HR Block 2008 Annual Report Download - page 98

Our international operations contributed $170.2 million, $131.8 million and $120.3 million in revenues for fiscal
years 2008, 2007 and 2006, respectively, and $32.1 million, $20.1 million and $17.7 million of pretax income,
respectively.
BUSINESS SERVICES – This segment offers accounting, tax and business consulting services, wealth
management, and capital markets services to middle-market companies in offices located throughout the
U.S. Revenues of this segment are seasonal in nature.
CONSUMER FINANCIAL SERVICES – The Consumer Financial Services segment is engaged in offering
brokerage services, along with investment planning and related financial advice through HRBFA and retail
banking through HRB Bank. HRBFA offers traditional brokerage services, as well as annuities, insurance, fee-
based accounts, online account access, equity research and focus lists, model portfolios, asset allocation
strategies, and other investment tools and information. HRB Bank offers traditional banking services,
including checking and savings accounts, lines of credit, individual retirement accounts, certificates of
deposit and prepaid debit card accounts. HRB Bank offers the H&R Block Prepaid MasterCard»and Emerald
Advance lines of credit through our Tax Services segment. HRB Bank also holds previously purchased mortgage
loans for investment purposes. HRB Bank is dependent upon H&R Block and its affiliates for shared administrative
services. Additionally, in fiscal years 2008 and 2007, HRB Bank purchased a significant amount of mortgage loans
from OOMC. HRBFA utilizes HRB Bank for certain deposits insured by the FDIC for its customers.
CORPORATE – Corporate support departments provide services to our operating segments, consisting of
marketing, information technology, facilities, human resources, executive, legal, finance, government relations
and corporate communications. These support department costs are largely allocated to our operating segments.
Our captive insurance and franchise financing subsidiaries are also included within Corporate.
IDENTIFIABLE ASSETS – Identifiable assets are those assets, including goodwill and intangible assets,
associated with each reportable segment. The remaining assets are classified as Corporate assets, which
consist primarily of cash, marketable securities and equipment.
Information concerning the Company’s operations by reportable segment is as follows:
Year Ended April 30, 2008 2007 2006
(in 000s)
REVENUES:
Tax Services $ 2,988,617 $ 2,685,858 $ 2,449,751
Business Services 941,686 932,361 828,133
Consumer Financial Services 459,953 388,090 287,955
Corporate 13,621 14,965 8,914
$ 4,403,877 $ 4,021,274 $ 3,574,753
INCOME (LOSS) FROM CONTINUING OPERATIONS
BEFORE TAXES:
Tax Services $ 785,839 $ 705,171 $ 590,089
Business Services 88,797 57,661 70,661
Consumer Financial Services 10,128 19,811 (32,835)
Corporate (139,543) (146,845) (117,433)
$ 745,221 $ 635,798 $ 510,482
DEPRECIATION AND AMORTIZATION:
Tax Services $ 76,828 $ 68,369 $ 69,074
Business Services 36,523 35,046 32,143
Consumer Financial Services 28,368 45,308 46,081
Corporate 4,292 1,492 1,023
$ 146,011 $ 150,215 $ 148,321
CAPITAL EXPENDITURES:
Tax Services $ 32,712 $ 41,809 $ 43,607
Business Services 32,918 31,770 23,731
Consumer Financial Services 4,373 2,743 11,088
Corporate 35,907 84,769 114,851
$ 105,910 $ 161,091 $ 193,277
IDENTIFIABLE ASSETS:
Tax Services $ 941,769 $ 961,415 $ 843,717
Business Services 920,945 941,754 947,601
Consumer Financial Services 2,056,028 2,619,946 1,306,822
Corporate 1,704,683 1,273,976 948,742
Assets of discontinued operations – 1,746,959 1,942,253
$ 5,623,425 $ 7,544,050 $ 5,989,135
78 H&R BLOCK 2008 Form 10K