HR Block 2006 Annual Report Download - page 112

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CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME
(Amounts in 000s, except per share amounts)
Year Ended April 30, 2006 2005 2004
REVENUES –
Service revenues $ 3,463,111 $ 2,920,586 $ 2,639,367
Other revenues:
Gains on sales of mortgage assets, net 713,981 822,075 918,297
Product and other revenues 492,502 478,443 460,421
Interest income 203,207 198,915 229,795
4,872,801 4,420,019 4,247,880
OPERATING EXPENSES –
Cost of services 2,383,299 1,999,068 1,794,866
Cost of other revenues 522,992 448,021 382,518
Selling, general and administrative 1,112,585 920,677 846,157
4,018,876 3,367,766 3,023,541
Operating income 853,925 1,052,253 1,224,339
Interest expense 49,059 62,367 71,218
Other income, net 22,527 27,829 9,854
Income before taxes 827,393 1,017,715 1,162,975
Income taxes 336,985 393,805 462,523
Net income before change in accounting principle 490,408 623,910 700,452
Cumulative effect of change in accounting principle for multiple deliverable revenue arrangements,
less tax benefit of $4,031 –– (6,359)
NET INCOME $ 490,408 $ 623,910 $ 694,093
BASIC EARNINGS PER SHARE –
Before change in accounting principle $1.49 $1.88 $1.98
Cumulative effect of change in accounting principle –– (0.02)
Net income $1.49 $1.88 $1.96
DILUTED EARNINGS PER SHARE –
Before change in accounting principle $1.47 $ 1.85 $ 1.94
Cumulative effect of change in accounting principle –– (0.02)
Net income $1.47 $ 1.85 $ 1.92
COMPREHENSIVE INCOME –
Net income $ 490,408 $ 623,910 $ 694,093
Unrealized gains on securities, net of taxes:
Unrealized holding gains arising during the period, less taxes of $13,585, $36,670, and $64,174 22,059 59,409 103,886
Reclassification adjustment for gains included in income, less taxes of $40,846, $40,661 and $67,561 (66,188) (65,848) (109,385)
Change in foreign currency translation adjustments (2,641) 8,946 12,355
$ 443,638 $ 626,417 $ 700,949
See accompanying notes to consolidated financial statements.
42
H&R BLOCK 2006 Form 10K