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included costs and expenses for Demandforce. Fiscal 2013 staffing expenses were about
$68 millionhigher, driven by an increase in headcount. Advertising and other marketing program expenses also increased.
Fiscal 2012 Compared with Fiscal 2011
FMS total net revenue increased
$69 millionor 11% in fiscal 2012 compared with fiscal 2011. Total QuickBooks units, including desktop and online units, were flat in fiscal 2012. Overall FMS revenue growth was driven by strong unit growth in our higher-priced QuickBooks Online and QuickBooks Enterprise Solutions offerings. Higher revenue from financial supplies also contributed to the increase in FMS revenue, fueled by sales of our new Secure Plus checks with ChecklockTM fraud protection. FMS segment operating income as a percentage of related revenue decreased slightly to 38% in fiscal 2012 from 39% in fiscal 2011. Segment operating income declined in fiscal 2012 due to about $38 millionin higher staffing expenses associated with higher headcount, partially offset by about $11 millionin lower expenses for advertising and other marketing programs.
Employee Management Solutions
Fiscal Fiscal Fiscal 2013-2012 2012-2011 (Dollars in millions) 2013 2012 2011 % Change % Change Product revenue
$ 298 $ 280 $ 261
Service and other revenue 276 232 196 Total segment revenue
14 % 13 % 13 %
Segment operating income
Employee Management Solutions (EMS) product revenue is derived primarily from QuickBooks Basic Payroll and QuickBooks Enhanced Payroll, which are products sold on a subscription basis that offer payroll tax tables, payroll reports, federal and state payroll tax forms, and electronic tax payment and filing to small businesses that prepare their own payrolls. EMS service and other revenue is derived primarily from QuickBooks Online Payroll, QuickBooks Assisted Payroll, Intuit Online Payroll, Intuit Full Service Payroll, fees for direct deposit services, and fees for other small business payroll and employee management services. Service and other revenue for this segment also includes interest earned on funds held for customers.
Fiscal 2013 Compared with Fiscal 2012
EMS total net revenue increased
$62 millionor 12% in fiscal 2013 compared with fiscal 2012. Revenue was higher in fiscal 2013 due to customer growth in our Enhanced desktop payroll and online payroll solutions, improved customer adoption of payroll direct deposit services, and price increases for desktop payroll customers. At July 31, 2013total U.S. payroll customers were up 3% while U.S. online payroll customers were up 18% compared with July 31, 2012. EMS segment operating income as a percentage of related revenue was flat at 61% in fiscal 2013 and fiscal 2012 because costs and expenses grew in proportion to revenue.