HR Block 2011 Annual Report Download - page 67

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NOTE 8: PROPERTY AND EQUIPMENT
The components of property and equipment are as follows:
As of April 30, 2011 2010
(in 000s)
Land and other non-depreciable assets $ 2,245 $ 2,482
Buildings 154,519 161,460
Computers and other equipment 475,351 488,160
Capitalized software 156,108 147,104
Leasehold improvements 191,943 199,370
Construction in process 4,374 3,902
984,540 1,002,478
Less: Accumulated depreciation and amortization (677,220) (657,008)
$ 307,320 $ 345,470
During fiscal years 2011 and 2010, we received $6.5 million and $10.3 million, respectively, for tax incentives
from certain government agencies related to our corporate headquarters building, which was recorded as a
reduction of original cost.
Property and equipment included above and subject to capital lease arrangements included the following:
As of April 30, 2011 2010
(in 000s)
Property and equipment under capital lease $ 47,842 $ 47,844
Less accumulated amortization (35,056) (31,418)
$ 12,786 $ 16,426
Depreciation and amortization expense of continuing operations for fiscal years 2011, 2010 and 2009 was
$92.2 million, $96.9 million and $96.6 million, respectively. Included in depreciation and amortization expense of
continuing operations is amortization of capitalized software of $18.8 million, $21.8 million and $23.4 million,
respectively.
NOTE 9: GOODWILL AND INTANGIBLE ASSETS
Changes in the carrying amount of goodwill by segment for the years ended April 30, 2011 and 2010 are as follows:
Tax Services Business Services Total
(in 000s)
Balance at May 1, 2009:
Goodwill $ 449,779 $ 402,639 $ 852,418
Accumulated impairment losses (2,188) – (2,188)
447,591 402,639 850,230
Changes:
Acquisitions 5,136 1,112 6,248
Disposals and foreign currency changes (1,031) – (1,031)
Impairments – (15,000) (15,000)
Balance at April 30, 2010:
Goodwill 453,884 403,751 857,635
Accumulated impairment losses (2,188) (15,000) (17,188)
451,696 388,751 840,447
Changes:
Acquisitions 15,441 28,552 43,993
Disposals and foreign currency changes (10,286) (5,209) (15,495)
Impairments (22,700) – (22,700)
Balance at April 30, 2011:
Goodwill 459,039 427,094 886,133
Accumulated impairment losses (24,888) (15,000) (39,888)
$ 434,151 $ 412,094 $ 846,245
Goodwill and other indefinite-life intangible assets were tested for impairment in the fourth quarter of fiscal year
2011. Except as discussed below, no impairment was identified.
H&R BLOCK 2011 Form 10K 55