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66 2014 Form 10-K | H&R Block, Inc.
OTHER COMPREHENSIVE INCOME – Components of other comprehensive income include foreign currency
translation adjustments and the change in net unrealized gains or losses on AFS marketable securities, and are as
follows:
(in 000s)
Foreign Currency
Translation Adjustments Unrealized Gain (Loss)
on AFS Securities Total
Balance as of May 1, 2011 $ 10,755 $ 478 $ 11,233
Other comprehensive income before reclassifications:
Gross gains (losses) arising during the year (3,429) 5,313 1,884
Tax expense (benefit) (1,243) 2,121 878
(2,186) 3,192 1,006
Amounts reclassified to net income:
Gross amount reclassified — (152) (152)
Tax expense (benefit) — 58 58
— (94) (94)
Net other comprehensive income (loss) (2,186) 3,098 912
Balance as of April 30, 2012 8,569 3,576 12,145
Other comprehensive income before reclassifications:
Gross gains (losses) arising during the year (1,979) 498 (1,481)
Tax expense (benefit) (219) 229 10
(1,760) 269 (1,491)
Amounts reclassified to net income:
Gross amount reclassified — (175) (175)
Tax expense — 71 71
— (104) (104)
Net other comprehensive income (loss) (1,760) 165 (1,595)
Balance as of April 30, 2013 6,809 3,741 10,550
Other comprehensive income before reclassifications:
Gross gains (losses) arising during the year (3,416) 2,594 (822)
Tax expense (benefit) 59 787 846
(3,475) 1,807 (1,668)
Amounts reclassified to net income:
Gross amount reclassified (1) — (5,835) (5,835)
Tax expense — 2,130 2,130
— (3,705) (3,705)
Net other comprehensive loss (3,475) (1,898) (5,373)
Balance as of April 30, 2014 $ 3,334 $ 1,843 $ 5,177
(1) Amount represents a gross realized gain of $18.3 million on the sale of residual interests in mortgage securitizations, net of other-than-temporary
impairments on AFS securities of $12.4 million.
Gross amounts reclassified out of accumulated other comprehensive income are included in other income, net in
the consolidated income statements.
NOTE 13: STOCK-BASED COMPENSATION
We have a stock-based Long Term Incentive Plan (Plan), under which we can grant stock options, restricted shares,
performance-based share units, restricted share units, deferred stock units and other forms of equity to employees,
non-employee directors and consultants. Stock-based compensation expense of our continuing operations totaled
$20.1 million, $15.3 million and $14.2 million in fiscal years 2014, 2013 and 2012, respectively, net of related tax
benefits of $7.6 million, $5.8 million and $5.4 million, respectively. We realized tax benefits of $10.6 million, $5.0
million and $4.4 million in fiscal years 2014, 2013 and 2012, respectively.
As of April 30, 2014, we had 10.5 million shares reserved for future awards under our Plan. We issue shares from
our treasury stock to satisfy the exercise or vesting of stock-based awards and believe we have adequate treasury
stock balances available for future issuances.