INTUIntuit

These proceedings also included individual demands for arbitration that were filed beginning in October 2019. As of January 31, 2023, we settled all of these arbitration claims, without any admission of wrongdoing, for an amount that was not material. In June 2021, we received a demand and draft complaint from the Federal Trade Commission (FTC) and certain state attorneys general relating to the ongoing inquiries described above. On March 29, 2022, the FTC filed an action in federal court seeking a temporary restraining order and a preliminary injunction enjoining certain Intuit business practices pending resolution of the FTC’s administrative complaint seeking to permanently enjoin certain Intuit business practices (the FTC Actions). On April 22, 2022, the Northern District of California denied the FTC’s requests for a temporary restraining order and a preliminary injunction. Beginning on March 27, 2023, a final hearing on the administrative action was held before an administrative law judge (ALJ) at the FTC and, on August 29, 2023, the FTC’s FTC's ALJ issued a decision in favor of the FTC and adverse to Intuit. On January 19, 2024, the FTC Commissioners affirmed the ALJ’s ALJ's decision and issued a final order that requires required us to adhere to certain marketing practices and does did not contain any monetary penalties. On January 21, 2024, we filed a petition for review with the United States Court of Appeals for the Fifth Circuit and this appeal is pending. Circuit. The FTC’s FTC's order became effective on March 23, 2024, and is now pending review by 2024. On March 20, 2026, the Court of Appeals. We intend Appeals for the Fifth Circuit issued a decision that vacated the FTC's order and remanded the case to continue to defend our position on the merits of this case. However, the defense and resolution of this matter could involve significant costs. FTC. The state attorneys general did not join deadline for the FTC Actions, and, on May 4, 2022, to appeal the Fifth Circuit’s decision has now passed. On August 31, 2026, we entered into filed a settlement agreement with motion in the attorneys general U.S. District Court for the Northern District of California seeking the dismissal of the 50 states and the District of Columbia, admitting no wrongdoing, that resolved the states’ inquiry, as well as actions remaining lawsuit brought by the Los Angeles City Attorney FTC as moot. The FTC has agreed not to oppose this motion, and we are awaiting a decision from the Santa Clara County (California) Counsel. As part of this agreement, we agreed to pay $141 million and made certain commitments regarding our advertising and marketing practices. We recorded this as a one-time charge in the quarter ended April 30, 2022, and paid the full amount to the fund administrator in the quarter ended January 31, 2023. court.

On Effective August 1, 2024, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker (CODM) allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain technology marketing, communications, and customer success functions in our Global Business Solutions, Consumer, and ProTax segments Solutions segment that support and benefit our overall platform and are managed at the corporate that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For changes, for the twelve months ended July 31, 2024 2025 and 2023, 2024, we reclassified $1.4 billion expenses totaling $9 million and $1.3 billion $16 million from Global Business Solutions, $573 Solutions and $606 million and $475 $585 million from Consumer, and $33 million and $34 million from ProTax Consumer to other corporate expenses, respectively. See respectively, to conform to the current presentation. The segment changes primarily impacted Note 6, “Goodwill and Acquired Intangible Assets,” Note 14, “Segment Information,” for more information. and Note 15, “Restructuring.” The recast of prior period information had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flow statements.

On Effective August 1, 2024, 2025, we combined our Consumer, Credit Karma, and ProTax businesses into a single Consumer segment in order to better serve the diverse financial needs of our customers as one consumer platform. Our chief operating decision maker allocates resources and assesses segment performance using regularly provided segment revenue and segment operating income information under this updated segment structure. To align results under this segment change, certain selling and marketing, product development, and general and administrative expenses for Credit Karma that were managed at the segment level are now managed at the platform level and are included in other corporate expenses rather than in segment expenses. Also on August 1, 2025, we reorganized certain technology marketing, communications, and customer success functions in our Global Business Solutions, Consumer, and ProTax segments Solutions segment that support and benefit our overall platform and are managed at the corporate that level rather than at the segment level. Additionally, certain data science and analytics teams that were managed at the platform level are now managed at the segment level. We have recast certain previously reported amounts to conform to these segment changes. As a result of these reorganizations, costs associated with these functions are no longer included in segment operating income and are now included in other corporate expenses. For changes, for the twelve months ended July 31, 2024 2025 and 2023, 2024, we reclassified $1.4 billion expenses totaling $9 million and $1.3 billion $16 million from Global Business Solutions, $573 Solutions and $606 million and $475 $585 million from Consumer, and $33 million and $34 million from ProTax Consumer to other corporate expenses, respectively, to conform to the current presentation. The recast of prior period information had no impact on our consolidated balance sheets, consolidated income statements, or consolidated cash flow statements. See Note 14 to the consolidated financial statements in Item 8 of this Annual Report for more information.

Our customers rely on the accuracy of our offerings. All of our tax products and many of our non-tax products have rigid development timetables that increase the risk of errors in our products and the risk of launch delays. Our tax preparation software product development cycle is particularly challenging due to the need to incorporate unpredictable, ambiguous, and potentially late tax law and tax form changes each year and because our customers expect high levels of accuracy and a timely launch of these products to prepare and file their taxes by the tax filing deadline. Due to the complexity of our products and the condensed development cycles under which we operate, our products have in the past, and may contain in the future unexpected errors that could interfere with the operation of the software or result in incorrect calculations. The complexity of the tax laws on which our products are based may also make it difficult for us to consistently deliver offerings that contain the features, functionality and level of accuracy that our customers expect. When we encounter problems, we may be required to modify our code, work with state tax administrators to communicate with affected customers, assist customers with amendments, distribute patches to customers who have already purchased the product and recall or repackage existing product inventory in our distribution channels. If we encounter development challenges or discover errors in our products either late in our development cycle or after release, it may cause us to delay our product launch date or suspend product availability until such issues can be fixed. Any major defects, launch delays or product suspensions may lead to loss of customers and revenue, negative publicity, customer and employee dissatisfaction, reduced retailer shelf space and promotions, and increased operating expenses, such as inventory replacement costs, legal fees or other payments, including those resulting from our accuracy guarantee in our tax preparation products. For example, an error in our tax products could cause a compliance error for taxpayers, including the over or underpayment of their federal or state tax liability. While our accuracy guarantee commits us to reimburse penalties and interest paid by customers due solely to calculation errors in our tax preparation products, such errors may result in additional burdens on third parties that we may need to address or that may cause us to suspend the availability of our products until such errors are addressed. This could also affect our reputation, the willingness of customers to use our products, and our financial results. Further, as we develop our platform connect customers to connect people to experts, such as connecting TurboTax customers with live tax experts through and bookkeepers on our TurboTax Live offering, or connecting QuickBooks customers with bookkeepers through our QuickBooks Live offering, platform, we face the risk that these experts may provide advice that is erroneous, ineffective or otherwise unsuitable. Any such deficiency in the advice given by these experts may cause harm to our customers, a loss of customer confidence in our offerings or harm to our reputation or financial results. Moreover, as we continue to incorporate emerging technologies, like AI, into our offerings, they may not function as designed