Intuit Financial Statement

Table A

INTUIT INC.

GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share data)

(Unaudited)


	Three Mos. Ended			Twelve Mos. Ended
	July 31,			July 31,
	1999	2000		1999		2000

Net revenue	$168,329	$162,259		$940,435		$1,093,825
Costs and expenses:
Cost of goods sold:
Product	54,430	57,347		217,463		282,385
Amortization of purchased
software and other	2,189	1,762		7,775		8,798
Customer service &
technical support	33,588	25,996		135,172		139,550
Selling & marketing	47,381	48,179		222,450		264,367
Research & development	39,091	42,554		143,437		169,083
General & administrative	25,537	18,899		84,655		83,745
Charge for purchased research
and development	--	--		--		1,312
Acquisition related costs, including
amortization of goodwill and
purchased intangibles	30,095	35,101		92,917		153,929
Acquisition related costs – amortization
of deferred compensation	--	1,137		--		4,019
Reorganization costs	--	--		2,000		3,500

Total costs & expenses	232,311	230,975		905,869		1,110,688

Income (loss) from operations	(63,982)		(68,716)		34,566	(16,863)

Interest and other income and
expense, net	5,610	18,462		18,252		48,443
Gains from marketable securities and
other investments, net	510,527	79,034			579,211		481,130
Income before income taxes	452,155	28,780		632,029		512,710
Income tax provision	189,257	11,567		245,550		207,184
Minority interest	(85)		68		(85)		(135)

Net income	$ 262,983	$ 17,145		$ 386,564		$ 305,661

Table A (1 of 2)

Table A

INTUIT INC.

GAAP CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Mos. Ended		Twelve Mos. Ended
	July 31,		July 31, ,,,
	1999	2000	1999	2000


Basic net income per share	$ 1.34	$ .08	$ 2.02	$ 1.52

Shares used in per share amounts	195,722	203,721	190,927	200,770



Diluted net income per share	$ 1.29	$ .08	$ 1.93	$ 1.45

Shares used in per share amounts	204,272	211,940	199,816	211,271

Table A (2 of 2)

Table B

INTUIT INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i)

(In thousands, except per share data)

(Unaudited)

	Three Mos. Ended			Twelve Mos. Ended
	July 31,			July 31,
	1999	2000		1999			2000

Net revenue	$168,329	$162,259		$940,435			$1,093,825
Costs and expenses:
Cost of goods sold:
Product	54,430	57,347		217,463			282,385
Customer service &
technical support	33,588	25,996		135,172			139,550
Selling & marketing	47,381	48,179		222,450			264,367
Research & development	39,091	42,554		143,437			169,083
General & administrative	25,537	18,899		84,655			83,745

Total costs & expenses, excluding
acquisition related charges and
reorganization costs	200,027	192,975		803,177			939,130


Income (loss) from operations	(31,698)		(30,716)		137,258		154,695

Interest and other income and
expense, net	5,610	18,462		18,252			48,443

Income (loss) excluding acquisition
related charges, reorganization costs
and gains from marketable securities
and other investments, net	(26,088)	(12,254)			155,510	203,138
Income tax provision (benefit)	(9,392)	(4,166)			55,984	69,067
Minority interest	(85)	68			(85)	(135)

Net income (loss) excluding acquisition
related charges, reorganization costs
and gains from marketable securities
and other investments, net	$ (16,611)	$ (8,156)			$ 99,611	$ 134,206

Table B (1 of 2)

Table B

INTUIT INC.

PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS (i)

(In thousands, except per share data)

(Unaudited)

	Three Mos. Ended		Twelve Mos. Ended
	July 31,		July 31,
	1999	2000	1999			2000


Basic net income (loss) per share, excluding acquisition related charges,
reorganization costs and gains from
marketable securities and other
investments, net	$ (0.08)	$ (0.04)		$ 0.52	$ 0.67

Shares used in per share amounts	195,722	203,721	190,927			200,770


Diluted net income (loss) per share,
excluding acquisition related charges,
reorganization costs and gains
from marketable securities and other
investments, net	$ (0.08)	$ (0.04)		$ 0.50	$ 0.64

