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Page 1: Cautions About Forward-Looking Statements
Page 2: Cautions About Forward-Looking Statements

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Cautions About Forward-Looking StatementsThis presentation includes "forward-looking statements" which are subject to safe harbors created under the U.S. federal securities laws. All statements included in this presentation that address activities, events or developments that Intuit expects, believes or anticipates will or may occur in the future are forward looking statements, including: our expected market and growth opportunities and strategies to grow our business; our expected recurring revenue; our expected future financial results for fiscal 2007 and beyond; and future market trends. Because these forward-looking statements involve risks and uncertainties, there are important factors that could cause our actual results to differ materially from the expectations expressed in the forward-looking statements. These factors include, without limitation, the following: product introductions and price competition from our competitors can have unpredictable negative effects on our revenue, profitability and market position; governmental encroachment in our tax businesses or other governmental activities regulating the filing of tax returns could negatively effect our operating results and market position; we may not be able to successfully introduce new products and services to meet our growth and profitability objectives, and current and future products and services may not adequately address customer needs and may not achieve broad market acceptance, which could harm our operating results and financial condition; any failure to maintain reliable and responsive service levels for our offerings could cause us to lose customers and negatively impact our revenues and profitability; any significant product quality problems or delays in our products could harm our revenue, earnings and reputation; our participation in the Free File Alliance may result in lost revenue opportunities and cannibalization of our traditional paid franchise; any failure to properly use and protect personal customer information could harm our revenue, earnings and reputation; our acquisition activities may be disruptive to Intuit and may not result in expected benefits; our use of significant amounts of debt to finance acquisitions or other activities could harm our financial condition and results of operations; our revenue and earnings are highly seasonal and the timing of our revenue between quarters is difficult to predict, which may cause significant quarterly fluctuations in our financial results; predicting tax-related revenues is challenging due to the heavy concentration of activity in a short time period; we have implemented, and are continuing to upgrade, new information systems and any problems with these new systems could interfere with our ability to ship and deliver products and gather information to effectively manage our business; our financial position may not make repurchasing shares advisable or we may issue additional shares in an acquisition causing our number of outstanding shares to grow; and litigation involving intellectual property, antitrust, shareholder and other matters may increase our costs.. More details about these and other risks that may impact our business are included in our Form 10-K for fiscal 2006 and in our other SEC filings, available through our website at www.intuit.com. Forward-looking statements represent the judgment of the management of Intuit as of the date of this presentation, and we do not undertake any duty to update any forward-looking statement or other information in this presentation.

Page 3: Cautions About Forward-Looking Statements

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Q3 and Year-to-Date Financial Highlights

*These are non-GAAP financial measures. See attached reconciliation of non-GAAP measures to GAAP.

($ Millions except EPS) FY06 % Chg Q307 % Chg FY07 % Chg

Revenue $2,342 15% $1,154 21% $2,685 - $2,700 15%

Operating Income(Non-GAAP)*

$654 18% $623 24% $740 - $751 13% - 15%

Operating Margin(Non-GAAP)*

28% +62 bps 54% +116 bps 27% - 28% NA

Diluted EPS(Non-GAAP)*

$1.21 20% $1.13 27% $1.38 - $1.40 14% - 16%

Guidance

• Strong Q3 for Tax and Small Business

• Full year expected to be another year of double-digit growth for revenue and earnings.

Page 4: Cautions About Forward-Looking Statements

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Consumer Tax Highlights through Q307

Consumer Tax revenue up 15% year-to-date- Total units up 6%- Web units up 17%

Competed effectively across entire market segment- Free Edition for new filers with simplest needs- Have additional functionality for filers with more

complicated returns

Page 5: Cautions About Forward-Looking Statements

5

Small Business Highlights through Q307

QuickBooks:

Revenue growth of 10% year-to-date

Software unit growth of 8%- 25% growth for Premier- 36% growth for Online Edition

QuickBooks 2007 rated 5/5 stars by PC Magazine: “strongly-recommended upgrade”

Payroll and Payments:

