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H&R Block, Inc. | 2015 Form 10-K 67
The components of income tax expense (benefit) for continuing operations are as follows:
(in 000s)
Year ended April 30, 2015 2014 2013
Current:
Federal $ 245,473 $ 195,277 $ 219,411
State 31,501 33,274 43,116
Foreign 9,788 6,749 3,173
286,762 235,300 265,700
Deferred:
Federal (30,181) 28,624 (29,258)
State (4,040) 5,475 (69)
Foreign 3,520 (2,380) 480
(30,701) 31,719 (28,847)
Total income taxes for continuing operations $ 256,061 $ 267,019 $ 236,853
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, 2015 2014 2013
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 3.5 % 3.8 % 4.0 %
Earnings taxed in foreign jurisdictions (1.8)% (0.2)% (0.4)%
Permanent differences (0.3)% 0.1 % (0.1)%
Uncertain tax positions (1.0)% (5.6)% (4.1)%
Change in valuation allowance 0.2 % 1.5 % (1.0)%
Other (1.1)% 0.2 % 0.3 %
Effective tax rate 34.5 % 34.8 % 33.7 %
The effective tax rate for fiscal year 2015 did not change materially compared to the prior year. However, the
composition of the effective tax rate changed from the prior year due to the increased benefit of earnings taxed in
foreign jurisdictions and decreased expense related to changes in the deferred tax valuation allowance. Those favorable
rate changes were offset by a decrease in the current year benefit of uncertain tax positions. The benefit from uncertain
tax positions for all years resulted from settlements and new information concerning prior year positions.
The net loss from discontinued operations for fiscal years 2015, 2014 and 2013 totaled $13.1 million, $24.9 million
and $31.2 million, respectively, and was net of tax benefits of $8.1 million, $15.4 million and $19.7 million, respectively.