Tables of Contents
## Table 0 ##
ITEM 7 MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Our Management’s Discussion and Analysis of Financial Condition and Results of Operations (MD&A) includes the following sections: You should note that this MD&A discussion contains forward-looking statements that involve risks and uncertainties.
Please see the section entitled “Forward-Looking Statements and Risk Factors” at the beginning of Item 1A for important information to consider when evaluating such statements.
You should read this MD&A in conjunction with the financial statements and related notes in Item 8 of this report.
In fiscal 2009 we acquired PayCycle, Inc.  and in fiscal 2010 we acquired Mint Software Inc.  and Medfusion, Inc.  We have included the results of operations for each of them in our consolidated results of operations from their respective dates of acquisition.
We have reclassified our financial statements for all periods presented to reflect our Intuit Real Estate Solutions business as discontinued operations.
See “Results of Operations — Discontinued Operations” later in this Item 7 for more information.
Unless otherwise noted, the following discussion pertains only to our continuing operations.
Executive Overview This overview provides a high level discussion of our operating results and some of the trends that affect our business.
We believe that an understanding of these trends is important in order to understand our financial results for fiscal 2011 as well as our future prospects.
This summary is not intended to be exhaustive, nor is it intended to be a substitute for the detailed discussion and analysis provided elsewhere in this Annual Report on Form 10-K.  Overview of Financial Results Total net revenue for fiscal 2011 was $3.9 billion , an increase of 11% compared with fiscal 2010 .
Our Small Business Group and our Consumer Tax segment were the key drivers of revenue growth.
Revenue from our Small Business Group increased 12% compared with fiscal 2010 due to growth in connected services offerings and improved offering mix.
Revenue from our Consumer Tax segment increased 13% compared with fiscal 2010 due to growth in TurboTax Online federal units.
Operating income from continuing operations increased 17% in fiscal 2011 compared with fiscal 2010 due to higher revenue partially offset by higher costs and expenses.
Cost of revenue as a percentage of total revenue was slightly lower in fiscal 2011 compared with fiscal 2010 due to growth in TurboTax Online units and lower amortization expense.
Operating expenses were
Tables of Contents 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.
Results of Operations Financial Overview
## Table 1 ##
Fiscal 2011 Compared with Fiscal 2010 Total net revenue increased $396 million or 11% in fiscal 2011 compared with fiscal 2010 , driven by revenue growth in our Small Business Group and our Consumer Tax segment.
In our Small Business Group, revenue was up 12% .
Financial Management Solutions segment revenue increased 15% due to growth in QuickBooks Online, QuickBooks Enterprise, and Intuit Websites revenue and to a lesser extent to higher QuickBooks desktop revenue.
Employee Management Solutions segment revenue increased 10% due to favorable offering mix, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers.
Payment Solutions segment revenue increased 11% due to growth in the merchant customer base and slightly higher transaction volume per merchant.
In our Tax businesses, Consumer Tax segment revenue increased 13% due to 12% growth in total TurboTax federal units that was driven by 20% higher TurboTax Online federal units.
Accounting Professionals segment revenue increased 7% due to price increases, increased pay-per-return usage, and new offerings.
Financial Services segment revenue increased 4% due to growth in bill-pay revenue partially offset by the effect of the sale of that segment's lending business in the fourth quarter of fiscal 2010.
Other Businesses segment revenue increased 15% due to strong performance in our Canadian and United Kingdom small business offerings and our fiscal 2010 acquisitions of Mint and Medfusion.
Operating income from continuing operations increased 17% in fiscal 2011 compared with fiscal 2010 .
Total cost of revenue as a percent of revenue decreased slightly due to growth in TurboTax Online units and $32 million lower expense for amortization of acquired intangible assets.
Total operating expenses were $234 million higher in the fiscal 2011 period, including about $74 million for higher staffing expenses, about $47 million for higher marketing program expenses in our Small Business Group and our Consumer Tax segment, about $70 million due to operating expenses for Mint and Medfusion, and about $20 million for higher share-based compensation expense.
We also recorded a $30 million goodwill and intangible asset impairment charge for our Intuit Health reporting unit during fiscal 2011.
See “Cost of Revenue” and “Operating Expenses” later in this Item 7 for more information.
Net income from continuing operations increased 18% in fiscal 2011 compared with fiscal 2010 , in line with the increase in operating income for that period.
Diluted net income per share from continuing operations for fiscal 2011 increased 20% to $2.00 as a result of the increase in net income and the decline in weighted average diluted shares compared with fiscal 2010 .
Fiscal 2010 Compared with Fiscal 2009 Total net revenue increased $346 million or 11% in fiscal 2010 compared with fiscal 2009 .
In our Small Business Group, Financial Management Solutions segment revenue increased 6% due to strength in Intuit Websites and higher average selling prices for QuickBooks.
Employee Management Solutions segment revenue increased 15% due to our July 2009 acquisition of PayCycle and price increases for desktop payroll customers.
Payment Solutions segment revenue increased 8% due to growth in the merchant customer base, partially offset by lower transaction volume per merchant.
In our Tax businesses, Consumer Tax segment revenue increased 15% due to 19% growth in TurboTax Online units.
Accounting Professionals segment revenue grew 6% due to price increases.
Financial Services segment revenue increased 7% due to growth in bill-pay end users and transaction volumes and new offerings.
Other Businesses segment revenue increased 22% due to higher Quicken revenue and a favorable currency impact in our Canadian business.
Rights Each holder of a share of outstanding Common Stock also holds one share purchase right (a "Right") for each share of Common Stock.
