HR Block 2007 Annual Report Download - page 92

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were finalized during fiscal year 2007. As a result, we adjusted deferred During fiscal years 2007, 2006 and 2005, we made other acquisitions
tax balances initially recorded in connection with this acquisition which were accounted for as purchases with cash payments totaling
resulting in an increase of $16.6 million to goodwill and received cash of $32.8 million, $19.7 million and $14.4 million, respectively. Their operations,
$10.1 million, which was recorded as a reduction of goodwill. which are not material, are included in the consolidated income statements
During fiscal year 2005, our Business Services segment acquired six since the date of acquisition. During fiscal years 2007, 2006 and 2005, we
businesses. Cash payments related to these acquisitions totaled also paid $5.4 million, $2.1 million and $3.4 million, respectively, for
$19.5 million, with additional cash payments of $0.1 million over the contingent payments on prior acquisitions.
next five years. Goodwill recognized in these transactions is included in
the Business Services segment and all but $3.8 million is deductible for
tax purposes.
NOTE 3: EARNINGS PER SHARE
Basic earnings per share is computed using the weighted-average Diluted earnings per share excludes the impact of nonvested common
number of common shares outstanding. The dilutive effect of potential shares or the exercise of options to purchase 16.8 million, 8.7 million,
common shares outstanding is included in diluted earnings per share. and 1.2 million shares of stock for 2007, 2006 and 2005, respectively.
The computations of basic and diluted earnings per share from
continuing operations are as follows:
(in 000s, except per share amounts)
Year Ended April 30, 2007 2006 2005
Net income from continuing
operations $374,337 $297,541 $319,749
Basic weighted average common
shares 322,688 328,118 331,612
Dilutive potential shares from stock
m64 options and nonvested stock 3,464 5,067 6,011
Convertible preferred stock 222
Dilutive weighted average common
shares 326,154 333,187 337,625
Earnings per share from continuing
operations:
Basic $1.16 $0.91 $ 0.96
Diluted 1.15 0.89 0.95
H&R BLOCK 2007 Form 10K