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58 2015 Form 10-K | H&R Block, Inc.
Activity in the allowance for loan losses for the years ended April 30, 2015, 2014 and 2013 is as follows:
(in 000s)
Year ended April 30, 2015 2014 2013
Balance as of the beginning of the year $ 11,272 $ 14,314 $ 26,540
Provision (10) 8,271 13,283
Recoveries 1,393 4,040 3,338
Charge-offs (4,769) (15,353) (28,847)
Balance as of the end of the year $ 7,886 $ 11,272 $ 14,314
Detail of the aging of the mortgage loans in our portfolio as of April 30, 2015 is as follows:
(in 000s)
Less than 60
Days Past Due
60 – 89 Days
Past Due
90+ Days
Past Due(1) Total
Past Due Current Total
Purchased from SCC $ 9,487 $ 2,207 $ 44,614 $ 56,308 $ 86,325 $ 142,633
All other 4,688 423 6,689 11,800 90,783 102,583
$ 14,175 $ 2,630 $ 51,303 $ 68,108 $ 177,108 $ 245,216
(1) We do not accrue interest on loans past due 90 days or more.
NOTE 6: INVESTMENTS
The amortized cost and fair value of securities classified as AFS are summarized below:
(in 000s)
As of April 30, 2015 2014
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Fair Value
Mortgage-backed
securities $ 421,035 $ 13,889 $ — $ 434,924 $ 420,697 $ 2,798 $ — $ 423,495
Municipal bonds 4,062 109 (24) 4,147 4,120 209 — 4,329
Common stock 2,491 47 — 2,538 ————
U.S. Treasury bills 100 — — 100 ————
$ 427,688 $ 14,045 $ (24) $ 441,709 $ 424,817 $ 3,007 $ — $ 427,824
During fiscal year 2014, we recorded other-than-temporary impairments of AFS securities totaling $12.4 million.
We did not record any material other-than-temporary impairments of AFS securities during fiscal years 2015 or 2013.
Substantially all AFS debt securities held as of April 30, 2015 mature after five years.
NOTE 7: PROPERTY AND EQUIPMENT
The components of property and equipment, net of accumulated depreciation and amortization, are as follows:
(in 000s)
As of April 30, 2015 2014
Buildings $ 88,273 $ 100,034
Computers and other equipment 140,636 139,290
Leasehold improvements 68,114 51,197
Purchased software 12,741 9,997
Land and other non-depreciable assets 1,623 4,393
$ 311,387 $ 304,911