HR Block 2014 Annual Report Download - page 77

Download and view the complete annual report

Please find page 77 of the 2014 HR Block annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

H&R Block, Inc. | 2014 Form 10-K 69
NOTE 14: INCOME TAXES
The components of income from continuing operations upon which domestic and foreign income taxes have been
provided are as follows:
(in 000s)
Year ended April 30, 2014 2013 2012
Domestic $ 754,036 $ 664,966 $ 547,535
Foreign 13,080 37,045 28,535
$ 767,116 $ 702,011 $ 576,070
The components of income tax expense (benefit) for continuing operations are as follows:
(in 000s)
Year ended April 30, 2014 2013 2012
Current:
Federal $ 195,277 $ 219,411 $ 126,773
State 33,274 43,116 21,285
Foreign 6,749 3,173 8,647
235,300 265,700 156,705
Deferred:
Federal 28,624 (29,258) 55,032
State 5,475 (69) 18,154
Foreign (2,380) 480 211
31,719 (28,847) 73,397
Total income taxes for continuing operations $ 267,019 $ 236,853 $ 230,102
The reconciliation between the income tax provision and the amount computed by applying the statutory federal
tax rate of 35% to income taxes of continuing operations is as follows:
Year ended April 30, 2014 2013 2012
U.S. statutory tax rate 35.0 % 35.0 % 35.0 %
Change in tax rate resulting from:
State income taxes, net of federal income tax benefit 3.8 % 4.0 % 4.2 %
Permanent differences 0.1 % (0.1)% 0.5 %
Uncertain tax positions (5.6)% (4.1)% (0.6)%
Change in valuation allowance 1.5 % (1.0)% 0.2 %
Other — % (0.1)% 0.6 %
Effective tax rate 34.8 % 33.7 % 39.9 %
The reduction in the tax rate for fiscal year 2014 related to uncertain tax positions reflects changes to tax reserves
related to settlements and new information regarding prior year tax positions.
The net loss from discontinued operations for fiscal years 2014, 2013 and 2012 totaled $24.9 million, $31.2 million
and $80.0 million, respectively, and was net of tax benefits of $15.4 million, $19.7 million and $74.9 million, respectively.