HR Block 2007 Annual Report Download - page 94

NOTE 6: PROPERTY AND EQUIPMENT
The components of property and equipment of our continuing As of April 30, 2007 and 2006, we have property and equipment under
operations are as follows: capital lease with a cost of $39.2 million and $22.1 million, respectively,
(in 000s)
and accumulated depreciation of $8.9 million and $4.9 million,
April 30, 2007 2006 respectively. During fiscal year 2006, we entered into an agreement to
lease furniture, fixtures and equipment in conjunction with the
Land and other non-depreciable assets $9,592 $17,152
Buildings 170,904 50,232 purchase of Industrial Revenue Bonds from the City of Kansas City,
Computers and other equipment 530,713 499,004
Missouri as discussed further in note 18. Assets under this capital lease
Capitalized software137,011 124,065
at April 30, 2007 totaled $22.3 million. We also have a separate
Leasehold improvements 168,370 159,872
agreement to lease real estate and buildings under a noncancelable
Construction in process 9,627 116,074
capital lease for the next 14 years with an option to purchase after two
1,026,217 966,399
years. Total assets under this capital lease at April 30, 2007 totaled
Less: Accumulated depreciation and amortization 647,151 622,693
$16.8 million.
$379,066 $343,706
During fiscal years 2007 and 2006, we capitalized interest costs of
$3.6 million and $4.7 million, respectively, relating to the construction of
Depreciation and amortization expense of continuing operations for
our new corporate headquarters.
fiscal years 2007, 2006 and 2005 was $93.7 million, $85.8 million and
$89.2 million, respectively. Included in depreciation and amortization
expense of continuing operations is amortization of capitalized software
of $16.9 million, $11.9 million and $10.8 million, respectively.
NOTE 7: GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill of continuing operations by fiscal year 2007, 2006 or 2005. In fiscal year 2007, we recorded
m66
segment for the year ended April 30, 2007, are as follows: $154.9 million in goodwill impairments related to the sale or wind-down
(in 000s)
of our discontinued operations.
2006 Additions Other 2007 The purchase price for our acquisition of AmexTBS was subject to
certain contractual post-closing adjustments, which were finalized
Tax Services $376,515 $38,156 $ 406 $415,077
Business Services 390,855 14,218 (185) 404,888 during fiscal year 2007. As a result, we adjusted deferred tax balances
Consumer Financial Services 173,954 ––173,954
initially recorded in connection with this acquisition resulting in an
$941,324 $52,374 $221 $993,919 increase of $16.6 million to goodwill, and received cash of $10.1 million,
which was recorded as a reduction of goodwill. All amounts relating to
Goodwill and other indefinite life intangible assets were tested for AmexTBS were recorded in our Business Services segment.
impairment in the fourth quarter of fiscal year 2007. No impairment
existed at any of our reporting units in continuing operations during
H&R BLOCK 2007 Form 10K