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Segment Information
 6 Months Ended
Jan. 31, 2021
Segment Reporting [Abstract]  
Segment Information
12. Segment Information
We have defined our four reportable segments, described below, based on factors such as how we manage our operations and how our chief operating decision maker views results. We define the chief operating decision maker as our Chief Executive Officer and our Chief Financial Officer. Our chief operating decision maker organizes and manages our business primarily on the basis of product and service offerings.
In August 2020 we reorganized certain technology and customer success functions that support and benefit our overall platform. Additionally, certain legal, facility and employee service costs are now managed at the corporate level. As a result, these costs are no longer included in segment operating income and are now included in other corporate expenses. For the three and six months ended January 31, 2020, we reclassified $45 million and $88 million from Small Business & Self-Employed, $28 million and $53 million from Consumer, and $4 million and $7 million from ProConnect to other corporate
expenses. In August 2020, we also renamed our Strategic Partner segment as the ProConnect segment. This segment continues to serve professional accountants.
In December 2020 we acquired Credit Karma in a business combination and it operates as a separate reportable segment. We have included the results of operations of Credit Karma in our condensed consolidated statements of operations from the date of acquisition. See Note 5, "Business Combinations," for more information. Segment operating income for Credit Karma includes all direct expenses, which is different from our other reportable segments where we do not fully allocate corporate expenses.
 
Small Business & Self-Employed: This segment serves small businesses and the self-employed around the world, and the accounting professionals who assist and advise them. Our offerings include QuickBooks financial and business management online services and desktop software, payroll solutions, merchant payment processing solutions, and financing for small businesses.
Consumer: This segment serves consumers and includes do-it-yourself and assisted TurboTax income tax preparation products and services sold in the U.S. and Canada. Our Mint offering serves consumers and helps them understand and improve their financial lives by offering a view of their financial health.
ProConnect: This segment serves professional accountants in the U.S. and Canada, who are essential to both small business success and tax preparation and filing. Our professional tax offerings include Lacerte, ProSeries, ProFile, and ProConnect Tax Online.
 Credit Karma: This segment serves consumers with a personal finance platform that provides personalized recommendations of credit card, home, auto and personal loan, and insurance products; online savings and checking accounts; and access to their credit scores and reports, credit and identity monitoring, credit report dispute, and data-driven resources.
All of our segments operate primarily in the United States and sell primarily to customers in the United States. International total net revenue was approximately 6% for the three and six months ended January 31, 2021 and approximately 5% for the three and six months ended January 31, 2020.
For our Small Business & Self-Employed, Consumer, and ProConnect reportable segments, we include expenses such as corporate selling and marketing, product development, and general and administrative, which are not allocated to specific segments, in unallocated corporate items as part of other corporate expenses. For Credit Karma, segment expenses include all direct expenses related to selling and marketing, product development, and general and administrative. Unallocated corporate items for all segments include share-based compensation, amortization of acquired technology, amortization of other acquired intangible assets, and goodwill and intangible asset impairment charges.
The accounting policies of our reportable segments are the same as those described in the summary of significant accounting policies in Note 1 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 and in Note 1, "Description of Business and Summary of Significant Accounting Policies – Significant Accounting Policies" in this Quarterly Report on Form 10-Q. Except for goodwill and purchased intangible assets, we do not generally track assets by reportable segment and, consequently, we do not disclose total assets by reportable segment.
The following table shows our financial results by reportable segment for the periods indicated. Segment results for fiscal 2020 have been reclassified to conform to the fiscal 2021 segment presentation, as described earlier in this footnote.
 Three Months EndedSix Months Ended
(In millions)January 31, 2021January 31, 2020January 31, 2021January 31, 2020
Net revenue:    
Small Business & Self-Employed$1,078 $973 $2,259 $2,019 
Consumer147 499 266 599 
ProConnect207 224 230 243 
Credit Karma144 — 144 — 
Total net revenue$1,576 $1,696 $2,899 $2,861 
Operating income (loss):  
Small Business & Self-Employed$592 $447 $1,359 $1,040 
Consumer (155)191 (151)171 
ProConnect172 186 162 168 
Credit Karma38 — 38 — 
Total segment operating income647 824 1,408 1,379 
Unallocated corporate items:  
Share-based compensation expense(180)(107)(291)(218)
Other corporate expenses(442)(440)(874)(866)
Amortization of acquired technology(14)(6)(21)(12)
Amortization of other acquired intangible assets(36)(1)(38)(3)
Total unallocated corporate items(672)(554)(1,224)(1,099)
Total operating income (loss)$(25)$270 $184 $280 
Revenue classified by significant product and service offerings was as follows:
 Three Months EndedSix Months Ended
(In millions)January 31, 2021January 31, 2020January 31, 2021January 31, 2020
Net revenue:  
QuickBooks Online Accounting$404 $330 $796 $636 
Online Services240 200 469 395 
Total Online Ecosystem644 530 1,265 1,031 
QuickBooks Desktop Accounting160 165 401 404 
Desktop Services and Supplies274 278 593 584 
Total Desktop Ecosystem434 443 994 988 
Small Business & Self-Employed1,078 973 2,259 2,019 
Consumer147 499 266 599 
ProConnect207 224 230 243 
Credit Karma144 — 144 — 
Total net revenue$1,576 $1,696 $2,899 $2,861 
Revenue from our QuickBooks Desktop packaged software products was $25 million and $45 million for the three and six months ended January 31, 2021, respectively, and $34 million and $61 million for the three and six months ended January 31, 2020, respectively. These amounts are included in the QuickBooks Desktop Accounting revenue presented in the table above.
Credit Karma revenue is primarily generated from cost-per-action transactions which are related to credit card issuances and personal loan funding.