Revenue growth of 14% year-to-date- would be 16% w/o asset sale to ADP

Payments customers growing 23% over year-ago-period with rising transaction volume per customer

Payroll focusing on do-it-yourself and do-it-with-assistance customers

Page 6: Cautions About Forward-Looking Statements

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Revenue Growth and Margin Leverage

FY01 FY02 FY03 FY04 FY05 FY060.0

0.5

1.0

1.5

2.0

$2.5B

0

5

10

15

20

25

30%

Revenue(CAGR 16%)

Operating Margin*Operating

Margin*

*This is a non-GAAP financial measure. See attached reconciliation of non-GAAP measures to GAAP.

Reven

ue

Page 7: Cautions About Forward-Looking Statements

7

Predictable or Recurring Revenue

Subscriptions Payroll Payments QuickBooks Online QuickBooks subscriptions Financial Institutions revenue

Tax Renewals Consumer Tax Professional Tax

Upgrades & Consumables QuickBooks Quicken Financial Supplies

Intuit Revenue0

20

40

60

80

100%

Predictable or

Recurring Revenue

Other Revenue

Page 8: Cautions About Forward-Looking Statements

8

Delivering “right for me” products and services that solve important problems and make it dramatically

easier & better value than other alternatives

Self Directed Self Directed with Assistance

Can’t BeBothered

Intuit’s Core Competency… Customer Driven InnovationIntuit’s Core Competency… Customer Driven Innovation

Making Existing Solutions BetterMaking Existing Solutions Better

Creating Innovative New OfferingsCreating Innovative New Offerings

Convert non-consumption or disrupt higher priced alternatives

Delivering wow experiences through an end to end delivery system

Be in growth businesses, high profit businesses, and attractive new

markets with large unmet / underserved needs we can solve well

…To build large user bases and durable advantage that translates into sustained revenue and profit growth

Intuit’s Strategy for Growth

Page 9: Cautions About Forward-Looking Statements

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Healthcare

Tax

Tax

Financial Institutions

Intuit’s Markets and Opportunities

Small Business:

QuickBooks

plus

Payroll & Payments

Small Business:

QuickBooks

plus

Payroll & Payments

Page 10: Cautions About Forward-Looking Statements

10

Market Overview

Estimated 26M small-medium businesses (SMB’s) in the US

22M Home and My Business

3.2M Main Street

0.6M Mid-Market

6M new businesses formed each year (net 0.3-0.5M)

Small Business Market

Source: Intuit estimates

Financial Management Methods

Competitors

Intuit Software

(QuickBooks& Quicken)

Non-Consumers

(Manual,Spreadsheet,

Online Banking)

SMB's

25.8M

0%

20%

40%

60%

80%

100%

Page 11: Cautions About Forward-Looking Statements

11

OnlineBanking

PeachTree

Quicken

Accountant

Spreadsheet

QuickBooks

0% 20% 40%

Small Business Customer Segments

Accountant

OnlineBanking

Quicken

QuickBooks

Spreadsheet

Manual

0% 20% 40%

GreatPlains

MAS90

PeachTree

Excel

Custom

QuickBooks

0% 20% 40%

Home & My Business (22

million SMB’s)

Main Street(3.2 million SMB’s)

Mid-Market(0.6 million SMB’s)

Non-Consumption Intuit Products Direct Competitors Higher-Priced AlternativesOther methods: Home & My Business 19% (MS Money, MS Word, various software, other); Main Street 21% (manual, MS Word, various software, other); Mid-Market 31% (vertical solutions, horizontal solutions, MS products, other). Source: Intuit estimates.

Page 12: Cautions About Forward-Looking Statements

12

Small Business Payroll Market: Big Opportunity

-40%

-20%

0%

20%

40%

60%

80%9.6M

Firms < 50 Employees

2.0M

4.1M

2.6M

HigherPriced

AlternativeMethods

SoftwareCompetitors

Intuit – 1M

NonConsumption

Source: Intuit estimates

Self-Directed(SD)

Self-Directed with Assistance

(SDA)

Can’t Be Bothered(CBB)

CustomerSegments

Estimated #

Of Firms

3.0M

3.5M

3.1M

6.6MFirms *

* 75% are non-QB

Page 13: Cautions About Forward-Looking Statements

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$-

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

$7,000

$8,000

$9,000

$10,000

1990 1992 1994 1996 1998 2000 2002

2004 2006 2008 2010

Favorable Payments Market Trends

EstimatesActual

E-check

Stored Value

Debit Cards

Credit Cards

Cash

Bank Trans.

Check

Source: The Nilson Report, 2004

CAGRs

Cons. ACH

Stored Value

Debit Card

Credit Card

Checks

90-04

25%

50%

32%

17%

6%

04-10

130%

21%

18%

9%

-5%

Page 14: Cautions About Forward-Looking Statements

14

Payroll & Payments Opportunity

Payroll Payments Payroll Payments Payroll Payments0%

20%

40%

60%

80%

100%

Home & My Business

Main Street Mid-Market

Intuit Payroll/Payments Users

Have Payroll/Payments Needs

Source: Intuit estimates.

Estimated penetration of current QuickBooks customer base: Payroll 40%, Payments 10%

Page 15: Cautions About Forward-Looking Statements

15

ProfessionalPrepared

Tax Store

Software -Other

Software -TurboTax

Manual

134M Returns $19B Revenue

0%

20%

40%

60%

80%

100%

Market Overview

~134M individual federal 2005 tax returns filed in the US

~1% average annual growth in returns filed

Estimated 5M new filers enter market, 3.5M leave each year

Consumer Tax Prep Market

Returns by Prep Method

Source: IRS data and Intuit estimates

Page 16: Cautions About Forward-Looking Statements

16

Consumer Tax Prep Market Trends

Manual & TeleFile

Software & Web

Tax Store

Pro Prep

FY01 FY02 FY03 FY04 FY05 FY060M

50M

100M

150M

1%

5 YR CAGR

(14% )

10%

1%

3%

*Note: Tax Store & Pro Prep per survey. Software & Web reflects Intuit’s average revenue per paid customer.Source: IRS data and Intuit estimates

Tax Returns Filed

-39

46

16

39

$0

$55

$160

$230

Customer Price* Net Promoter

Page 17: Cautions About Forward-Looking Statements

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Small Businesses

Online Banking: Attractive Growth Market

00 02 04 06 08 100

25

50

75

100

125M

(Forecast)

Consumers (Households)

Online banking is growing, yet penetration remains low, especially at the smaller financial institutions Digital Insight

serves

21M

5M

18M

8M

2004 2006

26M 26M

0%

20%

40%

60%

80%

100%

Online Banking

Users(CAGR: 26%)

Non-Consumption

Online Banking

Households

Online Households

All Households

Page 18: Cautions About Forward-Looking Statements

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Unmet Needs: Small Businesses

Primary Financial Mgmt Method Primary Solution – Small & Simple

Online Banking ManualSoftware

Managing Payroll

97%

8

29

11

11

3

7

14

38

17

25

36

38

38

24

0 20 40 60 80 100

% of small and simple firms

Tracking expenses

Checking unpaid payments you owe

Issuing invoices

Checking unpaid pymts owed to you

Making payments

Recording sales

89%

92%

96%

92%

92%

92%

Combining online banking and financial management software to address unmet needs of small businesses is the biggest

opportunity

3.2M Main

Street Firms

22M Small & Simple Firms

Page 19: Cautions About Forward-Looking Statements

19

Online Banking Bill Pay

19%

30%

55%

5%

15%

30%

0%

20%

40%

60%

80%

100%

Consumer End-User Penetration (%)

Digital Insight

US Average

Leading Banks

Unmet Needs: Consumers

Limitations of Today’s Offerings

Many solutions allow consumers only to perform basic tasks – check balances & view transactions

Generally not designed for ease of use

Typically “backward-looking”

Significant opportunity to accelerate end-user adoption of consumer online banking solutions

Page 20: Cautions About Forward-Looking Statements

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Access to large user base (7MM SBs & 12M consumers)

