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66 2015 Form 10-K | H&R Block, Inc.
OTHER AWARDS – A summary of nonvested shares, nonvested share units and deferred stock units, including those
that are performance-based, for the year ended April 30, 2015, is as follows:
(shares in 000s)
Nonvested Shares and
Nonvested Share Units
Performance-Based
Nonvested Share Units
Shares
Weighted-
Average
Grant Date
Fair Value Shares
Weighted-
Average
Grant Date
Fair Value
Outstanding, beginning of the year 1,567 $ 18.23 966 $ 20.98
Granted 609 33.16 437 37.17
Released (614) 17.61 (203) 17.46
Forfeited (75) 26.03 (8) 29.27
Outstanding, end of the year 1,487 $ 24.05 1,192 $ 26.26
The total fair value of shares and units vesting during fiscal years 2015, 2014 and 2013 was $14.3 million, $8.6
million and $7.2 million, respectively. As of April 30, 2015, we had $31.2 million of total unrecognized compensation
cost related to these shares. This cost is expected to be recognized over a weighted-average period of two years.
When valuing our performance-based nonvested share units on the grant date, we typically estimate the expected
volatility using historical volatility for H&R Block, Inc. and selected comparable companies. The dividend yield is
calculated based on the current dividend and the market price of our common stock on the grant date. The risk-free
interest rate is based on the U.S. Treasury zero-coupon yield curve in effect on the grant date. Both expected volatility
and the risk-free interest rate are based on a period that approximates the expected term. The following assumptions
were used to value performance-based nonvested share units using the Monte Carlo valuation model during the
periods:
Year ended April 30, 2015 2014 2013
Expected volatility 12.28% - 78.42% 11.75% – 70.17% 12.61% – 71.96%
Expected term 3 years 3 years 3 years
Dividend yield (1) 0% - 2.39% 0% – 2.88% 0% – 5.01%
Risk-free interest rate 0.81% 0.61% 0.40%
Weighted-average fair value $ 37.17 $ 28.59 $ 16.72
(1) The valuation model assumes that dividends are reinvested by the Company on a continuous basis.
NOTE 14: INCOME TAXES
The components of income from continuing operations upon which domestic and foreign income taxes have been
provided are as follows:
(in 000s)
Year ended April 30, 2015 2014 2013
Domestic $ 682,744 $ 754,036 $ 664,966
Foreign 60,061 13,080 37,045
$ 742,805 $ 767,116 $ 702,011