Shares used in per share amounts	195,722	203,721	199,816			211,271

This statement of operations information for the three and twelve month periods ended July 31, 2000 and 1999 is for illustrative purposes only and is not prepared in accordance with generally accepted accounting principles. It shows the operating results of the Company, excluding acquisition related charges of $38.0 million and $168.1 million for the three and twelve month periods ended July 31, 2000, respectively, and $32.3 million and $100.7 million for the three and twelve month periods ended July 31, 1999, respectively. The twelve month period ended July 31, 2000 excludes reorganization costs of $3.5 million. The twelve month period ended July 31, 1999 excludes reorganization costs of $2.0 million. The three and twelve month periods ended July 31, 2000 exclude gains from marketable securities and other investments, net, of $79.0 million and $481.1 million, respectively, and the three and twelve month periods ended July 31, 1999 exclude gains from marketable securities and other investments, net, of $510.5 million and $579.2 million, respectively. Assuming no additional acquisitions and no impairment of value resulting in an acceleration of amortization, pre-tax amortization of acquisition related charges will be approximately $148.1 million, $142.8 million and $118.7 million for the years ending July 31, 2001 through 2003, respectively.

Table B (2 of 2)

Table C

INTUIT INC.

STATEMENT OF DIFFERENCES BETWEEN GAAP AND PRO FORMA

CONDENSED CONSOLIDATED RESULTS OF OPERATIONS (ii)

(In thousands, except per share data)

(Unaudited)

	Three Mos. Ended				Twelve Mos. Ended
	July 31,				July 31,
	1999	2000			1999		2000
Income before income taxes,
and minority interest as reported	$452,155	$28,780			$632,029		$512,710
Reorganization costs	--	--			2,000		3,500
Gains from marketable securities	(510,527)		(79,034)			(579,211)		(481,130)
Acquisition related charges including
amortization of purchased software,
goodwill, purchased intangibles and
acquisition related deferred
compensation	32,284	38,000		100,692			168,058
Income (loss) excluding acquisition
related charges, reorganization costs
and gains from marketable securities
and other investments, net	(26,088)	(12,254)		155,510			203,138
Income tax provision	(9,392)	(4,166)		55,984			69,067
Minority interest	(85)	68				(85)	(135)
Net income excluding acquisition
related charges, reorganization costs
and gains from marketable securities
and other investments, net	$ (16,611)	$ (8,156)				$ 99,611	$ 134,206

Basic net income (loss) per share, excluding
acquisition related charges, reorganization
costs and gains from marketable securities
and other investments, net	$ (0.08)	$ (0.04)				$ 0.52	$ 0.67

Shares used in per share amounts	195,722	203,721			190,927		200,770


Diluted net income (loss) per share,
excluding acquisition related charges,
reorganization costs and gains
from marketable securities
and other investments, net	$ (0.08)	$ (0.04)			$ 0.50		$ 0.64
Shares used in per share amounts	195,722	203,721			199,816		211,271

(ii) This statement illustrates the impact of acquisition related charges, reorganization costs and the impact of gains from marketable securities and other investments, net on reported net income. These items are included in the GAAP results of operations (Table A) and are excluded from pro forma results of operations (Table B).

Table C

Table D

INTUIT INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)

(Unaudited)

	July 31,	July 31,
	1999	2000
ASSETS:

Current assets:
Cash, cash equivalents and
short-term investments	$ 859,355	$1,467,173
Customer deposits	145,836	181,678
Marketable securities	431,462	225,878
Accounts receivable, net	63,677	67,420
Mortgage loans	84,983	60,330
Deferred income taxes	64,925	95,777
Inventories	4,931	1,935
Prepaid expenses and other current assets	67,716	35,067
Total current assets	1,722,885	2,135,258

Property and equipment, net	119,220	167,707
Intangibles, net	98,049	79,988
Goodwill, net	383,102	358,890
Other assets	7,897	12,914
Restricted investments	36,028	--
Investments	45,704	31,160
Long-term deferred income taxes	76,190	104,396
Total assets	$2,489,075	$2,890,313

LIABILITIES AND STOCKHOLDERS’ EQUITY:
Current liabilities:
Line of credit	$ 29,896	$ 2,580
Accounts payable	66,436	79,145
Accrued compensation and related liabilities	39,996	49,303
Payroll tax obligations	131,148	177,002
Escrow liabilities	14,857	5,899
Drafts payable	49,169	23,598
Deferred revenue	65,994	107,578
Income taxes payable	143,181	110,743
Deferred income taxes	136,694	53,934
Short-term note payable	--	34,286
Other accrued liabilities	201,872	162,769
Total current liabilities	879,243	806,837

Long-term obligations	36,614	538
Long-term deferred income taxes	11,615	11,411
Minority interest	215	238
Stockholders’ equity	1,561,388	2,071,289
Total liabilities and stockholders’ equity	$2,489,075	$2,890,313

Table D