Best-in-class software applications… content

Leading consumer and small business brands

Expertise in financial management

Extensive consumer & small business marketing expertise

Access to large user base (38M potential end-users)

Leading on-demand platform… distribution

Leading online banking brand with financial institutions

Expertise in online banking and bill payment

Strong distribution & reach with banks, core processors

Intuit & Digital Insight Already Leaders

Page 21: Cautions About Forward-Looking Statements

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Strategy and Execution for Growth

Robust business model– Sustained double-digit revenue growth– Operating margin leverage– Increased cash generation

Lots of growth opportunities– In existing businesses– Create new businesses

Disciplined approach to managing capital– M&A– Returning excess cash to shareholders

Page 22: Cautions About Forward-Looking Statements

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About Non-GAAP Financial MeasuresThe accompanying presentation contains non-GAAP financial measures. The table on page 23 reconciles the non-GAAP financial measures in the accompanying presentation to the most directly comparable financial measures prepared in accordance with Generally Accepted Accounting Principles (GAAP). These non-GAAP financial measures include non-GAAP operating income (loss) and related operating margin as a percentage of revenue, non-GAAP net income (loss) and non-GAAP net income (loss) per share.

Non-GAAP financial measures should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with GAAP. These non-GAAP financial measures do not reflect a comprehensive system of accounting, differ from GAAP measures with the same names and may differ from non-GAAP financial measures with the same or similar names that are used by other companies.

We believe that these non-GAAP financial measures provide meaningful supplemental information regarding Intuit’s operating results primarily because they exclude amounts that we do not consider part of ongoing operating results when assessing the performance of the organization, our operating segments or our senior management. Segment managers are not held accountable for share-based compensation expenses, acquisition-related costs, or the other excluded items that may impact their business units’ operating income (loss) and, accordingly, we exclude these amounts from our measures of segment performance. We also exclude these amounts from our budget and planning process. We believe that our non-GAAP financial measures also facilitate the comparison of results for current periods and guidance for future periods with results for past periods. We exclude the following items from our non-GAAP financial measures:

Share-based compensation expenses. Our non-GAAP financial measures exclude share-based compensation expenses, which consist of expenses for stock options, restricted stock, restricted stock units and purchases of common stock under our Employee Stock Purchase Plan. Segment managers are not held accountable for share-based compensation expenses impacting their business units’ operating income (loss) and, accordingly, we exclude share-based compensation expenses from our measures of segment performance. While share-based compensation is a significant expense affecting our results of operations, management excludes share-based compensation from our budget and planning process. We exclude share-based compensation expenses from our non-GAAP financial measures for these reasons and the other reasons stated above. We compute weighted average dilutive shares using the method required by SFAS 123(R) for both GAAP and non-GAAP diluted net income per share.

Amortization of purchased intangible assets and acquisition-related charges . In accordance with GAAP, amortization of purchased intangible assets in cost of revenue includes amortization of software and other technology assets related to acquisitions and acquisition-related charges in operating expenses includes amortization of other purchased intangible assets such as customer lists, covenants not to compete and trade names. Acquisition activities are managed on a corporate-wide basis and segment managers are not held accountable for the acquisition-related costs impacting their business units’ operating income (loss). We exclude these amounts from our measures of segment performance and from our budget and planning process. We exclude these items from our non-GAAP financial measures for these reasons, the other reasons stated above and because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories.

Gains and losses on disposals of businesses and assets. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results.

Gains and losses on marketable equity securities and other investments . We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operating results.

Income tax effects of excluded items. Our non-GAAP financial measures exclude the income tax effects of the adjustments described above that relate to the current period as well as adjustments for similar items that relate to prior periods. We exclude the impact of these tax items for the reasons stated above and because management believes that they are not indicative of our ongoing business operations.

