Intuit Inc. is a leading provider of innovative business and financial management solutions for small businesses, consumers, accounting professionals and financial institutions. Their flagship products and services include QuickBooks, TurboTax and Quicken.

In the notes to its financial statements for the year ended July 31, 2015, Intuit Inc., states:

Intuits Board of Directors has authorized a series of common stock repurchase programs. Shares of common stock repurchased under these programs become treasury shares. Under these programs, we repurchased 13.8 million shares of our common stock for $1.2 billion during the twelve months ended July 31, 2015; 2.5 million shares for $1.6 billion during the twelve months ended July 31, 2014; and 4.8 million shares for $292 million during the twelve months ended July 31, 2013. At July 31, 2015, we had authorization from our Board of Directors to expend up to an additional $2.6 billion for stock repurchases through May 19, 2019. Future stock repurchases under the current program are at the discretion of management, and authorization of future stock repurchase programs is subject to the final determination of our Board of Directors.

Our treasury shares are repurchased at the market price on the trade date; accordingly, all amounts paid to reacquire these shares have been recorded as treasury stock on our balance sheets. Repurchased shares of our common stock are held as treasury shares until they are reissued or retired. When we reissue treasury stock, if the proceeds from the sale are more than the average price we paid to acquire the shares we record an increase in additional paid-in capital. Conversely, if the proceeds from the sale are less than the average price we paid to acquire the shares, we record a decrease in additional paid-in capital to the extent of increases previously recorded for similar transactions and a decrease in retained earnings for any remaining amount

• Why would a company buy back its own stock?
• What conditions must be present in the company to make a large buyback possible?
• What would Intuit do with all this stock? What future benefit might it have?
• How do they account for treasury stock?