HR Block 2009 Annual Report Download - page 75

Download and view the complete annual report

Please find page 75 of the 2009 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 92

  • 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

During fiscal year 2008, we exited the mortgage business operated through a subsidiary and sold the related loan
servicing business. Our discontinued operations include pretax losses related to our mortgage business of
$17.0 million for fiscal year 2009, compared to $1.2 billion in each of the fiscal years 2008 and 2007.
NOTE 20: SEGMENT INFORMATION
Management has determined the reportable segments identified below according to types of services offered and
the manner in which operational decisions are made. Operating results of our reportable segments are all seasonal.
TAX SERVICES – This segment is primarily engaged in providing tax return preparation and related services and
products in the U.S., Canada and Australia. Segment revenues include fees earned for tax-related services
performed at company-owned tax offices, royalties from franchise offices, sales of tax preparation and other
software, fees from online tax preparation and RAL participations. This segment includes the Company’s tax
preparation software, TaxCut»from H&R Block as well as software designed for small to mid-sized CPA firms who
file tax returns for individuals and businesses. This segment also offers online do-it-yourself tax preparation and
online tax advice to the general public through various websites.
Our international operations contributed $160.7 million, $170.2 million and $131.8 million in revenues for fiscal
years 2009, 2008 and 2007, respectively, and $31.6 million, $32.1 million and $20.1 million of pretax income,
respectively.
BUSINESS SERVICES – This segment offers accounting, tax and business consulting services, wealth
management, and capital markets services to middle-market companies in offices located throughout the U.S.
CONSUMER FINANCIAL SERVICES – This segment is engaged in providing retail banking offerings to our Tax
Services clients through HRB Bank. HRB Bank offers traditional banking services including checking and savings
accounts, lines of credit, individual retirement accounts, certificates of deposit and prepaid debit card accounts.
HRB Bank operates through a single stand-alone branch office. HRB Bank offers the H&R Block Prepaid Emerald
MasterCard»and Emerald Advance lines of credit through our Tax Services segment. HRB Bank also historically
purchased loans from former affiliates, in addition to prime loan purchases from third-parties. During fiscal year
2008, HRB Bank stopped purchasing loans and currently does not intend to purchase mortgage loans from third-
parties. This segment previously included HRBFA, which has been presented as a discontinued operation in our
consolidated financial statements.
CORPORATE – Corporate support departments provide services to our operating segments, consisting of
marketing, information technology, facilities, human resources, executive, legal, finance, government relations
and corporate communications. These support department costs are largely allocated to our operating segments.
Our captive insurance and franchise financing subsidiaries are also included within Corporate.
IDENTIFIABLE ASSETS – Identifiable assets are those assets, including goodwill and intangible assets,
associated with each reportable segment. The remaining assets are classified as Corporate assets, which
consist primarily of cash, marketable securities and equipment. The carrying value of assets held outside the
U.S. totaled $126.8 million, $124.8 million and $120.9 million at April 30, 2009, 2008 and 2007, respectively.
H&R BLOCK 2009 Form 10K 71