HR Block 2006 Annual Report Download - page 126
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Mortgage loans which have been securitized at April 30, 2006 and 2005, past due sixty days or more and the related net credit losses are
presented below:
(in 000s)
Total Principal Principal Amount of Loans Credit Losses
Amount of Loans Outstanding 60 Days or More Past Due (net of recoveries)
April 30, April 30, Year Ended April 30,
2006 2005 2006 2005 2006 2005
Securitized mortgage loans $ 10,046,032 $ 10,300,805 $ 1,012,414 $ 1,128,376 $ 115,976 $ 132,015
Mortgage loans in warehouse Trusts 7,845,834 6,742,387 ––––
Total loans $ 17,891,866 $ 17,043,192 $ 1,012,414 $ 1,128,376 $ 115,976 $ 132,015
NOTE 6: GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill by segment for the year Goodwill and other indefinite life intangible assets were tested for
ended April 30, 2006, are as follows: impairment in the fourth quarter of fiscal year 2006. An independent
(in 000s)
valuation firm was engaged to assist in the test for selected reporting
2005 Additions Other 2006
units. No impairment existed at any of our reporting units during fiscal
year 2006, 2005 or 2004.
Tax Services $ 360,781 $ 15,338 $ 396 $ 376,515
Mortgage Services 152,467 – – 152,467
The goodwill and intangible assets added in the Business Services
Business Services 328,745 70,401 (1,630) 397,516
segment relate primarily to the acquisition of American Express Tax and
Investment Services 173,954 – – 173,954
Business Services, Inc., as discussed in note 2.
$ 1,015,947 $ 85,739 $ (1,234) $ 1,100,452
The components of intangible assets are as follows:
(in 000s)
April 30, 2006 2005
Gross Gross
Carrying Accumulated Carrying Accumulated
Amount Amortization Net Amount Amortization Net
Tax Services:
Customer relationships $ 27,257 $ (10,842) $ 16,415 $ 23,717 $ (7,207) $ 16,510
Noncompete agreements 18,879 (17,686) 1,193 17,677 (11,608) 6,069
Business Services:
Customer relationships 153,844 (81,178) 72,666 130,585 (68,433) 62,152
Noncompete agreements 32,534 (14,300) 18,234 27,796 (11,274) 16,522
Trade name – amortizing 4,050 (1,823) 2,227 1,450 (995) 455
Trade name – non-amortizing 55,637 (4,868) 50,769 55,637 (4,868) 50,769
Investment Services:
Customer relationships 293,000 (235,010) 57,990 293,000 (198,385) 94,615
$ 585,201 $ (365,707) $ 219,494 $ 549,862 $ (302,770) $ 247,092
Amortization of intangible assets for the years ended April 30, 2006, 2005 and 2004 was $64.0 million, $61.4 million and $61.5 million, respectively.
Estimated amortization of intangible assets for fiscal years 2007, 2008, 2009, 2010 and 2011 is $54.5 million, $36.9 million, $14.0 million, $12.3 million
and $11.0 million, respectively.
56
H&R BLOCK 2006 Form 10K