HR Block 2005 Annual Report Download - page 108

Download and view the complete annual report

Please find page 108 of the 2005 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 157

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157

CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(Amounts in 000s, except per share amounts)
Restated(1) Restated(1)
Year ended April 30, 2005 2004 2003
REVENUES ⬎⬎⬎
Service revenues $ 2,920,586 $ 2,639,367 $ 2,295,936
Other revenues:
Gains on sales of mortgage assets, net 822,075 918,297 827,127
Product and other revenues 478,443 460,421 412,995
Interest income 198,915 229,795 195,068
4,420,019 4,247,880 3,731,126
OPERATING EXPENSES ⬎⬎⬎
Cost of service revenues 1,999,220 1,794,501 1,625,937
Cost of other revenues 416,421 380,365 300,749
Impairment of goodwill –– 122,251
Selling, general and administrative 952,125 848,675 760,864
3,367,766 3,023,541 2,809,801
Operating income 1,052,253 1,224,339 921,325
Interest expense 62,367 71,218 76,723
Other income, net 27,829 9,854 10,962
Income before taxes 1,017,715 1,162,975 855,564
Income taxes 381,858 447,367 377,949
Net income before change in accounting principle 635,857 715,608 477,615
Cumulative effect of change in accounting principle
for multiple deliverable revenue arrangements,
less tax benefit of $4,031 –(6,359) –
NET INCOME $ 635,857 $ 709,249 $ 477,615
BASIC EARNINGS PER SHARE ⬎⬎⬎
Before change in accounting principle $ 1.92 $ 2.02 $ 1.33
Cumulative effect of change in accounting principle –(.02) –
Net income $ 1.92 $ 2.00 $ 1.33
DILUTED EARNINGS PER SHARE ⬎⬎⬎
Before change in accounting principle $ 1.88 $ 1.98 $ 1.30
Cumulative effect of change in accounting principle –(.02) –
Net income $ 1.88 $ 1.96 $ 1.30
COMPREHENSIVE INCOME ⬎⬎⬎
Net income $ 635,857 $ 709,249 $ 477,615
Unrealized gains on securities, net of taxes:
Unrealized holding gains arising during the period, less
taxes of $36,670, $64,174, and $70,983 59,409 103,886 114,885
Reclassification adjustment for gains included in income, less
taxes of $40,661, $67,561 and $72,370 (65,848) (109,385) (117,073)
Change in foreign currency translation adjustments 8,946 12,355 17,415
$ 638,364 $ 716,105 $ 492,842
See accompanying notes to consolidated financial statements.
(1) See note 2.
H&R BLOCK 2005 Form 10K
46