HR Block 2011 Annual Report Download - page 73

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over the vesting period. As of April 30, 2011, we had $11.5 million of total unrecognized compensation cost related
to these shares. This cost is expected to be recognized over a weighted-average period of 2 years.
NOTE 15: INCOME TAXES
The components of income from continuing operations upon which domestic and foreign income taxes have been
provided are as follows:
Year Ended April 30, 2011 2010 2009
(in 000s)
Domestic $ 639,914 $ 745,912 $ 815,614
Foreign 37,111 38,223 23,756
$ 677,025 $ 784,135 $ 839,370
The components of income tax expense (benefit) for continuing operations are as follows:
Year Ended April 30, 2011 2010 2009
(in 000s)
Current:
Federal $ 188,086 $ 92,992 $ 243,085
State 45,068 23,625 38,418
Foreign 21,456 16,052 1,393
254,610 132,669 282,896
Deferred:
Federal (799) 128,900 36,739
State 3,521 33,448 6,582
Foreign 288 172 98
3,010 162,520 43,419
Total income taxes for continuing operations $ 257,620 $ 295,189 $ 326,315
The reconciliation between the income tax provision and the amount computed by applying the statutory
federal tax rate of 35% to income taxes of continuing operations is as follows:
Year Ended April 30, 2011 2010 2009
U.S. statutory tax rate 35.0% 35.0% 35.0%
Change in tax rate resulting from:
State income taxes, net of federal income tax benefit 4.5% 3.8% 4.2%
Permanent differences (0.3)% (0.5)% 1.6%
Uncertain tax positions 1.1% 0.9% 0.5%
Net decrease in valuation allowance (1.3)% (1.0)% (1.2)%
Other (0.9)% (0.6)% (1.2)%
Effective tax rate 38.1% 37.6% 38.9%
H&R BLOCK 2011 Form 10K 61