Operating results and gains and losses on the sale of discontinued operations . From time to time, we sell or otherwise dispose of selected operations as we adjust our portfolio of businesses to meet our strategic goals. In accordance with GAAP, we segregate the operating results of discontinued operations as well as gains and losses on the sale of these discontinued operations from continuing operations on our GAAP statements of operations but continue to include them in GAAP net income or loss and net income or loss per share. We exclude these amounts from our non-GAAP financial measures for the reasons stated above and because they are unrelated to our ongoing business operations.

Page 23: Cautions About Forward-Looking Statements

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About Non-GAAP Financial MeasuresThe following describes each non-GAAP financial measure, the items excluded from the most directly comparable GAAP measure in arriving at each non-GAAP financial measure, and the reasons management uses each measure and excludes the specified amounts in arriving at each non-GAAP financial measure.

(Operating income (loss) and related operating margin as a percentage of revenue. We exclude share-based compensation expenses, amortization of purchased intangible assets and acquisition-related charges from our GAAP operating income (loss) from continuing operations and related operating margin in arriving at our non-GAAP operating income (loss) and related operating margin primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these expenses from our non-GAAP financial measures also facilitates the comparison of results for current periods and guidance for future periods with results for prior periods. In addition, we exclude amortization of purchased intangible assets and acquisition-related charges from non-GAAP operating income (loss) and operating margin because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories.

(Net income (loss) and net income (loss) per share (or earnings per share). We exclude share-based compensation expenses, amortization of purchased intangible assets, acquisition-related charges, net gains on marketable equity securities and other investments, gains and losses on disposals of businesses, certain tax items as described above, and amounts related to discontinued operations from our GAAP net income (loss) and net income (loss) per share in arriving at our non-GAAP net income (loss) and net income (loss) per share. We exclude all of these items from our non-GAAP net income (loss) and net income (loss) per share primarily because we do not consider them part of ongoing operating results when assessing the performance of the organization, our operating segments and senior management or when undertaking our budget and planning process. We believe that the exclusion of these items from our non-GAAP financial measures also facilitates the comparison of results for current periods and guidance for future periods with results for prior periods.

In addition, we exclude amortization of purchased intangible assets and acquisition-related charges from our non-GAAP net income (loss) and net income (loss) per share because we believe that excluding these items facilitates comparisons to the results of other companies in our industry, which have their own unique acquisition histories. We exclude gains on marketable equity securities and other investments, net from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operating results. Our non-GAAP financial measures exclude the income tax effects of the adjustments described above that relate to the current period as well as adjustments for similar items that relate to prior periods. We exclude the impact of these tax items because management believes that they are not indicative of our ongoing business operations. The effective tax rates used to calculate non-GAAP net income (loss) and net income (loss) per share were as follows: 34% for fiscal 2000 and 2001; 33% for fiscal 2002 and 2003; 34% for fiscal 2004; 35% for fiscal 2005; 37% for full fiscal 2006; 36% for the third quarter of fiscal 2007 and for fiscal 2007 guidance.Finally, we exclude amounts related to discontinued operations from our non-GAAP net income (loss) and net income (loss) per share because they are unrelated to our ongoing business operations.

We refer to these non-GAAP financial measures in assessing the performance of Intuit’s ongoing operations and for planning and forecasting in future periods. These non-GAAP financial measures also facilitate our internal comparisons to Intuit’s historical operating results. We have historically reported similar non-GAAP financial measures and believe that the inclusion of comparative numbers provides consistency in our financial reporting. We compute non-GAAP financial measures using the same consistent method from quarter to quarter and year to year.

The reconciliations of the forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measures on page 24 of this presentation include all information reasonably available to Intuit at the date of this press release. These tables include adjustments that we can reasonably predict. Events that could cause the reconciliation to change include acquisitions and divestitures of businesses, goodwill and other asset impairments and sales of marketable equity securities and other investments.

Accretion and dilution calculated on a non-GAAP basis

In estimating future accretion and dilution on a non-GAAP basis, Intuit excludes share-based compensation expenses, amortization of purchased intangible assets, acquisition-related charges, net gains on marketable equity securities and other investments, gains and losses on disposals of businesses and assets, certain discrete tax items and amounts related to discontinued operations from its GAAP earnings per share.

