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H&R Block, Inc. | 2014 Form 10-K 59
Information related to the allowance for impaired loans is as follows:
(in 000s)
As of April 30, 2014 2013
Portion of total allowance for loan losses allocated to impaired loans and TDR loans:
Based on collateral value method $ 2,418 $ 3,762
Based on discounted cash flow method 4,346 4,924
$ 6,764 $ 8,686
Information related to our impaired loans is as follows:
(in 000s)
For the year ended April 30, 2014 2013 2012
Average impaired loans:
Purchased from SCC $ 93,873 $ 133,936 $ 211,867
All other 22,607 25,425 33,940
$ 116,480 $ 159,361 $ 245,807
Interest income recognized on impaired and nonaccrual loans was immaterial for all periods presented.
NOTE 6: INVESTMENTS
The amortized cost and fair value of securities classified as AFS are summarized below:
(in 000s)
As of April 30, 2014 2013
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Mortgage-backed
securities $ 420,697 $ 2,798 $ — $ 423,495 $ 476,450 $ 6,592 $ (664) $ 482,378
Municipal bonds 4,120 209 — 4,329 4,178 320 — 4,498
$ 424,817 $ 3,007 $ — $ 427,824 $ 480,628 $ 6,912 $ (664) $ 486,876
During fiscal year 2014, we recorded other-than-temporary impairments of AFS securities totaling $12.4 million.
We did not record any other-than-temporary impairments of AFS securities during fiscal years 2013 or 2012.
Substantially all AFS debt securities held as of April 30, 2014 mature after five years.
NOTE 7: PROPERTY AND EQUIPMENT
The components of property and equipment, net of accumulated depreciation and amortization, are as follows:
(in 000s)
As of April 30, 2014 2013
Buildings $ 100,034 $ 108,265
Computers and other equipment 139,290 112,203
Leasehold improvements 51,197 38,771
Purchased software 9,997 4,660
Construction in process 2,527 2,094
Land and other non-depreciable assets 1,866 1,887
$ 304,911 $ 267,880