | July 31, 2020
Long-term income tax liabilities | $ | 26 |  |  | $ | 10 |
Total dividend payable | 11 |  |  | 12 |
Long-term deferred revenue | 7 |  |  | 13 |
Other | 11 |  |  | 17 |
Total long-term obligations | 55 |  |  | 52 |
Less current portion (included in other current liabilities) | (6) |  |  | (10) |
Long-term obligations due after one year | $ | 49 |  |  | $ | 42 |
Unconditional Purchase Obligations
We describe our purchase obligations in Note 8 to the financial statements in Part II, Item 8 of our Annual Report on Form 10-K for the fiscal year ended July 31, 2020. In December 2020 we acquired Credit Karma and assumed certain non-cancellable contractual commitments totaling approximately $318 million as of January 31, 2021. These commitments primarily relate to cloud hosting services. There were no other significant changes in our purchase obligations during the six months ended January 31, 2021.

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