Page 24: Cautions About Forward-Looking Statements

24

Non-GAAP Reconciliation: FY00-Q307Q3

Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal

2007 2006 2005 2004 2003 2002 2001 2000

GAAP operating income (loss) from

continuing operations 578,765$ 559,544$ 524,098$ 419,483$ 338,620$ 50,702$ (81,358)$ 12,414$

Amortization of purchased intangible assets 13,817 9,902 10,251 10,186 11,357 12,378 14,949 7,003

Acquisition-related charges 9,660 13,337 16,545 23,435 32,712 181,289 247,806 150,208

Charge for purchased research and development - - - - 1,070 2,151 238 1,312

Share-based compensation expense 20,585 71,361 5,489 6,232 2,714 2,534 2,531 1,266

Loss on impairment of long-lived asset - - - - - 27,000 - -

Non-GAAP operating income 622,827$ 654,144$ 556,383$ 459,336$ 386,473$ 276,054$ 184,166$ 172,203$

GAAP net income (loss) 367,211$ 416,963$ 381,627$ 317,030$ 343,034$ 140,160$ (82,793)$ 305,661$

Amortization of purchased intangible assets 13,817 9,902 10,251 10,186 11,357 12,378 14,949 7,003

Acquisition-related charges 9,660 13,337 16,545 23,435 32,712 181,289 247,806 150,208

Charge for purchased research and development - - - - 1,070 2,151 238 1,312

Share-based compensation expense 20,585 71,361 5,489 6,232 2,714 2,534 2,531 1,266

Loss on impairment of long-lived asset - - - - - 27,000 - -

Pre-tax gain on disposal of businesses (406) (2,364) - - - (8,308) 15,315 -

Gains on marketable equity securities (347) (7,629) (5,225) (1,729) (10,912) 15,535 98,053 (481,130)

Income taxes related to non-GAAP items (15,699) (32,179) (9,200) (12,962) (12,191) (76,751) (128,823) 109,256

Discrete GAAP tax items and other 3,121 7,417 (13,817) (25,258) (219) (6,335) 34,148 32,188

Discontinued operations 1,140 (39,533) (6,644) 6,292 (82,879) (86,421) (27,549) 20,030

Cumulative effect of accounting change - - - - - - (14,314) -

Non-GAAP net income 399,082$ 437,275$ 379,026$ 323,226$ 284,686$ 203,232$ 159,560$ 145,794$

GAAP diluted net income (loss) per share 1.04$ 1.16$ 1.01$ 0.79$ 0.81$ 0.32$ (0.20)$ 0.72$

Non-GAAP diluted net income per share 1.13$ 1.21$ 1.01$ 0.81$ 0.67$ 0.47$ 0.37$ 0.35$

Shares used in diluted per share amounts 351,686 360,471 376,796 400,162 421,910 435,794 430,710 422,542

Page 25: Cautions About Forward-Looking Statements

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Non-GAAP Reconciliation: FY07 Guidance

From To Adjustments From ToTwelve Months EndingJuly 31, 2007

Revenue 2,685,000$ 2,700,000$ -$ 2,685,000$ 2,700,000$ Operating income 600,000$ 611,000$ 140,000$ [a] 740,000$ 751,000$ Operating margin 22% 23% 5% [a] 27% 28%Diluted earnings per share 1.15$ 1.17$ 0.23$ [b] 1.38$ 1.40$ Shares 355,000 357,000 355,000 357,000

of purchased intangible assets of approximately $34 million; and acquisition-related charges of approximately $26 million.[b] Reflects the estimated adjustments in item [a]; an adjustment for net gains on marketable equity securities and other investments of approximately $2 million; an adjustment for an expected pretax gain on the sale of certain assets related to our Complete Payroll and Premier Payroll Service businesses of approximately $14 million; an adjustment for net loss from discontinued operations of $1 million; and income taxes related to these adjustments.

[a] Reflects estimated adjustments for share-based compensation expense of approximately $80 million; amortization

Forward-Looking Guidance GAAP Non-GAAP

Range of Estimate Range of Estimate