Intuit (INTU) 10-K risk factor changes: FY2023 vs FY2022

[Tables of Contents](#i158eb573169a472c8d452410afcb9cd2_7)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

FORM 10-K

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ☑ | | | | | | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | |

For the fiscal year ended July 31, 2023

OR

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ☐ | | | | | | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | |

For the transition period from to

Commission File Number 0-21180


INTUIT INC.

*(Exact name of registrant as specified in its charter)*

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Delaware | | | | | | 77-0034661 | | |

| *(State or other jurisdiction of incorporation or organization)* | | | | | | *(IRS Employer Identification No.)* | | |

2700 Coast Avenue, Mountain View, CA 94043

*(Address of principal executive offices, including zip code)*

(650) 944-6000

*(Registrant’s telephone number, including area code)*

Securities registered pursuant to Section 12(b) of the Act:

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Title of each class | | | | | | Trading Symbol | | | | | | Name of each exchange on which registered | | |

| Common Stock, $0.01 par value | | | | | | INTU | | | | | | Nasdaq Global Select Market | | |

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

[Tables of](#i355069ae3df44bdb90bff538d4bca755_7) [Contents](#i355069ae3df44bdb90bff538d4bca755_7)

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

______________________________________

FORM 10-K

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ☑ | | | | | | Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | |

For the fiscal year ended July 31, 2022

OR

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| ☐ | | | | | | Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 | | |

For the transition period from to

Commission File Number 0-21180


INTUIT INC.

*(Exact name of registrant as specified in its charter)*

| | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Delaware | | | | | | 77-0034661 | | |

| *(State or other jurisdiction of incorporation or organization)* | | | | | | *(IRS Employer Identification No.)* | | |

2700 Coast Avenue, Mountain View, CA 94043

*(Address of principal executive offices, including zip code)*

(650) 944-6000

*(Registrant’s telephone number, including area code)*

Securities registered pursuant to Section 12(b) of the Act:

| | | | | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |

| Title of each class | | | | | | Trading Symbol | | | | | | Name of each exchange on which registered | | |

| Common Stock, $0.01 par value | | | | | | INTU | | | | | | Nasdaq Global Select Market | | |

Securities registered pursuant to Section 12(g) of the Act: None.

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.

Yes ☑ No ☐

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act.

Yes ☐ No ☑

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports); and (2) has been subject to such filing requirements for the past 90 days.

Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).

Yes ☑ No ☐

Assumptions and estimates about future values and remaining useful lives are complex and often subjective.

They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in our business strategy and our internal forecasts.

For example, if our future operating results do not meet current forecasts or if we experience a sustained decline in our market capitalization that is determined to be indicative of a reduction in fair value of one or more of our reporting units, we may be required to record future impairment charges for goodwill and acquired intangible assets.

Impairment charges could materially decrease our future net income and result in lower asset values on our consolidated balance sheets.

During the fourth quarters of fiscal 2022, fiscal 2021, and fiscal 2020, we performed our annual goodwill impairment tests.

Using the methodology described in *“Description of Business and Summary of Significant Accounting Policies – Goodwill, Acquired Intangible Assets and Other Long-Lived Assets,”* in Note 1 to the consolidated financial statements in Item 8 of this Annual Report, we determined that the estimated fair values of all of our reporting units substantially exceeded their carrying values and that they were not impaired.

*Legal Contingencies*

We are subject to certain legal proceedings, as well as demands, claims and threatened litigation that arise in the normal course of our business.

We review the status of each significant matter quarterly and assess our potential financial exposure.

If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we record a liability and an expense for the estimated loss.

If we determine that a loss is possible and the range of the loss can be reasonably determined, then we disclose the range of the possible loss.

Significant judgment is required in the determination of whether a potential loss is probable, reasonably possible, or remote as well as in the determination of whether a potential exposure is reasonably estimable.

Our accruals are based on the best information available at the time.

As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates.

Potential legal liabilities and the revision of estimates of potential legal liabilities could have a material impact on our financial position and results of operations.

See Note 14 to the consolidated financial statements in Item 8 of this Annual Report for more information.

*Accounting for Income Taxes – Estimates of Deferred Taxes, Valuation Allowances, and Uncertain Tax Positions*

We estimate our income taxes based on the various jurisdictions where we conduct business.

Significant judgment is required in determining our worldwide income tax provision.

The calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax rules and the potential for future adjustment of our uncertain tax positions by the United States Internal Revenue Service or other taxing jurisdictions.

We estimate our current tax liability and assess temporary differences that result from differing treatments of certain items for tax and accounting purposes.

These differences result in deferred tax assets and liabilities, which we show on our consolidated balance sheet.

We must then assess the likelihood that our deferred tax assets will be realized.

To the extent we believe that realization is not likely, we establish a valuation allowance.

When we establish a valuation allowance or increase this allowance in an accounting period, we record a corresponding tax expense in our consolidated statement of operations.

We record a valuation allowance to reflect uncertainties about whether we will be able to utilize our deferred tax assets before they expire.

We assess the need for an adjustment to the valuation allowance on a quarterly basis.

The assessment is based on our estimates of future sources of taxable income in the jurisdictions in which we operate and the periods over which our deferred tax assets will be realizable.

While we have considered future taxable income in assessing the need for a valuation allowance for the periods presented, we could in the future be required to increase the valuation allowance to take into account additional deferred tax assets that we may be unable to realize.

An increase in the valuation allowance could have an adverse impact on our income tax provision and net income in the period in which we record the change.

We recognize and measure benefits for uncertain tax positions using a two-step approach.

The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained upon audit, including resolution of any related appeals or litigation processes.

For tax positions that are more likely than not of being sustained upon audit, the second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon settlement.

Significant judgment is required to evaluate uncertain tax positions.

We evaluate our uncertain tax positions on a quarterly basis.

Our evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues.

Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our income tax expense in the period in which we make the change, which could have a material impact on our effective tax rate and operating results.

See Note 11 to the consolidated financial statements in Item 8 of this Annual Report for more information.

| | | | | | | | | | | | |

| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |