HR Block 2007 Annual Report Download - page 100

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‘‘Merger Right’’) to purchase for the exercise price of the Right a Right or the ability of the Board of Directors to effect the Exchange, the
number of shares of the common stock of the surviving or purchasing Rights held by the acquiring person or group under the new plan will
company having a market value equal to twice the exercise price of the become void as they relate to the Subscription Right, the Merger Right
Right. or the Exchange.
After an Unapproved Stock Acquisition, but before any person or We may redeem the Rights at a price of $0.0003125 per Right at any
group of persons acquires 50% or more of the outstanding shares of our time prior to the earlier of (1) an Unapproved Stock Acquisition, or
Common Stock, the Board of Directors may exchange all or part of the (2) the expiration of the rights. The Rights under the plan will expire on
then outstanding and exercisable Rights for Common Stock at an March 25, 2008, unless extended by the Board of Directors. Until a Right
exchange ratio of one share of Common Stock per Right (the is exercised, the holder thereof, as such, will have no rights as a
‘‘Exchange’’). Upon any such Exchange, the right of any holder to stockholder of the Company, including the right to vote or to receive
exercise a Right terminates. Upon the occurrence of any of the events dividends. The issuance of the Rights alone has no dilutive effect and
giving rise to the exercisability of the Subscription Right or the Merger does not affect reported earnings per share.
NOTE 15: INCOME TAXES
The components of income from continuing operations upon which The components of income tax expense (benefit) on income from
domestic and foreign income taxes have been provided are as follows: continuing operations are as follows:
(in 000s)
(in 000s) Year Ended April 30, 2007 2006 2005
Year Ended April 30, 2007 2006 2005 Current:
Domestic $609,501 $491,758 $521,969 Federal $259,735 $246,156 $234,645
Foreign 26,297 18,724 5,644 State 39,090 45,720 33,526
$635,798 $510,482 $527,613 Foreign 7,388 6,367 469
306,213 298,243 268,640
Deferred:
m72 Federal (44,107) (72,414) (57,674)
State (3,181) (12,161) (2,193)
Foreign 2,536 (727) (909)
(44,752) (85,302) (60,776)
Total provision for income taxes before
discontinued operations 261,461 212,941 207,864
Income tax included in discontinued
operations (425,018) 124,044 185,941
Income tax allocated directly to goodwill (4,624) ––
Income tax included in comprehensive
income (16,225) (27,261) (3,991)
Income tax included in stockholders’
equity for compensation expense for
tax purposes that differs from
amounts for financial reporting
purposes 2,506 (9,529) (10,918)
Total income taxes $(181,900) $300,195 $378,896
H&R BLOCK 2007 Form 10K