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H&R Block, Inc. | 2014 Form 10-K 45
CONSOLIDATED STATEMENTS OF INCOME
AND COMPREHENSIVE INCOME (in 000s, except per share amounts)
Year ended April 30, 2014 2013 2012
REVENUES:
Service revenues $ 2,570,273 $ 2,443,000 $ 2,434,307
Royalty, product and other revenues 355,928 364,114 359,664
Interest income 98,094 98,829 99,800
3,024,295 2,905,943 2,893,771
OPERATING EXPENSES:
Cost of revenues:
Compensation and benefits 816,623 769,161 828,773
Occupancy and equipment 362,782 354,612 381,200
Provision for bad debt and loan losses 80,007 90,685 92,157
Interest 57,388 79,957 92,089
Depreciation and amortization 93,259 75,229 69,310
Other 217,597 235,144 238,166
1,627,656 1,604,788 1,701,695
Impairment of goodwill —— 7,409
Selling, general and administrative:
Marketing and advertising 238,763 270,783 278,797
Compensation and benefits 249,779 213,987 220,340
Depreciation and amortization 22,345 17,178 19,847
Other selling, general and administrative 122,541 102,521 99,391
633,428 604,469 618,375
Total operating expenses 2,261,084 2,209,257 2,327,479
Operating income 763,211 696,686 566,292
Other income, net 3,905 5,325 9,778
Income from continuing operations before income taxes 767,116 702,011 576,070
Income taxes 267,019 236,853 230,102
Net income from continuing operations 500,097 465,158 345,968
Net loss from discontinued operations, net of tax benefits
of $15,422, $19,662 and $74,944 (24,940) (31,210) (80,036)
NET INCOME $ 475,157 $ 433,948 $ 265,932
BASIC EARNINGS (LOSS) PER SHARE:
Continuing operations $ 1.82 $ 1.70 $ 1.16
Discontinued operations (0.09) (0.11) (0.27)
Consolidated $ 1.73 $ 1.59 $ 0.89
DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations $ 1.81 $ 1.69 $ 1.16
Discontinued operations (0.09) (0.11) (0.27)
Consolidated $ 1.72 $ 1.58 $ 0.89
COMPREHENSIVE INCOME:
Net income $ 475,157 $ 433,948 $ 265,932
Unrealized gains on securities, net of taxes:
Unrealized holding gains arising during the year 1,807 269 3,192
Reclassification adjustment for gains included in income (3,705) (104) (94)
Change in foreign currency translation adjustments (3,475) (1,760) (2,186)
Other comprehensive income (loss) (5,373) (1,595) 912
Comprehensive income $ 469,784 $ 432,353 $ 266,844
See accompanying notes to consolidated financial statements.