Each Right entitles the holder to purchase from the Company one half of one-hundredth of a share of Series A junior participating preferred stock, $0.01 par value (the "Junior Preferred Shares"), of the Company at a price of $135 per one half of one-hundredth of a Junior Preferred Share (the "Purchase Price").
The Rights are not exercisable until the earlier of acquisition by a person or group of 15% or more of the outstanding Common Stock (an "Acquiring Person") or the announcement of an intention to make or commencement of a tender offer or exchange offer, the consummation of which would result in the beneficial ownership by a person or group of 15% or more of the outstanding Common Stock.
In the event that any person or group becomes an Acquiring Person, each holder of a Right other than the Acquiring Person will thereafter have the right to receive upon exercise that number of shares of Common Stock having a market value F-28 of two times the Purchase Price and, in the event that the Company is acquired in a business combination transaction or 50% or more of its assets are sold, each holder of a Right will thereafter have the right to receive upon exercise that number of shares of Common Stock of the acquiring company which at the time of the transaction will have a market value of two times the Purchase Price.
Under certain specified circumstances, the Board of Directors of the Company may cause the Rights (other than Rights owned by such person or group) to be exchanged, in whole or in part, for Common Stock or Junior Preferred Shares, at an exchange rate of one share of Common Stock per Right or one half of one-hundredth of a Junior Preferred Share per Right.
At any time prior to the acquisition by a person or group of beneficial ownership of 15% or more of the outstanding Common Stock, the Board of Directors of the Company may redeem the Rights in whole at a price of $0.01 per Right.
Common Stock Reserved for Future Issuance At December 31, 2003, the Company has reserved shares of common stock for future issuance under all equity compensation plans as follows (shares in thousands):
## Table 2 ##
P.  Significant Revenue Arrangements The Company has formed strategic collaborations with major pharmaceutical companies in the areas of drug discovery, development, and commercialization.
Research and development agreements provide the Company with financial support and other valuable resources for research programs and development of clinical drug candidates, product development and marketing and sales of products.
Collaborative Research and Development Agreements In the Company's collaborative research, development and commercialization programs the Company seeks to discover, develop and commercialize major pharmaceutical products in conjunction with and supported by the Company's collaborators.
Collaborative research and development arrangements provide research funding over an initial contract period with renewal and termination options that vary by agreement.
The agreements also include milestone payments based on the achievement or the occurrence of a designated event.
The agreements may also contain development reimbursement provisions, royalty rights or profit sharing rights and manufacturing options.
The terms of each agreement vary.
The Company has entered into significant research and development collaborations with large pharmaceutical companies.
F-29 P.  Significant Revenue Arrangements Novartis In May 2000, the Company and Novartis Pharma AG ("Novartis") entered into an agreement to collaborate on the discovery, development and commercialization of small molecule drugs directed at targets in the kinase protein family.
Under the agreement, Novartis agreed to pay the Company an up-front payment of $15,000,000 made upon signing of the agreement, up to $200,000,000 in product research funding over six

<table><tr><td>Consolidated Balance Sheet Data</td><td colspan="5">At July 31,</td></tr><tr><td>(In millions)</td><td>2011</td><td>2010</td><td>2009</td><td>2008</td><td>2007</td></tr><tr><td>Cash, cash equivalents and investments</td><td>$1,421</td><td>$1,622</td><td>$1,347</td><td>$828</td><td>$1,303</td></tr><tr><td>Long-term investments</td><td>63</td><td>91</td><td>97</td><td>288</td><td>—</td></tr><tr><td>Working capital</td><td>449</td><td>1,074</td><td>884</td><td>307</td><td>792</td></tr><tr><td>Total assets</td><td>5,110</td><td>5,198</td><td>4,826</td><td>4,667</td><td>4,252</td></tr><tr><td>Current portion of long-term debt</td><td>500</td><td>—</td><td>—</td><td>—</td><td>—</td></tr><tr><td>Long-term debt</td><td>499</td><td>998</td><td>998</td><td>998</td><td>998</td></tr><tr><td>Other long-term obligations</td><td>190</td><td>158</td><td>187</td><td>122</td><td>57</td></tr><tr><td>Total stockholders’ equity</td><td>2,616</td><td>2,821</td><td>2,557</td><td>2,080</td><td>2,036</td></tr></table>
<table><tr><td>(Dollars in millions, except per share amounts)</td><td>Fiscal2011</td><td>Fiscal2010</td><td>Fiscal2009</td><td>2011-2010% Change</td><td>2010-2009% Change</td></tr><tr><td>Total net revenue</td><td>$3,851</td><td>$3,455</td><td>$3,109</td><td>11%</td><td>11%</td></tr><tr><td>Operating income from continuing operations</td><td>1,007</td><td>863</td><td>683</td><td>17%</td><td>26%</td></tr><tr><td>Net income from continuing operations</td><td>634</td><td>539</td><td>447</td><td>18%</td><td>21%</td></tr><tr><td>Diluted net income per share from continuing operations</td><td>$2.00</td><td>$1.66</td><td>$1.35</td><td>20%</td><td>23%</td></tr></table>
<table><tr><td>Common stock under stock and option plans</td><td>21,829</td></tr><tr><td>Common stock under the Vertex Purchase Plan</td><td>249</td></tr><tr><td>Common stock under the Vertex 401(k) Plan</td><td>125</td></tr><tr><td>Total</td><td>22,203</td></tr></table>

Question: What is the ratio of Working capital in Table 0 to the Total net revenue in Table 1 in 2010?
Answer: 0.31085